Real Estate Technology Sector Summary 2017 …...Public Real Estate Technology Ecosystem NTM Revenue...

1

Real Estate Technology Sector Summary

2017 Annual Review

22

GCA REAL ESTATE TECHNOLOGY TEAM

Chris GoughManaging Director

Head of Real Estate TechnologyPhone: (415) 318-3658Mobile: (415) [email protected]

Sean MinnihanManaging Director

Head of Financial TechnologyPhone: (212) 999-7077Mobile: (917) 364-6230

[email protected]

Steve FletcherManaging DirectorCo-Head of Software

Phone: (415) 318-3661Mobile: (415) 518-6725

[email protected]

Paul DiNardoManaging DirectorCo-Head of Software

Phone: (212) 999-7097Mobile: (650) 483-7246

[email protected]

Residential Software Commercial Software Mortgage / Lending Title / Insurance

Home Services Facilities Management Construction Tech

June 2016

Investment from

We advised the seller

Undisclosed

Acquired by


~$108,000,000

August 2015

MBO backed by


April 2017

Undisclosed

Acquired by


~$166,000,000

August 2014

Undisclosed

Acquired by


December 2016

Acquired by


~$355,000,000

August 2013

Acquired by


Undisclosed

August 2016

Undisclosed

Minority Investment From


October 2017

Majority Interest Acquired by

We Advised the Seller

October 2017

Undisclosed

Key Sub-Sector Coverage Verticals

33

EXECUTIVE SUMMARY

Select Active Growth Select Active Buyout Select Active Strategic Buyers

• 2017 ended with a flurry of deals in Q4 that drove annual financing activity to yet another year of record investment in the category

− $2.9Bn in financing activity in 2017, up 69% YoY, reflects continued strong investor appetite for disruptive innovation in the sector

− Innovative, tech driven approaches to traditional processes driving activity (Roofstock, Vacasa, Blend, Compass, etc.)

• Continued M&A activity from both strategic and sponsor buyers → GCA expects continued consolidation activity in 2018

− Real estate tech M&A activity up 27% YoY in 2017

• Key themes / questions for 2018:

− Larger consolidators continue to have multiple M&A options within each offering category as large amounts of VC funding have created crowded pockets of the market, especially in residential RE

− Multi-family and commercial RE tech will remain hot sectors given B2B nature of offering and massive market opportunity for techdisplacement of legacy management, leasing and payment processes

− Expect to see facilities management to remain active given the PE backed businesses executing roll-up strategies in the category

− How will traditional mortgage originators evolve to address innovation and disruption driven by the new customer engagement and underwriting models?

44

$48$117

$220

$475

$763

$1,138

$1,694

$2,862

2010 2011 2012 2013 2014 2015 2016 2017

Date CompanySelected

Investor(s)Amt.

InvestedFunding to Date

Latest Reported

Valuation(2)

12/07 $450(1) $763 $2,200

11/08 $100 $763 $2,200

10/17 $104 $144 NA

8/24 $100 $167 $500

6/05 $65 $133 $800

ANOTHER RECORD YEAR – REFLECTED IN 2017 DEAL FLOW

Real Estate Technology Venture Investment (2010 - 2017)

($MM)

2017: Record

Investment in RE

Tech Sector

Notes:Source: Capital IQ, Pitchbook and Press Releases.(1) Excludes $50MM in secondary financing.(2) Post-money valuation.

