Sep 26, 2016 - (9) Social Media includes: FB, LINE (3938-JP), P, TWTR, YELP. ...... CRM. EVGB. APTI. NTNX. 2.0x. 4.0x. 6
Weekly Internet / Digital Media / SaaS Sector Summary Week of February 6th, 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) 21% 18%
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%
180%
16.1% 61.2% 58.3% 55.8%
160%
12.5% 110%
9.1% 7.3% 5.1% 5.0% 3.4% 3.1% 2.8% 0.0%
140%
32.5% 31.5% 24.5% 22.4% 20.8% 15.9% 11.1%
120%
100%
90%
100%
80% 2/8/2016
3/31/2016
5/22/2016
7/13/2016
Search / Online Advertising
(1)
9/3/2016
10/25/2016
12/16/2016
Internet Commerce
(2)
(5)
Diversified Marketing
3
80% 11/8/2016
2/6/2017
Media Conglomerates
11/23/2016
Internet Content
(6)
Gaming
(7)
(3)
12/8/2016
12/23/2016
Publishers
SaaS
(8)
1/7/2017
(4)
1/22/2017
2/6/2017
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
5.8x
5.4x
Mean: 3.7x Median: 3.6x
5.2x
5.0x 4.0x 3.0x 2.0x
1.0x 0.0x
4
3.7x
40.0x
38.2x
Mean: 16.4x Median: 13.0x
30.0x
3.6x 2.8x
21.9x
2.7x 2.1x
20.0x
17.5x
13.4x
13.0x
12.7x
11.5x
1.7x 10.0x
10.2x
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.
8.8x
PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/6/17
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.
$821.62 63.64 23.01 44.92 28.80 7.99 0.48 3.34 2.42 3.66 2.68 2.29 2.25 4.33
$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 0.55 4.32 2.76 4.36 4.68 4.10 3.44 11.94
$567,975 491,780 7,416 2,864 1,111 392 237 153 126 126 116 104 87 29
($82,398) (33,399) (690) (398) (72) (193) (41) (39) (48) (62) (105) 9 (33) 2
$485,577 458,381 6,739 2,476 1,039 199 196 114 78 63 11 114 54 31 Mean Median
5.4x 5.3 5.9 5.2 6.0 0.7 1.3 0.4 0.5 0.4 0.1 0.2 0.5 0.2
5.5x 5.0 5.5 3.5 5.4 0.8 1.1 0.5 0.5 0.4 0.1 0.3 0.5 0.3
4.6x 4.6 4.5 2.7 4.2 0.8 0.8 0.5 0.4 0.4 0.1 0.2 0.6 0.3
16.3x 16.5 20.0 16.3 19.4 4.2 NM NM NM NM NM NM NM NM
13.4x 13.1 15.8 11.6 18.6 3.1 NM 24.8 NM 7.8 NM 8.9 NM NM
11.3x 12.3 12.6 9.0 14.8 3.2 17.1 11.7 11.0 6.6 NM 8.8 20.1 34.5
29.5x 29.9 56.1 36.3 NM 18.0 NM NM NM NM NM NM NM NM
23.6x 22.3 31.2 23.9 38.2 8.5 NM 85.0 NM NM NM NM NM NM
19.9x 20.9 23.9 19.5 33.9 12.1 39.0 NM NM 17.5 NM NM NM NM
