Sep 26, 2016 - Criteria based on internet/digital media/SaaS Series A and subsequent rounds of ...... Snap Inc. offers S
Weekly Internet / Digital Media / SaaS Sector Summary Week of February 13th, 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) 23% 20%
DM Composite
2
SPX
Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. 1) Criteria based on internet/digital media/SaaS Series A and subsequent rounds of global financings greater than or equal to $10MM. Excludes the $7.3Bn raise by Didi Chuxing on 6/15/2016. 2) Financings include Venture and Private Equity Growth/Expansion activity for internet/digital media/SaaS sectors. 3) Criteria based on global target internet/digital media/SaaS M&A deals with transaction enterprise values greater than $50MM. Excludes AT&T’s acquisition of Time Warner announced 10/22/2016. 4) Search/online advertising composite, internet commerce composite, internet content composite, diversified marketing composite, SaaS composite and social media composite used as proxy for internet/digital media/SaaS landscape. Details on companies included can be found on the public valuation company slides.
INDUSTRY STOCK MARKET VALUATION Internet / Digital Media / SaaS
Last 12 Months
Last 3 Months
120%
160%
53.9% 49.2% 48.7%
13.8% 12.7% 11.1% 11.0% 9.3% 9.1% 8.3% 7.3% 6.8% 6.5%
140%
32.1% 29.9% 25.8% 21.5% 19.0% 15.2% 10.7%
120%
110%
100%
100%
80% 2/15/2016
4/7/2016
5/29/2016
7/20/2016
Search / Online Advertising
(1)
9/10/2016
11/1/2016
12/23/2016
Internet Commerce
(2)
(5)
Diversified Marketing
3
90% 11/15/2016
2/13/2017
Media Conglomerates
11/30/2016
Internet Content
(6)
Gaming
(7)
(3)
12/15/2016
12/30/2016
Publishers
SaaS
(8)
1/14/2017
(4)
1/29/2017
2/13/2017
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 6.0x
5.6x
EV / 2016E EBITDA 40.0x
5.5x
5.0x 4.0x 3.0x
3.8x
Mean: 3.4x Median: 2.8x
3.7x 2.8x
2.8x
Mean: 16.2x Median: 13.1x
30.0x
20.2x
2.8x
20.0x
2.1x 2.0x
37.4x
17.9x 13.6x
1.7x 10.0x
13.1x
13.1x
11.7x 10.0x
1.0x 0.0x
4
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.
8.9x
PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 2/13/17
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. Marchex, Inc. YuMe, Inc. Tremor Video, Inc. Rocket Fuel Inc. Marin Software Incorporated MaxPoint Interactive, Inc.
$838.96 64.72 22.97 45.86 30.06 8.18 0.48 3.21 3.06 3.60 2.24 2.34 2.30 4.50
$672.66 48.04 12.51 32.83 22.00 6.12 0.19 2.61 2.46 2.90 1.29 1.70 1.88 3.85
$867.00 65.91 23.87 47.81 33.40 20.37 0.56 4.32 4.68 4.36 2.76 4.10 3.44 11.94
