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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2016

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2016

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 4Q 2016

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS OVERVIEW

SOFTWARE PUBLIC COMPARABLES OVERVIEW

TECHNOLOGY IPO OVERVIEW

DEBT MARKET OVERVIEW

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Infrastructure and Security Software

IT and Tech-enabled Services

Data Center and Managed Services

INTERNET & DIGITAL MEDIA

AdTech and Marketing Solutions

Consumer Internet

Digital Media and Content

eCommerce

Mobile

HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

25 year history with over 120 closed transactions in the last 24 months

Approximately 250 professionals across eight offices in the U.S. and Europe

Strategic relationships in India and China

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education

Energy, Power, and Infrastructure

Fintech

Healthcare IT

Public Sector and Non-Profit

Supply Chain, Transportation, and Logistics

Manufacturing

Professional Services

has been recapitalized by

has been acquired by has been acquired by

Baarsma B2C trades as:

has been acquired byhas been acquired by has been acquired byhas been acquired byhas been

recapitalized byhas acquired

has received a majority investment from


has been acquired by

mailto:[email protected]




mailto:*[email protected]

http://www.leisurepassgroup.com/


PAGE |



CASE STUDY: MINISTRY BRANDS

HW&CO. DEAL CONTACTS

Ministry Brands is the leading provider of an end-to-endSaaS-based technology platform to member-centricorganizations, including faith-based organizations and K-12private education institutions, serving over 60,000customers.

Ministry has successfully demonstrated that integratingpayment platforms with membership managementsoftware (CRM, ERP) can create a true differentiator in themarketplace and result in significant synergies and growthopportunities.

With the recapitalization from Insight, and havingcompleted over 35 acquisitions historically, Ministry ispositioned as the largest and most active consolidator inthe membership management software and paymentssector.

HW&Co.’s TMT Group advised Genstar Capital and Providence Strategic Growth on the majorityinvestment in Ministry Brands by Insight Venture Partners.

2

a portfolio company of

and


Date Closed:

12/2/2016

Relevant Sectors:

SaaS

Fintech / Payments

Membership Management

Ministry represents a key client relationship, with HW&Co. advising on the successful recapitalization of the company by Genstar Capital in 2015 before advising on the majority investment from Insight Venture Partners.

KEY RELATIONSHIP

Enterprise Software

Jeff BistrongManaging Director

[email protected]

Office: (617) 654-2102

Tyler DewingDirector

[email protected]

Office: (617) 654-2133

Priyanka NaithaniVice President

[email protected]

Office: (617) 654-2115

Mike WilkinsManaging Director

[email protected]

Office: (415) 217-3411

Andy LeedVice President

[email protected]

Office: (617) 654-2107

recapitalized bymajority investment

from






PAGE | 3



SELECT SOFTWARE M&A TRANSACTIONS – 4Q 2016

Roper Technology’s acquisition of Deltek

Deltek is a leading global provider of enterprise software and information solutions for project-based businesses that serve nichemarkets, including government contractors and professional services firms.

Approximately 22,000 organizations and millions of users spanning 80 countries use Deltek’s solutions to research and identifybusiness opportunities, recruit talent, optimize resources, streamline operations, and deliver projects profitably and on time.

The acquisition of Deltek complements Roper’s recent acquisitions of Aderant and ConstructConnect and significantlyenhances Roper’s reach and capabilities in application software.

Ent. Value: $2,800M

Revenue: $535M

EV / Rev: 5.2x

EV / EBITDA: 14.0x

December 28, 2016

Oracle’s pending acquisition of Dynamic Network Services

Dyn is a leading Internet Performance and DNS provider that enables faster access, reduced page load times, and higher end-user satisfaction by monitoring, controlling, and optimizing Internet applications and cloud services.

Global network drives 40 billion traffic optimization decisions daily for more than 3,500 enterprise customers, including a numberof major digital brands such as Netflix, Twitter, Pfizer, and CNBC.

Dyn’s DNS solution is a natural extension to Oracle’s existing cloud computing platform and will provide Oracle’s enterprisecustomers with complete Infrastructure-as-a-Service and Platform-as-a-Service solutions.

Ent. Value: $700M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Pending

Vista Equity Partners’ pending acquisition of SunGard Public Sector and SunGard K-12 Education

SunGard’s Public Sector and K-12 Education segments provide a comprehensive set of technology solutions purpose-built toaddress the public safety and public administration needs of government entities as well as K-12 school districts.

The segments’ solutions help public administrations and school districts reduce administrative complexities and improveproductivity by enabling effective management of HR and finance functions.

As part of the acquisition, SunGard Public Sector will become a new independent company under the ownership of VistaEquity, while SunGard K-12 Education will become part of Vista-owned PowerSchool.

Pending

Ent. Value: $850M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Francisco Partners’ acquisition of Prometheus Group

Prometheus Group is a leading global provider of enterprise asset management and plant maintenance software solutions,enabling improved efficiency and effectiveness of maintenance, planning, scheduling, and execution.

The company serves hundreds of blue-chip customers, including 70% of the top 10 companies globally in its core verticals,which include the chemical, utility, mining, manufacturing, and oil and gas markets.

Francisco Partners will leverage its deep understanding of the market to support Prometheus Group in identifying newtechnologies and complementary solutions to drive organic and inorganic growth.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

November 8, 2016

Hearst’s acquisition of CAMP Systems

CAMP Systems is a leading provider of enterprise software solutions for managing and tracking the maintenance of aircraftused in business aviation as well as enterprise information systems for managing service centers.

The company’s mission-critical solutions enable more than 19,000 aircraft, 30,000 engines, and 1,300 maintenance facilitiesglobally to comply with global regulations and guidelines regarding aircraft maintenance and safety.

The acquisition is in line with Hearst’s strategy of growing its data and information-based solutions and entering new marketsthrough its Hearst Business Media unit.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

December 7, 2016

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME

The 10 most active strategic software acquirers registered 75 acquisitions in 2016, with Google and IBM each completing 14 acquisitions during the year.

Commensurate with its acquisition strategy focused on expanding its cloud offering, Google capped off a year of strong activity with the acquisition of Qwiklabs, a public cloud infrastructure training platform that the company will use to foster cloud adoption and utilization.

Global strategic software M&A remained in line with prior quarters, registering 350 transactions in 4Q 2016.

Strategic acquirers continue to be active, while also integrating the historically high volume of M&A transactions from 2015. Disruptive technologies continue to feed much of the strategic M&A activity. 352 352 333 327 324

371340

309

402454 437 434

406

341 359 350

1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16

712

510 8 7

3 25 5

5

9

5

89

59 9

7 9

286

10

94

14 8 5 3

12

13

18 310

63

33 1

14

14

9

9 7

8 6 22 4

2016

2015

2014

2013

2012

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

PAGE | 5



SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME

The 10 most active software investors completed 46 platform investments in 2016, with Vista Equity and Thoma Bravo continuing to be among the most active investors with 13 and 7 new software platform investments, respectively.

Among the top 10 software investors, the most popular investment areas included niche vertical SaaS applications, business productivity software, IT security, and big data /analytics software.

Globally, private equity software M&A registered 81 new platform acquisitions in 4Q 2016, representing a 72% increase over 4Q 2015 results.

Software continues to account for a significant portion of overall private equity activity and key industry players continue to raise significant capital to devote to both M&A and growth investing in the sector. Included among private equity groups closing new funds in 2016 are Vista Equity, Thoma Bravo, Francisco Partners, Accel Partners, KKR, and Technology Crossover Ventures.

96

3 2 3 1 2 4 3 2

7

34

23 5 2

1 3 3

9

5

36 3 4

4 4 3 3

6

5

7 5 7 3 7 4 32

13

7

45 3

5 12 2 4

2016

2015

2014

2013

2012

41 3847 45 43

32

48 47 4454 56

47 50

61

7481

1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control new platform investments only. Excludes add-on acquisitions.

