Download - Ad-tech Perspective April 2014
Advertising And Marketing Technology
March 2014Disclaimer:
This document has been produced by Results International Group LLP (“Results”) and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Results’ officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
Julie Langley Mark WilliamsPartner Director+44 (0) 20 7514 8247 +44 (0) 20 7514 [email protected] [email protected]
For more information contact:
Market overview and update
Contents
01 About Us
02 Market Landscape
03 Public Markets Environment
2
Digital Media
Selected clients and transaction counterparties (1)
Corporate Finance Advisors to the Adtech, Software & Marcoms SectorsAn established team of sector experts…
• Results International is a market-leading M&A advisory firm founded in 1991
• Entrepreneurial and owner-managed
• 40 person global team with over 250 completed transactions
• Senior level attention on all transactions
Adtech
Marketing Services
Software
Sector specialism
…with global reach
(1) Some clients were advised by Results International Partners at prior firms3
James KesnerManager
Anthony HarringtonManager
Mark WilliamsDirector
Selected Team Members- UK
Andy CollinsSenior Partner
• Joined Results in 2005 and has completed over 50 transactions, raised £150m of funding from private equity and the Capital Markets and provided strategic advice to a wide range of businesses
• Clients include Abacus, Retail Eyes, Bridgehead International, Chemistry Communications, Latitude, and Total Healthcare Group
Keith HuntManaging Partner
• Joined Results in 2005 - Previously Head of M&A at Ernst & Young
• 20+ years experience in corporate finance, including M&A, fundraising, IPOs, JVs, MBOs and MBIs
• Clients include The Group, Figtree, Monitor Media, Spannerworks, Flip Media, Transactis, Punktilio, Flamingo, Brand X, and AIA
• Joined Results in 2012. He started his career at KPMG working in Financial Services M&A and moved to Ingenious Corporate Finance in 2010
• Clients include Staffcare, Moonpig, St Ives, and Inflexion
Julia Crawley-BoeveyDirector
• Joined Results in 2010 having spent over four years at BDO where she worked in both Audit and Corporate Finance
• Clients include The Group, Blue Rubicon, Virgo Health, Incite, and Crayon
• Joined Results in 2013, has experience in healthcare focused corporate finance at Bear Stearns, Rothschild and Investec
• Clients include Enteq Upstream PLC, Arena Leisure PLC, Busy Bees and Protherics PLC
• Joined Results in 2013 from Kingston Smith
• ACA qualified, has previously worked as a Finance Director for a London based brand consultancy
• Previous clients include ID magazine, Not to Scale, Writtle, Adam and Eve
Jim HoughtonPartner
• Joined Results in 2010, with over 10 years of M&A experience
• Prior to joining Results Jim led European M&A activity for the marketing services division of Omnicom (DAS)
• Clients include We are Social, Blue Rubicon, Virgo Health, Crayon, Iris, and United News & Media plc
• Joined Results in 2012 to lead the tech and digital media practice
• 15 years M&A experience at Broadview then Jefferies, advising tech and digital media companies on M&A and fundraising
• Advised on transactions with Oracle, Microsoft, Experian, Moody’s, IAC, Axel Springer, DMGT, and BT, amongst others
Julie LangleyPartner
4
• Co-founded GroupArgent in 2005. Closed $4.0 billion in cross-border transactions including several Canada-US
• Experience includes advising Hunt Mobile Advertising on its transaction with Opera Mediaworks, Telesystem International Wireless (NASDAQ: TIWI) sold to Vodafone, and buyout and exit representation for Canadian firms Caisse de Dépôt and Wynnchurch
Pierre-Georges RoyPartner
Selected Team Members - International
• Long career in marketing sector (Ogilvy & Mather, The Ball Partnership)
• Managed the acquisition of SMART to McCann Worldgroup, CCG by Publicis Group to establish Digitas China, CIC by Kantar Media and The Upper Storey by Isobar
