Software Sector Summary Report - GCA Global 12 Months Software Price Performance vs. S&P 500 (5) M&A...

1

SoftwareSector Summary

Week of March 27th, 2017

2

SOFTWARE DEAL DASHBOARD

Notes:Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 03/24/2017.1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Select Software M&A transactions reflect notable transactions in CY2016 and CY2017 YTD.5) 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. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3)

$Bn $Bn

34%

94%54%

20%

Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4)

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

$2,500.0 $26.2

$349.7 $8.7

$85.8 $8.7

$80.0 $6.1

$54.0 $3.9

$50.0 $3.3

$25.0 $2.8

$25.0 $2.4

Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6)

`

$12.9 BillionFinancing Volume 2017 YTD (1)(2)

143Financing Transactions 2017 YTD (1)(2)

$11.5 BillionM&A Volume 2017 YTD (3)

23M&A Transactions 2017 YTD (3)

7286

118103 111

127

94

123143

0

30

60

90

120

150

180

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16Q1'17

$3$4

$6 $6

$9$10

$5 $6

$13

$0

$3

$6

$9

$12

$15

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16Q1'17

$5

$14

$24$15

$7

$50

$41

$15$11

$0

$10

$20

$30

$40

$50

$60

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17

7

13

2427

15

2924

2723

0

10

20

30

40

50

Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16Q1'17

(Software Business Division)

15.1%

27.3%

( )

TD TD

TDTD

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

SPX IGV

3

RECENT STOCK PERFORMANCEIndex Performance

Last 12 Months Last 3 Years

Notes:Source: Capital IQ. Market Data as of 03/24/2017.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, 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, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

(20%)

(10%)

0%

10%

20%

30%

40%

Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

Sector 3 Months 1 Year 3 Years

Platform 5% 15% 31%

Infrastructure 7% 33% 5%

Security 11% 19% 17%

SaaS / On Demand 14% 30% 28%

BI & Analytics 10% 18% (17%)

Vertical 12% 17% 13%

4

TRADING COMPARABLESValuation Metrics

EV / 2016E Revenue EV / 2016E EBITDA

Notes:Source: Capital IQ. Market Data as of 03/24/2017.Figures represent mean values of respective comp groups.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, 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, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

5.8x5.4x

4.9x 4.8x

4.3x

3.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

SaaS / OnDemand

Infrastructure Platform Vertical Security BI & Analytics

37.6x

29.0x

24.6x

18.5x17.0x

14.3x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

45.0x

SaaS / OnDemand

Vertical Security Platform Infrastructure BI & Analytics

5

TRADING COMPARABLESOperational Metrics

2016 EBITDA Margin2017 / 2016 Rev. Growth

Notes:Source: Capital IQ. Market Data as of 03/24/2017.Figures represent mean values of respective comp groups.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, 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, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

19%

15% 15%14% 14%

10%

0%

5%

10%

15%

20%

25%

SaaS / OnDemand

Security BI & Analytics Infrastructure Vertical Platform

29%

24%

21% 20%

17% 16%

0%

5%

10%

15%

20%

25%

30%

35%

Platform Infrastructure BI & Analytics Security Vertical SaaS / OnDemand

6

PUBLIC COMPANY VALUATIONSSoftware Trading Statistics

Notes:Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM.Negative margins considered NM. Market Data as of 03/24/2017.

$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

3/24/2017 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. $835.14 $577,432 ($82,398) $495,034 5.5x 4.7x 16.6x 11.5x 30.0x 20.1x 20.4% 17.6% 33.1% 40.6%

Microsoft Corporation $64.98 502,135 (33,399) 468,736 5.5 4.7 16.9 12.6 30.6 21.4 (2.7%) 17.0% 32.4% 37.1%

Oracle Corporation $44.65 183,720 (5,385) 178,335 4.8 4.7 12.2 10.5 21.3 16.3 (0.6%) 2.3% 39.2% 44.6%

International Business Machines Corporation $173.83 163,959 33,649 197,608 2.5 2.5 10.7 10.1 14.0 12.6 (2.2%) (1.6%) 23.2% 24.8%

SAP SE $98.04 117,511 4,204 121,715 5.2 4.7 19.1 13.7 30.5 21.5 3.1% 10.2% 27.4% 34.7%

Red Hat, Inc. $82.96 14,791 (555) 14,236 6.1 5.4 35.7 20.4 63.3 33.1 17.9% 12.7% 17.1% 26.6%

Mean 4.9x 4.5x 18.5x 13.1x 31.6x 20.8x 6.0% 9.7% 28.7% 34.7%

Median 5.3 4.7 16.7 12.0 30.3 20.7 1.2% 11.4% 29.9% 35.9%

Infrastructure

VMware, Inc. $91.73 $37,485 ($6,485) $31,000 4.4x 4.1x 16.8x 11.1x 33.0x 18.9x 6.7% 6.7% 26.1% 36.9%

Red Hat, Inc. $82.96 14,791 (555) 14,236 6.1 5.4 35.7 20.4 63.3 33.1 17.9% 12.7% 17.1% 26.6%

ServiceNow, Inc. $84.81 14,079 (392) 13,688 9.8 7.4 NM 34.3 NM 78.7 38.3% 32.2% NM 21.7%

CA, Inc. $31.86 13,317 (739) 12,578 3.1 3.1 9.8 8.1 17.0 13.5 (0.1%) (0.8%) 31.8% 39.0%

Citrix Systems, Inc. $83.14 12,999 (336) 12,663 3.7 4.5 12.3 12.6 24.4 17.9 4.4% (17.2%) 30.0% 35.6%

F5 Networks, Inc. $146.57 9,496 (974) 8,522 4.2 3.9 14.0 10.0 26.5 17.2 3.9% 7.9% 30.2% 39.1%

Splunk Inc. $60.90 8,262 (984) 7,278 7.7 6.1 NM 53.1 NM NM 42.1% 25.6% NM 11.5%

Atlassian Corporation Plc $29.43 6,547 (795) 5,752 10.8 8.2 NM 40.3 NM 83.1 37.2% 31.7% NM 20.4%

Micro Focus International plc $27.40 6,286 1,613 7,899 5.8 5.6 12.5 11.8 16.4 15.3 9.2% 3.5% 46.6% 47.8%

LogMeIn, Inc. $96.15 5,055 (166) 4,888 14.5 4.9 NM 14.4 NM 25.6 23.7% 5.6% 12.2% 33.9%

NetScout Systems, Inc. $37.25 3,419 (60) 3,359 3.0 2.7 29.8 10.1 NM 17.8 43.1% 9.5% 10.0% 26.9%

Software Aktiengesellschaft $39.62 3,027 (91) 2,936 3.2 3.0 10.7 9.7 20.4 14.9 (2.9%) 5.3% 29.8% 31.3%

Nutanix, Inc. $19.50 2,793 (355) 2,438 4.0 2.8 NM NM NM NM 83.4% 42.0% NM NM

Commvault Systems, Inc. $49.10 2,213 (437) 1,776 2.8 2.6 NM 19.9 NM 48.6 8.7% 5.3% 2.7% 13.3%

