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Internet & DigitalMedia InsightsOverview, Analysis, and Trends in the Internet & Digital Media Industry

January 2015 Industry Update

William Blair

Internet & Digital Media Table of Contents

Contents

William Blair Internet & Digital Media Credentials ....................................................................................................................................................................... 1 Recent Headlines............................................................................................................................................................................................................................................. 2 IDM Intelligence .............................................................................................................................................................................................................................................. 5 Market Snapshot ............................................................................................................................................................................................................................................. 7 Public Equity Market Overview ............................................................................................................................................................................................................... 9

Public Comparable Companies............................................................................................................................................................................................................ 9 Public Comparables Detail ................................................................................................................................................................................................................. 11 Equity Offerings (All Sectors) ........................................................................................................................................................................................................... 18

M&A Activity .................................................................................................................................................................................................................................................. 21 William Blair Internet & Digital Media Team ................................................................................................................................................................................. 22 Disclosures ...................................................................................................................................................................................................................................................... 23 Internet & Digital Media

William Blair

Internet & Digital Media William Blair Internet & Digital Media Credentials 1

William Blair Internet & Digital Media Credentials

$1,000,500,000

Initial Public Offering

December 2014

$85,000,000

Senior Credit Facility

September 2014

$642,772,851

IPO & Follow-On

April 2014 & September 2014

Not Disclosed

has been acquired by

May 2014

$92,000,000


March 2014

$524,393,977

IPO & Follow-On

October 2013 &March 2014

$406,932,806

IPO & Follow-On

July 2013 &December 2013

$66,046,633

Follow-On Offerings

May 2013 &November 2013

$290,950,000


November 2013

$405,375,000

IPO & Follow-On

October 2012 &September 2013

$763,794,000

IPO & Follow-On

June 2011 & September 2013

R

$187,000,000


June 2013

$329,783,752

IPO & Follow-On

September 2012 &March 2013

$361,000,000


November 2012

Not Disclosed

has received a growth equity investment from

Strategic Technology Investors

October 2012

Not Disclosed

A wholly owned subsidiary of Yexthas been acquired by

August 2012

Not Disclosed


July 2012

TM

Not Disclosed


June 2012

$16,006,877,370


May 2012

$805,000,000


November 2011

William Blair

Internet & Digital Media 2 Recent Headlines

Recent Headlines

The Internet & Digital Media (“IDM”) sector continued its momentum into the fourth quarter of 2014, marked by some notable M&A and financing transactions, particularly in the Asian e-commerce, online lending platform, and ride sharing spaces. Asian e-Commerce transactions included Flipkart’s $700 million financing led by DST, Tiger Global, ICONIQ Capital and GIC, Coupang’s $300 million financing led by BlackRock, Lazada’s $250 million financing from Temasek, and Snapdeal’s $627 million financing from Softbank. In the online lending platform sector, we saw OnDeck Capital’s $230 million IPO (valuing the Company at $1.3 billion), LendingClub’s $1 billion IPO (valuing the Company at $5.4 billion), and AvantCredit’s $225 million financing led by Tiger Global. There was also a lot of activity in the ride sharing space—notable transactions included Uber’s massive $1.2 billion financing (valuing the Company at $40 billion) and its Southeast Asia-based rival, GrabTaxi’s $250 million financing (at a relatively humble $1 billion valuation). Overall, 2014 was a very exciting year in the IDM sector, and we expect the strong M&A and financing environment to continue into 2015 as the global macro outlook remains favorable and investors remain hungry to invest in high growth companies!

Selected Highlights

Date Company News Headline

Dec-28 Sony revealved that its controversial new movie, "The Interview", earned $15 million in consumer spending via rentals and purchases across various online platforms over the first four days it was available

Dec-23 Goodwater Capital, an early-stage VC firm, released an interesting analysis that found 27 consumer Internet giants holding at least $1 billion in cash; adding Apple, Microsoft and Samsung to the mix (all of which have been increasingly active in consumer startups), brings the grand total of cash held to a whopping $605 billion, making 2015 ripe for some blockbuster deals!

Dec-20 \ DST Global, GIC, ICONIQ Capital and Tiger Global announced their $700 million lead investment in Flipcart, India's largest e-commerce company that is popular for selling books and electronics online; the Company raised the capital at an approximate $10 billion valuation

Dec-17 OnDeck Capital, an online lending platform for small businesses, priced its IPO at $20 per share, raising $230 million, valuing the Company at $1.3 billion

Dec-16 \ Bravofly Rumbo Group announced its $120 million acquisition of lastminute.com, an online travel and leisure retailer with operations in the U.K., France, Germany, Spain and Italy; the Company was previously owned by Sabre

Dec-15 \ T.Rowe Price, Morgan Stanley Investment Management and Baillie Gifford & Co. announced thier $250 million lead investment in SurveyMonkey, an online survey platform with tools that allow users to turn survey data into insights and reports

Dec-12 LendingClub, an online marketplace lending platform primarily for consumers and small businesses, priced its IPO at $15 per share, raising $1 billion, valuing the Company at $5.4 billion

Dec-11 \ Adobe announced its $800 million acquisition of Fotolia, a marketplace for royalty-free photos, images, graphics and HD video; the Company will be integrated into Adobe's Creative Cloud platform, allowing members to access and purchase over 34 million images and videos

Dec-11 \

Institutional Venture Partners announced its $18 million investment in Woven Digitial, which runs pop culture and entertainment news sites Brobible and Uproxx (also has an exclusive partnership with theChive); the Company will continue to have a "guy-heavy" editorial perspective for the near future

Dec-10 \ BlackRock Private Equity Partners announced its $300 million lead investment in Coupang, the largest South Korean e-commerce retailer; the Company raised the capital at approximately a $2.5 billion valuation; similar to Indian e-commerce neighbors Flipkart and Snapdeal, the Company expects to beat global e-commerce giant Amazon.com on its home turf

Public Equity Offering M&A Transaction Private Financing News Highlight

William Blair

Internet & Digital Media Recent Headlines 3

Selected Highlights (cont.)


Dec-04 \ CVC Capital Partners announced its approximately $942 million majority acquisition (~80%) of Sky Bet, an online casino, poker and bingo gaming and sports betting website for consumers in the U.K and Europe, from Sky (SKYB.L); the deal values the online betting business at approximately $1.3 billion

Dec-04 \ Though investors were not officially announced, it is believed that Sequoia Capital, TPG, Fidelity, T.Rowe Price, Wellington, KPCB and Menlo Ventures invested $1.2 billion in Uber, a ride sharing company; the Company raised the capital at a $40 billion valuation

Dec-04 \ Tiger Global announced its $225 million lead investment in AvantCredit, which specializes in making loans to borrowers whose credit scores generally lie in the 600 range; unlike LendingClub but similar to OnDeck Capital, the Company makes loans using its own capital

Dec-03 \ Softbank announced a $250 million investment in GrabTaxi, a Southeast Asia app-based ride sharing company that is Uber's major rival in the region; the Company raised the capital at a ~$1 billion valuation; the announcement from Softbank comes after the Japanese telecom giant announced its $10 billion commitment to high growth startups in India and Southeast Asia generally

Nov-29 \ Temasek announced its approximately $250 million investment in Lazada, a Southeast Asian e-commerce company; the Company raised the capital at approximately a $1.3 billion valuation

Nov-24 \ General Atlantic announced its $47 million minority investment in Vox Media, an online media publisher that owns news site Vox.xom and popular sports blog network, SB Nation; the Company raised the capital at a $380 million valuation

Nov-11

Taylor Swift pulls tracks from her hot-selling album, 1989, from Spotify after dismissively calling the streaming music provider a "grand experiment"; the popular singer would have made $6 million this year on Spotify

