Mobile Market Update 2Q 2014

Confidential

Mobile Market Update

2Q 2014

TMT Investment Banking

Mobile-First SummitNew York

Co-host

2Confidential

The “Who’s Who” of Mobile: M1 (Mobile-First) Summit

On May 20th, co-hosts Headwaters MB and Eniac Ventures welcomed a sold-out crowd of 700+ attendees to the inaugural M1 Summit.

Attendees, executives, and investors participated in a mixture of events including:

90+ speakers at the forefront of innovation in mobile covering

_______Photo credits: Cezary Pietrzak; M1 Summit

Co-hosts Nihal Mehta (L, Eniac Ventures) and Gary Moon (R, Headwaters MB) with opening remarks

Sampling of attendees from:

Mobile Commerce and Payments Mobile Education

Mobile Marketing and Advertising Wearables

Mobile Enterprise Mobile Health

Mobile Consumer Mobile Applications and Discovery

Diverse keynotes and industry panels

Private 1:1 meetings with top mobile investors and corporate

development executivesFireside chats

3Confidential

Mobile Market Update

M&A Activity – M&A activity continued to grow during throughout 2014. Volume increased from 53 transactions in 4Q 2013 to 65 in 1Q 2014 and 69 in 2Q 2014. Notable transactions were led by messaging players including Facebook’s acquisition of WhatsApp ($19B), Rakuten’s acquisition of Viber Media ($900M), and Intuit’s acquisition of Check ($360M).

Investment Activity – Investment deal volume continues reaching new highs throughout 2013 and into 2014. A high of 265 investments occurred in 4Q 2013 (91% increase year-over-year). 2Q 2014 saw a new high in total disclosed funding raised ($2.7B).

Trading Multiples – Diversified Mobile companies commanded the greatest premium at the end of 2Q, trading at a median of 5.6x LTM revenue, while Handsets & Hardware trade at the lowest median multiple of 0.6x LTM revenue.

Capital Markets – Diversified Mobile companies have outperformed the NASDAQ and the S&P 500 while other mobile companies have underperformed on the whole led by Mobile Marketing & Advertising companies.

4Confidential

Mobile M&A Volume Resurging

_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 acquisitions with disclosed transaction values

Average LTM Revenue Multiple 2011 2012 20137.4x 7.5x 4.2x

31

42 43 44 40

30

55

40 45

53

65 69

$13.6

$1.8

$0.8

$2.2$0.1

$1.1$0.5 $1.1

$2.6

$2.2

$22.9

$2.4

0

10

20

30

40

50

60

70

80

0

5

10

15

20

25

30

3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014

# Deals$ in billions

Deal Volume Deal Value ($M)

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Motorola Mob. / Google($12,500)

Sony EricssonMobile / Sony

($1,461)

Amobee / SingTel($321)

Instagram / Facebook($1,000)

Socialcam / Autodesk

($60)

Gloops / NEXON($470)

Epocrates / athenahealth

($293)

Waze / Google($966)

91 Wireless / Baidu

($1,850)

Supercell / Softbank Corp.

($1,530)

WhatsApp / Facebook($19,000)

Motorola(assets) / Zebra

($3,450)

PopCap / EA

($750)

Swype / Nuance

($78)

Clairmail / Monitise

($173)

Hughes Tele. / Verizon($612)

Pixable / SingTel($27)

Zenprise / Citrix

($327)

mFoundry / Fidelity($120)

Parse / Facebook

($85)

MoPub / Twitter($350)

Fiberlink / IBM

($300)

AirWatch / VMware($1,540)

AutoNavi / Alibaba($1,580)

Zong / eBay

($240)

SiliconBlue / Lattice($62)

Worklight / IBM

($70)

Funzio / GREE

($210)

Venmo / Braintree

($26)

POKELABO / GREE

($174)

Crashlytics / Twitter($38)

Meridian / Aruba Net.

($16)

JumpTap / Millennial

($221)

MapMyFitness/ UnderArmour

($150)

Viber Media / Rakuten($900)

Check / Intuit

($360)

5Confidential

Top Acquirers in Mobile

Buyer # Acquisitions Total Value ($M) Targets

19 31AdMovate, Bignoggins Productions, GhostBird Software, Go Poll Go, Hitpost, Incredible Labs, IntoNow, Jybe, Loki Studios, Meh Labs (Blink), Propeld (Alike), Quik.io, Qwiki, Stamped, Summly, ThumbsUp Labs (Aviate), Todoroo (Astrid), Tomfoolery (Anchor), Wander

18 13,606AdMeld, Bitspin, Bump, Clever Sense, eBook, Enterproid (Divide), FlexyCore, Green Throttle Games, Motorola Mobility, Punchd,PushLife, Quest Visual, Quickoffice, TalkBin, Wavii, Waze, WIMM, Zave Networks

12 20,100 Branch Media, Beluga, Glancee, Instagram, Karma Science, Midnox, Osmeta, Parse, Rel8tion, Snaptu, Spool, WhatsApp

7 8 Bubbli, Endorse, Loom, Orchestra, Readmill, TapEngage, Zulip

6 391 Cabana, Crashlytics, MoPub, Spindle Labs, Vine, Whisper Systems

Buyer Total Value ($M) Targets

20,100 Branch Media, Beluga, Glancee, Instagram, Karma Science, Midnox, Osmeta, Parse, Rel8tion, Snaptu, Spool, WhatsApp

13,606AdMeld, Bitspin, Bump, Clever Sense, eBook, Enterproid (Divide), FlexyCore, Green Throttle Games, Motorola Mobility, Punchd, PushLife, Quest Visual, Quickoffice, TalkBin, Wavii, Waze, WIMM, Zave Networks

3,450 Motorola Solutions

1,850 91 Wireless Websoft

1,580 AutoNavi Holdings

1,540 Airwatch

1,530 Supercell

1,461 Sony Ericsson Mobile Communications

900 Viber Media

750 Bight Interactive, Firemint, PopCap Games

Top Acquirers by Volume – Greater than Five Acquisitions, 2011 – Present

Top Acquirers by Total Transaction Value – $750M or More, 2011 – Present

_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed values

6Confidential

On May 27, 2014

ACQUIRED

Transaction Overview:• $360 million acquisition of Check by Intuit• Check had an estimated $15 million LTM revenue at the time of acquisition,

putting the LTM revenue multiple at 24.0x• Additionally, Check was expecting $20 million in revenue for 2014, implying a

forward multiple of 18.0x• With an estimated 10 million registered users at the time of acquisition, value

per registered user was $36• Check had raised $48 million in funding at the time of acquisition

Target Description• Provides Android, BlackBerry, Windows Phone and iOS mobile bill payment

software for consumers. • The smartphone app enables users to monitor bank accounts and set up

automatic payments for utilities, mortgages and other recurring bills.

Transaction Commentary:• According to the acquirer press release, “Through the acquisition, Intuit gains a

critical consumer payments capability that will allow the company to streamline interactions between consumer and small business customers, consistent with Intuit’s vision of enabling products to work together as an ecosystem.”

