Weekly Internet / Digital Media / SaaS Sector Summary · 2016. 6. 29. · Weekly Internet / Digital...

Weekly Internet / Digital Media / SaaS

Sector Summary

Week of June 27th, 2016

60%

70%

80%

90%

100%

110%

120%

130%

140%

6/29/2015 8/20/2015 10/11/2015 12/2/2015 1/23/2016 3/15/2016 5/6/2016 6/27/2016

85%

90%

95%

100%

105%

110%

115%

120%

125%

3/28/2016 4/10/2016 4/23/2016 5/6/2016 5/19/2016 6/1/2016 6/14/2016 6/27/2016

(3.8%)

(4.4%)

(10.2%)

(7.3%)

21.3%

(3.4%)

Industry Stock Market Valuation

2

Internet / Digital Media / SaaS

Last 12 Months Last 3 Months

Diversified Marketing

(5)

Internet Content (3)

Search / Online Advertising (1)

Gaming (7)

Media Conglomerates (6)

Internet Commerce (2)

SaaS (8)

Publishers (4)

NASDAQ

(8.4%)

(6.5%)

7.7%

(29.3%)

(25.2%)

14.4%

(10.4%)

14.0%

(8.1%)

(3.6%)

9.5%

1.3%

(2.2%)

2

Social Media (9)

25.5%

2

Notes:

(1) Search/Online Advertising Composite includes: BCOR, CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, SZMK, TRMR, TUBE, YHOO, YNDX, YUME.

(2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, NILE, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TZOO.

(3) Internet Content Composite includes: CRCM, DHX, DMD, EHTH, EVDY, GDDY, IAC, MWW, RATE, RENN, RNWK, SCOR, SFLY, TGNA, TST, TTGT, WBMD, WEB, XOXO, ZG.

(4) Publishers Composite includes: GCI, GHC, MMB-FR, NWSA, NYT, PSON-GB, SSP, TIME, TRI, UBM-GB.

(5) Diversified Marketing Composite includes: ACXM, ADS, EFX, EXPN-GB, HAV-FR, HHS, IPG, MDCA, NLSN, WPP-GB.

(6) Media Conglomerates Composite includes: 6758-JP, CBS, CMCSA, DIS, DISCA, FOXA, LGF, SNI, TRCO, TWX, VIA.B.

(7) Gaming Composite includes: A035420-KR, A036570-KR, 2432-JP, 3632-JP, 3765-JP, 700-HK, ATVI, CYOU, EA, GAME, GLUU, NTES, UBI-FR, ZNGA.

(8) SaaS Composite includes: APIC, APPF, BCOV, BOX, BV, CRM, CSOD, CVT, ECOM, HUBS, JIVE, LPSN, MB, MRIN, N, NOW, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN.

(9) Social Media includes: FB, GRPN, P, TWTR, YELP.

2

41.6x

16.4x 16.2x 15.0x

10.9x 10.8x 10.6x 9.8x7.8x

0.0x

10.0x

20.0x

30.0x

40.0x

50.0x

4.0x 4.0x

2.9x 2.9x 2.8x

2.4x 2.3x

1.9x1.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Industry Stock Market Valuation

3

Internet / Digital Media / SaaS: Financial Metrics

EV / 2016E EBITDA EV / 2016E Revenue

3 3

Notes:

(1) Search/Online Advertising Composite includes: BCOR, CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, SZMK, TRMR, TUBE, YHOO, YNDX, YUME.

(2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, NILE, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TZOO.

(3) Internet Content Composite includes: CRCM, DHX, DMD, EHTH, EVDY, GDDY, IAC, MWW, RATE, RENN, RNWK, SCOR, SFLY, TGNA, TST, TTGT, WBMD, WEB, XOXO, ZG.

(4) Publishers Composite includes: GCI, GHC, MMB-FR, NWSA, NYT, PSON-GB, SSP, TIME, TRI, UBM-GB.

(5) Diversified Marketing Composite includes: ACXM, ADS, EFX, EXPN-GB, HAV-FR, HHS, IPG, MDCA, NLSN, WPP-GB.

(6) Media Conglomerates Composite includes: 6758-JP, CBS, CMCSA, DIS, DISCA, FOXA, LGF, SNI, TRCO, TWX, VIA.B.

(7) Gaming Composite includes: A035420-KR, A036570-KR, 2432-JP, 3632-JP, 3765-JP, 700-HK, ATVI, CYOU, EA, GAME, GLUU, NTES, UBI-FR, ZNGA.

(8) SaaS Composite includes: APIC, APPF, BCOV, BOX, BV, CRM, CSOD, CVT, ECOM, HUBS, JIVE, LPSN, MB, MRIN, N, NOW, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN.

(9) Social Media includes: FB, GRPN, P, TWTR, YELP.