Nov-11 \ Yahoo! announced its $640 million acquisition of BrightRoll, an online platform for selling and delivering video advertising; Yahoo! hopes to strengthen its video advertising platform by giving marketers an easier way to buy video ads in real-time and across many different websites

Nov-04 Music royalty research firm, Kobalt, found that revenues from Spotify streams were 13% higher on average than revenues from Apple's iTunes for customers in the European market

Oct-28 \ Softbank announced its $627 million investment in Snapdeal, a leading Indian e-commerce marketplace; both Snapdeal and its rival Indian e-commerce firm, Flipkart, are facing stiff competition from global e-commerce giant, Amazon, which announced its $2 billion investment to ramp up business in India

Oct-20 \ Ooyala, a Telstra subsidiary, announced its $80 million acquisition of Videoplaza, an operator of one of the world's largest premium video ad serving platforms and programmatic trading solutions used by broadcasters and media companies in Europe and the Asia Pacific region to optimize video monetization

Oct-17 \ Great Hill Partners announced its approximately $130 million investment in Momondo Group, an online travel search company which operates in 30+ countries through Cheapflights and Momondo; the Company raised the capital at approximately a $210 million valuation


? ?

William Blair

Internet & Digital Media 4 Recent Headlines

Selected Highlights (cont.)


Oct-06 \ DST and SAB Capital, along with 80+ investors on the crowdfunding platform, AngelList, announced a nearly $13 million investment in Beepi, an online used car marketplace; the $2.7 million raised through AngelList makes it the largest single investment raised on the platform since its founding in 2010

Oct-02

Wonga has agreed to entirely write off the debts of 330,000 customers who were more than 30 days in arrears and to waive the interest rates and fees of another 45,000 between 0 and 29 days in arrears; Wonga was forced to action by the U.K.'s Financial Conduct Authority after the Company admitted its affordability checks on consumers were inadequate

Oct-01 \ Sequoia Capital announced its $165 million investment in Houzz, an online home-remodeling website; the Company raised the capital at a $2.3 billion plus post-money valuation, according to some sources


William Blair

Internet & Digital Media IDM Intelligence 5

IDM Intelligence

In light of LendingClub’s $1 billion IPO, valuing the Company at $5.4 billion and OnDeck Capital’s $230 million IPO valuing the Company at $1.3 billion, we decided to focus this quarter’s intelligence piece on the rapidly evolving “Online Marketplace Lending” ecosystem.

So first things first…what do we mean by “Online Marketplace Lending”? Is that just a fancy name for a bank?

• In its purest form, online marketplace lenders are different from banks because they do not make loans to borrowers from their own balance sheets (no loan default risk); instead, they provide a proprietary technology platform that directly connects lenders and borrowers, thereby disintermediating the bank

• Disintermediation can create lower costs for borrowers and higher risk-adjusted returns for lenders • Given these important distinctions between many marketplace lenders and traditional bank lenders, investors tend to

compare companies like LendingClub with other online marketplaces serving a wide range of end markets, including:

Here’s a look at how the LendingClub platform works – connecting borrowers and lenders

Source: LendingClub investor materials and William Blair.

Benefits to Borrowers

Benefits to Lenders

Access to Affordable

Credit

Fast and Efficient Decision

Transparency and

Fairness

Superior Customer

Experience

Capital

Principal + Interest

$

$

$

% fee to LC

% fee to LC

Access to aNew Asset

Class

Easy-to-UseTools

Transparency

AttractiveRisk-Adjusted

Returns

William Blair

Internet & Digital Media 6 IDM Intelligence

Who exactly are the lenders here?

In the case of LendingClub, the funding comes primarily from individual investors (as shown below); however, other players in the space are turning to more institutional capital and their own balance sheets to fund a larger portion of loans

Source: LendingClub S-1. Percentages based on $2.1 billion in loans facilitated by LendingClub for the year ended 12/31/13.

The online marketplace lending space is growing rapidly and more specialized players are entering different sub-segments of the market

Foundation Capital, in their report “A Trillion Dollar Market By the People, For the People”, estimates that $8.8 billion of marketplace loans will be originated in 2014; that may sound like a big number, but it only represents ~0.25% of total annual lending activity of $3.2 trillion, meaning there’s still a whole lotta’ room for growth and disruption ahead!

Who else is out there trying to disrupt traditional lending markets?

Source: “A Trillion Dollar Market By the People, For the People” by Charles Moldow, General Partner – Foundation Capital.

Concluding remarks: Though we are still in the early days, we expect to see a lot more disruption in the lending market, especially after the public markets’ favorable reception of the LendingClub and OnDeck Capital IPOs. We believe more disruption and innovation will continue to drive efficiency in the lending market and anticipate a very active 2015 in this exciting space!

57%27%

16%Individuals through Investment Vehicles or Managed Accounts

Self-Managed Individual Investors

Institutional Investors

$0.1 $0.3 $0.5 $1.2

$3.4

$8.8

0.0

2.5

5.0

7.5

10.0

2009 2010 2011 2012 2013 2014E

($ in billions)

$8.8billion

$3.2trillion Total

Annual Lending Activity

ConsumerLoans

Education Financing

SMB Credit

William Blair

Internet & Digital Media Market Snapshot 7

Market Snapshot

Economic Indicators

Economic Indicators 2009 2010 2011 2012 2013 2014

NASDAQ (yr. end) 2,269 2,653 2,605 3,020 4,177 4,736

Dow Jones Industrial Average (yr. end) 10,428 11,578 12,218 13,104 16,577 17,823

USD/Euro Exchange Rate (ann. avg.) $1.39 $1.33 $1.39 $1.29 $1.33 $1.33

Federal Funds Rate (ann. avg. %) 0.16 0.18 0.10 0.14 0.11 0.09

U.S. Inflation Rate (yoy, ann. avg. %) (0.3) 1.6 3.2 2.1 1.5 1.7

3-Month LIBOR (ann. avg. %) 0.686 0.344 0.337 0.430 0.270 0.234

U.S. 10-Year Treasury Bond (ann. avg. %) 3.26 3.22 2.78 1.80 2.35 2.54

U.S. GDP Growth (yoy, ann. avg. %) (2.6) 2.9 1.6 2.4 1.6 2.4

U.S. Unemployment Rate (ann. avg. %) 9.3 9.6 9.0 8.1 7.5 6.2

Consumer Confidence (ann. avg.) 45.2 54.5 58.1 66.9 73.3 86.9

Sources: NASDAQ, Dow Jones, S&P, Federal Reserve, Bureau of Labor Statistics, Census Bureau, Bureau of Economic Analysis, Conference Board, and The Wall Street Journal as of December 31, 2014.

All Sectors

Number of Total Global Transactions 2009 2010 2011 2012 2013 2014

Total M&A – Announced 36,416 39,986 39,171 41,531 25,849 35,058

Total Private Placements 18,792 26,725 26,712 25,813 27,528 31,493

Total PIPES 2,628 3,585 2,865 2,531 2,598 2,075

Total IPO Filings 81 181 195 89 202 322

Total IPO Pricings 52 117 104 111 174 243

Total Follow-On Filings 758 659 474 543 765 651

Total Follow-On Pricings 687 587 412 484 638 612

Sources: Dealogic, Capital IQ, and PlacementTracker as of December 31, 2014.

