May 15, 2017 - Search/online advertising composite, internet commerce composite, ... Details on companies included can b
Internet / Digital Media / SaaS Sector Summary Week of May 15th, 2017
DEAL DASHBOARD Internet / Digital Media / SaaS 186
$15.2 Billion
$15.0 Billion
40
2017 Financing Transactions (1)(2)(3)
2017 Financing Volume (1)(2)(3)
2017 M&A Volume (3)(4)
2017 M&A Transactions (3)(4)
Quarterly Financing Volume ($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
$55
Target
EV ($Bn) $6.6
$36 $16
$20 $21
$14 $14 (H R & B e n e f it s B P O )
$6
$4
167 177
$1.4
Quarterly M&A Deal Count (3)
$0.8 32
30 20
50
10
0
0
$55.0
$4.3 $3.9
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
$0.8 $0.6 $0.6
Last 12 Months Digital Media Price Performance vs. S&P 500 (5) 33%
15%
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]
Phone: (415) 318-3661 Mobile: (415) 518-6725
[email protected]
Phone: (415) 318-3653 Mobile: (415) 308-4760
[email protected]
Phone: (212) 999-7083 Mobile: (917) 744-9011
[email protected]
Phone: (415) 318-3667 Mobile: (415) 722-0922
[email protected]
Phone: (212) 999-7092 Mobile: (917) 306-4168
[email protected]
Gautam Garg
Giuseppe Diprima
Tomohiko Kubota*
Saif Malik*
Vice President
Vice President
Vice President
Vice President
Phone: (415) 318-3692 Mobile: (650) 504-1722
[email protected]
Phone: (212) 999-7088 Mobile: (347) 622-1887
[email protected]
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 125%
160%
55.3% 150%
120%
19.8%
45.9% 16.1%
140%
35.5% 30.8% 27.6% 27.4% 25.4%
130%
115%
11.8% 11.0% 10.5% 9.0%
110%
120%
13.9%
105%
2.7% 2.7%
100%
5.7%
110%
100%
90% 5/17/2016
7/8/2016
8/29/2016
10/20/2016
Search / Online Advertising
(1)
12/11/2016
2/1/2017
3/25/2017
(2)
(5)
Diversified Marketing
95% 2/17/2017
5/16/2017
Internet Commerce
Media Conglomerates
(0.1%) (0.2%) (1.2%)
Internet Content
(6)
Gaming
(7)
3/11/2017
(3)
4/2/2017
Publishers
SaaS
4/24/2017
(4)
(8)
5/16/2017
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), VIAB. (7) Gaming Composite includes: ATVI, CYOU, DENA (2432-JP), EA, 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, AYX, BCOV, BOX, BV, COUP, CRM, CSOD, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, MULE, NOW, NTNX, OKTA, RNG, RP, SHOP, ULTI, WDAY, XTLY, YEXT, 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
7.5x
7.0x 6.0x
5.0x 4.0x 3.0x 2.0x
Mean: 3.6x Median: 2.7x
5.6x
20.0x
4.0x
3.4x 2.7x
2.7x
2.6x
27.9x Mean: 14x Median: 13.5x
18.4x 16.4x
14.6x
13.5x 11.9x
2.5x
10.0x
11.4x
9.1x
8.9x
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), VIAB. (7) Gaming Composite includes: ATVI, CYOU, DENA (2432-JP), EA, 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, AYX, BCOV, BOX, BV, COUP, CRM, CSOD, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, MULE, NOW, NTNX, OKTA, RNG, RP, SHOP, ULTI, WDAY, XTLY, YEXT, 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 5/15/17 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) QuinStreet, Inc. YuMe, Inc. Rocket Fuel Inc. Marchex, Inc. Tremor Video, Inc. Marin Software Incorporated MaxPoint Interactive, Inc.
$959.22 68.43 28.90 52.76 53.57 0.59 5.83 3.89 4.12 3.00 2.98 2.49 1.45 6.86
Trading Statistics LTM Price Range Low High $672.66 48.04 17.28 32.83 22.00 0.21 5.37 2.61 3.11 1.70 2.46 1.45 1.40 3.85
$962.70 69.71 29.11 55.39 54.50 0.65 15.44 4.63 4.36 5.90 3.80 2.76 2.82 11.94
Equity Value $663,543 528,315 9,367 3,416 2,140 291 282 177 141 139 128 125 57 46
Cash & Equiv.