• Intuit paid almost two times its last major consumer-focused acquisition, Mint, an online financial planning company

Mobile M&A Case Study

_______Source: 451 Group, Acquirer Press Release, PitchBook

7Confidential

Mobile Investment Volume On the Rise

_______Source: PitchBook; includes announced transactions with disclosed, estimated, undisclosed transaction valuesTop 3 investments with disclosed investment values

138 136 148

178 168

139

171

195

255 265

250

252

$978 $969

$689

$944 $955

$644

$1,080

$1,449 $1,558

$2,224 $2,337

$2,683

0

500

1,000

1,500

2,000

2,500

3,000

0

50

100

150

200

250

300

3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014

$ in millions# Investments Investment Volume Investment Value ($M)

Top 3 Investments by Quarter ($M)

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Lookout Mobile($40)

Square($103)

Veracity ($80)

Instagram($50)

Square($200)

Calxeda($55)

AirWatch($200)

AirWatch($225)

Powa($76)

Idea Cellular ($490)

Tango($280)

InMobi($300)

Square($31)

Xiaomi($90)

Lithium($53)

Tango($42)

Affirmed($36)

Netbiscuits($27)

Truphone($120)

Snapchat($60)

TOA($66)

Flipboard($101)

WuxiMaimaibao

($200)

Houzz($150)

Tower Cloud($31)

Tower Cloud($49)

PlayPhone($52)

Mobilelron($40)

JumpTap($28)

T.E.P($25)

Avalanche($35)

Evenbrite($60)

The Fancy($60)

Telogis($93)

Wandoujia($120)

Good Tech.($101)

8Confidential

Top Investors In Mobile

Investor Investments Targets

56

Airseed, AppStack, Apptimize, Astrid, Bionic Panda Games, Butter Systems, Carnival Labs, Cluster Labs, Concept.io, Confide, Crittercism,DocuSign, Duo Security, Echoecho Media, Enterproid, Firespotter Labs, FitStar Labs, Gyft, Hey, Just.me, Kibits, LittleInc Labs, MediaSpike,Moonfrye, mParticle, Mr. Buzz, N3twork, Naama Networks, Namo Media, Nettle, Nextbit Systems, Openbay, Parse, Pocket Change, Rise Labs,Rumble Entertainment, Scan, Schematic labs, SCVNGR, Secret, Stickery, TweetNGo, UberSense, URX, Vungle, Zencoder

50

App Annie, Avalanche Technology, Bubble Motion, Bump Technologies, Chukong Technologies, Drawbridge, Druva Software, Girnar Software,Houzz, Inkling, Instacart, Instagram, Just Dial, Kahuna, Kiwi, MeLLmo, MindSnacks, Mintigo, MixPanel, MobileIron, Mobo Tap, Mojave Networks,Moovit, Plain Vanilla Games, RingCentral, Sencha, Shopular, Skyhigh Networks, Skyscanner, Sourcebits, Square, Stoke, Trippy, WhatsApp,WhisperText, Wuxi Maimaibao Information Technology, Zomato

45

App Annie, Apptimize, Avalanche Technology, Bluebox, Bubble Motion, Bump Technologies, Chukong Technologies, Drawbridge, Druva Software, Girnar Software, Houzz, Inkling, Instacart, Instagram, Just Dial, Kiwi, MeLLmo, MindSnacks, Mintigo, MixPanel, MobileIron, Mobo Tap, Mojave Networks, Moovit, Plain Vanilla Games, RingCentral, Sencha, Skyhigh Networks, Skyscanner, Sourcebits, Square, Stoke, Trippy, UXPin, WhatsApp, WhisperText, Zomato

40

AgLocal, Bluebox, BlueStack Systems, Boku, Bump Technologies, Capriza, Circle, Clinkle, Cloudtop, Clover Network, CrowdMob, Cyanogen, Dwolla, Estimote, Everyme, FiftyThree, Firespotter Labs, Getable, Instart Logic, InVisage Technologies, ItsOn, Jumio, LittleInc Labs, Lookout Mobile, Magnet Systems, MediaSpike, MinoMonsters, MobileWorks, Namo Media, Nexmo, Openbay, QuickPay, Reflektion, Speaktoit, TinyCo, Tomfoolery, Upwards Labs Holdings, UXPin, Zencoder

39AirWatch, Azumio, BreezyPrint, Clinkle, DocuSign, Dropcam, Flaregames, GetJar, Hailo Network, Hammer & Chisel, Hotel Tonight, Juice Mobile, Lightbox, Lookout Mobile, MobileMotion Technologies, MobileSpaces, MyFitnessPal, MySmartPrice Web Technology, Nextbit Systems, OpenX Technologies, Origami Logic, Phoenix Guild, Pixate, Qriously, Rovio Entertainment, Schematic labs, Sprig, TRUSTe, Vinted

39Betable, Edmodo, Everyme, First Opinion, Game Closure, Gigwalk, If You Can, Input Factory, Instagram, Instart Logic, iZettle, Laffster, LittleInc Labs, Lookout Mobile, Marqeta, Mighty Software, Mobilespan, mParticle, Path, Physical Graph, Recurious, Rise Labs, SiTime, Skyhigh Networks, Snappli, Sprig, Sprig, Suddenly Social, Telit Wireless Solutions, ToyTalk, URX, Yub, Zenprise

35Apps & Zerts, Cluster Labs, Confide, Cover, DogVacay, EAT Club, Flurry, Hotel Tonight, LittleInc Labs, Mango Health, Mighty Software, Path, Physical Graph, Pocket Change, Relay Network, Remind101, SavingStar, Seesaw Decisions, Simple Finance Technology, Sincerely, Smartling, TaskRabbit, ToyTalk, URX, Voxel

Top Investors by Volume, 2011 – Present

_______Source: PitchBook; number of investments may include follow-on investments in same target

9Confidential

Mobile Investment Case Study

On March 20, 2014

and Individual Investors

INVESTED IN

Transaction Overview:• $280 million Series D investment in Tango by Alibaba, AME Cloud

Ventures, and other Individual Investors, valuing the company at $1 to $2 billion

• Tango has raised nearly $370 million in disclosed funding to date• Other previous investors included Qualcomm Ventures and Draper Fisher

Jurvetson

Target Description• Provider of mobile messaging and gaming services. The company also

enables iPhone or Android phone users to make free mobile video calls over 3G, 4G, or Wi-Fi to family and friends.

• Tango has roughly 200 million registered users, and 70 million monthly actives, generally aged 25 to 45.

Transaction Commentary:• The company plans to use the funding in continuing to evolve its

platform to provide additional communication features and expand content partnerships

• Led by Alibaba, the investment is also expected to spur plans in building a competing mobile gaming network to rival Tencent within the $14 billion Chinese gaming market

_______Source: PitchBook; TechCrunch

10Confidential

3.1x

5.6x

3.4x

18.2x

29.5x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

1.9x

1.2x

3.8x

1.2x

0.8x

1.2x

4.7x

0.5x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

LTM Revenue Multiple

Mobile Comparable Public Companies

Median:1.2x

Diversified MobileMobile Software & Solutions

Median:5.6x

LTM Revenue Multiple

_______Source: Capital IQ as of 6/30/14; companies arranged by descending enterprise value

11Confidential

0.6x

1.9x

0.4x

4.5x

0.8x

0.4x 0.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

4.7x

2.1x

11.4x

0.9x1.5x

1.9x

0.6x

2.1x

0.8x

2.5x

3.4x 3.4x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0xLTM Revenue Multiple LTM Revenue Multiple

Mobile Comparable Public Companies (Cont.)