Andrew KeffordManaging Partner –Asia Pacific & MENA
Chris BeaumontManaging Partner –North Asia
• 16 years of experience consulting in Asia
• For 10 years Chris was with McCann-Erickson in Asia; he was both Vice-Chairman of its operations in Tokyo and Chief Strategy Officer for WorldGroup across Asia
• Co-founded GroupArgent in 2005 and has closed over 35 transactions totaling $0.75 billion
• Experience includes advising Hunt Mobile Advertising on its transaction with Opera Mediaworks
• Prior to GroupArgent, Maurice worked at the Zanett Group, Morgan Stanley and IBM
Maurice WatkinsPartner
• Joined Results in 2008 and has 13 years working in financial services, with over 8 years of experience as a corporate finance specialist
• Previously worked at Nomura, Royal Bank of Canada and Ernst & Young
• Clients include Abacus, Total Healthcare Group, Synergy, D2D and Retail Eyes
Hemavli BaliExecutive Director
• 27 years experience in the advertising sector, including as COO of JWT's Middle East Network
• Joined Results International in 2008 and has since been engaged in a number of buy and sell mandates
Imad KublawiRegional Partner –MENA
• Spent 24 years at Hindustan Thompson (part of JWT), the largest ad agency in India
• Other roles include COO at RK Swamy/BBDO and as advisor to companies in India, Pakistan & Dubai
Sunil GuptaArea Liaison –South Asia
5
US Team
Asia Team
Selected Transactions Across Technology, Marcoms & Digital Media
NOTE: Certain transactions were advised on by RI’s Partners at previous firms. 6
has been acquired by
has invested in
has been acquired by
has been acquired by
has been acquired by
is joininghas been acquired
by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has completed a joint venture with
has been acquired by
has been acquired by
has been acquired by
has been acquired by
has been acquired by
Content
01 About Us
02 Market Landscape
03 Public Markets Environment
7
Measurement & Optimisation
• Ad Network and Exchanges• DSPs/SSPs/DMPs• Programmatic Trading
Space• Targeting/Retargeting• Tracking, Tag Management
Attribution• Optimisation
Marketing Technology Landscape – Illustrative Companies
Marketing Automation
• Omnichannel Campaign Management
• Marketing Automation• Lead Management• Email Marketing
Social CRM /Social Software /
Data
Advertising Platforms
Mobile
• Mobile Marketing• Mobile App Platforms• Mobile DSPs• Mobile Ad Management/Ad
Serving• mCommerce
eCommerce Tech
• eCommerce Platforms• Recommendation Software• Personalisation Software• eCommerce Logistics• Content Management
Video
• OVP’s• Video Sharing• Video Commerce/ Marketing• Video Creation Tools• Video Ad Networks• Video Search Engines
Su
bseg
men
ts
Diversified Vendors
Selected Representative Companies
• Social Media Tools• Ratings & Reviews• Monitoring & Intelligence• Analytics• Customer Service Solutions• Enterprise social networking
8
Advertising Platforms Landscape – Illustrative Companies
9
Specialised entities of media buying agencies focusing on media trading and RTB
Agency buying desks
Demand side
Technology for media buyers aggregate, bid on and optimize digital inventory across multiple sources
Demand side platforms (DSPs)
Technology / marketplaces to connect publishers and advertisers and advertisements on websites
Ad Exchanges & Ad Servers
Data providers and data management Platforms (DMP)
Data Management
Platforms (DMPs)
Commonly known as yield managers/optimisers
Supply side platforms (SSPs)
Supply side
Enable the publishers of the website theyRepresent to sell moreInventory
Ad Networks
RTB Focus
3643
32 3426
34
4943
6155
48 45
78 7888
65 6470
89
73 7768
4959
0
10
20
30
40
50
60
70
80
90
100
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Strength Of The Global M&A Ad Tech Market(#
Deals
)
Sources: Press releases, CapitalIQ, Corpfin, and Results’ Analysis
