Jan 30, 2017 - (9) Social Media includes: FB, LINE (3938-JP), P, TWTR, YELP. ...... (2) Enterprise Value and LTM multipl
Weekly Internet / Digital Media / SaaS Sector Summary Week of January 30th, 2017 1
DEAL DASHBOARD Internet / Digital Media / SaaS 778
$42.5 Billion
Financing Transactions 2016
(1)(2)
Select Financing Transactions Company
Amount ($MM) $750.0 $653.0 $60.0 $60.0 $50.0
Financing Volume 2016
M&A Volume 2016
Quarterly Financing Volume ($Bn) (1)(2) $15
$13
$14
$11 $10
$9
$10
$8
$7
$8
$5
$0
250
194
150
143 149
210 201
226
$20.0
M&A Transactions 2016 (3)
$60 $50 $40 $30 $20 $10 $0
Select M&A Transactions 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
$35.0
108
(3)
Quarterly M&A Volume ($Bn) (3)
Quarterly Financing Deal Count (1)(2)
200
$40.0
$111.7 Billion (1)(2)
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) 28% 22%
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
120%
160%
17.7% 44.4% 140%
36.2% 22.6% 22.4% 21.5% 13.9% 12.7% 5.3% 4.0% 3.7%
120%
100%
110%
8.9% 8.4% 6.4% 5.5% 4.9% 3.5% 3.2% 0.7% (2.1%)
100%
90%
80%
60% 2/1/2016
3/24/2016
5/15/2016
7/6/2016
Search / Online Advertising
(1)
8/27/2016
10/18/2016
12/9/2016
Internet Commerce
(2)
(5)
Diversified Marketing
3
80% 11/1/2016
1/30/2017
Media Conglomerates
11/16/2016
Internet Content
(6)
Gaming
(7)
(3)
12/1/2016
12/16/2016
Publishers
SaaS
(8)
12/31/2016
(4)
1/15/2017
1/30/2017
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, NILE, 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
EV / 2016E EBITDA 50.0x
7.0x 6.0x
5.7x
5.3x
Mean: 3.4x Median: 3.0x
5.0x 4.0x 3.0x 2.0x
1.0x 0.0x
4
3.8x
3.5x
40.0x
38.1x
Mean: 16.3x Median: 13.0x
30.0x
3.0x
2.8x
21.6x
2.5x
2.1x
20.0x
1.6x
17.8x
14.0x 13.0x
10.0x
12.3x
11.1x
9.9x
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, NILE, 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.
8.7x
PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 1/30/17
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
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. Tremor Video, Inc. YuMe, Inc. Marchex, Inc. Rocket Fuel Inc. Marin Software Incorporated MaxPoint Interactive, Inc.
$823.83 65.13 23.10 44.23 29.75 8.40 0.48 3.44 2.43 3.53 2.70 1.97 2.30 4.20
$672.66 48.04 12.29 24.23 22.00 6.12 0.19 2.61 1.29 2.77 2.46 1.70 1.88 3.85
$867.00 65.91 23.87 47.81 33.40 20.37 0.56 4.32 2.76 4.36 4.68 4.10 3.44 11.94