Pure Storage, Inc. $9.90 1,979 (547) 1,432 2.0 1.4 NM NM NM NM 65.3% 36.1% NM NM

New Relic, Inc. $36.44 1,923 (196) 1,728 7.1 5.5 NM NM NM NM 49.6% 30.5% NM NM

Progress Software Corporation $28.03 1,366 (115) 1,251 3.1 3.2 11.5 9.0 NM 16.9 7.4% (3.5%) 26.9% 35.4%

A10 Networks, Inc. $9.18 627 (114) 513 2.2 2.0 NM 25.3 NM 81.4 15.6% 13.2% NM 7.8%

Mean 5.4x 4.3x 17.0x 19.3x 28.7x 34.5x 25.2% 13.7% 23.9% 28.5%

Median 4.1 4.0 12.5 12.6 24.4 18.4 16.8% 8.7% 26.9% 31.3%

7







Security Software

Symantec Corporation $30.47 $18,856 $1,563 $20,419 5.4x 4.0x 23.3x 8.5x NM 19.5x 4.2% 34.5% 23.2% 47.1%

Check Point Software Technologies Ltd. $103.38 18,081 (1,373) 16,708 9.6 8.9 19.3 16.6 24.7 20.0 6.8% 7.4% 49.7% 53.9%

Palo Alto Networks, Inc. $111.77 10,287 (842) 9,445 6.0 5.0 NM 21.7 NM 40.7 36.3% 21.4% NM 22.9%

Splunk Inc. $60.90 8,262 (984) 7,278 7.7 6.1 NM 53.1 NM NM 42.1% 25.6% NM 11.5%

Fortinet, Inc. $36.30 6,364 (1,086) 5,279 4.1 3.6 55.1 17.7 NM 40.8 26.4% 16.1% 7.5% 20.1%

Trend Micro Incorporated $43.82 6,009 (1,153) 4,856 4.3 3.7 12.4 11.1 28.6 26.5 9.3% 17.1% 34.5% 33.1%

Proofpoint, Inc. $73.37 3,177 (30) 3,147 8.4 6.4 NM 59.8 NM NM 41.5% 31.1% NM 10.7%

FireEye, Inc. $12.28 2,180 (194) 1,986 2.8 2.7 NM 76.4 NM NM 14.6% 1.3% NM 3.6%

CyberArk Software Ltd. $48.78 1,679 (275) 1,404 6.5 5.2 33.1 21.7 62.5 39.3 34.7% 24.1% 19.6% 24.0%

Imperva, Inc. $40.60 1,358 (261) 1,097 4.1 3.5 NM 40.1 NM NM 12.9% 19.8% NM 8.6%

Qualys, Inc. $35.70 1,298 (244) 1,054 5.3 4.7 22.0 14.6 71.4 42.2 20.5% 14.4% 24.2% 32.0%

Barracuda Networks, Inc. $23.04 1,216 (190) 1,026 3.0 2.8 29.4 14.1 NM 31.4 12.5% 6.4% 10.0% 19.7%

Mimecast Limited $21.51 1,186 (100) 1,086 6.3 5.1 NM 65.7 NM NM 26.1% 25.3% NM 7.7%

SecureWorks Corp. $11.56 933 (111) 822 1.9 1.7 NM NM NM NM 26.0% 14.7% NM NM

Rapid7, Inc. $14.45 615 (72) 543 3.4 2.8 NM NM NM NM 42.4% 24.1% NM NM

F-Secure Oyj $3.50 547 (98) 449 2.7 2.4 18.8 23.4 33.2 52.1 4.2% 9.9% 14.3% 10.5%

VASCO Data Security International, Inc. $12.90 514 (144) 369 1.9 2.0 22.8 23.5 48.5 46.9 (20.4%) (3.3%) 8.4% 8.5%

MobileIron, Inc. $4.40 393 (90) 302 1.8 1.7 NM NM NM NM 9.8% 11.2% NM NM

Zix Corporation $4.63 248 (26) 222 3.7 3.4 18.6 12.4 42.7 16.9 9.9% 9.5% 19.8% 27.3%

Absolute Software Corporation $5.53 216 (38) 178 2.0 1.8 16.0 19.1 NM 84.9 (4.2%) 10.0% 12.6% 9.6%

Guidance Software, Inc. $5.84 187 (9) 179 1.6 1.5 NM 14.3 NM 19.0 3.3% 4.6% NM 10.8%

iPass Inc. $1.17 77 (16) 61 1.0 0.9 NM NM NM NM 1.1% 11.2% NM NM

Mean 4.3x 3.6x 24.6x 28.5x 44.5x 36.9x 16.4% 15.3% 20.3% 20.1%

Median 3.9 3.4 22.0 20.4 42.7 39.3 12.7% 14.5% 19.6% 15.6%

8







SaaS / On Demand

Salesforce.com, inc. $81.61 $57,739 $501 $58,240 6.9x 5.7x NM 26.8x NM 63.2x 25.9% 21.3% 6.0% 21.3%

Workday, Inc. $82.95 16,839 (1,462) 15,377 9.8 7.6 NM 56.9 NM NM 35.0% 28.9% NM 13.4%

ServiceNow, Inc. $84.81 14,079 (392) 13,688 9.8 7.4 NM 34.3 NM 78.7 38.3% 32.2% NM 21.7%

Veeva Systems Inc. $49.57 6,799 (519) 6,280 11.5 9.5 51.6 31.2 NM 62.5 32.9% 21.0% 22.4% 30.5%

Shopify Inc. $68.98 6,223 (395) 5,827 15.0 9.7 NM NM NM NM 89.7% 53.9% NM 0.1%

The Ultimate Software Group, Inc. $190.39 5,647 (80) 5,567 7.1 5.7 82.4 23.8 NM 48.0 26.4% 24.0% 8.7% 24.2%

LogMeIn, Inc. $96.15 5,055 (166) 4,888 14.5 4.9 NM 14.4 NM 25.6 23.7% 5.6% 12.2% 33.9%

Aspen Technology, Inc. $57.27 4,357 0 4,357 9.2 9.0 19.7 19.2 33.2 30.6 1.7% 2.6% 46.7% 46.8%

j2 Global, Inc. $83.75 4,036 657 4,692 5.4 4.1 12.7 9.8 26.8 14.3 21.3% 32.1% 42.3% 41.4%

Blackbaud, Inc. $76.14 3,535 326 3,861 5.3 4.9 31.0 20.5 86.5 35.7 14.6% 7.8% 17.1% 23.9%

Paycom Software, Inc. $54.94 3,268 (30) 3,238 9.8 7.6 47.6 28.2 74.5 54.0 46.5% 28.7% 20.7% 27.1%

RealPage, Inc. $34.85 2,821 17 2,839 5.0 4.2 34.9 17.3 NM 37.8 21.3% 18.8% 14.3% 24.3%

Zendesk, Inc. $26.86 2,606 (225) 2,381 7.6 5.7 NM NM NM NM 49.4% 34.6% NM 2.9%

Cornerstone OnDemand, Inc. $38.91 2,205 (64) 2,141 5.1 4.5 NM 41.3 NM NM 24.6% 13.7% NM 10.8%

