digi-capital mobile internet investment review q2 2014 executive summary

Mobile Internet Investment Review Q2 2014

Executive Summary

Contact: [email protected]

© Digi-Capital 2014 www.digi-capital.com Authorised and regulated by the Financial Conduct Authority

2

Disclaimer

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Executive summary

Public company and M&A comparables

Operational metrics analysis

Mobile internet sector reviews

(revenue forecasts, public company comparable valuation multiples, public company indices, M&A transactions, M&A valuation

multiples, investment transactions - Q1 2011 to Q2 2014, operational metrics analysis)*

• Advertising/marketing

• App store/distribution

• Books

• Business

• Education

• Enterprise mobility/B2B

• Entertainment

• Finance

• Food & drink

• Games

• Health & fitness

• Lifestyle

• mCommerce

• Medical

About Digi-Capital

3

• Messaging

• Music

• Navigation

• News

• Photo & video

• Productivity

• Social networking

• Sports

• Mobile Tech

• Travel/transport

• Utilities

• Wearables

• Weather

19

41

47

49

94

102

107

114

122

151

171

183

195

239

247

257

292

496

300

319

333

340

345

364

372

392

399

443

460

488

493

* Where available - see detailed table of contents for individual sector contents

Note: investments <$250K included in total figures, but not listed separately

Contents (of full Review) BUY FULL REVIEW

Detailed table of contents at end of this free summary

http://www.digi-capital.com/reports/

4

Executive summary

5

Mobile internet revenue to grow >3x to $700B* by 2017

• Mobile internet revenue to grow >3x to $700B* by 2017F driven by mCommerce, IAPx and App as a Service

• mCommerce growth to >$500B sales by 2017F driven by Asia, America and Europe (almost half in Asia)

• Consumer apps to >$70B by 2017F with non-games apps to double revenue share from 26% to 51%

• Mobile internet investment record >$14B in last 12 months

• Mobile internet M&A record >$47B in the last 12 months (>$28B excluding Facebook/WhatsApp)

• Opportunities across mobile internet Investment Quadrant with >20 “billion dollar” companies already

• Mobile internet public and private company relative valuations vary significantly across sectors

• Deep metrics understanding enables data driven approach to mobile internet investment and growth

* Note: Approximate mobile value added ecosystem revenue forecast 2017F X IAP = in-app- purchase

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

-40% -20% 0% 20% 40% 60% 80%

Consumer media consumption marketshare/growth (Size of bubble = marketshare 2013)

Sources Digi-Capital, eMarketer, Business Intelligence, US data, other smaller media not shown

Dramatic mobile usage growth is disrupting incumbents

Mobile

20%

Print

4%

Long term CAGR (09-13)

Short

term

growth

(12-13)

Radio

12%

TV

38% Online

20%

6

© Digi-Capital 2014

Online Pain Mobile cannibalizing Online faster than TV Mobile Gain

Mobile has grown total media usage by 13.6%

$516B

$74B

$53B

$42B

$11B

$133B

$21B

$26B

$12B

$3B

Mobile internet revenue to grow >3x to $700Bx by 2017

7 Sources: Digi-Capital, PWC, AppAnnie, Companies, Gartner,

Strategy Analytics, Zenith Optimedia, Business Insider, Goldman Sachs * Note: In-app advertising revenue included in consumer apps revenue

† Note: Excludes smartphone/tablet sales and mobile subscription revenue x Note: Approximate revenue for mobile value added ecosystem


mCommerce dominates

with mCommerce, in-app purchase, App as a Service,

advertising models driving revenue growth

2013

2017

mCommerce

Consumer apps

Enterprise mobility

Mobile web adspend

Wearables

mCommerce to >$500B sales driven by Asia, America and Europe

8

mCommerce regional sales ($B)†

Sources: Digi-Capital, Goldman Sachs, eMarketer, Companies

-

100

200

300

400

500

600

2013 2014F 2015F 2016F 2017F

Asia North America Western Europe Eastern Europe Latin America ME/Africa

The Asian mCommerce century Asia to account for almost half of

global mCommerce by 2017F


mCommerce sector forecasts by smartphone and tablet in full Review

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014F 2015F 2016F 2017F

Games Social Networking Books Music Medical Productivity Education Entertainment News Photo & Video Navigation Travel Lifestyle Utilities Business Sports Health & Fitness Finance Weather Other