17.5% 10.3% 23.2% 28.3% 25.9% NM NM NM NA NA 15.0% 3.0% NA 20.0%
1.1 2.0 1.0 0.7 1.3 NM NM NM NA NA NM NM NA NM
17.7% 8.6% 23.8% 29.1% 28.8% (0.8%) 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
15.5x 16.4
13.0x 13.1
13.3x 11.7
33.9x 29.9
33.2x 23.9
23.3x 20.4
17.9% 18.8%
1.2 1.1
10.7% 6.9%
11.1% 1.3%
8.1x 2.0 2.9 2.1 60.2 2.7 1.4 3.3 2.7 2.4 2.5 1.4 2.3 1.1 0.7
7.6x 2.0 2.8 2.1 44.1 2.7 1.3 2.4 2.5 2.2 2.4 1.5 2.4 1.1 0.8
6.2x 2.0 2.7 1.8 29.3 2.5 1.3 2.1 2.3 2.1 2.2 1.5 2.1 1.0 0.8
NM 15.8 8.1 18.2 NM 10.6 9.5 32.7 12.0 12.5 18.1 6.4 17.4 39.3 14.6
45.8x 12.5 7.6 9.3 NM 8.2 7.0 10.1 9.8 8.8 11.7 5.7 14.2 14.7 22.5
27.1x 10.7 8.4 8.1 NM 7.6 7.0 8.0 9.0 8.2 10.5 6.2 9.4 10.2 41.0
NM NM 11.0 NM NM 28.5 95.6 NM NM 12.4 73.9 NM 66.6 NM NM
NM 29.7 10.3 22.3 NM 26.8 67.6 14.4 17.0 7.1 47.5 15.0 33.5 53.7 33.2
63.3x 23.4 12.3 20.0 NM 25.2 73.6 12.4 15.5 6.7 40.1 16.7 19.7 29.1 NM
58.0% 18.6% NA NM 20.0% 12.5% 29.0% 30.0% 17.5% 13.4% 17.5% NA 27.7% 17.5% 12.5%
1.1 1.3 NA NM NM 2.0 2.5 0.4 0.9 0.5 2.3 NA 0.7 1.7 NM
23.1% 0.3% 3.7% 13.4% 50.6% 5.5% (0.1%) 17.0% 12.9% 3.6% 10.3% (3.0%) 11.2% 13.0% (4.2%)
27.1% (4.4%) 13.6% 14.8% NA 12.3% 2.4% 8.4% 29.2% 39.4% 5.8% (13.9%) (11.2%) 12.7% (16.1%)
6.4x 2.4
5.2x 2.4
4.0x 2.1
16.5x 14.6
13.4x 10.0
12.2x 8.7
48.0x 47.5
29.1x 26.8
27.5x 20.0
22.8% 18.0%
1.3 1.2
10.5% 10.3%
8.6% 10.4%
Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. Renren Inc. WebMD Health Corp. Shutterfly, Inc. comScore, Inc. Bankrate, Inc. Web.com Group, Inc. XO Group Inc. DHI Group, Inc. TechTarget, Inc. Care.com, Inc. eHealth, Inc.
$36.97 75.26 23.21 36.19 8.16 51.00 43.04 23.22 10.65 19.15 18.54 5.40 8.79 8.46 11.29
$16.46 38.82 17.91 23.88 7.55 45.46 36.25 21.74 6.59 12.90 13.64 4.95 5.98 4.90 6.38
$39.99 75.00 25.38 37.40 17.80 67.55 54.60 43.53 12.93 21.20 20.99 8.43 9.24 12.00 15.14
$6,618 5,848 4,977 3,166 2,776 1,872 1,448 1,328 960 902 472 269 245 244 207
($215) 184 4,131 475 24 6 100 (114) 159 664 (101) 61 8 (71) (67)
$6,404 6,206 9,448 3,839 2,800 1,877 1,548 1,214 1,119 1,566 370 330 252 173 140 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 2/6/17
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.