HubSpot, Inc. $60.55 2,189 (113) 2,076 7.7 5.9 NM NM NM NM 48.9% 29.9% NM 1.0%

Box, Inc. $16.37 2,088 (102) 1,986 5.0 3.9 NM NM NM NM 31.7% 26.2% NM NM

RingCentral, Inc. $26.95 2,008 (145) 1,863 4.9 3.9 NM 62.0 NM NM 28.2% 27.4% NM 6.2%

New Relic, Inc. $36.44 1,923 (196) 1,728 7.1 5.5 NM NM NM NM 49.6% 30.5% NM NM

Paylocity Holding Corporation $35.02 1,801 (82) 1,719 6.5 5.2 NM 36.4 NM 75.7 40.8% 25.6% 2.7% 14.3%

2U, Inc. $37.66 1,779 (161) 1,618 7.9 6.0 NM NM NM NM 37.1% 30.9% NM 3.4%

Callidus Software Inc. $20.90 1,332 (185) 1,147 5.5 4.7 NM 38.1 NM 65.5 19.4% 17.9% NM 12.3%

Qualys, Inc. $35.70 1,298 (244) 1,054 5.3 4.7 22.0 14.6 71.4 42.2 20.5% 14.4% 24.2% 32.0%

Coupa Software Incorporated $23.88 1,194 (202) 992 7.4 5.9 NM NM NM NM 59.9% 26.1% NM NM

Mimecast Limited $21.51 1,186 (100) 1,086 6.3 5.1 NM 65.7 NM NM 26.1% 25.3% NM 7.7%

9







SaaS / On Demand (cont'd)

Five9, Inc. $18.52 $989 ($12) $977 6.0x 5.2x NM NM NM NM 25.8% 16.4% 1.1% 5.0%

SPS Commerce, Inc. $56.48 970 (139) 831 4.3 3.8 44.1 26.0 NM 68.9 21.9% 14.3% 9.8% 14.4%

Benefitfocus, Inc. $26.75 822 42 864 3.7 3.2 NM 56.4 NM NM 26.0% 14.0% NM 5.8%

Instructure, Inc. $24.00 688 (68) 619 5.6 4.1 NM NM NM NM 51.5% 35.6% NM NM

Workiva Inc. $15.10 623 (42) 581 3.3 2.8 NM NM NM NM 23.0% 14.5% NM NM

Carbonite, Inc. $19.30 543 (59) 484 2.3 2.0 34.2 8.2 NM 25.7 51.5% 15.6% 6.8% 24.7%

Apptio, Inc. $11.79 453 (79) 374 2.3 2.1 NM NM NM NM 24.2% 12.0% NM NM

LivePerson, Inc. $6.75 394 (51) 343 1.5 1.7 38.3 18.3 NM 76.4 (6.8%) (8.1%) 4.0% 9.1%

Bazaarvoice, Inc. $4.25 352 (46) 305 1.5 1.5 NM 18.2 NM NM 2.2% 1.7% NM 8.2%

Jive Software, Inc. $4.35 344 (109) 236 1.2 1.2 NM 10.7 NM 41.4 4.2% (0.1%) NM 10.8%

Castlight Health, Inc. $3.20 337 (115) 223 2.2 1.8 NM NM NM NM 35.0% 19.8% NM NM

Brightcove Inc. $9.05 308 (36) 272 1.8 1.7 NM 31.4 NM 94.3 11.6% 9.1% NM 5.3%

ChannelAdvisor Corporation $10.85 285 (62) 223 2.0 1.8 NM 33.5 NM NM 12.5% 9.0% NM 5.4%

Park City Group, Inc. $11.95 232 (9) 223 13.6 NA 63.9 NA NM NA 21.6% NA 21.3% NA

Amber Road, Inc. $7.66 207 7 214 2.9 2.6 NM NM NM NM 9.0% 11.9% NM NM

Tangoe, Inc. $5.04 199 (32) 167 0.7 NA 6.8 NA 13.1 NA NA NA 10.6% NA

Covisint Corporation $2.00 82 (30) 51 0.7 NA NM NA NM NA (10.4%) NA NM NA

Marin Software Incorporated $1.75 69 (31) 38 0.4 0.4 NM NM NM NM (8.0%) (11.9%) NM NM

Mean 5.8x 4.5x 37.6x 29.7x 50.9x 52.3x 27.0% 18.8% 15.9% 16.3%

Median 5.3 4.7 34.9 26.8 52.3 51.0 25.8% 18.8% 12.2% 12.9%

10







Business Intelligence & Analytics

Splunk Inc. $60.90 $8,262 ($984) $7,278 7.7x 6.1x NM 53.1x NM NM 42.1% 25.6% NM 11.5%

Teradata Corporation $30.30 3,966 (406) 3,560 1.5 1.7 9.4 8.7 31.9 21.3 (8.2%) (8.5%) 16.4% 19.2%

Fair Isaac Corporation $126.85 3,940 533 4,472 5.0 4.8 21.6 17.9 32.0 24.3 6.1% 4.4% 23.0% 26.6%

Tableau Software, Inc. $48.41 3,778 (909) 2,870 3.5 3.3 NM 53.3 NM NM 26.5% 6.7% NM 6.1%

Verint Systems Inc. $40.40 2,532 442 2,974 2.8 2.6 12.8 11.5 16.3 14.8 (5.5%) 5.8% 21.7% 22.9%

MicroStrategy Incorporated $186.14 2,129 (589) 1,539 3.0 2.9 13.3 10.8 23.6 24.4 (3.3%) 2.6% 22.6% 27.0%

Hortonworks, Inc. $9.31 581 (85) 495 2.7 2.1 NM NM NM NM 51.3% 29.0% NM NM

Gridsum Holding Inc. $12.34 367 (76) 291 5.0 3.2 NM 55.8 NM 99.5 59.4% 57.9% NM 5.7%

Attunity Ltd. $7.64 129 (9) 120 2.2 1.9 NM 17.8 NM 46.3 13.1% 15.2% NM 10.7%

Datawatch Corporation $8.30 100 (26) 73 2.3 2.1 NM NM NM NM 4.4% 10.9% NM NM

Mean 3.6x 3.1x 14.3x 28.6x 25.9x 38.5x 18.6% 14.9% 20.9% 16.2%

Median 2.9 2.8 13.1 17.8 27.7 24.4 9.6% 8.8% 22.2% 15.3%

Vertical

Cerner Corporation $57.77 $19,048 $207 $19,255 4.1x 3.7x 14.6x 11.3x 31.2x 23.2x 8.2% 10.1% 27.9% 32.9%

Constellation Software Inc. $488.63 10,355 (11) 10,344 4.9 4.3 25.4 16.7 50.1 21.9 15.6% 12.2% 19.2% 26.0%

SS&C Technologies Holdings, Inc. $35.61 7,234 2,384 9,617 6.5 5.8 18.7 13.7 55.6 18.5 48.1% 12.8% 34.7% 41.9%

Veeva Systems Inc. $49.57 6,799 (519) 6,280 11.5 9.5 51.6 31.2 NM 62.5 32.9% 21.0% 22.4% 30.5%

athenahealth, Inc. $108.60 4,292 144 4,435 4.1 3.4 41.4 14.4 NM 44.1 17.1% 19.0% 9.9% 23.9%

