GCA Weekly Digital Media Sector Summary - GCA Savvian

Internet / Digital Media / SaaS Sector Summary Week of April 17th, 2017

1

DEAL DASHBOARD Internet / Digital Media / SaaS 184

$15.1 Billion

$15.0 Billion

26

2017 Financing Transactions (1)(2)(3)

2017 Financing Volume (1)(2)(3)

2017 M&A Volume (3)(4)

2017 M&A Transactions (3)(4)

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

Quarterly M&A Volume ($Bn) (4)

Select M&A Transactions

Select Financing Transactions Company

Amount ($MM) $1,003.3 $400.0 $115.0 $106.0 $104.0

$15

$13 $9

$10

$8

$7

$8

$5 $0

250 194

150

143 149

210 201

226

Acquirer

$55 $36 $16

$20 $21

167 177

$14 $14

0

0

$55.0

$3.9

$0.8 $0.6

32

10

$4.3

$0.8

30

50

EV ($Bn)

$6

$4

Quarterly M&A Deal Count (3)

20

Target (H R & B e n e f it s B P O )

40

184

100

$56.0

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

Quarterly Financing Deal Count (1)(2)

200

$61.1

$14

$14

$11 $10

32

31 25

17

20

25

26

21

$0.4 $0.4 $0.3

Last 12 Months Digital Media Price Performance vs. S&P 500 (5) 22%

12%

DM Composite

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. 2) Financings include Venture and Private Equity Growth/Expansion activity for internet/digital media/SaaS sectors. 3) Figures reflect total transactions and volume to date 2017. 4) Criteria based on global target internet/digital media/SaaS M&A deals with transaction enterprise values greater than $50MM. 5) 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.

2

GCA OVERVIEW Digital Media / Software Team

New York

San Francisco

th

25th Fl.

One Maritime Plaza, San Francisco, CA 94111 United States Phone: (415) 318-3600

640 Fifth Avenue, 10 Fl. New York, NY 10019 United States Phone: (212) 999-7090

Tokyo

London

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230 Japan Phone: +81 (3) 6212-7100

1 Southampton St. London WC2R0LR United Kingdom Phone: +44 20 7484 4040

Paul DiNardo

Steve Fletcher

Rich Jasen

John Lambros

James Orozco

Joshua Wepman

Managing Director

Managing Director

Managing Director

Managing Director

Managing Director

Managing Director

Phone: (212) 999-7097 Mobile: (415) 509-4501 [email protected]






Gautam Garg

Giuseppe Diprima

Tomohiko Kubota*

Saif Malik*

Vice President

Vice President

Vice President

Vice President



Phone: +81 (3) 6212-7129 [email protected]

Phone: +44 (0) 207 038-3216 Mobile: +44 (0) 778 606-8553 [email protected]

*Tomohiko Kubota is a Vice President at GCA Corporation. *Saif Malik is a Vice President at GCA Savvian Europe Limited.

3

INDUSTRY STOCK MARKET VALUATION Internet / Digital Media / SaaS

Last 12 Months

Last 3 Months 120%

145%

38.8% 37.7%

15.4% 12.7%

130%

28.0%

10.2% 8.7%

110%

115%

18.1% 14.9% 14.1% 12.0% 10.9%

100%

(0.1%) (0.3%)

5.7% 4.6% 4.2% 4.1% 1.7% 100%

85% 4/18/2016

6/9/2016

7/31/2016

9/21/2016

Search / Online Advertising

(1)

11/12/2016

1/3/2017

2/24/2017

(2)

(5)

Diversified Marketing

90% 1/17/2017

4/17/2017

Internet Commerce

Media Conglomerates

(2.5%)

2/1/2017

Internet Content

(6)

Gaming

(7)

(3)

2/16/2017

3/3/2017

Publishers

SaaS

(8)

3/18/2017

(4)

4/2/2017

4/17/2017

NASDAQ

Social Media

(9)

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, SNAP, TWTR, YELP.

4

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

EV / 2017E Revenue 8.0x

EV / 2017E EBITDA 30.0x

7.2x

25.8x

7.0x

Mean: 3.3x Median: 2.7x

6.0x

5.0x 4.0x 3.0x 2.0x

4.6x

Mean: 13.3x Median: 11.5x

20.0x

16.0x

3.3x

13.2x

3.0x

2.7x

2.6x

2.4x 2.0x

10.0x

12.7x

11.5x

11.1x

10.7x

9.7x

9.3x

1.6x

1.0x 0.0x

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, SNAP, TWTR, YELP.