9

Consumer apps to >$70B revenue driven by explosion of diversity

Sources: Digi-Capital, PWC, AppAnnie, Companies, Gartner

Note: does not include mobile web advertising (see separate mobile advertising revenue forecasts in advertising/marketing chapter), mCommerce direct sales, enterprise/B2B revenue, or mobile tech revenue

51%

74%

49%

Global Mobile Apps Sector Revenue ($B)

26%


Game changer Non-games categories to

match games revenue by 2017

Individual sector forecasts in full Review

Travel/ Transport

3.4

Utilities 1.5

mCommerce 1.4

Games 1.0

Tech 0.9

Social Networking

0.8

Enterprise/ B2B 0.8

Advertising/ marketing

0.7

Messaging 0.7

Photo & Video

0.6

Music 0.4

Food & Drink 0.4

Finance 0.3

Lifestyle 0.2

Entertainment 0.2

App store/ distribution

0.2

Health & Fitness

0.2

Medical 0.2

Other 0.7

10

Mobile internet investment record >$14B in last 12 months

Note: See transactions by category in full Review Note: Transaction value includes only disclosed or estimated amounts

* LTM = last 12 months

Mobile internet investments ($B ex-IPOs)

Qu

arte

rly

Tra

nsa

ctio

n V

alu

e ($

B)

Last 1

2 M

on

th T

otal T

ransactio

n V

alue ($

B)

Mobile internet investments LTM* ($B ex-IPOs)


0

2

4

6

8

10

12

14

16

-

1

2

3

4

5

6

Total LTM Total

VCs love mobile internet 269% investment growth from Q2 2013 to Q2 2014

Individual sector transactions in full Review

Messaging (including Facebook/

WhatsApp) 23.1

Games 5.0

Music 3.0

Food & Drink 2.8

Finance 2.3


2.3

mCommerce 1.9

Enterprise/B2B 1.9

Photo& Video 1.3

Utilities 1.2

Navigation 1.0

Tech 0.8

Entertainment 0.4

11

Mobile internet M&A record >$47B in last 12 months

Mobile internet M&A ($B)

Qu

arte

rly

Tra

nsa

ctio

n V

alu

e ($

B)

Last 1

2 M

on

th T

otal T

ransactio

n V

alue ($

B)

Including Facebook/WhatsApp

Note: See transactions by category in full Review Note: Other categories in grey account for $0.5B of M&A in LTM

Note: Transaction value includes only disclosed or estimated amounts, including announced earn outs where applicable



Mobile internet M&A LTM* ($B)

-

5

10

15

20

25

30

35

40

45

50

-

5

10

15

20

25

30

Total LTM Total

WhatsApp with that? Facebook/WhatsApp

acquisition sent a clear message


Games 5.0

Messaging (excluding Facebook/

WhatsApp) 4.1

Music 3.0

Food & Drink 2.8

Finance 2.3


2.3

mCommerce 1.9

Enterprise/ B2B 1.9

Photo & Video 1.3

Utilities 1.2

Navigation 1.0

Tech 0.8

Entertainment 0.4

12

Continuing the M&A growth trend (even without FB/WhatsApp)

Note: See transactions by category in full Review Note: Other categories in grey account for $0.5B of M&A in LTM

Note: Transaction value includes only disclosed or estimated amounts, including announced earn outs where applicable


Mobile internet M&A ($B)

Qu

arte

rly

Tra

nsa

ctio

n V

alu

e ($

B)

Last 1

2 M

on

th T

otal T

ransactio

n V

alue ($

B)


Mobile internet M&A LTM ($B)

Excluding Facebook/WhatsApp

-

5

10

15

20

25

30

-

2

4

6

8

10

12

14

Total LTM Total

Time to buy Major mobile internet M&A for

both growth and defence


Opportunities across the mobile internet Investment Quadrantx

13 Sources: Digi-Capital, PWC, AppAnnie, Companies, Gartner, Strategy Analytics, Zenith Optimedia, Business Insider, Goldman Sachs

* LTM = Last Twelve Months x On a relative basis compared to revenue forecasts for illustrative purposes only (see Methodology)

Note: chart excludes internal corporate investments, and Books, Medical, News, Sports and Weather sectors because of no M&A in last 12 months