Guidewire Software, Inc. $55.47 4,102 (583) 3,519 7.8 6.6 NM 41.0 NM 81.8 13.6% 17.8% 4.3% 16.2%

Blackbaud, Inc. $76.14 3,535 326 3,861 5.3 4.9 31.0 20.5 86.5 35.7 14.6% 7.8% 17.1% 23.9%

Ellie Mae, Inc. $98.14 3,314 (422) 2,892 8.0 6.6 39.5 19.9 85.3 52.0 41.9% 21.8% 20.3% 33.2%

CoreLogic, Inc. $39.16 3,310 1,532 4,842 2.5 2.6 11.5 10.3 31.8 17.3 27.8% (4.8%) 21.5% 25.2%

Medidata Solutions, Inc. $55.97 3,231 (111) 3,120 6.7 5.7 47.6 23.3 NM 45.0 18.1% 19.0% 14.1% 24.2%

RealPage, Inc. $34.85 2,821 17 2,839 5.0 4.2 34.9 17.3 NM 37.8 21.3% 18.8% 14.3% 24.3%

Allscripts Healthcare Solutions, Inc. $11.98 2,163 1,235 3,397 2.2 2.0 22.3 9.6 NM 19.2 11.8% 11.0% 9.8% 20.6%

WebMD Health Corp. $50.32 1,854 54 1,908 2.7 2.7 10.1 8.0 25.6 24.9 10.8% 1.9% 26.7% 33.0%

Inovalon Holdings, Inc. $11.75 1,739 (306) 1,433 3.4 3.2 19.3 13.6 65.4 39.3 (2.2%) 4.0% 17.3% 23.8%

AppFolio, Inc. $25.70 867 (26) 841 8.0 6.1 NM 60.7 NM NM 40.8% 30.1% NM 10.1%

HealthStream, Inc. $22.73 722 (103) 619 2.7 2.5 29.4 17.3 NM NM 8.1% 11.8% 9.3% 14.2%

Instructure, Inc. $24.00 688 (68) 619 5.6 4.1 NM NM NM NM 51.5% 35.6% NM NM

Silver Spring Networks, Inc. $10.56 560 (118) 442 1.4 1.4 NM 27.4 NM 56.8 (36.5%) 3.2% NM 5.0%

Castlight Health, Inc. $3.20 337 (115) 223 2.2 1.8 NM NM NM NM 35.0% 19.8% NM NM

Exa Corporation $12.92 192 (22) 171 2.3 2.2 38.1 29.4 NM NM 10.9% 4.9% 6.2% 7.6%

Mean 4.8x 4.2x 29.0x 21.4x 54.0x 38.7x 19.5% 13.9% 17.2% 23.1%

Median 4.5 3.9 29.4 17.3 52.9 37.8 16.4% 12.5% 17.2% 24.1%

11

Notes:

Sources: Capital IQ as of 03/24/2017. Consensus Estimates used for CY17E figures.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.63.

When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E FCF Margin % is 0.41.

Estimates for COVS, TNGO and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOWEn

terp

rise

Val

ue

/ C

Y 2

01

7E

Re

ven

ue

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

AZPN

BV

BLKB

BOX

CALD

CARB

CSLT

ECOM

CSOD

FIVN

HUBS

INST

LPSN

MIMENEWR

PAYC

PCTY

QLYS

RPRNG

CRM

NOW

SHOP

SPSC

ULTI

VEEV

WDAY

WK

ZEN

TWOU

BNFT

AMBR

JIVE BCOV

COUP

APTI

SPLK

LOGM

(1.0x)

1.0x

3.0x

5.0x

7.0x

9.0x

11.0x

(10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

R = 0.80

12

Notes:

Sources: Capital IQ as of 03/24/2017. 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.

Estimates for COVS and PCYG are not available.

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO S&M EFFECTIVENESSEn

terp

rise

Val

ue

/ C

Y 2

01

6E

Re

ven

ue

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

CRM

NOW

ULTI

BLKB

PAYC

ZEN

CSOD

PCTY

RP

HUBS

BOX RNG

TWOU

QLYS

SPSCBNFT

CALD

MIMEFIVN

WK

INST

CSLTBV

CARB

JIVETNGO

ECOM

VEEV

WDAY

NEWR

AMBR

AZPN (-0.1x)

LPSN (-0.2x)

MRIN (-0.3x)

JCOM

BCOV

COUP

APTI

SPLK

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

R = 0.58

13

RECENT ACQUISITIONSSelect Software M&A Transactions

Notes:Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 03/24/2017.Transactions highlighted in yellow denote Private Equity Acquirers.

($MM)

Announced Aggregate AV / Revenue

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

3/21/17 Application Software $270 NA NAProvides water resource and environmental management and simulation software to the util ities industry globally. Stantec obtained

ownership of Innovyze through the 2016 acquisition of MWH Global

3/20/17 Application Software $205 7.3x NAProvides investment portfolio business intell igence (BI) software for the investment and finance sector globally. Software provides

features for data management, portfolio performance analytics, risk management and reporting

3/7/17 Security $614 5.6x NAProvides automated application penetration and network vulnerability testing SaaS for enterprise software

developers

3/7/17 Application Software $317 5.3x NAProvides on-premise and cloud-based accounting and performance management software and SaaS, including

budgeting, planning, reporting and analytics, for businesses

2/28/17 Security $105 10.5x NAProvides behavior-based profiling SaaS for enterprises, enabling breach-detection and visibility into advanced or

targeted attacks, insider threats and malware that have circumvented traditional security controls

2/27/17 Application Software $290 8.1x NAThe multi-family housing business and product portfolio of Rainmaker, which provides revenue budgeting,

forecasting and revenue cycle management software for multi-family real estate sectors

2/23/17 Enterprise Networking $325 5.4x NA

Provides software-based domain name services (DNS), Dynamic Host Configuration Protocol (DHCP) and IP address

management SaaS for enterprises. Software provides features for the management and automation of network DNS

activity, mobile BYOD device management and the detection of threats

2/23/17 Application Software $175 2.4x 2.3x

Provides Web-based SaaS for the automation and management of performance appraisals, feedback, compensation

management, succession planning, job descriptions, learning management and recruiting for corporate HR

departments

2/15/17 Application Software $102 1.3x NAProvides insurance policy and pharmacy claims processing software and SaaS for the insurance and pharmaceutical

sector. Also provides colocation, disaster recovery, managed hosting and systems integration services

2/14/17 Application Software $59 1.9x 1.6x Provides wealth management and ERP and transaction processing SaaS for the investment and finance sector globally

2/9/17 Nokia Corporation Comptel Corporation Carrier Infrastructure $359 3.4x 3.0xProvides network management and operational support system (OSS) software and related managed services for

telecom service provides globally

2/8/17 Sophos Invincea Security $120 12.2x NA

Provides endpoint security software for small businesses and enterprises in the healthcare, financial services and

government industries. Software provides features for detection of spear-phishing, watering hole and website

hijacking attacks. Also provides server security breach management SaaS

2/2/17 Hexagon ABMSC Software

CorporationApplication Software $834 3.6x NA Provides motion control, dynamics and acoustical vibration simulation and modeling software for businesses

