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February 2015 Monthly Update

Cloud InsightsM&A and Capital Markets Perspective on the Cloud Computing Industries:

• Software-as-a-Service

• Platform-as-a-Service

• Infrastructure-as-a-Service

William Blair & Company

Cloud Insights Table of Contents

Summary ............................................................................................................................................................................................................................................................. 1

Public Company Analysis ............................................................................................................................................................................................................................ 3

William Blair & Company Selected Cloud Transactions .............................................................................................................................................................. 6

William Blair & Company Cloud Contacts ........................................................................................................................................................................................... 7

William Blair & Company SaaS Equity Research Coverage ........................................................................................................................................................ 8

Disclosures ......................................................................................................................................................................................................................................................... 9


Cloud Insights Summary 1

Summary

SaaS Mergers and Acquisitions

January included 45 SaaS M&A transactions, totaling $455.6 million in disclosed transaction value, with transaction volume increasing from December which witnessed 27 M&A transactions, totaling $70.3 million. At the same time last year, 10 M&A transactions had been announced, totaling $2,009.5 million. Notable M&A transactions in January included the following:

Selected SaaS Mergers and Acquisitions

Date Trans. Value Enterprise

Enterprise Value /

Announced Completed ($MM) Value($MM) Target Acquirer(s) LTM Revenue LTM EBITDA

01/29/2015 01/29/2015 $40.0 $40.0 Librato SolarWinds - -

01/28/2015 - $149.1 $149.1 Premier Healthcare Exchange

Performant Financial - -

01/12/2015 01/12/2015 $75.0 $75.0 Tomax Demandware - -

01/08/2015 01/05/2015 $125.0 $125.0 NetProspex Dun & Bradstreet - -

01/05/2015 01/02/2015 $37.0 $37.0 Claron Lexmark - -

Sources: Capital IQ, FactSet, and 451 Group as of January 31, 2015

SaaS Equity Performance

For January, the broad SaaS group decreased 3.5%, the Nasdaq decreased 1.9%, and the S&P 500 decreased 3.1%. The large-cap SaaS group decreased by 3.1%, midcap decreased by 3.6%, and small-cap decreased by 7.2%.

Indexed Stock Price Performance

Index 2015 YTD January 2015

Large-cap SaaS (3.1%) (3.1%)

Midcap SaaS (3.6%) (3.6%)

Small-cap SaaS (7.2%) (7.2%)

All SaaS (3.5%) (3.5%)

NASDAQ (1.9%) (1.9%)

S&P 500 (3.1%) (3.1%)

Note: All indices are weighted by current market capitalization Source: FactSet as of January 31, 2015

SaaS Capital Markets

January witnessed one SaaS IPO and one SaaS follow-on:

Box (BOX $14.00), an online file sharing and personal cloud content management service, completed an initial public offering of $201.3 million.

Paycomm (PAYC $22.50), a provider of cloud-based human capital management software solutions, completed a follow-on offering of $125.7 million.


Cloud Insights 2 Summary

SaaS Venture Capital

January venture investment activity consisted of 32 transactions, totaling $250.2 million in disclosed transaction value. Year-over-year, the number of venture capital financings increased while total disclosed transaction value decreased. January 2014 witnessed 28 transactions, totaling $461.4 million in disclosed transaction value. Notable SaaS venture investments in January included the following:

Volusion, a provider of shopping cart software and services for online merchants, received $55.0 million of growth funding from Main Street Capital.

Datadog, a cloud-based service that collects performance data from systems, applications, and cloud providers, received $31.0 million in its third round of funding from Index Ventures, OpenView Venture Partners, Contour Venture Partners, RTP Ventures, and Amplify Partners.

Tune, a developer of cloud-based attribution analytics and performance marketing technology solutions, received $27.0 million in its second round of funding from Accel Partners, Icon Ventures, and Performance Equity Management.

Beckon, a provider of SaaS marketing management solutions, received $13.8 million in its second round of funding from August Capital, Canaan Partners, El Dorado Ventures, and Venrock.

Work Market, a provider of SaaS based end-to-end workforce solutions, received $20.0 million in its third round of funding from Industry Ventures, SoftBank Capital, Union Square Ventures, and Spark Capital Partners.

RedSeal, a provider of network visibility and intelligence solutions, received $18.5 million from an undisclosed investor.

PaaS and IaaS Activity

Notable events in the PaaS and IaaS sectors in January included the following:

GoGrid, a provider of cloud computing and infrastructure-as-a-service (IaaS) for businesses, was acquired by Datapipe for an undisclosed amount.

