Software Equity Group Flash Reportsoftwareequity.com/Reports/201501.Monthly_Flash_Report.pdf ·...

Software Equity Group Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking:

• Strategic exit• Growth capital• Buyout • Inorganic growth via acquisition• Buy and sell-side mentoring• Fairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies• Clients span virtually every software technology, product

category, delivery model and vertical market• Global presence providing advice and guidance to more

than 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction, operating, legal and engineering experience

• Unparalleled software industry reputation and track record.

• Highly referenceable base of past clients

LEADERS IN SOFTWARE M&A

We Do Deals.

Copyright © 2015 by Software Equity Group, L.L.C., All Rights Reserved

EXTENSIVE GLOBAL REACH

SEG Research Distribution

Current Sell‐side Representation

Recent Sell‐side Representation

• SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are distributed to an opt‐in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.


Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately‐held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software‐as‐a‐Service (Saas), software on‐demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty‐one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please [email protected] , 2800‐509) 858Beible, Director, Business Development (Kris contact

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.comp: (858) 509‐2800

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.

This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

ABOUT SOFTWARE EQUITY GROUP


List of Commonly Used Acronyms


http://www.softwareequity.com/

Additions:

Services

SEG Index ChangesCategory

HortonWorks HDP SaaS Business IntelligenceNew Relic Business IntelligenceSaaSNEWR

LC Internet

Company Ticker Index

LendingClubMomo MOMO Software Mobile

Workiva SaaS OtherSaaSWK

Removals:

Acquired by Alliance Data Systems ($2.5B)Compuware

Acquired by Thoma Bravo ($2.4B)


Previous Category

- Internet Ad-Tech

- Software Development Platforms

Company Ticker Previous IndexConversant


List of Commonly Used Acronyms



Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index



SEG Software Index


SEG SaaS Index

SEG Internet Index


Select December 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-01-2014 Sedgwick Claims Management Services, Inc. Absentys, LLC - - - -Dec-01-2014 Microsoft Corporation (NasdaqGS:MSFT) Acompli Inc. - - - -Dec-01-2014 Hollstadt & Associates, Inc. BenchmarkQA, Inc. - - - -Dec-01-2014 Esendex Limited Collstream Ltd. - - - -Dec-01-2014 C.H. Robinson Company, Inc. Freightquote.com, Inc. - $365.0 - -Dec-01-2014 Centerbridge Partners, L.P. IPC Systems, Inc. - $1,200.0 - -Dec-01-2014 Viewpoint, Inc. Mobile Computing Systems Ltd - - - -Dec-01-2014 Grupa Wirtualna Polska Money.pl Sp. z o.o. - - - -Dec-01-2014 Trimble Navigation Limited (NasdaqGS:TRMB) Nexala Ltd. - - - -Dec-01-2014 Confluence Technologies, Inc. Orfival SA. - - - -Dec-01-2014 Wild Card Public Relations Limited Parker Hobart Associates Limited - - - -Dec-01-2014 Intel Corporation (NasdaqGS:INTC) PasswordBox Inc. - - - -Dec-01-2014 Airbnb, Inc. Pencil Labs, Inc. - - - -Dec-01-2014 MoneySmart PT KreditAja.com - - - -Dec-01-2014 Bankrate, Inc. (NYSE:RATE) Wallaby Financial, Inc. - - - -Dec-01-2014 Volaris Group Inc. Wellington IT Solutions Ltd - - - -Dec-02-2014 T-Mobile License LLC 1900 Mhz PCS Wireless Spectrum Licenses in The Virginia East Region - $56.0 - -Dec-02-2014 Opera Mediaworks Inc. Advine Mobile Advertising Network Pty Ltd - - - -Dec-02-2014 Attunity, Ltd. (NasdaqCM:ATTU) BIReady B.V. - $1.4 - -Dec-02-2014 Alpha Technologies Inc. Cheetah Technologies, L.P. - - - -Dec-02-2014 TomTom Telematics BV Fleetlogic B.V. - - - -Dec-02-2014 ITC Systems (USA), Inc. GoPrint Systems, Inc. - - - -Dec-02-2014 Inno-Tech Holdings Limited (SEHK:8202) Great Flame Ventures Limited - - - -Dec-02-2014 Citrix Systems, Inc. (NasdaqGS:CTXS) Octoblu, Inc. - - - -Dec-02-2014 GuestLogix Ireland Limited OpenJaw Technologies, Ltd. and 20% stake in OpenJaw Technologies Iberica S.L - $43.0 - -

Acquirer

Dec-02-2014 EnerNOC, Inc. (NasdaqGS:ENOC) Pulse Energy, Inc. - - - -Dec-02-2014 Ziff Davis, LLC Scene LLC - - - -Dec-03-2014 j2 Global, Inc. (NasdaqGS:JCOM) Carbonite, Inc. (NasdaqGM:CARB) $119.5 $333.1 2.8x 37.3xDec-03-2014 Massi Miliano OÜ Clothes Horse - - - -Dec-03-2014 TeamSnap, Inc. Crescent Computing, HomeTeam App - - - -Dec-03-2014 VIZION Interactive Inc. FMB Media LLC - - - -Dec-03-2014 Predictix LLC LogicBlox, Inc. - - - -Dec-03-2014 Smile Vun Group Pvt. Ltd. NetworkPlay Media Private Limited - - - -Dec-03-2014 AppsBuilder SpA Paperlit Inc. - - - -Dec-03-2014 Nets Oy Paytrail Oyj - - - -Dec-03-2014 Pratique Medias et Services Sarl Logaweb, Le bricolage avec Bricoleurdudimanche - $0.4 - -Dec-03-2014 Access Technology Group Ltd. StratoGen Internet Limited $6.3 - - -Dec-03-2014 Possible Worldwide, LLC Swift Collective, Inc. - - - -Dec-03-2014 Permira Advisers Ltd. Teraco Data Environments (Pty) Ltd. - - - -Dec-03-2014 AFS Technologies, Inc. The POP Company Pte. Ltd. - - - -Dec-03-2014 Infogram SIA Visualoop.com - - - -Dec-04-2014 General Communication Inc. (NasdaqGS:GNCM.A) Alaska Communications, Wireless Subscriber Base And Remaining 33% Stake in Alaska Wireless Network - $300.0 - -Dec-04-2014 Atea ASA (OB:ATEA) Axcess A/S $98.0 $53.0 0.5x 7.9xDec-04-2014 Connexity, Inc. Become, Inc. - - - -Dec-04-2014 Zazzle Inc. Boundless Network, Inc. - - - -Dec-04-2014 Business Ink, Co. Cash Cycle Solutions Inc. - - - -Dec-04-2014 Greenway Design Group Inc. (OTCPK:GDGI) Deal-X Technologies, Inc. - - - -Dec-04-2014 Skyy Consulting Inc. FireText Communications Limited - - - -Dec-04-2014 Next Generation Payments Pvt. Ltd. JiGrahak Mobility Solutions (P) Ltd. - - - -Dec-04-2014 Telenor d.o.o. MNNews d.o.o - - - -Dec-04-2014 LLC CityAds Media OOO MADNET - - - -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-04-2014 Dentsu Aegis Network Ltd. Tempero Limited - - - -Dec-04-2014 Wirecard AG (XTRA:WDI) The AMARA Group Limited - $44.8 - -Dec-04-2014 Living Bridge Upper Street Events Ltd - - - -Dec-04-2014 Virtual1 Ltd Upshot Limited, Trinity Portal - - - -Dec-05-2014 Red Thread Media Limited 0968998 BC Ltd. - - - -Dec-05-2014 Open Text Corporation (NasdaqGS:OTEX) Actuate Corporation (NasdaqGS:BIRT) $107.3 $248.5 2.3x -Dec-05-2014 NeedWant Inc. Jarvis - $0.0 - -Dec-05-2014 Credit Services Holdings Portfolio, Prospecting & Performance (Pty) Ltd - $30.8 - -Dec-05-2014 Dragon Army Apps LLC Proving Ground LLC - - - -Dec-05-2014 Microgen plc (LSE:MCGN) Unity Software Limited - $2.0 - -Dec-06-2014 AnyCommerce Chennai Private Limited Life Online - - - -Dec-07-2014 Middle East Digital Group Cobone.com Fz - LLC - - - -Dec-08-2014 AppGyver Oy AppArchitect - - - -Dec-08-2014 Mic AG (XTRA:M3B) BodyTel Europe GmbH - - - -Dec-08-2014 - CentralNic Group Plc, Non-core Premium Domain Names - $2.5 - -Dec-08-2014 CenturyLink, Inc. (NYSE:CTL) DataGardens Inc. - - - -Dec-08-2014 DAS Group of Companies DDC Advocacy - - - -Dec-08-2014 The Descartes Systems Group Inc (TSX:DSG) e-customs Ltd. - $10.3 - -Dec-08-2014 GRÜN Software AG GRÜN spendino - - - -Dec-08-2014 Welch Allyn, Inc. HealthInterlink, LLC - - - -Dec-08-2014 Vanare, LLC NestEgg Wealth, Inc. - - - -Dec-08-2014 Sanderson Group Plc (AIM:SND) Proteus Software Limited $3.1 $3.0 1.0x -Dec-09-2014 Accelero Capital Certain Assets and Subsidiaries of Orascom Telecom Ventures S.A.E. - $19.6 - -Dec-09-2014 Guanghe Landscape Culture Communication Co., Ltd. Chengdu Zhangwo Wuxian Technology Co., Ltd. $0.0 $58.2 - -Dec-09-2014 Cable & Wireless Jamaica Limited (JMSE:LIME) DEKAL Wireless Jamaica Ltd. - - - -D 09 2014 S b G hit C (TSXV SAG) D ftt F t S t I $0 1 $0 9 16 1

Acquirer

Dec-09-2014 Sabre Graphite Corp. (TSXV:SAG) Draftteam Fantasy Sports Inc. $0.1 $0.9 16.1x -Dec-09-2014 Avizia, Inc. Emerge.MD, Inc. - - - -Dec-09-2014 Provider B.V. ISP Services BV - - - -Dec-09-2014 Retail Success, LLC Kiplie, Inc. - - - -Dec-09-2014 BBVA Investment Arm Madiva Soluciones S.L. - - - -Dec-09-2014 Upland Software, Inc. (NasdaqGM:UPLD) Mobile Commons, Inc. - $10.0 - -Dec-09-2014 Dashlane, Inc. PassOmatic Inc. - - - -Dec-09-2014 Adaptavist.com Ltd. Script Runner - - - -Dec-09-2014 Yandex N.V. (NasdaqGS:YNDX) Sovetnik - - - -Dec-09-2014 Addvocate, Inc. Trapit, Inc. - - - -Dec-09-2014 Belden Inc. (NYSE:BDC) Tripwire, Inc. - $710.0 - -Dec-09-2014 Social Leverage, LLC Unknown Stake in Narvar Inc. and ApplePie Capital, Inc. and Sapho, Inc. and ClearServe Holdings, LLC - - - -Dec-09-2014 Trade ME Group Ltd. (NZSE:TME) Viewing Tracker - - - -Dec-10-2014 Kingdom Media, LLC 4 Soils Corporation - - - -Dec-10-2014 Intuit Inc. (NasdaqGS:INTU) Acrede HR and Payroll Solutions (Jersey) Limited - - - -Dec-10-2014 Akka Technologies (ENXTPA:AKA) Auronik GmbH - - - -Dec-10-2014 Artemis S.A. DigitRE - - - -Dec-10-2014 SinoCom Software Group Limited (SEHK:299) Heroic Coronet Limited $0.2 $39.6 166.1x -Dec-10-2014 Expert System S.p.A. (BIT:EXSY) Intelligent Software Components SA, Intelligent Content Management and iLab Divisions - $2.5 - -Dec-10-2014 Knowit Neolab AS Metronet AS - - - -Dec-10-2014 Blink Technologies, Inc. (OTCPK:PUNK) Newbound, Inc. - - - -Dec-10-2014 Cirruspath, Inc. Opencore LLC - - - -Dec-10-2014 PCH Digital Plethora Mobile LLC - - - -Dec-10-2014 Klass Software PPM 2000 Inc. - - - -Dec-10-2014 Daily Internet Plc (AIM:DAIP) Q4Ex Ltd - $3.0 - -Dec-10-2014 - RedHot Media International (China) Limited $1.1 $0.1 0.1x -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-10-2014 Periscope Holdings, Inc. RFP Depot, LLC - - - -Dec-10-2014 oDesk Corporation Setter Papa Enterprises, LLC - - - -Dec-10-2014 Guangbo Group Stock Co., Ltd. (SZSE:002103) Tibet Shannan Lingyun Media Co., Ltd. $0.2 $129.5 - -Dec-11-2014 Oculus VR, Inc. 13th Lab AB - - - -Dec-11-2014 Precision Developments Australia Pty Ltd Adcorp Australia Limited (ASX:AAU) $17.5 -$2.9 - -Dec-11-2014 Emdeon Inc. AdminiSource Communications, Inc. - $35.0 - -Dec-11-2014 ReelTime Media Limited Alkemi International Pty Ltd - $0.5 - -Dec-11-2014 Datto, Inc. Backupify, Inc. $10.0 - - -Dec-11-2014 Microsoft Corporation (NasdaqGS:MSFT) Bit Stadium GmbH - - - -Dec-11-2014 Masmovil Ibercom, S.A. (CATS:ICOM) Ebesis, S.L. and embou Nuevas Tecnologías S.L. - $9.3 - -Dec-11-2014 Adobe Systems Incorporated (NasdaqGS:ADBE) Fotolia LLC - $800.0 - -Dec-11-2014 Lanyon, Inc. GenieConnect Ltd - - - -Dec-11-2014 Wirecard AG (XTRA:WDI) GFG Group Limited - $41.9 - -Dec-11-2014 GCI Network Private Limited Giftery Inc. - - - -Dec-11-2014 Porta Communications Plc (AIM:PTCM) Icas Limited - $4.3 - -Dec-11-2014 TM Software Hf. Kitologic Inc. - - - -Dec-11-2014 Xeeva, Inc. Kontextual, Inc. - - - -Dec-11-2014 Yahoo! Inc. (NasdaqGS:YHOO) MEDIA GROUP ONE Digital GmbH - - - -Dec-11-2014 Oculus VR, Inc. Nimble VR - - - -Dec-11-2014 Dentsu Aegis Network Ltd. OOH Plus Participações Ltda - - - -Dec-11-2014 Meridian Medical Management Origin Healthcare Solutions LLC - - - -Dec-11-2014 BluVision, Inc. Proximity 5 LLC - - - -Dec-11-2014 Quali-Smart Holdings Limited (SEHK:1348) Pulse MediaTech Limited $2.7 $11.0 4.1x -Dec-11-2014 Starcom MediaVest Group, Inc. Relevant24, Inc. - - - -Dec-11-2014 Fuchun Communications Co., Ltd. (SZSE:300299) Shanghai JunMeng Network Technology Co., Ltd. - $158.3 - -