Median:2.1xMedian:

0.6x

Wireless & Diversified InfrastructureHandsets & Hardware


12Confidential

5.4x

2.6x

1.5x1.2x

2.7x

2.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x


Median:2.3x

Mobile Advertising & Marketing


13Confidential

Since 2011, Diversified Mobile companies (+85.4%) have outperformed the NASDAQ (+56.5%) and the S&P 500 (+46.3%) while Mobile Software & Solutions companies (+38.9%), Handsets & Hardware (+28.6%), Wireless & Diversified Infrastructure (+25.2%), and Mobile Marketing & Advertising (-43.2%) companies have underperformed on the whole

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Mobile Capital Markets Performance

NASDAQ: +56.5%

S&P 500: +46.3%

Mobile Software & Solutions: +38.9%

Wireless & Diversified Infrastructure: +25.2%

Handsets & Hardware +28.6%

Mobile Marketing & Advertising: -23.2%

Diversified Mobile: +85.4%

_______Source: Capital IQ as of 6/30/14; refer to public comparables for constituents

14Confidential

• We are best in class bankers, technologists, and strategists

• Relevant transaction expertise

Completed transactions with many strategic acquirers, targets, and investors in Mobile

• Strong relationships with key, relevant strategic parties

Sector focus and industry experience means we are in frequent communication with likely interested targets

• Direct market coverage gives us unique insights regarding:

Acquisition targets ▪ IP / value chain

Competitive and adjacent market activity ▪ Growth markets

• Highly customized process to fit specific dynamic context

One size fits all auction processes not the best in Mobile

We will run a focused, intelligent process with proper target screening tailored to specific areas of interest to achieve most ideal valuation for buyer

• We think “outside the box” – complex situations require creative solutions

Headwaters Is Your Premier Choice

HAS BEEN ACQUIRED BY

Financial Advisor tothe Seller

HAS BEEN ACQUIREDBY


HAS BEEN ACQUIREDBY




HAS BEEN ACQUIREDBY


2013 TMT DEAL OF THE YEAR <$100M

CONSUMER SERVICESDEAL OF THE YEAR


THE 11th ANNUAL

2012 WINNER

INVESTMENT BANKOF THE YEAR

2013 FINALIST

HAS ACQUIRED

Financial Advisor tothe Buyer

15Confidential

Recent Technology, Media & Telecom Deals of the Year

Headwaters Technology, Media & Telecom (TMT) team has won the

6th Annual International M&A Advisor Consumer Services Deal of the Year award and

back-to-back M&A Advisor TMT <$100M Deal of the Year awards


THE 12th ANNUAL

2013 WINNER




THE 11th ANNUAL

2012 WINNER



CONSUMER SERVICESDEAL OF THE YEAR



16Confidential

Gary MoonManaging Director

Head of Technology, Media & Telecom

Investment Banking

Office: (415) 766-3862

Cell: (650) 515-8734

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

2 Greenwich Office Park

2nd Floor

Greenwich, CT 06831

2200 Pennsylvania Ave NW

4th Floor, East Tower

Washington, DC 20037

Contact

www.headwatersmb.com

17Confidential

Appendix2Q 2014Mobile Precedent M&A Transactions

18Confidential

Date Target Target Description Acquirer(s)EnterpriseValue ($M)

EV / Revenue

06/30/14 Grow Mobile Inc.Provides mobile advertising campaign creation, management, tracking and purchasing software for businesses.

Perion Network Ltd. [fka IncrediMail]

17.0 --

06/27/14 MoFuseProvides mobile website creation and optimization SaaS for Web publishers. Software enables small businesses to create and monetize multiple versions of their websites for use by consumers utilizing mobile devices.

Search Agency, The -- --

06/27/14PresEn Solutions Sdn.

Provides a mobile application to enable businesses to post, track and hire applicants via a mobile iOS and Android application. Also enables consumers to search and apply for jobs.

Unwall International Holding Group BV [aka UIHG]

-- --

06/27/14 Relatable Sdn. Bhd.Provides an app for iOS, Android and Windows that translates foreign text in images, including currency, captured by the device camera.

Unwall International Holding Group BV [aka UIHG]

-- --

06/26/14 Monkeybars Inc.Provides a mobile application to enable iOS and Android device users to discover, purchase and earn rewards for sharing music and video art. Also provides a means for musicians and artists to distribute content.

Ubiquity Inc. [fka Ubiquity Broadcasting Corporation]

2.3 --

06/24/14 AdColonyProvides mobile video advertising and application monetization software development kit (SDK) to enable video ad placement in mobile applications for app developers, businesses and marketers.

Opera Mediaworks [Opera Software ASA]

75.0 1.4x

06/20/14 TalkToProvides a mobile messaging application to enable consumers to ask questions of businesses via text message and to view questions and responses from other consumers and businesses.

Path -- --

06/19/14 mDialogProvides video streaming-focused advertising and Web analytics SaaS to enable ad insertion across Internet-connected devices such as mobile phones, tablets, laptops and smart TVs for the media programming and distribution industries.

Google Inc. -- --

06/18/14 Layar B.V.Provides a mobile application that enables iOS and Android device users to acquire information via image capture on their mobile device and then provide users with additional information from the Web.

Blippar -- --

2Q 2014 Precedent M&A TransactionsEV ($M) EV / Rev

High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x

_______Source: 451 Group

19Confidential


EV / Revenue

06/16/14 StylrProvides a location-based mobile shopping application that enables consumers to locate desired clothing in nearby brick-and-mortar stores.

@WalmartLabs [Wal-Mart Stores Inc.]

-- --

06/13/14GreenPay LLC [dba MJ-Pay]

Operates as a mobile payment application for medical and recreational marijuana users and businesses.

MyECheck Inc. [OTCBB: MYEC]

0.4 --

06/13/14Millipede Creative Development

Provides mobile application development and design services, to include mobile games and educational applications development, for businesses in Australia and New Zealand.

DT -- --

06/12/14 MPayMe Ltd.Provides mobile payment processing, loyalty and rewards programs, and mobile advertising for consumers and businesses globally.

Powa Technologies Ltd. 75.0 2.5x

06/11/14Zoom Interactive Co., Ltd.

Provides mobile advertising and search engine marketing (SEM) SaaS and services, with a focus on Google and Facebook ads, for businesses in China.

Cheetah Mobile, Inc. 24.0 --

06/10/14 MobileSpan, Inc.Provides mobile file sharing software to enable employees to securely access corporate content from their mobile devices.

Dropbox, Inc. -- --

06/09/14 Abacast Inc.Provides online and mobile audio streaming advertising network and ad insertion SaaS called Clarity, for broadcasters.

WideOrbit, Inc. -- --

06/06/14 Impact Mobile, Inc.Provides mobile customer engagement and advertising software and services for businesses in Canada. Also provides related customer automation and analytics.

DealNet Capital Corp. 1.4 --

06/06/14 SpotsetterProvides a social search application to enable Web, iOS and Android device users to receive recommendations based on location, aggregate personal social network findings and review websites.

Apple, Inc. -- --

2Q 2014 Precedent M&A Transactions (Cont.)EV ($M) EV / Rev

High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


20Confidential


EV / Revenue

06/04/14 Namo MediaProvides in-stream advertising creation SaaS that enables iOS and Android mobile application publishers to monetize, create and run native advertising. Also provides related analytics.

Twitter Inc. [NASDAQ: TWTR]

-- --

06/04/14 SeelioProvides an online portfolio website for students to document and showcase their schoolwork, as well as an destination for educational institutions to promote their universities and interact with current and potential students via www.seelio.com.

PlattForm -- --

06/04/14 Spiral Toys, Inc.Provides a mobile application that enables iOS and Android device users to connect physical toys with mobile video games. Also provides a cloud-based environment that enables game developers to offer their games online.

Rocap Marketing Inc. 3.6 --

06/04/14 SworkitProvides Android and iOS circuit training fitness applications for consumers. Applications have body weight resistance workout tutorials and instructional videos.

Nexercise, Inc. -- --

06/04/14 Timbre Inc.Provides a mobile directory application to enable both a location-based search for live music events and purchase of tickets to attend shows for consumers worldwide.

Seatwave Ltd. -- --

06/03/14 Driven Apps, Inc.Provides a mobile basketball, football, golf and fitness training application for consumers. Application provides videos workouts of famous professional athletes and tracks the users progress through set training programs. Also provides fitness and training blog.

STACK Media -- --

06/03/14 SimplikateProvides mobile advertising SaaS for the mall, airport and real estate sectors. Enables real estate sales and marketing, virtual tours, hotel reservations, travel maps, mobile marketing, pop-up advertising, e-commerce payment services and content integration for mobile devices.