2/1/17 Fingerprint Cards AB Delta ID Inc. Security $120 NA NA Provides iris recognition biometric systems for use in mobile devices and automobiles

1/31/17 Storage $65 NA NAProvides on-site, hosted and cloud-based back-up and recovery, data protection and replication software for use in

disaster recovery for businesses( )

( )

( )

( )

(Multi-Family Housing Business)

( )

( )

14



($MM)



1/27/17 Application Software $128 NA NA

Provides K-12 education assessment management software for schools and educators. Software provides features for

summative assessments design and testing for grades 3-8 according to state, district and federal regulations, scoring

and reporting to students

1/25/17 Application Software $1,400 NA NA

Provides electronic medication prior authorization software for pharmacies, healthcare providers, and

pharmaceutical companies. Software is integrated into electronic health records so that healthcare providers and

doctors can provide electronic authorization for patients to take medications

1/24/17Infrastructure

Management $3,903 18.9x NA

Provides application performance management (APM) SaaS and mobile applications, enabling the monitoring and

troubleshooting of applications, extensions, plugins, databases, and servers for businesses. Also provides related

analytics reporting software

1/20/17 Hosted Services $84 NA NAProvides domain name registration and related services to corporate and consumer website owners. Related services

include web hosting and an auction service for website domain name resellers

1/19/17 Application Software $800 4.6x NAProvides project and portfolio management SaaS and related systems integration services for enterprises. Software

includes features for plan design, agile project portfolio management and cost analysis and control

1/17/17 Storage $650 6.5x NA

Provides backup and recovery storage systems and storage management software for businesses. Storage systems

feature virtual machine (VM) level management, in-line de-duplication and compression of data, including backup

copies of VMs that can be replicated to secondary datacenters

1/9/17 Information Management $425 NA NA

Provides social collaboration online software for enterprise employees and consumers. Software allows employees

and consumers to create "boards" where members collaborate to complete tasks for a project, with features that

include messaging and notifications

1/4/17 Application Software $134 19.1x 7.0x

Provides health benefits management SaaS for businesses. Software provides features for financial management,

customized health benefit plans, and data and analytics reporting. Also provides mobile access and systems

integration services

12/23/16 Application Software $53 NA NAProvides cloud-based global import and export trade reference software and an online database of analysis content,

cargo details and related company profiles for businesses at www.datamyne.com

12/20/16 Application Software $67 NA NA Provides client reporting software and services for the investment and financial services sectors globally

12/20/16 Security $560 NA NAProvides digital rights management SaaS for businesses and content producers, as well as an online digital music and

video content recognition database for consumers and the entertainment sector

12/19/16 Application Software $160 3.9x NA

Provides insurance policy administration and management software as a service (SaaS) and on-premise for property

and casualty insurance companies. Features include claims management, billing and document management. Also

provides related services

12/19/16 Mobility $67 NA NADesigns and develops graphical user interfaces (GUI) for mobile phones and automotive displays, to automotive and

other embedded display manufacturers


The vendor management software and related assets of Beeline, which provides vendor management systems (VMS)

for businesses globally. Software provides spending management, procurement cycle automation and quality control

monitoring


Provides on premise and cloud-based channel and contract management software for businesses in the life sciences

industry. Software provides features for revenue management, contract lifecycle management and performance

analytics reporting( )

)(

( )

( )

( )

( )

15


Notes:Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 03/24/2017.Transactions highlighted in yellow denote Private Equity Acquirers. (1) Aggregate Value represents the majority stake being acquired by KKR. The Blackstone Group will maintain a minority stake.

($MM)



12/9/16 Security $850 4.0x NA

The identity management business of 3M, which consists of 3M Cogent, a biometric identification system, and 3M's

document reader and secure materials systems and software. Assets are used by civil identification, border control

and law enforcement agencies


Sungard's public sector business, which provides ERP administration SaaS for government and public safety entities

and the K-12 business, which provides cloud-based administration and student management software for K-12

educators

12/6/16Hosted Services / Managed

Security Services $1,800 2.6x NA

Provides network and wireless network IT security auditing, compliance and penetration testing services for

businesses and government agencies globally. Also operates as an information security VAR and provides security

systems integration services

12/6/16 Application Software $2,800 NA 5.2xProvides ERP, HR management, CRM and project management software, SaaS and systems integration services, for

government contractors, professional services firms and other project-based businesses globally

12/6/16 Information Management $854 2.9x 2.7xProvides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology

and manufacturing industries to securely exchange documents and sync files

12/2/16 Application Software $65 6.5x NA Provides IoT predictive analytics, data mining and event processing software and SaaS for businesses


Management $636 5.1x NA

Provides IT process automation and job scheduling software for businesses globally. Applications manage file

transfers, virtual machine provisioning, application release management and error identification and remediation

11/30/16 Information Management $112 2.2x NAProvides enterprise data quality SaaS for business. Software provides features for data analysis, profiling, validation

and cleansing for businesses operating in the retail, insurance, healthcare and financial industries

11/29/16 Application Software $190 3.8x NA Provides online advertising campaign management and ad-serving SaaS for businesses

11/20/16 Security $2,362 3.6x 3.3x Provides online identity theft and credit rating monitoring software for consumers and businesses in the US

11/15/16 Information Management $153 NA NAProvides Industrial Internet of Things (IIoT) data integration automation and analytics SaaS for businesses in the

energy, aviation and manufacturing sectors


Provides field service and contract management SaaS and mobile applications for service-oriented businesses and

enterprises. Software provides features for dispatch and scheduling, warranty, parts and return management and

field service metrics reporting


Provides asset and financial management SaaS to businesses and investors in the global aviation industry. Software

provides features for investment management, short term and long term bridge financing, contract financing,

customized portfolio securitization facilities, and transaction and assess risk monetization


Provides SAP-based project, plant and asset management ERP software for enterprises. Software provides features

for scheduling, project planning, workforce management and analytics reporting, accessible on desktop systems and

mobile devices

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

( )

(Public Sector & K-12 Education Businesses)/

(Identity Management Business)

( )

( )

(1)

16



($MM)



10/27/16 Information Management $55 NA 3.7xProvides 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


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 Security $60 NA NA

Provides cloud-based third-party access control SaaS to IT businesses, enabling access to applications that are hosted

in data centers and to Microsoft SharePoint on enterprise networks. Software also provides data path protection,

identity access management and application security

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 NAProvides 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


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 NAProvides 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


Management $60 12.0x NA

Provides 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

9/8/16 API Management SaaS $562 6.1x 5.0x

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

( )

( )

(Technology Assets)

( )

(ECM Bus iness)

17



($MM)



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 $1,402 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

8/18/16Internet Software &

Services $122 3.9x NA

Provides 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


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 5.8xProvides GPS-based vehicle tracking and mobile workforce management SaaS for service-based businesses and the

construction industry globally

7/28/16 Application Software $8,709 9.7x 7.7xProvides 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 $1,009 1.9x 1.9x

Provides 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 and outsourced e-

discovery and class-action lawsuit claims

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

All Software

Median 4.0x 11.1x

Mean 6.2x 4.0x

PE

Median 3.1x 2.3x

Mean 5.1x 2.5x

/

)(

(Software Business Division)

( )

18

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 03/24/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

3/23/17 DataRobot $54Developer of an advanced enterprise machine learning platform designed to build machine learning

models. New Enterprise Associates

3/23/17 Kuaishou Technology $350 Developer of a video sharing and live streaming platform. Tencent

3/23/17 Lystable $21 Provider of a vendor management platform. Glynn Capital Management, Goldcrest Capital, Kindred Capital, LeFrak, Max Levchin, SciFi

VC, Wilmot Ventures, Spring Capital Partners, Valar Ventures

3/23/17Shenzhen Qianhai Dadao

Financial Services$29

Operator of a real estate financing service platform designed to facilitate second-hand property

transactions. China Renaissance, Pacific Alliance Group, Sequoia Capital China

3/23/17 Zenreach $30Developer of a modern marketing platform designed to provide CRM and marketing automation

services for offline businesses.