3

$MM, Except Per Share Data

Stock LTM EPS

Price Price Range Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS Long Term Revenue Growth

6/27/16 Low High Value Debt Value LTM CY 16E CY 17E LTM CY 16E CY 17E LTM CY 16E CY 17E Growth PEG 17E/16E Y/Y MRQ

Search / Online Advertising

Alphabet Inc. $681.14 $539.54 $810.35 $467,644 ($66,071) $401,573 5.1x 4.6x 4.0x 15.7x 11.5x 9.8x 27.7x 20.3x 17.2x 16.6% 1.0 14.2% 17.4%

Microsoft Corporation 48.43 39.72 56.85 380,682 (58,571) 322,111 3.7 3.5 3.3 11.1 9.7 8.9 37.3 18.1 16.0 10.8% 1.5 5.4% (5.5%)

Yahoo! Inc. 35.22 26.15 39.98 33,456 (4,727) 28,766 6.0 8.2 8.1 NM 38.0 33.6 NM 70.3 60.7 1.5% 40.3 1.3% (11.3%)

Yandex N.V. 19.90 9.94 23.20 6,462 (541) 5,921 6.2 5.3 4.6 21.2 15.4 11.5 50.2 30.0 23.7 22.0% 1.1 16.7% 15.7%

Criteo SA (1) 40.80 24.23 57.30 2,573 (377) 2,203 4.7 3.1 2.5 17.1 10.8 8.1 42.1 23.5 17.7 26.4% 0.7 25.0% 36.4%

The Rubicon Project, Inc. (1) 12.61 11.72 20.37 611 (158) 453 1.6 1.5 1.3 16.0 7.0 5.1 76.3 14.1 12.1 20.2% 0.6 21.1% 86.2%

Blucora, Inc. 9.38 4.69 16.44 388 429 832 4.1 1.8 1.7 23.4 9.0 7.8 NM 9.3 6.9 18.5% 0.4 7.1% 104.5%

TubeMogul, Inc. (1) 10.69 9.11 16.33 382 (74) 308 1.6 1.3 1.1 NM 42.3 16.4 NM NM 30.7 NM NM 20.5% 38.8%

RhythmOne plc 0.36 0.19 0.41 144 (47) 97 0.6 0.4 0.4 NM 21.1 10.0 NM 9.1 19.9 NM NM 2.1% (30.9%)

QuinStreet, Inc. 3.15 2.65 6.82 143 (40) 103 0.4 0.3 0.3 NM 9.4 4.6 NM NM NM 37.5% NM 7.8% 7.8%

Marchex, Inc. 3.17 3.08 5.14 137 (107) 30 0.2 0.2 0.2 NM 20.9 4.4 NM NM NM 15.0% NM 4.5% 0.2%

YuMe, Inc. 3.51 2.35 5.60 122 (62) 60 0.3 0.3 0.3 NM 7.3 5.3 NM NM NM NA NA 6.2% (2.3%)

Rocket Fuel Inc. 2.11 2.09 8.32 93 13 106 0.2 0.2 0.2 NM 10.0 8.9 NM NM NM 4.0% NM 3.1% 0.4%

Marin Software Incorporated 2.31 1.88 7.08 88 (34) 54 0.5 0.5 0.5 NM 36.7 10.7 NM NM NM NA NA 1.3% 2.9%

Tremor Video, Inc. 1.65 1.29 3.08 87 (56) 31 0.2 0.2 0.1 NM 11.9 2.4 NM NM NM NA NA 20.5% (9.2%)

MaxPoint Interactive, Inc. 9.83 4.64 40.56 65 (8) 57 0.4 0.6 0.6 NM NM NM NM NM NM 20.0% NM 6.0% 2.6%

Sizmek Inc. 2.17 2.12 7.91 63 (40) 23 0.1 0.1 0.1 6.7 1.4 1.1 NM NM 36.2 NA NA 7.8% 10.2%

Mean 2.1x 1.9x 1.7x 15.9x 16.4x 9.3x 46.7x 24.3x 24.1x 17.5% 6.5 10.0% 15.5%

Median 0.6 0.6 0.6 16.0 11.1 8.5 42.1 19.2 18.8 18.5% 1.0 7.1% 2.9%

Internet Content

Zillow Group, Inc. $33.01 $16.46 $35.65 $5,909 ($284) $5,626 8.0x 6.8x 5.6x NM 45.6x 27.1x NM NM 69.2x 42.3% 1.6 21.3% 46.1%

TEGNA Inc. 21.77 21.11 33.40 4,737 4,118 9,155 3.0 2.7 2.6 8.1 7.3 7.8 12.9 9.5 11.2 6.0% 1.9 1.1% 6.9%

IAC/InterActiveCorp 52.28 38.82 84.66 4,141 293 4,523 1.4 1.4 1.3 11.8 8.4 6.9 46.2 16.5 12.3 12.4% 1.0 7.6% 6.0%

GoDaddy Inc. 30.48 21.04 35.35 2,498 603 3,339 2.0 1.8 1.6 21.7 8.1 6.8 NM 19.0 15.1 23.0% 0.7 13.2% 15.3%

WebMD Health Corp. 56.78 37.57 67.55 2,100 98 2,198 3.4 3.1 2.9 14.3 9.6 8.4 36.2 30.2 26.0 12.5% 2.1 9.5% 10.6%

comScore, Inc. 29.40 26.21 65.00 1,666 (114) 1,552 4.2 3.0 2.5 41.8 12.5 9.5 NM 18.8 14.2 25.8% 0.6 19.1% 8.4%

Shutterfly, Inc. 44.65 35.22 49.16 1,539 210 1,748 1.6 1.5 1.4 14.5 8.1 7.1 NM 51.0 46.8 20.0% 2.3 8.8% 13.6%

Web.com Group, Inc. 16.90 15.71 26.04 802 710 1,512 2.7 2.0 1.8 13.5 8.7 7.0 9.9 6.5 5.5 9.8% 0.6 10.6% 9.2%

Bankrate, Inc. 7.17 6.59 15.80 648 89 737 2.0 1.7 1.5 7.7 7.0 4.3 49.6 13.3 8.1 17.5% 0.5 15.9% 4.8%

Renren Inc. 1.81 1.78 3.85 616 28 644 14.8 10.5 7.4 NM NM NM NM NM NM 20.0% NM 41.9% NA