Navigation

Utilities

Photo & video

Entertainment

Health & fitness

Games

Messaging Enterprise/

B2B

Wearables

Business

Education

Lifestyle


App store/ distribution

mCommerce

Travel/ Transport

Social networking

Finance

Consolidation potential

Inv

est

me

nt

po

ten

tia

l

Hidden gems

Exit opportunities

Major opportunities

Selective opportunities

© Digi-Capital

Digi-Capital mobile internet Investment Quadrantx

http://www.digi-capital.com/news/2014/07/mobile-internet-to-700b-revenue-by-2017-47b-ma-and-14b-investment-in-last-12-months-how-to-profit-from-such-big-numbers/

0

50

100

150

200

250

300

350

31-Dec-10 30-Apr-11 31-Aug-11 31-Dec-11 30-Apr-12 31-Aug-12 31-Dec-12 30-Apr-13 31-Aug-13 31-Dec-13 30-Apr-14

Advertising/Marketing App Store/Distribution Enterprise/B2B Entertainment Food and Drink

Games Lifestyle MCommerce Messaging Music

Navigation Social Networking Tech Utilities All Mobile Internet

14

Mobile internet stocks up with different performance across sectors

Digi-Capital mobile internet public market indices (base = 100)

Sources: Digi-Capital, Lazard, Factset, Bloomberg at 30 June 2014


Mixed message Mobile internet market broadly up, but some sectors more than others

Individual sector public company comparables and indices in full Review

10% 100% 1000%

15

Relative public company valuations vary widely across sectors

Mobile internet sector relative public market valuation ranges (percentage relative to mean)

Sources: Digi-Capital, Lazard, Factset, Bloomberg at 30 June 2014 X Where available

* Note: valuation multiples based on 2013 actual sales on logarithmic scale

Tech

Social networking

Navigation

Enterprise/B2B

Utilities

Music

App store/distribution

Messaging

Lifestyle

Games

Entertainment

Enterprise/B2B

Advertising/marketing

Relative valuation range (low to high %) compared to mean valuation of relevant public companies* on logarithmic scale

(mean) 50%


Not all apps are created equal Up to 500% market cap

variance relative to revenue

500%

Food & drink

5%

Individual sector public company comparables in full Reviewx

16

Relative M&A valuations vary even more widely

Mobile internet sector relative M&A valuation ranges (percentage relative to mean)

Sources: Digi-Capital, Lazard, Factset, Bloomberg at 30 June 2014 X Where available

*Note: valuation multiples based on recent M&A revenue multiples. Facebook/WhatsApp multiple excluded as an outlier

Relative valuation range (low to high %) compared to mean valuation of recent mobile internet M&As* on logarithmic scale

1% 10% 100% 1000%

Tech

Social networking

Utilities

Photo & Video

Finance

Messaging

mCommerce

Games

Entertainment

Enterprise/B2B

Advertising/marketing

(mean) 500% 50% 5%


No really – app inequality rules Up to 1,000% M&A valuation variance relative to revenue

Individual sector M&A comparables in full Reviewx

17

iOS generates the most revenue, Android the most downloads

Sources: Digi-Capital, Distimo (US data), Apple, Google, Flurry, IDC, Business Intelligence, One Platform Foundation, Companies

Apple App Store vs Google Play relative monetization

Selected Android App Stores

Available apps (K) and app downloads (B)

-

10

20

30

40

50

60

-

100

200

300

400

500

600

700

800

900

1,000

01

/08

04

/08

07

/08

10

/08

01

/09

04

/09

07

/09

10

/09

01

/10

04

/10

07

/10

10

/10

01

/11

04

/11

07

/11

10

/11

01

/12

04

/12

07

/12

10

/12

01

/13

04

/13

07

/13

10

/13

iOS Apps (K) Google Play Apps (K) iOS Downloads (B) Google Play Downloads (B)

Ap

ps

(K)

Do

wn

load

s (B)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total revenue Advertising Paid apps & in-app purchase

In-app purchase

Revenue per download

Apple App Store Google Play

Google Play apps and downloads

passed iOS in 2013

App Store Downloads Apps Average downloads per app Country

Amazon 25M per month 76K 329 per month Worldwide

Anzhi 180M per month 80K 2,250 per month China

AppChina 30M per month 120K 250 per month China

D.cn 30M per month n/a n/a China

gFan 2.5B total n/a n/a China

Google Play 60B total 1M 3,125 per month Worldwide

HiAPK 290M per month 511K 568 per month China

Lenovo 300M total 400K 750 total China

Mobango 1B total 100K 10,000 total Worldwide

Opera Mobile 30M per month 70K 429 per month Worldwide

SlideME 15M per month 40K 375 per month Worldwide

SK T-Store 28M per month 72K 389 per month Korea

Tencent 300M per month 100K 3,000 per month China

18

In-app purchases dominate consumer apps, not all categories

Global app revenue share (iOS/Android)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