William Blair

Internet & Digital Media 8 Market Snapshot

Technology

Number of U.S. Technology Transactions 2009 2010 2011 2012 2013 2014

Technology M&A – Announced 1,637 2,173 2,199 2,224 2,089 2,456

Technology Private Placements 2,648 3,376 4,019 3,901 4,726 4,357

Technology PIPES 148 189 91 73 82 86

Technology IPO Filings 28 65 78 32 54 67

Technology IPO Pricings 17 43 44 43 53 58

Technology Follow-On Filings 67 72 70 66 151 104

Technology Follow-On Pricings 64 68 62 58 146 98

Internet & Digital Media

Number of U.S. Internet & Digital Media Transactions 2009 2010 2011 2012 2013 2014

Internet & Digital Media M&A – Announced 382 445 496 418 358 316

Internet & Digital Media PIPES 28 55 50 35 39 34

Internet & Digital Media IPO Filings 6 11 14 9 10 19

Internet & Digital Media IPO Pricings 3 7 20 13 10 18

Internet & Digital Media Follow-On Filings 2 5 8 6 12 13

Internet & Digital Media Follow-On Pricings 2 5 7 5 12 13

Internet & Digital Media Median Multiples

Median 2009 2010 2011 2012 2013 2014

Forward CY EV/Revenue 1.8x 2.1x 1.8x 1.7x 2.3x 2.0x

Forward CY EV/EBITDA 8.9x 9.0x 7.7x 8.7x 11.4x 9.5x

Forward CY P/E 21.1x 20.8x 17.7x 17.6x 23.5x 18.4x

Forward CY P/E/G 1.3x 1.1x 0.9x 0.9x 1.2x 1.3x

Sources: 451 Capital IQ, FactSet Research Systems, and PlacementTracker as of December 31, 2014.

William Blair

Internet & Digital Media Public Equity Market Overview 9

Public Equity Market Overview

Public Comparable Companies

Summary of Public Comparables

Ent. Value/Sales Ent. Value/EBITDA P/E Ratio (CY ’15E) PEG Category 2015E 2016E 2015E 2016E 2015E 2016E Ratio E-commerce / Marketplaces (1) 1.9x 1.6x 13.7x 11.1x 21.6x 16.7x 1.2x

E-retail (2)(3) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x

Ad Tech 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x

Content 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x

Social 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x

Digital Media 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x

Digital Media Infrastructure 3.0x 2.8x 11.3x 9.8x 23.8x 20.0x 1.5x

Gaming 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x

Web Services (4) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x

Mobile (5)(6) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x

Traditional Media 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x

Consumer Electronics 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x

Selected Europe & Latin America 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x

Selected Asia 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x

(1) P/E ratio metrics exclude GrubHub, Coupons.com, Borderfree, Liquidity Services and Care.com. (2) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, United Online, CafePress and GeekNet. (3) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba. (4) EBITDA and P/E Metrics exclude Tucows and Synacor. (5) Revenue metrics exlude TeleCommunications Systems and Voltari. (6) EBITDA and P/E Metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari.

William Blair

Internet & Digital Media 10 Public Equity Market Overview

Indexed Stock Performance—Last 12 Months

Source: FactSet Research Systems as of December 31, 2014.

70

80

90

100

110

120

130

140

150

12/31/13 02/28/14 04/30/14 06/30/14 08/31/14 10/31/14 12/31/14

E-commerce / Marketplaces (-1.3%) E-retail (-20.6%) Ad Tech (+13.5%)

Content (+9.3%) Social (+36.8%) Digital Media Infrastructure (+19.9%)

Gaming (+24.9%) Web Services (+0.7%) Mobile (+0.3%)

Traditional Media (+13.9%) Consumer Electronics (+23.6%) Selected Asia (-0.2%)

Selected Europe & Latin America (+0.4%) NASDAQ (+13.4%)

William Blair


Public Comparables Detail

E-commerce/Marketplaces

Stock Price

Equity Value

Enterprise Value Ent. Value/Sales Ent. Value/EBITDA P/E Ratio

(CY ’15E) PEG

Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio eBay $56.12 $69,721.6 $66,936.6 3.3x 2.9x 10.7x 9.7x 17.1x 15.3x 1.5x

The Priceline Group 1,140.21 59,696.8 57,385.6 5.8 4.9 14.1 11.8 18.5 15.6 1.0

Expedia 85.36 10,802.1 10,537.6 1.6 1.4 8.8 7.6 18.2 15.6 0.8

Groupon 8.26 5,545.4 4,690.2 1.3 1.1 13.7 11.1 54.7 34.7 1.9

Grubhub 36.32 2,961.0 2,683.2 8.3 6.9 26.6 21.1 77.2 nmf 1.6

HomeAway 29.78 2,808.6 2,330.4 4.4 3.7 17.2 13.6 40.7 32.3 1.6

Proto Labs 67.16 1,734.2 1,675.9 6.5 5.3 17.6 14.4 31.5 26.0 1.5

Coupons.com 17.75 1,419.0 1,233.3 4.2 3.3 25.9 16.1 nmf 29.8 na

Orbitz Worldwide 8.23 911.1 1,111.5 1.1 1.1 6.6 6.1 20.6 17.8 0.4

NIC 17.99 1,174.7 1,068.8 3.6 3.4 12.8 12.7 26.6 24.3 na

Dice Holdings 10.01 532.0 618.1 2.2 2.1 6.9 6.3 17.3 14.1 1.1

RetailMeNot 14.62 790.5 602.8 2.0 1.6 5.7 4.6 13.6 11.1 0.6

Monster Worldwide 4.62 409.8 586.2 0.7 0.7 5.5 5.2 14.7 11.5 1.2

Chegg 6.91 579.4 496.2 1.4 1.4 30.2 7.2 47.0 12.2 na

eHealth 24.92 444.0 385.9 1.9 1.6 24.6 15.5 54.3 34.6 3.3

Liquidity Services 8.17 244.5 181.9 0.4 na 4.3 na 12.8 na 0.6

Care.com 8.28 260.7 177.6 1.0 0.8 nmf nmf nmf nmf na

Borderfree 8.96 285.0 162.6 1.1 0.9 39.0 16.8 nmf nmf na

Travelzoo 12.62 185.9 128.7 0.9 0.9 8.1 9.5 22.5 25.5 na

Mean(1) 2.7x 2.5x 15.5x 11.1x 28.4x 20.8x 1.3x

Median(1) 1.9x 1.6x 13.2x 11.1x 21.6x 16.7x 1.2x

(1) P/E ratio metrics exclude GrubHub, Coupons.com, Borderfree, Liquidity Services and Care.com. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Social