Acquirer

Dec-11-2014 Epicor Software Corporation ShopVisible, LLC - $19.2 - -Dec-11-2014 EggZack, Inc. Trellis Technology Inc. - - - -Dec-11-2014 Gratterpalm Ltd. Underwired Ltd. - - - -Dec-11-2014 Jasper Infotech Private Limited Wizmunk Gifting Services Pvt Ltd. - - - -Dec-11-2014 Aimia Inc. (TSX:AIM) Zed Inc. Ltd. - - - -Dec-11-2014 ActivityHero, Inc. Zoetic - - - -Dec-12-2014 Infinite Cohesion, Ltd. DynaCal, LLC - - - -Dec-12-2014 ZAP S.A. Internet Pense Imóveis - - - -Dec-12-2014 Avalara, Inc. VATLive.com - - - -Dec-14-2014 Majesco, Inc Cover-All Technologies Inc. (AMEX:COVR) $19.8 - - -Dec-15-2014 KWP Advertising Oldco Pty Ltd Clemenger BBDO (Adelaide) Pty Ltd - - - -Dec-15-2014 Telstra Corporation Limited (ASX:TLS) Cloud9 IDE, Inc. - - - -Dec-15-2014 JCDecaux SA (ENXTPA:DEC); Royal Bafokeng Holdings (Pty) Limited Continental Outdoor Media (Pty) Ltd - - - -Dec-15-2014 Servelec Group plc (LSE:SERV) Corelogic Limited $15.0 $36.7 2.5x -Dec-15-2014 AdRev, Inc. DashGo Inc. - - - -Dec-15-2014 BT Group plc (LSE:BT.A) EE Limited $10,921.1 $22,660.5 2.3x 10.2xDec-15-2014 IT Mídia S.A. Empreender Saude e Consultoria Ltda - - - -Dec-15-2014 Solera Holdings Inc. (NYSE:SLH) IBS automotive s.r.o. - - - -Dec-15-2014 Artel Software, Inc. Imagineer Systems Ltd. - - - -Dec-15-2014 Trading Central S.A. Recognia, Inc. - - - -Dec-15-2014 Lomedel, S.L. Sarenet S.A. $22.2 $19.9 0.9x -Dec-15-2014 Linx Sistemas E Consultoria Ltda. Softpharma Desenvolvimento e Edição de Softwares Comerciais LTDA - $24.2 - -Dec-15-2014 Kaliop SAS Soon by Kaliop - - - -Dec-15-2014 Astral Out-of-Home Strategic Outdoor - - - -Dec-15-2014 Masmovil Ibercom, S.A. (CATS:ICOM); Inveready Seed Capital SCR De RegUppTalk S.L. - - - -Dec-16-2014 FiCentive, Inc. Akimbo Financial, Inc. $0.1 $3.8 42.5x -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-16-2014 Janrain, Inc. Arktan, Inc. - - - -Dec-16-2014 Lee Swee Kiat & Sons Sdn Bhd Genie Media Sdn. Bhd. $0.2 $0.0 - -Dec-16-2014 IHS Inc. (NYSE:IHS) Infonetics Research Inc. - - - -Dec-16-2014 Yext, Inc. InnerBalloons Consulting BV - $8.0 - -Dec-16-2014 FinTech Asia Group Ltd. RajaPremi.com - $7.0 - -Dec-16-2014 iProspect.com, Inc. Rockett Interactive, Inc. - - - -Dec-16-2014 Alarm.com Inc. Secure-i, Inc. - - - -Dec-16-2014 A.V.M. Software, Inc. Tinychat Co. - - - -Dec-16-2014 MongoDB, Inc. WiredTiger, Inc. - - - -Dec-17-2014 Purch AnandTech, Inc. - - - -Dec-17-2014 Hwy92, Inc. Appigo, Inc. - - - -Dec-17-2014 CircleCI Inc. Distiller - - - -Dec-17-2014 TuneCore, Inc. DropKloud - - - -Dec-17-2014 Clear Night Group Gabriel deGrood Bendt, LLC - - - -Dec-17-2014 BR Educação Executiva S.A. HSM Educação S.A. And HSM Do Brasil LTDA - - - -Dec-17-2014 Host Europe WVS Limited intergenia Holding GmbH - $260.6 - 15.2xDec-17-2014 Datanyze, Inc. LeadLedger LLC - - - -Dec-17-2014 Project AX LLC MBS Dev, Inc. and Celenia Software NA, Inc. - - - -Dec-17-2014 Pixeon Medical Systems MedicWare Sistemas de Informática LTDA - - - -Dec-17-2014 VMS Deutschland Holdings GmbH MeVis Medical Solutions AG (DB:M3V) $20.3 $18.2 0.9x 3.0xDec-17-2014 foodpanda GmbH NetPincer.hu and Donesi.com and Pauza.hr - - - -Dec-17-2014 GovDelivery, Inc. NuCivic Inc. - - - -Dec-17-2014 Deutscher Sparkassen Verlag GmbH PAYONE GmbH - - - -Dec-17-2014 Teradata Corporation (NYSE:TDC) RainStor, Inc. - - - -Dec-17-2014 BigTeams, LLC Schedule Star, LLC - - - -

Acquirer

Dec-17-2014 ReelTime Media Limited Scorch Marketing and Communications - - - -Dec-17-2014 Runtime Collective Limited Special Network Services Ltd - - - -Dec-17-2014 Twenty-First Century Fox, Inc. (NasdaqGS:FOXA) True[X] Media, Inc. - - - -Dec-18-2014 Foundry 119 LLC 2Signals, LLC - - - -Dec-18-2014 Arthur J Gallagher & Co. (NYSE:AJG) Affinity Marketing Group, LLC - - - -Dec-18-2014 Lu'an Guoying Electronic Sales Co., Ltd. An Hui Da Yun Heng Tong E-Commerce Company, Ltd. - - - -Dec-18-2014 Tack Fiori International Group Limited (SEHK:928) Beijing Feiliu Jiutian Technology Co., Ltd. - $624.9 - -Dec-18-2014 Yellow Media Limited (TSX:Y) Bookenda Inc and Candia Digital Group - - - -Dec-18-2014 NAP IT Ltda codi.mobi - - - -Dec-18-2014 Big Wave Media, Inc. Digibug Ltd. - - - -Dec-18-2014 Silverlake Axis Ltd (SGX:5CP) Finzsoft Solutions Limited (NZSE:FIN) $10.2 $19.3 1.9x 6.7xDec-18-2014 Ideagen PLC (AIM:IDEA) Gael Limited $12.5 $28.2 2.3x 11.3xDec-18-2014 Investview, Inc. (OTCPK:INVU) GATE Global Impact, LLC - $1.6 - -Dec-18-2014 Interactive One, Inc. GG Digital, Inc. - - - -Dec-18-2014 Dealertrack Technologies, Inc. (NasdaqGS:TRAK) Incadea Plc (AIM:INCA) $60.6 $202.5 3.7x 54.7xDec-18-2014 Webissime KELSOCIETE Ltd. - - - -Dec-18-2014 SinoCom Software Group Limited (SEHK:299) Kingworld (Beijing) Technology Co., Ltd. $5.6 $58.0 10.4x -Dec-18-2014 WPP plc (LSE:WPP) Maka Marketing Digital, S.A. De C.V. and Clarus Digital S.A. de C.V. - - - -Dec-18-2014 AppNexus Inc. Mediaglu, Inc. - - - -Dec-18-2014 Commerce Technologies, Inc. Mercent Corporation - - - -Dec-18-2014 LINE Corporation Microsoft Corporation, MixRadio - - - -Dec-18-2014 Avigilon Corporation (TSX:AVO) ObjectVideo, Inc., Entire Patent Portfolio and Patent Licensing Program - $80.3 - -Dec-18-2014 Kima Ventures Orange Communications SA - $2,856.3 - -Dec-18-2014 PriceMatch SAS PowerYourRoom Ltd. - - - -Dec-18-2014 Châteauform' SA Schloss Krickenbeck Gmbh, Conference and Seminar Hosting Business - - - -Dec-18-2014 - TempWorks Software, Inc. - - - -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-18-2014 YouTube, LLC Vidmaker Inc. - - - -Dec-19-2014 Go Fi8ure Active Admin Limited - - - -Dec-19-2014 Blinkx plc (AIM:BLNX) AdKarma, LLC $13.3 $20.0 1.5x -Dec-19-2014 Unno Industries Ltd., (BSE:519273) Atishya Technologies Private Limited - - - -Dec-19-2014 Roche Holding AG (SWX:ROG) BINA Technologies Inc. - - - -Dec-19-2014 Koggbron AB Business Control Systems Sverige AB (publ) (OM:BCS) $1.4 - - -Dec-19-2014 Zomato Media Pvt. Ltd. Cibando Ltd. - - - -Dec-19-2014 Web Financial Group SA Financial Red Network SL - - - -Dec-19-2014 News Corporation (NasdaqGS:NWSA) FinDirect Services Private Limited - - - -Dec-19-2014 Millward Brown UK Limited Habitusinvestigación S.A. - - - -Dec-19-2014 Funke Mediengruppe GmbH & Co. KGaA joblocal GmbH - - - -Dec-19-2014 GI Partners, LLC Logibec Inc. - - - -Dec-19-2014 DiCentral Corporation Logitek Technology Ltd., EDI business - $1.9 - -Dec-19-2014 Phunware Inc. Odyssey Mobile Marketing Ltd. - - - -Dec-19-2014 Accumuli plc (AIM:ACM) RandomStorm Ltd. $5.5 $13.9 2.5x 8.9xDec-19-2014 Wolters Kluwer NV (ENXTAM:WKL) SBS Software GmbH - - - -Dec-19-2014 theScore, Inc. (TSXV:SCR) Swoopt Fantasy Sports Inc. - $1.2 - -Dec-19-2014 Isobar Canada Inc. The SPOKE Agency Ltd. - - - -Dec-22-2014 AMN Healthcare Services Inc. (NYSE:AHS) Avantas, LLC - $25.0 - -Dec-22-2014 IS Solutions plc (AIM:ISL) Celebrus Technologies Limited $3.0 $14.0 4.6x -Dec-22-2014 Inmar, Inc. Clarus Agency, LLC - - - -Dec-22-2014 Points International Ltd. (TSX:PTS) Crew Marketing International, Inc. - - - -Dec-22-2014 Oracle Corporation (NYSE:ORCL) DataLogix Holdings, Inc. - - - -Dec-22-2014 One Month, Inc. GoRails - - - -Dec-22-2014 Beta Systems Software AG (DB:BSS) HORIZONT GmbH - - - -