Adtech consolidation continues at pace – however there is substantial VC funding going into the sector and the number of new start-ups is outpacing the number of acquisitions (Source: Luma Partners)
Key M&A drivers:
- Established players have been acquiring new capabilities/ technologies to extend their existing product suites
- Large internet conglomerates and technology companies continue to compete to remain ‘on top’ of new tech innovations and are competitively scouring the market for the best start-ups and talent
- Yahoo, in particular, was a prolific acquirer in 2013 making over 30 acquisitions
The IPO market has recently opened for adtech including RocketFuel, Criteo and YuMe, however these parties have yet to use their currency to pursue acquisitions
- As many of the recently IPO’d companies have large operating losses and without profitability in sight, these companies are unlikely to make significant acquisitions unless a deal is highly strategic
10
Selected Recent Deal Activity
Date Buyer TargetEV ($m)
EV/REV
Description
Jan-14 n.a. n.a.Marketing automation and lead generation platform
Jan-14 n.a. n.a.Marketing automation platform provider
Jan-14 n.a. n.a.Cross-channel campaign management SaaS platform
Jan-14 n.a. n.a.Mobile and web push notifications
Jan-14 n.a. n.a.Technology that turns graphic designs into email marketing
Dec-13 1,497 7.7xSoftware to orchestrate marketing interactions
Oct-13 n.a. n.a.CRM and marketing automation solutions
Oct-13 15 7.5x Content marketing start-up
Aug-13 n.a. n.a.Marketing automation & demand generation
Jun-13 600 10.3xCross-channel campaign management
Jun-13 2,562 8.1xCloud-based marketing automation
May-13 344 7.2xLead generation and conversion software
May-13 n.a. n.a.App for SMEs to create email & mobile marketing campaigns
May-13 n.a. n.a.Web-based email marketing system
Dec-12 871 9.2x(1) Cloud-based marketing automation
(1) Eloqua was on a revenue run rate of approx. $95m, 9.2x is the run rate revenue multiple(2) Consideration was reportedly between $15-20m
Marketing Automation
11
Date Buyer TargetEV ($m)
EV/REV
Description
Feb-14 n.a. n.a.Social media strategy platform
Jan-14 18(2) n.a. Social analytics platform
Jan-14 n.a. n.a.Social intelligence and text analytics
Dec-13 n.a. n.a.Social media analytics and engagement platform
Nov-13 n.a. n.a. Social analytics platform
Oct-13 35 n.a.Social advertising and analytics platform
Oct-13 n.a. n.a."Billboard", social ads to promote products
Jul-13 n.a. n.a.Social media monitoring company
Jun-13 n.a. n.a.Platform for conducting social media analysis
May-13 n.a. n.a. Social commerce platform
Apr-13 n.a. n.a.Social media listening and compliance
Feb-13 c.75 n.a.Social media monitoring for TV shows & commercials
Jan-13 n.a. n.a.Social media marketing suite for SMBs
Aug-12 40 n.a.Social media advertising services
Jul-12 350 n.a.Social media marketing software
Social CRM / Social Software
Selected Recent Deal Activity
Date Buyer TargetEV ($m)
EV/REV
Description
Mar-14 n.a. n.a. Mobile ad targeting
Jan-14 n.a. n.a.Mobile ad server and analytics platform
Jan-14 2 n.a."Smart receipts" that feature coupons and special offers
Jan-14 n.a. n.a.Proximity mobile marketing firm
Jan-14 n.a. n.a.Technology to target display ads to audiences & locations
Jan-14 n.a. n.a. Mobile advertising network
Nov-13 n.a. n.a.Mobile marketing business in India, UK and US
Oct-13 150(1) n.a. Mobile data analytics platform
Oct-13 15 n.a.Mobile personalisation and native advertising technology
Oct-13 n.a. n.a.Cloud-based mobile messaging tools
Sep-13 350 n.a.Ad inventory management platform for mobile publishers
Sep-13 n.a. n.a.Real-time bidding platform for mobile ads
Aug-13 209(2) n.a.Mobile ad network - targeted advertising
Aug-13 n.a. n.a.US assets of mobile marketing and software company
Jul-13 n.a. n.a.Mobile marketing technology and services
12