Latisys, a provider of colocation datacenters and IaaS, was acquired by Zayo Group for $675.0 million.


Cloud Insights Public Company Analysis 3

Public Company Analysis

Year-to-date, the SaaS index was down 3.5%, underperforming the Nasdaq, which was down 1.9%.

Year-to-date, all SaaS groups were down with the large-cap SaaS group down 3.1%, the midcap group down 3.6%, and the small-cap SaaS group down 7.2%.

SaaS Indexed Stock Price Performance (2015 Year-to-Date)

Note: Groupings based on market caps at December 31, 2014 Mkt. Cap > $3 billion consists of: ATHN, CNQR, MDSO, N, CRM, NOW, ULTI, VEEV, WDAY Mkt. Cap $1 billion to $3 billion consists of: BNFT, CSOD, CVT, TRAK, DWRE, FLTX, MKTO, RP, RNG, SPSC, SNCR Mkt. Cap < $1 billion consists of: AMBR, BOX, BV, CSLT, ECOM, CTCT, EOPN, ELLI, FIVN, HGN, HUBS, IL, JIVE, LPSN, LOGM, MRIN, MIXT, OPWR, PAYC, PCTY, QTWO, QLYS,

RALY, SQI, SREV, TNGO, TWOU, TXTR, UPLD, WIX, YDLE, ZEN Source: FactSet as of January 31, 2015

Valuation Overview

Note: Groupings based on market caps at December 31, 2014; data points represent median multiples Sources: FactSet and Capital IQ as of January 31, 2015

60

70

80

90

100

110

120

130

1/2/15

Large-cap (-3.1%) Midcap (-3.6%) Small-cap (-7.2%) NASDAQ (-1.9%)

1/31/151/1/15

7.1x

29.0x

36.4x

6.0x24.5x

32.9x

2.3x

16.3x

26.9x

EV / 2015E Revenue EV / 2015E EBITDA EV / 2015E FCF

Large-cap Midcap Small-cap


Cloud Insights 4 Public Company Analysis

Comparable Company Analysis – Groupings Based on Market Caps at December 31, 2014

Market Market Enterprise Enterprise Value/Revenue

Enterprise Value/EBITDA

Enterprise Value/FCF

'14-'15E 2014

Close 1/31/15

Cap ($MM) 12/31/14

Cap ($MM) 1/31/15

Value ($MM)

Revenue Growth

EBITDA Margin LTM 2014 2015E LTM 2014 2015E LTM 2014E 2015E

Large -cap

athenahealth $139.71 $5,550.3 $5,322.1 $5,429.7 7.21x 7.27x 5.92x 58.7x 39.0x 33.0x nmf nmf nmf 22.7% 18.6%

DealerTrack Holdings $40.20 $2,403.5 $2,180.6 $2,763.1 3.72x 3.27x 2.71x 28.6x 14.4x 11.9x 36.9x nmf 26.0x 20.4% 22.6%

Demandware $53.56 $2,089.3 $1,944.8 $1,685.7 11.87x 10.87x 7.51x nmf nmf nmf nmf nmf nmf 44.7% 6.3%

Medidata Solutions $42.99 $2,590.5 $2,332.3 $2,312.2 6.90x 6.86x 5.65x nmf 31.1x 23.5x nmf 42.8x 42.0x 21.4% 22.1%

NetSuite $98.43 $8,377.6 $7,553.4 $7,368.7 13.25x 13.25x 10.21x nmf nmf nmf 44.4x nmf nmf 29.7% 9.9%

Salesforce.com $56.45 $37,424.6 $35,620.0 $37,044.8 7.30x 7.04x 5.78x nmf 39.8x 30.6x 41.2x 45.4x 35.7x 21.9% 17.7%

ServiceNow $72.90 $10,062.2 $10,811.1 $10,586.0 15.51x 15.51x 10.71x nmf nmf nmf 52.1x nmf nmf 44.9% 7.6%

Ultimate Software Group $148.01 $4,165.3 $4,199.2 $4,098.3 8.10x 8.10x 6.64x 55.7x 33.8x 27.4x nmf nmf nmf 21.9% 24.0%

Veeva Systems $28.76 $3,449.0 $3,755.9 $3,363.0 11.64x 11.10x 8.76x 53.3x 39.9x 31.9x 52.6x 56.5x 37.1x 26.7% 27.8%

