GCA Weekly Digital Media Sector Summary - GCA Savvian

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Feb 27, 2017 - Criteria based on internet/digital media/SaaS Series A and subsequent rounds of global financings ... Det
Weekly Internet / Digital Media / SaaS Sector Summary Week of February 27th, 2017 1

DEAL DASHBOARD Internet / Digital Media / SaaS 778

$42.5 Billion

$111.7 Billion

108

Financing Transactions 2016 (1)(2)

Financing Volume 2016 (1)(2)

M&A Volume 2016 (3)

M&A Transactions 2016 (3)

Quarterly Financing Volume ($Bn) (1)(2)

Quarterly M&A Volume ($Bn) (3)

Select M&A Transactions

Select Financing Transactions Company

Amount ($MM) $750.0 $653.0 $60.0 $60.0 $50.0

$15

$13 $9

$10

$8

$7

$8

$5 $0

250 194

150

143 149

210 201

226

$20.0

Acquirer

$55

Target

$36

$16

$20 $21

$14

$4.8 $4.7

Quarterly M&A Deal Count (3)

$4.3

30

20

50

10

0

0

$8.7

$6

$4

32 167

EV ($Bn) $26.2

40 184

100

$35.0

$60 $50 $40 $30 $20 $10 $0

Quarterly Financing Deal Count (1)(2)

200

$40.0

$14

$11 $10

32

31 25

17

25

26

20

$2.9 $2.9 $2.8

Last 12 Months Digital Media Price Performance vs. S&P 500 (4) 35% 30% 25% 20% 15% 10% 5% 0% (5%)

23%

20%

DM Composite

2

SPX

Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. 1) Criteria based on internet/digital media/SaaS Series A and subsequent rounds of global financings greater than or equal to $10MM. Excludes the $7.3Bn raise by Didi Chuxing on 6/15/2016. 2) Financings include Venture and Private Equity Growth/Expansion activity for internet/digital media/SaaS sectors. 3) Criteria based on global target internet/digital media/SaaS M&A deals with transaction enterprise values greater than $50MM. Excludes AT&T’s acquisition of Time Warner announced 10/22/2016. 4) Search/online advertising composite, internet commerce composite, internet content composite, diversified marketing composite, SaaS composite and social media composite used as proxy for internet/digital media/SaaS landscape. Details on companies included can be found on the public valuation company slides.

INDUSTRY STOCK MARKET VALUATION Internet / Digital Media / SaaS

Last 12 Months

Last 3 Months 115%

160%

11.5% 10.4% 10.2% 10.0% 9.0% 9.0% 7.0% 6.8% 4.9%

50.9% 46.1% 108%

140%

34.9% 28.6% 26.7% 23.7% 22.4%

120%

0.9%

100%

15.9% 11.1% 5.2% 93%

100%

80% 2/29/2016

4/21/2016

6/12/2016

8/3/2016

Search / Online Advertising

(1)

9/24/2016

11/15/2016

1/6/2017

Internet Commerce

(2)

(5)

Diversified Marketing

3

85% 11/29/2016

2/27/2017

Media Conglomerates

12/14/2016

Internet Content

(6)

Gaming

(7)

(3)

12/29/2016

1/13/2017

Publishers

SaaS

(8)

1/28/2017

(4)

2/12/2017

2/27/2017

NASDAQ

Social Media

Notes: (1) Search/Online Advertising Composite includes: CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, TRMR, TTD, YNDX, YUME. (2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TRVG, TZOO. (3) Internet Content Composite includes: CRCM, DHX, EHTH, GDDY, IAC, RATE, RENN, SCOR, SFLY, TGNA, 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: CBS, CMCSA, DIS, DISCA, FOXA, SNI, SONY (6758-JP), TRCO, VIAB. (7) Gaming Composite includes: ATVI, CYOU, DENA (2432-JP), EA, GAM, GLUU, GREE (3632-JP), GHO (3765-JP), NVR (A035420-KR), NCSOFT(A036570-KR), NTES, TENCENT (700-HK) ,UBI-FR, ZNGA. (8) SaaS Composite includes: APPF, APTI, BCOV, BOX, BV, COUP, CRM, CSOD, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, NOW, NTNX, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN. (9) Social Media includes: FB, LINE (3938-JP), P, TWTR, YELP.

