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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 2Q 2017

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 2Q 2017

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 2Q 2017

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS

SOFTWARE PUBLIC COMPARABLES

TECHNOLOGY IPOS

DEBT MARKETS

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

Data and Analytics

Data Center andManaged Services

Enterprise Software

Infrastructure andSecurity Software

IT and Tech-EnabledServices

INTERNET & DIGITAL MEDIA

Consumer Internet

Digital Media andContent

eCommerce and Retail

Mobile

Online Marketing

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

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

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

Over 260 professionals across eightoffices in the U.S. and Europe

Strategic relationships in India andChina

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education Technology

Engineered Solutions

Fintech

Healthcare IT

Public Sector and Non-Profit

Supply Chain and LogisticsTechnology

Human CapitalManagement

Professional Services

has been acquired byhas been

recapitalized byhas received a majority

investment fromhas been acquired by

has received a majority investment from

has received a growth

investment fromhas been acquired by

has received a majorityInvestment from

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

mailto:[email protected]




mailto:*[email protected]

http://www.leisurepassgroup.com/


PAGE |



CASE STUDY: MARKET TRACK

SECTOR TAILWINDS

Market Track is the leading provider of data-driven marketingintelligence solutions that enable retailers, brands, manufacturers,agencies, and brokers to analyze their advertising, promotional,and pricing initiatives to make more informed decisions that driveincreased revenue and higher ROI.

More than 2,100 clients rely on Market Track’s comprehensivecoverage of key media channels in order to determine howcompeting retailers, products, and brands are being advertised,priced, and promoted both in-store and online.

With the investment from Vista Equity Partners, Market Track isideally positioned to begin its next phase of growth, expanding itscoverage of new geographies and media types andaugmenting its existing technology with additional innovation.

HW&Co.’s TMT Group advised Market Track, a portfolio company of Aurora Capital Group, on itssale to Vista Equity Partners.

2

DATE CLOSED:

6/5/2017

RELEVANT SECTORS:

Data & Analytics

Online Marketing

SaaS

HW&CO. DEAL CONTACTS

eCommerce & Retail

Mike WilkinsManaging Director

[email protected]

Office: (415) 217-3411

Scott ReinigVice President

[email protected]

Office: (617) 654-2113

Erik SzyndlarDirector

[email protected]

Office: (415) 217-3418

Market Track’s ability to collect and deliver market intelligence on a global scale in real time is truly unique, particularly ascompetition among manufacturers and retailers intensifies and companies worldwide demand more efficient access to the mostaccurate and actionable competitive data and analytics capabilities.

has been acquired by

a portfolio company of




PAGE |



SELECT SOFTWARE M&A TRANSACTIONS – 2Q 20171

TPG Capital’s majority investment in LLamasoft

Llamasoft provides supply chain analytics and planning software that optimizes the entire supply chain process, from sourcingto manufacturing and warehousing to logistics.

Serving over 700 customers worldwide, the Company’s solutions help organizations significantly improve supply chain efficiencyby enabling increased visibility into and customization of the supply chain process.

TPG’s proven track record of successful investments in software and technology companies that provide optimization solutionswill further LLamasoft’s position as the undisputed leader in the supply chain design space.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

May 9, 2017

HGGC’s pending recapitalization of IDERA

IDERA provides SaaS-based database lifecycle management solutions and application development tools, with core expertisein Windows and Linux server systems.

The Company’s products are used by 20,000+ organizations across industries, assisting database professionals in designing,monitoring, and managing data systems and enabling software engineers to efficiently build, test, and deploy applications.

Following completion of the transaction, HGGC, as the controlling investor, with continued support from TA Associates, willprovide resources that enable IDERA to continue growing market share both organically and inorganically.

Ent. Value: $1,125M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Pending

Vista Equity’s majority investment in PayLease

PayLease provides online payment, resident billing, and utility expense management solutions for HOAs and propertymanagement companies that simplify workflow, increase ROI, and enhance communications with residents.

Over 4,500 property management companies nationwide use PayLease’s solutions to streamline day-to-day operations,improve existing payment systems, and further increase profitability.

Post acquisition, Vista Equity’s capital and executive resources will further support PayLease’s accelerated organic growthstrategy as well as enable potential future strategic acquisitions.

June 28, 2017

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

3

Blackstone and CPPIB’s pending acquisition of Ascend Learning

Ascend Learning provides educational content, software, and analytics tools for students, educational institutions, andemployers, with a focus on healthcare and other regulated and compliance-driven industries.

The Company’s products span the full learning continuum and include admissions testing, educational content, testpreparation, and professional certifications.