Workday $79.46 $15,261.1 $14,859.0 $13,513.9 19.21x 17.84x 12.26x nmf nmf nmf nmf nmf nmf 45.5% (13.6%)

Mean 10.47x 10.11x 7.62x nmf 33.0x 26.4x 45.4x 48.2 x 35.2 x 30.0% 14.3%

Median 9.87x 9.48x 7.08x nmf 36.4x 29.0x 44.4x 45.4 x 36.4 x 24.7% 18.2%

Midcap

Box $18.81 - $2,190.3 $2,065.1 10.72x na na nmf na na nmf na na na na

Castlight $8.88 $1,056.4 $801.8 $619.6 17.09x 14.00x 7.63x nmf nmf nmf nmf nmf nmf 83.6% (173.7%)

Constant Contact $37.82 $1,162.5 $1,198.0 $1,035.4 3.12x 3.12x 2.67x 23.5x 17.1x 13.7x 35.7x 31.3x 26.5x 17.0% 18.3%

Cornerstone OnDemand $32.95 $1,885.1 $1,764.6 $1,761.0 7.28x 6.75x 5.15x nmf nmf nmf nmf nmf nmf 31.1% 0.1%

Cvent $24.98 $1,150.5 $1,032.3 $849.6 6.36x 5.99x 4.78x nmf 51.0x 42.9x nmf nmf 49.3x 25.4% 11.8%

Ellie Mae $44.24 $1,159.0 $1,271.7 $1,186.2 8.16x 7.57x 6.01x 45.1x 29.3x 32.0x 55.5x nmf nmf 25.9% 25.8%

Fleetmatics Group $35.41 $1,339.6 $1,336.6 $1,200.4 5.51x 5.18x 4.15x 24.0x 16.9x 13.3x nmf 50.7x 32.9x 24.8% 30.6%

HubSpot $35.20 $1,055.0 $1,056.3 $1,116.2 10.72x 9.85x 7.69x nmf nmf nmf na nmf nmf 28.1% (22.8%)

LogMeIn $47.55 $1,203.1 $1,159.4 $963.1 4.65x 4.36x 3.74x 49.3x 19.6x 17.0x 19.5x 16.9x 16.3x 16.7% 22.2%

Marketo $34.43 $1,348.5 $1,418.9 $1,307.3 9.63x 8.80x 6.47x nmf nmf nmf nmf nmf nmf 35.9% (17.1%)

New Relic $31.06 $1,604.2 $1,430.2 $1,337.8 15.74x na 10.42x nmf na nmf na na nmf na na

Paycom $26.17 $1,417.4 $1,408.9 $1,417.6 10.33x 9.62x 7.44x nmf 57.8x 42.3x nmf nmf nmf 29.3% 16.7%

Paylocity $23.56 $1,314.0 $1,185.7 $1,112.9 8.71x 8.81x 6.84x nmf nmf nmf nmf nmf nmf 28.8% 3.3%

Qualys $38.02 $1,257.8 $1,266.8 $1,153.4 9.15x 8.69x 7.18x nmf 41.3x 33.5x nmf 53.0x 38.4x 21.0% 21.1%

RealPage $18.01 $1,728.9 $1,417.9 $1,425.8 3.60x 3.52x 3.21x 40.5x 20.4x 16.6x 28.1x 47.2x 24.6x 9.6% 17.3%

RingCentral $13.50 $1,016.3 $919.5 $798.7 3.63x 3.66x 2.89x nmf nmf nmf nmf nmf nmf 26.8% (9.3%)

Synchronoss $42.47 $1,772.5 $1,798.3 $1,734.3 3.79x 3.80x 3.16x 13.9x 11.3x 9.2x nmf nmf 34.9x 20.2% 33.6%

Zendesk $24.19 $1,775.0 $1,761.9 $1,659.4 14.95x 13.25x 9.08x nmf 59.2x 45.4x na nmf nmf 45.9% 22.4%

Mean 8.38x 7.31x 5.79x 32.7x 32.4x 26.6x 34.7x 39.8 x 31.8 x 29.4% 0.0%

Median 8.16x 7.16x 6.01x 32.3x 24.9x 24.5x 31.9x 47.2 x 32.9 x 26.3% 17.0%

Small-cap

2U $17.79 $797.1 $721.2 $640.7 6.14x 5.84x 4.49x nmf nmf nmf nmf nmf nmf 30.2% (14.2%)

Amber Road $9.51 $260.1 $242.0 $204.9 3.26x 3.21x 2.91x nmf nmf nmf na nmf nmf 10.2% 0.8%