$569,508 503,455 7,445 2,820 1,148 412 240 157 126 121 117 90 89 28
($82,398) (33,399) (690) (398) (72) (193) (41) (39) (48) (62) (105) 9 (33) 2
$487,110 470,056 6,768 2,432 1,076 219 199 119 79 59 12 99 55 30 Mean Median
5.4x 5.5 5.9 5.2 6.2 0.7 1.3 0.4 0.5 0.3 0.1 0.2 0.5 0.2
5.5x 5.1 5.5 3.4 5.6 0.9 1.1 0.5 0.5 0.4 0.1 0.2 0.6 0.3
4.6x 4.7 4.5 2.6 4.3 0.9 0.8 0.5 0.4 0.4 0.1 0.2 0.6 0.3
16.3x 16.9 20.1 16.0 20.1 4.7 NM NM NM NM NM NM NM NM
13.5x NA 15.9 11.4 19.3 3.4 NM 25.8 NM 7.2 NM 7.8 NM NM
11.3x 12.6 12.8 8.8 15.4 3.5 17.3 12.2 11.1 6.2 NM 7.6 20.8 33.6
29.2x 30.7 56.3 35.7 NM 18.9 NM NM NM NM NM NM NM NM
23.7x NA 31.3 23.7 39.4 9.0 NM 87.5 NM NM NM NM NM NM
19.9x 21.5 24.4 19.4 35.0 12.4 39.4 NM NM 16.9 NM NM NM NM
17.6% 10.3% 23.2% 28.3% 25.9% NM NM NM NA NA 15.0% 3.0% NA 20.0%
1.1 2.1 1.1 0.7 1.4 NM NM NM NA NA NM NM NA NM
18.2% 8.6% 22.0% 29.9% 28.8% 1.2% 34.4% 2.1% 13.0% 2.0% (14.0%) 2.9% (3.5%) 5.1%
22.2% 1.2% 30.2% 27.4% 116.6% 2.4% (11.7%) 1.4% (0.8%) (10.1%) (16.6%) (1.9%) (8.8%) 4.0%
2.3x 0.6
2.1x 0.7
1.8x 0.7
15.7x 16.6
13.0x 12.5
13.3x 12.2
34.2x 30.7
35.8x 27.5
23.6x 20.7
17.9% 18.8%
1.3 1.1
10.8% 6.9%
11.1% 1.3%
8.0x 1.8 2.9 2.1 4.8 2.6 1.8 2.8 2.3 12.7 2.5 1.4 2.3 1.1 0.8
7.5x 1.9 2.8 2.1 3.4 2.6 1.8 2.6 2.1 9.3 2.5 1.5 2.4 1.1 0.8
6.1x 1.8 2.7 1.8 3.0 2.5 1.6 2.3 2.1 6.2 2.2 1.5 2.1 0.9 0.9
NM 15.1 8.0 18.1 47.5 10.3 15.3 12.3 12.4 NM 18.3 6.5 17.5 39.0 16.1
45.1x 11.9 7.6 9.3 14.8 7.9 9.3 10.1 8.7 NM 11.8 5.8 14.3 14.8 24.9
26.9x 9.8 8.3 8.0 11.6 7.3 7.9 9.2 8.2 NM 10.6 6.3 9.4 10.2 23.1
NM NM 10.8 NM NM 27.6 31.7 NM 12.2 NM 74.5 NM 66.7 NM NM
NM 27.2 10.1 22.2 22.0 26.0 81.0 17.5 6.9 NM 47.9 15.4 33.6 56.0 35.6
62.3x 20.0 12.1 19.9 18.8 24.4 47.9 15.9 6.5 NM 40.4 17.2 19.7 29.6 NM
58.0% 18.2% NA NM 30.0% 12.5% NM 17.5% 13.4% 20.0% 17.5% NA 27.7% 17.5% 10.0%
1.1 1.1 NA NM 0.6 2.0 NM 0.9 0.5 NM 2.3 NA 0.7 1.7 NM
22.5% 6.6% 3.7% 13.4% 13.1% 5.5% 9.5% 12.9% 3.6% 50.6% 10.3% (3.0%) 11.2% 13.0% (2.1%)
27.1% (8.9%) 13.6% 14.8% 8.4% 12.3% 11.8% 29.2% 39.4% NA 5.8% (13.9%) (11.2%) 12.7% (16.1%)
3.3x 2.3
3.0x 2.4
2.5x 2.1
18.2x 15.3
14.0x 10.9
11.2x 9.3
37.2x 29.7
30.9x 26.0
25.8x 19.9
22.0% 17.5%
1.2 1.1
11.4% 10.3%
8.9% 12.1%
Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. comScore, Inc. WebMD Health Corp. Shutterfly, Inc. Bankrate, Inc. Web.com Group, Inc. Renren Inc. XO Group Inc. DHI Group, Inc. TechTarget, Inc. Care.com, Inc. eHealth, Inc.
