digital media | internet | saas sector report€¦ · internet / digital media / saas notes:...

DIGITAL MEDIA | INTERNET | SAASSECTOR REPORT

November 2018

2

DEAL DASHBOARD Internet / Digital Media / SaaS

Notes:Source: Capital IQ, PitchBook, and Dow Jones VentureSource. 1) Criteria based on internet/digital media/SaaS Series A and subsequent rounds of global financings greater than or equal to $10MM. 2) Financings include Venture and Private Equity Growth/Expansion activity for internet/digital media/SaaS sectors. 3) Figures reflect total transactions and volume to date. 4) Criteria based on global target internet/digital media/SaaS M&A deals with transaction enterprise values greater than $50MM. 5) Search/online advertising composite, internet commerce composite, internet content composite, diversified marketing composite, SaaS composite and social media composite used as proxy for internet/digital media/SaaS

landscape. Details on companies included can be found on the public valuation company slides.

DM Composite SPX

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count

Select Financing Transactions Quarterly Financing Volume ($Bn) (1)(2) Quarterly M&A Volume ($Bn) (4)

Select M&A Transactions

Company Amount ($MM) Acquirer Target EV ($Bn)

$1,250 $8.0

$1,000 $4.8

$550 $3.3

$500 $2.4

$450 $1.9

$427 $1.6

$400 $0.8

$300 $0.4

Last 12 Months Digital Media Price Performance vs. S&P 500 (5)

484

2018 Financing Transactions (1)(2)(3)

$44.7 Billion

2018 Financing Volume (1)(2)(3)

$74.1 Billion

2018 M&A Volume (3)(4)

79

2018 M&A Transactions (3)(4)

(10%)

0%

10%

20%

30%

40%

184167

190 200 198 193180

119

185

0

50

100

150

200

250

$8 $8

$15 $16$13 $13

$17

$13$15

$0

$5

$10

$15

$20

$14 $14 $17$29

$65

$13 $14

$28$20

$0

$20

$40

$60

$80

2621

2832

1417 16

2521

0

10

20

30

40

9%5%

NewTV

3

GCA OVERVIEWInternet / Digital Media / SaaS Team

*Sascha Pfeiffer, Thomas Egli, and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly owned subsidiary of GCA Corporation.**Tomohiko Kubota is a Vice President at GCA Corporation.

New York640 Fifth Avenue, 10

thFl.

New York, NY 10019United States

Phone: (212) 999-7090

Tokyo11-1 Marunouchi 1-chome

Chiyoda-ku, Tokyo 100-6230Japan

Phone: +81 (3) 6212-7100

San FranciscoOne Maritime Plaza, 25th Fl.

San Francisco, CA 94111United States

Phone: (415) 318-3600

London1 Southampton St.London WC2R0LRUnited Kingdom

Phone: +44 20 7484 4040

FrankfurtThurn-und-Taxis-Platz 6

D-60313 FrankfurtGermany

Phone: +49 (0) 69 204 34 6410

Paul DiNardo Rich Jasen John Lambros James Orozco Joshua Wepman

Managing Director Managing Director Managing Director Managing Director Managing Director

Phone: (212) 999-7097 Phone: (415) 318-3653 Phone: (212) 999-7083 Phone: (415) 318-3667 Phone: (212) 999-7092

Mobile: (650) 483-7246 Mobile: (415) 308-4760 Mobile: (917) 744-9011 Mobile: (415) 722-0922 Mobile: (917) 306-4168

[email protected] [email protected] [email protected] [email protected] [email protected]

Sascha Pfeiffer* Giuseppe Diprima Thomas Egli* Tobias Schultheiss* Tomohiko Kubota**

Managing Director Vice President Managing Director Managing Director Vice President

Phone: +49 (0) 69 204 34 6410 Phone: (212) 999-7088 Phone: +41 (0) 43 499 43 43 Phone: +49 (0) 69 204 34 6410 Phone: +81 (3) 6212-7129

[email protected] [email protected] [email protected] [email protected] [email protected]

4

60%

80%

100%

120%

140%

160%

11/13/2017 1/4/2018 2/25/2018 4/18/2018 6/9/2018 7/31/2018 9/21/2018 11/12/201870%

80%

90%

100%

110%

120%

8/13/2018 8/26/2018 9/8/2018 9/21/2018 10/4/2018 10/17/2018 10/30/2018 11/12/2018

(5.3)%

(12.4)%

7.3%

1.0%

17.4%

29.7%35.0%

9.6%

19.5%

10.0%

(25.7)%

(9.9)%

(7.4)%

10.0%

(21.0)%

Internet / Digital Media / SaaS

Diversified Marketing(5)

Internet Content(3)

Search / Online Advertising(1)

Gaming(7)

Media Conglomerates(6)

Internet Commerce(2)

SaaS(8)

Publishers(4)

NASDAQ

Social Media (9)

