2014 software equity group flash report and financial and ... · software equity group llc may have...

Septe

mber

20

14

Software Equity Group

Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank, founded in

1992, representing public and private software and

internet companies seeking:

• Strategic exit

• Growth capital

• Buyout

• Inorganic growth via acquisition

• Buy and sell-side mentoring

• Fairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million

• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies

• Clients span virtually every software technology, product

category, delivery model and vertical market

• Global presence providing advice and guidance to more

than 2,000 private and public companies throughout US,

Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction,

operating, legal and engineering experience

• Unparalleled software industry reputation and track

record.

• Highly referenceable base of past clients

LEADERS IN SOFTWARE M&A

We Do Deals.

EXTENSIVE GLOBAL REACH

SEG Research Distribution

Current Sell-side Representation

Recent Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are distributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine.

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858) 509-2800, [email protected] .

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.comp: (858) 509-2800

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.

This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

ABOUT SOFTWARE EQUITY GROUP

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

List of Commonly Used Acronyms

CRM Customer Relationship Management

EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization

ERP Enterprise Resource Planning

EV Enterprise Value

FCF Free Cash Flow

FORWARD Current EV / Next Four Quarters' Consensus Financial Estimates

NASDAQ National Association of Securities Dealers Automated Quotation System

PLM Product Lifecycle Management

R&D Research and Development

S&P Standard & Poor's

SaaS Software-as-a-Service

SEG Software Equity Group

SG&A Selling, General, & Administrative

SW Software

TTM Trailing Twelve Month

YoY Year-over-Year

YTD Year-to-date

http://www.softwareequity.com/


Removals:

Acquired by Oracle Corporation ($5.3 bn)


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Vertical - OtherSoftware-

SEG Index Changes

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Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index




SEG Software Index


SEG SaaS Index

SEG Internet Index



Select August 2014 Software Industry M&A Transactions

Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-01-2014 PTL International Ltd. Apco Limited - - - -

Aug-01-2014 Oi Arcade Creative Limited - - - -

Aug-01-2014 Google Inc. (NasdaqGS:GOOGL) Baarzo, Inc. - - - -

Aug-01-2014 Exelis Inc. (NYSE:XLS) Barco Orthogon GmbH - $17.5 - -

Aug-01-2014 cloudControl Inc. Docker, Inc., DotCloud PaaS Business - - - -

Aug-01-2014 Project: WorldWide, Inc. Pitch - - - -

Aug-01-2014 - Simpel BV - - - -

Aug-01-2014 CYBERLINKS co.,LTD. (JASDAQ:3683) Smarts Japan Co., Ltd., SEIL Series

Business

- - - -

Aug-01-2014 Elite Group Alliance SQCC LLC - - - -

Aug-01-2014 Runge ICT Group Pty Limited VostroCloud - - - -

Aug-03-2014 Frontline Technologies Group LLC Aspex Solutions - - - -

Aug-03-2014 HumanTouch, LLC CorasWorks Corporation - - - -

Aug-03-2014 ALTABOX S.L. Focus on Emotions SL - - - -

Aug-04-2014 KPMG LLP AXIA Consulting, LLC., Workday Consulting Practice - - - -

Aug-04-2014 Gill Studios Inc. Barton Nelson, Inc. - - - -

Aug-04-2014 Revamp Corporation Bemool - - - -

Aug-04-2014 Square, Inc. Caviar - - - -

Aug-04-2014 Educational Credit Management Corporation College Abacus - - - -

Aug-04-2014 Possible Worldwide, LLC Double Encore, Inc $8.0 - - -

Aug-04-2014 Civica Pty Limited England Consulting Pty Ltd - - - -

Aug-04-2014 Rhapsody International Inc. Extension Entertainment, Inc. - - - -

Aug-04-2014 Legend Pictures, LLC Geek & Sundry - - - -

Aug-04-2014 BRQ IT Services InfoSolution - - - -

Aug-04-2014 Technology Nexus AB INTEGID GmbH - - - -

Aug-04-2014 PROACTIS Holdings PLC (AIM:PHD) Intelligent Capture Limited $2.4 $2.3 1.0x -

Aug-04-2014 Enghouse Systems Limited (TSX:ESL) Jinny Software Ltd. $22.7 $17.7 0.8x -

Aug-04-2014 State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)LLC Interproject - - - -

Aug-04-2014 TractManager, Inc. MD Buyline, Inc. - - - -

Aug-04-2014 comScore, Inc. (NasdaqGS:SCOR) MdotLabs, Inc. - $4.5 - -

Aug-04-2014 Tune, Inc MobileDevHQ - - - -

Aug-04-2014 Taboola.com Ltd. Perfect Market, Inc. - - - -

Aug-04-2014 LexisNexis Risk Solutions, Inc. PoliceReports.US, LLC - - - -

Aug-04-2014 April-Six Limited Proof Communication Ltd. - - - -

Aug-04-2014 Continuum Managed Services, LLC Righteous Software, Inc. - - - -

Aug-04-2014 Rhapsody International Inc. Schematic Labs, Inc. - - - -

Aug-04-2014 InComm Holdings, Inc. SIRAS, Inc. - - - -

Aug-04-2014 BroadSoft, Inc. (NasdaqGS:BSFT) Systems Design & Development, Inc. - - - -

Aug-04-2014 The News Funnel, LLC The CRE App Review - - - -

Aug-05-2014 Rocket Fuel Inc. (NasdaqGS:FUEL) [x+1], Inc. $72.0 $236.0 3.3x -

Aug-05-2014 Tapjoy, Inc. 5Rocks, Inc. - - - -

Aug-05-2014 Foxit Software Incorporated Dataintro Software SL - - - -

Aug-05-2014 CityGro, Inc. Digital Blitz Marketing - - - -

Aug-05-2014 Segulah Advisor AB Docu Group Sweden AB $45.7 - - -

Aug-05-2014 Epic Games, Inc. Epic Games UK - - - -

Aug-05-2014 SurveyMonkey Inc. Fluidware - $20.0 - -

Aug-05-2014 Lamar Advertising Co. (NasdaqGS:LAMR) Marco Outdoor Advertising, Inc. - - - -

Aug-05-2014 Delivery Agent, Inc. Musictoday, LLC - - - -

Aug-05-2014 Ocean Outdoor Advertising Limited Signature Outdoor Ltd. - $25.3 - -

Aug-05-2014 Comverse, Inc. (NasdaqGM:CNSI) Solaiemes, S.L. - - - -

Aug-05-2014 Bullhorn, Inc. The Code Works Inc. - - - -

Aug-05-2014 Premier Healthcare Solutions, Inc. TheraDoc, Inc. - $117.0 - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-05-2014 Yume Technology Co., Ltd. (JASDAQ:2458) Unitech Soft Inc. $3.7 $0.9 0.3x -

Aug-06-2014 u-blox Holding AG (SWX:UBXN) Advanced Network Technologies S.A. - $6.9 - -

Aug-06-2014 UpLexis Clip DO Ltda - - - -

Aug-06-2014 YouTube, LLC Directr, Inc. - - - -

Aug-06-2014 Coupons.com Incorporated (NYSE:COUP) Eckim, LLC - - - -

Aug-06-2014 Home Marketing Limited McGrath Rainey Laird Ltd. - - - -

Aug-06-2014 FuseMail, LLC MXSweep Limited - - - -

Aug-06-2014 Unee Solutions Inc. Omni West Research LLC - - - -

Aug-06-2014 BluePhoenix Solutions USA Inc. Sophisticated Business Systems, Inc. - $23.5 - -

Aug-06-2014 Alpheus Communications, L.P. StratITsphere Data Center Solutions LLC, Retail Colocation Business Unit - - - -

Aug-06-2014 Corindus Vascular Robotics Inc. Your Internet Defender, Inc. (OTCPK:CVRS) $0.0 - - -

Aug-07-2014 IHS Nigeria Plc (NGSE:IHS) Emerging Markets Telecommunication Services Limited, 2,136 Towers In Nigeria - - - -

Aug-07-2014 MSDSonline Inc. Knowledge Management Innovations, Ltd. - - - -

Aug-07-2014 Digital Payments plc M2 Systems Corporation - $14.6 - -

Aug-07-2014 Intuit Inc. (NasdaqGS:INTU) PaySuite Limited - - - -

Aug-07-2014 Facebook, Inc. (NasdaqGS:FB) PrivateCore Inc. - - - -

Aug-07-2014 Yahoo Japan Corporation (TSE:4689) Synergy Marketing, Inc. (JASDAQ:3859) $39.0 $66.2 1.7x 12.0x

Aug-08-2014 Alpine 4 Automotive Technologies, Ltd. AutoTek, Inc., LotWatch and ServiceWatch Technology - - - -

Aug-08-2014 Misys Limited Custom Credit Systems, L.P. - - - -

Aug-08-2014 Valtech SA (ENXTPA:LTE) Neon Stingray Private Limited - - - -

Aug-08-2014 Huobi Technology Co.,Ltd Quick Wallet - - - -

Aug-08-2014 Gemalto NV (ENXTAM:GTO) SafeNet, Inc. - $890.0 - -

Aug-09-2014 Beaqon Pte. Ltd. Pacific Wave Pte Ltd. - $1.7 - -

Aug-11-2014 Get Real USA, Inc. (OTCPK:GTRL) 1Bitcoin network Inc. - - - -

Aug-11-2014 Sizmek Inc. (NasdaqGS:SZMK) Aerify Media LLC - $6.3 - -

Aug-11-2014 Apax Partners LLP Answers Corporation - - - -

Aug-11-2014 CMI Marketing, Inc. BabyNameWizard.com and

NameCandy.com

- - - -

Aug-11-2014 International Risk Management Institute, Inc. Captive.com, LLC - - - -

Aug-11-2014 Command Alkon Incorporated FiveCubits Inc. - - - -

Aug-11-2014 Alten GmbH ICT Automatisering NV, German Activities - - - -

Aug-11-2014 International Business Machines Corporation (NYSE:IBM) Lighthouse Security Group, LLC - - - -

Aug-11-2014 Allgeier SE (XTRA:AEI) Metasonic AG - - - -

Aug-11-2014 Cloudberry Mobile AS Nextnet AS, 2.6 GHz Spectrum License - - - -

Aug-11-2014 Beeline International Company OnForce, Inc. - - - -

Aug-11-2014 BSM Technologies Inc. (TSXV:GPS) Praxis Transportation Solutions Inc. - $3.0 - -

Aug-11-2014 Asure Software, Inc. (NasdaqCM:ASUR) Roomtag, LLC - $1.7 - -

Aug-11-2014 Space Time Insight, Inc. UTILICASE Inc., EPS-M Software - - - -

Aug-11-2014 Thinking Phone Networks, Inc. Whaleback Systems Corporation - - - -

Aug-12-2014 Oodrive Group Active Circle SA - - - -

Aug-12-2014 SmileGate Inc. AfreecaTV Co., Ltd., Tales Runner Game Business $11.1 $2.9 - -

Aug-12-2014 CLEAResult Consulting, Inc. Applied Proactive Technologies, Inc. - - - -

Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) Cloudtel Pte. Ltd. - - - -

Aug-12-2014 LexisNexis Risk Solutions, Inc. Coplogic, Inc. - - - -

Aug-12-2014 AC Business Media Inc. Cygnus Business Media, Inc., Heavy Construction and Logistics Groups - - - -

Aug-12-2014 Cherwell Software, LLC Express Metrix, LLC - $10.0 - -

Aug-12-2014 Eventure Interactive, Inc. (OTCBB:EVTI) Gift Ya Now - - - -

Aug-12-2014 Manhattan Associates, Inc. (NasdaqGS:MANH) GlobalBay Technologies Inc. - - - -

Aug-12-2014 iQU B.V. HoneyTracks GmbH - - - -

Aug-12-2014 Singapore eDevelopment Limited (Catalist:5QZ) HotApps International Pte. Ltd. - $0.1 - -

Aug-12-2014 Mystery Researchers, LLC Insula Research, Inc. - - - -

Aug-12-2014 Beanstock Media, Inc. Lulo Ventures Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-12-2014 SHE Software Ltd Mobile Safety Solutions Limited - - - -