Q4$851

Q3$135

Q2$229

Q1$101

$1,316• 215 deals in 2017, the most active

year of financing to date

• ~$550MM raised in 2017 by Compass

• Vacasa, RedAwning and TurnKey, all property management services businesses, raised capital in 2017, including $100MM for Vacasa in Q4

• Mortgage and investing tech continues to be an active market category Blend / Roofstock / Cadre and multiple others raising capital

($MM)

55

$249$303

$368

$12 $6 $17

FY2016A FY2017A FY2018E

Revenue EBITDA

Stock Price Performance Since IPO

Revenue & EBITDA

Offering Overview

• On May 11, 2017, Real Matters Inc. went public at a price of $13.00 CAD / share ($10.42), listing its common stock on the Toronto Stock Exchange under the ticker symbol “REAL”, marking the largest Canadian tech IPO since Shopify (2015)

• Original range for IPO pre-pricing was $12.00 CAD – $13.00 CAD / share

• Real Matters offered 12,056,186 shares and did not exercise its overallotment. Gross proceeds to the company were $157MM CAD ($129MM), or $12.22 CAD ($9.80) / share. 80% of the proceeds went to the company with the remaining 20% to existing shareholders

• Real Matters’ stock is down 22% since its IPO and currently has a market cap of ~$700MM (12/29/2017)

• Currently trading at 1.7x NTM revenue and 36.8x NTM EBITDA

REAL MATTERS (TSX:REAL) IPO REVIEW

(22%)

(2%)

(40%)

(30%)

(20%)

(10%)

0%

10%

Real Matters

Mortgage / Data Technology Index

Financial Highlights ($MM)

Notes:Source: Source: SEDAR filings, press releases, news articles and Capital IQ as of 12/31/17.

66Notes:Source: SEC filings, press releases, news articles and Capital IQ as of 12/31/2017.

REDFIN (NASDAQ:RDFN) IPO REVIEW

• On July 28, 2017, Redfin went public at a price of $15.00 / share, listing its common stock on the Nasdaq under the ticker symbol “RDFN”

• Original range for IPO pre-pricing was $12 - $14 / share

• Redfin offered 9,231,000 shares and exercised its overallotment of an additional 1,384,000 shares. Gross proceeds to the company were $138MM, or $13.95 / share with the overallotment providing an additional $20MM in proceeds

• Redfin’s stock is up 44% since its IPO and has a market cap of ~$2.5Bn (12/29/2017)

• Currently trading at 4.9x NTM revenue

Offering Overview

Stock Price Performance Since IPO

Financial Highlights ($MM)

Revenue & EBITDA

$267$366

$476

($15) ($0)

$14

FY2016A FY2017E FY2018E

Revenue EBITDA

Redfin outperforms both real estate

media / portals and traditional

brokerage indexes since IPO

Redfin

Real Estate Media / Portals Index

Traditional Brokerage

44%

3%3%

(14%)

(4%)

6%

16%

26%

36%

46%

77

Buyer Target DateEnterprise

Value

10/02 NA

9/12 $385

8/02 NA

8/02 $250

7/03 $1,434

5/01 $588

3/13 $3,550

2/27 $300

2/15 $300

HEALTHY M&A MARKET

Select 2017 M&A TransactionsAnnual M&A Activity

($MM)

Notes:Source: 451 Research, Capital IQ, Pitchbook and Press Releases.

• Significant increase in 2017 M&A activity

− 72% strategic acquirers

− 28% financial acquirers

Quarterly M&A Activity

13 15

9 8

12 9

20

16

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

37

25

44 45

57

2013 2014 2015 2016 2017

88

REAL ESTATE TECHNOLOGY SECTOR SUMMARY – PUBLIC COMPANY LANDSCAPE

Real Estate Media / Portals Mortgage / Data TechnologyProperty Management SoftwareCredit / Mortgage Marketing Real Estate Sharing Economy / Travel

Traditional Mortgage / Title Services


Public Real Estate Technology Ecosystem

LTM Share Price Performance

LTM Share Price Performance

Traditional Mortgage / Title

Services

18%


27%53%

Property Management

Software

LendingTree: 235.9%QuinStreet: 122.9%MoneySuperMarket: 21.1%

Notes:Source: Capital IQ.