Last 12 Months Last 3 Months

(18.7)%

29.0%

(10.8)%

(6.2)%

(19.5)%

INDUSTRY STOCK MARKET VALUATION

Notes:(1) Search/Online Advertising Composite includes: CRTO, GOOGL, MCHX, MRIN, MSFT, QNST, AIM:RTHM, RUBI, TTD, YNDX.(2) Internet Commerce Composite includes: AMZN, APRN, BABA, BKNG, CARG, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, PRSS, QUOT, SFIX, SSTK, STMP, TRVG, TZOO.(3) Internet Content Composite includes: TGNA, CRCM, DHX, EHTH, GDDY, IAC, RENN, SFLY, TTGT, XOXO, ZG.(4) Publishers Composite includes: GCI, GHC, ENXTPA:MMB, MDP, NWSA, NYT, LSE:PSON, TSX:TRI, LSE:UBM.(5) Diversified Marketing Composite includes: ADS, EFX, LSE:EXPN, HHS, IPG, MDCA, NLSN, LSE:WPP.(6) Media Conglomerates Composite includes: CBS, CMCSA, DIS, DISCA, TSE:6758 (SONY), VIAB, ENXTPA:VIV.(7) Gaming Composite includes: ATVI, CYOU, TSE:2432 (DENA), EA, GLUU, TSE:3632 (GREE), TSE:3765 (GHO), KOSE:A035420 (NVR), KOSE:A036570 (NCSOFT), NTES, SEHK:700 (TENCENT),ENXTPA:UBI, ZNGA. (8) SaaS Composite includes: AYX, BCOV, BOX, CLDR, COUP, CRM, CSOD, DBX, ECOM, EVBG, HUBS, LOGM, LPSN, MB, MDB, MRIN, NOW, NTNX, OKTA, RNG, RP, SHOP, SSTI, ULTI, VERI, WDAY, YEXT, ZEN, ZUO.(9) Social Media includes: FB, TSE:3938 (LINE), P, SNAP, SPOT, TWTR, YELP.

5

INDUSTRY STOCK MARKET VALUATIONInternet / Digital Media / SaaS: Financial Metrics

EV / 2018E Revenue EV / 2018E EBITDA

Notes:(1) Search/Online Advertising Composite includes: CRTO, GOOGL, MCHX, MRIN, MSFT, QNST, AIM:RTHM, RUBI, TTD, YNDX.(2) Internet Commerce Composite includes: AMZN, APRN, BABA, BKNG, CARG, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, PRSS, QUOT, SFIX, SSTK, STMP, TRVG, TZOO.(3) Internet Content Composite includes: TGNA, CRCM, DHX, EHTH, GDDY, IAC, RENN, SFLY, TTGT, XOXO, ZG.(4) Publishers Composite includes: GCI, GHC, ENXTPA:MMB, MDP, NWSA, NYT, LSE:PSON, TSX:TRI, LSE:UBM.(5) Diversified Marketing Composite includes: ADS, EFX, LSE:EXPN, HHS, IPG, MDCA, NLSN, LSE:WPP.(6) Media Conglomerates Composite includes: CBS, CMCSA, DIS, DISCA, TSE:6758 (SONY), VIAB, ENXTPA:VIV.(7) Gaming Composite includes: ATVI, CYOU, TSE:2432 (DENA), EA, GLUU, TSE:3632 (GREE), TSE:3765 (GHO), KOSE:A035420 (NVR), KOSE:A036570 (NCSOFT), NTES, SEHK:700 (TENCENT),ENXTPA:UBI, ZNGA. (8) SaaS Composite includes: AYX, BCOV, BOX, CLDR, COUP, CRM, CSOD, DBX, ECOM, EVBG, HUBS, LOGM, LPSN, MB, MDB, MRIN, NOW, NTNX, OKTA, RNG, RP, SHOP, SSTI, ULTI, VERI, WDAY, YEXT, ZEN, ZUO.(9) Social Media includes: FB, TSE:3938 (LINE), P, SNAP, SPOT, TWTR, YELP.

8.2x

4.7x4.1x 3.5x 3.2x 3.0x

2.4x 2.3x 2.3x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x Mean: 3.7x

Median: 3.2x 29.6x

22.2x

17.2x 16.1x 15.6x

12.8x 11.7x 10.4x 9.4x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x Mean: 16.1x

Median: 15.6x

6

PUBLIC COMPANY VALUATIONSInternet / Digital Media / SaaS: Financial Metrics (Cont’d)

Notes:Source: Capital IQ and Wall Street Estimates. Multiples <0 and >50 considered NM.EBITDA Margin Mean and Median exclude values <0.

($MM), Except Per Share DataStock Trading Statistics Operating Metrics

Price LTM Price Range Equity Cash & Net Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin

Company 10/31/18 Low High Value Equiv. Debt Value CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E 17A/16A 18E/17A 19E/18E CY 17A CY 18E CY 19E

Search / Online Advertising

Microsoft Corporation $106.81 $80.70 $116.18 $819,897 $135,771 ($52,517) $767,380 8.0x 6.5x 5.9x 23.1x 15.4x 13.8x 7.6% 23.9% 10.1% 34.8% 42.1% 42.6%

Alphabet Inc. $1,076.77 $980.64 $1,273.89 $749,085 $106,416 ($102,430) $646,655 5.8x 4.7x 4.0x 18.1x 13.0x 10.8x 22.8% 23.1% 17.8% 32.3% 36.4% 37.1%

Yandex N.V. $30.13 $24.90 $44.49 $9,774 $1,427 ($1,108) $8,666 5.3x 4.5x 3.6x 22.1x 14.6x 10.8x 31.8% 16.8% 25.5% 24.0% 31.2% 33.4%

The Trade Desk, Inc. $123.55 $40.70 $161.50 $5,302 $166 ($166) $5,136 16.7x 11.1x 8.4x NM 35.9x 27.1x 51.9% 49.5% 32.5% 24.1% 31.0% 31.0%

Criteo S.A. $22.52 $19.85 $40.00 $1,514 $459 ($453) $1,061 0.5x 1.1x 1.0x 4.6x 3.5x 3.3x 27.7% (58.4%) 6.7% 10.0% 31.9% 31.5%

QuinStreet, Inc. $15.90 $7.82 $16.71 $780 $71 ($71) $710 2.1x 1.6x 1.4x NM 17.3x 12.5x 12.1% 33.1% 14.7% 3.4% 9.2% 11.1%

RhythmOne plc $2.21 $1.97 $3.82 $174 $37 $13 $187 NA 0.5x 0.4x NM 4.7x 3.1x NA NA 19.0% NA 10.8% 13.7%