Aug-12-2014 King Digital Entertainment plc (NYSE:KING) NonStop Games Ltd - $90.0 - -

Aug-12-2014 Kaseya International Shared Services Sàrl Scorpion Software Corp. - - - -

Aug-12-2014 IPG Mediabrands S.A. Traffic4u B.V. - - - -

Aug-12-2014 Ozonetel Systems Pvt.Ltd YantraSoft Inc., Speech Recognition Vertical - - - -

Aug-13-2014 Koninklijke KPN N.V. (ENXTAM:KPN) Argeweb BV - - - -

Aug-13-2014 Vocus Communications Limited (ASX:VOC) ASG Group Limited, Bentley Data Centre - $10.9 - -

Aug-13-2014 - Hands Empreendimentos, Ltda. - - - -

Aug-13-2014 IgnitionOne, Inc. Human Demand, Inc. - - - -

Aug-13-2014 B² Interactive LLC Hurrdat Social Media LLC - - - -

Aug-13-2014 JumpForward, LLC Innovative Sports Strategies, LLC - - - -

Aug-13-2014 Intel Corporation (NasdaqGS:INTC) LSI Corporation, Axxia Networking Business and Related Assets $113.0 $650.0 5.8x -

Aug-13-2014 TLT Lottotainment Group Limited (SEHK:8022) Worthy Victory Limited - $3.9 - -

Aug-14-2014 Daily Internet Plc (AIM:DAIP) Evohosting Ltd $0.7 $0.7 0.9x 2.5x

Aug-14-2014 RedeHost Internet Ltda. Mailee - - - -

Aug-14-2014 Wonders Information Co., Ltd (SZSE:300168) Ningbo KingT software Co., Ltd - $73.1 - -

Aug-14-2014 MYOB Finance NZ Limited PayGlobal Limited - - - -

Aug-14-2014 Samsung Electronics Co. Ltd. (KOSE:A005930) Physical Graph Corporation - - - -

Aug-14-2014 Lieferheld GmbH pizza.de GmbH - - - -

Aug-14-2014 5just (Dalian) Computer System Co.,Ltd Red Flag Software Co., Ltd. - $6.3 - -

Aug-14-2014 INFOR, INC. SalesLogix, N.A., LLC - - - -

Aug-14-2014 Song Liao Automotive Co., Ltd (SHSE:600715) Shanghai Douwan Network Technology Co., Ltd. $13.4 $232.0 17.3x -

Aug-14-2014 Sprinklr Inc. TBG Digital Limited - - - -

Aug-14-2014 Empirix, Inc. Verios Software & Systems Limited - - - -

Aug-15-2014 Beijing Tongtech Co., Ltd. (SZSE:300379) Beijing Hugeland Technologies Co., Ltd. $9.4 $68.3 7.3x -

Aug-15-2014 Yahoo! Inc. (NasdaqGS:YHOO) ClarityRay - - - -

Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) InterInbox S.A. and ERNEPH 2012A (Pty) Ltd. and ERNEPH 2012B (Pty) Ltd. and Quattro Hosting LLC $4.0 $5.8 1.5x -

Aug-15-2014 Google Inc. (NasdaqGS:GOOGL) Jetpac Inc. - - - -

Aug-15-2014 Transformyx Inc. No Hassle Computing, LLC - - - -

Aug-15-2014 SMTP, Inc. (NasdaqCM:SMTP) SharpSpring, LLC - $15.0 - -

Aug-15-2014 EyeEm Mobile GmbH Sight.io - - - -

Aug-15-2014 SheKnows LLC StyleCaster Media Group LLC - - - -

Aug-17-2014 Realvolve, LLC Mark-It Systems, Inc., Advantage Xi - - - -

Aug-18-2014 Coinbase, Inc. Blockr.io - - - -

Aug-18-2014 Changepoint Corporation Daptiv, Inc. - - - -

Aug-18-2014 Search Optics LLC DigiGo - - - -

Aug-18-2014 Big Colors Limited GetViable Pty Ltd. - - - -

Aug-18-2014 Science Media LLC Hiq Lockscreen - - - -

Aug-18-2014 Fucata SA Nextel Chile $72.7 - - -

Aug-18-2014 Montagu Private Equity LLP Open International Limited - - - -

Aug-18-2014 SyQic Plc (AIM:SYQ) PlayTV Asia Sdn Bhd, Maaduu $0.3 $1.8 7.2x -

Aug-18-2014 Evolve24, LLC Sherpa, LLC - - - -

Aug-19-2014 Digital Dimension Aspserveur Sarl $4.7 - - -

Aug-19-2014 Sygic a.s. Be-On-Road App - - - -

Aug-19-2014 Gaming Realms plc (AIM:GMR) Blueburra Holdings Limited - $17.5 - -

Aug-19-2014 Shanghai Chenghai Enterprise Development Co., Ltd. (SHSE:600634) DIANDIAN Interacitve (Beijing) Technology Ltd. - $960.0 - -

Aug-19-2014 J. Stokes & Associates, Inc. EMC Creative - - - -

Aug-19-2014 Readyforce, Inc. HireBrite, LLC - - - -

Aug-19-2014 Datapipe, Inc. Layered Technologies, Inc. - - - -

Aug-19-2014 Fluendo S.A. LongoMatch - - - -

Aug-19-2014 Trimble Navigation Limited (NasdaqGS:TRMB) Manhattan Software Group Limited - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-19-2014 Global Payout, Inc. (OTCPK:GOHE) Maxie Mobile, LLC - - - -

Aug-19-2014 Accelyst Solutions Pvt. Ltd. Preburn Pvt. Ltd. - - - -

Aug-19-2014 PT Valadoo Indonesia PT. Cipta Buru Sukses - - - -

Aug-19-2014 Kirusa, Inc. Saya Mobile Ltd - - - -

Aug-19-2014 FashionQlub BV shopVIP BV - - - -

Aug-20-2014 VMware, Inc. (NYSE:VMW) CloudVolumes, Inc. - - - -

Aug-20-2014 - Core (NI) Limited - - - -

Aug-20-2014 TeamSnap, Inc. Easy Team Manager - - - -

Aug-20-2014 Streamworks LLC Imagewerks Marketing - - - -

Aug-20-2014 GoDaddy Inc. Mad Mimi, LLC - - - -

Aug-20-2014 Polygraph Media Offergraph, LLC - - - -

Aug-20-2014 Screen Engine LLC Screen Engine/ASI - - - -

Aug-20-2014 - Technically Compatible Ltd - - - -

Aug-20-2014 GreaterGood.com, Inc. The FamilyPet Network - - - -

Aug-20-2014 Unity Technologies, Inc. Tsugi, Inc. - - - -

Aug-21-2014 Zomato Media Private Limited Creative Web, s.r.o., Obedovat.sk - $1.0 - -

Aug-21-2014 - deep AG - - - -

Aug-21-2014 ESO Solutions, Inc. JefBar Software Services, LLC - - - -

Aug-21-2014 National Auto Auction Association, Inc. Kink or Bend LLC - - - -

Aug-21-2014 Zomato Media Private Limited Lunchtime.cz s.r.o. - $2.3 - -

Aug-21-2014 Stream Networks SIA SIA Latnet Serviss $2.7 - - -

Aug-21-2014 Host Europe WVS Limited Sign-Up Technologies Ltd. - - - -

Aug-21-2014 SkillSoft Corporation SumTotal Systems, LLC - - - -

Aug-21-2014 Ticketfly, Inc. WillCall, Inc. - - - -

Aug-21-2014 Amris Limited Zao.com, Ltd. - - - -

Aug-22-2014 S&T AG (XTRA:GRO) Echelon Corporation, Grid Operations $40.3 $6.0 0.1x -

Aug-22-2014 The Riverside Company Lexipol, LLC - - - -

Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) Mega-info Media Co.,Ltd. - $178.8 - -

Aug-22-2014 Hitcents Inc. Moonshark, Inc. - - - -

Aug-22-2014 PetHub, Inc. PetQRtag.com - - - -

Aug-22-2014 Delticom AG (XTRA:DEX) Toroleo Tyres GmbH & Co KG - - - -

Aug-22-2014 Zhejiang WHWH Industry Co., Ltd. (SHSE:600576) XTone Animation Group - $203.2 - -

Aug-22-2014 Sonata Software Limited (BSE:532221); Sonata Software North America Inc.Xyka Software Pvt. Ltd. and Controlling Stake in Rezopia, Inc. - - - -

Aug-25-2014 Evalueserve SEZ (Gurgaon) Private Limited Beyond Data GmbH - - - -

Aug-25-2014 Dynamic Signal Inc. PaperShare, Inc. - - - -

Aug-25-2014 DraftKings, Inc. StarStreet, Inc. - - - -

Aug-25-2014 Amazon.com Inc. (NasdaqGS:AMZN) Twitch Interactive, Inc. - $970.0 - -

Aug-26-2014 IM Medical Ltd. (ASX:IMI) ADX Management Pty Ltd - $0.0 - -

Aug-26-2014 Super Rewards, Inc. deal united GmbH - - - -

Aug-26-2014 Auctane LLC Finale Inventory - - - -

Aug-26-2014 Veeder-Root Company Inc. FuelQuest, Inc. - - - -

Aug-26-2014 Centurion Securities and Investment Services Pty Ltd GoConnect Limited (ASX:GCN) $0.4 - - -

Aug-26-2014 Millward Brown UK Limited InsightExpress LLC $26.4 - - -

Aug-26-2014 GroupM SAS Keyade SAS $9.2 - - -

Aug-26-2014 Mailigen Limited Leadersend ltd. - - - -

Aug-26-2014 Funding Circle USA LeapPay Inc. - - - -

Aug-26-2014 Plus Consulting, Inc. Markinson Business Solutions Pty Ltd, Saleslogix Business Operations - - - -

Aug-26-2014 Tastebuds Media Ltd. moosify Inc. - - - -

Aug-26-2014 Homeexchange.Com Inc. Only in America Home Exchange - - - -

Aug-26-2014 Automattic Inc. Parka, LLC - - - -

Aug-26-2014 The Riverside Company The Database Marketing Agency Inc. - - - -

Acquirer



Date

Announced Target

Target TTM

Revenue

($mm)

Enterprise

Value

($mm)

EV/

Revenue

EV/

EBITDA

Aug-26-2014 Google Inc. (NasdaqGS:GOOGL) ZYNC INC. - - - -

Aug-27-2014 SmartFocus SA Content Savvy Inc. - - - -

Aug-27-2014 Brazoria County Library System Gale, Inc., Gale Courses - - - -

Aug-27-2014 Tecmark Limited JDG MEDIA LTD. - - - -

Aug-27-2014 VLEX NETWORKS, S.L. Quolaw S.A. - - - -

Aug-27-2014 AAA Internet Publishing, Inc. Semlag - - - -

Aug-27-2014 SmartFocus SA TagPoints Ltd - - - -

Aug-27-2014 GL Education Group Limited The Test Factory Limited - - - -

Aug-28-2014 Monecor (London) Limited Ariel Communications Ltd - - - -

Aug-28-2014 AllOver Media, Inc. Brite Media Group LLC, Gas Station Radio - - - -

Aug-28-2014 ICube Technology Holdings Limited (SEHK:139) Jifutong Payment Company Limited - $77.4 - -

Aug-28-2014 Global Links Corp. (OTCPK:GLCO) MainStreetChamber LLC - - - -

Aug-28-2014 DNA Connect Pty Ltd. PushPull Marketing Pty Ltd - - - -

Aug-28-2014 Direct ChassisLink, Inc. REZ-1, Inc. - - - -

Aug-28-2014 Good Squire Marketing, Inc. Social FlyWay - - - -

Aug-28-2014 Alternative Energy & Environmental Solutions, Inc.

