proptech market update - gca advisors...2 executive summary –2020 proptech» despite a decline...
TRANSCRIPT
PropTech Market Update
2020 Year-End Review
22
EXECUTIVE SUMMARY – 2020 PROPTECH
» Despite a decline from 2019’s record capital raising levels, investment into the U.S. PropTech market remains incredibly active with ~$7.3Bn of equity and debt raised across nearly 300 deals in the category in 2020
» 58 deals of $20M+ in equity invested and 28 deals with $50M+ in equity investment ➔ scale leaders emerging across all sub-categories within PropTech and investors backing established category leaders
» $100M+ investment rounds in 2020 into Vacasa, Sonder, Better, Hippo, Katerra, Procore and many others
» M&A market remained highly active with ~100 U.S. PropTech M&A deals in 2020 ➔majority of M&A activity was driven by strategic buyers, but private equity activity increasing
» Valuation multiples in the market continue to remain strong, especially for software businesses, with the NASDAQ up ~44% in 2020(1) – Rise of SPACs (Special Purpose Acquisition Companies) with focus on PropTech
‒ Opendoor, Porch, Open Lending, Vivint and United Wholesale Mortgage all announced SPAC mergers with multiple additional PropTech-focused SPACs looking for targets
‒ Successful and pending IPOs reflect continued significant public market demand for PropTech companies
» GCA expects continued strong PropTech market activity in 2021 given the momentum and tailwinds in the sector
Source: (1) Reflects percent change from 1/2/2020 to 12/31/2020.(2) As of 1/22/2021.
/$10,200MM
/$11,000MM
/$250MM
/$1,800MM
/$350MM
Market Cap(2): ~$110Bn Market Cap(2): ~$9Bn Market Cap(2): ~$40Bn Filed for IPO
Significant Strategic & Private Equity M&A Transactions
Successful & Pending IPOs
/Undisclosed
33
Lizzie [email protected]
LEADING ADVISORY TEAM FOCUSED ON THE PROPTECH MARKET
Key Sub-Sector Coverage Verticals
Residential RE Software Commercial RE Software
Mortgage / Lending Title / Insurance
Home Services Facilities Management
Construction Tech IWMS
Chris GoughManaging Director
Head of Real Estate TechnologyPhone: (415) [email protected]
Leader in PropTech Advisory – 25+ Global PropTech Deals Announced since 2017
Adrian ReedManaging Director
Phone: +44 (161) [email protected]
Dominic Orsini, [email protected]
GCA European PropTech Team
GCA U.S. PropTech Team
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Investment from
We advised Capsilon
Investment from
We advised Mobysoft
Acquired
We advised the buyer
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
Acquired by
We advised the seller
A Portfolio Company of
Acquired by
We advised the seller
Majority interest acquired by
We advised the seller
Acquired by
We advised the seller
A Portfolio Company of
Majority interest acquired by
We advised the seller
Acquired
We advised the buyerWe advised Mobysoft
Investment from
We advised the seller
Investment from
We advised the seller
Majority investment from
A Portfolio Company of
44
GCA ADVISES LONE WOLF TECHNOLOGIES ON ITS STRATEGIC INVESTMENT F ROM STONE POINT CAPITAL
Transaction Overview End-to-End Real Estate Software Platform
» On October 23rd, Lone Wolf Technologies announced that funds managed by Stone Point Capital will become Lone Wolf’s lead institutional investor
» Lone Wolf Technologies is the North American leader in residential real estate software
» The Company provides agents, brokers, franchises, MLSs and associations the tools they need to build their business and improve profits
Company Highlights
1.4M+Agents
22M+eSignatures
Per Year
8,000+Brokerage Customers
1,000+Association Customers
99%North American Forms
Coverage
15M+Completed
Transactions
Forms
Creates, manages and auto-populates legally compliant online forms and contracts by leveraging the industry’s most comprehensive offering of form coverage and types
eSignature Cloud-based, electronic signature for real estate transactions with over 22 million eSignatures filed annually
Back-Office Management
Purpose-built back-office accounting software combining traditional accounting with real estate transaction functionality that results in sticky relationships throughout any macroeconomic climate
Insights & Analytics
First-of-its-kind broker command center, delivering AI-enabled predictive insights, built upon a data lake leveraging 30+ years of proprietary, industry-specific data from Lone Wolf’s existing product suite
Marketplace
All-in-one platform of over 30 partners, offering curated upstream and downstream services and tools to significantly improve the entire real estate transaction experience and deliver unique agent differentiation
Transaction Management
Transaction management tools – MLS integration, forms, eSignatures, etc. – designed to enhance agent productivity, drive compliance and manage transactions from contract to close
GCA acted as financial advisor to Lone Wolf Technologies on its strategic investment from Stone Point Capital
Source: Company websites and press releases.
55
Launch ofInsight’s AI-enabled system delivers on-demand snapshots of sales forecasts, GCI and company dollar
Select Transaction Commentary
History of Strategic Acquisitions and Product Development
Marketplace Partners
Brokerages & Franchises
Select Partners and Customers
MLSs & AORs We’re excited to work with the team at Stone Point to continue our strategic
growth. Stone Point’s investment aligns with our vision to create a truly
connected, fully digital real estate experience. We are thankful for the
partnership and leadership of Vista Equity Partners over the last five years,
and we remain committed to serving the real estate industry going forward.”Jimmy Kelly,
President and CEO,
Lone Wolf Technologies
“
Acquisition of zipLogix brought breadth to existing forms business, with complementary transaction management solutions and unique customer relationships (NAR, CAR)
Investment byVista Equity partners completed a majority investment and focused on executing a core organic plan while simultaneously looking for inorganic pieces
Investment byVista Equity Partners completed a minority investment
Launch of Seamless integration of Lone Wolf’s transaction management solutions with brokerWOLF enables agents to communicate with back-office processes in real-time
Acquisition ofLone Wolf added cloud-based transaction management products and extensive forms coverage (i.e., Canada)
Apr 2015 Oct 2017 May 2020
Jul 2016 Apr 2019
Apr 2019
Jan 2020
Lone Wolf Link Launch ofMarketplace hosts a variety of digitaltools, services and partner solutionsfor real estate agents and brokerages
We are enthusiastic about the long-term opportunities within the real estate
services and technology industry. This industry is undergoing rapid digital
transformation, and we are pleased to partner with Jimmy and his
colleagues, who together have built a remarkable company and have
demonstrated the vision to continue to grow and better serve their clients.
Chuck Davis,
CEO,
Stone Point Capital
“
”
GCA ADVISES LONE WOLF TECHNOLOGIES ON ITS STRATEGIC INVESTMENT F ROM STONE POINT CAPITAL (CONT.)
Source: Company websites and press releases.
66
GCA ADVISES CONSTRUCTION TECH LEADER EQUE2 ON INVESTMENT FROM WESTBRIDGE
Background
• Eque2 are the UK market-leading supplier of business management software to the construction, contracting and house building industries
• The Company targets businesses across a range of sizes from SMB (small and medium-sized businesses) to UMM (upper mid-market) within construction & related industries
• The investment from WestBridge will support Eque2’s management team to deliver its go to market strategy and SaaS platform growth
About the Transaction
• GCA Altium was appointed in early 2020 to assess exit options and prepare for a marketing process to both trade and PE
• Preparation and trade outreach commenced in early 2020, with financial, commercial and technology vendor due diligence commissioned
• The shareholders viewed WestBridge’s offer as the most compelling based on price, relationship, timetable and overall strategy to pursue Eque2’s go to market strategy and SaaS growth opportunity
• The buyout was led by a five-strong senior management team and provided a full exit for LDC, which acquired a minority stake in the company in November 2017, and other institutional shareholders within three weeks after receiving offers
LocationUK
DateDecember 2020
Deal TypeSell-side M&A
ConstructionTechnology
GCA Altium acted as exclusive financial advisor to Eque2, a portfolio company of LDC, on the sale to WestBridge
77
GCA ADVISES MOBYSOFT ON ITS INVESTMENT FROM ECI
Background
• Based in Manchester, Mobysoft is a fast-growing, highly recurring provider of cloud-based rent arrears management software to the UK social housing sector
• Mobysoft’s flagship product, RentSense, processes payment patterns for more than 1.6m properties on a daily and weekly basis and uses predictive analytics software to provide recommendations and optimise workflows for over 140 social housing providers
• RentSense has achieved significant penetration of the UK social housing market (>30% on a properties basis) and Mobysoft expects to generate annual recurring revenue of c.£11.5m by December 2020
• Mobysoft was founded in 2003 by Derek Steele
About the Transaction
• GCA Altium has advised Mobysoft since 2016, successfully facilitating minority investment from Livingbridge in 2017 followed by a debt refinancing process in 2019, and was appointed in late 2019 to assess exit options
• The shareholders viewed ECI’s offer as the most compelling based on relationship, price and overall strategy to pursue Mobysoft’s key growth opportunities
• ECI will take a significant stake alongside a minority reinvestment by Livingbridge and management
LocationUK
DateSeptember 2020
Deal TypeMinority Investment
Multi-FamilySoftware
GCA Altium advises multi-family software provider Mobysoft on investment from ECI
8
I. PROPTECH MARKET SUMMARY
II. PUBLIC MARKETS
III. M&A AND MARKET COMPS BACK-UP
99
2020 PROPTECH SECTOR SUMMARY – KEY SUBSEGMENT TRENDS
Source: (1) Mortgage Bankers Association Mortgage Market Forecast. (2) Capital IQ as of 1/22/2021.(3) CBRE, Global Real Estate Market Outlook 2021 Review.
− COVID-19 accelerating “digitization” of the transaction ➔virtual showings, performance / data-driven customer capture, virtual notary, transaction management, broker management tools, tech-driven escrow / title all will benefit from adoption tailwinds in post-COVID market
− Record activity in the mortgage vertical driving significant momentum in the market. Mortgage Bankers Association expects $3.6Tn in total originations in 2020 ($2.2Tn refi / $1.4Tn purchase) ➔ fueled continued interest in mortgage tech / mortgage originators(1)
− Brokerages have been the best performing public market segment in PropTech in 2020 ➔ continued verticalization of the market with brokerages working to expand attach rates on title / mortgage and adjacent transaction related products
Residential Real Estate Technology Commercial Real Estate Technology
− Commercial RE investment activity fell 44% through the first three quarters of 2020, but activity remains highly end-market dependent – investors have favored multi-family and industrial assets relative to retail, office and hotels(3)
− Despite a challenging 2020, low interest rates, significant dry power and government stimulus should support the CRE market in 2021
− CRE office solutions that deliver operational efficiency drive high ROI and are in high demand (energy efficiency, utilities bulling, predictive maintenance, visitor management, etc.)
− Tenant engagement, tenant experience and tenant safety tools are also critical in post-COVID environment
− Continued activity and strong momentum in multifamily management software, especially for firms that are using tech to enhance tenant experience
Up 207% in LTM(2) Up 57% in LTM(2)Up 837% in LTM(2)
1010
$4,226 $4,833
$6,955
$5,938
$250
$475
$2,060
$1,345
$2,748
$1,823
$4,477
$5,308
$9,015
$7,284
2015 2016 2017 2018 2019 2020
Q4$1,808
Q3$815 Q2
$3,933
Q1$728
$7,284
Source: Capital IQ as of 12/31/2020, Pitchbook, press releases.Excludes Oyo Rooms and The We Company financing rounds.Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
ANOTHER RECORD YEAR – REFLECTED IN 2020 DEAL FLOW
($MM)
Avg. Deal Value:
$20.6$8.0$10.6 $20.1 $21.3 $20.1
Equity Raise Value Debt Raise Value
U.S. Real Estate Technology Venture Investment (2015 - 2020)
295 U.S. PropTech deals in
2020, totaling $7.3Bn in
equity and debt
1111
Date CompanySelect
Investor(s) Amt. Invested Funding to Date
Latest Reported Valuation
4/6$1,000(1) Equity / $1,000 Debt
$6,400(2) NA
11/24 $350 $710 $1,500
5/19 $200 $1,491 NA
11/10 $200 $410 $4,000
6/24 $170 ~$560 $1,300
4/20 $150 $155 NA
4/30 $150 ~$400 $5,000
7/21 $150 $709 $1,500
5/21 $123 ~$230 $623
6/2 $108 ~$635 NA
ANOTHER RECORD YEAR – REFLECTED IN 2020 DEAL FLOW
Top 10 U.S. Equity Rounds of 2020U.S. Growth Capital Raises Greater than $20MM
($MM)
Strong deal activity in 2020 in an
unpredictable economic environment
Source: Capital IQ as of 12/31/2020, Pitchbook, press releases.Excludes Oyo Rooms and The We Company financing rounds.Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
(1) AirBnB raised $1Bn in debt and equity (mix not disclosed) and $1Bn of debt on 4/6/2020.(2) Debt and equity mix not disclosed.