(1) Total deal size is reportedly between $100-200m(2) Jumptap shareholders received 24.6m of Millennial Media shares, based on August 14 share price
$8.5(3) Consideration consists of 3m of Brightcove stock and $9m in cash(4) Does not include approx. $4m in employee equity instruments which vest over next 4 year period
(5) A further $10m of consideration is payable to employees and management as incentive and
retention payments over next 12 month period(6) EV includes extra consideration of $5m which is contingent on further investment not being
required for the new company post acquisition
Mobile Technology
Date Buyer TargetEV ($m)
EV/REV
Description
Mar-14 360 n.a.Video ad placement technology
Feb-14 26(3) n.a.Targeted video advertising technology
Jan-14 49(4) 9.8x Video advertising technology
Dec-13 55(5) 2.2xMobile video advertising technology platform
Oct-13 n.a. n.a.Video creative build and distribution
Oct-13 n.a. n.a.Social artery for video news, inspiration and leading voices
Sep-13 n.a. n.a.Online video demand side platform
Aug-13 490(6) n.a.TV advertising distribution unit of Digital Generation
Aug-13 405 n.a. Video advertising platform
Aug-13 n.a. n.a.Video content syndication and advertising platform
May-13 n.a. n.a.Platform for social video advertising
Apr-13 n.a. n.a. Video advertising network
Mar-13 n.a. n.a. Video advertising network
Jan-13 n.a. n.a.In-stream video advertising optimization
Dec-12 n.a. n.a.Mobile and video in-game ad delivery platform
Video Technology
Selected Recent Deal Activity
13
Date Buyer TargetEV ($m)
EV/REV
Description
Feb-14 n.a. n.a.SEO technology for eCommerce sites
Feb-14 n.a. n.a.eCommerce software solutions
Jan-14 n.a. n.a. eCommerce platform
Jan-14 83(1) n.a.eCommerce and ad personalisation technology
Jan-14 n.a. n.a.Digital publishing and eCommerce SaaS solutions
Nov-13 SitecoreCommerceserver.net
n.a. n.a.CXM platform with integrated eCommerce engine
Oct-13 n.a. n.a.SaaS logistics and supply chain management
Oct-13Francisco Partners
Avangate n.a. n.a.Customer-centric eCommerce solution
Oct-13 Staples Runa n.a. n.a.eCommerce personalisation technology
Aug-13 n.a. n.a.eCommerce solutions provider
Aug-13 Sanderson Catan Marketing
1 0.7xeCommerce solutions provider
Jul-13 n.a. n.a. eCommerce app platform
Jun-13 n.a. n.a.eCommerce platform that places promotions (Buy Now)
Jun-13 Rakuten Webgistix n.a. n.a.Cloud-based fulfillment technology for eCommerce
Jun-13 1,351 10.8x eCommerce software
Ecommerce Technology
(1) Does not include a further $7.7m of consideration paid out over next two years(2) EV / TTM EBIT multiple of 2.2x
(3) Further consideration of up to $13.1m is available based on Republic Project reaching revenue and adjusted EBITDA performance targets in 2014 and 2015
(4) Valuation reportedly ranges from $10-15m
Date Buyer TargetEV ($m)
EV/REV
Description
Mar-14 n.a. n.a. Data management platform
Mar-14 n.a. n.a. Tag management technology
Feb-14 n.a. n.a. Data management platform
Feb-14 n.a. n.a.Programmatic media buying and optimisation platform
Feb-14 n.a. n.a. Media trading firm
Dec-13 24/7 MediaCyrstal Semantics
3 n.a.(2) Advertising solutions to match advertisements to content
Nov-13 Zanox Metrigo n.a. n.a. RTB buyside platform
Nov-13 StartMeApp AdNubo n.a. n.a.Technology in programmatic, desktop RTB trading
Nov-13 Centro Sitescout 40 n.a. RTB platform
Oct-13 NeustarAggregate Knowledge
119 n.a. Data management platform
Oct-13 DGRepublic Project
1(3) n.a.Ad platform for rich media advertisements
Oct-13 CPXi AdReady n.a. n.a.Self-serve advertising platform and dynamic creative vendor
Sep-13 Networkplay YoCAPTCHA n.a. n.a. Advertising platform
Aug-13W Technologies
AdMedia Group
n.a. n.a.Digital advertising distribution technology
Aug-13 KDDI ScaleOut 13(4) n.a. Demand side platform
Advertising Platforms
Content
01 About Us
02 Market Landscape
03 Public Markets Environment
14
23.2x
15.0x
20.8x
15.6x
n.a.