Net Debt
$92,439 121,576 1,040 304 107 52 188 42 61 63 103 28 33 20
($88,502) (35,581) (736) (217) (81) (52) (188) (42) (60) 23 (103) (27) (30) (2)
Enterprise Value $575,041 492,734 8,665 3,212 2,060 239 94 135 81 162 25 98 27 44 Mean Median
Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. WebMD Health Corp. Shutterfly, Inc. comScore, Inc. (2) Web.com Group, Inc. Bankrate, Inc. Care.com, Inc. XO Group Inc. Renren Inc. eHealth, Inc. TechTarget, Inc. DHI Group, Inc.
$43.30 103.64 23.52 39.06 55.22 51.84 26.08 21.90 11.00 15.40 17.30 6.25 17.83 9.02 3.20
$26.77 52.23 17.91 28.13 48.10 41.91 20.81 12.90 6.91 7.32 14.99 6.01 6.38 6.73 3.10
$44.13 103.95 26.65 40.27 67.55 54.60 34.85 22.50 11.95 15.43 20.99 12.70 18.27 9.94 8.43
$7,959 8,155 5,052 3,588 2,003 1,750 1,494 1,014 985 453 435 425 329 248 162
$559 1,431 80 671 1,034 207 147 24 183 81 103 80 68 27 25
($187) 146 3,887 367 11 193 (114) 648 113 (81) (103) 53 (68) 11 52
$7,772 8,497 9,273 4,095 2,015 1,944 1,380 1,662 1,098 372 332 478 260 258 214 Mean Median
CY 16A
EV / Revenue CY 17E
CY 18E
CY 16A
EV / EBITDA CY 17E
CY 18E
Operating Metrics Revenue Growth '16A/'15A '17E/'16A '18E/'17E CY 16A
6.4x 5.3 7.0 4.4 10.1 1.4 0.4 0.5 0.5 0.4 0.2 0.6 0.3 0.3
5.4x 4.9 5.3 3.4 7.0 1.1 0.4 0.4 NA 0.4 0.3 0.5 NA 0.3
4.6x 4.6 4.5 NA 5.6 1.0 NA 0.4 NA 0.4 0.3 0.4 NA NA
15.7x 13.6 20.3 14.3 31.6 NM 1.5 18.5 7.5 11.0 NM NM 11.5 NM
13.2x 12.8 15.8 11.2 25.8 20.3 1.6 6.8 NA 31.7 NM 23.5 NA 17.3
11.2x 11.6 12.9 8.7 18.8 11.2 3.0 5.2 NA 13.9 10.3 6.8 NA NA
20.4% 5.5% 49.2% 36.7% 78.3% (5.6%) 10.9% 5.6% (7.4%) (1.2%) (9.4%) (4.1%) (8.0%) 6.4%
18.9% 7.5% 31.2% 27.9% 45.0% 20.7% (3.8%) 1.0% N/A (7.4%) (27.0%) 18.2% N/A N/A
2.7x 0.5
2.5x 0.8
2.4x 1.0
14.5x 14.0
16.4x 15.8
10.3x 11.2
12.7% 5.5%
12.0% 18.2%
9.2x 2.7 2.8 2.2 2.9 1.7 2.7 2.3 2.5 2.3 2.2 7.5 1.4 2.4 0.9
7.3x 2.7 2.8 1.9 2.8 1.7 2.5 2.2 2.2 2.2 2.0 5.0 1.5 2.3 1.0
6.1x 2.4 2.5 1.6 2.7 1.6 2.2 2.1 1.9 2.0 1.9 NA 1.3 2.1 1.0
NM 17.0 7.5 9.8 8.7 9.3 11.0 9.3 9.6 27.7 10.2 NM 45.7 13.9 3.7
34.0x 14.6 9.0 7.5 8.5 8.8 8.6 8.7 8.7 18.2 11.6 NM NM 11.7 4.7
25.6x 11.6 7.6 6.2 8.2 7.2 7.0 8.0 7.6 14.2 9.0 NA 39.5 9.2 4.5
31.3% (2.8%) 9.5% 15.0% 10.8% 7.1% 40.9% 34.1% 16.7% 16.6% 7.4% 54.1% (1.4%) (4.7%) (12.6%)
25.8% (0.3%) 0.5% 19.5% 2.2% 2.3% 6.0% 3.7% 16.3% 6.8% 6.9% 51.0% (4.9%) 4.0% (6.1%)
3.0x 2.4
2.7x 2.2
2.2x 2.0
14.1x 9.8
11.9x 8.8
11.8x 8.1
14.8% 10.8%
8.9% 4.0%
16.2% 6.5% 19.4% N/A 25.1% 17.2% N/A 6.5% N/A 4.2% 2.5% 15.6% N/A N/A 12.6% 15.6% 19.4% 12.2% 10.5% 15.2% 2.8% 6.2% 15.9% 4.4% 11.5% 10.0% 10.0% N/A 9.3% 12.4% 1.2% 10.1% 10.2%