5

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 4/17/17 Search / Online Advertising Alphabet Inc. Microsoft Corporation Yandex N.V. Criteo SA (1) The Trade Desk, Inc. (1) RhythmOne plc (2) The Rubicon Project, Inc. (1) Rocket Fuel Inc. QuinStreet, Inc. YuMe, Inc. Marchex, Inc. Tremor Video, Inc. Marin Software Incorporated MaxPoint Interactive, Inc.

$855.13 65.48 24.27 50.70 36.44 0.60 5.45 4.32 4.10 3.87 2.64 2.06 1.85 5.74

Trading Statistics LTM Price Range High Low $672.66 48.04 16.04 32.83 22.00 0.19 5.37 1.70 2.61 3.11 2.46 1.45 1.45 3.85

$874.42 66.35 25.00 52.87 46.21 0.63 20.37 5.61 4.32 4.36 4.36 2.76 3.09 11.94

Equity Value $591,254 505,999 7,848 3,244 1,428 299 264 200 186 132 114 103 73 38

Cash & Equiv.

Net Debt

$86,333 121,205 1,030 270 133 41 190 84 37 60 104 43 34 24

($82,398) (33,399) (723) (185) (108) (41) (190) 2 (37) (60) (104) (42) (31) 3

Enterprise Value $508,856 472,600 7,149 3,069 1,320 258 74 202 149 71 10 61 42 41 Mean Median

Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. WebMD Health Corp. Shutterfly, Inc. comScore, Inc. (2) Bankrate, Inc. Web.com Group, Inc. Renren Inc. (2) XO Group Inc. Care.com, Inc. TechTarget, Inc. DHI Group, Inc. eHealth, Inc.

$34.78 75.05 25.41 36.88 51.83 48.76 26.10 9.70 17.60 7.41 17.24 11.73 9.30 4.00 10.85

$22.42 45.55 17.91 28.11 48.10 41.91 20.81 6.91 12.90 7.38 14.99 5.90 6.73 3.90 6.38

$39.99 77.46 26.65 38.00 67.55 54.60 34.85 11.90 22.50 17.45 20.99 12.97 9.43 8.43 15.14

$6,226 5,834 5,450 3,307 1,910 1,666 1,495 872 817 504 437 345 255 202 199

$506 1,419 77 573 991 316 147 177 20 73 106 76 29 23 62

$6,087 6,193 9,744 3,952 1,964 1,750 1,381 991 1,461 528 331 269 264 263 137

($139) 184 3,966 494 54 85 (114) 119 644 24 (106) (76) 9 62 (62) Mean Median

EV / Revenue CY 17E CY 16A/E

CY 18E

CY 16A/E

EV / EBITDA CY 17E

CY 18E

Operating Metrics EBITDA Margin Revenue Growth CY 17E CY 16A/E '16A/E/'15A '17E/'16A/E '18E/'17E

5.6x 5.1 5.8 4.2 6.5 1.5 0.3 0.4 0.5 0.4 0.1 0.4 0.4 0.3

4.8x 4.7 4.4 3.3 4.9 1.2 0.3 0.4 0.5 0.5 0.1 0.3 NA 0.4

4.2x 4.4 3.7 NA 3.9 1.0 NA 0.4 0.5 NA 0.1 0.3 NA NA

13.9x 13.1 16.8 13.7 20.2 NM 1.1 13.7 20.3 6.6 NM NM 17.6 NM

11.8x 12.4 13.4 10.7 18.3 22.3 1.3 21.4 8.1 5.0 NM 13.5 NA 20.4

10.1x 11.1 10.6 8.6 13.5 12.0 1.6 18.5 5.2 NA 3.5 4.2 NA NA

20.4% 5.5% 49.2% 36.7% 78.3% (4.7%) 10.9% (1.2%) 5.6% (7.4%) (9.4%) (4.1%) (8.0%) 6.4%

17.4% 8.1% 31.6% 27.9% 33.4% 27.8% (3.8%) 3.9% 2.6% (7.8%) (27.1%) 10.9% N/A N/A

2.2x 0.5

2.0x 0.5

2.1x 1.0

13.7x 13.8

13.2x 12.9

9.0x 10.1

12.7% 5.5%

10.4% 9.5%

7.2x 2.0 2.9 2.1 2.8 1.5 2.7 2.3 2.0 8.3 2.2 1.7 2.5 1.2 0.7

5.8x 2.0 2.8 1.8 2.7 1.5 2.4 2.0 1.9 5.5 2.0 1.6 2.4 1.2 0.8

4.9x 1.8 2.6 1.6 2.6 1.4 2.0 1.8 1.8 NA 1.8 1.4 2.1 1.2 0.7

42.0x 12.4 7.9 9.5 8.5 8.4 11.5 8.6 8.1 NM 10.1 20.0 14.2 4.6 24.1

29.1x 10.7 8.9 7.6 8.3 8.0 9.1 7.9 7.7 NM 11.0 13.5 11.8 5.2 NM

20.8x 8.6 7.8 6.1 8.0 6.4 7.7 7.0 7.0 NA 8.7 10.9 8.8 5.0 27.5

31.3% (2.8%) 9.5% 15.0% 10.8% 7.1% 40.8% 16.7% 34.1% 54.6% 7.4% 16.6% (4.7%) (12.6%) (1.4%)

