software equity group september 2013 flash...

Septe

mber

2013

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 © 2013 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.


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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.

Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

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

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


SEG Software Index


SEG SaaS Index

SEG Internet Index


Select August 2013 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAAug-30-2013 Yuedong Xinguang (Beijing) Culture & Media Co., Ltd. Fuzhou Zhuolong Tianxun Information $3.1 $0.2 0.1x -Aug-30-2013 MultiQ International AB (OM:MULQ) Publiq Systems Nordic AB - - - -Aug-30-2013 Bechtle AG (XTRA:BC8) Sitexs-Databusiness IT-Solutions GmbH $27.7 - - -Aug-30-2013 Mentor Graphics Corp. (NasdaqGS:MENT) SofTech Inc., CADRA Product Line - $4.0 - -Aug-30-2013 Digium, Inc. Digium Cloud Services, LLC - - - -Aug-30-2013 SciQuest, Inc. (NasdaqGS:SQI) CombineNet, Inc. $12.0 $43.1 3.6x -Aug-30-2013 GKR Systems, Inc. Pyx Solutions, LLC - - - -Aug-29-2013 Communicate Better Limited ConvergeOne Ltd - - - -Aug-29-2013 Crossknowledge Group Ltd. Digital SK Ltda. - - - -Aug-29-2013 Informa Canada Hobby Star Marketing Inc. - - - -Aug-29-2013 Australian Tailings Group Pty Ltd. Synergy Plus Limited - - - -Aug-29-2013 Ströer Digital Media GmbH mbr targeting GmbH - - - -Aug-29-2013 The Packer Produce Universe LLC - - - -Aug-29-2013 MHP Communications Limited MHP Communications Hong Kong Limited - - - -Aug-29-2013 Adello Group AG HStreaming LLC - - - -Aug-28-2013 Jetshop AB E-butik i Norden - - - -Aug-28-2013 Metalogix Software Corporation Axceler, Inc., SharePoint Business - - - -Aug-28-2013 Accurate Group, LLC Preferred Appraisal, Inc. - - - -Aug-28-2013 Strategic Global Investments, Inc. (OTCPK:STBV) DGI, LLC, TuVozOnline - - - -Aug-28-2013 Apple Inc. (NasdaqGS:AAPL) AlgoTrim AB $0.5 - - -Aug-28-2013 Twitter, Inc. Wiredset LLC - - - -Aug-28-2013 Salem Web Network ChristianHeadlines.com - - - -Aug-28-2013 Vionlabs AB Atflick Group AB - - - -Aug-27-2013 ARM Holdings plc (LSE:ARM) Sensinode Oy - - - -Aug-27-2013 DOCOMO Deutschland GmbH fine trade gmbh - - - -Aug-27-2013 Fax87.com Wired Fax, Inc. - - - -Aug-27-2013 99designs Pty Ltd. LOGOCHEF SOLUÇÕES CRIATIVAS EM DESIGN E COMUNICAÇÃO LTDA - - - -Aug-27-2013 Artemis Energy Holdings Inc. (OTCPK:ARTT) Link My Fan Inc. - - - -Aug-27-2013 Advanced Communications, Inc. CableNet Services Unlimited, LLC - - - -Aug-27-2013 Trimble Navigation Limited (NasdaqGS:TRMB) IQ Irrigation - - - -Aug-27-2013 EagleView Technologies, Inc. Mobise, Inc. - - - -Aug-27-2013 Fandango, LLC Quantum Loyalty Systems, Inc. - - - -Aug-27-2013 Taylor Shaw Limited Pro Serv Corporate Ltd. - - - -Aug-27-2013 tape.tv ag Amen Internet GmbH - - - -Aug-27-2013 Galigeo Inc. APOS Systems Inc., Location Intelligence Division - - - -Aug-27-2013 Telstra Corporation Limited (ASX:TLS) Sarb Management Group Pty Ltd., Health Division - - - -Aug-27-2013 American Cybersystems, Inc. Analysts International Corp. (NasdaqGM:ANLY) $102.3 $27.2 0.3x 24.5xAug-27-2013 Preh GmbH Innoventis GmbH - - - -Aug-26-2013 VIA International, Inc. Cyber Sound & Security Inc. - - - -Aug-26-2013 VIA International, Inc. Studio AV Inc. - - - -Aug-26-2013 Artemis Energy Holdings Inc. (OTCPK:ARTT) WooEB, Inc. - - - -Aug-26-2013 Authenticom, Inc. RyanTech, Inc., Automotive Technology Portfolio - - - -Aug-26-2013 Tangel Publishing Co., Ltd. (SZSE:300148) Beijing Magic Universe Network Co Ltd - $225.0 - -Aug-26-2013 High Co. SA (ENXTPA:HCO) FMK Développement SAS - - - -Aug-26-2013 Multi Marketing Corp. Maverick Marketing LLC - - - -Aug-26-2013 Docstoc Inc. BestVendor Inc. - - - -Aug-26-2013 Kingsmen Ooh-media Pte Ltd. I-PROMO Events & Marketing Pte Ltd. - - - -Aug-25-2013 Private Investor(s) Sophistoccasions, LLC - - - -Aug-24-2013 Yahoo! Inc. (NasdaqGS:YHOO) IQ Engines, Inc. - - - -Aug-24-2013 SNP Schneider-Neureither & Partner AG (DB:SHF) GL Associates, Inc. - - - -Aug-23-2013 Biztradeshows PlayCez Technologies Private Limited - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAAug-23-2013 Vista Equity Partners Omnitracs, Inc. - $800.0 - -Aug-23-2013 Herbert L. Jamison & Co., LLC AxisPointe, Inc. - - - -Aug-23-2013 Bonzi Technology, Inc. Professional Application Services, LLC - - - -Aug-23-2013 Qualitrol Company, LLC BPL Global, Ltd. - - - -Aug-23-2013 Neurotrope, Inc. (OTCPK:BLFL.D) Neurotrope, Inc., Prior To Reverse Merger With Neurotrope Bioscience, Inc. - - - -Aug-22-2013 Amcom Telecommunications Ltd. (ASX:AMM) aCure Technology Pty Ltd. - $12.9 - -Aug-22-2013 AFG Media Limited Digital Dudz - - - -Aug-22-2013 Software AG (XTRA:SOW) JackBe Corporation - - - -Aug-22-2013 Rogue Wave Software, Inc. OpenLogic, Inc. - - - -Aug-22-2013 Private Investor(s) Decision Today Limited - - - -Aug-22-2013 Telstra Corporation Limited (ASX:TLS) NSC Group Pty Ltd. - - - -Aug-22-2013 Appcelerator, Inc. Singly, Inc. - - - -Aug-22-2013 Bright Mountain Holdings, Inc. CoastGuardNews.com - - - -Aug-22-2013 Sentia Media Pty. Ltd. Two Social Pty Ltd - - - -Aug-22-2013 Apple Inc. (NasdaqGS:AAPL) Embark, Inc. - - - -Aug-22-2013 Out Of Home America Inc. Upstate Outdoor Media LLC - - - -Aug-22-2013 Issuer Direct Corporation (OTCBB:ISDR) PrecisionIR Group, Inc. - $3.5 - -Aug-22-2013 MicroD, Inc. Channel Redefined, Inc. - - - -Aug-22-2013 Kelser Corporation Foundation Systems Group LLC - - - -Aug-22-2013 Private Investor(s) FlatWallets AB - - - -Aug-21-2013 Compass Intelligence, LLC MobileTrax LLC - - - -Aug-21-2013 Abila, Inc. Avectra, Inc. - - - -Aug-21-2013 Autodesk, Inc. (NasdaqGS:ADSK) Get the Point, LLC, Technology Assets - - - -Aug-21-2013 loanDepot imortgage.com, Inc. - - - -Aug-21-2013 Maker Studios, Inc. Blip Networks, Inc. - - - -Aug-20-2013 Ebiquity plc (AIM:EBQ) Stratigent, LLC $3.5 $8.5 2.4x -Aug-20-2013 Perceptive Software, Inc. SAPERION AG - $72.0 - -Aug-20-2013 Rentrak Corporation (NasdaqGS:RENT) iTVX Inc. - - - -Aug-20-2013 First Databank, Inc. Design Clinicals, Inc. - - - -Aug-20-2013 Click Security, Inc. VisibleRisk Inc. - - - -Aug-20-2013 Vector Security, Inc. Industry Retail Group, Inc. - - - -Aug-20-2013 Kronos Incorporated Time Link International Corporation - - - -Aug-20-2013 Telestream, Inc. CPC Computer Prompting & Captioning Co. - - - -Aug-20-2013 Private Investor(s) Marlborough Software Development Holdings Inc. (OTCPK:MBGH) $7.5 $2.1 0.3x -Aug-20-2013 Private Investor(s) Symphony Xen Solutions Pte. Ltd. $0.1 $0.5 8.4x -Aug-20-2013 Private Investor(s) Symphony Xen Solutions Sdn. Bhd. $0.7 $1.1 1.5x -Aug-20-2013 NFe do Brasil S/A Midiaware Sistemas Virtuais S/C Ltda. - $4.2 - -Aug-20-2013 Charge Payment, LLC U.S. Data Capture, Inc. - - - -Aug-20-2013 Qualifacts Systems Inc. Mitchell & McCormick, Inc., Behavioral Health Business - - - -Aug-20-2013 Core-apps, LLC GoExpo LLC - - - -Aug-20-2013 Newgistics, Inc. Tacit Knowledge Inc. - - - -Aug-20-2013 WineDirect, Inc. Elypsis, Inc. - - - -Aug-20-2013 Foodpanda Singapore Pte. Ltd. Megamenu Servicos de Busca na Internet Ltda. - - - -Aug-20-2013 EMaC Limited Pentagon Development Services Limited - - - -Aug-20-2013 NetBop Technologies Ltd Frequency Is Limited - - - -Aug-19-2013 1&1 Internet AG Arsys Internet S.L. $53.4 $186.8 3.5x 9.3xAug-19-2013 Private Investor(s) Logia Software Oy $10.7 - - -Aug-19-2013 The Reynolds and Reynolds Company iMakeNews, Inc. - - - -Aug-19-2013 Verisae, Inc. FM Solutions LLC - - - -Aug-19-2013 The Go Daddy Group, Inc. Locu, Inc. - $70.0 - -Aug-19-2013 PMGC Technology Group Limited AMC Communications (UK) Limited - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAAug-19-2013 PriceGrabber.com, Inc. Snapette Inc. - - - -Aug-19-2013 NetNordic Holding AS Packetfront Solutions AB - - - -Aug-19-2013 Altisource Portfolio Solutions S.A. (NasdaqGS:ASPS) Equator, LLC - $150.0 - -Aug-19-2013 Hotfix Trading Limited Investment Financial Corporation SOYUZ - - - -Aug-19-2013 Shoptology, Inc. Mercury11, LLC - - - -Aug-18-2013 Darwin Strategic Limited, Investment Arm FTG Finance Services Limited - - - -Aug-18-2013 Grupo ABC Ltda. CDN Comunicação Corporativa Ltda. - - - -Aug-18-2013 FirstGiving, Inc. GiftWorks, Inc. - - - -Aug-16-2013 Key Information Systems, Inc. Internet Specialties West, Inc. - - - -Aug-16-2013 Open Text Corporation (NasdaqGS:OTEX) Cordys B.V. - $33.0 - -Aug-16-2013 Zillow, Inc. (NasdaqGS:Z) NMD Interactive, Inc. - $50.0 - -Aug-16-2013 New Patients, Inc. Phoenix Practice Marketing, Inc. - - - -Aug-16-2013 Trade ME Group Ltd. (NZSE:TME) Inform Holdings Ltd., LifeDirect Website - - - -Aug-16-2013 Thomson Reuters Corporation (TSX:TRI) SigmaGenix Services Limited - - - -Aug-15-2013 International Business Machines Corporation (NYSE:IBM) Trusteer, Inc. $40.0 - - -Aug-15-2013 Handshake Software, Inc. Thomson Reuters Corporation, OneView Business - - - -Aug-15-2013 LookSmart, Ltd. (NasdaqCM:LOOK) Syncapse Corp., Key Assets - $3.0 - -Aug-15-2013 GlobalGroup Investment Holdings Inc. (OTCPK:GIHI) GlobalGroup Investment Holdings Inc., Prior to Reverse Merger with Embarr Downs of California, Inc. - - - -Aug-15-2013 