Sep 26, 2016 - 42.6. 23.8. 30.3. 18.5%. 1.5. 14.7%. 18.1%. Media Conglomerates / Selected Entertainment. Comcast Corpora
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
