software equity group february 2014 flash...

Febr

uary

201

4 Software Equity Group

Flash Report Select M&A Transactions and Valuations

and Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank founded in

LEADERS IN SOFTWARE M&AIndustry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking:

• Strategic exit• Growth capital

We Do Deals.

Growth capital• Buyout • Inorganic growth via acquisition• Buy and sell-side mentoring• Fairness opinions and valuationsFairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies• Clients span virtually every software technology, product

category, delivery model and vertical market• Global presence providing advice and guidance to more

th 2 000 i t d bli i th h t USthan 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction, operating, legal and engineering experience

• Unparalleled software industry reputation and track record.

• Highly referenceable base of past clients

Copyright © 2014 by Software Equity Group, LLC

EXTENSIVE GLOBAL REACH

Current Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France,

Recent Sell-side Representation

Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

SEG Research Distribution

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are q y p y pdistributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.


p ,

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and

ABOUT SOFTWARE EQUITY GROUPq y p y g gy , g

advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling We are skilled and accomplished investment bankers with extraordinary software internet and technologyOur value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

P h t i t t th l ti hi ' b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. g

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, [email protected] , 2800-509) 858Beible, Director, Business Development (Kris please contact

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www softwareequity comwww.softwareequity.comp: (858) 509-2800

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.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

Additions:

SEG Index Changes

Covisint Corporation COVS SaaS Other SaaSLiquid Holdings Group, LLC LIQD SaaS Other SaaS

Rally Software Development, Inc.

Company Ticker Index Category

RALY SaaS Other SaaS

Chegg, Inc. Internet CommerceCHGG

Removals:

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

AsiaInfo Holdings, nka AsiaInfo - LinkageAcquired by CITIC Capital Partners ($818 M) - Software Billing & Services

Company Ticker Index Category

Digital GenerationAcquired by Extreme Reach ($485 M) - Internet Ad Tech & Lead Generation