$580,073 500,126 7,404 2,924 1,160 401 235 146 133 123 116 107 89 30
($82,398) (33,399) (690) (398) (72) (193) (41) (37) (105) (62) (42) 9 (33) 2
$497,675 466,727 6,726 2,536 1,088 208 194 108 27 61 74 116 55 32 Mean Median
5.5x 5.4 5.9 5.4 6.3 0.7 1.2 0.4 0.2 0.4 0.4 0.3 0.5 0.2
5.6x 5.1 5.5 3.5 5.6 0.8 1.1 0.5 0.2 0.4 0.5 0.3 0.6 0.3
4.8x 4.7 4.4 2.7 4.4 0.8 0.8 0.5 0.2 0.4 0.4 0.2 0.6 0.3
16.7x 16.8 20.0 16.7 20.3 4.4 NM NM NM NM NM NM NM NM
13.8x 13.3 15.8 11.9 19.5 3.3 NM 23.5 NM 7.5 NM 9.1 NM NM
11.6x 12.5 12.4 9.2 15.5 3.3 16.9 11.1 NM 6.4 16.5 9.0 20.8 35.8
30.1x 30.5 56.0 37.0 NM 18.4 NM NM NM NM NM NM NM NM
24.1x 22.7 31.2 24.4 39.9 8.7 NM 81.7 NM NM NM NM NM NM
20.3x 21.3 23.7 19.9 35.4 12.4 38.6 NM NM 17.2 NM NM NM NM
17.5% 10.3% 23.2% 28.3% 39.1% NM NM NM 15.0% NA NA 3.0% NA 20.0%
1.2 2.1 1.0 0.7 0.9 NM NM NM NM NA NA NM NA NM
17.7% 8.6% 25.5% 29.1% 28.8% (0.6%) 34.4% 2.1% (14.0%) 2.0% 15.0% 2.9% (3.5%) 5.1%
22.2% 1.2% 30.2% 27.4% 116.6% 2.4% (11.7%) 1.0% (16.6%) (10.1%) 42.0% (1.9%) (8.8%) 4.0%
2.3x 0.6
2.1x 0.7
1.8x 0.7
15.8x 16.7
13.1x 13.3
13.9x 12.4
34.4x 30.5
33.2x 24.4
23.6x 20.8
19.5% 18.8%
1.2 1.0
11.0% 6.9%
14.2% 1.8%
7.2x 2.0 3.0 2.1 2.7 1.4 3.2 2.8 2.3 12.3 2.5 1.4 2.4 1.3 0.7
7.2x 2.0 2.8 2.1 2.7 1.4 2.4 2.6 2.2 9.0 2.4 1.4 2.5 1.3 0.7
5.8x 2.0 2.7 1.8 2.5 1.4 2.0 2.3 2.2 6.0 2.2 1.2 2.3 1.4 0.8
NM 16.0 27.1 18.1 10.7 9.7 32.0 12.5 12.0 NM 17.9 50.7 18.1 6.3 14.3
43.5x 12.7 7.5 9.3 8.2 7.2 9.9 10.2 9.2 NM 11.6 19.0 14.8 5.1 22.2
29.5x 10.9 8.2 8.0 7.6 7.2 7.8 9.3 8.5 NM 10.4 13.2 10.5 6.0 40.4
NM NM 54.1 NM 28.7 98.1 NM NM NM NM 73.2 NM 69.3 NM NM
NM 30.2 10.6 22.2 26.9 69.4 14.1 17.7 7.7 NM 47.1 64.7 34.9 13.2 32.9
79.4x 23.4 12.7 19.9 25.3 74.8 12.2 16.1 7.2 NM 39.8 35.1 22.4 17.9 NM
55.0% 17.9% NA NM 12.5% 29.0% 30.0% 16.0% 7.5% 20.0% 17.5% 17.5% 27.7% NM 12.5%
1.4 1.3 NA NM 2.0 2.6 0.4 1.0 1.0 NM 2.3 2.0 0.8 NM NM
23.6% 0.2% 3.7% 13.4% 5.5% (0.1%) 17.0% 13.2% 3.7% 50.6% 10.3% 13.0% 8.7% (4.1%) (4.2%)
34.4% (4.4%) 33.4% 14.8% 12.3% 2.4% 8.4% 29.2% 35.3% NA 5.8% 12.7% (11.2%) (15.6%) (16.1%)
3.2x 2.4
2.8x 2.4
2.4x 2.2
18.9x 16.0
13.6x 10.1
12.7x 8.9
64.7x 69.3
30.1x 26.9
29.7x 22.4
21.9% 17.7%
1.5 1.4
10.3% 8.7%
10.1% 10.4%
Internet Content Zillow Group, Inc. IAC/InterActiveCorp TEGNA Inc. GoDaddy Inc. WebMD Health Corp. Shutterfly, Inc. comScore, Inc. Bankrate, Inc. Web.com Group, Inc. Renren Inc. XO Group Inc. Care.com, Inc. TechTarget, Inc. DHI Group, Inc. eHealth, Inc.