PAGE | 6



Application Software

Pending Silver Lake Partners Cegid Group ERP and business management software for midsized companies. $719 2.3x

Pending NICE Systems Ltd. inContact, Inc. Contact and data center software solutions for security-sensitive organizations. $864 3.7x

Pending H.I.G. Capital Lionbridge Technologies, Inc. Localization, translation, and global marketing software solutions for brands. $430 0.8x

Pending TPG Capital Mediware Information Systems, Inc. Enterprise software solutions for healthcare and human serv ices providers and payers. NA NA

Pending Siemens AG Mentor Graphics Corp. Electronic design software for the semiconductor, automotive, and transportation industries. $4,097 3.6x

Pending Permira Advisers LLP P&I Personal & Informatik AG Human resource management, payroll accounting, and time management software. $852 6.3x

Pending Vista Equity Partners SunGard Data Systems Enterprise software solutions for the public sector and K-12 education sector. $850 NA

12/28/16 Roper Technologies, Inc. Deltek, Inc. Enterprise application software for project-based organizations. $2,800 5.2x

12/07/16 The Hearst Corp. CAMP Systems International, Inc. Maintenance tracking and serv ice center management software for the aviation industry. NA NA

12/06/16 Sequential Technology Synchronoss (Activation Business) Device activation streamlining software and serv ices for mobile carriers. $209 NA

11/22/16 Kerridge Commercial Systems Ltd. Integrity Software ERP, payroll, and human resources software for retailers. NA NA

11/01/16 ION Investment Group Ltd. Reval Holdings, Inc. Treasury and risk management platform for enterprises. NA NA

10/21/16 EQT Partners AB Press Ganey Holdings, Inc. Patient experience and performance software analytics for healthcare organizations. $2,285 6.6x

10/18/16 Vista Equity Partners GovDelivery Holdings, Inc. Government-to-citizen communication software and serv ices. $153 NA

10/03/16 ONEX Corp. Science Info. Business / Thomson Reuters Intellectual property and scientific information software and serv ices. $3,550 3.6x

10/03/16 Dassault Systèmes SA CST Computer Simulation Technology AG High performance software for the simulation of electromagnetic fields. $242 NA

$851 3.6x

DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS

Application Software M&A remained robust, registering 307 transactions in 4Q 2016 and approaching 2015 highs.

4Q 2016 median reported Application Software M&A revenue multiples increased to 2.7x, slightly above historical averages.

MEDIAN M&A REVENUE MULTIPLES (REPORTED)

1.3x

1.4x 1.5x

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

2.7x

Notable up market Application Software deals include Siemens’ pending $4.1 billion acquisition of Mentor Graphics, Roper’s $2.8 billion acquisition of Deltek, EQT’s $2.3 billion acquisition of Press Ganey, and ONEX’s $3.6 billion acquisition of Thomson Reuters’ Intellectual Property & Science operations.

MEDIAN

298

244 246 252 251

227

282 271

289

272

319 320 316 314

281

298 307

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

PAGE | 7



SaaS

Pending Vista Equity Partners Cvent, Inc. SaaS-based event management and email marketing software. $1,342 6.7x

Pending Verizon Fleetmatics Group Plc SaaS-based fleet management software solutions. $2,183 7.0x

Pending Synchronoss Technologies, Inc. Intralinks Holdings, Inc. Web-based document exchange platform. $785 2.7x

Pending Guidewire Software, Inc. ISCS, Inc. SaaS-based software platform for insurance accounting and document management. $160 NA

Pending Oracle Corp. NetSuite, Inc. SaaS-based business management application solutions. $8,759 10.3x

Pending Model N, Inc. Revitas, Inc. SaaS-based contract, revenue, and compliance management software. $60 NA

Pending Thunder Software Technology Co., Ltd. Rightware Oy SaaS-based user interface technology platform for the automotive sector. $67 NA

Pending GE Digital Energy, Inc. Serv iceMax, Inc. Cloud-based field serv ice management platform. $915 NA

01/03/17 SCISYS Group ANNOVA Systems GmbH SaaS-based news management software tools for broadcasters. $29 4.0x

12/19/16 Adobe Systems TubeMogul, Inc. Web-based advertising optimization and brand measurement platform. $492 2.3x

12/15/16 Mercer LLC Thomsons Online Benefits Ltd. SaaS-based employee benefits and employee engagement software. NA NA

12/02/16 Insight Venture Partners Ministry Brands LLC SaaS-based technology platform for faith-based and educational organizations. $1,410 8.2x

11/09/16 Evolent Health, Inc. Aldera Holdings, Inc. Web-based administration and private portal software for healthcare payers. $34 NA

11/09/16 Criteo Corp. HookLogic, Inc. Web-based performance marketing platform. $250 2.2x

11/08/16 Francisco Partners Prometheus Group Enterprises LLC SaaS-based enterprise asset management and plant maintenance software. NA NA

11/01/16 salesforce.com, inc. Krux Digital, Inc. Cloud-based database management and monitoring platform. $768 NA

10/03/16 Evolent Health, Inc. Valence Health, Inc. Cloud-based clinical integration and health plan software and serv ices. $145 1.7x

09/22/16 GI Partners Daxko LLC SaaS-based provider of operational and financial management solutions. $240 5.3x

$371 4.6x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

55

38

49 47

45 46

60

54 53

65

68 70

55

52 51 52 54

NOTABLE SAAS M&A TRANSACTIONS

5.8x

4.6x

5.3x

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x4.9x

5.6x5.4x

4.8x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL)

SaaS M&A registered 54 acquisitions in 4Q 2016, in line with the volumes over the prior four quarters.

Median reported SaaS transaction revenue multiples decreased to 4.8x in 4Q 2016, but remain in line with historical averages.

Traditional on-premisesoftware providers continue to drive SaaS M&A spending as they seek to increase recurring subscription revenue and streamline operating efficiencies.

Category-leading public SaaS companies continue to be attractive M&A targets for both private equity and strategic acquirers, as evidenced by the recent Cvent, Fleetmatics, Intralinks, and NetSuite transactions.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

PAGE | 8



Data and Analytics

Pending Google, Inc. Apigee Corp. Digital business acceleration and data analytics platform for application management. $470 5.1x

Pending salesforce.com, inc. BeyondCore, Inc. One-click automated business analysis for healthcare and manufacturing companies. NA NA

Pending BC Partners Brainspace Corp. Information governance, compliance, and enterprise knowledge sharing for law firms. NA NA

Pending Golden Gate Capital NeuStar, Inc. Real-time information and analytics software and serv ices. $2,699 2.3x

Pending Guidewire Software, Inc. EagleEye Analytics, Inc. Predictive analytics software for the property and casualty insurance industry. $42 NA

Pending Intel Corp. Nervana Systems, Inc. Software solutions for data analysis, computation, and machine learning. $408 NA

Pending Informa Plc Penton Business Media, Inc. Information, data, and marketing software and serv ices. $1,557 NA

12/23/16 The Descartes Systems Group, Inc. Datamyne, Inc. Trade data intelligence software for analyzing import and export trade activ ity. $53 NA

12/16/16 ARM Holdings Allinea Software Ltd. Software development and performance analysis software for high-performance users $22 NA

12/01/16 Morningstar, Inc. PitchBook Data, Inc. Web-based platform for data, research, and analysis on private and public companies. $225 7.2x

11/30/16 Predictive Safety LLC Data Connect Corp. Trade show data management, imaging, and on-site registration platform. NA NA

11/28/16 Verisk Analytics, Inc. Intellistance LLC Market intelligence and analytics software solutions for the insurance industry. NA NA

11/16/16 Verint Systems, Inc. OpinionLab, Inc. Software solutions for collecting and analyzing customer feedback. $84 4.2x

11/15/16 General Electric Co. Bit Stew Systems, Inc. Industrial data and operations management platform. $153 NA

10/04/16 BSM Technologies Mobi Corp. Appointment scheduling, routing, and analytics software for fleet optimization. $25 NA

10/03/16 Quintiles Transnational Holdings, Inc. IMS Health Holdings, Inc. Data analytics software and serv ices for the healthcare industry. $12,895 4.2x

10/01/16 Inovalon Holdings, Inc. Creehan & Co. Corp. Data and analytics software for pharmacy customer and operations management. $130 4.8x

$153 4.5x

NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS

74

64

71 74

64 67

72 76

99

89

105

112

102

82

87

99 98

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL)

Data and Analytics M&A registered 98 transactions in 4Q 2016, representing a 20% increase over 1Q 2016.

4Q 2016 median reported sector transaction multiples remained in line with last quarter and consistent with historical averages from the past two years.

As the volume of complex data available to enterprises increases, strategic buyers are actively pursuing real-time information and business intelligence solutions to enhance their software solutions.

Notable Data and Analytics transactions include salesforce.com’s pending acquisition of BeyondCareand Google’s pending $470 million acquisition of Apigee.