News Games Social Books Entertainment Music Education Productivity Navigation

Free with in-app purchase Paid Paid with in-app purchase

Selected app category revenue share (iOS)

92% 98%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

iOS Android (Google Play)

Free with in-app purchase Paid Paid with in-app purchase

Sources: Distimo, AppAnnie, Digi-Capital

App category downloads vs revenue share (iOS)

40%

74%

60%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Downloads Revenue

Games All other apps


Play the game In-app purchases 4x more effective

for games than all other app types

19

App as a Service emerging as a different model for mobile

Standalone App App as a Service

Value to user Main value from app operating standalone on device

(e.g. Angry Birds) Primary or partial value from app cloud functionality

(e.g. Dropbox)

Access Fat client download Thin client download and/or responsive website

Price Paid or free Free

Data/media access

On device or mixed cloud/device Mixed cloud/device or pure cloud

Offline usage Yes Yes, partial, or none

Business model Paid, in-app purchase, advertising Subscription, in-app purchase, advertising

Distribution App store only App store and/or mobile web

App store revenue share

Always (paid, in-app purchase) Not always

Content updates Infrequent client updates Frequent server side updates

Live Ops Team Rarely Almost always

• In-app purchases have monetized games effectively, where user value mainly standalone on mobile devices (i.e. limited cloud functionality)

• In-app purchases for all other app categories monetize 4x less effectively than games, including where user value mainly from cloud functionality

• Software as a Service models being adapted to App as a Service to monetize other consumer app categories more effectively

Source: Digi-Capital


20

So where standalone games dominated 2013 consumer revenue

Practical

Leisure

App as a Service

Standalone App

Finance

Sports

Lifestyle

News Books

Business

Medical

Productivity

Utilities

Education

Health & Fitness

Navigation

Entertainment

Social Networking

Photo & Video

Travel

Music

Mobile consumer app sector revenue 2013 (Size of bubble = revenue 2013)

Weather

Games 74%



Playtime! Standalone games dominated app

store revenues in 2013


21

App as a Service could give a very different picture by 2017

Practical

Leisure

App as a Service

Standalone App

Mobile consumer app sector revenue 2017F (Size of bubble = revenue 2017F)

Finance

Sports

Lifestyle

News Books

Business

Medical

Productivity

Education

Health & Fitness

Navigation

Entertainment

Social Networking

Photo & Video

Travel

Music

Weather

Games 49%

Utilities



Now it’s my turn Non-games app sectors to take

>50% of app revenues by 2017F


1x

10x

100x

ARPD - PU (Paid User)

% of paid conversion in first 30 days

Average session length

(minutes)

Sessions per week

Sessions per day Lifetime value % of paid conversion in

first 7 Days

7 day retention rate

3 day retention rate

Sessions first 7 days/following

7 days

Second session conversion rate

ARPD - AU (average user,

entire data set)

Top 1% grossing vs Top 5% grossing Top 1% grossing vs Top 25% grossing

Key operational metrics: top 1% grossing apps outperformance multiple versus other apps (selected app category example on logarithmic scale)

X Where available * Source: Matt Tubergen, Digi-Capital, multiple data sources

Top 1% grossing apps outperform against key operating metrics R

elat

ive

ou

tper

form

ance

mu

ltip

le o

f to

p 1

% g

ross

ing

app

s (o

n lo

ga

rith

mic

sca

le)

5x

50x

22


It’s all about the data Deep metrics/analysis enable

data driven investment & growth

Individual sector operational metrics in full Reviewx

1

10

100 1,000

23

Billion dollar mobile companies emerging at an accelerating pace

Selected mobile internet companies with valuation ≥$1B (recent estimates on logarithmic scales)