Following the close of the transaction, Blackstone and CPPIB will provide continued capital support as well as operationalexpertise to enable Ascend to continue pursuing its acquisition-focused growth strategy.

Ent. Value: $2,200M

Revenue: $400M

EV / Revenue: 5.5x

EV / EBITDA: 13.8x

Pending

Private Private

Private

Oracle’s pending acquisition of Moat

Moat provides a cloud-based actionable marketing analytics platform designed to measure and drive customer attention,enabling brands and publishers to increase advertising effectiveness and content engagement.

The Company has grown its attention analytics business by over 100% in the past year, providing actionable insights aroundviewability, brand safety, non-human traffic, and ad effectiveness to over 600 publisher, brand, and agency clients.

With the acquisition of Moat, Oracle Data Cloud now offers brands and publishers a full suite of targeting and measurementsolutions to improve the outcome of every type of digital advertising campaign.

Ent. Value: $850M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Pending

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME1

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active strategicsoftware acquirers have registered31 acquisitions in 2017 YTD. Activityamong large strategic acquirerscontinued at a pace similar to 2016levels as incumbent players look toM&A to expand product lines andreach new customers.

Microsoft has been the most activestrategic acquirer in 2Q 2017 as the company’s new CEO, Satya Nadella, executes on a proactive M&A strategy designed to move Microsoft into new strategic markets. Key focus areas thus far have included machine learning, cloud optimization, and 3D data applications.

Global strategic software M&A registered 328 acquisitions in 2Q2017, remaining in line with the priorfour quarters.

Key strategic software acquirersremain flush with cash and viewM&A as an attractive avenue forgrowth and product advancement,though uncertainty regarding thenew U.S. administration and itspotential polices will play animportant role in the near-termappetites of potential acquirers.

333 327 324371

340309

402454 437 434

406

341 359 350 348 328

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 1Q '17 2Q '17

5 59 9 8 9

59 9

28

106 4

94

1

8

1

3

12

1813

10 3

3

6

3

4

1

15

914

78

69

2

8

5

4

62

34

2 2

8

2017 YTD

2016

2015

2014

2013

(# 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 VOLUME1

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active softwareinvestors completed 18 newplatform investments in 2017 YTD,and activity has been significantlycomplemented by a steady flow ofadd-on M&A activity.

Vista Equity, Francisco Partners, andThoma Bravo were the most activeprivate equity software buyers in2017 YTD, each consummatingmajor transactions including Vista’sacquisitions of Market Track andXactly, Thoma’s acquisition ofLexmark’s Enterprise Softwaredivision, and Francisco Partners’acquisition of SmartBear.

Globally, private equity registered91 new software platforminvestments in 2Q 2017,representing a 50% year-over-yearincrease.

The software sector is rapidlyevolving as all industries areexperiencing disruptive digitaltechnology transformations. Tocapitalize on this trend, dealmakers,including both traditionaltechnology investors and non-traditional investors, are deployingan unprecedented amount ofcapital in the software sector.

73 4

15

2 3 2 13

9

5 35

46 3 4

43

6

5 7

3

3 57 7

62

12

7 4

85

53

11

4

5

34

2 2

1 1

2017 YTD

2016

2015

2014

2013

47 45 4332

48 47 4454 56

47 5061

7481

73

91

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 1Q '17 2Q '17

(# of Platform Transactions)

(# of Platform Transactions)

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

PAGE | 6



DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME1 (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS1,5

Application Software M&A registered 288 transactions in2Q 2017, remaining in line withthe prior four quarters.

2Q 2017 median reportedApplication Software M&A revenue multiples increased slightly to 2.4x and remained in line with the four-year historical averages.

MEDIAN M&A REVENUE MULTIPLES1 (REPORTED)

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

2.3x

2.4x

Take privates remain an activestrategy in ApplicationSoftware, as private equityfirms continue to scour publicmarkets for attractiveundervalued opportunities;Vista Equity Partners’acquisition of DH Corp. is thelatest example of this trend.