Acquirer

Dec-22-2014 Cinven Northgate Public Services Limited $282.8 - - -Dec-22-2014 Information Services Corporation (TSX:ISV) OneMove Technologies Inc. - $8.6 - -Dec-22-2014 LCV Capital Management, LLC Peerless Systems Corp. (NasdaqCM:PRLS) $2.3 $12.9 5.6x -Dec-22-2014 SeaChange International, Inc. (NasdaqGS:SEAC) Timeline Labs, LLC - $24.5 - -Dec-22-2014 LDiscovery, LLC Turnstone Solutions LLC - - - -Dec-22-2014 Sierra Wireless Inc. (TSX:SW) Wireless Maingate AB - $90.0 - -Dec-23-2014 ObjectWay S.p.A. 3i Infotech (western Europe) Ltd. - - - -Dec-23-2014 Scrypt, Inc. Axacore, Inc. - - - -Dec-23-2014 ITE Enterprises Limited Breakbulk Holdco U.K. Ltd. - $42.0 - -Dec-23-2014 WideOrbit Inc. Castfire, Inc. - - - -Dec-23-2014 SouthComm Communications, Inc. Cygnus Business Media, Inc. - - - -Dec-23-2014 Fynske Medier P/S GulogGratis.dk A/S - - - -Dec-23-2014 Havas (ENXTPA:HAV) Havas Formula - - - -Dec-23-2014 Trimble Navigation Limited (NasdaqGS:TRMB) IRON Solutions, Inc. - - - -Dec-23-2014 Communisis plc (LSE:CMS) Life Marketing Consultancy Limited $10.9 $35.1 3.2x 22.6xDec-23-2014 PopHealthCare L.L.C. Ubiquity LLC - - - -Dec-24-2014 PMW Communications Ltd. 051 Digital - - - -Dec-24-2014 MediaMiser Ltd. Bulldog Reporter, LLC - - - -Dec-24-2014 Mobile Embrace Limited (ASX:MBE) Eggmobi Pty Limited - $1.1 - -Dec-24-2014 - Law Central Co Pty Ltd. - - - -Dec-24-2014 Qi Xie Limited Olympia Media Holdings Limited and Gloria Fair Limited - $0.0 - -Dec-24-2014 Port Of Call Online Inc. (OTCBB:POCO) Port Of Call Online Inc., Prior to Reverse Merger with Purebase, Inc. - - - -Dec-24-2014 Gree, Inc. (TSE:3632) SEKAIE, Inc. - $10.8 - -Dec-25-2014 My Holiday Marketing Ltd BB Property Limited - - - -Dec-26-2014 - Adience - $20.0 - -Dec-26-2014 Social Voucher.com, Inc. ARrival Labs - - - -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDADec-26-2014 Aucfan Co., Ltd. (TSE:3674) MiningBrownie Inc. - $0.3 - -Dec-29-2014 U-BTech Solutions LTD. Agile IT, Inc. - - - -Dec-29-2014 Xiamen 35.Com Technology Co., Ltd. (SZSE:300051) Shenzhen Daoxi Technology - $134.1 - -Dec-29-2014 Tomorrow's Retail, LLC WebmasterJournal.com - - - -Dec-30-2014 - backpage.com LLC - - - -Dec-30-2014 Mobile Telesystems OJSC (NYSE:MBT) Penza-GSM CJSC and SMARTS-Ivanovo CJSC and SMARTS-Ufa CJSC - $56.0 - -Dec-31-2014 Ningbo Ligong Online Monitoring Technology Co., Ltd. (SZSE:002322) Beijing SysTek Orient Environmental Hi-Tech Co.,Ltd. - $72.6 - -Dec-31-2014 YONYOU Mobile Telecommunications Technology Services Co., Ltd. Chanjet Information Technology Company Limited, Wang Pu Business - $1.1 - -Dec-31-2014 ISI Technologies Inc. Deliver Media LLC - - - -Dec-31-2014 DLD Group, Inc. DLD Group, Inc., Prior to Reverse Merger with DLD International Group Limited (OTCBB:DLDG) - - - -Dec-31-2014 - TK Investment Company Limited - - - -Dec-31-2014 Broadridge Securities Processing Solutions, Inc. TwoFour Systems, LLC - - - -

Acquirer



SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDSEG Software Index $1,995.5 $2,075.5 $574.5 67.2% 18.0% 7.7% 3.1x 15.2x 3.0x 11.8x 0.9% Billing & Service Management $860.6 $935.3 $424.3 55.4% 26.1% 12.9% 2.2x 9.2x 1.9x 8.0x 0.5% Business Intelligence $1,929.6 $2,053.9 $574.5 77.1% 12.6% 12.5% 3.4x 14.8x 3.2x 13.2x -6.4% Development Platforms $832.1 $672.5 $244.3 77.8% 18.8% 1.6% 2.1x 10.9x 2.8x 8.0x -3.8% Engineering & PLM $4,240.7 $4,195.6 $1,061.9 84.2% 19.4% 6.2% 3.4x 15.7x 3.3x 12.5x -2.8% Enterprise Resource Planning $7,815.2 $8,433.2 $2,119.9 61.5% 28.4% 2.9% 3.9x 14.0x 3.8x 9.7x 15.2% Financial & Accounting $2,318.3 $2,762.2 $789.0 56.0% 25.2% 6.1% 3.2x 14.0x 3.6x 12.5x -4.0% Gaming $2,463.2 $2,249.3 $2,150.8 63.6% 19.2% 3.1% 1.3x 8.9x 1.2x 8.3x 23.5% Healthcare $1,184.5 $1,579.8 $577.5 53.2% 16.6% 3.2% 2.5x 15.3x 2.3x 10.7x 4.4% IT Conglomerates $158,781.1 $185,621.8 $91,505.0 61.5% 35.1% 2.9% 3.5x 9.6x 3.0x 9.2x 20.3% Mobile Solutions/Content $739.8 $584.6 $308.4 55.5% 0.7% 22.0% 3.1x 18.3x 1.9x 10.5x -18.1% Networking & Network Performance Management $1,861.9 $1,680.2 $254.6 71.8% 7.0% 15.4% 2.3x 17.9x 2.3x 9.8x 0.2% Security $1,314.1 $1,212.9 $182.4 75.5% 7.6% 18.5% 5.4x 24.8x 4.9x 21.8x 12.3% Storage, Data Mgmt & Integration $6,125.4 $5,397.4 $1,615.8 79.8% 17.5% 3.1% 2.6x 8.9x 2.9x 7.6x -1.8% Systems Management $11,628.0 $11,531.1 $2,409.9 85.3% 25.0% 16.2% 4.3x 18.1x 3.9x 11.7x 13.0% Vertical - Finance $4,987.6 $5,236.6 $927.2 44.5% 29.9% 5.6% 4.3x 13.8x 4.1x 12.5x 9.4% Vertical - Other $1,958.6 $2,075.8 $456.6 47.4% 11.8% 16.5% 3.8x 27.3x 3.3x 17.5x 8.0%

Category Name

TTM Revenue Growth 7.7%TTM EBITDA Growth -11.9%TTM Earnings Growth -22.0%Gross Profit Margin 67.2%EBITDA Margin 18.0%Net Income Margin -23.7%SG&A Expenses as a % of Total Revenue 59.8%R&D Expenses as a % of Total Revenue 20.0%

Current Ratio 2.1Quick Ratio 2.0Cash as Percent of Market Cap 9.9%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 29Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 5.5%Cash from Operations Growth (YoY) 22.3%Cash from Investing Growth (YoY) -39.6%Cash from Financing Growth (YoY) 31.9%Levered FCF Growth (YoY) 27.5%

Copyright © 2015 by Software Equity Group, L.L.C., All Rights Reserved January 2015 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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20%SEG SW Index Software Stock Market Return: January - December 2014

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAmdocs Limited DOX $7,272.2 $6,057.7 $3,563.6 35.3% 18.5% 6.5% 1.7x 9.2x 1.6x 8.1x 16.0%CSG Systems International CSGS $860.6 $935.3 $752.1 48.5% 15.8% 0.2% 1.2x 7.8x 1.2x 6.0x -12.1%Evolving Systems EVOL $109.3 $98.3 $28.7 72.5% 26.5% 12.9% 3.4x 12.9x 3.1x 9.7x 0.5%MIND C.T.I. MNDO $74.4 $56.8 $23.6 55.4% 26.1% 28.6% 2.4x 9.2x n/a n/a 115.9%NeuStar NSR $1,525.6 $2,075.5 $948.9 74.3% 36.2% 8.0% 2.2x 6.0x 2.1x 4.6x -43.9%Redknee Solutions TSX:RKN $351.7 $291.7 $257.7 51.1% 2.7% 81.4% 1.1x 42.6x 1.1x 7.9x -45.9%Synchronoss Technologies SNCR $1,772.5 $1,708.5 $424.3 59.4% 26.7% 30.5% 4.0x 15.1x 3.2x 9.9x 40.9%

Median: $860.6 $935.3 $424.3 55.4% 26.1% 12.9% 2.2x 9.2x 1.9x 8.0x 0.5%

TTM Revenue Growth 12.9%TTM EBITDA Growth 5.0%TTM Earnings Growth 1.8%Gross Profit Margin 55.4%EBITDA Margin 26.1%Net Income Margin 11.8%SG&A Expenses as a % of Total Revenue 21.2%R&D Expenses as a % of Total Revenue 13.8%


Levered FCF Margin 13.4%Cash from Operations Growth (YoY) -5.3%Cash from Investing Growth (YoY) -19.2%Cash from Financing Growth (YoY) -0.4%Levered FCF Growth (YoY) -0.9%





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0%

5%

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15%

20%Billing and Service Management Software Stock Market Return: January - December 2014

Billing & Service Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDActuate Corporation BIRT $308.2 $250.2 $107.3 84.4% -2.3% -22.1% 2.3x n/a 2.8x n/a -13.4%Fair Isaac FICO $2,321.3 $2,762.2 $789.0 68.4% 25.2% 6.1% 3.5x 13.9x 3.4x 13.2x 17.6%Informatica INFA $4,144.2 $3,489.6 $1,020.2 82.6% 18.7% 12.5% 3.4x 18.3x 3.1x 12.1x -6.4%MicroStrategy MSTR $1,835.3 $1,480.7 $596.8 77.1% 3.8% 5.5% 2.5x 66.0x 2.4x 17.0x 31.5%Pegasystems PEGA $1,585.8 $1,357.2 $574.5 68.2% 12.6% 15.0% 2.4x 18.8x 2.1x 13.0x -14.8%Progress Software PRGS $1,356.0 $1,094.7 $325.6 91.2% 30.9% -1.2% 3.4x 10.9x 3.2x 8.8x 5.8%PROS Holdings PRO $797.4 $758.9 $170.9 69.2% -2.7% 23.2% 4.4x n/a 3.5x 21.2x -30.1%Qlik Technologies QLIK $2,789.8 $2,547.8 $535.8 86.4% 0.8% 20.1% 4.8x 607.1x 4.2x 49.6x 22.9%Software AG XTRA:SOW $1,929.6 $2,053.9 $1,113.2 71.1% 24.2% -9.8% 1.8x 7.6x 2.0x 7.2x -26.8%Splunk SPLK $7,148.5 $6,352.1 $403.4 85.6% -44.9% 50.6% 15.7x n/a 11.8x 226.5x -17.5%Teradata NYSE:TDC $6,683.0 $6,090.0 $2,740.0 54.2% 23.0% 2.9% 2.2x 9.7x 2.2x 8.0x -2.3%Varonis Systems VRNS $806.5 $691.2 $93.3 90.3% -16.0% 38.3% 7.4x n/a 5.8x n/a -25.4%Verisk VRSK $10,563.1 $11,403.6 $1,698.6 59.2% 45.4% 15.7% 6.7x 14.8x 6.1x 13.3x -1.6%