$36.42 68.93 22.73 36.08 32.88 49.45 51.56 10.95 18.80 1.67 18.68 5.55 8.81 8.41 12.09
$16.46 38.82 17.91 23.88 21.74 45.46 35.91 6.59 12.90 1.51 13.64 4.95 5.98 4.90 6.38
$39.99 71.48 25.38 37.40 43.53 67.55 54.60 12.93 21.20 3.58 20.99 9.43 9.24 12.00 15.14
$6,520 5,465 4,874 3,156 1,880 1,815 1,750 987 886 568 475 276 245 242 222
($215) 274 4,131 475 (114) 6 308 159 664 24 (101) 61 8 (71) (67)
$6,305 5,877 9,345 3,829 1,766 1,820 2,058 1,146 1,550 592 374 338 253 172 154 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 1/30/17
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. Blue Nile, Inc. Overstock.com, Inc. Angie's List, Inc. Travelzoo Inc. CafePress Inc.
$830.38 101.02 1,602.31 141.22 32.17 121.53 19.17 56.93 41.59 11.35 85.57 122.50 53.20 12.75 10.50 9.65 40.71 16.60 6.54 9.00 3.39
$474.00 59.25 954.02 79.95 21.52 88.40 17.88 32.69 18.10 10.88 75.48 68.82 25.44 6.18 5.04 6.74 22.33 10.25 6.32 6.63 2.80
$847.21 109.87 1,605.47 143.46 33.19 133.55 27.25 57.97 44.58 12.61 104.18 125.05 65.16 16.05 14.36 11.40 41.39 19.70 10.76 13.27 3.99
$394,569 252,550 79,066 60,783 35,964 18,233 8,952 6,523 3,560 2,713 2,661 2,089 1,869 1,474 924 630 478 421 387 124 56
$641 (7,448) 2,967 1,631 1,811 1,319 6,104 576 (297) (5) 813 81 (290) (258) (139) 229 (40) (75) 20 (25) (35)
$395,210 245,842 82,033 62,413 37,775 21,198 15,178 7,099 3,263 2,711 3,516 2,170 1,578 1,215 786 859 437 345 407 99 21 Mean Median
3.1x 11.9 7.9 7.1 4.2 2.5 1.5 5.4 7.2 3.5 1.8 6.6 3.3 3.5 2.9 0.7 0.9 0.2 1.2 0.8 0.2
2.9x 17.0 7.6 7.1 4.2 2.4 1.5 5.2 6.6 3.5 1.8 6.1 3.2 3.3 2.9 0.7 0.9 0.2 1.3 0.8 0.2
2.3x 13.2 6.6 5.6 4.0 2.1 1.4 4.9 5.3 2.5 1.5 5.3 2.7 2.7 2.5 0.7 0.9 0.2 1.3 0.8 0.2
36.0x 32.2 20.5 NM 12.6 20.8 8.6 15.2 31.1 NM 21.0 18.0 24.2 32.9 NM 11.4 26.7 NM 21.1 8.1 NM
26.1x 33.1 19.3 NM 11.0 13.1 7.9 14.3 22.5 NM 13.2 13.2 16.1 21.6 28.3 10.0 17.8 9.8 16.1 8.0 36.9
20.2x 26.6 16.5 57.9 10.8 10.9 7.6 13.2 17.7 39.5 11.9 11.1 13.3 16.2 18.0 8.6 17.0 19.5 11.3 8.8 17.7
