GCA Weekly Digital Media Sector Summary - GCA Savvian

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Weekly Internet / Digital Media / SaaS Sector Summary Week of January 23rd, 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) 25% 21%

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%

12.7% 140%

34.7% 32.7% 31.0% 22.9% 22.4% 16.9% 14.5% 7.6% 6.3% 5.7%

120%

100%

110%

7.2% 5.2% 5.1% 1.9% 1.4% 0.2% (2.8%) (4.3%)

100%

(8.4%) 90%

80%

60% 1/25/2016

3/17/2016

5/8/2016

6/29/2016

Search / Online Advertising

(1)

8/20/2016

10/11/2016

12/2/2016

Internet Commerce

(2)

(5)

Diversified Marketing

3

80% 10/25/2016

1/23/2017

Media Conglomerates

11/9/2016

Internet Content

(6)

Gaming

(7)

(3)

11/24/2016

12/9/2016

Publishers

SaaS

(8)

12/24/2016

(4)

1/8/2017

1/23/2017

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 5.2x

Mean: 3.4x Median: 3.0x

5.0x 4.0x 3.0x

2.0x 1.0x 0.0x

4

3.7x

3.5x

40.0x

38.3x

Mean: 16.4x Median: 13.2x

30.0x

3.0x

2.7x

2.7x

22.1x

2.1x

20.0x

1.6x

17.7x

14.2x 13.2x

10.0x

12.2x

11.3x

9.8x

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.

8.6x

PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d) $MM, Except Per Share Data Stock Price 1/23/17

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.

