software equity group flash reportsoftwareequity.com/reports/seg_monthly_flash_report... ·...

February 2013

Software Equity Group Flash Report

Public SaaS Companies

Select M&A Transactionsand

Financial and Stock Market PerformancePublic Software Companies By Product Category

[email protected]

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved

San Diego, CA 92130

Software Equity Group, L.L.C.

p: (858) 509-2800f: (858) 509-2818

Public SaaS CompaniesPublic Internet Companies By Product Category

12220 El Camino Real, #320

http://www.softwareequity.com/

ABOUT OUR FIRM

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently 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 technology domainexpertise. 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.


THE SEG SOFTWARE COMPANY MENTORING PROGRAM

As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever they’d like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and financings in their product category. And the best news – we don’t charge for this mentoring advice. It’s complimentary. It’s our way of building value, and relationships.

We’re looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. We’ll then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, we’ll discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. We’ll assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. We’ll discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. We’re a terrific sounding board. We’ll give you an informed, honest and frank opinion – that’s what we’re known for. And we’ll offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide.

If you run a profitable software company with revenue in excess of $10 million, and you’re interested in learning more about SEG’s complimentary, no obligation mentoring .2800-509-858or [email protected], please contact Kris Beible at

ADDITIONAL RESEARCH

http://www.softwareequity.com/research_quarterly_reports.aspx, please visit: 03Q1For our complimentary current and archived Quarterly Reports from

http://www.softwareequity.com/research_flash_reports.aspx, please visit: 2008For our complimentary current and archived Monthly Flash Reports from July

http://www.softwareequity.com/research_annual_reports.aspx, please visit: 2010through 2003 For our Annual Reports from

mailto: [email protected]

http://www.softwareequity.com/research_quarterly_reports.aspx

http://www.softwareequity.com/research_flash_reports.aspx

http://www.softwareequity.com/research_annual_reports.aspx

http://www.softwareequity.com

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 System

List of Commonly Used Acronyms

NASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date


Select Software Industry M&A TransactionsJanuary 2013


Select January 2013 Software Industry M&A TransactionsDate

Announced EV/ Revenue

1/31/2013 ACI Worldwide, Inc. (NasdaqGS:ACIW) Online Resources Corp. $161.7 $237.6 1.5x1/31/2013 Micron Co., Ltd. Business Alpha 24 Co., Ltd. - $26.7 -1/31/2013 Outsourcing, Inc. (TSE:2427) Computer System Laboratory Co., Ltd. $18.5 $13.2 0.7x1/31/2013 Fidelity National Information Services, Inc. (NYSE:FIS) mFoundry, Inc. - $153.9 -1/31/2013 Autodesk, Inc. (NasdaqGS:ADSK) Allpoint Systems, Inc. - - -1/31/2013 The Brink's Company (NYSE:BCO) Redetrel - Rede Transações Eletrônicas -1/30/2013 Back Stage, LLC Sonicbids Corporation - $15.0 -1/30/2013 Polycom, Inc. (NasdaqGS:PLCM) Sentri, Inc. - $10.0 -1/29/2013 OpenTable, Inc. (NasdaqGS:OPEN) Foodspotting Inc. - $10.0 -1/29/2013 Cisco Systems, Inc. (NasdaqGS:CSCO) Cognitive Security s.r.o. - - -1/28/2013 Peterson Partners LP Angoss Software Corp. (TSXV:ANC) $6.7 $7.9 1.2x1/28/2013 Twitter, Inc. Crashlytics Inc. - - -1/28/2013 Intuit Inc. (NasdaqGS:INTU) Payvment, Inc. - - -1/25/2013 NetApp, Inc. (NasdaqGS:NTAP) IonGrid, Inc. - - -1/24/2013 Cubic Transportation Systems, Inc. NextBus Inc. - $20.7 -1/24/2013 Amazon.com Inc. (NasdaqGS:AMZN) IVONA Software Sp. z o.o. - - -1/23/2013 Sega Corporation THQ Canada Inc. - $26.6 -1/23/2013 MSCI Inc. (NYSE:MSCI) Investor Force Holdings, Inc. - $23.5 -1/23/2013 T k T I t ti S ft I (N d GS TTWO) THQ I E l $10 9

Acquirer TargetTarget TTM Revenue ($mm)

Implied Enterprise Value ($mm)

1/23/2013 Take-Two Interactive Software Inc. (NasdaqGS:TTWO) THQ Inc., Evolve - $10.9 -1/23/2013 Ubisoft Entertainment SA (ENXTPA:UBI) THQ Montreal Inc. - $2.5 -1/22/2013 Infusionsoft, Inc. GroSocial, Inc. - - -1/22/2013 Yahoo! Inc. (NasdaqGS:YHOO) Snip.it - - -1/17/2013 Yahoo Japan Corporation (TSE:4689) Mynet Japan Inc., CRM Business for - $3.9 -1/16/2013 Drumright Group, LLC Cogility Software Corporation - $7.0 -1/15/2013 Iron Mountain Inc. (NYSE:IRM) Coakley Brothers, Datastore Division - - -1/14/2013 Fiserv, Inc. (NasdaqGS:FISV) Open Solutions Inc. - $1,015.0 -1/14/2013 Accelrys Software Inc. Vialis AG - $10.9 -1/11/2013 Groupon, Inc. (NasdaqGS:GRPN) Ansible Technologies, Inc. - - -1/10/2013 NetSuite Inc. (NYSE:N) Retail Anywhere Inc. - - -1/9/2013 Reliance Network LLC BrokerTec Systems, LLC - - -1/9/2013 ManTech International Corporation (NasdaqGS:MANT) ALTA Systems, Inc. - - -1/8/2013 Rolls Royce Holdings plc (LSE:RR.) PKMJ Technical Services, Inc. - - -1/8/2013 Konica Minolta Business Solutions, U.S.A., Inc. DocuSource, LLC - - -1/8/2013 Euronet Worldwide Inc. (NasdaqGS:EEFT) Pure Commerce Pty Ltd. $15.0 - -1/8/2013 Nearstream, Inc. LoopFuse, Inc. - - -1/7/2013 Athenahealth, Inc. (NasdaqGS:ATHN) Epocrates, Inc. (NasdaqGS:EPOC) $110.1 $215.4 2.0x1/7/2013 Demand Media, Inc. (NYSE:DMD) Name.com LLC - - -1/6/2013 Alibaba Cloud Computing Company HiChina Web Solutions (Beijing) Limited - - -1/3/2013 Trimble Navigation Limited (NasdaqGS:TRMB) ALK Technologies, Inc. - - -1/3/2013 Pinterest Punchfork, Inc. - - -

SEG Software Index Category Performance


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ RevenueForward

EV/ EBITDA

YoY Stock Market Return

SEG Software Index $1,903.8 $2,055.3 $561.4 68.8% 20.5% 10.5% 2.5x 11.7x 2.5x 9.6x 4.7% Billing & Service Management $798.1 $704.7 $547.9 57.7% 21.4% 13.9% 1.5x 8.1x 1.8x 7.5x 15.7% Business Intelligence $1,131.5 $907.1 $388.5 74.3% 10.8% 10.8% 3.0x 16.0x 2.9x 12.8x -2.3% Development Platforms $2,521.5 $2,526.7 $970.7 75.4% 26.7% 1.4% 2.4x 8.9x 2.5x 8.9x 0.6% Engineering & PLM $3,456.3 $3,240.4 $1,167.5 84.5% 20.2% 12.9% 2.6x 12.9x 2.4x 8.9x 22.6% Enterprise Resource Planning $6,140.9 $6,371.5 $2,160.7 69.2% 29.6% 2.9% 2.9x 10.0x 0.0x 0.0x 0.0% Financial & Accounting $2,415.5 $2,905.3 $1,428.4 62.0% 28.6% 8.8% 3.0x 10.4x 2.9x 9.3x 26.0% Gaming $1,104.5 $1,115.5 $1,402.5 63.6% 12.2% 5.6% 1.0x 6.2x 0.9x 5.1x -15.3% IT Conglomerates $168,114.9 $154,603.9 $72,930.0 69.2% 30.4% 1.2% 2.4x 8.9x 2.4x 8.0x 5.4% Mobile Solutions/Content $537.8 $454.8 $212.6 66.1% 8.8% 33.1% 2.2x 12.3x 1.6x 12.8x -22.9% Networking & Network Performance Managemen $2,609.3 $2,526.7 $970.7 66.0% 16.1% 12.5% 2.6x 16.3x 2.3x 9.3x 2.0% Security $782.4 $764.2 $320.0 80.2% 16.6% 15.4% 2.4x 10.1x 2.0x 12.4x -3.9% Storage, Data Mgmt & Integration $3,763.8 $3,460.5 $1,024.6 79.9% 20.9% 3.5% 3.5x 13.3x 3.2x 9.8x 2.0% Supply Chain Management & Logistics $966.5 $894.8 $198.4 61.5% 19.4% 12.3% 3.9x 15.1x 3.5x 13.1x 36.8% Systems Management $10,733.9 $9,847.5 $2,197.5 85.0% 26.7% 17.2% 4.9x 20.9x 4.3x 13.8x 12.2% Vertical - Finance $2,332.7 $2,984.2 $751.0 43.8% 26.8% 6.7% 3.2x 10.3x 3.1x 9.4x 0.9% Vertical - Other $865.7 $1,009.6 $372.0 54.5% 13.0% 23.0% 2.8x 12.9x 2.7x 12.5x 9.4%