Median: $1,929.6 $2,053.9 $574.5 77.1% 12.6% 12.5% 3.4x 14.8x 3.2x 13.2x -6.4%

TTM Revenue Growth 12.5%TTM EBITDA Growth -19.6%TTM Earnings Growth -33.2%Gross Profit Margin 77.1%EBITDA Margin 12.6%Net Income Margin 5.0%SG&A Expenses as a % of Total Revenue 45.9%R&D Expenses as a % of Total Revenue 18.3%


Levered FCF Margin 16.3%Cash from Operations Growth (YoY) 1.6%Cash from Investing Growth (YoY) 12.0%Cash from Financing Growth (YoY) -37.5%Levered FCF Growth (YoY) 32.6%





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20%Business Intelligence Software Stock Market Return: January - December 2014

Business Intelligence S&P NASDAQ SEG SW Index

SEG Software Index Category: Development Platforms


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDActuate BIRT $308.2 $250.2 $107.3 84.4% -2.3% -22.1% 2.3x n/a 2.8x n/a -13.4%BSQUARE BSQR $53.4 $28.1 $96.2 17.1% 2.4% 4.4% 0.3x 12.1x n/a n/a 25.7%Magic Software Enterprises MGIC $262.8 $186.2 $163.0 39.5% 19.3% 16.8% 1.1x 5.9x 1.1x 5.9x -14.2%Progress Software PRGS $1,356.0 $1,094.7 $325.6 91.2% 30.9% -1.2% 3.4x 10.9x 3.2x 8.8x 5.8%Red Hat RHT $12,986.0 $12,581.4 $1,725.9 84.7% 18.4% 16.5% 7.3x 39.6x 6.4x 24.0x 23.8%Software AG XTRA:SOW $1,929.6 $2,053.9 $1,113.2 71.1% 24.2% -9.8% 1.8x 7.6x 2.0x 7.2x -26.8%

Median: $832.1 $672.5 $244.3 77.8% 18.8% 1.6% 2.1x 10.9x 2.8x 8.0x -3.8%

TTM Revenue Growth 1.6%TTM EBITDA Growth 6.4%TTM Earnings Growth -12.0%Gross Profit Margin 77.8%EBITDA Margin 18.8%Net Income Margin 10.4%SG&A Expenses as a % of Total Revenue 42.3%R&D Expenses as a % of Total Revenue 15.5%







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20%Development Platforms Software Stock Market Return: January - December 2014

Development Platforms S&P NASDAQ SEG SW Index

SEG Software Index Category: Engineering & PLM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDANSYS ANSS $7,536.5 $6,718.9 $917.7 87.5% 46.6% 8.5% 7.3x 15.7x 6.9x 14.0x -4.7%Aspen Technology AZPN $3,168.3 $2,902.8 $411.0 87.1% 37.2% 25.5% 7.1x 19.0x 6.5x 15.9x -15.7%Autodesk ADSK $13,664.9 $12,510.5 $2,434.2 86.7% 12.8% 6.1% 5.1x 40.2x 4.9x 24.1x 21.9%Cadence Design Systems CDNS $5,552.9 $5,295.2 $1,534.6 85.4% 19.9% 7.4% 3.5x 17.4x 3.2x 9.7x 35.4%Cimatron CIMT $95.3 $75.2 $46.6 86.9% 15.5% 6.3% 1.6x 10.4x 1.5x n/a -3.8%Dassault Systèmes DSY $15,390.4 $14,454.1 $2,759.5 86.1% 29.1% 5.9% 5.2x 18.0x 4.7x 13.9x 0.3%GSE Systems GVP $28.4 $11.2 $37.1 29.5% -13.7% -22.7% 0.3x n/a n/a n/a -1.9%Mentor Graphics MENT $2,523.0 $2,593.5 $1,206.1 83.1% 18.9% 11.0% 2.2x 11.4x 2.0x 7.4x -6.7%Parametric Technology PTC $4,251.2 $4,569.4 $1,357.0 72.5% 21.9% 4.9% 3.4x 15.4x 3.3x 11.0x 5.6%PDF Solutions PDFS $460.3 $344.2 $101.2 60.7% 31.8% 3.0% 3.4x 10.7x 3.3x 8.2x -40.7%Stratasys SSYS $4,230.1 $3,821.8 $688.1 50.9% 11.1% 71.8% 5.6x 50.1x 4.0x 15.8x -38.0%Synopsys SNPS $6,655.4 $5,744.6 $2,057.5 82.7% 18.0% 4.9% 2.8x 15.5x 2.6x 8.7x 7.5%

Median: $4,240.7 $4,195.6 $1,061.9 84.2% 19.4% 6.2% 3.4x 15.7x 3.3x 12.5x -2.8%



Levered FCF Margin 19.2%Cash from Operations Growth (YoY) 10.9%Cash from Investing Growth (YoY) -105.8%Cash from Financing Growth (YoY) -48.5%Levered FCF Growth (YoY) 22.9%





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20%Engineering & PLM Software Stock Market Return: January - December 2014

Engineering & PLM S&P NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAmerican Software AMSW.A $257.3 $201.1 $99.8 54.8% 12.3% 1.3% 2.0x 16.4x 1.8x 9.0x -4.3%Oracle ORCL $197,479.8 $185,621.8 $38,822.0 61.5% 43.6% 3.4% 4.8x 11.0x 4.6x 9.7x 20.3%QAD QADA $351.1 $294.9 $289.1 55.6% 6.5% 11.8% 1.0x 15.8x 1.0x 13.3x 35.8%Sage Group LSE:SGE $7,815.2 $8,433.2 $2,119.9 94.3% 28.4% -5.0% 4.0x 14.0x 3.8x 12.9x 15.2%SAP DB:SAP $84,350.5 $85,603.3 $21,718.9 72.5% 35.1% 2.9% 3.9x 11.2x 3.8x 9.7x -14.7%

Median: $7,815.2 $8,433.2 $2,119.9 61.5% 28.4% 2.9% 3.9x 14.0x 3.8x 9.7x 15.2%



Levered FCF Margin 17.9%Cash from Operations Growth (YoY) 0.5%Cash from Investing Growth (YoY) -45.1%Cash from Financing Growth (YoY) 36.6%Levered FCF Growth (YoY) -1.1%





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20%Enterprise Resource Planning Software Stock Market Return: January - December 2014

Enterprise Resource Planning S&P NASDAQ SEG SW Index

SEG Software Index Category: Financial & Accounting


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDACI Worldwide ACIW $2,318.3 $3,211.4 $1,009.1 56.0% 21.0% 25.2% 3.2x 15.2x 2.9x 11.6x -4.0%Bottomline Technologies EPAY $1,008.9 $963.7 $314.7 57.0% 11.5% 20.9% 3.1x 26.7x 2.9x 13.6x -27.8%DST Systems DST $3,583.3 $4,108.0 $2,710.1 16.9% 15.8% 2.3% 1.5x 9.6x 2.0x 8.8x 5.8%Evertec EVTC $1,725.5 $2,375.4 $360.3 57.1% 42.1% 1.5% 6.6x 15.7x 6.3x 12.5x -10.7%Fair Isaac FICO $2,321.3 $2,762.2 $789.0 68.4% 25.2% 6.1% 3.5x 13.9x 3.4x 13.2x 17.6%Fiserv FISV $17,314.3 $20,753.3 $5,013.0 43.6% 29.7% 6.8% 4.1x 13.9x 4.0x 12.0x 21.9%Intuit INTU $26,322.5 $25,232.5 $4,556.0 85.3% 31.8% 7.7% 5.5x 17.4x 5.7x 18.5x 44.1%Model N MODN $266.7 $165.7 $81.8 53.8% -22.4% -19.8% 2.0x n/a 1.8x n/a -6.4%NetSol Technologies NETSOL $32.8 $36.3 $22.9 1.5% -20.2% -25.8% 1.6x n/a n/a n/a -13.3%Sage Group LSE:SGE $7,815.2 $8,433.2 $2,119.9 94.3% 28.4% -5.0% 4.0x 14.0x 3.8x 12.9x 15.2%Qiwi QIWI $1,094.3 $715.6 $350.4 49.7% 30.8% 26.1% 2.0x 6.6x 4.7x 7.9x -62.4%

Median: $2,318.3 $2,762.2 $789.0 56.0% 25.2% 6.1% 3.2x 14.0x 3.6x 12.5x -4.0%








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20%Financial & Accounting Software Stock Market Return: January - December 2014

Financial & Accounting S&P NASDAQ SEG SW Index

SEG Software Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDActivision Blizzard ATVI $14,488.5 $14,982.5 $4,351.0 63.8% 25.4% -10.0% 3.4x 13.6x 3.2x 8.6x 12.6%Electronic Arts EA $14,618.7 $12,821.7 $4,135.0 63.3% 15.9% 9.5% 3.1x 19.5x 3.1x 12.4x 105.9%GameLoft SA GFT $346.4 $277.3 $322.0 82.6% 11.3% 5.7% 0.9x 7.6x 0.9x 8.1x -62.5%Konami TSE: 9766 $2,568.5 $2,466.6 $1,990.8 29.9% 12.2% 0.5% 1.2x 10.2x 1.2x 8.8x -19.0%Take-Two Interactive TTWO $2,358.0 $2,019.1 $2,310.8 42.3% 22.4% 129.5% 0.9x 3.9x 1.2x 5.6x 59.9%Ubisoft Entertainment UBI $1,978.9 $2,032.0 $1,511.8 74.9% 28.0% -5.7% 1.3x 4.8x 1.1x 2.6x 34.3%

Median: $2,463.2 $2,249.3 $2,150.8 63.6% 19.2% 3.1% 1.3x 8.9x 1.2x 8.3x 23.5%








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20%Gaming Software Stock Market Return: January - December 2014

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAccretive Health AH $14,715.3 $16,430.5 $40,299.3 26.5% 6.6% -1.9% 0.4x 6.1x 0.4x 6.2x 4.9%Allscripts Healthcare Solutions MDRX $2,301.9 $2,851.9 $1,387.9 45.5% 3.3% 1.1% 2.1x 62.0x 2.0x 12.6x -17.0%Cerner CERN $22,079.6 $20,894.6 $3,181.1 84.8% 26.5% 15.2% 6.6x 24.8x 5.1x 15.8x 17.4%Computer Programs and Sys CPSI $680.9 $652.3 $209.7 47.8% 28.5% 6.2% 3.1x 10.9x 3.0x 10.7x 3.9%MedAssets MDAS $1,189.7 $2,084.5 $692.5 76.6% 29.9% 2.8% 3.0x 10.1x 2.8x 8.3x 0.9%Merge Healthcare MRGE $341.5 $535.9 $212.3 60.7% 18.0% -12.5% 2.5x 14.0x 2.4x 10.7x 40.7%Omnicell OMCL $1,179.2 $1,075.0 $425.1 53.3% 15.2% 16.5% 2.5x 16.6x 2.3x 11.6x 32.1%Quality Systems QSII $939.6 $816.1 $462.5 53.0% 9.0% 3.6% 1.8x 19.7x 1.6x 10.4x -21.4%

Median: $1,184.5 $1,579.8 $577.5 53.2% 16.6% 3.2% 2.5x 15.3x 2.3x 10.7x 4.4%



Levered FCF Margin 10.8%Cash from Operations Growth (YoY) -1.7%Cash from Investing Growth (YoY) -40.3%Cash from Financing Growth (YoY) -21.9%Levered FCF Growth (YoY) 29.7%





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20%Healthcare Software Stock Market Return: January - December 2014

Healthcare S&P NASDAQ SEG SW Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDHewlett Packard HPQ $73,601.7 $78,386.7 $111,454.0 23.9% 11.8% -0.8% 0.7x 6.0x 0.7x 5.7x 47.7%IBM IBM $158,781.1 $195,055.1 $97,449.0 49.0% 25.2% -2.8% 2.0x 7.9x 2.2x 7.8x -11.4%Microsoft MSFT $382,880.5 $318,257.5 $91,505.0 67.1% 36.3% 13.9% 3.5x 9.6x n/a 9.2x 28.4%Oracle ORCL $197,479.8 $185,621.8 $38,822.0 61.5% 43.6% 3.4% 4.8x 11.0x 4.6x 9.7x 20.3%SAP AG DB:SAP $84,350.5 $85,603.3 $21,718.9 72.5% 35.1% 2.9% 3.9x 11.2x 3.8x 9.7x -14.7%

Median: $158,781.1 $185,621.8 $91,505.0 61.5% 35.1% 2.9% 3.5x 9.6x 3.0x 9.2x 20.3%








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25%IT Conglomerates Software Stock Market Return: January - December 2014