97%

Credit / Mortgage Marketing

12%

Real Estate Sharing Economy

/ Travel

12%

Mortgage / Data Technology

36%

Real Estate Media / Portals

(30%)

(10%)

10%

30%

50%

70%

90%

110%

Dec-16 Mar-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17

53%

12%

18%

36%

97%

12%

27%

99

27.1x

22.0x19.3x

17.4x

13.7x 13.2x

9.6x

0.0x

6.0x

12.0x

18.0x

24.0x

30.0x

1 1 1 1 1 1 1

7.9x

4.7x 4.3x3.7x 3.5x 3.5x

1.9x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

1 2 3 4 5 6 7

Notes:Multiples represent mean value of sector group.Source: Capital IQ.

REAL ESTATE TECHNOLOGY SECTOR SUMMARY – PUBLIC COMPANY VALUATION

Enterprise Value / 2018E EBITDAEnterprise Value / 2018E Revenue

Public Real Estate Technology Ecosystem

NTM Revenue / NTM EBITDA Multiple

3.5x / 13.7x


1.9x / 9.6x 4.7x / 27.1x

Property Management

Software

3.5x / 13.2x

Real Estate Sharing Economy

/ Travel

4.3x / 19.3x


7.9x / 22.0x


3.7x / 17.4x



Services



Traditional Mortgage

/ Title Services

Traditional Mortgage

/ Title Services

Real Estate Sharing

Economy / Travel

Real Estate Sharing

Economy / Travel

Mortgage / Data

Technology

Mortgage / Data

Technology



Property Management

Software

Property Management

Software



1010

Residential Real Estate Technology Mortgage / Investment Technology

Company FoundedAmt. Raised/

Invested

2012 $763

2014 $320

2008 $104

2008 $85

2009 $75

2014 $64

2012 $56

2011 $53

2012 $39

2015 $36

CRE / Facilities Technology Residential Real Estate Technology


Invested

1995 $259

2015 $244

2002 $182

2014 $133

2010 $130

2011 $110

1999 $100

2012 $99

2013 $97

2004 $65

/

Notes:Source: Capital IQ and Pitchbook.(1) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised

$88mm and $22mm, respectively.(2) Excludes $250MM bridge financing.(3) Excludes Airbnb and Houzz financing rounds.

PRIVATE COMPANY FUNDING LEADERS

(2)

(1)

(3)

Deal completed 2017

Mortgage / Investment Technology


Invested

2015 $180

2012 $167

2013 $109

2010 $78

2013 $69

1998 $55

2014 $55

2005 $42

2013 $27

2015 $23

($MM) ($MM) ($MM)

1111

REAL ESTATE TECHNOLOGY SECTOR SUMMARY – SELECTED M&A ACTIVITY

Notes:Source: Capital IQ and Pitchbook.

20

17

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value LTM NTM LTM NTM Target Description

($MM)

12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software.

11/17/2017 NA NA NA NA NAProvides an online portal that provides information on real estate properties. Its portal provides ads and other

advertising materials for real estate.

11/16/2017 NA NA NA NA NADevelops an online rental platform designed to help people with disabilities find reasonable and accessible

accommodations when traveling.

10/23/2017 $6 NA NA NA NA Developer of rental housing software designed to manage complex tenancy relationships.

10/17/2017 NA NA NA NA NAProvides a cloud-based software system for clients in the condominium development and sales sector with a

comprehensive web-based application.

10/16/2017 NA NA NA NA NADevelops cloud-based transaction management systems designed to create, store, sign and manage all listing,

sales and lease files online.

10/16/2017 NA NA NA NA NAProvides housing management software for public housing authorities and private affordable housing

developments.

10/4/2017 NA NA NA NA NADevelops and supplies real estate management software designed to provide full access to vital information in

real estate

10/2/2017 NA NA NA NA NADevelops a SaaS-based real estate transaction management software created to help real estate agents manage

their transactions online.

9/12/2017 385 3.9x NA 25.7x NAOperates an online rental search destination that connects apartment shoppers to rental properties throughout

the United States and Canada.

9/8/2017 NA NA NA NA NA Provider of real estate listing management technology to developers and builders.