$844.43 62.96 22.09 43.82 29.79 8.58 0.49 3.59 2.43 3.62 2.55 2.05 2.30 4.16

$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

$845.54 64.10 23.87 47.81 33.40 20.37 0.56 4.32 2.76 4.36 4.68 4.10 3.61 11.94

$582,015 489,536 7,109 2,794 1,149 421 241 164 126 124 111 93 89 28

($79,118) (60,857) (690) (398) (72) (193) (41) (39) (48) (62) (105) 9 (33) 2

$502,897 428,679 6,431 2,406 1,077 228 200 126 79 62 5 103 55 30 Mean Median

5.9x 5.0 5.6 5.1 6.2 0.8 1.3 0.4 0.5 0.4 0.0 0.2 0.5 0.2

5.6x 4.6 5.3 3.4 5.6 0.9 1.1 0.5 0.5 0.4 0.0 0.2 0.6 0.3

4.9x 4.5 4.3 2.6 4.3 0.9 0.8 0.5 0.4 0.4 0.0 0.2 0.6 0.3

17.8x 15.9 19.1 15.8 20.1 4.9 NM NM NM NM NM NM NM NM

13.9x 12.3 15.1 11.3 19.3 3.6 NM 27.3 NM 7.6 NM 8.1 NM NM

11.9x 11.6 12.1 8.8 15.4 3.6 17.4 12.9 11.1 6.5 NM 7.9 20.8 33.3

30.9x 30.2 53.8 35.4 NM 19.3 NM NM NM NM NM NM NM NM

24.3x 22.1 30.0 23.4 39.5 9.2 NM 91.3 NM NM NM NM NM NM

20.5x 20.6 23.2 19.2 35.1 12.7 39.6 NM NM 17.3 NM NM NM NM

16.9% 9.3% 23.2% 28.3% 25.9% NM NM NM NA NA 15.0% 3.0% NA 20.0%

1.2 2.2 1.0 0.7 1.4 NM NM NM NA NA NM NM NA NM

15.8% 4.3% 22.7% 29.9% 28.8% 1.2% 34.4% 2.1% 13.0% 2.0% (14.0%) 2.9% (3.5%) 5.1%

20.2% 0.4% 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

15.6x 16.8

13.2x 12.3

13.3x 11.9

33.9x 30.9

34.3x 24.3

23.5x 20.5

17.7% 18.4%

1.3 1.2

10.3% 4.7%

10.9% 0.9%

8.3x 1.9 2.8 2.1 2.6 4.6 1.9 2.8 2.4 13.0 2.6 1.5 2.3 1.1 0.8

7.7x 1.9 2.7 2.0 2.6 3.3 1.8 2.7 2.2 9.5 2.5 1.5 2.4 1.1 0.8

6.3x 1.8 2.6 1.8 2.5 2.9 1.6 2.4 2.1 6.3 2.3 1.6 2.1 0.9 0.9

NM 15.3 7.8 17.6 10.3 45.9 15.4 12.6 12.5 NM 18.9 6.6 17.4 39.0 16.4

46.7x 12.0 7.4 9.0 8.0 14.3 9.4 10.3 8.9 NM 12.2 5.9 14.2 14.8 25.3

27.9x 10.0 8.0 7.8 7.4 11.2 8.1 9.4 8.3 NM 11.0 6.5 9.2 10.2 23.5

NM NM 10.2 NM 27.7 NM 32.1 NM 12.5 NM 76.3 NM 66.6 NM NM

NM 27.6 9.6 21.5 26.0 21.3 81.9 18.0 7.1 NM 49.1 15.8 33.5 56.0 36.0

64.4x 20.2 11.5 20.9 24.5 18.2 48.4 16.4 6.7 NM 41.5 17.6 19.2 29.6 NM

58.0% 18.9% NA NM 12.5% 30.0% NM 17.5% 13.4% 20.0% 17.5% NA 27.7% 17.5% 10.0%

1.1 1.1 NA NM 2.0 0.6 NM 0.9 0.5 NM 2.4 NA 0.7 1.7 NM

22.5% 7.3% 3.4% 13.3% 5.5% 13.1% 9.3% 12.9% 3.6% 50.6% 10.3% (3.0%) 11.9% 13.0% (2.1%)

27.1% (8.9%) 13.6% 14.8% 12.3% 8.4% 11.8% 29.2% 39.4% NA 5.8% (13.9%) (11.2%) 12.7% (16.1%)

3.4x 2.4

3.0x 2.4

2.5x 2.1

18.1x 15.4

14.2x 11.2

11.3x 9.3

37.6x 29.9

31.0x 26.0

26.1x 20.2

22.1% 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. WebMD Health Corp. comScore, Inc. Shutterfly, Inc. Bankrate, Inc. Web.com Group, Inc. Renren Inc. XO Group Inc. DHI Group, Inc. TechTarget, Inc. Care.com, Inc. eHealth, Inc.

$37.65 69.95 21.62 34.95 49.56 31.80 52.12 11.25 19.25 1.70 19.15 5.70 8.79 8.41 12.24

$16.46 38.82 17.91 23.88 45.46 21.74 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 67.55 43.53 54.60 12.93 21.20 3.58 20.99 9.64 9.24 12.00 15.14

$6,740 5,546 4,636 3,057 1,819 1,818 1,769 1,014 907 578 487 284 245 242 225

($215) 274 4,131 475 6 (114) 308 159 664 24 (101) 61 8 (71) (67)

$6,525 5,957 9,107 3,730 1,824 1,704 2,077 1,173 1,571 602 386 345 252 172 157 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 1/23/17

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. Cimpress N.V. trivago N.V. (1) Stamps.com Inc. Shutterstock, Inc. Etsy, Inc. Quotient Technology Inc. 1-800-FLOWERS.COM, Inc. Blue Nile, Inc. Angie's List, Inc. Overstock.com, Inc. Travelzoo Inc. CafePress Inc.