$34.79 76.48 23.82 36.08 51.29 44.16 22.80 11.10 20.80 8.04 18.37 10.20 9.15 4.75 11.17
$18.42 41.74 17.91 25.21 48.10 38.39 20.81 6.59 12.90 7.55 13.64 5.17 6.20 4.60 6.38
$39.99 77.46 25.38 37.40 67.55 54.60 43.53 12.93 22.50 17.80 20.99 12.00 9.24 8.43 15.14
$6,227 5,942 5,107 3,156 1,882 1,485 1,304 1,000 980 547 467 294 255 236 205
($139) 184 4,131 475 6 100 (114) 159 644 24 (101) (71) 8 62 (67)
$6,088 6,301 9,239 3,829 1,888 1,586 1,190 1,160 1,624 571 366 223 262 297 138 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 2/13/17
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.
$836.53 103.10 1,646.18 143.20 33.79 119.50 19.03 58.70 36.70 13.03 83.94 126.70 53.44 12.76 13.05 10.05 40.72 18.00 6.05 9.30 3.36
$511.66 64.04 1,072.27 84.50 22.23 96.58 17.88 33.65 21.21 10.88 79.51 68.82 27.67 6.75 7.04 6.74 24.04 13.05 5.99 7.33 2.80
$847.21 109.87 1,652.00 145.95 34.09 133.55 27.25 58.84 44.58 13.87 104.18 128.99 65.16 16.05 14.36 11.40 41.39 20.50 10.76 13.27 3.99
$399,168 257,750 81,231 61,635 36,731 17,902 8,887 6,726 3,141 3,115 2,610 2,161 1,877 1,475 1,149 659 478 458 358 129 56
($5,568) (7,448) 2,967 1,631 1,811 1,290 6,104 576 (324) (5) 839 81 (290) (258) (152) (3) (40) (124) 20 (27) (35)
$393,600 251,042 84,198 63,265 38,542 20,753 15,113 7,302 2,818 3,112 3,491 2,241 1,587 1,216 996 656 438 332 378 102 21 Mean Median
2.9x 12.1 8.1 7.2 4.3 2.4 1.5 5.5 5.7 4.0 1.8 6.8 3.3 3.5 3.6 0.6 0.9 0.2 1.1 0.8 0.2
2.9x 17.4 7.9 7.2 4.3 2.4 1.5 5.4 5.7 4.0 1.8 6.3 3.2 3.3 3.7 0.5 0.9 0.2 1.2 0.8 0.2
2.4x 13.5 6.8 5.6 4.1 2.1 1.4 5.0 4.4 2.9 1.5 5.4 2.7 2.7 3.2 0.5 0.9 0.2 1.2 0.8 0.2
33.7x 32.9 21.0 NM 12.8 19.3 8.5 15.6 23.7 NM 23.8 18.6 24.4 32.9 NM 8.4 26.7 16.8 19.6 7.5 NM
25.9x 33.8 19.9 NM 11.2 12.8 7.9 14.7 19.5 NM 13.1 13.7 16.2 21.6 35.9 7.7 17.8 9.4 15.0 8.2 36.1
20.1x 27.2 17.1 58.7 11.0 11.2 7.5 13.6 15.6 45.3 11.2 11.5 13.4 16.2 22.0 6.6 17.0 12.9 10.5 13.6 17.3
NM 50.0 42.0 NM 5.3 65.7 7.3 18.3 63.3 NA NM 49.3 64.4 NM NM 24.9 50.2 36.7 NM 35.8 NM