Bazaarvoice $8.31 $627.4 $648.9 $594.4 3.30x 3.24x 2.86x nmf nmf nmf nmf nmf nmf 13.2% (8.4%)

BenefitFocus $24.19 $839.3 $618.2 $599.3 4.70x 4.42x 3.49x nmf nmf nmf nmf nmf nmf 26.7% (35.4%)

ChannelAdvisor $9.48 $537.1 $236.0 $158.4 1.87x 1.86x 1.54x nmf nmf nmf nmf nmf nmf 20.9% (23.0%)

Connecture $9.50 $195.3 $206.0 $226.1 2.77x na na nmf na na na na na na na

E2open $5.89 $280.7 $172.7 $155.0 1.97x 1.96x 1.81x nmf nmf nmf nmf nmf nmf 8.7% (18.6%)

Five9 $3.93 $219.0 $192.1 $157.2 1.60x 1.55x 1.30x nmf nmf nmf nmf nmf nmf 19.4% (24.2%)

Halogen $8.00 $186.0 $175.2 $96.8 1.79x 1.48x 1.12x nmf nmf nmf nmf nmf nmf 32.4% (15.8%)

IntraLinks Holdings $10.66 $667.8 $598.3 $631.9 2.52x 2.48x 2.34x nmf 18.6x 16.3x 46.6x nmf nmf 6.0% 13.3%

Jive Software $5.76 $431.7 $412.4 $320.8 1.88x 1.80x 1.56x nmf nmf nmf nmf nmf nmf 15.6% (2.8%)

LivePerson $10.70 $770.6 $584.8 $497.7 2.51x 2.38x 1.87x 49.2x 23.0x 17.3x 18.1x 30.1x 35.0x 26.9% 10.3%

Marin Software $6.62 $295.9 $231.5 $159.7 1.61x 1.62x 1.36x nmf nmf nmf nmf nmf nmf 19.1% (19.8%)

Mix Telematics $5.87 $209.4 $190.5 $118.0 1.00x 1.03x 0.95x 5.8x 5.4x 4.7x 43.3x 22.4x 16.6x 9.0% 19.0%

Opower $11.41 $709.3 $568.7 $431.1 3.61x 3.39x 2.82x nmf nmf nmf nmf nmf nmf 20.3% (11.8%)

Q2 Holdings $17.88 $644.7 $611.8 $522.2 6.60x 6.62x 5.08x nmf nmf nmf nmf nmf nmf 30.3% (13.3%)

Rally Software $11.83 $286.7 $298.3 $227.8 2.76x 2.64x 2.21x nmf nmf nmf nmf nmf nmf 19.4% (25.0%)

SciQuest $14.22 $397.7 $391.4 $267.2 2.62x 2.59x 2.47x 44.7x 12.4x 11.6x 37.7x 27.2x 18.8x 4.9% 20.9%

ServiceSource $3.35 $392.1 $280.7 $175.9 0.64x 0.66x 0.68x nmf nmf nmf nmf nmf nmf (3.1%) (17.2%)

SPS Commerce $59.30 $921.8 $965.3 $824.5 6.44x 6.48x 5.32x nmf 47.5x 38.0x nmf nmf 46.1x 21.9% 13.6%

Tangoe $11.43 $506.2 $444.0 $396.5 1.91x 1.86x 1.64x 27.4x 12.0x 9.9x 28.7x 23.4x 14.1x 13.7% 15.5%

Textura $24.94 $725.1 $635.2 $569.9 8.86x 11.38x 6.40x nmf nmf nmf na nmf 38.4x 77.8% (10.2%)

Upland $7.92 $145.4 $120.5 $196.9 3.27x 3.04x 2.57x nmf nmf nmf na nmf nmf 18.7% 4.9%

Workiva $12.28 $529.6 $485.4 $475.1 4.48x na na nmf na na na na na na na

Wix $19.78 $799.9 $753.4 $659.7 5.27x 4.71x 3.26x nmf nmf nmf 56.3x nmf nmf 44.2% (11.8%)

Yodlee $9.22 $356.6 $321.3 $250.2 2.97x 2.83x 2.34x 59.7x 48.7x 27.1x na nmf nmf 20.8% 5.8%

Mean 3.32x 3.30x 2.60x 37.4x 24.0x 17.9x 38.5x 25.8 x 28.2 x 21.1% (6.1%)

Median 2.76x 2.62x 2.34x 44.7x 18.6x 16.3x 40.5x 25.3 x 26.9 x 19.4% (11.0%)