(9)

INDUSTRY STOCK MARKET VALUATION Internet / Digital Media / SaaS: Financial Metrics

EV / 2016E Revenue 6.0x

5.7x

EV / 2016E EBITDA 50.0x

5.7x

5.0x 4.0x

3.9x

Mean: 3.2x Median: 2.9x

3.8x 2.9x

2.9x

40.0x

2.3x

1.0x 0.0x

4

Mean: 16.6x Median: 13.9x

30.0x

2.8x

3.0x 2.0x

39.1x

20.6x

1.7x

20.0x 10.0x

17.2x

14.4x

13.9x

13.4x

11.8x 10.0x

0.0x

Notes: (1) Search/Online Advertising Composite includes: CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, TRMR, TTD, YNDX, YUME. (2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TRVG, TZOO. (3) Internet Content Composite includes: CRCM, DHX, EHTH, GDDY, IAC, RATE, RENN, SCOR, SFLY, TGNA, 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: CBS, CMCSA, DIS, DISCA, FOXA, SNI, SONY (6758-JP), TRCO, VIAB. (7) Gaming Composite includes: ATVI, CYOU, DENA (2432-JP), EA, GAM, GLUU, GREE (3632-JP), GHO (3765-JP), NVR (A035420-KR), NCSOFT(A036570-KR), NTES, TENCENT (700-HK) ,UBI-FR, ZNGA. (8) SaaS Composite includes: APPF, APTI, BCOV, BOX, BV, COUP, CRM, CSOD, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, NOW, NTNX, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN. (9) Social Media includes: FB, LINE (3938-JP), P, TWTR, YELP.

9.0x

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/27/17

LTM Price Range High Low

Equity Value

Net Debt

Enterprise Value

LTM

EV / Revenue CY 16E

CY 17E

LTM

EV / EBITDA CY 16E

CY 17E

LTM

Price / EPS CY 16E

CY 17E

EPS Long Term Growth

Revenue Growth Y/Y MRQ 17E/16E

PEG

Search / Online Advertising Alphabet Inc. Microsoft Corporation Yandex N.V. Criteo SA (1) The Trade Desk, Inc. (1) The Rubicon Project, Inc. (1) RhythmOne plc QuinStreet, Inc. Rocket Fuel Inc. YuMe, Inc. Marchex, Inc. Tremor Video, Inc. Marin Software Incorporated MaxPoint Interactive, Inc.

$849.67 64.23 23.18 49.51 36.83 8.74 0.47 3.37 2.99 3.79 2.60 2.15 2.30 4.70

$672.66 48.04 12.83 32.83 22.00 6.12 0.19 2.61 1.70 3.11 2.46 1.45 1.88 3.85

$867.00 65.91 25.00 48.04 38.14 20.37 0.55 4.32 4.10 4.36 4.68 2.76 3.44 11.94

$587,479 496,339 7,478 3,168 1,443 429 231 153 136 130 113 112 89 31

($82,398) (33,399) (723) (185) (108) (193) (41) (37) 2 (60) (104) (42) (33) 2

$505,081 462,940 6,779 2,993 1,335 235 190 116 139 70 9 70 55 33 Mean Median

5.6x 5.4 5.5 6.3 6.6 0.8 1.2 0.4 0.3 0.4 0.1 0.4 0.5 0.2

5.7x 5.0 5.6 4.2 6.9 0.9 1.1 0.5 0.3 0.4 0.1 0.4 0.6 0.4

4.8x 4.6 4.3 3.2 4.9 0.9 0.8 0.5 0.3 0.5 0.1 0.4 0.6 0.3

16.9x 16.7 18.5 16.6 22.4 5.0 NM NM NM 37.1 NM NM NM NM

14.0x 13.2 15.9 14.1 24.0 3.6 NM 25.1 10.9 8.6 NM NM NM NM

11.7x 12.4 12.9 10.5 18.4 3.8 16.6 11.9 16.3 4.8 NM 15.4 20.8 37.3

30.5x 30.2 68.1 39.6 NM 19.7 NM NM NM NM NM NM NM NM

24.5x 22.5 31.5 26.3 48.8 9.2 NM 85.8 NM NM NM NM NM NM

20.5x 21.2 25.4 19.5 42.9 13.5 38.3 NM NM 14.1 NM NM NM NM

17.5% 10.3% 23.7% 28.3% 45.2% NM NM NM 3.0% NA 15.0% NA NA 20.0%

1.2 2.0 1.1 0.7 0.9 NM NM NM NM NA NM NA NA NM

17.9% 8.6% 29.1% 31.5% 40.6% (1.1%) 34.5% 2.1% 5.3% (8.6%) (25.7%) 15.0% (3.5%) 5.1%

22.2% 1.2% 43.6% 35.0% 69.7% 2.4% (11.7%) 1.0% (0.5%) (15.4%) (18.6%) 42.0% (8.8%) 4.0%