ResponsysAcquired by Oracle ($1,566 M) - SaaS CRM & Marketing

List of Commonly Used Acronyms

CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date


Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index


SEG Software Index


SEG SaaS Index

SEG Internet Index


Select January 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-31-2014 Kinetic Data, Inc. Coderow, Inc. - - - -Jan-31-2014 Vector Capital CollabNet, Inc. - - - -Jan-31-2014 Thomson Reuters Corporation (TSX:TRI) Domínio Sistemas Ltda. - - - -Jan-31-2014 Actuate Corporation (NasdaqGS:BIRT) legodo ag - - - -Jan-31-2014 Mentor Graphics Corp. (NasdaqGS:MENT) Mecel AB, AUTOSAR Assets - - - -Jan-31-2014 New International Infopet Systems Ltd. NFU Inc. - $0.8 - -Jan-31-2014 Columbus A/S (CPSE:COLUM) Omnica Limited - - - -Jan-31-2014 Altiux Innovations Pvt Ltd. P-Device Systems Pvt Ltd - - - -Jan-31-2014 PC GUARD Systemy Informatyczne SA PC Guard Spólka Akcyjna, ERP Information Systems - $1.1 - -Jan-31-2014 Physio-Control, Inc. Sansio, Inc. - - - -Jan-31-2014 iFLAG Co.,Ltd. (JASDAQ:2759) Sfida Co., Ltd. $3.5 - - -Jan-31-2014 Mafra, a.s. Webdio, s.r.o. - - - -Jan-30-2014 Dassault Systemes SA (ENXTPA:DSY) Accelrys Inc. (NasdaqGS:ACCL) $166.3 $643.0 3.9x 58.2xJan-30-2014 CX Partners; Capital Square Partners Aditya Birla Minacs Worldwide Ltd. - $260.0 - -Jan-30-2014 Controladora de Servicios de Telecomunicaciones, S.A. de C.V AM Telecom Américas, S.A de C.V. - - - -Jan-30-2014 Horizontal Software SAS Equitime S.A. - - - -Jan-30-2014 Frickmann Management Group sl GrandArtClub GmbH - - - -Jan-30-2014 Yahoo! Inc. (NasdaqGS:YHOO) Incredible Labs, Inc. - - - -Jan-30-2014 T-Systems South Africa (Pty.) Ltd. Intervate (Pty) Ltd. - - - -Jan-30-2014 SalesFUSION Inc. LoopFuse, Inc. - - - -Jan-30-2014 Zynga Game International Limited NaturalMotion Ltd. - $527.1 - -Jan-30-2014 Visma AS Oy Finnvalli Finland Ab $6.8 - - -Jan-30-2014 Rasky Baerlein Strategic Communications, Inc. Prism Public Affairs, L.L.C. - - - -Jan-30-2014 Bottomline Technologies (de), Inc. (NasdaqGS:EPAY) Rationalwave, Inc. - $4.9 - -Jan-30-2014 Bugsnag Inc. Rescue.js - - - -Jan-30-2014 Cambridge Healthtech Institute, Inc. The Knowledge Foundation, Inc. - - - -Jan-29-2014 TiVo Inc. (NasdaqGS:TIVO) Digitalsmiths Corporation - $135.0 - -Jan-29-2014 Viggle Inc. (OTCPK:VGGL) Dijit Media Inc. - $1.4 - -Jan-29-2014 ThinkHR Corporation HR That Works, Inc. - - - -Jan-29-2014 This Life, Inc. Nerve.com, Inc. - - - -Jan-29-2014 Vendere Partners, Ltd. Shumway, Ink., LLC - - - -Jan-29-2014 Transoft Solutions, Inc. Simtra AeroTech AB - - - -Jan-29-2014 Telenav, Inc. (NasdaqGS:TNAV) skobbler GmbH - $23.8 - -Jan-29-2014 Private Investor(s) Theta Research, LLC - - - -Jan-29-2014 Yahoo! Inc. (NasdaqGS:YHOO) Tomfoolery Inc. - - - -Jan-28-2014 StormGeo AS Applied Weather Technology, Inc. - - - -Jan-28-2014 Intel Corporation (NasdaqGS:INTC) appMobi Inc. - - - -Jan-28-2014 Allison & Partners, Inc. Century PR - - - -Jan-28-2014 Suning Commerce Group Co., Ltd. (SZSE:002024) Manzuo.com - - - -Jan-28-2014 Comuto S.A.S. Podorozhniki - - - -Jan-28-2014 Race Day Events, LLC Purple Door Productions, Inc. - - - -Jan-28-2014 Steptoe & Johnson PPLC S&J Capitol Concepts, LLC - - - -Jan-27-2014 Goodbaby (Hong Kong) Limited Columbus Holding AG - $96.6 - -Jan-27-2014 Navico Norway AS Contour Innovations, LLC - - - -Jan-27-2014 IT-Informatik GmbH ETHALON GmbH - - - -Jan-27-2014 LIN Digital Media LLC Federated Media Publishing, Inc. - $18.8 - -Jan-27-2014 iotum Inc. Gaboogie Canada Inc. - - - -Jan-27-2014 erento GmbH iRent Oy - - - -Jan-27-2014 Berkshire Hathaway Specialty Insurance MyAssist Inc. and Insure America LLC - - - -Jan-27-2014 Daily Internet Plc (AIM:DAIP) NameHog Limited $0.3 $0.2 0.8x 5.0xJan-27-2014 comScore, Inc. (NasdaqGS:SCOR) Nielsen Audio, Cross-Platform Audience Measurement Services - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-27-2014 Secret Service Public Relations Two Fish Out Of Water Pty. Ltd. - - - -Jan-27-2014 LiveOps, Inc. UserEvents, Inc. - - - -Jan-27-2014 CONJECT AG WAPP6 - - - -Jan-27-2014 Xiopia GmbH WK EDV GmbH - - - -Jan-27-2014 Ubiquity Broadcasting Corporation (OTCBB:UBIQ) ZUUS Media, Inc. - $30.0 - -Jan-26-2014 Google Inc. (NasdaqGS:GOOG) Deepmind Technologies Limited - $401.3 - -Jan-25-2014 Cuelogic Technologies Pvt. Ltd. Evolutionate, Inc. - - - -Jan-24-2014 The Reynolds and Reynolds Company Add-on-Auto LLC - - - -Jan-24-2014 Arvig Enterprises, Inc. Aevenia, Inc., Data Communications Division - - - -Jan-24-2014 Rubik Financial Limited (ASX:RFL) AMEE Easy Software Solutions Pty Ltd, Easy Dealer - - - -Jan-24-2014 Yahoo! Inc. (NasdaqGS:YHOO) Cloud Party, Inc. - - - -Jan-24-2014 Private Investor(s) Haneda Business Fusion Co., Ltd. $2.1 $0.3 0.1x -Jan-24-2014 JD.com, Inc. HotelVP - - - -Jan-24-2014 Frasermedia Ltd McAllister Media - - - -Jan-24-2014 Incadea Plc (AIM:INCA) RC Real Business Solutions GmbH - $17.1 - -Jan-24-2014 WyzAnt, Inc. Tutorspree, Inc. - - - -Jan-24-2014 Budget Center Inc. (OTCPK:BDGN) Vericard Inc. - - - -Jan-23-2014 Client Focused Media, Inc. BluHorn, LLC - - - -Jan-23-2014 AXS.com Clarity Digital Group LLC - - - -Jan-23-2014 QUALCOMM Incorporated (NasdaqGS:QCOM) Hewlett-Packard, Palm, IPAQ and Bitfone Patent Portfolio - - - -Jan-23-2014 Assicom S.p.A. Infonet Srl - - - -Jan-23-2014 Demandware, Inc. (NYSE:DWRE) Mainstreet Commerce - - - -Jan-23-2014 Global Payments Inc. (NYSE:GPN) Payment Processing, Inc. - $420.0 - -Jan-23-2014 AOL Inc. (NYSE:AOL) Project Rover, Inc. - $90.7 - -Jan-23-2014 Dairy LLC QA Studio Inc. - - - -Jan-23-2014 PCH International Limited ShopLocket Inc. - - - -Jan-23-2014 BAASS Business Solutions Inc. SuiteSkies, Inc. - - - -Jan-23-2014 Private Investor(s) Triton Distribution Systems, Inc. - $0.1 - -Jan-23-2014 AdRoll, Inc. Userfox - - - -Jan-23-2014 The Gores Group LLC Zmags, Corp. - - - -Jan-22-2014 TechMediaNetwork, Inc. BuyerZone.com, LLC - - - -Jan-22-2014 iFood Central do Delivery Ltda. - - - -Jan-22-2014 XL Marketing Corp. ClickSquared Inc. - - - -Jan-22-2014 Private Investor(s) ConnectAround Inc. - - - -Jan-22-2014 Gilla Inc. (OTCPK:GLLA) Drinan Marketing Limited - $0.1 - -Jan-22-2014 Trustable Passwords iMagic Software, Inc. - - - -Jan-22-2014 Confirmit AS Integrasco AS - - - -Jan-22-2014 MCI Brazil S/A JZ Congressos Ltda. - - - -Jan-22-2014 Diversified Business Communications Inc. Kavin Intertrade Co., Ltd. - - - -Jan-22-2014 Responsys, Inc. Push IO Inc - - - -Jan-22-2014 ServiceSource International, Inc. (NasdaqGS:SREV) Scout Analytics, Inc. $5.4 $32.5 6.0x -Jan-22-2014 Heinrich Bauer Verlag KG Sparkassen-Finanzportal GmbH, gebrauchtwagen.de - - - -Jan-22-2014 Decision Technologies Limited TRG Online Ltd - - - -Jan-22-2014 HootSuite Media Inc. uberVU Ltd. - - - -Jan-21-2014 VMware, Inc. (NYSE:VMW) AirWatch, LLC - $1,540.0 - -Jan-21-2014 Opus Fund Services AlphaMetrix 360, LLC - - - -Jan-21-2014 General Electric Company (NYSE:GE) API Healthcare Corporation - - - -Jan-21-2014 Fabrikant.ru Ltd. CJSC MICEX-Information Technologies - $13.0 - -Jan-21-2014 Rushmore.FM Limited Event Marketing SL - - - -Jan-21-2014 Xumanii International Holdings Corp (OTCPK:XUII) GiddyUp - - - -Jan-21-2014 Private Investor(s) Girl Meets Food, LLC - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-21-2014 Titan Iron Ore Corp. (OTCBB:TFER) iHookup Social, Inc. - - - -Jan-21-2014 Verizon Communications Inc. (NYSE:VZ) Intel Media, Inc. - - - -Jan-21-2014 Yuxi Pacific Group LLC Lex Paradigm Inc. - - - -Jan-21-2014 Lowe & Partners Limited Lowe Profero - - - -Jan-21-2014 Etransmedia Technology, Inc. Medigistics, Inc. - - - -Jan-21-2014 istyle, Inc. (TSE:3660) mixi marketing, Inc., Demand Side Platform Vantage and Solution Business - - - -Jan-21-2014 ICF International Inc. (NasdaqGS:ICFI) Mostra SA $40.0 - - -Jan-21-2014 Japan Industrial Partners, Inc. NEC BIGLOBE, Ltd. - $861.6 - -Jan-21-2014 PopSugar, Inc. PICT - - - -Jan-21-2014 iON America PowerChalk, Inc. - - - -Jan-21-2014 Vodkaster, SAS Riplay SAS - - - -Jan-21-2014 Yahoo! Inc. (NasdaqGS:YHOO) Sparq - - - -Jan-21-2014 The Public Apology The Sporting Regard - - - -Jan-21-2014 ZenithOptimedia Limited ZenithOptimedia South Africa - - - -Jan-20-2014 Ellucian, Inc. CampusIT Limited - - - -Jan-20-2014 Callcredit Information Group Limited Coactiva Aspiren Ltd - - - -Jan-20-2014 ByteGrid Holdings LLC Continental Casualty Company, Inc., 70,000 Square Foot, Tier III Data Center in Aurora, Illinois - - - -Jan-20-2014 Band Outernet S.A. DMC Outbus Publicidade em Ônibus Ltda. - - - -Jan-20-2014 ONE-UP Inc. G-mode Co., Ltd. - $7.2 - -Jan-20-2014 Sputnik Enterprises, Inc. iCaddy - - - -Jan-20-2014 MCI Brazil S/A JZ Brazil - - - -Jan-20-2014 Mobile Promotions Corporate Events Limited Lloyd Paul Events Ltd - - - -Jan-20-2014 Varian Medical Systems, Inc. (NYSE:VAR) National Health Service (UK), Radiation Oncology Planning Online Resource Tool - - - -Jan-20-2014 Lateral Scale, LLC Neuwav Media - - - -Jan-20-2014 Gary Jonas Computing, Ltd. Retention Management LLC - - - -Jan-20-2014 iScore Golf, LLC Sputnik Enterprises, Inc. - - - -Jan-20-2014 Aastra Technologies Ltd. (TSX:AAH) Telepo AB - - - -Jan-20-2014 Genesys Telecommunications Laboratories, Inc. Ventriloquist Customer Communications Solutions International Inc. - - - -Jan-18-2014 Allied Wallet, Ltd. Cloudasia Limited - - - -Jan-17-2014 HID Global Corporation IdenTrust, Inc. - - - -Jan-17-2014 AlphaCipher Acquisition Corporation Vadium Technology, Inc., AlphaCipher Technology Platform - - - -Jan-16-2014 Quindell Plc (AIM:QPP) ACH Group Management Ltd. - $50.5 - -Jan-16-2014 arvato infoscore GmbH AfterPay B.V. - - - -Jan-16-2014 Private Investor(s) Applied Discovery, A DTI Company - - - -Jan-16-2014 Herman Integration Services, LLC Avisys, Inc. - - - -Jan-16-2014 Open joint stock company MegaFon (LSE:MFON) CJSC SMARTS-Volgograd - - - -Jan-16-2014 Anything Technologies Media Inc. (OTCPK:EXMT); IMD Companies, Inc. (OGreen Linx Inc. - - - -Jan-16-2014 Searchen Networks, Inc. Long Island Exchange Inc. - - - -Jan-16-2014 Monterro Holdings AB Lundalogik AB $15.5 - - -Jan-16-2014 Eyeball Digital, Inc. Micrositez LLC - - - -Jan-16-2014 HUBHEAD CORP. NRX Global Inc. - - - -Jan-16-2014 Lavigne SAS Photoweb SAS $29.5 - - -Jan-16-2014 4CAD Group Plate-forme d’Ingénierie Collaborative de Cités en Champagne - - - -Jan-16-2014 IntelliShop, LLC Shops, Training And Results, Inc. - - - -Jan-16-2014 Electronics for Imaging, Inc. (NasdaqGS:EFII) SmartLinc, Inc. - - - -Jan-15-2014 Trusted Team LLC 22Touch Systems, Inc. - - - -Jan-15-2014 CipherCloud, Inc. CloudUp Networks - - - -Jan-15-2014 FullContact Inc. Cobook SIA - - - -Jan-15-2014 SolarCity Corporation (NasdaqGS:SCTY) Common Assets LLC - - - -Jan-15-2014 Handybook, Inc. Exec, Inc. - $10.0 - -Jan-15-2014 JUICE Mobile Gauge Mobile Solutions, Inc. - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-15-2014 KR Global Ventures Sdn Bhd Good World Investments Limited and Ren Ren Media Group Ltd. - - - -Jan-15-2014 Google Inc. (NasdaqGS:GOOG) Impermium Corporation - - - -Jan-15-2014 Silicon Dot Pte. Ltd. Indiescapes Pte Ltd. - - - -Jan-15-2014 Springwater Capital, LLC Inspiring Benefits, S.L. - - - -Jan-15-2014 Secret Escapes Ltd JustBook Mobile GmbH - - - -Jan-15-2014 SapientNitro Inc. La Communidad Corp. - - - -Jan-15-2014 Blackboard Inc. MyEdu Corporation - - - -Jan-15-2014 SintecMedia Ltd.; Sintec Media Software Ltd. Pilat Media Global plc (AIM:PGB) $42.7 $76.6 1.8x 19.9xJan-15-2014 Grocery Shopping Network, Inc. PlaceWise Media LLC - - - -Jan-15-2014 Mobivity Holdings Corp. (OTCPK:MFON.D) SmartReceipt, Inc. - $2.0 - -Jan-15-2014 Fullscreen, Inc. Supernova Inc. - - - -Jan-15-2014 Kapsch TrafficCom IVHS Inc. Transdyn, Inc. $32.0 $16.0 0.5x -Jan-15-2014 Hamilton-Ryker IT Solutions, LLC WMS iSymphony, Inc. - - - -Jan-14-2014 Surgical Information Systems, LLC Amkai LLC - - - -Jan-14-2014 Radionomy SA AOL Inc., Winamp and Shoutcast - - - -Jan-14-2014 DE Acquisition 2, Inc. Cachet Financial Solutions, Inc. - - - -Jan-14-2014 Collector Car Network, Inc. ClassicCar.com - - - -Jan-14-2014 PROACTIS Holdings PLC (AIM:PHD) EGS Group Limited - $3.6 - -Jan-14-2014 Garbergs Reklambyrå AB Garbergs Malmö - - - -Jan-14-2014 Müller Medien GmbH & Co. KG imedo GmbH - - - -Jan-14-2014 InSequent, Inc. Intelligent SEO S.L. - - - -Jan-14-2014 Linko Inc. LocalStream UG - - - -Jan-14-2014 EBSCO Information Services Plum Analytics, Inc. - - - -Jan-14-2014 RuffaloCODY, LLC ScaleFunder, Inc. - - - -Jan-14-2014 Sway Group LLC The SITS Girls and Bloggy Boot Camp - - - -Jan-14-2014 Markit Group Limited thinkFolio Limited - - - -Jan-13-2014 Homeexchange.Com Inc. ahaGO, Inc. - - - -Jan-13-2014 AssetWorks, Inc. Boss Consulting Services, Inc. - - - -Jan-13-2014 Facebook, Inc. (NasdaqGS:FB) Branch Media, Inc. - $15.0 - -Jan-13-2014 Healthsparq, Inc. ClarusHealth Solutions - - - -Jan-13-2014 InternetQ PLC (AIM:INTQ) Interacel Holdings LLC - - - -Jan-13-2014 SNL Financial LC iPartners LLC - - - -Jan-13-2014 Blue Spurs Inc. Lashpoint Inc. - - - -Jan-13-2014 Private Investor(s) Local Food Systems, Inc. - - - -Jan-13-2014 Vocera Communications, Inc. (NYSE:VCRA) mVisum, Inc. - $3.5 - -Jan-13-2014 The Jewish Telegraphic Agency MyJewishLearning, Inc. - - - -Jan-13-2014 Gilbarco Inc. Outcast Media International, Inc. - - - -Jan-13-2014 Project Management Institute, Inc., Endowment Arm ProjectManagement.com And ProjectsAtWork - - - -Jan-13-2014 Millennium Laboratories, Inc. RxAnte Inc. - - - -Jan-13-2014 Spiral Hosting Limited SpeedySparrow Pty Ltd - - - -Jan-13-2014 WPP plc (LSE:WPP) WVI Group - - - -Jan-12-2014 Abacast, Inc. AllDigital Holdings, Inc (OTCBB:ADGL) $3.8 - - -Jan-12-2014 Apex 9 Inc. VOIPNetX, Inc. - - - -Jan-10-2014 Infogix, Inc. Agilis International, Inc. - - - -Jan-10-2014 Blue Sun Media, Inc. Blue Sun Media, Inc. Prior to reverse merger with Apple Green International Limited - - - -Jan-10-2014 Xoom Corporation (NasdaqGS:XOOM) BlueKite, Ltd. - $15.0 - -Jan-10-2014 Empowered SMS Limited Convergis Ltd - - - -Jan-10-2014 CompuGroup Medical AG (DB:COP) Imagine Group $9.8 - - -Jan-10-2014 Deutsche Boerse AG (XTRA:DB1) Impendium Systems Ltd. - - - -Jan-10-2014 Zumzi SRL Kolektiva Web d.o.o. $27.3 - - -Jan-10-2014 Qualcomm Connected Experiences, Inc. kooaba AG - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-10-2014 MS&L Group Qorvis Communications, LLC - - - -Jan-10-2014 Private Investor(s) Shapiro + Raj - - - -Jan-10-2014 European Travel Interactive AB Svenska Resenätverket AB - - - -Jan-10-2014 Planet Forward, LLC UXFACTORY LLC - - - -Jan-10-2014 AFS Technologies, Inc. Visicom Inc. - - - -Jan-09-2014 GitHub Inc. Easel Inc. - - - -Jan-09-2014 Infosat Communications, Inc. Glentel Inc., MSAT Satellite Division of Wireless Solutions - $3.7 - -Jan-09-2014 Rogue Wave Software, Inc. Klocwork, Inc. - - - -Jan-09-2014 Astrata (Group) Pte Ltd. Qualcomm Enterprise Services Europe BV - - - -Jan-09-2014 HireVue, Inc. Reschedge - - - -Jan-08-2014 EVIDERA Archimedes, Inc. - - - -Jan-08-2014 Neogrid S.A. Bis Company - - - -Jan-08-2014 Palred Technologies Limited (BSE:532521) Deals15.com - - - -Jan-08-2014 Citrix Systems, Inc. (NasdaqGS:CTXS) Framehawk, Inc. - - - -Jan-08-2014 CDI USA, Inc. Geo Creative LLC, Selected Business Assets and Undertakings - $0.3 - -Jan-08-2014 UMeWorld Limited (OTCPK:UMEW.F) Guangzhou Dingyou Information Technology Co, Ltd - - - -Jan-08-2014 Alternative Networks Plc (AIM:AN.) Intercept IT Limited $16.1 $21.3 1.3x 16.2xJan-08-2014 BVA S.A.S. LH2 SAS - - - -Jan-08-2014 Facebook, Inc. (NasdaqGS:FB) Little Eye Software Labs Pvt Ltd. - $14.5 - -Jan-08-2014 WMAC Holdings Corporation (OTCPK:WMAC) NextStage Inc. (PSE:NXT) - - - -Jan-08-2014 LDeX Group LTD Ping Software - - - -Jan-08-2014 IQNavigator, Inc. ProcureStaff Technologies, Ltd. - - - -Jan-08-2014 Access UK Limited Production Modelling Limited - - - -Jan-08-2014 Nomads Shake Interactive Limited - - - -Jan-08-2014 EMC Corporation (NYSE:EMC) Trinity Technologies Corporation - - - -Jan-08-2014 Equiinet Limited Ubiquita, Inc. - - - -Jan-08-2014 Knowlarity Communications Pvt. Ltd. Unicom TechLabs Private Limited - - - -Jan-07-2014 CCC Information Services Inc. Auto Injury Solutions, Inc. - - - -Jan-07-2014 Oracle Corporation (NYSE:ORCL) Corente, Inc. - - - -Jan-07-2014 Wincor Nixdorf Aktiengesellschaft (XTRA:WIN) DATEC RETAIL SYSTEMS, a.s. - - - -Jan-07-2014 Cozy Services Ltd. Landlordology LLC - - - -Jan-07-2014 Mitratech Holdings, Inc. LT Online Corporation - - - -Jan-07-2014 Flash Networks, Inc. Mobixell Networks Inc. - - - -Jan-07-2014 Private Investor(s) On the Fly - Voice Translator - - - -Jan-07-2014 INFOR, INC. PeopleAnswers, LLC - $200.0 - -Jan-07-2014 International Council Of Shopping Centers, Inc. Pinnacle Publishing Group, Inc., Certain Assets - - - -Jan-07-2014 Hokutou Holdings International, Inc. (OTCPK:HKTU) Platinum Pari-Mutuel Group, Inc. - - - -Jan-07-2014 Group M Worldwide, Inc. plista GmbH - - - -Jan-07-2014 Decision Resources Group Inc. Relay Technology Management, Inc. - - - -Jan-07-2014 Magus Research Ltd. WelchmanPierpoint LLC - - - -Jan-06-2014 Cyrusone Inc. (NasdaqGS:CONE) 22 Acres in MetCenter Business Park in Austin - - - -Jan-06-2014 LightInTheBox Holding Co., Ltd. (NYSE:LITB) Ador, Inc. - - - -Jan-06-2014 Makheia Group Société Anonyme (ENXTPA:ALMAK) Agence Big Youth - - - -Jan-06-2014 Critical Mass (UK) Limited Agency Republic Limited - - - -Jan-06-2014 AT&T, Inc. (NYSE:T) Aloha Partners II, L.P., 49 Advanced Wireless Services Spectrum Licenses - - - -Jan-06-2014 Solera Holdings Inc. (NYSE:SLH) AutoSoft Srl - - - -Jan-06-2014 Zola Books Inc. Bookish LLC - - - -Jan-06-2014 Advantage Sales & Marketing LLC BoxTop Media LLC - - - -Jan-06-2014 Autodesk, Inc. (NasdaqGS:ADSK) Circuits.io - - - -Jan-06-2014 Cober Evolving Solutions CuteGecko Inc. - - - -Jan-06-2014 AlfaPeople A/S Enterprise Resources Technology Group, Inc. - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJan-06-2014 TBWA South Africa (Pty) Ltd. HDI Youth Marketeers - - - -Jan-06-2014 ABRY Partners, LLC Inmar, Inc. - - - -Jan-06-2014 AG für die Neue Zürcher Zeitung itonex AG - - - -Jan-06-2014 Verint Systems Inc. (NasdaqGS:VRNT) KANA Software, Inc. - $514.0 - -Jan-06-2014 Palo Alto Networks, Inc. (NYSE:PANW) Morta Security, Inc. - - - -Jan-06-2014 Press Ganey Associates, Inc. On The Spot Systems, Inc. - - - -Jan-06-2014 Microsoft Dynamics Parature, Inc. - $100.0 - -Jan-06-2014 PetroSkills LLC Resource Development Company, LLC - - - -Jan-06-2014 YP Intellectual Property, LLC Sense Networks, Inc. - - - -Jan-06-2014 True[X] Media, Inc. The C4 Group, LLC - - - -Jan-06-2014 Brightcove, Inc. (NasdaqGS:BCOV) Unicorn Media, Inc. - $51.3 - -Jan-06-2014 Pinterest, Inc. VisualGraph Inc. - - - -Jan-05-2014 Apple Inc. (NasdaqGS:AAPL) SnappyLabs LLC - - - -Jan-04-2014 Google Inc. (NasdaqGS:GOOG) Bitspin GmbH - - - -Jan-03-2014 Connections Education LLC Advanced Academics, Inc. - - - -Jan-03-2014 The Knight Canney Group Canney Communications, LLC - - - -Jan-03-2014 Wolters Kluwer Financial Services, Inc. Financial Tools, Inc. - - - -Jan-03-2014 PhotoSpotLand Inc. Museumland - - - -Jan-03-2014 Dohmen Investment Group, LLC Red Arrow Labs LLC and Clinical Path Consulting and ChemWare, Inc. - - - -Jan 02 2014 Monsoon Commerce Inc Access Data Systems Inc -