1.8x

1.1x

0.9x

1.4x

1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x2.5x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

PAGE | 9



Infrastructure Software

Pending CA Technologies Automic Software GmbH Information technology and business systems automation software. $635 NA

Pending Broadcom Ltd. Brocade Communications Systems, Inc. Data storage and networking software and solutions. $5,501 2.3x

Pending Investcorp Calligo Ltd. Data protection, network security, and privacy software for enterprises. $20 NA

Pending Cisco Systems, Inc. CloudLock, Inc. Cloud data security software for protection against malware and data security breaches. $293 22.2x

Pending Francisco Partners & Elliott Capital Dell Software, Inc. Security, systems, information management, and data analytics software. $2,000 NA

Pending Oracle Corp. Dynamic Network Serv ices, Inc. Internet performance management and optimization software. $700 9.0x

Pending Open Text Corp. EMC (Enterprise Content Div ision) Enterprise information management software and serv ices. $1,620 NA

Pending Proofpoint, Inc. FireLayers, Inc. Enterprise-level security, compliance, and IT governance software for applications. $55 NA

Pending Micro Focus International Plc HPE (Software Div ision) Diversified enterprise software, including application lifecycle management and analytics. $6,268 NA

Pending Vista Equity Partners Infoblox, Inc. Network infrastructure automation software and security solutions. $1,233 3.4x

Pending Symantec Corp. LifeLock, Inc. Threat detection, identify alerts, and remediation software for consumers and enterprises. $2,096 3.2x

Pending TPG Capital McAfee, Inc. Anti-v irus, data protection and encryption, and database security software. $4,314 NA

Pending KKR & Co. LP Optiv Security, Inc. Information security and compliance management software for enterprise clients. NA NA

Pending Oracle Corp. Palerra, Inc. Cloud security automation platform. NA NA

12/19/16 Akamai Technologies, Inc. Cyberfend, Inc. Cloud-based bot and automation detection software. NA NA

10/06/16 BCE, Inc. Q9 Networks, Inc. Outsourced data center infrastructure solutions. $793 NA

10/04/16 Akamai Technologies, Inc. Soha Systems, Inc. Cloud-based security software platform focused on application networking systems. $60 NA

09/30/16 AVAST Software AVG Technologies NV Anti-v irus and internet security software. $1,380 3.2x

$1,233 3.3x

67

38

61

56 55 53

48

56

47 45

50

36

52

44

57

60

75

2.3x

1.9x

1.7x

1.2x

2.4x2.5x

2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

3.1x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL)

Infrastructure Software M&A volumes registered a high point in 4Q 2016 with 75 transactions, representing a 25% increase over the prior quarter.

4Q 2016 median reported Infrastructure Software M&A revenue multiples increased to 3.1x, representing the highest median multiple over the last four quarters.

As data security breaches continue to make global headlines, strategic acquirers are actively pursuing IT and network security assets to capitalize on heightened enterprise focus.

Oracle continues to invest in its cloud platform, with the acquisitions of cloud security provider, Palerra, and internet performance management platform, Dyn, both complementary to the company’s cloud services and security strategy.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

PAGE | 10



6% 4% 6% 5% 6% 4% 2% 4% 2% 4% 4% 2% 4% 2% 2% 1% 2%

21% 28% 31%

19% 29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

17%

31% 31%

30%

22%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

15% 17% 13%

34% 15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

20%

27% 21% 21% 21%

31% 20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

29%

4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16

Seed Series A Series B Series C Series D / or later

PRIVATE PLACEMENT CAPITAL RAISED BY ROUND (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

Private placement activity in the software sector slowed in 4Q 2016, with 788 transactions. Total capital raised also declined, reaching $7.5 billion, down from $11.2 billion in 3Q 2016.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 4Q 2016, there was an even split on private placement capital invested across early stage (seed – B) and late stage (C – later) rounds.

Notable private placements across stages include Wavefront’s $52 million series B raise, Prevalent’s $60 million series C raise, and Stripe’s $150 million series D raise.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED

740

820 829

912

829

940 952

1013 997 1033

960

756869

896

826788

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16

$ i

n M

illio

ns

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

PAGE | 11



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

Pending InfrastructureLate

Stage$200 $366 General Atlantic; GIC; Temasek Holdings

Prov ider of an open architecure communication

platform for professionals and businesses.

12/15/16Data &

AnalyticsC $60 $107 New Enterprise Associates; Andreessen Horowitz

Prov ider of an open source processing engine for

analyzing and managing big data.

12/15/16 SaaS B $20 $37 AXA Strategic Ventures; MassMutual Ventures; H&Q Asia PacificProv ider of SaaS-based policy-issuance and

management software for insurance agencies.

12/14/16 Application B $34 $56 Prov idence Strategic Growth; Wellington Financial; Toba

Capital; Recruit Holdings; Kennet Partners

Prov ider of AI-driv en lead engagement software for

marketing and sales organizations.

12/13/16 InfrastructureLate

Stage$18 $71

North Bridge Venture Partners; Exeter Venture Management

Company LLC; Sigma Partners; Sigma Prime Ventures LLC

Prov ider of cloud-integrated storage solutions, including

backup, disaster recov ery, and data archiv ing.

12/12/16Data &

Analytics B $20 $34

Spark Capital; Battery Ventures; Contour Venture Partners; Core

Capital Partners; IDEA Fund Partners; Salesforce Ventures

Prov ider of a SaaS-based data analytics platform for

gathering in-application customer experience

feedback.

12/08/16 SaaSLate

Stage$50 $151 ICONIQ Capital

Prov ider of web-based project management software

for the construction industry.

11/30/16 SaaS C $52 $77 Goldman Sachs Growth Equity; FirstMark Capital; Volition

Capital; F-Prime Capital

Prov ider of supply chain management software for the

life sciences industry.

11/16/16 SaaSLate

Stage$44 NA Susquehanna Growth Equity

Prov ider of programmatic tracking and reporting

software for shippers and logistics prov iders.

11/16/16Data &

Analytics B $30 $50 Sagev iew Capital LP

Prov ider of front-office software for SMBs, including

customer data and analytics solutions.

11/15/16 SaaS D $27 $58 LLR Partners, Inc.Prov ider of v aulted repository and electronic

transaction management serv ices.

11/15/16 SaaS D $39 $67 Goldman Sachs Capital PartnersProv ider of online project management and resource

planning software.

Note: Financial information presented above represents reported capital raised only.

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

EBITDA MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2016

9.2x

7.4x

6.0x 6.1x

4.9x4.5x

4.9x4.7x 4.4x

5.3x

3.7x

5.5x

3.8x3.2x

4.8x

2.6x

1.1x

7.1x

6.0x5.8x

5.5x 5.3x

4.6x 4.6x 4.6x 4.5x

4.0x 4.0x 3.9x3.3x 3.2x 3.2x

2.9x

1.1x

4Q 2015 4Q 2016

53.2x

27.1x

32.7x

17.0x 16.2x 15.5x

19.8x

27.7x

12.8x

39.5x

15.7x

22.6x

14.2x

17.4x 16.4x

10.0x

15.0x

44.5x

23.9x

32.8x

15.4x

18.1x

14.8x

18.8x

31.8x

15.8x

26.9x

15.3x

18.9x

14.2x15.6x 14.5x

25.6x

17.0x

4Q 2015 4Q 2016

REVENUE MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2016STOCK PERFORMANCE (1- & 3-YEAR)

0.8%

6.6%

17.6%

11.6%

18.9%

9.6%

7.8%

(0.6%)

9.6%

3.6%

14.5%

(3.4%)

(6.6%)

7.7%

(19.6%)

17.5%

(5.1%)

24.0%

16.0%

(20.5%)

39.6%

30.8%

27.7%

39.8%

7.0%

24.0%

21.2%

23.6%

30.9%

(21.7%)

23.3%

(20.9%)

(22.8%)

(35.9%)

1 Yr Stock 3 Yr Stock

Large-Cap SaaS

SCM & Logistics

HCM

Financial

PLM & Engineering

Enterprise

Public Sector / Non-Profit

Small-Cap SaaS

Bellwethers

Marketing

IT Operations Mgmt.

IT Security

Data & Analytics

Communication

HCIT

Data Storage

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES

7.1x

6.0x

5.8x

5.5x

5.3x

4.6x

4.6x

4.6x

4.5x

4.0x

4.0x

3.9x

3.3x

3.2x

3.2x

2.9x

1.1x

Large-Cap SaaS

SCM & Logistics

HCM

Financial

PLM & Engineering

Enterprise

Public Sector / Non-Profit

Small-Cap SaaS

Bellwethers

Marketing

IT Operat ions Mgmt.

IT Security

Data & Analytics

Communication

HCIT

Data Storage

Energy

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

26% 99% 15% 32% - 28%

17% 29% 16% - 25% -

23% 100% 15% 63% 13% 38%

13% 19% 35% 61% - 86%

7% 18% 27% - - 79%

10% 18% 30% 78% 82% 31%

16% 35% 23% 44% 28% 76%

29% 76% 10% 58% - 27%

3% 22% 31% 79% 72% 39%

21% 87% 12% 68% - 88%

8% 40% 25% 75% - 43%

21% 38% 23% 39% - 68%

3% 9% 22% 54% - 83%

20% 85% 21% 98% - -

14% 29% 19% 17% 66% -

15% 236% 7% 19% - -

- 1% 16% 28% - 92%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

Technology IPO activity slowed in 4Q 2016, with only three companies going public, as market volatility ahead of the U.S. presidential election prompted some startups to delay going public.

Notable technology IPOs included Trivago, which raised $287 million and priced at $11 in December, BlackLine Systems, which raised $146 million with a market cap of $839 and priced at $17 in October, and Coupa Software, which raised $133 million with a market cap of $866 million and priced at $18 in October.