NM 49.0 40.9 NM 5.1 96.6 7.3 17.7 75.6 NA NM 47.7 64.1 NM NM 25.3 50.2 44.7 NM 34.6 NM
NM 41.4 23.4 NM 17.1 25.7 11.4 24.0 45.7 NM 29.2 14.7 33.9 NM NM 22.7 46.3 NM NM 20.3 NM
94.3x 33.2 20.6 NM 16.0 20.2 10.3 22.1 36.2 82.6 25.8 14.8 31.4 49.1 50.0 18.1 43.8 NM NM 21.9 NM
51.1% 24.5% 17.9% 47.1% 9.1% 21.6% 12.8% 14.8% 23.0% NA 20.8% 20.3% 16.5% 10.0% 43.6% 19.0% 5.0% NA 8.0% 5.0% NA
1.8 1.4 1.2 NM 1.8 0.9 0.8 1.5 1.6 NA 1.2 0.7 1.9 4.9 1.1 1.0 8.8 NA NM 4.4 NA
22.8% 28.7% 15.6% 27.3% 4.7% 14.4% 2.7% 6.9% 25.8% 38.5% 17.0% 16.0% 15.8% 22.8% 14.7% 4.8% 2.1% 8.0% 0.1% (0.5%) 6.3%
29.0% 44.1% 18.9% 35.9% 3.1% 33.2% 14.7% 19.8% 44.1% 56.0% 16.2% 79.1% 14.7% 33.3% 17.7% 6.3% (4.4%) 12.9% (8.3%) (9.7%) (1.6%)
3.6x 3.1
3.8x 2.9
3.2x 2.5
21.3x 20.9
17.8x 16.1
17.8x 16.2
43.0x 44.7
27.4x 24.0
34.7x 25.8
20.6% 18.5%
2.2 1.4
14.0% 14.7%
21.7% 17.7%
3.0x 3.5 2.7 0.5 2.5 2.3 3.8 4.0 2.5
3.0x 3.5 2.7 0.6 2.5 2.3 3.8 4.0 2.5
2.9x 3.3 2.5 0.6 2.5 2.2 3.6 3.8 2.5
9.0x 11.5 11.2 6.6 10.9 9.7 10.1 9.0 12.7
9.0x 11.3 10.7 7.9 10.6 10.3 10.1 9.7 9.4
8.6x 10.9 10.2 5.5 10.5 8.9 9.7 9.4 11.2
21.1x 19.4 21.3 66.9 17.8 11.8 15.8 12.6 NM
21.7x 19.9 16.3 NM 15.6 12.7 13.5 14.4 34.9
20.1x 18.0 16.0 20.3 14.5 10.6 12.1 14.3 21.8
10.5% 9.4% 11.8% 18.0% 17.8% 0.5% 13.1% 9.7% NA
1.9 1.9 1.4 1.1 0.8 22.0 0.9 1.5 NA
4.6% 5.0% 5.2% 6.6% 1.0% 3.4% 5.1% 4.3% (2.4%)
9.2% (2.7%) 7.1% 5.5% 4.3% (14.8%) (0.1%) 3.5% 6.0%
2.8x 2.7
2.8x 2.7
2.7x 2.5
10.1x 10.1
9.9x 10.1
9.4x 9.7
23.3x 18.6
18.6x 16.0
16.4x 16.0
11.4% 11.1%
3.9 1.4
3.7% 4.6%
2.0% 4.3%
3.4x 0.8 1.5 3.4 0.6 1.0 1.2 0.9 2.2 0.5
3.7x 0.8 1.5 3.4 0.7 NA 1.2 0.9 2.0 0.5
3.6x 0.8 1.5 2.9 0.7 NA 1.2 0.9 2.1 0.4
16.2x 9.6 10.3 12.6 8.7 6.8 7.9 9.0 21.9 4.2
13.2x 7.0 9.2 12.1 8.0 NA 7.9 6.9 9.7 4.4
12.5x 6.8 8.7 9.7 7.7 NA 8.3 6.8 14.5 4.1
26.5x NM NM 29.6 27.1 16.0 49.4 NM NM 28.8
21.8x 39.1 11.0 19.2 13.2 NA 25.7 16.0 24.8 9.0
19.2x 30.1 12.5 14.6 12.2 NA 23.8 14.3 58.8 8.9
8.0% 8.2% NM 11.2% 7.4% NA NA 8.5% NA NM
2.4 3.7 NM 1.3 1.6 NA NA 1.7 NA NM