15 16
32
39
79
58
2015 2016 2017 2018 2019 2020
1212
1
PROPTECH PRIVATE COMPANY FUNDING LEADERS
$50MM - $100MM
$100MM - $200MM
$200MM - $500MM
>$500MM
$25MM - $50MM
Equity Raised to Date:
($614MM) ($3.0Bn) ($8.9Bn Equity / $6.1Bn Debt)
Other Mega Funding Leaders
($468MM)
51 companies
raised $100MM+
157 companies
raised $25MM+
Source: PitchBook, CB Insights, company filings, company websites, press releases. Funding totals exclude secondary transactions. Equity raised to date as of 1/16/2021.
2020 IPO / SPAC
Movers
(2021)
1313
$15 $40 $110
$195 $320
$15 $25 $70
$100
$150
$350
$15 $40 $110
$210
$360
$710
Dec-16 Jan-18 Nov-18 Jul-19 Jul-20 Nov-20
Previously Raised New Funding
− On November 24, Hippo Enterprises (“Hippo”) announced a capital investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc.
− The investment solidifies the strategic partnership between the two companies, which began with MS&AD Ventures’ initial investment in Hippo’s Series E funding round
− The investment will support Hippo’s product roll out in additional states and Mitsui Sumitomo will take on a portion of risk to support Hippo through a reinsurance treaty
Received Strategic Investment from
Transaction Overview Hippo Overview
$350MM Invested
Headquarters: Mountain View, CA
Founded: 2015
Description: Hippo Enterprises is a licensed national property and casualtyinsurer in the United States. The Company provides an onlineplatform that enables homeowners to obtain customized homeinsurance coverage, ongoing home-care services andmaintenance.
Current Investors:
HIPPO SECURED $350MM FROM MS&AD INSURANCE GROUP
Hippo Fundraising Timeline
Source: PitchBook, CB Insights, Crunchbase, company website, press releases.
A B C D ESeries:
Product Overview
Modern Home Insurance Policies provided by Hippo set a new standard of
home insurance and offer protection for everything
from traditional property & liability coverage to
individual devices and appliances
Home WellnessHippo helps care for your home and prevent small
issues from becoming expensive headaches with
complimentary smart home monitoring systems
and virtual home maintenance services, DIY guides
and on-demand bookings
60-secondsTo receive a quote
Up to 25%Savings
5 minutesTo purchase a policy
E-II
1414
HIPPO SECURED $350MM FROM MS&AD INSURANCE GROUP (CONT’D)
Source: PitchBook, CB Insights, Crunchbase, company website, press releases.
Select Deal Commentary
We value the innovation that Hippo brought to the home
insurance space through its advanced classification of risk. We
look forward to learning from one another through our strategic
partnership, providing high value-added products and services
to customers of both companies in the U.S. and Japan, and to
continue to support Hippo, which quickly became a top
insurtech in the U.S. home insurance space and is beloved by its
customers.
We have been very thoughtful on the people that we’ve
bought into the capital structure and how can they help us build
the biggest franchise. Mitsui Sumitomo is one of the best when
it comes to risk management and shares our desire to leverage
data and analytics to create better outcomes for homeowners.
We’re excited to deepen our partnership and gain additional
catastrophe modeling expertise from one of the world’s largest
insurers.”
“
”
“
Shinichiro Funabiki, Director, VP
Executive Officer, MS&AD Insurance
Assaf Wand, Co-Founder & CEO,
Hippo Insurance
Geographic Presence Today
− The company currently offers insurance products to more than 70 percent of homeowners in the country
Geographic Presence at Scale
− The money will be used to roll out in new states, helping Hippo get to its goal of reaching 95 percent of U.S. homeowners in the next year
Geographic Presence
1515
− On September 10, Orchard announced that it had raised $69MM in equity led by Revolution Growth, with participation from existing investors FirstMark Capital, Navitas, Accomplice and Juxtapose
− This brings the company’s total attributed funding to $155MM to date(1)
− Orchard plans to use its new funding to launch new product offerings and expand into new markets throughout the country
Series Cled by
Transaction Overview Orchard Overview
$69MM Raised
Headquarters: New York, NY
Founded: 2017
Description: Operator of home buying and selling marketplace, which digitizesthe experience of buying and selling homes. The company utilizestechnology to deliver valuation for homes and make contingency-free offers on behalf of the buyer for a new home, enablingclients to buy before they sell, while also handling the showingand sale process of the old home
Current Investors:
ORCHARD RAISES $69MM IN SERIES C ROUND
Solution Overview Orchard Fundraising Timeline
Source: PitchBook, CB Insights, Crunchbase, company website, press releases.(1) Additionally raised $200MM in debt to date.
1. Customized PlanCustomers start by answering a few questions
about their current home and the company
pairs them with an Orchard Home Advisor
2. BuyOrchard Home Advisor assist customers in
finding a new home
Make a contingency-free offer and reserve
the home with Orchard’s cash
3. SellOrchard Home Advisor finds a buyer for the old
home
Option to use Orchard Home Loans or a lender
to finalize the mortgage
A B CSeries: A-II
$30 $50
$86
$30
$20
$36
$69
$30
$50
$86
$155
May-18 Apr-19 Jan-20 Sep-20
Previously Raised New Funding
1616
− On May 21, States Title announced that it had raised $123MM in equity led by Greenspring Associates with participation from new investors Horizons Ventures, Eminence Capital, HSCM Bermuda as well as existing investors Foundation Capital, Assurant, Fifth Wall Ventures, Lennar Ventures and SCOR Global P&C Ventures
− This brings the Company’s total attributed funding to ~$230MM to date
− States Title plans to use its new funding to transform real estate closings at lower costs
Series CLed By
Transaction Overview States Title Overview
$123MM Raised
Headquarters: San Francisco, CA
Founded: 2016
Description: Offers patented machine intelligence-enabled tech solutions todigitize and automate residential real estate closings. States Titleand its family of brands – North American Title Company (NATC)and North American Title Insurance Company (NATIC) – offerssolutions for lenders, real estate agents, title agents andhomeowners that make closings more simple and efficient
Current Investors:
STATES TITLE RAISES $123MM IN SERIES C ROUND
Select Deal Commentary
States Title has developed an automated, patented technology
that streamlines the laborious title and escrow process, emerging
as the market leader in an industry that historically lacks
meaningful innovation. We are thrilled to support States Title as
they advance the vision of an instant mortgage that closes with
one tap. Especially in the current economic climate, the
mortgage industry needs to be re-imagined with transformative
technological solutions to reduce costs and improve the
customer experience. States Title is leading the vanguard of this
transformation.”
“
Jim Lim, Managing General
Partner, Greenspring Associates
States Title Fundraising Timeline(1)
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.(1) Per Crunchbase data.
$23.2$81.6 $106.6
$13.0
$58.4
$25.0
$123.0
$10.2 $23.2
$81.6$106.6
$229.6
Seed(11/25/2016)
Series A(12/20/2017)
Series B-I(1/6/2019)
Series B-II(6/20/2019)
Series C(5/21/2020)
Previously Raised New Funding
1717
STATES TITLE RAISES $123MM IN SERIES C ROUND (CONT’D)
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.
Product Overview
Solution Overview
Instant Title Underwriting – Predictive analytics algorithm that
utilizes a forward-thinking risk-based insurance model to clear title
commitments instantaneously
Remote Closings – To ensure
business continuity and accelerate
transactions, States Title offers
multifaceted state and lender-
specific eClosing solutions
Borrowers authorize closing
agents to sign on their behalf
Remote Online Notarization
powered by
Comprehensive gap insurance
from closing to recordation
Can reduce closing from 30 to 45 days to 20
2019A revenue of ~$200 million
1 of the top 2 largest bank lenders & 2 of the top
10 largest nonbank lenders as customers
Transaction volume grew by 100 times in 2019
compared to the year prior
For LendersPredictively underwritten title insurance
& escrow processes
White-label digital closing experience
products
Resale of direct title services and direct
settlement & escrow services
For Title AgentsQuick and straightforward underwriting
services, with a counsel that guarantees a
response back to your questions within 1
hour
Fast and transparent agency application
process for qualified agents
For Real Estate ProfessionalsExperienced services and guidance
throughout the home purchase or sale
process
Customer closing cost and mortgage
qualification calculators
For HomeownersFast efficient title and escrow services
Machine intelligence used to buy, sell or
refinance homes
1818
$4.5$20.1
$4.5
$15.6
$29.0
$4.5
$20.1
$49.1
Series A(5/26/2017)
Series A-II(7/18/2018)
Series B(5/21/2020)
Previously Raised New Funding
− On May 21, Spruce announced that it had raised $29MM in equity led by Scale Venture Partners with participation from Zigg Capital and Bessemer Venture Partners
− This brings the Company’s total funding to ~$49MM to date
− Spruce plans to use its new funding to accelerate development of its proprietary technology and deepen integrations with client partners
Series BLed By
Transaction Overview Spruce Overview
$29MM Raised
Headquarters: New York, NY
Founded: 2016
Description: Neutral third party that helps coordinate transactions betweenhomeowners and lenders / real estate institutions with a digital-first experience. Spruce takes handles title search, policy,settlement and escrow processes by pairing intuitive softwarewith high-touch human expertise
Current Investors:
SPRUCE RAISES $29MM IN SERIES B ROUND
Solution Overview Spruce Fundraising Timeline
Source: Pitchbook, CB Insights, Crunchbase, Company website, press releases.(1) Excluding Colorado and Florida; Company website as of 7/10/2020.
LendersModern title & closing technology
Detailed audit trails of the entire transaction from
beginning to end
Integrate with current loan origination system or
proprietary transaction software
Real Estate TechPartner with industry experts to create optimal
workflows
Digital closing experience has an NPS of 60 and
allows customers to view & sign documents, link
their bank account, and schedule closing with
easeHomeowners
Spruce provides a transaction coordinator
supported by a team of in-house experts
Average closing fee of $495(1)
Safely receive funds and communicate about
transactions via secure portal
1919
− On April 15, Notarize filed that it had raised $25.7MM in equity led by Polaris Partners and Hyperplane Venture Capital
− This brings the Company’s total funding to $74MM to date
Series C
Transaction Overview Notarize Overview
$26MM Raised
Headquarters: Boston, MA
Founded: 2015
CEO: Patrick Kinsel
Description: Provider of a document management platform oriented towardsthe real estate industry, allowing consumers and enterprises suchas lenders, insurers and title agents to sign and notarizedocuments online
Current Investors:
NOTARIZE RAISES $25.7MM IN SERIES C ROUND
Notarize Highlights
Notarize has been on a trajectory from day one, influencing
legislation and building the technology, relationships and
infrastructure to change business processes, while also creating a
superior customer experience for an antiquated process. Notarize
saw the potential to address the pain points of traditional notary
with a secure, streamlined solution that is already saving
government, businesses and consumers countless hours and
dollars. ”
“
Select Deal Commentary
Dave Barrett, Managing Partner,
Polaris
Notarize Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed Series A Series B-I Series B-II Series C
Date 5/15/15 7/5/16 4/20/19 9/4/19 4/15/20
Equity Raised $2.5 $8.5 $20.0 $17.0 $25.7
Total Raised to Date $2.5 $11.0 $31.0 $48.0 $73.7
Notarize Products
eSignElectronically sign any document
Free service
Online NotarizationConnect with a commissioned notary public
24x7 to sign & notarize documents
Real Estate ClosingsSigners can electronically review, sign and
notarize real estate documents
Connects the mortgage industry on 1 platform
Available 24/7
Legally Sign &
Notarize Documents
100% Online
Subscription and Per-
Notarization Pricing
Plans
2020
− On March 10, Zumper announced that it had raised $60MM in equity led by e.ventureswith participation from a number of existing investors at a post-money valuation between $400MM and $600MM, bringing the Company’s total funding to $150MM to date
− Zumper noted that is experiencing 100% y/y revenue growth and is on track to reach 80 million users on its platform in 2020
− Zumper plans to use its new funding to strengthen its engineering team and invest further in its ability to process rental payments online
Series D
Transaction Overview Zumper Overview
$60MM Raised
Headquarters: San Francisco, CA
Founded: 2012
Description: Developer of a search-through-close rental platform where arenter can search, schedule a tour or apply through their phone.The platform also provides landlords with online tenant screeningand rent collection services
Current Investors:
ZUMPER RAISES $60MM IN SERIES D ROUND
Product Overview
Zumper’s progress so far is striking, and it has quickly become
the leading independent company focused on the rental market.
We believe that Zumper is well positioned because of its focus on
providing an exceptional product for renters and great value for
landlords and multifamily properties. ”
“
Select Deal Commentary
Mathias Schilling, Co-Founder &
Managing Partner, e.ventures
Zumper Fundraising Timeline
Source: Pitchbook, TechCrunch, Company website, press releases.(1) Post-money valuation estimates per Pitchbook and TechCrunch.