MARKET CAP AT IPO (LTM) REVENUE GROWTH (1YR PRIOR TO IPO)OFFERING SIZE AT IPO (LTM)

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE)

23%

46%

31%

< 25% 25 - 75% > 75%

36%

36%

29%

$0-50M $50-500M $500M-$1B $1B+

7%

43%

36%

14%

$0 - 50M $50 - 100M $100 - 250M $250M +

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

6

16

13 13

11

18

7

11

5

15

3

8

0

2

9

3

1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16

$0 - 50M $50 - 100M $100 - 250M $250M +

2013 Total: 48 2014 Total: 47 2016 Total: 142015 Total: 31

PAGE | 15



(150.0%)

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

thSto

ck

Pe

rfo

rma

nc

e

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

(23.9%)(33.5%)

22.2%

51.4%

79.0%

14.7%

(24.4%)

92.3%

23.3%

53.8%

15.8%

66.0%

38.9%

62.5%

6.8%

28.1%

308.2%

70.2%

107.0%

24.3%

48.5% 29.5%

117.1%

22.6% 33.4% 20.5%

84.3%

64.6% 49.3% 33.1%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

350.0%

450.0%

7/16/15 10/6/15 11/12/15 11/18/15 11/18/15 12/9/15 4/21/16 6/22/16 7/28/16 9/15/16 9/22/16 9/29/16 10/5/16 10/27/16 12/15/16

$16.0 $17.0 $16.0 $9.0 $10.0 $21.0 $14.0 $15.0 $18.0 $12.0 $16.0 $16.0 $18.0 $17.0 $11.0

$620.0 $3,146.0 $422.2 $2,708.5 $540.1 $4,382.2 $1,129.4 $1,233.0 $503.5 $323.1 $596.6 $1,958.5 $866.0 $838.6 $287.2

$103.2 $425.0 $70.4 $243.0 $77.5 $462.0 $112.0 $150.0 $94.5 $90.0 $96.0 $237.9 $133.2 $146.2 $287.2

(23.9%) (33.5%) 22.2% 51.4% 79.0% 14.7% (24.4%) 92.3% 23.3% 53.8% 15.8% 66.0% 38.9% 62.5% 6.8%

MARKET CAP AT OFFER ($M)

PAGE | 16



26.4%

5.4%

9.3%

9.7%

11.7%

13.1%

24.4%

Other

Food & Beverage

Services & Leasing

Automotive

Insurance

Healthcare

Computers & Electronics

63% 60%

50%

57%

55%

60%

66%

60% 58%

51%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4.1x 4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x 5.3x

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER

2016 New-Issue LBO Loan Volume: $3.7 billion Percentage of Total Purchase Price

Median middle market LBO loan multiples in 2016 remained in line with the prior two years at 5.3x leverage.

Middle market LBO loan volume increased slightly to $0.9 billion in 4Q 2016.

Technology companies were the largest recipients of LBO loans in 2016, representing 24.4% of new issuance.

As lenders remain selective about which assets they pursue, the median LBO debt percentage declined for the third straight year, reaching 51% in 2016.

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

$1.0B

$2.0B

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B

3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

Advertising & Marketing Technology Education TechnologyeCommerce Energy, Power & Infrastructure Technology

FinTechERP and Business Management Software Healthcare IT Human Capital Management

Infrastructure Software Internet and Digital Media Legal TechnologyIT Services

Non-Profit Software Supply Chain, Transportation & LogisticsSecurity Software

Please click here if you would like to contact HW&Co. in order to discuss any particular sector.

mailto:*[email protected]?subject=TMT Reader Follow Up

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

acquired by acquired acquired by acquired by acquired by recapitalized by acquired by

acquired byacquired by acquired by

acquired byacquired by acquired by

minority investment

fromacquired by acquired by

acquired by

majority investment

fromacquired by

acquired bymerged with merged with acquired by acquired by

acquired by

significant equity

investment from

acquired a majority

stake inacquired by

acquired by

acquired by acquired by acquired byacquired by acquired by

acquired by

recapitalized byacquired by acquired by

acquired by acquired byacquired by

acquired by

acquired by majority

recapitalization by

acquired by

acquired by acquired by

recapitalized byacquired by

acquired byacquired by

acquired

acquired bysignificant equity

investment fromacquired by acquired

acquired by

significant equity

investment from



acquired by acquired byacquired byacquired byminority investment

from

acquired byacquired by

strategic investment

fromacquired byacquired by acquired byacquired by

acquired by acquired byacquired by acquired by

acquired by

and

acquired by acquired by acquired byacquired by

investment from recapitalized by

acquired by

acquired by

strategic investment

from


growth equity

investment from

sold its Kline Towers

Division to

acquired by

acquired by

acquired by

GFI Energy Group

a division of

acquired by

B2C

recapitalized by

acquired byminority investment

from

acquired by

and

majority investment

from

acquired by

acquired by

and

majority investment

fromacquired by

http://epiqsystems.com/

http://epiqsystems.com/

http://www.meddatahealth.com/our_business/index.html

http://www.meddatahealth.com/our_business/index.html

http://www.aderant.com/

http://www.aderant.com/

http://www.cltsloyalty.com/

http://www.cltsloyalty.com/

http://www.stream.com/

http://www.stream.com/

http://www.rewardsnetwork.com/

http://www.rewardsnetwork.com/

http://www.knuerr.com/web/de/index_d.html

http://www.knuerr.com/web/de/index_d.html

http://www.bdcast.com/

http://www.bdcast.com/

http://www.oaktreecapital.com/default.aspx

http://www.oaktreecapital.com/default.aspx



PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

AP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle IBM Cisco SAP Adobe Salesforce HP

Communication Software Nuance NICE Synchronoss BroadSoft Twilio Jiv e MobileIron

Enterprise Software Oracle IBM SAP Adobe ADP Intuit Amadeus Constellation Sage Open Text

Human Capital Management (HCM) ADP Paychex Workday Ultimate Paycom Cornerstone Paylocity Benefitfocus Xactly Halogen

Marketing Software Adobe Salesforce Criteo HubSpot Callidus Bazaarv oice ChannelAdv isor

PLM & Engineering Software Dassault Autodesk Hexagon AB Synopsys Ansys Cadence PTC AspenTech Nemetschek AVEVA

Supply Chain & Logistics Software Trimble Manhattan Descartes Coupa SPS Kinaxis CommerceHub American Park City Amber Road

Energy Software AVEVA Silv er Spring PSI EnerNOC

Financial Software Fiserv MSCI Jack Henry SS&C Oracle FSS Black Knight Env estnet Blackline Q2 Holdings

Healthcare IT (HCIT) Cerner athenahealth Veev a Medidata Allscripts HMS Quality Systems Ev olent Health Inov alon Model N

Public Sector / Non-Profit Software Constellation Tyler Tech Blackbaud NIC 2U K12 Instructure

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Check Point Serv iceNow Workday Ultimate athenahealth Veev a Guidewire Proofpoint Medidata

Large-Cap SaaS (cont'd) Paycom LogMeIn RealPage Cornerstone ZenDesk

Small-Cap SaaS (≤ $2Bn Mkt Cap) Atlassian Ebix Xero Limited HubSpot CyberArk Alarm.Com RingCentral SPS Q2 Holdings Qualys

Small-Cap SaaS (cont'd) Callidus Mimecast Benefitfocus Box Fiv e9 MINDBODY Instructure Rapid7 Hortonworks Workiv a

Small-Cap SaaS (cont'd) Bazaarv oice Xactly AppFolio Model N Castlight Health Amber Road Apptio

Data & Analytics Verisk Splunk Tableau Teradata Pegasystems Verint MicroStrategy PROS Holdings Inov alon

IT Operations Management Citrix CA Red Hat Serv iceNow F5 Networks VMware Arista Micro Focus NetScout Software AG

IT Operations Management (cont'd) Progress New Relic Radware Apptio

Data Storage NetApp Iron Mountain CommVault Barracuda Pure Storage Box Nimble Storage Nutanix Carbonite

IT Security Cisco Symantec Check Point Palo Alto VeriSign Fortinet Gemalto Trend Micro Proofpoint FireEye

IT Security (cont'd) CyberArk Qualys Mimecast Varonis Rapid7 Cheetah Mobile SecureWorks

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. 2017E Rev. 2018E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS

Alphabet Inc. GOOGL $474,361 $499,762 94.5% 1.9% 41.3% 20.3% 0.5% 32.6% 5.6x 5.6x 4.8x 17.2x 26.2x

Microsoft Corporation MSFT 428,205 483,160 96.9% 12.0% 66.1% (5.8%) 14.2% 32.0% 5.0x 4.4x 4.1x 15.8x 28.6x

Oracle Corporation ORCL 157,419 157,859 91.5% 5.3% 0.5% (0.6%) 2.8% 41.6% 4.2x 4.1x 4.0x 10.2x 17.9x

IBM Corporation IBM 191,566 157,832 97.7% 20.6% (11.5%) (4.3%) (1.0%) 21.1% 2.4x 2.4x 2.4x 11.3x 13.3x

Cisco Systems, Inc. CSCO 116,923 151,697 94.6% 11.3% 34.7% (1.4%) (0.3%) 31.2% 2.4x 2.4x 2.3x 7.7x 14.3x