XO Group Inc. 16.61 13.55 18.18 423 (92) 331 2.3 2.1 1.9 15.4 9.8 7.8 61.5 39.5 24.9 20.0% 1.2 11.4% 9.4%

DHI Group, Inc. 6.04 5.99 10.48 313 67 380 1.5 1.6 1.5 6.4 5.8 5.4 NM 14.4 11.7 NA NA 2.7% (8.6%)

Care.com, Inc. 8.13 4.89 9.49 265 (52) 213 1.5 1.3 1.2 NM 20.0 12.6 NM 58.3 27.2 20.0% 1.4 13.5% 22.5%

TechTarget, Inc. 7.87 5.98 10.94 254 (29) 225 2.0 1.9 1.7 12.8 7.7 6.2 39.0 16.9 12.3 24.5% 0.5 8.5% 5.8%

eHealth, Inc. 13.16 8.14 16.81 240 (67) 173 0.9 0.9 0.8 6.6 10.0 7.0 15.5 21.0 17.8 10.0% 1.8 6.9% 20.5%

Everyday Health, Inc. 7.15 3.71 13.41 237 83 320 1.3 1.2 1.1 14.2 7.1 5.2 NM 18.7 8.8 26.6% 0.3 12.9% 34.0%

Monster Worldwide, Inc. 2.27 2.26 8.23 202 53 255 0.4 0.4 0.4 2.8 3.0 2.8 44.6 9.0 7.2 NA NA 2.4% (8.7%)

RealNetworks Inc. 4.13 3.04 5.86 152 (32) 120 1.0 1.0 0.9 NM NM NM NM NM NM NA NA 18.8% (7.7%)

Demand Media, Inc. 5.10 3.94 6.64 104 (31) 73 0.6 0.6 0.6 NM NM NM NM NM NM NA NA 7.1% (18.8%)

TheStreet, Inc. (2) 1.20 0.82 2.05 42 (30) 12 0.2 0.2 0.2 16.3 4.9 3.4 NM NA NM NA NA 3.6% (4.9%)

Mean 2.7x 2.3x 1.9x 13.9x 10.8x 8.0x 35.0x 22.8x 19.9x 19.4% 1.2 11.8% 8.7%

Median 1.8 1.6 1.5 13.5 8.1 7.0 39.0 18.7 13.3 20.0% 1.1 10.0% 8.4%

Public Company Valuations Internet / Digital Media / SaaS: Financial Metrics (Cont’d)

Notes:

Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM.

(1) Revenue multiples reflective of Net Revenue.

(2) Includes convertible preferred stock with total liquidation preference of $55.0MM.

4


Stock LTM EPS



Internet Commerce

Amazon.com, Inc. $691.36 $425.57 $731.50 $326,203 $1,753 $327,956 2.9x 2.4x 2.0x 36.1x 21.4x 16.4x NM NM 70.8x 58.5% 1.2 20.9% 28.2%

Alibaba Group Holding Limited 74.23 57.20 86.42 185,224 (7,448) 178,517 11.4 12.4 9.6 31.8 24.1 19.3 36.0 30.4 24.4 24.5% 1.0 28.7% 33.3%

The Priceline Group Inc. 1,186.05 954.02 1,476.52 58,875 3,041 61,916 6.5 5.8 5.1 17.0 14.7 12.6 23.3 17.7 15.1 16.4% 0.9 14.8% 16.7%

Netflix, Inc. 85.33 79.95 133.27 36,547 300 36,847 5.1 4.2 3.4 NM 70.0 32.8 NM NM 77.2 50.1% 1.5 25.6% 24.4%

eBay Inc. 22.72 21.52 66.73 26,103 1,023 27,126 3.1 3.1 3.0 9.1 7.8 7.5 13.9 12.2 11.1 7.4% 1.5 4.3% 3.7%

Expedia Inc. 98.44 88.40 140.51 14,646 1,144 16,525 2.3 1.9 1.6 20.7 10.1 8.1 22.9 19.3 14.8 22.1% 0.7 14.5% 38.6%

QVC Group 23.81 22.51 31.62 11,453 6,175 17,720 1.8 1.7 1.6 10.0 8.6 8.0 9.1 12.9 11.6 20.0% 0.6 5.2% 22.1%

Copart, Inc. 46.46 32.26 50.08 5,082 563 5,645 4.6 4.3 4.1 13.1 12.0 11.4 23.9 20.6 18.7 15.0% 1.3 4.6% 16.9%

Cimpress N.V. 90.49 63.15 101.77 2,848 769 3,682 2.2 1.9 1.7 15.7 12.0 10.1 95.2 21.0 17.5 19.8% 0.9 14.0% 28.5%

GrubHub Inc. 28.62 17.77 36.31 2,425 (196) 2,229 5.8 4.7 3.9 24.9 17.2 13.6 65.0 36.5 29.0 27.0% 1.1 20.6% 27.2%

Shutterstock, Inc. 41.27 25.44 59.56 1,444 (276) 1,169 2.6 2.3 2.0 19.5 11.8 9.8 66.6 29.1 24.5 20.0% 1.2 15.8% 19.6%

Stamps.com Inc. 82.33 65.36 123.75 1,436 52 1,489 5.9 4.6 4.1 18.5 12.0 9.9 NM 13.1 12.9 20.5% 0.6 13.6% 85.8%

Quotient Technology Inc. 12.01 5.00 14.00 996 (149) 847 3.4 3.2 2.8 NM 34.4 20.3 NM NM 64.1 25.0% 2.6 14.5% 18.9%