Category Name

TTM Revenue Growth 13.9%TTM EBITDA Growth 2.3%TTM Earnings Growth -40.4%Gross Profit Margin 57.7%EBITDA Margin 21.4%Net Income Margin 1.6%SG&A Expenses as a % of Total Revenue 53.1%R&D Expenses as a % of Total Revenue 15.4%

Balance Sheet Analysis (Median)Current Ratio 1.9Quick Ratio 1.7Cash as Percent of Market Cap 10.1%Avg Days Outstanding: Accounts Receivable 59Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.3x

Cash Flow Statement Analysis (Median)Levered FCF Margin 9.1%Cash from Operations Growth (YoY) 23.0%Cash from Investing Growth (YoY) -140.2%Cash from Financing Growth (YoY) 107.6%Levered FCF Growth (YoY) 17.3%

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved February 2013 Monthly Flash Report

Income Statement Analysis (Median)

0%

1%

2%

3%

4%

5%

6%

7%

8%SEG SW Index Software Stock Market Return: Jan 2013

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


Amdocs Limited DOX $5,801.2 $4,839.8 $3,266.3 35.6% 18.5% 1.8% 1.5x 8.0x 1.4x 6.9x 21.2%AsiaInfo Holdings, Inc. ASIA $798.1 $539.6 $547.9 39.1% 12.2% 13.9% 1.0x 8.1x 0.9x 7.4x -6.2%CSG Systems International, Inc. CSGS $596.8 $704.7 $756.9 49.3% 21.5% 3.0% 0.9x 4.3x 0.9x 4.5x 15.7%Evolving Systems, Inc. EVOL $71.3 $59.0 $24.3 66.1% 18.2% 25.9% 2.4x 13.3x 2.1x 7.6x 19.4%MIND C.T.I. Ltd. MNDO $40.0 $22.5 $20.9 60.2% 21.4% 10.0% 1.1x 5.1x n/a n/a -12.7%NeuStar, Inc NSR $2,992.4 $3,312.4 $831.4 77.6% 44.4% 34.0% 4.0x 9.0x 3.7x 7.9x 23.6%Synchronoss Technologies, Inc. SNCR $906.3 $797.5 $273.7 57.7% 22.2% 19.5% 2.9x 13.2x 2.6x 8.2x -28.8%

Median: $798.1 $704.7 $547.9 57.7% 21.4% 13.9% 1.5x 8.1x 1.8x 7.5x 15.7%


Current Ratio 2.8Quick Ratio 2.5Cash as Percent of Market Cap 17.4%Avg Days Outstanding: Accounts Receivable 90Avg Days Outstanding: Accounts Payable 26Working Capital to TTM Operating Expense Ratio 0.7x

Levered FCF Margin 9.5%Cash from Operations Growth (YoY) 31.2%Cash from Investing Growth (YoY) 46.8%Cash from Financing Growth (YoY) 19.8%Levered FCF Growth (YoY) 55.4%



Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

0%

1%

2%

3%

4%

5%

6%

7%

8%Billing and Service Management Software Stock Market Return: Jan 2013

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


Actuate Corporation BIRT $275.7 $201.1 $138.8 84.0% 17.0% 2.9% 1.4x 8.5x 1.4x 6.7x -2.3%MicroStrategy Incorporated MSTR $1,131.5 $907.1 $594.6 74.3% 8.4% 5.8% 1.5x 18.2x 1.4x 12.8x -12.9%Pegasystems Inc. PEGA $911.2 $799.9 $461.7 65.9% 10.8% 10.8% 1.7x 16.0x 1.7x 11.5x -15.2%Progress Software Corporation PRGS $1,358.0 $1,002.8 $335.2 87.4% 26.7% -7.1% 3.0x 11.2x 2.9x 9.7x 0.6%PROS Holdings PRO $605.7 $533.0 $117.8 71.3% 8.8% 21.9% 4.5x 51.4x 4.0x 23.9x 36.0%Qlik Technologies QLIK $1,907.8 $1,714.8 $388.5 88.9% 5.1% 21.2% 4.4x 86.2x 4.0x 36.4x -21.3%Verisk VRSK $9,200.6 $10,665.4 $1,534.3 60.4% 45.3% 15.2% 7.0x 15.3x 6.4x 14.0x 37.7%

Median: $1,131.5 $907.1 $388.5 74.3% 10.8% 10.8% 3.0x 16.0x 2.9x 12.8x -2.3%

TTM Revenue Growth 10.8%TTM EBITDA Growth -0.2%TTM Earnings Growth -14.0%Gross Profit Margin 74.3%EBITDA Margin 10.8%Net Income Margin 4.7%SG&A Expenses as a % of Total Revenue 52.1%R&D Expenses as a % of Total Revenue 16.3%


Levered FCF Margin 8.2%Cash from Operations Growth (YoY) 9.5%Cash from Investing Growth (YoY) -162.4%Cash from Financing Growth (YoY) 62.8%Levered FCF Growth (YoY) -13.2%





-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Business Intelligence Software Stock Market Return: Jan 2013

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


Actuate Corporation BIRT $275.7 $201.1 $138.8 84.0% 17.0% 2.9% 1.4x 8.5x 1.4x 6.7x -2.3%Adobe Systems Incorporated ADBE $18,869.3 $16,839.1 $4,403.7 89.0% 33.5% 4.4% 3.8x 11.4x 4.1x 14.3x 22.2%BSQUARE Corporation BSQR $37.9 $19.2 $101.4 18.8% 2.1% 4.7% 0.2x 8.9x n/a n/a -13.6%Compuware Corporation CPWR $2,521.5 $2,526.7 $970.7 66.0% 16.8% -2.3% 2.6x 15.5x 2.5x 11.2x 48.2%Magic Software Enterprises Ltd. MGIC $173.5 $137.4 $126.4 41.9% 17.0% 11.5% 1.1x 6.4x 1.1x n/a -25.8%Microsoft Corporation MSFT $229,927.9 $176,047.9 $72,930.0 75.4% 39.6% 1.2% 2.4x 6.1x 2.1x 5.0x -7.0%Oracle Corporation ORCL $168,114.9 $154,603.9 $37,230.0 79.9% 46.5% 1.4% 4.2x 8.9x 3.9x 8.0x 25.9%Progress Software Corporation PRGS $1,358.0 $1,002.8 $335.2 87.4% 26.7% -7.1% 3.0x 11.2x 2.9x 9.7x 0.6%Software AG XTRA:SOW $3,343.5 $3,276.0 $1,380.8 63.9% 27.5% -4.6% 2.4x 8.6x n/a n/a 18.2%

Median: $2,521.5 $2,526.7 $970.7 75.4% 26.7% 1.4% 2.4x 8.9x 2.5x 8.9x 0.6%



Levered FCF Margin 20.9%Cash from Operations Growth (YoY) 0.1%Cash from Investing Growth (YoY) 21.7%Cash from Financing Growth (YoY) -19.1%Levered FCF Growth (YoY) 0.6%





0%

1%

2%

3%

4%

5%

6%

7%

8%Development Platforms Software Stock Market Return: Jan 2013

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


ANSYS, Inc. ANSS $6,818.1 $6,342.5 $798.0 87.6% 47.5% 15.4% 7.9x 16.7x 7.3x 14.6x 21.7%Autodesk, Inc. ADSK $8,736.3 $7,517.2 $2,312.2 89.7% 20.7% 4.4% 3.3x 15.7x 3.2x 10.6x 8.0%Cadence Design Systems, Inc CDNS $3,900.5 $3,520.5 $1,326.4 85.6% 22.7% 15.4% 2.7x 11.7x 2.5x 7.8x 31.9%Cimatron Ltd. CIMT $67.0 $54.6 $42.3 87.0% 15.2% 3.9% 1.3x 8.5x n/a n/a 110.8%Dassault Systèmes DSY $13,755.9 $12,180.2 $2,674.3 86.8% 31.2% 13.8% 4.6x 14.6x n/a n/a 34.1%GSE Systems Inc. GVP $37.1 $15.8 $54.6 32.9% 7.5% 12.6% 0.3x 3.8x 0.3x n/a 15.4%Mentor Graphics Corp MENT $1,926.7 $1,997.0 $1,077.8 83.4% 19.7% 7.6% 1.9x 9.4x 1.8x 7.4x 23.5%Parametric Technology Corporation PMTC $2,769.6 $2,889.3 $1,257.2 70.5% 17.9% 3.2% 2.3x 12.8x 2.1x 8.9x -7.9%Stratasys, Inc. SSYS $3,012.1 $2,960.3 $187.7 53.3% 22.3% 27.8% 15.8x 70.8x 7.7x 30.7x 113.6%Synopsys Inc SNPS $5,056.1 $4,533.0 $1,805.7 82.3% 19.4% 13.1% 2.5x 13.0x 2.3x 8.1x 14.6%