$807.64 100.90 1,587.18 140.97 32.03 122.05 18.80 56.52 40.55 11.55 84.35 123.23 53.51 12.34 10.65 9.55 40.71 16.10 6.33 9.05 3.44
$474.00 59.25 954.02 79.95 21.52 88.40 17.88 32.69 18.68 10.88 75.48 68.82 25.44 6.18 5.04 6.74 22.33 10.25 6.21 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 20.50 10.76 13.27 3.99
$385,244 252,250 78,319 60,675 35,807 18,311 8,780 6,476 3,471 2,761 2,623 2,101 1,880 1,426 937 623 478 409 374 125 57
($18,287) (7,448) 2,967 1,631 1,811 1,319 6,104 576 (297) (5) 839 81 (290) (258) (139) (3) (40) (124) 20 (25) (35)
$366,957 245,542 81,286 62,305 37,618 21,276 15,006 7,052 3,174 2,759 3,504 2,182 1,589 1,168 799 620 437 283 395 100 22 Mean Median
2.7x 11.8 7.8 7.1 4.2 2.5 1.5 5.3 7.0 3.6 1.8 6.6 3.3 3.4 3.0 0.5 0.9 0.2 1.2 0.8 0.2
2.7x 17.0 7.6 7.1 4.2 2.4 1.5 5.2 6.4 3.5 1.8 6.1 3.2 3.2 3.0 0.5 0.9 0.2 1.2 0.8 0.2
2.2x 13.2 6.6 5.5 4.0 2.1 1.4 4.8 5.1 2.5 1.5 5.3 2.7 2.6 2.6 0.5 0.9 0.1 1.2 0.8 0.2
29.8x 32.1 20.3 NM 12.5 20.9 8.5 15.1 30.3 NM 23.9 18.1 24.4 31.6 NM 7.9 26.7 14.4 20.5 8.2 NM
24.2x 33.1 19.2 NM 10.9 13.1 7.8 14.2 21.9 NM 13.1 13.3 16.2 20.7 28.8 7.3 17.8 8.0 15.6 8.0 38.4
18.7x 26.6 16.4 57.8 10.7 10.9 7.5 13.1 17.2 40.2 11.2 11.2 13.4 15.6 18.3 6.3 17.0 11.0 11.0 8.9 18.4
NM 49.0 40.5 NM 5.0 97.1 7.2 17.6 73.7 NA NM 48.0 64.5 NM NM 23.6 50.2 32.9 NM 34.8 NM
NM 41.4 23.3 NM 17.0 25.9 11.1 23.8 44.6 NM 28.7 14.8 34.1 NM NM 22.5 46.3 NM NM 20.4 NM
NM 33.2 20.5 NM 15.9 20.4 10.1 22.0 35.3 84.1 23.0 14.9 31.6 48.4 50.7 19.4 43.8 NM NM 22.0 NM
45.1% 24.5% 17.9% 44.2% 9.1% 21.6% 12.8% 14.8% 23.0% NA 21.1% 20.3% 16.5% 10.0% 43.6% 19.0% 5.0% NA 8.0% 5.0% NA
NM 1.4 1.1 NM 1.8 0.9 0.8 1.5 1.5 NA 1.1 0.7 1.9 4.8 1.2 1.0 8.8 NA NM 4.4 NA
20.5% 28.7% 15.5% 27.4% 4.7% 14.5% 2.7% 6.9% 25.8% 38.5% 17.4% 16.0% 15.8% 22.7% 14.7% 2.8% 2.1% 8.2% 0.1% (0.5%) 6.3%
22.4% 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% 1.1% (4.4%) 9.6% (8.3%) (9.7%) (1.6%)
3.6x 3.0
3.7x 3.0
3.1x 2.5
20.3x 20.5
17.5x 15.6
17.2x 13.4
41.9x 40.5
27.2x 23.8
31.0x 22.5
20.1% 18.5%
2.2 1.4
13.8% 14.7%
21.0% 17.7%
