Performance thru

Benchmarking

Lauren Kelley

www.opexengine.com

OPEXEngine Mission

Improving mid-market business performance

by automating on-demand financial and

operational benchmarking

Deliver fast, easy to use financial

comparisons

Proprietary Peer Group Builder

Accessible anywhere, anytime

Automate tedious manual research

Incorporate best practice financial analysis

2

About OPEXEngine • Founded 2006, partnered with the SIIA, conduct annual confidential

Software and SaaS Benchmarking

• Partner with EDGR (RR Donnelly) for the On-Demand Financial Insights

Reports

Why Benchmark?

“We found OPEXEngine’s reports to be square on with what

we needed and a critical source of data for our management

team. High quality data – like OPEXEngine – is rare and worth

paying for.” Jim Lejeal, CFO, Rally Software

www.opexengine.com

For budgeting and planning

In setting internal targets

For board meetings

For fundraising and investors

Because good quality financial comparisons drive informed decision-

making and top performance

Who are your peers? Factors to Consider

Early stage or late stage

Are you SalesForce or

$10M venture backed?

Growth mode or profitability

goals?

Sales and marketing model

www.opexengine.com

Factors that are

less important

Same product

Same customers

“The great thing about the OPEXEngine data is that there are several peer groups to look at. You can look at metrics for private vs public companies, metrics for companies in your revenue band, or with similar headcount. So many other metric reports are too focused on public companies. Public company data just isn’t that relevant to us.” Mike Morgan, CFO, Bomgar Corporation

Early to Growth Stage Customer Growth and Employees

www.opexengine.com

Source: 2012 OPEXEngine Software and SaaS Benchmarking

Saas Companies By

Revenue: Less Than

$10M

Saas Companies By

Revenue: $10M -

$20M

Recognized

Revenue: $20M -

$40M

Average Recognized Revenue $3,894,367 $13,373,688 $26,788,202

2011 over 2010 YTY Revenue Growth

Rate 33.60% 35.90% 46.60%

Customer Metrics

Number of Customers at end of 2011 125 900 2,109

Net percent change in the number of

customers at the end of 2011 from 2010 72.50% 24.10% 28.90%

EMPLOYEE PRODUCTIVITY

Number of Employees (FTEs) 31.3 75 188.5

Early to Growth Stage Cost and Expense Detail

www.opexengine.com

Source: 2012 OPEXEngine Software and SaaS Benchmarking

Saas Companies By

Revenue: Less Than

$10M

Saas Companies By

Revenue: $10M -

$20M

Recognized

Revenue: $20M -

$40M

Average Recognized Revenue $3,894,367 $13,373,688 $26,788,202

Operating Income -158.80% 1.70% -23.90%

Cost and Expense Detail (as a % of total

recognized revenue)

Total cost of revenue (cost of products

+ cost of services) 60.40% 28.90% 33.40%

Research & Development 67.10% 19.60% 22.00%

Sales 60.00% 25.80% 33.90%

Marketing 27.80% 13.00% 16.50%

Private SaaS Regional

Compensation Differences

www.opexengine.com

Source: 2012 OPEXEngine Software Benchmarking Industry Report

Financials for Recent IPOs

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Source: OPEXEngine On-Demand Financial Insights Reports

OPEXEngine Analytics FINANCIAL INSIGHTS REPORT

Stock Ticker BCOV BV CSOD JIVE Average

Company BRIGHTCOVE INC BAZAARVOICE INCCORNERSTONE ONDEMAND INCJIVE SOFTWARE, INC.

Reporting Period Q2 2012 Q1 2013 Q2 2012 Q2 2012

($000s)

Market Cap (diluted, priced as of the period end date) $417,294 $967,991 $1,184,857 $1,299,785 $967,482

Revenue to Market Cap Multiplier 4.83 6.79 11.09 12.06 8.69

Earnings Per Share (diluted) -0.16 -0.30 -0.17 -0.19 -0.21

Price to Earnings Ratio -6.12 -16.67 -158.73 -21.86 -50.85

Mean Analyst Earnings Estimate (Current Year) -0.46 -0.96 -0.46 -0.66 -0.64

Recognized Revenue $21,620 $35,662 $26,718 $26,950 $27,738

  Annual Revenue Growth 48.3% 62.6% 72.3% 56.8% 60.0%

Recognized Revenue + Change in Deferred Revenue $28,093 $52,679 $49,347 $52,449 $45,642