EBITDA Margin CY 17E
40.5% 38.9% 34.4% 30.8% 32.1% (0.9%) 25.8% 2.4% 6.8% 3.2% (5.1%) (1.2%) 2.4% (1.7%)
40.7% 38.6% 33.6% 30.6% 27.1% 5.6% 23.7% 6.5% N/A 1.2% (1.8%) 2.1% N/A 1.7%
14.9% 5.0%
17.5% 15.1%
17.1% 16.0% 36.9% 22.6% 32.7% 18.4% 24.1% 24.6% 26.4% 8.3% 21.4% (109.4%) 3.0% 17.4% 25.4%
21.5% 18.6% 30.6% 24.6% 32.9% 19.1% 29.1% 25.2% 24.9% 11.8% 17.6% (66.4%) (4.5%) 19.9% 21.3%
12.3% 21.4%
15.1% 21.3%
CY 18E 41.2% 40.0% 34.6% N/A 29.8% 8.7% N/A 8.1% N/A 2.7% 2.5% 6.3% N/A N/A 19.3% 8.7% 23.9% 20.9% 32.9% 26.1% 33.1% 21.8% 30.8% 26.3% 25.5% 13.8% 20.7% N/A 3.4% 22.4% 22.1% 23.1% 23.2%
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 5/15/17 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. Angie's List, Inc. Overstock.com, Inc. Travelzoo CafePress Inc.
$957.97 121.40 1,813.81 160.02 34.18 143.02 23.55 29.98 19.96 44.32 86.54 121.05 44.77 11.32 10.50 10.55 11.45 15.05 10.15 2.67
Trading Statistics LTM Price Range High Low $682.12 73.30 1,148.06 84.50 22.30 96.58 17.24 21.18 10.88 21.41 78.80 68.82 38.64 8.11 9.10 7.19 5.22 13.05 7.50 2.45
$963.15 121.49 1,927.13 161.78 34.74 143.30 27.25 31.57 21.89 46.84 104.18 136.00 65.16 16.05 14.36 11.40 11.96 20.50 13.27 3.72
Equity Value $457,886 303,500 89,135 68,969 36,994 21,589 10,621 6,886 4,771 3,821 2,695 2,050 1,548 1,319 949 689 685 376 133 45
Cash & Equiv.
Net Debt
$21,531 20,422 5,370 1,341 6,754 3,355 379 175 232 361 43 118 250 276 175 57 41 136 29 33
$68 (7,341) 2,914 2,024 2,212 (184) 5,805 537 (232) (361) 1,009 32 (250) (265) (175) 53 17 (78) (29) (33)
Enterprise Value $457,954 302,255 92,050 70,993 39,206 22,975 16,520 7,423 4,756 3,459 3,747 2,083 1,297 1,054 774 742 702 295 104 11 Mean Median
Media Conglomerates / Selected Entertainment $38.97 Comcast Corporation 109.13 The Walt Disney Company 27.73 Twenty-First Century Fox, Inc. 35.62 Sony Corporation 62.08 CBS Corporation 26.01 Discovery Communications, Inc. 33.76 Viacom, Inc. 68.28 Scripps Networks Interactive, Inc.
$29.81 90.32 23.33 23.76 48.88 23.66 33.60 58.73
$40.62 116.10 32.60 36.00 70.10 30.25 46.72 83.42
$185,201 170,775 51,324 44,975 25,202 15,193 13,562 8,860
$4,022 3,800 5,572 6,204 163 434 671 108
$247,009 192,111 67,502 55,361 33,992 23,110 25,329 12,073
$57,763 17,853 14,324 4,554 8,790 7,668 11,518 2,946 Mean Median
Publishers Thomson Reuters Corporation News Corporation Pearson plc Lagardère SCA UBM plc Graham Holdings Company The New York Times Company The E. W. Scripps Company Time Inc. Gannett Co., Inc.