23.4% (1.1%) 3.5% 18.5% 2.0% 1.9% 9.9% 16.3% 3.5% 50.6% 8.1% 6.2% 4.9% (3.4%) (9.4%)

2.8x 2.2

2.4x 2.0

2.0x 1.8

13.6x 9.8

10.7x 8.9

10.0x 7.9

14.8% 10.8%

9.0% 4.9%

14.9% 6.6% 18.1% N/A 23.6% 16.7% N/A 5.6% 5.9% N/A 7.3% 13.6% N/A N/A 12.5% 13.6% 19.4% 10.7% 9.8% 14.4% 3.5% 6.2% 21.5% 9.5% 4.9% N/A 10.0% 10.6% 13.7% 0.3% 12.2% 10.5% 10.3%

40.5% 38.9% 34.4% 30.8% 32.1% (1.1%) 25.8% 3.2% 2.4% 6.8% (5.1%) (1.2%) 2.4% (1.7%)

40.6% 37.9% 32.8% 30.6% 26.7% 5.2% 23.7% 2.0% 6.0% 9.7% (7.1%) 2.4% N/A 2.0%

14.9% 5.0%

16.3% 9.7%

17.1% 16.0% 36.9% 22.6% 32.7% 18.4% 23.0% 26.4% 24.6% (109.1%) 21.4% 8.3% 17.4% 25.4% 3.0%

20.0% 18.6% 31.8% 23.8% 33.0% 19.0% 26.6% 24.8% 25.2% (66.4%) 18.3% 11.6% 20.0% 23.3% (9.5%)

12.3% 21.4%

14.7% 20.0%

CY 18E 41.3% 39.9% 35.0% N/A 29.2% 8.3% N/A 2.2% 8.7% N/A 2.7% 6.9% N/A N/A 19.3% 8.7% 23.4% 20.9% 33.1% 25.9% 33.1% 22.2% 26.0% 25.4% 26.3% N/A 21.1% 13.0% 23.5% 23.9% 2.6% 22.9% 23.7%

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 50 considered NM. (1) Revenue multiples reflective of Net Revenue. (2) Figures reflect CY 2016 estimates.

6

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 4/17/17 Internet Commerce Amazon.com, Inc. Alibaba Group Holding Limited The Priceline Group Inc. Netflix, Inc. eBay Inc. Expedia, Inc. QVC Group Copart, Inc. trivago N.V. (1) GrubHub Inc. 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.

$901.99 111.76 1,770.61 147.25 34.44 130.34 21.17 29.92 13.23 34.22 86.51 106.60 42.09 10.53 10.55 10.05 17.60 5.51 9.65 2.89

Trading Statistics LTM Price Range High Low $599.20 73.30 1,148.06 84.50 22.30 96.58 17.24 20.93 10.88 21.41 79.15 68.82 38.07 7.77 9.10 7.19 13.05 5.22 7.50 2.75

$923.72 111.88 1,798.75 148.29 34.74 133.55 27.25 31.57 14.20 44.58 104.18 136.00 65.16 16.05 14.36 11.40 20.50 10.76 13.27 3.82

Equity Value $431,105 279,400 87,062 63,378 37,171 19,562 9,623 6,872 3,162 2,941 2,690 1,796 1,453 1,223 940 659 450 327 128 48

Cash & Equiv. $25,981 20,422 4,300 1,341 7,149 1,869 338 175 240 324 50 108 279 282 175 114 183 39 27 44

Net Debt

Enterprise Value $425,537 278,155 89,931 65,402 38,982 22,413 15,759 7,410 3,134 2,617 3,717 1,850 1,173 953 765 656 324 346 101 5

($5,568) (7,341) 2,869 2,024 1,811 1,290 6,037 537 (240) (324) 985 54 (279) (270) (175) (3) (124) 19 (27) (43) Mean Median

Media Conglomerates / Selected Entertainment $113.78 The Walt Disney Company 37.20 Comcast Corporation 30.73 Twenty-First Century Fox, Inc. 31.82 Sony Corporation 67.18 CBS Corporation 43.96 Viacom, Inc. 28.50 Discovery Communications, Inc. 74.82 Scripps Networks Interactive, Inc. 37.49 Tribune Media Company