$817.88 98.41 1,554.99 137.39 30.27 119.99 18.85 56.38 39.69 95.03 11.41 120.30 51.41 12.65 10.55 9.55 40.67 7.25 15.80 9.20 3.43

$474.00 59.25 954.02 79.95 21.52 88.40 17.88 32.62 17.77 70.15 11.10 68.82 25.44 6.18 5.04 6.11 22.33 6.32 10.25 6.63 2.80

$847.21 109.87 1,600.93 143.46 33.19 133.55 27.25 57.58 44.58 104.18 12.61 123.75 65.16 16.05 14.36 11.40 41.39 10.76 19.70 13.27 3.99

$388,629 246,025 76,731 58,961 33,840 18,002 8,803 6,460 3,397 3,008 2,727 2,051 1,806 1,462 929 623 477 429 401 127 57

$641 (7,448) 2,967 1,631 986 1,319 6,104 576 (297) 635 (5) 81 (290) (258) (139) 229 (40) 20 (75) (25) (35)

$389,270 239,317 79,698 60,591 34,826 20,967 15,029 7,036 3,101 3,708 2,725 2,132 1,516 1,203 790 852 437 449 324 102 22 Mean Median

3.0x 12.8 7.7 6.9 3.9 2.5 1.5 5.3 6.8 2.0 3.5 6.5 3.2 3.5 2.9 0.7 0.9 1.3 0.2 0.8 0.2

2.8x 16.6 7.4 6.9 3.9 2.4 1.5 5.2 6.3 1.9 3.5 6.0 3.0 3.3 2.9 0.7 0.9 1.4 0.2 0.8 0.2

2.3x 12.9 6.4 5.4 3.7 2.1 1.4 4.8 5.0 1.6 2.5 5.2 2.6 2.7 2.6 0.7 0.9 1.4 0.2 0.8 0.2

35.5x 36.6 19.9 NM 11.5 20.6 8.5 15.0 29.6 17.5 NM 17.7 23.3 32.5 NM 11.3 26.7 23.3 NM 8.3 NM

25.7x 32.3 18.8 NM 10.1 12.9 7.9 14.2 21.4 14.0 NM 13.0 15.4 21.4 28.4 10.0 17.8 17.8 9.2 8.2 38.1

19.9x 25.9 16.1 56.6 9.7 10.7 7.5 13.1 16.8 11.7 39.7 10.9 12.8 16.0 18.1 8.5 17.0 12.5 18.4 9.1 18.3

NM 47.8 39.7 NM 18.9 95.4 7.2 17.6 72.2 NM NA 46.8 62.0 NM NM 25.0 50.1 NM 42.6 35.4 NM

NM 40.3 22.7 NM 16.1 25.4 11.2 23.8 43.6 32.3 NM 14.4 32.8 NM NM 22.5 46.2 NM NM 20.8 NM

92.1x 32.4 20.0 NM 14.6 19.9 10.1 21.9 34.5 31.1 83.1 14.6 30.3 48.7 50.2 17.9 43.7 NM NM 22.3 NM

51.9% 24.5% 17.9% 47.1% 9.0% 21.6% 12.8% 14.8% 23.0% 20.5% NA 20.3% 16.5% 10.0% 43.6% 19.0% 5.0% 8.0% NA 5.0% NA

1.8 1.3 1.1 NM 1.6 0.9 0.8 1.5 1.5 1.5 NA 0.7 1.8 4.9 1.2 0.9 8.7 NM NA 4.5 NA

22.7% 28.7% 15.5% 27.2% 4.3% 14.5% 3.0% 6.9% 25.7% 19.1% 38.5% 16.0% 15.8% 22.8% 14.7% 4.8% 2.1% 0.1% 8.0% (0.5%) 6.3%

29.0% 47.4% 18.9% 35.9% 5.6% 33.2% 14.7% 19.8% 44.1% 18.1% 56.0% 79.1% 14.7% 33.3% 17.7% 6.3% (4.4%) (8.3%) 12.9% (9.7%) (1.6%)