EBSCO Information Services University of Leeds, British Education Index - - - -Aug-15-2013 Beijing Ultrapower Software Co., Ltd. (SZSE:300002) Wireless China, Inc. $6.8 $9.0 1.3x -Aug-15-2013 Lyceum Capital Partners LLP Isotrak Limited - - - -Aug-15-2013 Cliq Digital AG (XTRA:B4B) Grumbl Media Holding B.V. - $0.9 - -Aug-15-2013 Fox Sports Digital Fanhood - - - -Aug-15-2013 Litéra Corp. Axxiem Web Solutions, AxxiTRIALS Clinical Trials Community Portal Solution - - - -Aug-14-2013 Elanders AB (OM:ELAN B) myphotobook GmbH $21.2 $13.9 1.0x -Aug-14-2013 SuperCom Ltd. (OTCPK:SPCB.D) On Track Innovations, SmartID Division $20.0 $22.5 1.1x -Aug-14-2013 GMG Media Group Limited Placid Expression Limited - - - -Aug-14-2013 RichRelevance, Inc. Precog - - - -Aug-14-2013 Zenith Optimedia Group Limited Engauge Communication, Inc. - - - -Aug-14-2013 Regenersis Plc (AIM:RGS) Digicomp Complete Solutions Pvt. Ltd. - - - -Aug-14-2013 PreMedia Global, Inc. Datamatics Global Services Limited, Digital Publishing & Retail Solutions Business - - - -Aug-14-2013 Atherio Investments, LLC Nvish Solutions Inc. - - - -Aug-14-2013 InfoCare Norge AS NorDoc Services AS - - - -Aug-14-2013 Deloitte Touche Tohmatsu New Zealand Asparona Ltd. and Tango Group Limited - - - -Aug-14-2013 ADS Security, L.P. Security Services Inc. - - - -Aug-14-2013 VerticalScope, Inc. Tidal Fish Ventures, LLC - - - -Aug-13-2013 AACL Holdings Limited (ASX:AAY) Applabs Australia Pty Ltd. - $0.9 - -Aug-13-2013 York Mailing Limited The Lettershop Group Ltd. $30.9 - - -Aug-13-2013 The Annuitas Group Get Me In The Inbox, LLC - - - -Aug-13-2013 Millennial Media Inc. (NYSE:MM) Jumptap, Inc. $63.6 $261.3 4.1x -Aug-13-2013 Apple Inc. (NasdaqGS:AAPL) Matcha, Inc. - - - -Aug-13-2013 Kellen Communications Wilbanks Agency LLC - - - -Aug-13-2013 Zayo Group, LLC Access Communications, Inc. - $40.0 - -Aug-12-2013 Accenture plc (NYSE:ACN) PRION GmbH - - - -Aug-12-2013 Hellofood Janamesa Serviços de Informática Ltda. - - - -Aug-12-2013 Xtari, LLC RhinoSEO - - - -Aug-12-2013 Rakuten Marketing Rakuten PopShops, Inc. - - - -Aug-12-2013 Penfold Capital Acquisition IV Corporation (TSXV:SEL) RL Marketplace $0.4 $0.1 0.1x -Aug-12-2013 Appurify, Inc. CISimple - - - -Aug-12-2013 Extreme Reach, Inc. Digital Generation, Inc., TV Business And Advertising Distribution Business Unit - $490.0 - -Aug-12-2013 Digital Performance Group Ltd (ASX:DIG) Asia Pacific Digital Limited - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAAug-12-2013 NBC News Digital LLC Stringwire - - - -Aug-12-2013 Facebook, Inc. (NasdaqGS:FB) Mobile Technologies, LLC - - - -Aug-12-2013 Sanderson Group Plc (AIM:SND) Catan Marketing Limited $1.4 $1.0 0.7x -Aug-12-2013 Private Investor(s) Hamilton Rentals Limited - - - -Aug-12-2013 Groupon, Inc. (NasdaqGS:GRPN) Plumfare, Inc. - - - -Aug-12-2013 WTWH Media, LLC Oponeo.pl Spolka Akcyjna, Edaboard.com and Related Sub Domains - - - -Aug-12-2013 Demme Learning KinderTown LLC - - - -Aug-12-2013 Zero Point Zero Production, Inc. Food Republic, Inc. - - - -Aug-12-2013 Connelly Partners, LLC Irma S. Mann, Strategic Marketing, Inc. - - - -Aug-12-2013 Select Telecom Limited CBS Communications Ltd. - - - -Aug-12-2013 Monster Arts Inc. (OTCBB:APPZ) Travel America Visitor Guide $0.1 $0.3 2.5x -Aug-11-2013 InfoArmor, Inc. Aggra, Inc. - - - -Aug-10-2013 Transport I.T. Solutions Private Limited Four Soft Limited, Software Solutions Business - $22.5 - -Aug-10-2013 Transport I.T. Solutions Private Limited Four Soft USA, Inc. - $0.3 - -Aug-10-2013 Transport I.T. Solutions Private Limited Four Soft B.V. - $19.3 - -Aug-09-2013 Xerox Corporation (NYSE:XRX) CPAS Systems Inc. - - - -Aug-09-2013 Vape Holdings, Inc. PeopleString Corporation (OTCPK:PLPE) $0.1 - - -Aug-09-2013 Weber Shandwick Australia Public City Pty Limited - - - -Aug-09-2013 Imogo Mobile Technologies Corp. (OTCBB:IMTC) SideBuy Technologies, Inc. - - - -Aug-08-2013 McGregor BFA (Pty) Ltd. I-Net Bridge (Pty) Ltd. - $12.7 - -Aug-08-2013 One97 Communications Limited Plustext Mobile Solutions Pvt. Ltd. - $2.0 - -Aug-08-2013 Goodman Networks, Inc. Design Build Technologies, LLC - - - -Aug-08-2013 Alesco Data Group, LLC Statlistics Inc. - - - -Aug-08-2013 AT&T Corp. 32 Cell Towers in Northeast Wisconsin - - - -Aug-08-2013 Proofpoint, Inc. (NasdaqGM:PFPT) Armorize Technologies Inc. - $25.0 - -Aug-08-2013 iWin, Inc. Iplay - - - -Aug-08-2013 Lowe and Partners SA Cross Colours Consultancy (Pty) Ltd. - - - -Aug-08-2013 Medius AB Ascendo System AB - - - -Aug-08-2013 Axiometrics Inc. Trinitas Ventures LLC, Student Housing Market Research Database - - - -Aug-08-2013 Private Investor(s) WISEMAN Co.,Ltd. (JASDAQ:3752) $72.8 $59.9 0.8x 2.4xAug-07-2013 M Squared Entertainment, LLC ArthurKade.com - - - -Aug-07-2013 NICE Systems Ltd. (TASE:NICE) Causata Inc. - - - -Aug-07-2013 Global Systems Integration, Inc. Andrews Consulting Group, Inc. - - - -Aug-07-2013 ALL-STATE International, Inc. Vizibility Inc. - - - -Aug-07-2013 Forerunner Technologies, Inc. EarthLink Inc., NEC Systems Business Unit - - - -Aug-07-2013 Straight North, LLC Ephricon Web Marketing, LLC - - - -Aug-07-2013 Jannsen & Company SC Acevedo PC Services, LLC - - - -Aug-07-2013 Turning Technologies, LLC eInstruction Corporation - - - -Aug-07-2013 Starcount H&D Ventures Limited - - - -Aug-07-2013 MicroD, Inc. Internet Databases Corporation - - - -Aug-07-2013 Waters Corporation (NYSE:WAT) Nonlinear Dynamics Limited - - - -Aug-07-2013 Dassault Systemes SA (ENXTPA:DSY) Safe Technology Ltd. - - - -Aug-07-2013 Fresche Solutions Inc. Databorough Ltd - - - -Aug-06-2013 IRESS Limited (ASX:IRE) Avelo FS Holdings Limited $85.3 $320.4 3.8x -Aug-06-2013 CROSSMARK, Inc. Marketing Werks, Inc. - - - -Aug-06-2013 Interactive Leisure Systems, Inc. (OTCPK:IALS) Travel Time Technologies, Inc. $1.7 - - -Aug-06-2013 Venture Solutions Inc. SCICOM Data Services, Ltd. - - - -Aug-06-2013 OneTwoTrip DealAngel, Inc. - - - -Aug-06-2013 StudioGood Social People Media Group LLC - - - -Aug-06-2013 3D Systems Corp. (NYSE:DDD) VisPower Technology, Inc. - - - -Aug-06-2013 Market Track, LLC Dynamite Data LLC - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAAug-06-2013 Intuit Inc. (NasdaqGS:INTU) GoodApril, Inc. - $20.0 - -Aug-06-2013 EM SYSTEMS company limited (TSE:4820) Unicon Nishi Nihon Co., Ltd. $0.4 $0.1 0.2x -Aug-05-2013 iiNet Ltd. (ASX:IIN) Adam Internet Holdings Pty Ltd - $53.4 - -Aug-05-2013 Blinkx plc (AIM:BLNX) Grab Media - - - -Aug-05-2013 Seal Gaming LLC Sneaky Games, Inc. - $1.3 - -Aug-05-2013 ABB Ltd. (SWX:ABBN) Newron System S.A. $10.0 - - -Aug-05-2013 Hawkify Ltd Sheffield Web Solutions - - - -Aug-05-2013 AD Hunters Latvia SIA 85% Stake in SAN Riga and 85% Stake in SAN Vilnius - - - -Aug-05-2013 Clutch Holdings, LLC Profitpoint, Inc. - - - -Aug-05-2013 Staten Island Marine Development, LLC 380 Development, LLC - $80.0 - -Aug-05-2013 AOL Inc. (NYSE:AOL) Adap.tv, Inc. - $405.0 - -Aug-05-2013 Computer Sciences Corporation (NYSE:CSC) Infochimps, Inc. - - - -Aug-05-2013 Private Investor(s) Hattrick Holdings Limited $8.9 $10.1 1.1x 4.4xAug-03-2013 Yahoo Japan Corporation (TSE:4689) Venture Republic Inc. - - - -Aug-03-2013 Company85 Limited XOR Professional Services Limited - - - -Aug-02-2013 Danaher Corp. (NYSE:DHR) Teletrac, Inc. - - - -Aug-02-2013 Pure Auto, LLC Ronin Solutions LLC - - - -Aug-02-2013 Yahoo! Inc. (NasdaqGS:YHOO) RockMelt, Inc. - - - -Aug-02-2013 BMC Software Inc. (NasdaqGS:BMC) KineticGlue Online Communities Pvt. Ltd. - - - -Aug-02-2013 Angie's List, Inc. (NasdaqGM:ANGI) SmartHabitat, Inc. - $2.7 - -Aug-02-2013 VanityTrove Pte. Ltd. Glamybox - - - -Aug-02-2013 Grupo Yamm comida a domicilio Entuboca.com - - - -Aug-02-2013 Marlin Equity Partners, LLC Asset Control Systems Inc. - - - -Aug-02-2013 Twitter, Inc. Locomatix Inc. - - - -Aug-01-2013 Stream Group Holdings Pty Ltd LongReach Group, Ltd. (ASX:LRG) $9.3 - - -Aug-01-2013 Record Holdings Pty Ltd. FTR Pty Ltd - $5.6 - -Aug-01-2013 Web Presence in China Korea Interactive, Inc. - - - -Aug-01-2013 Techniche Ltd. (ASX:TCN); NBC Capital Statseeker Pty Ltd. - $6.0 - -Aug-01-2013 Vibes Media, LLC Lumata, U.S. Brands Business - - - -Aug-01-2013 MRops, Inc. MRops Asia - - - -Aug-01-2013 Bridgeline Digital, Inc. (NasdaqCM:BLIN) Transformational Technologies, Inc. - $2.6 - -Aug-01-2013 Rogers & Cowan, Inc. Zucker Public Relations, Inc. - - - -Aug-01-2013 Offerum, S.L. Planeo es un servicio de Offerum S.L - - - -Aug-01-2013 Genting Americas Inc. RWD US LLC - - - -Aug-01-2013 Shopify Inc. Jet Cooper Ltd. - - - -Aug-01-2013 Inland Cellular Telephone Company OpINs.com - - - -Aug-01-2013 Private Investor(s) Tracer Management Systems Ltd. - - - -Aug-01-2013 SRP Nanasai Co., Ltd. SRP Advertising Co.,Ltd - - - -Aug-01-2013 mediba Inc. ScaleOut Inc. - - - -Aug-01-2013 EarthBend LLC Sage Technology Group, LLC - - - -Aug-01-2013 I-Evolve Inc. E3 Technologies - - - -Aug-01-2013 Private Investor(s) mLight Tech, Inc. (OTCPK:MLGT) - - - -Aug-01-2013 Private Investor(s) Ccgroup Ltd - - - -Aug-01-2013 Anthem Media Group RotoExperts LLC - - - -Aug-01-2013 TimesCity Gawbl - - - -Aug-01-2013 ARGO Data Resource Corporation Advanced Software Design Corporation - - - -