246 252 251

227

282 271

289

272

319 320 316 314

281

298 307

291 288

MEDIAN

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

1Q '1

7

2Q '1

7

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

1Q '1

7

2Q '1

7

Application Software

Pending The Blackstone Group; CPPIB Ascend Learning LLC Educational and eLearning software, content, and analytics solutions. $2,200 5.5x

Pending Enel Green Power North America, Inc. EnerNOC, Inc. Energy intelligence and demand response software. $281 0.7x

Pending TA Associates MRI Software Real estate software solutions. NA NA

Pending Harvest Partners LP PRO Unlimited, Inc. Contingent workforce management software. $780 NA

Pending SIRIS Capital Group LLC Synchronoss Technologies, Inc. Software-based device activation solutions. $909 1.9x

Pending GIC Visma AS Enterprise accounting and financial software solutions. $2,855 3.1x

07/10/17 Thoma Bravo LLC Lexmark Intl. (Enterprise Software Assets) Portfolio of advanced digital transformation software technologies. $1,500 NA

06/28/17 Vista Equity Partners PayLease Payments and billing software for the property management and HOA industry. NA NA

06/13/17 Vista Equity Partners DH Corp. Lending and payments software solutions for banks. $3,447 2.7x

06/12/17 Forterro, Inc. Clip Industrie SAS Enterprise resource planning software for manufacturing applications. NA NA

06/12/17 Wave Systems Corp. Jive Software, Inc. Enterprise communication and collaboration software. $462 2.3x

06/07/17 Fingerprint Cards AB Delta ID, Inc. Identity recognition and authentification scanning software for mobile devices. $120 NA

06/01/17 Itron, Inc. Comverge, Inc. Demand response and energy efficiency software. $104 1.7x

06/01/17 Marlin Equity Partners NYSE Governance Serv ices Governance, risk, and compliance eLearning software. NA NA

05/30/17 Optimal Blue Comergence Compliance Monitoring Risk management software tools for the mortgage industry. NA NA

05/16/17 Vista Equity Partners Zapproved eDiscovery solutions for corporate legal departments. NA NA

05/05/17 EQT Partners AB Innovyze, Inc. Design and performance monitoring software solutions for wet infrastructure. $270 NA

04/26/17 Hexagon AB MSC Software Corp. Computer-aided engineering simulation software. $834 NA

04/04/17 TeleTech Healthcare Solutions, Inc. Connextions, Inc. Member acquisition, retention, and engagement solutions for healthcare plan providers. $80 NA

$780 2.3x

PRIVATE

PAGE | 7



SaaS

Pending Advent International Corp. CCC Information Serv ices, Inc. SaaS-based collision repair and insurance estimating software. $3,000 NA

Pending Intel Corp. Mobileye NV Vision-based advanced driver assistance and collision avoidance software. $15,300 42.7x

Pending Vista Equity Partners Xactly Corp. Cloud-based, enterprise-wide incentive management software. $473 4.9x

06/30/17 Thoma Bravo Riskonnect SaaS-based risk management and data v isualization software. NA NA

06/29/17 Mediware Information Systems, Inc. Kinnser Software, Inc. SaaS-based clinical and business results delivery software. NA NA

06/06/17 Investcorp Bank BSC ABAX AS Mobile vehicle tracking and fleet management software solutions. $210 3.8x

05/31/17 K1 Investment Management LLC Certify, Inc. Cloud-based travel and expense report management software. $100 NA

05/24/17 Callidus Software RevSym Cloud-based revenue recognition automation software. NA NA

05/22/17 Optima Healthcare Solutions Hospicesoft Cloud-based hospice management software. NA NA

05/09/17 HGGC etouches, Inc. Cloud-based event management software. NA NA

05/09/17 TPG Capital Llamasoft SaaS-based supply chain analytics and planning platform. NA NA

05/01/17 Saba Software, Inc. Halogen Software, Inc. Cloud-based employee performance and talent management software. $166 2.3x

04/26/17 Togetherwork Holdings LLC Bunk1.com SaaS-based camp management software. NA NA

04/14/17 Quality Systems Entrada, Inc. SaaS-based clinical documentation and data exchange automation software. $34 2.8x

04/07/17 Genstar Capital Blue Star Sports, Inc. SaaS-based management software platform for youth and amatuer sports. $225 4.5x

04/06/17 Wolters Kluwer Tax & Accounting Tagetik Software SRL SaaS-based corporate performance management and business intelligence software. $318 5.3x

04/03/17 McKesson Corp. CoverMyMeds LLC Electronic health record and pharmacy systems automation software. $1,400 29.5x

04/03/17 Castlight Health, Inc. Jiff, Inc. Cloud-based enterprise health benefits platform to help employers lower healthcare costs. $153 NA

03/31/17 Healthcaresource HR, Inc. Clearv iew Staffing Software, Inc. SaaS-based workforce management software for healthcare staffing agencies. NA NA

$225 4.7x

HW&CO. CONFIDENTIAL

49 47

45 46

60

54 53

65

68 70

55

52 51 52 54

48

43

NOTABLE SAAS M&A TRANSACTIONS1,5

5.3x

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x

4.9x

5.6x5.4x

4.8x4.6x

4.7x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME1 (GLOBAL)

SaaS M&A registered 43transactions in 2Q 2017, slightlybelow recent averages.