$44.36 12.89 8.98 30.14 9.26 601.00 17.25 17.85 13.05 7.96
$36.62 10.54 7.13 20.15 7.29 440.55 10.60 12.16 12.20 7.30
$46.00 14.68 12.78 31.79 10.04 615.85 17.45 24.15 20.40 16.48
$32,034 7,500 7,318 3,863 3,644 3,360 2,787 1,470 1,298 905
$943 1,850 1,814 508 105 1,089 543 132 281 89
$39,015 6,304 8,883 5,473 4,431 2,777 2,488 1,730 2,257 1,200
$6,489 (1,474) 1,559 1,469 744 (596) (295) 260 958 296 Mean Median
CY 16A
EV / Revenue CY 17E
CY 18E
CY 16A
EV / EBITDA CY 17E
CY 18E
Operating Metrics Revenue Growth CY 16A '18E/'17E '17E/'16A '16A/'15A
EBITDA Margin CY 17E
CY 18E
3.4x 14.6 8.6 8.0 4.4 2.6 1.6 5.4 6.0 7.0 1.9 5.7 2.6 2.9 2.8 0.6 2.2 0.2 0.8 0.1
2.8x 10.8 7.4 6.3 4.2 2.3 1.6 5.0 3.9 5.3 1.6 4.9 2.3 2.4 2.5 0.6 2.4 0.2 1.0 0.1
2.3x 8.4 6.4 5.3 3.9 2.0 1.6 4.6 2.8 4.4 1.4 4.2 2.1 2.1 2.1 0.6 2.2 0.2 0.9 0.1
39.2x 39.6 22.2 NM 13.0 21.4 9.4 15.2 NM 29.9 25.6 14.8 20.3 30.2 NM 9.5 NM NM 8.0 7.6
24.2x 23.0 19.6 NM 11.5 12.5 8.4 13.4 NM 19.0 13.3 9.7 12.1 20.5 17.7 8.0 17.8 13.9 13.5 5.2
18.5x 18.3 16.7 43.4 10.5 10.3 8.0 12.0 41.9 15.2 11.0 8.3 10.2 13.7 12.9 7.3 17.1 13.3 9.1 2.8
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% (6.0%) 8.6% (9.3%) (4.6%)
22.1% 35.7% 15.1% 27.6% 4.9% 15.3% 0.6% 8.0% 52.4% 32.2% 21.0% 17.0% 11.8% 18.9% 13.9% 0.1% (8.0%) 4.5% (15.4%) 2.2%
20.8% 27.7% 15.5% 19.4% 6.0% 13.3% 3.6% 8.8% 39.0% 21.7% 13.4% 16.0% 11.1% 16.8% 15.9% 1.0% 5.2% 4.5% 3.1% 6.6%
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% 9.6% (2.4%) 6.6% 1.5% 0.1% 10.2% 1.4%
11.4% 46.8% 38.0% 9.1% 36.2% 18.2% 19.0% 37.3% 4.6% 28.0% 12.0% 50.4% 19.4% 11.9% 14.0% 7.8% 13.2% 1.1% 7.1% 2.1%
12.4% 46.1% 38.5% 12.2% 37.3% 19.5% 19.4% 38.3% 6.7% 28.6% 12.8% 50.8% 20.7% 15.2% 16.5% 8.5% 13.1% 1.1% 10.2% 3.6%
4.1x 2.9
3.4x 2.4
2.9x 2.2
20.4x 20.3
14.6x 13.5
15.0x 12.4
20.7% 17.1%
14.0% 14.5%
13.5% 13.4%
14.7% 9.9%
19.4% 13.6%
20.6% 15.9%
3.1x 3.5 2.4 0.9 2.4 3.6 2.0 3.5
2.9x 3.3 2.3 0.8 2.5 3.4 1.9 3.4
2.7x 3.2 2.3 0.7 2.4 3.2 1.9 3.2
9.4x 11.1 9.5 13.4 10.0 9.5 8.8 9.0
8.7x 10.6 9.2 7.1 10.6 9.2 7.9 8.3
8.2x 9.9 8.6 6.7 9.7 8.8 7.7 7.9
7.9% 1.6% 5.9% (5.8%) 13.5% 1.6% (3.2%) 12.7%
5.3% 4.5% 4.3% 6.9% (6.9%) 4.9% 5.1% 5.8%
6.4% 4.9% 2.4% 8.3% 4.9% 6.9% 1.8% 4.3%
32.9% 31.5% 25.4% 6.4% 23.5% 37.3% 22.6% 39.5%
33.4% 31.3% 25.1% 11.4% 23.9% 37.0% 24.0% 40.7%
33.3% 32.0% 26.2% 11.1% 24.8% 35.9% 24.4% 40.6%
2.7x 2.7
2.6x 2.7
2.4x 2.6
