Software Equity Group Flash Report - March 2014

Software Equity Group Flash Report

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

LEADERS IN SOFTWARE M&AIndustry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking:

• Strategic exit• Growth capital

We Do Deals.

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

th 2 000 i t d bli i th h t USthan 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

Copyright © 2014 by Software Equity Group, LLC

EXTENSIVE GLOBAL REACH

Current Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France,

Recent Sell-side Representation

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 Research Distribution

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are q y p y pdistributed 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.


p ,

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

ABOUT SOFTWARE EQUITY GROUPq y p y g gy , g

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 technologyOur 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.

P h t i t t th l ti hi ' b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps 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. g

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, [email protected] , 2800-509) 858Beible, Director, Business Development (Kris please contact

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www softwareequity comwww.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.

List of Commonly Used Acronyms

CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Additions:Varonis Systems, Inc. VRNS Software

Business Intelligence &Storage, Data Management, and

Integration

SEG Index ChangesCompany Ticker Index Category


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 February 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAFeb-28-2014 Dentsu Aegis Network Ltd. explido GmbH und Co. KG - - - -Feb-28-2014 Nippon Television Holdings, Inc. (TSE:9404) Hulu Japan LLC - - - -Feb-28-2014 FrontStream Payments, Inc. Truist, Inc. - - - -Feb-27-2014 R.R. Donnelley & Sons Company (NasdaqGS:RRD) MultiCorpora R&D Inc. - - - -Feb-27-2014 Melbourne IT Ltd. (ASX:MLB) NetRegistry Group Limited - $45.2 - 8.4xFeb-27-2014 DTS Corp. (TSE:9682) YDC Corporation $32.6 - - -Feb-26-2014 Square, Inc. BookFresh - - - -Feb-26-2014 BulkLoadsNow, LLC CoopsOpen.com - - - -Feb-26-2014 Broadridge Financial Solutions, Inc. (NYSE:BR) Emerald Connect, Inc. - $60.0 - -Feb-26-2014 Workday, Inc. (NYSE:WDAY) Identified, Inc. - - - -Feb-26-2014 Didit LLC LVM Group, Inc. - - - -Feb-26-2014 @WalmartLabs Pasplore, Inc. - - - -Feb-26-2014 The CannaBusiness Group, Inc. (OTCPK:CBGI) The NorCal Connection, LLC - - - -Feb-26-2014 RCS & RDS S.A. Vianet - - - -Feb-26-2014 Hart-Boillot, LLC Winans Creative, LLC - - - -Feb-25-2014 Game Show Network, LLC Bash Gaming - - - -Feb-25-2014 EffTec International, Inc. (OTCPK:EFFI) BitBank - - - -Feb-25-2014 SimCorp A/S (CPSE:SIM) Equipos Limited - $17.2 - -Feb-25-2014 Questex Media Group LLC JAZD Markets, Inc. - - - -Feb-25-2014 JWT Warszawa Sp. z o.o. Lemon Sky Spolka z ograniczona odpowiedzialnoscia S.K.A. $3.7 - - -

Acquirer

p y p g pFeb-25-2014 Motopia Limited (ASX:MOT) Mobiware Pty Ltd. - $0.3 - -Feb-25-2014 Hal Leonard Corporation Noteflight LLC - - - -Feb-25-2014 Stamats Communications, Inc. The Thorburn Group - - - -Feb-25-2014 AmbiCom Holdings, Inc. (OTCPK:ABHI) Veloxum Corporation - - - -Feb-24-2014 Private Investor(s) Benchmark Communications Limited - - - -Feb-24-2014 Oracle Corporation (NYSE:ORCL) Blue Kai, Inc. - - - -Feb-24-2014 International Business Machines Corporation (NYSE:IBM) Cloudant, Inc. - - - -Feb-24-2014 SK Intertainment Inc. Fleshbot, LLC - - - -Feb-24-2014 Monster Worldwide, Inc. (NYSE:MWW) Gozaik LLC - - - -Feb-24-2014 INFOR, INC. GRASP Systems International, Inc. - - - -Feb-24-2014 CloudFlare, Inc. Jaal, LLC - - - -Feb-24-2014 KYOCERA Crystal Device Corporation Kyocera Corp., Crystal Components Business - - - -Feb-24-2014 BlueSpire Strategic Marketing Martino & Binzer - - - -Feb-24-2014 Infibeam Digital Entertainment Private Limited ODigMa - $5.0 - -Feb-24-2014 Greenway Medical Technologies, Inc. PeopleLYNK - - - -Feb-24-2014 Vook, Inc. RightsCube, Inc. - - - -Feb-24-2014 Rovi Corporation (NasdaqGS:ROVI) Veveo, Inc. - $69.0 - -Feb-23-2014 DDB Mudra Group 22feet communications pvt.ltd. - - - -Feb-23-2014 Good Technology, Inc. BoxTone Inc. - - - -Feb-21-2014 Apple Inc. (NasdaqGS:AAPL) Burstly, Inc. - - - -Feb-21-2014 Blue Logic Digital LLP Cool Pink Limited - - - -Feb-21-2014 Medina Capital Cryptzone Group AB (publ) (OM:CZON B) $4.4 $12.3 2.9x -Feb-21-2014 3Q Digital, LLC iSearch Media, Inc. - - - -Feb-21-2014 Google Inc. (NasdaqGS:GOOG) Spider.io - - - -Feb-20-2014 OTOY, Inc. AppSlingr, Inc. - - - -Feb-20-2014 Private Investor(s) codeMantra, LLC - - - -Feb-20-2014 Aurea Software Generix Group, ERP GCE business $20.3 - - -Feb-20-2014 Astellia SA (DB:4AS) Ingenia Telecom, S.L. - - - -Feb-20-2014 eBay Inc. (NasdaqGS:EBAY) Phisix, Inc. - - - -Feb-20-2014 BBVA Compass Bancshares, Inc. Simple Finance Technology Corp. - $117.0 - -Feb-20-2014 Criteo SA (NasdaqGS:CRTO) TEDEMIS SA - $28.8 - -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAFeb-20-2014 Citiservi Europe, S.L. Tenders One Technologies, S.L. - - - -Feb-20-2014 Lanyon, Inc. The Active Network, Inc., ACTIVE Network Business Solutions Group - - - -Feb-19-2014 Bellefield Systems, LLC AIRTIME-Manager, Inc. - - - -Feb-19-2014 Project Goth, Inc. Alive, Inc. - - - -Feb-19-2014 Impact Telecom Inc. Citessentials, LLC - - - -Feb-19-2014 Shopzilla, Inc. Connexity LLC - - - -Feb-19-2014 Synopsys Inc. (NasdaqGS:SNPS) Coverity, Inc. - $350.0 - -Feb-19-2014 Sprinklr Inc. Dachis Corporation, Inc. - - - -Feb-19-2014 3D Systems Corp. (NYSE:DDD) Digital PlaySpace, Inc. - - - -Feb-19-2014 Meltwater Ghana B.V. Findwise Search Center of Excellence AB - - - -Feb-19-2014 MSL Solutions Limited Golf Link Partners Pty Ltd - - - -Feb-19-2014 FSX Interlinked, Inc. Interlinked, Inc. - - - -Feb-19-2014 Clearswift Limited Microdasys Europe GmbH - - - -Feb-19-2014 Funnel Malaysia Sdn. Bhd. Mobcast Global Inc., EnterCrews PC Online Game Business - - - -Feb-19-2014 Facebook, Inc. (NasdaqGS:FB) WhatsApp Inc. - $16,374.2 - -Feb-18-2014 TearLab Corporation (NasdaqCM:TEAR) American Optometric Association, Ocuhub Business Unit - - - -Feb-18-2014 Wyless Inc. ASPIDER Solutions B.V. - - - -Feb-18-2014 CUSTOpharm Regulatory Services, Inc. Aspire eCTD, LLC - - - -Feb-18-2014 Wasabi Rabbit, Inc. Barnum Design, LLC - - - -Feb-18-2014 Remark Media, Inc. (NasdaqCM:MARK) BH Enterprises of FL, Inc., TaxExtension.com Assets - - - -Feb-18-2014 Private Investor(s) Communication Design International Limited (Catalist:5HT) $14.0 $6.3 0.4x -Feb-18-2014 Spirent Communications Plc. (LSE:SPT) DAX Technologies Corp. - $37.0 - -Feb-18-2014 Media, Inc. Digital Scout Inc. - - - -Feb-18-2014 Delite Products, Inc. and Vapor Hub, Inc. DogInn, Inc. (OTCPK:DOGI) - - - -Feb-18-2014 Private Investor(s) Loop Mobile (India) Limited - $112.6 - -Feb-18-2014 SuperAwesome Limited MobiGirl Media - - - -Feb-18-2014 Ray Corporation (JASDAQ:4317) Nippon Movie Co., Ltd. - $0.1 - -Feb-18-2014 Vistaprint N.V. (NasdaqGS:VPRT) People & Print Group B.V. $46.8 $33.0 0.7x 8.0xFeb-18-2014 OPT, Inc. (JASDAQ:2389) SkillUp Video Technologies Corporation - $25.3 - -Feb-18-2014 Blackfin Capital Partners SAS SunGard Capital Corp., GP3 and Decalog - - - -Feb-18-2014 ClickSoftware Technologies Ltd. (NasdaqGS:CKSW) Xora, Inc. - $14.7 - -Feb-17-2014 Blueocean Market Intelligence Services Private Limited Cognicient Limited - - - -Feb-17-2014 Agent3 Limited Continuous Insight Limited - - - -Feb-17-2014 Vistex, Inc. Counterpoint Systems Ltd. - - - -Feb-17-2014 Private Investor(s) NSO Group - - - -Feb-17-2014 EMI Media, Inc. RSL Media, LLC - - - -Feb-17-2014 Abbey House Group Spolka Akcyjna (WSE:AHG) Skate's, LLC - $0.8 - -Feb-16-2014 GTCR, LLC Callcredit Information Group Limited - $586.0 - -Feb-16-2014 Google Inc. (NasdaqGS:GOOG) SlickLogin - - - -Feb-14-2014 Yahoo! Inc. (NasdaqGS:YHOO) Distill, Inc. - - - -Feb-14-2014 Equifax Inc. (NYSE:EFX) Forseva, LLC - - - -Feb-14-2014 TEAMtalk media (Pty) Ltd. FullCircle Sport Online - - - -Feb-14-2014 Oxiem, LLC Hafenbrack Marketing & Public Relations, Inc. - - - -Feb-14-2014 Capita plc (LSE:CPI) Retain International Ltd. - - - -Feb-14-2014 CTIL Limited (BSE:532363) Tangent Solutions India Pvt. Ltd. - - - -Feb-14-2014 Private Investor(s) Twistbox Entertainment, Inc. - - - -Feb-14-2014 Rakuten, Inc. (TSE:4755) Viber Media Inc. $0.0 $900.0 - -Feb-13-2014 Brisio Innovations Inc. (OTCPK:NTCE.F) 40 Mobile Applications - - - -Feb-13-2014 Javelin Group Brand Social Limited - - - -Feb-13-2014 Bit9, Inc. Carbon Black, Inc. - - - -Feb-13-2014 Interactive Thinking Srl Hagakure Srl - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAFeb-13-2014 In Sync Bemis Balkind In Sync Advertising, Inc. - - - -Feb-13-2014 Groupe Viseo Novedia Group S.A.S. - - - -Feb-13-2014 WABCO Europe BVBA Transics International NV (ENXTBR:TRAN) $65.3 $122.3 1.8x 10.3xFeb-13-2014 Terago Inc. (TSX:TGO) Vancouver Data Center - - - -Feb-12-2014 Acosta, Inc. Anderson Daymon Worldwide, LLC - - - -Feb-12-2014 Daybreak Information Technologies Limited Cernam Ltd - - - -Feb-12-2014 DMW Worldwide, LLC Dakota-Diesel, Inc. - - - -Feb-12-2014 Huawei Investment & Holding Co., Ltd. Fastwire Pty Limited - - - -Feb-12-2014 Sungy Mobile Limited (NasdaqGM:GOMO) Getjar Inc. - $35.7 - -Feb-12-2014 Abnote Australasia Pty Ltd Mailcare Systems Pty Ltd. - - - -Feb-12-2014 Private Investor(s) Media Incruise Co., Ltd. - - - -Feb-12-2014 Powerleader Investment Holding Company Limited Nanjing Baode Cloud Computing Technology Co., Ltd. - $8.3 - -Feb-12-2014 Private Investor(s) Valpak of N.J. Gold Coast - - - -Feb-11-2014 SearchDex, Inc. Altruik, Inc. - - - -Feb-11-2014 RealPage, Inc. (NasdaqGS:RP) Bookt LLC - - - -Feb-11-2014 Digital Planet Communications, Inc. Compass Communications, Inc. - - - -Feb-11-2014 Claranet Limited eChiron S.A $6.8 - - -Feb-11-2014 1WorldDirect Ltd. One World Direct Holdings Inc. - - - -Feb-11-2014 A6 Corporation ReachLogic Media, LLC - - - -Feb-11-2014 Integral Ad Science, Inc. Simplytics Ltd - - - -