Short-Term Deferred Revenue (This Period) $15,970 $46,450 $57,462 $71,462 $47,836

  Deferred Revenue as a % of Recognized Revenue 73.9% 130.3% 215.1% 265.2% 171.1%

Mean Analyst Revenue Estimate (Current Year) $105,718 $193,960 $165,902 $153,081 $154,665

  Cost of Goods and Services Sold as a % of Revenue 29.8% 35.4% 29.5% 40.5% 33.8%

    S&M Expense as a % of Recognized Revenue 45.1% 43.0% 65.2% 54.1% 51.8%

    G&A Expense as a % of Recognized Revenue 19.8% 45.4% 21.7% 13.9% 25.2%

  SG&A Expense as a % of Recognized Revenue 64.8% 88.4% 86.9% 68.0% 77.0%

  R&D Expense as a % of Recognized Revenue 21.1% 21.0% 12.8% 33.9% 22.2%

  Total Operating Expense as % of Total Revenue* 67.9% 77.6% 54.5% 52.4% 63.1%

VALUATION COMPARISONS

REVENUE COMPARISONS

COST AND EXPENSE COMPARISONS

SalesForce Valuation and

Revenue Growth since IPO

www.opexengine.com

Source: OPEXEngine On-Demand Financial Insights Reports

OPEXEngine Analytics FINANCIAL INSIGHTS REPORT

Stock Ticker CRM CRM CRM CRM CRM Average

Company SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC

Reporting Period Full Year 2012 Full Year 2010 Full Year 2008 Full Year 2006 Full Year 2004

Period Start Date and End Date 02/01/2011-01/31/2012 02/01/2009-01/31/2010 02/01/2007-01/31/2008 02/01/2005-01/31/2006 02/01/2003-01/31/2004

($000s)

Market Cap (diluted, priced as of the period end date) $15,803,274 $8,141,645 $6,354,926 $4,874,154 na $8,793,500

Revenue to Market Cap Multiplier 6.97 6.24 8.49 15.73 na 9.36

Earnings Per Share (diluted) -0.09 0.65 0.16 0.27 0.12 0.22

Price to Earnings Ratio -1297.78 97.77 324.44 152.04 na -180.88

Mean Analyst Earnings Estimate (Current Year) -0.09 -0.09 -0.09 -0.09 -0.09 -0.09

Recognized Revenue $2,266,539 $1,305,583 $748,700 $309,857 $96,023 $945,340

  Annual Revenue Growth 36.8% 21.3% 50.6% 75.7% 88.3% 54.5%

  3 Year Revenue CAGR 28.2% 38.0% 61.9% 82.5% na 52.6%

Recognized Revenue + Change in Deferred Revenue $2,644,922 $1,411,997 $937,266 $383,132 $126,529 $1,100,769

Short-Term Deferred Revenue (This Period) $1,291,622 $690,177 $468,821 $169,175 $49,677 $533,894

  Deferred Revenue as a % of Recognized Revenue 57.0% 52.9% 62.6% 54.6% 51.7% 55.8%

Mean Analyst Revenue Estimate (Current Year) $3,827,694 $3,827,694 $3,827,694 $3,827,694 $3,827,694 $3,827,694

VALUATION COMPARISONS

REVENUE COMPARISONS

SalesForce Cost, Expense and

Profitability over Time

www.opexengine.com

Source: OPEXEngine On-Demand Financial Insights Reports

OPEXEngine Analytics FINANCIAL INSIGHTS REPORT

Stock Ticker CRM CRM CRM CRM CRM Average

Company SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC

Reporting Period Full Year 2012 Full Year 2010 Full Year 2008 Full Year 2006 Full Year 2004

Period Start Date and End Date 02/01/2011-01/31/2012 02/01/2009-01/31/2010 02/01/2007-01/31/2008 02/01/2005-01/31/2006 02/01/2003-01/31/2004

($000s)

  Cost of Goods and Services Sold as a % of Revenue 21.6% 19.8% 22.9% 22.3% 18.0% 20.9%