Acquirer


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 $2,290.3 $2,349.7 $581.1 68.0% 19.5% 8.6% 2.9x 12.9x 2.7x 9.9x 15.7% Billing & Service Management $786.7 $678.9 $442.7 58.3% 18.4% 16.9% 2.3x 8.5x 1.5x 7.4x 21.5% Business Intelligence $1,360.7 $1,145.9 $453.6 71.8% 13.3% 14.2% 3.3x 16.8x 3.1x 14.3x 19.1% Development Platforms $2,413.0 $2,435.7 $1,120.9 77.4% 20.3% -0.9% 2.6x 13.7x 2.9x 9.2x 6.1% Engineering & PLM $3,824.7 $3,704.4 $1,079.7 83.6% 20.3% 8.4% 2.6x 13.9x 2.4x 9.2x 13.5% Enterprise Resource Planning $5,891.8 $6,247.6 $2,088.2 71.9% 29.6% 1.6% 3.0x 11.1x 2.5x 7.8x -7.8% Financial & Accounting $1,924.6 $2,478.0 $739.2 56.7% 26.1% 5.4% 3.3x 12.1x 2.8x 9.9x 15.6% Gaming $2,386.3 $2,303.1 $1,925.5 66.5% 14.2% 15.7% 1.7x 12.6x 1.5x 8.4x 47.6% IT Conglomerates $147,537.5 $134,312.5 $77,849.0 71.9% 34.3% 0.2% 2.8x 7.7x 2.7x 6.8x -5.9% Mobile Solutions/Content $780.4 $750.0 $232.1 54.4% 8.0% 6.0% 2.2x 15.4x 1.6x 21.1x 3.0% Networking & Network Performance Managemen $2,290.3 $2,224.0 $945.9 70.6% 14.9% 6.5% 2.6x 15.8x 2.2x 9.9x -16.3% Security $1,779.5 $1,676.3 $321.5 77.5% 9.9% 19.6% 4.0x 11.4x 4.2x 11.7x 15.8% Storage, Data Mgmt & Integration $13,327.1 $10,038.3 $4,626.0 72.8% 22.2% 4.4% 2.7x 8.5x 2.7x 6.8x 16.3% Supply Chain Management & Logistics $1,178.3 $1,103.7 $225.0 61.9% 21.4% 13.6% 4.3x 16.5x 3.8x 13.8x 17.8% Systems Management $9,563.6 $8,710.0 $2,180.6 85.1% 25.3% 16.3% 4.5x 17.6x 4.0x 13.8x -7.1% Vertical - Finance $3,213.9 $3,768.2 $840.2 43.2% 26.2% 7.4% 3.5x 12.5x 3.4x 10.7x 33.5% Vertical - Other $1,297.6 $1,332.6 $384.0 53.2% 15.5% 22.2% 3.4x 21.3x 2.8x 15.5x 44.0%

Category Name

TTM Revenue Growth 8.6%TTM EBITDA Growth -22.1%TTM Earnings Growth -53.3%Gross Profit Margin 68.0%EBITDA Margin 19.5%Net Income Margin -3.8%SG&A Expenses as a % of Total Revenue 54.8%R&D Expenses as a % of Total Revenue 17.3%

Current Ratio 2.4Quick Ratio 2.2Cash as Percent of Market Cap 9.3%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 32Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 10.0%Cash from Operations Growth (YoY) 20.9%Cash from Investing Growth (YoY) -149.5%Cash from Financing Growth (YoY) 563.4%Levered FCF Growth (YoY) 7.4%

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

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

0%

5%

10%

15%

20%

25%SEG SW Index Software Stock Market Return: January - August 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 YTDAmdocs Limited DOX $5,933.8 $4,843.1 $3,322.8 35.3% 18.7% 2.6% 1.5x 7.8x 1.4x 6.6x 8.2%AsiaInfo Holdings, Inc. ASIA $827.2 $530.4 $581.1 37.7% 11.5% 16.2% 0.9x 7.9x 0.8x 7.2x 3.8%CSG Systems International, Inc. CSGS $746.3 $827.4 $754.7 48.4% 17.9% 2.1% 1.1x 6.1x 1.1x 5.1x 27.2%Evolving Systems, Inc. EVOL $96.1 $82.7 $26.1 70.6% 27.0% 20.2% 3.2x 11.7x 2.8x 8.7x 47.6%MIND C.T.I. Ltd. MNDO $31.8 $14.8 $18.5 61.1% 18.2% -9.4% 0.8x 4.4x n/a n/a -4.3%NeuStar, Inc NSR $3,252.9 $3,492.6 $862.1 77.4% 44.8% 17.7% 4.1x 9.0x 3.7x 7.4x 15.7%Redknee Solutions TSX:RKN $402.7 $345.0 $99.1 58.7% 7.4% 74.4% 3.5x 47.1x 1.5x 11.8x 115.1%Synchronoss Technologies, Inc. SNCR $1,331.2 $1,281.3 $304.3 57.9% 20.7% 20.3% 4.2x 20.3x 3.3x 10.1x 58.9%

Median: $786.7 $678.9 $442.7 58.3% 18.4% 16.9% 2.3x 8.5x 1.5x 7.4x 21.5%

TTM Revenue Growth 16.9%TTM EBITDA Growth 11.6%TTM Earnings Growth -26.8%Gross Profit Margin 58.3%EBITDA Margin 18.4%Net Income Margin 9.8%SG&A Expenses as a % of Total Revenue 19.6%R&D Expenses as a % of Total Revenue 14.9%


Levered FCF Margin 12.7%Cash from Operations Growth (YoY) 4.8%Cash from Investing Growth (YoY) -44.3%Cash from Financing Growth (YoY) 1.9%Levered FCF Growth (YoY) -15.0%





0%

5%

10%

15%

20%

25%

30%

35%

40%Billing and Service Management Software Stock Market Return: January - August 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 YTDActuate Corporation BIRT $333.2 $260.0 $137.6 84.2% 12.6% -1.9% 1.9x 15.0x 1.8x 7.9x 20.9%MicroStrategy Incorporated MSTR $1,037.5 $719.8 $589.0 73.6% 5.0% 2.3% 1.2x 24.6x 1.2x 17.8x -3.9%Pegasystems Inc. PEGA $1,397.9 $1,224.1 $479.0 68.4% 14.0% 12.2% 2.6x 18.2x 2.3x 14.3x 57.3%Progress Software Corporation PRGS $1,323.6 $1,067.8 $344.0 87.3% 20.4% 34.7% 3.1x 15.2x 3.2x 9.2x 13.6%PROS Holdings PRO $920.8 $832.5 $131.8 69.9% 6.5% 23.6% 6.3x 96.9x 5.2x 32.8x 69.4%Qlik Technologies QLIK $2,880.9 $2,657.4 $428.1 87.6% 1.3% 22.8% 6.2x 480.4x 5.1x 37.4x 45.2%Teradata NYSE:TDC $9,551.1 $8,988.1 $2,644.0 55.2% 23.0% 3.6% 3.4x 14.8x 3.1x 10.0x -8.1%Verisk VRSK $10,441.0 $11,668.9 $1,639.2 61.1% 46.5% 16.1% 7.1x 15.3x 6.5x 14.3x 17.4%

Median: $1,360.7 $1,145.9 $453.6 71.8% 13.3% 14.2% 3.3x 16.8x 3.1x 14.3x 19.1%

TTM Revenue Growth 14.2%TTM EBITDA Growth -22.8%TTM Earnings Growth 7.2%Gross Profit Margin 71.8%EBITDA Margin 13.3%Net Income Margin 8.9%SG&A Expenses as a % of Total Revenue 48.8%R&D Expenses as a % of Total Revenue 17.6%


Levered FCF Margin 9.6%Cash from Operations Growth (YoY) -13.4%Cash from Investing Growth (YoY) 19.6%Cash from Financing Growth (YoY) -7.1%Levered FCF Growth (YoY) 12.3%





0%

5%

10%

15%

20%

25%

30%

35%Business Intelligence Software Stock Market Return: January - August 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 YTDActuate Corporation BIRT $333.2 $260.0 $137.6 84.2% 12.6% -1.9% 1.9x 15.0x 1.8x 7.9x 20.9%Adobe Systems Incorporated ADBE $22,978.4 $20,638.4 $4,252.4 87.4% 26.6% -1.9% 4.9x 18.2x 4.9x 16.0x 19.3%BSQUARE Corporation BSQR $31.3 $11.2 $94.0 18.1% 1.0% -3.5% 0.1x 12.4x n/a n/a -7.9%Compuware Corporation CPWR $2,290.3 $2,224.0 $945.9 64.2% 14.9% -6.0% 2.4x 15.8x 2.2x 10.3x -1.3%Magic Software Enterprises Ltd. MGIC $242.5 $206.0 $136.5 40.5% 18.9% 15.1% 1.5x 8.0x 1.5x n/a 40.6%Microsoft Corporation MSFT $278,220.5 $218,296.5 $77,849.0 74.0% 38.7% 5.6% 2.8x 7.3x 2.7x 6.7x 23.6%Oracle Corporation ORCL $147,537.5 $134,312.5 $37,180.0 80.9% 46.6% 0.2% 3.6x 7.7x 3.5x 6.8x -7.8%Progress Software Corporation PRGS $1,323.6 $1,067.8 $344.0 87.3% 20.4% 34.7% 3.1x 15.2x 3.2x 9.2x 13.6%Red Hat, Inc. RHT $9,563.6 $8,710.0 $1,377.3 84.7% 20.1% 16.4% 6.3x 31.4x 5.5x 19.1x -7.5%Software AG XTRA:SOW $2,535.8 $2,647.4 $1,295.8 67.1% 26.0% -7.9% 2.0x 7.9x n/a n/a -24.9%