Acquisition Timeline
Sep 2019
Web-based software platform that automates the entire rental process for landlords, leasing agents and tenants
Jan 2016
Operates an online map-based apartment rentals search website and mobile application for consumers to search for rentals by geographic location
Find Houses, Rooms or Apartments for RentReceive real-time alerts and instantly apply
Filter by location, price range, bedroom count, pet-friendly or
amenity and set an alert to get notifications when a new listing is
posted
Post Rental Listings and Collect RentPost rental listings and screen tenants
Collect rent with online payments
Generate more leads with Zumper’s network
(1)
($MM) Seed Series A Series A-I Series A-II Series B Series C Series D
Date 5/1/12 3/3/14 6/25/15 2/1/16 10/18/16 9/17/18 3/10/20
Equity Raised $1.7 $6.8 $6.4 $11.8 $17.7 $45.7 $60.0
Total Raised to Date $1.7 $8.5 $14.9 $26.7 $44.3 $90.0 $150.0
2121
− On February 6, HouseCanary announced that it had raised $65MM in equity led by Alpha Edison, Morpheus Ventures and PSP Growth
− This brings the Company’s total funding to $130MM to date
− HouseCanary plans to use its new funding to continue to build the most accurate valuations in the housing market, continue to build its world-class team to accelerate development and broad market adoption of HouseCanary and invest in its leading-edge technology
Series C
Transaction Overview HouseCanary Overview
$65MM Raised
Headquarters: San Francisco, CA
Founded: 2013
Description: Developer of a real estate analytics platform designed to offerresidential real estate information for every block and propertyand help people make better real estate decisions. The company'sreal estate analytics platform aggregates millions of dataelements to accurately define and forecast values and marketinfluences, enabling individual buyers and real estateprofessionals to make better buying and selling decisions
Current Investors:
HOUSECANARY RAISES $65MM IN SERIES C ROUND
Product Overview
Select Deal Commentary
HouseCanary Fundraising Timeline
Source: Pitchbook, Company website, press releases.
We invest in disruptive companies that are innovative and
creative in how they tackle the changing landscape. Through their
proven software and data driven technology HouseCanary is
streamlining real estate transactions and changing the future of
the industry.
Joseph Miller, Managing Partner,
Morpheus Ventures
”
($MM) Early Stage VC Series A Series B Series C
Date 3/8/17 4/7/17 5/1/17 2/6/20
Equity Raised $0.6 $33.0 $31.0 $65.0
Total Raised to Date $0.6 $33.6 $64.6 $129.6
“
Data Explorer - Proprietary
analytics for more than 100
million US homes
Property Explorer - Data &
details around individual
homes (e.g., historic price
growth)
Market Explorer -
Interactive neighborhood
analysis (rental return,
affordability, etc.)
Agile Insights - Context
around a home’s true
value with individual
home reports
Agile Evaluation -
Condition-informed
BPO alternative
Agile Certified - Security
of high-confidence AVM
backed by transferable
insurance policy
2222
− On February 5, Cherre announced that it had raised $16MM in equity led by Intel Capital with participation from Navitas Capital, Carthona Capital, Zigg Capital, DreamitVentures and Silicon Valley Bank
− This brings the Company’s total funding to $25MM to date
− Cherre plans to use its new funding to continue powering its fully-integrated data systems
Series A
Transaction Overview Cherre Overview
$16MM Raised
Headquarters: New York, NY
Founded: 2016
Description: Provides investors, insurers, real estate advisors and other largeenterprises with a platform to collect, resolve, and augment realestate data from public, private and internal sources. Cherreallows customers to evaluate opportunities and trends faster andmore accurately, while saving on manual data collection andanalytics costs
Current Investors:
CHERRE RAISES $16MM IN SERIES A ROUND
Product Overview
We see Cherre as critical infrastructure to accelerate the future
of this industry. Our customer diligence repeatedly indicated
Cherre’s AI-enabled platform was a foundational pillar — a data
system of record for large enterprises across the real estate
segment. We’re excited to help accelerate Cherre’s global growth
trajectory.”
“
Select Deal Commentary
Trina Van Pelt, Vice President,
Intel Capital
Cherre Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed VC Series A
Date 10/1/18 2/5/20
Equity Raised $9.0 $16.0
Total Raised to Date $9.0 $25.0
CoreAugment - Data network provides updated real estate data
CoreConnect - Ability to connect internal and external data
CoreExplore - Asset, community and ownership information for
properties within the database
CorePredict - AI engine and real estate professionals available
2323
− On January 24, CREXi announced that it had raised $30MM in equity led by Mitsubishi Estate Company, Industry Ventures and Prudence Holdings with participation from Lerer Hippeau Ventures and Jackson Square Ventures
− This brings the Company’s total funding to $45MM to date
− CREXi plans to use its new funding to grow its core business of broker services across the sales, leasing and auction functions and accelerate the refinement and expansion of buyer and tenant resources
Series B
Transaction Overview CREXi Overview
$30MM Raised
Headquarters: Marina Del Rey, CA
Founded: 2014
Description: Provider of a platform that combines an active sales and leasingmarketplace with marketing, analytics and deal managementtools designed to help brokers, buyers and tenants eliminatetime-consuming processes, find properties and close deals faster
Current Investors:
CREXI RAISES $30MM IN SERIES B ROUND
Product Overview
The CRE industry is evolving, and market players, especially
younger, digitally native generations are seeking out platforms
that provide free and open access to information. CREXi directly
addresses this market need, providing fair access to a range of CRE
information. As CREXi continues to build out its stable of services,
features, and functionality, we’re thrilled to partner with them and
support the company’s continued momentum.”
“
Select Deal Commentary
Gavin Myers, General Partner,
Prudence Holdings
CREXi Fundraising Timeline
Source: Pitchbook, Company website, press releases.
($MM) Seed VC Series A Series B
Date 11/17/15 5/21/18 1/24/20
Equity Raised $4.3 $11.0 $30.0
Total Raised to Date $4.3 $15.3 $45.3
Sell
Marketplace Listings
CRM
Communication & Collaboration Tools
Marketing
Data & Analytics
Support
Buy
Marketplace for commercial properties for sale and lease
Auction
Access 400,000+ qualified buyers through the live auction platform
65% sell-through rate, 100% close of escrow and 121% above the reserve price
2424
− On January 7, Roofstock announced that it had raised $50MM in equity led by SVB Capital with participation from Citi Ventures, Fort Ross Ventures, 7 Global Capital, Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures
− This brings the Company’s total funding to $133MM to date
− Roofstock plans to use its new funding to invest in its data science, product and engineering capabilities
Series D
Transaction Overview Roofstock Overview
$50MM Raised
Headquarters: Oakland, CA
Founded: 2015
Description: Marketplace connecting buyers and sellers of single-family rentalhomes, offering investment properties in top U.S. markets. TheCompany provides the resources for investors to buy, own andsell real estate online, including data analytics, propertymanagement oversight and other tools
Current Investors:
ROOFSTOCK RAISES $50MM IN SERIES D ROUND
Product Overview
Roofstock is in the vanguard of the rapidly-growing PropTech
space. As startups continue to broaden access to financial services,
we see real estate as an incredibly attractive asset class for retail
investors looking to go beyond the typical stock and bond
portfolio.”
“
Select Deal Commentary
Sulu Mamdani, Managing
Partner, SVB Capital
Roofstock Fundraising Timeline
Source: Pitchbook, Company website, press releases.
Acquisition Timeline
Jul 2018
Property management firm certified by leading institutional lenders in the space as an approved property manager for large SFR portfolios
($MM) Series A Series A-I Series B Series C Series D
Date 5/1/15 12/29/15 11/21/16 4/16/19 1/8/20
Equity Raised $6.3 $7.0 $20.0 $50.0 $50.0
Total Raised to Date $6.3 $13.3 $33.3 $83.3 $133.3
BuyBuy properties, portfolios or property shares
Search, analyze, check out and close on the platform
0.5% commission for buyers
OwnThird-party property management teams vetted by Roofstock
handle day-to-day operations and tenant concerns
Sell$2Bn in transaction volume facilitated since inception
Close in an average of 15 days
2.5% commission for sellers
2525Source: Pitchbook, 451 Research, press releases.
HEALTHY M&A MARKET
Buyer Target Announced DateEnterprise
Value
12/24 NA
12/21 $10,200
12/16 NA
11/22 $250
11/9 NA
10/23 NA
9/1 $180
8/6 $11,000
7/26 $1,800
6/24 NA
5/13 $190
3/3 NA
2/25 $7,100
2/13 $350
1/22 NA
1/14 NA
• Significant 2020 M&A activity
− 71% strategic acquirers
− 29% financial acquirers
($MM)
Select U.S. 2020 PropTech M&A TransactionsAnnual U.S. PropTech M&A Activity
45
57
105 104 102
2016 2017 2018 2019 2020
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-21
THOMA BRAVO TO ACQUIRE REALPAGE
Transaction Overview RealPage Financial Detail(1)
− On December 21, RealPage, Inc. (NASDAQ: RP) announced it has entered into a definitive agreement to be acquired by Thoma Bravo for approximately $10.2Bn in an all-cash transaction, which implies 9.1x EV / LTM Sep-20 revenue and 32.5x EV / LTM Sep-20 Adj. EBITDA
− The purchase price represents a 30.8% premium over RealPage’s closing price of $67.83 on December 18, a premium of 36.5% over RealPage’s 30-day VWAP through that date, and a premium of 27.8% over RealPage’s all-time high closing stock price of $69.47 on December 7
To acquire
$10.2Bn
Source: Capital IQ as of 1/22/2021, Wall Street Research, 451 Research, company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
($MM)
RealPage 3-Year Stock Price Performance & Select Acquisition History
April 20, 2018
August 2, 2018
October 12, 2018
June 12, 2019
July 29, 2019
November 6, 2019
August 31, 2020
January 22, 2020
Pending
Thoma Bravo to Acquire RealPage Announcement
December 21, 2020
$671
$870
$989
$1,156
$1,275
$163 $231
$281 $318 $343
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 20%
CAGR: 17%
2727
We are thrilled to partner with
Steve and the RealPage team at
this exciting milestone in the
company’s journey. We look
forward to applying Thoma Bravo’s
operational and investment
expertise in software to help drive
RealPage’s continued growth and
identify attractive M&A
opportunities.
Scott Crabill,
Managing Partner,
Thoma Bravo
Founded in 1998, RealPage
provides a technology platform
that enables real estate owners
and managers to change how
people experience and use rental
space. Clients use the platform to
gain visibility and transparency in
asset performance, leverage data
insights and monetize space to
generate incremental yields.
LTM RealPage Revenue Breakdown as of September 30, 2020Strategic Rationale
Select Transaction Commentary
THOMA BRAVO TO ACQUIRE REALPAGE (CONT’D)
Thoma Bravo is a leading private
equity firm focused on the
software and technology-enabled
services sectors, with more than
$73 billion in assets under
management as of September 30,
2020
Source: Company websites, filings, earnings transcripts and press releases.
This transaction will provide immediate and substantial value to RealPage
stockholders and will enhance the company’s ability to focus on executing its
long-term strategy
RealPage and Thoma Bravo can partner to grow the company’s market offerings
and enhance its current capabilities to capitalize on the increasingly complex
and expanding real estate market
As technology transformation takes on increasing importance in the real estate
industry, RealPage’s diverse and innovative portfolio of products and solutions
puts the company in prime position to accelerate its market leadership
I am immensely proud of that
work and also pleased that the
transaction will provide us the
opportunity to work with Thoma
Bravo, a firm with tremendous
software investment and
operational capabilities.
Steve Winn,
Chairman and CEO,
RealPage
“ “
“
“Resident Services
45%
Property Management21%
Leasing and
Marketing17%
Asset Optimization14%
Professional and Other3%
2828
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Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
3.3x LTM Rev.May 13, 2020
COSTAR ACQUIRES HOMESNAP
Transaction Overview CoStar Financial Detail(1)
− On November 22, CoStar Group, Inc. (NASDAQ: CSGP) announced it entered into a definitive agreement to acquire Homesnap, Inc. (“Homesnap”) for $250MM in cash
− Homesnap provides agents and homebuyers with real-time MLS data and enhanced property features alongside digital marketing tools to reinforce client-agent relationships
− Over the last six years, CoStar has expanded into the rentals space through acquisitions of Apartments.com, ApartmentFinder, ForRent, Cozy Services and RentPath
− The transaction marks CoStar’s first major step into the “for-sale” residential real estate market, shortly after it emerged as a bidder for leading property data provider CoreLogic
Acquires
$250MM
Source: Capital IQ as of 1/22/2021, Wall Street Research, 451 Research, company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
($MM)
CoStar 3-Year Stock Price Performance & Select Acquisition History
June 20, 2019
February 11, 20202.6x LTM Rev.
November 8, 2018
October 1, 20197.0x LTM Rev.
October 26, 2020
November 22, 20206.3x 2020E Rev.