Median: $3,456.3 $3,240.4 $1,167.5 84.5% 20.2% 12.9% 2.6x 12.9x 2.4x 8.9x 22.6%

TTM Revenue Growth 12.9%TTM EBITDA Growth 15.5%TTM Earnings Growth 12.6%Gross Profit Margin 84.5%EBITDA Margin 20.2%Net Income Margin 10.8%SG&A Expenses as a % of Total Revenue 34.3%R&D Expenses as a % of Total Revenue 17.7%







0%

1%

2%

3%

4%

5%

6%

7%

8%Engineering & PLM Software Stock Market Return: Jan 2013

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


American Software, Inc. AMSW.A $233.7 $175.4 $103.2 54.5% 16.0% 3.3% 1.7x 10.6x 1.5x n/a -4.1%Oracle Corporation ORCL $168,114.9 $154,603.9 $37,230.0 79.9% 46.5% 1.4% 4.2x 8.9x 3.9x 8.0x 25.9%QAD Inc. QADA $213.6 $160.6 $251.6 57.8% 8.0% 2.9% 0.6x 8.0x 0.6x 7.0x 7.4%Sage Group plc LSE:SGE $6,140.9 $6,371.5 $2,160.7 93.7% 29.6% 0.5% 2.9x 10.0x n/a n/a 10.7%SAP SAP $97,473.6 $101,040.3 $21,388.4 69.2% 30.4% 14.0% 4.7x 15.5x 4.1x 11.8x 35.1%

Median: $6,140.9 $6,371.5 $2,160.7 69.2% 29.6% 2.9% 2.9x 10.0x 2.7x 8.0x 10.7%

TTM Revenue Growth 2.9%TTM EBITDA Growth -3.3%TTM Earnings Growth 1.9%Gross Profit Margin 69.2%EBITDA Margin 29.6%Net Income Margin 17.4%SG&A Expenses as a % of Total Revenue 31.0%R&D Expenses as a % of Total Revenue 13.4%


Levered FCF Margin 27.6%Cash from Operations Growth (YoY) -8.0%Cash from Investing Growth (YoY) -100.0%Cash from Financing Growth (YoY) -52.5%Levered FCF Growth (YoY) 32.0%





0%

1%

2%

3%

4%

5%

6%

7%

8%Enterprise Resource Planning Software Stock Market Return: Jan 2013

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


ACI Worldwide, Inc. ACIW $1,872.3 $2,181.5 $577.5 65.9% 19.1% 22.5% 3.8x 19.8x 2.8x 9.6x 56.5%Bottomline Technologies EPAY $1,092.5 $985.4 $242.0 53.5% 9.3% 14.9% 4.1x 43.7x 3.8x 20.7x 6.4%DST Systems, Inc. DST $2,958.7 $3,629.1 $2,576.6 15.3% 15.5% 7.9% 1.4x 9.1x 1.9x 8.1x 37.1%Fair Isaac Corporation FICO $1,599.7 $2,012.9 $696.1 70.1% 27.5% 9.8% 2.9x 10.5x 2.6x 8.9x 24.4%Fiserv FISV $10,719.2 $13,861.2 $4,482.0 42.1% 29.8% 3.3% 3.1x 10.4x 2.9x 9.0x 27.7%Intuit Inc INTU $18,467.8 $18,408.8 $4,192.0 81.9% 31.3% 6.0% 4.4x 14.0x 3.9x 10.2x 10.5%NetSol Technologies Inc. KASE:NETS $15.6 $18.5 $27.3 58.0% 48.3% 33.9% 0.7x 1.4x n/a n/a 93.2%Sage Group plc LSE:SGE $6,140.9 $6,371.5 $2,160.7 93.7% 29.6% 0.5% 2.9x 10.0x n/a n/a 10.7%

Median: $2,415.5 $2,905.3 $1,428.4 62.0% 28.6% 8.8% 3.0x 10.4x 2.9x 9.3x 26.0%



Levered FCF Margin 13.6%Cash from Operations Growth (YoY) -12.8%Cash from Investing Growth (YoY) -2.0%Cash from Financing Growth (YoY) 39.0%Levered FCF Growth (YoY) -4.3%





0%

1%

2%

3%

4%

5%

6%

7%

8%Financial & Accounting Software Stock Market Return: Jan 2013

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


Activision Blizzard ATVI $12,684.8 $9,320.8 $4,856.0 65.8% 32.4% 2.1% 1.9x 5.9x 2.0x 5.6x -7.6%Electronic Arts Inc. EA $4,799.8 $3,861.8 $3,956.0 63.6% 9.9% 2.4% 1.0x 9.8x 0.9x 5.4x -15.3%GameLoft SA ENXTPA:GF $546.5 $487.2 $241.8 87.4% 12.2% 21.1% 2.0x 16.6x n/a n/a -1.1%Konami Corporation TSE: 9766 $2,941.4 $2,647.8 $2,675.1 32.5% 15.3% -12.4% 1.0x 6.5x 0.9x 4.8x -19.5%Majesco Entertainment Company COOL $24.6 $6.5 $132.3 32.9% 4.2% 5.6% 0.0x 1.2x 0.1x n/a -76.0%Take-Two Interactive TTWO $1,104.5 $1,101.7 $1,063.1 36.2% -6.4% 23.6% 1.0x n/a 0.6x 3.1x -22.0%Ubisoft Entertainment ENXTPA:UB $915.2 $1,115.5 $1,402.5 68.9% 24.7% 6.4% 0.8x 3.2x n/a n/a 23.5%

Median: $1,104.5 $1,115.5 $1,402.5 63.6% 12.2% 5.6% 1.0x 6.2x 0.9x 5.1x -15.3%



Levered FCF Margin 9.7%Cash from Operations Growth (YoY) -0.3%Cash from Investing Growth (YoY) 1.0%Cash from Financing Growth (YoY) -42.9%Levered FCF Growth (YoY) 63.3%





0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Gaming Software Stock Market Return: Jan 2013

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


Accretive Health AH $1,255.7 $1,059.3 $973.6 20.7% 2.9% 32.2% 1.1x 36.9x 1.1x 13.4x -51.9%Allscripts Healthcare Solutions Inc. MDRX $1,899.8 $2,267.8 $1,446.3 41.9% 12.1% 0.2% 1.6x 13.0x 1.5x 7.2x -42.1%Cerner Corporation CERN $14,162.6 $13,320.4 $2,610.1 78.8% 27.3% 20.9% 5.1x 18.7x 4.6x 14.5x 35.6%Computer Programs and Sys, Inc. CPSI $582.8 $563.2 $183.3 44.0% 24.2% 5.7% 3.1x 12.7x 2.7x 9.7x -8.1%Epocrates EPOC $290.9 $211.7 $110.1 59.8% -2.2% -3.4% 1.9x n/a 1.9x 17.0x 20.5%Greenway Medical Technologies, Inc GWAY $440.5 $405.9 $134.7 55.7% 5.9% 27.4% 3.0x 51.2x 2.5x 17.4x n/aMedAssets MDAS $1,154.5 $2,062.5 $640.1 78.3% 30.7% 10.7% 3.2x 10.5x 3.1x 9.6x 85.3%Merge Healthcare MRGE $250.5 $457.0 $248.9 60.2% 12.5% 7.1% 1.8x 14.7x 1.8x 8.1x -50.9%Quality Systems, Inc. QSII $1,085.9 $979.2 $457.9 60.0% 23.6% 9.6% 2.1x 9.1x 2.0x 7.3x -55.0%

Median: $1,085.9 $979.2 $457.9 59.8% 12.5% 9.6% 2.1x 13.8x 2.0x 9.7x -25.1%



Levered FCF Margin 3.7%Cash from Operations Growth (YoY) 8.2%Cash from Investing Growth (YoY) -50.5%Cash from Financing Growth (YoY) -42.0%Levered FCF Growth (YoY) 27.1%





0%

2%

4%

6%

8%

10%

12%

14%Healthcare Software Stock Market Return: Jan 2013

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


Hewlett Packard HPQ $32,163.9 $49,695.9 $118,680.0 23.5% 12.1% -5.0% 0.4x 3.5x 0.4x 3.7x -41.0%IBM IBM $229,455.3 $251,719.3 $104,507.0 48.1% 25.1% -2.3% 2.4x 9.6x 2.4x 8.7x 5.4%Microsoft Corporation MSFT $229,927.9 $176,047.9 $72,930.0 75.4% 39.6% 1.2% 2.4x 6.1x 2.1x 5.0x -7.0%Oracle Corporation ORCL $168,114.9 $154,603.9 $37,230.0 79.9% 46.5% 1.4% 4.2x 8.9x 3.9x 8.0x 25.9%SAP AG SAP $97,473.6 $101,040.3 $21,388.4 69.2% 30.4% 14.0% 4.7x 15.5x 4.1x 11.8x 35.1%

Median: $168,114.9 $154,603.9 $72,930.0 69.2% 30.4% 1.2% 2.4x 8.9x 2.4x 8.0x 5.4%