9.7x
12.6x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
DiversifiedInternet
MarketingTechnology
Video Mobile Social CRM DiversifiedAgencies
EnterpriseSoftware
28%
11%
0%
24%
0%
17%
30%
0%
5%
10%
15%
20%
25%
30%
35%
DiversifiedInternet
MarketingTechnology
Video Mobile Social CRM DiversifiedAgencies
EnterpriseSoftware
6.7x
4.3x
2.5x
3.8x
2.9x
1.6x
4.2x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
DiversifiedInternet
MarketingTechnology
Video Mobile Social CRM DiversifiedAgencies
EnterpriseSoftware
14%
20%21%
35%
15%
4%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
DiversifiedInternet
MarketingTechnology
Video Mobile Social CRM DiversifiedAgencies
EnterpriseSoftware
Valuation Benchmarks
15
EBITDA Margins 2014E EV/EBITDA 2014E
Revenue growth (13-14E) EV/REV 2014E
N/A
Notes: EV = Enterprise Value; Calendarised to December year end
Source: Capital IQ and Analyst Reports
Note – see appendix for details of companies included in each category
N/A
Company IPO Date IPO Share Price
Current Share Price
% Change Since IPO
High Since Trading
Low Since Trading
Current EV
EV/Rev 2014E
EV/EBITDA 2014E
AIM
November 2013
0.96 1.23 28% 1.51 0.69 129 11.0x n.m.
Nasdaq
October 2013 31.00 52.41 69% 60.95 28.27 2,700 10.9x 54.8x
Nasdaq
September 2013
29.00 52.08 80% 71.89 37.81 2,073 8.8x n.m.
NYSE
August 2013 9.00 6.45 (28%) 12.08 5.79 164 1.8x 30.4x
NYSE
June 2013 10.00 4.75 (53%) 11.09 3.59 152 2.3x n.m.
Nasdaq
May 2013 13.00 39.05 200% 45.00 17.20 1,673 12.4x n.m.
NYSE
March 2013 14.00 10.78 (23%) 19.95 8.50 283 3.0x n.m.
IPO Case Studies
16Source – Capital IQ, Market Data as of 9th March 2014; Note – Calendarised to December year end
$ millions, except share price data
IPO Current Trading Valuation
27 Soho Square, London, W1D 3AYt +44 20 7629 7575 | f +44 20 7629 2233www.resultsig.com
Contact Us
Julie Langley
Partner
Di: +44 (0) 20 7514 8247E: [email protected]
17
Mark Williams
Director
Di: +44 (0) 20 7514 8242E: [email protected]
Content
Appendix
18
usd millions, except per share data Valuation Metrics Operating Metrics
Price Market Net Enterprise Revenue EBITDA Revenue Growth EBITDA MarginCompany (09-Mar-14) Cap Debt Value CY2014 CY2015 CY2014 CY2015 CY13-14 CY14-15 CY2014 CY2015
Diversified Internet
Google Inc. 607.40 409,684 (50,983) 358,701 6.7 x 5.8 x 13.7 x 11.4 x 12.1% 16.7% 49.1% 50.6%