SAP SE SAP 109,137 107,302 93.2% 9.3% (0.8%) 4.7% 5.8% 28.7% 4.5x 4.3x 4.0x 15.8x 28.5x

Adobe Systems Incorporated ADBE 49,058 51,190 92.7% 9.6% 71.9% 23.5% 21.3% 31.1% 8.4x 6.9x 5.8x 26.9x 43.8x

salesforce.com, inc. CRM 48,584 46,491 81.0% (12.7%) 24.0% 25.5% 26.5% 13.4% 6.1x 4.9x 4.1x 45.8x NM

HP Inc. HPQ 26,414 25,309 91.3% 25.3% 16.8% (52.8%) (2.9%) 7.8% 0.5x 0.6x 0.6x 7.0x 9.5x

Median $116,923 $151,697 93.2% 9.6% 24.0% (0.6%) 2.8% 31.1% 4.5x 4.3x 4.0x 15.8x 22.1x

COMMUNICATION SOFTWARE

Nuance Communications, Inc. NUAN $6,205 $4,340 72.5% (25.1%) (2.0%) 0.9% 5.5% 21.2% 3.2x 3.0x 2.9x 15.0x NM

NICE Systems Ltd. NICE 3,482 4,090 98.5% 20.0% 67.9% 5.9% 31.1% 22.7% 3.6x 2.7x 2.4x 15.8x 27.1x

Synchronoss Technologies, Inc. SNCR 2,050 1,736 76.7% 8.7% 23.3% 14.9% 28.5% 21.0% 3.2x 2.5x 2.1x 15.4x NM

BroadSoft, Inc. BSFT 1,181 1,243 85.2% 16.7% 51.0% 28.8% 19.7% 14.5% 3.6x 3.0x 2.6x 24.8x 123.7x

Twilio, Inc. TWLO 2,168 993 40.7% NA NA 87.9% 109.6% NM 13.0x 6.2x 4.7x NM NM

Jiv e Software, Inc. JIVE 239 340 94.8% 6.6% (61.3%) 4.8% 0.6% NM 1.2x 1.2x 1.2x NM NM

MobileIron, Inc. MOBL 245 330 78.5% 3.9% NA 12.2% 12.5% NM 1.5x 1.4x 1.2x NM NM

Median $2,050 $1,243 78.5% 7.7% 23.3% 12.2% 19.7% 21.1% 3.2x 2.7x 2.4x 15.6x 75.4x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $157,419 $157,859 91.5% 5.3% 0.5% (0.6%) 2.8% 41.6% 4.2x 4.1x 4.0x 10.2x 17.9x

IBM Corporation IBM 191,566 157,832 97.7% 20.6% (11.5%) (4.3%) (1.0%) 21.1% 2.4x 2.4x 2.4x 11.3x 13.3x

SAP SE SAP 109,137 107,302 93.2% 9.3% (0.8%) 4.7% 5.8% 28.7% 4.5x 4.3x 4.0x 15.8x 28.5x

Adobe Systems Incorporated ADBE 49,058 51,190 92.7% 9.6% 71.9% 23.5% 21.3% 31.1% 8.4x 6.9x 5.8x 26.9x 43.8x

Automatic Data Processing, Inc. ADP 45,986 46,372 98.9% 21.3% 45.0% 7.1% 9.4% 22.3% 3.9x 3.5x 3.3x 17.4x 30.4x

Intuit Inc. INTU 30,064 29,417 96.6% 18.8% 50.2% 12.4% 10.1% 30.4% 6.3x 5.7x 5.3x 20.8x 36.5x

Amadeus IT Group AMS-ES 22,264 19,981 89.6% 3.0% 6.2% 0.1% 12.4% 37.8% 5.0x 4.4x 4.2x 13.2x 25.9x

Constellation Software Inc. CSU-CA 9,683 9,641 93.8% 9.6% 114.9% 17.3% 16.2% 24.8% 4.7x 4.0x 3.5x 18.8x 46.6x

Sage Group plc SGE-GB 9,175 8,742 81.5% (9.0%) 21.0% 0.4% 0.8% 29.8% 4.1x 4.1x 3.8x 13.8x 29.7x

Open Text Corporation OTEX 8,875 8,090 92.5% 29.0% 34.4% 2.7% 13.4% 34.7% 4.7x 4.2x 4.1x 13.6x 7.0x

Median $38,025 $37,894 92.9% 9.6% 27.7% 3.7% 9.8% 30.1% 4.6x 4.1x 4.0x 14.8x 29.1x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

Public Sector /

Non-Profit

PAGE | 21



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

HUMAN CAPITAL MANAGEMENT SOFTWARE

Automatic Data Processing, Inc. ADP $45,986 $46,372 98.9% 21.3% 45.0% 7.1% 9.4% 22.3% 3.9x 3.5x 3.3x 17.4x 30.4x

Paychex, Inc. PAYX 21,885 21,846 97.9% 15.1% 33.7% 7.8% 7.6% 42.8% 7.1x 6.6x 6.2x 16.7x 28.1x

Workday, Inc. WDAY 11,797 8,261 70.8% (17.1%) (20.5%) 36.7% 34.3% NM 8.1x 6.0x 4.8x NM NM

Ultimate Software Group, Inc. ULTI 5,457 5,288 81.4% (6.7%) 19.0% 27.2% 30.6% 8.9% 7.4x 5.6x 4.6x 83.1x 199.5x

Paycom Software, Inc. PAYC 2,635 2,734 85.9% 20.9% NA 50.5% 37.6% 20.8% 8.6x 6.2x 5.0x 41.3x 68.3x

Cornerstone Ondemand, Inc. CSOD 2,367 2,377 88.6% 22.5% (20.6%) 28.0% 19.0% NM 5.8x 4.9x 4.1x NM NM

Paylocity Holding Corp. PCTY 1,459 1,541 60.4% (26.0%) NA 50.3% 33.1% 5.1% 5.8x 4.4x 3.6x 114.2x NM

Benefitfocus, Inc. BNFT 896 881 66.0% (18.4%) (48.6%) 31.6% 24.2% NM 4.0x 3.2x 2.7x NM NM

Xactly Corp XTLY 313 345 68.3% 29.0% NA 29.1% 22.2% NM 3.4x 2.8x 2.3x NM NM

Halogen Software, Inc. HGN-CA 99 133 77.4% 20.1% (50.1%) 11.2% 7.6% 5.8% 1.4x 1.3x 1.2x 24.2x NM

Median $2,501 $2,556 79.4% 17.6% (20.5%) 28.6% 23.2% 14.8% 5.8x 4.6x 3.9x 32.8x 49.4x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $49,058 $51,190 92.7% 9.6% 71.9% 23.5% 21.3% 31.1% 8.4x 6.9x 5.8x 26.9x 43.8x

salesforce.com, inc. CRM 48,584 46,491 81.0% (12.7%) 24.0% 25.5% 26.5% 13.4% 6.1x 4.9x 4.1x 45.8x NM

Criteo SA CRTO 2,315 2,502 85.9% 3.7% 20.1% 34.4% (44.6%) 9.7% 1.4x 2.6x 2.1x 14.6x 31.0x

HubSpot, Inc. HUBS 1,550 1,674 78.4% (16.5%) NA 52.0% 41.4% NM 6.3x 4.4x 3.6x NM NM

Callidus Software Inc. CALD 788 1,066 78.4% (9.5%) 22.4% 20.1% 23.1% NM 4.0x 3.2x 2.7x NM NM

Bazaarv oice, Inc. BV 353 405 79.1% 10.7% (38.8%) 2.4% 4.7% 0.4% 1.8x 1.7x 1.6x NM NM

Channeladv isor Corporation ECOM 306 370 90.2% 3.6% (65.6%) 16.7% 16.8% NM 2.8x 2.4x 2.0x NM NM

Median $1,550 $1,674 81.0% 3.6% 21.2% 23.5% 21.3% 11.6% 4.0x 3.2x 2.7x 26.9x 37.4x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $17,848 $19,641 85.4% (4.7%) 22.8% 3.9% 7.6% 30.2% 5.5x 5.1x 4.7x 18.3x 41.8x

Autodesk, Inc. ADSK 15,973 16,471 89.1% 21.5% 47.1% (12.0%) (0.4%) NM 7.3x 7.3x 5.9x NM NM

Hexagon AB Class B HEXA.B-SE 14,794 12,350 81.0% (4.0%) 13.2% 1.6% 2.5% 29.8% 4.3x 4.2x 3.9x 14.4x 19.7x

Synopsys, Inc. SNPS 8,195 8,835 94.9% 29.1% 45.1% 8.9% 7.3% 23.0% 3.4x 3.1x NM 14.7x 33.1x

ANSYS, Inc. ANSS 7,363 8,003 93.4% (0.0%) 6.1% 2.5% 7.8% 46.2% 7.6x 7.0x 6.7x 16.5x 30.4x

Cadence Design Systems, Inc. CDNS 7,411 7,231 90.1% 21.2% 79.9% 6.2% 7.2% 22.9% 4.1x 3.9x 3.7x 18.1x 29.5x