2.4x 0.7

2.3x 0.7

1.9x 0.7

19.0x 16.9

14.4x 14.0

14.8x 12.9

37.6x 30.5

35.5x 26.3

24.4x 20.8

20.4% 18.8%

1.2 1.1

10.8% 7.0%

11.9% 1.8%

7.1x 2.0 2.9 2.1 2.8 1.4 3.5 2.8 2.2 12.6 2.5 1.4 2.4 1.4 0.8

7.2x 2.0 2.9 2.1 2.8 1.4 2.5 2.7 2.2 9.2 2.4 1.4 2.5 1.4 0.8

5.8x 2.0 2.8 1.8 2.7 1.4 2.2 2.3 2.1 6.1 2.2 1.2 2.3 1.4 0.9

NM 15.6 8.0 16.8 9.8 11.5 34.3 12.6 11.6 NM 18.2 50.9 22.3 6.6 NM

43.2x 12.4 7.8 9.5 8.6 7.4 10.7 10.2 8.9 NM 11.8 19.1 14.7 5.3 24.7

28.9x 10.6 8.5 7.5 8.3 7.4 8.4 9.4 8.2 NM 10.6 13.3 11.6 6.3 NM

NM NM 12.7 NM 26.6 NM NM NM NM NM 74.3 NM NM NM NM

NM 29.4 11.4 22.9 27.4 71.7 15.0 17.9 7.3 NM 47.8 65.0 35.0 13.9 34.5

77.2x 22.6 13.6 17.2 26.1 73.7 13.0 16.2 6.9 NM 40.3 35.2 23.8 18.3 NM

55.0% 17.9% NA NM 10.0% 29.0% 30.0% 16.0% 6.8% 20.0% 17.5% 17.5% 26.0% NM 10.0%

1.4 1.3 NA NM 2.6 2.5 0.4 1.0 1.0 NM 2.3 2.0 0.9 NM NM

23.9% 0.2% 3.7% 18.1% 1.9% (0.1%) 17.0% 13.2% 3.7% 50.6% 10.3% 13.0% 5.4% (4.1%) (8.8%)

34.4% (4.4%) 36.6% 14.2% 8.0% 2.4% 8.4% 29.2% 35.3% NA 5.8% 12.7% (9.3%) (15.6%) (12.7%)

3.2x 2.4

2.9x 2.4

2.5x 2.2

18.2x 14.1

13.9x 10.4

10.7x 8.5

37.9x 26.6

30.7x 27.4

29.5x 22.6

21.3% 17.7%

1.6 1.3

9.9% 5.4%

10.4% 8.2%

Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. WebMD Health Corp. Shutterfly, Inc. comScore, Inc. Bankrate, Inc. Web.com Group, Inc. Renren Inc. XO Group Inc. Care.com, Inc. TechTarget, Inc. DHI Group, Inc. eHealth, Inc.

$34.51 74.44 25.66 37.18 52.25 45.68 24.28 11.20 19.90 8.24 18.63 10.24 9.17 5.00 11.73

$20.87 44.15 17.91 28.11 48.10 41.91 20.81 6.91 12.90 7.55 13.92 5.78 6.71 4.60 6.38

$39.99 77.46 25.38 37.54 67.55 54.60 43.48 11.90 22.50 17.80 20.99 12.00 9.43 8.43 15.14

$6,178 5,784 5,502 3,293 1,918 1,537 1,388 1,009 926 561 474 295 252 248 215

$6,039 6,142 9,633 3,931 1,971 1,622 1,274 1,169 1,570 584 373 224 261 310 153

($139) 184 4,131 467 54 85 (114) 159 644 24 (101) (71) 9 62 (62) Mean Median

5

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. (1) Revenue multiples reflective of Net Revenue.

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/27/17

LTM Price Range Low High

Equity Value

Net Debt

Enterprise Value

LTM

EV / Revenue CY 16E

CY 17E

LTM

EV / EBITDA CY 16E

CY 17E

LTM

Price / EPS CY 16E

CY 17E

EPS Long Term Growth

Revenue Growth 17E/16E Y/Y MRQ

PEG

Internet Commerce Amazon.com, Inc. Alibaba Group Holding Limited The Priceline Group Inc. Netflix, Inc. eBay Inc. Expedia, Inc. QVC Group Copart, Inc. GrubHub Inc. trivago N.V. (1) Cimpress N.V. Stamps.com Inc. Shutterstock, Inc. Etsy, Inc. Quotient Technology Inc. 1-800-FLOWERS.COM, Inc. Overstock.com, Inc. Angie's List, Inc. Travelzoo Inc. CafePress Inc.

$848.64 103.60 1,632.01 143.41 34.28 118.69 19.95 59.52 36.23 12.06 81.43 127.80 43.02 12.79 12.35 10.20 18.35 5.55 9.20 3.15

$538.58 67.56 1,148.06 84.50 22.30 96.58 17.88 37.69 21.41 10.88 80.47 68.82 32.97 7.31 8.38 6.74 13.05 5.22 7.43 2.80

$860.86 109.87 1,664.99 145.95 34.23 133.55 27.25 60.56 44.58 14.20 104.18 136.00 65.16 16.05 14.36 11.40 20.50 10.76 13.27 3.95

$404,946 259,000 80,532 61,725 37,264 17,781 9,317 6,820 3,101 2,883 2,532 2,179 1,511 1,478 1,101 669 467 330 127 52