Acquirer

g , p yFeb-11-2014 PlanG Holdings Inc. SocialVest Ventures, LLC - - - -Feb-11-2014 DataLogix Holdings, Inc. Spire, LLC - - - -Feb-11-2014 TinyPass, Inc. Swishu, LLC - - - -Feb-11-2014 Visma AS Wallmob A/S PLC - - - -Feb-11-2014 Private Investor(s) Wander Inc. - - - -Feb-11-2014 The Kroger Co. (NYSE:KR) YOU Technology Brand Services, Inc. - - - -Feb-10-2014 CFT Energy Limited E-tivity Corporation (APAC) Pty Ltd - $9.0 - -Feb-10-2014 AccountNow, Inc. Fuze Online, Inc., www.babblebug.com - - - -Feb-10-2014 Intergraph Process, Power & Marine, Inc. Georgia Tech Research Corp., GT STRUDL - - - -Feb-10-2014 Tarsus Group plc (LSE:TRS) HealthScienceMedia Inc. - $14.0 - -Feb-10-2014 Misys Limited IND Group $21.9 - - -Feb-10-2014 Visma AS Logium Oy $6.8 - - -Feb-10-2014 Shopgate GmbH MagCorp - - - -Feb-10-2014 Blue Rubicon Limited Open Road Limited - - - -Feb-10-2014 DoubleVerify, Inc. RealTargeting - - - -Feb-10-2014 EgoSecure GmbH SECUDE AG, FinallySecure - - - -Feb-10-2014 Private Investor(s) Springville S.A. - $0.0 - -Feb-10-2014 Storage Treasures, Inc. Storage Battles Inc. - - - -Feb-10-2014 Körber Medipak GmbH Werum Software & Systems AG - - - -Feb-07-2014 Viewpoint, Inc. Maxwell Systems, Inc. - - - -Feb-07-2014 Synopsys Inc. (NasdaqGS:SNPS) Target Compiler Technologies N.V. - - - -Feb-07-2014 The Toho Information System Co., Ltd. The Toho Information System Co., Ltd. - - - -Feb-06-2014 McGraw-Hill Education, Inc. Area9 Aps - - - -Feb-06-2014 Ericsson (OM:ERIC B) Azuki Systems, Inc. - - - -Feb-06-2014 LinkedIn Corporation (NYSE:LNKD) Bright Media Corporation, Inc. - $120.9 - -Feb-06-2014 Private Investor(s) Buy4Now Ltd. - - - -Feb-06-2014 Arqiva Broadcast Holdings Limited Capablue Ltd - - - -Feb-06-2014 XBT Holding LTD. DDoS.com - $0.1 - -Feb-06-2014 First American Financial Corporation (NYSE:FAF) Interthinx, Inc. - $155.0 - -Feb-06-2014 MiX Telematics Limited (JSE:MIX) Mobitech - - - -Feb-06-2014 Times Internet Ltd. Musicfellas Entertainment Private Limited - - - -




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAFeb-06-2014 OpenTable, Inc. (NasdaqGS:OPEN) Ness Computing, Inc. - $11.3 - -Feb-06-2014 Conversant, Inc. (NasdaqGS:CNVR) SET Media Inc. - $30.0 - -Feb-06-2014 Aeroflex Holding Corp. (NYSE:ARX) Shenick Network Systems Limited $9.4 $28.5 3.0x -Feb-06-2014 Imperva Inc. (NYSE:IMPV) Skyfence Networks Ltd. - $59.9 - -Feb-05-2014 DataMentors, Inc. Attain Group LLC - - - -Feb-05-2014 Renderosity Art Community Blacksmith3D - - - -Feb-05-2014 Cadence Design Systems Inc. (NasdaqGS:CDNS) C2 Design Automation, Inc. - - - -Feb-05-2014 Persistent Systems Limited (BSE:533179) Cloudsquads, Inc. - - - -Feb-05-2014 Amazon.com Inc. (NasdaqGS:AMZN) Double Helix Games LLC - - - -Feb-05-2014 Radiographica Costarricense SA Fullmóvil - - - -Feb-05-2014 PointAcross, Inc. GoldMail, Inc. - - - -Feb-05-2014 Callidus Software Inc. (NasdaqGM:CALD) LeadRocket, Inc. - $3.0 - -Feb-05-2014 adQuota Denmark ApS Mobi Targets, S.L. - - - -Feb-05-2014 Advanced Manufacturing Control Systems Ltd. PC Scale, Inc. $10.0 - - -Feb-05-2014 Boxer Inc. Quantum Apps LLC - - - -Feb-05-2014 United Treatment Centers, Inc. (OTCPK:UTRM) United Treatment Centers, Inc., Prior to Merger with RedTruckSEO - - - -Feb-04-2014 Service Scout, Inc. Betterfly, Inc. - - - -Feb-04-2014 Top Media Holdings S.A. Colite Outdoor, LLC - - - -Feb-04-2014 Vistex, Inc. hawkeye Channel by Vistex - - - -Feb-04-2014 Elysian Capital LLP Wellbeing Software Group Ltd. - - - -

Acquirer

y p g pFeb-03-2014 Tekis AB Alarmos $1.5 - - -Feb-03-2014 Anevia SA BackstreamTV - - - -Feb-03-2014 Xaxis, LLC Bannerconnect B.V. $5.8 - - -Feb-03-2014 Advanced Computer Software Group plc (AIM:ASW) Compass Computer Consultants Ltd. $9.3 $19.4 2.1x 3.6xFeb-03-2014 Private Investor(s) Engrade, Inc. - - - -Feb-03-2014 Open Mobile Media Ltd. M for Mobile - - - -Feb-03-2014 Private Investor(s) RentVM, Inc. - $5.9 - -Feb-03-2014 Rakuten, Inc. (TSE:4755) VI-VI-VI.COM Co.,Ltd. - - - -


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/ Revenue

Forward EV/

EBITDA YTDSEG Software Index $2,313.8 $2,612.6 $791.8 70.3% 19.8% 7.3% 3.1x 15.5x 3.0x 11.6x 3.8% Billing & Service Management $957.8 $1,012.0 $349.0 57.4% 19.2% 4.4% 2.5x 9.4x 2.3x 8.6x -4.0% Business Intelligence $1,372.9 $1,078.4 $402.2 80.8% 8.6% 11.8% 3.0x 17.6x 3.1x 15.6x -2.3% Development Platforms $2,848.1 $2,880.6 $1,134.8 76.6% 19.8% -0.8% 2.9x 11.3x 3.0x 8.5x 3.8% Engineering & PLM $4,666.2 $4,663.0 $1,156.4 84.1% 20.7% 6.2% 3.6x 15.5x 3.0x 11.6x 0.0% Enterprise Resource Planning $7,938.1 $8,540.9 $2,228.0 70.3% 29.0% 2.7% 3.8x 13.2x 3.0x 10.6x 6.4% Financial & Accounting $2,252.4 $2,612.6 $737.8 54.6% 25.9% 7.3% 3.8x 15.7x 3.6x 11.0x -3.4% Gaming $2,704.2 $2,742.8 $2,282.1 64.2% 18.3% 6.1% 1.8x 11.8x 1.6x 9.6x 10.5% Healthcare $1,038.1 $938.9 $560.6 54.6% 15.3% 7.6% 2.6x 15.7x 2.4x 11.0x 12.7% IT Conglomerates $175,893.7 $163,563.7 $83,433.0 70.3% 32.7% 0.9% 3.1x 8.9x 2.9x 8.2x 3.7% Mobile Solutions/Content $881.6 $786.3 $279.6 56.6% 4.4% 22.3% 3.7x 20.3x 3.1x 26.1x 14.7% Networking & Network Performance Managemen $2,313.8 $2,130.6 $791.8 71.1% 13.7% 7.0% 3.2x 17.5x 3.0x 12.2x 9.8% Security $1,635.1 $1,517.4 $225.9 76.6% 9.3% 15.4% 3.1x 10.8x 4.7x 18.9x 9.0% Storage, Data Mgmt & Integration $13,386.8 $9,564.1 $4,582.0 71.5% 24.2% 1.3% 3.0x 9.4x 2.9x 8.0x 2.0% Supply Chain Management & Logistics $1,895.7 $1,814.1 $246.9 61.9% 26.8% 14.1% 6.3x 23.5x 5.7x 19.6x 10.7% Systems Management $11,107.6 $10,257.0 $2,200.3 85.9% 25.8% 13.0% 5.3x 19.8x 4.6x 14.1x 6.5% Vertical - Finance $3,897.4 $4,384.3 $874.2 44.0% 27.0% 8.2% 4.5x 13.3x 4.6x 11.9x -1.8% Vertical - Other $1,412.7 $1,554.1 $416.6 52.0% 8.5% 23.0% 3.1x 31.6x 2.8x 16.3x -7.4%