$90.32 29.81 23.33 23.42 48.88 33.94 23.66 58.73 27.75

$114.25 38.44 32.60 34.94 70.10 46.72 29.91 83.42 40.72

$179,914 176,759 56,876 40,172 27,381 17,447 16,640 9,705 3,257

$3,736 5,073 4,530 15,415 598 443 460 123 578

$200,635 236,409 74,032 40,967 36,158 29,555 24,346 13,113 6,097

$16,754 55,973 15,363 (4,638) 8,777 11,857 7,463 3,079 2,834 Mean Median

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

$43.35 12.41 7.96 29.43 9.35 598.30 14.45 18.50 22.00 8.18

$37.68 10.54 6.95 19.56 7.11 440.55 10.60 12.50 12.16 7.30

$45.30 14.68 12.45 29.74 9.79 609.75 16.35 20.40 24.15 17.72

$31,374 7,221 6,491 3,771 3,680 3,345 2,329 1,835 1,808 929

$2,556 1,564 1,814 508 105 1,097 550 336 134 114

$37,017 6,285 8,056 5,381 4,467 2,768 2,022 2,739 2,067 1,215

$5,160 (1,209) 1,559 1,469 744 (589) (303) 904 259 286 Mean Median

EV / Revenue CY 17E CY 16A/E

CY 18E

CY 16A/E

EV / EBITDA CY 17E

CY 18E

Operating Metrics EBITDA Margin Revenue Growth CY 17E CY 16A/E '16A/E/'15A '17E/'16A/E '18E/'17E

CY 18E

3.1x 13.4 8.4 7.4 4.3 2.6 1.5 5.4 3.9 5.3 1.9 5.1 2.4 2.6 2.8 0.6 0.2 1.1 0.8 0.0

2.6x 9.9 7.2 5.8 4.1 2.2 1.5 5.0 2.7 4.1 1.6 4.4 2.1 2.1 2.4 0.5 0.2 1.2 0.8 0.0

2.1x 7.8 6.3 4.9 3.9 2.0 1.5 4.6 2.0 3.4 1.5 3.8 1.9 1.8 2.1 0.5 0.2 1.1 0.8 0.0

36.5x 36.4 21.7 NM 13.0 20.9 8.9 15.2 NM 22.6 25.3 13.2 18.4 27.7 NM 8.4 NM NM 7.7 3.1

21.9x 21.2 19.0 NM 11.1 12.2 8.2 13.4 NM 14.5 11.9 8.8 10.8 15.6 16.9 6.7 12.6 11.9 9.3 1.7

17.2x 16.7 16.3 37.1 10.3 10.1 7.8 12.0 29.8 11.7 10.0 7.5 9.1 10.3 12.5 6.2 12.1 9.3 6.7 0.8

27.1% 42.5% 16.5% 30.3% 4.5% 31.5% 11.5% 17.8% 48.7% 36.3% 21.6% 70.3% 16.3% 33.4% 16.0% 2.1% 8.6% (6.0%) (9.3%) (4.6%)

21.6% 35.7% 16.2% 27.7% 4.9% 14.1% 0.5% 8.2% 46.6% 30.6% 17.6% 14.6% 11.5% 21.7% 13.8% 2.8% 8.0% (7.4%) (2.5%) 3.8%

20.6% 27.3% 15.0% 19.5% 5.9% 12.9% 3.7% 8.5% 37.6% 21.2% 11.8% 15.7% 11.8% 19.8% 15.1% 5.4% 6.0% 4.6% 2.2% 6.7%

8.6% 36.9% 38.6% 5.0% 33.5% 12.2% 17.2% 35.5% (3.6%) 23.5% 7.6% 38.6% 12.9% 9.4% (2.4%) 6.6% 0.1% 1.5% 10.2% 1.4%

11.7% 46.6% 38.0% 9.4% 37.3% 18.4% 18.7% 37.2% 3.8% 27.9% 13.7% 50.1% 19.7% 13.8% 14.4% 8.1% 1.3% 9.7% 8.7% 2.6%

12.4% 46.5% 38.5% 13.1% 38.0% 19.7% 18.9% 38.2% 6.6% 28.7% 14.7% 51.0% 21.0% 17.4% 17.0% 8.3% 1.3% 12.0% 11.8% 5.1%