Acquirer

Jan-02-2014 Monsoon Commerce, Inc. Access Data Systems Inc. - - -Jan-02-2014 Asseco Central Europe, a.s. (WSE:ACS) Asseco Solutions AG - $18.8 - -Jan-02-2014 WayIn, Inc. Comenta TV LLC - - - -Jan-02-2014 Firespring, Inc. Cost Effective Technologies, Inc. - - - -Jan-02-2014 Strategic Link Partners, LLC DigaForce LLC - - - -Jan-02-2014 Opera Mediaworks Inc. Hunt Mobile Ads - - - -Jan-02-2014 Bright Mountain, LLC Leo Affairs And Fire Affairs And Teacher Affairs - $0.1 - -Jan-02-2014 True Heading AB (OM:TRUE B) MERD Systems AB - $0.5 - -Jan-02-2014 Nexaweb Inc. Nexaweb Technologies, Inc., RIA Business Division - $2.5 - -Jan-02-2014 Nexaweb Inc. Nihon Nexaweb KK - $1.3 - -Jan-02-2014 Otelco Inc. (NasdaqGM:OTEL) Reliable Networks of Maine, LLC - $0.5 - -Jan-02-2014 Shenzhen Coship Electronics Co., Ltd. (SZSE:002052) Shenzhen Tranzda Communications Co., Ltd. - $4.9 - -Jan-02-2014 Motorola Solutions, Inc. (NYSE:MSI) Twisted Pair Solutions, Inc. - - - -Jan-02-2014 InfoMedia Services Ltd. Vringo, Inc., Mobile Technology Business - - - -Jan-01-2014 Private Investor(s) Innoveo Solutions AG - - - -Jan-01-2014 RDI Marketing Services, Inc. Oncall Interactive LLC - - - -Jan-01-2014 Amerigo Energy, Inc. (OTCPK:AGOE) Quest Solution Inc. $34.0 $16.0 0.5x -Jan-01-2014 Market Edge LLC RTB Social LLC - - - -Jan-01-2014 Fahlgren Mortine Inc. Turner Public Relations Inc. - - - -Jan-01-2014 Better Business Bureau of Dayton and Miami Valley Women In Business Networking LLC - - - -


SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Software Index $2,173.6 $2,524.1 $781.3 70.3% 19.7% 7.6% 3.1x 14.1x 2.9x 11.8x 0.1% Billing & Service Management $951.3 $1,008.2 $349.0 58.2% 19.2% 4.4% 2.8x 9.1x 2.2x 7.8x 0.1% Business Intelligence $1,572.7 $1,306.5 $472.8 72.8% 13.2% 9.7% 3.1x 20.1x 2.9x 15.2x -2.6% Development Platforms $2,641.5 $2,672.2 $1,134.8 76.6% 19.7% -0.8% 2.7x 10.9x 2.9x 9.4x -0.2% Engineering & PLM $4,226.0 $4,222.7 $1,086.6 84.0% 20.1% 4.0% 3.3x 14.5x 2.8x 12.3x -1.4% Enterprise Resource Planning $7,371.1 $7,963.0 $2,228.0 70.3% 29.0% 2.7% 3.6x 12.3x 2.9x 10.0x 1.5% Financial & Accounting $1,897.9 $2,556.4 $737.8 54.7% 25.9% 9.4% 3.6x 14.1x 3.6x 11.1x -3.7% Gaming $2,600.0 $2,524.1 $2,282.1 64.2% 18.3% 6.1% 1.7x 10.1x 1.5x 7.8x 3.2% Healthcare $1,014.0 $908.9 $557.2 54.6% 15.3% 7.6% 2.4x 19.7x 2.3x 11.5x 3.1% IT Conglomerates $165,954.4 $153,624.4 $83,433.0 70.3% 32.7% 0.9% 3.1x 9.1x 2.9x 8.0x -2.2% Mobile Solutions/Content $875.8 $740.5 $245.9 56.4% 4.4% 27.5% 3.2x 27.1x 2.5x 18.6x 3.6% Networking & Network Performance Managemen $2,173.6 $1,967.2 $781.3 71.3% 13.8% 7.0% 3.0x 16.4x 2.8x 12.5x 5.9% Security $1,462.9 $1,366.4 $225.9 76.6% 3.2% 13.3% 3.1x 12.6x 4.2x 21.8x 1.6% Storage, Data Mgmt & Integration $14,368.9 $10,152.5 $4,582.0 71.5% 23.3% 4.4% 2.9x 9.3x 2.8x 7.9x -0.9% Supply Chain Management & Logistics $1,746.4 $1,668.4 $246.9 61.9% 26.8% 14.1% 6.0x 22.2x 5.5x 18.8x 9.5% Systems Management $10,393.7 $9,543.1 $2,200.3 85.9% 26.2% 13.0% 4.9x 16.5x 4.3x 13.0x 1.0% Vertical - Finance $3,758.6 $4,278.4 $874.2 44.0% 27.0% 8.2% 4.5x 13.2x 5.0x 11.8x -4.1% Vertical - Other $1,531.6 $1,689.2 $405.9 52.4% 12.3% 24.6% 3.5x 29.8x 3.1x 16.1x -3.3%

Category Name

TTM Revenue Growth 7.3%TTM EBITDA Growth -11.3%TTM Earnings Growth -23.7%Gross Profit Margin 68.3%EBITDA Margin 19.1%Net Income Margin -5.2%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 17.5%

Current Ratio 2.6Quick Ratio 2.5Cash as Percent of Market Cap 8.8%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 30Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 8.9%Cash from Operations Growth (YoY) 14.6%Cash from Investing Growth (YoY) -20.3%Cash from Financing Growth (YoY) 96.7%Levered FCF Growth (YoY) 11.2%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved February 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%SEG SW Index Software Stock Market Return: Jan 2014

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmdocs Limited DOX $6,920.3 $5,708.7 $3,383.5 35.3% 18.5% 3.6% 1.7x 9.1x 1.6x 8.0x 6.1%CSG Systems International, Inc. CSGS $951.3 $1,025.3 $747.5 49.5% 19.2% -1.2% 1.4x 7.2x 1.3x 6.4x 2.7%Evolving Systems, Inc. EVOL $112.2 $98.5 $25.4 71.7% 26.5% 4.4% 3.9x 14.7x 3.4x 11.3x 0.1%MIND C.T.I. Ltd. MNDO $39.8 $22.0 $18.3 59.4% 15.3% -10.6% 1.2x 7.8x n/a n/a 3.9%NeuStar, Inc NSR $2,122.2 $2,519.4 $902.0 76.4% 43.0% 8.5% 2.8x 6.5x 2.6x 5.5x -31.7%Redknee Solutions TSX:RKN $516.5 $474.2 $142.0 55.6% 1.8% 149.8% 3.3x 183.2x 2.0x 17.3x -9.4%Synchronoss Technologies, Inc. SNCR $1,044.0 $1,008.2 $349.0 58.2% 22.5% 27.5% 2.9x 12.8x 2.5x 7.5x -10.2%

Median: $951.3 $1,008.2 $349.0 58.2% 19.2% 4.4% 2.8x 9.1x 2.2x 7.8x 0.1%

TTM Revenue Growth 0.0%TTM EBITDA Growth 3.7%TTM Earnings Growth -13.8%Gross Profit Margin 0.0%EBITDA Margin 0.0%Net Income Margin 12.3%SG&A Expenses as a % of Total Revenue 20.4%R&D Expenses as a % of Total Revenue 14.7%







-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%Billing and Service Management Software Stock Market Return: Jan 2014

Billing & Service Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $362.0 $291.0 $134.5 85.6% 10.2% -3.1% 2.2x 21.2x 2.0x 9.4x -0.3%MicroStrategy Incorporated MSTR $1,420.4 $1,076.5 $575.9 75.9% 8.0% -3.1% 1.9x 23.5x 1.7x 15.5x 1.8%Pegasystems Inc. PEGA $1,724.9 $1,536.5 $499.4 69.6% 16.2% 15.3% 3.1x 19.0x 2.8x 24.2x -7.2%Progress Software Corporation PRGS $1,246.7 $1,015.2 $334.0 89.9% 28.0% 5.2% 3.0x 10.9x 3.0x 8.2x -5.4%PROS Holdings PRO $1,069.0 $978.2 $138.7 69.7% 6.7% 24.6% 7.1x 106.1x 5.9x 35.9x -3.3%Qlik Technologies QLIK $2,398.1 $2,163.0 $446.1 87.1% 1.0% 24.2% 4.8x 503.4x 4.2x 50.5x 7.5%Verisk VRSK $10,743.3 $11,869.2 $1,679.0 59.2% 44.6% 14.2% 7.1x 15.9x 6.6x 14.8x -1.9%Teradata NYSE:TDC $6,719.0 $6,112.0 $2,692.0 56.0% 26.5% 1.0% 2.3x 8.6x 2.2x 7.6x -8.1%

Median: $1,572.7 $1,306.5 $472.8 72.8% 13.2% 9.7% 3.1x 20.1x 2.9x 15.2x -2.6%

TTM Revenue Growth 9.7%TTM EBITDA Growth -9.5%TTM Earnings Growth 2.2%Gross Profit Margin 72.8%EBITDA Margin 13.2%Net Income Margin 11.3%SG&A Expenses as a % of Total Revenue 45.7%R&D Expenses as a % of Total Revenue 17.0%