Overall

Mean 6.29x 5.94x 4.65x 38.6x 30.0x 23.9x 39.8x 37.2 x 31.3 x 25.5% (0.1%)

Mean 4.70x 4.56x 3.74x 44.7x 29.3x 23.5x 41.2x 37.1 x 34.9 x 21.9% 6.1%

Sources: FactSet and Capital IQ as of January 31, 2015


Cloud Insights Public Company Analysis 5

Stock Price and Revenue Multiple Over Time – Groupings Based on Market Caps at December 31, 2014

Market Market 12/31/14

52-Week Low Point 52-Week High Point 1/31/15 Percent Change in Stock Price

Cap ($MM) 12/31/14

Cap ($MM) 1/31/15

Stock Price

EV/LTM Rev

Stock Price

EV/LTM Rev

Stock Price

EV/LTM Rev

Stock Price

EV/LTM Rev

12/31/14 to 1/31/15

52-Week Low to 1/31/15

52-Week High to 1/31/15

Large-cap

athenahealth $5,550.3 $5,322.1 145.

70

$145.70 7.52x $97.30 6.14x $206.70 13.11x $139.71 7.64x (4.1%) 43.6% (32.4%)

DealerTrack Holdings $2,403.5 $2,180.6 44.31 4.02x $36.43 3.08x $58.84 6.51x $40.20 3.72x (9.3%) 10.3% (31.7%)

Demandware $2,089.3 $1,944.8 $57.54 12.89x $44.39 10.39x $82.23 24.96x $53.56 11.87x (6.9%) 20.7% (34.9%)

Medidata Solutions $2,590.5 $2,332.3 $47.75 7.67x $32.10 6.37x $68.21 13.17x $42.99 7.22x (10.0%) 33.9% (37.0%)

NetSuite $8,377.6 $7,553.4 $109.17 14.77x $69.48 11.70x $120.77 21.08x $98.43 13.25x (9.8%) 41.7% (18.5%)

Salesforce.com $37,424.6 $35,620.0 $59.31 7.66x $48.18 6.97x $67.00 10.71x $56.45 7.30x (4.8%) 17.2% (15.7%)

ServiceNow $10,062.2 $10,811.1 $67.85 14.43x $44.17 13.44x $75.27 23.01x $72.90 15.51x 7.4% 65.0% (3.2%)

Ultimate Software Group

$4,165.3 $4,199.2 $146.82 8.03x $109.50 7.45x $171.96 11.43x $148.01 8.50x 0.8% 35.2% (13.9%)

Veeva Systems $3,449.0 $3,755.9 $26.41 10.57x $17.11 9.28x $39.81 22.50x $28.76 11.64x 8.9% 68.1% (27.8%)

Workday $15,261.1 $14,859.0 $81.61 19.78x $64.15 18.84x $116.47 42.49x $79.46 19.21x (2.6%) 23.9% (31.8%)

Midcap

Box - $2,190.3 - - $16.41 10.71x $24.73 13.39x $18.81 10.72x - 14.6% (23.9%)

Castlight $1,056.4 $801.8 $11.70 24.12x $8.09 15.92x $41.95 260.41x $8.88 17.09x (24.1%) 9.8% (78.8%)

Constant Contact $1,162.5 $1,198.0 $36.70 3.04x $21.08 1.94 x $41.98 3.48x $37.82 3.12x 3.1% 79.4% (9.9%)

Cornerstone OnDemand

$1,885.1 $1,764.6 $35.20 7.14x $25.99 6.06x $61.85 17.89x $32.95 7.28x (6.4%) 26.8% (46.7%)

Cvent $1,150.5 $1,032.3 $27.84 7.24x $22.13 5.99x $44.31 14.57x $24.98 6.36x (10.3%) 12.9% (43.6%)

Ellie Mae $1,159.0 $1,271.7 $40.32 6.65x $23.62 4.61x $46.68 8.42x $44.24 8.16x 9.7% 87.3% (5.2%)

Fleetmatics Group $1,339.6 $1,336.6 $35.49 5.53x $25.43 4.48x $42.12 8.73x $35.41 5.51x (0.2%) 39.2% (15.9%)

HubSpot $1,055.0 $1,056.3 $33.61 10.03x $25.79 8.80x $38.60 12.19x $33.65 11.18x 0.1% 30.5% (12.8%)

LogMeIn $1,203.1 $1,159.4 $49.34 4.54x $31.51 3.60x $53.38 12.19x $47.55 4.65x (3.6%) 50.9% (10.9%)