10.1x 9.5
8.9x 9.0
8.5x 8.4
4.3% 3.8%
3.7% 5.0%
5.0% 4.9%
27.4% 28.4%
28.3% 28.2%
28.5% 29.1%
3.5x 0.8 1.6 0.7 4.2 NA 1.6 1.8 0.7 0.4
3.4x 0.8 1.5 0.7 3.4 NA 1.5 1.9 0.8 0.4
3.4x 0.8 1.5 0.7 3.4 NA 1.5 1.6 0.8 0.4
12.3x 6.7 9.2 8.1 14.2 NA 10.3 9.3 5.5 3.4
11.6x 6.8 9.8 7.8 11.3 NA 9.7 15.6 5.7 3.4
11.1x 6.4 9.5 7.4 11.1 NA 9.3 8.8 5.5 3.5
(0.8%) (1.6%) (14.7%) (3.7%) (6.2%) N/A (1.5%) 31.8% (1.0%) 5.6%
1.5% (1.1%) 6.5% 1.2% 21.7% N/A 4.5% (3.3%) (5.7%) 4.3%
2.7% (2.3%) (1.2%) 1.6% 0.6% N/A 1.7% 15.2% (1.1%) (4.0%)
1.7x 1.6
1.6x 1.5
1.6x 1.5
8.8x 9.2
9.1x 9.7
8.1x 8.8
0.9% (1.5%)
3.3% 1.5%
1.5% 0.6%
28.4% 11.4% 17.2% 8.6% 29.2% N/A 15.5% 19.7% 13.5% 11.5% 17.2% 15.5%
29.7% 11.5% 15.2% 8.9% 30.3% N/A 15.9% 12.1% 13.5% 11.1% 16.5% 13.5%
30.1% 12.4% 15.9% 9.2% 30.6% N/A 16.1% 18.7% 14.2% 11.1% 17.6% 15.9%
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 5/15/17 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)
$22.10 21.68 136.63 41.12 244.85 24.35 10.17 28.36 8.50 1.33
Trading Statistics LTM Price Range High Low $15.55 15.81 110.87 38.31 185.02 21.67 7.14 19.11 2.75 0.85
$24.90 21.89 139.89 55.94 266.25 25.34 10.29 30.40 19.26 2.09
Equity Value $27,744 20,140 16,424 14,692 13,632 9,621 4,268 2,223 484 82
Cash & Equiv. $3,009 166 123 451 1,867 778 855 138 23 7
Net Debt
Enterprise Value $33,391 23,315 19,034 22,853 32,436 11,034 4,127 2,322 1,475 136
$5,100 3,161 2,546 7,967 18,804 1,139 (157) 99 864 54 Mean Median
Gaming Tencent Holdings Limited Activision Blizzard, Inc. NetEase, Inc. Electronic Arts Inc. Naver Corporation NCsoft Corporation Ubisoft Entertainment SA DeNA Co., Ltd. Zynga Inc. Gree, Inc. GungHo Online Entertainment, Inc. Changyou.com Limited Glu Mobile Inc.
$33.25 56.41 284.25 110.90 751.52 321.57 54.90 23.92 3.39 7.93 2.46 31.20 2.67
$19.94 35.12 155.15 71.01 596.56 190.79 29.79 17.71 2.27 4.07 1.99 17.43 1.73
$33.46 56.60 308.66 111.26 808.85 341.28 54.90 34.80 3.43 8.14 3.04 33.09 2.95
$311,972 42,514 37,310 34,186 21,649 6,830 6,115 3,470 2,916 1,863 1,752 1,592 360
$17,603 3,248 5,830 4,532 0 817 1,028 805 720 712 338 836 73
$311,814 43,659 32,256 30,644 22,123 6,146 6,073 2,913 2,195 1,150 1,435 786 287
($1,833) 1,145 (5,179) (3,542) 0 (693) (42) (620) (720) (712) (334) (836) (73) Mean Median
Social Media & New Platform Facebook, Inc. Snap Inc. Twitter, Inc. LINE Corporation Yelp Inc. Pandora Media, Inc.