Stock Price

Equity Value


(CY ’15E) PEG

Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio

Facebook $78.02 $217,507.9 $203,535.9 11.9x 9.0x 20.0x 15.1x 40.5x 30.2x 1.1x

LinkedIn 229.71 28,524.6 25,093.2 8.5 6.6 30.8 22.0 82.5 55.7 2.0

Twitter 35.87 22,425.2 20,303.2 8.9 6.0 37.3 20.4 nmf 47.7 na

Momo 12.00 2,237.7 2,075.5 13.3 6.2 24.7 na 75.0 21.1 na

MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na

Mean 8.7x 5.7x 23.9x 15.4x 61.5x 36.2x 1.5x

Median 8.9x 6.2x 24.7x 15.1x 61.5x 39.0x 1.5x

Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

William Blair


Digital Media

Stock Price

Equity Value


(CY ’15E) PEG


Netflix $341.61 $20,580.8 $19,813.9 2.9x 2.4x 29.2x 19.8x nmf 45.1x na

Pandora Media 17.83 3,710.2 3,393.8 2.8 2.2 nmf 13.8 35.0 20.4 0.6

Mean 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x

Median 2.9x 2.3x 29.2x 16.8x 35.0x 32.7x 0.6x


Ad Tech

Stock Price

Equity Value


(CY ’15E) PEG


Microsoft $46.45 $382,880.5 $318,257.5 3.2x 2.9x 8.9x 8.1x 16.0x 14.1x 1.5x

Google 530.66 358,535.9 307,118.9 4.9 4.2 9.9 8.4 17.5 14.9 1.1

Criteo 40.42 2,426.0 2,117.8 4.4 3.5 15.8 11.5 38.3 30.5 0.8

comScore 46.43 1,587.9 1,573.9 4.2 3.7 18.3 15.2 27.1 21.9 0.9

Constant Contact 36.70 1,162.5 1,008.1 2.6 2.2 13.3 10.8 28.1 22.7 1.1

Bazaarvoice 8.04 627.4 572.9 2.8 2.4 nmf nmf nmf nmf na

Rocket Fuel 16.12 665.7 562.4 0.9 0.7 51.9 11.5 nmf nmf na

Blucora 13.85 567.9 534.9 1.1 na 6.9 na 9.7 12.7 0.5

Rubicon Project 16.14 580.3 476.4 3.0 2.4 41.6 15.9 nmf 52.1 na

QuinStreet 6.07 269.4 226.7 0.8 0.8 13.7 11.2 48.8 na na

Marchex 4.59 196.7 116.0 0.8 0.8 7.3 7.2 32.5 27.0 na

YuMe 5.04 166.5 109.1 0.5 0.5 16.2 8.2 nmf 72.5 na

Tremor Video 2.87 146.6 68.7 0.4 0.3 nmf 23.8 nmf nmf na

ReachLocal 3.44 100.3 48.4 0.1 0.1 nmf 3.1 nmf nmf na

Mean 2.1x 1.9x 18.5x 10.8x 27.2x 29.8x 1.0x

Median 1.8x 2.2x 13.7x 10.8x 27.6x 22.7x 1.0x


William Blair


E-retail

Stock Price

Equity Value


(CY ’15E) PEG


Alibaba $103.94 $258,362.3 $251,337.5 15.7x 11.9x 29.7x 22.3x nmf 28.0x na

Amazon.com 310.35 143,693.9 139,909.9 1.3 1.1 17.3 13.2 nmf nmf na

HSN 76.00 3,980.1 4,118.3 1.1 1.1 11.2 10.3 21.0 18.9 1.5

Cnova 7.91 3,471.8 3,551.9 0.7 0.5 22.3 11.9 88.1 30.6 2.1

Cimpress 74.84 2,440.1 2,863.2 na na na na na na na

zulily 23.40 2,932.9 2,588.8 1.4 1.0 nmf 13.9 52.9 nmf 0.8

Wayfair 19.85 1,645.9 1,913.0 1.2 0.9 nmf nmf nmf nmf na

Shutterfly 41.70 1,615.6 1,622.1 1.5 1.4 7.8 6.6 nmf 45.8 na

Stamps.com 47.99 763.6 731.9 4.5 4.0 14.5 12.3 17.8 15.0 0.9

1-800-Flowers.com 8.24 528.8 591.5 0.5 na 6.8 na 18.2 na 1.1

Overstock.com 24.27 583.1 470.4 0.3 na 9.4 na nmf na na

Blue Nile 36.01 426.6 394.8 0.8 0.7 15.1 12.4 36.1 28.6 1.8

PetMed Express 14.37 291.3 241.1 1.0 na 8.5 na 16.1 na 3.2

United Online 14.55 207.1 130.8 0.6 na 3.7 na 15.3 na na

CafePress 2.35 40.8 30.3 0.1 0.1 3.9 na nmf nmf na

Geeknet 8.28 55.6 24.9 0.2 na 12.4 na 72.0 24.4 na

Mean(1) (2) 2.1x 2.3x 16.9x 12.9x 48.0x 27.2x 1.6x

Median(1) (2) 1.2x 1.1x 14.8x 12.3x 44.5x 26.5x 1.5x

(1) EBITDA metrics excude Overstock.com, 1-800 Flowers.com, Blue Nile, PetMed Express, United Online, CafePress and GeekNet. (2) P/E metrics exclude Stutterfly, Overstock.com, 1-800 Flowers.com, PetMed Express, United Online and Alibaba. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Content

Stock Price

Equity Value


(CY ’15E) PEG


Yahoo! $50.51 $47,850.7 $37,888.8 8.4x 8.4x 28.6x 27.3x 44.8x 40.2x na

TripAdvisor 74.66 10,670.7 10,440.7 6.7 5.5 17.7 14.0 29.2 23.0 1.1

IAC 60.79 5,094.3 5,159.2 1.6 1.5 8.7 6.9 18.2 13.8 3.2

Zillow 105.89 4,288.7 3,724.8 8.4 6.5 nmf 25.8 nmf 65.8 na

Yelp 54.73 3,968.9 3,604.9 6.7 4.9 nmf 18.2 nmf 60.1 na

AOL 46.17 3,596.0 3,587.8 1.3 1.2 6.7 6.2 19.1 16.6 1.4

Shutterstock 69.10 2,448.6 2,091.3 4.8 3.9 21.5 16.0 nmf nmf na

WebMD Health 39.55 1,429.8 1,682.2 2.6 2.4 9.1 8.0 31.3 24.4 2.5

Trulia 46.03 1,740.2 1,654.1 4.9 3.9 nmf 19.4 nmf 69.3 na

Shutterstock 22.90 1,766.6 1,567.8 5.6 4.2 59.6 28.4 nmf 52.3 na

Bankrate 12.43 1,298.1 1,419.1 2.3 2.1 8.9 7.6 15.4 13.3 0.9

Tree.com 48.34 547.5 463.9 2.5 2.2 nmf 13.1 nmf 19.8 na

XO Group 18.21 489.5 403.9 2.9 2.6 13.4 10.7 41.9 nmf na

Angie's List 6.23 364.6 344.9 1.0 0.9 15.9 9.1 nmf 28.5 na

TechTarget 11.37 367.6 333.1 2.8 2.3 12.4 na 28.7 na 1.1

Spark Networks 3.59 87.4 78.0 1.4 1.3 11.3 6.1 34.2 nmf 2.3

Demand Media 6.12 112.6 73.1 0.5 na 3.5 na nmf nmf na

Mean 3.8x 3.4x 16.7x 11.4x 29.2x 35.6x 1.8x

Median 2.8x 2.5x 12.4x 9.1x 29.0x 26.5x 1.4x


William Blair


Gaming

Stock Price

Equity Value


(CY ’15E) PEG


Activision Blizzard $20.15 $14,488.5 $14,982.5 3.2x 2.9x 8.7x 7.9x 14.1x 12.7x 1.0x