Median reported SaaStransaction revenue multiples increased slightly to 4.7x in 2Q 2017, remaining in line with the prior two quarters.

As cloud continues to becomethe delivery model of choice,sector activity remains robust,with strong interest from bothprivate equity investors andstrategic buyers.

In 2Q 2017, SaaS companieswith disruptive platforms in thehealthcare IT sector were ofparticular interest, asevidenced by Mediware’spending acquisition of KinnserSoftware, Optima’s acquisitionof Hospicesoft, andHealthcaresource HR’sacquisition of ClearviewStaffing Software.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

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

1Q '1

7

2Q '1

7

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

1Q '1

7

2Q '1

7

PAGE | 8



Data and Analytics

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

Pending Accenture Plc Endgame, Inc. Endpoint security intelligence and analytics platform leveraging machine learning. NA NA

Pending Google, Inc. Fabric Software development and analytics tools, including a crash reporting platform. NA NA

Pending Thales SA Guavus, Inc. Real-time big data analytics / machine learning platform. $215 NA

Pending Oracle Corp. Moat, Inc. Cloud-based actionable marketing analytics software. $850 NA

Pending Golden Gate Capital NeuStar, Inc. Real-time information and analytics software and serv ices. $2,733 2.3x

Pending Insight Venture Partners Zyme Solutions, Inc. Cloud-based channel data management platform. $100 NA

06/29/17 Market Track InfoScout Consumer behavior / business intelligence software for retailers and brands. NA NA

06/06/17 The Blackstone Group Entic Energy consumption and efficiency analytics software. NA NA

06/06/17 Alteryx, Inc. Yhat, Inc. End-to-end data science platform for real-time API management. NA NA

06/05/17 Vista Equity Partners Market Track Advertising, promotional, and pricing intelligence software. $625 6.6x

06/01/17 TBG AG Telvent DTN, LLC Agricultural information technology and data solutions. $900 4.2x

05/31/17 Vector Capital Cheetah Digital Customer data management and cross-channel communications marketing software. $300 NA

05/26/17 Cisco Systems, Inc. MindMeld, Inc. Machine learning AI platform designed to build intelligent conversational interfaces. $125 NA

04/18/17 HMS Holdings Corp. Eliza Corp. Predictive analytics healthcare communication and management platform. $170 2.9x

04/13/17 LLR Partners Care Management Technologies Behavioral health analytics and decision support software. NA NA

04/03/17 Sartorius Stedim Biotech SA Umetrics AB Data analytics software platform for the biopharmaceutical industry. $72 4.8x

03/31/16 Guidewire Software, Inc. EagleEye Analytics LLC Predictive analytics software for the property and casualty insurance industry. $42 NA

03/29/17 China Oceanwide Holdings Group International Data Group, Inc. Media, data, and marketing platform for the technology industry. $1,000 0.3x

$258 3.5x

HW&CO. CONFIDENTIAL

NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS1

71 74

64 67

72 76

99

89

105

112

102

82

87

99 98

105 108

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME1 (GLOBAL)

Data and Analytics M&A continued its upwardmomentum, registering 108transactions in 2Q 2017,representing a 24% increaseover 2Q 2016.

In 2Q 2017, median reportedsector transaction multiples decreased to 2.3x revenue, though remain in line with two-year historical averages.

Data and Analytics continuesto be a major focus area forenterprises in 2017 asoperational decision-making isincreasingly driven bycomplex and real-time data.

Marketing and advertisinganalytics companies are indemand, as evidenced byOracle’s pending acquisitionof Moat, Vista Equity’sacquisition of Market Track,and Vector Capital’sacquisition of Cheetah Digital.


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

2.8x

2.3x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

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

1Q '1

7

2Q '1

7

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

1Q '1

7

2Q '1

7

PAGE | 9



Infrastructure Software

Pending Broadcom Ltd. Brocade Communications Systems, Inc. Data storage and networking software and solutions. $5,550 2.4x

Pending Open Text Corp. Covisint Corp. Cloud-based building identity and IoT application development. $67 1.0x

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

Pending HGGC LLC IDERA Systems and application management software. $1,125 NA

Pending Microsoft Corp. Intentional Software Corp. Productiv ity application software development platform. NA NA

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

Pending Cisco Systems, Inc. Viptela, Inc. Cloud-based WAN v irtualization technology. $610 6.1x

Pending Oracle Corp. Wercker BV SaaS-based code deployment and automation platform. NA NA

05/15/17 Battery Ventures Concurrent Real-Time, Inc. Advanced server and embedded applications. $35 NA