3.6x 3.0

3.7x 2.9

3.1x 2.5

21.1x 20.2

17.7x 15.4

17.6x 16.0

43.1x 42.6

27.1x 23.8

34.6x 30.3

20.6% 18.5%

2.2 1.5

14.1% 14.7%

22.0% 18.1%

3.0x 3.4 2.6 0.5 2.5 3.8 2.2 3.9 2.5

3.0x 3.4 2.6 0.6 2.5 3.8 2.2 3.9 2.5

2.8x 3.2 2.4 0.6 2.5 3.6 2.1 3.7 2.5

9.1x 11.1 10.8 6.7 10.7 10.1 9.4 8.9 12.8

9.0x 11.0 10.4 8.2 10.5 10.1 10.0 9.6 9.2

8.5x 10.5 9.9 5.6 10.3 9.7 8.6 9.2 11.0

21.5x 18.7 20.4 68.4 17.5 16.0 11.2 12.3 NM

21.1x 19.2 15.6 NM 15.3 13.6 12.1 14.1 35.3

19.5x 17.4 15.3 21.4 14.3 12.2 10.0 14.0 21.5

10.6% 10.0% 11.9% 18.0% 18.4% 13.1% 2.0% 9.7% NA

1.8 1.7 1.3 1.2 0.8 0.9 5.1 1.4 NA

4.0% 5.2% 5.2% 6.8% 0.9% 5.1% 3.2% 4.2% (0.6%)

14.2% (2.7%) 7.1% 5.5% 4.3% (0.1%) (14.8%) 3.5% 6.0%

2.7x 2.6

2.7x 2.6

2.6x 2.5

10.0x 10.1

9.8x 10.0

9.3x 9.7

23.3x 18.1

18.3x 15.5

16.2x 15.3

11.7% 11.2%

1.8 1.4

3.8% 4.2%

2.5% 4.3%

3.4x 0.7 1.4 3.4 0.7 1.0 1.1 0.9 2.1 0.5

3.7x 0.7 1.5 3.5 0.7 NA 1.2 0.9 1.9 0.5

3.6x 0.8 1.4 3.0 0.7 NA 1.1 0.9 2.0 0.4

16.3x 9.2 10.0 12.5 9.0 6.9 7.7 8.8 20.9 4.1

13.2x 6.7 8.8 12.0 8.3 NA 7.7 6.8 9.2 4.3

12.5x 6.6 8.3 9.8 7.9 NA 8.1 6.7 13.8 4.0

26.5x NM NM 29.5 28.5 16.2 48.5 NM NM 28.5

21.8x 38.0 10.6 19.2 13.8 NA 25.2 15.6 23.5 8.9

19.2x 29.2 12.1 14.7 12.6 NA 23.4 14.0 55.6 8.8

8.0% 8.2% NM 11.2% 5.8% NA NA 8.5% NA NM

2.4 3.5 NM 1.3 2.2 NA NA 1.6 NA NM

1.9% (2.1%) 5.0% 16.5% (0.3%) 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 1.1

10.6x 9.1

8.6x 8.3

8.7x 8.1

29.6x 28.5

19.6x 19.2

21.1x 14.7

8.4% 8.2%

2.2 2.2

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 Discovery Communications, Inc. Viacom, Inc. Scripps Networks Interactive, Inc. Tribune Media Company

$73.26 107.12 30.00 30.34 63.26 28.27 40.32 74.63 28.73

$53.62 86.25 22.66 19.44 41.36 23.66 30.11 52.00 26.10

$73.74 109.49 31.25 31.56 66.88 29.75 47.47 75.84 40.72

$175,299 169,660 55,660 38,301 27,183 16,837 15,999 9,636 2,511

$57,621 15,560 14,807 (3,539) 8,778 7,609 11,420 3,253 2,772

$236,588 189,278 72,268 40,971 35,961 24,693 27,683 13,195 5,289 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.