Marketo $1,348.5 $1,418.9 $32.72 8.25x $22.02 7.32x $42.26 18.24x $34.43 9.63x 5.2% 56.4% (18.5%)

New Relic $1,604.2 $1,430.2 $34.84 15.61x $29.66 15.39x $37.50 19.09x $31.06 15.74x (10.8%) 4.7% (17.2%)

Paycom $1,417.4 $1,408.9 $26.33 9.45x $12.28 5.15x $34.70 11.35x $26.17 10.33x (0.6%) 113.1% (24.6%)

Paylocity $1,314.0 $1,185.7 $26.11 9.71x $15.24 6.67x $31.00 14.04x $23.56 9.48x (9.8%) 54.6% (24.0%)

Qualys $1,257.8 $1,266.8 $37.75 8.57x $18.00 4.57x $48.00 9.72x $38.02 9.15x 0.7% 111.2% (20.8%)

RealPage $1,728.9 $1,417.9 $21.96 4.39x $14.87 3.01x $23.11 4.63x $18.01 3.60x (18.0%) 21.1% (22.1%)

RingCentral $1,016.3 $919.5 $14.92 4.07x $10.02 3.02x $23.65 8.61x $13.50 3.93x (9.5%) 34.7% (42.9%)

Synchronoss Technologies

$1,772.5 $1,798.3 $41.86 3.74x $27.78 2.91x $54.05 5.20x $42.47 4.09x 1.5% 52.9% (21.4%)

Zendesk $1,775.0 $1,761.9 $24.37 13.16x $11.06 13.96x $28.20 19.58x $24.19 14.95x (0.7%) 118.7% (14.2%)

Small-cap

2U $797.1 $721.2 $19.66 6.87x $10.52 4.85x $20.57 8.51x $17.79 6.14x (9.5%) 69.1% (13.5%)

Amber Road $260.1 $242.0 $10.22 3.44x $8.09 2.96x $18.09 8.04x $9.51 3.26x (6.9%) 17.6% (47.4%)

Bazaarvoice $627.4 $648.9 $8.04 3.18x $5.85 2.17x $8.75 3.48x $8.31 3.30x 3.4% 42.1% (5.0%)

BenefitFocus $839.3 $618.2 $32.84 6.43x $20.08 4.26x $72.69 16.52x $24.19 4.70x (26.3%) 20.5% (66.7%)

ChannelAdvisor $537.1 $236.0 $21.58 5.41x $8.22 1.83x $49.90 16.02x $9.48 1.94x (56.1%) 15.4% (81.0%)

Connecture $195.3 $206.0 $9.01 2.64x $8.11 1.83x $10.39 16.02x $9.50 2.77x 5.4% 17.2% (8.6%)

E2open $280.7 $172.7 $9.61 3.26x $5.21 1.75x $29.82 11.90x $5.89 1.97x (38.7%) 13.1% (80.2%)

Five9 $219.0 $192.1 $4.48 1.87x $3.70 1.60x $9.35 5.19x $3.93 1.60x (12.3%) 6.2% (58.0%)

Halogen $284.7 $138.1 $7.34 2.13x $7.70 2.02x $14.25 5.31x $8.00 2.03x 9.0% 3.9% (43.9%)

IntraLinks Holdings $670.4 $598.3 $11.90 2.79x $7.76 1.89x $12.21 2.79x $10.66 2.52x (10.4%) 37.4% (12.7%)

Jive Software $779.0 $412.4 $6.03 1.90x $5.06 1.70x $9.45 3.99x $5.76 1.88x (4.5%) 13.8% (39.0%)

LivePerson $802.3 $584.8 $14.10 3.26x $8.84 2.26x $14.70 3.87x $10.70 2.51x (24.1%) 21.0% (27.2%)

Marin Software $334.1 $231.5 $8.46 2.26x $6.45 1.70x $12.65 3.99x $6.62 1.70x (21.7%) 2.6% (47.7%)

Mix Telematics $209.4 $190.5 $6.50 1.15x $5.43 0.96x $13.65 3.01x $2.80 1.03x (56.9%) (48.4%) (79.5%)

Opower $709.3 $568.7 $14.23 4.78x $11.01 3.49x $26.00 13.19x $11.41 3.61x (19.8%) 3.6% (56.1%)

Q2 Holdings $644.7 $611.8 $18.84 7.01x $9.62 3.96x $20.48 9.31x $17.88 7.19x (5.1%) 85.9% (12.7%)