The Rubicon Project, Inc. $3.41 $1.48 $4.20 $172 $97 ($97) $75 0.5x 0.7x 0.6x 1.1x NM 18.8x (39.2%) (29.4%) 19.4% 45.6% (17.3%) 3.1%

Marchex, Inc. $2.76 $2.47 $3.67 $108 $79 ($79) $29 0.3x 0.3x 0.3x 29.1x 24.3x 16.2x (30.3%) (5.4%) 1.2% 1.1% 1.4% 2.1%

Mean 4.9x 3.5x 2.9x 16.3x 16.1x 12.9x 25.6% 29.3% 16.3% 21.9% 21.6% 22.8%Median 3.7x 1.6x 1.4x 20.1x 15.0x 12.5x 17.5% 20.0% 17.8% 24.0% 31.0% 31.0%

Internet Content

IAC/InterActiveCorp $196.59 $118.83 $223.54 $16,360 $1,880 $118 $16,478 5.0x 3.9x 3.5x 48.6x 16.7x 13.7x 5.3% 27.0% 13.6% 10.2% 23.5% 25.1%

GoDaddy Inc. $73.17 $45.87 $84.97 $12,136 $870 $1,707 $13,843 6.2x 5.2x 4.7x 47.5x 18.9x 17.0x 20.8% 18.8% 12.2% 13.1% 27.6% 27.3%

Zillow Group, Inc. $40.37 $36.55 $65.42 $8,164 $1,643 ($928) $7,236 6.7x 5.4x 3.7x NM 29.3x 22.8x 27.2% 24.2% 45.0% 7.7% 18.5% 16.3%

TEGNA Inc. $11.54 $10.00 $15.60 $2,484 $24 $2,966 $5,450 2.9x 2.5x 2.5x 8.7x 7.3x 8.2x (5.0%) 14.0% (0.9%) 32.9% 34.4% 31.1%

Shutterfly, Inc. $50.00 $39.76 $100.34 $1,677 $205 $1,012 $2,689 2.3x 1.3x 1.2x 16.2x 6.7x 6.4x 4.9% 67.6% 11.9% 13.9% 20.0% 18.9%

XO Group Inc. $34.61 $17.49 $35.83 $872 $123 ($123) $749 4.7x 4.5x 4.1x 44.7x 20.3x 18.1x 5.5% 4.3% 9.1% 10.4% 22.1% 22.6%

eHealth, Inc. $34.36 $13.61 $35.07 $659 $20 ($20) $639 4.0x 2.8x 2.5x NM 22.9x 15.9x (7.3%) 42.4% 15.3% (16.0%) 12.4% 15.5%

TechTarget, Inc. $20.32 $12.18 $34.47 $560 $32 ($8) $553 5.1x 4.5x 4.0x 36.7x 17.3x 13.6x 1.8% 14.0% 12.8% 13.9% 25.9% 29.1%

Care.com, Inc. $17.60 $14.47 $22.95 $550 $120 ($120) $431 2.5x 2.2x 2.0x 36.7x 13.6x 11.4x 7.6% 10.5% 13.5% 6.7% 16.5% 17.3%

Renren Inc. $1.43 $1.32 $18.70 $99 $31 $64 $162 0.8x 0.3x NA NM NA NA 220.6% 151.0% NA (42.5%) NA NA

DHI Group, Inc. $1.67 $1.25 $3.25 $90 $5 $12 $102 0.5x 0.6x 0.6x 3.3x 3.3x 3.4x (8.4%) (21.7%) (3.9%) 14.7% 19.1% 19.1%


7






Internet Commerce

Amazon.com, Inc. $1,598.01 $1,086.87 $2,050.50 $781,377 $29,765 $17,454 $798,831 4.5x 3.4x 2.8x NM 24.2x 19.0x 30.8% 30.7% 20.9% 8.5% 14.2% 14.9%

Alibaba Group Holding Limited $142.28 $130.06 $211.70 $365,934 $26,429 ($6,307) $359,627 10.3x 6.9x 4.9x 25.4x 20.2x 15.0x 68.3% 50.0% 41.3% 40.5% 34.1% 32.4%

Netflix, Inc. $301.78 $178.38 $423.21 $131,602 $3,068 $5,269 $136,871 11.7x 8.7x 6.9x NM NM 45.2x 32.4% 35.3% 25.9% 7.8% 12.6% 15.2%

Booking Holdings Inc. $1,874.58 $1,630.56 $2,228.99 $88,990 $7,131 $1,578 $90,568 7.1x 6.3x 5.7x 18.4x 15.9x 14.2x 18.0% 13.3% 11.3% 38.8% 39.7% 39.8%

eBay Inc. $29.03 $26.36 $46.99 $27,951 $4,838 $4,410 $32,361 3.4x 3.0x 2.9x 11.0x 9.0x 8.4x 6.5% 12.2% 5.4% 30.7% 33.6% 33.9%

Expedia Group, Inc. $125.43 $98.52 $139.77 $18,686 $3,378 $349 $19,035 1.9x 1.7x 1.5x 16.4x 10.0x 8.7x 14.7% 11.6% 10.5% 11.5% 17.0% 17.6%

Copart, Inc. $48.91 $35.32 $67.08 $11,441 $275 $125 $11,566 7.1x 6.2x 5.6x 17.6x 16.3x 14.4x 18.6% 15.1% 9.8% 40.3% 37.7% 38.9%

GrubHub Inc. $92.74 $60.08 $149.35 $8,389 $311 ($15) $8,375 12.3x 8.3x 6.3x NM 35.2x 26.0x 38.5% 47.8% 31.1% 20.4% 23.6% 24.3%