8VC, Ashton Kutcher, Kevin Durant, Maverick Ventures, Bain Capital Ventures, First

Round Capital, Founders Fund, SV Angel

3/22/17 Avaloq $350 Developer of banking software systems. NA

3/22/17 HotelTonight $37 Provider of a hotel booking platform created to make last minute online bookings for hotels. Altimeter Capital Management, RSC Capital, Accel, Aspect Venture Partners, Battery

Ventures, Coatue Management, First Round Capital, GGV Capital, US Venture Partners

3/20/17 CloudCheckr $50Developer of a cloud cost management platform designed for AWS (Amazon web services) Security

and Cost Management. Level Equity

3/17/17 Mychebao $100Operator of an used-car online auction platform created to simplify the car-trading experience in

China.Pacific Alliance Group

3/16/17 DraftKings $119Provider of a skill-based daily fantasy sports (DFS) platform designed to engage interactive

experience and daily excitement to the pastime of fantasy sports. Eldridge Industries

3/15/17 Instacart $413Provider of a goods delivery application designed to order and secure delivery of groceries from local

stores.

Wellcome Trust, Andreessen Horowitz, FundersClub, Initialized Capital, Khosla Ventures,

Kleiner Perkins Caufield & Byers, Sequoia Capital, Thrive Capital, Valiant Capital

Partners, Y Combinator

3/15/17 Knime $21 Provider of open-source enterprise software intended to access to advanced data science. Invus Group

3/15/17 Pindrop Security $86Developer of phone fraud detection and call center authentication technology designed to provide

real time identity and security on every voice communication and voice device. CapitalG, John Chambers, Andreessen Horowitz, Citi Ventures, Felicis Ventures, GV, IVP

3/15/17 ServiceTitan $80Developer of a cloud-based service management software designed to build a business to serve

home services contractors. ICONIQ Capital

3/14/17 Evrythng $25 Provider of a software platfrom for creating profiles of physical objects on Web.

Accelerate-IT Ventures, Bloc Ventures, Generation Ventures, Advance Vixeid Partners,

Atomico Uk Partners, BHLP, Cisco Investments, Dawn Capital, Samsung Venture

Investment

19



($MM)



3/14/17 Icertis $25Provider of a cloud-based easy-to-use enterprise contract management platform designed to control

and increase revenue velocity. B Capital Group, Greycroft Partners

3/14/17 SolarisBank $28Provider of an API-based Banking-as-a-Platform (BaaP) designed to integrate banking services for

emerging digital-first companies. Arvato Bertelsmann, SBI Holdings, UniCredit, FinLeap, Hegus, yabeo Capital

3/13/17 Skuid $25Developer of a cloud user interface experience (UX) platform designed to give tailored solutions at

the speed of business. ICONIQ Capital, K1 Capital

3/10/17 Canopy Tax $20Developer of an online tax workflow management software designed to streamline tax resolution for

tax professionals. Pelion Venture Partners, Deep Fork Capital, EPIC Ventures, New Enterprise Associates

3/10/17 JobToday $35Developer of an online platform designed to revolutionize the way candidates find jobs and

employers hire staff. RTL Group, Astremedia, Channel Four Television, German Media Pool

3/9/17 Airbnb $1,003 Operator of an online property rental marketplace designed for short-term travel stays. Aventura VC, CapitalG, Technology Crossover Ventures, Andreessen Horowitz, Sequoia

Capital

3/9/17 Viva Republica $48

Provider of a financial services mobile application designed to simplify payments in Korea. The

company's financial platform offers a peer-to-peer mobile money transfer application that enables

users to transfer money from their own bank accounts into the recipient's account.

Bessemer Venture Partners, Partech Ventures, Paypal, Altos Ventures, Goodwater Capital

3/8/17 CurrencyCloud $25Developer of a foreign exchange payments automation platform designed to remit cross border

payments through API. GV, Anthemis Group, Notion Capital, Rakuten, Sapphire Ventures

3/8/17 Veem (US) $25 Provider of payment service for global commerce designed to simplify global business payments. GV, National Australia Bank, SBI Investment, Kleiner Perkins Caufield & Byers, SVB

Capital Partners

3/7/17 Confluent $50Provider of a data streaming platform designed to help other companies get easy access to

enterprise data as real-time streams.Sequoia Capital, Benchmark Capital, Index Ventures

3/7/17 Farmer's Business Network $40Developer of a decision-support system designed to collect crowd-sourced information from

members. Bow Capital, Acre Venture Partners, DBL Partners, GV, Kleiner Perkins Caufield & Byers

3/3/17 24tidy $22

Operator of a laundry service platform in China. The company's laundry service platform enables

users to schedule pickup and drop-off of laundry and dry cleaning items at any time in over ten cities

in China.

China Merchants Group, CITIC Securities, ICH Group

3/3/17 Paytm E-Commerce $200 Operator of an e-commerce platform in India. Alibaba Group, SAIF Partners

3/3/17 Rubicon Global $104 Provider of cloud-based sustainable waste and recycling technology and services.

Blake Mycoskie, Claritas Capital, Hammerstone Capital, Henry Kravis, Leonardo DiCaprio,

Nima Capital, Paul Tudor Jones II, Stelac Capital Partners, Suez Environnement, The

Goldman Sachs Group, Wellington Management

3/2/17 Examity $21 Developer of a proctoring platform designed for educational institutions. Inherent Group, University Ventures

20



($MM)



3/2/17 Hedvig $22Developer of a software-defined storage platform designed to improve the economics of storing and

managing the world's data.

EDB Investments, Hewlett Packard Pathfinder, Oman Investment Fund, Atlantic Bridge

Capital, True Ventures, Vertex Ventures US

3/2/17 Upstart Network $33 Operator of an online lending marketplace intended to provide personal loans. Rakuten, First Round Capital, Khosla Ventures, Third Point Ventures

3/1/17 Kensho $50Provider of cloud-based financial analytics software designed to augment and power decision

making throughout the global financial system.