IT Conglomerates S&P NASDAQ SEG SW Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBango PLC BGO $94.4 $91.4 $12.5 21.8% -71.1% -19.5% 7.3x n/a n/a n/a -20.0%iDream Sky Technologies DSKY $722.9 $559.9 $64.1 41.8% 20.8% n/a 8.7x 41.9x 1.9x 7.9x 7.2%King Digital Entertainment KING $4,911.1 $3,934.7 $2,316.3 68.4% 32.9% 73.1% 1.7x 5.2x 1.9x 5.0x -16.3%Glu Mobile GLUU $417.1 $362.8 $185.1 67.0% 2.5% 90.7% 2.0x 79.2x 1.5x 12.6x 0.0%Gree TSE:3632 $1,431.1 $958.3 $1,054.6 76.0% 33.6% -22.7% 0.9x 2.7x 1.2x 4.3x -38.2%Millennial Media MM $222.6 $146.1 $306.4 39.4% -7.1% 39.0% 0.5x n/a 0.5x n/a -78.3%MobileIron MOBL $756.8 $609.3 $122.7 81.8% -43.4% n/a 5.0x n/a 4.0x n/a -9.6%Momo MOMO $2,237.7 $2,075.5 $28.5 57.5% -84.4% n/a 72.8x n/a n/a n/a -29.5%Myriad Group AG MYRN $437.0 $439.2 $43.5 48.3% -6.8% -17.3% 10.1x n/a n/a n/a 184.8%NQ Mobile NQ $347.1 $299.0 $310.5 36.2% -19.1% 95.4% 1.0x n/a 0.7x 6.4x -75.7%Opera OPERA $1,798.8 $1,728.3 $415.9 40.8% 22.7% 53.3% 4.2x 18.3x 2.9x 11.9x -6.7%Qihoo 360 Technology QIHU $7,210.6 $7,224.9 $1,181.1 80.3% 24.7% 113.8% 6.1x 24.8x 3.8x 11.0x -30.0%Pandora Media P $3,710.2 $3,393.8 $870.1 44.5% -1.0% n/a 3.9x n/a n/a 32.0x -33.4%Synchronoss Technologies SNCR $1,772.5 $1,708.5 $424.3 59.4% 26.7% 30.5% 4.0x 15.1x 3.2x 9.9x 40.9%Tangoe TNGO $506.2 $458.6 $207.6 54.1% 7.0% 13.5% 2.2x 31.7x 2.0x 12.0x -27.9%TeleCommunication Systems TSYS $186.1 $265.4 $345.3 41.0% 7.8% -17.1% 0.8x 9.8x 0.7x 7.2x 33.9%TeleNav TNAV $266.3 $134.7 $141.0 56.9% -24.4% -27.2% 1.0x n/a 0.8x n/a 3.4%Zynga ZNGA $2,401.6 $1,575.8 $674.2 68.0% -11.7% -33.1% 2.3x n/a 2.0x 20.2x -32.7%

Median: $739.8 $584.6 $308.4 55.5% 0.7% 22.0% 3.1x 18.3x 1.9x 10.5x -18.1%








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-5%

0%

5%

10%

15%

20%Mobile Solutions/Content Software Stock Market Return: January - December 2014

Mobile Solutions/Content S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDA10 Networks ATEN $264.7 $157.6 $176.5 75.5% -7.5% 31.8% 0.9x n/a 0.9x n/a -73.1%Allot Communications ALLT $305.2 $179.8 $113.8 71.8% 5.4% 19.0% 1.6x 29.2x 1.4x 9.8x -39.4%Aruba Networks ARUN $1,995.5 $1,680.2 $775.8 69.4% 7.0% 25.8% 2.2x 30.9x 1.9x 7.8x 5.0%Barracuda Networks CUDA $1,861.9 $1,710.1 $254.6 78.1% 3.2% 16.8% 6.7x 212.2x 5.8x 21.8x -3.6%Brocade BRCD $5,102.3 $4,442.8 $2,211.3 66.3% 25.8% -0.5% 2.0x 7.8x 2.0x 7.0x 112.5%Cisco Systems CSCO $142,234.5 $111,106.5 $47,302.0 60.3% 27.5% -3.1% 2.3x 8.5x 2.3x 7.9x 29.5%Cyan CYNI $117.9 $92.8 $90.9 40.6% -59.6% -27.5% 1.0x n/a 0.8x n/a -52.1%F5 Networks FFIV $9,626.1 $8,980.7 $1,732.0 82.1% 30.7% 16.9% 5.2x 16.9x 4.6x 11.9x 46.8%Gigamon GIMO $577.1 $443.1 $149.0 77.0% -11.4% 15.4% 3.0x n/a 2.7x 29.7x -36.2%Juniper Networks JNPR $9,654.9 $9,088.4 $4,799.1 62.7% 18.0% 5.8% 1.9x 10.5x 2.0x 9.5x 0.2%Mavenir Systems MVNR $391.3 $351.8 $123.2 55.3% -4.0% 35.5% 2.9x n/a 2.4x 104.3x -24.8%Radware RDWR $991.5 $853.8 $213.9 81.7% 14.8% 12.7% 4.0x 26.9x 3.5x 17.3x 23.6%Riverbed Technology RVBD $3,209.9 $3,325.9 $1,089.1 74.2% 17.0% 9.4% 3.1x 17.9x 3.0x 9.3x 13.3%

Median: $1,861.9 $1,680.2 $254.6 71.8% 7.0% 15.4% 2.3x 17.9x 2.3x 9.8x 0.2%








January 2015 Monthly Flash Report

-15%

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-5%

0%

5%

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15%

20%Networking/Network Performance Mgmt Software Stock Market Return: January - December

2014

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAVG Technologies AVG $1,018.2 $974.2 $375.8 85.3% 35.3% -6.1% 2.6x 7.3x 2.4x 6.7x 16.5%Barracuda Networks CUDA $1,861.9 $1,710.1 $254.6 78.1% 3.2% 16.8% 6.7x 212.2x 5.8x 21.8x -3.6%Cyberark Software CYBR $1,208.1 $1,039.1 $86.7 85.3% 16.5% n/a 12.0x 72.6x 9.8x 251.1x 32.5%Check Point Software Tech CHKP $14,990.4 $13,750.5 $1,462.3 88.3% 54.5% 6.3% 9.4x 17.3x 8.8x 15.1x 22.0%A10 Networks ATEN $264.7 $157.6 $176.5 75.5% -7.5% 31.8% 0.9x n/a 0.9x n/a -73.1%Cyren CYRN $53.9 $46.2 $32.3 75.0% -16.8% 5.0% 1.4x n/a 1.2x n/a -42.3%Fortinet FTNT $5,054.5 $4,393.9 $723.7 70.1% 11.6% 22.9% 6.1x 52.3x 5.2x 26.8x 61.2%Guidance Software GUID $213.7 $198.2 $108.4 67.2% -6.7% -8.8% 1.8x n/a 1.7x 35.4x -27.6%Imperva IMPV $1,314.1 $1,212.9 $155.4 77.6% -32.5% 22.5% 7.8x n/a 6.4x n/a 1.7%Palo Alto Networks PANW $9,872.5 $9,572.9 $662.3 72.9% -8.8% 51.1% 14.5x n/a 10.5x 60.2x 120.2%Proofpoint PFPT $1,839.2 $1,766.9 $180.3 67.3% -15.7% 43.3% 9.8x n/a 7.8x n/a 48.9%Sourcefire FIRE $12.7 $14.0 $18.3 31.8% 7.6% 20.2% 0.8x n/a n/a n/a -43.0%Symantec SYMC $17,705.7 $16,007.7 $6,682.0 83.5% 29.2% -2.9% 2.4x 8.2x 2.4x n/a 12.3%Trend Micro TSE:4704 $3,745.3 $2,702.0 $1,024.3 82.9% 35.0% 7.8% 2.6x 7.5x 2.8x 8.1x -18.4%VASCO VDSI $1,107.0 $981.1 $182.4 65.9% 16.6% 21.1% 5.4x 32.4x 4.6x 19.2x 271.7%

Median: $1,314.1 $1,212.9 $182.4 75.5% 7.6% 18.5% 5.4x 24.8x 4.9x 21.8x 12.3%



Levered FCF Margin 14.3%Cash from Operations Growth (YoY) -4.5%Cash from Investing Growth (YoY) -0.1%Cash from Financing Growth (YoY) 24.0%Levered FCF Growth (YoY) 2.3%





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0%

5%

10%

15%

20%Security Software Stock Market Return: January - December 2014

Security S&P NASDAQ SEG SW Index

SEG Software Index Category: Storage, Data Management & Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBrocade BRCD $5,102.3 $4,442.8 $2,211.3 66.3% 25.8% -0.5% 2.0x 7.8x 2.0x 7.0x 35.6%CA CA $13,547.4 $12,254.4 $4,463.0 85.4% 31.3% -1.1% 2.7x 8.8x 2.9x 7.3x -5.0%Cisco Systems CSCO $142,234.5 $111,106.5 $47,302.0 60.3% 27.5% -3.1% 2.3x 8.5x 2.3x 7.9x 29.5%CommVault Systems CVLT $2,365.5 $1,951.0 $613.9 87.0% 14.4% 13.1% 3.2x 22.1x 3.1x 15.7x -30.2%EMC EMC $60,518.2 $59,487.2 $24,073.0 62.2% 23.0% 6.7% 2.5x 10.7x 2.3x 7.3x 21.0%FalconStor Software FALC $60.6 $41.9 $49.1 77.1% -11.3% -26.1% 0.9x n/a n/a n/a 1.5%Informatica INFA $4,144.2 $3,489.6 $1,020.2 82.6% 18.7% 12.5% 3.4x 18.3x 3.1x 12.1x -6.4%NetApp NTAP $12,919.7 $9,144.7 $6,290.7 63.0% 16.4% -1.9% 1.5x 8.9x 1.4x 6.1x 4.2%Splunk SPLK $7,148.5 $6,352.1 $403.4 85.6% -44.9% 50.6% 15.7x n/a 11.8x 226.5x -17.5%Varonis Systems VRNS $806.5 $691.2 $93.3 90.3% -16.0% 38.3% 7.4x n/a 5.8x n/a -25.4%

Median: $6,125.4 $5,397.4 $1,615.8 79.8% 17.5% 3.1% 2.6x 8.9x 2.9x 7.6x -1.8%









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5%

10%

15%

20%

Storage, Data Management & Integration Software Stock Market Return: January - December 2014

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDCA Technologies CA $13,547.4 $12,254.4 $4,463.0 85.4% 31.3% -1.1% 2.7x 8.8x 2.9x 7.3x -5.0%Citrix Systems CTXS $10,269.9 $10,807.8 $3,093.8 85.3% 22.3% 8.3% 3.5x 15.7x 3.3x 11.1x 2.1%Netscout Systems NTCT $1,506.1 $1,336.3 $434.2 78.8% 24.9% 19.4% 3.1x 12.4x 2.8x 9.1x 26.7%Red Hat RHT $12,986.0 $12,581.4 $1,725.9 84.7% 18.4% 16.5% 7.3x 39.6x 6.4x 24.0x 23.8%SolarWinds SWI $3,769.0 $3,559.4 $407.4 89.8% 33.3% 30.6% 8.7x 26.2x 7.1x 14.8x 31.8%VMWare VMW $35,523.6 $29,935.6 $5,816.0 85.3% 25.2% 15.9% 5.1x 20.5x 4.5x 12.3x -7.8%

Median: $11,628.0 $11,531.1 $2,409.9 85.3% 25.0% 16.2% 4.3x 18.1x 3.9x 11.7x 13.0%








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5%

10%

15%

20%

Systems Management Software Stock Market Return: January - December 2014

Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAdvent Software ADVS $1,584.1 $1,802.4 $393.7 72.0% 25.3% 4.3% 4.6x 18.1x 4.4x 13.1x -9.5%Broadridge Financial BR $5,542.3 $5,735.1 $2,568.6 31.1% 19.9% 3.6% 2.2x 11.2x 2.1x 9.7x 20.3%Fidessa LSE:FDSA $1,415.1 $1,325.1 $473.5 20.7% 18.8% 0.1% 2.8x 14.9x 3.0x 11.9x 4.9%Jack Henry & Associates JKHY $5,081.6 $5,053.2 $1,233.2 42.8% 34.5% 6.9% 4.1x 11.9x 3.8x 10.9x 8.5%MSCI MSCI $5,314.7 $5,659.5 $1,104.7 67.7% 40.1% 19.6% 5.1x 12.8x 5.3x 13.6x 10.4%SS&C SSNC $4,893.7 $5,420.1 $749.7 46.2% 39.1% 6.8% 7.2x 18.5x 6.4x 15.6x 31.6%