1.9% (2.1%) 5.0% 16.7% (0.7%) NA 0.2% (1.9%) (2.1%) 5.6%
(0.1%) (2.4%) (21.0%) (8.7%) 3.2% (3.1%) (1.0%) (3.0%) 22.9% 10.1%
1.5x 1.1
1.6x 1.2
1.6x 1.2
10.7x 9.3
8.7x 8.0
8.8x 8.3
29.6x 27.9
20.0x 19.2
21.6x 14.6
8.7% 8.2%
2.1 1.7
2.5% 0.2%
(0.3%) (1.7%)
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
$75.34 110.94 31.37 29.64 64.40 42.46 27.98 76.30 28.41
$54.38 86.25 22.66 19.34 41.36 30.11 23.66 52.00 26.10
$76.87 111.05 31.61 31.40 66.88 47.47 29.75 77.80 40.72
$178,933 175,710 58,202 37,412 27,673 16,849 16,665 9,851 2,483
$55,973 15,560 14,807 (3,539) 8,778 11,420 7,609 3,253 2,772
$238,583 195,328 74,810 40,083 36,451 28,533 24,521 13,411 5,261 Mean Median
Publishers Thomson Reuters Corporation News Corporation Pearson plc UBM plc Lagardère SCA Graham Holdings Company The New York Times Company Time Inc. The E. W. Scripps Company Gannett Co., Inc.
$44.81 12.33 7.70 8.88 25.24 514.95 13.30 19.20 19.28 9.59
$36.34 10.21 6.91 6.72 19.63 440.55 10.60 12.23 12.16 7.30
$45.95 14.68 12.38 9.39 29.02 547.80 14.20 20.40 19.99 17.72
$32,596 7,171 6,275 3,494 3,235 2,891 2,143 1,902 1,598 1,118
$8,520 (1,122) 2,162 49 1,931 (504) (311) 937 308 268
$41,598 6,265 8,441 3,583 5,308 2,396 1,827 2,839 1,907 1,386 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 1/30/17
LTM Price Range Low High
Equity Value
Net Debt
$15.07 13.31 40.28 91.72 176.63 19.79 6.92 17.70 2.75 0.85
$30,085 18,015 14,680 14,053 13,179 9,493 3,828 2,025 345 95
$5,649 3,161 7,523 2,732 19,090 846 99 (1) 930 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.
$23.49 19.36 41.07 117.34 228.18 23.91 9.12 26.04 6.45 1.55
$23.83 20.25 55.94 136.97 241.69 24.82 9.47 27.73 23.90 3.73
$36,343 21,190 22,392 16,826 32,269 10,620 3,941 2,025 1,402 150 Mean Median
2.1x 4.6 3.6 5.6 4.5 1.4 1.6 2.3 1.0 0.3
2.1x NA 3.6 5.4 4.5 1.4 1.6 2.3 1.0 0.3
1.9x 4.4 3.5 4.9 4.2 1.3 1.6 2.2 1.0 0.3
14.3x 15.1 14.4 16.2 20.6 10.0 9.9 23.3 10.1 11.7
12.6x NA 11.7 15.0 15.4 9.6 10.0 13.1 8.4 4.1