Levered FCF Margin 14.6%Cash from Operations Growth (YoY) 4.5%Cash from Investing Growth (YoY) 24.6%Cash from Financing Growth (YoY) -27.2%Levered FCF Growth (YoY) 64.1%





-6%

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-3%

-2%

-1%

0%

1%

2%

3%Business Intelligence Software Stock Market Return: Jan 2014

Business Intelligence S&P NASDAQ SEG SW Index

SEG Software Index Category: Development Platforms


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $362.0 $291.0 $134.5 85.6% 10.2% -3.1% 2.2x 21.2x 2.0x 9.4x -0.3%Adobe Systems Incorporated ADBE $29,394.0 $27,734.2 $4,055.2 85.5% 19.0% -7.9% 6.8x 36.0x 6.8x 26.2x -0.2%BSQUARE Corporation BSQR $39.8 $18.5 $92.1 16.9% -1.8% -6.9% 0.2x n/a n/a n/a -2.2%Compuware Corporation CPWR $2,196.2 $2,108.1 $946.1 62.2% 13.3% -2.5% 2.2x 16.7x 2.7x 12.5x -9.1%Magic Software Enterprises Ltd. MGIC $295.2 $259.3 $145.0 40.7% 18.3% 14.7% 1.8x 9.8x 1.6x n/a 12.5%Microsoft Corporation MSFT $314,099.4 $254,802.4 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.0x 2.9x 8.0x 1.8%Oracle Corporation ORCL $165,954.4 $153,624.4 $37,552.0 81.6% 43.4% 0.9% 4.1x 9.4x 3.9x 7.9x -2.2%Progress Software Corporation PRGS $1,246.7 $1,015.2 $334.0 89.9% 28.0% 5.2% 3.0x 10.9x 3.0x 8.2x -5.4%Red Hat, Inc. RHT $10,708.9 $9,742.4 $1,482.1 84.8% 20.4% 16.0% 6.6x 32.2x 5.8x 20.3x 1.2%Software AG XTRA:SOW $3,086.8 $3,236.3 $1,323.5 68.2% 25.6% -8.1% 2.4x 9.6x n/a n/a 9.4%

Median: $2,641.5 $2,672.2 $1,134.8 76.6% 19.7% -0.8% 2.7x 10.9x 2.9x 9.4x -0.2%

TTM Revenue Growth -0.8%TTM EBITDA Growth -12.6%TTM Earnings Growth -8.0%Gross Profit Margin 76.6%EBITDA Margin 19.7%Net Income Margin 11.4%SG&A Expenses as a % of Total Revenue 39.5%R&D Expenses as a % of Total Revenue 13.2%


Levered FCF Margin 19.2%Cash from Operations Growth (YoY) -7.9%Cash from Investing Growth (YoY) 26.2%Cash from Financing Growth (YoY) -18.9%Levered FCF Growth (YoY) -1.9%





-5%

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-1%

0%

1%

2%

3%Development Platforms Software Stock Market Return: Jan 2014

Development Platforms S&P NASDAQ SEG SW Index

SEG Software Index Category: Engineering & PLM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDANSYS, Inc. ANSS $7,276.6 $6,568.8 $846.0 87.5% 46.6% 9.1% 7.8x 16.7x 7.1x 14.3x -8.7%Autodesk, Inc. ADSK $11,562.0 $10,247.7 $2,294.2 88.5% 20.1% -0.2% 4.5x 22.2x 4.6x 19.4x 4.1%Cadence Design Systems, Inc CDNS $4,062.9 $3,754.7 $1,460.1 86.3% 23.2% 10.1% 2.6x 11.1x 2.4x 7.6x 0.8%Cimatron Ltd. CIMT $98.8 $86.0 $43.9 87.1% 15.1% 4.0% 2.0x 13.0x 1.8x n/a 4.6%Dassault Systèmes DSY $14,752.6 $12,848.4 $2,845.3 87.3% 31.2% 1.9% 4.5x 14.5x n/a n/a -3.6%GSE Systems Inc. GVP $31.7 $14.1 $48.0 27.7% -5.2% -12.1% 0.3x n/a 0.3x n/a 9.3%Mentor Graphics Corp MENT $2,383.9 $2,399.9 $1,086.6 84.0% 18.1% 0.8% 2.2x 12.2x 1.9x 7.5x -12.2%Parametric Technology Corporation PTC $4,226.0 $4,222.7 $1,298.7 71.6% 22.3% 3.3% 3.3x 14.6x 3.1x 11.3x 2.8%PDF Solutions Inc PDFS $715.4 $630.2 $101.5 61.1% 32.5% 13.3% 6.2x 19.1x 5.6x 13.3x -5.4%Stratasys, Inc. SSYS $5,875.9 $5,261.5 $400.5 45.3% 17.9% 113.4% 13.1x 73.6x 8.4x 26.8x -10.0%Synopsys Inc SNPS $6,152.1 $5,234.7 $1,962.2 82.2% 18.4% 11.7% 2.7x 14.5x 2.5x 8.3x -1.4%

Median: $4,226.0 $4,222.7 $1,086.6 84.0% 20.1% 4.0% 3.3x 14.5x 2.8x 12.3x -1.4%

TTM Revenue Growth 4.0%TTM EBITDA Growth 5.9%TTM Earnings Growth 0.8%Gross Profit Margin 84.0%EBITDA Margin 20.1%Net Income Margin 11.2%SG&A Expenses as a % of Total Revenue 36.2%R&D Expenses as a % of Total Revenue 17.8%







-5%

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-2%

-1%

0%

1%

2%

3%Engineering & PLM Software Stock Market Return: Jan 2014

Engineering & PLM S&P NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $277.3 $215.5 $98.5 54.7% 15.4% -6.6% 2.2x 14.2x 2.0x 9.3x 1.5%Oracle Corporation ORCL $165,954.4 $153,624.4 $37,552.0 81.6% 43.4% 0.9% 4.1x 9.4x 3.9x 7.9x -2.2%QAD Inc. QADA $279.0 $228.8 $258.6 56.0% 4.2% 2.8% 0.9x 21.0x 0.8x 11.5x 7.7%Sage Group plc LSE:SGE $7,371.1 $7,963.0 $2,228.0 94.2% 29.0% 2.7% 3.6x 12.3x n/a n/a 3.7%SAP DB:SAP $91,285.3 $93,331.6 $23,159.1 70.3% 32.7% 3.7% 4.0x 12.3x 3.9x 10.7x -9.3%

Median: $7,371.1 $7,963.0 $2,228.0 70.3% 29.0% 2.7% 3.6x 12.3x 2.9x 10.0x 1.5%



Levered FCF Margin 16.7%Cash from Operations Growth (YoY) 4.1%Cash from Investing Growth (YoY) 30.2%Cash from Financing Growth (YoY) 23.8%Levered FCF Growth (YoY) -16.6%





-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%Enterprise Resource Planning Software Stock Market Return: Jan 2014

Enterprise Resource Planning S&P NASDAQ SEG SW Index

SEG Software Index Category: Financial & Accounting


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDACI Worldwide, Inc. ACIW $2,336.3 $2,934.1 $805.9 62.3% 24.3% 39.5% 3.6x 15.0x 2.8x 9.3x -3.8%Bottomline Technologies EPAY $1,280.9 $1,218.9 $270.1 54.7% 9.7% 11.6% 4.5x 46.3x 3.8x 17.6x -1.1%DST Systems, Inc. DST $3,803.8 $4,108.0 $2,658.6 17.2% 17.1% 3.2% 1.5x 9.0x 1.9x 8.4x 1.0%Evertec EVTC $1,889.1 $2,556.4 $354.9 55.4% 39.2% 5.5% 7.2x 18.4x 6.8x 13.6x -4.3%Fair Isaac Corporation FICO $1,897.9 $2,279.9 $737.8 68.7% 25.9% 6.0% 3.1x 11.9x 3.0x 10.9x -11.7%Fiserv FISV $14,457.4 $18,067.4 $4,814.0 42.3% 30.4% 7.4% 3.8x 12.3x 3.6x 11.0x -3.7%Intuit Inc INTU $20,869.1 $20,252.1 $4,231.0 86.7% 34.0% 11.5% 4.8x 14.1x 4.4x 11.2x -3.3%Model N, Inc MODN $235.0 $131.9 $101.1 54.5% 2.5% 14.2% 1.3x 52.5x 1.7x n/a -50.5%NetSol Technologies Inc. KASE:NETS $37.8 $42.0 $29.9 54.6% 46.4% 22.6% 1.4x 3.0x n/a n/a 0.9%Sage Group plc LSE:SGE $7,371.1 $7,963.0 $2,228.0 94.2% 29.0% 2.7% 3.6x 12.3x n/a n/a 3.7%Qiwi plc QIWI $1,880.2 $1,648.0 $339.0 45.5% 22.4% n/a 4.9x 21.7x 8.3x 18.3x -35.2%

Median: $1,897.9 $2,556.4 $737.8 54.7% 25.9% 9.4% 3.6x 14.1x 3.6x 11.1x -3.7%








-6%

-5%

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-2%

-1%

0%

1%

2%

3%Financial & Accounting Software Stock Market Return: Jan 2014

Financial & Accounting S&P NASDAQ SEG SW Index

SEG Software Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActivision Blizzard ATVI $11,912.8 $9,584.8 $4,583.0 66.6% 32.3% -5.6% 2.1x 6.5x 2.1x 6.7x -5.2%Electronic Arts Inc. EA $8,160.8 $6,665.8 $3,661.0 61.8% 6.1% -7.5% 1.8x 29.9x 1.6x 9.0x 15.6%GameLoft SA ENXTPA:GF $752.3 $670.5 $289.2 83.2% 15.2% 21.8% 2.3x 15.3x n/a n/a -15.2%Konami Corporation TSE: 9766 $3,337.6 $3,270.5 $2,109.3 30.8% 11.3% -4.1% 1.6x 13.7x 1.4x 9.3x 4.0%Take-Two Interactive TTWO $1,862.4 $1,644.0 $2,454.8 42.2% 21.4% 130.9% 0.7x 3.1x 1.0x 5.8x 9.4%Ubisoft Entertainment ENXTPA:UB $1,584.9 $1,777.6 $1,719.3 72.7% 37.7% 16.3% 1.0x 2.7x n/a n/a 2.4%

Median: $2,600.0 $2,524.1 $2,282.1 64.2% 18.3% 6.1% 1.7x 10.1x 1.5x 7.8x 3.2%

TTM Revenue Growth 6.1%TTM EBITDA Growth -0.7%TTM Earnings Growth -31.9%Gross Profit Margin 64.2%EBITDA Margin 18.3%Net Income Margin 3.6%SG&A Expenses as a % of Total Revenue 24.5%R&D Expenses as a % of Total Revenue 30.7%







-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%Gaming Software Stock Market Return: Jan 2014

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAccretive Health AH $895.8 $699.5 $973.6 20.7% 2.9% 32.2% 0.7x 24.4x 0.7x 11.8x 0.8%Allscripts Healthcare Solutions Inc. MDRX $2,923.5 $3,407.5 $1,373.0 39.9% 2.1% -7.4% 2.5x 119.4x 2.4x 16.1x 7.6%Cerner Corporation CERN $19,528.2 $18,789.3 $2,840.6 84.3% 26.2% 8.8% 6.6x 25.2x 5.8x 17.0x 3.3%Computer Programs and Sys, Inc. CPSI $745.6 $723.2 $200.9 46.7% 26.7% 9.6% 3.6x 13.5x 3.4x 12.1x 10.3%MedAssets MDAS $1,363.6 $2,166.1 $673.7 78.0% 30.8% 6.4% 3.2x 10.4x 3.1x 9.6x 12.6%Merge Healthcare MRGE $202.3 $429.1 $242.7 57.8% 6.7% -2.3% 1.8x 26.2x 1.8x 9.6x -15.0%Omnicell, Inc. OMCL $919.6 $803.4 $380.6 53.4% 14.1% 21.2% 2.1x 15.0x 2.0x 11.1x 3.0%Quality Systems, Inc. QSII $1,108.5 $1,014.5 $440.8 55.8% 16.5% -3.7% 2.3x 13.9x 2.2x 9.8x -11.2%

Median: $1,014.0 $908.9 $557.2 54.6% 15.3% 7.6% 2.4x 19.7x 2.3x 11.5x 3.1%








-5%

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-2%

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0%

1%

2%

3%Healthcare Software Stock Market Return: Jan 2014

Healthcare S&P NASDAQ SEG SW Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDHewlett Packard HPQ $55,354.5 $66,272.5 $112,298.0 23.3% 11.6% -6.7% 0.6x 5.1x 0.6x 4.9x 4.8%IBM IBM $191,848.7 $220,637.7 $99,751.0 48.6% 24.4% -4.6% 2.2x 9.1x 2.2x 8.0x -4.8%Microsoft Corporation MSFT $314,099.4 $254,802.4 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.0x 2.9x 8.0x 1.8%Oracle Corporation ORCL $165,954.4 $153,624.4 $37,552.0 81.6% 43.4% 0.9% 4.1x 9.4x 3.9x 7.9x -2.2%SAP AG DB:SAP $91,285.3 $93,331.6 $23,159.1 70.3% 32.7% 3.7% 4.0x 12.3x 3.9x 10.7x -9.3%