PTC Inc. PTC 5,765 5,349 92.7% 33.6% 30.7% (8.9%) 5.9% 11.5% 5.0x 4.8x 4.5x 43.8x NM

Aspen Technology, Inc. AZPN 4,289 4,223 98.7% 44.8% 30.8% 4.1% 3.3% 47.1% 9.1x 8.8x NM 19.3x 30.6x

Nemetschek SE NEM-DE 2,246 2,244 87.8% 16.6% 236.2% 14.2% 16.4% 27.3% 6.3x 5.4x 4.7x 23.0x 42.4x

AVEVA Group plc AVV-GB 1,327 1,485 84.7% (2.6%) (35.2%) (8.1%) (4.1%) 26.7% 4.5x 4.7x 4.5x 17.0x 36.7x

Median $7,387 $7,617 89.6% 18.9% 30.8% 3.2% 6.5% 27.3% 5.3x 4.9x 4.6x 18.1x 31.8x



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SUPPLY CHAIN AND LOGISTICS SOFTWARE

Trimble Inc. TRMB $8,028 $7,555 97.7% 40.6% (13.1%) 1.8% 6.4% 15.9% 3.4x 3.2x 3.0x 21.6x 63.6x

Manhattan Associates, Inc. MANH 3,694 3,775 77.3% (19.9%) 80.6% 9.7% 10.7% 33.0% 6.2x 5.6x 5.0x 18.7x 31.3x

Descartes Systems Group Inc. DSG-CA 1,560 1,619 93.7% 6.5% 59.6% 9.8% 13.2% 32.9% 7.8x 6.9x 6.2x 23.9x 70.0x

Coupa Software, Inc. COUP 240 1,250 60.1% NA NA 64.6% 93.2% NM 2.9x 1.5x 1.2x NM NM

SPS Commerce, Inc. SPSC 1,087 1,191 93.4% (0.5%) 7.0% 21.8% 23.1% 10.1% 5.9x 4.8x 4.0x 58.3x 197.3x

Kinaxis, Inc. KXS-CA 1,105 1,157 88.0% 38.0% NA 18.0% 35.5% 18.1% 10.5x 7.7x 6.4x 58.1x 120.2x

CommerceHub, Inc. Class A CHUBA-US 677 642 89.9% NA NA 33.2% 32.4% 1.2% 7.7x 5.8x 5.1x NM NM

American Software, Inc. AMSWA 237 277 86.6% 1.5% 4.7% (1.6%) 6.2% 13.3% 2.2x 2.0x 1.9x 16.2x 36.4x

Park City Group, Inc. PCYG 247 246 82.7% 6.6% 25.0% 12.8% NA 15.1% 16.3x NM NM 108.0x 145.5x

Amber Road, Inc. AMBR 250 243 73.8% 78.4% NA 5.4% 17.0% NM 3.5x 3.0x 2.7x NM NM

Median $882 $1,174 87.3% 6.6% 16.0% 11.3% 17.0% 15.5% 6.0x 4.8x 4.0x 23.9x 70.0x

ENERGY SOFTWARE

AVEVA Group plc AVV-GB $1,327 $1,485 84.7% (2.6%) (35.2%) (8.1%) (4.1%) 26.7% 4.5x 4.7x 4.5x 17.0x 36.7x

Silv er Spring Networks, Inc. SSNI 575 691 86.4% (7.6%) (36.6%) 20.7% (25.6%) 15.7% 1.3x 1.7x 1.5x 8.2x 12.7x

PSI Aktiengesellschaft PSAN-DE 162 202 79.6% (8.2%) (31.1%) (10.0%) 5.0% 4.9% 0.8x 0.8x 0.8x 17.3x 24.2x

EnerNOC, Inc. ENOC 237 185 76.1% 55.8% (65.1%) 6.9% (19.9%) NM 0.6x 0.7x 0.6x NM NM

Median $406 $446 82.1% (5.1%) (35.9%) (0.6%) (12.0%) 15.7% 1.1x 1.3x 1.2x 17.0x 24.2x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $27,996 $23,069 95.3% 16.2% 80.0% 4.6% 8.0% 33.4% 5.1x 4.8x 4.5x 15.4x 25.5x

MSCI Inc. MSCI 8,622 7,415 86.8% 9.2% 80.2% 7.4% 8.9% 48.6% 7.6x 7.0x 6.5x 15.7x 29.4x

Jack Henry & Associates, Inc. JKHY 6,915 6,934 97.5% 13.7% 49.9% 8.0% 6.2% 35.2% 5.0x 4.7x NM 14.2x 26.7x

SS&C Technologies Holdings, Inc. SSNC 8,296 5,801 82.7% (16.2%) 29.2% 53.5% 20.4% 34.8% 6.0x 5.0x 4.7x 17.2x 67.4x

Oracle Financial Serv ices Software Ltd. 532466-IN 3,542 3,908 77.0% (18.6%) (13.5%) 2.4% 11.4% 38.0% 5.5x 5.0x 4.6x 14.6x 22.7x

Black Knight Financial Serv ices, Inc. BKFS 5,138 2,612 89.6% 14.3% NA 9.8% 12.7% 43.5% 5.1x 4.5x 4.2x 11.8x 59.6x

Env estnet, Inc. ENV 1,751 1,518 85.0% 18.1% (12.5%) 35.5% 23.9% 9.1% 3.2x 2.6x 2.2x 35.4x NM

BlackLine, Inc. BL 1,174 1,417 96.0% NA NA 49.3% 43.1% NM 10.5x 7.3x 5.6x NM NM

Q2 Holdings, Inc. QTWO 1,056 1,158 87.8% 9.4% NA 37.6% 39.0% NM 7.6x 5.5x 4.3x NM NM

Median $5,138 $3,908 87.8% 11.6% 39.6% 9.8% 12.7% 35.2% 5.5x 5.0x 4.6x 15.4x 28.0x



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HEALTHCARE IT

Cerner Corporation CERN $16,214 $16,082 70.2% (21.3%) (15.0%) 12.9% 11.2% 30.7% 3.4x 3.1x 2.9x 11.2x 24.6x

athenahealth, Inc. ATHN 4,368 4,150 62.8% (34.7%) (21.8%) 19.5% 23.7% 14.9% 4.2x 3.4x 2.9x 27.9x NM

Veev a Systems Inc VEEV 5,490 4,119 84.9% 41.1% 26.8% 33.0% 26.2% 21.1% 10.8x 8.6x 7.2x 51.2x 63.7x

Medidata Solutions, Inc. MDSO 2,798 2,863 85.9% 0.8% (17.9%) 14.3% 26.2% 12.7% 6.4x 5.1x 4.3x 50.3x 114.7x

Allscripts Healthcare Solutions, Inc. MDRX 3,475 1,890 65.6% (33.6%) (34.0%) 6.4% 16.2% 16.5% 2.4x 2.0x 1.9x 14.3x NM

HMS Holdings Corp. HMSY 1,567 1,537 75.7% 47.2% (20.0%) 8.4% 7.4% 21.6% 3.2x 2.9x 2.7x 14.6x 43.5x

Quality Systems, Inc. QSII 833 817 75.1% (18.4%) (37.6%) (1.0%) 4.5% 15.7% 1.7x 1.6x 1.6x 10.8x NM

Ev olent Health Inc Class A EVH 671 778 55.1% 22.2% NA 317.6% 97.1% NM 3.2x 1.6x 1.3x NM NM

Inov alon Holdings, Inc. Class A INOV 1,118 649 51.4% (39.4%) NA 11.2% 0.6% 22.3% 2.5x 2.5x 2.3x 11.1x 15.3x

Model N, Inc. MODN 176 249 63.3% (20.7%) (24.9%) 14.1% 2.5% NM 1.6x 1.6x NM NM NM

Median $2,182 $1,714 67.9% (19.6%) (20.9%) 13.5% 13.7% 18.8% 3.2x 2.7x 2.7x 14.5x 43.5x

PUBLIC SECTOR / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $9,683 $9,641 93.8% 9.6% 114.9% 17.3% 16.2% 24.8% 4.7x 4.0x 3.5x 18.8x 46.6x

Tyler Technologies, Inc. TYL 5,484 5,229 79.9% (18.1%) 39.8% 29.0% 19.1% 23.2% 7.6x 6.4x 5.7x 32.8x 78.2x

Blackbaud, Inc. BLKB 3,254 3,045 89.2% (2.8%) 70.0% 15.2% 12.2% 16.9% 4.6x 4.1x 3.8x 27.2x 99.4x

NIC Inc. EGOV 1,426 1,577 92.3% 21.4% (3.9%) 8.2% 8.4% 26.4% 4.6x 4.2x 3.9x 17.4x 31.1x

2U, Inc. TWOU 1,257 1,419 77.5% 7.8% NA 39.3% 39.6% NM 6.6x 4.7x 3.6x NM NM

K12 Inc. LRN 544 698 96.2% 95.0% (21.1%) (5.6%) 5.2% 9.0% 0.6x 0.6x NM 6.9x 87.3x