Etsy, Inc. 8.74 6.04 23.44 988 (247) 742 2.5 2.1 1.7 34.2 18.0 13.8 NM 97.1 NM 10.0% NM 21.3% 39.8%

1-800-Flowers.com Inc. 8.19 6.11 10.90 536 59 595 0.5 0.5 0.5 7.0 6.6 5.5 14.9 17.1 13.6 19.0% 0.7 5.1% 0.8%

Overstock.com Inc. 15.57 10.03 24.00 395 (100) 293 0.2 0.2 0.2 36.6 6.6 11.3 29.5 NM 97.3 NA NA 5.0% 3.8%

Angie's List, Inc. 6.57 3.73 11.25 385 (1) 384 1.1 1.1 1.0 23.3 12.0 9.0 NM NM 29.7 8.0% 3.7 6.5% 0.4%

Blue Nile Inc. 24.96 22.33 39.00 290 (29) 260 0.5 0.5 0.5 15.5 11.5 10.7 28.0 28.2 25.0 5.0% 5.0 2.3% (3.2%)

Travelzoo Inc. 7.56 6.63 12.78 107 (30) 77 0.6 0.6 0.6 8.0 11.2 8.6 29.1 26.3 25.0 5.0% 5.0 2.6% (11.1%)

CafePress Inc. 2.97 2.93 4.96 50 (38) 11 0.1 0.1 0.1 4.5 2.9 1.6 NM NM NM NA NA 4.5% (23.3%)

Mean 3.2x 2.9x 2.5x 19.2x 16.2x 12.0x 35.2x 27.3x 32.4x 20.7% 1.7 12.2% 18.6%

Median 2.6 2.2 1.9 17.7 12.0 10.4 28.0 20.8 24.5 19.9% 1.2 13.8% 19.2%

Media Conglomerates / Selected Entertainment

The Walt Disney Company $94.38 $86.25 $122.08 $153,126 $16,107 $173,119 3.2x 3.0x 2.9x 10.4x 10.0x 9.6x 17.4x 16.3x 15.0x 11.3% 1.3 5.4% 4.1%

Comcast Corporation 62.46 50.01 64.99 151,603 50,006 204,715 2.7 2.6 2.5 8.1 7.8 7.4 18.9 17.7 15.9 12.0% 1.3 3.7% 5.2%

Time Warner Inc. 69.21 55.53 91.34 54,426 22,133 76,589 2.7 2.6 2.5 9.5 9.3 8.7 14.0 12.8 11.4 12.9% 0.9 5.8% 2.5%

Twenty-First Century Fox, Inc. 26.37 22.66 34.70 49,951 14,752 66,293 2.5 2.3 2.2 10.4 9.3 8.8 17.9 13.8 11.7 14.6% 0.8 4.8% 5.7%

Sony Corporation 27.59 21.63 37.52 34,803 (1,852) 38,901 0.5 0.5 0.5 6.5 7.4 4.7 26.4 NM 19.0 10.0% 1.9 3.1% 0.5%

CBS Corporation 50.89 38.51 57.89 23,055 7,838 30,893 2.2 2.1 2.1 9.6 9.0 8.8 16.4 12.6 11.5 17.2% 0.7 1.5% 10.0%

Viacom, Inc. 38.88 30.11 66.33 15,398 12,049 27,726 2.1 2.1 2.1 7.3 7.6 7.1 7.0 8.3 7.4 4.1% 1.8 2.6% (2.5%)

Discovery Communications, Inc. 23.73 23.67 34.94 13,482 7,504 21,234 3.3 3.2 3.0 8.7 8.6 8.2 14.6 11.6 10.3 11.5% 0.9 5.3% 1.6%

Scripps Networks Interactive, Inc. 59.41 47.62 68.45 7,661 3,483 11,415 3.6 3.4 3.2 7.9 8.2 7.9 10.0 11.4 10.9 11.5% 0.9 4.5% 24.1%

Tribune Media Company 37.22 26.10 55.75 3,424 3,100 6,530 3.2 2.9 2.9 17.7 10.2 11.7 17.7 17.9 21.2 3.0% 7.1 (0.2%) 10.1%

Lions Gate Entertainment Corp. 19.91 16.21 41.41 2,931 1,519 4,541 1.9 1.8 1.6 NM 20.5 12.6 60.6 83.1 19.5 46.6% 0.4 8.3% 22.5%

Mean 2.5x 2.4x 2.3x 9.6x 9.8x 8.7x 20.1x 20.5x 14.0x 14.1% 1.6 4.1% 7.6%

Median 2.7 2.6 2.5 9.1 9.0 8.7 17.4 13.3 11.7 11.5% 0.9 4.5% 5.2%

Publishers

Thomson Reuters Corporation $38.48 $36.10 $42.73 $28,947 $8,233 $37,670 3.1x 3.3x 3.2x 15.0x 11.8x 11.1x 25.1x 18.8x 16.5x 8.4% 2.0 2.8% (1.0%)

Pearson plc 11.85 8.51 17.15 9,614 1,127 10,746 1.6 1.9 1.8 10.4 10.9 9.9 NM 16.6 14.5 NM NM 1.0% NA

News Corporation 10.62 10.21 15.92 6,163 (1,603) 4,759 0.6 0.6 0.6 7.7 5.3 5.1 NM 23.2 20.8 7.7% 2.7 (1.8%) (7.3%)

UBM plc 7.66 6.09 8.08 3,391 737 4,173 3.7 4.0 3.7 14.3 14.0 12.8 28.5 16.3 13.9 5.9% 2.4 6.3% NA