Electronic Arts 47.02 14,618.7 12,821.7 2.9 2.8 11.3 10.1 20.6 17.6 1.7

King Digital Entertainment 15.36 4,911.1 3,934.7 1.8 1.9 4.8 4.9 7.8 8.3 na

GameStop 33.80 3,667.8 3,647.8 0.4 0.3 4.2 4.0 8.3 7.4 0.6

Take-Two Interactive 28.03 2,358.0 2,019.1 1.3 1.2 8.2 7.4 19.9 17.3 0.7

Zynga 2.66 2,401.6 1,575.8 1.9 1.7 17.1 13.4 86.6 nmf 3.7

iDreamSky Technology 17.08 722.9 559.9 1.8 1.2 7.1 4.3 10.8 6.9 na

Mean 1.9x 1.7x 8.8x 7.4x 24.0x 11.7x 1.5x

Median 1.8x 1.7x 8.2x 7.4x 14.1x 10.5x 1.0x


Digital Media Infrastructure

Stock Price

Equity Value


(CY ’15E) PEG


Adobe $72.70 $36,258.3 $34,033.1 6.8x 5.5x 20.0x 14.7x 33.2x 21.6x 2.0x

Akamai 62.96 11,206.5 11,095.7 4.9 4.2 11.3 9.6 22.9 19.1 1.4

Dolby 43.12 4,409.7 3,631.7 3.7 3.5 na na 26.3 23.9 3.5

Rovi 22.59 2,140.0 2,859.5 5.1 4.5 12.0 9.8 12.1 9.1 0.8

Gogo 16.53 1,409.4 1,484.4 2.9 2.3 25.1 11.6 nmf nmf na

Monotype Imaging 28.83 1,129.4 1,046.8 5.1 4.6 12.9 11.3 22.8 20.0 1.5

TiVo 11.84 1,214.4 710.1 1.5 1.4 5.6 4.3 30.4 18.3 na

RealD 11.80 592.2 575.3 3.0 2.7 7.5 7.1 nmf 52.3 na

Harmonic 7.01 617.3 520.1 1.2 1.2 7.8 8.3 24.8 20.0 na

DTS 30.75 528.5 472.0 3.1 2.9 11.4 10.5 17.7 15.1 1.0

Smart Technologies 1.20 146.0 257.2 0.5 na 6.7 na nmf na na

Boingo Wireless 7.67 276.8 256.4 1.9 1.7 8.0 6.0 nmf nmf na

Brightcove 7.78 251.1 230.7 1.7 na 74.0 nmf nmf na na

Limelight Networks 2.77 273.4 172.5 1.1 1.1 nmf 70.6 nmf nmf na

Envivio 1.34 37.1 (0.8) nmf na nmf na nmf na na

Mean(1) 3.0x 3.0x 16.9x 15.2x 23.8x 22.2x 1.7x

Median(1) 3.0x 2.8x 11.3x 9.7x 23.8x 20.0x 1.5x


William Blair


Web Services

Stock Price

Equity Value


(CY ’15E) PEG


Web.com $18.99 $997.5 $1,502.5 2.6x 2.5x 9.3x 8.4x 7.8x 7.0x 0.5x

LogMeIn 49.34 1,203.1 1,006.7 3.9 3.4 17.6 14.5 38.3 30.2 1.1

Wix.com 21.00 799.9 706.1 3.5 2.6 nmf 43.0 nmf nmf na

Digital River 24.73 788.4 537.7 1.3 1.3 9.3 7.4 41.5 31.4 4.1

Carbonite 14.27 384.8 313.4 2.3 2.0 17.8 15.9 nmf nmf na

Tucows 19.41 219.5 206.0 1.2 na 10.3 na 19.2 na na

Synacor 2.00 54.8 33.0 0.3 na 23.1 na na na na

Mean(1) 2.7x 2.3x 13.5x 17.8x 29.2x 22.8x 1.9x

Median(1) 2.6x 2.5x 13.5x 14.5x 38.3x 30.2x 1.1x

(1) EBITDA and P/E metrics exclude Tucows and Synacor. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Mobile

Stock Price

Equity Value


(CY ’15E) PEG


Amdocs $46.66 $7,272.2 $6,057.7 1.6x 1.6x 8.1x 7.6x 13.6x 12.4x 1.6x

Glu Mobile 3.90 417.1 350.4 1.4 1.3 11.7 7.8 17.5 11.1 na

TeleCommunication Systems 3.12 186.1 265.4 0.7 na 6.6 na 12.7 na na

Millennial Media 1.60 222.6 146.1 0.4 0.4 nmf 22.3 nmf nmf na

Telenav 6.67 266.3 134.7 0.8 0.6 nmf 20.7 nmf 66.9 na

Voltari 0.66 3.1 25.9 na na na na na na na

Mean(1) (2) 1.1x 1.0x 9.9x 7.7x 15.6x 11.7x 1.6x

Median(1) (2) 1.1x 0.9x 9.9x 7.7x 13.6x 12.4x 1.6x

(1) Revenue metrics exlude TeleCommunications Systems and Voltari. (2) EBITDA and P/E metrics exclude Millennial Media, Telenav, TeleCommunications Systems and Voltari. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

Traditional Media

Stock Price

Equity Value


(CY ’15E) PEG

Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Comcast $58.01 $149,265.7 $193,950.7 2.7x 2.6x 8.0x 7.4x 17.6x 15.2x 1.5x

Walt Disney 94.19 159,719.0 174,358.0 3.3 3.1 11.3 10.2 19.4 16.9 1.5

Time Warner 85.42 71,623.5 90,970.5 3.2 3.0 11.3 10.0 18.1 14.7 1.2

Naspers 131.18 51,974.4 54,864.2 7.4 6.3 nmf nmf 39.1 29.0 3.1

Viacom 75.25 30,629.5 42,535.5 2.9 2.8 9.3 8.8 12.2 10.8 0.9

CBS 55.34 28,714.6 35,495.6 2.5 2.4 10.3 9.4 15.0 12.3 1.1

McGraw Hill Financial 88.98 24,158.1 23,898.1 4.5 4.2 11.2 10.2 20.5 18.2 1.4

Scripps Networks 75.27 10,320.4 11,941.0 4.2 4.0 9.7 9.2 16.8 15.0 1.4

Gannett 31.93 7,210.8 10,209.8 1.6 1.5 6.6 6.0 12.8 10.6 0.9

News Corp 15.69 9,112.3 6,538.3 0.7 0.7 6.9 6.1 29.5 25.4 1.8

Graham Holdings 863.71 5,004.0 4,848.4 1.4 1.4 7.9 7.1 26.5 25.8 3.0

New York Times 13.22 1,987.1 1,873.6 1.2 1.2 7.5 7.3 26.6 23.9 na

Mean 3.0x 2.8x 9.1x 8.3x 21.2x 18.2x 1.6x

Median 2.8x 2.7x 9.3x 8.8x 18.8x 16.0x 1.4x


William Blair


Consumer Electronics

Stock Price

Equity Value


(CY ’15E) PEG

Company 12/31/14 ($ MM) ($ MM) 2015E 2016E 2015E 2016E 2015E 2016E Ratio Apple $110.38 $647,361.0 $575,860.0 2.7x 2.5x 8.1x 7.5x 13.9x 12.7x 1.1x