Median: $2,413.0 $2,435.7 $1,120.9 77.4% 20.3% -0.9% 2.6x 13.7x 2.9x 9.2x 6.1%

TTM Revenue Growth -0.9%TTM EBITDA Growth -5.5%TTM Earnings Growth -2.1%Gross Profit Margin 77.4%EBITDA Margin 20.3%Net Income Margin 12.3%SG&A Expenses as a % of Total Revenue 39.2%R&D Expenses as a % of Total Revenue 13.2%


Levered FCF Margin 18.1%Cash from Operations Growth (YoY) -21.7%Cash from Investing Growth (YoY) 28.9%Cash from Financing Growth (YoY) -47.7%Levered FCF Growth (YoY) -19.4%





-5%

0%

5%

10%

15%

20%

25%Development Platforms Software Stock Market Return: January - August 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 YTDANSYS, Inc. ANSS $7,762.8 $7,129.6 $830.2 87.6% 46.7% 10.5% 8.6x 18.4x 7.8x 15.6x 19.9%Autodesk, Inc. ADSK $8,176.9 $6,925.0 $2,287.0 88.8% 20.3% -0.5% 3.0x 14.9x 3.0x 11.3x -0.5%Cadence Design Systems, Inc CDNS $3,824.7 $3,704.4 $1,400.9 86.7% 22.4% 12.7% 2.6x 11.8x 2.4x 7.7x -3.8%Cimatron Ltd. CIMT $62.4 $55.3 $43.0 87.3% 14.4% 1.6% 1.3x 8.9x 1.2x 7.3x 50.6%Dassault Systèmes DSY $15,948.6 $13,916.8 $2,691.4 87.1% 31.0% 8.4% 5.2x 16.7x n/a n/a 13.5%GSE Systems Inc. GVP $28.0 $6.9 $49.1 31.1% -0.4% -9.3% 0.1x n/a 0.2x n/a -29.2%Mentor Graphics Corp MENT $2,501.0 $2,526.6 $1,079.7 83.6% 18.2% 1.9% 2.3x 12.9x 2.1x 8.7x 28.2%Parametric Technology Corporation PMTC $3,114.9 $3,126.0 $1,274.0 71.0% 19.9% 0.3% 2.5x 12.4x 2.4x 9.2x 12.0%PDF Solutions Inc PDFS $594.6 $517.9 $95.3 59.8% 27.7% 22.6% 5.4x 19.6x 4.6x 11.4x 36.7%Stratasys, Inc. SSYS $4,194.1 $4,046.2 $324.6 45.8% 19.9% 82.4% 12.5x 62.6x 7.5x 23.8x 31.8%Synopsys Inc SNPS $5,598.8 $4,819.0 $1,911.6 82.5% 21.9% 13.0% 2.5x 11.5x 2.3x 7.7x 12.3%

Median: $3,824.7 $3,704.4 $1,079.7 83.6% 20.3% 8.4% 2.6x 13.9x 2.4x 9.2x 13.5%

TTM Revenue Growth 8.4%TTM EBITDA Growth 10.1%TTM Earnings Growth 6.1%Gross Profit Margin 83.6%EBITDA Margin 20.3%Net Income Margin 10.8%SG&A Expenses as a % of Total Revenue 34.5%R&D Expenses as a % of Total Revenue 17.8%


Levered FCF Margin 14.8%Cash from Operations Growth (YoY) 7.7%Cash from Investing Growth (YoY) 12.4%Cash from Financing Growth (YoY) 141.0%Levered FCF Growth (YoY) 5.7%





0%

5%

10%

15%

20%

25%

30%

35%

40%Engineering & PLM Software Stock Market Return: January - August 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 YTDAmerican Software, Inc. AMSW.A $219.5 $156.0 $97.9 54.2% 14.4% -6.6% 1.6x 11.1x 1.5x 8.2x 0.4%Oracle Corporation ORCL $147,537.5 $134,312.5 $37,180.0 80.9% 46.6% 0.2% 3.6x 7.7x 3.5x 6.8x -7.8%QAD Inc. QADA $188.4 $134.7 $254.6 56.3% 4.5% 1.6% 0.5x 11.9x 0.5x 7.4x -9.5%Sage Group plc LSE:SGE $5,891.8 $6,247.6 $2,088.2 93.9% 29.6% 2.9% 3.0x 10.1x n/a n/a 12.0%SAP DB:SAP $88,322.0 $90,401.3 $21,628.9 71.9% 34.3% 9.8% 4.2x 12.2x 3.8x 10.3x -8.1%

Median: $5,891.8 $6,247.6 $2,088.2 71.9% 29.6% 1.6% 3.0x 11.1x 2.5x 7.8x -7.8%



Levered FCF Margin 19.4%Cash from Operations Growth (YoY) 0.2%Cash from Investing Growth (YoY) -5.2%Cash from Financing Growth (YoY) -17.5%Levered FCF Growth (YoY) 2.1%





-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Enterprise Resource Planning Software Stock Market Return: January - August 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 YTDACI Worldwide, Inc. ACIW $1,924.6 $2,478.0 $747.0 63.2% 21.9% 39.7% 3.3x 15.2x 2.7x 8.1x 9.5%Bottomline Technologies EPAY $985.2 $830.7 $254.8 53.3% 9.8% 13.6% 3.3x 33.4x 2.8x 15.3x -1.7%DST Systems, Inc. DST $3,071.0 $3,508.5 $2,630.1 15.9% 14.9% 5.2% 1.3x 9.0x 1.8x 7.7x 16.6%Evertec EVTC $1,955.2 $2,638.0 $351.3 53.9% 43.9% 5.4% 7.5x 17.1x 7.0x 14.0x 17.3%Fair Isaac Corporation FICO $1,762.9 $2,154.8 $739.2 69.2% 26.1% 13.6% 2.9x 11.2x 2.7x 8.5x 15.6%Fiserv FISV $12,523.8 $16,156.8 $4,648.0 42.3% 29.7% 5.4% 3.5x 11.7x 3.3x 9.9x 18.4%Intuit Inc INTU $18,863.6 $17,701.6 $4,171.0 86.6% 35.1% 0.5% 4.2x 12.1x 3.9x 9.8x 3.4%Model N, Inc MODN $330.8 $226.1 $97.3 56.7% 7.3% n/a 2.3x 31.8x 2.0x 71.1x -27.9%NetSol Technologies Inc. KASE:NETS $35.4 $38.7 $31.6 59.7% 52.6% 61.5% 1.2x 2.3x n/a n/a 146.2%Qiwi plc QIWI $1,549.6 $1,331.7 $313.7 43.8% 22.3% n/a 4.2x 19.0x 7.5x 16.3x 76.8%Sage Group plc LSE:SGE $5,891.8 $6,247.6 $2,088.2 93.9% 29.6% 2.9% 3.0x 10.1x n/a n/a 12.0%

Median: $1,924.6 $2,478.0 $739.2 56.7% 26.1% 5.4% 3.3x 12.1x 2.8x 9.9x 15.6%








0%

5%

10%

15%

20%

25%Financial & Accounting Software Stock Market Return: January - August 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 YTDActivision Blizzard ATVI $18,269.6 $13,723.6 $4,984.0 68.0% 37.6% 13.1% 2.8x 7.3x 3.2x 9.4x 51.1%Electronic Arts Inc. EA $8,168.3 $7,321.3 $3,791.0 65.0% 9.5% -7.5% 1.9x 20.3x 1.8x 9.6x 83.1%GameLoft SA ENXTPA:GF $706.5 $633.1 $274.7 84.6% 15.6% 26.7% 2.3x 14.8x n/a n/a 22.5%Konami Corporation TSE: 9766 $3,067.3 $2,971.3 $2,241.5 31.6% 12.8% -14.4% 1.3x 10.3x 1.2x 7.3x 1.1%Take-Two Interactive TTWO $1,705.3 $1,635.0 $1,131.0 47.5% 8.8% 57.6% 1.4x 16.3x 0.8x 3.9x 59.9%Ubisoft Entertainment ENXTPA:UB $1,447.9 $1,303.2 $1,609.5 72.7% 36.8% 18.4% 0.8x 2.2x n/a n/a 44.0%

Median: $2,386.3 $2,303.1 $1,925.5 66.5% 14.2% 15.7% 1.7x 12.6x 1.5x 8.4x 47.6%








-10%

0%

10%

20%

30%

40%

50%

60%

70%Gaming Software Stock Market Return: January - August 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 YTDAccretive Health AH $912.4 $716.0 $973.6 20.7% 2.9% 32.2% 0.7x 25.0x 0.7x 9.2x -19.8%Allscripts Healthcare Solutions Inc. MDRX $2,566.9 $3,040.0 $1,403.6 40.8% 5.6% -5.6% 2.2x 39.0x 2.1x 12.9x 54.5%Cerner Corporation CERN $15,803.6 $15,015.9 $2,711.7 81.8% 28.8% 12.3% 5.5x 19.2x 4.8x 14.5x 14.5%Computer Programs and Sys, Inc. CPSI $609.0 $596.7 $195.9 45.4% 24.9% 12.3% 3.0x 12.2x 2.9x 10.9x 8.4%Greenway Medical Technologies, Inc GWAY $405.2 $393.9 $134.8 52.2% 1.6% 8.7% 2.9x 177.5x 2.7x 24.6x -14.8%MedAssets MDAS $1,372.0 $2,202.7 $670.8 78.5% 31.6% 9.4% 3.3x 10.4x 3.2x 9.7x 27.3%Merge Healthcare MRGE $248.2 $483.5 $245.9 59.2% 11.0% -0.9% 2.0x 17.9x 1.9x 9.7x 0.8%Omnicell, Inc. OMCL $757.4 $670.1 $355.3 53.6% 14.3% 33.1% 1.9x 13.2x 1.7x 9.1x 41.5%Quality Systems, Inc. QSII $1,232.9 $1,102.9 $451.5 58.1% 21.6% 0.8% 2.4x 11.3x 2.3x 9.4x 17.4%

Median: $912.4 $716.0 $451.5 53.6% 14.3% 9.4% 2.4x 17.9x 2.3x 9.7x 14.5%

TTM Revenue Growth 9.4%TTM EBITDA Growth -20.1%TTM Earnings Growth -24.7%Gross Profit Margin 53.6%EBITDA Margin 14.3%Net Income Margin 1.7%SG&A Expenses as a % of Total Revenue 34.6%R&D Expenses as a % of Total Revenue 11.8%


Levered FCF Margin 6.7%Cash from Operations Growth (YoY) 1.2%Cash from Investing Growth (YoY) -2.4%Cash from Financing Growth (YoY) -78.9%Levered FCF Growth (YoY) -24.1%





-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%Healthcare Software Stock Market Return: January - August 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 YTDHewlett Packard HPQ $43,083.9 $54,955.9 $113,126.0 23.6% 12.0% -7.7% 0.5x 4.1x 0.5x 4.0x 50.6%IBM IBM $199,663.3 $223,529.3 $102,383.0 48.6% 25.6% -3.5% 2.2x 8.5x 2.2x 7.6x -5.9%Microsoft Corporation MSFT $278,220.5 $218,296.5 $77,849.0 74.0% 38.7% 5.6% 2.8x 7.3x 2.7x 6.7x 23.6%Oracle Corporation ORCL $147,537.5 $134,312.5 $37,180.0 80.9% 46.6% 0.2% 3.6x 7.7x 3.5x 6.8x -7.8%SAP AG DB:SAP $88,322.0 $90,401.3 $21,628.9 71.9% 34.3% 9.8% 4.2x 12.2x 3.8x 10.3x -8.1%

Median: $147,537.5 $134,312.5 $77,849.0 71.9% 34.3% 0.2% 2.8x 7.7x 2.7x 6.8x -5.9%