2.9x 3.5 2.7 0.8 2.5 3.8 2.3 4.0 2.5
3.0x 3.5 2.7 0.8 2.5 3.8 2.3 3.9 2.5
2.8x 3.3 2.5 0.7 2.5 3.6 2.2 3.8 2.6
8.9x 11.4 10.8 13.2 10.9 10.1 9.6 9.0 12.9
9.0x 11.2 10.7 10.3 10.8 10.0 10.3 9.6 9.5
8.5x 10.7 10.2 7.2 10.6 9.7 8.8 9.3 11.4
20.9x 19.1 21.1 NM 17.9 15.8 11.6 12.5 NM
21.5x 19.7 16.2 NM 15.8 13.3 12.6 14.3 37.0
19.8x 17.8 15.8 16.0 14.7 12.1 10.4 14.1 23.1
10.7% 9.7% 11.8% 18.0% 17.6% 13.1% 0.5% 9.7% NA
1.9 1.8 1.3 0.9 0.8 0.9 21.6 1.5 NA
4.7% 5.0% 5.1% 11.8% 0.6% 5.0% 3.5% 4.2% (2.5%)
9.2% (2.7%) 4.2% (4.4%) 4.3% (0.1%) (14.8%) 3.5% 6.0%
2.8x 2.7
2.8x 2.7
2.7x 2.6
10.7x 10.8
10.2x 10.3
9.6x 9.7
17.0x 17.9
18.8x 16.0
16.0x 15.8
11.4% 11.2%
3.8 1.4
4.2% 4.7%
0.6% 3.5%
3.4x 0.8 1.5 3.3 0.6 1.0 1.3 0.9 2.3 0.5
3.7x 0.8 1.6 3.4 0.7 NA 1.3 0.9 2.1 0.5
3.6x 0.8 1.5 2.9 0.7 NA 1.3 0.9 2.2 0.4
16.2x 9.5 10.7 12.3 8.7 7.0 10.5 8.8 23.1 4.2
13.1x 6.9 9.4 11.9 8.0 NA 8.8 6.8 10.2 4.4
12.4x 6.8 9.1 9.6 7.6 NA 8.9 6.7 15.3 4.1
26.3x NM NM 29.0 26.8 16.4 76.6 NM NM 29.4
21.5x 38.3 11.5 19.0 13.1 NA 28.1 15.6 26.5 9.2
19.0x 28.0 13.1 14.4 12.0 NA 26.4 14.0 62.7 9.1
8.0% 8.2% NM 11.2% 7.4% NA NA 8.5% NA NM
2.4 3.4 NM 1.3 1.6 NA NA 1.6 NA NM
1.3% (2.2%) 4.3% 16.7% (0.4%) NA 2.5% (1.9%) (2.1%) 5.6%
(0.1%) (2.4%) (21.0%) (8.7%) 3.2% (3.1%) (1.1%) (3.0%) 22.9% 10.1%
1.6x 1.2
1.7x 1.3
1.6x 1.3
11.1x 10.0
8.8x 8.8
9.0x 8.9
34.1x 27.9
20.3x 19.0
22.1x 14.4
8.7% 8.2%
2.1 1.6
2.6% 1.3%
(0.3%) (1.8%)
Media Conglomerates / Selected Entertainment Comcast Corporation The Walt Disney Company Twenty-First Century Fox, Inc. Sony Corporation CBS Corporation Discovery Communications, Inc. Viacom, Inc. Scripps Networks Interactive, Inc. Tribune Media Company
$74.54 109.57 31.06 31.95 64.67 27.97 41.82 75.51 29.28
$54.70 86.25 22.66 19.57 41.36 23.66 30.11 52.00 26.10
$76.87 111.99 31.75 32.13 66.88 29.75 46.69 77.80 40.72
$177,066 173,540 57,627 40,328 27,789 16,659 16,595 9,749 2,559
$55,973 15,560 15,363 6,491 8,778 7,609 11,420 3,253 2,772
$236,716 193,158 74,783 52,251 36,567 24,515 28,279 13,309 5,337 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.