Samsung 1,215.76 178,117.6 134,817.5 0.7 0.7 3.4 3.1 10.4 9.3 16.0

Hewlett-Packard 40.13 73,601.7 78,386.7 0.7 0.7 5.8 5.7 10.1 9.7 2.1

Toshiba 4.28 18,110.2 33,730.2 0.6 0.6 6.4 5.9 12.1 10.4 na

Sony 20.64 23,732.5 32,844.5 0.5 0.5 6.1 5.0 38.7 nmf na

Nokia 7.94 28,967.9 22,959.3 1.5 1.4 9.6 9.3 21.3 18.9 na

LG 54.15 9,243.7 16,356.3 0.3 0.3 4.4 4.2 8.0 7.2 0.1

Go Pro 63.22 8,077.7 7,838.4 4.7 4.0 nmf nmf 50.2 nmf 1.4

HTC 4.47 3,704.5 1,973.3 0.3 0.3 16.1 16.2 nmf nmf na

Acer 0.67 1,874.4 1,159.7 0.1 0.1 7.5 7.2 27.7 25.2 9.2

Mean 1.2x 1.1x 7.5x 7.1x 21.4x 13.3x 5.0x

Median 0.7x 0.6x 6.4x 5.9x 13.9x 10.4x 1.8x


Selected Europe and Latin America

Stock Price

Equity Value


(CY ’15E) PEG


United Internet $45.44 $9,263.1 $9,447.5 2.2x 2.1x 10.5x 9.4x 20.5x 17.4x 1.0x

MercadoLibre 127.67 5,637.3 5,518.4 8.5 6.9 24.2 19.3 38.4 31.1 1.3

UBM 7.53 3,329.8 4,103.9 2.8 2.8 10.7 10.4 13.3 12.8 2.5

Rightmove 35.03 3,389.5 3,380.0 12.4 11.3 16.8 15.2 21.7 19.2 1.4

Technicolor SA 5.62 1,883.5 2,617.0 0.6 0.7 3.7 4.2 7.1 9.1 na

Ubisoft 18.36 1,978.9 2,032.0 1.1 1.0 3.1 2.7 12.9 11.7 1.3

Moneysupermarket.com 3.65 1,987.7 2,020.0 5.1 4.8 13.5 12.6 19.0 17.7 0.9

Tomorrow Focus 4.56 266.1 303.9 1.2 1.1 9.6 8.2 19.3 14.9 0.6

GameLoft 4.04 346.4 277.3 0.9 0.8 6.4 5.1 20.2 16.1 0.2

Goldbach Group 18.12 106.5 76.0 na na na na na na na

MeetMe 1.53 68.7 57.2 1.1 0.9 6.5 4.1 nmf 11.3 na

Hi-Media 3.03 136.1 48.0 0.2 0.2 5.5 3.8 51.3 27.0 na

TradeDoubler 1.31 55.5 34.4 0.2 0.2 7.9 5.8 78.2 32.9 na

Cupid 0.29 20.5 2.8 na na na na na na na

Mean 3.0x 2.7x 9.9x 8.4x 27.5x 18.4x 1.2x

Median 1.2x 1.1x 8.8x 7.0x 20.2x 16.8x 1.1x


William Blair


Selected Asia

Stock Price

Equity Value


(CY ’15E) PEG


Tencent $14.51 $134,569.7 $132,001.3 8.5x 6.9x 19.3x 15.3x 27.0x 21.3x 3.4x

Baidu 227.97 79928.4 75733.3 6.8 5.2 20.3 14.6 25.6 18.7 0.7

JD.com 23.14 31522.2 26813.5 1.0 0.7 nmf 66.7 nmf nmf na

Rakuten 14.04 18572.2 19490.2 3.5 3.2 14.4 12.2 30.3 24.4 1.3

Naver Corp 652.31 19221.4 18311.8 na na na na na na na

Yahoo Japan 3.63 20667.5 16689.5 4.5 4.3 8.8 8.2 18.7 17.5 3.7

NetEase 99.14 12889.3 9729.9 4.3 3.7 9.8 8.2 14.2 12.2 1.0

Qihoo 360 57.26 7210.6 7224.8 3.6 2.7 12.4 8.5 17.6 12.4 0.4

Ctrip.com 45.50 6475.6 6589.3 4.1 3.2 nmf 26.5 nmf 42.5 na

Nintendo 105.21 12454.3 5792.7 1.3 1.4 18.8 17.8 60.0 74.7 na

Yandex 17.96 5716.9 5756.8 5.6 4.6 13.5 11.1 20.9 17.0 0.7

Nexon 9.39 4043.3 3457.2 2.3 2.2 5.7 5.6 12.0 11.5 0.8

Mixi 37.39 3111.3 2877.2 2.7 2.4 5.6 5.1 9.7 8.7 0.6

Bitauto Holdings 70.41 2921.8 2756.0 5.6 4.4 19.3 13.9 25.8 18.9 0.5

SouFun 7.39 3050.7 2734.6 3.3 2.8 9.2 7.1 13.3 10.6 1.3

Konami 18.53 2568.4 2466.5 1.2 1.2 8.1 7.9 19.0 18.3 0.6

Weibo 14.24 2808.6 2310.4 4.9 3.5 38.6 14.1 59.7 19.7 1.2

Youku Tudou 17.81 3525.7 2192.2 2.4 1.8 nmf nmf nmf nmf na

Sohu.com 53.18 2046.7 1838.7 0.9 0.8 15.3 5.5 nmf 35.4 na

51job 35.85 2116.7 1576.9 4.5 3.8 13.5 10.9 18.5 15.6 0.9

Changyou.com 27.36 1445.8 1497.0 1.8 1.7 17.2 10.1 17.7 11.6 3.8

Jumei International 13.62 1949.4 1356.9 1.4 1.1 11.4 7.3 18.0 12.4 0.6

SINA Corp 37.41 2472.1 1220.3 1.4 1.1 24.9 8.2 43.0 19.7 6.6

Leju Holdings 10.76 1436.7 1173.6 1.9 1.6 7.3 5.6 12.9 10.1 0.4

DeNA 12.07 1564.2 1141.3 0.9 0.9 4.0 3.9 11.5 10.9 0.9

MakeMyTrip 25.99 1083.2 1016.7 6.1 4.7 81.4 40.4 nmf 53.6 na

Gree 6.04 1431.1 958.3 1.1 1.1 4.3 4.4 11.3 11.9 0.3

E-Commerce China

9.29 750.2 477.2 0.3 0.2 9.2 4.9 18.7 10.1 0.3

Perfect World 15.76 783.6 442.3 0.6 0.5 3.5 2.9 7.1 6.0 0.5

Tuniu Corp 12.00 621.0 379.6 0.4 0.2 nmf nmf nmf nmf na

ChinaCache 9.19 233.0 164.9 0.5 0.4 5.9 5.3 47.1 nmf 1.6

Renren 2.51 901.4 89.2 0.9 0.9 nmf nmf nmf nmf na

Jiayuan.com 4.75 141.7 48.9 0.4 0.3 8.4 3.0 29.7 10.6 na

Xunlei 7.30 474.6 40.5 0.2 0.2 0.7 0.5 27.0 15.2 1.4

Taomee Holdings 3.45 122.5 13.8 0.3 0.3 10.0 6.7 49.3 38.3 na

Mean 2.6x 2.1x 14.0x 11.3x 24.7x 20.2x 1.4x

Median 1.8x 1.6x 9.8x 8.1x 18.9x 15.4x 0.9x


William Blair


Equity Offerings (All Sectors)

IPOs Filed Monthly

IPO Backlog

IPOs Priced Annually

IPOs Priced Monthly

Note: Data as of December 31, 2014; data does not include REITs, closed-end funds, and SPACs. Source: Equidesk.

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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William Blair


2012-2014(1) Selected IPOs From the IDM Sector

At Initial Filing At Offering Price Change %

Pricing Date Issuer Price

(Midpoint)

Shares Offered (mm)

Deal Value at Midpoint

(mm) Price

Shares Offered (mm)

Deal Value (mm)

% Change Initial/Act Deal Value

Mkt Cap (at Pricing)

(mm)

Deal Value as % Mkt Cap (at pricing)

File/ Offer

Offer/ 1 Day

Offer/ Current

12/10/2014 Momo $13.50 16.0 $216.0 $13.50 16.0 $216.0 0.0% $2,517.5 8.6% 0.0% 26.1% (11.1%)

12/10/2014 LendingClub $11.00 66.7 $733.7 $15.00 66.7 $1,000.5 36.4% $5,421.2 18.5% 36.4% 56.2% 68.7%

11/19/2014 Cnova $13.25 26.8 $355.1 $7.00 26.8 $187.6 (47.2%) $3,072.4 6.1% (47.2%) 2.1% 13.0%

10/01/2014 Wayfair $26.50 12.7 $335.2 $29.00 12.7 $366.9 9.4% $2,400.0 15.3% 9.4% 30.1% (31.6%)

09/18/2014 Alibaba $63.00 368.1 $25,032.3 $68.00 368.1 $25,032.3 7.9% $167,620.4 14.9% 36.3% 38.1% 52.9%

08/06/2014 iDreamSky $13.00 8.9 $132.8 $15.00 8.9 $132.8 15.4% $634.8 20.9% 15.4% 6.3% 13.9%

06/23/2014 Xunlei Ltd $10.00 8.4 $84.1 $12.00 8.4 $100.9 20.0% $832.6 12.1% 20.0% 24.2% (39.2%)