Levered FCF Margin 22.6%Cash from Operations Growth (YoY) -0.1%Cash from Investing Growth (YoY) 15.3%Cash from Financing Growth (YoY) -1.5%Levered FCF Growth (YoY) 2.3%





-10%

-5%

0%

5%

10%

15%

20%

25%IT Conglomerates Software Stock Market Return: January - August 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 YTDBango PLC BGO $127.2 $123.8 $17.6 19.1% -22.1% -34.4% 7.0x n/a n/a n/a -8.4%Glu Mobile, Inc. GLUU $170.7 $151.6 $101.5 71.0% -12.7% 6.0% 1.5x n/a 1.4x n/a 3.0%Gree TSE:3632 $1,854.5 $1,572.4 $1,534.0 84.3% 36.1% -3.8% 1.0x 2.8x n/a n/a -47.5%Millennial Media Inc MM $533.1 $410.4 $211.8 41.6% -0.6% 60.3% 1.9x n/a 1.3x 22.4x -49.8%Myriad Group AG MYRN $96.2 $113.3 $52.6 22.1% -16.2% 3.0% 2.2x n/a n/a n/a -33.2%NQ Mobile Inc. NQ $878.5 $757.4 $130.5 67.9% 4.6% 117.0% 5.8x 125.1x 3.3x 9.1x 180.9%Opera OB:OPERA $1,137.3 $1,081.1 $252.1 44.9% 27.8% 38.0% 4.3x 15.4x n/a n/a 62.7%Qihoo 360 Technology Co. Ltd QIHU $9,567.6 $9,193.4 $448.5 88.8% 22.3% 78.1% 20.5x 91.9x 11.3x 37.5x 161.6%Pandora Media P $3,249.7 $3,190.7 $528.0 34.6% -7.5% 56.0% 6.0x n/a 4.1x 82.1x 94.1%Synchronoss Technologies, Inc. SNCR $1,331.2 $1,281.3 $304.3 57.9% 20.7% 20.3% 4.2x 20.3x 3.3x 10.1x 58.9%Tangoe TNGO $780.4 $750.0 $175.4 54.4% 9.1% 38.1% 4.3x 46.9x 3.6x 21.1x 61.7%TeleCommunication Systems TSYS $151.4 $245.9 $460.4 35.3% 8.0% 2.5% 0.5x 6.7x 0.6x 6.0x 0.0%TeleNav TNAV $213.2 $21.5 $191.8 64.0% 8.1% -6.7% 0.1x 1.4x 0.1x n/a -32.1%Velti Plc VELT $31.8 $44.1 $232.1 45.7% -58.8% -1.6% 0.2x n/a 0.3x n/a -92.6%Zynga, Inc ZNGA $2,276.3 $1,161.0 $1,122.1 73.5% 15.0% -11.8% 1.0x 6.9x 1.6x n/a 18.4%

Median: $780.4 $750.0 $232.1 54.4% 8.0% 6.0% 2.2x 15.4x 1.6x 21.1x 3.0%



Levered FCF Margin 5.3%Cash from Operations Growth (YoY) 16.8%Cash from Investing Growth (YoY) 15.4%Cash from Financing Growth (YoY) 80.5%Levered FCF Growth (YoY) 43.8%





-5%

0%

5%

10%

15%

20%

25%

30%

35%Mobile Solutions/Content Software Stock Market Return: January - August 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 YTDAllot Communications Ltd. ALLT $397.3 $262.6 $99.5 71.0% 0.9% 7.2% 2.6x 305.7x 2.3x 11.6x -33.3%Aruba Networks, Inc. ARUN $1,898.6 $1,483.8 $600.0 70.6% 4.3% 16.1% 2.5x 57.8x 2.2x 11.0x -23.7%Brocade Communications Systems, BRCD $3,272.3 $3,081.1 $2,242.4 62.7% 22.2% 1.5% 1.4x 6.2x 1.4x 4.8x 29.6%Cisco Systems, Inc. CSCO $124,576.5 $90,177.5 $48,607.0 61.0% 28.5% 5.5% 1.9x 6.5x 1.8x 5.5x 16.3%Cyan, Inc. CYNI $430.2 $342.3 $116.6 41.1% -17.1% n/a 2.9x n/a 2.0x n/a -16.3%Compuware Corporation CPWR $2,290.3 $2,224.0 $945.9 64.2% 14.9% -6.0% 2.4x 15.8x 2.2x 10.3x -1.3%F5 Networks, Inc. FFIV $6,529.0 $5,977.7 $1,448.5 82.8% 31.6% 9.0% 4.1x 13.1x 3.8x 9.6x -17.5%Gigamon, LLC GIMO $1,030.1 $908.6 $115.8 77.3% -22.3% 41.8% 7.8x n/a 6.0x 55.3x 18.7%Juniper Networks, Inc. JNPR $9,579.3 $7,785.8 $4,469.0 63.8% 15.9% 3.1% 1.7x 11.0x 1.6x 6.3x -8.0%Radware Ltd. RDWR $639.1 $584.3 $189.3 81.0% 18.6% 5.7% 3.1x 16.6x 3.0x 15.8x -16.6%Riverbed Technology, Inc. RVBD $2,536.1 $2,645.0 $952.0 74.0% 14.3% 23.1% 2.8x 19.5x 2.4x 9.0x -27.0%

Median: $2,290.3 $2,224.0 $945.9 70.6% 14.9% 6.5% 2.6x 15.8x 2.2x 9.9x -16.3%








September 2013 Monthly Flash Report

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Networking/Network Performance Mgmt Software Stock Market Return: January - August 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 YTDAVG Technologies N.V. AVG $1,184.1 $1,179.1 $395.6 84.9% 34.2% 27.2% 3.0x 8.7x 2.6x 7.8x 34.6%Check Point Software Tech Ltd. CHKP $11,014.2 $9,773.7 $1,363.8 88.4% 56.1% 4.4% 7.2x 12.8x 6.8x 11.7x 13.9%Commtouch Software Ltd. CTCH $70.1 $68.2 $28.3 79.5% -2.3% 21.2% 2.4x n/a 2.0x n/a -16.6%Fortinet Inc. FTNT $3,219.2 $2,716.5 $570.7 71.6% 18.1% 18.0% 4.8x 26.3x 4.2x 19.3x -6.6%Guidance Software, Inc. GUID $241.7 $219.0 $126.6 69.5% -2.3% 10.9% 1.7x n/a 1.9x n/a -32.2%Imperva IMPV $1,168.3 $1,056.6 $118.1 78.2% -10.1% 32.5% 8.9x n/a 6.9x n/a 45.1%Palo Alto Networks, Inc PANW $3,416.0 $3,054.3 $396.1 72.3% -2.2% 55.3% 7.7x n/a 6.2x 53.0x -6.3%Proofpoint, Inc. PFPT $1,017.4 $930.9 $118.3 70.5% -12.1% 26.2% 7.9x n/a 6.6x n/a 122.1%Sourcefire, Inc. FIRE $2,374.8 $2,173.6 $247.4 76.9% 7.5% 26.7% 8.8x 117.7x 7.0x 33.9x 56.7%Symantec Corporation SYMC $17,911.6 $16,222.6 $6,947.0 83.8% 27.4% 3.0% 2.3x 8.5x 2.3x 7.1x 33.0%Trend Micro TSE:4704 $4,654.9 $3,345.8 $1,017.3 81.4% 33.0% 7.7% 3.3x 10.0x n/a n/a 17.7%VASCO Data Security International VDSI $305.4 $219.8 $147.8 64.4% 12.3% -12.5% 1.5x n/a 1.3x 8.1x -2.9%

Median: $1,779.5 $1,676.3 $321.5 77.5% 9.9% 19.6% 4.0x 11.4x 4.2x 11.7x 15.8%



Levered FCF Margin 8.6%Cash from Operations Growth (YoY) 20.8%Cash from Investing Growth (YoY) 12.7%Cash from Financing Growth (YoY) -93.2%Levered FCF Growth (YoY) -23.1%





-10%

-5%

0%

5%

10%

15%

20%

25%

30%Security Software Stock Market Return: January - August 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 YTDBrocade Communications Systems, BRCD $3,272.3 $3,081.1 $2,242.4 62.7% 22.2% 1.5% 1.4x 6.2x 1.4x 4.8x 29.6%CA, Inc. CA $13,327.1 $12,277.1 $4,626.0 86.1% 36.4% -3.5% 2.7x 7.3x 2.8x 7.3x 32.2%Cisco Systems, Inc. CSCO $124,576.5 $90,177.5 $48,607.0 61.0% 28.5% 5.5% 1.9x 6.5x 1.8x 5.5x 16.3%CommVault Systems, Inc. CVLT $3,917.5 $3,458.7 $519.0 87.0% 17.6% 21.7% 6.7x 38.0x 5.8x 23.1x 16.3%EMC EMC $53,644.4 $51,028.4 $22,308.9 62.6% 23.9% 6.4% 2.3x 9.6x 2.1x 6.3x 4.2%FalconStor Software, Inc. FALC $48.0 $26.9 $68.8 72.8% -14.5% -14.1% 0.4x n/a n/a n/a -57.4%IBM IBM $199,663.3 $223,529.3 $102,383.0 48.6% 25.6% -3.5% 2.2x 8.5x 2.2x 7.6x -5.9%Informatica Corporation INFA $3,871.6 $3,267.5 $861.8 83.4% 19.5% 6.5% 3.8x 19.5x 3.4x 12.4x 19.1%Microsoft Corporation MSFT $278,220.5 $218,296.5 $77,849.0 74.0% 38.7% 5.6% 2.8x 7.3x 2.7x 6.7x 23.6%NetApp, Inc. NTAP $14,127.5 $10,038.3 $6,404.0 59.7% 13.9% 3.0% 1.6x 11.3x 1.5x 6.6x 21.6%Oracle Corporation ORCL $147,537.5 $134,312.5 $37,180.0 80.9% 46.6% 0.2% 3.6x 7.7x 3.5x 6.8x -7.8%Splunk, Inc. SPLK $5,731.5 $5,384.3 $241.4 89.0% -14.4% 54.7% 22.3x n/a 16.7x n/a 88.7%TIBCO Software Inc. TIBX $3,698.6 $3,505.2 $1,035.2 71.5% 18.6% 4.4% 3.4x 18.2x 3.2x 11.8x 1.1%

Median: $13,327.1 $10,038.3 $4,626.0 72.8% 22.2% 4.4% 2.7x 8.5x 2.7x 6.8x 16.3%



Levered FCF Margin 17.8%Cash from Operations Growth (YoY) -1.2%Cash from Investing Growth (YoY) 3.9%Cash from Financing Growth (YoY) -1.5%Levered FCF Growth (YoY) -4.2%






-5%

0%

5%

10%

15%

20%

25%

30%Storage, Data Management & Integration Software Stock Market Return: January - August 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 YTDAmerican Software, Inc. AMSW.A $219.5 $156.0 $97.9 54.2% 14.4% -6.6% 1.6x 11.1x 1.5x 8.2x 0.4%Aspen Technology, Inc. AZPN $3,121.9 $2,932.5 $311.4 83.8% 19.2% 28.1% 9.4x 49.1x 7.9x 26.9x 19.6%Manhattan Associates, Inc. MANH $1,689.8 $1,583.3 $390.3 56.1% 23.7% 10.2% 4.1x 17.1x 3.7x 14.0x 38.8%The Descartes Systems Group Inc. TSX:DSG $666.9 $624.1 $138.7 67.7% 28.4% 17.1% 4.5x 15.9x 4.0x 13.6x 16.0%