Rally Software $286.7 $298.3 $11.37 2.62x $8.24 1.66x $23.42 6.79x $11.83 2.76x 4.0% 43.6% (49.5%)

SciQuest $397.7 $391.4 $14.45 2.68x $13.31 2.41x $32.69 8.15x $14.22 2.61x (1.6%) 6.8% (56.5%)

ServiceSource International

$392.1 $280.7 $4.68 1.05x $2.81 0.41x $9.63 2.26x $3.35 0.64x (28.4%) 19.2% (65.2%)

SPS Commerce $921.8 $965.3 $56.63 6.10x $43.84 5.86x $71.82 9.74x $59.30 6.84x 4.7% 35.3% (17.4%)

Tangoe $506.2 $444.0 $3.03 2.16x $11.18 1.89x $20.08 3.80x $11.43 1.91x (12.3%) 2.2% (43.1%)

Textura $725.1 $635.2 $28.47 10.25x $13.80 5.30x $30.53 19.81x $24.94 8.86x (12.4%) 80.7% (18.3%)

Upland $145.4 $120.5 $ 9.56 3.68x $7.20 3.03x $12.20 3.97x $7.92 3.27x (17.2%) 10.0% (35.1%)

Workiva $529.6 $485.4 $13.40 4.89x $12.26 4.48x $16.53 5.85x $12.28 4.48x (8.4%) 0.2% (25.7%)

Wix $799.9 $753.4 $21.00 4.98x $14.28 4.44x $32.69 16.00x $19.78 5.27x (5.8%) 38.5% (39.5%)

Yodlee $356.6 $269.5 $12.20 5.21x $8.90 4.38x $17.97 5.99x $9.22 4.48x (24.4%) 3.6% (48.7%)

Sources: FactSet and Capital IQ as of January 31, 2015


Cloud Insights 6 William Blair & Company Selected Cloud Transactions

William Blair & Company Selected Cloud Transactions

Selected M&A Transactions

Selected Public Equity Transactions

Selected Private Equity Transactions

Not Disclosed

has been acquired by

$157,800,000

has acquired

(PAI Group, Inc)

$178,229,986


Not Disclosed

has merged with

$205,000,000


$532,500,000


Not Disclosed


Not Disclosed

has agreed to beacquired by

$130,000,000

has agreed to beacquired by

Not Disclosed


$61,042,000

Initial Public Offering

$267,929,750

Initial Public Offering& Follow-On Offering

$46,153,848


$147,487,500

Follow-on Offering

$235,153,754

Initial Public Offering& Follow-On Offerings

$171,818,346

Follow-on Offering

$186,826,425


$158,622,000


$289,875,586


$286,645,242


$695,594,375


$115,848,192


$234,939,011


$91,351,224


$266,512,000


$41,000,000

Private EquityPreferred Stock

Not Disclosed

Private EquityPreferred Stock

TM

Not Disclosed

received a significant investment from

Not Disclosed

Series EPreferred Stock

$54,000,000

Preferred Stock


Cloud Insights William Blair & Company Cloud Contacts 7

William Blair & Company Cloud Contacts

Dan Connolly is a managing director and co-head of the software investment banking practice at William Blair based in Chicago. Dan joined William Blair in 1999. Previously, Dan spent three years in the M&A group at Merrill Lynch & Company. During his career, Dan has successfully completed more than 90 acquisition and financing transactions throughout the world, for which he has received industry recognition, including the 2011 M&A Atlas Technology & Telecom Deal of the Year and the 2012 40 Under 40 M&A Advisor Recognition Award. Dan graduated from the University of Notre Dame where he was twice elected class president, and he received his M.B.A. from Harvard Business School.

[email protected] +1 312 364 8544

Chris Lane is a managing director and co-head of the software investment banking practice at William Blair based in San Francisco. Chris joined William Blair in 2013. Before joining William Blair, Chris spent 12 years with Jefferies in Silicon Valley; before that, he was at Deutsche Bank for 4 years. Chris has led many transformative M&A and capital market transactions in the technology sector, including the sales of Paradigm to Apax Partners; Radiant Systems to NCR; Layer 7 to CA; and i2 to IBM. Chris received a B.A. from Colgate University and an M.B.A. from Northwestern University’s Kellogg School of Management.