0%

1%

2%

3%

4%

5%

6%

7%

8%IT Conglomerates Software Stock Market Return: Jan 2013

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


Epocrates EPOC $290.9 $211.7 $110.1 59.8% -2.2% -3.4% 1.9x n/a 1.9x 17.0x 20.5%Glu Mobile, Inc. GLUU $170.8 $146.7 $87.5 89.8% -9.9% 32.2% 1.7x n/a 1.6x n/a -22.9%Gree TSE:3632 $3,472.4 $3,235.6 $1,891.6 88.2% 47.1% 49.5% 1.7x 3.6x n/a n/a -48.3%Millennial Media Inc MM $904.0 $781.6 $177.7 40.5% -1.0% 71.4% 4.4x n/a 3.1x 58.4x n/aMyriad Group AG MYRN $157.8 $155.7 $51.1 18.3% -23.8% -34.6% 3.0x n/a n/a n/a -40.6%NQ Mobile Inc. NQ $298.3 $177.8 $74.6 75.0% 5.9% 118.6% 2.4x 40.4x 1.3x 4.1x -3.7%Opera OB:OPERA $746.7 $681.7 $216.0 44.6% 27.8% 34.0% 3.2x 11.4x n/a n/a 25.8%Qihoo 360 Technology Co. Ltd QIHU $3,648.6 $3,302.0 $288.4 89.9% 21.7% 130.1% 11.4x 52.8x 7.5x 24.8x 68.9%Synchronoss Technologies, Inc. SNCR $906.3 $797.5 $273.7 57.7% 22.2% 19.5% 2.9x 13.2x 2.6x 8.2x -28.8%TeleNav TNAV $328.8 $121.0 $209.2 72.6% 16.1% -3.7% 0.6x 3.6x 0.6x 15.2x 6.3%Velti Plc VELT $241.8 $227.8 $260.0 58.7% 11.6% 62.9% 0.9x 7.5x 0.7x 3.1x -57.5%Zynga, Inc ZNGA $2,124.6 $901.5 $1,281.3 72.5% 4.2% 12.4% 0.7x 16.7x 0.9x 10.4x -74.2%

Median: $537.8 $454.8 $212.6 66.1% 8.8% 33.1% 2.2x 12.3x 1.6x 12.8x -22.9%

TTM Revenue Growth 33.1%TTM EBITDA Growth 18.2%TTM Earnings Growth -28.6%Gross Profit Margin 66.1%EBITDA Margin 8.8%Net Income Margin -3.1%SG&A Expenses as a % of Total Revenue 38.2%R&D Expenses as a % of Total Revenue 20.8%







0%

2%

4%

6%

8%

10%

12%

14%Mobile Solutions/Content Software Stock Market Return: Jan 2013

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


Allot Communications Ltd. ALLT $436.5 $292.4 $104.8 70.4% 13.7% 34.7% 2.8x 20.4x 2.3x 10.7x -12.5%Aruba Networks, Inc. ARUN $2,591.4 $2,213.9 $571.0 70.9% 7.1% 22.8% 3.9x 54.5x 3.4x 14.0x 3.9%Brocade Communications Systems, BRCD $2,609.3 $2,497.3 $2,265.9 62.3% 21.8% 4.8% 1.1x 5.1x 1.1x 4.1x 2.0%Cisco Systems, Inc. CSCO $109,211.2 $80,553.2 $47,252.0 61.0% 28.3% 5.4% 1.7x 6.0x 1.6x 5.1x 4.7%Compuware Corporation CPWR $2,521.5 $2,526.7 $970.7 66.0% 16.8% -2.3% 2.6x 15.5x 2.5x 11.2x 48.2%F5 Networks, Inc. FFIV $8,241.1 $7,723.3 $1,420.3 83.0% 33.4% 17.8% 5.4x 16.3x 4.8x 11.7x -12.4%Juniper Networks, Inc. JNPR $11,538.6 $9,688.5 $4,365.4 62.1% 12.5% -1.9% 2.2x 17.8x 2.1x 8.6x 6.9%Keynote Systems, Inc. KEYN $285.0 $233.8 $125.2 47.9% 13.1% 12.5% 1.9x 14.3x 1.7x 9.3x -20.2%Riverbed Technology, Inc. RVBD $3,112.3 $2,579.2 $836.9 75.5% 16.1% 15.2% 3.1x 19.2x 2.5x 8.6x -19.0%

Median: $2,609.3 $2,526.7 $970.7 66.0% 16.1% 12.5% 2.6x 16.3x 2.3x 9.3x 2.0%



Levered FCF Margin 17.5%Cash from Operations Growth (YoY) 5.6%Cash from Investing Growth (YoY) -36.7%Cash from Financing Growth (YoY) -95.5%Levered FCF Growth (YoY) -13.2%





February 2013 Monthly Flash Report

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Networking/Network Performance Mgmt Software Stock Market Return: Jan 2013

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


AVG Technologies N.V. AVG $740.0 $806.2 $356.0 84.7% 27.9% 30.7% 2.3x 8.1x 2.0x 6.9x n/aCheck Point Software Tech Ltd. CHKP $10,240.0 $8,736.7 $1,342.7 88.4% 56.7% 7.7% 6.5x 11.5x 6.1x 10.5x -11.2%Commtouch Software Ltd. CTCH $73.5 $56.2 $23.9 81.8% 11.7% 3.9% 2.3x 20.0x 1.9x 10.9x -11.9%Fortinet Inc. FTNT $3,773.0 $3,359.3 $533.6 72.4% 21.0% 23.1% 6.3x 30.0x 5.3x 20.0x 3.4%Guidance Software, Inc. GUID $320.3 $291.0 $129.5 71.9% 5.5% 23.8% 2.2x 41.1x 2.0x 17.8x 66.9%Imperva IMPV $824.8 $722.1 $104.2 79.0% -5.0% 33.1% 6.9x n/a 6.0x 120.7x 4.0%Palo Alto Networks, Inc PANW $3,789.4 $3,467.8 $284.0 71.9% 0.3% 86.7% 12.2x 3866.0x 8.1x 84.0x n/aProofpoint, Inc. PFPT $419.3 $336.5 $106.3 68.8% -11.3% 29.9% 3.2x n/a 2.7x n/a n/aSymantec Corporation SYMC $15,003.6 $13,827.6 $6,839.0 84.3% 26.9% 1.7% 2.0x 7.5x 2.0x 6.0x 26.6%Trend Micro TSE:4704 $3,853.4 $2,634.6 $1,084.9 81.3% 31.9% -2.6% 2.4x 7.6x n/a n/a -7.8%VASCO Data Security International VDSI $305.3 $209.1 $154.0 64.6% 16.0% -8.4% 1.4x 8.5x 1.4x n/a -3.9%Websense, Inc. WBSN $534.0 $537.4 $361.5 83.6% 17.1% -0.7% 1.5x 8.7x 1.5x 12.4x -22.6%

Median: $782.4 $764.2 $320.0 80.2% 16.6% 15.4% 2.4x 10.1x 2.0x 12.4x -3.9%



Levered FCF Margin 9.9%Cash from Operations Growth (YoY) 24.1%Cash from Investing Growth (YoY) -31.6%Cash from Financing Growth (YoY) 31.9%Levered FCF Growth (YoY) 4.0%





-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%Security Software Stock Market Return: Jan 2013

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


Brocade Communications Systems, BRCD $2,609.3 $2,497.3 $2,265.9 62.3% 21.8% 4.8% 1.1x 5.1x 1.1x 4.1x 2.0%CA, Inc. ORCL $168,114.9 $154,603.9 $37,230.0 79.9% 46.5% 1.4% 4.2x 8.9x 3.9x 8.0x 25.9%Cisco Systems, Inc. PVSW $152.0 $106.3 $50.7 83.7% 9.0% 2.8% 2.1x 23.2x 2.1x 17.5x 58.9%CommVault Systems, Inc. SPLK $3,250.4 $2,977.0 $176.9 89.7% -7.2% 76.0% 16.8x n/a 12.2x n/a n/aEMC TIBX $3,763.8 $3,563.4 $1,024.6 72.4% 20.9% 11.3% 3.5x 16.6x 3.2x 10.9x -10.1%FalconStor Software, Inc. FALC $127.4 $102.1 $78.4 71.8% -12.1% -6.6% 1.3x n/a 1.5x n/a -4.1%IBM IBM $229,455.3 $251,719.3 $104,507.0 48.1% 25.1% -2.3% 2.4x 9.6x 2.4x 8.7x 5.4%Informatica Corporation INFA $3,993.6 $3,460.5 $811.6 83.9% 22.2% 3.5% 4.3x 19.2x 4.0x 14.4x -12.5%NetApp, Inc. NTAP $12,898.2 $8,556.6 $6,318.4 58.9% 13.4% 6.0% 1.4x 10.1x 1.3x 6.7x -4.6%Oracle Corporation ORCL $168,114.9 $154,603.9 $37,230.0 79.9% 46.5% 1.4% 4.2x 8.9x 3.9x 8.0x 25.9%Pervasive Software Inc. PVSW $152.0 $106.3 $50.7 83.7% 9.0% 2.8% 2.1x 23.2x 2.1x 17.5x 58.9%Splunk, Inc. SPLK $3,250.4 $2,977.0 $176.9 89.7% -7.2% 76.0% 16.8x n/a 12.2x n/a n/aTIBCO Software Inc. TIBX $3,763.8 $3,563.4 $1,024.6 72.4% 20.9% 11.3% 3.5x 16.6x 3.2x 10.9x -10.1%