3.9x LTM Rev.September 12, 2017
7.4x LTM EBITDAApril 29, 2015
6.8x LTM Rev.March 3, 2014
$965
$1,192
$1,400
$1,648
$1,907
$280
$418 $507 $529
$663
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 24%
CAGR: 19%
2929
U.S. Commercial Real Estate ($16Tn(1))
U.S. Residential Real Estate ($27Tn(1))
COSTAR ACQUIRES HOMESNAP (CONT’D)
Strategic Rationale
Over the past 30 years, CoStar has
become the leading real estate
technology platform by working in
partnership with commercial real estate
brokers to serve their needs for data,
analytics and advertising exposure for
their property listings
Similarly, Homesnap has spent years
building tools that reinforce the agent-
client relationship and now works in very
close partnership with residential real
estate agents to serve their needs for
data, analytics and advertising exposure
for their property listings
Quadruple the number of professional,
paying brokers and active agent users on the
CoStar platforms from approximately
100,000 today to over 400,000
Select Transaction CommentaryHomesnap Highlights(2)
The tools and functionality developed by Homesnap for
residential property agents, such as lead generation, client
collaboration, and digital advertising, have direct applicability to
commercial brokers. Our goal is to make these enhanced
capabilities available to all of our audiences. ”
“
Andrew C. Florance, Founder &
CEO, CoStar Group
~$28MMCY2019A Revenue
$40MM CY2020E Revenue
1.3MM Active Listings
Triple CoStar’s U.S. total addressable market
from estimated $16 trillion today to over
$43Tn with the expansion into the
residential real estate space
Double the number of U.S. property listings
available across CoStar’s brands from 1.35
million today to over 2.6 million
Source: Company websites and press releases.(1) Value of the US Housing Market, Federal Reserve Flow of Funds and Urban Institute, March 2019. (2) The Real Deal Press Release.
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-21
INTERCONTINENTAL EXCHANGE (NYSE:ICE) ACQUIRES ELLIE MAE
Transaction Overview Intercontinental Exchange (NYSE:ICE) Financial Detail(1)
− On August 6, Intercontinental Exchange (NYSE: ICE) entered into a definitive agreement to acquire Ellie Mae, the leading cloud-based platform provider for the mortgage finance industry
− Transaction valued at an enterprise value of ~$11Bn (mix of 84% cash / 16% equity), 12.2x EV / 2020E revenue and 23.4 EV / 2020E Adj. EBITDA
Intercontinental Exchange (NYSE:ICE) 3-Year Stock Price Performance & Select Acquisition History
($MM)
Acquires
$11Bn
from
August 6, 2020
February 21, 2020June 12, 2019October 4, 2018
July 23, 2018
July 23, 2018
Source: Capital IQ as of 1/22/2021, Wall Street Research, company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus. Excludes impact of Ellie Mae acquisition.
$4,638 $4,974
$5,202 $5,933
$6,694
$2,965 $3,207
$3,366 $3,852
$4,197
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 9%
CAGR: 10%
3131
Intercontinental Exchange (NYSE: ICE) is
a Fortune 500 company formed in the
year 2000 to modernize markets. ICE
serves customers by operating the
exchanges, clearing houses and
information services they rely upon to
invest, trade and manage risk across
global financial and commodity markets
INTERCONTINENTAL EXCHANGE (NYSE:ICE) ACQUIRES ELLIE MAE (CONT’D)
Ellie Mae is the leading cloud-based
platform provider for the
mortgage finance industry. Ellie
Mae’s technology solutions
enable lenders to originate more
loans, lower origination costs, and
reduce the time to close with the
highest levels of compliance,
quality and efficiency
Two combined networks establish ICE as a leading provider of end-to-end
electronic mortgage workflow solutions
Large and growing addressable market driven by demand for automation
and efficiencies
Complementary platforms drive strong network effects and customer
efficiency gains
Expanded network/digital marketplace and data sets combined with
unique tools & analytics are critical to automating disconnected and
disparate processes across the mortgage workflow
Strategic Rationale Key Financial Metrics
~$900MM 2020E revenues
(Ellie Mae)
~$470MM 2020E adjusted
EBITDA
(Ellie Mae)
Including past acquisitions of both MERS & Simplifile and, upon completion of the
acquisition of Ellie Mae, ICE will have invested a total of roughly $11.5 billion in its
strategy to automate the mortgage workflow
Expected to realize run-rate cost synergies of $50 million to $65 million by the end of
year three
Expected that the acquisition of Ellie Mae will be accretive to adjusted EPS in the first
full year of ownership
Expected Ellie Mae transaction IRR of 10%; ICE ROIC will remain above ICE WACC in
year one, growing thereafter
MERS & SimplifileEllie Mae
Lead Generation & Application
Processing & Underwriting
Pre-Closing Closing Post-Closing Secondary
Leader in End-to-End Mortgage Workflow Solutions(1)
Brokers Mtg. Insurers
Appraisers
Credit, Flood &
Other Vendors
Borrowers
Doc. Quality
Controllers
Title Insurers
Settlement Agents
Notaries
Title Agents
Counties
Servicers
Investors
Regulators
Source: Company websites and press releases.(1) Intercontinental Exchange Transaction Deck.
3232
Select Transaction Commentary
INTERCONTINENTAL EXCHANGE (NYSE:ICE) ACQUIRES ELLIE MAE (CONT’D)
Ellie Mae Select Acquisition History Ellie Mae Offerings
Our planned acquisition represents a one-of-a-kind opportunity
to add an extraordinary enterprise with great leadership to our
family. It will also enhance ICE’s growth strategy in mortgage
technology, with complementary products and a wide array of
customers and stakeholders who will benefit from our core and
proven expertise in operating networks and marketplaces.”Jeffrey C. Sprecher,
Founder, Chairman & CEO,
Intercontinental Exchange
Nov 2015
Oct 2014
Oct 2017
Jan 2014
Aug 2011
Jan 2011
Dec 2009
Oct 2008
Ellie Mae acquired Velocify to combine Velocify’s lead management, engagement and distribution capabilities with Ellie Mae’s Encompass CRM and Consumer Connect
Mortgage Returns provided an automated marketing solution to help mortgage originators maximize profitability from clients, prospects and referral partners
Ellie Mae acquired AllRegs to expand its customer base and add a broad array of content and services that complement their portfolio of product offerings
MortgageCEO provided customer relationship management, and marketing automation solutions for the mortgage industry. The acquisition was consistent with Ellie Mae’s mission to automate every aspect of the mortgage process
Ellie Mae acquired Del Mar Datatrac in order to boost the company’s loan volume in 2011 to 1.5 million from 1 million with an expanded customer base
Mortgage Pricing Systems developed loan pricing technology for small, medium and large mortgage banks and lenders
Ellie Mae acquired Mavent to help the software developer address predatory lending protection and changes to the myriad mortgage regulations on both the state and federal level
Online Documents provided compliant electronic mortgage documents and related services to the mortgage industry
Oct 2019
With the acquisition of Capsilon, Ellie Mae is accelerating the vision of offering an end-to-end SaaS solution for companies in the mortgage industry
“
Loan Origination
Sell: Secondary Marketing & Investor
Delivery
Purchase: Correspondent Lending
Consumer & Wholesale Engagement
Source: Company websites and press releases.
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-21
BLACK KNIGHT ACQUIRES OPTIMAL BLUE
Transaction Overview Black Knight Financial Detail(1)
− On July 26, Black Knight, Inc. (NYSE:BKI) announced it entered into a definitive equity purchase agreement with affiliates of private equity firm GTCR, LLC to purchase Optimal Blue for an EV of $1.8Bn, subject to customary purchase price adjustments
− Black Knight will combine its Compass Analytics business with Optimal Blue in a newly formed entity with minority co-investors Cannae Holdings, Inc. and Thomas H. Lee Partners, L.P. Black Knight will own approximately 60% of the new entity
Acquires
$1.8Bn
Source: Capital IQ as of 1/22/2021, Wall Street Research, company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
Black Knight 3-Year Stock Price Performance & Select Acquisition History
March 3, 2020
September 12, 2019
February 8, 2019
November 6, 2018
June 4, 2018
from
($MM)
July 26, 2020
August 27, 2020
$1,052 $1,117
$1,178 $1,233
$1,431
$506 $543
$583 $607
$710
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 9%
CAGR: 8%
3434
Product &
Pricing Black Knight (NYSE:BKI) is a leading
provider of integrated software,
data and analytics solutions that
facilitate and automate many of the
business processes across the
homeownership lifecycle
Select Transaction Commentary
BLACK KNIGHT ACQUIRES OPTIMAL BLUE (CONT’D)
Founded in 2002 and
headquartered in Plano, TX, Optimal
Blue is the leading SaaS mortgage
marketplace supporting secondary
transactions among the industry's
largest network of residential
mortgage originators and investors
Source: Company websites and press releases.
Adds market-leading products to Black Knight's comprehensive
offerings, augmenting Black Knight's already strong origination
software franchise
Strategic Rationale Optimal Blue’s Offerings
Optimal Blue is a business that we have respected for many
years. By bringing Optimal Blue into the Black Knight family, we
will be adding industry-leading product, pricing and eligibility (PPE)
capabilities to our already robust set of solutions and enhancing
our already comprehensive data and analytics capabilities.”
“
Anthony Jabbour, CEO, Black
Knight
Expands SaaS product line and provides significant cross-selling
opportunities
Loan TradingMarketplace
Access
Counterparty
Oversight
Hedge
Analytics
Prospect
MarketingSocial Media Enterprise Data
Competitive Data Market Data Connections
Optimal Blue Select Acquisition History
Oct 2018
The product, pricing and eligibility (PPE) technology business of LoanLogics
Jul 2018
Developer of whole loan mortgage trade management software intended to bring automation and transparency to the spot market for mortgage loans
May 2017
Provides outsourced risk management and social media compliance services for the mortgage industry
(LoanDecisionsBusiness)
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INTUIT ACQUIRES CREDIT KARMA
Intuit 3-Year Stock Price Performance & Select Acquisition History
Transaction Overview Intuit Financial Detail(1)
− On February 24, Intuit Inc. (NasdaqGS:INTU) announced its acquisition of Credit Karma, Inc. for $7.1Bn
− The transaction was completed on December 3, 2020
− By agreeing to acquire Credit Karma, a company with nearly $1Bn in unaudited revenue in calendar year 2019, up 20% from the previous year, Intuit accelerates its mission of powering prosperity around the world
To Acquire
$7.1Bn
February 24, 2020
November 18, 2019
May 15, 2019
November 28, 2018
January 22, 2018
Source: Capital IQ as of 1/22/2021, Wall Street Research, Company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
$5,196
$6,025
$6,784
$7,679
$9,009
$1,980 $2,276 $2,481
$2,858 $3,010
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 11%
CAGR: 15%
($MM)
CY17A CY18A CY19A CY20E CY21E
Revenues $5,196 $6,025 $6,784 $7,679 $9,009
% Growth 10.7% 16.0% 12.6% 13.2% 17.3%
Adj. EBITDA $1,980 $2,276 $2,481 $2,858 $3,010
% Margin 38% 38% 37% 37% 33%
Adj. EPS $3.78 $5.09 $6.78 $6.92 $8.35
Stock Data 1/22/21 Valuation Multiples
Closing Price $374.85 EV / CY19A Revenue 14.9x
52 Week High $398.12 EV / CY20E Revenue 13.1x
52 Week Low $187.68
EV / CY19A Adj. EBITDA 40.7x
FD Shares Outstanding 276.0 EV / CY20E Adj. EBITDA 35.3x
Equity Value $103,459
Plus: Debt & Minority Interest $2,634 Price / CY19A EPS 55.3x
Less: Cash and Equivalents ($5,174) Price / CY20E EPS 54.2x
Enterprise Value $100,919
3636
The platform, leveraging artificial intelligence and connections to over
100 financial partners, will help consumers:Founded in 2007 by Ken Lin, Credit
Karma is a consumer technology
company that provides financing
services including identity
monitoring, applying for credit
cards, shopping for loans (car, home
and personal), filing its taxes
Select Transaction Commentary
INTUIT ACQUIRES CREDIT KARMA (CONT’D)
Founded in 1983, Intuit is a global
financial platform company with
products including TurboTax,
QuickBooks, Mint and Turbo. Its
ecosystem of financial management
solutions serves approximately 50
million customers worldwide
Source: Company websites and press releases.
The combination brings together two technology leaders to help solve the
personal finance problems that consumers face today -- managing debt,
maximizing savings, access to better credit cards and loans -- with an aim to
put more money in consumers’ pockets
Strategic Rationale Combined Platform
Our mission is to power prosperity around the world with a bold
goal of doubling the household savings rate for customers on our
platform. We wake up every day trying to help consumers make
ends meet. By joining forces with Credit Karma, we can create a
personalized financial assistant that will help consumers find the
right financial products, put more money in their pockets and
provide insights and advice, enabling them to buy the home
they’ve always dreamed about, pay for education and take the
vacation they’ve always wanted.”
“
Sasan Goodarzi, CEO, Intuit
Credit Karma Business Model
Find the right financial products by matching consumers with pre-approved
offers on loans and credit cards with competitive interest rates that are right
for them.
Put more money in their pockets by connecting them to higher yield savings
accounts and, in the future, will provide faster access to their hard-earned
cash.
Provide insights and advice to help consumers make better decisions about
their money and improve their credit score.