Category Name

TTM Revenue Growth 7.6%TTM EBITDA Growth -11.8%TTM Earnings Growth -35.4%Gross Profit Margin 68.5%EBITDA Margin 19.0%Net Income Margin -6.4%SG&A Expenses as a % of Total Revenue 57.5%R&D Expenses as a % of Total Revenue 18.0%

Current Ratio 2.4Quick Ratio 2.3Cash as Percent of Market Cap 9.4%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 33Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 8.3%Cash from Operations Growth (YoY) 18.8%Cash from Investing Growth (YoY) -13.6%Cash from Financing Growth (YoY) 86.1%Levered FCF Growth (YoY) 11.1%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved March 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

-6%

-4%

-2%

0%

2%

4%SEG SW Index Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAmdocs Limited DOX $7,099.8 $5,888.3 $3,383.5 35.3% 18.5% 3.6% 1.7x 9.4x 1.6x 7.9x 9.1%CSG Systems International, Inc. CSGS $957.8 $1,012.0 $747.5 49.5% 19.2% -1.2% 1.4x 7.1x 1.3x 6.4x -4.0%Evolving Systems, Inc. EVOL $97.3 $83.6 $25.4 71.7% 26.5% 4.4% 3.3x 12.4x 2.9x 9.6x -13.1%MIND C.T.I. Ltd. MNDO $41.4 $22.0 $18.5 57.4% 13.0% -8.6% 1.2x 9.1x n/a n/a 7.9%NeuStar, Inc NSR $2,191.8 $2,589.1 $902.0 76.4% 43.0% 8.5% 2.9x 6.7x 2.7x 5.7x -27.8%Redknee Solutions TSX:RKN $498.7 $472.0 $188.2 54.7% 3.6% 226.0% 2.5x 70.1x 1.9x 15.9x -12.7%Synchronoss Technologies, Inc. SNCR $1,398.0 $1,334.6 $349.0 58.1% 22.2% 27.5% 3.8x 17.2x 3.2x 9.2x 15.8%

Median: $957.8 $1,012.0 $349.0 57.4% 19.2% 4.4% 2.5x 9.4x 2.3x 8.6x -4.0%

TTM Revenue Growth 0.0%TTM EBITDA Growth 7.4%TTM Earnings Growth -13.8%Gross Profit Margin 0.0%EBITDA Margin 0.0%Net Income Margin 11.8%SG&A Expenses as a % of Total Revenue 20.4%R&D Expenses as a % of Total Revenue 14.7%







-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Billing and Service Management Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $270.6 $191.6 $134.5 85.6% 10.2% -3.1% 1.4x 13.9x 1.5x 7.5x -25.5%MicroStrategy Incorporated MSTR $1,459.3 $1,101.9 $575.9 75.9% 7.0% 1.8% 1.9x 27.3x 1.8x 15.6x 4.5%Pegasystems Inc. PEGA $1,587.6 $1,430.9 $509.0 69.1% 15.9% 10.2% 2.8x 17.6x 2.5x 16.4x -15.0%Progress Software Corporation PRGS $1,286.4 $1,055.0 $334.0 89.9% 28.0% 5.2% 3.2x 11.3x 3.1x 8.5x -2.3%PROS Holdings PRO $971.1 $926.4 $144.8 70.2% 6.9% 23.0% 6.4x 92.5x 4.8x 61.5x -12.4%Qlik Technologies QLIK $2,718.1 $2,490.4 $470.5 86.9% 2.5% 21.1% 5.3x 213.8x 4.5x 59.1x 21.4%Varonis Systems, Inc. VRNS $177.5 $177.5 $74.6 91.3% -6.8% 39.7% 2.4x n/a n/a n/a 0.0%Verisk VRSK $10,629.9 $11,736.1 $1,595.7 61.0% 46.1% 13.3% 7.4x 15.9x 6.6x 14.4x -2.2%Teradata NYSE:TDC $7,310.5 $6,889.5 $2,692.0 54.7% 23.1% 1.0% 2.6x 11.1x 2.4x 8.8x 2.7%

Median: $1,372.9 $1,078.4 $402.2 80.8% 8.6% 11.8% 3.0x 17.6x 3.1x 15.6x -2.3%

TTM Revenue Growth 11.8%TTM EBITDA Growth -5.5%TTM Earnings Growth -10.0%Gross Profit Margin 80.8%EBITDA Margin 8.6%Net Income Margin 7.5%SG&A Expenses as a % of Total Revenue 48.5%R&D Expenses as a % of Total Revenue 17.1%


Levered FCF Margin 10.5%Cash from Operations Growth (YoY) -11.3%Cash from Investing Growth (YoY) -26.2%Cash from Financing Growth (YoY) 6.0%Levered FCF Growth (YoY) 14.0%





-10%

-8%

-6%

-4%

-2%

0%

2%

4%Business Intelligence Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $270.6 $191.6 $134.5 85.6% 10.2% -3.1% 1.4x 13.9x 1.5x 7.5x -25.5%Adobe Systems Incorporated ADBE $34,081.9 $32,422.2 $4,055.2 85.5% 19.0% -7.9% 8.0x 42.1x 8.0x 30.6x 15.8%BSQUARE Corporation BSQR $40.4 $19.6 $92.1 16.3% -2.5% -9.2% 0.2x n/a n/a n/a -1.9%Compuware Corporation CPWR $2,389.2 $2,301.1 $946.1 62.2% 13.3% -2.5% 2.4x 18.3x 3.0x 13.7x -1.8%Magic Software Enterprises Ltd. MGIC $316.5 $287.5 $145.0 40.7% 19.1% 14.7% 2.0x 10.4x 1.8x n/a 20.9%Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9%Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7%Progress Software Corporation PRGS $1,286.4 $1,055.0 $334.0 89.9% 28.0% 5.2% 3.2x 11.3x 3.1x 8.5x -2.3%Red Hat, Inc. RHT $11,180.8 $10,214.3 $1,482.1 84.8% 20.4% 16.0% 6.9x 33.7x 6.0x 21.3x 5.7%Software AG XTRA:SOW $3,307.1 $3,460.0 $1,323.5 68.2% 25.6% -8.1% 2.6x 10.2x n/a n/a 17.3%

Median: $2,848.1 $2,880.6 $1,134.8 76.6% 19.8% -0.8% 2.9x 11.3x 3.0x 8.5x 3.8%

TTM Revenue Growth -0.8%TTM EBITDA Growth -4.5%TTM Earnings Growth -8.0%Gross Profit Margin 76.6%EBITDA Margin 19.8%Net Income Margin 11.4%SG&A Expenses as a % of Total Revenue 39.5%R&D Expenses as a % of Total Revenue 13.2%


Levered FCF Margin 19.2%Cash from Operations Growth (YoY) -7.7%Cash from Investing Growth (YoY) -26.2%Cash from Financing Growth (YoY) 2.8%Levered FCF Growth (YoY) -5.7%





-8%

-6%

-4%

-2%

0%

2%

4%Development Platforms Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDANSYS, Inc. ANSS $7,728.9 $6,985.9 $861.3 87.4% 46.8% 7.9% 8.1x 17.3x 7.3x 14.9x -2.9%Autodesk, Inc. ADSK $11,734.5 $10,213.8 $2,273.9 87.9% 18.8% -1.7% 4.5x 23.9x 4.3x 23.0x 6.6%Cadence Design Systems, Inc CDNS $4,431.8 $4,123.6 $1,460.1 86.3% 20.9% 10.1% 2.8x 13.5x 2.6x 8.3x 9.4%Cimatron Ltd. CIMT $99.6 $86.6 $44.2 86.8% 14.7% 4.6% 2.0x 13.3x 1.8x n/a 5.4%Dassault Systèmes DSY $14,250.1 $12,303.1 $2,845.3 87.3% 31.2% 1.9% 4.3x 13.9x n/a n/a -6.6%GSE Systems Inc. GVP $32.1 $14.5 $48.0 27.7% -5.2% -12.1% 0.3x n/a 0.3x n/a 10.8%Mentor Graphics Corp MENT $2,480.2 $2,432.2 $1,156.4 84.1% 20.7% 6.2% 2.1x 10.2x 2.0x 8.3x -8.7%Parametric Technology Corporation PTC $4,666.2 $4,663.0 $1,298.7 71.6% 22.3% 3.3% 3.6x 16.1x 3.4x 12.5x 13.3%PDF Solutions Inc PDFS $615.5 $526.1 $101.5 61.1% 32.5% 13.3% 5.2x 16.0x 4.7x 10.7x -18.6%Stratasys, Inc. SSYS $6,196.1 $5,581.8 $484.4 46.7% 12.5% 125.0% 11.5x 92.4x 8.9x 29.7x -5.1%Synopsys Inc SNPS $6,225.0 $5,429.4 $1,966.0 82.3% 18.3% 8.9% 2.8x 15.1x 2.6x 8.8x 0.0%

Median: $4,666.2 $4,663.0 $1,156.4 84.1% 20.7% 6.2% 3.6x 15.5x 3.0x 11.6x 0.0%

TTM Revenue Growth 6.2%TTM EBITDA Growth 6.1%TTM Earnings Growth 9.9%Gross Profit Margin 84.1%EBITDA Margin 20.7%Net Income Margin 11.4%SG&A Expenses as a % of Total Revenue 36.2%R&D Expenses as a % of Total Revenue 17.9%


Levered FCF Margin 18.8%Cash from Operations Growth (YoY) 10.5%Cash from Investing Growth (YoY) 51.9%Cash from Financing Growth (YoY) -136.1%Levered FCF Growth (YoY) -0.1%





-8%

-6%

-4%

-2%

0%

2%

4%Engineering & PLM Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $287.7 $221.9 $99.9 55.9% 15.2% -3.2% 2.2x 14.6x 2.1x 10.2x 6.4%Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7%QAD Inc. QADA $289.7 $239.5 $258.6 56.0% 4.2% 2.8% 0.9x 22.0x 0.9x 12.0x 11.8%Sage Group plc LSE:SGE $7,938.1 $8,540.9 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x n/a n/a 13.6%SAP DB:SAP $96,215.3 $98,308.5 $23,159.1 70.3% 32.7% 3.7% 4.2x 13.0x 4.0x 11.1x -4.4%

Median: $7,938.1 $8,540.9 $2,228.0 70.3% 29.0% 2.7% 3.8x 13.2x 3.0x 10.6x 6.4%



Levered FCF Margin 16.8%Cash from Operations Growth (YoY) 4.1%Cash from Investing Growth (YoY) 30.2%Cash from Financing Growth (YoY) 23.8%Levered FCF Growth (YoY) -16.6%