$44.51 12.22 8.02 8.71 25.03 528.05 14.55 18.75 20.56 9.81
$36.28 10.21 6.87 6.68 19.70 440.55 10.60 12.23 12.16 7.30
$45.86 14.68 12.32 9.34 29.12 547.80 14.45 20.40 20.59 17.72
$32,375 7,108 6,542 3,428 3,208 2,964 2,344 1,857 1,704 1,144
$8,520 (1,122) 2,162 49 1,931 (504) (311) 937 308 268
$41,377 6,202 8,708 3,517 5,281 2,470 2,033 2,794 2,013 1,412 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 2/6/17
LTM Price Range Low High
Equity Value
Net Debt
$14.99 13.25 40.28 91.72 176.63 19.79 6.95 18.76 2.75 0.85
$29,202 18,301 15,008 14,435 13,082 9,409 3,727 2,186 358 101
$5,649 3,161 7,523 2,732 19,090 846 99 99 930 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.
$22.80 19.40 41.99 120.53 226.49 23.70 8.88 28.09 6.70 1.64
$23.71 20.15 55.94 136.97 241.69 24.82 9.50 30.40 23.90 3.73
$35,460 21,476 22,720 17,208 32,171 10,536 3,840 2,285 1,415 155 Mean Median
2.1x 4.7 3.6 5.7 4.5 1.4 1.5 2.6 1.0 0.3
2.1x 4.6 3.6 5.5 4.4 1.3 1.6 2.6 1.0 0.3
1.8x 4.5 3.6 5.1 4.2 1.3 1.5 2.5 1.0 0.3
13.9x 15.3 14.6 16.6 20.5 9.9 9.7 25.1 10.2 12.1
12.2x 13.5 11.8 15.4 15.4 9.6 9.7 14.8 8.5 4.3
10.9x 13.0 11.5 14.1 15.3 9.0 9.0 12.8 6.9 3.4
26.6x 21.9 25.8 30.5 30.9 17.7 19.0 NM NM NM
16.6x 21.5 15.3 22.0 13.4 18.0 18.2 42.8 NM 11.7
14.4x 20.6 15.5 20.3 12.3 16.4 16.6 37.3 10.8 7.8
9.3% 10.0% 8.8% 11.0% 14.3% 11.1% 7.1% 18.0% NA NA
1.5 2.1 1.8 1.8 0.9 1.5 2.3 2.1 NA NA
11.9% 2.5% 1.0% 7.8% 6.7% 3.3% 6.2% 4.9% 5.8% 0.5%
(5.4%) 2.6% 2.5% 20.5% 4.5% 3.0% 4.8% 1.0% 6.3% (10.4%)
2.7x 2.3
2.7x 2.3
2.6x 2.2
14.8x 14.3
11.5x 12.0
10.6x 11.2
24.6x 25.8
19.9x 18.0
17.2x 15.9
11.2% 10.5%
1.7 1.8
5.1% 5.3%
2.9% 2.8%
12.1x 5.9 5.4 4.6 5.3 1.2 6.2 2.2 1.8 1.9 1.4 1.3 0.7 0.9
11.5x 5.5 5.0 4.5 5.3 1.2 6.7 2.4 2.0 1.9 1.4 1.3 0.7 0.9
8.5x 4.3 4.8 4.1 4.4 0.9 4.8 1.5 1.9 1.7 1.6 1.3 0.6 0.9
28.5x 17.4 17.0 17.0 17.2 9.9 17.2 15.6 7.1 NM 3.2 7.1 2.5 NM
27.4x 16.0 14.0 13.9 16.9 8.2 18.6 4.7 7.9 24.2 3.2 7.1 2.6 NM
20.9x 13.0 13.7 12.5 13.0 6.7 12.0 4.2 5.8 13.5 3.9 9.9 2.3 NM
44.8x 22.6 34.9 19.8 NA 20.6 26.6 33.0 20.8 NM 8.2 10.0 8.8 NM
39.4x 19.4 20.0 23.9 32.9 19.2 27.4 30.1 20.6 NM 7.8 13.5 8.8 NM
29.8x 16.5 19.8 20.1 25.2 17.6 18.5 20.6 18.1 36.2 8.5 19.1 7.5 NM
27.8% 19.2% 20.4% 12.6% 29.8% 22.5% 38.6% 35.1% 22.1% 21.0% NA NA NM 15.0%
1.1 0.9 1.0 1.6 0.8 0.8 0.5 0.6 0.8 1.7 NA NA NM NM
35.8% 27.1% 3.1% 8.4% 22.2% 25.6% 37.5% 54.7% 6.0% 12.2% (13.6%) (3.9%) 16.1% 6.5%