(OTCBB:ALNE)Zaycon Foods LLC - - - -

Aug-29-2014 Iponweb Limited Adternity GmbH - - - -

Aug-29-2014 Affle Holdings Private Limited AppStudioz Technologies Pvt. Ltd. $1.0 - - -

Aug-29-2014 Intema Solutions Inc. (TSXV:ITM) Cabestan-Canada, Portfolio of Client Contracts and Related Assets - - - -

Aug-29-2014 Morpho SA Dictao Siege - - - -

Aug-29-2014 Kenyon Fraser Ltd. Gavin and Page - - - -

Aug-29-2014 - Imacom SARL - - - -

Aug-29-2014 Crowd Mobile Pty Ltd Q Limited (ASX:QXQ) $0.1 - - -

Aug-29-2014 Canon Marketing Japan Inc. (TSE:8060) AZE, Ltd. - - - -

Aug-29-2014 Zhangjiagang Chemical Machinery Co., Ltd. (SZSE:002564) Shanghai Baoku Network Technology Co Ltd - $170.9 - -

Aug-29-2014 General Word Ventures, LLC Educational Holdings, LLC - - - -

Aug-29-2014 OmniEarth Inc. IRISmaps, Inc. - - - -

Aug-29-2014 Blackbaud Inc. (NasdaqGS:BLKB) MicroEdge, LLC - $160.0 - -

Aug-29-2014 Omnitracs, LLC XRS Corporation (NasdaqCM:XRSC) $53.0 $177.5 3.4x 28.9x

Aug-29-2014 U.S. Department of Labor Global Computer Enterprises Inc., Certain Assets - $5.3 - -

Aug-29-2014 General Services Administration Global Computer Enterprises Inc., Remaining Certain Assets - $18.3 - -

Aug-29-2014 Control4 EMEA Limited Extra Vegetables Limited - $0.7 - -

Acquirer



SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG Software Index: All Categories

Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG Software Index $2,021.1 $2,002.6 $757.7 62.3% 19.2% 6.4% 3.2x 15.3x 2.9x 11.5x 3.1%

Billing & Service Management $961.5 $1,032.3 $388.9 56.3% 21.1% 8.2% 2.0x 9.8x 2.0x 9.1x 0.2%

Business Intelligence $1,570.1 $1,202.5 $508.6 77.1% 5.1% 14.2% 2.9x 18.4x 2.8x 15.0x -9.2%

Development Platforms $2,048.0 $2,002.6 $983.5 69.4% 19.2% 2.1% 2.7x 15.6x 2.8x 8.6x 4.3%

Engineering & PLM $5,113.4 $4,891.4 $1,189.0 82.9% 19.0% 6.4% 3.4x 15.8x 3.8x 11.6x 1.2%

Enterprise Resource Planning $7,049.3 $7,647.4 $2,207.7 61.3% 29.5% 2.9% 3.5x 11.8x 3.4x 10.6x 3.6%

Financial & Accounting $2,021.1 $2,481.5 $757.7 56.6% 26.0% 2.5% 3.5x 13.7x 3.3x 11.5x -5.5%

Gaming $2,587.6 $2,456.3 $2,255.7 63.0% 15.6% 0.2% 1.4x 12.2x 1.4x 8.8x 26.5%

Healthcare $1,196.1 $1,527.7 $568.1 54.0% 14.1% 1.1% 2.2x 15.3x 2.1x 10.7x 3.4%

IT Conglomerates $185,011.5 $170,928.5 $86,833.0 61.3% 34.5% 2.2% 3.6x 9.7x 3.1x 8.3x 10.8%

Mobile Solutions/Content $709.6 $609.7 $319.3 58.9% -0.3% 21.1% 2.8x 20.5x 1.9x 12.5x 3.1%

Networking & Network Performance Management $1,279.3 $1,142.6 $243.7 69.2% 4.0% 8.5% 2.5x 21.0x 2.3x 10.0x -2.7%

Security $1,099.4 $1,008.5 $208.3 76.5% 7.0% 15.2% 3.2x 12.0x 2.9x 13.9x -11.0%

Storage, Data Mgmt & Integration $9,481.2 $7,473.0 $3,347.4 70.0% 20.7% 4.2% 2.8x 10.0x 2.8x 8.2x 4.2%

Supply Chain Management & Logistics $1,611.5 $1,549.1 $277.0 62.3% 28.1% 16.4% 5.5x 19.4x 5.0x 16.7x -1.4%

Systems Management $11,537.7 $10,967.0 $2,321.3 85.5% 25.3% 15.4% 5.4x 19.7x 4.7x 12.9x 11.3%

Vertical - Finance $4,273.8 $4,540.6 $909.1 44.4% 29.3% 6.3% 4.4x 13.7x 4.1x 12.3x 4.2%

Vertical - Other $1,249.0 $1,355.7 $402.5 49.3% 10.7% 16.9% 3.7x 25.3x 3.2x 17.8x -5.9%

TTM Revenue Growth 7.1%

TTM EBITDA Growth -24.8%

TTM Earnings Growth -35.9%

Gross Profit Margin 67.9%

EBITDA Margin 18.3%

Net Income Margin -16.6%

SG&A Expenses as a % of Total Revenue 58.4%

R&D Expenses as a % of Total Revenue 19.4%

Current Ratio 2.2

Quick Ratio 2.1

Cash as Percent of Market Cap 11.6%

Avg Days Outstanding: Accounts Receivable 65

Avg Days Outstanding: Accounts Payable 29

Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 6.5%

Cash from Operations Growth (YoY) 27.2%

Cash from Investing Growth (YoY) -38.0%

Cash from Financing Growth (YoY) 82.0%

Levered FCF Growth (YoY) 33.1%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved September 2014 Monthly Flash Report

Category Name

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

SEG SW Index Software Stock Market Return: January - August 2014

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Amdocs Limited DOX $7,467.6 $6,293.0 $3,508.6 35.3% 18.3% 5.6% 1.8x 9.8x 1.7x 8.6x 16.3%

CSG Systems International, Inc. CSGS $961.5 $1,032.3 $753.3 48.5% 16.0% -0.2% 1.4x 8.6x 1.3x 6.7x -3.9%

Evolving Systems, Inc. EVOL $109.9 $97.5 $27.2 72.3% 24.6% 3.9% 3.6x 14.6x 3.0x 9.5x 0.2%

MIND C.T.I. Ltd. MNDO $59.6 $42.8 $21.6 56.3% 21.1% 16.7% 2.0x 9.4x n/a n/a 73.1%

NeuStar, Inc NSR $1,654.2 $2,201.8 $932.6 75.1% 37.6% 8.2% 2.4x 6.3x 2.3x 4.7x -40.5%

Redknee Solutions TSX:RKN $364.0 $314.2 $254.2 49.8% 1.2% 156.4% 1.2x 101.7x 1.2x 9.8x -44.0%

Synchronoss Technologies, Inc. SNCR $1,846.2 $1,775.0 $388.9 58.9% 25.7% 27.8% 4.6x 17.7x 3.6x 10.8x 48.7%

Median: $961.5 $1,032.3 $388.9 56.3% 21.1% 8.2% 2.0x 9.8x 2.0x 9.1x 0.2%





EBITDA Margin 21.1%

Net Income Margin 11.7%



Current Ratio 2.7

Quick Ratio 2.5






Cash from Operations Growth (YoY) -5.4%


Cash from Financing Growth (YoY) -0.4%

Levered FCF Growth (YoY) -7.6%





-20%

-15%

-10%

-5%

0%

5%

10%

15%

Billing and Service Management Software Stock Market Return: January - August 2014

Billing & Service Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Actuate Corporation BIRT $205.9 $146.9 $115.3 85.0% 2.2% -16.2% 1.3x 58.9x 1.5x n/a -41.7%

MicroStrategy Incorporated MSTR $1,570.1 $1,202.5 $587.6 77.1% 5.1% 4.9% 2.0x 40.2x 2.0x 23.9x 12.5%

Pegasystems Inc. PEGA $1,694.1 $1,477.8 $558.8 68.8% 14.4% 16.7% 2.6x 18.4x 2.3x 15.0x -9.2%

Progress Software Corporation PRGS $1,173.3 $946.7 $323.9 90.8% 29.3% -0.8% 2.9x 10.0x 2.8x 7.8x -9.3%

PROS Holdings PRO $741.7 $713.8 $161.0 69.0% -0.6% 22.1% 4.4x n/a 3.4x 19.8x -34.9%

Qlik Technologies QLIK $2,538.6 $2,283.5 $508.6 86.3% 1.7% 18.8% 4.5x 270.0x 3.9x 51.2x 12.3%

Varonis Systems, Inc. VRNS $583.0 $462.8 $86.3 90.5% -14.0% 38.0% 5.4x n/a 4.2x n/a -45.9%

Verisk VRSK $10,686.0 $11,538.2 $1,661.8 59.8% 45.4% 14.2% 6.9x 15.3x 6.2x 13.3x -1.4%

Teradata NYSE:TDC $7,078.9 $6,369.9 $2,739.0 54.5% 23.2% 3.6% 2.3x 10.0x 2.2x 7.6x 2.1%

Median: $1,570.1 $1,202.5 $508.6 77.1% 5.1% 14.2% 2.9x 18.4x 2.8x 15.0x -9.2%


TTM EBITDA Growth 5.3%



EBITDA Margin 5.1%




Current Ratio 1.9

Quick Ratio 1.8














-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Business Intelligence Software Stock Market Return: January - August 2014

Business Intelligence S&P NASDAQ SEG SW Index

SEG Software Index Category: Development Platforms


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Actuate Corporation BIRT $205.9 $146.9 $115.3 85.0% 2.2% -16.2% 1.3x 58.9x 1.5x n/a -41.7%

Adobe Systems Incorporated ADBE $35,761.3 $33,937.3 $4,105.1 85.4% 18.2% -3.5% 8.3x 45.4x 7.7x 26.2x 21.3%

BSQUARE Corporation BSQR $44.1 $20.0 $95.2 16.6% 0.3% 1.2% 0.2x 83.6x n/a n/a 4.7%

Compuware Corporation CPWR $2,058.3 $1,798.7 $714.5 67.7% 12.0% 6.9% 2.5x 21.0x 2.5x 8.6x -14.1%

Magic Software Enterprises Ltd. MGIC $317.8 $232.5 $158.4 40.4% 19.2% 16.0% 1.5x 7.6x 1.3x n/a 3.9%

Microsoft Corporation MSFT $374,336.3 $312,610.3 $86,833.0 69.0% 37.0% 11.5% 3.6x 9.7x 3.1x 9.0x 24.8%

Oracle Corporation ORCL $185,011.5 $170,928.5 $38,275.0 61.3% 43.7% 2.9% 4.5x 10.2x 4.3x 8.3x 10.8%

Progress Software Corporation PRGS $1,173.3 $946.7 $323.9 90.8% 29.3% -0.8% 2.9x 10.0x 2.8x 7.8x -9.3%

Red Hat, Inc. RHT $11,519.7 $10,716.5 $1,595.1 84.9% 19.2% 15.8% 6.7x 35.0x 5.8x 21.3x 9.1%

Software AG XTRA:SOW $2,037.7 $2,206.5 $1,252.5 69.8% 23.6% -8.2% 1.8x 7.5x 2.0x 7.1x -22.8%

Median: $2,048.0 $2,002.6 $983.5 69.4% 19.2% 2.1% 2.7x 15.6x 2.8x 8.6x 4.3%





EBITDA Margin 19.2%




Current Ratio 2.0

Quick Ratio 1.9














-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Development Platforms Software Stock Market Return: January - August 2014

Development Platforms S&P NASDAQ SEG SW Index

SEG Software Index Category: Engineering & PLM


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

ANSYS, Inc. ANSS $7,480.9 $6,697.3 $896.3 87.4% 46.5% 8.0% 7.5x 16.1x 6.7x 13.7x -5.5%

Autodesk, Inc. ADSK $12,160.2 $11,000.6 $2,371.4 87.1% 15.3% 3.7% 4.6x 30.3x 4.4x 22.4x 8.9%

Cadence Design Systems, Inc CDNS $5,113.4 $4,891.4 $1,500.7 85.3% 19.0% 7.1% 3.3x 17.2x 3.0x 8.9x 25.8%

Cimatron Ltd. CIMT $69.7 $49.3 $45.8 86.7% 15.2% 6.4% 1.1x 7.1x 1.0x n/a -29.6%

Dassault Systèmes DSY $16,723.8 $15,479.4 $2,899.4 86.8% 28.6% 2.3% 5.3x 18.7x 4.8x 15.0x 8.6%