05/03/17 Francisco Partners SmartBear Software Enterprise-class software development and testing tools. NA NA

05/02/17 Oakley Capital Plesk, Inc. Website automation software. $105 3.8x

04/17/17 Hewlett Packard Enterprise Co. Nimble Storage, Inc. Flash-optimized hybrid storage solutions. $964 2.4x

04/10/17 Microsoft Corp. Deis, Inc. Open source container management application platform. NA NA

04/07/17 Akamai Technologies, Inc. SOASTA, Inc. Website and mobile application performance management software. $199 NA

04/04/17 TPG Capital McAfee LLC Anti-v irus, data protection and encryption, and database security software. $6,078 NA

04/03/17 Thoma Bravo; TPG Capital Intel Security Enterprise-class antiv irus software. $1,100 2.8x

04/03/17 CA, Inc. Veracode, Inc. Cloud-based application security software. $614 NA

03/22/17 Cisco Systems, Inc. AppDynamics, Inc. Application performance management software designed for business applications. $3,903 18.9x

03/21/17 Madison Dearborn Partners LLC BlueCat Networks, Inc. IP address management, enterprise DNS, and DHCP solutions. $303 NA

$789 2.8x

61

56 55 53

48

56

47 45

50

36

52

44

57

60

75

63 62

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

2.6x

2.4x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS1

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME1 (GLOBAL)

Infrastructure Software M&A registered 62 transactions in2Q 2017, comparable with theprior quarter though stillamong the most activequarters since 2013.

2Q 2017 median reportedInfrastructure Softwaretransaction multiplesdecreased to 2.4x revenue,but remain in line withhistorical averages.

Established software vendors,including Oracle, Micro Focus,Microsoft, HPE, and Cisco,remain among the most activeacquirers of InfrastructureSoftware companies.

Key Infrastructure Softwareareas of interest in 2Q 2017included development tools(e.g., Oracle’s pendingacquisition of Apiary, FranciscoPartners’ acquisition ofSmartBear, and Microsoft’spending acquisition ofIntentional Software) andapplication management tools(e.g., HGGC’s acquisition ofIDERA).


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

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

1Q '1

7

2Q '1

7

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

1Q '1

7

2Q '1

7

MEDIAN

PAGE | 10



PRIVATE PLACEMENT CAPITAL RAISED BY ROUND1,4 (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

There were 751 privateplacement financings in2Q 2017, which remains inline with the past sixquarters.

Total capital raisedcontinued to rebound,with a reported $14.8billion invested in 2Q 2017compared to $11.8 billionin 1Q 2017.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 2Q 2017, the majority ofprivate capital investedwas in late stage (C –later) rounds, with 49% ofcapital in Series D or laterrounds.

Notable late stage dealsinclude Crowdstrike’s $100 million series D raise, led by Accel Partners; Modernizing Medicine’s $231 million series F raise, led by Warburg Pincus; and Qualtrics’ $180 million series C raise, led by Accel Partners.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED1,4

829

912

829

940 952

1013 997 1033

960

756869

896

817785 797

751

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

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 1Q-17 2Q-17

$ i

n M

illio

ns

Vo

lum

e

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

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

31%

19% 29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

17% 12% 11%

30%

22%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

20% 11%

13%

34% 15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

20%

19%

27%

21% 21% 31%

20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

29%

47% 49%

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 1Q-17 2Q-17

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

PAGE | 11



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS1,4

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

06/13/17 SaaS C $41 $51 Catalyst Inv estors; Lev el EquityProv ider of SaaS-based risk management and

contingency planning software

06/07/17 SaaS B $16 $27 Menlo Ventures; New Enterprise Associates Prov ider of cloud-based strategic eSourcing software

05/25/17 SaaS E $50 $112 Riv erwood Capital ManagementProv ider of cloud-based payment cycle management

software

05/18/17 Infrastructure C $40 $48 Insight Venture PartnersProv ider of a software testing and performance

platform

05/17/17 Infrastructure D $100 $256 Accel Partners; CapitalG; Warburg Pincus; March Capital

Partners; Telstra

Prov ider of a cloud-based, real-time cybersecurity

platform

05/10/17 SaaS F $231 $314 Warburg PincusProv ider of mobile-based EHR software for specialist

physicians

05/09/17 SaaS E $52 $156

Lightspeed Ventures; Battery Ventures; Bain Capital Ventures;

Bessemer Venture Partners; Cisco Inv estments; Insight Venture

Parters; Salesforce Ventures

Prov ider of customer success management software

05/05/17 SaaS E $54 $70 Accel PartnersProv ider of facilities / building management

procurement software

04/27/17 Infrastructure Growth $128 NA Ontario Pension Board; Sumeru Equity Prov ider of a software asset management platform