$150.19 20.74 19.23 34.10 29.01 9.72
$108.23 17.59 13.73 30.71 24.39 9.40
$153.60 29.44 26.20 46.02 43.41 14.98
$435,277 24,449 13,956 7,469 2,338 2,336
$32,306 3,243 3,944 1,189 485 203
$402,971 21,222 11,731 6,471 1,852 2,481
($32,306) (3,227) (2,225) (1,002) (485) 144 Mean Median
CY 16A
EV / Revenue CY 17E
CY 18E
CY 16A
EV / EBITDA CY 17E
CY 18E
Operating Metrics Revenue Growth CY 16A '18E/'17E '17E/'16A '16A/'15A 16.8% 34.1% 35.8% 30.7% 29.4% 14.0% 16.5% 18.8% 12.8% N/A
EBITDA Margin CY 17E 16.8% 34.7% 36.7% 30.8% 25.8% 14.5% 16.4% 19.6% 13.8% 4.0%
CY 18E 17.2% 34.9% 37.4% 31.3% 26.4% 14.9% 16.6% 20.8% 15.0% N/A
1.9x 5.1 6.1 3.6 4.5 1.4 1.7 2.6 1.1 0.3
1.6x 4.9 5.6 3.5 4.1 1.4 1.6 2.5 1.0 0.3
1.6x 4.7 5.2 3.3 3.8 1.3 1.5 2.3 0.9 NA
11.2x 15.0 16.9 11.8 15.5 10.0 10.4 14.0 8.3 NA
9.8x 14.1 15.2 11.3 16.1 9.5 9.6 12.9 7.2 8.6
9.3x 13.3 13.9 10.7 14.3 8.9 9.2 10.9 6.3 NA
(1.5%) (2.3%) 18.1% 2.2% 10.8% 3.1% 1.1% 5.9% 4.5% (18.9%)
14.4% 4.8% 8.3% 4.6% 9.6% 1.9% 9.0% 4.3% 7.2% (0.9%)
2.2% 5.0% 7.2% 3.6% 10.0% 4.2% 3.2% 12.0% 4.6% N/A
2.8x 2.3
2.7x 2.1
2.7x 2.3
12.6x 11.8
11.4x 10.5
10.8x 10.7
2.3% 2.6%
6.3% 6.0%
5.8% 4.6%
23.2% 18.8%
21.3% 18.2%
23.8% 20.8%
14.2x 6.6 5.8 6.4 6.6 7.5 4.0 2.4 3.0 2.1 1.5 1.5 1.4
10.2x 6.8 4.2 6.0 5.4 5.1 2.8 2.3 2.7 2.0 1.7 1.4 1.0
7.9x 6.2 3.5 5.6 4.7 4.3 2.7 2.3 2.4 1.7 1.9 1.3 0.9
32.4x 17.8 17.1 19.0 21.1 20.5 8.3 10.0 35.4 10.9 3.5 5.0 NM
26.0x 18.7 13.2 17.0 16.8 13.7 7.1 8.5 21.0 11.4 4.3 4.1 NM
20.6x 15.2 11.6 15.4 14.4 10.7 6.2 6.8 14.7 12.0 5.2 3.9 NM
38.1% 41.5% 58.3% 11.7% 20.8% 14.7% 8.2% 2.1% (3.0%) (19.7%) (25.0%) (31.0%) (19.7%)
40.2% (2.3%) 39.1% 7.0% 23.7% 47.7% 44.3% 2.9% 10.6% 9.1% (11.6%) 6.0% 37.6%
28.7% 9.8% 19.3% 6.5% 13.1% 19.4% 4.3% 0.0% 9.8% 18.0% (10.6%) 10.2% 10.9%
44.0% 37.2% 33.9% 33.8% 31.4% 36.7% 48.4% 23.7% 8.4% 19.7% 43.2% 29.9% (19.5%)
39.1% 36.3% 31.5% 35.3% 31.8% 37.3% 39.1% 27.0% 12.7% 17.2% 38.7% 34.7% (6.0%)
38.3% 40.5% 30.2% 36.6% 32.8% 40.1% 42.9% 33.9% 16.6% 13.9% 36.1% 32.5% 1.2%
4.9x 4.0
4.0x 2.8
3.5x 2.7
16.7x 17.4
13.5x 13.5
11.4x 11.8
7.5% 8.2%
19.6% 10.6%
10.7% 10.2%
28.5% 33.8%
28.8% 34.7%
30.4% 33.9%
14.6x NA 4.6 5.4 2.6 1.8
10.5x 21.3 5.0 4.4 2.2 1.6
8.2x 10.8 4.7 3.8 1.8 1.2
22.3x NA 15.6 20.2 15.4 NM
17.0x NM 18.9 24.5 13.1 NM
13.5x NM 16.6 17.9 10.0 NM
54.2% N/A 14.0% 20.3% 29.7% 19.0%
39.4% N/A (8.1%) 22.7% 20.0% 13.7%
65.4% N/A 29.7% 26.6% 16.8% (8.6%)