8/31/2017 128 NA NA NA NAProvides cloud-based intelligent sales software that enables mortgage companies to close more loans by

helping loan officers respond quickly to prospective borrowers.

8/2/2017 NA NA NA NA NAProvides an online real estate marketplace allows people to buy and sell commercial and residential real estate

properties online using desktop and mobile technology.

8/2/2017 250 NA NA NA NAProvides a real estate leasing platform that facilitates communicaty marketing, renter qualification, lease

contract generation and document storage.

8/1/2017 NA NA NA NA NA Provides mortgage loan application software, loan origination software, and data security solutions.

7/25/2017 NA NA NA NA NA Develops customer relationship management software and a marketing platform for real estate professionals.

7/10/2017 NA NA NA NA NA Provides an online marketplace that connects borrowers and lenders.

7/3/2017 1,434 3.0x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States.

6/19/2017 70 2.3x NA NA NA Provider of utility management and energy services.

6/13/2017 78 NA NA NA NAProvider of an online real estate agent platform, offering agents maximum property exposure and a host of

services.

1212

(1)

REAL ESTATE TECHNOLOGY SECTOR SUMMARY – SELECTED M&A ACTIVITY (CONT’D)

Notes:Source: Capital IQ and Pitchbook.(1) Represents a merger of equals between VTS and Hightower.

($MM)

20

17



20

16

6/6/2017 NA NA NA NA NAProvider of an appraisal management platform that uses desktop and cloud-based valuation supply chain

technology that connects all of the parties involved in the appraisal process.

6/1/2017 NA NA NA NA NA Developer of web-based CRM software intended for the real estate industry.

5/23/2017 NA NA NA NA NAProvider of a real estate software platform coupled with an open and connected ecosystem for real estate

businesses.

5/1/2017 $588 1.9x 2.0x NM 20.3x Operator of a consumer review website intended to help consumers find service providers.

4/27/2017 NA NA NA NA NAProvider of a web-based land and rural property marketplace, facilitating buying, renting and selling of

properties.

3/13/2017 3,550 2.1x 2.1x 11.2x 7.4xDeveloper of lending and payments software products created to deliver financial technology to banks

worldwide.

2/27/2017 300 8.4x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America.

2/15/2017 300 NA NA NA NAOperator of an online rental marketplace intended to rent high-end properties. The company's rental platform

provides a marketplace for luxury and high-end villas to rent.

1/24/2017 75 NA NA NA NA Provider of data intelligence services designed to offer apartment market data.

11/29/2016 300 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

9/21/2016 NA NA NA NA NA RedVision Systems, Inc. provides title reporting and property research solutions.

7/26/2016 NA NA NA NA NADeveloper and provider of an an end-to-end software as a service customer relationship management, lead

generation and lead management software platform

6/22/2016 36 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

6/16/2016 NA NA NA NA NAProvides mortgage pricing and eligibility, mortgage sales, mortgage rate quoting and marketing automation

software for banks, mortgage lenders and loan officers.

6/7/2016 NA NA NA NA NA Provides cloud-based document and data management platforms.

6/3/2016 NA NA NA NA NAProvides SaaS based real estate investment management and reporting software and services for the

affordable housing, private equity, and government markets.

5/18/2016 NA NA NA NA NAProvides real estate and facilities management software solutions to Fortune 500 companies that automates

location lifecycle to improve the performance of locations.

5/16/2016 115 4.8x NA 23.0x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry.

2/25/2016 NA NA NA NA NAProvider of a search engine for rental properties. The company offers a map-based online platform with real-

time filtering that enables users to search for apartments to rent in a selected area.

2/23/2016 70 1.2x NA 11.7x NAProvides utility management, energy management, electronic payment, sub metering and back office

solutions.

1313

REAL ESTATE TECHNOLOGY SECTOR SUMMARY – SELECTED M&A ACTIVITY (CONT’D)2

01

5

Notes:Source: Capital IQ and Pitchbook.