Graham Holdings Company 476.01 425.14 1,083.00 2,674 (515) 2,186 0.9 NA NA 6.4 NA NA NM NA NA NA NA NA (7.1%)

Lagardere SCA 20.32 20.18 31.77 2,605 1,684 4,441 0.5 0.6 0.6 7.4 6.4 6.2 32.8 10.2 9.3 7.1% 1.3 0.7% (9.6%)

The New York Times Company 11.54 11.45 14.30 1,857 (190) 1,664 1.1 1.1 1.1 7.0 6.8 6.6 27.3 20.0 18.1 NA NA 0.1% (1.2%)

Time Inc. 15.85 12.23 24.03 1,613 858 2,471 0.8 0.8 0.8 6.5 5.4 5.1 NM 11.0 9.5 8.5% 1.1 (0.4%) (1.0%)

Gannett Co., Inc. 13.62 10.75 17.91 1,587 (191) 1,396 0.5 0.5 0.5 3.6 3.4 3.3 11.2 9.0 8.5 NA NA (0.2%) (8.1%)

The E. W. Scripps Company 15.63 14.52 24.25 1,313 302 1,615 2.0 1.6 1.7 29.1 6.4 12.0 NM 13.1 46.4 3.0% 15.5 (7.5%) 70.3%

Mean 1.5x 1.6x 1.6x 10.7x 7.8x 8.0x 25.0x 15.4x 17.5x 6.8% 4.2 0.1% 4.4%

Median 1.0 1.1 NM 7.5 6.4 6.6 27.3 16.3 14.5 7.4% 2.2 0.1% (4.1%)

Public Company Valuations

5

Internet / Digital Media / SaaS: Financial Metrics (Cont’d)

Notes:



Stock LTM EPS



Diversif ied Marketing

WPP plc $19.48 $15.89 $22.31 $24,669 $4,735 $29,962 1.7x NA NA 9.5x NA NA 14.9x NA NA 8.7% NA NA (0.1%)

Nielsen Holdings plc 50.17 42.76 55.06 18,102 7,242 25,540 4.1 4.0 3.8 16.7 12.9 12.1 30.5 17.4 15.8 10.9% 1.5 5.3% 2.0%

Experian plc 17.20 13.42 18.02 16,236 3,083 19,333 4.2 4.3 3.9 13.8 11.9 11.1 21.7 19.4 17.1 11.0% 1.6 9.5% NA

Equifax Inc. 118.63 90.94 126.96 14,119 2,972 17,137 6.3 5.5 5.0 18.6 15.7 14.0 32.3 22.8 20.4 12.0% 1.7 9.4% 11.7%

Alliance Data Systems Corporation 186.40 176.63 307.78 10,986 16,961 28,140 4.3 4.0 3.6 18.5 13.7 12.4 21.0 11.1 9.9 14.0% 0.7 11.8% 4.7%

The Interpublic Group of Companies, Inc. 22.26 18.16 24.82 8,958 1,063 10,300 1.3 1.3 1.3 9.9 9.1 8.6 20.1 16.8 14.9 14.5% 1.0 4.5% 3.9%

Havas SA 7.62 7.12 9.07 3,198 (96) 3,119 1.3 NA NA 8.3 NA NA 17.1 NA NA 8.6% NA NA 3.8%

Acxiom Corporation 20.57 16.67 23.57 1,600 1 1,601 1.9 1.8 1.7 20.2 11.1 9.7 NM 36.1 31.6 15.3% 2.1 6.5% 9.2%

MDC Partners Inc. 16.68 15.94 23.90 861 875 1,888 1.4 1.3 1.2 11.2 8.3 7.5 NM 28.4 13.1 46.3% 0.3 7.5% 2.3%

Harte-Hanks Inc. 1.52 0.85 6.29 93 67 161 0.3 0.3 0.3 5.9 4.5 3.6 NM 10.9 9.5 NM NM 0.7% (8.6%)

Mean 2.7x 2.8x 2.6x 13.2x 10.9x 9.9x 22.5x 20.3x 16.5x 15.7% 1.3 6.9% 3.2%

Median 1.8 2.9 2.6 12.5 11.5 10.4 21.0 18.4 15.3 12.0% 1.5 7.0% 3.8%

Gaming

Tencent Holdings Limited $21.80 $15.98 $23.00 $201,482 ($2,850) $198,979 11.4x 9.5x 7.5x 27.1x 22.0x 17.9x 42.7x 31.5x 24.7x 27.2% 0.9 26.2% 37.2%

Activision Blizzard, Inc. 36.15 24.04 39.99 26,687 2,969 29,656 6.1 4.7 4.3 18.6 13.5 11.6 32.4 19.5 16.9 17.0% 1.0 9.7% 13.8%

NetEase, Inc. 166.66 102.80 186.45 21,912 (3,836) 18,095 4.3 3.4 2.8 12.9 10.3 9.1 17.9 14.7 13.4 19.2% 0.7 21.2% 107.7%

Electronic Arts Inc. 71.50 53.01 78.09 21,549 (2,682) 18,867 4.3 4.0 3.7 17.6 12.4 10.8 20.4 21.6 18.7 12.7% 1.5 7.0% 10.4%

Naver Corporation 600.47 387.35 642.76 17,496 (1,320) 16,326 5.4 4.8 4.2 19.1 15.4 12.4 35.6 29.7 23.4 30.0% 0.8 14.3% 23.4%