RecommendationsScores & ReportsPaid by the Bank
or Lender
Use data to analyze
credit profile and
make product
recommendations
Get access to credit
scores and reports
from TransUnion and
Equifax, with weekly
updates
Get a product through
one of Credit Karma’s
recommendations, and
the bank or lender pays
the company
3737
0mm
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$0
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$70
Jan
-18
Ap
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FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH
FAF 3-Year Stock Price Performance & Select Acquisition History
Transaction Overview FAF Financial Detail(1)
− On February 13, First American Financial Corporation (NYSE:FAF) announced its acquisition of Docutech for $350MM from Founder & Chairman Ty Jenkins and investor Serent Capital. The transaction closed on March 3
− The all-cash deal is expected to be accretive to FAF’s full-year 2020 EPS by $0.10
− Docutech’s leadership and staff are expected to remain with the Company following the transaction
February 13, 2020
Acquired
$350MM
Source: Capital IQ as of 1/22/2021, Wall Street Research, Company websites, press releases and earnings transcripts.(1) Projected figures per Wall Street research consensus.
($MM)
CY17A CY18A CY19A CY20E CY21E
Revenues $5,772 $5,748 $6,202 $6,782 $6,352
% Growth 3.5% (0.4%) 7.9% 9.4% (6.3%)
Adj. EBITDA $777 $790 $1,091 $923 $810
% Margin 13% 14% 18% 14% 13%
Adj. EPS $3.70 $4.68 $5.81 $5.44 $4.82
Stock Data 1/22/21 Valuation Multiples
Closing Price $54.63 EV / CY19A Revenue 1.0x
52 Week High $66.78 EV / CY20E Revenue 0.9x
52 Week Low $29.36
EV / CY19A Adj. EBITDA 5.9x
FD Shares Outstanding 111.6 EV / CY20E Adj. EBITDA 7.0x
Equity Value $6,097
Plus: Debt & Minority Interest $1,851 Price / CY19A EPS 9.4x
Less: Cash and Equivalents ($1,512) Price / CY20E EPS 10.0x
Enterprise Value $6,435
$5,772 $5,748 $6,202
$6,782 $6,352
$777 $790 $1,091 $923 $810
CY17A CY18A CY19A CY20E CY21E
Revenues Adj. EBITDA
CAGR: 1%
CAGR: 2%
3838
Founded in 1889, First American
Financial is a financial services
provider focusing on the real estate
industry, offering insurance (title
and home), lender solutions and real
estate data & analytics
Select Transaction Commentary
FIRST AMERICAN FINANCIAL ACQUIRES DOCUTECH (CONT’D)
Founded in 1991, Docutech provides
dynamic document technologies
that streamline and financial
transactions for consumers and
lenders. The company generates
revenue on a per-order model
Source: Company websites and press releases.
The acquisition of Docutech will give FAF an end-to-end digital mortgage
platform, improving connectivity with lender customers and providing
additional upside in the origination market
Strategic Rationale Select Docutech Customers / Partners
[This acquisition] reflects our dedication to improving the home-
buying experience and driving the digital transformation of the
real estate settlement process. Together, we’re uniquely
positioned to provide collateral file management from the
inception of the mortgage process through post-closing, which will
help accelerate the evolution of real estate closings.”
“
Dennis Gilmore, CEO, First
American Financial
+175 Lenders
Docutech Offerings
Docutech’s flagship solution dynamically
creates document packages, leveraging
integrations with loan origination systems
to eliminate data entry, improve
compliance, reduce operational costs and
accelerate transactions. The platform
supports first mortgage, home equity and
personal unsecured loan lending
ConformXDocument generation engine for the
lending industry
SolexeDelivery, eSign, eClose and eVault
platform, integrating with ConformX
Processes 15%+ of U.S.
mortgage volume
Solex Collaboration PlatformAutomates settlement/closing agent
fee verification for mortgage lenders
Income VerificationAutomates tax transcript processing to
verify income and improve compliance
3939
I. PROPTECH MARKET SUMMARY
II. PUBLIC MARKETS
III. M&A AND MARKET COMPS BACK-UP
4040
(100%)
(50%)
0%
50%
100%
150%
200%
250%
300%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
239%
66%
40%
7%
47%
4%(1%)
14%
(3%)
Commercial Brokerage
(1%)7%
Credit / Mortgage Marketing
LTM Share Price Performance
PROPTECH PUBLIC COMPANY PERFORMANCE
RE Media / Portals
Property Mgmt Software
Residential Brokerage
LTM Share Price Performance
14%
Public PropTech Ecosystem
RE Data / RE Software
40%
Broader Data
4%66%239% 47%
Source: Capital IQ as of 1/22/2021.
RDFN: 207%EXPI: 837%RLGY: 57%
RMAX: 3%PURP: (13%)
RE Sharing Economy / Travel
(3%)
Credit / Mortgage Marketing
Property Management
Software
Broader DataRE Media / PortalsResidential Brokerage
RE Data / RE Software
Commercial Brokerage
Traditional Mortgage / Title
Traditional Mortgage / Title
RE Sharing Economy / Travel
4141
34.5x
28.0x
22.6x 22.6x19.9x
15.4x11.9x
8.8x6.8x
16.9x
7.9x 7.1x 6.6x
4.0x 4.0x2.9x
1.4x 1.2x
Enterprise Value / 2021E Revenue Enterprise Value / 2021E EBITDA
Public PropTech Ecosystem
PROPTECH PUBLIC COMPANY VALUATION
Source: Capital IQ as of 1/22/2021.Multiples represent median value of sector group.
2021E Revenue / 2021E EBITDA Multiple
Residential Brokerage
Traditional Mortgage
/ Title
RE Sharing Economy /
Travel
RE Data / RE Software
Credit / Mortgage Marketing
Property Mgmt
Software
RE Media / Portals
Broader Data
Commercial Brokerage
RE Data / RE Software
Traditional Mortgage
/ Title
Commercial Brokerage
Credit / Mortgage Marketing
RE Sharing Economy /
Travel
Property Mgmt
Software
RE Media / Portals
Broader Data
Residential Brokerage
1.2x / 11.9x7.9x / 34.5x 6.6x / 22.6x16.9x / 28.0x2.9x / 8.8x 4.0x / 15.4x 1.4x / 6.8x4.0x / 22.6x7.1x / 19.9x
Credit / Mortgage Marketing
Property Management
Software
Broader DataRE Media / PortalsResidential Brokerage
RE Data / RE Software
Commercial Brokerage
Traditional Mortgage / Title
RE Sharing Economy / Travel
4242
AIRBNB COMPLETES IPO
Source: Company filings, Wall Street Journal and press releases.(1) Market Capitalization and Enterprise Value as of 1/22/2021.
Brian CheskyCo-Founder & Chief
Executive Officer
− Airbnb, Inc., the San Francisco based home-sharing platform, went public on December 10, selling 51.5MM in Class A shares at $68.00 per share for total proceeds of $3.5Bn
− The company’s shares gained ~113% on their trading debut, closing at $144.71
− The company currently trades at an enterprise value of $113.9Bn(1), which represents ~31.4x LTM (as of September 30, 2020) revenue
Goes public on 12/10 (NASDAQ: ABNB)
Market Cap$109.6Bn(1)
Transaction Overview Management Team
Company History
Joe GebbiaCo-Founder & Head of
Samara
Nathan BlecharczykCo-Founder & Chief
Strategy Officer
Dave StephensonChief Financial Officer
Aristotle BaloghChief Technology Officer
Catherine PowellGlobal Head of Hosting
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Fall-07: Brian and Joe
host first guest
March-08: Officially
launches during SXSW
March-09: Changes its
name to Airbnb
September-11: Expands internationally with
German office
Summer-13: Opens 888 Brannan Street
Headquarters
March-15: Alternative accommodations
provider for Rio 2016
March-17: Launches
Chinese brand, Aibiying
November-10:Launches mobile app
and Instant Book feature
May-12: Introduces
$1MM Host Guarantee
July-14: Introduces the
Belo
November-16: Launches
Experiences
March-19: Acquires
Hotel Tonight
April-20: Launches
Online Experiences
March-20: Launches
Frontline Stays
4343Source: Company filings, Bloomberg and press releases.
AIRBNB COMPLETES IPO (CONT’D)
Financial Profile ($MM)
$5.1$5.5 $5.6
$4.8
$7.7 $7.7 $7.5
$6.5
$10.0 $9.8 $9.7
$8.5
$6.8
$3.2
$8.0
44.4 48.9 49.5 43.062.2 64.8 65.8 57.5
81.3 83.9 85.9 75.857.1
28.061.8
$0. 0
$2. 0
$4. 0
$6. 0
$8. 0
$10.0
$12.0
$14.0
Q117A
Q217A
Q317A
Q417A
Q118A
Q218A
Q318A
Q418A
Q119A
Q219A
Q319A
Q419A
Q120A
Q220A
Q320A
Quarterly Gross Booking Value Quarterly Nights and Experiences Booked (MM)
Quarterly Gross Booking Value ($Bn)
$8.1
$13.9
$21.0
$29.4
$38.0
72.4
125.7
185.8
250.3
326.9
$0. 0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
CY15A CY16A CY17A CY18A CY19A
Annual Gross Booking Value Annual Nights and Experiences Booked (MM)
Annual Gross Booking Value ($Bn)
$919
$1,656
$2,562
$3,652
$4,805
$(94) $(53)
$60 $171
$(253) $(1,000)
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
CY15A CY16A CY17A CY18A CY19A
Revenue Adjusted EBITDA
4444Source: Company filings, Bloomberg and press releases.(1) As of 9/30/2020. (2) As of 10/2020.
AIRBNB COMPLETES IPO (CONT’D)
Platform for Hosts
Discover Hosting
Show potential hosts how much they can earn
and how to get started
listing their space
List Your Space
Hosts describe their space, add photos and
choose their booking
setting
Get Pricing Help
Offer tools that automatically adjust
hosts’ prices to help
them get more bookings
Choose When to Host
Hosts use the calendar to open dates for guests
and set customer pricing
Get Feedback
Share guests’ reviews with hosts, suggest ways
to improve and build
their business
800MM+Airbnb guest arrivals all-time(1)
4MM+Hosts on Airbnb(1)
$100Bn+Earned by hosts, all-time(2)
$7.9KAverage annual earnings per
host(1)
Platform for Guests
Search
A tight set of filters helps guests find the right type
of experience they are
looking for
Listings
Guests get to know everything they need
through photos, reviews
and detailed descriptions
Checkout
Guests review trip details and pay all on one
simplified screen with
highest security in mind
Reservation Details
One clear, easy-to-follow page with everything
guests need to know
about their trip
Messaging
Tools for guests to ask questions, get to know
their host, and easily
coordinate with hosts
Reviews
Help guests find the right fit and let hosts know
what they’re doing well
or can improve
4545
PARENT OF QUICKEN LOANS & ROCKET MORTGAGE IPO
Source: Company filings, Wall Street Journal and press releases.(1) Market Capitalization as of 1/22/2021.(2) Excludes funding facilities liabilities.
Management Team
Jay Farner, CEO
Joined Quicken Loans in 1996
Julie Booth, CFO
Joined Quicken Loans in 2003
Robert Walters, President & COO
Joined Quicken Loans in 1997
Dan Gilbert, Chairman
Founded Quicken Loans in 1985
− Rocket Companies, the Detroit-based mortgage giant, went public on August 6, selling 100MM in Class A shares at $18.00 per share for total proceeds of $1.8Bn
− The company’s shares gained ~20% on their trading debut, closing at $21.51
− The company currently trades at an enterprise value of $40.8Bn(2), which represents 3.1x LTM revenue and 5.2x LTM EBITDA, based on LTM revenue and EBITDA of $13.2Bn and $7.8Bn, respectively, as of September 30
− Headquartered in Detroit, MI, the company was founded in 1985 and has increased its market share to 9.5% in Q1 2020
− Rocket Companies currently has ~20,000 employees, all of whom are based in the United States
Went public on 6/8 (NYSE: RKT)
Market Cap$40.1Bn(1)
Transaction Overview Post-IPO Stock Price Performance
0mm
20mm
40mm
60mm
80mm
100mm
120mm
$0
$5
$10
$15
$20
$25
$30
$35
Au
g-2
0
Sep
-20
Oct
-20
No
v-2
0
De
c-2
0
Jan
-21
4646
Family of Companies
Source: Company filings, Bloomberg and press releases.
Quicken Loans / Rocket Mortgage Offerings
Founded in 1985, Quicken Loans offers mortgages, refinancing and loans. It
also provides technology, education and customer service to help with the
mortgage process
Flagship Home Platform
Direct to Consumer Partner Network Servicing
Product Extension Geographic Expansion
Mortgage Origination: virtually verify
financial info, customize mortgage, get
approved & lock the rate
Refinancing: online application process
with less paperwork, and ability to track
the status of the application
Mortgage Rate Tracker: email and text
updates on rates, mortgage news, etc.
Learning Center: listed articles to understand the mortgage process
RE Agent Referrals: refer clients to Quicken’s sister company, Rocket
Homes, which partners with top-rated agents in all 50 states
Calculators: downloadable mortgage calculators, affordability calculators,
refinance calculators and amortization calculators
PARENT OF QUICKEN LOANS & ROCKET MORTGAGE IPO (CONT’D)
4747
PARENT OF QUICKEN LOANS & ROCKET MORTGAGE IPO (CONT’D)
Source: Company filings and press releases.