($MM)

2/2/2016 NA NA NA NA NA Provides commercial property management software for real estate companies in Germany.

1/28/2016 NA NA NA NA NA Provides Web-based property management solutions to support multiple properties, units, and users.

12/17/2015 $475 NA NA NA 13.5x Provides property appraisal and real estate collateral management software.

11/4/2015 3,900 8.0x 7.2x 63.5x 28.4xProvider of an online vacation rental property marketplace that enables property owners / managers to market

properties for rental to travelers.

11/4/2015 18 NA NA NA NA Provider of hospitality management software systems for hotels, resorts, and spas worldwide.

10/14/2015 16 NA NA NA NAProvides a Web-based relationship management solution for mortgage professionals to improve customer

retention.

7/22/2015 108 NA NA NA NA Provider of an online collaborative transaction environment for the real estate industry.

6/3/2015 NA NA NA NA NAProvider of real estate enterprise software applications and hosted solutions for the property management

industry.

4/29/2015 170 2.2x NA 7.0x NA Provider of an online apartment listing service.

4/8/2015 NA NA NA NA NA Provider of an online apartment advertising service for property managers and owners.

6/2/2015 49 NA NA NA NA Provides a suite of cloud-based, smart answer automation and routing.

Mean 3.6x 2.3x 20.3x 12.9x

Median 2.7x 2.1x 19.9x 11.1x

14

APPENDIX

1515

Date TargetEnterprise

Value ($MM)EV / LTM Revenue

EV / LTM EBITDA

Synergies at Announcement

($MM)

Listings at Announcement

9/12/17 $385 3.9x 25.7x $25 17,000

4/29/15 $170 2.4x 7.0x $20 13,400

3/02/14 $585 6.8x 23.9 $20 18,200

COSTAR ACQUIRES FORRENT – ACQUISITION PROFILE

Acquisition Profile

ForRent Profile

CoStar’s Apartments.com Network Growth

• On September 12TH, 2017 CoStar Group announced the acquisition of ForRent from Dominion Enterprises for a total of $385MM consisting of $350MM in cash and $35MM in stock

• ForRent is one of the independent leaders of digital advertising for multifamily properties and multifamily listings and will be added to CoStar’s family of sites in the Apartments.com network

• The FTC has delayed the completion of the deal at least 60 days for CoStar and Dominion Enterprises to submit additional details regarding the acquisition

• ForRent estimated to generate 2017E revenue and EBITDA of $100MM and $15MM, respectively

• Implies pre-synergies acquisition multiple of 3.9x AV / Revenue and 25.7x AV / EBITDA

• However, CoStar expects to realize ~$25MM in annual synergies within 24 months of closing, which moves the implied synergized acquisition EBITDA multiple to ~10.0x AV / EBITDA

ForRent User / Advertiser Stats:

• Unique monthly visitors (1H 2017): 3.5MM

• 17,000 advertised properties on ForRent network of multifamily sites

• 435 employees in 38 offices in the US

• CoStar continues to expand aggressively in the apartments category and ForRentrepresents its third major apartments acquisition since 2014

• Combined Apartments.com network will have some 43,000 advertised properties

• ForRent adds 135 experienced sales professionals to Apartments.com’s existing 230 person sales team

• ForRent broadens Apartments.com’s exposure to slightly the slightly smaller unit community

• Pro forma synergized ForRent EBITDA margins of 45-55% on ~$75MM - $85MM revenue contribution from ForRent

CoStar Suite, $223 MM

Information Services, $36 MM

Multifamily, $132 MM

Commericial Property & Land,

$71 MM

CoStar 1H 2017 Revenue by Segment

• CoStar’s multifamily revenue, including ForRent, expected to approach $400MM run rate by end of 2017

Notes:Source: Capital IQ and Company Filings as of 12/31/2017.