$44.79 11.96 7.39 8.86 26.57 520.95 13.05 18.70 18.24 9.50

$35.77 10.21 6.89 6.70 19.69 440.55 10.60 12.23 12.16 7.30

$45.22 14.68 12.35 9.36 29.12 547.80 14.20 20.40 19.99 17.72

$32,661 6,956 6,030 3,487 3,404 2,924 2,102 1,852 1,512 1,108

$8,520 (1,122) 2,162 49 1,931 (504) (311) 937 308 268

$41,663 6,050 8,195 3,576 5,478 2,430 1,787 2,789 1,820 1,376 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 1/23/17

LTM Price Range Low High

Equity Value

Net Debt

$15.03 13.28 40.43 91.72 176.63 19.79 6.94 17.70 2.75 0.85

$29,460 18,754 14,490 14,153 13,201 9,171 3,888 2,018 332 93

$5,649 3,161 7,523 2,732 17,839 846 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.

$23.00 19.14 40.54 118.18 228.55 23.10 9.26 26.00 6.20 1.51

$23.76 20.19 55.94 136.97 253.07 24.82 9.50 27.73 23.90 3.73

$35,718 21,929 22,202 16,926 31,040 10,298 4,001 2,017 1,388 147 Mean Median

2.1x 4.8 3.5 5.6 4.4 1.3 1.6 2.3 1.0 0.3

2.1x 4.7 3.5 5.4 4.3 1.3 1.7 2.3 1.0 0.3

1.9x 4.6 3.5 5.0 3.9 1.3 1.6 2.2 1.0 0.3

14.0x 15.7 14.2 16.3 18.6 9.7 10.1 23.2 10.0 11.5

12.4x 13.8 11.6 15.0 14.8 9.3 10.2 13.1 8.3 4.1

11.1x 13.3 11.3 13.8 13.8 8.8 9.4 11.5 6.8 3.3

26.9x 21.6 24.9 29.9 24.2 17.3 19.9 NM NM NM

16.8x NA 14.7 21.6 13.5 17.5 19.0 39.6 NM 10.8

14.5x 19.7 14.9 19.8 12.2 16.0 17.4 36.5 9.3 7.2

9.1% 10.0% 8.8% 11.0% 16.0% 11.1% 7.0% 15.0% 6.0% NA

1.6 2.0 1.7 1.8 0.8 1.4 2.5 2.4 1.6 NA

11.8% 3.0% 1.0% 8.3% 9.6% 3.4% 5.9% 4.7% 5.8% 0.5%

(5.4%) 2.6% 2.5% 20.5% 18.7% 3.0% 4.8% 4.8% 6.3% (10.4%)