Rocket Companies Financial Detail ($MM) Rocket Companies Revenue Breakdown ($MM)
− Track record of creating value through profitable growth with a capital-light business model
− Significant EBITDA margin expansion over the last 3 years, growing from 13% in 2018 to 56% in LTM 9/20
Total 2019 Servicing Clients: 1.8MM
$2,928
$4,911
$12,367
$820
$950
$1,028
($229)
($1,597) ($2,051)
$588
$739
$1,519
$4,210
$5,120
$12,967
($3,000)
($1,000)
$1, 000
$3, 000
$5, 000
$7, 000
$9, 000
$11,000
$13,000
$15,000
$17,000
CY18A CY19A LTM as of 9/20
Gain on Sale of Loans Servicing Fee Income
Change in Fair Value of MSRs Other Income
Interest Income
$4,210
$5,120
$12,967
$529
$1,940
$8,733
$613 $892
$7,308
13%
38%
67%
15%17%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$0
$2, 000
$4, 000
$6, 000
$8, 000
$10,000
$12,000
$14,000
CY18A CY19A LTM as of 9/20
Revenues Adj. EBITDA
Net Income % EBITDA Margin
% Net Income Margin
4848
» SPACs are publicly traded “blank check” companies (i.e., “blind pool” capital) launched to acquire a public-market ready operating business
» SPAC “sponsors” are typically experienced executive teams and / or deal professionals who take a shell company public, then source / diligence a deal with a private operating company, negotiate the transaction and generally provide ongoing expertise / sit on the board (but do not usually act as operators)
» The SPAC market shattered historical records in 2020 with 248 SPAC IPOs in the U.S. raising $83.0Bn in capital(1)
» Given general momentum in the PropTech market and public market investor appetite to invest behind the PropTech market, there have been multiple successful PropTech mergers and active SPACs currently focused on the PropTech space (e.g., Property Solutions Acquisition Corp & Lionheart Acquisition Corp. II)
THE RISING ROLE OF SPACS (SPECIAL PURPOSE ACQUISITION COMPANIES)
SPAC Industry Overview
Selected PropTech-Related SPACs
Transaction Value at Announcement: $4.8Bn
Raising PIPE capital from
To merge with To merge with
Transaction Value at Announcement: $523MM
Raising PIPE capital from
To merge with
Transaction Value at Announcement: $1.7Bn
Raising PIPE capital from
To merge with
Transaction Value at Announcement: $4.2Bn
Raising PIPE capital from
Source: Company websites, press releases, company investor presentations, Wall Street research.(1) SPAC Insider as of 1/4/2021.
Transaction Value at Announcement: $1.9Bn
Raising PIPE capital from
To merge with To merge with
Transaction Value at Announcement: $16.1Bn
Raising PIPE capital from
Undisclosed
4949
OPENDOOR WENT PUBLIC THROUGH MERGER WITH SCH (NYSE: IPOB)
− On September 15, Opendoor Labs, Inc. announced that it entered into a definitive agreement to merge with Social Capital Hedosophia Corp. II (NYSE: IPOB), a blank-check special purpose acquisition company
− The offer price implies an enterprise value of ~$4.8Bn, which represents ~1.0x 2019A revenue
− The transaction was expected to provide up to $1.0Bn in cash proceeds, including a fully committed PIPE of $600MM and up to $414MM of cash held in the trust account of Social Capital Hedosophia Holdings Corp. II
9.5% PIPE
6.6% IPOB Shareholders
3.0% Management Awards(2)
1.6% IPOB Sponsors(3)
79.3% Existing Shareholders
Transaction Overview Pro-Forma Ownership Structure(1)
Financial Overview(4) Key Metrics
Source: Company websites, press releases and company investor presentation.(1) Total shares include 500MM rollover equity shares, 41.4MM IPOB public shares, 60MM shares from PIPE, 10.4MM IPOB founder shares and 18.9MM bonus shares to management.(2) 1.0% of the management bonus award will be allocated to the CEO, while the remainder will be allocated by the compensation committee of the combined company.
(3) Excludes investment in PIPE. (4) Estimates for CY20E-CY23E per company investor presentation as of 9/15/2020.(5) Contribution Margin defined as GAAP Gross Profit less selling and holding costs associated with the sale of a home.(6) Contribution Margin as of Q1 2020.
Unit Economics(6) Economies of Scale
$8K/homeContribution Margin(5) (CM)
$5K/homeCM After Interest
$19K/homeLong-Term CM Target
50%Reduction of Spend/Home
Over Last 2 Years
40%+Bulk Pricing Discounts on Home
Refurbishment Materials
10K+Subcontractors on Platform
To merge with
Transaction Value at Announcement:
$4.8Bn
$1,838
$4,741
$2,455
$3,456
$6,183
$9,767
(7.1%)
(4.6%)
(5.7%)(5.4%)
(2.0%)
0.1%
(8.5%)
(6.5%)
(4.5%)
(2.5%)
(0.5%)
1.5%
3.5%
-
$2,000
$4,000
$6,000
$8,000
$10,000
CY18A CY19A CY20E CY21E CY22E CY23E
Total Revenue ($MM) Adj. EBITDA Margin
5050
7,470
18,799
9,673
13,458
24,030
37,689
CY18A CY19A CY20E CY21E CY22E CY23E
OPENDOOR WENT PUBLIC THROUGH MERGER WITH SCH (CONT’D)
Large, fragmented and undisrupted addressable market accelerated
by the need for convenience, speed, trust and safety
Strong tailwinds driven by the COVID-19 pandemic and rapidly
growing digitally-native millennial population
Enhanced credibility with customers, premier sponsor expertise and
access to more affordable capital as a result of the merger
Significant cost and pricing advantages due to economies of scale and
strong network effects powered by ML-based service stack
Substantial opportunities for expansion into high-margin segments
such as home warranty and moving services as the platform evolves
Company Overview
21 Markets 5MMAnnual Homes Sold
$1.3TnTotal Annual GMV
<1%Online Penetration
Digital Market Leader with Rapid Growth and Scalable Business Model Residential RE Market Opportunity
$10Bn Homes Sold
80K Homeowners Served
70 Net Promoter Score(2) Expand Offerings
Buy-Renovate-Sell
Refine Service StackAttract Customers
Investment Thesis Homes Sold(1)
Source: Company websites, press releases and company investor presentation.(1) Estimates for CY20E-CY23E per company investor presentation as of 9/15/2020.(2) Net Promoter Score metrics based on company data, public filings and 3rd-party research.
5151
Established Target CM / Home
Title & Escrow $1,750
Recently Launched
Home Loans $5,000
Buy with Opendoor $5,000
List with Opendoor $3,750
To Be Launched
Home Warranty, Upgrade & Remodel, Home Insurance, Moving Services
$7,500
OPENDOOR WENT PUBLIC THROUGH MERGER WITH SCH (CONT’D)
Source: Company websites, press releases and company investor presentation.(1) Attach rate based on total acquisition and Resale Closes in markets where company title product is active, beginning 3Q17.(2) Active adjacent services Contribution Margin / home based on company forecasts assuming $250K home. To be launched category reflects company estimates.
7.3%
4.0%
7.0%
(2.6%)
(0.7%) 0.6%
2.4%
Adjusted Gross Margin Selling Costs Holdings Costs Contribution Margin Cost Optimization Additional Services Long-Term TargetContribution Margin
Phoenix, AZ at Scale
Phoenix, AZ Unit Economics
Q1 2020 Margins at 4% Market Share
Title & Escrow Transactions Since Launch(1) Adjacent Services Roadmap(2)
103510
1,134
2,381
3,9514,720
5,394
7,031
8,157
5.7%
21.6%
36.1%
57.8%
74.5% 75.8% 78.4% 75.9%82.9%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
2000
4000
6000
8000
10000
12000
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9
# of Transactions Attach Rate
$11K/home$1.5K/home
$6.5K/home $19K/home
$1.9K/home
$7.1K/home$20K/home
5252
FINANCE OF AMERICA TO GO PUBLIC THROUGH MERGER WITH RPLA
53% Existing
Shareholders(2)
Transaction Overview
Key Metrics
Source: Company websites, press releases and company investor presentation.(1) Assumes no Replay stockholder has exercised its redemption rights to receive cash from the trust account. (2) Adjustments include depreciation of fixed assets, amortization of intangible assets, corporate debt interest expense and changes in deferred purchase price liabilities.
Pro-Forma Ownership Structure
Financial Overview
A Portfolio Company of
Transaction Value at Announcement: $1.9Bn
Pending
To merge with
>1,000Fee Based Clients
45%CY18A-CY20E Revenue CAGR
2% Replay Sponsor
15% Replay Stockholders
13% PIPE Investors
70% Seller Rollover
$789$894
$1,666$1,754
$1,893
$60 $124
$550 $577$667
$35 $57
$348$410
$476
8%
14%
33% 33%35%
4%6%
21% 23% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$0
$500
$1, 000
$1, 500
$2, 000
CY18A CY19A CY20E CY21E CY22E
Revenue Adj. EBITDA Adj. Net Income
% EBITDA Margin % Net Income Margin
− On October 13, Finance of America announced that it entered into a definitive agreement to merge with Replay Acquisition Corp. (NYSE: RPLA), a blank-check special purpose acquisition company
− The transaction implies a pro forma combined equity value of $1.9Bn, which represents 9.1x 2021E revenue
− The is expected to close in the first half of 2021 and will be funded by a combination of $288MM of RPLA cash held in a trust account and $250MM of proceeds from PIPE raise, with existing shareholders receiving 70% of pro-forma equity(1)
$32BnCY20E Total Originations
Across 99,000+ Customers
$550MMCY20E Adj. EBITDA(2)
~100Unique Investors
33%CY20E Adj. EBITDA Margin(2)
5353
FINANCE OF AMERICA TO GO PUBLIC (CONT’D)
Investment Thesis
Source: Company websites, press releases and company investor presentation.
Addressable Markets
Finance of America Platform and Opportunity
Diversified, capital-light business with fully integrated capabilities,
favorable housing market tailwinds and a large TAM
Built to resist cyclical downsides of traditional mortgage businesses
with best-in class technology and product diversity
Proven product innovator and successful acquirer with ability to pivot
resources efficiently to take advantage of market opportunities
High quality management team with a proven history of value
creation and acquisition expertise
Today Tomorrow
Lending Services Investing Near Term Innovation and M&A
Agricultural Loans
Retirement Mortgage
Fund Management
Point of Sale Lending
Home Improvement
Title, appraisal management, MSR
brokerage and valuation, student lending technology
and senior living platform
Broker / dealer platform, leading the distribution of assets generated
by origination channels
Agency and non-agency mortgages
Government and proprietary reverse
mortgages
Fix and flip multi-property and single property investor
loans
Distribution network of ~280 locations, 1,000+ loan officers, network of 1,200+ third party originators, and
digital / direct-to-consumer
$11BnMortgage Debt Outstanding
$7BnUntapped Senior Home Equity
$3BnHome Value of Investor Properties
$41BnU.S. Focused Fixed
Income AUM
Enables Purchase of a
Customer’s Largest Financial
Asset and Achieve Goal of
HomeownershipStrong Value
Proposition for
Customers with Low
Market Penetration
TodayGrowing
Demographic
Demand With Aging
Housing Stock in
Need of Upgrade
Dearth of Investable
Assets Providing
Attractive Risk
Adjusted Yields
5454
PORCH WENT PUBLIC THROUGH MERGER WITH PTAC (NASDAQ: PTAC)
− On July 31, Porch.com, Inc. announced that it entered into a definitive agreement to merge with PropTech Acquisition Corporation (NASDAQ: PTAC), a blank-check special purpose acquisition company
− At announcement, the transaction implied a pro forma combined enterprise value of $523MM, which represents 4.4x 2021E revenue
− After the shareholders vote, shares of the special-purpose acquisition company closed at $12.68, up 25 percent from July when the Porch deal was announced
53% Existing
Shareholders(2)
Transaction Overview Investment Thesis
To merge with
Transaction Value at Announcement:
$523MM
Company Overview Financial Overview
1. Porch provides software and services to home services companies such as home inspection and moving
2. Through these companies, Porch gains early access to homebuyers weeks before everyone else
3. Porch generates B2B2C transactional revenues by facilitating key and high value service purchases for these consumers
Porch’s Strategy in the Home Services Industry
Large Addressable Market
>$200Bn addressable TAM that will continue to expand
Defensible Moat
Software for home services provides access to unique data about homebuyers
Predictable Business Model
Software provides consistent, recurring and highly scalable B2B2C
transaction revenue
Attractive Financial Results
49% expected 3-year revenue CAGR(1), 78% 2020E gross margins and 30x
LTV/CAC(2)
$36
$57
$73
$120
(80.6%)
(52.6%)
(13.7%)
5.8%
-130.0%
-80.0%
-30.0%
20.0%
70.0%
120.0%
0
20
40
60
80
100
120
140
CY18A CY19A CY20E CY21E
Total Revenue ($MM) Adj. EBITDA Margin
Source: Company websites, press releases and company investor presentation.(1) Based on 2018 pro forma through 2021E Porch revenue.(2) LTV is calculated by taking total contribution margin after CAC, divided by the number of customers and then multiplied by the average expected life of an account, capped at 5 years. CAC is
the Customer Acquisition Cost and represents all variable costs (sales and marketing) required on average to acquire a new company. The LTV/CAC shown here is for an average inspection company Porch acquires.