-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%Enterprise Resource Planning Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDACI Worldwide, Inc. ACIW $2,252.4 $2,925.5 $864.9 60.2% 21.6% 29.8% 3.4x 15.7x 2.7x 10.0x -4.7%Bottomline Technologies EPAY $1,331.8 $1,269.8 $270.1 54.7% 10.8% 11.6% 4.7x 43.7x 4.0x 18.4x 2.0%DST Systems, Inc. DST $3,934.7 $4,239.0 $2,658.6 17.4% 16.2% 3.2% 1.6x 9.8x 2.0x 8.7x 4.6%Evertec EVTC $1,899.2 $2,612.6 $357.2 54.6% 43.7% 4.6% 7.3x 16.7x 6.9x 13.8x -3.4%Fair Isaac Corporation FICO $1,875.9 $2,257.9 $737.8 68.7% 25.9% 6.0% 3.1x 11.8x 2.9x 10.8x -12.7%Fiserv FISV $14,773.0 $18,221.0 $4,814.0 43.0% 28.9% 8.5% 3.8x 13.1x 3.6x 11.0x -0.3%Intuit Inc INTU $22,141.0 $21,309.0 $4,129.0 86.2% 31.4% 12.2% 5.2x 16.4x 4.5x 11.1x 3.2%Model N, Inc MODN $266.4 $163.8 $101.1 54.5% 2.5% 14.2% 1.6x 65.1x 2.1x n/a -45.0%NetSol Technologies Inc. KASE:NETS $28.0 $30.1 $27.3 45.6% 35.8% 2.3% 1.1x 3.1x n/a n/a -25.8%Sage Group plc LSE:SGE $7,938.1 $8,540.9 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x n/a n/a 13.6%Qiwi plc QIWI $2,429.3 $2,197.1 $339.0 45.5% 22.4% n/a 6.5x 28.9x 11.3x 24.9x -16.3%

Median: $2,252.4 $2,612.6 $737.8 54.6% 25.9% 7.3% 3.8x 15.7x 3.6x 11.0x -3.4%



Levered FCF Margin 16.0%Cash from Operations Growth (YoY) 15.7%Cash from Investing Growth (YoY) -7.0%Cash from Financing Growth (YoY) -23.7%Levered FCF Growth (YoY) 31.7%





-10%

-8%

-6%

-4%

-2%

0%

2%

4%Financial & Accounting Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDActivision Blizzard ATVI $13,456.6 $13,706.6 $4,583.0 66.6% 32.3% -5.6% 3.0x 9.3x 3.0x 8.5x 7.1%Electronic Arts Inc. EA $8,851.2 $7,356.2 $3,661.0 61.8% 6.1% -7.5% 2.0x 33.0x 1.8x 9.8x 25.2%GameLoft SA ENXTPA:GF $907.1 $823.4 $289.2 83.2% 15.2% 21.8% 2.8x 18.8x n/a n/a 2.3%Konami Corporation TSE: 9766 $3,470.6 $3,432.7 $2,109.3 30.8% 11.3% -4.1% 1.6x 14.3x 1.5x 10.2x 8.2%Take-Two Interactive TTWO $1,937.7 $1,414.3 $2,454.8 42.2% 21.4% 130.9% 0.6x 2.7x 1.0x 9.4x 12.8%Ubisoft Entertainment ENXTPA:UB $1,855.7 $2,052.9 $1,719.3 72.7% 37.7% 16.3% 1.2x 3.2x n/a n/a 20.0%

Median: $2,704.2 $2,742.8 $2,282.1 64.2% 18.3% 6.1% 1.8x 11.8x 1.6x 9.6x 10.5%








-10%

-5%

0%

5%

10%

15%Gaming Software Stock Market Return: January - February 2014

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAccretive Health AH $805.4 $609.0 $973.6 20.7% 2.9% 32.2% 0.6x 21.2x 0.6x 10.3x -9.4%Allscripts Healthcare Solutions Inc. MDRX $3,278.3 $3,776.8 $1,373.1 46.0% 2.2% -5.1% 2.8x 122.6x 2.6x 16.5x 20.7%Cerner Corporation CERN $21,108.0 $20,394.4 $2,840.6 84.3% 26.2% 8.8% 7.2x 27.4x 6.1x 17.8x 11.4%Computer Programs and Sys, Inc. CPSI $763.6 $741.2 $200.9 46.7% 26.7% 9.6% 3.7x 13.8x 3.5x 12.3x 13.9%MedAssets MDAS $1,501.1 $2,271.9 $680.4 77.7% 30.3% 6.3% 3.3x 11.0x 3.2x 9.6x 24.1%Merge Healthcare MRGE $236.2 $453.7 $231.7 58.6% 13.9% -6.9% 2.0x 14.1x 2.1x 10.9x -0.8%Omnicell, Inc. OMCL $1,025.0 $920.5 $380.6 53.4% 14.1% 21.2% 2.4x 17.2x 2.2x 11.1x 14.8%Quality Systems, Inc. QSII $1,051.3 $957.3 $440.8 55.8% 16.5% -3.7% 2.2x 13.2x 2.1x 9.6x -15.8%

Median: $1,038.1 $938.9 $560.6 54.6% 15.3% 7.6% 2.6x 15.7x 2.4x 11.0x 12.7%



Levered FCF Margin 9.4%Cash from Operations Growth (YoY) -1.8%Cash from Investing Growth (YoY) 0.9%Cash from Financing Growth (YoY) 12.7%Levered FCF Growth (YoY) 27.1%





-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Healthcare Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDHewlett Packard HPQ $56,845.3 $65,667.3 $112,093.0 23.4% 11.8% -5.6% 0.6x 5.0x 0.6x 4.8x 8.0%IBM IBM $192,825.1 $221,627.1 $99,751.0 48.6% 25.1% -4.6% 2.2x 8.9x 2.2x 8.0x 0.4%Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9%Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7%SAP AG DB:SAP $96,215.3 $98,308.5 $23,159.1 70.3% 32.7% 3.7% 4.2x 13.0x 4.0x 11.1x -4.4%

Median: $175,893.7 $163,563.7 $83,433.0 70.3% 32.7% 0.9% 3.1x 8.9x 2.9x 8.2x 3.7%



Levered FCF Margin 18.3%Cash from Operations Growth (YoY) 0.3%Cash from Investing Growth (YoY) 29.0%Cash from Financing Growth (YoY) -14.9%Levered FCF Growth (YoY) -28.9%





-8%

-6%

-4%

-2%

0%

2%

4%IT Conglomerates Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDBango PLC BGO $121.3 $110.1 $14.7 26.7% -32.4% n/a 7.5x n/a n/a n/a 17.1%Glu Mobile, Inc. GLUU $392.1 $363.6 $105.6 68.9% -12.2% -2.4% 3.4x n/a 2.5x 67.5x 29.0%Gree TSE:3632 $2,564.1 $2,178.7 $1,358.5 79.6% 31.6% -12.7% 1.6x 5.1x n/a n/a 11.4%Millennial Media Inc MM $642.1 $542.9 $259.2 40.3% -4.3% 45.9% 2.1x n/a 1.3x 26.1x -17.9%Myriad Group AG MYRN $157.6 $175.7 $52.6 22.1% -16.2% 3.0% 3.3x n/a n/a n/a 13.6%NQ Mobile Inc. NQ $1,035.8 $886.4 $158.9 64.8% 3.0% 113.0% 5.6x 186.4x 3.1x 9.9x 20.9%Opera OB:OPERA $1,801.5 $1,635.9 $300.1 44.4% 27.5% 38.9% 5.5x 19.8x n/a n/a -0.3%Qihoo 360 Technology Co. Ltd QIHU $13,458.2 $13,066.1 $552.4 87.6% 26.4% 91.5% 23.7x 89.5x 13.9x 28.5x 33.9%Pandora Media P $7,387.6 $7,043.2 $588.3 37.0% -7.1% 53.5% 12.0x n/a 7.8x 138.1x 39.8%Synchronoss Technologies, Inc. SNCR $1,398.0 $1,334.6 $349.0 58.1% 22.2% 27.5% 3.8x 17.2x 3.2x 9.2x 15.8%Tangoe TNGO $727.4 $686.3 $188.9 55.0% 8.7% 22.3% 3.6x 41.8x 3.1x 18.2x 5.3%TeleCommunication Systems TSYS $127.4 $213.0 $362.3 38.4% 5.8% -25.7% 0.6x 10.1x 0.6x 6.0x -6.1%TeleNav TNAV $232.3 $56.7 $183.5 61.1% 1.5% -6.2% 0.3x 20.3x 0.4x n/a -6.8%Zynga, Inc ZNGA $4,437.0 $3,311.5 $873.3 71.6% 8.4% -31.8% 3.8x 45.0x 4.1x 36.1x 28.1%

Median: $881.6 $786.3 $279.6 56.6% 4.4% 22.3% 3.7x 20.3x 3.1x 26.1x 14.7%

TTM Revenue Growth 22.3%TTM EBITDA Growth 7.0%TTM Earnings Growth -3.8%Gross Profit Margin 56.6%EBITDA Margin 4.4%Net Income Margin -0.8%SG&A Expenses as a % of Total Revenue 37.9%R&D Expenses as a % of Total Revenue 18.6%


Levered FCF Margin 6.5%Cash from Operations Growth (YoY) 31.6%Cash from Investing Growth (YoY) 21.9%Cash from Financing Growth (YoY) 81.9%Levered FCF Growth (YoY) 188.6%





-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Mobile Solutions/Content Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAllot Communications Ltd. ALLT $547.8 $426.2 $96.5 72.2% -1.8% -7.8% 4.4x n/a 3.7x 22.7x 11.1%Aruba Networks, Inc. ARUN $2,238.4 $1,960.2 $637.5 69.9% 1.4% 11.6% 3.1x 213.6x 2.6x 12.2x 18.5%Barracuda Networks, Inc. CUDA $1,828.6 $1,712.0 $225.9 76.6% -0.1% n/a 7.6x n/a 6.8x 33.3x -3.3%Brocade Communications Systems, BRCD $4,164.9 $3,765.0 $2,198.7 64.0% 24.4% -3.0% 1.7x 7.0x 1.7x 5.8x 8.5%Cisco Systems, Inc. CSCO $112,297.9 $82,404.9 $47,873.0 59.4% 27.1% 1.3% 1.7x 6.3x 1.8x 5.1x -0.9%Cyan, Inc. CYNI $156.0 $96.9 $116.6 41.3% -29.9% 21.6% 0.8x n/a 1.0x n/a -35.6%Compuware Corporation CPWR $2,389.2 $2,301.1 $946.1 62.2% 13.3% -2.5% 2.4x 18.3x 3.0x 13.7x -2.3%F5 Networks, Inc. FFIV $8,475.3 $7,897.1 $1,522.3 82.6% 30.8% 7.2% 5.2x 16.8x 4.5x 11.6x 26.4%Gigamon, LLC GIMO $981.1 $842.9 $140.3 78.0% -19.5% 45.1% 6.0x n/a 4.6x 26.7x 13.5%Juniper Networks, Inc. JNPR $13,399.9 $11,553.3 $4,669.1 63.2% 17.0% 7.0% 2.5x 14.5x 2.3x 9.2x 19.0%Radware Ltd. RDWR $787.0 $652.2 $193.0 81.0% 14.2% 2.0% 3.4x 23.8x 3.1x 15.9x -1.5%Riverbed Technology, Inc. RVBD $3,564.5 $3,630.2 $1,041.0 72.9% 14.2% 24.4% 3.5x 24.6x 3.2x 10.6x 23.6%