($5,568) (7,448) 2,867 1,631 1,811 1,290 6,104 537 (324) (240) 839 39 (279) (258) (152) (3) (124) 19 (27) (35)

$399,378 252,292 83,398 63,356 39,075 20,632 15,543 7,357 2,777 2,854 3,413 2,218 1,232 1,220 949 666 340 349 100 17 Mean Median

2.9x 12.2 7.8 7.2 4.4 2.4 1.5 5.3 5.6 3.6 1.8 6.1 2.5 3.6 3.4 0.6 0.2 1.1 0.8 0.2

2.9x 17.5 7.8 7.2 4.3 2.4 1.5 5.4 5.6 3.6 1.8 6.2 2.5 3.4 3.5 0.6 0.2 1.1 0.8 0.2

2.4x 13.6 6.7 5.6 4.2 2.1 1.5 4.9 4.3 2.6 1.5 5.3 2.2 2.7 3.0 0.5 0.2 1.2 0.8 0.2

34.2x 33.0 20.1 NM 13.0 19.2 8.8 15.1 23.3 NM 23.3 15.9 18.7 33.0 NM 8.5 17.3 72.5 7.4 NM

26.3x 34.0 19.3 NM 11.4 12.7 8.1 14.8 19.2 NM 12.8 13.5 12.6 21.6 34.1 7.8 9.7 13.8 8.1 29.9

20.3x 27.3 16.5 58.8 11.1 11.2 7.8 13.3 15.4 41.6 10.9 10.6 11.4 16.3 21.0 6.8 13.2 12.5 8.8 14.4

NM 50.3 38.3 NM 5.4 65.2 7.6 18.0 62.5 NM NM 31.0 47.3 NM NM 25.3 37.4 NM 35.4 NM

NM 42.5 23.6 NM 18.2 25.2 11.8 25.1 39.8 NM 27.7 15.3 27.5 NM NM 24.0 NM NM 20.8 NM

NM 34.1 20.7 NM 17.0 21.8 10.8 22.8 33.1 87.8 22.2 18.5 28.9 50.2 49.4 20.7 NM NM 24.9 NM

43.1% 24.5% 19.5% 43.7% 9.2% 19.9% 12.8% 16.6% 23.1% NA 21.1% 22.0% 15.0% 10.0% 45.8% 19.0% NA 8.0% 5.0% NA

NM 1.4 1.1 NM 1.9 1.1 0.8 1.4 1.4 NA 1.1 0.8 1.9 5.0 1.1 1.1 NA NM 5.0 NA

20.6% 28.7% 15.4% 27.4% 4.8% 14.4% 2.8% 9.1% 30.6% 38.5% 17.4% 17.4% 10.6% 22.7% 16.1% 2.7% 8.2% (8.0%) (4.8%) 6.3%

22.4% 44.1% 17.4% 35.9% 3.1% 23.2% 14.7% 16.6% 37.5% 65.6% 16.2% 51.5% 12.2% 33.3% 8.7% 1.1% 9.6% (11.1%) (8.7%) (1.6%)

3.6x 3.2

3.9x 3.1

3.3x 2.5

22.7x 19.0

17.2x 13.7

17.5x 13.3

35.3x 36.4

25.1x 24.6

30.9x 22.8

21.1% 19.5%

1.8 1.2

14.0% 14.9%

19.6% 16.4%

3.0x 3.5 2.6 0.6 2.7 2.3 3.8 4.1 2.8

3.0x 3.5 2.6 0.6 2.5 NA 3.8 4.1 2.8

2.8x 3.4 2.5 0.6 2.6 2.3 3.6 3.8 3.0

9.0x 11.6 10.6 8.1 11.6 10.3 10.2 9.1 14.1

9.0x 11.3 10.5 7.8 10.6 10.7 10.2 10.0 10.2

8.6x 10.7 10.0 5.1 11.2 9.4 9.9 9.5 13.6

21.0x 19.9 20.7 NM 19.1 12.5 14.8 15.6 NM

21.7x 19.8 15.8 NM 16.1 NA 13.8 15.3 44.1

19.9x 18.1 15.7 16.1 15.2 11.0 12.5 14.8 73.1

10.8% 9.1% 10.8% 18.0% 14.6% 2.1% 11.7% 10.3% NA

1.8 2.0 1.5 0.9 1.0 5.4 1.1 1.4 NA

4.7% 3.9% 4.8% 9.6% (5.2%) NA 5.1% 6.2% (9.4%)