Scott Mattson is a managing director of the software and mobility group at William Blair based in Boston. Scott joined William Blair in 2011. Previously, Scott worked at Canaccord Genuity in the technology team for five years covering location technology, software, Internet, and digital media companies. Scott has significant transaction experience including merger and acquisition advisory and public and private financings. Before his investment banking career, Scott was a lieutenant in the Navy where he was responsible for the procurement, maintenance, and modernization of nuclear-powered submarines. Scott graduated with distinction from the United States Naval Academy with a B.S. in economics and earned his M.B.A. from the University of Maryland while serving in the Navy.


Andrew Arno is a director of enterprise and application software at William Blair based in San Francisco. Andrew joined the firm in 2004. From 2000 to 2002, he was an investment banking associate at WR Hambrecht+Co. in the technology group. From 1997 to 2000, he worked at The Shattan Group LLC, a boutique investment bank focused on private equity placements. He received his B.A. from Columbia University and his M.B.A. from the Haas School of Business at University of California, Berkeley.


Peter Dalrymple is a director in the technology investment banking group at William Blair based in Boston. Peter joined the firm in 2011. Previously, Peter spent three years in the technology investment banking group at Canaccord Genuity focused on software, Internet, and digital media companies. Before his investment banking career, he was an associate with Pelion Venture Partners and also served as the Central and Southeast European country manager for the U.S. Trade & Development Agency. Peter graduated from Bates College with a B.S. in political science and earned an M.B.A. in finance from Northeastern University.


Raphael Grunschlag is a managing director and head of European technology banking at William Blair, focusing on expanding the firm’s technology practice across Europe and the Middle East. Raphael joined the firm in 2012. He has more than 16 years of investment banking experience and has advised on more than $24 billion of transactions, across M&A, ECM, and debt financings. Before joining William Blair, Raphael served as head of European technology investment banking at Bank of America Merrill Lynch (2005-2011), led the European Internet and software team for the CSFB Technology Group (1999-2005), and previously worked at Hambrecht & Quist (1995-1999). Raphael holds a master’s degree in international affairs from Columbia University’s School of International and Public Affairs and a B.A. in Middle East and Asian languages and cultures from Columbia.


Andrew Kaye is a managing director and co-heads William Blair’s European and Asian technology practice. Andy joined William Blair in 2009 and spent 5 years based in Shanghai, China, as head of Asian Banking & Technology. Andy has held positions at CIBC World Markets where he was Regional Head and Robertson Stephens where he led several technology groups in Europe, as well as heading Israel. Andy holds an MBA with honors from Fordham University, New York and a BA in accounting and marketing from Tel Aviv. [email protected] +011 86 21 2327 2233


Cloud Insights 8 William Blair & Company SaaS Equity Research Coverage

William Blair & Company SaaS Equity Research Coverage

SaaS Equity Research

Company Ticker Analyst

athenahealth ATHN Ryan Daniels

BenefitFocus BNFT Adam Klauber

ChannelAdvisor ECOM Justin Furby

Concur Technologies CNQR Bhavan Suri

Connecture CNXR Adam Klauber

Cornerstone OnDemand CSOD Justin Furby

Demandware DWRE Justin Furby

The Descartes Systems Group DSGX Bhavan Suri

E2open EOPN Bhavan Suri

Ellie Mae ELLI Brandon Dobell

FleetMatics FLTX Bhavan Suri

HealthStream HSTM Ryan Daniels

MiX Telematics MIXT Bhavan Suri

NetSuite N Justin Furby

Paylocity PCTY Justin Furby

Rally Software RALY Bhavan Suri

RealPage RP Brandon Dobell

RingCentral RNG Bhavan Suri

salesforce.com CRM Bhavan Suri

SciQuest SQI Bhavan Suri

ServiceNow NOW Justin Furby

SPS Commerce SPSC Bhavan Suri

Textura TXTR Bhavan Suri

Ultimate Software ULTI Justin Furby

Veeva Systems VEEV Bhavan Suri

WageWorks WAGE Robert Napoli

Workday WDAY Justin Furby


February 13, 2015

Cloud Insights Disclosures 9

Disclosures

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com

William Blair’s investment banking group combines signi�icant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and �inancing solutions to our global base of corporate clients. We serve both publicly traded and privately held companies, executing mergers and acquisitions, growth �inancing, �inancial restructuring, and general advisory projects. This comprehensive suite of services allows us to be a long-term partner to our clients as they grow and evolve. From 2010 - 2013, the investment banking group completed 250 merger-and-acquisition transactions worth more than $52 billion in value, involving parties in 27 countries and four continents, was an underwriter on over 20% of all U.S. initial public offerings and arranged more than $11.5 billion of debt �inancing.

About William Blair Investment Banking

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