Instructure, Inc. INST 466 552 72.6% (6.1%) NA 128.0% 47.6% NM 4.6x 3.1x 2.4x NM NM

Median $1,426 $1,577 89.2% 7.8% 39.8% 17.3% 16.2% 23.2% 4.6x 4.1x 3.7x 18.8x 78.2x

LARGE-CAP SAAS (Market Cap > $2Bn)

salesforce.com, inc. CRM $48,584 $46,491 81.0% (12.7%) 24.0% 25.5% 26.5% 13.4% 6.1x 4.9x 4.1x 45.8x NM

Check Point Software Technologies Ltd. CHKP 13,287 14,772 93.9% 3.8% 30.9% 7.6% 7.0% 50.5% 7.8x 7.2x 6.9x 15.4x 21.2x

Serv iceNow, Inc. NOW 11,987 12,341 82.8% (14.1%) 32.7% 40.6% 39.4% NM 9.3x 6.7x 5.2x NM NM

Workday, Inc. WDAY 11,797 8,261 70.8% (17.1%) (20.5%) 36.7% 34.3% NM 8.1x 6.0x 4.8x NM NM

Ultimate Software Group, Inc. ULTI 5,457 5,288 81.4% (6.7%) 19.0% 27.2% 30.6% 8.9% 7.4x 5.6x 4.6x 83.1x 199.5x

athenahealth, Inc. ATHN 4,368 4,150 62.8% (34.7%) (21.8%) 19.5% 23.7% 14.9% 4.2x 3.4x 2.9x 27.9x NM

Veev a Systems Inc VEEV 5,490 4,119 84.9% 41.1% 26.8% 33.0% 26.2% 21.1% 10.8x 8.6x 7.2x 51.2x 63.7x

Guidewire Software, Inc. GWRE 3,085 3,626 77.1% (18.0%) 0.5% 13.9% 18.1% 4.5% 7.1x 6.0x 5.1x 158.0x NM

Proofpoint, Inc. PFPT 2,924 3,002 80.3% 8.7% 113.0% 39.3% 40.9% NM 8.5x 6.0x 4.7x NM NM

Medidata Solutions, Inc. MDSO 2,798 2,863 85.9% 0.8% (17.9%) 14.3% 26.2% 12.7% 6.4x 5.1x 4.3x 50.3x 114.7x

Paycom Software, Inc. PAYC 2,635 2,734 85.9% 20.9% NA 50.5% 37.6% 20.8% 8.6x 6.2x 5.0x 41.3x 68.3x

LogMeIn, Inc. LOGM 2,273 2,461 87.7% 43.9% 187.8% 26.9% 19.0% 16.2% 7.0x 5.9x 5.2x 43.3x NM

RealPage, Inc. RP 2,305 2,414 97.2% 33.6% 28.3% 19.8% 20.2% 14.8% 4.3x 3.5x 3.2x 28.8x 183.0x

Cornerstone Ondemand, Inc. CSOD 2,367 2,377 88.6% 22.5% (20.6%) 28.0% 19.0% NM 5.8x 4.9x 4.1x NM NM

Zendesk, Inc. ZEN 1,783 2,021 66.5% (19.8%) NA 54.9% 43.6% NM 6.2x 4.3x 3.4x NM NM

Median $3,085 $3,626 82.8% 0.8% 24.0% 27.2% 26.2% 14.8% 7.1x 5.9x 4.7x 44.5x 91.5x



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SMALL-CAP SAAS (Market Cap < $2Bn)

Atlassian Corp. Plc TEAM $4,507 $1,979 68.5% (19.9%) NA 54.0% 39.7% 1.6% 9.2x 6.6x 5.1x NM NM

Ebix, Inc. EBIX 2,021 1,849 90.6% 74.0% 287.8% 12.7% 10.6% 37.8% 7.0x 6.3x NM 18.6x 20.3x

Xero Limited XRO-NZ 1,563 1,678 80.3% (10.0%) (54.1%) 47.2% 55.9% NM 9.0x 5.8x 4.4x NM NM

HubSpot, Inc. HUBS 1,550 1,674 78.4% (16.5%) NA 52.0% 41.4% NM 6.3x 4.4x 3.6x NM NM

CyberArk Software Ltd. CYBR 1,385 1,527 76.8% 0.8% NA 39.9% 29.3% 21.4% 6.8x 5.3x 4.4x 31.8x 54.9x

Alarm.com Holdings, Inc. ALRM 1,216 1,279 80.8% 66.8% NA 48.4% 21.0% 8.2% 4.9x 4.0x 3.6x 60.1x 43.9x

RingCentral, Inc. RNG 1,373 1,246 82.4% (12.6%) 12.1% 30.6% 30.6% NM 3.8x 2.9x 2.4x NM NM

SPS Commerce, Inc. SPSC 1,087 1,191 93.4% (0.5%) 7.0% 21.8% 23.1% 10.1% 5.9x 4.8x 4.0x 58.3x 197.3x

Q2 Holdings, Inc. QTWO 1,056 1,158 87.8% 9.4% NA 37.6% 39.0% NM 7.6x 5.5x 4.3x NM NM

Qualys, Inc. QLYS 1,015 1,130 79.8% (4.4%) 37.0% 21.6% 23.1% 23.8% 5.3x 4.3x 3.6x 22.4x 60.3x

Callidus Software Inc. CALD 788 1,066 78.4% (9.5%) 22.4% 20.1% 23.1% NM 4.0x 3.2x 2.7x NM NM

Mimecast Limited MIME 941 975 72.8% 86.5% NA 24.5% 30.9% NM 5.9x 4.5x 3.8x NM NM

Benefitfocus, Inc. BNFT 896 881 66.0% (18.4%) (48.6%) 31.6% 24.2% NM 4.0x 3.2x 2.7x NM NM

Box, Inc. Class A BOX 1,676 869 83.5% (0.7%) NA 33.3% 31.6% NM 4.5x 3.4x 2.8x NM NM

Fiv e9, Inc. FIVN 735 752 86.5% 63.1% NA 27.1% 21.0% NM 4.8x 3.9x 3.3x NM NM

MINDBODY, Inc. MB 781 575 92.8% 40.8% NA 38.4% 39.0% NM 6.0x 4.3x 3.4x NM NM

Instructure, Inc. INST 466 552 72.6% (6.1%) NA 128.0% 47.6% NM 4.6x 3.1x 2.4x NM NM

Rapid7 Inc. RPD 417 517 63.1% (19.6%) NA 88.9% 31.7% NM 2.9x 2.2x 1.8x NM NM

Hortonworks, Inc. HDP 407 505 37.8% (62.1%) NA 69.3% 39.7% NM 2.4x 1.7x 1.4x NM NM

Workiv a, Inc. WK 524 413 71.7% (22.3%) NA 27.0% 21.3% NM 3.0x 2.5x 2.1x NM NM

Bazaarv oice, Inc. BV 353 405 79.1% 10.7% (38.8%) 2.4% 4.7% 0.4% 1.8x 1.7x 1.6x NM NM

Xactly Corp XTLY 313 345 68.3% 29.0% NA 29.1% 22.2% NM 3.4x 2.8x 2.3x NM NM

AppFolio Inc APPF 784 277 97.3% 63.4% NA 105.5% 39.1% NM 8.0x 5.7x 4.6x NM NM

Model N, Inc. MODN 176 249 63.3% (20.7%) (24.9%) 14.1% 2.5% NM 1.6x 1.6x NM NM NM

Castlight Health, Inc. CSLT 394 245 90.0% 15.9% NA 36.0% 33.2% NM 4.2x 3.2x 2.6x NM NM

Amber Road, Inc. AMBR 250 243 73.8% 78.4% NA 5.4% 17.0% NM 3.5x 3.0x 2.7x NM NM

Apptio, Inc. Class A APTI 587 128 75.3% NA NA 22.7% 25.1% NM 3.9x 3.1x 2.6x NM NM

Median $788 $869 78.4% (0.6%) 7.0% 31.6% 29.3% 10.1% 4.6x 3.4x 2.8x 31.8x 54.9x



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DATA & ANALYTICS

Verisk Analytics Inc VRSK $16,053 $13,592 94.4% 5.6% 23.5% 3.9% 3.0% 49.2% 7.8x 7.6x 7.2x 15.9x 29.7x

Splunk Inc. SPLK 5,862 6,939 77.8% (13.0%) (25.5%) 44.9% 35.3% NM 6.8x 5.0x 3.9x NM NM

Tableau Software, Inc. DATA 2,324 2,434 44.0% (55.3%) (38.9%) 31.2% 11.5% NM 3.0x 2.7x 2.4x NM NM

Teradata Corporation TDC 3,163 3,529 82.1% 2.8% (40.3%) (6.1%) (11.5%) 21.4% 1.3x 1.5x 1.5x 6.1x 196.1x