NM 42.3 24.2 NM 18.0 25.3 11.3 24.8 40.3 NM 28.6 15.2 34.1 NM NM 23.7 46.3 NM NM 21.0 NM
NM 33.9 21.3 NM 16.8 21.9 10.3 22.8 33.4 94.8 22.9 15.3 31.5 50.1 52.2 20.4 43.8 NM NM 22.8 NM
43.1% 24.5% 17.9% 44.2% 9.1% 19.9% 12.8% 14.8% 23.1% NA 21.1% 20.3% 16.5% 10.0% 45.8% 19.0% 5.0% NA 8.0% 5.0% NA
NM 1.4 1.2 NM 1.8 1.1 0.8 1.5 1.4 NA 1.1 0.8 1.9 5.0 1.1 1.1 8.8 NA NM 4.6 NA
20.6% 28.7% 15.4% 27.4% 4.7% 14.3% 2.7% 6.9% 30.6% 38.5% 17.4% 16.0% 15.8% 22.7% 16.1% 2.7% 2.1% 8.2% 0.1% (2.6%) 6.3%
22.4% 44.1% 18.9% 35.9% 3.1% 23.2% 14.7% 19.8% 37.5% 56.0% 16.2% 79.1% 14.7% 33.3% 8.7% 1.1% (4.4%) 9.6% (8.3%) (8.7%) (1.6%)
3.6x 3.3
3.8x 3.2
3.2x 2.7
20.4x 19.6
17.9x 15.0
18.1x 13.6
39.5x 42.0
27.3x 24.8
32.1x 22.8
20.0% 18.5%
2.2 1.4
14.0% 15.4%
19.8% 16.2%
3.0x 3.5 2.6 0.6 2.6 3.9 2.3 4.0 2.6
3.0x 3.5 2.6 0.6 2.6 3.9 2.3 4.0 2.6
2.9x 3.4 2.5 0.6 2.6 3.7 2.2 3.8 2.7
9.0x 11.6 10.4 8.2 11.0 10.3 10.3 9.1 13.5
9.1x 11.2 10.3 8.0 10.9 10.3 10.7 9.8 9.7
8.6x 10.7 9.9 5.7 10.8 9.9 9.4 9.5 11.9
21.2x 19.8 20.2 NM 18.0 16.4 12.5 12.8 NM
21.9x 19.7 15.5 NM 15.9 13.8 13.0 14.7 40.4
20.2x 18.0 15.3 16.3 14.8 12.4 11.0 14.5 25.3
10.7% 9.1% 10.8% 18.0% 17.6% 13.1% 2.1% 9.7% NA
1.9 2.0 1.4 0.9 0.8 0.9 5.3 1.5 NA
4.7% 3.8% 4.8% 8.1% 0.3% 4.9% 4.3% 4.2% (2.5%)
9.2% (3.0%) 4.2% (4.4%) 4.3% (0.1%) 5.4% 3.5% 6.0%
2.8x 2.6
2.8x 2.6
2.7x 2.7
10.4x 10.3
10.0x 10.3
9.6x 9.9
17.3x 18.0
19.4x 15.7
16.4x 15.3
11.4% 10.7%
1.9 1.5
3.6% 4.3%
2.8% 4.2%
3.4x 0.8 1.5 3.3 0.6 1.0 1.5 0.9 2.3 0.4
3.4x 0.8 1.6 3.4 0.7 NA 1.5 0.9 2.2 0.4
3.4x 0.8 1.5 2.9 0.7 NA 1.5 0.9 2.2 0.4
17.1x 9.6 10.8 12.4 8.9 7.0 11.9 9.0 23.4 4.9
12.1x 7.4 9.6 11.9 8.2 NA 9.9 6.9 10.5 3.9
11.4x 7.2 9.3 9.5 8.0 NA 10.2 6.8 15.9 3.8
33.5x NM NM 29.2 27.7 16.5 85.5 NM NM 19.0
21.7x 41.3 11.6 19.1 13.4 NA 31.4 16.0 25.5 7.9
19.2x 28.5 13.2 14.4 12.7 NA 31.0 14.3 64.4 9.2
8.0% 7.0% NM 11.2% 7.9% NA NA 8.5% NA NA
2.4 4.1 NM 1.3 1.6 NA NA 1.7 NA NA
0.5% (2.6%) 4.5% 17.8% (2.1%) NA 1.2% (1.9%) (2.4%) 5.4%