3.6x 2.7

3.0x 2.3

2.6x 2.0

18.6x 18.4

12.7x 12.0

12.7x 10.3

20.7% 17.1%

14.5% 14.0%

13.6% 12.4%

14.7% 9.8%

19.6% 14.1%

21.0% 17.2%

3.6x 2.9 2.6 0.6 2.5 2.3 3.7 3.9 3.1

3.5x 2.8 2.5 0.6 2.7 2.3 3.6 3.6 3.2

3.3x 2.6 2.4 0.5 2.6 2.2 3.3 3.5 3.0

11.5x 8.9 10.4 9.9 10.7 10.3 10.0 9.8 11.5

11.1x 8.5 10.1 5.1 11.2 9.5 9.7 9.0 13.3

10.3x 8.0 9.4 4.8 10.3 8.8 9.3 8.6 11.3

1.6% 7.9% 5.9% (5.8%) 13.5% (3.2%) 1.6% 12.7% 8.1%

5.0% 4.5% 4.9% 14.3% (5.4%) 3.4% 5.2% 5.8% (2.2%)

4.8% 6.6% 2.7% 5.9% 4.2% 2.4% 6.9% 4.2% 8.0%

31.5% 32.9% 25.4% 6.4% 23.5% 22.6% 37.3% 39.5% 27.3%

31.3% 33.1% 25.0% 11.0% 23.6% 23.9% 36.8% 40.7% 24.2%

32.0% 33.1% 26.1% 10.9% 24.8% 25.2% 35.8% 40.8% 26.2%

2.8x 2.9

2.7x 2.8

2.6x 2.6

10.3x 10.3

9.7x 9.7

9.0x 9.3

4.7% 5.9%

3.9% 4.9%

5.1% 4.8%

27.4% 27.3%

27.7% 25.0%

28.3% 26.2%

3.3x 0.8 1.4 0.7 4.2 NA 1.3 0.9 2.2 0.4

3.3x 0.8 1.4 0.7 3.5 NA 1.3 0.9 2.2 0.4

3.2x 0.8 1.4 0.7 3.5 NA 1.3 0.9 1.9 0.4

11.7x 6.7 8.3 8.0 14.3 NA 8.4 6.6 11.1 3.5

11.1x 6.8 9.0 7.9 11.6 NA 9.0 6.6 17.7 3.7

10.7x 6.3 8.8 7.5 11.5 NA 8.6 6.6 10.0 3.7

(0.8%) (1.6%) (14.7%) (3.7%) (6.2%) N/A (1.5%) (1.0%) 31.8% 5.6%

1.4% (1.7%) 4.8% (2.1%) 18.6% N/A 1.1% (2.5%) (2.0%) 4.4%

2.7% (2.9%) (0.8%) 2.3% 0.6% N/A 2.5% (1.0%) 15.1% (4.3%)

1.7x 1.3

1.6x 1.3

1.6x 1.3

8.7x 8.3

9.3x 9.0

8.2x 8.6

0.9% (1.5%)

2.4% 1.1%

1.6% 0.6%

28.4% 11.4% 17.2% 8.6% 29.2% N/A 15.5% 13.5% 19.7% 11.5% 17.2% 15.5%

29.4% 11.6% 15.2% 8.9% 30.4% N/A 14.4% 13.8% 12.6% 10.3% 16.3% 13.8%

29.9% 12.7% 15.6% 9.2% 30.7% N/A 14.6% 14.0% 19.5% 10.7% 17.4% 14.6%

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 50 considered NM. (1) Reflects Expedia's 63.5% controlling equity stake.

7

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 4/17/17 Diversified Marketing WPP plc Experian plc Equifax Inc. Nielsen Holdings plc Alliance Data Systems Corporation The Interpublic Group of Companies, Inc. Havas SA Acxiom Corporation MDC Partners Inc. Harte Hanks, Inc. (1)

$21.88 20.40 137.03 41.24 238.51 25.08 9.09 27.20 9.00 1.24

Trading Statistics LTM Price Range Low High $15.15 15.41 110.87 40.28 185.02 21.67 6.93 19.11 2.75 0.85

$24.27 20.83 137.94 55.94 254.94 25.33 9.43 30.40 23.90 2.75

Equity Value $27,976 18,977 16,544 14,734 13,339 9,909 3,815 2,127 498 76

Cash & Equiv. $3,009 166 129 754 1,859 1,101 855 138 28 7

Net Debt

Enterprise Value

$5,100 3,161 2,543 7,177 19,090 590 (157) 99 909 54

$33,623 22,152 19,145 22,102 32,428 10,792 3,673 2,226 1,532 131 Mean Median

Gaming Tencent Holdings Limited $29.67 $19.58 $30.08 $278,367 Activision Blizzard, Inc. 48.80 33.55 50.40 36,690 NetEase, Inc. 266.22 130.82 308.66 35,002 Electronic Arts Inc. 89.21 61.10 91.82 27,500 Naver Corporation 691.48 563.75 795.42 19,920 NCsoft Corporation 316.67 187.62 327.24 6,726 Gamesa Corporación Tecnológica, S.A., Prior to Reverse 21.01 Merger with 15.99 Siemens Wind 24.02 HoldCo, S.L. 5,817 Ubisoft Entertainment SA 43.49 26.32 43.72 4,835 DeNA Co., Ltd. 21.17 16.54 36.44 3,071 Zynga Inc. 2.78 2.27 3.08 2,414 Gree, Inc. 7.78 4.26 7.81 1,827 GungHo Online Entertainment, Inc. 2.27 2.08 3.19 1,612 Changyou.com Limited 27.08 17.43 31.47 1,381 Glu Mobile Inc. 2.31 1.73 3.04 311