Median: $1,178.3 $1,103.7 $225.0 61.9% 21.4% 13.6% 4.3x 16.5x 3.8x 13.8x 17.8%








0%

5%

10%

15%

20%

25%

30%Supply Chain Management & Logistics Software Stock Market Return: January - August 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 YTDBMC Software Inc. BMC $6,532.8 $6,128.3 $2,180.6 73.2% 28.8% 0.3% 2.8x 9.8x 2.8x 7.4x 11.9%CA Technologies CA $13,327.1 $12,277.1 $4,626.0 86.1% 36.4% -3.5% 2.7x 7.3x 2.8x 7.3x 32.2%Citrix Systems, Inc. CTXS $13,261.0 $12,560.9 $2,784.7 86.7% 21.9% 16.5% 4.5x 20.6x 4.0x 13.8x 3.8%Netscout Systems, Inc. NTCT $1,027.7 $878.6 $356.0 79.3% 24.2% 10.6% 2.5x 10.2x 2.2x 7.9x -7.1%Red Hat, Inc. RHT $9,563.6 $8,710.0 $1,377.3 84.7% 20.1% 16.4% 6.3x 31.4x 5.5x 19.1x -7.5%SolarWinds, Inc. SWI $2,748.8 $2,572.9 $295.7 92.7% 49.3% 26.8% 8.7x 17.6x 7.1x 14.2x -33.1%VMWare, Inc. VMW $36,143.9 $31,270.9 $4,861.4 85.1% 25.3% 16.3% 6.4x 25.5x 5.6x 14.0x -11.4%

Median: $9,563.6 $8,710.0 $2,180.6 85.1% 25.3% 16.3% 4.5x 17.6x 4.0x 13.8x -7.1%








-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Systems Management Software Stock Market Return: January - August 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 YTDAdvent Software, Inc. ADVS $1,370.2 $1,199.6 $370.8 70.0% 19.3% 6.7% 3.2x 16.8x 3.1x 10.7x 68.1%Broadridge Financial BR $3,543.4 $3,801.9 $2,430.8 28.1% 18.6% 5.5% 1.6x 8.4x 1.5x 7.5x 28.0%Fidessa LSE:FDSA $1,224.5 $1,146.8 $420.5 21.6% 20.1% -2.1% 2.7x 13.6x n/a n/a 39.0%Jack Henry & Associates, Inc. JKHY $4,254.9 $4,142.3 $1,129.4 42.2% 32.2% 10.0% 3.7x 11.4x 3.4x 10.2x 23.0%MSCI, Inc. MSCI $4,466.2 $4,949.7 $992.3 69.2% 45.0% 8.0% 5.0x 11.1x 4.8x 10.8x 16.7%SS&C Corporation SSNC $2,884.3 $3,734.6 $688.0 44.2% 38.8% 70.1% 5.4x 14.0x 5.0x 12.1x 52.6%

Median: $3,213.9 $3,768.2 $840.2 43.2% 26.2% 7.4% 3.5x 12.5x 3.4x 10.7x 33.5%



Levered FCF Margin 18.2%Cash from Operations Growth (YoY) 11.7%Cash from Investing Growth (YoY) 29.3%Cash from Financing Growth (YoY) -60.5%Levered FCF Growth (YoY) 28.9%






0%

5%

10%

15%

20%

25%

30%

35%

40%Vertical - Finance Software Stock Market Return:January - August 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 YTDBlackbaud, Inc. BLKB $1,644.1 $1,832.7 $483.6 54.3% 17.8% 22.3% 3.8x 21.3x 3.5x 15.5x 54.0%Constellation TSX:CSU $3,470.3 $3,620.9 $1,041.6 32.4% 19.9% 29.4% 3.5x 17.5x 2.8x 14.2x 36.8%EPIQ Systems, Inc. EPIQ $445.3 $694.0 $380.0 54.1% 19.1% 22.2% 1.8x 9.6x 1.6x 6.6x -4.1%Guidewire Software, Inc. GWRE $2,638.4 $2,484.3 $300.6 56.2% 7.2% 29.6% 8.3x 114.7x 7.6x 64.6x 49.0%Micros Systems MCRS $3,746.3 $3,117.3 $1,268.1 52.4% 19.9% 14.5% 2.5x 12.4x 2.4x 10.9x 12.0%PROS Holdings PRO $920.8 $832.5 $131.8 69.9% 6.5% 23.6% 6.3x 96.9x 5.2x 32.8x 69.4%Sapiens International SPNS $212.0 $182.8 $125.3 39.4% 13.3% 31.2% 1.5x 11.0x n/a n/a 40.2%Silver Spring Networks, Inc. SSNI $951.1 $827.5 $246.9 29.7% -27.3% 8.0% 3.4x n/a 2.0x 18.1x -7.3%The Active Network, Inc. ACTV $611.2 $507.1 $441.3 54.8% 3.0% 15.6% 1.1x 38.4x 1.1x 8.4x 85.6%Tyler Technologies, Inc. TYL $2,352.8 $2,349.7 $388.1 46.5% 19.8% 16.4% 6.1x 30.5x 5.3x 24.9x 47.8%

Median: $1,297.6 $1,332.6 $384.0 53.2% 15.5% 22.2% 3.4x 21.3x 2.8x 15.5x 44.0%



Levered FCF Margin 11.0%Cash from Operations Growth (YoY) 30.1%Cash from Investing Growth (YoY) 28.1%Cash from Financing Growth (YoY) -106.5%Levered FCF Growth (YoY) 13.0%





0%

10%

20%

30%

40%

50%

60%Vertical - Other Software Stock Market Return: January - August 2013

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 $990.9 $1,026.5 $170.8 70.6% 4.7% 24.9% 6.1x 46.5x 5.4x 24.1x 39.7% CRM & Marketing $722.5 $616.6 $169.2 71.0% 2.1% 27.3% 4.2x 87.8x 3.3x 18.8x 8.9% ERP & Supply Chain $1,037.8 $1,187.6 $150.0 68.4% 2.2% 36.7% 9.4x 76.3x 8.2x 44.6x 39.6% Vertically Focused $1,595.4 $1,561.1 $245.8 67.7% 15.8% 22.6% 5.7x 28.3x 4.8x 14.6x 31.7% Workforce Management $2,648.1 $2,575.5 $149.2 60.2% -13.7% 42.2% 10.3x 72.0x 8.5x 38.8x 41.5%

Category Name








-10%

0%

10%

20%

30%

40%

50%SEG SaaS Index Stock Market Return: January - August 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 YTDBazaarvoice, Inc BV $798.5 $703.1 $169.2 66.6% -27.4% 41.3% 4.2x n/a 3.8x n/a 8.9%Constant Contact CTCT $586.9 $487.7 $268.6 71.0% 7.3% 14.8% 1.8x 24.9x 1.6x 9.8x 30.0%Cvent NYSE:CVT $1,376.9 $1,336.0 $89.6 75.5% 10.7% n/a 14.9x 138.9x n/a n/a 8.4%LivePerson LPSN $503.6 $428.7 $167.9 76.2% 7.5% 14.9% 2.6x 34.2x 2.3x 18.8x -32.4%Marketo MKTO $1,299.3 $1,184.1 $74.5 57.2% -49.4% n/a 15.9x n/a 11.7x n/a 51.9%Marin Software MRIN $428.7 $314.0 $67.9 57.9% -41.4% n/a 4.6x n/a 3.7x n/a -18.8%Responsys MKTG $722.5 $616.6 $183.2 54.1% 9.2% 23.2% 3.4x 36.7x 2.9x 24.2x 122.5%Salesforce.com CRM $29,281.5 $31,097.8 $3,472.8 77.1% 2.1% 31.4% 9.0x 429.4x 6.7x 42.5x 14.8%Vocus VOCS $195.2 $237.3 $185.2 79.9% 0.5% 34.3% 1.3x 267.2x 1.2x 10.1x -48.9%

Median: $722.5 $616.6 $169.2 71.0% 2.1% 27.3% 4.2x 87.8x 3.3x 18.8x 8.9%









-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%CRM & Marketing SaaS Stock Market Return: January - August 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 YTDE2open, Inc EOPN $521.5 $491.1 $75.1 67.8% -3.4% 17.4% 6.5x n/a 6.1x n/a 39.6%Fleetmatics FLTX $1,762.3 $1,680.7 $150.0 74.0% 24.1% 38.7% 11.2x 46.5x 8.7x 28.2x 98.4%Netsuite N $7,376.0 $7,182.5 $357.4 67.8% -7.8% 32.8% 20.1x n/a 15.5x 160.1x 44.1%SciQuest SQI $476.0 $429.6 $78.7 68.4% 2.2% 36.7% 5.5x 247.8x 4.7x 23.3x 25.7%SPS Commerce SPSC $944.0 $868.9 $92.2 69.9% 8.9% 40.2% 9.4x 106.1x 7.7x 60.9x 58.5%Unit 4 ENXTAM:U $1,037.8 $1,187.6 $623.0 92.8% 14.8% 5.4% 1.9x 12.9x n/a n/a 14.4%Workday, Inc. WDAY $12,547.7 $11,729.3 $353.3 60.2% -28.4% 77.4% 33.2x n/a 21.3x n/a 37.1%

Median: $1,037.8 $1,187.6 $150.0 68.4% 2.2% 36.7% 9.4x 76.3x 8.2x 44.6x 39.6%









-10%

0%

10%

20%

30%

40%

50%ERP & Supply Chain SaaS Stock Market Return: January - August 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 YTDAthenahealth, Inc ATHN $3,887.2 $4,099.9 $494.1 59.6% 8.6% 31.3% 8.3x 96.1x 6.0x 30.1x 39.8%DealerTrack TRAK $1,732.0 $1,732.9 $431.7 43.3% 14.1% 15.1% 4.0x 28.4x 3.5x 14.0x 31.7%Ebix Inc. EBIX $431.7 $467.4 $211.4 81.0% 39.2% 18.6% 2.2x 5.6x 2.2x 5.6x -30.1%Ellie Mae ELLI $768.6 $697.6 $122.5 76.5% 23.6% 57.2% 5.7x 24.2x 4.8x 14.1x 3.9%Medidata Solutions MDSO $2,386.0 $2,245.7 $245.8 73.0% 16.1% 24.5% 9.1x 56.8x 7.4x 30.9x 115.9%RealPage RP $1,595.4 $1,561.1 $352.4 60.6% 15.8% 20.7% 4.4x 28.1x 3.7x 15.2x -4.8%Textura Corp. TXTR $865.2 $808.7 $31.0 67.7% -93.3% n/a 26.1x n/a 16.0x n/a 81.5%

Median: $1,595.4 $1,561.1 $245.8 67.7% 15.8% 22.6% 5.7x 28.3x 4.8x 14.6x 31.7%



Levered FCF Margin 12.1%Cash from Operations Growth (YoY) -5.4%Cash from Investing Growth (YoY) -272.5%Cash from Financing Growth (YoY) 5.7%Levered FCF Growth (YoY) 25.4%






-10%

0%

10%

20%

30%

40%

50%Vertically Focused SaaS Stock Market Return: January - August 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 YTDCallidus Software Inc. CALD $292.4 $327.7 $100.6 50.3% -13.7% 12.6% 3.3x n/a 2.9x 24.1x 63.3%Cornerstone OnDemand CSOD $2,648.1 $2,575.5 $149.2 70.3% -19.5% 60.2% 17.3x n/a 11.7x 296.9x 69.9%Halogen Software, Inc. TSX:HGN $275.2 $216.9 $43.0 73.9% -6.8% n/a 5.0x n/a 4.2x n/a -0.5%The Ultimate Software Group, Inc. ULTI $3,902.8 $3,821.7 $370.2 57.6% 14.3% 24.2% 10.3x 72.0x 8.5x 38.8x 41.5%Workday, Inc. WDAY $12,547.7 $11,729.3 $353.3 60.2% -28.4% 77.4% 33.2x n/a 21.3x n/a 37.1%