Citigroup, Wells Fargo, Bank of America Merrill Lynch, Breyer Capital, General Catalyst

Partners, Goldman Sachs Principal Strategic Investments, JP Morgan Private Equity Fund

Services, Morgan Stanley, S&P Global

3/1/17 Nearpod $21Provider of a SaaS based one-to-one learning platform designed to empower educators to create

learning experiences that engage students. Insight Venture Partners, AGP Miami, GSV Ventures, Krillion Ventures, Reach Capital

2/27/17 Ola $330 Developer of a mobile application for transportation designed to integrate city transportation. DST Global, Sequoia Capital India, SoftBank Capital

2/27/17 Prosper $59 Provider of a peer to peer lending marketplace. NA

2/24/17 Cherwell Software $50 Provider of IT service management platform for small and Fortune 500 companies. Kohlberg Kravis Roberts

2/23/17 AirMap $26Provider of an airspace management platform for drones designed to help create the next frontier of

flight.

Airbus Group Ventures, Microsoft Ventures, Qualcomm Ventures, Rakuten, Sony, Yuneec,

General Catalyst Partners, Lux Capital

2/23/17 Atzuche $58 Provider of a P2P car rental and sharing platform. China Equity International, China Securities International, Hangzhou Financial Investment,

China Pacific Insurance, Hearst Ventures, Ivy Capital, Matrix Partners

2/22/17 Anxin Doctor $29 Provider of a mobile application created to connect doctors with their patients. IDG Capital Partners, Matrix Partners China, Qiming Venture Partners

2/22/17 EverQuote $36Operator of an online auto insurance marketplace designed to simplify the process of choosing

insurance policies.

Green D Ventures, Oceanic Partners, Savano Capital Partners, Second Alpha Partners,

Stratim Capital, T Capital Partners, Link Ventures

2/22/17 Mailgun $50Provider of application programming interface (API) for developers designed to send, receive, track

and store email within applications. Scaleworks, Turn/River Capital, Rackspace US

2/22/17 Monzo $24 Developer of a banking application designed to make a bank as smart as a phone. Orange Digital Ventures, Thrive Capital, Passion Capital

2/22/17 Prospa $25 Provider of an online platform designed to lend to small businesses. AirTree Ventures

2/22/17 Tala $30Developer of a mobile-based financial application designed to bring financial access, choice and

control to under served people everywhere.

Artha India Ventures, IVP, Ribbit Capital, Collaborative Fund, Data Collective, Female

Founders Fund, Lowercase Capital

21



($MM)



2/21/17 VATBox $20Provider of business-to-business (B2B) VAT recovery software designed to simplify the laborious VAT

recovery process through intelligent knowledge-based automation. Target Global, Viola Growth

2/21/17 Infor $2,500Developer of an enterprise planning software created to provide cloud-based industry specific

business applications. Koch Equity Development

2/21/17 Haoqiao.cn $26Provider of an online international hotel searching and booking platform designed to enhance

customer experience. China Merchants Capital, Government of China, Shun Hei Capital

2/20/17 Mobike $300 Provider of a bike sharing platform in China designed to allow users to locate nearby bikes.

Ctrip.com International, Foxconn Technology Group, Huazhu Hotels Group, Temasek

Holdings, TPG Capital, Hillhouse Capital Management, Sequoia Capital, Tencent,

Warburg Pincus

2/17/17 Soundtrack Your Brand $27 Developer of consumer music streaming software designed for music streaming. Balderton Capital, Industrifonden, NMT Network, Creandum, HMP Capital, Jorg Mohaupt,

Northzone Ventures, PlayNetwork, Spotify, TeliaSonera (Sweden), Wellington Partners

2/17/17 ShineZone $58Operator of a Shanghai-based gaming company created to focuses on gaming development and

operations in the US and European markets.

Bank Of Ningbo Company, China Fortune Securities, HT Venture Capital, JiuYou Fund,

Nord Engine Asset Management Group, Shanshan Venture

2/16/17 MobiTV $21 Provider of a platform offering content delivery through mobile and broadband networks. Ally Corporate Finance, Oak Investment Partners

2/16/17 Astro Digital $23 Provider of a satellite imagery platform designed to change the way one access satellite imagery. Larnabel Enterprises, VP Capital, GVA Capital, Vast Ventures

2/15/17 Top Hat $23 Provider of a web based classroom response platform designed to connect professors with students. Union Square Ventures, Emergence Capital Partners, Georgian Partners, Golden Venture

Partners, iNovia Capital, SoftTech VC, Version One Ventures

2/14/17 Samanage $20Provider of a SaaS-based IT service desk and asset management software designed to manage

service interactions with employees and customers.

Salesforce Ventures, Carmel Ventures, Gemini Israel Funds, Marker, Vintage Investment

Partners

2/13/17 BirdEye $25 Provider of business reputation marketing platform. World Innovation Lab, Trinity Ventures

2/13/17 8i $27Developer of a software platform that allows users to create and share 3D videos for virtual reality,

augmented reality and the web.

Baidu Venture, Hearst Ventures, Seed & Speed Ventures, Time Warner Investments,

Verizon Ventures

2/9/17 Evident.IO $22Provider of cloud infrastructure security and compliance automation designed to proactively manage

public cloud security risk. GV, Bain Capital Ventures, True Ventures, Venrock

2/9/17 Diyi Chedai $73 Operator of an online loan-financing platform for the automotive industry.

360 Jinrong, Addor Capital, CreditEase, Southeast University Education Foundation,

Tianma Bearing Group Company, Yixing Capital, CITIC Group, Matrix Partners China,

Youjin Capital

2/9/17 Demisto $20Developer of a incident management platform designed to offer integrated threat intelligence and

security orchestration. ClearSky Power & Technology Fund, Slack Technologies, Accel Partners

22



($MM)



2/9/17 Evident.IO $22Provider of cloud infrastructure security and compliance automation designed to proactively manage

public cloud security risk. GV, Bain Capital Ventures, True Ventures, Venrock

2/9/17 Demisto $20

Developer of a security operations platform. The company develops an integrated automation

software tool which enables users to automatically get alerts if a malicious URL or file is shared in

Slack.

ClearSky Power & Technology Fund, Slack Technologies, Accel Partners

2/8/17 Uptake Technologies $70Developer of a predictive analytics platform designed to transform data into measurable business

value. RevolutionGrowth

2/8/17 HackerOne $40Developer of a vulnerability coordination and bug bounty platform created to empower companies to

protect consumer data, trust and loyalty.Dragoneer Investment Group, Benchmark Capital, New Enterprise Associates

2/8/17 Fuze $104Provider of a cloud-based unified communications platform designed to simplify business voice

communications and flexible video conferencing.