Etsy, Inc. $42.52 $16.08 $53.25 $5,092 $584 ($304) $4,788 10.9x 8.0x 6.2x NM 35.2x 25.1x 20.9% 34.9% 29.7% 10.9% 22.8% 24.7%

CarGurus, Inc. $44.42 $28.00 $57.25 $4,862 $148 ($148) $4,715 14.9x 10.8x 8.7x NM NM NM 59.9% 38.4% 24.2% 6.0% 7.9% 9.0%

Cimpress N.V. $124.99 $104.07 $171.76 $3,863 $48 $960 $4,824 2.0x 1.8x 1.7x 21.4x 13.4x 11.0x 26.0% 11.2% 7.2% 9.2% 13.3% 15.1%

Stamps.com Inc. $202.17 $160.00 $285.75 $3,670 $78 $3 $3,673 7.8x 6.4x 5.3x 19.9x 14.3x 11.9x 28.7% 23.0% 20.8% 39.5% 44.7% 44.3%

Stitch Fix, Inc. $26.36 $14.48 $52.44 $2,613 $298 ($298) $2,316 2.1x 1.7x 1.4x NM NM NM 25.5% 23.8% 20.2% 3.5% 3.2% 2.5%

trivago N.V. $7.04 $4.01 $10.05 $2,470 $168 ($168) $2,302 1.9x 2.2x 2.1x NM NM 37.6x 56.2% (16.7%) 3.5% (1.1%) (0.4%) 5.7%

Shutterstock, Inc. $40.88 $36.35 $55.76 $1,432 $206 ($206) $1,226 2.2x 2.0x 1.8x 24.6x 11.8x 10.1x 12.7% 12.5% 10.4% 8.9% 16.5% 17.6%

Quotient Technology Inc. $12.87 $10.35 $15.98 $1,224 $329 ($175) $1,049 3.3x 2.6x 2.1x NM 17.4x 11.9x 17.1% 23.3% 24.0% 3.6% 15.2% 17.9%

1-800-FLOWERS.COM, Inc. $10.45 $8.85 $15.00 $675 $27 $73 $748 0.6x 0.6x 0.6x 10.6x 9.3x 8.8x (2.7%) 2.8% 5.5% 6.1% 6.7% 6.8%

Overstock.com, Inc. $20.12 $18.99 $89.80 $584 $182 ($178) $406 0.2x 0.2x 0.2x NM NM NM (3.1%) 6.3% 7.2% (1.7%) (8.1%) (2.0%)

Blue Apron Holdings, Inc. $1.42 $1.02 $4.89 $273 $183 $14 $287 0.3x 0.4x 0.4x NM NM NM 10.8% (20.8%) 10.7% (17.0%) (10.4%) (3.3%)

Travelzoo $7.67 $5.75 $21.15 $94 $16 ($16) $78 0.7x 0.7x 0.7x 12.4x 8.3x 8.0x (6.8%) 5.1% 4.6% 5.9% 8.4% 8.4%


Media Conglomerates / Selected Entertainment

Comcast Corporation $38.14 $30.43 $44.00 $173,518 $10,616 $62,268 $235,786 2.8x 2.4x 2.2x 8.5x 7.7x 6.9x 5.1% 13.9% 13.5% 32.9% 31.8% 31.1%

The Walt Disney Company $114.83 $97.68 $119.69 $170,780 $4,150 $16,724 $187,504 3.4x 3.2x 2.8x 11.1x 10.6x 10.4x 1.0% 6.2% 12.0% 30.4% 30.0% 27.3%

Sony Corporation $54.37 $42.61 $61.75 $68,992 $21,244 ($9,744) $59,248 0.9x 0.8x 0.8x 5.4x 5.4x 5.4x 16.7% 21.8% 1.5% 17.3% 14.2% 14.0%

Vivendi SA $24.15 $22.93 $28.15 $30,616 $4,421 $840 $31,456 2.1x 2.0x 1.9x 20.3x 15.9x 14.2x 30.8% 4.2% 5.2% 10.4% 12.7% 13.6%

Discovery, Inc. $32.39 $15.99 $34.06 $22,958 $571 $16,911 $39,869 6.1x 3.7x 3.5x 15.6x 9.8x 8.6x 5.9% 62.6% 6.5% 39.0% 38.2% 40.8%

CBS Corporation $57.35 $47.54 $61.59 $21,565 $182 $9,671 $31,236 2.3x 2.1x 2.0x 10.2x 9.4x 8.8x 4.0% 7.0% 7.0% 22.3% 22.6% 22.6%

Viacom, Inc. $31.98 $22.13 $35.55 $12,884 $929 $9,159 $22,043 1.7x 1.7x 1.6x 7.5x 7.2x 6.8x 2.8% (0.4%) 3.4% 22.5% 23.5% 24.1%


Publishers

Thomson Reuters Corporation $46.60 $35.51 $46.99 $26,193 $549 $6,818 $33,011 2.9x 6.0x 5.6x 13.1x 25.9x 23.7x 1.5% (51.4%) 7.4% 22.3% 23.1% 23.6%

Informa plc $9.10 $8.39 $11.09 $11,389 $174 $3,579 $14,968 6.3x 5.0x 4.1x 19.8x 15.1x 11.9x 43.1% 25.3% 22.7% 31.8% 33.4% 34.5%

Pearson plc $11.46 $8.30 $12.42 $8,885 $435 $1,118 $10,003 1.6x 1.9x 1.9x 13.3x 11.5x 10.6x 8.5% (12.6%) (0.1%) 12.3% 16.3% 17.7%

News Corporation $13.19 $12.24 $17.29 $7,716 $1,934 ($50) $7,666 1.0x 0.8x 0.7x 9.5x 6.6x 5.8x 0.5% 29.2% 4.2% 10.4% 11.6% 12.7%