2.7x 2.2

2.7x 2.2

2.5x 2.0

14.3x 14.1

11.3x 12.0

10.3x 11.2

23.5x 24.2

19.2x 17.1

16.7x 15.5

10.4% 10.0%

1.8 1.7

5.4% 5.2%

4.7% 3.9%

11.6x 5.6 5.2 4.8 4.8 1.1 5.9 2.2 1.9 2.0 1.1 0.7 0.8 0.7

11.0x 5.2 4.7 4.6 5.0 1.1 6.4 2.4 2.1 2.0 1.4 0.9 0.8 0.8

8.1x 4.1 4.6 4.3 4.2 0.9 4.8 1.5 2.0 1.7 1.6 0.9 0.7 0.7

27.2x 16.6 16.4 18.3 16.5 9.5 16.5 15.6 7.5 NM 2.6 3.8 2.8 NM

26.2x 15.2 13.0 14.2 15.9 7.9 17.9 4.7 8.4 25.3 3.3 4.3 3.0 NM

19.9x 12.4 12.9 12.8 12.0 6.5 11.9 4.2 6.2 14.3 4.0 5.6 2.6 NM

42.7x 21.8 33.4 20.4 30.9 19.8 25.6 32.9 21.8 NM 7.1 7.8 9.2 NM

37.4x 18.7 19.0 23.4 31.7 18.4 26.5 30.0 21.6 NM 7.5 12.5 9.2 NM

28.1x 15.9 18.4 19.9 23.6 17.0 18.6 20.5 19.1 37.4 8.2 18.1 8.0 NM

27.8% 19.2% 21.7% 12.4% 34.5% 22.7% 37.3% 35.1% 22.1% 21.0% NA NA NM 15.0%

1.0 0.8 0.8 1.6 0.7 0.7 0.5 0.6 0.9 1.8 NA NA NM NM

35.5% 26.5% 3.8% 7.6% 20.5% 25.0% 33.3% 55.0% 5.3% 12.0% (12.4%) 1.6% 15.2% 5.5%

44.8% 31.6% 58.4% 10.2% 29.8% 31.0% 19.7% 36.7% 21.7% (6.8%) (16.7%) (8.7%) (28.1%) (18.8%)

3.5x 2.1

3.5x 2.3

2.9x 1.9

12.8x 16.0

12.2x 13.0

9.6x 11.9

22.8x 21.8

21.3x 20.3

19.4x 18.6

24.4% 22.1%

0.9 0.8

16.7% 13.6%

14.6% 20.7%

14.0x 5.0 4.8 4.2 2.4

12.6x 4.9 5.2 4.0 2.4

9.4x 4.5 4.1 3.2 1.9

26.9x NM 33.7 NM NM

19.6x 17.5 26.4 24.9 NM

14.9x 15.1 15.6 17.3 NM

49.7x NM 78.7 NM NM

31.2x 31.9 NM 57.5 NM

24.8x 27.7 36.6 38.8 NM

31.5% 22.4% 54.4% 33.1% 47.0%

0.8 1.2 0.7 1.2 NM

34.5% 9.4% 24.8% 25.7% 22.9%

55.8% 8.2% 54.6% 29.7% 12.9%

6.1x 4.8

5.8x 4.9

4.6x 4.1

30.3x 30.3

22.1x 22.2

15.7x 15.3

64.2x 64.2

40.2x 31.9

32.0x 32.1

37.7% 33.1%

1.0 1.0

23.4% 24.8%

32.2% 29.7%

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.

$25.50 248.59 38.53 79.88 661.21 20.64 268.43 33.14 23.34 2.60 2.22 5.48 24.78 2.29

$17.03 129.60 26.49 53.01 466.53 15.05 182.67 19.96 13.54 1.78 2.00 4.08 15.21 1.73

$28.47 272.58 45.55 86.07 774.41 23.74 271.43 41.73 34.97 3.08 3.06 6.01 30.28 4.00

$239,249 32,684 28,636 24,105 19,266 5,715 5,702 3,706 3,386 2,319 1,578 1,285 1,259 306

($443) (4,177) 2,333 (2,276) (2,937) (281) (676) (42) (782) (871) (256) (806) (848) (148)

$240,328 28,544 30,969 21,829 16,802 5,434 5,034 3,664 2,677 1,448 1,338 479 440 158 Mean Median

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

$128.93 16.61 35.50 41.53 13.47

$94.23 39.40 33.42 14.53 7.10

$135.60 26.20 46.24 43.36 15.25

$371,598 11,783 7,725 3,258 3,143

($26,140) 771 (1,284) (432) 80

$345,458 12,554 6,444 2,826 3,223 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 1/23/17

LTM Price Range Low High

Equity Value

Net Debt

$52.60 47.32 46.00 148.26 18.58 23.11 16.06 11.06 22.25 8.96 27.00 13.88 23.52 9.20 11.07 15.30 11.76 3.74 2.82 4.68 10.28 2.84 4.70 1.88

$51,720 16,498 13,820 5,669 4,449 4,275 2,322 2,299 2,296 2,150 1,788 1,729 1,250 1,031 770 612 497 452 369 379 376 305 260 89

$1,315 (1,386) (308) (100) (400) (347) 54 (256) (1) (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. Zendesk, Inc. Cornerstone OnDemand, 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