9.2% (3.0%) 4.2% (4.4%) NA 5.4% 1.6% 4.3% 6.0%

2.8x 2.8

2.9x 2.9

2.7x 2.8

10.5x 10.3

10.0x 10.2

9.8x 9.9

17.7x 19.1

21.0x 16.1

21.8x 15.7

10.9% 10.8%

1.9 1.5

2.5% 4.8%

2.9% 4.3%

3.3x 0.8 1.5 4.2 0.6 1.0 1.3 2.2 0.9 0.4

3.3x 0.8 1.5 4.3 0.7 NA 1.3 2.2 0.9 0.4

3.2x 0.8 1.4 3.6 0.7 NA 1.3 2.3 0.9 0.4

16.5x 10.0 20.4 15.0 8.7 6.2 9.7 11.3 6.4 3.9

11.7x 7.4 8.7 15.0 8.0 NA 9.0 10.8 6.5 4.1

11.0x 7.2 8.6 11.6 7.8 NA 9.2 18.0 6.5 4.0

31.9x NM NM 37.4 26.7 18.1 77.9 28.5 NM 20.3

20.7x 41.3 11.8 20.2 13.0 NA 28.6 27.6 14.8 8.4

18.3x 28.4 13.3 14.7 12.2 NA 28.2 NM 14.2 9.8

8.0% 7.0% NM 6.8% 7.9% NA NA 19.7% 8.5% NA

2.3 4.0 NM 2.2 1.6 NA NA NM 1.7 NA

0.6% (1.7%) 7.3% 18.7% (2.0%) NA 1.2% (1.8%) (2.6%) 5.4%

(9.1%) (2.1%) NA NA 3.2% 2.1% (1.1%) 33.1% (1.0%) 17.3%

1.6x 1.2

1.7x 1.3

1.6x 1.3

10.8x 9.8

9.0x 8.7

9.3x 8.6

34.4x 28.5

20.7x 20.2

17.4x 14.5

9.6% 7.9%

2.3 2.2

2.8% 0.6%

5.3% 0.6%

Media Conglomerates / Selected Entertainment Comcast Corporation The Walt Disney Company Twenty-First Century Fox, Inc. Sony Corporation CBS Corporation Viacom, Inc. Discovery Communications, Inc. Scripps Networks Interactive, Inc. Tribune Media Company

$37.53 110.23 30.43 30.83 66.23 43.50 29.05 80.71 34.94

$28.85 90.32 23.33 20.65 47.88 33.94 23.66 58.73 27.75

$38.44 111.99 31.75 32.36 68.14 46.69 29.91 83.42 40.72

$177,973 174,301 56,321 38,911 27,124 17,265 17,159 10,442 3,054

$55,973 16,754 15,363 (4,638) 8,777 11,857 7,463 3,079 2,772

$237,623 195,022 73,477 39,706 35,901 29,373 24,865 13,850 5,832 Mean Median

Publishers Thomson Reuters Corporation News Corporation Pearson plc UBM plc Lagardère SCA Graham Holdings Company The New York Times Company The E. W. Scripps Company Time Inc. Gannett Co., Inc.

$42.76 13.06 8.22 9.29 24.91 539.90 14.80 22.53 17.80 8.94

$37.13 10.54 6.88 7.04 19.49 440.55 10.60 12.16 12.50 7.30

$45.90 14.68 12.34 9.70 28.56 547.80 16.35 21.91 20.40 17.72

$31,106 7,597 6,710 3,656 3,192 3,019 2,386 1,846 1,761 1,015

$5,173 (1,209) 1,559 744 1,931 (589) (303) 259 904 286

$36,762 6,661 8,274 4,443 5,266 2,442 2,079 2,105 2,665 1,301 Mean Median

6

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. (1) Reflects Expedia's 63.5% controlling equity stake.

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/27/17

LTM Price Range Low High

Equity Value

Net Debt

$15.01 14.51 40.28 104.66 185.02 20.82 6.90 19.11 2.75 0.85

$30,187 18,573 15,989 15,678 14,253 9,640 3,629 2,276 489 99

$5,649 3,161 7,177 2,543 19,090 590 99 99 909 54

Enterprise Value

LTM

EV / Revenue CY 16E

CY 17E

LTM

EV / EBITDA CY 16E

CY 17E

LTM

Price / EPS CY 16E

CY 17E

EPS Long Term Growth

Revenue Growth 17E/16E Y/Y MRQ

PEG

Diversified Marketing WPP plc Experian plc Nielsen Holdings plc Equifax Inc. Alliance Data Systems Corporation The Interpublic Group of Companies, Inc. Havas SA Acxiom Corporation MDC Partners Inc. Harte Hanks, Inc.