(9.1%) (2.1%) (21.0%) (8.7%) 3.2% (3.1%) (1.1%) (3.0%) 22.9% 17.3%
1.6x 1.2
1.7x 1.5
1.6x 1.5
11.5x 10.2
8.9x 9.6
9.1x 9.3
35.2x 28.4
20.9x 19.1
23.0x 14.4
8.5% 8.0%
2.2 1.7
2.3% 0.5%
(0.5%) (2.5%)
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
$75.71 109.65 29.72 31.53 65.30 29.03 43.45 77.47 31.98
$56.59 90.32 23.33 20.31 43.54 23.66 33.51 52.62 27.72
$76.87 111.99 31.75 31.83 66.88 29.75 46.69 78.52 40.72
$179,872 173,384 55,007 39,801 28,060 17,290 17,245 10,002 2,796
$55,973 16,754 15,363 (4,638) 8,778 7,609 11,857 3,253 2,772
$239,522 194,105 72,163 40,596 36,838 25,146 29,353 13,562 5,573 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.
$44.84 13.08 8.14 8.76 25.87 531.00 16.25 19.20 20.86 8.38
$37.20 10.49 6.90 6.96 19.46 440.55 10.60 12.50 12.16 7.30
$45.98 14.68 12.37 9.38 28.77 547.80 16.35 20.40 20.86 17.72
$32,617 7,608 6,640 3,449 3,315 2,981 2,618 1,902 1,729 977
$4,833 (1,209) 2,162 49 1,931 (504) (311) 937 308 268
$37,933 6,672 8,806 3,538 5,388 2,486 2,307 2,839 2,038 1,245 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 2/13/17
LTM Price Range Low High
Equity Value
Net Debt
$15.05 13.89 40.28 97.61 183.52 20.32 6.89 19.11 2.75 0.85
$30,440 18,237 16,077 15,601 13,158 9,822 3,758 2,227 364 98
$5,649 3,161 7,523 2,543 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.
$23.77 19.60 44.98 130.12 227.81 24.74 8.95 28.61 6.80 1.59
$23.85 20.23 55.94 136.97 241.69 25.33 9.38 30.40 23.90 3.73
$36,698 21,412 23,600 18,203 32,248 10,668 3,871 2,326 1,420 152 Mean Median
2.1x 4.6 3.7 5.8 4.5 1.4 1.6 2.6 1.0 0.3
2.1x 4.6 3.7 5.8 4.4 1.4 1.6 2.7 1.0 0.3
1.9x 4.5 3.6 5.4 4.2 1.3 1.5 2.5 1.0 0.3
14.4x 15.3 14.6 16.6 20.6 9.7 9.7 25.6 10.2 11.9
12.7x 13.4 12.3 16.3 15.4 9.7 9.8 15.1 8.5 4.2
11.3x 13.0 11.7 14.6 15.3 8.9 9.2 13.0 7.0 3.4
27.8x 22.2 32.4 32.2 31.0 16.6 19.2 NM NM NM
17.3x 21.7 16.3 23.8 13.5 18.8 18.4 43.6 NM 11.4
14.9x 20.8 16.8 21.6 12.3 16.9 17.0 37.6 11.0 7.6
9.3% 10.0% 7.8% 11.3% 14.3% 9.7% 7.1% 18.0% NA NA
1.6 2.1 2.2 1.9 0.9 1.8 2.4 2.1 NA NA