05/21/2014 JD.com $17.00 107.7 $1,830.9 $19.00 107.7 $2,047.0 11.8% $25,974.6 7.9% 11.8% 10.0% 21.8%

05/15/2014 Jumei International $20.50 12.7 $260.4 $22.00 12.7 $279.9 7.5% $3,148.8 8.9% 7.3% 9.9% (38.1%)

05/15/2014 TrueCar Inc $13.00 8.9 $115.7 $9.00 8.9 $80.5 (30.4%) $639.3 12.6% (30.8%) 11.8% 154.4%

05/08/2014 Tuniu Corp $10.00 9.2 $92.0 $9.00 9.2 $82.8 (10.0%) $431.4 19.2% (10.0%) 11.9% 33.3%

04/16/2014 Leju Holdings $11.00 10.0 $110.0 $10.00 10.0 $100.0 (9.1%) $1,320.3 7.6% (9.1%) 18.6% 7.6%

04/04/2014 GrubHub $21.00 8.1 $171.0 $26.00 8.5 $221.4 29.5% $2,038.0 10.9% 23.8% 30.8% 39.7%

04/02/2014 Rubicon Project $16.00 7.8 $124.6 $15.00 7.8 $116.8 (6.3%) $520.7 22.4% (6.3%) (15.3%) (69.5%)

03/25/2014 King.com $22.50 25.5 $574.4 $22.50 22.2 $499.5 (13.0%) $7,086.0 7.0% 0.0% (15.6%) (31.7%)

03/20/2014 Borderfree $15.00 5.8 $86.3 $16.00 5.0 $80.0 (7.2%) $487.6 16.4% 6.7% 25.0% (44.0%)

03/06/2014 Coupons.com $13.00 11.6 $150.5 $16.00 12.1 $193.2 28.4% $1,170.7 16.5% 23.1% 87.5% 10.9%

01/23/2014 Care.com $15.00 6.2 $92.3 $17.00 6.2 $104.6 13.3% $505.7 20.7% 13.3% 42.9% (51.3%)

11/16/2013 Zulily $17.00 13.2 $224.8 $22.00 13.2 $291.0 29.4% $2,685.4 10.8% 29.4% 71.4% 6.4%

11/12/2013 Chegg $10.50 17.3 $181.1 $12.50 15.0 $187.5 3.5% $1,079.0 17.4% 19.0% (22.6%) (44.7%)

11/06/2013 Twitter $18.50 80.5 $1,489.3 $26.00 80.5 $2,093.0 40.5% $14,162.1 14.8% 40.5% 72.7% 38.0%

11/05/2013 Wix $15.50 8.9 $137.3 $16.50 7.7 $127.1 (7.4%) $600.9 21.1% 6.5% (1.2%) 27.3%

10/29/2013 Criteo $24.50 8.3 $202.9 $31.00 9.3 $288.1 42.0% $1,714.2 16.8% 26.5% 14.2% 30.4%

09/19/2013 Rocket Fuel $25.50 4.6 $117.3 $29.00 4.6 $133.4 13.7% $942.3 14.2% 13.7% 93.4% (44.4%)

08/06/2013 YuMe $13.00 5.8 $75.0 $9.00 5.1 $46.1 (38.5%) $286.2 16.1% (30.8%) 0.0% (44.0%)

07/18/2013 RetailMeNot $21.00 10.5 $219.5 $21.00 10.5 $219.5 0.0% $1,054.4 20.8% 0.0% 31.9% (30.4%)

06/26/2013 Tremor Video $12.00 8.6 $103.5 $10.00 7.5 $75.0 (27.5%) $485.0 15.5% (16.7%) (15.0%) (71.3%)

06/20/2013 Gogo $16.00 12.7 $202.4 $17.00 11.0 $187.0 (7.6%) $1,462.2 12.8% 6.3% (5.9%) (2.8%)

10/10/2012 Shutterstock $14.00 5.2 $72.5 $17.00 5.2 $88.0 21.4% $558.3 15.8% 21.4% 27.4% 306.5%

09/19/2012 Trulia $15.00 6.9 $103.5 $17.00 6.9 $117.3 13.3% $448.4 26.2% 13.3% 41.2% 170.8%

07/19/2012 Kayak(2) $23.50 4.0 $94.6 $26.00 4.0 $104.7 (3.8%) $1,002.5 9.1% 10.6% 27.6% na

05/17/2012 Facebook $31.50 400.6 $12,618.9 $38.00 421.2 $16,006.9 26.8% $81,247.2 19.7% 20.6% 0.6% 105.3%

04/26/2012 Acquity Group(2) $9.00 12.8 $115.0 $6.00 11.1 $66.7 (42.0%) $141.1 47.2% (33.3%) (97.8%) na

04/24/2012 Envivio $11.00 8.9 $98.1 $9.00 7.8 $69.8 (28.9%) $239.9 29.1% (18.2%) (5.7%) (85.1%)

03/28/2012 CafePress $17.00 4.5 $76.5 $19.00 4.5 $85.5 11.8% $322.6 26.5% 11.8% 0.2% (87.6%)

03/28/2012 Millennial Media $10.00 10.2 $102.0 $13.00 10.2 $132.6 30.0% $973.6 13.6% 30.0% 92.3% (87.7%)

03/01/2012 Yelp $13.00 8.2 $106.9 $15.00 8.2 $123.3 15.4% $898.1 13.7% 15.4% 63.9% 264.9%

02/24/2012 Bazaarvoice $9.00 9.0 $81.0 $12.00 9.0 $108.0 33.3% $682.3 15.8% 33.3% 37.6% (33.0%)

02/23/2012 Proto Labs $14.00 4.9 $69.2 $16.00 4.9 $79.1 14.3% $371.0 21.3% 14.3% 81.3% 319.8%

02/17/2012 Brightcove $11.00 5.8 $63.3 $11.00 5.8 $63.3 0.0% $290.1 21.8% 0.0% 30.0% (29.3%)

02/09/2012 Synacor $11.00 7.8 $86.2 $5.00 6.8 $34.1 (60.5%) $127.9 26.7% (54.5%) 5.0% (60.0%)

Mean(3) $858.2 1.8% $6,209.9 16.9% 5.1% 22.3% 16.4%

Median(3) $123.3 7.5% $898.1 15.8% 10.6% 24.2% (11.1%)

(1) As of December 31, 2014. (2) No longer trading due to acquisition. (3) Excludes Alibaba and Facebook with exception of price change statistics. Note: Only companies trading on U.S. exchanges are included. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

William Blair


2012-2014(1) Selected Follow-Ons From the IDM Sector

Deal Value as % Mkt Cap (mm)

Price Change %

Pricing Date Issuer Deal Value

($ MM) % Primary

Shares

% Secondary

Shares

Mkt Cap (at pricing)

(mm) File/Offer Discount to Last Trade

Offer/ 1 Day

Offer/ Current

12/02/14 JD.com 618.9 0.0% 100.0% 33,040.7 1.9% (5.0%) 5.0% 3.4% 0.2%

11/11/14 TrueCar 125.2 26.6% 73.4% 1,343.5 9.3% (1.5%) (2.8%) 2.9% 25.0%

09/03/14 GrubHub 421.3 10.8% 89.2% 3,219.5 13.1% (5.9%) (1.4%) (1.5%) (7.7%)

07/23/14 MeetMe 11.5 100.0% 0.0% 90.0 12.8% (13.4%) (13.4%) 3.5% (29.0%)