GSE Systems Inc. GVP $30.1 $11.9 $41.1 28.1% -10.4% -16.2% 0.3x n/a n/a n/a 3.7%

Mentor Graphics Corp MENT $2,484.5 $2,554.6 $1,189.0 82.9% 19.1% 10.1% 2.1x 11.3x 2.0x 8.1x -7.5%

Parametric Technology Corporation PTC $4,538.7 $4,549.5 $1,335.1 72.3% 23.7% 4.8% 3.4x 14.4x 3.3x 11.6x 11.5%

PDF Solutions Inc PDFS $616.2 $509.3 $104.3 63.0% 35.4% 9.5% 4.9x 13.8x 4.2x 9.3x -20.3%

Stratasys, Inc. SSYS $5,930.3 $5,352.4 $610.1 50.5% 14.6% 88.0% 8.8x 60.0x 6.0x 25.0x -10.5%

Synopsys Inc SNPS $6,373.3 $5,552.7 $2,023.3 82.5% 17.8% 5.8% 2.7x 15.4x 2.6x 8.4x 1.2%

Median: $5,113.4 $4,891.4 $1,189.0 82.9% 19.0% 6.4% 3.4x 15.8x 3.8x 11.6x 1.2%



TTM Earnings Growth 20.2%


EBITDA Margin 19.0%




Current Ratio 2.0

Quick Ratio 1.9














-15%

-10%

-5%

0%

5%

10%

15%Engineering & PLM Software Stock Market Return: January - August 2014

Engineering & PLM S&P NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

American Software, Inc. AMSW.A $259.9 $199.3 $102.1 56.9% 15.9% 4.4% 2.0x 12.3x 1.8x 9.3x -4.4%


QAD Inc. QADA $316.7 $256.7 $280.7 55.7% 5.7% 10.3% 0.9x 16.1x 0.9x 11.3x 23.4%

Sage Group plc LSE:SGE $7,049.3 $7,647.4 $2,207.7 94.3% 29.5% -3.7% 3.5x 11.7x 3.4x 11.4x 3.6%

SAP DB:SAP $93,044.6 $94,493.4 $23,274.7 72.4% 34.5% 2.2% 4.1x 11.8x 4.0x 10.6x -5.9%

Median: $7,049.3 $7,647.4 $2,207.7 61.3% 29.5% 2.9% 3.5x 11.8x 3.4x 10.6x 3.6%





EBITDA Margin 29.5%




Current Ratio 1.2

Quick Ratio 1.0







Cash from Investing Growth (YoY) 35.8%







-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%Enterprise Resource Planning Software Stock Market Return: January - August 2014

Enterprise Resource Planning S&P NASDAQ SEG SW Index

SEG Software Index Category: Financial & Accounting


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

ACI Worldwide, Inc. ACIW $2,221.1 $2,925.9 $973.4 56.8% 21.7% 30.3% 3.0x 13.9x 2.6x 9.9x -7.3%

Bottomline Technologies EPAY $1,112.9 $1,070.3 $300.6 56.6% 11.1% 18.0% 3.6x 32.1x 3.2x 14.2x -19.5%

DST Systems, Inc. DST $3,687.6 $4,276.1 $2,682.4 17.0% 15.8% 2.0% 1.6x 10.1x 2.1x 8.9x 4.0%

Evertec EVTC $1,810.7 $2,481.5 $359.1 56.9% 41.7% 2.2% 6.9x 16.6x 6.5x 13.0x -7.5%

Fair Isaac Corporation FICO $1,870.1 $2,307.0 $757.7 69.0% 26.0% 2.5% 3.0x 11.7x 2.9x 11.4x -5.5%

Fiserv FISV $16,067.1 $19,586.1 $4,951.0 43.3% 29.3% 7.6% 4.0x 13.5x 3.8x 11.5x 10.8%

Intuit Inc INTU $23,613.7 $22,198.7 $4,506.0 85.8% 33.0% 8.0% 4.9x 14.9x 5.1x 17.4x 10.3%

Model N, Inc MODN $229.7 $126.5 $89.2 54.1% -11.6% -8.3% 1.4x n/a 1.5x n/a -18.6%

NetSol Technologies Inc. KASE:NETSOL $21.3 $23.3 $25.9 33.1% 15.2% -17.9% 0.9x 5.9x n/a n/a 26.5%

Sage Group plc LSE:SGE $7,049.3 $7,647.4 $2,207.7 94.3% 29.5% -3.7% 3.5x 11.7x 3.4x 11.4x 3.6%

Qiwi plc QIWI $2,021.1 $1,626.4 $382.8 48.1% 27.5% 26.3% 4.2x 15.4x 6.6x 12.4x -31.4%

Median: $2,021.1 $2,481.5 $757.7 56.6% 26.0% 2.5% 3.5x 13.7x 3.3x 11.5x -5.5%





EBITDA Margin 26.0%




Current Ratio 1.3

Quick Ratio 1.0














-15%

-10%

-5%

0%

5%

10%

15%

Financial & Accounting Software Stock Market Return: January - August 2014

Financial & Accounting S&P NASDAQ SEG SW Index

SEG Software Index Category: Gaming


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Activision Blizzard ATVI $16,889.5 $17,006.5 $4,289.0 65.1% 27.2% -13.9% 4.0x 14.6x 3.5x 10.3x 31.5%

Electronic Arts Inc. EA $11,829.3 $10,099.3 $3,840.0 60.9% 9.5% 1.3% 2.6x 27.6x 2.4x 10.8x 65.7%

GameLoft SA ENXTPA:GFT $545.6 $466.3 $322.0 82.7% 12.0% 5.7% 1.4x 12.1x 1.4x 8.3x -40.9%

Konami Corporation TSE: 9766 $3,212.7 $3,128.8 $2,178.1 30.2% 11.6% -0.8% 1.4x 12.3x 1.3x 9.2x 0.9%

Take-Two Interactive TTWO $1,962.4 $1,580.4 $2,333.3 41.1% 19.3% 106.3% 0.7x 3.5x 1.0x 8.1x 34.1%

Ubisoft Entertainment ENXTPA:UBI $1,764.3 $1,783.8 $1,387.6 71.7% 32.9% -19.8% 1.3x 3.9x 0.9x 2.3x 21.5%

Median: $2,587.6 $2,456.3 $2,255.7 63.0% 15.6% 0.2% 1.4x 12.2x 1.4x 8.8x 26.5%





EBITDA Margin 15.6%




Current Ratio 3.2

Quick Ratio 2.4














-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Gaming Software Stock Market Return: January - August 2014

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Accretive Health AH $14,472.4 $15,789.7 $43,570.6 26.6% 6.5% -3.1% 0.4x 5.5x 0.4x 5.6x 0.3%

Allscripts Healthcare Solutions Inc. MDRX $2,661.9 $3,181.7 $1,372.7 46.0% 2.1% -2.2% 2.3x 108.1x 2.2x 12.8x -4.0%

Cerner Corporation CERN $19,665.2 $18,831.8 $3,074.9 84.8% 26.2% 13.4% 6.1x 23.4x 5.2x 15.1x 4.7%

Computer Programs and Sys, Inc. CPSI $688.7 $664.7 $203.2 47.1% 27.9% 3.7% 3.3x 11.7x 3.1x 10.6x 4.1%

MedAssets MDAS $1,382.3 $2,172.0 $683.1 76.9% 29.6% 1.8% 3.2x 10.7x 3.0x 8.9x 17.5%

Merge Healthcare MRGE $248.8 $456.6 $215.6 59.4% 13.4% -12.3% 2.1x 15.8x 2.1x 10.8x 2.8%

Omnicell, Inc. OMCL $1,009.8 $883.4 $406.6 53.9% 14.7% 14.4% 2.2x 14.7x 2.0x 10.2x 12.3%

Quality Systems, Inc. QSII $943.1 $826.6 $453.0 54.0% 11.3% 0.3% 1.8x 16.1x 1.7x 10.8x -22.9%

Median: $1,196.1 $1,527.7 $568.1 54.0% 14.1% 1.1% 2.2x 15.3x 2.1x 10.7x 3.4%





EBITDA Margin 14.1%




Current Ratio 1.6

Quick Ratio 1.4














-10%

-5%

0%

5%

10%

15%

20%

Healthcare Software Stock Market Return: January - August 2014

Healthcare S&P NASDAQ SEG SW Index

SEG Software Index Category: IT Conglomerates


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Hewlett Packard HPQ $71,111.4 $76,863.4 $112,179.0 23.7% 11.8% -0.8% 0.7x 5.8x 0.7x 5.9x 38.7%

IBM IBM $191,836.9 $228,717.9 $98,267.0 49.1% 25.6% -4.0% 2.3x 9.1x 2.3x 8.1x 5.4%



SAP AG DB:SAP $93,044.6 $94,493.4 $23,274.7 72.4% 34.5% 2.2% 4.1x 11.8x 4.0x 10.6x -5.9%

Median: $185,011.5 $170,928.5 $86,833.0 61.3% 34.5% 2.2% 3.6x 9.7x 3.1x 8.3x 10.8%





EBITDA Margin 34.5%




Current Ratio 1.2

Quick Ratio 0.9














-10%

-5%

0%

5%

10%

15%

IT Conglomerates Software Stock Market Return: January - August 2014

IT Conglomerates S&P NASDAQ SEG SW Index

SEG Software Index Category: Mobile Solutions/Content


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Bango PLC BGO $79.5 $71.8 $14.6 23.5% -51.5% -13.7% 4.9x n/a n/a n/a -23.3%

King Digital Entertainment KING $4,409.1 $3,576.9 $2,423.2 68.8% 36.3% 213.8% 1.5x 4.1x 1.7x 4.2x -27.4%

Glu Mobile, Inc. GLUU $496.8 $425.4 $142.1 69.5% -2.4% 40.0% 3.0x n/a 1.7x 16.2x 32.3%

Gree TSE:3632 $1,851.4 $1,326.9 $1,240.0 76.6% 33.4% -17.5% 1.1x 3.2x 1.3x 5.2x -19.7%

Millennial Media Inc MM $255.9 $163.5 $292.7 39.8% -4.7% 38.2% 0.6x n/a 0.5x n/a -65.3%

MobileIron, Inc. MOBL $879.3 $724.0 $114.3 82.5% -40.7% n/a 6.3x n/a 5.2x n/a 5.2%

Myriad Group AG MYRN $459.5 $459.2 $43.2 29.0% -16.0% -23.3% 10.6x n/a n/a n/a 232.9%

NQ Mobile Inc. NQ $349.0 $247.7 $196.7 58.9% 0.7% 114.3% 1.3x 169.8x 0.8x 2.7x -59.3%

Opera OB:OPERA $2,060.1 $2,003.7 $352.6 43.1% 24.5% 39.9% 5.7x 23.2x 3.3x 13.2x 6.1%

Qihoo 360 Technology Co. Ltd QIHU $11,060.2 $10,941.5 $992.6 82.6% 26.6% 121.3% 11.0x 41.5x 6.6x 17.7x 7.3%

Pandora Media P $5,583.4 $5,259.2 $799.8 43.5% -1.4% n/a 6.6x n/a 5.0x 65.2x 1.0%

Synchronoss Technologies, Inc. SNCR $1,846.2 $1,775.0 $388.9 58.9% 25.7% 27.8% 4.6x 17.7x 3.6x 10.8x 48.7%

Tangoe TNGO $539.8 $495.4 $200.7 54.5% 7.2% 14.4% 2.5x 34.2x 2.1x 12.5x -22.9%

TeleCommunication Systems TSYS $177.5 $250.1 $346.0 40.6% 7.4% -24.8% 0.7x 9.7x 0.7x 6.3x 29.0%

TeleNav TNAV $271.9 $135.0 $150.3 59.5% -15.7% -21.6% 0.9x n/a 0.8x n/a 6.8%

Zynga, Inc ZNGA $2,593.5 $1,866.3 $700.2 68.4% -2.5% -37.6% 2.7x n/a 2.4x 20.7x -26.7%