Phunware -- --

06/03/14Smile Interactive Co Ltd

Provides text message delivery software for businesses in the media sector in Thailand. Macromac PLC 3.3 0.8x

06/02/14 Cozi Inc.Provides a free mobile application to schedule family-oriented events for consumers. Application provides a mobile calendar, shopping, to-do lists, meal plans, school schedules and other items that can be shared with members of a user’s household.

Time Inc. -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


21Confidential


EV / Revenue

06/01/14 Run The Red LtdProvides SMS gateway SaaS software to enable targeted SMS marketing automation for businesses globally.

Pushpay Ltd -- --

05/29/14Swing by Swing Golf, Inc.

Provides a mobile application that enables iOS and Android device users to use their devices on golf courses as a GPS-based rangefinder and personal statistics tracker. Also operates an online golf blog at golf.swingbyswing.com.

Back9Network Inc. -- --

05/28/14 CapptainProvides mobile application marketing software for mobile application owners that uses application usage analytics to target push notifications and in-app advertisements.

Microsoft Corporation -- --

05/28/14 IntweetivProvides online marketing content optimization SaaS for Twitter-based marketing campaigns. Application provides pre-written content and ideas for content to post to Twitter accounts to increase business visibility.

Post Planner, Inc. -- --

05/28/14 Nitrodesk, Inc.Provides a secure, containerized mobile enterprise email application for businesses. Software application enables secure encrypted Microsoft Exchange and Outlook email services on mobile iOS and Android devices, as well as tablets and laptops.

Symantec Corporation -- --

05/27/14 Aldiko LimitedProvides a mobile reader application that enables Android device users to shop, purchase and read a wide range of e-books. Also provides publishers and booksellers with a means of distribution. Also enables consumers to read e-books checked out from libraries.

Feedbooks SAS -- --

05/27/14Check Inc. [fka Pageonce, Inc.]

Provides Android, BlackBerry, Windows Phone and iOS mobile bill payment software for consumers. Software enables users to monitor bank accounts and set up automatic payments for utilities, mortgages and other recurring bills.

Intuit, Inc. 360.0 24.0x

05/23/14Beijing Emay Softcom Technology Ltd.

Provides business-to-mobile messaging, mobile office and marketing software for businesses globally. Software enables wireless office control of ERP, SCM and CRM functions.

Shenzhen Infotech Technologies Co., Ltd.

48.6 --

05/23/14 Coco Play Ltd Development stage company intending to develop mobile and online games for children. TabTale -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


22Confidential


EV / Revenue

05/21/14 LetMobileProvides both on-premise and SaaS-based BYOD mobile security and device management software for enterprises. Software secures corporate email, passwords and company data stored on employees' personal iOS, Android and Windows Mobile smartphones and tablets.

LANDesk Software [Thoma Bravo LLC]

15.0 15.0x

05/20/14Aria Glassworks, Inc. [dba Bubbli]

Provides a mobile application that enables iOS device users to take photos and convert them into 3D spherical images, called Bubbles. Also enables the recording of related image sounds and sharing via social media.

Dropbox, Inc. -- --

05/19/14Enterproid, Inc. [dba Divide]

Provides bring-your-own-device (BYOD) Android and iOS mobile device management (MDM) software for businesses. Software uses secure containers to store corporate data, with a focus on corporate email, and keep it separate from personal data.

Google Inc. 130.0 --

05/19/14 Mocean MobileProvides mobile advertising software and networks for publishers, ad agencies and app developers. Software enables customers to serve targeted advertisements to consumers. Also provides related analytics software.

PubMatic -- --

05/19/14 Quest Visual, Inc.Provides a mobile language translation app called Word Lens for Android, Google Glass and iOS users. Application uses users' smartphone camera to recognize text and then translates the text in real-time. No Internet connection is needed.

Google Inc. -- --

05/19/14 connectBlue ABManufacturers short-range wireless Bluetooth connectivity modules and wireless serial Ethernet port adapters for industrial, vehicle tracking and medical wireless device OEMs.

U-Blox AG 28.2 2.1x

05/13/14Meh Labs, Inc. [dba Blink]

Provides a private encrypted instant messaging application, Blink, that enables users to set a time limit before messages are permanently deleted. Also developed location-based social networking application, Kismet.

Yahoo! Inc. -- --

05/08/14Delicious [fka Del.icio.us Inc.] [AVOS]

Provides an online social networking-based bookmarking destination to enable users to share online content at https://delicious.com.

Science Media Inc. -- --

05/08/14 Spendship, LLCProvides mobile social promotional applications for businesses to entice customers to promote the products and services they use by offering rewards for mentioning them on social media sites. Applications enable consumer referral marketing for businesses.

Moontoast, Inc. -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


23Confidential


EV / Revenue

05/07/14 HotelmobiDevelopment stage startup, currently developing a mobile application to enable users to locate and book hotels.

Remark Media Inc 2.5 --

05/06/14 DigbyProvides location-based mobile marketing software and APIs that enable businesses to integrate location-based mobile marketing into their mobile applications. Software also enables businesses to identify specific important locations and areas. Also provides related analytics software.

Phunware -- --

05/06/14 LYFE Mobile, Inc.Provides contextual location-based mobile and display marketing software for businesses. Also provides related reporting software.

blinkx plc [AIM: BLNX] -- --

05/06/14My Mobile Payments Ltd. [dba MoneyOnMobile]

Provides India-based consumers with a mobile phone minute recharge and top-up and utility payments application that also provides prepaid debit cards transportation tickets.

Calpian Inc. -- --

05/06/14 Nixter, Inc.Provides an iOS mobile application that enables users to find, book and purchase tickets for nightlife and entertainment events. Also provides related event management and payment SaaS for businesses at www.nightlifegraph.com.

Skout Inc. -- --

05/02/14DDS Wireless International Inc.

Provides GPS-based fleet management, vehicle tracking, fuel management, navigation systems for businesses. Also provides mobile payment processing software.

Ghai Investments Ltd. 24.6 0.8x

05/01/14 PlayFirst, Inc.Develops a range of mobile video games for Android and iOS device users globally. Provides videogames such as Diner Dash and Cooking Dash for Android, iOS and Kindle devices, as well as online via www.playfirst.com.

Glu Mobile Inc. [fka Sorrent]

15.3 1.3x

04/30/14 apprupt GmbHOperates mobile advertising networks for businesses in Germany, Austria and Switzerland. Networks are targeted toward higher-end audiences.

Opera Mediaworks [Opera Software ASA]

-- --

04/28/14 metaquark GmbHProvides mobile software development software called a mobile enterprise application platform (MEAP), to enable companies to design and develop, test, distribute and manage cross-platform mobile applications through one development interface.

Software AG -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


24Confidential


EV / Revenue

04/24/14 JasperLabs, Inc.Provides online display and multimedia banner advertising SaaS for online advertisers. Software enables the deployment and real-time editing of targeted, relative advertising based on the consumer's location, user platform and customized search criteria.

DataXu -- --

04/24/14 Liberate Ideas, Inc.Provides a mobile iPad point of care patient education application for the healthcare industry. Application enables healthcare providers to educate patients on their conditions and treatment options at the point of care by using this mobile application and through an online service.

NexJ Systems, Inc. 1.0 --

04/24/14ProtoGeo Oy [dba Moves]

Provides a mobile fitness-monitoring application for iOS and Android devices. Application tracks the users steps and time spent walking, jogging and cycling, as well as calculates calories.

Facebook [NASDAQ: FB] -- --

04/24/14 TactadsProvides advertising tracking and targeting software both without using cookies and across multiple connected devices for digital advertisers. Enables the automatic detection of consumer's device for proper display and presentation of targeted advertising without using tracking cookies.

MediaMath -- --

04/24/14 ZipplerDevelopment stage startup that provides a GPS- and social networking-focused mobile applications for marketing purposes for businesses.

Genius Properties Ltd. [fka Synergy Acquisition Corp.]