Median: $2,313.8 $2,130.6 $791.8 71.1% 13.7% 7.0% 3.2x 17.5x 3.0x 12.2x 9.8%



Levered FCF Margin 21.5%Cash from Operations Growth (YoY) -6.1%Cash from Investing Growth (YoY) 27.6%Cash from Financing Growth (YoY) -5.5%Levered FCF Growth (YoY) 26.9%





March 2014 Monthly Flash Report

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Networking/Network Performance Mgmt Software Stock Market Return: January - February

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/ Revenue

Forward EV/

EBITDA YTDAVG Technologies N.V. AVG $1,019.7 $1,007.4 $407.1 83.1% 33.2% 14.4% 2.5x 7.5x 2.6x 7.8x 10.6%Barracuda Networks, Inc. CUDA $1,828.6 $1,712.0 $225.9 76.6% -0.1% n/a 7.6x n/a 6.8x 33.3x -3.3%Check Point Software Tech Ltd. CHKP $12,964.9 $11,798.1 $1,394.1 88.4% 55.4% 3.8% 8.5x 15.3x 8.0x 13.8x 4.7%Cyren CYRN $99.0 $98.4 $32.2 77.7% -5.8% 34.9% 3.1x n/a 2.9x n/a 26.0%Fortinet Inc. FTNT $3,784.1 $3,292.7 $615.3 70.6% 14.3% 15.3% 5.4x 37.5x 4.7x 24.0x 21.7%Guidance Software, Inc. GUID $316.4 $296.7 $110.5 66.1% -12.3% -14.6% 2.7x n/a 2.5x 29.5x 9.0%Imperva IMPV $1,635.1 $1,517.4 $137.8 78.4% -16.5% 32.2% 11.0x n/a 8.6x n/a 29.0%Palo Alto Networks, Inc PANW $5,269.7 $4,831.5 $482.9 73.2% -3.7% 49.2% 10.0x n/a 7.3x 53.6x 27.8%Proofpoint, Inc. PFPT $1,498.0 $1,401.5 $137.9 69.8% -14.6% 29.8% 10.2x n/a 8.0x n/a 27.9%Sourcefire, Inc. FIRE $19.7 $19.0 $18.9 38.5% 9.3% 25.2% 1.0x 10.8x n/a n/a -12.8%Symantec Corporation SYMC $14,854.6 $13,058.6 $6,799.0 83.6% 28.8% -0.6% 1.9x 6.7x 2.0x 6.3x -7.8%Trend Micro TSE:4704 $4,485.4 $3,108.3 $1,030.1 82.1% 33.9% 15.4% 3.0x 8.9x n/a n/a -4.7%VASCO Data Security International VDSI $309.4 $210.8 $155.0 64.4% 10.1% 0.7% 1.4x 13.5x 1.3x 9.0x 5.1%

Median: $1,635.1 $1,517.4 $225.9 76.6% 9.3% 15.4% 3.1x 10.8x 4.7x 18.9x 9.0%



Levered FCF Margin 15.3%Cash from Operations Growth (YoY) 21.7%Cash from Investing Growth (YoY) 19.7%Cash from Financing Growth (YoY) -11.7%Levered FCF Growth (YoY) 27.1%





-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Security Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDBrocade Communications Systems, BRCD $4,164.9 $3,765.0 $2,198.7 64.0% 24.4% -3.0% 1.7x n/a 1.7x 5.8x 8.5%CA, Inc. CA $15,000.2 $13,917.2 $4,582.0 85.8% 34.2% -2.1% 3.0x 8.9x 3.1x 7.9x 1.8%Cisco Systems, Inc. CSCO $112,297.9 $82,404.9 $47,873.0 59.4% 27.1% 1.3% 1.7x 6.3x 1.8x 5.1x -0.9%CommVault Systems, Inc. CVLT $3,271.5 $2,770.9 $567.8 87.3% 18.2% 20.4% 4.9x 26.8x 4.2x 16.5x -7.0%EMC EMC $53,415.9 $51,395.9 $23,222.0 62.3% 24.2% 6.9% 2.2x 9.2x 2.1x 6.9x 5.6%FalconStor Software, Inc. FALC $83.1 $62.5 $58.6 74.2% -12.3% -22.2% 1.1x n/a n/a n/a 31.1%IBM IBM $192,825.1 $221,627.1 $99,751.0 48.6% 25.1% -4.6% 2.2x 8.9x 2.2x 8.0x 0.4%Informatica Corporation INFA $4,538.9 $3,861.4 $948.2 83.2% 17.3% 16.8% 4.1x 23.5x 3.6x 13.4x 2.0%Microsoft Corporation MSFT $318,000.7 $258,703.7 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.1x 2.9x 8.2x 3.9%NetApp, Inc. NTAP $13,386.8 $9,312.7 $6,392.6 61.2% 15.2% 1.2% 1.5x 9.6x 1.4x 6.1x 0.4%Oracle Corporation ORCL $175,893.7 $163,563.7 $37,552.0 81.6% 43.4% 0.9% 4.4x 10.0x 4.2x 8.4x 3.7%Splunk, Inc. SPLK $10,461.6 $9,564.1 $302.6 88.9% -22.7% 52.1% 31.6x n/a 23.6x n/a 29.8%TIBCO Software Inc. TIBX $3,538.0 $3,333.1 $1,070.0 71.3% 18.1% 4.4% 3.1x 17.2x 2.9x 11.2x -5.8%Varonis Systems, Inc. VRNS $177.5 $177.5 $74.6 91.3% -6.8% 39.7% 2.4x n/a n/a n/a 0.0%

Median: $13,386.8 $9,564.1 $4,582.0 71.5% 24.2% 1.3% 3.0x 9.4x 2.9x 8.0x 2.0%



Levered FCF Margin 20.0%Cash from Operations Growth (YoY) -4.3%Cash from Investing Growth (YoY) 24.2%Cash from Financing Growth (YoY) 17.5%Levered FCF Growth (YoY) -2.9%






-8%

-6%

-4%

-2%

0%

2%

4%

6%Storage, Data Management & Integration Software Stock Market Return: January - February

2014

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

SEG Software Index Category: Supply Chain Management & Logistics


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $287.7 $221.9 $99.9 55.9% 15.2% -3.2% 2.2x 14.6x 2.1x 10.2x 6.4%Aspen Technology, Inc. AZPN $4,342.2 $4,123.5 $349.0 85.6% 27.7% 27.3% 11.8x 42.7x 10.3x 32.0x 13.0%Manhattan Associates, Inc. MANH $2,896.5 $2,763.6 $414.5 56.3% 25.8% 10.2% 6.7x 25.8x 6.1x 21.6x 28.9%The Descartes Systems Group Inc. TSX:DSG $894.9 $864.7 $144.8 67.5% 28.2% 18.0% 6.0x 21.2x 5.2x 17.6x 8.5%

Median: $1,895.7 $1,814.1 $246.9 61.9% 26.8% 14.1% 6.3x 23.5x 5.7x 19.6x 10.7%








-10%

-5%

0%

5%

10%

15%Supply Chain Management & Logistics Software Stock Market Return: January - February 2014

Supply Chain Management & Logistics S&P NASDAQ SEG SW Index

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCA Technologies CA $15,000.2 $13,917.2 $4,582.0 85.8% 34.2% -2.1% 3.0x 8.9x 3.1x 7.9x 1.8%Citrix Systems, Inc. CTXS $11,034.4 $10,299.7 $2,918.4 86.1% 22.2% 12.8% 3.5x 15.9x 3.2x 11.3x -3.9%Netscout Systems, Inc. NTCT $1,569.7 $1,424.7 $382.4 78.9% 23.5% 11.8% 3.7x 15.8x 3.4x 11.6x 31.7%Red Hat, Inc. RHT $11,180.8 $10,214.3 $1,482.1 84.8% 20.4% 16.0% 6.9x 33.7x 6.0x 21.3x 5.7%SolarWinds, Inc. SWI $3,469.7 $3,324.4 $335.4 91.7% 41.7% 24.7% 9.9x 23.8x 8.0x 17.1x 22.2%VMWare, Inc. VMW $41,376.6 $35,651.6 $5,207.0 86.0% 28.1% 13.1% 6.8x 24.4x 5.9x 16.6x 7.3%

Median: $11,107.6 $10,257.0 $2,200.3 85.9% 25.8% 13.0% 5.3x 19.8x 4.6x 14.1x 6.5%








-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Systems Management Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAdvent Software, Inc. ADVS $1,575.9 $1,847.1 $383.0 71.1% 18.6% 6.7% 4.8x 25.9x 4.6x 13.2x -10.5%Broadridge Financial BR $4,510.2 $4,794.0 $2,507.6 29.7% 19.9% 7.3% 1.9x 9.6x 1.8x 8.9x -3.9%Fidessa LSE:FDSA $1,619.6 $1,497.3 $462.2 21.2% 19.8% 0.1% 3.2x 16.3x n/a n/a 16.8%Jack Henry & Associates, Inc. JKHY $4,969.2 $4,823.4 $1,177.9 42.5% 34.0% 9.8% 4.1x 12.0x 3.8x 11.1x 0.3%MSCI, Inc. MSCI $5,097.0 $5,620.6 $1,035.7 68.3% 43.5% 9.0% 5.4x 12.5x 5.1x 11.9x 1.3%SS&C Corporation SSNC $3,284.6 $3,974.7 $712.7 45.4% 39.5% 29.1% 5.6x 14.1x 5.2x 12.5x -13.2%

Median: $3,897.4 $4,384.3 $874.2 44.0% 27.0% 8.2% 4.5x 13.3x 4.6x 11.9x -1.8%









-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Vertical - Finance Software Stock Market Return:January - February 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/ Revenue

Forward EV/

EBITDA YTDBlackbaud, Inc. BLKB $1,412.7 $1,554.1 $503.8 53.8% 20.0% 12.6% 3.1x 15.4x 2.8x 14.9x -15.8%Constellation TSX:CSU $4,683.1 $4,777.2 $1,131.5 31.9% 8.5% 36.6% 4.2x 49.9x 3.3x 16.3x 4.5%EPIQ Systems, Inc. EPIQ $505.6 $777.7 $438.7 52.0% 7.1% 27.2% 1.8x 25.0x 1.6x 7.3x -10.1%Guidewire Software, Inc. GWRE $3,590.7 $3,062.0 $303.9 52.6% 1.2% 25.1% 10.1x 832.3x 8.8x 82.4x 11.4%Micros Systems MCRS $4,177.0 $3,553.1 $1,304.0 52.4% 19.7% 8.2% 2.7x 13.9x 2.6x 11.5x -2.0%PROS Holdings PRO $971.1 $926.4 $144.8 70.2% 6.9% 23.0% 6.4x 92.5x 4.8x 61.5x -12.4%Sapiens International SPNS $342.5 $272.2 $135.4 37.2% 14.6% 18.8% 2.0x 13.8x 1.7x 15.5x 0.8%Silver Spring Networks, Inc. SSNI $840.4 $696.2 $326.9 35.3% -10.8% 66.1% 2.1x n/a 1.9x 43.8x -15.1%Tyler Technologies, Inc. TYL $3,087.7 $3,008.8 $416.6 46.4% 18.9% 14.7% 7.2x 38.2x 6.4x 28.1x -7.4%