Median: $709.6 $609.7 $319.3 58.9% -0.3% 21.1% 2.8x 20.5x 1.9x 12.5x 3.1%





EBITDA Margin -0.3%




Current Ratio 3.3

Quick Ratio 2.9














-20%

-15%

-10%

-5%

0%

5%

10%

15%

Mobile Solutions/Content Software Stock Market Return: January - August 2014

Mobile Solutions/Content S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

A10 Networks, Inc. ATEN $697.4 $585.3 $172.9 76.7% -1.7% n/a 3.4x n/a 2.8x n/a -28.1%

Allot Communications Ltd. ALLT $359.8 $236.1 $107.7 71.6% 3.4% 8.3% 2.2x 64.0x 1.9x 12.3x -27.6%

Aruba Networks, Inc. ARUN $2,321.5 $2,036.6 $728.9 69.2% 4.0% 21.5% 2.8x 69.1x 2.4x 10.0x 23.3%

Barracuda Networks, Inc. CUDA $1,279.3 $1,142.6 $243.7 77.4% 1.6% 16.5% 4.7x 289.0x 4.1x 15.4x -33.1%

Brocade Communications Systems, Inc.BRCD $4,564.6 $4,012.5 $2,205.7 65.8% 26.2% -1.6% 1.8x 6.9x 1.8x 6.4x 20.1%

Cisco Systems, Inc. CSCO $128,016.0 $96,851.0 $47,142.0 58.9% 25.4% -3.0% 2.1x 8.1x 2.0x 6.0x 15.4%

Cyan, Inc. CYNI $177.2 $142.7 $102.0 40.3% -49.9% -12.5% 1.4x n/a 1.2x n/a -27.8%

Compuware Corporation CPWR $2,058.3 $1,798.7 $714.5 67.7% 12.0% 6.9% 2.5x 21.0x 2.5x 8.6x -14.1%

F5 Networks, Inc. FFIV $9,200.5 $8,589.1 $1,662.1 82.3% 30.8% 14.7% 5.2x 16.8x 4.5x 12.0x 55.3%

Gigamon, LLC GIMO $348.3 $213.5 $148.7 77.6% -22.2% 28.4% 1.4x n/a 1.5x n/a -60.9%

Juniper Networks, Inc. JNPR $10,463.0 $9,191.6 $4,858.8 62.7% 17.6% 8.7% 1.9x 10.7x 1.9x 6.9x 3.6%

Mavenir Systems, Inc. MVNR $323.1 $323.3 $115.1 54.4% -4.1% 40.3% 2.8x n/a 2.3x n/a 1.2%

Radware Ltd. RDWR $780.4 $615.5 $205.1 81.3% 13.5% 8.4% 3.0x 22.2x 2.7x 13.1x -2.7%

Riverbed Technology, Inc. RVBD $3,009.0 $3,101.8 $1,074.4 73.6% 16.2% 12.9% 2.9x 17.9x 2.6x 9.2x 4.6%

Median: $1,279.3 $1,142.6 $243.7 69.2% 4.0% 8.5% 2.5x 21.0x 2.3x 10.0x -2.7%





EBITDA Margin 4.0%




Current Ratio 2.7

Quick Ratio 2.2














September 2014 Monthly Flash Report

-15%

-10%

-5%

0%

5%

10%

15%

Networking/Network Performance Mgmt Software Stock Market Return: January - August 2014

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

AVG Technologies N.V. AVG $919.4 $874.3 $383.6 83.1% 33.6% -3.0% 2.3x 6.8x 2.3x 6.1x -14.0%

Barracuda Networks, Inc. CUDA $1,279.3 $1,142.6 $243.7 77.4% 1.6% 16.5% 4.7x 289.0x 4.1x 15.4x -33.1%

Check Point Software Tech Ltd. CHKP $13,549.9 $12,316.4 $1,436.0 88.4% 54.7% 5.3% 8.6x 15.7x 8.1x 13.9x 10.3%

A10 Networks, Inc. ATEN $697.4 $585.3 $172.9 76.7% -1.7% n/a 3.4x n/a 2.8x n/a -28.1%

Cyren CYRN $76.2 $78.4 $32.6 76.2% -13.7% 15.2% 2.4x n/a 2.2x n/a -18.5%

Fortinet Inc. FTNT $4,227.0 $3,668.9 $685.1 70.3% 12.5% 20.0% 5.4x 42.9x 4.7x 23.2x 35.7%

Guidance Software, Inc. GUID $229.0 $210.4 $108.8 67.0% -9.2% -14.1% 1.9x n/a 1.8x 28.5x -21.8%

Imperva IMPV $771.3 $671.8 $147.8 77.9% -28.7% 25.2% 4.5x n/a 3.8x n/a -40.1%

Palo Alto Networks, Inc PANW $6,550.8 $6,182.8 $598.2 73.3% -9.2% 51.0% 10.3x n/a 8.5x 64.3x 52.7%

Proofpoint, Inc. PFPT $1,491.9 $1,423.8 $164.4 68.4% -14.8% 39.0% 8.7x n/a 6.9x n/a 23.1%

Sourcefire, Inc. FIRE $17.8 $18.6 $20.7 36.2% 12.7% 43.9% 0.9x 7.1x n/a n/a -19.8%

Symantec Corporation SYMC $16,764.6 $14,810.6 $6,702.0 83.5% 29.0% -3.5% 2.2x 7.6x 2.2x 6.3x 5.6%

Trend Micro TSE:4704 $4,321.1 $3,216.6 $1,094.2 83.0% 35.1% 9.8% 2.9x 8.4x 2.9x 8.6x -8.1%

VASCO Data Security International VDSI $579.6 $456.3 $168.9 65.0% 13.3% 14.3% 2.7x 20.3x 2.6x 12.7x 94.6%

Median: $1,099.4 $1,008.5 $208.3 76.5% 7.0% 15.2% 3.2x 12.0x 2.9x 13.9x -11.0%





EBITDA Margin 7.0%




Current Ratio 1.9

Quick Ratio 1.6














-10%

-5%

0%

5%

10%

15%

Security Software Stock Market Return: January - August 2014

Security S&P NASDAQ SEG SW Index

SEG Software Index Category: Storage, Data Management & Integration


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Brocade Communications Systems, Inc.BRCD $4,564.6 $4,012.5 $2,205.7 65.8% 26.2% -1.6% 1.8x n/a 1.8x 6.4x 20.1%

CA, Inc. CA $12,568.5 $11,217.5 $4,489.0 85.5% 31.7% -1.6% 2.5x 7.9x 2.6x 6.6x -12.6%

Cisco Systems, Inc. CSCO $128,016.0 $96,851.0 $47,142.0 58.9% 25.4% -3.0% 2.1x 8.1x 2.0x 6.0x 15.4%

CommVault Systems, Inc. CVLT $2,498.7 $2,100.2 $604.6 87.2% 17.1% 16.5% 3.5x 20.3x 3.0x 12.2x -25.6%

EMC EMC $59,906.3 $59,286.3 $23,580.0 62.2% 23.1% 5.7% 2.5x 10.9x 2.3x 7.9x 19.2%

FalconStor Software, Inc. FALC $61.5 $40.4 $52.7 76.5% -9.2% -23.5% 0.8x n/a n/a n/a 3.0%

IBM IBM $191,836.9 $228,717.9 $98,267.0 49.1% 25.6% -4.0% 2.3x 9.1x 2.3x 8.1x 5.4%

Informatica Corporation INFA $3,746.1 $3,059.9 $1,005.2 83.0% 18.4% 16.6% 3.0x 16.6x 2.8x 10.7x -16.4%


NetApp, Inc. NTAP $13,459.8 $9,389.7 $6,298.1 62.7% 16.4% -1.7% 1.5x 9.1x 1.5x 6.5x 5.6%


Splunk, Inc. SPLK $6,394.0 $5,556.3 $366.0 86.7% -40.8% 51.6% 15.2x n/a 11.4x 254.9x -24.5%

TIBCO Software Inc. TIBX $3,452.7 $3,419.8 $1,091.5 71.0% 18.0% 5.4% 3.1x 17.4x 3.1x 12.7x -9.9%

Varonis Systems, Inc. VRNS $583.0 $462.8 $86.3 90.5% -14.0% 38.0% 5.4x n/a 4.2x n/a -45.9%

Median: $9,481.2 $7,473.0 $3,347.4 70.0% 20.7% 4.2% 2.8x 10.0x 2.8x 8.2x 4.2%





EBITDA Margin 20.7%




Current Ratio 2.4

Quick Ratio 2.2















-15%

-10%

-5%

0%

5%

10%

15%

Storage, Data Management & Integration Software Stock Market Return: January - August 2014

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

SEG Software Index Category: Supply Chain Management & Logistics


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

American Software, Inc. AMSW.A $259.9 $199.3 $102.1 56.9% 15.9% 4.4% 2.0x 12.3x 1.8x 9.3x -4.4%

Aspen Technology, Inc. AZPN $3,750.3 $3,483.1 $391.5 86.5% 34.0% 25.7% 8.9x 26.2x 7.9x 19.3x -1.1%

Manhattan Associates, Inc. MANH $2,168.7 $2,067.3 $451.5 57.0% 27.4% 15.7% 4.6x 16.7x 4.2x 14.2x -1.8%

The Descartes Systems Group Inc. TSX:DSG $1,054.4 $1,030.8 $162.6 67.6% 28.7% 17.2% 6.3x 22.1x 5.8x 19.3x 6.5%

Median: $1,611.5 $1,549.1 $277.0 62.3% 28.1% 16.4% 5.5x 19.4x 5.0x 16.7x -1.4%





EBITDA Margin 28.1%




Current Ratio 2.3

Quick Ratio 2.1














-10%

-5%

0%

5%

10%

15%

Supply Chain Management & Logistics Software Stock Market Return: January - August 2014

Supply Chain Management & Logistics S&P NASDAQ SEG SW Index

SEG Software Index Category: Systems Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

CA Technologies CA $12,568.5 $11,217.5 $4,489.0 85.5% 31.7% -1.6% 2.5x 7.9x 2.6x 6.6x -12.6%

Citrix Systems, Inc. CTXS $11,555.7 $12,012.6 $3,047.5 85.5% 23.8% 9.4% 3.9x 16.6x 3.6x 12.0x 12.4%

Netscout Systems, Inc. NTCT $1,891.3 $1,713.4 $422.7 78.7% 24.6% 18.7% 4.1x 16.5x 3.7x 12.7x 59.7%

Red Hat, Inc. RHT $11,519.7 $10,716.5 $1,595.1 84.9% 19.2% 15.8% 6.7x 35.0x 5.8x 21.3x 9.1%

SolarWinds, Inc. SWI $3,226.1 $3,063.9 $382.4 90.3% 35.2% 29.3% 8.0x 22.8x 6.6x 13.1x 13.2%

VMWare, Inc. VMW $42,400.5 $37,263.5 $5,589.0 85.8% 26.0% 15.0% 6.7x 25.6x 5.8x 15.5x 10.1%

Median: $11,537.7 $10,967.0 $2,321.3 85.5% 25.3% 15.4% 5.4x 19.7x 4.7x 12.9x 11.3%





EBITDA Margin 25.3%




Current Ratio 1.2

Quick Ratio 1.1














-10%

-5%

0%

5%

10%

15%

Systems Management Software Stock Market Return: January - August 2014

Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Finance


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Advent Software, Inc. ADVS $1,665.8 $1,904.5 $391.5 71.5% 24.1% 5.6% 4.9x 20.2x 4.6x 15.0x -5.4%

Broadridge Financial BR $5,085.0 $5,261.4 $2,558.0 31.1% 20.4% 5.2% 2.1x 10.1x 2.0x 9.2x 9.4%

Fidessa LSE:FDSA $1,434.4 $1,338.6 $473.5 20.7% 18.8% 0.1% 2.8x 15.1x 2.8x 11.4x 6.8%

Jack Henry & Associates, Inc. JKHY $4,768.3 $4,707.0 $1,210.1 42.9% 34.5% 7.1% 3.9x 11.3x 3.6x 10.5x 0.2%

MSCI, Inc. MSCI $5,377.0 $5,491.7 $1,081.7 68.1% 41.2% 16.3% 5.1x 12.3x 5.3x 13.5x 6.9%

SS&C Corporation SSNC $3,779.4 $4,374.1 $736.6 45.9% 39.0% 7.1% 5.9x 15.2x 5.5x 13.2x 1.6%