$17,603 3,245 5,240 4,219 2,785 817 1,400 1,028 709 852 704 301 831 102

($1,833) 1,642 (4,690) (3,229) (2,471) (693) (821) (42) (709) (852) (704) (292) (452) (102)

$278,208 38,332 30,351 24,271 17,892 6,042 4,996 4,793 2,425 1,561 1,123 1,335 960 209 Mean Median

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

$141.42 19.94 14.40 36.44 32.69 10.73

$106.31 18.90 13.73 32.16 20.19 8.40

$143.44 29.44 26.20 48.19 43.41 14.98

$409,745 23,075 10,435 7,973 2,602 2,525

$29,449 987 3,775 1,203 480 237

($29,449) (972) (2,088) (1,015) (480) 105

$380,296 22,103 8,347 6,960 2,123 2,630 Mean Median

EV / Revenue CY 16A/E CY 17E

CY 18E

CY 16A/E

EV / EBITDA CY 17E

CY 18E

Operating Metrics Revenue Growth EBITDA Margin '16A/E/'15A '17E/'16A/E '18E/'17E CY 16A/E CY 17E

CY 18E

1.9x 4.9 6.1 3.5 4.5 1.4 1.5 2.5 1.1 0.3

1.7x 4.7 5.6 3.4 4.2 1.3 1.4 2.4 1.0 0.3

1.6x 4.4 5.2 3.2 3.8 1.3 1.4 2.2 1.0 NA

11.3x 14.3 17.0 11.4 15.5 9.8 9.3 13.5 8.7 NM

10.1x 13.4 15.3 10.9 15.1 9.2 8.7 12.4 7.5 8.2

9.6x 12.6 14.0 10.4 13.6 8.6 8.4 10.4 6.6 NA

(1.5%) (2.3%) 18.1% 2.2% 10.8% 3.1% 1.1% 5.9% 4.5% (18.9%)

10.5% 4.8% 8.2% 4.5% 8.0% 2.1% 6.0% 4.3% 6.3% (1.0%)

4.2% 6.2% 7.2% 4.1% 10.7% 4.3% 3.4% 12.0% 4.8% N/A

16.8% 34.1% 35.8% 30.7% 29.4% 14.0% 16.5% 18.8% 12.8% (0.6%)

17.0% 34.7% 36.8% 30.6% 27.9% 14.7% 16.6% 19.6% 13.8% 4.0%

2.8x 2.2

2.6x 2.1

2.7x 2.2

12.3x 11.4

11.1x 10.5

10.5x 10.4

2.3% 2.6%

5.4% 5.4%

6.3% 4.8%

20.8% 17.8%

21.6% 18.3%

24.0% 20.8%

12.7x 5.8 5.5 5.1 5.4 7.4 1.0 3.2 2.0 2.1 2.1 1.4 1.8 1.0

9.1x 6.0 4.0 4.7 4.4 5.3 0.9 2.3 1.8 2.0 1.9 1.5 1.6 1.0

7.1x 5.4 3.4 4.4 3.9 4.6 0.9 2.3 1.8 1.8 1.9 1.7 1.6 0.9

28.9x 15.6 16.1 15.0 17.0 20.1 7.9 6.5 8.1 25.2 11.0 3.2 6.1 NM

23.3x 16.0 12.6 13.9 13.2 13.5 6.0 5.7 6.0 17.1 13.1 3.8 5.1 NM

18.3x 13.7 10.8 12.3 11.4 11.1 5.5 5.0 5.2 12.4 13.6 4.6 5.0 NM

38.1% 41.5% 58.3% 11.7% 20.8% 14.7% 27.9% 8.2% 2.1% (3.0%) (19.7%) (25.0%) (31.0%) (19.7%)

39.2% (3.2%) 35.5% 7.9% 22.1% 39.0% 14.3% 40.1% 6.8% 7.7% 7.3% (9.2%) 11.5% 9.1%

28.3% 10.5% 19.4% 7.3% 13.4% 15.0% 3.0% (2.0%) 1.5% 9.2% 2.2% (10.4%) 5.1% 9.4%

44.0% 37.2% 33.9% 33.8% 31.4% 36.7% 13.1% 48.4% 24.2% 8.4% 19.0% 43.2% 29.9% (19.5%)