12.6% 2.5% 4.7% 8.2% 6.7% 2.1% 4.9% 5.0% 5.8% 0.5%
(5.4%) 2.6% 2.0% 20.2% 4.5% 3.1% 4.8% 1.0% 6.3% (10.4%)
2.8x 2.4
2.8x 2.4
2.6x 2.2
14.9x 14.5
11.7x 12.5
10.7x 11.5
25.9x 27.8
20.5x 18.4
17.7x 16.9
10.9% 9.8%
1.9 2.0
5.3% 4.9%
2.9% 2.9%
11.9x 5.9 5.4 5.1 5.4 1.2 5.8 2.5 2.3 2.0 1.4 1.3 0.9 0.9
11.3x 5.5 5.5 4.9 5.4 1.2 6.0 2.7 2.3 2.0 1.4 1.3 1.0 0.9
8.4x 4.3 5.6 4.5 4.5 1.0 4.4 2.0 2.2 1.8 1.6 1.4 0.8 0.8
28.0x 17.5 15.6 18.9 17.3 10.0 15.9 17.7 10.5 NM 3.2 7.4 3.3 NM
26.9x 16.1 15.5 15.2 17.0 8.3 16.9 5.4 9.4 26.0 3.2 7.4 3.4 NM
20.6x 13.1 15.0 13.5 13.3 6.9 11.0 5.0 6.9 15.8 3.9 10.5 3.0 NM
44.0x 22.8 35.7 21.0 NA 20.8 NA 37.2 12.4 NM 8.1 10.2 9.7 NM
38.6x 19.6 22.7 25.3 33.1 19.4 25.2 33.9 21.5 NM 7.7 13.8 9.6 NM
29.3x 16.6 23.6 21.3 25.7 18.0 17.1 17.4 17.0 37.9 8.5 19.8 8.4 NM
27.8% 19.6% 20.7% 12.6% 29.8% 22.5% 38.4% 31.3% 22.3% 21.0% NA NA NM 15.0%
1.1 0.9 1.1 1.7 0.9 0.8 0.4 0.6 0.8 1.8 NA NA NM NM
35.4% 27.6% (1.4%) 8.4% 20.6% 24.0% 36.1% 37.7% 3.8% 9.1% (14.9%) (5.3%) 15.0% 8.3%
44.8% 31.6% 49.0% 7.4% 19.2% 31.0% 17.4% 36.7% (2.0%) 2.6% (26.6%) (12.8%) (28.1%) (24.1%)
3.7x 2.4
3.7x 2.5
3.1x 2.1
13.8x 15.7
13.1x 15.2
10.7x 11.0
22.2x 20.9
22.5x 22.1
20.0x 18.0
23.7% 22.3%
1.0 0.9
14.6% 12.0%
10.4% 12.4%
13.0x 4.8 4.7 2.3 3.2
13.1x 4.7 4.6 2.3 3.2
9.5x 5.1 3.8 1.9 2.6
24.1x 88.2 32.0 NM 68.3
20.2x 16.7 23.4 NM 20.4
15.1x 20.0 17.1 NM 14.4
38.4x NM 83.5 NM NM
32.3x 30.4 NM NM 49.2
24.7x 46.2 41.9 NM 34.0
27.1% 9.5% 50.9% 45.0% 32.9%
0.9 4.9 0.8 NM 1.0
38.3% (7.0%) 19.5% 18.7% 24.7%
50.8% 0.9% 19.3% 16.8% 26.7%
5.6x 4.7
5.6x 4.6
4.6x 3.8
53.2x 50.2
20.2x 20.3
16.7x 16.1
61.0x 61.0
37.3x 32.3
36.7x 37.9
33.1% 32.9%
1.9 1.0
18.8% 19.5%
22.9% 19.3%
Gaming Tencent Holdings Limited NetEase, Inc. Activision Blizzard, Inc. Electronic Arts Inc. Naver Corporation Gamesa Corporación Tecnológica, S.A. NCsoft Corporation Ubisoft Entertainment SA DeNA Co., Ltd. Zynga Inc. GungHo Online Entertainment, Inc. Gree, Inc. Changyou.com Limited Glu Mobile Inc.