The New York Times Company $26.40 $16.95 $26.91 $4,353 $554 ($302) $4,051 2.6x 2.4x 2.2x 15.6x 15.1x 13.5x 7.2% 9.7% 5.0% 16.6% 15.6% 16.6%

Lagardère SCA $27.38 $24.89 $32.47 $3,509 $734 $1,713 $5,221 0.6x 0.6x 0.6x 7.0x 7.1x 6.8x 8.8% (3.9%) 4.4% 8.7% 9.0% 9.0%

Graham Holdings Company $581.05 $536.90 $625.45 $3,107 $783 ($303) $2,803 1.5x NA NA 8.7x NA NA (5.5%) (100.0%) NA 17.7% NA NA

Meredith Corporation $51.56 $47.30 $72.25 $2,319 $144 $2,793 $5,113 4.2x 1.7x 1.6x 15.6x 8.5x 6.6x (5.3%) 152.2% 2.7% 27.2% 19.8% 24.8%

Gannett Co., Inc. $9.70 $8.42 $12.38 $1,096 $109 $229 $1,325 0.5x 0.4x 0.5x 4.4x 3.9x 4.0x 2.6% 2.0% (1.8%) 10.4% 11.4% 11.4%


8






Diversified Marketing

Experian plc $22.99 $19.07 $25.44 $20,676 $159 $3,475 $24,151 5.3x 5.0x 4.8x 16.2x 14.5x 14.0x NA 6.5% 3.6% 32.7% 34.4% 34.2%

WPP plc $11.34 $10.44 $18.81 $14,143 $2,931 $6,112 $20,254 1.0x 1.0x 1.0x 6.3x 6.8x 7.0x 16.1% (5.8%) 2.2% 15.5% 15.3% 14.6%

Equifax Inc. $101.44 $90.54 $138.69 $12,231 $253 $2,379 $14,610 4.3x 4.3x 4.1x 13.1x 12.7x 12.0x 6.9% 1.7% 3.8% 33.2% 33.7% 34.4%

Alliance Data Systems Corporation $206.18 $192.02 $278.33 $11,328 $3,601 $21,027 $32,355 9.1x 4.1x 3.9x 18.6x 15.6x 14.5x 1.4% 123.3% 6.0% 49.0% 26.2% 26.6%

Nielsen Holdings plc $25.98 $20.53 $39.25 $9,222 $451 $8,160 $17,382 2.6x 2.7x 2.7x 10.2x 9.5x 9.2x 4.2% (1.0%) 0.2% 25.9% 28.3% 28.9%

The Interpublic Group of Companies, Inc.$23.16 $18.30 $26.01 $8,902 $1,860 $1,484 $10,385 1.3x 1.3x 1.2x 9.2x 8.0x 7.1x 0.5% 1.3% 7.6% 14.3% 16.3% 16.9%

MDC Partners Inc. $2.47 $2.28 $11.90 $142 $25 $963 $1,105 0.7x 0.7x 0.7x 6.3x 6.1x 4.9x 9.2% (2.6%) 5.1% 11.6% 12.3% 14.5%

Harte Hanks, Inc. $5.48 $5.22 $12.16 $34 $23 ($23) $11 0.0x 0.0x NA 1.4x NM NA (5.1%) (14.2%) NA 2.2% (0.8%) NA


Gaming

Tencent Holdings Limited $34.05 $32.06 $60.77 $321,926 $20,256 $5,347 $327,273 11.0x 7.2x 5.4x 22.0x 19.4x 15.6x 53.9% 53.0% 32.5% 49.7% 36.9% 34.7%

Activision Blizzard, Inc. $69.05 $57.29 $84.68 $52,644 $3,424 ($754) $51,890 7.4x 6.9x 6.5x 23.3x 19.0x 16.6x 6.2% 6.7% 6.5% 31.7% 36.6% 39.3%

Electronic Arts Inc. $90.98 $89.12 $151.26 $27,732 $4,545 ($3,552) $24,180 4.7x 4.9x 4.2x 15.7x 14.1x 11.7x 10.1% (2.2%) 14.5% 30.2% 34.4% 36.3%

NetEase, Inc. $207.85 $184.60 $377.64 $27,297 $6,666 ($4,744) $22,553 2.7x 2.3x 1.8x 11.3x 16.9x 13.0x 51.2% 19.8% 25.1% 23.9% 13.4% 13.9%

NAVER Corporation $100.33 $91.13 $170.87 $14,667 $2,956 ($2,590) $12,077 2.8x 2.5x 2.2x 9.3x 11.4x 9.6x 31.1% 11.0% 15.1% 29.6% 21.9% 22.4%

Ubisoft Entertainment SA $89.98 $69.72 $122.13 $9,999 $1,227 $396 $10,396 5.1x 4.8x 3.8x 18.7x 10.6x 9.0x 31.2% 7.3% 24.5% 27.4% 45.3% 42.6%

NCSOFT Corporation $376.35 $289.17 $434.19 $7,998 $1,319 ($1,180) $6,818 4.1x 4.6x 3.7x 11.8x 12.2x 9.3x 101.5% (9.6%) 23.3% 35.0% 37.7% 40.1%

Zynga Inc. $3.64 $3.20 $4.57 $3,131 $420 ($420) $2,711 3.1x 3.0x 2.5x 38.6x 14.7x 11.6x 16.2% 5.8% 18.4% 8.1% 20.2% 21.6%

DeNA Co., Ltd. $16.68 $16.01 $25.48 $2,423 $962 ($785) $1,638 1.3x 1.4x 1.5x 4.3x 7.4x 5.3x 1.8% (5.6%) (6.0%) 30.6% 18.7% 27.7%