07/17/14 Orbitz Worldwide 321.8 0.0% 100.0% 978.9 32.9% (8.0%) (8.0%) 8.2% 11.3%

05/30/14 Glu Mobile 34.5 100.0% 0.0% 330.1 10.5% (13.8%) (13.8%) 3.9% 2.0%

05/22/14 Orbitz Worldwide 49.5 0.0% 100.0% 755.2 6.6% (12.7%) (4.6%) 9.7% 14.8%

05/22/14 Activision Blizzard 859.0 0.0% 100.0% 14,922.0 5.8% (0.8%) (0.8%) (0.8%) 132.0%

05/21/14 TechTarget 31.3 0.0% 100.0% 208.9 15.0% (20.1%) (0.2%) 8.0% 33.1%

04/25/14 Viggle 35.0 100.0% 0.0% 158.7 22.1% (85.5%) (52.9%) (28.1%) (64.1%)

03/27/14 58.com 456.0 33.3% 66.7% 3,054.4 14.9% (26.7%) (2.9%) 6.1% 2.9%

03/21/14 Criteo 236.3 10.0% 90.0% 2,613.2 9.0% (23.6%) (1.1%) (2.5%) (11.7%)

01/07/14 Groupon 163.1 0.0% 100.0% 8,103.7 2.0% (0.8%) (0.8%) 0.7% (36.6%)

12/20/13 Facebook 3,853.5 38.6% 61.4% 140,016.5 2.8% (0.9%) (0.1%) 4.9% 38.9%

12/11/13 HomeAway 256.1 7.5% 92.5% 3,275.2 7.8% (7.3%) (2.5%) 1.2% (27.2%)

12/11/13 RetailMeNot 187.4 40.8% 59.2% 1,415.5 13.2% (14.6%) (3.5%) 1.2% (44.2%)

11/20/13 Spark Networks 25.0 0.0% 100.0% 161.2 15.5% (11.0%) (11.0%) (7.0%) (42.5%)

10/30/13 Yelp 288.9 100.0% 0.0% 4,675.0 6.2% (2.7%) (0.1%) 1.1% (20.6%)

09/19/13 Shutterstock 317.4 31.9% 68.1% 2,092.6 15.2% 9.5% (0.5%) 17.4% 1.5%

09/18/13 Pandora 523.3 75.2% 24.8% 4,850.0 10.8% 4.2% (2.5%) 9.4% (32.1%)

09/12/13 Glu Mobile 13.2 100.0% 0.0% 184.6 7.2% (12.9%) (12.9%) 8.1% 70.0%

09/04/13 LinkedIn 1,380.0 100.0% 0.0% 28,022.8 4.9% (9.4%) (6.7%) 11.4% 0.0%

08/19/13 Zillow 473.7 56.3% 43.7% 3,209.7 14.8% (10.1%) (3.2%) (1.6%) 27.1%

05/02/13 Spark Networks 41.0 32.6% 67.4% 151.8 27.0% (13.8%) (4.7%) 7.2% (44.8%)

03/14/13 Trulia 212.5 56.4% 43.6% 947.4 22.4% 6.3% (2.2%) 3.1% 52.3%

10/23/12 Millennial Media 162.7 8.0% 92.0% 1,097.9 14.8% (11.7%) (0.7%) 13.9% (89.9%)

09/06/12 Zillow 190.1 87.0% 13.0% 1,062.7 17.9% 1.3% (1.1%) 1.1% 142.4%

05/15/12 Angie's List 112.2 8.1% 91.9% 757.3 14.8% (4.0%) (1.1%) 4.1% (56.4%)

05/10/12 Web.com 136.4 0.0% 100.0% 752.2 18.1% (4.1%) (1.7%) (2.1%) 14.1%

03/28/12 Zynga 593.0 0.0% 100.0% 8,832.3 6.7% (10.3%) (2.0%) 7.0% (78.7%)

Mean(2) $285.4 37.4% 62.6% $4,493.3 12.9% (10.6%) (5.3%) 3.1% (5.6%)

Median(2) $190.1 26.6% 73.4% $1,343.5 13.1% (9.4%) (2.5%) 3.4% (4.4%)

(1) As of December 31, 2014. (2) Deal value and market cap at pricing excludes Facebook. Note: Only companies trading on U.S. exchanges are included. Sources: Capital IQ and FactSet Research Systems as of December 31, 2014.

William Blair

Internet & Digital Media M&A Activity 21

M&A Activity

2009-2014 Sector Breakdown 2009-2014 Deal Value Breakdown(1)

2,275 Transactions ($ in millions)

(1) Data does not include deals with an undisclosed deal value. Note: Includes North American Internet & Digital Media M&A transactions from December 1, 2009 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.

M&A Activity – 2014

Vertical Number of Deals Percentage of Total Content 76 29.5%

E-commerce 64 24.8%

Gaming 13 5.0%

Online Advertising 55 21.3%

Services 26 10.1%

Social Network 9 3.5%

Digital Media 15 5.8%

Total 258 100.0%

Note: Includes North American Internet & Digital Media M&A transactions from January 1, 2014 to December 31, 2014. Sources: Capital IQ, 451 research, and various media outlets.

39.7%

18.6%4.7%

18.1%

6.0%

7.0%5.9% Content

Services

Gaming

E-commerce

Online Advertising

Social Networking

Digital Media

52

78

48

74

121

5876

William Blair

Internet & Digital Media 22 William Blair Internet & Digital Media Team

William Blair Internet & Digital Media Team

Rob Metzger, head of technology, joined the corporate finance department of William Blair in 1999. While at William Blair and in his prior position at ABN AMRO Incorporated, he focused on the corporate finance needs of insurance, financial technology, and specialty finance companies. Mr. Metzger graduated in 1989 with highest honors from the University of Illinois, receiving a B.S. in accountancy. In 1995, he graduated with distinction from Northwestern University’s Kellogg School of Management, receiving an M.B.A. in finance and strategy. He is a certified public accountant. [email protected] +1 312 364 8517

James Hoak, vice president at William Blair, has more than nine years of investment banking experience and has completed more than 40 transactions. Mr. Hoak’s responsibilities consist of leading West Coast investment banking execution efforts on public and private capital raises and M&A transactions. Before joining William Blair, he worked at Financial Technology Partners and at RBC Capital Markets. Mr. Hoak received a B.B.A. from the University of Iowa and an M.B.A. from Northwestern University’s Kellogg School of Management. [email protected] +1 415 248 5908

Raphael Grunschlag, managing director and head of European technology banking, has been an investment banker with William Blair since 2012 and focuses on expanding the firm’s technology practice across Europe and the Middle East. He has more than 16 years of investment banking experience, having advised on more than $24 billion of transactions across M&A, ECM, and debt financings. Before joining William Blair, Mr. Grunschlag served as head of European technology investment banking at Bank of America Merrill Lynch (2005-2011), led the European Internet and software team for the CSFB Technology Group (1999-2005), and worked at Hambrecht & Quist (1995-1999). He holds a master’s degree in international affairs from Columbia University’s School of International and Public Affairs as well as a bachelor’s degree in Middle Eastern and Asian languages and cultures from Columbia. [email protected] +44 20 7868 4501

William Blair

Internet & Digital Media Disclosures 23

Disclosures

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Conduct Authority ("FCA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being “Eligible Counterparties” and Professional Clients). This Document is not to be distributed or passed on to any “Retail Clients.” No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com

January 21, 2015

William Blair’s investment banking group combines signi�icant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and �inancing solutions to our global base of corporate clients. We serve both publicly traded and privately held companies, executing mergers and acquisitions, growth �inancing, �inancial restructuring, and general advisory projects. This comprehensive suite of services allows us to be a long-term partner to our clients as they grow and evolve. From 2010-2014, the investment banking group completed more than 330 merger-and-acquisition transactions worth $73 billion in value, involving parties in 36 countries and �ive continents, was an underwriter on more than 20% of all U.S. initial public offerings, and raised nearly $100 billion in public and private �inancing.

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