Median: $2,648.1 $2,575.5 $149.2 60.2% -13.7% 42.2% 10.3x 72.0x 8.5x 38.8x 41.5%

TTM Revenue Growth 42.2%TTM EBITDA Growth -32.3%TTM Earnings Growth -35.7%Gross Profit Margin 60.2%EBITDA Margin -13.7%Net Income Margin -28.2%SG&A Expenses as a % of Total Revenue 57.2%R&D Expenses as a % of Total Revenue 17.3%








-10%

0%

10%

20%

30%

40%

50%

60%Workforce Management SaaS Stock Market Return: January - August 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 YTDChannelAdvisors ECOM $662.8 $581.7 $59.9 72.8% -5.1% n/a 9.7x n/a 7.9x n/a 66.1%Concur CNQR $5,475.1 $5,195.1 $506.8 72.3% 9.2% 21.5% 10.3x 112.0x 8.0x 36.7x 39.7%Demandware, Inc. DWRE $1,288.7 $1,184.3 $88.7 70.9% -13.5% 33.4% 13.3x n/a 10.2x n/a 52.2%inContact, Inc. SAAS $444.4 $400.4 $121.3 47.7% 1.4% 24.9% 3.3x 233.6x 2.8x 67.3x 48.6%IntraLinks Holdings IL $430.4 $430.0 $224.9 72.2% 1.2% 6.2% 1.9x 158.1x 1.9x 11.1x 22.6%J2 Global JCOM $2,243.8 $2,164.4 $450.3 82.7% 44.5% 29.7% 4.8x 10.8x 4.1x 9.3x 57.6%Jive Software, Inc JIVE $852.0 $726.7 $130.5 61.6% -37.0% 36.5% 5.6x n/a 4.5x n/a -17.4%OpenTable, Inc. OPEN $1,709.8 $1,617.8 $173.8 74.8% 31.2% 15.5% 9.3x 29.9x 7.9x 18.4x 45.1%Qualys, Inc. QLYS $639.7 $534.6 $99.2 78.5% 12.3% 18.9% 5.4x 43.7x 4.6x 27.0x 28.1%Service-now.com NOW $6,413.2 $6,159.4 $327.7 61.4% -10.3% 84.5% 18.8x n/a 12.5x 212.8x 55.2%Tableau Software DATA $4,278.9 $4,057.5 $163.8 91.4% -2.7% n/a 24.8x n/a 17.3x n/a 42.5%Tangoe TNGO $780.4 $750.0 $175.4 54.4% 9.1% 38.1% 4.3x 46.9x 3.6x 21.1x 61.7%Zix Corporation ZIXI $267.2 $240.9 $46.3 83.2% 19.9% 15.5% 5.2x 26.1x 4.6x 15.1x 46.6%

Median: $852.0 $750.0 $163.8 72.3% 1.4% 24.9% 5.6x 45.3x 4.6x 21.1x 46.6%









-10%

0%

10%

20%

30%

40%

50%

60%Other Public SaaS Companies SaaS Stock Market Return: January - August 2013

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 YTD Ad Tech & Lead Generation $1,657.7 $1,686.4 $531.5 64.8% 12.2% 17.9% 2.4x 21.1x 2.2x 13.3x 30.0% Commerce $609.4 $441.7 $423.5 38.9% 6.7% 15.4% 1.0x 14.8x 1.0x 11.5x 34.6% Content & Media $2,528.2 $2,161.2 $488.3 52.3% 15.9% 14.1% 2.7x 19.6x 3.0x 13.1x 30.2% Gaming $2,329.97 $1,685.0 $928.9 72.5% 35.5% 19.8% 2.5x 6.9x 1.7x 6.9x 30.2% Infrastructure $632.47 $514.0 $272.0 62.2% 7.1% 1.7% 1.2x 12.6x 1.2x 10.4x 14.9% Services $1,398.09 $1,269.0 $261.1 70.1% 5.0% 41.2% 3.9x 30.1x 3.3x 28.5x 56.5% Social $6,827.25 $5,878.8 $721.5 74.9% 12.8% 41.4% 15.1x 33.5x 11.5x 57.2x 47.5% Travel $4,330.46 $3,816.8 $789.3 80.7% 16.8% 20.8% 4.6x 21.2x 5.0x 15.7x 45.2%


Current Ratio 2.2Quick Ratio 1.9Cash as Percent of Market Cap 16.3%Avg Days Outstanding: Accounts Receivable 38Avg Days Outstanding: Accounts Payable 56Working Capital to TTM Operating Expense Ratio 0.5






0%

5%

10%

15%

20%

25%

30%

35%

40%

45%SEG Internet Index Stock Market Return: January - August 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 YTDAngie's List, Inc. ANGI $1,223.7 $1,172.4 $199.6 72.5% -17.2% 67.6% 5.9x n/a 4.0x 182.3x 74.8%Baidu.com, Inc. BIDU $47,404.9 $43,987.8 $4,251.8 74.8% 50.7% 42.2% 10.3x 20.4x 7.5x 17.4x 30.2%Bankrate, Inc. RATE $1,743.1 $1,825.3 $424.0 66.5% 21.9% -10.5% 4.3x 19.7x 3.7x 13.3x 34.3%Digital Generation, Inc. DGIT $342.5 $681.3 $385.7 64.6% 26.7% 1.0% 1.8x 6.6x 1.7x 5.4x 8.2%eHealth, Inc. EHTH $509.6 $419.9 $165.9 96.6% 11.6% 10.2% 2.5x 21.7x 2.3x 13.5x 1.2%Google Inc. GOOG $282,035.5 $235,803.5 $55,797.0 57.0% 30.5% 30.5% 4.2x 13.9x 3.7x 10.2x 17.1%Groupon GRPN $6,761.9 $5,577.9 $2,417.0 62.3% 5.5% 17.9% 2.3x 41.9x 2.1x 16.0x 104.8%InterActiveCorp IACI $4,073.2 $4,082.1 $3,021.4 64.9% 15.9% 24.1% 1.4x 8.5x 1.2x 5.9x 6.1%LinkedIn LNKD $26,908.3 $26,034.9 $1,244.0 87.0% 12.8% 71.9% 20.9x 164.0x 14.5x 57.2x 113.1%Marchex Inc. MCHX $243.9 $225.2 $144.0 40.0% 2.1% -2.9% 1.6x 74.2x 1.5x 15.8x 60.4%QuinStreet QNST $376.6 $341.4 $305.1 17.5% 11.0% -17.6% 1.1x 10.1x 1.1x 8.4x 27.5%ReachLocal, Inc. RLOC $308.0 $226.1 $488.0 49.8% 1.9% 17.7% 0.5x 24.3x 0.4x 6.5x -19.4%SINA Corporation SINA $5,168.0 $4,412.2 $575.0 54.1% 2.6% 14.7% 7.7x 294.0x 6.2x 43.3x 48.1%Sohu.com Inc. SOHU $2,383.6 $2,037.4 $1,231.4 66.9% 30.4% 28.1% 1.7x 5.4x 1.4x 9.8x 29.8%Tree.Com, Inc. TREE $278.5 $193.2 $112.7 94.7% 4.5% 108.9% 1.7x 38.1x 1.4x 8.5x 38.5%Tremor, Inc. TRMR $394.4 $531.8 $122.9 45.2% -1.4% n/a 4.3x n/a 3.6x n/a -11.6%ValueClick, Inc. VCLK $1,572.2 $1,547.6 $685.7 62.3% 31.8% 13.6% 2.3x 7.1x 2.1x 6.2x 7.6%Yandex YNDX $10,445.1 $10,228.9 $1,014.2 75.8% 44.2% 37.1% 10.1x 22.8x 7.6x 16.7x 39.2%

Median: $1,657.7 $1,686.4 $531.5 64.8% 12.2% 17.9% 2.4x 21.1x 2.2x 13.3x 30.0%


Current Ratio 2.2xQuick Ratio 1.9xCash as Percent of Market Cap 16.6%Avg Days Outstanding: Accounts Receivable 42.7xAvg Days Outstanding: Accounts Payable 63.4xWorking Capital to TTM Operating Expense Ratio 0.3x






-10%

0%

10%

20%

30%

40%

50%Internet Ad Tech and Lead Generation Stock Market Return: January - August 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 YTD1-800-FLOWERS.COM, Inc. FLWS $347.3 $347.1 $735.5 41.5% 6.1% 2.7% 0.5x 7.8x 0.4x 6.7x 43.9%Amazon.com, Inc. AMZN $128,375.3 $123,954.3 $66,848.0 26.0% 4.4% 23.0% 1.9x 42.4x 1.5x 20.9x 9.2%Bitauto Holdings Limited BITA $552.0 $466.7 $196.8 73.8% 17.7% 45.6% 2.4x 13.4x 1.8x 9.9x 87.9%BlueNile NILE $449.7 $403.0 $431.1 18.6% 3.6% 19.3% 0.9x 26.0x 0.8x 16.2x -6.7%DangDang DANG $626.9 $416.7 $932.8 15.7% -6.4% 29.3% 0.4x n/a 0.4x n/a 79.1%Digital River Inc. DRIV $591.9 $326.2 $399.2 80.9% 7.3% -0.4% 0.8x 11.2x 0.8x 7.7x 16.9%eBay Inc. EBAY $64,713.7 $58,810.7 $15,022.0 69.3% 29.4% 15.4% 3.9x 13.3x 3.4x 10.1x -6.7%GeekNet GKNT $110.2 $62.5 $125.2 19.5% 0.7% 19.4% 0.5x 69.2x 0.4x 12.9x -5.6%Liquidity Services, Inc. LQDT $940.9 $877.6 $499.0 43.0% 17.9% 15.4% 1.8x 9.8x 1.8x 7.9x -28.9%Mecox Lane Limited MCOX $44.7 $42.5 $118.4 36.3% -16.5% -36.7% 0.4x n/a n/a n/a 30.5%Mercadolibre, Inc. MELI $5,240.5 $5,053.9 $415.9 78.3% 35.4% 22.1% 12.2x 34.3x 9.4x 25.1x 44.7%Overstock.com, Inc. OSTK $668.1 $583.3 $1,202.6 18.7% 3.0% 13.9% 0.5x 16.2x 0.4x 13.0x 87.8%PetMed Express, Inc. PETS $293.9 $243.4 $233.1 33.8% 12.6% -0.2% 1.0x 8.3x 1.0x 8.1x 38.6%Stamps.com STMP $655.2 $595.5 $123.4 76.8% 26.3% 13.5% 4.8x 18.4x 4.3x 15.1x 60.1%