11.2x 12.8 11.4 13.7 15.1 9.0 9.3 11.5 6.9 3.3
27.4x 21.9 25.2 29.7 31.1 17.9 19.6 NM NM NM
17.1x NA 14.9 21.4 13.5 18.2 18.7 39.7 NM 11.1
14.7x 20.6 15.1 19.6 12.4 16.5 17.1 36.5 9.7 7.4
9.1% 10.0% 8.8% 11.0% 13.8% 11.1% 7.1% 19.3% 6.0% NA
1.6 2.1 1.7 1.8 0.9 1.5 2.4 1.9 1.6 NA
12.5% NA 1.0% 8.3% 6.7% 3.3% 5.8% 4.6% 5.8% 0.5%
(5.4%) 2.6% 2.5% 20.5% 4.5% 3.0% 4.8% 4.8% 6.3% (10.4%)
2.7x 2.2
2.5x 2.1
2.5x 2.0
14.6x 14.3
11.1x 11.7
10.4x 11.3
24.7x 25.2
19.3x 17.6
17.0x 15.8
10.7% 10.0%
1.7 1.7
5.4% 5.8%
3.3% 3.8%
12.0x 5.7 5.3 5.1 5.0 1.1 5.8 2.1 1.8 2.0 1.1 0.7 0.7 0.7
11.4x 5.3 4.9 4.8 5.0 1.1 6.2 2.3 2.0 2.0 1.3 0.8 0.8 0.8
8.4x 4.2 4.7 4.5 4.2 0.9 4.7 1.5 2.0 1.7 1.5 0.8 0.7 0.7
28.1x 16.7 16.8 19.3 16.0 9.6 16.1 15.1 7.2 NM 2.5 3.5 2.6 NM
27.1x 15.4 13.4 15.0 15.7 7.9 17.5 4.6 8.0 25.3 3.2 4.0 2.7 NM
20.7x 12.6 13.2 13.6 12.3 6.5 11.6 4.1 5.9 14.3 3.9 5.3 2.3 NM
44.2x 21.9 34.4 21.4 NA 20.0 25.1 31.8 21.0 NM 7.0 7.5 8.9 NM
38.7x 18.8 19.5 24.6 30.8 18.6 26.0 29.0 20.8 NM 7.3 12.2 8.9 NM
29.3x 16.0 18.9 20.9 24.0 17.2 18.2 19.9 18.5 37.4 8.0 17.7 7.7 NM
27.8% 19.2% 21.1% 12.4% 31.2% 22.7% 37.3% 35.1% 22.1% 21.0% NA NA NM 15.0%
1.1 0.8 0.9 1.7 0.8 0.8 0.5 0.6 0.8 1.8 NA NA NM NM
35.0% 27.0% 3.8% 7.5% 18.9% 24.6% 32.8% 54.4% 4.7% 12.0% (12.8%) 1.0% 15.2% 5.5%
44.8% 31.6% 58.4% 10.2% 19.2% 31.0% 19.7% 36.7% 21.7% (6.8%) (16.7%) (8.7%) (28.1%) (18.8%)
3.5x 2.1
3.5x 2.2
2.9x 1.8
12.8x 15.5
12.3x 13.4
9.7x 11.6
22.1x 21.4
21.3x 20.2
19.5x 18.5
24.1% 22.1%
1.0 0.8
16.4% 13.6%
13.9% 19.4%
14.2x 5.1 4.8 4.2 2.4
12.8x 5.0 4.6 4.0 2.3
9.5x 4.6 3.8 3.2 1.9
27.3x NM 32.3 NM NM
19.9x 17.8 23.5 25.0 NM
15.2x 15.4 16.8 17.4 NM
50.5x NM 84.0 NM NM
31.6x 32.5 NM 57.7 NM
25.1x 28.4 40.7 38.9 NM
32.1% 23.5% 50.9% 33.1% 47.0%
0.8 1.2 0.8 1.2 NM
34.8% 9.3% 20.9% 25.7% 22.8%
55.8% 8.2% 19.3% 29.7% 12.9%
6.1x 4.8
5.7x 4.6
4.6x 3.8
29.8x 29.8
21.6x 21.7
16.2x 16.1
67.3x 67.3
40.6x 32.5
33.3x 33.6
37.3% 33.1%
1.0 1.0
22.7% 22.8%
25.2% 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.