Median: $3,763.8 $3,460.5 $1,024.6 79.9% 20.9% 3.5% 3.5x 13.3x 3.2x 9.8x 2.0%



Levered FCF Margin 16.3%Cash from Operations Growth (YoY) 12.5%Cash from Investing Growth (YoY) -23.5%Cash from Financing Growth (YoY) -0.4%Levered FCF Growth (YoY) -1.4%






0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Storage, Data Management & Integration Software Stock Market Return: Jan 2013

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


American Software, Inc. AMSW.A $233.7 $175.4 $103.2 54.5% 16.0% 3.3% 1.7x 10.6x 1.5x n/a -4.1%Aspen Technology, Inc. AZPN $2,859.8 $2,684.5 $274.1 81.7% 7.6% 22.9% 9.8x 128.3x 8.2x 49.5x 69.9%Manhattan Associates, Inc. MANH $1,344.2 $1,241.2 $376.2 57.0% 22.8% 14.3% 3.3x 14.5x 3.0x 11.7x 56.2%The Descartes Systems Group Inc. TSX:DSG $588.8 $548.4 $122.7 66.0% 28.4% 10.2% 4.5x 15.7x 3.9x 13.1x 17.4%

Median: $966.5 $894.8 $198.4 61.5% 19.4% 12.3% 3.9x 15.1x 3.5x 13.1x 36.8%








0%

2%

4%

6%

8%

10%

12%Supply Chain Management & Logistics Software Stock Market Return: Jan 2013

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


BMC Software Inc. BMC $5,937.0 $6,098.5 $2,197.5 72.5% 27.7% 1.3% 2.8x 10.0x 2.7x 6.6x 14.6%CA Technologies CA $11,316.0 $10,197.0 $4,680.0 86.3% 36.1% -1.6% 2.2x 6.0x 2.2x 5.8x -3.7%Citrix Systems, Inc. CTXS $13,660.1 $12,731.5 $2,586.1 87.5% 23.6% 17.2% 4.9x 20.9x 4.3x 13.8x 12.2%Netscout Systems, Inc. NTCT $1,088.1 $961.9 $341.9 79.0% 25.1% 15.1% 2.8x 11.2x 2.5x 9.6x 26.0%Red Hat, Inc. RHT $10,733.9 $9,847.5 $1,277.9 85.0% 20.6% 18.2% 7.7x 37.3x 6.6x 23.1x -97.1%SolarWinds, Inc. SWI $4,053.9 $3,858.1 $269.0 93.2% 49.2% 35.6% 14.3x 29.1x 12.3x 23.4x 72.2%VMWare, Inc. VMW $32,786.1 $28,605.2 $4,605.0 84.4% 26.7% 22.2% 6.2x 23.2x 5.4x 14.3x -16.2%

Median: $10,733.9 $9,847.5 $2,197.5 85.0% 26.7% 17.2% 4.9x 20.9x 4.3x 13.8x 12.2%








0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Systems Management Software Stock Market Return: Jan 2013

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


Advent Software, Inc. ADVS $1,237.3 $1,138.9 $358.8 68.7% 21.9% 10.0% 3.2x 14.5x 3.0x 9.4x -6.1%Broadridge Financial BR $2,880.8 $3,193.4 $2,336.3 26.2% 15.1% 3.4% 1.4x 9.1x 1.3x 7.0x -1.7%Fidessa LSE:FDSA $901.4 $821.1 $452.9 21.3% 20.4% 0.1% 1.8x 8.9x n/a n/a -6.8%Jack Henry & Associates, Inc. JKHY $3,570.3 $3,479.3 $1,072.6 42.0% 31.7% 7.9% 3.2x 10.2x 3.1x 9.3x 21.3%MSCI, Inc. MSCI $4,119.5 $4,550.6 $950.1 70.0% 45.7% 5.5% 4.8x 10.5x 4.5x 9.9x 3.6%SS&C Corporation SSNC $1,784.5 $2,775.0 $551.8 45.7% 38.7% 48.8% 5.0x 13.0x 4.0x 10.0x 20.6%

Median: $2,332.7 $2,984.2 $751.0 43.8% 26.8% 6.7% 3.2x 10.3x 3.1x 9.4x 0.9%



Levered FCF Margin 17.0%Cash from Operations Growth (YoY) 2.5%Cash from Investing Growth (YoY) 0.9%Cash from Financing Growth (YoY) 25.1%Levered FCF Growth (YoY) 12.6%






0%

1%

2%

3%

4%

5%

6%

7%

8%Vertical - Finance Software Stock Market Return:Jan 2013

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


Blackbaud, Inc. BLKB $1,125.7 $1,346.6 $447.4 54.9% 11.6% 20.6% 3.0x 25.8x 2.7x 14.7x -18.1%Constellation TSX:CSU $2,649.4 $2,627.0 $828.6 33.7% 23.1% 10.9% 3.2x 13.8x 2.7x 12.5x 41.6%EPIQ Systems, Inc. EPIQ $443.0 $672.7 $325.1 59.6% 23.1% 28.5% 2.1x 8.9x 1.8x 6.7x 1.2%Guidewire Software, Inc. GWRE $1,835.0 $1,649.5 $260.1 57.7% 7.2% 28.2% 6.3x 88.1x 5.5x 58.2x 83.7%Micros Systems MCRS $3,651.3 $3,022.5 $1,204.9 53.4% 21.7% 14.3% 2.5x 11.6x 2.2x 10.0x -7.4%PROS Holdings PRO $605.7 $533.0 $117.8 71.3% 8.8% 21.9% 4.5x 51.4x 4.0x 23.9x 36.0%Sapiens International SPNS $193.4 $160.3 $107.3 41.6% 14.3% 78.9% 1.5x 10.4x n/a n/a 17.6%The Active Network, Inc. ACTV $334.9 $259.2 $418.9 54.2% 5.2% 24.2% 0.6x 11.9x 0.6x 5.5x -62.8%

Median: $865.7 $1,009.6 $372.0 54.5% 13.0% 23.0% 2.8x 12.9x 2.7x 12.5x 9.4%








0%

2%

4%

6%

8%

10%

12%

14%Vertical - Other Software Stock Market Return: Jan 2013

Vertical - Other S&P NASDAQ SEG SW Index

SEG SaaS Index Category Performance


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


SEG SaaS Index $747.0 $674.6 $170.8 70.7% 9.2% 25.0% 4.9x 35.7x 4.4x 19.7x 11.4% CRM & Marketing $603.5 $527.7 $211.5 74.1% 6.2% 28.4% 3.2x 26.2x 2.9x 18.7x -23.5% ERP & Supply Chain $571.3 $501.6 $77.1 69.5% 5.9% 30.7% 6.5x 81.3x 5.4x 33.3x 54.4% Vertically Focused $1,280.6 $1,194.6 $270.3 65.9% 16.8% 21.6% 4.6x 25.1x 3.9x 15.4x 32.1% Workforce Management $2,211.0 $2,145.4 $176.6 56.2% -18.0% 23.4% 10.8x 63.2x 8.5x 33.6x 52.3%

Category Name








0%

1%

2%

3%

4%

5%

6%

7%SEG SaaS Index Stock Market Return: Jan 2013

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


Constant Contact CTCT $460.0 $366.5 $252.2 70.8% 9.2% 17.6% 1.5x 15.8x 1.3x 8.2x -39.7%ExactTarget, Inc. ET $1,497.1 $1,285.1 $292.3 64.6% 1.4% 40.9% 4.4x n/a 3.7x n/a n/aLivePerson LPSN $747.0 $643.7 $157.4 77.4% 11.2% 18.3% 4.1x 36.5x 3.7x 18.7x 11.4%Responsys MKTG $372.2 $272.7 $162.8 53.7% 12.2% 20.7% 1.7x 13.7x 1.5x 9.2x -34.8%Salesforce.com CRM $25,193.1 $25,166.1 $2,847.4 77.6% 3.1% 36.1% 8.8x 283.7x 6.9x 37.6x 47.4%Vocus VOCS $363.1 $411.7 $170.8 80.2% -3.5% 48.7% 2.4x n/a 2.1x 19.7x -23.5%

Median: $603.5 $527.7 $211.5 74.1% 6.2% 28.4% 3.2x 26.2x 2.9x 18.7x -23.5%

TTM Revenue Growth 28.4%TTM EBITDA Growth -16.6%TTM Earnings Growth -47.2%Gross Profit Margin 74.1%EBITDA Margin 6.2%Net Income Margin -7.2%SG&A Expenses as a % of Total Revenue 53.8%R&D Expenses as a % of Total Revenue 13.7%


Levered FCF Margin 10.2%Cash from Operations Growth (YoY) -7.1%Cash from Investing Growth (YoY) -144.5%Cash from Financing Growth (YoY) -67.8%Levered FCF Growth (YoY) 17.3%






0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%CRM & Marketing SaaS Stock Market Return: Jan 2013

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


E2open, Inc EOPN $447.4 $415.0 $74.4 69.0% 5.9% 22.2% 5.6x 94.4x 4.9x n/a n/aFleetmatics FLTX $867.0 $891.1 $127.5 72.1% 19.6% 38.1% 7.0x 35.7x 6.0x 21.5x n/aNetsuite N $5,032.1 $4,846.3 $308.8 69.1% -5.4% 30.7% 15.7x n/a 12.2x 116.6x 67.7%SciQuest SQI $369.1 $321.8 $66.5 69.5% 5.7% 24.4% 4.8x 85.3x 3.7x 21.4x 13.1%SPS Commerce SPSC $571.3 $501.6 $77.1 71.4% 8.4% 33.0% 6.5x 77.3x 5.4x 45.1x 54.4%

