brief real estate technology market update & ecosystem
DESCRIPTION
July 2013 Real Estate Technology Market Update and Provider Ecosystem. Category coverage: • Property Management • Data/Information Services • Rent/Lease Payment Automation • Investment Management • IWMS & Facilities Management • Facilities Design/AEC • Commercial Construction • Residential Construction • Property Search/Lead Gen • Home Services Lead Gen • Broker CRM/Marketing • Mortgage Origination/FinanceTRANSCRIPT
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Brief Real Estate Technology Market Update & EcosystemMarket Update & Ecosystem
Kris Beible, Director of Business DevelopmentS f E i G LLC
© Software Equity Group, LLC 2013
Software Equity Group, LLC858 5092800
www.softwareequity.com
2Leaders in Real Estate Technology M&A
has received a growth equity investment from
© Software Equity Group, LLC 2013
3Disclaimer
The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.
This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.
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4Real Estate Technology Ecosystem (Abbreviated)PaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment MgmtPaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment Mgmt
ll R id i l C iR id i l C iF ili i D i /AECF ili i D i /AECll ConstructionCommercial ConstructionCommercial Construction Residential ConstructionResidential ConstructionFacilities Design/AECFacilities Design/AECIWMS & Facilities MgmtIWMS & Facilities Mgmt
Home Services Lead GenHome Services Lead Gen Broker CRM/MarketingBroker CRM/Marketing Mortgage Orig. / FinanceMortgage Orig. / FinanceProperty Search/Lead GenProperty Search/Lead Gen
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Company Acquired
Public Company
5Public Companies: Real Estate TechnologyMarket Enteprise LTM LTM LTM Revenue LTM Gross LTM EBITDA EV/ EV/
Company Ticker Category Cap. (mm) Value (mm) Revenue EBITDA Growth Margin Margin Rev EBITDAAngie's List, Inc. (Nasdaq:ANGI) Home Services Lead Gen $1,404.4 $1,356.3 $176.9 -$43.0 70.9% 72.3% - 7.7x -Autodesk, Inc. (Nasdaq:ADSK) Facilities Design / AEC $7,957.9 $6,615.8 $2,294.0 $469.3 0.8% 89.2% 20.5% 2.9x 14.1xAveva Group plc (LSE:AVV) Facilities Design / AEC $2,568.1 $2,280.0 $333.4 $104.3 12.4% 92.7% 31.3% 6.8x 21.9xCoreLogic, Inc. (NYSE:CLGX) Data/Information Services $2,484.2 $3,130.5 $1,606.7 $340.6 16.4% 46.2% 21.2% 1.9x 8.3xCoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2xCoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2xEllie Mae, Inc. (NYSE:ELLI) Mortgage Orignation / Finance $648.3 $587.8 $111.8 $27.8 69.9% 77.2% 24.8% 5.3x 21.2xMove, Inc. (Nasdaq:MOVE) Property Search / Lead Gen $516.7 $486.5 $205.7 $15.3 8.1% 78.4% 7.4% 2.4x 28.8xNemetschek AG (XTRA:NEM) Facilities Design / AEC $611.0 $543.1 $233.7 $55.0 6.6% 52.1% 23.5% 2.3x 9.9xRealPage, Inc. (Nasdaq:RP) Property Management $1,532.7 $1,510.0 $336.7 $53.8 22.5% 60.4% 16.0% 4.5x 28.1xTextura Corporation (NYSE:TXTR) Commercial Construction $641.1 $655.3 $27.3 -$15.1 106.2% 75.0% - 24.0x -Trulia Inc (NYSE:TRLA) Property Search / Lead Gen $1 104 8 $900 4 $79 9 -$4 2 87 8% 86 3% - 11 3x -Trulia, Inc. (NYSE:TRLA) Property Search / Lead Gen $1,104.8 $900.4 $79.9 -$4.2 87.8% 86.3% - 11.3x -Zillow , Inc. (Nasdaq:Z) Property Search / Lead Gen $2,138.2 $1,959.2 $133.0 $8.1 71.3% 88.9% 6.1% 14.7x 241.3xzipRealty Inc. (Nasdaq:ZIPR) Broker CRM/Marketing $65.5 $54.5 $73.1 -$0.3 -10.2% 43.9% - 0.7x -
High: $7,957.9 $6,615.8 $2,294.0 $469.3 106.2% 92.7% 31.3% 24.0x 241.3xLow: $65.5 $54.5 $27.3 -$43.0 -10.2% 43.9% 6.1% 0.7x 8.3x
A $1 966 6 $1 843 9 $461 3 $82 4 39 3% 71 6% 18 5% 7 3 48 8
Top 5: EV/Revenue
Average: $1,966.6 $1,843.9 $461.3 $82.4 39.3% 71.6% 18.5% 7.3x 48.8xMedian: $1,404.4 $1,356.3 $205.7 $27.8 22.5% 75.0% 20.5% 5.3x 21.9x
p
10.0x
20.0x
30.0x
Median EV/Rev: 11.3x
0.0x
Median Growth Rate: 71.3%Company
Angie's List, Inc.
CoStar Group
Textura Corp.