0.5 --

04/22/14 Mobile ProductivityProvides mobile and online asset financing quotation and document management applications for the asset finance industry. Software enables brokers and lenders to provide financing quotes, email deal status and calculate payment options from their mobile device.

Sword Group -- --

04/17/14 Loom, Inc.Provides photo and video storage and management mobile applications and online software for consumers. Software enables access across multiple platforms.

Dropbox, Inc. -- --

04/15/14 PickieProvides a free, personalized shopping iPad application and email newsletter service for consumers. Application enables digital catalog shopping from personalized, curated content gleaned from mentions and interactions on social networks.

RetailMeNot, Inc. [fka WhaleShark Media] [NASDAQ: SALE]

-- --

04/14/14Liquivision Products Inc.

Manufacturers hand-held mobile diving computers for the scuba and free diving industry. Devices read diving depth, reads air tank capacity and other vitals.

Huish Outdoors, LLC -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


25Confidential


EV / Revenue

04/11/14AutoNavi Holdings Limited

Provides digital map data and location-based software for automakers, mobile device manufacturers, government agencies and consumers in China.

Alibaba.com [aka Alibaba Group]

1,062.8 7.5x

04/09/14 Uppidy, Inc.Provides iOS, Android and BlackBerry mobile applications that enable users to backup, save and search for SMS messages, and to share them via social media.

Gryphn Corporation [aka ArmorText]

-- --

04/07/14 CoverProvides an Android smartphone application that enables users to prioritize and organize application icons that are displayed on their lockscreen.

Twitter Inc. [NASDAQ: TWTR]

-- --

04/04/14GENIEgroup [dba adGENIE]

Provides banner ad pre-targeting and re-targeting SaaS for online advertisers. Software enables the placement of relevant, customer analytics-based advertisements on websites.

Ve Interactive Ltd -- --

04/01/14Office Media Network, Inc.

Provides a display advertising network featuring Dow Jones-licensed content, as well as concierge information, for use in building lobbies and elevators in the US.

Captivate Network Inc. [Gannett]

-- --

04/01/14 Playground.fmProvides an iOS application that aggregates Facebook and Spotify data to construct a personalized music playlist. Also enables users to share and add effects to music.

Jawbone [aka Aliph, Inc.] -- --


High $1,062.8 24.0x

Mean 153.5 8.5x

Median 24.6 4.8x

Low $0.5 0.8x


26Confidential

Appendix2Q 2014 Mobile Precedent Investments

27Confidential

2Q 2014 Precedent Investments, $10M+

Date Target Target Description Investor(s) Deal TypeDeal Size

($M)

Company Valuation

($M)

06/25/14WellAware Holdings

Developer and provider of machine-to-machine data networks. The company offers data delivery and security to businesses with its mobile software.

Activant Capital, Individual Investor

PE Growth/Expansion

37.0 --

06/24/14 PhunwareProvider of consumer mobile experiences and infrastructure. The company offers brandME enterprise branded mobile environments, PRAISE Mobile Technologies, , PocketShare Mobile Analytics and Phlameware Social Chat

Central Texas Angels, Cisco, FTV Fund, FMC, Maxima, Samsung, Wild Basin, WWE

Series E 30.7 153.5

06/24/14 HelpshiftThe company allows mobile application developers to build customer service platforms into their applications which enables the mobile users to chat and share screenshots with customer service representative.

Intel Capital, Nexus Venture Partners, True Ventures , Visionnaire Ventures

Series A 10.0 --

06/23/14Skyhigh Networks

The company's cloud-based multi-tenant service, enables companies to deploy cloud services with appropriate levels of security and governance, while lowering overall risk and cost.

Greylock Partners, Salesforce.com, Sequoia Capital

Series C 40.0 --

06/23/14 SlyceDeveloper of a discovery-to-purchase platform. The company is the creator of Slyce, a mobile application that enables users to shop online for products they see around them.

Beacon Securities Limited, Canaccord Financial, Cormark Securities, Salman Partners

Series B 12.0 --

06/19/14 InMobiProvider of mobile-advertising software. The company provides a marketing and advertising platform that is designed to integrate seamlessly into clients' software applications.

-- Later Stage VC 300.0 --

06/19/14 ForgeRockProvider of an open source platform for infrastructure applications. The company offers an identity relationship management platform that delivers identity and access management for protecting enterprise, cloud, social and mobile systems.

Accel Partners, Foundation Capital, Meritech Capital Partners

Series C 30.0 --

06/18/14 Mantis VisionDeveloper of three dimensional (3D) technology for mobile. The company develops content creation tools and technologies which allow users to watch three dimensional (3D) videos on smartphone.

Flextronics Lab IX, Qualcomm Ventures, Samsung Electronics, Sunny Group

Later Stage VC 12.5 --

06/18/14 ClearCareProvider of Web and mobile platform for administration of home-care agencies. The company provides a front-end and back-end system for the management of home-care agencies.

Bessemer, Cambia Health, City National, Harbor Pacific, Qualcomm, Voyager

Series B 11.0 --

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0

_______Source: PitchBook

28Confidential

2Q 2014 Precedent Investments, $10M+ (Cont.)


($M)

Company Valuation

($M)

06/17/14 Kony SolutionsProvider of mobile application and vertical market mobile software. The company provides a platform that helps companies launch commerce-enabled mobile applications.

Delta-v Capital, Georgian Partners, Hamilton Lane, Insight VP, SoftBank, Telstra

Series E 50.0 --

06/17/14 ClariOperator of an enterprise mobile application platform for sales teams. The company's product helps organize content and extend CRM through machine learning algorithms and knowledge graphs.

Bain Capital Ventures, Northgate Capital, Sequoia Capital

Series B 20.0 --

06/17/14 WayinProvider of mobile engagement services. The company allows users around the world to connect with each other in real-time, giving them a gaming platform to share instant feedback on items that are most important to them and their friends.

-- Series C 12.1 --

06/16/14 InstacartProvider of a mobile application that enables users to order and secure delivery of groceries. The company's application enables its users to scroll and search grocery items and have them delivered to their door.

Andreessen Horowitz, Canaan Partners, Individual Investor, Khosla Ventures, Sequoia Capital

Series B 44.0 --

06/16/14Pacific DataVision

Provider of instant voice messaging and documentation applications. The company develops instant voice messaging platforms and wide area dictation applications.


06/16/14 WeLabOperator of an Internet finance company. The company operates WeLend.hk, Hong Kong’s peer-to-peer lending platform. It provides people with the opportunity to borrow, invest and connect through a secure platform.

Individual Investor, Sequoia Capital, TOM Group

Series A 14.0 --

06/16/14 Get VictoriousProvider of technological platform to industries. The company operates in the online video industry and provides a mobile video platform.

Individual Investor, Kleiner Perkins Caufield & Byers, Lowercase Capital

Seed 13.0 --

06/13/14 GlympseProvider of location-sharing service for global positioning system enabled mobile phones. The company’s service enables sharing of location by a mobile phone user for a pre-set period of time.

Ignition Partners, Menlo Ventures, Naya Ventures, UMC Capital, Verizon Investments

Series C 12.0 --

06/12/14 WebtrekkProvider of digital intelligence services. The company provides Webtrekk Q3, quick insights, TV Trekk, live analytics, rich media insights, mobile insights, safe tag, plug inns and data protections.

DPE Deutsche Private EquityPE Growth/Expansion

34.0 --

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


29Confidential



($M)

Company Valuation

($M)

06/10/14 IbottaProvider of a mobile saving application. The company provides its users cash rewards instead of credits or points for engaging with brands.

Individual Investor Series B 20.0 --

06/09/14 AffirmDeveloper of online mobile payment platform. The company works as a digital charge card for merchants.

Khosla Ventures, Lightspeed Venture Partners, Nyca Partners

Early Stage VC 45.0 --

06/09/14 Wash.ioProvider of laundry and dry cleaning services with the help of a mobile application. The company offers a mobile application that lets its users schedule laundry pickup and delivery from their phones.