Greenspring Associates, Wellington Management, Bessemer Venture Partners, G20

Ventures, Summit Partners

2/8/17 CarTrade.com $55Operator of an online auto marketplace designed to provide buyers and sellers a structured platform

for transacting new and used vehicles. Temasek Holdings

2/8/17 Book a Tiger $21Provider of an online booking platform for cleaning services intended to offer a personal cleaning

expert. Coller Capital, DN Capital, Tamedia, Target Global

2/8/17 Uptake Technologies $70Developer of a predictive analytics platform designed to transform data into measurable business

value. RevolutionGrowth

2/8/17 CarTrade.com $55Operator of an online auto marketplace designed to provide buyers and sellers a structured platform

for transacting new and used vehicles.Temasek Holdings

2/8/17 HackerOne $40Developer of a vulnerability coordination and bug bounty platform created to empower companies to

protect consumer data, trust and loyalty. Dragoneer Investment Group, Benchmark Capital, New Enterprise Associates

2/7/17 SpringCM $25Provider of cloud based document and contract management platform designed to solve most critical

business needs. Crestline Investors, Foundation Capital

2/7/17 SnapRoute $25 Developer of a open-source platform designed to change data centers creation and maintenance. AT&T, Microsoft Ventures, Norwest Venture Partners, Lightspeed Venture Partners

2/7/17 Netwrix $56Provider of visibility and governance platform designed to detect insider threats on premises and in

the cloud.Updata Partners

2/7/17 Exabeam $30 Provider of an analytics-led security intelligence platform designed to detect data breaches. Cisco Investments, Lightspeed Venture Partners, Aspect Venture Partners, Icon Ventures,

Norwest Venture Partners, Shlomo Kramer

2/7/17 Netwrix $56Provider of visibility and governance platform designed to detect insider threats on premises and in

the cloud.Updata Partners

23

SOFTWARE CAPITAL MARKETS UPDATERecent Software IPO Pricings

Notes:

Source: Capital IQ and Dealogic.

Market Data as of 03/24/2017.

(1) First Trading Day listed as Offer Date.

($ M M )

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

24-Mar-17 $873 $126 12.00 - 14.00 $14.00 7.7% 10.7% 10.7%

16-Mar-17 $3,118 $221 14.00 - 16.00 $17.00 13.3% 45.6% 32.5%

28-Oct-16 $1,169 $146 13.00 - 15.00 $17.00 21.4% 40.5% 69.7%

6-Oct-16 $1,601 $133 14.00 - 16.00 $18.00 20.0% 84.9% 32.7%

30-Sep-16 $5,079 $238 11.00 - 13.00 $16.00 33.3% 131.3% 21.9%

23-Sep-16 $841 $96 13.00 - 15.00 $16.00 14.3% 40.9% (26.3%)

23-Sep-16 $453 $87 10.50 - 12.50 $13.00 13.0% 21.2% (5.1%)

Name

24

IPO PIPELINESoftware IPOs in Public Registration

Notes:Source: Pitchbook and SEC.gov.Offering amounts $10MM or greater. (1) LTM as of 01/31/2017.(2) LTM as of 12/31/2016.

($MM)

LTM

Revenue Rev Growth Adj. EBITDA

Network Management

Software13-Mar-17 $100 $124.3 38.5% ($28.8) 26-Feb-16 $0.4 $116.9 ND

Internet Software and

Services 13-Feb-17 $100 $160.3 87.0% ($61.4) 8-Sep-15 $75.0 $231.5 $1,180.0

Last

Financing

Date

Post Money

Valuation

Amount

RaisedFunding TDPrimary Industry

Initial Filing

Date

Initial Offering

AmountIssuer

(2)

(1)

25

195

158

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(1)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

(3)

6

11

717

1617

11

9

1

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.Market Data as of 03/24/2017.

2008 2009 2010 2011 20152012 2013 2014 2016

FortinetCDC Software

LogMeInMedidata

SolarWindsRosetta Stone

.

SciQuestRealPageIntraLinksEnvestnet

Qlik BroadSoft

Higher One Convio

SPS CommerceSS&C

QuinStreet

JiveImperva

CarboniteTangoe

ResponsysCornerstone

Epocrates

WorkdayFleetmatics

QualysEloquaE2open

ServiceNowExa

IncadeaInfloblox

ProofpointSplunk

ExactTargetDemandwareBazaarvoiceGreenway

AVGGuidewire

MavenirBarracudaWix.comCovisint

RingCentralFireEyeCvent

Gigamon Textura

ChannelAdvisorMarketoTableauHalogen

RallyMarin

Model N

WorkivaHortonworks

New RelicHubSpotCyberArk

MobileIronKinaxis

ZendeskPaycom

OPOWERFive9

2UBorderfree

Amber RoadA10 Networks

PaylocityVaronis Systems

AtlassianMimecast

InstructureRapid7Sophos

AppFolioAlarm.Com

XactlyShopifyApigee

Box

TwilioSecureWorks

TalendEverbridge

Apptio Gridsum Holding

NutanixCoupa

BlackLine, Inc.

2017

Mulesoft

2009 2010 2011 2012 2013 2014 2015 2016 2017

IPO + 6 + 11 + 7 + 17 + 16 + 17 + 11 + 9 + 1

Strategic Exits - 7 - 11 - 8 - 11 - 9 - 6 - 10 - 12 - 3

PE Exits - 5 - 4 - 6 - 9 - 6 - 7 - 8 - 9 - 1

26

VENTURE CAPITAL INDUSTRYTMT Transactions Since Q4 2001

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount(1)

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 until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

27

GCA OVERVIEWDeep Software Sector Expertise

Acquired by

We Advised the Seller


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



Acquired by

We Advised the Buyer

Acquisition of


Acquired by


Acquisition ofStrategic Advisory Services

Financial Advisor


Acquired by

Acquired by

Acquired by


Acquisition of



Acquired by


Acquired by


PreferredStock

Financial Advisor

Acquisition of

We Advised the BuyerWe Advised the Seller

Investment by


Acquired byPreferredStock

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.

Convertible NoteOffering

Financial Advisor

Acquired by


28

GCA OVERVIEWSoftware Team

New York640 Fifth Avenue, 10

thFl.

New York, NY 10019United States

Phone: (212) 999-7090

Tokyo11-1 Marunouchi 1-chome

Chiyoda-ku, Tokyo 100-6230Japan

Phone: +81 (3) 6212-7100

San FranciscoOne Maritime Plaza, 25th Fl.

San Francisco, CA 94111United States

Phone: (415) 318-3600

*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 AG, 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.

London1 Southampton St.London WC2R0LRUnited Kingdom

Phone:+44 20 7484 4040

FrankfurtThurn-und-Taxis-Platz 6

60313 FrankfurtGermany

Phone: +49 69 204 34 6410

Todd Carter Clark Callander Steve Fletcher Paul DiNardo Sascha Pfeiffer* Akikazu Ida* Adrian Reed*Co-President and CEO Co-Head of Investment Banking Managing Director Managing Director Managing Director Managing Director Managing Director

Phone: (415) 318-3610 Phone: (415) 318-3680 Phone: (415) 318-3661 Phone: (212) 999-7097 Phone: +49 (69) 204-346 415 Phone: +81 (3) 6212-7241 Phone: +44 845 505 4314

Mobile: (415) 314-9898 Mobile: (415) 515-2468 Mobile: (415) 518-6725 Mobile: (650) 483-7246 Mobile: +49 (0) 177-74-15643 Mobile: +81 (80) 9027-3023 Mobile: +44 7887 626 800

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

James Orozco Chris Gough Glen Kruger Raiko Stelten* Gautam Garg Mike JanovecManaging Director Managing Director Director Director Vice President Vice President

Phone: (415) 318-3667 Phone: (415) 318-3658 Phone: (212) 999-7082 Phone: +49 (69) 204 34 6418 Phone: (415) 318-3692 Phone: (415) 318-3693

Mobile: (415) 722-0922 Mobile: (415) 385-9427 Mobile: (617) 792-6496 Mobile: +49 171 335 0879 Mobile: (650) 504-1722 Mobile: (415) 961-1325

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

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