04/26/17 SaaS Growth $70 $74 KKR Prov ider of web-based spend management software

04/12/17Data &

Analytics C $180 $400 Accel Partners; Insight Venture Partners; Sequoia Capital

Prov ider of enterprise data collection and analysis

software

04/05/17Data &

Analytics D $100 $204

ICONIQ; Madrona Venture Group; Altimeter Capital; Redpoint

Ventures; Sutter Hill Ventures; Wing VenturesProv ider of cloud-based data warehousing software

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

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR1

EBITDA MULTIPLE COMPARISON 2Q 2016 VS. 2Q 2017

8.6x

7.4x

8.0x

6.3x

5.5x4.9x

4.3x 4.1x

4.8x

3.1x3.5x

4.4x4.7x

3.5x3.6x

2.7x 2.7x

9.1x

7.6x

7.1x6.6x 6.4x 6.2x

5.6x 5.4x 5.4x5.1x 5.1x 5.0x

4.2x3.7x

3.5x 3.3x 3.1x

2Q 2016 2Q 2017

49.4x

25.5x

27.2x

17.0x

55.0x

37.2x

16.4x

11.9x

16.9x15.7x 16.1x

14.8x15.8x

11.5x

17.8x

12.7x 14.3x

57.2x

25.9x

47.7x

18.5x

59.6x

40.5x

21.3x

16.9x16.4x

18.1x22.7x

16.0x18.4x

13.3x

18.6x 19.4x

23.3x

2Q 2016 2Q 2017

REVENUE MULTIPLE COMPARISON 2Q 2016 VS. 2Q 2017STOCK PERFORMANCE (1- & 3-YEAR)

37.9%

12.6%

2.2%

19.8%

21.2%

33.6%

36.6%

22.7%

31.5%

17.7%

19.9%

21.1%

9.1%

36.8%

8.4%

12.8%

51.7%

62.6%

14.0%

40.3%

73.5%

44.6%

38.2%

51.9%

41.2%

104.1%

1.7%

50.6%

38.6%

13.4%

23.7%

(5.8%)

(14.8%)

9.9%

1 Yr Stock 3 Yr Stock

Large-Cap SaaS

SCM & Logistics

HCM

Financial

Marketing

Small-Cap SaaS

PLM & Engineering

Bellwethers

EdTech / Non-Profit

Data & Analytics

IT Security

Enterprise

HCIT

IT Operations Mgmt.

Communication

Energy

Data Storage

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES1

9.1x

7.6x

7.1x

6.6x

6.4x

6.2x

5.6x

5.4x

5.4x

5.1x

5.1x

5.0x

4.2x

3.7x

3.5x

3.3x

3.1x

Large-Cap SaaS

SCM & Logistics

HCM

Financial

Marketing

Small-Cap SaaS

PLM & Engineering

Bellwethers

EdTech / Non-Profit

Data & Analytics

IT Security

Enterprise

HCIT

IT Operat ions Mgmt.

Communication

Energy

Data Storage

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

33% 108% 16% 21% 40% -

18% 35% 23% 79% 69% 14%

25% 64% 23% 79% 32% -

10% 19% 36% 63% - 86%

23% 169% 9% 71% - 84%

29% 146% 9% 18% 20% -

8% 22% 26% 22% - 70%

4% 30% 31% 84% 48% 26%

15% 37% 25% 69% 34% 33%

8% 28% 19% 72% 23% 61%

20% 66% 20% 32% - 59%

10% 18% 30% 68% 82% 48%

20% 45% 17% 26% 63% 25%

7% 27% 30% 83% 58% -

22% 144% 17% - - 57%

5% 9% 26% - 78% 99%

14% 108% 11% 29% 27% -

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

The market for technology IPOs continues togain traction, with six companies listing in 2Q2017. As global indexes continue to reachnew highs on a regular basis, driven largelyby record growth in technology stocks, bothstartups and unicorns alike increasingly viewthe public markets as a viable source ofliquidity.

While a strong backlog of technology IPOsremains, political uncertainty around thenew US administration as well as SNAP’srecent stock performance decline remainkey considerations as companies considerthe public markets.

