Feb 27, 2017 - (9) Social Media includes: FB, LINE (3938-JP), P, TWTR, YELP. ...... (1) Enterprise Value and LTM multipl
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