A Grade Investments, Canaan, Individual Investor, Pejman Mar Ventures, Sherpa Ventures

Series A 10.5 --

06/06/14 Dayima.comDeveloper of a mobile application for women's health. The company provides a platform for users to track and predict their menstrual cycles. The platform also provides health and beauty content and tools for interacting with other users.

Bertelsmann Asia Investments, Ceyuan Ventures, Sequoia Capital

Series C 30.0 --

06/06/14 DewMobileProvider of mobile-to-mobile file sharing application. The company offers tools which allow mobile user to transfer large files without internet connection.

IDG Capital Partners, Innovation Works (China), Northern Light Venture Capital

Series B 20.0 --

06/05/14 FlaregamesProvider of games played on mobile devices and involving the real world. The company's free-to-play games are built for tablets and smartphones, and developed in-house.

Accel Partners, T-Venture Holding Series B 12.2 --

06/04/14 OctroDeveloper of real-time multi-player social games. The company offers various online cross-platform games like Teen Patti and Indian Rummy that can be played on different platforms including Apple iOS, Google Play, and Windows Phone 8.

Sequoia Capital Series A 15.0 --

06/03/14 HouzzProvider of a community and photo database for home design. The company also develops mobile and table applications for home decoration, and also sells a variety of home products.

-- Series D 150.0 2,300.0

06/02/14Movius Interactive

Provider of messaging, collaboration and mobile media platform for service providers. The company provides messaging and collaboration apps including voice mail, video mail, unified messaging, conferencing and video conferencing.


Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


30Confidential



($M)

Company Valuation

($M)

05/29/14 RiskIQProvider of website security, mobile application security and anti-malvertising services beyond the firewall.

Battery Ventures, Summit Partners Series B 25.0 --

05/28/14 App AnnieProvider of a market data platform for the mobile-application industry. The company functions as an app store market-data company, tracking app downloads, revenues, rankings and reviews for its clients.

Greycroft Partners, IDG Capital Partners, Sequoia Capital

Series D 17.0 --

05/28/14 TicketscriptProvider of self-ticketing and mobile ticketing services. The company offers online platform that enables event organizers to sell tickets from their Website and Facebook page.

Fleming Family & PartnersPE Growth / Expansion

11.8 --

05/28/14CafeX Communications

The company's products and services enables business applications with communications capabilities across mobile and desktop endpoints that helps businesses interact with their customers.

Individual Investor Angel 10.5 --

05/22/14 SmartlingThe company helps businesses translate and deploy multilingual websites and dynamic web applications, mobile applications and business documents across their corporate digital infrastructure.

Accelerator, Felicis, First Round, Harmony, Iconiq, IDG, Individuals, Tenaya, US VP, Venrock

Series D 25.0 250.0

05/21/14 SnapdealProvider of an e-commerce marketplace. The company provides a platform for vendors across the country to connect customers. It also has products from national, international and regional brands across multiple categories

BlackRock, Myriad Group, PremjiInvest, Temasek Holdings, tybourne capital

Later Stage VC 100.0 1,000.0

05/21/14 Silent CircleDeveloper of a private, proprietary communication network and a privacy-focused smartphone. The company has developed Blackphone, a phone specifically designed for their secure network that will protect users' information.

Cain Capital, Individual Investor Early Stage VC 30.0 --

05/20/14 NoWaitProvider of a mobile seating management service. The company provides an application that enables restaurant owners and mangers to get a view of the queue and optimize turnover.

Birchmere Ventures, Drive Capital Series B 10.0 33.2

05/20/14Network for good

Operator of an online nonprofits fundraising platform. The company offers internet and mobile based technology that allows donors to make donations to various charities and non-profit organizations.

Camden Partners, Individual Investor

PE Growth / Expansion

10.0 --

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


31Confidential



($M)

Company Valuation

($M)

05/19/14 WhisperTextProvider of a social platform based on anonymous posts. The company is the creator of a mobile application enabling users to post comments and visual content with the added expressive benefit of anonymity.

Lightspeed, Sequoia, Shasta, Tencent, Thrive

Early Stage VC 36.0 200.0

05/14/14 ProdegeProvider of web and mobile marketing services. The company offers a platform for brands, advertisers, and marketers to establish relationships with consumers and also rewards its members with web discovery activities.

Technology Crossover Ventures Later Stage VC 61.0 --

05/12/14 WochitDeveloper of a platform for video news and digital content. The company’s platform is utilized by web sites, mobile applications, news services, blogs and other publishing entities for revenue opportunities and audience engagement.

Cedar Fund, Greycroft Partners, Marker, Redpoint Ventures

Early Stage VC 11.2 --

05/09/14 iZettleDeveloper of a social payment device. The company provides a small card-reader that plugs into smartphones or tablets. It offers services for person-to-person and business-to-consumer commerce.

Creandum KB, Dawn Capital, Greylock, Index, Intel Capital, Northzone, SEB PE, Zouk

Series C 55.0 --

05/09/14 AvalaraProvider of sales tax and compliance automation services in the cloud. The company provides service-based platform for tax automation and automation effort for financial, electronic commerce, POS and mobility applications.


05/09/14 ZetticsProvider of mobile analytic and measurement applications. The company offers a monitoring and analytics that enables real-time visibility and analytic across web, video and messaging applications.

--Acquisition Financing

10.2 47.8

05/07/14 LayerDeveloper of an open communications layer for the Internet. The company's technology is designed to enable messaging, voice and video calling in any mobile or Web product.

AME Cloud Ventures, CrunchFund, FUEL Capital, Homebrew

Series A 14.5 63.7

05/06/14Perfecto Mobile

Provider of cloud-based testing, automation and monitoring technology for mobile applications and websites.

Carmel Venture Partners, FTV Capital, Globespan, Vertex

Series D 20.0 --

04/29/14 ApigeeProvider of tools and services for building end to end mobile platforms with applications and data. The company offers a platform for creating, managing and measuring digital initiatives built on applications.

Accenture, Bay Partners, BlackRock, Focus, NVP, Pine River, SAP, Third Point, Wellington

Series H 60.1 669.5

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


32Confidential



($M)

Company Valuation

($M)

04/29/14WellAware Holdings

Developer and provider of machine-to-machine data networks. The company offers data delivery and security to an entire business with its map-based mobile software.

-- Series B 24.7 104.8

04/28/14 URXDeveloper of a mobile application retargeting platform. The company has created a platform which links users to specific pages in applications using deeplinks.

Accel Partners, First Round Capital, Google Ventures, SV Angel

Series A 12.0 40.0

04/24/14 ShopKeep POSProvider of cloud-based mobile point-of-sale system. The company provides a platform enabling retail merchants to run customer transactions from an iPad.

Canaan Partners, Contour, Individuals, Thayer Street, Tribeca VP, TTV

Series C 25.0 118.5

04/23/14 Delivery HeroProvider of online take-out ordering service. The company provides global network of online food ordering marketplace where orders and payments can be placed online and restaurants are peer-reviewed.

-- Series F 85.0 --

04/23/14 O3B NetworksProvider of internet services for telecommunications operators. The company develops commercial 3G mobile and fiber-to-the-home (FTTH) network.

-- Series G 50.0 --

04/22/14 MozidoProvider of an integrated platform of cloud-based mobile payment and marketing solutions.

Atlanticus Holdings, Brentwood Venture Capital, Individual Investor, TomorrowVentures

Later Stage VC 93.5 --

04/17/14 CitymapperProvider of route-planning software that uses real-time traffic information, and a mobile transport app enabling trip-planning on multiple transportation modes, along with real-time data on weather, alerts and disruptions.