61.4% (69.2%) 26.7% 17.8% 16.5% (6.1%)
60.5% (23.6%) 28.3% 21.4% 18.2% 1.9%
5.8x 4.6
7.5x 4.7
5.1x 4.3
18.4x 17.9
18.4x 18.0
14.5x 15.1
26.0% 26.6%
7.9% 17.2%
17.8% 19.8%
27.4% 20.3%
17.6% 20.0%
28.0% 96.1% 7.2% 14.3% 18.3% 26.1% 31.7% 22.2%
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 5/15/17 SaaS Salesforce.com, inc. Workday, Inc. ServiceNow, Inc. Shopify Inc. The Ultimate Software Group, Inc. MuleSoft, Inc. RealPage, Inc. Zendesk, Inc. HubSpot, Inc. RingCentral, Inc. Box, Inc. Nutanix, Inc. Cornerstone OnDemand, Inc. Okta, Inc. Coupa Software Incorporated Yext, Inc. MINDBODY, Inc. Alteryx, Inc. Everbridge, Inc. LivePerson, Inc. Apptio, Inc. Jive Software, Inc. Xactly Corporation Bazaarvoice, Inc. ChannelAdvisor Corporation Brightcove Inc. Marin Software Incorporated
$89.80 95.72 97.95 94.24 212.11 24.09 34.95 27.33 71.00 33.05 18.52 17.00 38.38 $23.74 33.45 $13.63 27.30 18.20 25.38 10.15 14.69 5.33 12.60 4.55 11.80 6.05 1.45
Trading Statistics LTM Price Range Low High $66.43 65.79 63.51 25.70 180.29 21.17 20.01 11.06 41.63 17.98 9.86 14.38 30.31 $22.60 22.50 $0.00 12.99 0.00 11.76 5.43 10.77 3.50 7.72 3.33 10.20 5.40 1.40
$89.94 96.03 99.09 95.88 224.07 25.92 38.25 31.88 74.80 33.35 18.63 46.78 47.75 $26.90 41.61 $15.11 29.75 20.15 25.66 10.45 24.60 5.35 16.10 6.14 15.91 13.80 2.82
Equity Value $63,878 19,703 16,640 8,616 6,304 3,102 2,890 2,705 2,595 2,484 2,459 2,435 2,181 2,155 1,704 1,187 1,119 1,038 702 593 568 425 403 377 311 207 57
Cash & Equiv. $2,209 1,997 975 396 84 340 60 248 123 150 177 355 290 38 202 24 88 164 40 48 111 119 42 83 63 29 33
Net Debt
Enterprise Value
$501 (1,462) (459) (396) (75) (340) 61 (248) (122) (150) (102) (355) (50) (37) (202) (19) (73) (164) (40) (48) (111) (119) (28) (46) (62) (28) (30)
$64,379 18,241 16,181 8,220 6,229 2,763 2,951 2,457 2,474 2,335 2,357 2,079 2,131 2,118 1,502 1,167 1,047 873 663 545 457 306 375 330 249 178 27 Mean Median
CY 16A
EV / Revenue CY 17E
CY 18E
CY 16A
EV / EBITDA CY 17E
CY 18E
Operating Metrics Revenue Growth '16A/'15A '17E/'16A '18E/'17E CY 16A
7.7x 11.6 11.6 21.1 8.0 NA 5.2 7.9 9.1 6.1 5.9 3.4 5.0 NA 11.2 NA 7.5 NA 8.6 2.4 2.8 1.5 3.9 1.6 2.2 1.2 0.3
6.3x 9.0 8.6 13.1 6.4 10.1 4.6 5.8 6.9 4.8 4.7 2.4 4.4 9.3 8.9 7.0 5.8 7.1 6.5 2.6 2.5 1.5 3.3 1.6 2.0 1.2 NA
5.3x 7.2 6.7 9.3 5.3 7.5 4.0 4.5 5.5 3.8 3.8 1.8 3.8 6.7 7.2 5.3 4.6 5.2 5.2 2.5 2.2 1.4 2.8 1.5 1.8 1.1 NA