GungHo Online Entertainment, Inc. $1.80 $1.68 $3.60 $1,278 $557 ($554) $725 0.9x 1.0x 1.1x 2.3x 3.6x 4.1x (14.9%) (14.1%) (4.6%) 38.5% 28.8% 26.3%

Glu Mobile Inc. $7.05 $3.02 $7.80 $1,000 $84 ($84) $915 3.2x 2.4x 2.2x NM 24.5x 16.9x 43.0% 31.7% 12.3% (24.0%) 9.9% 12.8%

Gree, Inc. $4.19 $3.85 $6.83 $987 $745 ($745) $242 0.4x 0.4x 0.3x 2.4x NA 2.6x 26.0% (3.1%) 13.8% 14.9% - 12.4%

Changyou.com Limited $13.38 $12.68 $39.00 $687 $620 ($620) $67 0.1x 0.1x 0.1x 0.3x 0.6x 0.6x 10.4% (20.6%) (2.0%) 34.0% 24.3% 25.4%


Social Media & New Platform

Facebook, Inc. $151.79 $139.03 $218.62 $436,212 $41,206 ($41,136) $395,076 9.7x 7.1x 5.7x 17.0x 11.9x 10.7x 47.1% 36.1% 24.5% 57.1% 59.8% 53.6%

Spotify Technology S.A. $149.69 $131.01 $198.99 $26,911 $1,947 ($1,947) $24,964 5.1x 4.2x 3.3x NM NM NM 57.6% 20.9% 28.6% (8.0%) (3.9%) (1.3%)

Twitter, Inc. $34.75 $19.26 $47.79 $26,337 $5,957 ($3,249) $23,088 9.4x 7.7x 6.8x NM 20.1x 17.7x (3.4%) 22.8% 13.2% 14.1% 38.2% 38.4%

Snap Inc. $6.61 $5.77 $21.22 $8,559 $1,414 ($1,414) $7,145 8.7x 6.1x 4.6x NM NM NM 104.0% 41.1% 32.1% (410.3%) (53.9%) (28.3%)

LINE Corporation $31.70 $29.00 $48.26 $7,554 $2,434 ($980) $6,574 4.4x 3.5x 3.0x 34.3x 42.1x 22.1x 23.1% 27.0% 15.6% 12.9% 8.3% 13.7%

Yelp Inc. $42.82 $36.41 $52.50 $3,583 $837 ($837) $2,745 3.2x 2.9x 2.4x NM 14.5x 11.3x 18.8% 13.7% 17.4% 4.7% 19.7% 21.5%

Pandora Media, Inc. $8.50 $4.09 $10.07 $2,293 $388 ($132) $2,160 1.5x 1.4x 1.2x NM NM NM 5.9% 5.7% 12.3% (19.7%) (7.2%) (0.8%)


9






SaaS

salesforce.com, inc. $137.24 $98.68 $161.19 $103,850 $3,427 $971 $104,821 10.0x 7.9x 6.6x NM 33.4x 26.8x 24.9% 25.9% 20.2% 8.6% 23.8% 24.6%

ServiceNow, Inc. $181.04 $112.84 $206.30 $32,215 $1,626 ($811) $31,404 16.2x 12.0x 9.3x NM 46.3x 33.4x 39.0% 35.1% 29.1% 0.8% 26.0% 27.9%

Workday, Inc. $133.02 $95.35 $157.12 $28,865 $2,985 ($1,808) $27,057 12.6x 9.8x 7.8x NM NM 42.4x 36.1% 29.3% 25.0% (7.8%) 15.8% 18.4%

Shopify Inc. $138.15 $92.41 $176.60 $14,782 $1,578 ($1,578) $13,203 19.6x 12.5x 9.0x NM NM NM 72.9% 57.0% 39.2% (4.8%) 3.7% 6.4%

Dropbox, Inc. $23.47 $21.36 $43.50 $9,442 $1,039 ($873) $8,569 7.7x 6.2x 5.4x NM 28.6x 24.4x 31.0% 24.1% 15.8% 6.2% 21.8% 22.0%

The Ultimate Software Group, Inc. $266.63 $193.08 $332.44 $8,311 $141 ($124) $8,186 8.7x 7.2x 6.0x NM 29.9x 25.2x 20.4% 20.8% 19.9% 7.9% 24.1% 23.9%

DocuSign, Inc. $41.94 $37.00 $68.35 $8,057 $732 ($732) $7,324 14.1x 11.2x 9.4x NM NM NM 35.9% 26.4% 18.9% 1.9% 6.3% 8.5%

Nutanix, Inc. $41.51 $26.93 $64.87 $7,177 $934 ($505) $6,672 7.1x 5.4x 4.3x NM NM NM 46.6% 30.1% 28.1% (33.8%) (7.0%) (2.5%)

Okta, Inc. $58.36 $24.93 $75.49 $6,372 $536 ($272) $6,099 23.5x 16.3x 12.2x NM NM NM 62.2% 44.3% 32.9% (42.8%) (12.9%) (4.8%)

RingCentral, Inc. $77.73 $41.75 $98.15 $6,189 $577 ($212) $5,977 12.9x 9.1x 7.4x NM NM NM 30.2% 41.1% 23.5% (2.4%) 12.0% 12.7%

Zendesk, Inc. $54.97 $29.57 $72.76 $5,825 $451 $1 $5,826 13.5x 9.8x 7.5x NM NM NM 38.0% 37.5% 31.6% (21.0%) 6.0% 8.5%

HubSpot, Inc. $135.65 $73.15 $162.20 $5,262 $561 ($248) $5,015 13.4x 10.0x 8.0x NM NM NM 38.6% 32.9% 24.9% (8.2%) 9.4% 11.2%