$23.57 19.96 44.72 130.81 246.77 24.55 8.65 29.15 8.85 1.60

$23.79 20.18 55.94 136.97 245.11 25.33 9.40 30.40 23.90 3.73

$36,445 21,748 23,357 18,280 33,343 10,523 3,742 2,375 1,524 153 Mean Median

2.1x 4.7 3.7 5.8 4.7 1.3 1.5 2.7 1.1 0.3

2.1x 4.7 3.7 5.8 4.6 1.3 1.6 2.7 1.1 0.3

1.9x 4.6 3.5 5.4 4.3 1.3 1.5 2.6 1.0 0.3

14.3x 15.5 14.4 16.3 21.3 9.6 9.4 26.1 10.7 12.0

12.6x 13.7 12.2 16.3 16.0 9.5 9.5 15.4 9.1 4.2

11.2x 13.2 11.5 14.6 15.8 8.8 8.9 13.2 7.4 3.4

27.5x 22.6 32.2 32.4 33.6 16.5 18.5 NM NM NM

17.1x 22.1 16.3 23.9 14.6 18.7 17.7 44.4 NM 11.4

14.8x 21.2 16.7 21.7 13.4 16.8 16.4 38.3 14.7 7.6

9.3% 10.0% 7.8% 11.3% 16.5% 9.7% 7.4% 18.0% NA NA

1.6 2.1 2.1 1.9 0.8 1.7 2.2 2.1 NA NA

12.0% 2.5% 4.8% 8.2% 6.8% 2.1% 5.1% 5.0% 7.8% 0.5%

(5.4%) 2.6% 2.0% 20.2% 4.5% 3.1% 4.8% 1.0% 8.8% (10.4%)

2.8x 2.4

2.8x 2.4

2.6x 2.2

15.0x 14.4

11.8x 12.4

10.8x 11.3

26.2x 27.5

20.7x 17.7

18.2x 16.5

11.2% 9.8%

1.8 2.0

5.5% 5.0%

3.1% 2.9%

12.3x 6.4 5.4 5.1 5.5 1.1 5.6 2.5 2.1 2.0 1.4 1.4 1.1 0.8

11.7x 6.4 5.5 5.0 5.5 1.1 5.8 2.7 2.1 2.0 1.4 1.4 1.1 0.8

8.6x 4.7 5.6 4.6 4.5 1.0 4.2 1.9 2.0 1.9 1.6 1.5 1.0 0.8

28.9x 18.8 15.6 19.1 17.7 8.4 15.3 17.4 8.5 NM 3.3 8.0 3.4 NM

27.8x 19.1 15.5 15.4 17.4 7.6 16.3 5.3 8.7 26.2 3.3 7.8 4.0 NM

21.3x 14.5 14.8 13.7 13.3 5.9 10.3 4.9 6.3 16.6 4.0 10.7 3.1 NM

45.4x 23.9 35.7 21.1 NA 18.9 NA 36.6 12.1 NM 8.4 10.6 10.1 NM

39.9x 22.5 22.7 25.5 33.8 19.9 24.4 33.4 20.9 NM 7.9 14.3 10.1 NM

30.3x 17.9 23.6 21.5 25.8 17.2 16.3 17.2 14.4 38.7 8.6 20.0 8.2 NM

27.8% 28.6% 20.7% 12.6% 29.8% 19.8% 35.3% 26.2% 22.3% 21.0% NA NA NM 15.0%

1.1 0.6 1.1 1.7 0.9 0.9 0.5 0.7 0.6 1.8 NA NA NM NM

35.6% 36.9% (1.5%) 8.4% 22.5% 16.3% 39.2% 37.1% 3.9% 8.7% (13.5%) (3.1%) 11.8% 8.3%

44.8% 43.2% 49.0% 7.4% 19.2% 34.4% 17.4% 36.7% (2.0%) 2.6% (26.6%) (12.8%) (19.4%) (24.1%)

3.8x 2.3

3.8x 2.4

3.1x 2.0

13.7x 15.4

13.4x 15.4

10.7x 10.7

22.3x 20.0

22.9x 22.6

20.0x 17.9

23.6% 22.3%

1.0 0.9

15.0% 10.2%

12.1% 12.4%

13.2x 4.8 5.1 2.3 3.1

13.3x 4.8 5.0 2.3 3.1

9.6x 5.1 4.1 2.0 2.5

24.6x 89.5 34.7 NM 64.9

20.6x 17.0 25.3 NM 19.3

15.4x 20.4 18.3 NM 13.6

39.1x NM 89.3 NM NM

32.9x 30.9 NM NM 47.2

25.2x 50.6 44.0 NM 32.6

27.1% 9.5% 50.9% 38.3% 32.9%

0.9 5.3 0.9 NM 1.0

38.3% (7.2%) 21.5% 18.7% 24.8%

50.8% 0.9% 19.3% 16.8% 26.7%

5.7x 4.8

5.7x 4.8

4.7x 4.1

53.4x 49.8

20.6x 20.0

16.9x 16.9

64.2x 64.2

37.0x 32.9

38.1x 38.3

31.7% 32.9%

2.0 1.0

19.2% 21.5%

22.9% 19.3%

Gaming Tencent Holdings Limited NetEase, Inc. Activision Blizzard, Inc. Electronic Arts Inc. Naver Corporation Gamesa Corporación Tecnológica, S.A. NCsoft Corporation Ubisoft Entertainment SA DeNA Co., Ltd. Zynga Inc. GungHo Online Entertainment, Inc. Gree, Inc. Changyou.com Limited Glu Mobile Inc.