5555
I. PROPTECH MARKET SUMMARY
II. PUBLIC MARKETS
III. M&A AND MARKET COMPS BACK-UP
5656
12/24/2021 NA NA NA NA NA Provider of cloud-based software for homebuilders, remodelers and specialty contractors
12/21/2020 NA NA NA NA NA Developer of ResWare title and escrow production platform
12/21/2020 $10,200 9.1x NA 32.5x NA Provider of a technology platform that enables real estate owners and managers to change how people
experience and use rental space
12/18/2021Houses.com domain
nameNA NA NA NA NA The acquisition of Houses.com sets the stage for CoStar Group's entry into residential real estate marketplaces
12/16/2020 NA NA NA NA NA Developer of an online platform for independent landlords and tenants that provides the tools, education and
support to make renting easy
12/8/2020 NA NA NA NA NA Provider of web-based software solutions for the real estate industry
11/22/2020 250 NA NA NA NA Provides agents and homebuyers with real-time MLS data and enhanced property features alongside digital
marketing tools to reinforce client-agent relationships
11/9/2021 NA NA NA NA NA Provider of original InsurTech that allows consumers and businesses to easily compare and purchase insurance
11/3/2020 NA NA NA NA NA Developer of technology that supports the ongoing valuation, underwriting and asset management of
commercial and multifamily real estate assets and loans
10/29/2020 NA NA NA NA NA Provider of residential property management software
10/23/2020 NA NA NA NA NA Leading provider of transaction management, forms and back-office software to the residential real estate
broker, MLS and agent ecosystem
10/15/2020 NA NA NA NA NA Provider of a personal finance app that lets people save for a down payment on a home, manage the equity in
their home and monitor their credit score
10/5/2020 NA NA NA NA NA Developer of a real estate technology platform intended to provide a seamless home closing experience
9/21/2020 NA NA NA NA NA Developer of a location intelligence software designed to collect and analyze geospatial data
9/15/2020 NA NA NA NA NA Developer of risk management software intended to help the residential mortgage industry solve fundamental
problems and minimize operational risks
9/1/2020 180 NA NA NA NA Provider of online consumer payment portals for real estate-related payment processing
9/1/2020 NA NA NA NA NA Developer of a digital platform designed for mortgage loan originators and borrowers
8/31/2020 NA NA NA NA NA Operator of a B2B internet of things company intended to offer internet of things services to the real estate
industry, with a focus on access and energy management tools
8/30/2020 NA NA NA NA NA Developer of construction accounting software and payroll services for small- to mid-sized specialty contractors
8/27/2020 NA NA NA NA NA Developer and provider of digital document verification solutions
APPENDIX
($MM)
Select M&A Activity
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.
20
20
5757
8/18/2020 NA NA NA NA NA Developer of a property disclosure software designed to help real estate agents manage property disclosures
listings
8/6/2020 NA NA NA NA NA Developer of lease administration software
8/6/2020 $11,000 12.2x NA 23.4x NA Developer of software products and services designed to be used by mortgage lenders to process mortgage
applications
8/3/2020 NA NA NA NA NA Developer of real estate search and consumer engagement platform
7/27/2020 1,800 NA NA NA NA Operator of an online mortgage marketplace catering to investors, lenders and originators
7/22/2020 NA NA NA NA NA Developer of software solutions for enabling construction companies
7/8/2020 NA NA NA NA NA Operator of a real estate data technology
7/7/2020 NA NA NA NA NA Provider of home inspection and building services intended to provide interior and exterior caring services
6/30/2020 NA NA NA NA NA Provider of CMA platform that assists real estate agents with managing deals and graphics generation
6/25/2020 NA NA NA NA NA Provider of mortgage lending and real estate software solution that maximizes repeat business for lenders and
agents by empowering consumers to build wealth through homeownership
6/24/2020 NA NA NA NA NA Provider of real estate search applications, which actively manages over $1 trillion worth of active listings data
from over 600 individual Multiple Listings Services (MLS)
6/24/2020 NA NA NA NA NA Provider of a residential real estate search site and end-to-end platform for consumers and agents to
collaborate
6/11/2020 NA NA NA NA NA Provider of a cloud-based platform for institutional real estate investors and global property managers
6/11/2020 NA NA NA NA NA Provider of a technology platform designed to build highly personalized, premium prefab homes
6/4/2020 NA NA NA NA NA Provider of professional appraisal management services
5/13/2020 NA NA NA NA NA Provider of tools to access data across the entire enterprise that optimize space use, meeting room
coordination, workplace moves and asset management
5/13/2020 190 3.3x NA NA NA Provider of a platform for digital commercial real estate transactions that accelerates the property sales process
4/2/2020 NA NA NA NA NA Provider of a web-based real estate financial modeling, analysis, and presentation application that includes a
suite of smart, flexible models, calculators and tools for the single-family real estate sector
3/31/2020 NA NA NA NA NA Provider of software solutions for the UK social housing sector
3/9/2020 NA NA NA NA NA Provider of a visual marketing platform designed to offer videos and 3D models
APPENDIX
($MM)
Select M&A Activity (cont’d)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.(1) LTM multiples reflect 2020E figures.
(1) (1)
20
20
5858
3/3/2020 NA NA NA NA NA Provider of automated valuation models and other property valuation tools for appraisers, appraisal
management companies, lenders, investors and government agencies
2/25/2020 $7,100 7.1x NA NA NA Developer of financial education and recommendation platform intended to offer free credit scores and
reports with monitoring
2/19/2020 NA NA NA NA NA Provider of online commercial real estate marketplace that connects tenants and buyers with brokers
2/13/2020 350 NA NA NA NA Provider of document, eSign, eClosing and compliance technology
1/22/2020 NA NA NA NA NA Provider of multifamily real estate resident engagement solution
1/22/2020 NA NA NA NA NA Provider of geographic data sciences and predictive, location-based analytics for businesses across the U.S. and
Canada
1/14/2020 NA NA NA NA NA Provider of client relationship management (CRM) software company for CRE brokers
1/8/2020 NA NA NA NA NA Provider of property management software and services for public and affordable housing organizations in the
United States
12/18/2019 NA NA NA NA NA Provider of data science, machine learning and human interaction to help real estate professionals better
leverage the value of their personal network
12/18/2019 NA NA NA NA NA Provider of technology for home subscription sign-ups, and associated concierge offerings
12/11/2019 NA NA NA NA NA Provider of an Investor Relationship Management (IRM) platform
12/6/2019 NA NA NA NA NA Provider of augmented reality technology for home improvement technicians
11/19/2019 NA NA NA NA NA Provider of a system designed to integrate artificial intelligence and machine learning solutions into an
organization's overall business strategy
11/12/2019 NA NA NA NA NA Provider of real estate marketing automation services
11/7/2019Global R elocat ion B usiness
400 NA NA NA NA Provider of Relocation assets of Realogy's Cartus subsidiary
11/6/2019 580 11.6x NA NA NA Provider of property management SaaS solutions
11/6/2019 NA NA NA NA NA Provider of an automated RFP solution for commercial real estate property managers
10/28/2019 NA NA NA NA NA Provider of cloud-based document management technologies for the mortgage industry
10/16/2019 NA NA NA NA NA Provider of a lease automation and software platform for retail landlords
10/1/2019 450 7.0x NA 28.1x NA Provider of data benchmarking, analytics and marketplace insights to global hospitality sectors
APPENDIXSelect M&A Activity (cont’d)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.(1) LTM multiples reflect 2019E figures.
(1) (1)
20
19
20
20
5959
10/1/2019 NA NA NA NA NA Provider of a search platform for real estate properties designed to collaborate and make the process of finding
and purchasing a home more efficient and personalized
9/25/2019 NA NA NA NA NA Provider of property tax management services to lenders, real estate investment trusts, and property
management companies
9/20/2019 $152 NA NA NA NA Provider of storage facility services
9/12/2019 NA NA NA NA NA Developer of a software platform for real estate brokers
9/10/2019 NA NA NA NA NA Provider of an end-to-end marketplace designed to make renting apartments easy
9/6/2019 NA NA NA NA NA Provider of a showing scheduling platform for the residential real estate industry
9/5/2019 NA NA NA NA NA Provider of national residential and commercial title and escrow services
8/27/2019 NA NA NA NA NA Platform offering empty restaurant spaces as co-working spaces during the closed hours
8/22/2019 NA NA NA NA NA Largest vacation rental marketplace in the Canadian market
8/21/2019 NA NA NA NA NA Provider of an end-to-end SaaS platform for the residential real estate industry, offering various agent
productivity tools
8/19/2019 NA NA NA NA NA Predictive analytics and data-driven marketing automation platform for the residential real estate industry
8/8/2019 NA NA NA NA NA Provider of business intelligence software for the construction industry
8/6/2019 NA NA NA NA NA Online marketplace for furnished apartments aimed at the vacation, business and student markets
8/31/2019 NA NA NA NA NA Provider of AI-powered data extraction solutions for real estate and corporate documents
7/30/2019 NA NA NA NA NA Workplace real estate management and operations platform, offering space planning and portfolio
optimization
7/24/2019 NA NA NA NA NA Real estate investment analytics platform offering valuation tools
7/16/2019 NA NA NA NA NA Provider of project management software for commercial property owners and developers
7/10/2019 NA NA NA NA NA Tech-enabled direct mortgage lender targeting the luxury buyer segment
7/9/2019 NA NA NA NA NA Provider of a predictive listing and lead generation platform for the rresidential real estate industry
6/20/2019 NA NA NA NA NA Online multifamily marketplace service for student housing in the United States
APPENDIXSelect M&A Activity (cont’d)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.
20
19
6060
6/20/2019 NA NA NA NA NA Provider of technology for tracking and engaging potential multifamily property residents and analyzing
marketing returns
6/12/2019 NA NA NA NA NA Provider of advisory services, data management, partner management, application management and data
analytics for the commercial real estate industry
6/4/2019 NA NA NA NA NA The credit, flood, income and tax verification services, government services, REO management and disposition,
online foreclosure auction and homeowners association (HOA) tracking units of Chronos Solutions
6/3/2019 NA NA NA NA NA Provider of research, data and analytics to the commercial real estate industry in North America and Europe
5/23/2019 NA NA NA NA NA Provider of ERP software and SaaS for the multifamily and commercial real estate sectors, providing features
for accounting, budgeting and forecasting, job costing, lease management, reporting and Web design
5/13/2019 NA NA NA NA NA Online marketplace and SaaS platform supporting commercial real estate (“CRE”) brokers through property
marketing, transaction management and business intelligence tools
5/13/2019 NA NA NA NA NA Provider of cloud-based real estate and location data platforms serving more that 350,000 business and
government users
5/3/2019 $500 NA NA NA NA Provider of cloud-based operations management software that automates enterprise asset management
workflows such as work order, inventory, energy, capital planning and facility scheduling
5/1/2019 335 NA NA NA NA Operator of a network connecting agents and jurisdictions that underpin residential mortgage records,
streamlining the local recording of residential mortgage transactions
4/22/2019 NA NA NA NA NAProvider of real etstate transaction forms and transaction management software for the residential real estate
industry
4/17/2019 NA NA NA NA NAOnline mortgage lender leveraging advanced analytics to offer no origination fees, fast approvals and
competitive rates
4/3/2019 220 NA NA NA NA Provider of an office space management platform and office management logistics
4/1/2019 NA NA NA NA NA Provider of loan origination and servicing software systems for the residential real estate lending industry
3/26/2019 NA NA NA NA NA Provider of an operational cost analytics platform for commercial real estate facilities
3/19/2019 2,083 3.1x 3.1x 12.3x 12.3x Provider of capital markets and brokerage services to owners of commercial real estate
3/13/2019 205 NA NA NA NA Provider of environmental due diligence information
3/7/2019 ~400 NA NA NA NA Provider of an online hotel booking platform offering low rates on last-minute bookings
3/5/2019 NA NA NA NA NA Operator of a real estate appraisal firm that specializes in right-of-way appraisal and litigation
3/4/2019 NA NA NA NA NA Operator of a luxury residential real estate company focusing on the San Francisco Bay Area
3/1/2019 NA NA NA NA NA Provider of an online real estate brokerage offering low-cost home sales
(Select Businesses)
APPENDIXSelect M&A Activity (cont’d)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.(1) Per Skift report, 3/8/2019.