Median: $4,987.6 $5,236.6 $927.2 44.5% 29.9% 5.6% 4.3x 13.8x 4.1x 12.5x 9.4%









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0%

5%

10%

15%

20%Vertical - Finance Software Stock Market Return:January - December 2014

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBlackbaud BLKB $1,958.6 $2,075.8 $546.5 52.0% 18.3% 11.8% 3.8x 20.8x 3.3x 15.2x 17.5%Constellation TSX:CSU $6,321.2 $6,589.5 $1,569.9 33.3% 10.1% 38.7% 4.2x 41.6x 3.6x 17.5x 43.3%EPIQ Systems EPIQ $621.8 $893.4 $456.6 51.9% 12.6% 12.5% 2.0x 15.5x 1.8x 8.7x 10.4%Guidewire Software GWRE $3,523.3 $3,023.1 $363.5 59.6% 9.1% 19.6% 8.3x 91.8x 7.9x 54.1x 5.2%Sapiens International SPNS $351.2 $306.0 $151.9 36.8% 11.8% 16.5% 2.0x 17.1x 1.7x 13.2x -2.1%Silver Spring Networks SSNI $411.2 $302.1 $211.0 28.4% -38.5% -24.6% 1.4x n/a 1.0x 25.6x -59.4%Tyler Technologies TYL $3,615.2 $3,457.8 $476.4 47.4% 21.5% 18.7% 7.3x 33.8x 6.4x 23.7x 8.0%

Median: $1,958.6 $2,075.8 $456.6 47.4% 11.8% 16.5% 3.8x 27.3x 3.3x 17.5x 8.0%








-30%

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5%

10%

15%

20%Vertical - Other Software Stock Market Return: January - December 2014

Vertical - Other S&P NASDAQ SEG SW Index


SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDSEG SaaS Index $1,035.6 $895.4 $134.7 65.5% -14.4% 29.1% 6.4x 59.2x 5.1x 33.4x -4.5% CRM & Marketing $1,150.5 $1,008.1 $135.8 66.9% -15.1% 28.4% 7.2x 96.5x 5.8x 31.8x 3.5% ERP & Supply Chain $921.8 $781.0 $120.5 68.2% -8.7% 30.6% 5.5x 58.0x 3.8x 26.8x -18.2% Vertically Focused $1,056.4 $874.2 $145.3 62.3% 7.9% 38.1% 7.4x 48.9x 5.7x 28.6x -4.9% Workforce Management $1,314.0 $1,241.2 $128.7 59.9% -14.8% 31.8% 7.8x 59.2x 5.5x 43.7x -3.7% SaaS Other $842.1 $895.4 $149.7 68.3% -19.4% 23.9% 5.1x 68.7x 4.5x 74.8x -2.2%

Category Name

TTM Revenue Growth 29.1%TTM EBITDA Growth -11.9%TTM Earnings Growth -22.0%Gross Profit Margin 65.5%EBITDA Margin -14.4%Net Income Margin -23.7%SG&A Expenses as a % of Total Revenue 59.8%R&D Expenses as a % of Total Revenue 20.0%







-30%

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5%

10%

15%

20%SEG SaaS Index Stock Market Return: January - December 2014

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBazaarvoice BV $627.4 $572.9 $180.0 65.5% -15.1% 16.9% 3.2x n/a 2.8x n/a 3.5%Constant Contact CTCT $1,162.5 $1,008.1 $318.6 72.5% 11.6% 15.1% 3.2x 27.3x 2.7x 13.8x 21.4%Cvent NYSE:CVT $1,150.5 $967.8 $133.6 70.0% 5.8% 28.4% 7.2x 125.4x 5.8x 55.6x -24.3%HubSpot HUBS $1,055.0 $1,162.2 $104.1 66.9% -33.4% n/a 11.2x n/a 8.5x n/a 11.7%LivePerson LPSN $770.6 $683.5 $198.6 75.1% 5.1% 14.5% 3.4x 67.6x 2.7x 29.2x -4.0%Marketo MKTO $1,348.5 $1,236.8 $135.8 65.4% -32.5% 60.5% 9.1x n/a 6.7x n/a -14.0%Marin Software MRIN $295.9 $224.0 $94.2 63.5% -29.4% 29.8% 2.4x n/a 2.0x n/a -16.8%Salesforce.com CRM $37,424.6 $38,849.4 $5,074.2 76.2% 1.7% 34.9% 7.7x 445.5x 6.3x 34.5x 8.1%Zendesk ZEN $1,775.0 $1,672.5 $111.0 63.9% -44.1% n/a 15.1x n/a 10.2x n/a 81.5%

Median: $1,150.5 $1,008.1 $135.8 66.9% -15.1% 28.4% 7.2x 96.5x 5.8x 31.8x 3.5%

TTM Revenue Growth 28.4%TTM EBITDA Growth 23.2%TTM Earnings Growth -7.8%Gross Profit Margin 66.9%EBITDA Margin -15.1%Net Income Margin -29.5%SG&A Expenses as a % of Total Revenue 65.5%R&D Expenses as a % of Total Revenue 18.8%


Levered FCF Margin -3.9%Cash from Operations Growth (YoY) 58.6%Cash from Investing Growth (YoY) -49.3%Cash from Financing Growth (YoY) 79.0%Levered FCF Growth (YoY) 39.4%






-30%

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5%

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20%CRM & Marketing SaaS Stock Market Return: January - December 2014

CRM & Marketing S&P NASDAQ SEG SaaS

SEG SaaS Index Category: ERP & Supply Chain


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAmber Road AMBR $260.1 $223.0 $62.8 58.2% -34.7% 30.6% 3.5x n/a 3.3x n/a -39.9%E2open EOPN $280.7 $256.4 $76.6 62.5% -32.4% 9.2% 3.3x n/a 2.8x n/a -60.3%Fleetmatics FLTX $1,339.6 $1,203.4 $217.7 75.3% 22.9% 33.5% 5.5x 24.1x 4.4x 13.9x -18.2%Netsuite N $8,377.6 $8,218.5 $513.4 68.2% -8.7% 33.5% 16.0x n/a 12.1x 129.3x 7.1%SciQuest SQI $397.7 $273.5 $102.2 69.8% 4.6% 21.6% 2.7x 58.0x 2.6x 13.3x -46.8%SPS Commerce SPSC $921.8 $781.0 $120.5 69.0% 10.0% 21.9% 6.5x 65.0x 5.3x 39.8x -12.1%Workday WDAY $15,261.1 $13,915.9 $703.5 65.1% -22.7% 72.2% 19.8x n/a n/a n/a -0.2%

Median: $921.8 $781.0 $120.5 68.2% -8.7% 30.6% 5.5x 58.0x 3.8x 26.8x -18.2%



Levered FCF Margin 8.3%Cash from Operations Growth (YoY) 10.6%Cash from Investing Growth (YoY) 1.0%Cash from Financing Growth (YoY) 14.4%Levered FCF Growth (YoY) 6.6%






-35%

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-10%

-5%

0%

5%

10%

15%

20%ERP & Supply Chain SaaS Stock Market Return: January - December 2014

ERP & Supply Chain S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Vertically Focused


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTD2U TWOU $797.1 $716.5 $104.3 75.0% -27.0% 39.5% 6.9x n/a 5.4x n/a 40.6%Athenahealth ATHN $5,550.3 $5,657.8 $711.0 59.3% 8.3% 31.7% 8.0x 95.3x 6.5x 35.9x 10.8%Castlight Health CSLT $1,056.4 $874.2 $36.3 26.8% -235.1% 295.4% 24.1x n/a 12.4x n/a -70.6%DealerTrack TRAK $2,403.5 $2,986.0 $743.2 40.0% 13.0% 62.6% 4.0x 30.9x 3.0x 13.6x -8.5%Ebix EBIX $623.2 $639.6 $204.5 80.5% 39.1% -1.6% 3.1x 8.0x 2.8x 7.5x 20.2%Ellie Mae ELLI $1,159.0 $1,073.6 $145.3 72.7% 18.1% 13.5% 7.4x 40.9x 5.7x 32.3x 50.3%Medical Transcript MTBC $25.7 $25.8 $14.2 51.6% 0.1% 43.2% 1.8x 1530.1x 0.7x n/a -45.3%Medidata Solutions MDSO $2,590.5 $2,570.4 $320.4 74.6% 7.9% 22.8% 8.0x 101.9x 6.6x 27.7x -19.1%OPOWER OPWR $709.3 $571.7 $119.6 66.6% -27.2% 52.0% 4.8x n/a n/a n/a -38.1%RealPage RP $1,728.9 $1,736.8 $395.6 58.1% 8.9% 7.7% 4.4x 49.3x 4.0x 23.6x -2.0%Textura TXTR $725.1 $659.8 $64.4 84.2% -19.0% n/a 10.3x n/a 8.1x 164.0x -4.9%Q2 Holdings QTWO $644.7 $555.1 $72.7 40.9% -21.5% 36.7% 7.6x n/a 5.7x n/a 24.2%Veeva Systems VEEV $3,449.0 $3,056.1 $289.0 62.3% 21.8% 54.4% 10.6x 48.5x 8.2x 29.5x -18.3%

Median: $1,056.4 $874.2 $145.3 62.3% 7.9% 38.1% 7.4x 48.9x 5.7x 28.6x -4.9%









-30%

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0%

5%

10%

15%

20%Vertically Focused SaaS Stock Market Return: January - December 2014

Vertically Focused S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Workforce Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBenefitfocus BNFT $839.3 $820.3 $127.5 34.8% -37.5% 31.8% 6.4x n/a 5.1x n/a -41.4%Callidus Software CALD $794.1 $765.9 $128.7 59.9% -1.4% 19.8% 6.0x n/a 5.0x 43.7x 25.0%Cornerstone OnDemand CSOD $1,885.1 $1,881.5 $242.1 71.2% -15.8% 45.2% 7.8x n/a 5.9x 152.6x -33.5%Halogen Software TSX:HGN $160.6 $115.4 $54.2 73.0% -14.8% 18.9% 2.1x n/a 1.8x n/a -40.7%Paylocity Holding PCTY $1,314.0 $1,241.2 $117.4 50.2% -5.1% 40.1% 10.6x n/a 8.2x n/a 8.6%The Ultimate Software Group ULTI $4,165.3 $4,064.4 $482.4 59.6% 14.2% 23.5% 8.4x 59.2x 6.9x 28.4x -3.7%Workday WDAY $15,261.1 $13,915.9 $703.5 65.1% -22.7% 72.2% 19.8x n/a n/a n/a -0.2%

Median: $1,314.0 $1,241.2 $128.7 59.9% -14.8% 31.8% 7.8x 59.2x 5.5x 43.7x -3.7%









-40%

-30%

-20%

-10%

0%

10%

20%Workforce Management SaaS Stock Market Return: January - December 2014

Workforce Management S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDChannelAdvisors ECOM $537.1 $459.5 $81.6 71.4% -34.1% 28.4% 5.6x n/a 4.4x n/a -47.4%Covisint COVS $101.3 $57.2 $91.8 36.3% -38.3% -6.4% 0.6x n/a 0.6x n/a -78.9%Demandware DWRE $2,089.3 $1,830.2 $142.0 73.5% -11.2% 50.3% 12.9x n/a 9.5x 200.1x -11.1%FireEye FEYE $4,750.3 $4,352.4 $339.9 59.1% -99.3% 150.0% 12.8x n/a 7.6x n/a -23.2%HortonWorks HDP $1,123.7 $1,012.0 $44.2 34.3% -220.8% n/a 22.9x n/a 14.4x n/a 2.4%inContact SAAS $534.6 $521.1 $157.4 48.0% -4.5% 25.3% 3.3x n/a 2.6x 127.7x 9.6%IntraLinks Holdings IL $667.8 $701.5 $251.0 72.8% 3.1% 9.5% 2.8x 90.8x 2.6x 17.9x -0.8%J2 Global JCOM $2,964.0 $2,933.1 $569.9 82.6% 41.8% 17.6% 5.1x 12.3x 4.6x 10.3x 27.6%Jive Software JIVE $431.7 $340.1 $170.3 62.5% -29.8% 22.5% 2.0x n/a 1.7x n/a -44.8%New Relic NEWR $1,604.2 $1,511.9 $85.0 81.9% -44.0% n/a 17.8x n/a 12.2x n/a 2.5%Liquid Holdings Group LIQD $19.0 n/a $5.2 54.2% n/a 1.3% n/a n/a n/a n/a -95.5%Qualys QLYS $1,257.8 $1,144.4 $126.0 77.8% 13.2% 21.7% 9.1x 68.7x 7.5x 36.6x 62.9%RingCentral RNG $1,016.3 $895.4 $203.3 63.6% -19.4% 37.1% 4.4x n/a 3.4x n/a -16.4%Rally Software Development RALY $286.7 $216.2 $82.6 74.1% -31.8% 17.6% 2.6x n/a 2.1x n/a -41.2%Service-now.com NOW $10,062.2 $9,852.4 $609.8 63.3% -16.2% 62.8% 16.2x n/a 11.3x 112.1x 21.8%Tableau Software DATA $5,876.9 $5,232.4 $351.2 91.1% 3.2% 82.1% 14.9x 469.1x 10.4x 118.1x 23.8%Tangoe TNGO $506.2 $458.6 $207.6 54.1% 7.0% 13.5% 2.2x 31.7x 2.0x 12.0x -27.9%TrueCar TRUE $1,766.6 $1,664.6 $191.3 91.3% -20.9% 66.1% 8.7x n/a 6.3x 74.8x 127.6%Upland Software UPLD $145.4 $221.9 $60.2 65.2% -14.4% n/a 3.7x n/a 3.0x n/a -1.9%Workiva WK $529.6 $519.4 $106.1 71.4% -27.2% n/a 4.9x n/a n/a n/a -2.5%Yodlee YDLE $356.6 $464.2 $84.3 62.2% 5.0% n/a 5.5x 110.8x 4.6x 91.3x -9.2%Zix ZIXI $204.5 $184.3 $49.8 84.0% 20.4% 4.8% 3.7x 18.1x 3.4x 14.1x -21.2%