Median: $165,954.4 $153,624.4 $83,433.0 70.3% 32.7% 0.9% 3.1x 9.1x 2.9x 8.0x -2.2%



Levered FCF Margin 18.3%Cash from Operations Growth (YoY) 0.3%Cash from Investing Growth (YoY) 18.9%Cash from Financing Growth (YoY) -18.9%Levered FCF Growth (YoY) -28.9%





-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%IT Conglomerates Software Stock Market Return: Jan 2014

IT Conglomerates S&P NASDAQ SEG SW Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBango PLC BGO $125.7 $114.7 $14.7 26.7% -32.4% n/a 7.8x n/a n/a n/a 21.5%Glu Mobile, Inc. GLUU $307.9 $280.3 $105.6 68.9% -12.2% -2.4% 2.7x n/a 2.4x n/a 1.3%Gree TSE:3632 $2,299.5 $2,016.5 $1,524.8 81.9% 33.5% -9.7% 1.3x 3.9x n/a n/a 0.1%Millennial Media Inc MM $843.3 $722.1 $220.5 41.2% -0.9% 42.9% 3.3x n/a 1.8x 38.8x 7.9%Myriad Group AG MYRN $147.3 $164.9 $52.6 22.1% -16.2% 3.0% 3.1x n/a n/a n/a 6.1%NQ Mobile Inc. NQ $908.2 $758.8 $158.9 64.8% 3.0% 113.0% 4.8x 159.6x 2.7x 8.5x 6.0%Opera OB:OPERA $1,798.2 $1,731.0 $271.3 44.7% 27.9% 36.5% 6.4x 22.9x n/a n/a -0.5%Qihoo 360 Technology Co. Ltd QIHU $12,409.7 $12,017.6 $552.4 87.6% 26.4% 91.5% 21.8x 82.4x 12.8x 26.2x 23.5%Pandora Media P $7,006.8 $6,558.9 $588.3 37.0% -7.1% 53.5% 11.1x n/a n/a n/a 34.8%Synchronoss Technologies, Inc. SNCR $1,044.0 $1,008.2 $349.0 58.2% 22.5% 27.5% 2.9x 12.8x 2.5x 7.5x -10.2%Tangoe TNGO $697.2 $658.5 $182.9 54.6% 9.0% 30.8% 3.6x 40.2x 3.1x 18.6x 0.9%TeleCommunication Systems TSYS $133.3 $218.9 $362.3 38.4% 5.8% -25.7% 0.6x 10.4x 0.6x 6.1x -1.7%TeleNav TNAV $251.3 $75.6 $183.5 61.1% 1.5% -6.2% 0.4x 27.1x 0.5x n/a 0.8%Zynga, Inc ZNGA $3,662.2 $2,536.7 $873.3 71.6% 8.4% -31.8% 2.9x 34.5x 3.2x 27.6x 11.4%

Median: $875.8 $740.5 $245.9 56.4% 4.4% 27.5% 3.2x 27.1x 2.5x 18.6x 3.6%

TTM Revenue Growth 27.5%TTM EBITDA Growth 7.0%TTM Earnings Growth -11.6%Gross Profit Margin 56.4%EBITDA Margin 4.4%Net Income Margin -0.6%SG&A Expenses as a % of Total Revenue 36.0%R&D Expenses as a % of Total Revenue 18.4%


Levered FCF Margin 8.4%Cash from Operations Growth (YoY) 39.7%Cash from Investing Growth (YoY) 13.3%Cash from Financing Growth (YoY) 81.6%Levered FCF Growth (YoY) 109.4%





-6%

-4%

-2%

0%

2%

4%

6%

8%Mobile Solutions/Content Software Stock Market Return: Jan 2014

Mobile Solutions/Content S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAllot Communications Ltd. ALLT $521.7 $406.6 $96.5 72.2% -0.8% -7.8% 4.2x n/a 3.7x 26.6x 5.8%Aruba Networks, Inc. ARUN $2,151.1 $1,826.2 $616.5 70.3% 3.0% 13.8% 3.0x 98.7x 2.6x 12.5x 13.9%Barracuda Networks, Inc. CUDA $1,745.1 $1,628.5 $225.9 76.6% -0.1% n/a 7.2x n/a 6.5x 31.6x -7.7%Brocade Communications Systems, BRCD $4,146.5 $3,758.8 $2,222.9 63.4% 23.3% -0.7% 1.7x 7.3x 1.7x 6.3x 5.9%Cisco Systems, Inc. CSCO $117,144.4 $85,181.4 $48,816.0 61.1% 28.8% 4.6% 1.7x 6.1x 1.8x 5.3x -0.4%Cyan, Inc. CYNI $176.0 $104.0 $125.5 41.2% -20.7% 58.4% 0.8x n/a 1.0x n/a -27.4%Compuware Corporation CPWR $2,196.2 $2,108.1 $946.1 62.2% 13.3% -2.5% 2.2x 16.7x 2.7x 12.5x -9.5%F5 Networks, Inc. FFIV $8,137.8 $7,559.6 $1,522.3 82.6% 30.8% 7.2% 5.0x 16.1x 4.3x 11.1x 20.4%Gigamon, LLC GIMO $946.9 $841.5 $140.3 78.0% -19.5% 45.1% 6.0x n/a 5.1x 40.3x 9.6%Juniper Networks, Inc. JNPR $13,438.2 $11,591.6 $4,669.1 63.0% 17.0% 7.0% 2.5x 14.6x 2.4x 9.4x 18.4%Radware Ltd. RDWR $758.4 $623.5 $193.0 81.0% 14.2% 2.0% 3.2x 22.7x 2.9x 15.2x -5.1%Riverbed Technology, Inc. RVBD $3,193.0 $3,258.7 $1,041.0 73.1% 14.9% 24.4% 3.1x 21.1x 2.9x 9.5x 9.4%

Median: $2,173.6 $1,967.2 $781.3 71.3% 13.8% 7.0% 3.0x 16.4x 2.8x 12.5x 5.9%

TTM Revenue Growth 7.0%TTM EBITDA Growth -24.5%TTM Earnings Growth -77.2%Gross Profit Margin 71.3%EBITDA Margin 13.8%Net Income Margin -1.2%SG&A Expenses as a % of Total Revenue 44.8%R&D Expenses as a % of Total Revenue 20.2%


Levered FCF Margin 16.8%Cash from Operations Growth (YoY) -3.4%Cash from Investing Growth (YoY) 10.5%Cash from Financing Growth (YoY) 26.7%Levered FCF Growth (YoY) 13.7%





February 2014 Monthly Flash Report

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%Networking/Network Performance Mgmt Software Stock Market Return: Jan 2014

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAVG Technologies N.V. AVG $903.2 $887.4 $400.4 83.9% 33.0% 19.5% 2.2x 6.7x 2.3x 6.6x -2.1%Barracuda Networks, Inc. CUDA $1,745.1 $1,628.5 $225.9 76.6% -0.1% n/a 7.2x n/a 6.5x 31.6x -7.7%Check Point Software Tech Ltd. CHKP $12,582.2 $11,415.4 $1,394.1 88.4% 55.4% 3.8% 8.2x 14.8x 7.7x 13.4x 1.6%Commtouch Software Ltd. CTCH $96.5 $95.6 $30.8 78.5% -2.1% 33.4% 3.1x n/a 2.7x n/a 22.8%Fortinet Inc. FTNT $3,465.4 $2,974.0 $615.3 70.6% 14.3% 15.3% 4.8x 33.9x 4.2x 21.8x 11.5%Guidance Software, Inc. GUID $310.9 $294.3 $110.5 66.1% -12.3% -14.6% 2.7x n/a 2.6x 92.2x 7.8%Imperva IMPV $1,373.0 $1,264.3 $137.8 78.4% -16.3% 32.2% 9.2x n/a 7.8x 212.9x 13.2%Palo Alto Networks, Inc PANW $4,309.6 $3,872.9 $438.4 72.8% -1.5% 54.4% 8.8x n/a 6.5x 52.2x 6.8%Proofpoint, Inc. PFPT $1,462.9 $1,366.4 $137.9 69.8% -14.6% 29.8% 9.9x n/a 7.8x n/a 24.9%Sourcefire, Inc. FIRE $19.8 $19.8 $17.1 37.1% 3.2% 5.6% 1.2x 35.9x n/a n/a -12.4%Symantec Corporation SYMC $14,902.0 $13,106.0 $6,799.0 83.6% 28.8% -0.6% 1.9x 6.7x 2.0x 6.2x -8.7%Trend Micro TSE:4704 $4,189.3 $2,961.3 $1,061.8 81.5% 33.7% 11.3% 2.8x 8.3x n/a n/a -11.0%VASCO Data Security International VDSI $288.8 $196.7 $150.6 64.0% 10.3% -8.0% 1.3x 12.6x 1.3x 10.1x -1.6%

Median: $1,462.9 $1,366.4 $225.9 76.6% 3.2% 13.3% 3.1x 12.6x 4.2x 21.8x 1.6%



Levered FCF Margin 13.5%Cash from Operations Growth (YoY) -7.0%Cash from Investing Growth (YoY) 11.4%Cash from Financing Growth (YoY) -22.0%Levered FCF Growth (YoY) 2.8%





-6%

-4%

-2%

0%

2%

4%

6%

8%Security Software Stock Market Return: Jan 2014

Security S&P NASDAQ SEG SW Index

SEG Software Index Category: Storage, Data Management & Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBrocade Communications Systems, BRCD $4,146.5 $3,758.8 $2,222.9 63.4% 23.3% -0.7% 1.7x n/a 1.7x 6.3x 5.9%CA, Inc. CA $14,368.9 $13,285.9 $4,582.0 85.8% 34.2% -2.1% 2.9x 8.5x 3.0x 7.6x -3.2%Cisco Systems, Inc. CSCO $117,144.4 $85,181.4 $48,816.0 61.1% 28.8% 4.6% 1.7x 6.1x 1.8x 5.3x -0.4%CommVault Systems, Inc. CVLT $3,280.5 $2,780.0 $567.8 87.3% 18.2% 20.4% 4.9x 26.9x 4.2x 16.5x -6.8%EMC EMC $48,964.8 $46,944.8 $23,222.0 62.3% 26.0% 6.9% 2.0x 7.8x 1.9x 6.4x -2.9%FalconStor Software, Inc. FALC $72.0 $50.0 $66.5 73.5% -11.5% -15.2% 0.8x n/a n/a n/a 13.6%IBM IBM $191,848.7 $220,637.7 $99,751.0 48.6% 24.4% -4.6% 2.2x 9.1x 2.2x 8.0x -4.8%Informatica Corporation INFA $4,379.6 $3,702.2 $948.2 83.2% 17.3% 16.8% 3.9x 22.6x 3.5x 12.8x -0.9%Microsoft Corporation MSFT $314,099.4 $254,802.4 $83,433.0 71.5% 38.1% 14.4% 3.1x 8.0x 2.9x 8.0x 1.8%NetApp, Inc. NTAP $14,430.2 $10,152.5 $6,412.7 60.4% 14.6% 2.5% 1.6x 10.8x 1.5x 6.9x 5.1%Oracle Corporation ORCL $165,954.4 $153,624.4 $37,552.0 81.6% 43.4% 0.9% 4.1x 9.4x 3.9x 7.9x -2.2%Splunk, Inc. SPLK $8,688.4 $8,336.5 $267.9 89.1% -16.3% 51.4% 31.1x n/a 23.0x n/a 7.8%TIBCO Software Inc. TIBX $3,395.3 $3,190.4 $1,070.0 71.3% 18.1% 4.4% 3.0x 16.5x 2.8x 10.3x -8.0%

Median: $14,368.9 $10,152.5 $4,582.0 71.5% 23.3% 4.4% 2.9x 9.3x 2.8x 7.9x -0.9%



Levered FCF Margin 18.3%Cash from Operations Growth (YoY) 2.0%Cash from Investing Growth (YoY) 18.9%Cash from Financing Growth (YoY) 17.3%Levered FCF Growth (YoY) -5.4%






-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%Storage, Data Management & Integration Software Stock Market Return: Jan 2014