$27.08 301.76 45.69 87.00 704.14 22.37 247.69 36.89 22.61 2.69 2.31 6.27 27.40 2.00

$17.99 130.82 30.37 61.10 504.22 15.93 188.42 26.23 14.57 2.11 2.02 4.12 17.41 1.73

$28.45 307.79 47.64 88.28 798.79 23.49 288.38 41.30 35.30 3.08 3.09 6.27 30.28 3.82

$254,094 39,675 33,957 26,819 20,284 6,194 5,261 4,144 3,281 2,362 1,644 1,472 1,392 267

($443) (4,690) 1,642 (3,229) (2,342) (837) (683) (42) (709) (852) (292) (704) (831) (102)

$255,173 35,023 35,599 23,590 18,388 5,357 4,586 4,102 2,635 1,509 1,367 768 592 165 Mean Median

Social Media & New Platform Facebook, Inc. Twitter, Inc. LINE Corporation Pandora Media, Inc. Yelp Inc.

$136.41 16.06 33.96 13.17 34.07

$104.40 39.40 31.15 8.05 18.65

$136.79 26.20 46.68 14.98 43.41

$394,222 11,393 7,403 3,099 2,673

($29,449) 803 (1,213) 105 (480)

$364,773 12,196 6,191 3,204 2,194 Mean Median

7

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

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/27/17

LTM Price Range Low High

Equity Value

Net Debt

$66.43 59.00 54.94 170.03 21.90 23.11 18.95 11.06 28.71 9.86 39.01 13.88 23.52 11.61 11.07 11.76 13.04 4.97 5.75 3.00 3.20 10.28 5.68 1.88

$56,809 18,128 14,567 5,908 5,373 4,285 2,696 2,656 2,396 2,279 2,204 2,009 1,311 1,098 844 526 514 409 385 385 340 279 279 89

$1,315 (1,462) (392) (80) (395) (347) 17 (225) (64) (190) (113) (145) (221) (70) (26) (61) (79) (51) (27) (49) (109) (62) (36) (33)

Enterprise Value

LTM

EV / Revenue CY 16E

CY 17E

LTM

EV / EBITDA CY 16E

CY 17E

Price / EPS CY 16E

LTM

CY 17E

EPS Long Term Growth

Revenue Growth 17E/16E Y/Y MRQ

PEG

SaaS salesforce.com, inc. Workday, Inc. ServiceNow, Inc. The Ultimate Software Group, Inc. Shopify Inc. Nutanix, Inc. RealPage, Inc. Zendesk, Inc. Cornerstone OnDemand, Inc. Box, Inc. HubSpot, Inc. RingCentral, Inc. Coupa Software Incorporated MINDBODY, Inc. AppFolio, Inc. Everbridge, Inc. Apptio, Inc. LivePerson, Inc. Xactly Corporation Bazaarvoice, Inc. Jive Software, Inc. ChannelAdvisor Corporation Brightcove Inc. Marin Software Incorporated

$81.54 90.19 87.75 199.17 59.93 30.12 33.50 27.86 42.65 18.00 60.95 27.30 26.23 27.05 25.05 19.39 13.38 7.05 12.30 4.65 4.35 10.75 8.20 2.30

$84.48 93.35 94.72 224.07 64.36 46.78 34.80 31.88 47.75 18.36 62.30 26.30 41.61 26.60 24.80 20.66 24.60 8.85 16.10 6.14 4.59 15.91 13.80 3.44

$58,124 16,666 14,176 5,828 4,978 3,938 2,713 2,431 2,333 2,089 2,091 1,864 1,090 1,028 818 466 435 358 358 336 231 217 243 55 Mean Median

8

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

7.4x 10.6 10.2 7.5 12.8 7.5 4.8 7.8 5.5 5.6 7.7 4.9 8.9 7.4 7.7 6.1 2.7 1.6 3.9 1.7 1.1 1.9 1.6 0.5

6.9x 10.7 10.2 7.5 13.1 6.9 4.8 7.8 5.5 5.3 7.8 4.9 8.3 7.4 7.8 6.1 2.7 1.6 3.8 1.7 1.1 1.9 1.6 0.6

5.7x 8.4 7.7 6.0 8.3 4.5 4.2 5.8 4.9 4.2 5.9 3.8 6.6 5.7 6.0 4.9 2.4 1.7 3.1 1.6 1.1 1.8 1.5 0.6