Yahoo! Inc. 38.70 39,580 (1,647) 37,932 8.4 x 8.2 x 33.9 x 30.5 x 2.6% 2.1% 24.7% 26.8%
AOL Inc. 44.04 3,663 (85) 3,578 1.9 x 1.9 x 6.8 x 6.5 x 2.2% 0.5% 27.9% 29.1%
Facebook, Inc. 69.80 178,960 (12,237) 166,723 14.1 x 10.9 x 23.2 x 17.6 x 50.0% 29.9% 60.8% 61.6%
LinkedIn Corporation 206.79 24,988 (2,324) 22,664 10.7 x 8.0 x 43.5 x 29.1 x 38.4% 33.8% 24.6% 27.5%
Amazon.com Inc. 372.06 171,201 (5,519) 165,682 1.8 x 1.5 x 24.2 x 18.0 x 20.8% 19.8% 7.6% 8.6%
eBay Inc. 59.06 75,241 (4,902) 70,339 3.9 x 3.4 x 11.8 x 10.4 x 13.7% 14.6% 32.8% 32.4%
25th percentile 2.9 x 2.6 x 12.7 x 10.9 x 7.4% 8.4% 24.6% 27.2%
Median 6.7 x 5.8 x 23.2 x 17.6 x 13.7% 16.7% 27.9% 29.1%
75th percentile 9.5 x 8.1 x 29.0 x 23.5 x 29.6% 24.9% 41.0% 41.5%
Marketing Technology
Experian plc 17.50 17,432 3,314 20,746 4.0 x 3.7 x 11.6 x 10.6 x 7.1% 7.3% 34.5% 35.0%
Marin Software Incorporated 10.78 381 (98) 283 3.0 x 2.5 x n.m. n.m. 23.8% 19.8% (24.5%) (15.4%)
LivePerson Inc. 13.26 749 (92) 657 3.3 x 2.8 x 30.3 x 24.0 x 13.5% 14.3% 10.8% 11.9%
Demandware, Inc. 76.27 2,920 (275) 2,645 18.3 x 12.8 x n.m. n.m. 39.1% 42.7% 2.7% 6.6%
Vocus Inc. 13.64 295 44 339 1.9 x 1.8 x 15.0 x 12.7 x (2.2%) 3.8% 12.4% 14.0%
Digital River Inc. 17.90 588 (294) 294 0.8 x 0.7 x 6.0 x 4.9 x (4.8%) 5.9% 13.3% 15.2%
Interactive Intelligence Group Inc. 79.53 1,761 (98) 1,663 4.5 x 3.9 x n.m. n.m. 15.2% 17.1% 5.9% 5.3%
Constant Contact, Inc. 29.96 992 (123) 868 2.6 x 2.3 x 14.3 x 11.7 x 15.8% 13.3% 18.4% 19.8%
Marketo, Inc. 39.05 1,784 (111) 1,673 12.4 x 9.4 x n.m. n.m. 40.4% 32.2% (28.0%) (14.3%)
Rocket Fuel Inc. 52.08 2,160 (86) 2,073 8.8 x 5.5 x n.m. 54.1 x 72.8% 59.1% 1.8% 10.2%
Criteo SA 52.41 3,010 (310) 2,700 10.9 x 8.3 x 54.8 x 30.3 x 38.8% 31.2% 19.8% 27.3%
PROS Holdings, Inc. 33.01 1,015 (45) 971 5.1 x 4.2 x 43.2 x 26.8 x 31.4% 20.1% 11.8% 15.9%
25th percentile 2.9 x 2.4 x 12.9 x 11.5 x 11.9% 11.8% 2.5% 6.3%Median 4.3 x 3.8 x 15.0 x 18.3 x 19.8% 18.5% 11.3% 13.0%
75th percentile 9.3 x 6.2 x 36.8 x 27.7 x 38.9% 31.4% 14.6% 16.8%
Video
Brightcove, Inc. 10.79 358 (36) 322 2.5 x 2.2 x n.m. n.m. 16.9% 16.3% (5.3%) 0.0%
Rightster Group Plc 1.23 150 (21) 129 11.0 x 3.7 x n.m. n.m. 13.6% 194.3% (168.6%) 1.9%
Blinkx plc 1.71 704 (69) 635 4.5 x n.a. 11.3 x n.a. 21.3% n.a. 39.7% n.a.