Balderton Capital, Comcast Ventures, Connect Ventures, Greylock Partners, Index Ventures

Series A 10.0 36.3

04/15/14 Kinetic SocialProvider of a social advertising and media marketing platform. The company provides audience-based digital marketing services, including integrate display and mobile campaigns with the social graph.

Blue Chip Venture Series B 18.0 --

04/14/14 AgilOneProvider of an online retail marketing platform. The company provides cloud-based, multi-channel marketing analytics of e-mail, Web, mobile and social data to give businesses insight into customer behavior and their marketing strategy.

Four Rivers Group, Mayfield Fund, Next World Capital, Sequoia Capital, Tenaya Capital

Series C 25.0 115.5

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


33Confidential



($M)

Company Valuation

($M)

04/10/14Good Technology (Visto)

Provider of mobile messaging services for mobile operators. The company offers a platform for mobile service providers to deliver push email, calendar, contacts and various corporate data to a set of devices.

-- Series C1 100.9 1,178.5

04/10/14 SmuleDeveloper of sonic applications for the iPhone. The company creates a mobile audio platform that enables a new generation of applications for the iPhone.

Bessemer Venture Partners, Granite Ventures, Roth Capital Partners, Shasta

Series E 16.6 183.4

04/10/14 QuantiaProvider of a mobile and Web-based physician relationship management (PRM) platform.

Fuse Capital, Safeguard Scientifics Series B 10.0 28.0

04/09/14 CrittercismProvider of a software development kit for mobile application development. The company's platform enables software developers to improve user experience with real-time diagnostic data, crash reporting and access to metadata.

Accenture, Interwest Partners, Scale Venture Partners, VMware

Series C 30.0 149.2

04/08/14Lithium Technologies

Provider of social customer software for brands to find online and mobile social customers. The company offers comprehensive social monitoring, customer experiences and actionable analytics across blogs, forums and social networks.


04/08/14 ItsOnProvider of cloud platform that allows operators to offer data plans for consumers. The company offers wireless users real-time visibility and control over their voice, text and data services.

Andreessen Horowitz, Tenaya Capital

Series C 12.9 --

04/07/14 Ineda SystemsDeveloper of low-power system on a chips (SoCs). The company develops mobile computing platforms including systems on chips (SOC) integrated circuits and software.

Imagination Technologies, Indusage, Qualcomm, Riverwood, Samsung, Walden

Series B 17.9 56.2

Deal Size ($M)

CompanyVal. ($M)

High $300.0 $2,300.0

Mean 35.9 354.1

Median 20.0 118.5

Low $10.0 $28.0


34Confidential

AppendixMobile Public Company Comparables

35Confidential

Mobile Comparable Public Companies

_______Source: Capital IQ

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/30/14 Low High Cap. Value LTM CY 2014E CY 2015E LTM CY 2014E CY 2015E

Mobile Software & Solutions

Amdocs Nasdaq:DOX $46.33 $36.39 $48.99 $7,606 $6,497 1.9x 1.8x 1.7x 10.2x 9.0x 8.5x

Convergys NYSE:CVG 21.44 17.16 24.43 2,182 2,664 1.2x 0.9x 0.8x 9.8x 7.5x 6.9x

Synchronoss Nasdaq:SNCR 34.96 25.28 39.30 1,435 1,385 3.8x 3.2x 2.8x 15.6x 9.6x 8.1x

CSG Nasdaq:CSGS 26.11 21.67 32.11 842 921 1.2x 1.2x 1.2x 7.5x 5.9x 5.6x

TeleCommunication Systems Nasdaq:TSYS 3.29 2.08 3.47 195 276 0.8x 0.8x 0.7x 12.5x 7.9x 6.1x

USA Mobility Nasdaq:USMO 15.40 12.58 19.50 334 241 1.2x 1.2x 1.2x 4.1x NM NM

Myriad SWX:MYRN 2.21 1.39 2.99 203 202 4.7x NM NM NM NM NM

Acotel BIT:ACO 23.27 22.37 35.59 96 71 0.5x 0.4x 0.4x NM 11.4x 6.5x

High 4.7x 3.2x 2.8x 15.6x 11.4x 8.5x

Mean 1.9x 1.4x 1.3x 10.0x 8.5x 7.0x

Median 1.2x 1.2x 1.2x 10.0x 8.4x 6.7x

Low 0.5x 0.4x 0.4x 4.1x 5.9x 5.6x

Diversified Mobile

Apple Nasdaq:AAPL 92.93 57.32 95.05 562,428 537,995 3.1x 2.9x 2.7x 9.3x 8.7x 8.2x

Google Nasdaq:GOOGL 584.67 418.00 614.44 398,072 349,192 5.6x 5.3x 4.6x 18.8x 13.3x 11.1x

Microsoft Nasdaq:MSFT 41.70 30.84 42.29 344,598 280,406 3.4x 3.0x 2.7x 8.7x 8.6x 8.1x

Facebook Nasdaq:FB 67.29 24.15 72.59 174,098 161,861 18.2x 13.7x 10.4x 34.7x 22.1x 16.8x

Twitter NYSE:TWTR 40.97 29.51 74.73 25,575 23,591 29.5x 18.6x 11.5x NM NM NM

High 29.5x 18.6x 11.5x 34.7x 22.1x 16.8x

Mean 11.9x 8.7x 6.4x 17.9x 13.2x 11.1x

Median 5.6x 5.3x 4.6x 14.1x 11.0x 9.7x

Low 3.1x 2.9x 2.7x 8.7x 8.6x 8.1x

Handsets & Hardware

Samsung KOSE:A005930 1,306.72 1,195.03 1,485.63 171,141 130,481 0.6x 0.6x 0.6x 2.6x 2.5x 2.4x

Honeywell NYSE:HON 92.95 77.32 96.49 74,008 75,531 1.9x 1.9x 1.8x 11.6x 10.0x 9.2x

LG Electronics KOSE:A066570 73.44 58.12 78.58 11,962 19,425 0.4x 0.3x 0.3x 6.5x 5.3x 5.0x

Trimble Navigation Nasdaq:TRMB 36.95 24.90 40.17 9,907 10,417 4.5x 4.2x 3.8x 21.7x 20.8x 18.3x

BlackBerry TSX:BB 10.26 5.43 11.80 5,327 3,982 0.8x 1.0x 1.0x NM 11.9x 16.8x

HTC TSEC:2498 4.62 4.08 7.97 3,803 2,431 0.4x 0.4x 0.3x NM 13.4x 12.2x

China Wireless SEHK:2369 0.28 0.15 0.35 1,200 1,068 0.4x 0.2x 0.2x 27.3x 7.5x 6.6x

High 4.5x 4.2x 3.8x 27.3x 20.8x 18.3x

Mean 1.3x 1.2x 1.1x 13.9x 10.2x 10.1x

Median 0.6x 0.6x 0.6x 11.6x 10.0x 9.2x

Low 0.4x 0.2x 0.2x 2.6x 2.5x 2.4x

36Confidential



Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/30/14 Low High Cap. Value LTM CY 2014E CY 2015E LTM CY 2014E CY 2015E

Wireless & Diversified Infrastructure

QUALCOMM Nasdaq:QCOM 79.20 59.02 81.66 136,381 119,764 4.7x 4.4x 4.0x 13.9x 11.2x 10.4x

Cisco Nasdaq:CSCO 24.85 20.22 26.49 128,086 98,526 2.1x 2.1x 2.0x 7.7x 6.0x 5.8x

CCI Corp NYSE:CCI 74.26 66.73 78.00 24,657 36,046 11.4x 10.2x 9.8x 19.8x 17.3x 16.3x

Ericsson OM:ERIC B 12.07 11.07 13.59 39,025 30,659 0.9x 0.9x 0.9x 6.4x 7.2x 6.4x

Nokia HLSE:NOK1V 7.57 3.95 8.36 28,156 25,352 1.5x 1.5x 1.5x 10.7x 12.0x 10.6x

Motorola Solutions NYSE:MSI 66.57 53.62 68.33 17,088 16,443 1.9x 2.0x 2.1x 10.8x 9.5x 9.1x