Pegasystems Inc. PEGA 2,717 2,748 97.0% 30.9% 46.4% 16.6% 15.6% 12.3% 3.6x 3.1x 2.7x 29.4x 76.3x

Verint Systems Inc. VRNT 2,654 2,209 85.2% (13.1%) (17.9%) (9.8%) 7.2% 13.7% 2.5x 2.4x 2.2x 18.5x NM

MicroStrategy Incorporated MSTR 1,695 1,855 95.2% 10.1% 58.9% (3.7%) 2.0% 26.2% 3.3x 3.2x 2.9x 12.6x 18.8x

PROS Holdings, Inc. PRO 659 657 83.9% (6.6%) (46.1%) (13.7%) 2.7% NM 4.2x 4.1x 3.5x NM NM

Inov alon Holdings, Inc. INOV 1,118 649 51.4% (39.4%) NA 11.2% 0.6% 22.3% 2.5x 2.5x 2.3x 11.1x 15.3x

Median $2,654 $2,434 83.9% (6.6%) (21.7%) 3.9% 3.0% 21.9% 3.3x 3.1x 2.7x 14.2x 29.7x

IT OPERATIONS MANAGEMENT

Citrix Systems, Inc. CTXS $13,833 $13,929 96.7% 18.1% 41.2% 6.0% 4.1% 25.6% 4.1x 3.9x 4.0x 15.8x 29.8x

CA, Inc. CA 12,681 13,275 90.8% 11.2% (5.6%) (0.9%) 0.7% 38.5% 3.1x 3.1x 3.0x 8.1x 16.8x

Red Hat, Inc. RHT 12,178 12,518 83.2% (15.8%) 24.4% 17.9% 14.3% 17.0% 5.2x 4.6x 4.1x 30.9x 52.0x

Serv iceNow, Inc. NOW 11,987 12,341 82.8% (14.1%) 32.7% 40.6% 39.4% NM 9.3x 6.7x 5.2x NM NM

F5 Networks, Inc. FFIV 8,956 9,453 97.6% 49.3% 59.3% 3.9% 9.3% 30.7% 4.5x 4.1x 3.8x 14.6x 25.8x

VMware, Inc. VMW 26,707 8,784 94.9% 39.2% (12.2%) 6.9% 7.3% 25.2% 3.9x 3.6x 3.4x 15.3x 7.8x

Arista Networks, Inc. ANET 6,349 6,794 97.8% 24.3% NA 36.7% 29.9% 22.4% 6.1x 4.7x 4.0x 27.1x 40.5x

Micro Focus International plc MCRO-GB 8,015 6,175 84.3% 14.5% 108.8% 7.7% 6.3% 44.3% 6.0x 5.7x 5.6x 13.6x 37.2x

NetScout Systems, Inc. NTCT 2,901 2,885 93.1% 2.6% 6.5% 88.8% 9.0% 14.9% 2.5x 2.3x 2.2x 17.1x NM

Software AG SOW-DE 2,667 2,873 82.9% 26.7% 3.9% (5.0%) (0.5%) 30.7% 2.8x 2.8x 2.7x 9.1x 17.8x

Progress Software Corporation PRGS 1,473 1,552 98.3% 33.0% 23.6% 10.4% 6.7% 25.2% 3.7x 3.4x NM 14.6x 180.5x

New Relic, Inc. NEWR 1,253 1,472 73.0% (22.5%) NA 54.9% 39.6% NM 5.6x 4.0x 3.2x NM NM

Radware Ltd. RDWR 431 638 93.4% (5.0%) (18.9%) (10.0%) 0.1% 1.6% 2.2x 2.2x 2.0x 133.3x NM

Apptio, Inc. Class A APTI 587 128 75.3% NA NA 22.7% 25.1% NM 3.9x 3.1x 2.6x NM NM

Median $7,182 $6,485 92.0% 14.5% 23.6% 9.0% 8.1% 25.2% 4.0x 3.7x 3.4x 15.3x 29.8x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

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Financial

HCIT

Public Sector /

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DATA STORAGE

NetApp, Inc. NTAP $7,146 $9,713 90.4% 32.9% (14.3%) (7.8%) 1.2% 14.1% 1.3x 1.3x 1.3x 9.4x 30.5x

Iron Mountain, Inc. IRM 14,618 8,557 78.3% 20.3% 7.0% 9.7% 14.8% 23.6% 4.4x 3.8x 3.7x 18.6x 148.5x

CommVault Systems, Inc. CVLT 1,852 2,328 89.8% 30.6% (31.3%) 7.4% 8.5% 3.1% 3.0x 2.7x 2.5x NM NM

Barracuda Networks, Inc. CUDA 967 1,121 80.3% 14.7% (46.0%) 13.2% 9.8% 7.3% 2.9x 2.6x 2.3x 39.4x 163.2x

Pure Storage, Inc. Class A PSTG 1,696 933 69.0% (27.4%) NA 272.8% 51.7% NM 2.6x 1.7x 1.3x NM NM

Box, Inc. BOX 1,676 869 83.5% (0.7%) NA 33.3% 31.6% NM 4.5x 3.4x 2.8x NM NM

Nimble Storage, Inc. NMBL 503 674 80.0% (13.9%) (82.5%) 25.1% 28.2% NM 1.3x 1.0x 0.9x NM NM

Nutanix, Inc. Class A NTNX 1,628 454 56.8% NA NA 85.1% 63.9% NM 3.1x 1.9x 1.4x NM NM

Carbonite, Inc. CARB 402 447 83.6% 67.3% 38.6% 41.3% 15.3% 6.5% 2.1x 1.9x 1.7x 32.7x NM

Median $1,676 $933 80.3% 17.5% (22.8%) 25.1% 15.3% 7.3% 2.9x 1.9x 1.7x 25.6x 148.5x

IT SECURITY

Cisco Systems, Inc. CSCO $116,923 $151,697 94.6% 11.3% 34.7% (1.4%) (0.3%) 31.2% 2.4x 2.4x 2.3x 7.7x 14.3x

Symantec Corporation SYMC 16,369 14,893 92.9% 13.8% 1.3% (61.9%) 82.5% 19.9% 6.8x 3.7x 3.5x 34.0x NM

Check Point Software Ltd. CHKP 13,287 14,772 93.9% 3.8% 30.9% 7.6% 7.0% 50.5% 7.8x 7.2x 6.9x 15.4x 21.2x

Palo Alto Networks, Inc. PANW 10,407 11,465 70.4% (29.0%) 117.6% 43.2% 36.5% NM 7.0x 5.1x 4.1x NM NM

VeriSign, Inc. VRSN 9,824 7,955 82.7% (12.9%) 27.2% 8.2% 3.7% 65.1% 8.7x 8.4x 8.0x 13.4x 18.2x

Fortinet, Inc. FTNT 4,329 5,212 80.4% (3.4%) 57.4% 29.1% 21.4% 4.8% 3.6x 2.9x 2.6x 74.8x NM

Gemalto N.V. GTO-NL 5,531 5,209 77.3% (3.5%) (47.5%) 2.1% (0.1%) 16.8% 1.6x 1.6x 1.5x 9.5x 26.3x

Trend Micro Incorporated 4704-JP 3,652 4,998 83.2% (13.1%) 1.7% 7.5% 9.5% 31.7% 3.3x 3.0x 2.9x 10.4x 31.2x

Proofpoint, Inc. PFPT 2,924 3,002 80.3% 8.7% 113.0% 39.3% 40.9% NM 8.5x 6.0x 4.7x NM NM

FireEye, Inc. FEYE 1,767 2,036 52.9% (42.6%) (72.7%) 22.9% 11.1% NM 2.5x 2.2x 1.9x NM NM

CyberArk Software Ltd. CYBR 1,385 1,527 76.8% 0.8% NA 39.9% 29.3% 21.4% 6.8x 5.3x 4.4x 31.8x 54.9x

Qualys, Inc. QLYS 1,015 1,130 79.8% (4.4%) 37.0% 21.6% 23.1% 23.8% 5.3x 4.3x 3.6x 22.4x 60.3x

Mimecast Limited MIME 941 975 72.8% 86.5% NA 24.5% 30.9% NM 5.9x 4.5x 3.8x NM NM

Varonis Systems, Inc. VRNS 598 715 83.6% 42.6% NA 31.4% 26.4% NM 3.9x 3.1x 2.7x NM NM

Rapid7 Inc. RPD 417 517 63.1% (19.6%) NA 88.9% 31.7% NM 2.9x 2.2x 1.8x NM NM

Cheetah Mobile, Inc. CMCM 1,240 350 52.6% (40.3%) NA 34.4% 12.6% 1.8% 1.8x 1.6x 1.4x 103.9x NM

SecureWorks Corp. Class A SCWX 736 113 65.2% NA NA 27.7% 20.0% NM 1.8x 1.5x 1.3x NM NM

Median $2,924 $3,002 79.8% (3.4%) 30.9% 24.5% 21.4% 22.6% 3.9x 3.1x 2.9x 18.9x 26.3x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

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