Gamesa Corporación Tecnológica S.A. 17.61 12.00 20.39 4,862 (276) 4,586 1.1 1.0 0.8 9.8 7.3 6.3 22.8 16.8 15.8 24.2% 0.7 19.7% 37.6%

NCsoft Corporation 191.56 153.50 234.27 4,069 (642) 3,430 4.4 4.1 3.4 12.9 11.4 8.9 24.3 18.7 14.1 27.3% 0.5 19.2% 24.8%

Ubisoft Entertainment SA 33.96 16.32 37.39 3,742 50 3,792 2.4 1.9 1.9 5.4 5.0 4.1 36.4 27.6 19.1 27.7% 0.7 0.6% 28.4%

DeNA Co., Ltd. 21.93 15.07 25.00 3,181 (669) 2,575 2.0 1.7 1.6 8.9 7.4 5.6 31.3 21.6 14.1 10.0% 1.4 8.0% 3.4%

GungHo Online Entertainment, Inc. 2.68 2.32 4.79 2,567 (762) 1,818 1.4 1.5 1.7 3.2 3.2 3.9 8.0 8.0 9.5 NA NA (13.4%) (24.1%)

Zynga, Inc. 2.32 1.78 2.96 2,027 (857) 1,169 1.5 1.5 1.4 NM 23.4 12.6 NM NM 37.0 21.0% 1.8 9.7% 1.9%

Gree, Inc. 5.53 4.50 7.34 1,293 (688) 605 0.9 1.0 1.0 3.4 4.1 4.1 NM 13.9 16.1 NA NA (2.2%) (18.4%)

Changyou.com Limited 18.75 15.21 30.01 953 (653) 330 0.5 0.6 0.6 1.5 2.3 2.3 5.0 7.9 7.4 4.0% 1.9 10.2% (37.8%)

Glu Mobile, Inc. 2.18 1.98 6.49 288 (159) 129 0.5 0.6 0.5 NM NM NM NM NM NM 15.0% NM 12.3% (21.5%)

Mean 3.3x 2.9x 2.5x 11.7x 10.6x 8.4x 25.2x 19.3x 17.7x 19.6% 1.1 10.2% 13.3%

Median 2.2 1.8 1.8 11.3 10.3 8.9 24.3 19.1 16.1 20.1% 0.9 10.0% 12.1%

Social Media & New Platform

Facebook, Inc. $108.97 $72.00 $135.60 $311,687 ($20,621) $291,066 14.7x 11.2x 8.4x 30.8x 18.1x 14.0x 66.6x 30.4x 23.5x 32.4% 0.7 33.0% 51.9%

Twitter, Inc. 15.84 39.40 38.82 11,034 719 11,753 4.9 4.3 3.6 NM 16.1 12.8 NM 30.6 23.4 32.9% 0.7 20.7% 36.4%

Pandora Media, Inc. 11.49 7.10 22.60 2,629 (110) 2,518 2.0 1.8 1.5 NM NM 61.6 NM NM NM 42.3% NM 18.3% 28.8%

Yelp Inc. 26.63 14.53 44.32 2,036 (375) 1,661 2.8 2.4 1.9 NM 16.8 11.7 NM 40.7 28.9 34.6% 0.8 24.8% 33.8%

Groupon, Inc. 2.98 2.15 5.32 1,728 (636) 1,093 0.4 0.4 0.3 35.6 9.2 5.8 NM NM 52.7 18.7% 2.8 3.9% (2.5%)

Mean 5.0x 4.0x 3.1x 33.2x 15.0x 21.2x NM 33.9x 32.1x 32.2% 1.3 20.1% 29.7%

Median 2.8 2.4 1.9 33.2 16.4 12.8 NM 30.6 26.2 32.9% 0.8 20.7% 33.8%


6


Notes:



Stock LTM EPS



SaaS

salesforce.com, inc. $76.07 $52.60 $84.48 $51,537 $34 $51,572 7.3x NA NA 98.7x 31.5x 25.7x NM NA 57.4x 28.9% 2.0 NA 26.8%

Workday, Inc. 69.46 47.32 85.67 13,684 (1,566) 12,118 9.6 7.8 6.0 NM 90.6 54.3 NM NM NM 37.0% NM 30.9% 37.6%

ServiceNow, Inc. 63.67 46.00 91.28 10,375 (418) 9,956 9.1 7.3 5.6 NM 40.0 25.7 NM NM 62.8 46.5% 1.4 30.3% 44.3%

The Ultimate Software Group, Inc. 195.02 148.26 216.27 5,631 (86) 5,545 8.4 7.1 5.8 86.1 28.6 23.1 NM 59.1 47.9 26.0% 1.8 21.9% 29.2%

NetSuite Inc. 67.36 51.75 102.46 5,418 (100) 5,319 6.7 5.5 4.3 NM 62.1 47.3 NM NM 93.8 22.3% 4.2 27.0% 31.4%

Shopify Inc. 27.16 18.48 41.11 2,293 (189) 2,103 8.7 6.1 4.4 NM NM NM NM NM NM 25.0% NM 39.0% 94.7%

Zendesk, Inc. 24.28 11.06 28.20 2,228 (256) 1,972 8.4 6.5 4.9 NM NM NM NM NM NM 22.5% NM 33.3% 62.1%

Cornerstone OnDemand, Inc. 36.63 22.25 43.38 2,017 (42) 1,976 5.4 4.6 3.7 NM 53.7 32.7 NM NM NM 20.0% NM 24.0% 34.3%