37.0x NM NM NM 33.7 NA 23.2 NM NM NM NM NM NM NA NM NA NM NA NM 28.4 NM 16.5 NM 22.5 33.4 31.3 11.5
29.6x NM 39.4 NM 26.5 NM 18.4 NM NM NM NM NM 38.2 NM NM NM NM NM NM 29.5 NM 13.9 NM 19.7 36.1 NM NA
23.5x 47.8 27.0 NM 21.2 NM 14.9 NM NM NM NM NM 25.7 NM NM NM NM NM NM 23.0 NM 12.5 NM 13.4 23.9 24.0 NA
25.9% 35.0% 38.3% 89.7% 26.4% 70.3% 21.1% 49.4% 48.9% 28.2% 31.7% 83.4% 24.6% N/A 59.9% N/A 37.1% 59.4% 30.9% (6.8%) 24.2% 4.2% 25.6% 2.2% 12.5% 11.6% (8.0%)
21.3% 28.9% 35.0% 61.7% 23.9% 45.3% 14.1% 34.8% 32.4% 29.1% 26.1% 42.4% 13.8% N/A 26.1% N/A 30.0% 38.5% 32.1% (6.9%) 12.8% (1.2%) 17.6% 1.7% 9.4% 1.0% N/A
6.4x 5.9
5.6x 5.8
4.5x 4.6
26.4x 28.4
27.9x 29.5
23.3x 23.5
33.0% 28.2%
23.8% 26.1%
19.4% 25.1% 29.4% 39.7% 21.7% 35.4% 13.1% 29.8% 25.9% 23.8% 22.7% 36.2% 15.6% 39.0% 23.7% 33.2% 25.1% 35.8% 26.0% 5.2% 15.4% 5.1% 20.7% 6.4% 11.4% 7.0% N/A 22.8% 23.7%
EBITDA Margin CY 17E
CY 18E
20.8% 9.2% 17.9% 0.5% 23.6% N/A 22.4% 2.1% (0.3%) 5.5% (7.6%) (47.8%) 7.3% N/A (23.1%) N/A (3.5%) N/A 0.0% 8.6% (7.3%) 9.1% (4.2%) 7.3% 6.6% 3.8% 2.4%
21.3% 13.2% 21.9% 0.7% 24.3% (18.4%) 24.7% 3.0% 3.2% 6.2% (8.1%) (19.1%) 11.6% (36.6%) (13.2%) (22.7%) 2.3% (14.6%) (1.7%) 8.9% (5.1%) 10.9% (3.9%) 8.2% 5.6% (2.6%) N/A
22.5% 15.1% 24.7% 4.3% 24.9% (15.1%) 27.1% 5.0% 5.7% 7.6% (1.4%) (6.1%) 14.9% (22.7%) (8.9%) (16.4%) 8.0% (9.4%) 1.8% 10.9% 3.5% 11.6% 1.6% 11.3% 7.5% 4.6% N/A
2.3% 3.8%
0.8% 2.6%
5.1% 5.3%
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
16.0x
APPF
R = 0.77
APTI
SHOP
14.0x
BCOV BOX BV COUP CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP
12.0x
Enterprise Value / CY 2017E Revenue
Company
10.0x WDAY
COUP
NOW 8.0x APPF
HUBS ULTI
EVGB
CRM
6.0x
CSOD
4.0x APTI
BOXRNG
RP
NTNX ECOM
JIVE
ULTI
ZEN
XTLY
LPSN 2.0x
SHOP
MB
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 0.77.
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
5/10/2017
$680
NA
NA
NA
NA
5/8/2017
$6,571
3.4x
11.9x
3.5x
14.4x
5/3/2017
$1,350
NA
NA
NA
NA
5/2/2017
$57
NA
NA
NA
NA
5/1/2017
$610
NA
NA
NA
NA
5/1/2017
$341
1.7x
NM
1.7x
15.0x
(1) (2)
(1) (3)
Wave Systems (1) (3)
5/1/2017
$545
1.7x
NM
1.8x
18.8x
4/28/2017
$215
NA
NA
NA
NA
4/28/2017
$270
NA
NA
1.1x
10.3x
4/26/2017
$200
NA
NA
NA
NA
4/25/2017
$230
2.3x
NA
NA
NA
4/25/2017
$75
1.9x
NA
NA
NA
4/18/2017
$600
13.3x
NA
NA
NA
(4)
(2)
(2) (5)
Notes: Multiples 50x considered NM. Disclosed transactions with Enterprise Value