Value created per year since founding ($M/year) on logarithmic scale

Val

uat

ion

($

B)

on

lo

ga

rith

mic

sca

le

20

4,000

Sources: Bloomberg, WSJ, TechCrunch, Time, NYT, Companies, Digi-Capital

5

500 2,000


Bigger and faster More value being created at a

faster rate than ever before

With a changing pyramid of potential consolidators

24

Note: Companies are for illustrative purposes only


Block and tackle Major acquisitions aimed at

strategic growth and defence

Snakes and ladders Today’s growth companies could

become tomorrow’s consolidators

http://gree.jp/?mode=home

http://www.kabam.com/

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=RpxB8qSyjaIvfM&tbnid=RwcFMt1mZwH5UM:&ved=0CAgQjRwwAA&url=http://www.techinasia.com/kakotalk-profitable-aim-indonesia/&ei=z0zcUd3kFYqb0QW06ICIAQ&psig=AFQjCNF4nRTRXrwyN-GrhzwFvFLlnd9wsg&ust=1373478479405954

http://www.google.com/url?sa=i&rct=j&q=line+logo&source=images&cd=&cad=rja&docid=ZCzYvDLHq7gk7M&tbnid=CYLxo-LEG4IAZM:&ved=0CAUQjRw&url=http://www.withelwyn.com/2011/10/26/digi-presents-the-htc-evo-3d/naver-line/&ei=E03cUbCsL8ep0AXWwYHQCg&bvm=bv.48705608,d.d2k&psig=AFQjCNEoah7cvW-u5zLbC6tJBByhHcFX7Q&ust=1373478541150997

25

Now is the time to invest for growth or be bought

* Note: outlier deals may occur

Mobile internet sector consolidation curve

Sector Launch

Sector Growth for Scale

Sector Consolidation

Sector Equilibrium

Sector Consolidation

Low

High

Medium

Messaging

Tech

Expected Deal

Activity*

- VC Investment - Some small M&A

- Limited M&A/ investment

- Cost focus - Alliances or spinoffs

- Growth equity investment - High volume, mid-market

strategic M&A

- Leveraged buyouts - Low volume, large scale

strategic M&A

Wearables

Utilities

Advertising/Marketing

Navigation

Photo & Video

mCommerce

Lifestyle

Food & Drink

Entertainment

Music

Social Networking

Enterprise/B2B

Smartphones/Tablets

Infrastructure

App Store/Distribution

Games

Travel/Transport

Books


Status quo is not an option Massive growth and disruption

require investment or exit

26

1. Executive summary (page 19) a) Mobile internet market economic overview

i. Major mobile internet market economic trends ii. Mobile internet usage vs other media (2009 - 2013) iii. Mobile internet revenue share (2013 vs 2017F) - mCommerce sales, consumer apps revenue, enterprise mobility

revenue, mobile web adspend, wearables revenue iv. mCommerce regional sales forecast (2013 – 2017F) – Asia, North America, Europe (West & East), LatAm, ME/Africa v. Mobile consumer apps revenue forecast by app sector (2011 - 2017F)

b) Global mobile internet investment and M&A overview i. Global mobile internet investment transaction value by sector (Q1 2011 – Q2 2014) ii. Global mobile apps M&A transaction value by sector (Q1 2011 – Q2 2014) iii. Digi-Capital mobile internet Investment Quadrants iv. Mobile internet public market indices by sector (Q1 2011 – Q2 2014) v. Mobile internet public market valuation ranges by sector (as at Q2 2014) vi. Mobile internet M&A valuation ranges by sector

c) Mobile internet industry trends, highlights and detailed operational metrics i. iOS vs Android apps and downloads ii. iOS vs Android relative monetization iii. Global Android app store downloads, apps and average downloads per app iv. Global app revenue share (iOS/Android) v. App category downloads vs revenue by app category vi. App as a Service overview vii. App business model segmentation by app category viii. Operational metrics analysis overview (top 1% grossing vs top 5% grossing, top1% grossing vs top 25% grossing) ix. Billion dollar mobile internet company valuations vs value created per year since founding x. Mobile internet consolidators overview xi. Mobile internet sector consolidation curve

Table of contents (of full Review) BUY FULL REVIEW

http://www.digi-capital.com/reports


27

2. Public company and M&A comparables (page 41) a) Public company comparables by sector (59 public companies included - see companies by sector below)

i. Market value, net debt, enterprise value (EV), % of 52 week high, EV/ Sales (2013A – 2016E), Sales CAGR (13A – 16E), EV/ EBITDA (2013A – 2016E), EBITDA CAGR (13A – 16E), PE (2013A – 2016E), EPS CAGR (13A – 16E)*

ii. Sectors are mobile advertising/marketing, app store/distribution, enterprise/B2B, entertainment, food & drink, games, lifestyle, mCommerce, messaging, music, navigation, social networking, tech, utilities and all sectors combined

b) M&A comparables by sector i. EV / revenue (low, high, mean, median) and EV / EBITDA (low, high, mean, median)* ii. Sectors are mobile advertising/marketing (no EBITDA multiples), enterprise/B2B, entertainment, finance, games,

mCommerce, messaging (no EBITDA multiples), photo & video (no EBITDA multiples), social networking, tech, utilities and all sectors combined