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

SEG Software Index Category: Supply Chain Management & Logistics


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $277.3 $215.5 $98.5 54.7% 15.4% -6.6% 2.2x 14.2x 2.0x 9.3x 1.5%Aspen Technology, Inc. AZPN $4,215.5 $3,996.8 $349.0 85.6% 27.7% 27.3% 11.5x 41.4x 10.0x 31.0x 9.7%Manhattan Associates, Inc. MANH $2,590.6 $2,464.7 $414.5 56.3% 25.8% 10.2% 5.9x 23.0x 5.6x 19.8x 14.7%The Descartes Systems Group Inc. TSX:DSG $902.1 $872.1 $144.8 67.5% 28.2% 18.0% 6.0x 21.3x 5.3x 17.7x 9.3%

Median: $1,746.4 $1,668.4 $246.9 61.9% 26.8% 14.1% 6.0x 22.2x 5.5x 18.8x 9.5%








-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%Supply Chain Management & Logistics Software Stock Market Return: Jan 2014

Supply Chain Management & Logistics S&P NASDAQ SEG SW Index

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCA Technologies CA $14,368.9 $13,285.9 $4,582.0 85.8% 34.2% -2.1% 2.9x 8.5x 3.0x 7.6x -3.2%Citrix Systems, Inc. CTXS $10,078.5 $9,343.8 $2,918.4 86.1% 22.2% 12.8% 3.2x 14.4x 2.9x 10.3x -13.5%Netscout Systems, Inc. NTCT $1,459.7 $1,314.7 $382.4 78.9% 23.5% 11.8% 3.4x 14.6x 3.1x 10.7x 22.5%Red Hat, Inc. RHT $10,708.9 $9,742.4 $1,482.1 84.8% 20.4% 16.0% 6.6x 32.2x 5.8x 20.3x 1.2%SolarWinds, Inc. SWI $2,997.8 $2,791.7 $335.4 92.0% 45.3% 24.7% 8.3x 18.4x 7.2x 16.2x 5.5%VMWare, Inc. VMW $38,791.7 $33,066.7 $5,207.0 86.0% 28.9% 13.1% 6.4x 22.0x 5.5x 15.3x 0.7%

Median: $10,393.7 $9,543.1 $2,200.3 85.9% 26.2% 13.0% 4.9x 16.5x 4.3x 13.0x 1.0%



Levered FCF Margin 20.7%Cash from Operations Growth (YoY) 10.7%Cash from Investing Growth (YoY) -35.6%Cash from Financing Growth (YoY) -9.4%Levered FCF Growth (YoY) 7.9%





-6%

-4%

-2%

0%

2%

4%

6%

8%

Systems Management Software Stock Market Return: Jan 2014

Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAdvent Software, Inc. ADVS $1,677.0 $1,985.6 $383.0 71.1% 18.6% 6.7% 5.2x 27.9x 5.0x 14.4x -4.2%Broadridge Financial BR $4,325.2 $4,666.1 $2,507.6 29.7% 19.9% 7.3% 1.9x 9.3x 1.8x 8.7x -7.6%Fidessa LSE:FDSA $1,432.4 $1,349.7 $420.5 21.6% 19.8% -2.1% 3.2x 16.2x n/a n/a 3.4%Jack Henry & Associates, Inc. JKHY $4,773.8 $4,610.0 $1,177.9 42.5% 34.0% 9.8% 3.9x 11.5x 3.7x 10.9x -4.1%MSCI, Inc. MSCI $5,058.2 $5,581.9 $1,035.7 68.3% 43.5% 9.0% 5.4x 12.4x 5.2x 11.8x -1.0%SS&C Corporation SSNC $3,192.1 $3,946.7 $712.7 45.4% 39.7% 29.1% 5.5x 14.0x 5.2x 12.7x -12.8%

Median: $3,758.6 $4,278.4 $874.2 44.0% 27.0% 8.2% 4.5x 13.2x 5.0x 11.8x -4.1%









-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%Vertical - Finance Software Stock Market Return:Jan 2014

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBlackbaud, Inc. BLKB $1,531.6 $1,689.2 $489.0 54.6% 19.2% 15.8% 3.5x 18.0x 3.1x 14.4x -7.7%Constellation TSX:CSU $4,555.6 $4,649.4 $1,131.5 31.9% 8.5% 36.6% 4.1x 48.5x 3.2x 16.1x 1.6%EPIQ Systems, Inc. EPIQ $499.2 $773.7 $405.9 52.6% 17.9% 24.9% 1.9x 10.7x 1.7x 7.2x -8.9%Guidewire Software, Inc. GWRE $3,162.1 $2,633.4 $303.9 52.6% 1.2% 25.1% 8.7x 715.8x 7.5x 70.8x -1.9%Micros Systems MCRS $4,178.5 $3,554.6 $1,304.0 52.4% 19.7% 8.2% 2.7x 13.9x 2.6x 11.5x -2.0%PROS Holdings PRO $1,069.0 $978.2 $138.7 69.7% 6.7% 24.6% 7.1x 106.1x 5.9x 35.9x -3.3%Sapiens International SPNS $318.6 $291.3 $130.4 37.6% 12.3% 21.5% 2.2x 18.2x 2.2x 15.9x -6.2%Silver Spring Networks, Inc. SSNI $803.6 $661.9 $279.8 32.9% -19.8% 34.5% 2.4x n/a 1.9x 48.9x -17.8%Tyler Technologies, Inc. TYL $3,400.2 $3,348.1 $416.6 46.4% 19.4% 14.7% 8.0x 41.4x 7.2x 31.6x 4.1%

Median: $1,531.6 $1,689.2 $405.9 52.4% 12.3% 24.6% 3.5x 29.8x 3.1x 16.1x -3.3%








-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%Vertical - Other Software Stock Market Return: Jan 2014

Vertical - Other S&P NASDAQ SEG SW Index

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $1,474.6 $1,358.1 $176.1 69.6% -0.5% 27.6% 7.4x 64.3x 6.5x 28.6x 0.4% CRM & Marketing $788.4 $688.1 $176.1 73.6% -0.5% 14.5% 3.9x 71.8x 3.0x 28.6x -0.4% ERP & Supply Chain $1,474.6 $1,358.1 $163.1 69.6% 5.3% 35.4% 9.1x 64.3x 7.9x 45.4x -0.7% Vertically Focused $1,746.1 $1,702.1 $276.8 68.6% 13.8% 26.8% 5.1x 31.3x 4.7x 16.3x 0.4% Workforce Management $2,968.4 $2,955.5 $185.1 61.1% -8.0% 40.3% 10.9x 1096.0x 9.4x 45.2x 7.8% SaaS Other $983.3 $1,027.2 $136.0 72.1% -5.0% 27.6% 7.4x 55.1x 6.5x 18.6x 2.3%

Category Name

TTM Revenue Growth 27.6%TTM EBITDA Growth -11.3%TTM Earnings Growth -23.7%Gross Profit Margin 69.6%EBITDA Margin -0.5%Net Income Margin -5.2%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 17.5%







-6%

-4%

-2%

0%

2%

4%

6%SEG SaaS Index Stock Market Return: Jan 2014

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBazaarvoice, Inc BV $549.9 $475.1 $176.1 67.9% -20.0% 32.1% 2.7x n/a 2.5x n/a -6.7%Constant Contact CTCT $828.2 $705.0 $285.4 71.4% 10.7% 13.2% 2.5x 23.1x 2.2x 12.0x -10.7%Cvent NYSE:CVT $1,549.1 $1,391.3 $104.0 73.6% 5.3% n/a 13.4x 251.0x 10.8x 135.4x 2.1%LivePerson LPSN $748.7 $671.3 $173.4 76.1% 5.4% 14.5% 3.9x 71.8x 3.5x 28.6x -5.9%Marketo MKTO $1,606.9 $1,473.8 $84.6 58.5% -42.8% n/a 17.4x n/a 12.6x n/a 77.2%Marin Software MRIN $322.1 $217.4 n/a n/a n/a n/a n/a n/a 2.4x n/a -2.9%Salesforce.com CRM $36,499.6 $38,253.8 $3,760.4 76.6% -0.5% 32.1% 10.2x n/a 7.8x 49.2x 10.3%Vocus VOCS $258.2 $301.2 $186.9 79.6% -1.5% 9.4% 1.6x n/a 1.6x 15.3x 9.3%

Median: $788.4 $688.1 $176.1 73.6% -0.5% 14.5% 3.9x 71.8x 3.0x 28.6x -0.4%



Levered FCF Margin 6.5%Cash from Operations Growth (YoY) -16.7%Cash from Investing Growth (YoY) -15.9%Cash from Financing Growth (YoY) 245.1%Levered FCF Growth (YoY) -9.9%






-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%CRM & Marketing SaaS Stock Market Return: Jan 2014

CRM & Marketing S&P NASDAQ SEG SaaS

SEG SaaS Index Category: ERP & Supply Chain


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDE2open, Inc EOPN $687.9 $680.6 $69.5 61.3% -26.8% -6.6% 9.8x n/a 7.9x n/a -1.1%Fleetmatics FLTX $1,474.6 $1,358.1 $163.1 74.5% 26.6% 38.8% 8.3x 31.4x 6.3x 21.0x -7.8%Netsuite N $7,855.3 $7,657.7 $414.5 67.4% -9.3% 34.2% 18.5x n/a 14.2x 181.8x 3.2%SciQuest SQI $627.5 $600.8 $90.2 69.6% 5.3% 35.8% 6.7x 125.3x 5.5x 29.5x -2.7%SPS Commerce SPSC $1,035.3 $954.5 $104.4 69.6% 9.4% 35.4% 9.1x 97.2x 8.0x 61.3x 0.3%Unit 4 ENXTAM:U $1,545.0 $1,698.2 $623.0 92.8% 14.8% 5.4% 2.7x 18.4x n/a n/a -0.7%Workday, Inc. WDAY $16,192.7 $15,388.7 $408.6 61.1% -26.0% 73.6% 37.7x n/a 24.1x n/a 9.5%

Median: $1,474.6 $1,358.1 $163.1 69.6% 5.3% 35.4% 9.1x 64.3x 7.9x 45.4x -0.7%

TTM Revenue Growth 35.4%TTM EBITDA Growth 3.9%TTM Earnings Growth -23.7%Gross Profit Margin 69.6%EBITDA Margin 5.3%Net Income Margin -5.2%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 22.0%








-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%ERP & Supply Chain SaaS Stock Market Return: Jan 2014

ERP & Supply Chain S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Vertically Focused


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAthenahealth, Inc ATHN $5,482.8 $5,663.4 $595.0 59.9% 9.2% 40.9% 9.5x 103.3x 8.0x 44.9x 12.1%DealerTrack TRAK $2,047.8 $2,051.5 $457.2 43.3% 13.8% 20.8% 4.5x 32.6x 3.8x 16.0x -3.6%Ebix Inc. EBIX $520.6 $542.2 $207.9 80.4% 40.3% 9.8% 2.6x 6.5x 2.6x 7.1x -5.8%Ellie Mae ELLI $717.7 $652.5 $128.0 75.7% 22.1% 41.2% 5.1x 23.1x 4.7x 16.6x -2.7%Medidata Solutions MDSO $3,376.7 $3,245.2 $276.8 74.7% 11.1% 26.8% 11.7x 105.3x 10.1x 41.6x 6.9%RealPage RP $1,746.1 $1,702.1 $367.2 60.8% 15.5% 19.4% 4.6x 29.9x 3.9x 15.5x 0.4%Textura Corp. TXTR $779.2 $704.0 $40.8 68.6% -80.8% 70.1% 17.3x n/a 10.5x n/a 5.0%Veeva Systems Inc. VEEV $3,961.3 $3,687.9 $187.1 59.9% 20.5% n/a 19.7x 95.9x 14.8x 69.6x -1.7%

Median: $1,746.1 $1,702.1 $276.8 68.6% 13.8% 26.8% 5.1x 31.3x 4.7x 16.3x 0.4%









-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%Vertically Focused SaaS Stock Market Return: Jan 2014

Vertically Focused S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Workforce Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCallidus Software Inc. CALD $660.1 $687.9 $112.3 57.5% 0.3% 18.3% 6.1x 2116.8x 5.6x 48.7x 12.3%Cornerstone OnDemand CSOD $2,968.4 $2,955.5 $185.1 71.1% -13.1% 57.0% 16.0x n/a 12.2x n/a 7.8%Halogen Software, Inc. TSX:HGN $270.6 $217.0 $45.6 74.1% -8.0% n/a 4.8x n/a 3.9x n/a 0.8%The Ultimate Software Group, Inc. ULTI $4,558.5 $4,457.3 $410.4 58.9% 14.4% 23.5% 10.9x 75.2x 9.4x 41.8x 7.1%Workday, Inc. WDAY $16,192.7 $15,388.7 $408.6 61.1% -26.0% 73.6% 37.7x n/a 24.1x n/a 9.5%