(1)
20
19
6161
2/27/2019 NA NA NA NA NA Provider of AI-based customer relationship management SaaS to real estate brokers and agents
2/14/2019 NA NA NA NA NAProvides an online platform for home exchanges, connecting like-minded travelers and enabling them to swap
vacation homes
2/12/2019 $3,390 7.1x 6.3x 27.7x 21.9x Provider of loan origination SaaS for the financial sector
2/7/2019 NA NA NA NA NA Provider of residential real estate workflow and transaction management software
2/7/2019 NA NA NA NA NA Developer of a data platform that tracks the identity and behavior of people in the physical world
2/4/2019 NA NA NA NA NA Provider of operating cost analytics software for large data center operators
1/9/2019 / NA NA NA NA NA Provider of applicant screening platforms for the multifamily real estate industry and corporate employers
1/8/2019 NA NA NA NA NA Provider of an AI tool that automates leasing communication for property managers
1/7/2019 NA NA NA NA NA Provider of national real estate data and analytics
12/21/2018 105 6.3x NA 8.8x NAProvider of an online analysis website for consumers seeking advice on financial topics such as insurance,
investing and credit cards
12/20/2018 275 NA NA NA NADeveloper of a construction bid management platform designed to connect businesses in the construction
industry
12/17/2018 NA NA NA NA NA Provider of marketing services for real estate in Chantilly, Virginia
12/6/2018 NA NA NA NA NA Provider of real estate settlement and title underwriting services
12/6/2018 NA NA NA NA NAProvider of an online hotel booking platform intended to serve the travelers, expats and locals around the
world
12/5/2018 NA NA NA NA NA Provider of software designed to offer workplace space management and optimization
11/21/2018 NA NA NA NA NAProvider of appraisal and title management services to mortgage originators, quality control companies, due
diligence firms, and other institutions involved in the real estate finance industry
11/20/2018 875 NA 8.8x NA NA Developer of a construction productivity software intended to deliver real-time project information
11/8/2018 68 NA NA NA NAProvider of an online property rental management platform designed to make the rental process simple,
secure and intuitive
11/6/2018 NA NA NA NA NA Provider of information services that help clients in processing real estate transactions
10/25/2018 NA NA NA NA NA Developer of a property management platform designed to offer information on short-term rentals
Mean 7.4x 6.1x 22.1x 17.1x
Median 7.1x 6.3x 25.6x 17.1x
APPENDIXSelect M&A Activity (cont’d)
($MM)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
Source: Capital IQ as of 12/31/2020, PitchBook, company filings.(1) EBITDA multiples based on adjusted EBITDA.
(1) (1)
20
18
20
19
6262
PROPTECH ECOSYSTEM
Source: Capital IQ as of 1/22/2021.“NM” signifies multiple >40x.(1) Stock Price, Equity Value and Enterprise Value as of Thoma Bravo acquisition announcement date (12/21/2020).
(1)
($MM, Except Per Share Data)
Stock Trading Statistics Operating Metrics Trading Statistics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin EV / Revenue
Company 1/22/2021 Value Debt Value CY20E CY21E CY20E CY21E CY20E CY21E 20E / 19A 21E / 20E CY20E CY21E
RE Media / Portals
CoStar Group, Inc. $896.05 $35,321 $2,745 $32,576 $1,648 $1,907 19.8x 17.1x NM 49.2x 18% 16% 32% 35%
Zillow Group, Inc. $152.05 $35,378 ($416) $35,794 $3,284 $4,844 10.9x 7.4x NM NM 20% 47% 9% 8%
REA Group Limited $110.19 $14,557 ($72) $14,629 $630 $748 23.2x 19.5x 39.1x 32.2x (2%) 19% 59% 61%
Scout24 AG $80.52 $7,878 $155 $7,723 $431 $460 17.9x 16.8x 30.2x 28.0x 6% 7% 59% 60%
Rightmove plc $8.58 $7,470 $48 $7,422 $274 $393 27.1x 18.9x 40.8x 25.3x (29%) 44% 66% 75%
LIFULL Co., Ltd. $3.54 $466 $19 $447 $335 $375 1.3x 1.2x 12.4x 7.5x (9%) 12% 11% 16%
RE Media / Portals
Mean: 16.7x 13.5x 30.6x 28.4x 1% 24% 39% 42%
Median: 18.8x 16.9x 34.6x 28.0x 2% 17% 46% 47%
RE Data / RE Software
Black Knight, Inc. $82.30 $12,792 ($2,312) $15,104 $1,233 $1,405 12.3x 10.8x 24.9x 21.3x 5% 14% 49% 50%
CoreLogic, Inc. $77.30 $6,012 ($1,391) $7,403 $1,656 $1,631 4.5x 4.5x 11.8x 12.0x (6%) (2%) 38% 38%
Altus Group Limited $39.62 $1,605 ($96) $1,701 $437 $482 3.9x 3.5x 23.0x 18.8x (0%) 10% 17% 19%
Real Matters Inc. $14.73 $1,242 $121 $1,120 $480 $575 2.3x 1.9x 14.9x 11.5x 31% 20% 16% 17%
RE Data / RE Software
Mean: 5.7x 5.2x 18.6x 15.9x 7% 11% 30% 31%
Median: 4.2x 4.0x 18.9x 15.4x 2% 12% 27% 28%
Property Management Software
RealPage, Inc. $88.75 $9,629 $571 $10,200 $1,156 $1,283 8.8x 7.9x 32.0x 28.0x 17% 11% 28% 28%
AppFolio, Inc. $157.00 $5,390 $109 $5,280 $311 $351 17.0x 15.1x NM NM 22% 13% 17% 18%
Agilysys, Inc. $44.88 $1,052 $71 $980 $140 $165 7.0x 5.9x 43.7x 41.0x (11%) 18% 16% 14%
Property Management Software
Mean: 10.9x 9.7x 37.9x 34.5x 9% 14% 20% 20%
Median: 8.8x 7.9x 37.9x 34.5x 17% 13% 17% 18%
Residential Brokerage
Redfin Corporation $75.27 $7,703 $129 $7,575 $875 $1,213 8.7x 6.2x NM NM 12% 39% 5% 7%
Realogy Holdings Corp. $16.00 $1,847 ($3,671) $5,518 $5,891 $6,493 0.9x 0.8x 7.8x 7.8x 5% 10% 12% 11%
eXp World Holdings, Inc. $102.92 $7,199 $87 $7,113 $1,700 $2,437 4.2x 2.9x NM NM 73% 43% 3% 4%
RE/MAX Holdings, Inc. $39.66 $736 ($192) $928 $264 $294 3.5x 3.2x 10.2x 8.8x (6%) 11% 35% 36%
Purplebricks Group plc $1.30 $398 $97 $300 $130 $132 2.3x 2.3x 33.7x 18.4x 0% 1% 7% 12%
Residential Brokerage
Mean: 3.9x 3.1x 17.2x 11.7x 17% 21% 12% 14%
Median: 3.5x 2.9x 10.2x 8.8x 5% 11% 7% 11%
6363
PROPTECH ECOSYSTEM (CONT’D)
Source: Capital IQ as of 1/22/2021.“NM” signifies multiple >40x.
($MM, Except Per Share Data)
Stock Trading Statistics Operating Metrics Trading Statistics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin EV / Revenue
Company 1/22/2021 Value Debt Value CY20E CY21E CY20E CY21E CY20E CY21E 20E / 19A 21E / 20E CY20E CY21E
Commercial Brokerage
CBRE Group, Inc. $66.02 $21,638 ($2,914) $24,552 $23,286 $24,515 1.1x 1.0x 14.7x 13.2x (3%) 5% 7% 8%
Jones Lang LaSalle Incorporated $159.90 $8,203 ($3,333) $11,536 $8,698 $9,353 1.3x 1.2x 14.7x 11.9x (13%) 8% 9% 10%
Cushman & Wakefield plc $15.20 $3,369 ($3,064) $6,433 $7,778 $8,235 0.8x 0.8x 14.0x 10.7x (11%) 6% 6% 7%
Colliers International Group Inc. $92.46 $3,703 ($1,245) $4,948 $2,708 $3,292 1.8x 1.5x 15.6x 12.0x (11%) 22% 12% 13%
Newmark Group, Inc. $7.33 $1,322 ($2,363) $3,685 $1,778 $1,948 2.1x 1.9x 11.0x 9.0x (20%) 10% 19% 21%
Savills plc $14.52 $1,991 ($330) $2,321 $2,432 $2,625 1.0x 0.9x 12.3x 9.6x (5%) 8% 8% 9%
Marcus & Millichap, Inc. $40.04 $1,576 $98 $1,478 $617 $730 2.4x 2.0x 29.0x 17.5x (24%) 18% 8% 12%
Commercial Brokerage
Mean: 1.5x 1.3x 15.9x 12.0x (12%) 11% 10% 11%
Median: 1.3x 1.2x 14.7x 11.9x (11%) 8% 8% 10%
Traditional Mortgage / Title
Rocket Companies, Inc. $20.05 $40,089 ($675) $40,764 $15,438 $11,078 2.6x 3.7x 4.2x 7.6x 194% (28%) 63% 48%
Fidelity National Financial, Inc. $39.44 $11,582 ($612) $12,194 $9,739 $10,068 1.3x 1.2x 7.6x 5.7x 15% 3% 17% 21%
First American Financial Corporation $54.63 $6,099 ($327) $6,427 $6,782 $6,352 0.9x 1.0x 5.9x 6.8x 9% (6%) 16% 15%
Radian Group Inc. $20.67 $3,959 ($1,519) $5,479 $1,358 $1,407 4.0x 3.9x NA NA (11%) 4% NA NA
Stewart Information Services Corporation $50.25 $1,343 $137 $1,206 $2,140 $2,299 0.6x 0.5x 5.7x 5.4x 10% 7% 10% 10%
Altisource Portfolio Solutions S.A. $11.17 $175 ($244) $419 $365 $274 1.1x 1.5x 28.4x 10.5x (44%) (25%) 4% 15%
Traditional Mortgage / Title
Mean: 1.8x 2.0x 10.4x 7.2x 29% (8%) 22% 22%
Median: 1.2x 1.4x 5.9x 6.8x 10% (1%) 16% 15%
Credit / Mortgage Marketing
LendingTree, Inc. $318.04 $4,174 ($510) $4,683 $905 $1,075 5.2x 4.4x 39.8x 27.1x (18%) 19% 13% 16%
Moneysupermarket.com Group PLC $3.70 $1,987 ($34) $2,021 $471 $502 4.3x 4.0x 14.0x 12.1x (8%) 7% 31% 33%
QuinStreet, Inc. $22.07 $1,167 $85 $1,083 $505 $541 2.1x 2.0x 28.2x 22.6x 5% 7% 8% 9%
Credit / Mortgage Marketing
Mean: 3.9x 3.5x 27.3x 20.6x (7%) 11% 17% 19%
Median: 4.3x 4.0x 28.2x 22.6x (8%) 7% 13% 16%
RE Sharing Economy / Travel
Booking Holdings Inc. $2,066.24 $84,623 ($1,254) $85,877 $6,752 $10,193 12.7x 8.4x NM 26.0x (55%) 51% 13% 32%
Airbnb, Inc. $181.87 $109,567 ($4,296) $113,863 $3,247 $4,484 35.1x 25.4x NM NM (32%) 38% (10%) 0%
Expedia Group, Inc. $136.52 $19,312 ($4,995) $24,307 $5,385 $7,782 4.5x 3.1x NM 19.5x (55%) 44% (5%) 16%
TripAdvisor, Inc. $33.19 $4,465 ($71) $4,536 $596 $952 7.6x 4.8x NM 22.6x (62%) 60% (6%) 21%
RE Sharing Economy / Travel
Mean: 15.0x 10.4x NM 22.7x (51%) 48% (2%) 17%
Median: 10.2x 6.6x NM 22.6x (55%) 48% (5%) 19%
6464
PROPTECH ECOSYSTEM (CONT’D)
Source: Capital IQ as of 1/22/2021.“NM” signifies multiple >40x.
($MM, Except Per Share Data)
Stock Trading Statistics Operating Metrics Trading Statistics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin EV / Revenue
Company 1/22/2021 Value Debt Value CY20E CY21E CY20E CY21E CY20E CY21E 20E / 19A 21E / 20E CY20E CY21E
Broader Data
Moody's Corporation $266.70 $50,096 ($4,402) $54,498 $5,299 $5,402 10.3x 10.1x 20.3x 20.2x 10% 2% 51% 50%
Experian plc $36.02 $32,897 ($4,169) $37,066 $5,147 $5,608 7.2x 6.6x 20.7x 19.9x 3% 9% 35% 33%
Equifax Inc. $178.74 $21,742 ($2,842) $24,584 $4,090 $4,350 6.0x 5.7x 16.9x 16.8x 17% 6% 36% 34%
TransUnion $91.91 $17,490 ($3,234) $20,725 $2,715 $2,899 7.6x 7.1x 20.0x 18.2x 2% 7% 38% 39%
Fair Isaac Corporation $496.16 $14,437 ($778) $15,216 $1,316 $1,369 11.6x 11.1x 31.4x 32.0x 10% 4% 37% 35%
Broader Data
Mean: 8.5x 8.1x 21.9x 21.4x 8% 6% 39% 38%
Median: 7.6x 7.1x 20.3x 19.9x 10% 6% 37% 35%
GCA is a global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks.
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