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

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE) 1

19%

48%

33%

< 25% 25 - 75% > 75%

46%

29%

25%

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

13%

29%

42%

17%

$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

4

5

6

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 1Q-17 2Q-17

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

2013 Total: 48 2014 Total: 47 2016 Total: 152015 Total: 31 2017 YTD Total: 11

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 IPOS1

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

91.4% 95.2%

109.2%

8.8%

22.6%

62.2%

115.5%

96.8%

5.8%

49.2% 38.9% 37.3%

4.1%

53.5%

16.5%

117.1%

43.2% 33.4% 20.5%

84.3% 115.3%

49.3%

85.7%

17.7% 70.3%

59.4%

86.6%

57.2%

9.1% 31.5%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

6/22/16 7/28/16 9/15/16 9/22/16 9/29/16 10/5/16 10/27/16 12/15/16 3/9/17 3/16/17 3/24/17 4/6/17 4/27/17 5/25/17 6/7/17

$15.0 $18.0 $12.0 $16.0 $16.0 $18.0 $17.0 $11.0 $14.0 $17.0 $14.0 $17.0 $15.0 $12.0 $11.0

$1,233.0 $503.5 $323.1 $596.6 $1,958.5 $866.0 $838.6 $287.2 $1,240.6 $2,141.9 $662.5 $187.0 $1,921.0 $75.0 $100.2

$150.0 $94.5 $90.0 $96.0 $237.9 $133.2 $146.2 $287.2 $233.3 $221.0 $126.0 $187.0 $225.0 $75.0 $30.8

91.4% 95.2% 109.2% 8.8% 22.6% 62.2% 115.5% 96.8% 5.8% 49.2% 38.9% 37.3% 4.1% 53.5% 16.5%

MARKET CAP AT OFFER ($M)

PAGE | 16



28.6%

3.6%

5.2%

7.0%

7.3%

20.4%

27.9%

Other

Food & Beverage

Manufacturing

Chemicals

Healthcare

Services & Leasing

Computers & Electronics

60%

50%

57% 55%

60%

66%

60% 58%

51%

56%

2008 2009 2010 2011 2012 2013 2014 2015 2016 1H'17

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 5.3x

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H'17

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

LBO LOAN VOLUME BY INDUSTRY2,3 MEDIAN LBO DEBT PERCENTAGES4

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES2,3 MIDDLE MARKET LBO VOLUME BY QUARTER2,3

1H 2017 New Issue LBO Loans Percentage of Total Purchase Price

Median middlemarket LBO loanmultiples in 1H 2017remained in line withthe prior three years at5.3x leverage.

Middle market LBOloan volumeincreased to $1.7billion in 2Q 2017,continuing theupward trend over thelast three quarters.

Technologycompanies have beenthe largest recipientsof LBO loans in 1H2017, representing27.9% of new issuance.

Median LBO debtpercentagesincreased to 56% oftotal purchase price in1H 2017.

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

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B

$1.1B

$1.7B

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

Education TechnologyeCommerce and Retail Engineered Solutions

FinTech

Enterprise Software

Healthcare IT Human Capital Management Infrastructure Software

Internet and Digital Media Legal TechnologyIT Services

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

Supply Chain and Logistics TechnologySecurity SoftwareOnline Marketing and Data Analytics

Membership Mgmt. and Non-Profit Software

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 byacquired by acquired byacquired by

acquired by

acquired by acquired by

acquired bymajority investment

fromacquired 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


acquired byacquired by


majority

recapitalization by

acquired by acquired byrecapitalized byacquired by

acquired by

acquired byacquired bysignificant equity

investment fromacquired by acquired

acquired by

acquired by acquired byacquired by acquired by acquired byacquired byacquired byminority investment

fromacquired byacquired by

strategic investment

fromacquired by acquired by acquired by acquired byacquired by

acquired by

and

acquired by acquired by acquired byacquired by

investment from recapitalized by

acquired by

strategic investment

from

growth equity

investment from

sold its Kline Towers

Division to

acquired by

acquired by

GFI Energy Group

a division of

acquired by

B2C

recapitalized by

acquired byminority investment

from

majority investment

from

acquired by

acquired by

and

majority investment

fromacquired by

acquired byacquired by

minority investment

fromacquired by

acquired by

acquired by

significant equity

investment from


acquired by

and

acquired bygrowth Investment

from

majority investment

fromacquired

a portfolio company of

recapitalized

by management

acquired by acquired byacquired 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.oaktreecapital.com/default.aspx

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



PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE1

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 Cisco IBM SAP Adobe Salesforce HPE

Communication Software Nuance NICE Twilio BroadSoft Synchronoss MobileIron

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

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

Marketing Software Adobe Salesforce Criteo HubSpot Callidus Bazaarv oice ChannelAdv isor

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

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

Energy Software AspenTech AVEVA Silv er Spring PSI

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

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

EdTech / Non-Profit Software Constellation Tyler Tech Blackbaud 2U NIC Instructure K12 Cambium