3. Operational metrics analysis (page 47) a) Selected key performance metrics for games, entertainment, finance, messaging and music sectors b) Operational metrics in each sector for top 1% grossing apps, top 5% grossing apps, top 25% grossing apps, top 50%

grossing apps, relative performance of top 1% grossing vs top 5% grossing multiples, top 1% grossing vs top 25% grossing multiples, top 1% grossing vs top 50% grossing multiples

c) Selected metrics include sessions per day, lifetime value, % paid conversion in first 7 days, ARPDAU, sessions first 7 days/following 7 days, sessions per week, second session conversion rate, % of paid conversion in first 90 days, 3 day retention, average session length, 7 day retention rate, % of paid conversion in first 30 days, ARPDPU, % of organic to paid users, 90 day retention rate, 7 day registration rate, 30 day retention rate, 2 day completed registration rate, and 14 day registration rate. Selected metrics differ by app category

* Where available

BUY FULL REVIEW Table of contents (of full Review)



28

4. Mobile advertising/marketing review (page 49) a) Mobile advertising spend forecast (2013 – 2017F)x

i. In-app advertising spend ii. Mobile web advertising spend

b) Public company comparables (Adways, Hipcricket, Kitara Media, Mobile Embrace, Rocket Fuel) i. Market value, net debt, enterprise value (EV), % of 52 week high, EV/ Sales (2013A – 2016E), Sales CAGR (13A –

16E), EV/ EBITDA (2013A – 2016E), EBITDA CAGR (13A – 16E), PE (2013A – 2016E), EPS CAGR (13A – 16E)* ii. Public company index chart (Q1 2011 – Q2 2014)

c) M&A comparables i. EV / revenue (low, high, mean, median)

d) M&A transactions (Q1 2011 – Q2 2014) i. Date, target, acquirer, deal value ($M), revenue multiple, EBITDA multiple*

e) Investment transactions (Q1 2011 – Q2 2014) i. Date, target, investors, deal value ($M)*

5. App store/distribution review (page 94) a) App store revenue share forecast (2013 – 2017F)** b) Public company comparables (Sungy Mobile)


ii. Public company index chart (Q4 2013 – Q2 2014) c) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M)* d) Investment transactions (Q1 2011 – Q2 2014)

i. Date, target, investors, deal value ($M)*

Sources: Digi-Capital, Zenith Optimedia, PWC, AppAnnie, Companies, Gartner x In-app advertising and mobile web advertising spend, excluding mobile advertising/marketing services revenue

** App store revenue share component only




29

6. Books apps sector review (page 102) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M)* c) Investment transactions (Q1 2011 – Q2 2014)

i. Date, target, investors, deal value ($M)* 7. Business apps sector review (page 107) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)


i. Date, target, investors, deal value ($M)* 8. Education apps sector review (page 114) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




30

9. Enterprise mobility/B2B sector review (page 122) a) Revenue forecast (enterprise apps) (2012 and 2017F) b) Public company comparables (Citrix Systems, Clicksoftware Technologies, Fleetmatics, Globo International, Mobile Iron,

Vocera Communications) i. Market value, net debt, enterprise value (EV), % of 52 week high, EV/ Sales (2013A – 2016E), Sales CAGR (13A –


c) M&A comparables i. EV / revenue (low, high, mean, median) ii. EV / EBITDA (low, high, mean, median)



10. Entertainment apps sector review (page 151) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Dwango, Mandalay Digital, Moko Social Media, MTI, Ubiquity Broadcasting, Youku Tudou)


ii. Public company index chart (Q1 2011 – Q2 2014) c) M&A comparables

i. EV / revenue (low, high, mean, median) ii. EV / EBITDA (low, high, mean, median)

d) Key operational metrics analysis of top 1%, 5%, 25% and 50% grossing apps e) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M), revenue multiple, EBITDA multiple* f) Investment transactions (Q1 2011 – Q2 2014)