$26.24 260.78 45.70 86.32 690.87 21.74 255.49 37.43 23.24 2.63 2.25 6.03 26.16 2.11
$17.44 130.82 28.55 58.10 472.74 15.90 185.10 20.02 13.96 1.82 1.98 4.06 16.57 1.73
$28.46 272.58 47.64 87.49 784.72 23.45 283.30 41.23 34.72 3.08 3.04 6.00 30.28 4.00
$246,184 34,287 33,965 26,609 19,902 6,018 5,427 4,205 3,371 2,346 1,598 1,414 1,329 282
($443) (4,177) 1,642 (3,229) (2,342) (281) (683) (42) (560) (852) (292) (704) (848) (102)
$247,263 30,147 35,607 23,380 18,006 5,737 4,752 4,163 2,873 1,493 1,321 710 510 180 Mean Median
Social Media & New Platform Facebook, Inc. Twitter, Inc. LINE Corporation Pandora Media, Inc. Yelp Inc.
$134.05 15.81 31.78 13.09 35.54
$100.24 39.40 30.85 7.65 15.84
$135.60 26.20 45.91 14.98 43.41
$387,402 11,216 6,920 3,054 2,788
($29,449) 803 (1,213) 105 (480)
$357,953 12,019 5,709 3,160 2,309 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 2/13/17
LTM Price Range Low High
Equity Value
Net Debt
$58.46 48.86 49.95 155.86 19.51 23.11 16.10 11.06 9.82 24.34 30.33 13.88 23.52 9.53 11.07 13.04 11.76 4.22 2.82 4.68 2.84 10.28 5.60 1.88
$56,370 17,167 15,230 5,627 5,044 4,581 2,668 2,615 2,307 2,249 2,044 1,751 1,298 1,023 810 549 529 423 385 378 336 283 238 89
$1,315 (1,386) (392) (80) (400) (347) 54 (225) (102) (17) (113) (145) (221) (70) (18) (79) (62) (51) (49) (27) (109) (64) (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. Zendesk, Inc. Box, Inc. Cornerstone OnDemand, Inc. HubSpot, Inc. RingCentral, Inc. Coupa Software Incorporated MINDBODY, Inc. AppFolio, Inc. Apptio, Inc. Everbridge, Inc. LivePerson, Inc. Bazaarvoice, Inc. Xactly Corporation Jive Software, Inc. ChannelAdvisor Corporation Brightcove Inc. Marin Software Incorporated
$80.91 85.41 91.74 194.03 56.05 32.20 33.15 27.43 18.22 40.02 57.40 23.80 25.96 25.20 24.05 14.33 19.50 7.30 4.65 12.05 4.30 10.90 7.05 2.30
$84.48 93.35 92.98 224.07 57.16 46.78 33.25 31.88 18.26 47.75 59.97 25.00 41.61 26.60 24.80 24.60 20.66 8.85 6.14 16.10 4.59 15.91 13.80 3.44
$57,685 15,781 14,838 5,547 4,643 4,234 2,721 2,390 2,204 2,231 1,931 1,606 1,077 953 793 470 467 372 336 350 227 219 204 55 Mean Median
8
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM.