1616

HOMEADVISOR / IAC ACQUIRES ANGIES’S LIST – ACQUISITION PROFILE

• On 5/1/17, IAC announced intention to combineHomeAdvisor and Angie’s List into ANGI HomeservicesInc., a new, publicly traded company, with Class Ashares listed on NASDAQ; the transaction closed9/29/2017

• Imp. Equity Value: $500MM; Imp. Ent. Value: $588MM

• Imp. EV / NTM Rev: 2.0x; Imp. EV / NTM EBITDA: 20.3x

• Final pro forma economic ownership of the combinedcompany (varies based on cash election feature):

─ 87-90% IAC

─ 10-13% Angie’s List security holders

─ Approximately 492 million shares outstanding

─ 2018E PF Adjusted EBITDA of $270MM (includessynergies; excludes one-time transaction costs andDR write offs)

• Angie’s List stockholders can elect to receive, for eachshare of Angie’s List stock, either:─ One share of Class A common stock of ANGI

Homeservices Inc. (one vote per share); or─ $8.50 per share in cash (45% premium to 1-day

prior) – subject to overall cap of $130MM in cashfor transaction

• IAC to receive Class B common stock of ANGIHomeservices Inc. (ten votes per share)

• Stock portion of transaction expected to be tax free toAngie’s List stockholders

• IAC to appoint a majority of Board of Directors; twocurrent Angie’s List directors to serve on Board─ IAC CEO Joey Levin to serve as Chairman; current

HomeAdvisor CEO Chris Terrill to serve as CEO• Agreement prohibits ANGI from soliciting competing

acquisition proposals

• Combination creates a clear industry leader

• Significantly improved growth and earnings profile: willaccelerate and extend HomeAdvisor growth

• Combines two sets of consumers and service providersinto one online service

• Multiple substantial sources of synergies, targeting$100MM-250MM in annualized synergies

─ $50MM – 75MM from shared expense base

─ $50MM – $100MM from monetizing Angie’s Listaudience using HomeAdvisor’s existing SP network

─ Up to $75MM from combined networks

─ Expect to fully implement synergies by the end of2018

─ One-time costs of approximately $100M

• IAC made multiple offers to acquire Angie’s List in 2015

─ 10/5/15: IAC first approached Angie’s List regardinga combination

─ 10/23/15: IAC submitted an initial proposal for$8.50 per share

─ 11/11/15: IAC submitted a second proposal for$8.75 per share

• IAC took the pursuit public in 2015 with a new letter tothe board explaining why a deal would make sense

• Angie’s List turned down IAC 11/11/15 offer at $8.75per share, representing a 10% premium

• On 11/1/16, Angie’s List announced that they retainedfinancial advisers to review strategic options

5MM+ Members

55K+ Service Professionals

700+ Service Categories

60K+ Reviews / Month

10MM+ Reviews

9MM Homeowners Served

156K+ Service Providers

$12Bn+ Value of Projects

14MM+ Service Requests

400+ Areas Served

Adjusted EBITDA ($MM)

2014A: $315

2015A: $344

2016A: $323

2014A: $284

2015A: $361

2016A: $499

2014A: $4

2015A: $28

2016A: $28

2014A: $18

2015A: $19

2016A: $49

~90% of discovery

offline

Transactions closed

with SPs found on HomeAdvisor

Estimated transactions closed

with SPs found on Angie's List

Other online

$400Bn Market

• Migration of service professionals (“SPs”) accelerating

• Vast majority of SPs still found offline through word ofmouth and referrals

Revenue ($MM)

Transaction Overview Structure Strategic Rationale

Deal History US Home Services Market Businesses at a Glance

Notes:Source: Capital IQ and Company Filings as of 12/31/2017.

1717

PUBLIC REAL ESTATE TECHNOLOGY ECOSYSTEM

Notes:Source: Capital IQ and Wall Street Research.