Median: $4,273.8 $4,540.6 $909.1 44.4% 29.3% 6.3% 4.4x 13.7x 4.1x 12.3x 4.2%





EBITDA Margin 29.3%




Current Ratio 1.4

Quick Ratio 1.2















-15%

-10%

-5%

0%

5%

10%

15%

Vertical - Finance Software Stock Market Return:January - August 2014

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Blackbaud, Inc. BLKB $1,756.4 $1,904.2 $529.7 52.7% 19.6% 9.5% 3.6x 18.4x 3.3x 15.8x 5.3%

Constellation TSX:CSU $5,259.9 $5,592.2 $1,466.9 32.3% 9.8% 40.8% 3.8x 38.9x 3.1x 15.6x 18.3%

EPIQ Systems, Inc. EPIQ $523.8 $807.2 $462.5 51.7% 13.2% 21.7% 1.7x 13.2x 1.5x 7.4x -6.5%

Guidewire Software, Inc. GWRE $3,122.8 $2,692.4 $350.2 57.5% 7.2% 16.5% 7.7x 107.0x 7.3x 40.6x -5.4%

PROS Holdings PRO $741.7 $713.8 $161.0 69.0% -0.6% 22.1% 4.4x n/a 3.4x 19.8x -34.9%

Sapiens International SPNS $386.3 $340.9 $146.1 36.6% 11.6% 16.6% 2.3x 20.2x 2.0x 15.0x 9.4%

Silver Spring Networks, Inc. SSNI $502.8 $379.0 $255.5 32.0% -22.7% 3.5% 1.5x n/a 1.1x 24.0x -49.9%

Tyler Technologies, Inc. TYL $2,925.5 $2,836.6 $454.8 46.9% 20.5% 17.2% 6.2x 30.4x 5.5x 21.1x -12.1%

Median: $1,249.0 $1,355.7 $402.5 49.3% 10.7% 16.9% 3.7x 25.3x 3.2x 17.8x -5.9%





EBITDA Margin 10.7%




Current Ratio 1.5

Quick Ratio 1.2














-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Vertical - Other Software Stock Market Return: January - August 2014

Vertical - Other S&P NASDAQ SEG SW Index


SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG SaaS Index: All Categories

Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG SaaS Index $948.5 $848.4 $153.3 65.2% -8.1% 27.3% 6.3x 57.4x 5.0x 29.9x -12.1%

CRM & Marketing $988.4 $848.4 $173.8 70.2% 0.1% 29.6% 3.3x 112.9x 2.8x 31.1x -6.0%

ERP & Supply Chain $908.2 $771.7 $115.0 68.0% -8.1% 30.2% 5.7x 68.9x 5.0x 27.5x -14.0%

Vertically Focused $1,041.0 $922.5 $169.8 63.8% 8.7% 30.1% 6.9x 41.4x 5.4x 23.1x -5.5%

Workforce Management $1,562.9 $1,514.0 $170.8 61.7% -14.2% 35.9% 8.9x 61.3x 6.8x 104.1x -20.0%

SaaS Other $855.1 $788.3 $153.3 64.0% -13.7% 20.4% 4.6x 41.6x 3.9x 25.6x -15.8%





EBITDA Margin -8.1%




Current Ratio 2.2

Quick Ratio 2.1











Category Name




-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

SEG SaaS Index Stock Market Return: January - August 2014

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Bazaarvoice, Inc BV $569.7 $524.0 $173.8 67.1% -17.4% 14.7% 3.0x n/a 2.8x n/a -6.0%

Constant Contact CTCT $988.4 $848.4 $307.1 72.3% 11.0% 14.4% 2.8x 25.1x 2.4x 12.5x 3.1%

Cvent NYSE:CVT $1,062.1 $871.7 $125.4 70.2% 4.6% 29.6% 7.0x 150.3x 5.6x 55.1x -31.7%

LivePerson LPSN $694.3 $623.0 $191.0 75.5% 4.3% 13.8% 3.3x 75.6x 2.8x 25.6x -12.1%

Marketo MKTO $1,193.9 $1,082.3 $122.0 64.3% -34.4% 63.7% 8.9x n/a 6.5x n/a 26.8%

Marin Software MRIN $290.6 $211.4 $88.6 62.5% -30.5% 30.5% 2.4x n/a 2.0x n/a -17.9%

Salesforce.com CRM $36,576.7 $38,079.3 $4,766.6 76.0% 0.1% 37.3% 8.0x 12236.3x 6.4x 36.6x 7.7%

Median: $988.4 $848.4 $173.8 70.2% 0.1% 29.6% 3.3x 112.9x 2.8x 31.1x -6.0%





EBITDA Margin 0.1%




Current Ratio 2.4

Quick Ratio 2.3















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

CRM & Marketing SaaS Stock Market Return: January - August 2014

CRM & Marketing S&P NASDAQ SEG SaaS

SEG SaaS Index Category: ERP & Supply Chain


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Amber Road, Inc. AMBR $378.5 $340.7 $59.8 58.3% -41.1% 30.2% 5.7x n/a 5.0x n/a -11.8%

E2open, Inc EOPN $439.4 $393.5 $74.7 62.0% -29.3% -0.5% 5.3x n/a 4.2x n/a -37.7%

Fleetmatics FLTX $1,232.3 $1,101.5 $203.6 75.3% 21.9% 35.7% 5.4x 24.8x 4.3x 14.9x -24.4%

Netsuite N $6,697.4 $6,488.0 $476.6 68.0% -8.1% 33.4% 13.6x n/a 10.4x 117.0x -14.0%

SciQuest SQI $439.3 $323.9 $99.1 69.9% 2.9% 25.8% 3.3x 112.0x 3.0x 15.2x -41.2%

SPS Commerce SPSC $908.2 $771.7 $115.0 69.0% 9.7% 24.8% 6.7x 68.9x 5.6x 39.8x -13.1%

Workday, Inc. WDAY $16,848.0 $15,510.7 $616.3 63.9% -25.2% 74.4% 25.2x n/a 16.6x n/a 11.4%

Median: $908.2 $771.7 $115.0 68.0% -8.1% 30.2% 5.7x 68.9x 5.0x 27.5x -14.0%





EBITDA Margin -8.1%




Current Ratio 2.1

Quick Ratio 2.0















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

ERP & Supply Chain SaaS Stock Market Return: January - August 2014

ERP & Supply Chain S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Vertically Focused


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

2U, Inc. TWOU $761.0 $656.3 $96.4 73.8% -32.3% n/a 6.8x n/a 5.3x n/a 35.2%

Athenahealth, Inc ATHN $5,483.5 $5,590.9 $672.1 59.4% 9.1% 36.0% 8.3x 91.2x 6.7x 38.5x 9.8%

Castlight Health, Inc. CSLT $1,068.0 $908.2 $27.7 12.4% -295.7% n/a 32.8x n/a 15.6x n/a -70.1%

DealerTrack TRAK $2,412.2 $3,005.0 $634.3 40.9% 12.0% 46.9% 4.7x 39.4x 3.2x 14.7x -7.5%

Ebix Inc. EBIX $591.9 $594.2 $204.0 80.5% 38.5% -3.5% 2.9x 7.6x 2.8x 7.1x 8.7%

Ellie Mae ELLI $1,013.9 $936.8 $135.5 73.2% 16.7% 10.6% 6.9x 41.4x 5.6x 18.7x 33.5%

Medidata Solutions MDSO $2,514.7 $2,531.7 $305.4 74.6% 8.2% 24.2% 8.3x 100.6x 6.7x 27.5x -21.1%

OPOWER, Inc. OPWR $771.0 $622.3 $108.3 66.1% -26.7% 54.4% 5.7x n/a 4.6x n/a -32.0%

RealPage RP $1,276.9 $1,262.6 $389.1 59.5% 10.8% 10.4% 3.2x 30.0x 3.0x 18.3x -28.0%

Textura Corp. TXTR $732.7 $665.8 $58.9 82.4% -23.0% n/a 11.3x n/a 8.3x 168.4x -3.8%

Q2 Holdings, Inc. QTWO $504.7 $412.7 $66.0 39.4% -24.8% n/a 6.3x n/a 4.7x n/a -2.7%

Veeva Systems Inc. VEEV $3,830.1 $3,479.9 $260.2 61.6% 20.4% 54.9% 13.4x 65.7x 10.3x 38.6x -7.3%

Median: $1,041.0 $922.5 $169.8 63.8% 8.7% 30.1% 6.9x 41.4x 5.4x 23.1x -5.5%





EBITDA Margin 8.7%




Current Ratio 2.8

Quick Ratio 2.8















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Vertically Focused SaaS Stock Market Return: January - August 2014

Vertically Focused S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Workforce Management


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Callidus Software Inc. CALD $527.6 $490.5 $124.4 60.6% -0.2% 23.6% 3.9x n/a 3.5x 31.0x -12.1%

Cornerstone OnDemand CSOD $1,999.3 $1,980.2 $222.0 71.2% -16.6% 48.8% 8.9x n/a 6.2x 178.3x -29.2%

Halogen Software, Inc. TSX:HGN $183.3 $132.0 $52.1 73.9% -11.7% 21.3% 2.5x n/a 2.1x n/a -32.3%

Paylocity Holding Corp. PCTY $1,126.6 $1,047.7 $108.7 49.6% -2.4% 40.6% 9.6x n/a 7.4x n/a -5.4%

The Ultimate Software Group, Inc. ULTI $4,154.1 $4,073.1 $458.1 59.6% 14.5% 23.7% 8.9x 61.3x 7.3x 29.9x -3.6%

Workday, Inc. WDAY $16,848.0 $15,510.7 $616.3 63.9% -25.2% 74.4% 25.2x n/a 16.6x n/a -10.8%

Median: $1,562.9 $1,514.0 $173.2 62.2% -7.0% 32.2% 8.9x 61.3x 6.8x 31.0x -11.4%





EBITDA Margin -7.0%




Current Ratio 1.4

Quick Ratio 1.3















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Workforce Management SaaS Stock Market Return: January - August 2014

Workforce Management S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Benefitfocus, Inc. BNFT $841.3 $808.0 $119.6 36.5% -30.8% 31.1% 6.8x n/a 5.3x n/a -41.1%

ChannelAdvisors ECOM $400.7 $320.6 $77.2 71.7% -30.4% 28.9% 4.2x n/a 3.3x n/a -60.5%

Concur CNQR $5,725.3 $5,583.4 $667.9 62.5% 3.3% 31.8% 8.4x 251.8x 6.9x 41.6x -0.6%

Covisint Corporation COVS $182.3 $139.1 $94.6 38.4% -43.2% 0.4% 1.5x n/a 1.5x n/a -61.8%

Demandware, Inc. DWRE $1,920.3 $1,664.5 $128.3 73.6% -13.7% 44.5% 13.0x n/a 9.5x n/a -17.9%

FireEye, Inc. FEYE $4,637.9 $4,173.4 $268.4 60.0% -103.6% 132.9% 15.6x n/a 7.9x n/a -24.3%

inContact, Inc. SAAS $557.1 $533.6 $145.5 48.4% -2.4% 19.9% 3.7x n/a 2.9x 143.6x 14.2%

IntraLinks Holdings IL $442.6 $466.1 $244.5 72.5% 3.6% 8.7% 1.9x 53.4x 1.8x 11.5x -34.5%

J2 Global JCOM $2,551.3 $2,487.3 $544.7 82.9% 41.5% 21.0% 4.6x 11.0x 3.9x 9.2x 9.4%

Jive Software, Inc JIVE $497.6 $404.8 $161.1 62.4% -35.3% 23.4% 2.5x n/a 2.2x n/a -36.1%

Liquid Holdings Group LIQD $100.3 n/a $4.5 53.9% n/a -10.9% n/a n/a n/a n/a -76.1%

Qualys, Inc. QLYS $801.6 $692.5 $119.4 77.4% 11.8% 20.4% 5.8x 48.9x 4.8x 25.6x 4.9%

RingCentral, Inc. RNG $908.5 $788.3 $188.3 62.5% -20.5% 38.5% 4.2x n/a 3.3x n/a -24.7%

Rally Software Development RALY $286.9 $209.9 $79.4 74.9% -31.3% 20.2% 2.6x n/a 2.2x n/a -40.3%