Median: $2,968.4 $2,955.5 $185.1 61.1% -8.0% 40.3% 10.9x 1096.0x 9.4x 45.2x 7.8%

TTM Revenue Growth 40.3%TTM EBITDA Growth 11.8%TTM Earnings Growth 12.6%Gross Profit Margin 61.1%EBITDA Margin -8.0%Net Income Margin -21.8%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 16.5%








-6%

-4%

-2%

0%

2%

4%

6%

8%Workforce Management SaaS Stock Market Return: Jan 2014

Workforce Management S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBenefitfocus, Inc. BNFT $1,593.8 $1,516.7 $96.7 42.5% -18.9% n/a 15.7x n/a 12.4x n/a 16.2%ChannelAdvisors ECOM $983.3 $905.9 $68.0 73.4% -15.7% 26.9% 13.3x n/a 11.4x n/a 5.8%Concur CNQR $6,803.4 $6,612.1 $586.1 69.2% 6.2% 26.8% 11.3x 181.1x 9.1x 56.3x 20.2%Covisint Corporation COVS $350.5 $295.8 $98.4 44.5% -27.5% 13.9% 3.0x n/a 2.7x n/a -25.7%Demandware, Inc. DWRE $2,203.5 $2,093.3 $94.5 72.1% -15.8% 31.7% 22.1x n/a 16.6x n/a -1.7%FireEye, Inc. FEYE $8,818.9 $8,511.2 $136.0 73.0% -79.2% n/a 62.6x n/a 25.8x n/a 77.5%inContact, Inc. SAAS $486.8 $445.2 $125.6 48.0% 0.3% 22.1% 3.5x 1283.1x 3.0x 58.1x 9.5%IntraLinks Holdings IL $585.7 $581.8 $229.2 72.5% -0.1% 8.0% 2.5x n/a 2.5x 14.7x -11.8%J2 Global JCOM $2,079.7 $2,016.5 $484.8 82.8% 41.7% 36.8% 4.2x 10.0x 3.7x 8.7x -8.6%Jive Software, Inc JIVE $640.5 $533.4 $145.8 62.1% -41.3% 28.2% 3.7x n/a 3.1x n/a -15.3%Liquid Holdings Group, LLC LIQD $122.2 n/a $6.6 37.3% n/a n/a n/a n/a n/a n/a -28.6%OpenTable, Inc. OPEN $1,751.8 $1,649.1 $190.1 74.6% 33.1% 17.6% 8.7x 26.2x 7.6x 17.4x -3.6%Qualys, Inc. QLYS $934.7 $834.9 $108.0 77.2% 11.0% 18.1% 7.7x 70.0x 6.8x 39.7x 25.1%Rally Software Development, Inc. RALY $520.0 $425.2 $70.2 78.1% -20.9% 33.5% 6.1x n/a 4.9x n/a 10.1%RingCentral, Inc. RNG $1,135.8 $1,148.4 $160.5 61.7% -18.0% 40.1% 7.2x n/a 6.1x n/a 2.3%Service-now.com NOW $8,800.1 $8,580.3 $424.7 63.4% -9.9% 74.2% 20.2x n/a 13.3x 202.4x 13.9%Tableau Software DATA $4,780.7 $4,554.4 $232.4 92.0% 4.5% 82.0% 19.6x 433.0x 16.2x n/a 18.1%Tangoe TNGO $697.2 $658.5 $182.9 54.6% 9.0% 30.8% 3.6x 40.2x 3.1x 18.6x 0.9%Zix Corporation ZIXI $280.3 $247.4 $47.5 83.6% 22.1% 14.4% 5.2x 23.6x 4.8x 14.7x -1.8%

Median: $983.3 $1,027.2 $136.0 72.1% -5.0% 27.6% 7.4x 55.1x 6.5x 18.6x 2.3%









-6%

-4%

-2%

0%

2%

4%

6%

8%Other Public SaaS Companies SaaS Stock Market Return: Jan 2014

Other SaaS S&P NASDAQ SEG SaaS

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $2,515.7 $2,127.6 $522.0 63.4% 9.7% 15.0% 3.6x 21.1x 3.1x 15.6x -0.8% Ad Tech & Lead Generation $1,814.7 $1,848.8 $524.1 63.1% 7.5% 14.4% 3.2x 24.1x 2.6x 16.8x -1.1% Commerce $635.3 $524.4 $441.7 41.6% 6.2% 13.3% 1.1x 16.4x 1.2x 12.2x -4.4% Content & Media $3,544.9 $3,482.8 $519.9 49.4% 16.9% 9.4% 3.7x 19.5x 3.8x 14.5x 2.9% Gaming $3,216.69 $2,406.5 $822.5 72.3% 35.2% 15.5% 3.5x 9.3x 2.5x 8.0x -1.1% Infrastructure $587.75 $481.6 $275.7 60.0% 6.4% 0.9% 1.3x 15.6x 1.3x 11.0x -2.6% Services $1,287.87 $1,252.5 $223.1 72.2% 5.3% 45.4% 4.5x 40.6x 3.5x 25.1x -0.5% Social $7,774.29 $7,561.0 $664.9 63.7% 11.9% 57.2% 15.3x 53.8x 12.5x 34.4x 3.6% Travel $4,428.80 $3,918.7 $832.0 82.0% 17.3% 20.5% 4.7x 22.6x 5.5x 17.2x 0.6%


Current Ratio 2.5Quick Ratio 2.2Cash as Percent of Market Cap 14.3%Avg Days Outstanding: Accounts Receivable 38Avg Days Outstanding: Accounts Payable 53Working Capital to TTM Operating Expense Ratio 0.5

Levered FCF Margin 9.7%Cash from Operations Growth (YoY) 12.3%Cash from Investing Growth (YoY) -38.2%Cash from Financing Growth (YoY) 27.4%Levered FCF Growth (YoY) -0.5%





-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%SEG Internet Index Stock Market Return: Jan 2014

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech and Lead Generation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $1,048.1 $1,000.4 $223.1 72.7% -13.0% 62.7% 4.5x n/a 3.2x 106.1x 32.1%Baidu.com, Inc. BIDU $54,765.6 $50,812.6 $4,697.8 73.1% 45.0% 40.7% 10.8x 24.1x 7.7x 19.0x -13.1%Bankrate, Inc. RATE $1,683.4 $1,788.9 $428.4 66.2% 21.8% -10.3% 4.2x 19.1x 3.5x 12.8x -4.9%Criteo SA CRTO $1,945.9 $1,908.8 $534.1 35.2% 3.5% n/a 3.6x 103.3x n/a n/a 6.8%Conversant, Inc. CNVR $1,435.3 $1,575.8 $573.1 68.0% 36.1% -13.3% 2.7x 7.6x 2.6x 6.9x -6.9%eHealth, Inc. EHTH $994.9 $897.2 $170.3 96.9% 10.9% 11.1% 5.3x 48.2x 4.3x 37.6x 12.3%Google Inc. GOOG $396,607.5 $344,509.5 $59,825.0 56.8% 29.9% 19.2% 5.8x 19.2x 5.0x 13.4x 6.1%Groupon GRPN $7,131.4 $5,989.5 $2,443.5 60.5% 5.1% 11.7% 2.5x 47.8x 2.2x 16.8x -11.7%InterActiveCorp IACI $5,833.9 $5,731.6 $3,023.0 66.9% 18.0% 7.9% 1.9x 10.5x 1.8x 9.1x 3.1%LinkedIn LNKD $25,697.1 $23,424.8 $1,528.5 86.7% 11.9% 57.2% 15.3x 128.5x 11.8x 45.8x 3.6%Marchex Inc. MCHX $333.0 $307.9 $150.8 39.1% 2.5% 8.2% 2.0x 80.7x 1.9x 20.4x -5.1%QuinStreet QNST $358.9 $321.9 $297.8 17.9% 9.0% -9.5% 1.1x 12.1x 1.1x 8.2x -6.0%ReachLocal, Inc. RLOC $360.6 $275.1 $514.1 50.1% 4.1% 12.9% 0.5x 12.9x 0.5x 7.2x 1.5%Rocket Fuel, Inc. FUEL $2,049.9 $1,951.5 $195.1 46.4% -7.7% n/a 10.0x n/a 5.3x n/a -1.6%SINA Corporation SINA $4,351.7 $3,615.2 $607.2 57.1% 6.0% 16.0% 6.0x 99.3x 4.6x 24.9x -23.1%Sohu.com Inc. SOHU $2,787.0 $2,276.3 $1,400.3 65.7% 21.8% 31.2% 1.6x 7.5x 1.4x 8.0x -0.7%Tree.Com, Inc. TREE $361.5 $273.7 $126.8 94.9% 5.3% 97.6% 2.2x 40.6x 1.8x 14.0x -0.5%Tremor, Inc. TRMR $220.5 $124.2 $128.0 44.0% -1.9% n/a 1.0x n/a 0.9x n/a -21.8%Yandex YNDX $11,975.1 $11,606.7 $1,118.8 74.8% 43.0% 37.3% 10.4x 24.1x 7.9x 18.2x -13.8%YuMe YUME $249.4 $186.4 $142.6 47.0% 5.0% n/a 1.3x 26.2x 1.0x 51.5x 6.1%

Median: $1,814.7 $1,848.8 $524.1 63.1% 7.5% 14.4% 3.2x 24.1x 2.6x 16.8x -1.1%


Current Ratio 2.8xQuick Ratio 2.7xCash as Percent of Market Cap 13.9%Avg Days Outstanding: Accounts Receivable 48.2xAvg Days Outstanding: Accounts Payable 51.8xWorking Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 8.6%Cash from Operations Growth (YoY) -9.2%Cash from Investing Growth (YoY) -4.8%Cash from Financing Growth (YoY) -20.9%Levered FCF Growth (YoY) -12.4%





-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%Internet Ad Tech and Lead Generation Stock Market Return: Jan 2014

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Commerce


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD1-800-FLOWERS.COM, Inc. FLWS $324.4 $328.1 $753.9 41.6% 6.2% 4.5% 0.4x 7.1x 0.4x 5.7x -4.7%58.com Inc. WUBA $2,987.7 $3,061.9 $125.2 92.7% 5.1% n/a 24.5x 475.6x 15.5x 74.0x -1.0%Amazon.com, Inc. AMZN $164,733.8 $158,422.8 $74,452.0 27.2% 4.8% 21.9% 2.1x 44.7x 1.8x 23.3x -9.9%Bitauto Holdings Limited BITA $1,271.9 $1,168.0 $214.1 75.0% 19.5% 41.0% 5.5x 27.9x 4.1x 21.1x -1.8%BlueNile NILE $551.3 $504.1 $450.0 18.6% 3.9% 12.5% 1.1x 28.9x 1.0x 18.8x -7.1%DangDang DANG $758.5 $524.4 $974.9 16.2% -5.0% 24.1% 0.5x n/a 0.4x n/a -3.3%Digital River Inc. DRIV $587.8 $311.5 $389.7 66.2% 8.6% 0.9% 0.8x 9.3x 0.8x 7.0x -4.4%eBay Inc. EBAY $68,875.6 $63,973.6 $16,047.0 68.6% 29.7% 14.0% 4.0x 13.4x 3.5x 10.6x -1.4%GeekNet GKNT $118.1 $77.4 $130.3 20.3% 2.0% 21.3% 0.6x 29.1x 0.5x 12.2x -1.3%Liquidity Services, Inc. LQDT $765.9 $670.8 $505.6 42.0% 17.4% 2.9% 1.3x 7.6x 1.3x 6.8x 5.8%Mecox Lane Limited MCOX $49.5 $32.1 $103.9 37.9% -16.3% -38.9% 0.3x n/a n/a n/a 13.4%Mercadolibre, Inc. MELI $4,260.3 $4,063.8 $441.7 77.6% 34.3% 24.0% 9.2x 26.8x 7.6x 22.2x -6.7%Overstock.com, Inc. OSTK $500.7 $352.0 $1,304.2 19.0% 2.3% 18.6% 0.3x 11.5x 0.2x 7.7x -28.8%PetMed Express, Inc. PETS $263.6 $222.2 $235.9 33.2% 12.4% 1.4% 0.9x 7.6x 0.9x 7.6x -20.5%Stamps.com STMP $635.3 $561.8 $125.5 77.1% 27.3% 11.3% 4.5x 16.4x 4.0x 12.7x -5.6%

Median: $635.3 $524.4 $441.7 41.6% 6.2% 13.3% 1.1x 16.4x 1.2x 12.2x -4.4%

TTM Revenue Growth 13.3%TTM EBITDA Growth 9.6%TTM Earnings Growth 16.8%Gross Profit Margin 41.6%EBITDA Margin 6.2%Net Income Margin -1.0%SG&A Expenses as a % of Total Revenue 39.2%R&D Expenses as a % of Total Revenue 17.0%