39.1% 37.4% 31.9% 34.0% 33.3% 39.5% 15.0% 39.3% 30.9% 11.4% 14.9% 40.2% 32.4% (8.5%)

38.9% 39.7% 31.2% 35.8% 34.0% 41.6% 15.9% 46.0% 34.9% 14.5% 14.0% 37.1% 31.5% (2.8%)

4.0x 2.6

3.3x 2.1

3.0x 2.1

13.9x 15.0

11.5x 13.1

9.9x 11.1

8.9% 9.9%

16.3% 10.3%

8.0% 8.2%

27.4% 32.6%

27.9% 32.8%

29.4% 34.4%

13.8x NA 3.3 5.8 3.0 1.9

10.0x 21.4 3.5 4.5 2.4 1.6

7.9x 10.8 3.3 3.9 2.0 1.3

21.0x NA 11.1 21.7 17.7 NM

16.0x NM 14.0 20.6 13.2 NM

12.6x NM 12.0 15.6 9.8 32.4

54.2% N/A 14.0% 20.3% 29.7% 19.0%

37.1% N/A (6.7%) 29.6% 24.7% 17.0%

27.4% 98.7% 7.4% 15.6% 20.3% 26.4%

65.4% N/A 29.7% 26.6% 16.8% (8.6%)

62.6% (62.8%) 25.2% 21.7% 18.1% (2.4%)

62.5% (21.0%) 27.4% 24.7% 20.2% 4.0%

5.5x 3.3

7.2x 4.0

4.8x 3.6

17.9x 19.4

16.0x 15.0

16.5x 12.6

26.0% 26.6%

10.4% 19.9%

19.6% 22.5%

27.4% 20.3%

20.3% 24.7%

32.6% 23.4%

17.1% 34.7% 37.5% 31.0% 28.0% 15.1% 16.7% 20.8% 15.1% N/A

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 50 considered NM. (1) Figures reflect CY 2016 estimates.

8

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 4/17/17 SaaS Salesforce.com, inc. Workday, Inc. ServiceNow, Inc. Shopify Inc. The Ultimate Software Group, Inc. RealPage, Inc. Zendesk, Inc. Nutanix, Inc. HubSpot, Inc. Box, Inc. RingCentral, Inc. Cornerstone OnDemand, Inc. Coupa Software Incorporated MINDBODY, Inc. Everbridge, Inc. Apptio, Inc. LivePerson, Inc. Bazaarvoice, Inc. Xactly Corporation Jive Software, Inc. ChannelAdvisor Corporation Brightcove Inc. Marin Software Incorporated

$84.20 83.76 86.41 71.70 201.39 36.65 28.41 17.19 61.95 16.95 29.00 35.74 29.63 27.60 21.33 11.70 6.90 4.45 11.50 4.50 11.45 8.45 1.85

Trading Statistics LTM Price Range Low High $66.43 65.79 62.55 24.96 180.29 20.00 11.06 17.02 41.63 9.86 17.46 30.31 22.50 11.91 11.76 10.77 5.43 3.30 7.10 3.50 10.20 5.83 1.45

$86.42 93.35 94.72 73.00 224.07 37.40 31.88 46.78 66.10 18.36 29.08 47.75 41.61 28.25 21.44 24.60 8.85 6.14 16.10 4.59 15.91 13.80 3.09

Equity Value $59,572 17,003 14,517 6,502 6,227 2,967 2,795 2,462 2,240 2,196 2,161 2,025 1,505 1,128 590 449 402 369 367 356 301 289 73

Cash & Equiv. $2,209 1,997 899 395 89 105 225 355 114 177 160 302 202 86 61 79 51 83 42 109 65 37 34

Net Debt

Enterprise Value

$501 (1,462) (392) (395) (80) 17 (225) (355) (113) (102) (145) (64) (202) (70) (61) (79) (51) (46) (28) (109) (62) (36) (31)

$60,072 15,541 14,125 6,106 6,147 2,984 2,571 2,107 2,127 2,094 2,016 1,961 1,303 1,057 530 370 351 322 338 248 239 253 42 Mean Median

EV / Revenue CY 16A/E CY 17E

CY 18E

CY 16A/E

EV / EBITDA CY 17E

CY 18E

Operating Metrics Revenue Growth EBITDA Margin '16A/E/'15A '17E/'16A/E '18E/'17E CY 16A/E CY 17E

7.2x 9.9 10.2 15.7 7.9 5.3 8.2 3.5 7.8 5.3 5.3 4.6 9.7 7.6 6.9 2.3 1.6 1.6 3.5 1.2 2.1 1.7 0.4