7.3x 10.8 10.7 7.1 14.1 8.1 5.0 7.7 5.9 5.3 7.8 4.2 8.8 6.9 8.1 2.9 6.5 1.7 1.7 3.8 1.1 1.9 1.4 0.5
6.9x 10.1 10.7 7.1 12.2 7.4 4.8 7.7 5.5 5.3 7.2 4.3 8.2 6.9 7.6 3.0 6.1 1.7 1.7 3.7 1.1 1.9 1.4 0.6
5.7x 7.9 8.1 5.7 8.2 4.9 4.2 5.7 4.4 4.6 5.5 3.4 6.5 5.3 5.8 2.6 4.9 1.8 1.6 3.1 1.1 1.8 1.2 0.6
NM NM NM 79.6 NM NM 36.3 NM NM NM NM NM NM NM NM NM NM NM NM NM 75.5 NM NM NM
33.7x NM 56.9 29.8 NM NM 21.7 NM NM 65.7 NM 74.7 NM NM NM NM NM 19.7 25.7 NM 13.4 42.3 27.6 NM
27.2x 71.8 37.1 23.7 NM NM 18.0 NM NM 44.0 NM 51.5 NM NM NM NM NM 19.9 19.0 NM 10.3 32.8 19.2 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
82.6x NM NM 59.8 NM NM 44.7 NM NM NM NM NM NM NM NM NM NM NM NA NM 66.2 NM NM NM
62.9x NM 85.2 48.9 NM NM 36.8 NM NM NM NM NM NM NM NM NM NM 82.6 NM NM 41.0 NM 59.6 NM
27.0% 32.6% 41.6% 26.8% 25.0% 30.0% 20.0% 25.0% NM 20.0% 25.0% 28.8% NA 15.0% 30.0% NM 20.0% 20.0% NA 22.5% NA NA 15.0% NA
2.3 NM 2.0 1.8 NM NM 1.8 NM NM NM NM NM NA NM NM NM NM 4.1 NA NM NA NA 4.0 NA
21.4% 27.5% 32.8% 24.1% 48.3% 51.9% 14.7% 35.2% 25.9% 15.5% 30.2% 24.2% 25.1% 30.1% 30.1% 13.6% 25.8% (8.1%) 4.4% 19.4% 0.9% 8.8% 9.5% (3.5%)
25.3% 34.2% 35.0% 23.4% 88.6% 90.1% 21.7% 41.5% 30.7% 13.7% 48.0% 25.2% 55.4% 35.1% 38.7% 27.2% 31.2% (5.1%) 1.0% 25.4% 3.1% 7.9% 13.5% (8.8%)
5.8x 6.2
5.5x 5.8
4.4x 4.7
63.8x 75.5
37.4x 29.8
30.4x 23.7
NM NM
63.3x 63.0
59.6x 59.6
25.0% 25.0%
2.7 2.2
21.2% 24.1%
29.2% 26.3%
PUBLIC SAAS COMPANIES Valuation Correlation to Growth and Cash Flow Selected Public Saas Companies Company
14.0x
Identifier APPF
R = 0.86
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
8.0x
SHOP COUP APPF
6.0x
HUBS ULTI
EVGB CSOD 4.0x APTI 2.0x
SHOP ULTI
JIVE
LPSN
MRIN
WDAY XTLY
NOW
WDAY
(10%)
0%
10%
ZEN
CRM
MB
NTNX
BOX
RP
RNG XTLY
ECOM 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 0.78.
60%
70%
PUBLIC SAAS COMPANIES Valuation Correlation to S&M Effectiveness Selected Public Saas Companies Company
Identifier
R = 0.83
14.0x
APPF APTI BCOV
SHOP
12.0x
BOX 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 CRM
ZEN HUBS
NTNX
MB
6.0x
APPF
ULTI
EVBG
BOX CSOD
RP RNG
4.0x
XTLY APTI
LPSN 2.0x
SHOP
BV ECOM 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
$4,300
NA
10.9x
NA
NA
2/8/2017
$100
NA
NA
NA
NA
2/2/2017
$834
NA
NA
NA
NA
1/24/2017
$3,902
18.9x
NA
NA
NA
1/24/2017
$75
NA
NA
NA
NA
1/20/2017
$84
NA
NA
NA
NA
1/19/2017
$800
4.6x
NA
NA
NA
1/17/2017
$413
NA
NA
NA
NA
1/10/2017
$150
2.5x
NA
NA
NA
1/9/2017
$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
(1)
2/10/2017 (HR and Benefits BPO business)
(2)
(1)
(2)
12/16/2016
11
Dalian Zeus Entertainment
Pocket Technology
Notes: Multiples 50x considered NM. Disclosed transactions with Enterprise Value