RealPage, Inc. 21.18 16.06 23.98 1,695 67 1,762 3.6 3.1 2.7 29.2 14.9 12.3 NM 29.3 24.0 20.0% 1.2 14.9% 16.2%

Cvent, Inc. 35.69 17.85 37.25 1,509 (177) 1,332 6.7 5.8 4.8 NM 45.8 34.1 NM NM NM 30.0% NM 21.2% 27.3%

HubSpot, Inc. 41.69 27.00 60.11 1,457 (107) 1,350 6.7 5.2 4.0 NM NM NM NM NM NM 38.1% NM 29.9% 54.5%

RingCentral, Inc. 19.21 13.88 25.67 1,389 (103) 1,286 4.1 3.5 2.9 NM 67.1 37.4 NM NM NM 25.0% NM 22.3% 32.5%

Box, Inc. 10.02 8.82 19.33 1,270 (127) 1,143 3.5 2.9 2.3 NM NM NM NM NM NM 73.9% NM 25.8% 37.4%

MINDBODY, Inc. 14.75 9.14 18.39 585 (76) 510 4.6 3.7 2.9 NM NM NM NM NM NM NA NA 27.8% 43.8%

AppFolio, Inc. 13.46 11.07 19.94 452 (21) 431 5.2 4.2 3.2 NM NM NM NM NM NM 30.0% NM 30.5% 46.5%

LivePerson Inc. 6.16 3.74 10.27 354 (45) 309 1.3 1.3 1.2 18.9 13.9 11.0 NM 81.5 31.9 20.0% 1.6 8.2% (7.2%)

ChannelAdvisor Corporation 13.56 8.71 15.00 345 (60) 286 2.7 2.5 2.2 NM NM 51.2 NM NM NM NA NA 14.7% 16.6%

Apigee Corporation 11.42 5.14 13.15 342 (68) 274 3.2 2.6 2.0 NM NM NM NM NM NM NA NA 29.8% 35.8%

Xactly Corporation 11.27 4.68 13.34 340 (31) 309 3.8 3.2 2.6 NM NM NM NM NM NM 25.0% NM 23.6% 30.5%

Bazaarvoice, Inc. 3.61 2.82 6.16 296 (53) 244 1.2 1.2 1.1 NM 58.2 21.6 NM NM NM NA NA 6.8% 5.0%

Jive Software, Inc. 3.66 2.84 5.49 280 (110) 171 0.9 0.9 0.9 NM 12.9 11.3 NM NM 48.5 NA NA (5.1%) 7.5%

Brightcove Inc. 8.16 4.70 9.00 267 (28) 239 1.7 1.6 1.5 NM 27.0 20.9 NM NM 69.0 15.0% 4.6 10.3% 10.4%

Marin Software Incorporated 2.31 1.88 7.08 88 (34) 54 0.5 0.5 0.5 NM 36.7 10.7 NM NM NM NA NA 1.3% 2.9%

Mean 4.9x 4.0x 3.2x 58.2x 41.6x 27.9x NM 56.6x 54.4x 29.7% 2.4 21.3% 31.3%

Median 4.6 3.6 2.9 57.6 38.3 25.7 NM 59.1 52.9 25.0% 1.8 23.8% 31.4%


7


Notes:


($MM)

Announced

DateAcquirer Target Enterprise Value

EV / LTM

Sales

EV / LTM

EBITDA

EV / NTM

Sales

EV / NTM

EBITDA

6/28/2016 $151 NA NA NA NA

6/27/2016 $157 0.4x NM 0.5x 8.8x

6/20/2016 $63 NA NA NA NA

6/13/2016 $24,610 7.7x NM 6.4x 23.3x

6/12/2016 $4,723 7.9x NM NA NA

6/10/2016 $260 5.7x 19.3x NA NA

6/8/2016 $148 NA NA NA NA

6/2/2016 $163 NA NA NA NA

6/2/2016 $2,614 4.1x NM 3.5x 30.5x

6/1/2016 $2,905 11.4x NM 9.1x NM

5/31/2016 $1,684 7.4x NM 5.8x NM

5/30/2016 $347 3.2x 36.9x 3.1x 14.6x

5/18/2016 $915 3.9x NM 3.4x 42.4x(2)

(2)

(2)

(2)

(2)

(2)

(3)

(3)

(4)

(2) (3)

(1)

Recent Acquisitions

8

Internet / Digital Media / SaaS: Trailing 6 Months

Notes:

Multiples 50x considered NM.

Disclosed transactions with Aggregate Value

($MM)

Announced


EV / LTM

Sales

EV / LTM

EBITDA

EV / NTM

Sales

EV / NTM

EBITDA

5/13/2016 $117 0.8x 17.0x NA NA

5/5/2016 $250 NA NA NA NA

5/5/2016 $71 0.5x 4.7x 0.6x 4.7x

5/3/2016 $115 NA NA NA NA

5/2/2016 $61 NA NA NA NA

5/2/2016 $566 3.8x NM 3.6x NM

4/29/2016 $789 1.6x 6.8x 1.5x 5.2x

4/28/2016 $631 6.8x NM 5.8x NM

4/28/2016 $4,069 4.4x 39.5x 4.4x 37.2x

4/22/2016 $90 0.5x NA NA NA

4/19/2016 $360 NA NA NA NA

4/18/2016 $1,473 7.8x NM 6.1x NM

4/5/2016 $168 NA NA NA NA

(1)(2)

Marketing Applications Business

(1)

(2)

(2)

(2)

(2)

(2)

(1)

Notes:



($MM)