RealPage, Inc. $53.00 $41.10 $66.25 $4,797 $280 $318 $5,114 7.6x 5.9x 5.1x NM 22.3x 18.0x 18.1% 30.0% 15.0% 14.1% 26.3% 28.3%

LogMeIn, Inc. $86.12 $74.87 $134.80 $4,406 $168 $32 $4,438 4.5x 3.7x 3.5x 16.9x 10.0x 9.4x 194.5% 21.6% 4.3% 26.6% 36.8% 37.6%

MongoDB, Inc. $81.50 $24.62 $85.25 $4,256 $523 ($312) $3,943 25.5x 17.1x 12.6x NM NM NM 52.4% 49.3% 36.1% (61.1%) (30.8%) (17.2%)

Coupa Software Incorporated $64.83 $30.65 $84.53 $3,764 $443 ($275) $3,489 18.7x 14.3x 11.5x NM NM NM 39.6% 31.0% 24.3% (21.6%) 2.3% 3.2%

Alteryx, Inc. $52.99 $21.15 $63.18 $3,226 $328 ($157) $3,069 23.3x 15.9x 11.9x NM NM NM 53.4% 46.5% 33.5% (10.9%) (4.6%) (0.7%)

Cornerstone OnDemand, Inc. $49.25 $33.57 $59.18 $2,894 $391 ($103) $2,791 5.8x 5.3x 4.9x NM 33.3x 21.1x 13.9% 8.7% 8.3% (7.5%) 16.0% 23.3%

Box, Inc. $18.00 $16.89 $29.79 $2,549 $204 ($111) $2,438 4.8x 4.0x 3.3x NM NM 44.0x 27.0% 20.0% 21.0% (22.6%) 3.9% 7.5%

Zuora, Inc. $20.42 $17.72 $37.78 $2,200 $180 ($162) $2,038 12.1x 8.9x 7.0x NM NM NM 48.6% 36.4% 26.4% (24.9%) (18.4%) (13.5%)

Cloudera, Inc. $13.76 $12.57 $22.43 $2,108 $378 ($378) $1,730 4.7x 3.9x 3.2x NM NM NM 40.8% 21.7% 19.6% (102.9%) (14.9%) (9.2%)

Yext, Inc. $19.22 $10.58 $27.19 $1,895 $125 ($125) $1,770 10.4x 7.8x 5.9x NM NM NM 37.0% 33.7% 32.1% (36.1%) (15.3%) (10.7%)

MINDBODY, Inc. $31.84 $28.70 $45.50 $1,520 $325 ($76) $1,444 7.9x 5.8x 4.7x NM NM NM 31.4% 35.8% 25.2% (3.6%) 1.2% 4.8%

Everbridge, Inc. $50.83 $23.87 $63.00 $1,494 $103 ($10) $1,484 14.2x 10.3x 8.2x NM NM NM 35.8% 38.0% 26.2% (15.4%) (2.1%) 1.5%

LivePerson, Inc. $22.60 $10.80 $27.40 $1,410 $66 ($66) $1,344 6.1x 5.5x 4.9x NM NM 46.3x (1.8%) 12.6% 11.9% 4.3% 9.1% 10.5%

Domo, Inc. $16.23 $15.43 $28.86 $427 $239 ($142) $286 2.6x 2.1x 1.7x NM NM NM 45.6% 26.2% 20.7% (157.5%) (97.4%) (62.4%)

ShotSpotter, Inc. $38.68 $9.33 $66.14 $417 $15 ($15) $402 16.9x 11.8x 8.6x NM NM 40.4x 53.2% 43.7% 36.6% (1.8%) 12.4% 21.3%

ChannelAdvisor Corporation $11.58 $8.30 $15.63 $316 $49 ($47) $268 2.2x 2.0x 1.9x NM 32.7x 24.2x 8.2% 7.0% 7.1% (5.8%) 6.3% 7.9%

Brightcove Inc. $8.02 $6.30 $10.75 $288 $27 ($27) $261 1.7x 1.6x 1.4x NM NM 30.6x 3.8% 7.4% 8.0% (9.2%) 1.3% 4.7%

Veritone, Inc. $6.90 $6.50 $38.58 $133 $65 ($65) $69 4.8x 2.9x 1.5x NM NM NM 61.7% 67.2% 86.8% (324.0%) (178.9%) (87.5%)

Mean 11.1x 8.2x 6.5x 16.9x 29.6x 29.7x 41.3% 31.4% 25.1% 2.3% 8.8% 10.5%Median 10.2x 7.9x 6.3x 16.9x 31.3x 26.8x 37.5% 30.5% 24.6% (8.0%) 4.9% 7.7%

10

Valuation Correlation to Growth and Cash Flow

Notes:Source: Capital IQ and Wall Street Estimates. When analyzing the same data set, R value of 2018E Revenue Multiple and 2018E Revenue Growth % is 0.76.

CY 2018E Revenue Growth % + CY 2018E FCF Margin %

Ente

rpri

se V

alu

e /

CY

20

18

E R

eve

nu

e

PUBLIC SAAS COMPANIES

Company Identifier

APPF

APTI

BCOV

BOX

COUP

CRM

CSOD

ECOM

EVBG

HUBS

LPSN

MB

MRIN

NOW

NTNX

RNG

RP

SHOP

ULTI

WDAY

ZEN

Selected Public SaaS Companies

WDAY

NOW

ULTI

SHOP

ZEN

CSOD

RP

HUBS

BOX

RNG

MB

APPF

LPSN

BCOVECOM

MRIN

COUP

CRM

EVGB

NTNX

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

(10%) 0% 10% 20% 30% 40% 50% 60% 70%

R = 0.84

11

Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.