44.8% 31.6% 58.4% 7.4% 19.2% 31.0% 19.7% 36.7% 21.7% (6.8%) (26.6%) (12.8%) (28.1%) (18.8%)
3.6x 2.1
3.6x 2.2
3.0x 1.8
13.3x 16.3
12.7x 13.9
10.1x 12.0
22.7x 20.8
21.9x 20.3
19.8x 19.1
24.0% 22.1%
1.0 0.9
17.0% 14.1%
12.7% 19.4%
12.7x 5.3 4.8 4.2 2.4
12.8x 5.3 4.7 4.0 2.3
9.3x 4.8 3.8 3.2 1.9
23.7x NM 32.6 NM NM
19.8x 18.8 23.7 25.1 NM
14.9x 16.2 17.2 17.4 NM
37.8x NM 84.7 NM NM
31.8x 34.4 NM 58.0 NM
24.4x 30.0 41.9 39.0 NM
27.1% 23.5% 50.9% 32.6% 47.0%
0.9 1.3 0.8 1.2 NM
38.3% 9.3% 21.2% 25.7% 22.8%
50.8% 8.2% 19.3% 29.7% 12.9%
5.9x 4.8
5.8x 4.7
4.6x 3.8
28.1x 28.1
21.9x 21.8
16.4x 16.7
61.3x 61.3
41.4x 34.4
33.8x 34.5
36.2% 32.6%
1.0 1.0
23.5% 22.8%
24.2% 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.
$26.73 258.67 40.19 81.52 685.87 21.49 278.22 33.23 22.29 2.54 2.26 5.91 23.72 2.48
$17.03 129.60 26.49 53.01 478.96 16.10 187.53 19.97 13.64 1.78 2.01 4.11 15.21 1.73
$28.46 272.58 45.55 86.07 795.04 23.74 281.30 41.73 35.21 3.08 3.08 6.05 30.28 4.00
$250,808 34,009 29,870 24,599 19,758 5,949 5,910 3,716 3,234 2,266 1,608 1,386 1,205 331
($443) (4,177) 2,333 (3,229) (2,342) (281) (676) (42) (782) (871) (292) (704) (848) (148)
$251,888 29,869 32,203 21,370 17,862 5,668 5,242 3,674 2,524 1,395 1,331 682 386 183 Mean Median
Social Media & New Platform Facebook, Inc. Twitter, Inc. LINE Corporation Yelp Inc. Pandora Media, Inc.
$132.06 17.93 32.22 41.85 13.05
$96.82 39.40 31.42 14.53 7.10
$135.60 26.20 46.56 43.41 15.25
$380,619 12,719 7,018 3,284 3,045
($29,449) 771 (1,213) (432) 80
$351,170 13,490 5,806 2,851 3,125 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 2/6/17
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 13.54 11.76 3.74 2.82 4.68 10.28 2.84 4.70 1.88
$55,562 17,159 15,024 5,733 4,740 4,413 2,567 2,363 2,348 2,215 1,930 1,663 1,301 993 804 603 504 397 393 376 351 309 235 87
$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
$79.75 85.37 90.50 197.67 52.68 31.02 31.90 42.06 24.63 17.50 54.20 22.60 26.03 24.53 23.85 15.74 18.56 6.85 4.75 12.00 13.60 3.95 6.95 2.25
$84.48 93.35 92.98 224.07 52.65 46.78 31.70 47.75 31.88 17.73 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
$56,877 15,773 14,632 5,632 4,340 4,066 2,621 2,344 2,137 2,113 1,817 1,527 1,080 923 786 481 442 346 344 349 287 209 200 54 Mean Median
8
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM.