Alcatel-Lucent ENXTPA:ALU 3.57 1.80 4.72 9,868 11,057 0.6x 0.6x 0.6x 10.3x 6.7x 5.2x

Juniper Networks NYSE:JNPR 24.54 18.36 28.75 11,686 10,078 2.1x 2.0x 1.9x 12.4x 7.8x 6.7x

ZTE Corp SZSE:000063 2.11 1.93 2.94 7,253 9,641 0.8x 0.7x 0.6x 15.4x 9.9x 9.2x

Aruba Netorks Nasdaq:ARUN 17.52 15.42 23.58 2,018 1,718 2.5x 2.2x 1.9x NM 10.0x 8.2x

Ruckus NYSE:RKUS 11.91 8.65 18.58 1,122 966 3.4x 2.9x 2.4x NM 24.0x 15.5x

Aerohive NYSE:HIVE 8.22 8.00 12.23 404 391 3.4x 2.8x 2.2x NM NM NM

High 11.4x 10.2x 9.8x 19.8x 24.0x 16.3x

Mean 2.9x 2.7x 2.5x 11.9x 11.1x 9.4x

Median 2.1x 2.0x 1.9x 10.8x 9.9x 9.1x

Low 0.6x 0.6x 0.6x 6.4x 6.0x 5.2x

Mobile Marketing and Advertising

Opera Software OB:OPERA 13.34 7.22 15.49 1,830 1,747 5.4x 4.2x 3.1x 21.3x 15.7x 11.0x

Marchex Nasdaq:MCHX 12.02 5.43 12.84 480 442 2.6x 2.4x 2.2x NM 30.4x 24.7x

Millennial Media NYSE:MM 4.99 2.90 10.48 534 436 1.5x 1.3x 1.1x NM NM 17.3x

InternetQ AIM:INTQ 4.76 3.68 7.06 185 179 1.2x 0.9x 0.8x 12.4x 5.9x 4.7x

1000mercis ENXTPA:ALMIL 67.15 60.40 70.85 209 151 2.7x 2.5x 2.2x 10.1x 8.8x 7.4x

Voltari Nasdaq:VLTC 1.98 1.60 7.22 9 22 2.0x NM NM NM NM NM

High 2.7x 2.5x 2.2x 12.4x 30.4x 24.7x

Mean 2.0x 1.8x 1.6x 11.2x 15.0x 13.5x

Median 2.0x 1.8x 1.6x 11.2x 8.8x 12.4x

Low 1.2x 0.9x 0.8x 10.1x 5.9x 4.7x

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Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '13A-'14E '14E-'15E GM LTM CY 2014E CY 2015E LTM CY 2014E CY 2015E

Mobile Software & Solutions

Amdocs Nasdaq:DOX Mar 2014 7% 4% 35% $3,447 $3,617 $3,750 $634 $725 $763

Convergys NYSE:CVG Mar 2014 43% 9% 35% 2,158 2,921 3,172 273 354 388

Synchronoss Nasdaq:SNCR Mar 2014 22% 17% 58% 369 427 499 89 144 170

CSG Nasdaq:CSGS Mar 2014 2% 4% 48% 755 765 794 122 157 165

TeleCommunication Systems Nasdaq:TSYS Mar 2014 1% 8% 39% 353 365 395 22 35 45

USA Mobility Nasdaq:USMO Mar 2014 (5%) 1% 73% 207 200 202 59 NA NA

Myriad SWX:MYRN Dec 2013 NA NA 29% 43 NA NA NM NA NA

Acotel BIT:ACO Mar 2014 17% 3% 76% 155 193 199 NM 6 11

Diversified Mobile

Apple Nasdaq:AAPL Mar 2014 7% 6% 38% 176,035 185,696 197,491 57,795 61,663 65,309

Google Nasdaq:GOOGL Mar 2014 10% 16% 57% 62,294 65,535 75,755 18,582 26,294 31,414

Microsoft Nasdaq:MSFT Mar 2014 15% 9% 70% 83,347 94,724 103,354 32,127 32,646 34,681

Facebook Nasdaq:FB Mar 2014 50% 31% 80% 8,916 11,841 15,558 4,665 7,327 9,611

Twitter NYSE:TWTR Mar 2014 91% 61% 61% 801 1,271 2,043 NM 206 455

Handsets & Hardware

Samsung KOSE:A005930 Mar 2014 2% 4% 40% 216,006 220,665 230,330 49,769 51,590 54,208

Honeywell NYSE:HON Mar 2014 4% 5% 28% 39,406 40,697 42,575 6,537 7,580 8,211

LG Electronics KOSE:A066570 Mar 2014 10% 4% 23% 54,886 60,496 63,203 2,993 3,649 3,921

Trimble Navigation Nasdaq:TRMB Apr 2014 9% 11% 57% 2,337 2,487 2,762 481 501 568

BlackBerry TSX:BB May 2014 (57%) 4% (11%) 4,708 3,845 4,000 NM 336 238

HTC TSEC:2498 Mar 2014 2% 3% 21% 6,365 6,942 7,153 NM 181 200

China Wireless SEHK:2369 Dec 2013 73% 21% 13% 2,531 4,389 5,293 39 143 163

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Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '13A-'14E '14E-'15E GM LTM CY 2014E CY 2015E LTM CY 2014E CY 2015E

Wireless & Diversified Infrastructure

QUALCOMM Nasdaq:QCOM Mar 2014 8% 9% 59% 25,712 27,460 29,908 8,644 10,659 11,538

Cisco Nasdaq:CSCO Apr 2014 NM 5% 59% 47,202 47,793 49,971 12,871 16,489 16,926

CCI Corp NYSE:CCI Mar 2014 16% 5% 65% 3,158 3,520 3,680 1,820 2,083 2,213

Ericsson OM:ERIC B Mar 2014 (6%) 4% 35% 34,369 33,264 34,677 4,772 4,275 4,825

Nokia HLSE:NOK1V Mar 2014 (5%) 4% 44% 16,856 16,690 17,399 2,370 2,112 2,381

Motorola Solutions NYSE:MSI Mar 2014 (3%) (9%) 49% 8,524 8,414 7,695 1,523 1,739 1,798

Alcatel-Lucent ENXTPA:ALU Mar 2014 (7%) 3% 33% 19,753 18,543 19,156 1,072 1,643 2,107

Juniper Networks NYSE:JNPR Mar 2014 7% 5% 63% 4,780 4,982 5,239 813 1,290 1,509

ZTE Corp SZSE:000063 Mar 2014 13% 14% 29% 12,262 13,991 15,890 627 974 1,043

Aruba Netorks Nasdaq:ARUN Apr 2014 24% 15% 69% 679 788 905 16 173 209

Ruckus NYSE:RKUS Mar 2014 25% 21% 67% 281 329 396 7 40 62

Aerohive NYSE:HIVE Mar 2014 32% 24% 67% 116 141 175 NM NA NA

Mobile Marketing and Advertising

Opera Software OB:OPERA Mar 2014 38% 36% 44% 325 414 562 82 111 159

Marchex Nasdaq:MCHX Mar 2014 23% 10% 38% 168 187 205 8 15 18

Millennial Media NYSE:MM Mar 2014 28% 17% 40% 282 331 387 NM NA 25

InternetQ AIM:INTQ Dec 2013 35% 20% 53% 144 194 233 14 30 38

1000mercis ENXTPA:ALMIL Dec 2013 10% 12% 29% 55 61 69 15 17 20

Voltari Nasdaq:VLTC Mar 2014 NA NA 4% 11 NA NA NM NA NA

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Mobile Market Update 2Q 2014

Marketing

Transcript of Mobile Market Update 2Q 2014