$26.35 250.49 39.61 83.84 642.18 20.84 263.10 32.04 22.52 2.60 2.17 5.33 24.01 2.26
$17.03 129.60 26.49 53.01 463.94 16.04 181.65 19.89 13.47 1.78 1.99 4.06 15.21 1.73
$28.46 272.58 45.55 86.07 770.10 23.66 270.35 41.58 34.78 3.08 3.04 5.98 30.28 4.00
$247,194 32,934 29,439 25,300 18,500 5,769 5,588 3,583 3,268 2,319 1,545 1,250 1,220 302
($443) (4,177) 2,333 (2,276) (2,342) (281) (676) (42) (782) (871) (256) (806) (848) (148)
$248,273 28,794 31,772 23,024 16,603 5,488 4,921 3,541 2,558 1,448 1,305 444 401 154 Mean Median
Social Media & New Platform Facebook, Inc. Twitter, Inc. LINE Corporation Yelp Inc. Pandora Media, Inc.
$130.98 16.94 31.97 41.69 13.04
$96.82 39.40 31.05 14.53 7.10
$135.60 26.20 46.00 43.36 15.25
$377,507 12,017 6,962 3,271 3,043
($26,140) 771 (1,213) (432) 80
$351,367 12,788 5,750 2,839 3,122 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 1/30/17
LTM Price Range Low High
Equity Value
Net Debt
$52.60 47.32 46.00 148.26 18.58 23.11 16.06 22.25 11.06 8.96 27.00 13.88 23.52 9.20 11.07 14.00 11.76 3.74 2.82 4.68 10.28 2.84 4.70 1.88
$53,452 16,625 14,961 5,617 4,562 4,157 2,434 2,284 2,251 2,181 1,780 1,718 1,312 996 772 542 510 403 389 376 355 301 247 89
$1,315 (1,386) (392) (100) (400) (347) 54 (20) (211) (102) (113) (136) (221) (71) (18) (122) (62) (51) (49) (27) (63) (100) (34) (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. Cornerstone OnDemand, Inc. Zendesk, Inc. Box, Inc. HubSpot, Inc. RingCentral, Inc. Coupa Software Incorporated MINDBODY, Inc. AppFolio, Inc. Apptio, Inc. Everbridge, Inc. LivePerson, Inc. Bazaarvoice, Inc. Xactly Corporation ChannelAdvisor Corporation Jive Software, Inc. Brightcove Inc. Marin Software Incorporated
$78.71 82.71 90.12 193.70 50.70 29.22 30.25 40.65 23.61 17.23 50.00 23.35 26.24 24.60 22.90 14.14 18.77 6.95 4.70 12.00 13.75 3.85 7.30 2.30
$84.48 93.35 92.98 224.07 52.00 46.78 30.85 47.75 31.88 17.48 59.97 25.00 41.61 26.60 24.50 24.60 20.66 8.85 6.14 16.10 15.91 4.59 13.80 3.44
$54,766 15,238 14,569 5,517 4,162 3,810 2,488 2,264 2,040 2,079 1,667 1,582 1,091 926 754 419 447 351 340 349 291 201 212 55 Mean Median
8
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM.