Service-now.com NOW $8,906.6 $8,658.2 $542.3 63.3% -15.5% 65.5% 16.0x n/a 10.9x 100.5x 9.8%

Tableau Software DATA $4,499.2 $3,871.9 $307.8 91.4% 5.0% 87.8% 12.6x 252.0x 9.0x 174.4x -4.3%

Tangoe TNGO $539.8 $495.4 $200.7 54.5% 7.2% 14.4% 2.5x 34.2x 2.1x 12.5x -22.9%

TrueCar, Inc. NasdaqGS: TRUE $1,588.6 $1,476.7 $172.1 90.9% -17.6% n/a 8.6x n/a 6.3x 89.7x 105.5%

Zendesk, Inc. ZEN $1,968.0 $1,846.4 $96.3 64.0% -38.2% n/a 19.2x n/a 12.8x n/a 102.5%

Zix Corporation ZIXI $228.3 $202.1 $49.3 84.1% 23.5% 6.5% 4.1x 17.5x 3.7x 15.8x -15.8%

Median: $821.5 $788.3 $153.3 63.6% -15.5% 22.2% 4.6x 48.9x 3.9x 33.6x -20.4%





EBITDA Margin -15.5%




Current Ratio 2.4

Quick Ratio 2.2















-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Other Public SaaS Companies SaaS Stock Market Return: January - August 2014

Other SaaS S&P NASDAQ SEG SaaS


SEG Software Index


SEG SaaS Index

SEG Internet Index



SEG Internet Index: All Categories

Category Name Market Cap EV

TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

SEG Internet Index $1,203.7 $1,144.2 $438.3 64.9% 8.5% 19.8% 2.5x 20.4x 2.0x 13.6x -12.5%

Ad Tech & Lead Generation $1,466.3 $1,587.3 $514.0 62.4% 6.3% 26.8% 2.0x 22.5x 1.8x 15.1x -28.4%

Commerce $488.3 $395.1 $373.7 37.9% 6.3% 14.1% 1.0x 18.2x 1.3x 12.5x -14.8%

Content & Media $2,951.0 $2,377.8 $550.6 46.0% 13.7% 10.8% 2.8x 18.2x 2.6x 12.4x -3.1%

Gaming $2,432.98 $1,879.7 $749.6 69.1% 21.0% 14.1% 2.7x 10.4x 2.3x 17.6x -22.4%

Infrastructure $643.29 $487.7 $309.3 62.4% 5.1% 9.8% 1.4x 17.1x 1.1x 11.4x -10.0%

Services $872.98 $685.9 $208.6 73.7% 7.2% 34.5% 2.6x 27.3x 2.2x 17.7x -10.2%

Social $5,940.96 $5,590.1 $867.7 63.0% 10.6% 63.7% 13.7x 33.3x 10.1x 29.1x 8.7%

Travel $5,931.84 $5,549.7 $943.7 83.0% 15.6% 22.1% 5.4x 20.7x 5.8x 18.0x 19.2%





EBITDA Margin 8.5%




Current Ratio 2.5

Quick Ratio 2.2




Working Capital to TTM Operating Expense Ratio 0.5










-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

SEG Internet Index Stock Market Return: January - August 2014

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech and Lead Generation


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Angie's List, Inc. ANGI $448.8 $407.3 $285.8 73.3% -8.2% 43.2% 1.4x n/a 1.2x 25.5x -43.5%

Baidu.com, Inc. BIDU $75,212.8 $71,572.9 $6,415.8 63.6% 38.4% 52.8% 11.2x 29.1x 7.4x 22.4x 19.2%

Bankrate, Inc. RATE $1,466.3 $1,587.3 $510.6 66.7% 23.2% 20.4% 3.1x 13.4x 2.7x 10.3x -19.5%

Conversant, Inc. CNVR $1,764.7 $1,746.1 $593.8 67.4% 33.3% 6.0% 2.9x 8.8x 2.7x 8.0x 19.2%

Coupons.com, Inc. COUP $1,186.0 $987.5 $195.5 65.4% -6.6% n/a 5.1x n/a 3.8x 31.6x -49.1%

Criteo SA CRTO $2,223.1 $1,908.9 $777.0 36.1% 7.5% 60.8% 2.5x 32.9x 4.5x 18.4x -28.4%

Google Inc. GOOGL $390,264.5 $340,276.5 $65,142.0 57.7% 29.8% 21.1% 5.2x 17.5x 4.8x 11.8x 4.6%

Groupon GRPN $4,551.5 $3,681.2 $2,872.7 52.7% 3.3% 18.9% 1.3x 39.2x 1.1x 10.8x -42.6%

InterActiveCorp IACI $5,802.9 $5,840.0 $2,977.9 70.1% 17.3% -1.4% 2.0x 11.4x 1.9x 10.1x 3.7%

LinkedIn LNKD $27,746.9 $25,385.2 $1,847.2 86.8% 10.6% 48.5% 13.7x 129.3x 10.1x 38.2x 8.7%

Marchex Inc. MCHX $367.2 $292.3 $180.4 36.9% 5.4% 30.3% 1.6x 29.9x 1.5x 16.7x -12.4%

QuinStreet QNST $209.9 $164.3 $282.5 14.4% 3.9% -7.4% 0.6x 14.7x 0.6x 10.1x -45.6%

ReachLocal, Inc. RLOC $152.0 $87.4 $514.0 49.7% -1.5% 5.5% 0.2x n/a 0.2x n/a -58.9%

Rocket Fuel, Inc. FUEL $584.1 $414.7 $315.1 49.1% -5.5% 97.4% 1.3x n/a 0.8x n/a -72.6%

The Rubicon Project, Inc. RUBI $349.3 $243.8 $99.5 82.3% -8.1% n/a 2.5x n/a 1.8x n/a -51.5%

SINA Corporation SINA $3,051.7 $1,817.3 $740.1 62.3% 9.3% 28.7% 2.5x 26.4x 2.2x 46.1x -45.5%

Sohu.com Inc. SOHU $2,272.5 $1,893.1 $1,519.2 62.4% 6.3% 23.4% 1.2x 19.8x 1.0x 45.6x -19.4%

Tree.Com, Inc. TREE $361.7 $274.1 $155.9 95.6% 7.8% 38.3% 1.8x 22.5x 1.6x 11.2x -1.9%

Tremor, Inc. TRMR $152.0 $68.2 $150.1 35.4% -9.5% 22.1% 0.5x n/a 0.4x n/a -47.4%

Yandex YNDX $9,038.6 $8,957.3 $1,335.1 70.8% 37.8% 36.2% 6.7x 17.7x 5.7x 13.6x -33.3%

YuMe YUME $172.4 $111.5 $167.9 47.6% 0.8% 26.8% 0.7x 87.8x 0.6x n/a -28.3%

Median: $1,466.3 $1,587.3 $514.0 62.4% 6.3% 26.8% 2.0x 22.5x 1.8x 15.1x -28.4%





EBITDA Margin 6.3%




Current Ratio 3.4x

Quick Ratio 3.2x


Avg Days Outstanding: Accounts Receivable 51.9x

Avg Days Outstanding: Accounts Payable 66.3x











-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Internet Ad Tech and Lead Generation Stock Market Return: January - August 2014

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Commerce


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

1-800-FLOWERS.COM, Inc. FLWS $330.0 $332.4 $756.3 41.7% 5.8% 2.8% 0.4x 7.6x 0.4x 6.0x -2.6%

58.com Inc. WUBA $3,648.7 $3,234.4 $199.7 94.9% 14.5% 86.7% 16.2x 111.8x 10.3x n/a 9.6%

Amazon.com, Inc. AMZN $156,648.7 $151,781.7 $81,759.0 28.3% 4.9% 22.3% 1.9x 37.8x 1.5x 21.2x -14.8%

Bitauto Holdings Limited BITA $3,644.7 $3,466.9 $279.4 78.9% 23.5% 43.7% 12.4x 52.7x 8.8x 29.5x 181.3%

BlueNile NILE $336.2 $297.2 $455.2 18.7% 3.6% 5.6% 0.7x 18.2x 0.6x 12.5x -38.7%

Borderfree, Inc. BRDR $441.4 $320.7 $116.6 24.3% 1.1% 17.4% 2.8x 256.2x 2.1x 32.4x -30.0%

Chegg, Inc. CHGG $578.3 $519.1 $277.6 31.7% 6.3% 16.8% 1.9x 29.7x 1.5x 254.6x -16.8%

DangDang DANG $1,116.8 $856.0 $1,156.9 18.0% 0.6% 25.6% 0.7x 133.5x 0.6x 22.2x 41.9%

Digital River Inc. DRIV $488.3 $231.4 $373.7 66.0% 9.2% -3.3% 0.6x 6.8x 0.6x 4.4x -17.0%

eBay Inc. EBAY $68,887.3 $66,839.3 $17,050.0 68.2% 29.2% 13.5% 3.9x 13.4x 3.4x 10.7x 2.9%

GeekNet GKNT $74.2 $28.9 $142.8 18.5% -1.2% 14.1% 0.2x n/a 0.2x 13.6x -38.7%

Liquidity Services, Inc. LQDT $452.1 $395.1 $506.4 37.9% 13.1% 1.5% 0.8x 6.0x 0.8x 6.7x -32.1%

Mecox Lane Limited MCOX $52.8 $44.2 $85.6 40.7% -15.4% -36.9% 0.5x n/a n/a n/a 13.1%

Mercadolibre, Inc. MELI $5,075.5 $4,869.4 $504.9 78.8% 35.9% 21.4% 9.6x 26.9x 9.2x 26.0x 11.6%

Overstock.com, Inc. OSTK $424.6 $322.7 $1,372.8 18.8% 1.3% 14.2% 0.2x 17.5x 0.2x 8.4x -40.2%

PetMed Express, Inc. PETS $284.3 $239.6 $231.7 33.4% 12.7% -0.6% 1.0x 8.2x 1.0x 8.1x -13.3%

Stamps.com STMP $533.1 $493.1 $131.2 78.8% 27.7% 6.4% 3.8x 13.6x 3.3x 11.3x -19.6%

Median: $488.3 $395.1 $373.7 37.9% 6.3% 14.1% 1.0x 18.2x 1.3x 12.5x -14.8%





EBITDA Margin 6.3%




Current Ratio 2.4x

Quick Ratio 2.1x














-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Internet Commerce Internet Stock Market Return: January - August 2014

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

AOL, Inc. AOL $3,400.1 $3,512.1 $2,430.4 28.0% 18.2% 9.9% 1.4x 8.0x 1.4x 6.6x -3.5%

DemandMedia DMD $165.4 $107.6 $372.4 41.4% 4.9% -7.6% 0.3x 5.9x 0.5x 2.8x -19.5%

InterActiveCorp IACI $5,802.9 $5,840.0 $2,977.9 70.1% 17.3% -1.4% 2.0x 11.4x 1.9x 10.1x 3.7%

Netflix NFLX $28,701.9 $27,887.5 $4,891.7 31.1% 8.5% 24.0% 5.7x 67.0x 4.5x 42.0x 31.6%

Pandora P $5,583.4 $5,259.2 $799.8 43.5% -1.4% n/a 6.6x n/a 5.0x 65.2x 1.0%

Shutterstock, Inc. SSTK $2,501.9 $2,266.0 $280.6 60.7% 16.4% 40.8% 8.1x 49.4x 6.2x 30.5x -14.7%

TheStreet.com, Inc. TST $81.3 $24.9 $57.5 48.4% -0.2% 11.7% 0.4x n/a 0.4x 9.8x 7.8%

WebMD Health Corp. WBMD $1,845.9 $2,016.9 $551.4 60.4% 18.0% 12.9% 3.7x 20.4x 3.3x 11.9x 25.3%

XO Group XOXO $314.9 $235.5 $137.3 84.6% 10.6% 4.7% 1.7x 16.1x 1.6x 12.9x -20.3%

Xunlei Limited XNET $717.2 $252.7 $174.1 42.9% 19.8% n/a 1.5x 7.3x 1.2x 4.4x -24.6%

Yahoo! Inc. YHOO $38,302.2 $36,774.4 $4,621.7 71.6% 16.7% -4.2% 8.0x 47.6x 8.5x 31.4x -2.7%