7.2x 10.8 10.5 7.6 13.2 7.8 4.8 5.7 7.5 5.7 7.3 4.3 8.8 7.1 8.0 3.2 6.2 1.5 1.7 3.8 2.6 1.0 1.4 0.5
6.8x 10.1 10.6 7.2 11.4 7.1 4.6 5.5 6.9 5.3 6.8 4.0 8.2 6.6 7.5 3.0 5.8 1.6 1.7 3.7 2.5 1.0 1.3 0.5
5.6x 7.9 8.0 5.8 7.7 4.7 4.0 4.8 5.2 4.2 5.2 3.3 6.6 5.1 5.8 2.5 4.6 1.5 1.6 3.1 2.2 1.0 1.2 0.6
NM NM NM 87.2 NM NM 34.9 NM NM NM NM NM NM NM NM NM NM 20.6 NM NM NM NM NM NM
33.2x NM 56.1 30.2 NM NM 20.9 69.5 NM NM NM 71.0 NM NM NM NM NM 18.3 26.4 NM 55.6 12.4 27.1 NM
26.9x 71.8 36.6 23.8 NM NM 17.3 47.9 NM NM NM 48.9 NM NM NM NM NM 15.2 19.5 NM 43.7 10.4 18.9 20.1
NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM NM
81.4x NM NM 61.0 NM NM 43.0 NM NM NM NM NM NM NM NM NM NM NM NA NM NM 60.8 NM NM
62.0x NM 84.0 49.4 NM NM 35.4 NM NM NM NM NM NM NM NM NM NM 79.9 NM NM NM 35.9 58.7 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 1.9 NM NM 1.8 NM NM NM NM NM NA NM NM NA NM 4.0 NA NM NA NA 3.9 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%)
5.8x 5.9
5.4x 5.7
4.3x 4.6
47.6x 34.9
38.2x 30.2
30.8x 23.8
NM NM
61.5x 60.9
57.9x 58.7
24.9% 25.0%
2.6 2.2
21.9% 24.1%
29.9% 26.5%
PUBLIC SAAS COMPANIES Valuation Correlation to Growth and Cash Flow Selected Public Saas Companies Company
14.0x
Identifier APPF
R = 0.85
APTI BCOV
12.0x BOX
COUP CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP
Enterprise Value / CY 2017E Revenue
BV
10.0x
NOW
WDAY 8.0x SHOP
COUP APPF
6.0x
ULTI HUBS
CSOD
EVGB
4.0x
APTI
ZEN
MB
CRM NTNX
RP
BOX RNG
XTLY ECOM
2.0x
SHOP ULTI
MRIN
WDAY XTLY
(10%)
0%
JIVE
LPSN
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 0.76.
60%
70%
PUBLIC SAAS COMPANIES Valuation Correlation to S&M Effectiveness Selected Public Saas Companies Company
Identifier
R = 0.82
14.0x
APPF APTI BCOV
12.0x
BOX
SHOP
BV
CRM CSOD ECOM EVBG HUBS JIVE LPSN MB MRIN NOW NTNX RNG RP
NOW
Enterprise Value / CY 2016E Revenue
COUP
WDAY
10.0x COUP 8.0x NTNX ULTI
CRM
6.0x
CSOD
APPF
ZEN HUBS MB
EVBG
BOX
RP
RNG XTLY
4.0x APTI
ECOM
LPSN 2.0x
SHOP
BV JIVE
MRIN
BCOV
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
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
1/9/2017
$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
(1)
(2)
(1)
12/16/2016
Dalian Zeus Entertainment
Pocket Technology
(1)
11
Notes: Multiples 50x considered NM. Disclosed transactions with Enterprise Value