6.9x 10.5 10.5 7.4 12.6 7.3 4.6 5.5 7.1 5.6 6.7 4.4 8.9 7.2 7.7 2.8 6.2 1.6 1.7 3.8 2.6 1.0 1.4 0.5
6.5x 9.8 10.5 7.1 10.9 6.6 4.4 5.3 6.6 5.2 6.2 4.2 8.3 6.7 7.2 2.6 5.9 1.6 1.7 3.7 2.6 1.0 1.4 0.6
5.4x 7.6 7.9 5.7 7.4 4.4 3.8 4.6 5.0 4.2 4.8 3.4 6.6 5.1 5.5 2.2 4.7 1.5 1.6 3.1 2.3 1.0 1.3 0.6
NM NM NM 85.4 NM NM 33.2 NM NM NM NM NM NM NM NM NM NM 20.9 NM NM NM NM NM NM
31.9x NM 55.9 29.6 NM NM 19.9 67.1 NM NM NM 73.6 NM NM NM NM NM 18.6 26.1 NM 56.4 11.9 28.7 NM
25.8x 69.3 36.5 23.3 NM NM 16.5 46.3 NM NM NM 50.7 NM NM NM NM NM 15.4 19.3 NM 44.3 10.0 20.0 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
80.4x NM NM 59.7 NM NM 40.8 NM NM NM NM NM NM NM NM NM NM NM NA NM NM 59.2 NM NM
61.2x NM 84.0 48.4 NM NM 33.6 NM NM NM NM NM NM NM NM NM NM 81.1 NM NM NM 35.0 61.7 NM
27.0% 32.6% 41.6% 26.4% 25.0% 30.0% 20.0% 20.0% 25.0% NM 25.0% 28.8% NA 15.0% 30.0% NA 20.0% 20.0% NA 22.5% NA NA 15.0% NA
2.3 NM 2.0 1.8 NM NM 1.7 NM NM NM NM NM NA NM NM NA NM 4.1 NA NM NA NA 4.1 NA
21.4% 27.5% 32.8% 24.0% 47.8% 51.9% 14.7% 15.4% 32.3% 25.9% 30.3% 24.2% 25.1% 29.6% 30.1% 19.4% 25.8% 2.8% 4.4% 19.4% 14.1% 0.8% 9.5% (3.5%)
25.3% 34.2% 35.0% 26.8% 88.6% 90.1% 21.7% 23.5% 45.0% 30.7% 48.0% 26.1% 55.4% 35.2% 38.7% 26.0% 31.2% (10.3%) 1.0% 25.4% 14.8% 1.6% 13.5% (8.8%)
5.6x 5.9
5.3x 5.6
4.2x 4.5
46.5x 33.2
38.1x 29.6
30.6x 23.3
NM NM
60.0x 59.5
57.8x 61.2
24.9% 25.0%
2.7 2.1
21.9% 24.1%
29.9% 26.5%
PUBLIC SAAS COMPANIES Valuation Correlation to Growth and Cash Flow Selected Public Saas Companies Company
12.0x
Identifier 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
NOW WDAY
8.0x COUP
6.0x
APPF
ULTI CRM
MB HUBS
ZEN
CSOD EVGB 4.0x
NTNX BOX
RP
RNG XTLY ECOM
2.0x
APTI
SHOP
LPSN
ULTI
MRIN
WDAY XTLY
SHOP
(10%)
0%
JIVE
10%
BV BCOV
20%
30%
40%
50%
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 0.74.
60%
70%
PUBLIC SAAS COMPANIES Valuation Correlation to S&M Effectiveness Selected Public Saas Companies Company
Identifier
R = 0.81
14.0x
APPF APTI BCOV
12.0x
BOX
SHOP
BV
CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP
Enterprise Value / CY 2016E Revenue
COUP
NOW
WDAY
10.0x
COUP 8.0x ULTI CRM
ZEN
6.0x
HUBS
CSOD BOX
APPF
MB NTNX
EVBG
RNG
4.0x
RP
XTLY
ECOM
LPSN 2.0x
SHOP
BV
APTI
BCOV
JIVE
MRIN
ULTI WDAY
(0.5x)
0.0x
0.5x
1.0x
1.5x
XTLY ZEN
Annual Change in Revenue (CY16E) / LTM Sales & Marketing Expense 10
Notes: Source: Capital IQ and Wall Street Estimates.
2.0x
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
(1)
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
1/9/2017
$425
NA
NA
NA
NA
12/20/2016
$560
NA
NA
NA
NA
12/19/2016
$118
3.0x
NA
NA
NA
$153
NA
NA
NA
NA
12/15/2016
$82
NA
NA
NA
NA
12/14/2016
$2,871
2.5x
6.8x
2.3x
5.0x
12/14/2015
$135
NA
NA
NA
NA
(2)
(1)
12/16/2016
Dalian Zeus Entertainment
Pocket Technology
(1)
11
Notes: Multiples 50x considered NM. Disclosed transactions with Enterprise Value
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