Median: $571.3 $501.6 $77.1 69.5% 5.9% 30.7% 6.5x 81.3x 5.4x 33.3x 54.4%



Levered FCF Margin -1.7%Cash from Operations Growth (YoY) 51.0%Cash from Investing Growth (YoY) -114.2%Cash from Financing Growth (YoY) 2971.7%Levered FCF Growth (YoY) 37.0%






0%

1%

2%

3%

4%

5%

6%

7%ERP & Supply Chain SaaS Stock Market Return: Jan 2013

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


Athenahealth, Inc ATHN $3,136.4 $2,956.2 $422.3 60.5% 12.1% 30.3% 7.0x 57.9x 5.8x 28.5x 48.6%DealerTrack TRAK $1,348.8 $1,300.3 $388.9 43.2% 16.9% 10.1% 3.3x 19.8x 3.0x 11.4x 15.6%Ebix Inc. EBIX $622.0 $674.6 $189.4 80.8% 41.2% 18.4% 3.6x 8.6x 3.1x 6.9x -34.1%Ellie Mae ELLI $514.0 $420.1 $101.8 77.3% 25.5% 83.5% 4.1x 16.2x 3.5x 11.7x 240.1%Medidata Solutions MDSO $1,212.4 $1,088.9 $218.3 71.3% 16.4% 18.4% 5.0x 30.4x 4.4x 20.3x 123.9%RealPage RP $1,760.6 $1,749.4 $322.2 60.1% 16.7% 24.9% 5.4x 32.6x 4.7x 19.1x -9.3%

Median: $1,280.6 $1,194.6 $270.3 65.9% 16.8% 21.6% 4.6x 25.1x 3.9x 15.4x 32.1%









0%

2%

4%

6%

8%

10%

12%Vertically Focused SaaS Stock Market Return: Jan 2013

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


Callidus Software Inc. CALD $151.3 $185.2 $95.0 47.0% -15.0% 13.3% 2.0x n/a 1.8x 34.7x -38.0%Cornerstone OnDemand CSOD $1,649.8 $1,589.6 $117.9 70.7% -21.0% 61.5% 13.5x n/a 10.1x n/a 79.1%The Ultimate Software Group, Inc. ULTI $2,772.2 $2,701.2 $332.3 56.5% 12.9% 23.4% 8.1x 63.2x 6.9x 32.6x 52.3%Workday, Inc. WDAY $8,867.7 $8,097.4 $235.3 55.9% -35.7% n/a 34.4x n/a 21.6x n/a n/a

Median: $2,211.0 $2,145.4 $176.6 56.2% -18.0% 23.4% 10.8x 63.2x 8.5x 33.6x 52.3%

TTM Revenue Growth 23.4%TTM EBITDA Growth -31.5%TTM Earnings Growth 5.2%Gross Profit Margin 56.2%EBITDA Margin -18.0%Net Income Margin -27.9%SG&A Expenses as a % of Total Revenue 56.2%R&D Expenses as a % of Total Revenue 17.9%








0%

1%

2%

3%

4%

5%

6%

7%Workforce Management SaaS Stock Market Return: Jan 2013

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


Bazaarvoice, Inc BV $552.3 $410.8 $148.4 65.4% -24.2% 57.9% 2.8x n/a 2.3x n/a n/aConcur CNQR $3,687.3 $3,457.7 $462.2 71.9% 9.7% 25.1% 7.5x 77.1x 5.9x 26.9x 27.8%Demandware, Inc. DWRE $944.7 $842.1 $79.5 69.4% -4.7% 40.5% 10.6x n/a 9.4x n/a n/aIntraLinks Holdings IL $352.3 $362.7 $216.7 71.2% 14.2% 1.8% 1.7x 11.8x 1.7x 9.6x -5.5%OpenTable, Inc. OPEN $1,197.3 $1,111.1 $161.6 74.1% 30.6% 15.9% 6.9x 22.5x 6.1x 14.0x 9.4%Qualys, Inc. QLYS $411.5 $452.2 $91.4 79.9% 11.3% 20.0% 4.9x 43.7x 4.4x 29.1x n/aService-now.com NOW $3,465.6 $3,150.9 $243.7 57.3% -9.9% 66.1% 12.9x n/a 8.1x 266.0x n/aTangoe TNGO $547.3 $520.4 $154.5 54.3% 8.5% 47.2% 3.4x 39.6x 2.9x 17.5x -0.1%

Median: $748.5 $681.2 $158.1 70.3% 9.1% 32.8% 5.9x 39.6x 5.1x 22.2x 4.6%

TTM Revenue Growth 66.1%TTM EBITDA Growth 4.1%TTM Earnings Growth -51.2%Gross Profit Margin 57.3%EBITDA Margin -9.9%Net Income Margin -3.9%SG&A Expenses as a % of Total Revenue 56.6%R&D Expenses as a % of Total Revenue 16.1%








0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Other Public SaaS Companies SaaS Stock Market Return: Jan 2013

Other SaaS S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ RevenueForward

EV/ EBITDA


Bazaarvoice, Inc BV $552.3 $410.8 $148.4 65.4% -24.2% 57.9% 2.8x n/a 2.3x n/a n/aConcur CNQR $3,687.3 $3,457.7 $462.2 71.9% 9.7% 25.1% 7.5x 77.1x 5.9x 26.9x 27.8%Demandware, Inc. DWRE $944.7 $842.1 $79.5 69.4% -4.7% 40.5% 10.6x n/a 9.4x n/a n/aIntraLinks Holdings IL $352.3 $362.7 $216.7 71.2% 14.2% 1.8% 1.7x 11.8x 1.7x 9.6x -5.5%OpenTable, Inc. OPEN $1,197.3 $1,111.1 $161.6 74.1% 30.6% 15.9% 6.9x 22.5x 6.1x 14.0x 9.4%Qualys, Inc. QLYS $411.5 $452.2 $91.4 79.9% 11.3% 20.0% 4.9x 43.7x 4.4x 29.1x n/aService-now.com NOW $3,465.6 $3,150.9 $243.7 57.3% -9.9% 66.1% 12.9x n/a 8.1x 266.0x n/aTangoe TNGO $547.3 $520.4 $154.5 54.3% 8.5% 47.2% 3.4x 39.6x 2.9x 17.5x -0.1%

Median: $748.5 $681.2 $158.1 70.3% 9.1% 32.8% 5.9x 39.6x 5.1x 22.2x 4.6%

TTM Revenue Growth 66.1%TTM EBITDA Growth 4.1%TTM Earnings Growth -51.2%Gross Profit Margin 57.3%EBITDA Margin -9.9%Net Income Margin -3.9%SG&A Expenses as a % of Total Revenue 56.6%R&D Expenses as a % of Total Revenue 16.1%








0%

10%

20%

30%

40%

50%

60%Other Public SaaS Companies SaaS Stock Market Return: Jan 2013

Other SaaS S&P NASDAQ SEG SaaS

SEG Internet Index Category Performance


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


SEG Internet Index $945.6 $855.8 $386.2 66.5% 12.9% 19.4% 2.2x 13.2x 1.9x 10.0x -3.5% Ad Tech & Lead Generation $1,388.9 $1,385.8 $493.2 65.2% 14.0% 20.3% 2.0x 14.2x 1.9x 9.4x -15.0% Commerce $413.8 $292.0 $393.1 38.5% 7.4% 14.4% 0.9x 14.7x 0.9x 11.4x -3.3% Content & Media $1,402.4 $1,339.3 $426.6 53.2% 14.4% 9.2% 1.5x 11.0x 1.5x 8.7x 16.7% Gaming $1,972.75 $1,496.0 $887.8 71.2% 37.9% 21.9% 2.7x 5.5x 1.7x 4.5x 3.3% Infrastructure $475.63 $368.6 $253.3 63.2% 7.0% 12.9% 1.2x 11.4x 1.5x 9.2x -10.2% Services $1,003.36 $1,059.6 $282.4 69.5% 10.1% 37.1% 2.6x 13.4x 2.3x 10.5x -0.1% Social $1,302.49 $1,038.6 $240.8 68.8% 13.1% 50.9% 8.2x 43.6x 6.3x 29.2x 0.8%


Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 19.6%Avg Days Outstanding: Accounts Receivable 36Avg Days Outstanding: Accounts Payable 51Working Capital to TTM Operating Expense Ratio 0.5