RECENT ACQUISITIONSInternet / Digital Media / SaaS

($MM)

Announced Date Acquirer Target Enterprise Value EV / LTM Rev. EV / LTM EBITDA EV / NTM Rev. EV / NTM EBITDA

11/12/2018 $400 NA NA NA NA

11/11/2018 $8,000 NA NA NA NA

11/11/2018 $2,050 8.0x NM 6.9x NM

11/8/2018 $68 NA NA NA NA

11/5/2018 $188 4.3x NM 3.3x NM

11/5/2018 $84 1.0x NM 0.9x NM

11/5/2018 $950 NA NA NA NA

11/1/2018 $54 1.2x NA NA NA

10/31/2018 $438 6.6x NM 5.4x 35.0x

10/31/2018 $310 NA NA NA NA

10/30/2018 $80 NA 19.0x NA NA

10/24/2018 $236 NA NA NA NA

10/22/2018 $111 3.0x 33.7x 2.9x 20.2x(1)

(1)

(1)

(1)

(1)

(1)

(1)

12

Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Enterprise Value inclusive of total potential earnout.

RECENT ACQUISITIONSInternet / Digital Media / SaaS (Cont’d)

($MM)


10/17/2018 $150 NA NA NA NA

10/15/2018 $2,020 13.4x NM 11.5x NM

10/12/2018 $57 NA NA NA NA

10/11/2018 $163 NA NA NA NA

10/10/2018 $2,119 5.2x NM 5.0x 46.1x

10/9/2018 $200 28.6x NA NA NA

10/4/2018 $370 NA NA NA NA

10/3/2018 $2,025 6.5x NM 5.4x NM

9/25/2018 $150 NA NA NA NA

9/25/2018 $811 5.0x 35.9x 4.6x 21.4x

9/24/2018 $3,318 2.2x NM 2.0x NM

9/20/2018 $4,750 NA NA NA NA

9/13/2018 $55 NA NA NA NA

(1)

(1)

(1)

(1)

(1)

(2)

(1)

13

Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.


($MM)


9/13/2018 $620 NA NA NA NA

9/12/2018 $6,700 NA NA NA NA

9/6/2018 $1,500 4.6x 11.4x NA NA

9/4/208 $295 NA NA NA NA

8/31/2018 $82 NA NA NA NA

8/29/2018 $210 NA NA NA NA

8/23/2018 $157 0.8x 5.8x 1.0x 5.1x

8/10/2018 $1,520 NA NA NA NA

8/3/2018 $120 NA NA NA NA

8/2/2018 $2,350 NA NA NA NA

8/2/2018 $63 NA NA NA NA

8/1/2018 $600 NA NA NA NA

7/31/2018 $220 NA NA NA NA

(1)

(1)

14


Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Enterprise Value inclusive of total potential earnout.(3) Multiples based on Wall St. Estimates.

($MM)


7/28/2018 $135 10.2x 23.7x NA NA

7/25/2018 $390 NA NA NA NA

7/23/2018 $140 NA NA NA NA

7/18/2018 $133 2.1x 13.1x NA NA

7/16/2018 $800 NA NA NA NA

7/2/2018 $2,300 NA NA NA NA

7/2/2018 $110 4.0x NA NA NA

6/25/2018 $3,547 NA NA NA NA

6/25/2018 $1,600 4.6x NA NA NA

6/21/2018 $1,864 2.5x 12.7x 2.5x 9.8x

6/21/2018 $124 NA NA NA NA

6/18/2018 $2,092 4.8x 10.9x NA NA

6/12/2018 $290 NA NA NA NA

B2C Component

(1)

(1)

(1)

(1)

(1) (2)

(3)

Marketing Solutions Division

15


Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Aggregate Value <$50MM not included.(1) Multiples based on Capital IQ consensus estimates.

($MM)


6/11/2018 $1,550 NA NA NA NA

6/4/2018 $850 4.7x NA NA NA

5/21/2018 $1,680 11.2x NA NA NA

5/10/2018 $130 3.1x 12.4x NA 2.4x

5/8/2018 $1,200 7.0x NA NA NA

4/26/2018 $265 NA NA NA NA

4/24/2018 $150 1.4x 11.2x NA NA

4/13/2018 $75 NA NA NA NA

4/9/2018 NA NA NA NA NA

4/8/2018 $138 NM NA NA NA

3/26/2018 $216 2.3x NM 2.2x 27.5x

3/23/2018 $104 NA NA NA NA

3/22/2018 $300 NA NA NA NA

(1)

(3)

(1)

(1)

(1)

(1)

16

VENTURE CAPITAL INDUSTRYTMT: Transactions Since Q3 2003

Notes:(1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and Equipment,

Semiconductors, Software and Telecommunications until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

(1)

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

$14

$16

Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount

17

GCA OVERVIEWSelected Recent Internet, Digital Media & SaaS Transactions

Notes:(1) The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on.

Acquired by Acquired by Acquisition of Financing Acquired by Acquired by Acquired by Acquired by Acquired by

Series C

We Advised the Seller We Advised the Seller We Advised the Buyer Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

Acquired by Acquisition of Acquired by Financing Acquired by Acquired by Strategic Investment Acquired By Acquired By

Series C from

We Advised the Seller We Advised the Buyer We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

Divestiture of

Sale of Controlling Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by Preferred Stock

Interest to

to

We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor

Equity Investment Acquisition of Strategic Alternatives Preferred Stock Acquired by Acquired by Acquired by Acquired by Preferred Stock

& Capital Allocation

Undisclosed

Financial Advisor We Advised the Buyer Strategic Advisor Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor

Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by

Consortium Led by A subsidiary of

Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

digital media | internet | saas sector report€¦ · internet / digital media / saas notes:...

Documents