    S&M Expense as a % of Recognized Revenue 51.6% 46.4% 50.3% 48.3% 56.9% 50.7%

    G&A Expense as a % of Recognized Revenue 15.3% 15.0% 15.6% 15.5% 17.6% 15.8%

  SG&A Expense as a % of Recognized Revenue 66.9% 61.3% 65.8% 63.8% 74.5% 66.5%

  R&D Expense as a % of Recognized Revenue 13.0% 10.1% 8.5% 7.5% 7.3% 9.3%

  Total Operating Expense as % of Total Revenue* 68.5% 66.0% 59.4% 57.6% 59.3% 62.2%

Gross Profit $1,777,653 $1,047,658 $577,109 $240,731 $78,750 $744,380

Gross Margin 78.4% 80.2% 77.1% 77.7% 82.0% 79.1%

Total Operating Income/Loss ($35,085) $115,272 $20,309 $20,102 $3,718 $24,863

Total Operating Profit Margin -1.6% 8.8% 2.7% 6.5% 3.9% 4.1%

Total Pre-Tax Income/Loss ($33,317) $142,381 $46,213 $28,198 $4,239 $37,543

Total Pre-Tax Margin -1.5% 10.9% 6.2% 9.1% 4.4% 5.8%

Total Net Income/Loss ($11,572) $80,719 $18,356 $28,474 $3,514 $23,898

Total Net Margin -0.5% 6.2% 2.5% 9.2% 3.7% 4.2%

EBITDA $239,743 $233,068 $86,723 $40,735 $14,908 $123,035

After Tax Return On Assets -0.3% 3.3% 1.7% 6.6% 4.0% 3.1%

COST AND EXPENSE COMPARISONS

PROFITABILITY ANALYSIS COMPARISONS

www.opexengine.com

Critical SaaS Metrics Tracked

“The OPEXEngine

benchmarking report

is a key element of

our planning process,

it helps us set the right

targets for our cost

structure 2 to 3 years

out.”

Stephane Panier,

CFO, GoodData

KEY SAAS SPECIFIC METRICS

Total Annual Recurring Revenue (ARR)

Change in Annual Recurring Revenue from 2010 to 2011

Contracted Monthly Recurring Revenue (CMRR) as of December 31 2011

Change/Growth Rate in Contracted Monthly Recurring Revenue from Dec 31 '10 to Dec 31 '11

Customer Acquisition Costs (CAC) per Customer

Average Cost of Service (platform, operations, customer support and maintenance) per User

Average Recurring Revenue per Customer

Customer Lifetime Value (CLV)

Customer Metrics

Number of Customers at end of 2011

Net percent change in the number of customers at the end of 2011 from 2010

Average Monthly Revenue per Customer for Dec 2011

Recognized Revenue per Customer

Average Customer's Total Lifetime Revenue

Operating Expense per Customer

Customer Acquisition Costs (CAC) per Customer

Number of Channel Partners

Percentage of customers that are $1 Billion + Enterprises

Churn Rates

Customer Renewal Rate During Year (As a % of Customers Up for Renewal)

Dollar Renewal Rate During Year (As a % of Total $ Value Up for Renewal)

Seat renewal rate - percentage of seats renewed that were up for renewal in 2011

Payment Terms

If upfront payment is typically required from customers, how many months payment do your charge?

Average Term of a Customer Contract in Months

HOSTING EXPENSES:

Total hosting expense (As a % of Total Recognized Revenue)

Number of datacenters

Hosting expense per data center

Best Practices Use peer benchmarks to help define performance targets

Incorporate benchmarking data up front in budgeting and

planning process and review against it

monthly/quarterly/annually

Communicate benchmarks regularly to all executive

departments and with Board to drive Executive Team

ownership and collaboration and build credibility with the

Board

“We’ve participated in OPEXEngine’s confidential software benchmarking for the

past four years and find the data highly useful. As a fast growth, mid-sized, public

software company, we are data-driven in our management and planning

processes and OPEXEngine’s software benchmarking is a critical information

source for detailed financial and operating metrics.” Ralph Bryant, VP Finance,

RightNow (RNOW)

Business, like sports, is about constantly driving performance through

benchmarking your performance against peers and leaders

2012 Olympics, London

Thank You

lauren@opexengine.com

617-674-4218

www.opexengine.com

www.opexengine.com