Median: $1,412.7 $1,554.1 $416.6 52.0% 8.5% 23.0% 3.1x 31.6x 2.8x 16.3x -7.4%








-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Vertical - Other Software Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $1,361.9 $1,248.4 $177.4 69.6% -0.2% 27.6% 7.6x 36.4x 6.1x 28.4x 8.9% CRM & Marketing $776.7 $669.1 $177.0 71.1% 0.3% 31.0% 3.5x 179.0x 3.0x 28.4x 7.3% ERP & Supply Chain $1,361.9 $1,248.4 $177.4 69.6% -0.2% 35.4% 9.2x 27.7x 8.4x 42.5x 8.6% Vertically Focused $1,388.3 $1,353.8 $276.8 68.6% 12.0% 26.2% 6.0x 36.4x 5.1x 14.9x 11.7% Workforce Management $3,082.5 $2,993.0 $185.1 62.4% -7.4% 26.3% 11.2x 862.6x 9.1x 37.8x 8.9% SaaS Other $1,103.9 $1,134.2 $145.8 70.4% -5.8% 27.6% 7.6x 36.0x 6.1x 20.6x 10.7%

Category Name

TTM Revenue Growth 27.6%TTM EBITDA Growth -11.8%TTM Earnings Growth -35.4%Gross Profit Margin 69.6%EBITDA Margin -0.2%Net Income Margin -6.4%SG&A Expenses as a % of Total Revenue 57.5%R&D Expenses as a % of Total Revenue 18.0%







-10%

-5%

0%

5%

10%

15%SEG SaaS Index Stock Market Return: January - February 2014

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBazaarvoice, Inc BV $498.0 $423.3 $176.1 67.9% -20.0% 32.1% 2.4x n/a 2.2x n/a -13.0%Constant Contact CTCT $845.3 $722.1 $285.4 71.4% 10.7% 13.2% 2.5x 23.7x 2.2x 12.3x -8.8%Cvent NYSE:CVT $1,592.5 $1,434.8 $111.1 70.8% 5.2% 33.1% 12.9x 249.8x 10.3x 108.6x 2.1%LivePerson LPSN $708.1 $616.2 $177.8 76.1% 3.2% 13.0% 3.5x 108.2x 3.1x 28.4x -11.0%Marketo MKTO $1,609.3 $1,488.5 $95.9 60.4% -42.2% 64.2% 15.5x n/a 11.1x n/a 77.5%Marin Software MRIN $377.9 $279.7 $77.3 59.8% -38.3% 29.8% 3.6x n/a 2.9x n/a 12.6%Salesforce.com CRM $37,609.1 $39,278.9 $4,071.0 76.2% 2.0% 33.5% 9.6x 471.3x 7.4x 43.9x 13.7%Vocus VOCS $282.1 $326.2 $186.9 79.6% -1.5% 9.4% 1.7x n/a 1.8x 14.4x 19.4%

Median: $776.7 $669.1 $177.0 71.1% 0.3% 31.0% 3.5x 179.0x 3.0x 28.4x 7.3%



Levered FCF Margin 6.5%Cash from Operations Growth (YoY) 2.4%Cash from Investing Growth (YoY) -23.4%Cash from Financing Growth (YoY) 235.0%Levered FCF Growth (YoY) -16.6%






-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%CRM & Marketing SaaS Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDE2open, Inc EOPN $798.2 $790.8 $69.5 61.3% -26.8% -6.6% 11.4x n/a 9.2x n/a 14.7%Fleetmatics FLTX $1,361.9 $1,248.4 $177.4 75.3% 25.5% 39.2% 7.0x 27.7x 5.4x 20.3x -14.9%Netsuite N $8,595.4 $8,397.8 $414.5 67.4% -9.3% 34.2% 20.3x n/a 15.6x 199.4x 12.9%SciQuest SQI $703.0 $668.8 $90.2 69.6% -0.2% 35.8% 7.4x n/a 6.0x 29.6x 8.6%SPS Commerce SPSC $1,094.0 $962.7 $104.4 69.6% 9.4% 35.4% 9.2x 98.0x 7.6x 55.3x 5.3%Unit 4 ENXTAM:U $1,582.6 $1,742.4 $675.5 92.7% 18.6% 4.4% 2.6x 13.8x n/a n/a 1.7%Workday, Inc. WDAY $19,878.3 $18,473.1 $468.9 62.4% -22.9% 71.4% 39.4x n/a 25.2x n/a 34.4%

Median: $1,361.9 $1,248.4 $177.4 69.6% -0.2% 35.4% 9.2x 27.7x 8.4x 42.5x 8.6%



Levered FCF Margin 12.1%Cash from Operations Growth (YoY) 81.4%Cash from Investing Growth (YoY) 4.3%Cash from Financing Growth (YoY) -11.4%Levered FCF Growth (YoY) 15.9%






-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%ERP & Supply Chain SaaS Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAthenahealth, Inc ATHN $7,247.1 $7,406.2 $595.0 59.9% 9.2% 40.9% 12.4x 135.1x 9.9x 56.7x 47.4%DealerTrack TRAK $2,387.6 $2,425.0 $481.5 42.4% 12.0% 23.8% 5.0x 41.9x 3.0x 13.2x 11.7%Ebix Inc. EBIX $622.9 $644.6 $207.9 80.4% 40.3% 9.8% 3.1x 7.7x 3.1x 8.4x 13.3%Ellie Mae ELLI $856.3 $776.6 $128.5 74.5% 19.6% 26.2% 6.0x 30.9x 5.1x 16.5x 15.6%Medidata Solutions MDSO $3,472.4 $3,461.0 $276.8 74.7% 11.5% 26.8% 12.5x 108.6x 10.1x 42.3x 8.6%RealPage RP $1,388.3 $1,353.8 $377.0 60.7% 15.2% 17.0% 3.6x 23.7x 3.1x 12.9x -21.0%Textura Corp. TXTR $667.5 $592.3 $40.8 68.6% -81.5% 70.1% 14.5x n/a 8.9x n/a -10.2%Veeva Systems Inc. VEEV $4,398.6 $4,125.2 $187.1 59.9% 20.5% n/a 22.0x 107.3x 16.6x 77.8x 9.2%

Median: $1,388.3 $1,353.8 $276.8 68.6% 12.0% 26.2% 6.0x 36.4x 5.1x 14.9x 11.7%









-10%

-5%

0%

5%

10%

15%Vertically Focused SaaS Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDCallidus Software Inc. CALD $554.8 $535.2 $112.3 57.5% 0.3% 18.3% 4.8x 1646.6x 4.2x 37.3x -5.6%Cornerstone OnDemand CSOD $3,082.5 $2,993.0 $185.1 71.1% -16.1% 57.0% 16.2x n/a 11.1x n/a 10.3%Halogen Software, Inc. TSX:HGN $230.8 $177.2 $48.0 74.8% -7.4% 26.3% 3.7x n/a 3.1x n/a -14.0%The Ultimate Software Group, Inc. ULTI $4,697.3 $4,616.8 $410.4 58.9% 14.3% 23.5% 11.2x 78.6x 9.1x 38.2x 8.9%Workday, Inc. WDAY $19,878.3 $18,473.1 $468.9 62.4% -22.9% 71.4% 39.4x n/a 25.2x n/a 34.4%

Median: $3,082.5 $2,993.0 $185.1 62.4% -7.4% 26.3% 11.2x 862.6x 9.1x 37.8x 8.9%

TTM Revenue Growth 26.3%TTM EBITDA Growth 18.6%TTM Earnings Growth 22.7%Gross Profit Margin 62.4%EBITDA Margin -7.4%Net Income Margin -21.8%SG&A Expenses as a % of Total Revenue 53.3%R&D Expenses as a % of Total Revenue 16.5%








-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Workforce Management SaaS Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDBenefitfocus, Inc. BNFT $1,584.8 $1,507.6 $96.7 42.5% -18.9% n/a 15.6x n/a 12.3x n/a 15.6%ChannelAdvisors ECOM $1,103.9 $1,002.5 $68.0 73.4% -15.8% 26.9% 14.7x n/a 11.8x n/a 10.7%Concur CNQR $6,991.1 $6,799.8 $586.1 69.2% 6.2% 26.8% 11.6x 186.3x 9.3x 57.8x 22.2%Covisint Corporation COVS $403.0 $348.3 $98.4 44.5% -27.5% 13.9% 3.5x n/a 3.2x n/a -14.5%Demandware, Inc. DWRE $2,599.0 $2,323.6 $103.7 73.0% -15.8% 30.5% 22.4x n/a 16.1x n/a 16.0%FireEye, Inc. FEYE $11,797.6 $11,623.7 $161.6 70.4% -88.5% 93.9% 72.0x n/a 28.6x n/a 108.2%inContact, Inc. SAAS $500.1 $459.0 $130.0 48.2% -1.5% 17.9% 3.5x n/a 3.0x 204.7x 12.5%IntraLinks Holdings IL $642.7 $632.5 $234.5 72.3% 12.2% 8.2% 2.7x 22.1x 2.6x 16.2x -3.3%J2 Global JCOM $2,393.6 $2,340.7 $520.8 83.3% 43.3% 40.2% 4.5x 10.4x 4.0x 9.1x 4.1%Jive Software, Inc JIVE $563.6 $463.8 $145.8 62.2% -41.0% 28.2% 3.2x n/a 2.7x n/a -25.5%Liquid Holdings Group, LLC LIQD $117.5 n/a $4.8 43.7% n/a 37.4% n/a n/a n/a n/a -31.3%OpenTable, Inc. OPEN $1,868.7 $1,754.1 $190.1 74.6% 30.6% 17.6% 9.2x 30.2x 7.8x 20.6x 2.1%Qualys, Inc. QLYS $879.8 $783.4 $108.0 77.2% 11.0% 18.1% 7.3x 65.7x 6.0x 36.4x 17.0%Rally Software Development, Inc. RALY $485.6 $390.7 $70.2 78.1% -20.9% 33.5% 5.6x n/a 4.5x n/a 2.8%RingCentral, Inc. RNG $1,347.6 $1,266.0 $160.5 61.7% -20.0% 40.1% 7.9x n/a 6.2x n/a 21.4%Service-now.com NOW $9,603.3 $9,383.5 $424.7 63.4% -10.1% 74.2% 22.1x n/a 14.6x 220.1x 22.2%Tableau Software DATA $5,947.7 $5,695.1 $232.4 92.0% 4.5% 82.0% 24.5x 541.4x 17.3x n/a 37.8%Tangoe TNGO $727.4 $686.3 $188.9 55.0% 8.7% 22.3% 3.6x 41.8x 3.1x 18.2x 5.3%Zix Corporation ZIXI $282.1 $254.6 $48.1 84.2% 25.1% 11.0% 5.3x 21.0x 4.8x 17.6x -1.1%