$76.16 82.08 83.25 195.49 49.44 30.05 28.85 24.11 40.87 16.98 50.20 23.50 25.00 25.45 22.85 15.97 18.31 7.80 4.45 12.10 14.60 3.90 7.70 2.30

$84.48 93.35 89.79 224.07 51.37 46.78 30.85 31.88 47.75 17.39 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 3.61

$53,035 15,112 13,513 5,569 4,049 3,928 2,375 2,043 2,295 2,047 1,675 1,593 1,029 960 752 489 435 401 319 352 313 205 226 55 Mean Median

8

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM.

6.7x 10.4 10.5 7.5 12.3 7.5 4.4 7.1 5.6 5.5 6.8 4.4 8.4 7.4 7.7 3.2 6.1 1.8 1.6 3.8 2.8 1.0 1.5 0.5

6.3x 9.7 9.8 7.1 10.6 6.8 4.2 6.6 5.4 5.2 6.2 4.2 7.8 6.9 7.2 3.1 5.7 1.8 1.6 3.7 2.8 1.0 1.5 0.6

5.2x 7.6 7.5 5.8 7.2 4.5 3.7 5.0 4.7 4.1 4.8 3.4 6.3 5.3 5.5 2.6 4.5 1.8 1.5 3.1 2.4 1.0 1.4 0.6

99.3x NM NM 86.2 NM NM 31.7 NM NM NM NM NM NM NM NM NM NM 23.9 NM NM NM NM NM NM

30.9x NM 51.8 29.9 NM NM 19.0 NM 68.0 NM NM 73.9 NM NM NM NM NM 21.2 24.5 NM 60.6 12.1 30.5 NM

25.0x 68.8 34.9 23.5 NM NM 15.9 NM 46.9 NM NM 50.6 NM NM NM NM NM 17.6 18.1 NM 47.6 10.2 21.3 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

77.8x NM NM 60.3 NM NM 38.9 NM NM NM NM NM NM NM NM NM NM NM NA NM NM 60.0 NM NM

59.2x NM 79.6 48.8 NM NM 32.0 NM NM NM NM NM NM NM NM NM NM 91.0 NM NM NM 35.5 65.1 NM

27.0% 32.6% 42.5% 26.4% 25.0% 30.0% 20.0% 24.3% 20.0% NM 25.0% 28.8% NA 15.0% 30.0% NA 20.0% 20.0% NA 22.5% NA NA 15.0% NA

2.2 NM 1.9 1.8 NM NM 1.6 NM NM NM NM NM NA NM NM NA NM 4.6 NA NM NA NA 4.3 NA

21.4% 27.5% 29.9% 24.0% 47.9% 51.9% 14.4% 32.3% 15.4% 25.9% 30.3% 24.4% 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% 37.0% 26.8% 88.6% 90.1% 21.7% 45.0% 23.5% 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 5.8

5.2x 5.6

4.1x 4.5

60.3x 59.0

38.4x 30.5

30.9x 23.5

NM NM

59.2x 60.1

58.7x 59.2

24.9% 25.0%

2.7 2.0

21.8% 24.2%

30.0% 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

8.0x

WDAY

SHOP

COUP

6.0x

APPF MB CSOD

ULTI ZEN

HUBS

CRM NTNX

EVGB

4.0x

BOX

RP

RNG APTI

ECOM

XTLY

2.0x LPSN

SHOP ULTI

MRIN

WDAY XTLY

NOW

(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 0.76.

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

12.0x

BOX BV

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

SHOP

Enterprise Value / CY 2016E Revenue

COUP

10.0x

WDAY

NOW

COUP

8.0x

NTNX

ZEN

CRM 6.0x CSOD BOX

APPF

MB

HUBS EVBG

RNG

4.0x

ULTI

RP

XTLY APTI

ECOM

LPSN 2.0x BV

SHOP

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