Tremor Video, Inc. 4.75 245 (93) 152 2.3 x 1.8 x n.m. n.m. 22.0% 30.9% (16.3%) 2.4%
YuMe, Inc. 6.45 214 (50) 164 1.8 x 1.4 x 30.4 x 11.9 x 28.0% 28.5% 5.9% 11.8%
25th percentile 2.3 x 1.7 x 16.0 x 11.9 x 16.9% 25.4% (16.3%) 1.5%Median 2.5 x 2.0 x 20.8 x 11.9 x 21.3% 29.7% (5.3%) 2.2%
75th percentile 4.5 x 2.5 x 25.6 x 11.9 x 22.0% 71.7% 5.9% 4.8%
Selected Publicly Traded Companies
19See Slide 20 for sources and notes
usd millions, except per share data Valuation Metrics Operating Metrics
Price Market Net Enterprise Revenue EBITDA Revenue Growth EBITDA MarginCompany (09-Mar-14) Cap Debt Value CY2014 CY2015 CY2014 CY2015 CY13-14 CY14-15 CY2014 CY2015
Mobile
Millennial Media Inc. 6.33 683 (97) 585 3.3 x 2.4 x 16.5 x 8.4 x 33.4% 32.9% 19.7% 29.2%
Opera Software ASA 13.46 1,846 (103) 1,743 4.3 x 3.4 x 14.7 x 11.3 x 36.1% 26.2% 28.9% 30.0%
25th percentile 3.5 x 2.7 x 15.2 x 9.1 x 34.1% 27.9% 22.0% 29.4%Median 3.8 x 2.9 x 15.6 x 9.8 x 34.8% 29.6% 24.3% 29.6%
75th percentile 4.0 x 3.1 x 16.1 x 10.6 x 35.5% 31.2% 26.6% 29.8%
Social CRM / Social Software
Bazaarvoice, Inc. 8.10 611 (57) 554 2.8 x 2.5 x n.m. n.m. 10.9% 12.3% (2.8%) 1.9%
J ive Software, Inc. 8.43 621 (100) 521 3.0 x 2.5 x n.m. n.m. 18.4% 18.3% (8.3%) (1.3%)
25th percentile 2.9 x 2.5 x n.a. n.a. 12.8% 13.8% (6.9%) (0.5%)Median 2.9 x 2.5 x n.a. n.a. 14.7% 15.3% (5.6%) 0.3%
75th percentile 3.0 x 2.5 x n.a. n.a. 16.5% 16.8% (4.2%) 1.1%
Diversified Agencies
Dentsu Inc. 38.77 11,180 2,276 13,455 2.3 x 2.2 x 9.5 x 9.2 x 14.6% 4.0% 24.2% 24.0%
Havas 8.29 3,409 (233) 3,176 1.3 x 1.2 x 7.7 x 7.3 x 2.7% 3.4% 16.3% 16.7%
The Interpublic Group of Companies, Inc.17.75 7,590 305 7,896 1.1 x 1.0 x 8.2 x 7.2 x 4.4% 4.5% 12.9% 14.1%
Omnicom Group Inc. 75.50 19,642 2,639 22,281 1.5 x 1.4 x 9.9 x 9.3 x 4.2% 4.7% 14.8% 15.1%
Publicis Groupe SA 94.31 20,329 (748) 19,582 1.9 x 1.8 x 10.6 x 9.8 x 4.6% 5.3% 18.4% 18.8%
WPP plc 21.03 28,023 4,182 32,205 1.7 x 1.6 x 9.9 x 9.4 x 1.1% 5.4% 17.4% 17.4%
25th percentile 1.3 x 1.3 x 8.6 x 7.8 x 3.1% 4.1% 15.1% 15.5%Median 1.6 x 1.5 x 9.7 x 9.3 x 4.3% 4.6% 16.9% 17.1%
75th percentile 1.9 x 1.8 x 9.9 x 9.4 x 4.6% 5.2% 18.1% 18.5%
Selected Publicly Traded Companies
20See Slide 20 for sources and notes
usd millions, except per share data Valuation Metrics Operating Metrics
Price Market Net Enterprise Revenue EBITDA Revenue Growth EBITDA MarginCompany (09-Mar-14) Cap Debt Value CY2014 CY2015 CY2014 CY2015 CY13-14 CY14-15 CY2014 CY2015
Enterprise Software
Sage Group plc 7.02 7,714 602 8,316 3.6 x 3.4 x 12.1 x 11.2 x 0.6% 5.1% 29.8% 30.5%