($MM, except per share data)

Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 12/29/17 Value Debt Value CY17E CY18E CY17E CY18E CY17E CY18E 17E/16A 17E/18E CY17E CY18E


CoStar Group, Inc. $296.95 $10,733 ($317) $10,416 $965 $1,110 10.8x 9.4x 36.1x 27.8x 15.3% 15.0% 29.9% 33.8%

REA Group Limited $59.87 7,886 103 7,989 572 672 14.0x 11.9x 24.7x 20.6x NA 17.5% 56.6% 57.8%

Zillow Group, Inc. $40.74 7,488 (300) 7,188 1,073 1,299 6.7x 5.5x 30.4x 22.0x 26.7% 21.1% 22.1% 25.1%

Rightmove plc $60.82 5,536 (23) 5,514 328 358 16.8x 15.4x 22.2x 20.3x 22.2% 9.2% 75.6% 75.9%

Redfin Corporation $31.32 2,546 (212) 2,334 366 476 6.4x 4.9x NM NM NA 30.2% (0.0%) 2.9%

ZPG Plc $4.47 1,949 257 2,206 365 475 6.0x 4.6x NM NM 36.7% 30.1% (1.6%) 1.5%

Lifull Co., Ltd. $8.95 1,062 (40) 1,023 268 275 3.8x 3.7x 21.1x 19.6x 17.3% 2.4% 18.1% 19.0%


Mean 9.2x 7.9x 26.9x 22.0x 24% 18% 29% 31%

Median 6.7x 5.5x 24.7x 20.6x 22% 18% 22% 25%


Black Knight, Inc. $44.15 $6,777 $1,400 $8,177 $1,058 $1,158 7.7x 7.1x 16.1x 14.4x 2.3% 9.4% 47.9% 48.9%

CoreLogic, Inc. $46.21 3,806 1,648 5,455 1,848 1,870 3.0x 2.9x 11.5x 11.2x (4.5%) 1.2% 25.6% 26.1%

Ellie Mae, Inc. $89.40 3,088 (366) 2,721 413 493 6.6x 5.5x 22.8x 20.4x 16.5% 19.6% 28.9% 27.1%

Real Matters Inc. $8.04 707 (71) 636 298 369 2.1x 1.7x NM 36.8x 19.9% 23.9% 2.1% 4.7%

Reis, Inc. $20.65 237 (17) 219 48 53 4.5x 4.1x 17.8x 13.5x 2.0% 10.2% 25.4% 30.4%


Mean 4.8x 4.3x 17.1x 19.3x 7% 13% 26% 27%

Median 4.5x 4.1x 17.0x 14.4x 2% 10% 26% 27%

Property Management Software

RealPage, Inc. $44.30 $3,672 $288 $3,960 $672 $827 5.9x 4.8x 24.4x 18.3x 18.2% 23.0% 24.1% 26.1%

AppFolio, Inc. $41.50 1,409 (43) 1,366 142 181 9.6x 7.5x NM 37.7x 35.2% 27.6% 19.0% 20.0%

Agilysys, Inc. $12.28 286 (38) 248 128 139 1.9x 1.8x NM 25.2x (1.9%) 8.7% 4.4% 7.1%

Property Management Software

Mean 5.8x 4.7x 24.4x 27.1x 17% 20% 16% 18%

Median 5.9x 4.8x 24.4x 25.2x 18% 23% 19% 20%


Jones Lang LaSalle Incorporated $148.93 $6,756 $1,236 $7,992 $7,631 $8,089 1.0x 1.0x 11.3x 10.5x 14.8% 6.0% 9.2% 9.4%

Realogy Holdings Corp. $26.50 3,567 3,395 6,962 6,115 6,369 1.1x 1.1x 9.5x 9.1x 5.8% 4.2% 11.9% 12.0%

Colliers International Group Inc. $60.50 2,353 262 2,615 2,200 2,379 1.2x 1.1x 11.2x 10.0x 14.0% 8.2% 10.6% 10.9%

Marcus & Mill ichap, Inc. $32.61 1,244 (257) 987 706 733 1.4x 1.3x 9.8x 9.3x (1.3%) 3.9% 14.3% 14.4%

RE/MAX Holdings, Inc. $48.50 858 160 1,018 196 210 5.2x 4.9x 9.6x 9.0x 12.5% 6.9% 54.0% 53.9%


Mean 2.0x 1.9x 10.3x 9.6x 9% 6% 20% 20%

Median 1.2x 1.1x 9.8x 9.3x 13% 6% 12% 12%

1818

PUBLIC REAL ESTATE TECHNOLOGY ECOSYSTEM (CONT.)