* Where available




31

11. Finance apps sector review (page 171) a) Revenue forecast (2013 – 2017F) b) M&A comparables


c) Key operational metrics analysis of top 1%, 5%, 25% and 50% grossing apps d) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M), revenue multiple, EBITDA multiple* e) Investment transactions (Q1 2011 – Q2 2014)

i. Date, target, investors, deal value ($M)* 12. Food & Drink apps sector review (page 183) a) Public company comparables (Grub Hub, Just Eat)


ii. Public company index chart (Q2 2014) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




32

13. Games apps sector review (page 195) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Ateam, Colopl, Com2us, Crooz, Cyberagent, DeNA, Drecom, Forgame, G5 Entertainment,

Gameloft, Gamevil, Glu Mobile, Gree, Gung Ho, IGG, King, Klab, NHN, Taomee, Voltage) i. Market value, net debt, enterprise value (EV), % of 52 week high, EV/ Sales (2013A – 2016E), Sales CAGR (13A –



d) Key operational metrics analysis of top 1%, 5%, 25% and 50% grossing apps e) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M), revenue multiple, EBITDA multiple, net profit multiple* f) Investment transactions (Q1 2011 – Q2 2014)


14. Health & Fitness apps sector review (page 239) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




33

15. Lifestyle apps sector review (page 247) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Move, Yelp, Zillow, Zoopla)





16. mCommerce apps sector review (page 257) a) mCommerce sales forecast (2013 – 2017F)

i. By smartphone ii. By tablet

b) Public company comparables (Bango, Mint Wireless, Net Element) i. Market value, net debt, enterprise value (EV), % of 52 week high, EV/ Sales (2013A – 2016E), Sales CAGR (13A –





* Where available




34

17. Medical apps sector review (page 292) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



18. Messaging apps sector review (page 300) a) Revenue forecast (2013 and 2017F) b) Public company comparables (Naver, Tencent)



i. EV / revenue (low, high, mean, median) d) Key operational metrics analysis of top 1%, 5%, 25% and 50% grossing apps e) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M), revenue multiple* f) Investment transactions (Q1 2011 – Q2 2014)


* Where available




35

19. Music apps sector review (page 319) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Pandora)


ii. Public company index chart (Q1 2011 – Q2 2014) c) Key operational metrics analysis of top 1%, 5%, 25% and 50% grossing apps d) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M)* e) Investment transactions (Q1 2011 – Q2 2014)


20. Navigation apps sector review (page 333) a) Revenue forecast (2013 – 2017F) b) Public company comparables (AutoNavi, Telenav, Tom Tom)





* Where available




36

21. News apps sector review (page 340) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)


i. Date, target, investors, deal value ($M)* 22. Photo & Video apps sector review (page 345) a) Revenue forecast (2013 – 2017F) b) M&A comparables

i. EV / revenue (low, high, mean, median) c) M&A transactions (Q1 2011 – Q2 2014)

i. Date, target, acquirer, deal value ($M), revenue multiple* d) Investment transactions (Q1 2011 – Q2 2014)


23. Productivity apps sector review (page 364) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




37

24. Social networking apps sector review (page 372) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Facebook, MeetMe, Twitter, Weibo)






25. Sports apps sector review (page 392) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




38

26. Mobile Tech sector review (page 399) a) Global mobile subscriber forecast by device type

i. Smartphone ii. Tablet

b) Public company comparables (Apple, Arm Holdings, Audience, Blackberry, Broadsoft, Gemalto, Google, Mavenir Systems, Microsoft, Nvidia, Samsung Electronics, Synaptics)






27. Travel/Transport apps sector review (page 443) a) Revenue forecast (2013 – 2017F) (Travel) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




39

28. Utilities apps sector review (page 460) a) Revenue forecast (2013 – 2017F) b) Public company comparables (Cheetah Mobile, NQ Mobile)






29. Wearables sector review (page 488) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




40

30. Weather apps sector review (page 493) a) Revenue forecast (2013 – 2017F) b) M&A transactions (Q1 2011 – Q2 2014)



* Where available




41

About Digi-Capital

42

About Digi-Capital

Digi-Capital advises mobile internet, games & digital clients across America, China, Japan, South Korea and Europe

Sell-side M&A Buy-side M&A Fundraising Investment

Board Advisory Strategic Consulting Industry Analysis

Selected Clients

Mobile Internet Investment Review Q2 2014

Executive Summary

Contact: [email protected]

© Digi-Capital 2014 www.digi-capital.com Authorised and regulated by the Financial Conduct Authority

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