Median: $609.4 $441.7 $423.5 38.9% 6.7% 15.4% 1.0x 14.8x 1.0x 11.5x 34.6%








-10%

0%

10%

20%

30%

40%

50%

60%

70%

Internet Commerce Internet Stock Market Return: January - August 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 YTDAOL, Inc. AOL $2,528.2 $2,161.2 $2,210.8 30.6% 22.4% 1.9% 1.0x 4.4x 0.9x 4.5x 8.7%DemandMedia DMD $566.2 $516.3 $403.0 52.3% 17.9% 16.7% 1.3x 7.2x 1.3x 5.8x -33.3%InterActiveCorp IACI $4,073.2 $4,082.1 $3,021.4 64.9% 15.9% 24.1% 1.4x 8.5x 1.2x 5.9x 6.1%Netflix NFLX $16,728.7 $16,148.6 $3,943.7 28.0% 4.4% 14.1% 4.1x 94.0x 3.4x 39.9x 208.6%Pandora P $3,249.7 $3,190.7 $528.0 34.6% -7.5% 56.0% 6.0x n/a 4.1x 82.1x 94.1%Shutterstock, Inc. SSTK $1,673.9 $1,561.1 $199.3 61.8% 21.9% 38.4% 7.8x 35.8x 6.2x 26.7x 88.5%TheStreet.com, Inc. TST $74.6 $24.4 $51.5 49.7% -3.3% -4.5% 0.5x n/a n/a n/a 30.2%WebMD Health Corp. WBMD $1,557.8 $1,331.7 $488.3 57.6% 10.9% -3.4% 2.7x 24.9x 2.5x 10.7x 106.7%XO Group XOXO $295.0 $212.2 $131.2 82.7% 17.4% 3.1% 1.6x 9.3x 1.5x 7.4x 25.6%Yahoo! Inc. YHOO $27,671.1 $25,141.2 $4,823.2 69.2% 26.6% -3.1% 5.2x 19.6x 5.6x 15.6x 35.1%Youku YOKU $3,846.1 $3,304.2 $392.0 27.8% 2.5% 95.8% 8.4x 342.4x 5.5x 81.2x 18.3%

Median: $2,528.2 $2,161.2 $488.3 52.3% 15.9% 14.1% 2.7x 19.6x 3.0x 13.1x 30.2%



Levered FCF Margin 11.6%Cash from Operations Growth (YoY) -5.7%Cash from Investing Growth (YoY) -33.8%Cash from Financing Growth (YoY) 101.6%Levered FCF Growth (YoY) 36.4%






0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Internet Content & Media Stock Market Return: January - August 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 YTDChangYou.com CYOU $1,480.2 $1,332.7 $699.3 82.8% 61.4% 25.2% 1.9x 3.1x 1.7x 3.5x 1.6%Giant Interactive GA $1,777.5 $1,251.2 $370.5 90.2% 65.0% 14.4% 3.4x 5.2x 3.1x 4.6x 30.6%Netease NTES $9,185.0 $6,516.5 $1,414.8 71.5% 47.6% 8.8% 4.6x 9.7x 4.0x 7.8x 70.3%NCSoft KOSE:A036 $2,897.5 $2,341.6 $735.7 70.6% 33.9% 46.6% 3.2x 9.4x n/a n/a 0.6%Perfect World PWRD $951.7 $649.4 $441.0 78.3% 21.2% -6.0% 1.5x 7.0x 1.2x 6.9x 84.8%Sohu.com Inc. SOHU $2,383.6 $2,037.4 $1,231.4 66.9% 30.4% 28.1% 1.7x 5.4x 1.4x 9.8x 29.8%Tencent Holdings SEHK:700 $86,232.7 $83,033.0 $8,409.2 56.2% 37.0% 45.1% 9.9x 26.7x n/a n/a 41.7%Zynga, Inc. ZNGA $2,276.3 $1,161.0 $1,122.1 73.5% 15.0% -11.8% 1.0x 6.9x 1.6x n/a 18.4%

Median: $2,330.0 $1,685.0 $928.9 72.5% 35.5% 19.8% 2.5x 6.9x 1.7x 6.9x 30.2%



Levered FCF Margin 11.7%Cash from Operations Growth (YoY) 13.0%Cash from Investing Growth (YoY) -13.1%Cash from Financing Growth (YoY) -28.1%Levered FCF Growth (YoY) -24.9%





0%

10%

20%

30%

40%

50%

60%Internet Gaming Stock Market Return: January - August 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 YTD8x8, Inc. EGHT $673.1 $615.3 $112.4 69.6% 13.8% 21.4% 5.5x 39.8x 4.6x 24.2x 23.8%Akamai Technologies, Inc. AKAM $8,191.8 $7,661.0 $1,469.3 72.3% 37.0% 17.0% 5.2x 14.1x 4.6x 10.6x 9.1%Brightcove Inc. BCOV $264.8 $234.3 $98.0 67.2% -8.2% 27.7% 2.4x n/a 2.0x 57.1x -4.7%BroadSoft, Inc. BSFT $905.1 $842.9 $169.6 79.0% 9.2% 9.4% 5.0x 54.1x 4.2x 17.0x -12.5%Digital River Inc. DRIV $591.9 $326.2 $399.2 80.9% 7.3% -0.4% 0.8x 11.2x 0.8x 7.7x 16.9%Envivio, Inc. ENVI $68.5 $18.6 $33.9 64.3% -43.3% -36.5% 0.5x n/a 0.5x n/a 36.3%Harmonic Inc HLIT $714.9 $553.3 $510.8 46.1% 5.8% -2.0% 1.1x 18.8x 1.1x 10.6x 33.6%Interactive Intelligence, Inc. ININ $1,180.1 $1,104.3 $279.3 65.3% 6.9% 28.5% 4.0x 57.2x 3.4x 45.8x 71.3%Limelight Networks, Inc. LLNW $195.8 $78.2 $180.0 51.8% -4.0% 1.7% 0.4x n/a 0.4x 23.0x -13.7%Mitel Networks Corp. MITL $242.6 $474.8 $580.0 56.1% 15.1% -3.5% 0.8x 5.4x 0.8x 5.0x 41.4%Polycom, Inc. PLCM $1,684.4 $1,074.5 $1,372.4 58.6% 7.4% -5.1% 0.8x 10.6x 0.8x 5.4x -10.5%Rovi Corporation ROVI $1,806.1 $2,474.5 $626.3 82.2% 33.8% -7.0% 4.0x 11.7x 3.9x 9.1x 12.8%SeaChange International Inc. SEAC $327.5 $213.2 $156.8 55.6% 10.8% -1.8% 1.4x 12.6x 1.2x 7.7x -1.3%ShoreTel, Inc. SHOR $289.0 $266.7 $313.5 60.1% -1.4% 27.1% 0.9x n/a 0.8x 11.4x 8.6%Sonus Networks, Inc SONS $975.8 $763.2 $264.7 56.6% -5.8% 0.8% 2.9x n/a 2.7x n/a 76.9%Synacor, Inc SYNC $71.6 $36.5 $116.4 46.1% 5.3% 1.7% 0.3x 5.9x 0.3x 8.6x -54.1%Tucows Inc. TCX $101.8 $102.8 $120.2 22.2% 5.0% 12.2% 0.9x 17.2x 0.8x 10.1x 62.1%VeriSign VRSN $6,890.5 $6,249.3 $929.5 80.9% 61.9% 13.3% 6.7x 10.9x 6.3x 9.8x 20.4%

Median: $632.5 $514.0 $272.0 62.2% 7.1% 1.7% 1.2x 12.6x 1.2x 10.4x 14.9%








-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Internet Infrastructure Stock Market Return: January - August 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 YTDAngie's List, Inc. ANGI $1,223.7 $1,172.4 $199.6 72.5% -17.2% 67.6% 5.9x n/a 4.0x 182.3x 74.8%Bankrate RATE $1,743.1 $1,825.3 $424.0 66.5% 21.9% -10.5% 4.3x 19.7x 3.7x 13.3x 34.3%Carbonite, Inc. CARB $403.3 $344.7 $96.0 66.1% -3.0% 33.2% 3.6x n/a 3.0x 95.0x 58.3%LifeLock, Inc. LOCK $1,118.9 $949.5 $322.5 71.8% 5.6% 41.2% 2.9x 53.0x 2.4x 19.4x 52.8%Monster Worldwide, Inc. MWW $508.7 $568.1 $844.1 54.6% 15.8% -10.1% 0.7x 4.3x 0.7x 3.7x -24.0%Qihoo QIHU $9,567.6 $9,193.4 $448.5 88.8% 22.3% 78.1% 20.5x 91.9x 11.3x 37.5x 161.6%Shutterfly SFLY $1,960.9 $1,833.0 $700.5 53.2% 11.8% 32.0% 2.6x 22.1x 2.2x 11.9x 68.5%Tree.Com, Inc. TREE $278.5 $193.2 $112.7 94.7% 4.5% 108.9% 1.7x 38.1x 1.4x 8.5x 38.5%Trulia, Inc. TRLA $1,572.4 $1,365.7 $92.8 86.1% -0.7% 81.1% 14.7x n/a 8.5x 54.8x 143.2%VistaPrint VPRT $1,750.5 $1,938.8 $1,167.5 65.7% 9.1% 14.4% 1.7x 18.3x 1.5x 11.1x 54.8%Xoom XOOM $887.7 $784.1 $99.9 68.4% 4.3% n/a 7.9x 181.8x 6.2x 168.6x 5.5%Zillow Z $3,621.7 $3,452.1 $152.1 89.6% -1.6% 69.9% 22.7x n/a 15.4x 107.6x 240.8%

Median: $1,398.1 $1,269.0 $261.1 70.1% 5.0% 41.2% 3.9x 30.1x 3.3x 28.5x 56.5%








0%

10%

20%

30%

40%

50%

60%

70%

Internet Services Stock Market Return: January - August 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 YTDFacebook FB $100,564.1 $92,479.1 $6,118.0 74.9% 45.2% 41.4% 15.1x 33.5x 11.0x 20.5x 47.5%LinkedIn LNKD $26,908.3 $26,034.9 $1,244.0 87.0% 12.8% 71.9% 20.9x 164.0x 14.5x 57.2x 113.1%Mail.ru Group LSE:MAIL $6,827.3 $5,878.8 $721.5 56.3% 44.3% 32.2% 8.1x 18.4x n/a n/a 7.4%Renren Inc RENN $1,234.9 $398.6 $195.4 63.3% -46.7% 35.8% 2.0x n/a 1.9x n/a -6.3%Yelp, Inc. YELP $3,390.1 $3,293.3 $178.7 92.8% -1.2% 66.6% 18.4x n/a 11.9x 80.2x 163.9%

Median: $6,827.3 $5,878.8 $721.5 74.9% 12.8% 41.4% 15.1x 33.5x 11.5x 57.2x 47.5%



Levered FCF Margin 25.2%Cash from Operations Growth (YoY) 69.2%Cash from Investing Growth (YoY) 2.6%Cash from Financing Growth (YoY) -107.2%Levered FCF Growth (YoY) n/a






-20%

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40%

60%

80%

100%

120%Internet Social Stock Market Return: January - August 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 YTDCtrip CTRP $5,972.0 $5,281.0 $761.9 74.7% 16.3% 23.6% 6.9x 42.6x 5.6x 21.6x 98.7%Expedia EXPE $6,359.1 $5,806.3 $4,391.3 77.6% 13.8% 19.8% 1.3x 9.6x 1.2x 6.3x -25.5%HomeAway AWAY $2,689.0 $2,352.7 $310.8 83.7% 18.3% 21.7% 7.6x 41.4x 6.3x 21.7x 43.4%MakeMyTrip MMYT $513.3 $442.4 $241.9 21.5% -8.2% 15.9% 1.8x n/a 4.4x n/a 3.5%Orbitz OWW $1,026.8 $1,254.0 $816.7 80.8% 13.5% 6.0% 1.5x 11.4x 1.4x 8.6x 230.2%Priceline PCLN $48,335.2 $44,685.3 $5,879.2 80.5% 35.8% 22.3% 7.6x 21.2x 6.0x 15.7x 47.0%Travelzoo TZOO $414.9 $341.1 $156.0 89.4% 17.4% 2.3% 2.2x 12.6x 2.0x 10.2x 39.2%TripAdvisor Inc TRIP $10,576.6 $10,565.2 $859.0 98.3% 39.0% 22.8% 12.3x 31.5x 10.0x 24.8x 67.5%

Median: $4,330.5 $3,816.8 $789.3 80.7% 16.8% 20.8% 4.6x 21.2x 5.0x 15.7x 45.2%








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60%Internet Travel Stock Market Return: January - August 2013

Travel S&P NASDAQ SEG Internet Index

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