0%

1%

2%

3%

4%

5%

6%

7%

8%

9%SEG Internet Index Stock Market Return: Jan 2013

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


Angie's List, Inc. ANGI $725.6 $674.9 $155.8 71.8% -31.0% 73.0% 4.3x n/a 3.2x n/a -14.9%Baidu.com, Inc. BIDU $37,860.5 $35,099.4 $3,578.5 78.1% 55.7% 53.8% 9.8x 17.6x 7.9x 14.2x -15.1%Bankrate, Inc. RATE $1,237.6 $1,360.3 $457.2 68.0% 24.6% 7.8% 3.0x 12.1x 2.8x 10.6x -47.1%Digital Generation, Inc. DGIT $277.0 $663.3 $386.6 65.0% 28.0% 19.2% 1.7x 6.1x 1.6x 4.9x -28.0%eHealth, Inc. EHTH $493.5 $362.7 $155.5 83.4% 13.3% 2.5% 2.3x 17.6x 2.2x 15.3x 50.5%Google Inc. GOOG $249,123.2 $208,245.2 $50,175.0 59.1% 32.4% 32.4% 4.2x 12.8x 3.4x 9.4x 30.3%Groupon GRPN $3,619.6 $2,423.9 $2,334.5 69.2% 6.7% 45.0% 1.0x 15.6x 0.9x 9.8x -72.9%InterActiveCorp IACI $3,648.8 $3,215.1 $2,800.9 64.6% 14.7% 36.0% 1.1x 7.8x 1.0x 5.5x -4.2%Marchex Inc. MCHX $137.8 $102.3 $138.3 41.7% 1.2% -5.7% 0.7x 61.4x 0.7x 5.7x -17.7%QuinStreet QNST $241.2 $233.1 $329.1 19.3% 13.0% -16.4% 0.7x 5.5x 0.8x 4.5x -41.4%ReachLocal, Inc. RLOC $374.1 $278.4 $455.4 50.1% 3.6% 21.3% 0.6x 17.1x 0.5x 10.0x 66.5%SINA Corporation SINA $3,639.9 $2,952.5 $529.3 53.2% 2.5% 9.6% 5.6x 224.5x 5.2x 56.2x -21.8%Sohu.com Inc. SOHU $1,820.9 $1,411.3 $1,067.2 65.4% 30.8% 25.2% 1.3x 4.3x 1.2x 4.0x -19.7%Tree.Com, Inc. TREE $198.7 $108.9 $64.2 94.6% -14.7% 14.9% 1.7x n/a 1.0x 7.1x 197.8%ValueClick, Inc. VCLK $1,540.1 $1,594.9 $660.9 62.3% 30.6% 18.0% 2.4x 7.9x 2.2x 6.9x 17.4%Yandex YNDX $7,922.9 $7,540.9 $941.9 75.0% 43.1% 43.6% 8.0x 18.6x 6.5x 14.6x 19.0%

Median: $1,388.9 $1,385.8 $493.2 65.2% 14.0% 20.3% 2.0x 14.2x 1.9x 9.4x -15.0%


Current Ratio 2.5xQuick Ratio 2.1xCash as Percent of Market Cap 19.6%Avg Days Outstanding: Accounts Receivable 32.5xAvg Days Outstanding: Accounts Payable 52.5xWorking Capital to TTM Operating Expense Ratio 0.4x






-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Internet Ad Tech and Lead Generation Stock Market Return: Jan 2013

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


1-800-FLOWERS.COM, Inc. FLWS $260.9 $255.6 $733.1 41.1% 5.6% 5.0% 0.3x 6.3x 0.3x 4.9x 39.6%Amazon.com, Inc. AMZN $120,683.3 $113,620.3 $61,093.0 24.8% 4.1% 27.1% 1.9x 45.3x 1.5x 23.5x 36.5%Bitauto Holdings Limited BITA $409.0 $328.4 $147.9 72.1% 13.6% 54.7% 2.2x 16.3x 1.7x 11.6x 125.2%Bluefly, Inc. BFLY $21.2 $22.1 $97.6 18.0% -23.8% 2.2% 0.2x n/a n/a n/a -64.8%BlueNile NILE $418.6 $389.0 $400.0 18.8% 3.9% 14.9% 1.0x 24.8x 0.9x 14.6x -16.9%DangDang DANG $330.3 $134.6 $765.1 13.2% -9.5% 55.3% 0.2x n/a 0.1x n/a -43.9%Digital River Inc. DRIV $515.9 $194.7 $386.2 82.9% 9.3% -3.0% 0.5x 5.4x 0.5x 2.6x -9.3%eBay Inc. EBAY $72,424.3 $67,535.3 $14,072.0 70.0% 29.3% 20.8% 4.8x 16.4x 4.1x 12.5x 77.1%Liquidity Services, Inc. LQDT $1,004.0 $958.1 $491.5 43.8% 19.9% 37.3% 1.9x 9.8x 1.7x 7.8x -7.6%Mecox Lane Limited MCOX $177.4 $134.7 $170.1 35.9% -13.7% -24.1% 0.8x n/a 0.9x n/a -58.2%Mercadolibre, Inc. MELI $3,902.9 $3,729.6 $373.6 73.7% 37.1% 25.0% 10.0x 26.9x 8.4x 23.2x 1.1%Overstock.com, Inc. OSTK $315.1 $221.6 $1,099.3 18.1% 2.6% 4.3% 0.2x 7.9x 0.2x 7.9x 98.5%PetMed Express, Inc. PETS $251.0 $205.5 $232.6 33.5% 11.7% -0.3% 0.9x 7.6x 0.9x 7.5x 4.5%Stamps.com STMP $421.2 $384.0 $115.7 76.0% 22.5% 13.9% 3.3x 14.7x 3.0x 11.4x -13.0%

Median: $413.8 $292.0 $393.1 38.5% 7.4% 14.4% 0.9x 14.7x 0.9x 11.4x -3.3%








0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Internet Commerce Internet Stock Market Return: Jan 2013

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


AOL, Inc. AOL $2,565.3 $1,822.2 $2,191.7 27.6% 19.4% -0.5% 0.8x 4.3x 0.8x 4.5x 89.1%DemandMedia DMD $719.8 $606.9 $380.6 52.4% 18.1% 17.1% 1.6x 8.8x 1.4x 5.3x 34.1%InterActiveCorp IACI $3,648.8 $3,215.1 $2,800.9 64.6% 14.7% 36.0% 1.1x 7.8x 1.0x 5.5x -4.2%Netflix NFLX $9,185.2 $8,837.1 $3,609.3 27.2% 2.6% 12.6% 2.4x 92.6x 2.1x 31.1x 37.5%Pandora P $1,959.3 $1,878.8 $383.4 32.3% -6.5% 59.3% 4.9x n/a 3.4x n/a -12.7%Shutterstock, Inc. SSTK $845.5 $856.4 $169.6 61.9% 14.4% 41.0% 5.0x 35.1x 4.4x 20.2x n/aTheStreet.com, Inc. TST $53.6 $16.8 $50.7 50.9% -2.4% -12.2% 0.3x n/a n/a n/a -14.7%WebMD Health Corp. WBMD $810.3 $640.9 $469.9 54.0% 6.0% -15.9% 1.4x 22.7x 1.5x 12.2x -41.0%XO Group XOXO $233.8 $161.1 $127.9 82.3% 14.3% 5.8% 1.3x 8.8x 1.2x 5.8x 16.7%Yahoo! Inc. YHOO $23,216.2 $19,202.2 $4,986.6 67.5% 29.2% 0.0% 3.9x 13.2x 4.2x 11.6x 26.9%

Median: $1,402.4 $1,339.3 $426.6 53.2% 14.4% 9.2% 1.5x 11.0x 1.5x 8.7x 16.7%






Balance Sheet Analysis (Content & Median)

Cash Flow Statement Analysis (Content & Median)


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Internet Content & Media Stock Market Return: Jan 2013

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


ChangYou.com CYOU $1,625.3 $1,580.8 $623.4 83.2% 60.9% 28.7% 2.5x 4.2x 2.3x 4.2x 19.7%Giant Interactive GA $1,463.8 $1,100.6 $345.2 86.6% 61.4% 20.1% 3.2x 5.2x 2.9x 4.8x 45.6%Netease NTES $6,079.0 $3,690.2 $1,315.7 68.6% 48.1% 12.5% 2.8x 5.8x 2.6x 5.3x -2.9%NCSoft KOSE:A036 $2,521.0 $2,095.5 $708.5 69.9% 23.3% 23.8% 3.0x 12.7x n/a n/a -51.5%Perfect World PWRD $567.5 $346.7 $455.6 81.9% 33.2% 2.5% 0.8x 2.3x 0.8x 2.4x 9.5%Sohu.com Inc. SOHU $1,820.9 $1,411.3 $1,067.2 65.4% 30.8% 25.2% 1.3x 4.3x 1.2x 4.0x -19.7%Tencent Holdings SEHK:700 $64,266.1 $62,036.2 $6,308.3 60.5% 42.6% 52.0% 9.8x 23.1x n/a n/a 43.1%Zynga, Inc. ZNGA $2,124.6 $901.5 $1,281.3 72.5% 4.2% 12.4% 0.7x 16.7x 0.9x 10.4x -74.2%