Median: $842.1 $895.4 $149.7 68.3% -19.4% 23.9% 5.1x 68.7x 4.5x 74.8x -2.2%









-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Other Public SaaS Companies SaaS Stock Market Return: January - December 2014

Other SaaS S&P NASDAQ SEG SaaS


SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDSEG Internet Index $1,424.4 $1,264.7 $478.8 63.7% 8.5% 20.6% 2.6x 25.3x 2.4x 14.8x -8.0% Ad Tech & Lead Generation $1,359.3 $1,232.3 $658.4 53.3% 3.7% 27.7% 2.2x 28.9x 2.3x 18.6x -23.5% Commerce $666.7 $517.0 $418.6 39.7% 7.7% 13.5% 1.5x 27.3x 1.4x 14.9x -6.9% Content & Media $2,472.2 $2,188.1 $597.4 49.3% 10.6% 12.4% 2.9x 31.1x 2.6x 13.0x -8.9% Gaming $2,224.17 $1,707.3 $751.6 69.8% 18.3% 19.2% 2.9x 20.8x 2.0x 20.2x -18.1% Infrastructure $803.93 $585.8 $317.6 62.4% 4.7% 7.2% 1.5x 17.3x 1.4x 11.9x 2.8% Search $42,822.70 $40,745.1 $5,128.3 67.4% 32.8% 29.1% 4.6x 13.8x 4.4x 10.5x -6.8% Services $1,048.99 $706.1 $232.5 73.3% 7.1% 30.4% 2.7x 31.9x 2.4x 17.7x -17.1% Social $13,197.06 $11,954.0 $1,017.1 72.9% 7.8% 54.5% 11.8x 74.8x 9.6x 28.7x -20.1% Travel $3,167.93 $2,728.4 $708.6 80.1% 14.5% 23.7% 4.5x 18.1x 4.2x 13.1x 7.6%


Current Ratio 2.5Quick Ratio 2.1Cash as Percent of Market Cap 17.2%Avg Days Outstanding: Accounts Receivable 38Avg Days Outstanding: Accounts Payable 47Working Capital to TTM Operating Expense Ratio 0.5






-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%SEG Internet Index Stock Market Return: January - December 2014

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAOL AOL $3,596.0 $3,587.8 $2,495.9 27.0% 17.4% 11.4% 1.4x 8.3x 1.3x 6.7x 3.1%Baidu.com BIDU $79,928.5 $75,733.3 $7,253.4 63.7% 36.2% 54.8% 10.4x 28.9x 7.4x 21.6x 26.7%Criteo SA CRTO $2,426.0 $2,117.8 $818.0 35.6% 7.4% 64.2% 2.6x 34.9x 4.7x 15.6x 22.7%Google GOOGL $358,535.9 $307,118.9 $67,911.0 58.1% 29.4% 25.2% 4.5x 15.4x 4.1x 10.4x -4.7%Marchex MCHX $196.7 $116.0 $189.0 36.2% 5.3% 30.1% 0.6x 11.6x 0.9x 9.2x -52.9%ReachLocal RLOC $100.3 $48.4 $498.8 48.5% -4.2% -0.4% 0.1x n/a 0.1x n/a -67.1%Rocket Fuel FUEL $665.7 $623.7 $354.7 48.3% -8.3% 81.8% 1.8x n/a 1.1x n/a -72.9%The Rubicon Project RUBI $580.3 $476.4 $111.6 83.3% -9.1% 48.5% 4.3x n/a 3.2x 51.2x -19.7%Sohu.com SOHU $2,046.7 $1,838.8 $1,581.3 60.3% 1.4% 20.3% 1.2x 81.9x 1.0x 33.0x -27.4%Tremor TRMR $146.6 $68.7 $153.9 35.1% -11.2% 20.2% 0.4x n/a 0.4x n/a -49.5%TubeMogul TUBE $671.8 $625.7 $100.2 69.0% 2.0% 104.6% 6.2x 309.5x 4.4x n/a 96.1%Yahoo! YHOO $47,850.7 $37,888.8 $4,630.9 71.9% 15.6% -2.7% 8.2x 52.6x 8.5x 29.4x 27.6%Yandex YNDX $5,716.9 $5,756.8 $1,219.3 71.2% 38.6% 33.0% 4.7x 12.2x 4.4x 10.6x -57.9%YuMe YUME $166.5 $109.1 $174.7 47.6% -0.5% 22.6% 0.6x n/a 0.6x 36.2x -31.5%

Median: $1,359.3 $1,232.3 $658.4 53.3% 3.7% 27.7% 2.2x 28.9x 2.3x 18.6x -23.5%


Current Ratio 2.6xQuick Ratio 2.5xCash as Percent of Market Cap 17.4%Avg Days Outstanding: Accounts Receivable 67.5xAvg Days Outstanding: Accounts Payable 62.8xWorking Capital to TTM Operating Expense Ratio 0.5x






-50%

-40%

-30%

-20%

-10%

0%

10%

20%Internet Ad Tech Stock Market Return: January - December 2014

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Commerce


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTD1-800-FLOWERS.COM FLWS $528.8 $591.5 $760.0 41.8% 5.9% 2.8% 0.8x 13.1x 0.5x 7.7x 55.8%58.com WUBA $3,648.2 $3,022.0 $230.0 95.1% 10.7% 83.8% 13.1x 122.6x 8.2x n/a 9.4%Alibaba BABA $258,362.3 $251,337.5 $10,324.3 71.9% 46.5% n/a 24.3x 52.3x 17.0x 33.3x 10.7%Amazon.com AMZN $143,693.9 $139,909.9 $85,246.0 28.6% 4.6% 21.5% 1.6x 36.0x 1.4x 18.7x -22.0%Bitauto Holdings BITA $2,921.8 $2,756.0 $320.5 80.2% 24.5% 50.1% 8.6x 35.1x 6.1x 21.2x 125.5%BlueNile NILE $426.6 $394.8 $462.0 18.5% 3.6% 5.0% 0.9x 23.9x 0.8x 15.5x -22.3%Borderfree BRDR $285.0 $162.6 $124.7 25.6% 1.4% 20.4% 1.3x 96.4x 1.2x 49.6x -55.2%Chegg CHGG $579.4 $496.2 $297.5 33.7% 5.0% 20.6% 1.7x 33.4x 1.4x 115.4x -16.8%DangDang DANG $750.3 $477.3 $1,249.7 18.1% 1.3% 28.5% 0.4x 29.9x 0.3x 10.4x -4.7%Digital River DRIV $788.4 $537.7 $375.3 65.8% 9.5% -2.9% 1.4x 15.1x 1.4x 10.0x 34.5%eBay EBAY $69,721.6 $66,936.6 $17,511.0 68.1% 28.3% 12.9% 3.8x 13.5x 3.4x 10.9x 4.0%GeekNet GKNT $55.6 $24.9 $142.7 18.5% -2.0% 9.5% 0.2x n/a 0.2x 35.6x -54.1%Groupon GRPN $5,545.4 $4,690.2 $3,034.7 50.5% 3.0% 24.2% 1.5x 51.6x 1.3x 14.3x -30.3%Liquidity Services LQDT $244.5 $181.9 $495.7 35.5% 10.2% -2.0% 0.4x 3.6x 0.4x 5.0x -63.6%Mecox Lane MCOX $48.5 $38.5 $77.5 46.9% -12.6% -16.7% 0.5x n/a n/a n/a 4.2%Mercadolibre MELI $5,637.3 $5,518.4 $529.8 78.7% 36.3% 19.9% 10.4x 28.7x 9.1x 25.5x 24.2%MOL Global MOLG $205.9 $212.8 $58.2 37.7% 22.5% n/a 3.7x 16.3x n/a n/a -62.9%Overstock.com OSTK $583.1 $470.4 $1,424.3 18.6% 1.3% 14.1% 0.3x 25.9x 0.3x 10.2x -17.9%PetMed Express PETS $291.3 $241.1 $228.8 33.5% 12.6% -2.8% 1.1x 8.4x 1.0x 8.5x -9.2%Stamps.com STMP $763.6 $731.9 $137.8 78.4% 28.3% 9.8% 5.3x 18.8x 4.6x 14.9x 14.9%

Median: $666.7 $517.0 $418.6 39.7% 7.7% 13.5% 1.5x 27.3x 1.4x 14.9x -6.9%

TTM Revenue Growth 13.5%TTM EBITDA Growth 10.5%TTM Earnings Growth 7.5%Gross Profit Margin 39.7%EBITDA Margin 7.7%Net Income Margin -3.3%SG&A Expenses as a % of Total Revenue 37.3%R&D Expenses as a % of Total Revenue 18.2%


Levered FCF Margin 5.0%Cash from Operations Growth (YoY) -8.1%Cash from Investing Growth (YoY) 5.0%Cash from Financing Growth (YoY) -49.3%Levered FCF Growth (YoY) -12.3%





-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Commerce Internet Stock Market Return: January - December 2014

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAOL AOL $3,596.0 $3,587.8 $2,495.9 27.0% 17.4% 11.4% 1.4x 8.3x 1.3x 6.7x 3.1%DemandMedia DMD $112.6 $73.1 $365.9 42.3% 8.0% 40.0% 0.2x 2.5x 0.5x 4.2x -45.2%InterActiveCorp IACI $5,094.3 $5,159.2 $3,003.2 71.1% 15.7% -2.0% 1.7x 10.9x n/a 9.0x -8.9%Netflix NFLX $20,580.8 $19,813.9 $5,195.2 32.1% 9.1% 25.3% 3.8x 41.9x 3.1x 35.2x -5.8%Pandora P $3,710.2 $3,393.8 $870.1 44.5% -1.0% n/a 3.9x n/a n/a 32.0x -33.4%Shutterstock SSTK $2,448.6 $2,188.1 $304.8 60.5% 15.1% 40.7% 7.2x 47.6x 5.4x 26.8x -16.8%SINA SINA $2,472.2 $1,220.4 $754.1 62.1% 4.8% 24.2% 1.6x 33.7x 1.4x 169.5x -55.9%TheStreet.com TST $82.0 $27.7 $58.6 49.3% 0.5% 9.5% 0.5x 97.4x 0.4x 6.9x 11.2%WebMD Health WBMD $1,429.8 $1,682.2 $564.0 60.8% 19.1% 12.4% 3.0x 15.6x 2.7x 9.7x 2.5%XO Group XOXO $489.5 $403.9 $139.2 85.1% 10.2% 4.3% 2.9x 28.5x 2.9x 16.4x 24.0%Xunlei XNET $474.6 $40.5 $175.6 41.8% 10.8% n/a 0.2x 2.1x 0.2x 0.7x -51.0%Yahoo! YHOO $47,850.7 $37,888.8 $4,630.9 71.9% 15.6% -2.7% 8.2x 52.6x 8.5x 29.4x 27.6%Youku YOKU $3,525.8 $2,192.2 $597.4 33.0% 10.6% 32.7% 3.7x 34.6x 2.6x n/a -44.0%