Notes:Source: Capital IQ and Wall Street Research.

($MM, except per share data)

Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 12/29/17 Value Debt Value CY17E CY18E CY17E CY18E CY17E CY18E 17E/16A 17E/18E CY17E CY18E


Fidelity National Financial, Inc. $39.24 $10,719 ($359) $10,360 $7,821 $7,811 1.3x 1.3x 8.2x 9.1x (3.6%) (0.1%) 16.2% 14.5%

First American Financial Corporation $56.04 6,210 (408) 5,802 5,739 5,881 1.0x 1.0x 8.4x 7.2x 4.8% 2.5% 12.1% 13.8%

Radian Group Inc. $20.61 4,443 (127) 4,316 1,191 1,284 3.6x 3.4x NM NM (6.1%) 7.8% NM NM

Nationstar Mortgage Holdings Inc. $18.50 1,808 14,867 16,675 1,676 1,854 9.9x 9.0x 31.3x NM (4.8%) 10.6% 31.7% 0.0%

Stewart Information Services Corporation $42.30 1,005 (27) 978 1,934 1,984 0.5x 0.5x 8.4x 6.3x (1.9%) 2.5% 6.0% 7.8%

Altisource Portfolio Solutions S.A. $28.00 501 265 767 924 783 0.8x 1.0x 8.6x 6.9x (5.4%) (15.2%) 9.6% 14.3%

Ocwen Financial Corporation $3.13 410 6,510 6,919 1,019 801 6.8x 8.6x 32.3x 39.3x (26.5%) (21.4%) 21.0% 22.0%


Mean 3.4x 3.5x 16.2x 13.7x (6%) (2%) 16% 12%

Median 1.3x 1.3x 8.5x 7.2x (5%) 2% 14% 14%


LendingTree, Inc. $340.45 $4,075 ($110) $3,965 $609 $786 6.5x 5.0x 35.1x 26.4x 59.7% 29.1% 18.5% 19.1%

Moneysupermarket.com Group PLC $4.81 2,581 (23) 2,558 455 487 5.6x 5.3x 14.7x 13.6x 16.9% 7.0% 38.3% 38.6%

QuinStreet, Inc. $8.38 383 (50) 333 323 356 1.0x 0.9x 16.2x 12.1x 7.1% 10.0% 6.3% 7.8%


Mean 4.4x 3.7x 22.0x 17.4x 28% 15% 21% 22%

Median 5.6x 5.0x 16.2x 13.6x 17% 10% 19% 19%

Real Estate Sharing Economy / Travel

The Priceline Group Inc. $1,737.74 $84,749 $2,384 $87,133 $12,565 $14,358 6.9x 6.1x 18.5x 16.3x 17.2% 14.3% 37.5% 37.3%

Expedia, Inc. $119.77 18,264 455 18,720 10,105 11,369 1.9x 1.6x 10.7x 9.5x 15.4% 12.5% 17.3% 17.4%

TripAdvisor, Inc. $34.46 4,786 (491) 4,295 1,544 1,600 2.8x 2.7x 13.4x 13.9x 3.6% 3.6% 20.8% 19.4%

Real Estate Sharing Economy / Travel

Mean 3.9x 3.5x 14.2x 13.2x 12% 10% 25% 25%

Median 2.8x 2.7x 13.4x 13.9x 15% 13% 21% 19%

Real Estate Technology Sector Summary 2017 …...Public Real Estate Technology Ecosystem NTM Revenue...

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