Median: $1,103.9 $1,134.2 $145.8 70.4% -5.8% 27.6% 7.6x 36.0x 6.1x 20.6x 10.7%



Levered FCF Margin 7.6%Cash from Operations Growth (YoY) 19.4%Cash from Investing Growth (YoY) -24.3%Cash from Financing Growth (YoY) 98.9%Levered FCF Growth (YoY) -6.6%






-10%

-5%

0%

5%

10%

15%Other Public SaaS Companies SaaS Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $2,715.5 $2,456.8 $529.4 64.5% 9.6% 18.1% 3.7x 26.4x 3.1x 18.5x 6.8% Ad Tech & Lead Generation $2,017.3 $2,007.5 $543.6 62.5% 7.2% 25.5% 3.1x 27.1x 2.4x 18.1x -0.4% Commerce $587.9 $479.2 $450.0 41.6% 8.3% 14.0% 1.0x 14.9x 1.2x 11.0x -0.6% Content & Media $3,485.6 $3,393.2 $515.3 49.6% 16.4% 7.9% 3.6x 28.9x 4.0x 19.0x 14.5% Gaming $3,413.73 $2,906.0 $822.5 72.3% 35.2% 15.2% 3.8x 9.2x 2.6x 8.3x 8.8% Infrastructure $639.58 $492.9 $276.7 62.3% 6.6% 5.2% 1.5x 17.1x 1.5x 12.3x 4.8% Services $1,151.09 $1,122.0 $245.6 72.9% 7.4% 52.7% 4.5x 42.9x 3.6x 26.4x 3.7% Social $8,844.37 $8,628.2 $664.9 66.6% 10.9% 57.2% 16.0x 65.0x 12.5x 42.9x 13.9% Travel $5,623.80 $5,091.3 $868.4 83.0% 17.2% 21.0% 5.4x 25.6x 6.6x 24.6x 16.0%


Current Ratio 2.6Quick Ratio 2.5Cash as Percent of Market Cap 14.6%Avg Days Outstanding: Accounts Receivable 38Avg Days Outstanding: Accounts Payable 49Working Capital to TTM Operating Expense Ratio 0.6






-8%

-6%

-4%

-2%

0%

2%

4%

6%SEG Internet Index Stock Market Return: January - February 2014

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech and Lead Generation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $813.8 $772.9 $245.6 73.0% -9.8% 57.7% 3.1x n/a 2.4x 127.3x 2.4%Baidu.com, Inc. BIDU $59,877.4 $56,817.1 $5,276.5 71.4% 39.8% 43.2% 10.8x 27.1x 7.4x 23.7x -5.0%Bankrate, Inc. RATE $2,069.5 $2,136.4 $457.4 67.0% 23.8% 0.1% 4.7x 19.6x 4.0x 14.4x 15.4%Criteo SA CRTO $3,040.1 $2,733.3 $611.4 35.4% 5.4% 63.3% 4.5x 82.2x n/a n/a 62.3%Conversant, Inc. CNVR $1,659.6 $1,718.3 $573.1 68.0% 36.1% -13.3% 3.0x 8.3x 2.8x 7.5x 7.6%eHealth, Inc. EHTH $893.8 $786.8 $179.2 97.0% 6.5% 15.2% 4.4x 68.1x 3.7x 36.8x 0.9%Google Inc. GOOG $408,520.2 $357,605.2 $59,825.0 56.8% 30.1% 19.2% 6.0x 19.8x 5.2x 13.9x 9.2%Groupon GRPN $5,677.7 $4,444.6 $2,573.7 58.3% 5.4% 10.2% 1.7x 31.7x 1.4x 15.3x -29.9%InterActiveCorp IACI $6,374.3 $6,433.3 $3,023.0 66.9% 18.0% 7.9% 2.1x 11.8x 2.0x 9.9x 14.5%LinkedIn LNKD $24,593.1 $22,268.8 $1,528.5 86.7% 10.9% 57.2% 14.6x 133.6x 10.5x 42.9x -1.7%Marchex Inc. MCHX $421.2 $390.3 $152.6 39.8% 4.5% 10.3% 2.6x 56.5x 2.2x 25.4x 20.3%QuinStreet QNST $286.6 $249.6 $297.8 17.9% 9.0% -9.5% 0.8x 9.3x 0.9x 7.7x -25.1%ReachLocal, Inc. RLOC $293.9 $213.7 $514.1 50.1% 4.4% 12.9% 0.4x 9.5x 0.4x 8.7x -17.3%Rocket Fuel, Inc. FUEL $1,965.1 $1,878.7 $240.6 47.8% -4.3% 125.7% 7.8x n/a 4.3x n/a -5.7%SINA Corporation SINA $4,561.3 $3,977.4 $665.1 59.2% 7.9% 25.7% 6.0x 76.1x 4.7x 30.7x -19.4%Sohu.com Inc. SOHU $3,263.1 $2,811.3 $1,400.3 65.7% 21.8% 31.2% 2.0x 9.2x 1.6x 101.5x 16.0%Tree.Com, Inc. TREE $376.6 $288.9 $126.8 94.9% 5.3% 97.6% 2.3x 42.9x 1.9x 14.7x 3.7%Tremor, Inc. TRMR $215.5 $122.8 $131.8 40.9% -5.5% 25.3% 0.9x n/a 0.8x n/a -23.6%Yandex YNDX $12,137.1 $11,618.1 $1,202.3 73.2% 41.9% 37.3% 9.7x 23.1x 7.9x 18.1x -12.0%YuMe YUME $204.0 $154.5 $151.1 46.9% 3.5% 29.5% 1.0x 29.0x 0.8x 30.0x -13.2%

Median: $2,017.3 $2,007.5 $543.6 62.5% 7.2% 25.5% 3.1x 27.1x 2.4x 18.1x -0.4%


Current Ratio 3.0xQuick Ratio 2.9xCash as Percent of Market Cap 13.0%Avg Days Outstanding: Accounts Receivable 48.4xAvg Days Outstanding: Accounts Payable 53.8xWorking Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 8.3%Cash from Operations Growth (YoY) 8.6%Cash from Investing Growth (YoY) 0.7%Cash from Financing Growth (YoY) 68.2%Levered FCF Growth (YoY) -1.6%





-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Internet Ad Tech and Lead Generation Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTD1-800-FLOWERS.COM, Inc. FLWS $337.7 $341.3 $753.9 41.6% 6.2% 4.5% 0.5x 7.4x 0.4x 6.0x -0.6%58.com Inc. WUBA $3,756.6 $3,445.5 $145.7 94.2% 13.2% 67.3% 23.6x 178.7x 15.5x 76.5x 24.5%Amazon.com, Inc. AMZN $166,299.9 $159,988.9 $74,452.0 27.2% 4.8% 21.9% 2.1x 45.1x 1.8x 23.2x -9.0%Bitauto Holdings Limited BITA $1,659.9 $1,556.0 $214.1 75.0% 19.5% 41.0% 7.3x 37.2x 5.5x 28.1x 28.1%BlueNile NILE $449.4 $334.1 $450.0 18.6% 3.5% 12.5% 0.7x 21.1x 0.7x 12.7x -24.1%DangDang DANG $1,131.4 $932.1 $1,044.8 17.4% -2.4% 21.8% 0.9x n/a 0.7x n/a 44.2%Digital River Inc. DRIV $587.9 $294.2 $389.7 66.0% 8.3% 5.2% 0.8x 9.0x 0.8x 5.6x -3.4%eBay Inc. EBAY $76,086.9 $71,184.9 $16,047.0 68.6% 29.7% 14.0% 4.4x 14.9x 3.9x 11.9x 9.0%GeekNet GKNT $96.9 $43.8 $138.3 19.6% 0.8% 16.3% 0.3x 39.3x 0.3x 9.5x -19.2%Liquidity Services, Inc. LQDT $827.2 $725.8 $505.6 42.0% 17.4% 2.9% 1.4x 8.3x 1.4x 7.0x 14.1%Mecox Lane Limited MCOX $49.7 $32.3 $103.9 37.9% -16.3% -38.9% 0.3x n/a n/a n/a 14.0%Mercadolibre, Inc. MELI $4,599.9 $4,402.8 $472.6 72.5% 35.0% 26.5% 9.3x 26.6x 8.9x 25.8x 0.7%Overstock.com, Inc. OSTK $471.3 $322.6 $1,304.2 19.0% 1.7% 18.6% 0.2x 14.3x 0.2x 7.0x -33.5%PetMed Express, Inc. PETS $275.0 $233.5 $235.9 33.2% 12.4% 1.4% 1.0x 8.0x 1.0x 8.0x -16.0%Stamps.com STMP $566.4 $479.2 $127.8 78.5% 28.6% 10.5% 3.7x 13.1x 3.5x 11.0x -15.8%

Median: $587.9 $479.2 $450.0 41.6% 8.3% 14.0% 1.0x 14.9x 1.2x 11.0x -0.6%

TTM Revenue Growth 14.0%TTM EBITDA Growth 12.3%TTM Earnings Growth 16.8%Gross Profit Margin 41.6%EBITDA Margin 8.3%Net Income Margin -1.0%SG&A Expenses as a % of Total Revenue 39.6%R&D Expenses as a % of Total Revenue 17.2%







-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Internet Commerce Internet Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDAOL, Inc. AOL $3,478.5 $3,393.2 $2,319.9 29.3% 18.8% 5.8% 1.5x 7.8x 1.4x 6.6x -2.3%DemandMedia DMD $414.0 $356.7 $394.6 48.1% 11.8% 3.7% 0.9x 7.7x 0.9x 6.5x -13.7%InterActiveCorp IACI $6,374.3 $6,433.3 $3,023.0 66.9% 18.0% 7.9% 2.1x 11.8x 2.0x 9.9x 14.5%Netflix NFLX $26,651.9 $25,982.1 $4,374.6 29.5% 6.3% 21.2% 5.9x 93.9x 4.9x 46.6x 22.8%Pandora P $7,387.6 $7,043.2 $588.3 37.0% -7.1% 53.5% 12.0x n/a 7.8x 138.1x 39.8%Shutterstock, Inc. SSTK $3,485.6 $3,275.8 $235.5 61.5% 20.0% 38.9% 13.9x 69.7x 10.6x 47.7x 19.7%TheStreet.com, Inc. TST $100.2 $45.3 $54.5 49.6% 0.6% 7.4% 0.8x 130.8x n/a n/a 30.9%WebMD Health Corp. WBMD $1,736.4 $1,863.8 $515.3 59.3% 16.4% 9.7% 3.6x 22.1x 3.2x 12.1x 15.1%XO Group XOXO $322.4 $236.2 $133.4 83.0% 18.0% 4.3% 1.8x 9.8x 1.7x 7.7x -18.7%Yahoo! Inc. YHOO $39,033.2 $36,828.6 $4,680.4 71.2% 22.0% -6.1% 7.9x 35.7x 8.1x 25.9x -2.3%Youku YOKU $5,561.3 $5,037.1 $500.2 27.0% 10.6% 68.7% 10.1x 95.3x 7.3x 297.9x 4.4%