Trulia, Inc.
Zillow, Inc.
TTM Rev Growth 70.9% 47.8% 106.2% 87.8% 71.3%
EV/Rev 7 7x 10 1x 24 0x 11 3x 14 7x
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EV/Rev 7.7x 10.1x 24.0x 11.3x 14.7x
*Public Company data sourced July 2013: CapitalIQ
6M&A: Real Estate Technology
Aggregate M&A Volume: Annual
4842 43
sactions
Aggregate M&A Volume: Quarter
1314
12
14
11ions
14
25
# of RM&A Trans
2
5
10
6
10
2
5
10 10
2
78 8
11
of M
&A Transacti
2009 2010 2011 2012 TTM July 2013
2009 2010 2011 2012 2013
#
Q1 Q2 Q3 Q4
M&A Volume by Category: Annual
9
8
9 9
8
4
3
6
3
4
7
3
7 7
5
7
5
6
5
4
5
3 3
4 4
M&A Transaction
s
1
0
1 1
0
2
0
1
0 0
2
1
0
1
2 2
1 1
2
1 1 1
2
1 11
0
1 1
0
22
0 0
1
Property Management
Data/Information Services
Payments Investment Management
IWMS & Facilities Management
Facilities Design / AEC
Commercial Construction
Residential Construction
Property Search / Lead Gen
Home Services Lead Gen
Broker CRM/Marketing
Mortgage Orig. / Finance
# of M
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2009 2010 2011 2012 TTM July 2013
*Data sourced July 2013: CapitalIQ
7Most Acquisitive Companies (1/2009 – Present)
Top 3 Most Active Buyers
Viewpoint Construction
# of Acquisitions
DIY Real Estate Solutions
Yardi, 13
MRI S/W, 3
Textura, 3
Trimble, 3
Construction S/W, 3
Energy Billing Systems
P t R h P t
Multifamily Services Group
Peak Insurance Advisors
RealPage, 10CoStar Group, 3
Ellie Mae, 3
/
Level One
Property Research Partners
Zillow, 6
Reply!, 4
Autodesk, 3
Level One
Evergreen Solutions,
HomeAway, 5Accruent, 4
CoreLogic, 4
MarketLeader, 4
© Software Equity Group, LLC 2013*Data sourced July 2013: CapitalIQ
8Top 10 Real Estate Technology M&A by Enterprise Value (EV)EV/ llBuyer TypeBuyer TargetDate EV (mm) EV/RevEV/
EBTIDA
4/27/2011 $654.2 8.2x 30.3x Public Public
Seller Type
5/8/2013 $314.3 6.6x ‐ Public Public
1/11/2011 $270.0 4.7x 11.8x Public Public
3/24/2011 $231.8 6.1x 11.5x Public Private
3/22/2012 $145.0 ‐ ‐ Private Public Subsidiary
4/12/2011 $140.5 5.6x 20.8x Public Private/ /
12/1/2009 $128.0 1.7x ‐ Private Public Subsidiary
8/22/2011 $74.9 4.5x ‐ Public Private
11/3/2010 Level One, Inc. $62.0 2.7x ‐ Public Private
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3/15/2011 $51.0 ‐ ‐ Public Private
*Data sourced July 2013: CapitalIQ
9Top 10 Real Estate Technology M&A by EV/RevenueEV/
Buyer TypeBuyer TargetDate EV (mm) EV/RevEV/
EBITDASeller Type
5/2/2012 $37.4 102.4x ‐ Public Private
7/29/2011 $14.8 65.1x ‐ Public Private
7/23/2012 $15.5 10.3x ‐ Public Private
4/27/2011 $654.2 8.2x 30.3x Public Public
5/8/2013 $314.3 6.6x ‐ Public Public
3/24/2011 $231.8 6.1x 11.5x Public Private/ /
4/12/2011 $140.5 5.6 20.8x Public Private
1/11/2011 $270.0 4.7x 11.8x Public Public
8/22/2011 $74.9 4.5x ‐ Public Private
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8/15/2011 $25.2 3.2x ‐ Public Private
*Data sourced July 2013: CapitalIQ
10Summary
• Broad ecosystem of players
• Sector public companies currently performing well & quite acquisitive
• Strong post recession rebound in M&A volume
• General sector buyer acquisition appetite highy q pp g
Top 5 M&A Volume: 2009 - Present
1. Property Management (30 deals)
Top 5 M&A Volume: TTM
1. Commercial Construction (9 deals)1. Property Management (30 deals)2. Broker CRM/Marketing (25 deals)3. Commercial Construction (23 deals)4. IWMS & Facilities Management (21 deals)
1. Commercial Construction (9 deals)2. Broker CRM/Marketing (8 deals)3. IWMS & Facilities Management (5 deals)4. Property Management, Property Search /
5. Property Search / Lead Gen (20 deals) Lead Gen, Mortgage Orig. / Finance (4 deals)
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d h l h l &ATo discuss the real estate technology ecosystem, M&A transactions and/or your business, please contact me at:
P: 858.509.2800P: 858.509.2800
Email: [email protected]
© Software Equity Group, LLC 2013