NM NM NM 86.2 NM NM 31.2 NM NM NM NM NM NM NM NM NM NM NM NM NM 76.8 NM NM NM

33.8x NM 54.4 31.3 NM NM 21.7 NM 68.7 NM NM 86.7 NM NM NM NM NM 18.9 NM 25.7 13.7 42.1 32.9 NM

27.4x 76.0 35.5 24.9 NM NM 17.9 NM 44.7 NM NM 62.2 NM NM NM NM NM 19.2 NM 19.0 10.5 32.6 27.8 20.8

NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM

83.3x NM NM 61.4 NM NM 45.1 NM NM NM NM NM NM NM NM NM NM NM NM NA 66.9 NM NM NM

63.5x NM 81.5 50.2 NM NM 37.2 NM NM NM NM NM NM NM NM NM NM 79.8 NM NM 41.4 NM 85.4 NM

27.1% 32.6% 41.6% 26.8% 25.0% 30.0% 20.0% 25.0% 21.3% NM 25.0% 28.3% NA 15.0% 30.0% 20.0% NM 20.0% 22.5% NA NA NA 15.0% NA

2.3 NM 2.0 1.9 NM NM 1.9 NM NM NM NM NM NA NM NM NM NM 4.0 NM NA NA NA 5.7 NA

21.4% 27.6% 32.8% 24.1% 57.5% 52.1% 14.7% 35.2% 13.6% 26.0% 30.9% 29.2% 25.4% 30.1% 30.1% 25.8% 13.6% (8.1%) 19.4% 4.4% 0.9% 8.8% 9.1% (3.5%)

25.3% 35.0% 35.0% 23.4% 85.8% 90.1% 22.5% 41.5% 13.7% 30.7% 43.9% 25.2% 55.4% 35.1% 37.3% 31.2% 27.2% (5.1%) 25.4% 1.0% 3.1% 7.9% 9.9% (8.8%)

5.7x 5.8

5.7x 5.8

4.4x 4.7

64.8x 76.8

39.1x 32.9

32.2x 27.4

NM NM

64.2x 64.2

62.7x 63.5

25.0% 25.0%

3.0 2.2

21.7% 24.7%

28.8% 26.3%

PUBLIC SAAS COMPANIES Valuation Correlation to Growth and Cash Flow Selected Public Saas Companies Company

Identifier

12.0x

APPF

R = 0.84

APTI BCOV

10.0x

BOX

COUP CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP

Enterprise Value / CY 2017E Revenue

BV

WDAY

SHOP

8.0x NOW COUP

APPF

ULTI

HUBS

6.0x

CSOD

CRM

ZEN

MB EVGB

NTNX RP

BOX

4.0x

RNG APTI 2.0x

XTLY

ECOM

LPSN

JIVE

SHOP

BV BCOV

MRIN

ULTI WDAY

(10%)

0%

10%

20%

30%

40%

50%

XTLY ZEN

CY 2017E Revenue Growth % + CY 2017E FCF Margin % 9

Notes: Source: Capital IQ and Wall Street Estimates. When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.7.

60%

70%

PUBLIC SAAS COMPANIES Valuation Correlation to S&M Effectiveness Selected Public Saas Companies Company

Identifier

R = 0.85

14.0x

APPF

SHOP

APTI BCOV

12.0x

BOX

WDAY

COUP CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP

Enterprise Value / CY 2016E Revenue

BV

NOW

10.0x

8.0x

HUBS

CRM

ZEN

COUP

MB

ULTI

APPF

NTNX

6.0x

CSOD

EVBG

BOX

RNG

4.0x

RP

XTLY APTI

LPSN

SHOP

2.0x

BV ECOM BCOV JIVE

MRIN

ULTI WDAY

(0.4x)

(0.2x)

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

XTLY ZEN

Annual Change in Revenue (CY16E) / LTM Sales & Marketing Expense 10

Notes: Source: Capital IQ and Wall Street Estimates.

1.6x

RECENT ACQUISITIONS Internet / Digital Media / SaaS ($MM) Announced Date

Acquirer

Target

Enterprise Value

EV / LTM Sales

EV / LTM EBITDA

EV / NTM Sales

EV / NTM EBITDA

5.4x

NA

NA

NA

2.4x

33.6x

2.3x

19.7x

2.8x

NA

NA

NA

1.3x

NA

NA

NA

(1)

2/22/2017

$325

2/23/2017

$170

2/22/2017

$310

2/15/2017

$102

2/10/2017

$4,300

NA

10.9x

NA

NA

2/8/2017

$100

NA

NA

NA

NA

2/2/2017

$834

NA

NA

NA

NA

1/24/2017

$3,902

18.9x

NA

NA

NA

1/24/2017

$75

NA

NA

NA

NA

1/20/2017

$84

NA

NA

NA

NA

1/19/2017

$800

4.6x

NA

NA

NA

1/17/2017

$413

NA

NA

NA

NA

1/10/2017

$150

2.5x

NA

NA

NA

(1) (2)(3)

(1)

(1)

(1) (HR and Benefits BPO business)

(4)

(4)

(4)

11

Notes: Multiples 50x considered NM. Disclosed transactions with Enterprise Value