Median: $3,485.6 $3,393.2 $515.3 49.6% 16.4% 7.9% 3.6x 28.9x 4.0x 19.0x 14.5%









-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Internet Content & Media Stock Market Return: January - February 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/ Revenue

Forward EV/

EBITDA YTDChangYou.com CYOU $1,550.2 $1,426.4 $737.9 82.9% 46.6% 18.4% 1.9x 4.2x 1.8x 8.4x -9.3%Giant Interactive GA $2,726.8 $2,233.3 $379.4 90.3% 63.6% 11.9% 5.9x 9.3x 5.4x 8.3x 1.7%Netease NTES $8,981.1 $5,993.6 $1,519.0 73.0% 49.1% 12.1% 3.9x 8.0x 3.4x 7.1x -9.9%NCSoft KOSE:A036 $3,564.4 $3,000.6 $771.7 71.6% 34.7% 36.3% 3.9x 11.2x n/a n/a -23.1%Perfect World PWRD $1,116.3 $751.7 $465.0 77.1% 20.3% -0.6% 1.6x 8.0x 1.3x 7.3x 27.2%Sohu.com Inc. SOHU $3,263.1 $2,811.3 $1,400.3 65.7% 21.8% 31.2% 2.0x 9.2x 1.6x 101.5x 16.0%Tencent Holdings SEHK:700 $147,992.7 $144,732.2 $9,086.3 55.3% 35.6% 40.2% 15.9x 44.7x n/a n/a 23.3%Zynga, Inc. ZNGA $4,437.0 $3,311.5 $873.3 71.6% 8.4% -31.8% 3.8x 45.0x 4.1x 36.1x 28.1%

Median: $3,413.7 $2,906.0 $822.5 72.3% 35.2% 15.2% 3.8x 9.2x 2.6x 8.3x 8.8%



Levered FCF Margin 8.9%Cash from Operations Growth (YoY) 23.9%Cash from Investing Growth (YoY) -17.0%Cash from Financing Growth (YoY) -50.4%Levered FCF Growth (YoY) -38.0%





-8%

-6%

-4%

-2%

0%

2%

4%

6%Internet Gaming Stock Market Return: January - February 2014

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD8x8, Inc. EGHT $929.7 $755.7 $124.5 70.3% 9.6% 24.2% 6.1x 63.5x 5.0x 47.9x 6.1%Akamai Technologies, Inc. AKAM $10,942.3 $10,268.4 $1,577.9 67.6% 37.5% 14.8% 6.5x 17.3x 5.5x 12.9x 31.4%Brightcove Inc. BCOV $279.1 $243.0 $109.9 66.5% -1.4% 24.9% 2.2x n/a 1.9x n/a -30.8%BroadSoft, Inc. BSFT $852.0 $780.0 $178.5 76.8% 0.4% 8.3% 4.4x 993.6x 3.8x 14.7x 13.5%Digital River Inc. DRIV $587.9 $294.2 $389.7 66.0% 8.3% 5.2% 0.8x 9.0x 0.8x 5.6x -3.4%Envivio, Inc. ENVI $97.9 $48.0 $38.4 64.5% -31.5% -18.1% 1.2x n/a 1.0x n/a 4.0%Harmonic Inc HLIT $639.6 $469.0 $461.9 47.9% 5.0% -12.9% 1.0x 20.2x 1.0x 7.3x -11.3%Interactive Intelligence, Inc. ININ $1,610.5 $1,512.5 $318.2 64.2% 8.8% 34.1% 4.8x 53.8x 4.1x 70.5x 19.9%Limelight Networks, Inc. LLNW $211.3 $93.7 $173.4 48.8% -5.9% -3.8% 0.5x n/a 0.6x n/a 8.5%Mitel Networks Corp. MITL $932.0 $1,150.4 $579.4 56.6% 15.3% -2.1% 2.0x 13.0x 1.5x 9.7x -1.7%Polycom, Inc. PLCM $1,828.8 $1,549.9 $1,368.4 57.9% 8.7% -1.7% 1.1x 13.0x 1.1x 7.7x 19.7%Rovi Corporation ROVI $2,428.9 $3,099.9 $538.1 82.8% 33.7% 2.3% 5.8x 17.1x 5.8x 12.3x 25.1%SeaChange International Inc. SEAC $346.5 $229.4 $155.3 56.7% 11.4% -0.4% 1.5x 13.0x 1.6x 14.9x -13.2%ShoreTel, Inc. SHOR $540.0 $492.9 $332.7 60.0% 3.1% 17.0% 1.5x 47.1x 1.4x 17.7x -5.0%Sonus Networks, Inc SONS $993.6 $784.9 $276.7 62.3% -0.1% 8.9% 2.8x n/a 2.6x n/a 21.1%Synacor, Inc SYNC $71.9 $39.8 $114.6 46.7% 4.3% -3.5% 0.3x 8.1x 0.3x 6.4x 4.8%Tucows Inc. TCX $149.0 $142.9 $129.9 24.7% 6.6% 13.3% 1.1x 16.6x 1.0x 11.0x 4.4%VeriSign VRSN $7,366.2 $7,016.9 $965.1 80.6% 61.0% 10.5% 7.3x 11.9x 6.9x 10.7x -8.2%

Median: $639.6 $492.9 $276.7 62.3% 6.6% 5.2% 1.5x 17.1x 1.5x 12.3x 4.8%








-8%

-6%

-4%

-2%

0%

2%

4%

6%

Internet Infrastructure Stock Market Return: January - February 2014

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $813.8 $772.9 $245.6 73.0% -9.8% 57.7% 3.1x n/a 2.4x 127.3x 2.4%Bankrate RATE $2,069.5 $2,136.4 $457.4 67.0% 23.8% 0.1% 4.7x 19.6x 4.0x 14.4x 15.4%Carbonite, Inc. CARB $268.7 $203.3 $107.2 67.5% 3.7% 27.5% 1.9x 51.1x 1.7x 24.2x -14.4%LifeLock, Inc. LOCK $1,828.2 $1,655.6 $369.7 72.9% 7.4% 33.7% 4.5x 60.3x 3.6x 30.6x 26.3%Monster Worldwide, Inc. MWW $766.1 $867.2 $807.6 53.0% 13.9% -9.3% 1.1x 7.7x 1.1x 6.1x 12.9%Qihoo QIHU $13,458.2 $13,066.1 $552.4 87.6% 26.4% 91.5% 23.7x 89.5x 13.9x 28.5x 33.9%Shutterfly SFLY $2,086.2 $1,832.2 $783.6 52.8% 11.0% 22.3% 2.3x 21.3x 2.0x 10.8x 10.4%Tree.Com, Inc. TREE $376.6 $288.9 $126.8 94.9% 5.3% 97.6% 2.3x 42.9x 1.9x 14.7x 3.7%Trulia, Inc. TRLA $1,117.4 $1,122.0 $143.7 83.9% -4.1% 111.1% 7.8x n/a 4.5x 55.9x -14.9%VistaPrint VPRT $1,635.5 $1,777.7 $1,213.6 65.8% 11.4% 9.6% 1.5x 12.9x 1.3x 8.8x -10.8%Wix.com Ltd. WIX $1,151.1 $1,049.8 $80.5 81.0% -31.4% 84.2% 13.0x n/a 8.1x n/a 19.9%Xoom XOOM $1,055.7 $840.1 $122.2 68.8% 9.3% 52.7% 6.9x 74.0x 5.3x 85.0x 3.3%Zillow Z $3,274.8 $2,979.6 $197.5 90.5% -2.8% 69.1% 15.1x n/a 10.1x 75.8x 1.9%

Median: $1,151.1 $1,122.0 $245.6 72.9% 7.4% 52.7% 4.5x 42.9x 3.6x 26.4x 3.7%








-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Internet Services Stock Market Return: January - February 2014

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFacebook FB $174,555.4 $163,582.4 $7,872.0 77.7% 49.9% 54.7% 20.8x 41.6x 14.5x 24.2x 25.1%LinkedIn LNKD $24,593.1 $22,268.8 $1,528.5 86.7% 10.9% 57.2% 14.6x 133.6x 10.5x 42.9x -1.7%Mail.ru Group LSE:MAIL $8,844.4 $8,628.2 $834.1 66.6% 60.8% 31.8% 10.3x 17.0x n/a n/a -4.1%Renren Inc RENN $1,367.5 $459.0 $192.6 63.7% -54.1% 20.3% 2.4x n/a 3.2x n/a 13.9%Twitter, Inc. TWTR $29,909.3 $27,872.9 $664.9 59.9% -81.4% 109.8% 41.9x n/a 22.5x 153.3x -18.7%Yelp, Inc. YELP $6,563.3 $6,173.5 $233.0 92.9% 1.0% 69.4% 26.5x 2544.0x 17.2x 105.0x 39.0%YY, Inc. YY $4,156.4 $3,851.6 $241.4 53.6% 24.5% 121.9% 16.0x 65.0x 9.8x 27.7x 43.5%

Median: $8,844.4 $8,628.2 $664.9 66.6% 10.9% 57.2% 16.0x 65.0x 12.5x 42.9x 13.9%



Levered FCF Margin 25.0%Cash from Operations Growth (YoY) 123.7%Cash from Investing Growth (YoY) -118.1%Cash from Financing Growth (YoY) 703.4%Levered FCF Growth (YoY) n/a






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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/ Revenue

Forward EV/

EBITDA YTDCtrip CTRP $7,008.8 $6,324.6 $889.8 74.3% 17.4% 29.5% 7.1x 41.0x 5.5x 41.7x 9.3%Expedia EXPE $10,166.4 $10,547.6 $4,771.3 78.2% 13.7% 18.4% 2.2x 16.1x 1.9x 10.4x 13.5%HomeAway AWAY $4,238.8 $3,858.0 $346.5 84.2% 17.1% 23.6% 11.1x 65.2x 8.9x 31.6x 14.3%MakeMyTrip MMYT $972.0 $906.3 $249.7 23.8% -6.7% 13.2% 3.6x n/a 7.7x 210.2x 30.4%Orbitz OWW $1,045.3 $1,371.1 $847.0 81.8% 13.7% 8.8% 1.6x 11.8x 1.6x 8.8x 35.9%Priceline PCLN $70,331.2 $65,481.0 $6,793.3 84.3% 37.6% 29.1% 9.6x 25.6x 7.7x 19.6x 17.8%Travelzoo TZOO $354.1 $287.5 $158.2 89.0% 17.2% 4.7% 1.8x 10.5x 1.8x 8.7x 12.3%TripAdvisor Inc TRIP $14,257.4 $14,143.5 $944.7 98.1% 32.9% 23.8% 15.0x 45.5x 11.9x 29.6x 24.6%

Median: $5,623.8 $5,091.3 $868.4 83.0% 17.2% 21.0% 5.4x 25.6x 6.6x 24.6x 16.0%








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Travel S&P NASDAQ SEG Internet Index

Software Equity Group Flash Report - March 2014

Economy & Finance

Transcript of Software Equity Group Flash Report - March 2014