Announced


EV / LTM

Sales

EV / LTM

EBITDA

EV / NTM

Sales

EV / NTM

EBITDA

4/4/2016 $275 NA NA NA NA

3/25/2016 $100 NA NA NA NA

3/22/2016 $540 NA NA NA NA

3/21/2016 $56 NA NA NA NA

3/21/2016 $200 NA NA NA NA

3/17/2016 $72 2.7x NM NA NA

3/7/2016 $207 1.7x NA NA NA

3/3/2016 $100 NA NA NA NA

3/1/2016 $260 NA NA NA NA

2/25/2016 $250 NA NA NA NA

2/24/2016 $400 10.7x NA NA NA

2/23/2016 $68 1.2x 11.3x NA NA

2/18/2016 $500 NA NA NA NA

(1)

(2)

(1)

(1)

Notes:



($MM)

Announced


EV / LTM

Sales

EV / LTM

EBITDA

EV / NTM

Sales

EV / NTM

EBITDA

2/14/2016 $389 4.1x 22.1x 3.1x 15.7x

2/12/2016 $85 NA NA NA NA

2/12/2016 $108 NA NA NA NA

2/4/2016 $100 NA NA NA NA

2/4/2016 $342 1.6x NA NA NA

2/3/2016 $1,400 11.7x NA NA NA

2/3/2016 $96 NA NA NA NA

2/1/2016 $379 6.6x NM 4.2x NA

1/20/2016 $130 NA NA NA NA

1/20/2016 $200 5.0x NA NA NA(5)

(4)

(3)

(3)

(1) (2)

Notes:



Offering Amounts $10MM or Greater

Primary Initial Initial Offering LTM

Issuer Industry Filing Date Amount ($MM) Description Revenue EBIT % EBITDA

Internet Software and Services 12/22/15 200

Nutanix, Inc., together with its subsidiaries,

provides enterprise cloud platform solutions that

converge traditional silos of server, virtualization,

and storage into one integrated solution.

283 (45.7%) (111)

IPO Pipeline

12

Internet / Digital Media / SaaS: IPOs in Public Registration

Notes:

Source: Dealogic, Capital IQ and SEC.gov.

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

Nu

mb

er

of

Inve

stm

en

ts

$B

n

Quarter - Year

Number of Deals Investment Amount

Notes:

(1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of: Computers and Peripherals, Electronics

/ Instrumentation, IT Services, Media and Entertainment, Networking and Equipment, Semiconductors, Software and Telecommunications.

Venture Capital Industry

13

TMT: Transactions Since 2001

(1)

GCA Savvian Advisors Overview

14

Selected Recent Digital Media and Software Transactions

Preferred Stock Equity Investment Acquisition of Acquired by Acquired by Acquired by Acquired by Preferred Stock Preferred Stock

Undisclosed

Financial Advisor Financial Advisor We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor

February 2016 February 2016 December 2015 August 2015 July 2015 July 2015 June 2015 June 2015 May 2015

Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by

Consortium Led by A subsidiary of

We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

April 2015 April 2015 March 2015 February 2015 December 2014 October 2014 October 2014 September 2014 September 2014

Sale of

Acquired by Acquired by Preferred Stock Acquisition of Acquisition of Acquisition of Acquisition of Acquisition of

to

We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller

August 2014 August 2014 August 2014 May 2014 April 2014 April 2014 March 2014 March 2014 November 2013

Sale of Entertainment Acquired by Acquired by Preferred Stock Acquired by Acquired by Acquired by Preferred Stock Acquired by

Store Assets to

Fairness Opinion for

We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor Buddy Media

September 2013 August 2013 August 2013 July 2013 July 2013 January 2013 September 2012 August 2012 August 2012

Sale of

Acquired by Acquired by Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by

to

We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

August 2012 June 2012 June 2012 May 2012 May 2012 April 2012 March 2012 February 2012 January 2012

Reality Media Holdings

Japan

Paul DiNardo Steve Fletcher Rich Jasen Seihun Kong John Lambros Joshua Wepman

Advisory Director Managing Director Managing Director Managing Director Managing Director Managing Director

Phone: (212) 999-7097 Phone: (415) 318-3661 Phone: (415) 318-3653 Phone: (415) 318-3682 Phone: (212) 999-7083 Phone: (212) 999-7092

Mobile: (415) 509-4501 Mobile: (415) 518-6725 Mobile: (415) 308-4760 Mobile: (415) 823-7300 Mobile: (917) 744-9011 Mobile: (917) 306-4168

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Ashley Ma Giuseppe Diprima Tomohiko Kubota Saif Malik

Director Vice President Vice President Vice President

Phone: (212) 999-7076 Phone: (212) 999-7088 Phone: +81 (3) 6212-7129 Phone: +44 (0) 207 038-3216

Mobile: (917) 575-0103 Mobile: (347) 622-1887 [email protected] Mobile: +44 (0) 778 606-8553

[email protected] [email protected] [email protected]

GCA Savvian

15

Digital Media / Software Team

San Francisco

150 California St., Ste. 2300

San Francisco, CA 94111

United States

Phone: (415) 318-3600

New York

640 Fifth Avenue, 10th

Fl.

New York, NY 10019

United States

Phone: (212) 999-7090

Tokyo

11-1 Marunouchi 1-chome

Chiyoda-ku, Tokyo 100-6230

Japan

Phone: +81 (3) 6212-7100

London

48 Dover Street

London W1S 4FF

United Kingdom

Phone: +44 (0) 207 038-3200

Weekly Internet / Digital Media / SaaS Sector Summary · 2016. 6. 29. · Weekly Internet / Digital...

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