Median: $2,472.2 $2,188.1 $597.4 49.3% 10.6% 12.4% 2.9x 31.1x 2.6x 13.0x -8.9%

TTM Revenue Growth 12.4%TTM EBITDA Growth -2.2%TTM Earnings Growth 10.4%Gross Profit Margin 49.3%EBITDA Margin 10.6%Net Income Margin 4.1%SG&A Expenses as a % of Total Revenue 38.7%R&D Expenses as a % of Total Revenue 11.0%








-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Content & Media Stock Market Return: January - December 2014

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDChangYou.com CYOU $1,445.9 $1,497.1 $734.2 77.6% 5.3% 2.5% 2.0x 38.5x 1.9x 24.3x 9.3%Giant Interactive GA $1.2 $5.4 $0.5 -57.8% n/a n/a 9.9x n/a n/a n/a -83.3%Netease NTES $12,889.3 $9,729.9 $1,738.6 72.1% 44.5% 18.0% 5.6x 12.6x 4.4x 11.3x 30.7%NCSoft A036570 $3,327.9 $2,588.6 $769.0 71.7% 34.8% n/a 3.4x 9.7x 3.4x 8.9x -26.8%Perfect World PWRD $783.6 $442.4 $601.6 73.5% 18.3% 30.4% 0.7x 4.0x 0.6x 4.8x -9.3%Sohu.com SOHU $2,046.7 $1,838.8 $1,581.3 60.3% 1.4% 20.3% 1.2x 81.9x 1.0x 33.0x -27.4%Tencent Holdings SEHK:700 $134,534.8 $131,966.4 $12,205.6 59.4% 37.3% 34.7% 10.8x 29.0x 9.0x 20.5x 11.7%Zynga ZNGA $2,401.6 $1,575.8 $674.2 68.0% -11.7% -33.1% 2.3x n/a 2.0x 20.2x -32.7%

Median: $2,224.2 $1,707.3 $751.6 69.8% 18.3% 19.2% 2.9x 20.8x 2.0x 20.2x -18.1%








-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%Internet Gaming Stock Market Return: January - December 2014

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTD8x8 EGHT $819.5 $633.9 $146.0 70.7% 4.1% 27.8% 4.3x 105.8x 3.6x 30.5x -8.1%Akamai Technologies AKAM $11,206.5 $11,095.7 $1,863.6 68.8% 35.0% 22.6% 6.0x 17.0x 5.1x 11.9x 35.3%Brightcove BCOV $251.1 $230.7 $123.4 65.6% -1.6% 18.1% 1.9x n/a 1.8x n/a -44.5%BroadSoft BSFT $836.0 $775.0 $203.0 73.3% 4.2% 17.8% 3.8x 91.0x 3.2x 16.0x 9.8%Digital River DRIV $788.4 $537.7 $375.3 65.8% 9.5% -2.9% 1.4x 15.1x 1.4x 10.0x 34.5%Envivio ENVI $37.1 -$0.8 $41.3 64.1% -28.8% 7.5% n/a 0.1x n/a n/a -61.4%Harmonic HLIT $617.3 $520.1 $445.9 48.3% 5.2% -3.0% 1.2x 22.3x 1.2x 8.7x -4.2%Interactive Intelligence ININ $1,010.1 $950.2 $339.5 60.8% 1.6% 13.9% 2.8x 180.3x 2.6x 94.7x -27.9%Limelight Networks LLNW $273.4 $172.5 $163.7 48.9% -4.4% -7.9% 1.1x n/a 1.1x n/a 39.2%Mitel Networks MITL $1,067.7 $1,264.7 $913.9 53.6% 10.9% n/a 1.4x 12.7x 1.1x 7.4x 10.7%Polycom PLCM $1,842.5 $1,528.9 $1,344.2 58.1% 11.5% -2.1% 1.1x 9.9x 1.1x 6.8x 21.0%Rovi ROVI $2,140.0 $2,859.5 $560.8 81.9% 36.0% 32.4% 5.1x 14.2x 5.3x 12.4x 13.8%SeaChange International SEAC $207.9 $107.4 $119.8 50.1% -10.1% -22.9% 0.9x n/a 0.8x 135.7x -47.5%ShoreTel SHOR $464.7 $402.3 $345.9 59.1% 6.2% 7.2% 1.2x 18.9x 1.1x 12.9x -20.5%Sonus Networks SONS $981.1 $873.0 $295.7 64.3% 0.8% 7.2% 3.0x 386.4x 2.8x 22.6x 28.9%Synacor SYNC $54.8 $33.0 $105.1 45.6% -2.3% -8.3% 0.3x n/a 0.3x 9.2x -20.3%Tucows TCX $219.5 $206.0 $142.0 27.3% 8.3% 12.2% 1.5x 17.5x 1.3x 11.0x 48.3%VeriSign VRSN $6,902.1 $6,804.5 $999.8 81.2% 61.6% 5.3% 6.8x 11.1x 6.5x 9.8x -5.0%

Median: $803.9 $585.8 $317.6 62.4% 4.7% 7.2% 1.5x 17.3x 1.4x 11.9x 2.8%








-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Internet Infrastructure Stock Market Return: January - December 2014

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Search


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDBaidu.com BIDU $79,928.5 $75,733.3 $7,253.4 63.7% 36.2% 54.8% 10.4x 28.9x 7.4x 21.6x 26.7%Google GOOGL $358,535.9 $307,118.9 $67,911.0 58.1% 29.4% 25.2% 4.5x 15.4x 4.1x 10.4x -4.7%InterActiveCorp IACI $5,094.3 $5,159.2 $3,003.2 71.1% 15.7% -2.0% 1.7x 10.9x n/a 9.0x -8.9%Yandex YNDX $5,716.9 $5,756.8 $1,219.3 71.2% 38.6% 33.0% 4.7x 12.2x 4.4x 10.6x -57.9%

Median: $42,822.7 $40,745.1 $5,128.3 67.4% 32.8% 29.1% 4.6x 13.8x 4.4x 10.5x -6.8%









-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Internet Search Stock Market Return: January - December 2014

Search S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDAngie's List ANGI $364.6 $344.9 $301.6 73.3% -4.9% 35.2% 1.1x n/a 1.0x 16.2x -54.1%Bankrate RATE $1,298.1 $1,419.1 $531.0 65.3% 22.5% 24.0% 2.7x 11.9x 2.4x 9.0x -28.7%Carbonite CARB $384.8 $313.4 $119.5 68.8% 7.5% 17.1% 2.6x 35.1x 2.4x 17.7x 20.2%Care.com CRCM $260.7 $177.6 $105.7 75.9% -31.2% 41.1% 1.7x n/a 1.1x n/a -49.4%Cimpress CMPR $2,440.1 $2,863.2 $1,329.1 63.5% 14.0% 11.6% 2.2x 15.4x 1.9x 11.9x 47.7%Coupons.com COUP $1,419.0 $1,233.3 $214.4 63.3% -6.2% 41.9% 5.8x n/a 4.4x 32.3x -40.8%eHealth EHTH $444.0 $385.9 $188.9 97.5% 6.4% 10.9% 2.0x 31.9x 2.0x 23.6x -47.6%Everyday Health EVDY $454.6 $436.9 $174.4 73.4% 8.8% 23.2% 2.5x 28.4x 2.0x 10.9x 9.3%GrubHub GRUB $2,961.0 $2,683.2 $229.6 64.6% 23.7% 108.9% 11.7x 49.3x 8.7x 28.6x 6.8%LendingClub LC $9,143.6 n/a $176.5 81.7% n/a 130.6% n/a n/a n/a n/a 8.0%LifeLock LOCK $1,732.4 $1,494.1 $448.6 74.2% 7.1% 29.6% 3.3x 47.1x 2.7x 20.4x 17.4%Monster Worldwide MWW $409.8 $586.2 $782.5 48.2% 9.3% -4.6% 0.7x 8.0x 0.8x 5.8x -34.6%Qihoo QIHU $7,210.6 $7,224.9 $1,181.1 80.3% 24.7% 113.8% 6.1x 24.8x 3.8x 11.0x -30.0%QuinStreet QNST $269.4 $226.7 $274.8 12.0% 0.9% -9.4% 0.8x 89.7x 0.8x 14.3x -31.0%Shutterfly SFLY $1,615.6 $1,622.1 $849.0 51.2% 8.6% 17.2% 1.9x 22.1x 1.7x 9.1x -15.6%Tree.Com TREE $547.5 $463.9 $159.9 95.5% 7.5% 26.1% 2.9x 38.5x 2.6x 18.5x 48.3%Trulia TRLA $1,740.2 $1,758.2 $235.4 82.0% -9.8% 105.5% 7.5x n/a 5.6x 38.2x 30.7%Wix.com WIX $799.9 $706.1 $125.2 81.5% -39.7% 81.9% 5.6x n/a 3.8x n/a -18.5%Xoom XOOM $673.2 $514.1 $147.3 70.3% 5.6% 31.2% 3.5x 62.8x 2.8x 23.5x -35.5%Zillow Z $4,288.7 $3,922.4 $291.9 91.1% -0.3% 68.2% 13.4x n/a 9.5x 51.3x 29.1%

Median: $1,049.0 $706.1 $232.5 73.3% 7.1% 30.4% 2.7x 31.9x 2.4x 17.7x -17.1%

TTM Revenue Growth 30.4%TTM EBITDA Growth 4.7%TTM Earnings Growth -50.8%Gross Profit Margin 73.3%EBITDA Margin 7.1%Net Income Margin -3.7%SG&A Expenses as a % of Total Revenue 51.3%R&D Expenses as a % of Total Revenue 20.0%







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Internet Services Stock Market Return: January - December 2014

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDFacebook FB $217,507.9 $203,535.9 $11,201.0 82.0% 54.0% 63.0% 18.2x 33.6x 12.9x 22.0x 42.6%LinkedIn LNKD $28,524.6 $26,266.2 $2,022.6 86.9% 11.2% 46.0% 13.0x 116.0x 9.6x 35.3x 10.6%Mail.ru Group LSE:MAIL $3,408.4 $2,632.9 $867.7 61.2% 45.5% 24.5% 3.0x 6.7x 3.6x 6.9x -63.1%Renren RENN $901.4 $89.2 $90.9 28.1% -103.9% -46.4% 1.0x n/a 0.9x n/a -20.8%Twitter TWTR $22,425.2 $20,303.2 $1,166.6 63.8% -66.7% 118.3% 17.4x n/a 10.1x 44.8x -46.9%Yelp YELP $3,968.9 $3,604.9 $338.3 93.5% 4.3% 66.2% 10.7x 247.2x n/a n/a -19.4%YY YY $3,527.3 $3,126.4 $508.3 52.8% 32.0% 111.1% 6.2x 19.2x 3.9x 13.1x 18.8%

Median: $13,197.1 $11,954.0 $1,017.1 72.9% 7.8% 54.5% 11.8x 74.8x 9.6x 28.7x -20.1%









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Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA YTDCtrip YY $3,527.3 $3,126.4 $508.3 52.8% 32.0% 111.1% 6.2x 19.2x 3.9x 13.1x 18.8%Expedia CTRP $6,475.7 $6,589.3 $1,119.8 72.2% 8.3% 36.2% 5.9x 71.3x 4.5x n/a -7.9%HomeAway EXPE $10,802.1 $10,537.6 $5,559.5 79.4% 14.3% 21.0% 1.9x 13.2x 1.7x 9.1x 24.3%MakeMyTrip AWAY $2,808.6 $2,330.4 $427.3 84.9% 15.2% 30.4% 5.5x 35.8x 4.6x 17.9x -25.8%Orbitz MMYT $1,083.2 $1,016.7 $286.2 29.7% -2.4% 17.5% 3.6x n/a 6.6x 64.5x 31.1%Priceline OWW $911.1 $1,111.5 $908.9 80.8% 14.0% 8.3% 1.2x 8.7x 1.1x 6.8x 15.8%Travelzoo PCLN $59,696.8 $57,385.6 $8,143.0 88.9% 38.9% 26.4% 7.0x 18.1x 6.0x 14.8x -0.5%TripAdvisor TZOO $185.9 $128.7 $148.1 87.6% 14.6% -6.2% 0.9x 5.9x 0.9x 10.3x -40.0%

Median: $3,167.9 $2,728.4 $708.6 80.1% 14.5% 23.7% 4.5x 18.1x 4.2x 13.1x 7.6%








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Travel S&P NASDAQ SEG Internet Index

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