5.9x 7.7 7.7 10.2 6.3 4.4 6.1 2.5 6.0 4.2 4.1 4.1 7.7 5.9 5.3 2.1 1.7 1.6 3.0 1.2 1.9 1.5 NA

4.9x 6.1 6.0 7.5 5.2 3.9 4.7 1.8 4.8 3.4 3.4 3.5 6.2 4.7 4.2 1.8 1.6 1.5 2.5 1.2 1.7 1.4 NA

34.5x NM NM NM 33.3 23.5 NM NM NM NM NM NM NM NM NM NM 18.3 22.0 NM 13.3 32.1 44.5 17.6

27.6x NM 34.5 NM 26.3 18.1 NM NM NM NM NM 37.8 NM NM NM NM 18.8 19.2 NM 10.9 35.8 29.2 NA

22.1x 40.5 24.0 NM 21.1 14.9 NM NM NM NM 45.6 22.4 NM NM NM NM 17.9 13.1 NM 10.2 24.2 20.6 NA

25.9% 35.0% 38.3% 89.7% 26.4% 21.1% 49.4% 83.4% 48.9% 31.7% 28.2% 24.6% 59.9% 37.1% 30.9% 24.2% (6.8%) 2.2% 25.6% 4.2% 12.5% 11.6% (8.0%)

21.3% 28.9% 32.1% 53.9% 24.0% 19.0% 34.6% 42.3% 30.1% 26.1% 28.2% 13.7% 26.1% 30.0% 30.9% 12.0% (8.1%) 1.7% 17.6% (0.1%) 9.0% 9.1% N/A

5.6x 5.3

4.6x 4.3

3.7x 3.7

26.6x 23.5

25.8x 26.9

23.0x 21.6

30.3% 26.4%

21.9% 25.0%

19.4% 25.1% 28.3% 36.6% 21.5% 12.3% 29.8% 36.4% 25.7% 22.7% 23.2% 15.9% 23.7% 25.5% 26.2% 15.6% 5.8% 6.4% 20.7% 2.9% 11.0% 9.2% N/A 20.2% 22.1%

CY 18E

20.8% 9.2% 17.9% 0.5% 23.6% 22.4% 2.1% (47.8%) (0.3%) (7.6%) 5.5% 7.3% (23.1%) (3.5%) 0.0% (7.3%) 8.6% 7.3% (4.2%) 9.1% 6.6% 3.8% 2.4%

21.3% 13.4% 22.3% 0.1% 24.2% 24.4% 2.9% (19.2%) 1.1% (8.1%) 6.2% 10.8% (13.2%) 3.7% (2.4%) (5.5%) 9.1% 8.2% (3.9%) 11.2% 5.4% 5.3% N/A

22.4% 15.1% 25.0% 4.8% 24.7% 26.5% 5.0% (6.1%) 4.6% (1.4%) 7.4% 15.7% (8.9%) 8.6% 0.9% 2.8% 9.0% 11.3% 1.6% 11.6% 7.2% 6.9% N/A

2.3% 3.8%

5.3% 5.3%

8.8% 7.3%

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 50 considered NM.

9

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

14.0x

APPF

R = 0.81

APTI BCOV

12.0x

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

SHOP

Enterprise Value / CY 2017E Revenue

Company

10.0x

WDAY

COUP

8.0x

NOW APPF 6.0x

HUBS

EVGB CSOD

4.0x

APTI LPSN

ULTI

BOX RNG

XTLY

2.0x

SHOP

MB

ULTI CRM

ZEN

RP

NTNX

ECOM

JIVE

BV

BCOV

MRIN

WDAY

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

XTLY ZEN

CY 2017E Revenue Growth % + CY 2017E FCF Margin % 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 0.79.

10

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

Acquirer

Target

Enterprise Value

EV / LTM Rev.

EV / LTM EBITDA

EV / NTM Rev.

EV / NTM EBITDA

1.4x

7.9x

1.3x

6.7x

NA

NA

NA

NA

(1) (2)

4/13/2017

$630

4/12/2017

$100

4/10/2017

$468

1.7x

15.0x

1.5x

8.2x

4/3/2017

$50

NA

NA

NA

NA

$300

NA

NA

NA

NA

(3)

(1) (2)

4/3/2017 (Information Solutions)

(1)

3/21/2017

$308

1.5x

NA

NA

NA

3/13/2017

$170

NA

NA

NA

NA

$100

NA

NA

NA

NA

3/7/2017 (Network Security Solutions Business)

(1)

3/6/2017

$60

1.4x

NA

NA

NA

3/6/2017

$614

NA

NA

NA

NA

2/28/2017

$174

0.3x

3.2x

NA

NA

2/28/2017

$105

NA

NA

NA

NA

2/22/2017

$325

5.4x

NA

NA

NA

(4)

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