Youku YOKU $4,124.0 $2,489.5 $549.7 29.9% 11.0% 42.0% 4.5x 41.1x 3.3x 39.8x -37.7%

Median: $2,951.0 $2,377.8 $550.6 46.0% 13.7% 10.8% 2.8x 18.2x 2.6x 12.4x -3.1%





EBITDA Margin 13.7%




Current Ratio 3.0x

Quick Ratio 2.7x















-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Internet Content & Media Stock Market Return: January - August 2014

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

ChangYou.com CYOU $1,271.5 $1,151.7 $736.5 80.4% 16.5% 5.3% 1.6x 9.5x 1.5x 17.6x -25.4%

Giant Interactive GA $4.3 $8.6 $0.4 -94.2% n/a n/a 23.6x n/a n/a n/a -37.7%

Netease NTES $11,446.2 $8,464.1 $1,594.0 72.5% 47.0% 14.1% 5.3x 11.3x 4.4x 9.3x 15.7%

NCSoft KOSE:A036570 $2,849.8 $2,132.5 $762.8 69.8% 30.1% -8.4% 2.8x 9.3x 2.3x 6.6x -38.5%

Perfect World PWRD $1,042.7 $803.8 $570.2 75.5% 21.0% 30.9% 1.4x 6.7x 1.2x 7.3x 20.9%

Sohu.com Inc. SOHU $2,272.5 $1,893.1 $1,519.2 62.4% 6.3% 23.4% 1.2x 19.8x 1.0x 45.6x -19.4%

Tencent Holdings SEHK:700 $151,268.7 $148,812.5 $11,361.4 57.1% 35.4% 36.8% 13.1x 37.0x 10.6x 23.9x 25.7%

Zynga, Inc. ZNGA $2,593.5 $1,866.3 $700.2 68.4% -2.5% -37.6% 2.7x n/a 2.4x 20.7x -26.7%

Median: $2,433.0 $1,879.7 $749.6 69.1% 21.0% 14.1% 2.7x 10.4x 2.3x 17.6x -22.4%





EBITDA Margin 21.0%




Current Ratio 1.8x

Quick Ratio 1.3x














-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Internet Gaming Stock Market Return: January - August 2014

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

8x8, Inc. EGHT $689.4 $507.4 $137.3 70.5% 4.6% 27.3% 3.7x 79.8x 3.0x 31.3x -22.1%

Akamai Technologies, Inc. AKAM $10,764.6 $10,603.2 $1,761.3 68.5% 35.1% 19.9% 6.0x 17.1x 5.0x 12.0x 29.9%

Brightcove Inc. BCOV $195.9 $176.5 $120.4 66.0% -1.0% 22.8% 1.5x n/a 1.4x n/a -56.6%

BroadSoft, Inc. BSFT $684.3 $621.8 $191.3 74.0% 0.5% 12.8% 3.3x 627.4x 2.8x 16.0x -9.7%

Digital River Inc. DRIV $488.3 $231.4 $373.7 66.0% 9.2% -3.3% 0.6x 6.8x 0.6x 4.4x -17.0%

Envivio, Inc. ENVI $48.9 $4.5 $44.1 64.4% -23.4% 29.9% 0.1x n/a 0.1x n/a -48.4%

Harmonic Inc HLIT $602.3 $467.9 $460.8 47.6% 5.6% 0.8% 1.0x 18.1x 1.1x 12.3x -10.2%

Interactive Intelligence, Inc. ININ $897.9 $824.7 $328.0 61.3% 3.3% 17.4% 2.5x 77.1x 2.3x n/a -35.6%

Limelight Networks, Inc. LLNW $233.2 $126.3 $167.4 48.2% -5.6% -7.0% 0.8x n/a 0.8x n/a 19.1%

Mitel Networks Corp. MITL $996.8 $1,204.6 $776.5 54.8% 11.3% n/a 1.6x 13.8x 1.0x 7.0x 3.7%

Polycom, Inc. PLCM $1,812.5 $1,508.3 $1,344.9 57.9% 10.4% -2.0% 1.1x 10.8x 1.1x 6.7x 18.7%

Rovi Corporation ROVI $2,191.1 $2,907.2 $555.7 81.9% 35.1% 19.8% 5.2x 14.9x 5.4x 12.6x 16.5%

SeaChange International Inc. SEAC $249.1 $138.8 $127.6 51.9% -5.0% -18.6% 1.1x n/a 1.0x 25.1x -37.5%

ShoreTel, Inc. SHOR $418.9 $362.8 $339.8 59.4% 5.6% 8.4% 1.1x 19.0x 1.0x 10.8x -27.6%

Sonus Networks, Inc SONS $930.4 $815.4 $290.6 63.4% 1.6% 9.8% 2.8x 177.2x 2.6x n/a 22.4%

Synacor, Inc SYNC $55.8 $32.9 $105.4 46.0% -0.9% -9.4% 0.3x n/a 0.3x n/a -19.5%

Tucows Inc. TCX $183.2 $174.4 $138.8 26.8% 8.0% 15.5% 1.3x 15.6x 1.1x 10.6x 23.5%

VeriSign VRSN $7,135.6 $6,958.2 $988.5 81.1% 61.5% 6.3% 7.0x 11.4x 6.7x 10.2x -4.9%

Median: $643.3 $487.7 $309.3 62.4% 5.1% 9.8% 1.4x 17.1x 1.1x 11.4x -10.0%





EBITDA Margin 5.1%




Current Ratio 2.4x

Quick Ratio 2.1x














-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Internet Infrastructure Stock Market Return: January - August 2014

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Angie's List, Inc. ANGI $448.8 $407.3 $285.8 73.3% -8.2% 43.2% 1.4x n/a 1.2x 25.5x -43.5%

Bankrate RATE $1,466.3 $1,587.3 $510.6 66.7% 23.2% 20.4% 3.1x 13.4x 2.7x 10.3x -19.5%

Carbonite, Inc. CARB $286.6 $214.2 $115.9 68.4% 7.2% 20.8% 1.8x 25.8x 1.7x 17.7x -10.2%

Care.com, Inc. CRCM $287.6 $174.2 $95.3 77.4% -32.4% n/a 1.8x n/a 1.2x n/a -62.3%

eHealth, Inc. EHTH $436.0 $365.6 $189.7 97.5% 4.6% 14.4% 1.9x 41.8x 1.8x 17.8x -49.7%

Everyday Health, Inc. EVDY $442.3 $427.3 $167.1 73.0% 8.9% n/a 2.6x 28.8x 2.2x 11.7x 3.3%

GrubHub Inc. GRUB $3,030.3 $2,823.2 $203.1 74.4% 21.8% n/a 13.9x 63.7x 10.2x 36.1x 13.1%

LifeLock, Inc. LOCK $1,374.9 $1,158.9 $421.3 73.7% 5.2% 30.6% 2.8x 52.7x 2.2x 18.1x -6.0%

Monster Worldwide, Inc. MWW $512.5 $685.9 $788.1 49.6% 10.9% -6.6% 0.9x 8.0x 0.9x 7.1x -18.3%

Qihoo QIHU $11,060.2 $10,941.5 $992.6 82.6% 26.6% 121.3% 11.0x 41.5x 6.6x 17.7x 7.3%

Shutterfly SFLY $1,963.3 $1,933.7 $829.7 52.3% 9.9% 18.4% 2.3x 23.6x 2.0x 11.2x 3.2%

Tree.Com, Inc. TREE $361.7 $274.1 $155.9 95.6% 7.8% 38.3% 1.8x 22.5x 1.6x 11.2x -1.9%

Trulia, Inc. TRLA $2,299.4 $2,314.5 $208.6 82.5% -12.6% 124.7% 11.1x n/a 7.7x 58.9x 75.0%

VistaPrint VPRT $1,560.8 $1,961.8 $1,270.2 64.5% 13.0% 8.8% 1.5x 11.9x 1.3x 8.2x -12.5%

Wix.com Ltd. WIX $620.0 $523.0 $109.1 81.2% -40.0% 85.3% 4.8x n/a 3.2x n/a -36.2%

Xoom XOOM $873.0 $667.0 $140.2 69.3% 6.5% 40.4% 4.8x 72.7x 3.7x 36.5x -15.8%

Zillow Z $5,747.1 $5,389.1 $256.6 90.9% -1.9% 68.6% 21.0x n/a 14.1x 76.8x 74.8%

Median: $873.0 $685.9 $208.6 73.7% 7.2% 34.5% 2.6x 27.3x 2.2x 17.7x -10.2%





EBITDA Margin 7.2%




Current Ratio 2.6x

Quick Ratio 2.4x














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-5%

0%

5%

10%

15%

Internet Services Stock Market Return: January - August 2014

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Facebook FB $194,535.9 $180,905.9 $10,013.0 80.9% 54.2% 63.7% 18.1x 33.3x 12.7x 20.0x 36.8%

LinkedIn LNKD $27,746.9 $25,385.2 $1,847.2 86.8% 10.6% 48.5% 13.7x 129.3x 10.1x 38.2x 8.7%

Mail.ru Group LSE:MAIL $5,614.4 $4,838.9 $867.7 61.2% 45.5% 24.5% 5.6x 12.3x 5.0x 9.6x -39.3%

Renren Inc RENN $1,199.5 $312.9 $115.5 42.4% -81.4% -40.9% 2.7x n/a 3.4x n/a 5.4%

Twitter, Inc. TWTR $30,181.2 $28,285.9 $973.9 63.0% -73.1% 117.3% 29.0x n/a 16.3x 82.6x -26.3%

Yelp, Inc. YELP $5,941.0 $5,590.1 $297.0 93.2% 2.2% 66.2% 18.8x 864.1x 12.3x 60.4x 21.3%

YY, Inc. YY $4,744.9 $4,344.7 $419.2 52.5% 31.9% 113.7% 10.4x 32.5x 6.4x 19.9x 61.8%

Median: $5,941.0 $5,590.1 $867.7 63.0% 10.6% 63.7% 13.7x 33.3x 10.1x 29.1x 8.7%





EBITDA Margin 10.6%




Current Ratio 6.7x

Quick Ratio 6.4x















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-5%

0%

5%

10%

15%

20%

Internet Social Stock Market Return: January - August 2014

Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


TTM

Revenue

TTM

Gross

Margin

TTM

EBITDA

Margin

TTM

Revenue

Growth EV/ Revenue

EV/

EBITDA

Forward

EV/ Revenue

Forward

EV/

EBITDA YTD

Ctrip CTRP $8,743.2 $8,454.3 $1,010.8 72.9% 12.3% 34.3% 8.4x 68.0x 6.3x 41.7x 29.9%

Expedia EXPE $10,925.5 $10,407.0 $5,248.9 78.7% 14.0% 19.5% 2.0x 14.2x 1.7x 9.5x 24.9%

HomeAway AWAY $3,120.4 $2,645.1 $400.4 84.8% 16.3% 28.8% 6.6x 40.4x 5.4x 19.7x -17.3%

MakeMyTrip MMYT $1,207.8 $1,136.8 $273.1 28.0% -3.5% 12.9% 4.2x n/a 7.8x 90.8x 46.2%

Orbitz OWW $904.0 $1,091.5 $876.7 81.3% 14.9% 7.3% 1.2x 8.3x 1.1x 6.6x 15.3%

Priceline PCLN $65,261.6 $59,903.9 $7,576.4 87.5% 38.2% 28.9% 7.9x 20.7x 6.4x 16.2x 8.6%

Travelzoo TZOO $251.1 $190.6 $151.8 88.0% 16.4% -2.7% 1.3x 7.6x 1.2x 8.1x -19.0%

TripAdvisor Inc TRIP $14,148.6 $13,863.6 $1,071.7 97.5% 31.0% 24.7% 12.9x 41.8x 9.9x 24.8x 23.1%

Median: $5,931.8 $5,549.7 $943.7 83.0% 15.6% 22.1% 5.4x 20.7x 5.8x 18.0x 19.2%





EBITDA Margin 15.6%




Current Ratio 1.7x

Quick Ratio 1.5x














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-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Internet Travel Stock Market Return: January - August 2014

Travel S&P NASDAQ SEG Internet Index

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