Median: $1,972.8 $1,496.0 $887.8 71.2% 37.9% 21.9% 2.7x 5.5x 1.7x 4.5x 3.3%








0%

1%

2%

3%

4%

5%

6%

7%

8%

9%Internet Gaming Stock Market Return: Jan 2013

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


8x8, Inc. EGHT $475.6 $429.1 $103.2 67.8% 13.4% 29.3% 4.2x 31.1x 3.5x 19.0x 49.1%Acme Packet, Inc. APKT $1,630.2 $1,266.7 $274.4 80.0% 3.1% -10.7% 4.6x 147.8x 4.5x 21.1x -17.3%Akamai Technologies, Inc. AKAM $7,224.7 $6,759.5 $1,373.9 68.6% 37.2% 18.6% 4.9x 13.2x 4.4x 9.9x 26.3%Brightcove Inc. BCOV $234.2 $206.1 $88.0 68.9% -10.1% 38.4% 2.3x n/a 1.9x 70.0x n/aBroadSoft, Inc. BSFT $945.6 $854.2 $164.8 80.3% 18.4% 19.4% 5.2x 28.2x 4.6x 16.6x 22.0%Digital River Inc. DRIV $515.9 $194.7 $386.2 82.9% 9.3% -3.0% 0.5x 5.4x 0.5x 2.6x -9.3%Envivio, Inc. ENVI $44.4 -$16.3 $46.9 63.2% -17.3% n/a n/a 2.0x n/a 1.4x n/aHarmonic Inc HLIT $605.5 $404.4 $530.5 44.6% 6.6% -3.4% 0.8x 11.5x 0.7x 5.8x -11.1%KIT digital, Inc. KITD $24.1 $8.1 $246.5 69.8% -9.3% 73.7% 0.0x n/a n/a n/a -96.3%Limelight Networks, Inc. LLNW $234.0 $106.5 $180.2 53.5% -2.6% 5.2% 0.6x n/a 0.6x 6.7x -27.6%Mitel Networks Corp. MITL $194.8 $421.1 $592.1 55.2% 13.5% -1.3% 0.7x 5.3x 0.7x 4.7x 14.9%Polycom, Inc. PLCM $1,935.0 $1,260.8 $1,392.6 59.1% 8.9% -0.7% 0.9x 10.1x 0.9x 5.8x -44.7%Rovi Corporation ROVI $1,854.9 $2,515.8 $650.6 83.1% 36.2% -4.5% 3.9x 10.7x 4.0x 8.6x -46.1%SeaChange International Inc. SEAC $360.0 $272.9 $188.9 45.2% 7.0% 12.5% 1.4x 20.5x 1.6x 10.0x 55.3%ShoreTel, Inc. SHOR $250.5 $218.4 $284.4 61.5% -4.3% 29.3% 0.8x n/a 0.7x 12.6x -34.3%Sonus Networks, Inc SONS $637.3 $368.6 $253.3 60.9% -3.0% -5.6% 1.5x n/a 1.4x n/a -12.0%Synacor, Inc SYNC $157.0 $122.7 $122.0 45.4% 7.9% 34.0% 1.0x 12.7x 0.9x 7.1x n/aTucows Inc. TCX $84.1 $83.1 $114.7 23.5% 6.4% 18.2% 0.7x 11.3x n/a n/a 175.0%VeriSign VRSN $6,658.7 $5,799.9 $873.6 80.8% 58.5% 13.2% 6.6x 11.3x 6.1x 9.7x 17.2%

Median: $475.6 $368.6 $253.3 63.2% 7.0% 12.9% 1.2x 11.4x 1.5x 9.2x -10.2%








0%

2%

4%

6%

8%

10%

12%

Internet Infrastructure Stock Market Return: Jan 2013

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


Angie's List, Inc. ANGI $725.6 $674.9 $155.8 71.8% -31.0% 73.0% 4.3x n/a 3.2x n/a -14.9%Bankrate RATE $1,237.6 $1,360.3 $457.2 68.0% 24.6% 7.8% 3.0x 12.1x 2.8x 10.6x -47.1%Carbonite, Inc. CARB $246.8 $180.5 $84.0 65.4% -6.2% 38.9% 2.1x n/a 1.8x n/a -3.5%LifeLock, Inc. LOCK $809.8 $1,083.1 $276.4 71.1% 8.5% 42.5% 3.9x 46.0x 3.5x 39.2x n/aMonster Worldwide, Inc. MWW $679.2 $700.0 $890.4 54.1% 16.0% -10.4% 0.8x 4.9x 0.8x 4.1x -19.4%Qihoo QIHU $3,648.6 $3,302.0 $288.4 89.9% 21.7% 130.1% 11.4x 52.8x 7.5x 24.8x 68.9%Shutterfly SFLY $1,196.9 $1,106.9 $640.6 54.0% 12.9% 35.4% 1.7x 13.4x 1.7x 10.4x 39.4%Tree.Com, Inc. TREE $198.7 $108.9 $64.2 94.6% -14.7% 14.9% 1.7x n/a 1.0x 7.1x 197.8%VistaPrint VPRT $1,228.4 $1,394.2 $1,107.8 65.7% 9.6% 19.8% 1.3x 13.1x 1.1x 9.5x -0.1%Zillow Z $1,265.1 $1,036.2 $116.9 88.0% 10.6% 76.9% 8.9x 83.8x 7.0x 35.5x 28.3%

Median: $1,003.4 $1,059.6 $282.4 69.5% 10.1% 37.1% 2.6x 13.4x 2.3x 10.5x -0.1%








0%

2%

4%

6%

8%

10%

12%

Internet Services Stock Market Return: Jan 2013

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


Facebook FB $67,118.1 $59,848.1 $5,089.0 73.2% 23.3% 37.1% 11.8x 50.4x 9.0x 17.2x n/aFriendFinder Networks Inc FFN $23.6 $488.8 $321.5 64.3% 21.6% -4.9% 1.5x 7.1x n/a n/a -42.5%Jive Software, Inc JIVE $985.9 $855.8 $113.7 60.5% -32.5% 47.1% 7.5x n/a 6.1x n/a 3.2%LinkedIn LNKD $13,301.1 $12,624.4 $972.3 87.1% 12.9% 86.2% 13.0x 100.6x 9.7x 41.3x 71.6%Mail.ru Group LSE:MAIL $6,928.6 $5,907.2 $602.1 75.5% 44.7% 75.4% 9.8x 21.9x n/a n/a 0.8%Renren Inc RENN $1,260.5 $368.0 $160.1 63.5% -44.0% 50.9% 2.3x n/a 1.6x n/a -39.6%Yelp, Inc. YELP $1,344.5 $1,221.4 $137.6 92.8% -7.5% 65.2% 8.9x n/a 6.4x 80.5x n/aYY, Inc. YY $735.6 $612.0 $105.9 54.1% 13.3% n/a 5.8x 43.6x 3.2x 12.6x n/a

Median: $1,302.5 $1,038.6 $240.8 68.8% 13.1% 50.9% 8.2x 43.6x 6.3x 29.2x 0.8%



Levered FCF Margin 2.2%Cash from Operations Growth (YoY) 52.1%Cash from Investing Growth (YoY) -27.9%Cash from Financing Growth (YoY) -41.6%Levered FCF Growth (YoY) n/a






0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%Internet Social Stock Market Return: Jan 2013

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


Ctrip CTRP $2,750.2 $2,243.2 $667.2 75.0% 17.8% 18.9% 3.4x 18.8x 2.8x 13.1x -20.9%Expedia EXPE $8,800.1 $7,799.6 $4,030.3 77.7% 15.9% 16.9% 1.9x 12.1x 1.8x 8.9x 101.6%HomeAway AWAY $1,991.8 $1,747.6 $280.4 83.8% 19.0% 21.8% 6.2x 32.8x 5.5x 18.6x -11.4%Kayak Software Corp KYAK $1,556.7 $1,378.9 $282.8 93.0% 19.1% 32.8% 4.9x 25.6x 3.9x 15.5x n/aMakeMyTrip MMYT $569.3 $476.3 $220.6 24.9% -3.0% 21.9% 2.2x n/a 5.0x 41.2x -34.9%Orbitz OWW $303.6 $591.7 $778.8 81.0% 14.3% 1.6% 0.8x 5.3x 0.7x 4.4x -21.0%Priceline PCLN $34,181.0 $31,098.0 $5,261.0 77.6% 36.0% 20.8% 5.9x 16.4x 5.1x 13.4x 29.5%Travelzoo TZOO $346.4 $284.8 $151.2 89.6% 20.5% 1.9% 1.9x 9.2x 1.8x 9.3x -15.2%

Median: $1,774.2 $1,563.2 $475.0 79.4% 18.4% 19.8% 2.8x 16.4x 3.4x 13.2x -15.2%








0%

2%

4%

6%

8%

10%

12%

14%Internet Travel Stock Market Return: Jan 2013

Travel S&P NASDAQ SEG Internet Index

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

Perhaps 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 are read and relied upon by more than Quarterly and Annual Software Industry Equity Reportssoftware and technology companies worldwide, and we speak with them often. Our

eighteen thousand 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


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

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

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.com

p: (858) 509-2800f: (858) 509-2818

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.

Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. Software Equity Group’s senior bankers have keynoted and spoken at more than one hundred software industry conferences and seminars, including Software Business, SoftExpo, Culpepper, VAR Conference, ACETECH, and the Arizona, Colorado, Chicago, Southern California, Denver, San Diego, Washington State and Boulder Software Associations.



http://www.softwareequity.com/research_reports.aspx

http://www.softwareequity.com/research_reports.aspx


mailto: [email protected]


software equity group flash reportsoftwareequity.com/reports/seg_monthly_flash_report... ·...

Documents