Blackbaud Inc. 31.41 1,427 141 1,568 2.8 x 2.6 x 15.4 x 11.8 x 9.5% 7.5% 18.5% 22.4%
Adobe Systems Inc. 68.52 34,388 (1,622) 32,766 7.8 x 6.5 x 28.7 x 18.8 x 3.4% 19.9% 27.2% 34.7%
Concur Technologies, Inc. 115.51 6,585 (191) 6,393 8.7 x 7.1 x 53.0 x 40.0 x 25.7% 23.7% 16.5% 17.7%
Qlik Technologies, Inc. 30.00 2,780 (253) 2,527 4.6 x 3.9 x n.m. 40.9 x 17.0% 16.8% 7.6% 9.6%
Salesforce.com, Inc 60.74 37,815 1,670 39,485 7.6 x 6.1 x 51.8 x 37.4 x 30.2% 24.3% 14.7% 16.4%
Oracle Corporation 38.83 179,106 (12,520) 166,586 4.2 x 4.0 x 8.3 x 7.8 x 4.3% 4.5% 50.9% 51.7%
Microsoft Corporation 37.90 313,194 (64,952) 248,242 2.8 x 2.6 x 7.7 x 7.2 x 8.7% 9.2% 36.7% 35.5%
SAP AG 77.94 94,983 (405) 94,578 3.9 x 3.6 x 11.2 x 10.3 x 4.2% 6.6% 34.6% 35.5%
Intuit Inc. 82.20 23,834 (832) 23,002 5.0 x 4.6 x 12.4 x 11.4 x 7.9% 7.8% 39.8% 40.3%
Open Text Corporation 50.25 6,202 997 7,199 4.1 x 3.6 x 12.8 x 10.9 x 18.6% 12.4% 31.8% 33.2%
25th percentile 3.7 x 3.5 x 11.4 x 10.6 x 4.2% 7.0% 17.5% 20.0%Median 4.2 x 3.9 x 12.6 x 11.4 x 8.7% 9.2% 29.8% 33.2%
75th percentile 6.3 x 5.4 x 25.3 x 28.1 x 17.8% 18.4% 35.7% 35.5%
Selected Publicly Traded Companies Cont.
21
Sources:
Net revenues have been used where appropriate
Yahoo – financials taken from Credit Suisse (January 2014) & checked against company's financial results, market data taken from CapitalIQ
Google – financials taken from Morgan Stanley (March 2014) & checked against company's financial results, market data taken from CapitalIQ
AOL – financials taken from Deutsche Bank (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Rocket Fuel – financials taken from Credit Suisse (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Criteo – financials taken from Deutsche Bank (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Tremor Video – financials taken from Credit Suisse (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Millennial Media – financials taken from Morgan Stanley (February 2014) & checked against company's financial results, market data taken from CapitalIQ
YuMe – financials taken from Deutsche Bank (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Dentsu - financials taken from Morgan Stanley (February 2014) & checked against company's financial results, market data taken from CapitalIQ
Blinkx - financials taken from Jefferies (January 2014) & checked against company's financial results, market data taken from CpaitalIQ
For all other companies – financials and market data taken from CapitalIQ
Note:
Financials calendarised to December year end, market data as at 9 th March 2014