Levered FCF Margin 9.2%Cash from Operations Growth (YoY) 11.3%Cash from Investing Growth (YoY) -53.9%Cash from Financing Growth (YoY) -34.6%Levered FCF Growth (YoY) -5.7%





-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Internet Commerce Internet Stock Market Return: Jan 2014

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAOL, Inc. AOL $3,544.9 $3,482.8 $2,319.9 26.5% 18.1% 5.8% 1.5x 8.3x 1.4x 6.9x 2.9%DemandMedia DMD $518.0 $461.4 $401.1 50.5% 15.8% 10.8% 1.2x 7.3x 1.1x 5.6x 2.7%InterActiveCorp IACI $5,833.9 $5,731.6 $3,023.0 66.9% 18.0% 7.9% 1.9x 10.5x 1.8x 9.1x 3.1%Netflix NFLX $24,398.9 $23,698.5 $4,374.6 29.5% 6.3% 21.2% 5.4x 85.6x 4.4x 41.9x 12.8%Pandora P $7,006.8 $6,558.9 $588.3 37.0% -7.1% 53.5% 11.1x n/a n/a n/a 34.8%Shutterstock, Inc. SSTK $2,821.7 $2,626.2 $216.6 61.6% 20.6% 39.6% 12.1x 58.7x 9.2x 41.1x -2.9%TheStreet.com, Inc. TST $92.3 $43.1 $53.5 48.3% -3.5% 4.5% 0.8x n/a n/a n/a 22.0%WebMD Health Corp. WBMD $2,152.8 $2,076.7 n/a n/a n/a n/a n/a n/a 3.8x 14.5x 24.2%XO Group XOXO $300.0 $213.8 $133.4 83.0% 18.0% 4.3% 1.6x 8.9x 1.5x 6.9x -17.4%Yahoo! Inc. YHOO $36,528.0 $34,403.0 $4,680.4 71.2% 25.8% -6.1% 7.4x 28.5x 7.6x 24.1x -9.0%Youku YOKU $4,839.5 $4,316.3 $451.4 23.9% 5.5% 88.1% 9.6x 175.0x 6.8x 75.5x -8.9%

Median: $3,544.9 $3,482.8 $519.9 49.4% 16.9% 9.4% 3.7x 19.5x 3.8x 14.5x 2.9%









-6%

-4%

-2%

0%

2%

4%

6%

8%Internet Content & Media Stock Market Return: Jan 2014

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDChangYou.com CYOU $1,592.0 $1,420.4 $737.9 82.9% 46.6% 18.4% 1.9x 4.1x 1.7x 3.7x -6.9%Giant Interactive GA $2,638.2 $2,144.7 $379.4 90.3% 63.6% 11.9% 5.7x 8.9x 5.1x 7.9x -1.6%Netease NTES $9,734.2 $6,984.8 $1,477.6 73.0% 48.7% 12.6% 4.7x 9.7x 4.1x 8.2x -4.3%NCSoft KOSE:A036 $3,646.4 $3,091.5 $771.7 71.6% 34.7% 36.3% 4.0x 11.5x n/a n/a -21.3%Perfect World PWRD $954.9 $590.3 $465.0 77.1% 20.3% -0.6% 1.3x 6.3x 1.1x 5.7x 8.8%Sohu.com Inc. SOHU $2,787.0 $2,276.3 $1,400.3 65.7% 21.8% 31.2% 1.6x 7.5x 1.4x 8.0x -0.7%Tencent Holdings SEHK:700 $129,148.2 $125,889.3 $9,086.3 55.3% 35.6% 40.2% 13.9x 38.9x n/a n/a 7.6%Zynga, Inc. ZNGA $3,662.2 $2,536.7 $873.3 71.6% 8.4% -31.8% 2.9x 34.5x 3.2x 27.6x 11.4%

Median: $3,216.7 $2,406.5 $822.5 72.3% 35.2% 15.5% 3.5x 9.3x 2.5x 8.0x -1.1%








-6%

-4%

-2%

0%

2%

4%

6%Internet Gaming Stock Market Return: Jan 2014

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD8x8, Inc. EGHT $891.1 $717.0 $124.5 70.3% 9.6% 24.2% 5.8x 60.2x 4.7x 45.5x 1.7%Akamai Technologies, Inc. AKAM $8,533.6 $7,967.3 $1,577.9 67.6% 37.5% 14.8% 5.0x 13.5x 4.6x 10.8x 2.5%Brightcove Inc. BCOV $309.0 $272.9 $109.9 66.5% -1.4% 24.9% 2.5x n/a 2.1x n/a -23.3%BroadSoft, Inc. BSFT $864.4 $797.0 $172.3 77.7% 4.3% 8.0% 4.6x 108.4x 4.0x 16.2x 15.8%Digital River Inc. DRIV $587.8 $311.5 $389.7 66.2% 8.6% 0.9% 0.8x 9.3x 0.8x 7.0x -4.4%Envivio, Inc. ENVI $98.2 $48.2 $38.4 64.5% -31.5% -18.1% 1.3x n/a 1.0x n/a 4.3%Harmonic Inc HLIT $652.1 $481.6 $461.9 47.9% 5.0% -12.9% 1.0x 20.8x 1.0x 7.5x -10.4%Interactive Intelligence, Inc. ININ $1,535.9 $1,437.8 $318.2 64.2% 8.8% 34.1% 4.5x 51.1x 3.9x 67.0x 14.3%Limelight Networks, Inc. LLNW $185.8 $74.5 $177.7 50.9% -5.4% -1.1% 0.4x n/a 0.4x n/a -4.0%Mitel Networks Corp. MITL $476.9 $695.3 $579.4 56.6% 15.3% -2.1% 1.2x 7.9x 0.9x 5.8x -8.5%Polycom, Inc. PLCM $2,033.1 $1,754.2 $1,368.4 57.9% 8.7% -1.7% 1.3x 14.7x 1.3x 8.7x 6.9%Rovi Corporation ROVI $2,136.5 $2,835.9 $605.6 82.4% 31.9% -7.6% 4.7x 14.7x 5.2x 11.7x 6.9%SeaChange International Inc. SEAC $392.8 $275.7 $155.3 56.7% 11.4% -0.4% 1.8x 15.6x 1.7x 11.0x -1.6%ShoreTel, Inc. SHOR $464.8 $416.6 $332.7 60.0% 3.1% 17.0% 1.3x 39.8x 1.2x 15.0x -16.8%Sonus Networks, Inc SONS $820.5 $622.3 $275.7 57.9% -3.2% 8.9% 2.3x n/a 2.2x n/a -2.6%Synacor, Inc SYNC $64.5 $32.4 $114.6 46.7% 4.3% -3.5% 0.3x 6.6x 0.3x 5.2x -6.0%Tucows Inc. TCX $134.4 $129.8 $126.6 23.9% 6.4% 13.7% 1.0x 16.0x 0.9x 12.7x -5.9%VeriSign VRSN $8,051.8 $7,608.7 $965.1 80.6% 61.0% 10.5% 7.9x 12.9x 7.6x 12.3x -2.1%

Median: $587.8 $481.6 $275.7 60.0% 6.4% 0.9% 1.3x 15.6x 1.3x 11.0x -2.6%








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Internet Infrastructure Stock Market Return: Jan 2014

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $1,048.1 $1,000.4 $223.1 72.7% -13.0% 62.7% 4.5x n/a 3.2x 106.1x 32.1%Bankrate RATE $1,683.4 $1,788.9 $428.4 66.2% 21.8% -10.3% 4.2x 19.1x 3.5x 12.8x -4.9%Carbonite, Inc. CARB $267.4 $202.0 $107.2 67.5% 3.7% 27.5% 1.9x 50.7x 1.7x 24.1x -14.8%LifeLock, Inc. LOCK $1,846.0 $1,654.1 $346.2 72.2% 5.3% 38.2% 4.8x 89.9x 3.9x 34.7x 29.4%Monster Worldwide, Inc. MWW $641.8 $743.8 $807.6 53.0% 14.3% -9.3% 0.9x 6.5x 0.9x 5.1x -13.3%Qihoo QIHU $12,409.7 $12,017.6 $552.4 87.6% 26.4% 91.5% 21.8x 82.4x 12.8x 26.2x 23.5%Shutterfly SFLY $1,801.4 $1,708.4 $783.6 52.8% 12.4% 22.3% 2.2x 17.6x 2.0x 11.5x -4.1%Tree.Com, Inc. TREE $361.5 $273.7 $126.8 94.9% 5.3% 97.6% 2.2x 40.6x 1.8x 14.0x -0.5%Trulia, Inc. TRLA $1,287.9 $1,252.5 $114.6 85.7% -2.6% 93.3% 10.9x n/a 5.5x 29.4x -1.9%VistaPrint VPRT $1,624.2 $1,766.4 $1,213.6 65.8% 11.4% 9.6% 1.5x 12.8x 1.4x 8.7x -11.4%Wix.com Ltd. WIX $1,067.6 $1,060.0 $68.8 80.5% -28.5% n/a 15.4x n/a 9.6x n/a 11.2%Xoom XOOM $1,023.2 $822.0 $122.2 68.8% 9.2% 52.7% 6.7x 73.4x 5.7x 57.3x 0.9%Zillow Z $3,197.4 $2,832.4 $173.5 90.0% -5.5% 69.5% 16.3x n/a 10.9x 67.2x 0.1%

Median: $1,287.9 $1,252.5 $223.1 72.2% 5.3% 45.4% 4.5x 40.6x 3.5x 25.1x -0.5%



Levered FCF Margin 7.0%Cash from Operations Growth (YoY) -2.7%Cash from Investing Growth (YoY) -40.0%Cash from Financing Growth (YoY) 77.7%Levered FCF Growth (YoY) 6.8%





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Internet Services Stock Market Return: Jan 2014

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFacebook FB $159,537.4 $148,564.4 $7,872.0 77.7% 49.9% 54.7% 18.9x 37.8x 13.2x 22.1x 14.4%LinkedIn LNKD $25,697.1 $23,424.8 $1,528.5 86.7% 11.9% 57.2% 15.3x 128.5x 11.8x 45.8x 3.6%Mail.ru Group LSE:MAIL $7,774.3 $7,561.0 $721.5 56.3% 44.3% 32.2% 10.5x 23.6x n/a n/a -15.7%Renren Inc RENN $1,215.9 $307.5 $192.6 63.7% -54.1% 20.3% 1.6x n/a 2.2x n/a 1.3%Twitter, Inc. TWTR $35,132.9 $34,999.3 $664.9 59.9% -81.4% 109.8% 52.6x n/a 35.7x n/a -4.4%Yelp, Inc. YELP $5,279.4 $5,178.2 $233.0 92.9% 1.0% 69.4% 22.2x 2133.9x 16.5x 100.5x 11.8%YY, Inc. YY $3,494.5 $3,189.7 $241.4 53.6% 24.5% 121.9% 13.2x 53.8x 7.9x 22.9x 20.7%

Median: $7,774.3 $7,561.0 $664.9 63.7% 11.9% 57.2% 15.3x 53.8x 12.5x 34.4x 3.6%



Levered FCF Margin 31.4%Cash from Operations Growth (YoY) 93.5%Cash from Investing Growth (YoY) -54.6%Cash from Financing Growth (YoY) 0.7%Levered FCF Growth (YoY) n/a






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8%Internet Social Stock Market Return: Jan 2014

Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCtrip CTRP $5,127.2 $4,450.6 $824.6 74.7% 17.4% 26.7% 5.4x 31.0x 4.3x 18.3x -20.0%Expedia EXPE $8,470.3 $8,374.7 $4,771.3 78.2% 13.7% 18.4% 1.8x 12.8x 1.6x 8.6x -6.1%HomeAway AWAY $3,730.4 $3,386.8 $327.8 83.9% 18.0% 22.6% 10.3x 57.3x 8.3x 29.2x 1.8%MakeMyTrip MMYT $1,043.5 $977.7 $249.7 23.8% -6.7% 13.2% 3.9x n/a 8.4x n/a 40.0%Orbitz OWW $779.1 $1,066.4 $839.3 81.2% 14.1% 9.5% 1.3x 9.0x 1.2x 7.3x 1.3%Priceline PCLN $58,879.4 $54,601.8 $6,442.8 82.9% 37.4% 27.3% 8.5x 22.6x 6.8x 17.2x 0.0%Travelzoo TZOO $342.3 $275.6 $158.2 89.0% 17.2% 4.7% 1.7x 10.1x 1.7x 8.4x 5.9%TripAdvisor Inc TRIP $10,965.8 $10,909.6 $944.7 98.1% 34.9% 23.8% 11.5x 33.1x 10.0x 24.2x -4.1%

Median: $4,428.8 $3,918.7 $832.0 82.0% 17.3% 20.5% 4.7x 22.6x 5.5x 17.2x 0.6%








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5%Internet Travel Stock Market Return: Jan 2014

Travel S&P NASDAQ SEG Internet Index

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