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

Large-Cap SaaS (cont'd) Paycom Proofpoint Atlassian RealPage ZenDesk Xero HubSpot RingCentral Cornerstone

Small-Cap SaaS (≤ $2Bn Mkt Cap) Alarm.Com CyberArk Ebix Callidus Coupa Q2 Holdings Qualys Mimecast Box Yext

Small-Cap SaaS (cont'd) Fiv e9 Benefitfocus SPS MINDBODY Instructure Hortonworks Rapid7 Workiv a AppFolio Model N

Small-Cap SaaS (cont'd) Apptio Castlight Health Amber Road

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

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

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

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

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

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

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS1

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 $567,810 $595,497 92.6% 32.8% 58.0% 22.7% 1.1% 32.5% 6.0x 5.5x 4.7x 18.5x 28.8x

Microsoft Corporation MSFT 500,826 534,646 95.0% 35.3% 65.4% 0.7% 19.6% 34.2% 5.8x 4.6x 4.3x 16.9x 30.0x

Oracle Corporation ORCL 204,037 207,786 96.8% 22.7% 23.2% 1.8% 4.5% 41.7% 5.4x 5.1x 4.9x 13.0x 22.3x

Cisco Systems, Inc. CSCO 122,606 156,702 90.6% 9.2% 25.0% (1.9%) (0.5%) 31.3% 2.5x 2.5x 2.5x 8.1x 15.7x

IBM Corporation IBM 178,083 144,598 84.2% 1.4% (17.4%) (1.8%) (1.5%) 19.9% 2.2x 2.3x 2.3x 11.3x 12.4x

SAP SE SAP 125,893 128,137 96.3% 39.6% 35.3% 7.0% 10.4% 27.9% 5.1x 4.4x 4.1x 18.2x 32.4x

Adobe Systems Incorporated ADBE 68,217 70,271 96.6% 48.6% 95.0% 22.6% 23.9% 32.4% 10.5x 7.8x 6.7x 32.5x 48.7x

salesforce.com, inc. CRM 60,767 61,901 94.6% 9.6% 47.0% 25.3% 25.3% 7.9% 6.9x 5.0x 4.2x 86.7x NM

Hewlett Packard Enterprise Co. HPE 33,596 27,489 67.3% 22.3% NA (23.4%) (22.6%) 17.0% 0.8x 1.1x 1.1x 5.0x 11.7x

Median $125,893 $144,598 94.6% 22.7% 41.2% 1.8% 4.5% 31.3% 5.4x 4.6x 4.2x 16.9x 25.5x

COMMUNICATION SOFTWARE

Nuance Communications, Inc. NUAN $6,876 $5,020 87.4% 11.5% (5.8%) 1.3% 7.1% 21.7% 3.5x 3.2x NM 16.1x NM

NICE Systems Ltd. NICE 5,083 4,835 97.3% 23.6% 92.7% 19.8% 25.6% 21.7% 4.6x 3.5x 3.3x 21.1x 45.6x

Twilio, Inc. TWLO 2,317 1,815 41.4% (19.5%) NA 58.3% 33.0% NM 7.6x 5.1x 3.6x NM NM

BroadSoft, Inc. BSFT 1,223 1,328 89.4% 5.4% 65.2% 17.3% 18.2% 9.0% 3.5x 2.8x 2.4x 39.2x NM

Synchronoss Technologies, Inc. SNCR 843 765 33.0% (48.2%) (53.5%) (17.6%) 63.4% 11.9% 1.8x 1.0x 0.9x 14.9x NM

MobileIron, Inc. MOBL 454 555 88.2% 95.9% (39.0%) 9.4% 15.2% NM 2.7x 2.2x 2.0x NM NM

Median $1,770 $1,571 87.8% 8.4% (5.8%) 13.3% 21.9% 16.8% 3.5x 3.0x 2.4x 18.6x 45.6x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $204,037 $207,786 96.8% 22.7% 23.2% 1.8% 4.5% 41.7% 5.4x 5.1x 4.9x 13.0x 22.3x

IBM Corporation IBM 178,083 144,598 84.2% 1.4% (17.4%) (1.8%) (1.5%) 19.9% 2.2x 2.3x 2.3x 11.3x 12.4x

SAP SE SAP 125,893 128,137 96.3% 39.6% 35.3% 7.0% 10.4% 27.9% 5.1x 4.4x 4.1x 18.2x 32.4x

Adobe Systems Incorporated ADBE 68,217 70,271 96.6% 48.6% 95.0% 22.6% 23.9% 32.4% 10.5x 7.8x 6.7x 32.5x 48.7x

Automatic Data Processing, Inc. ADP 45,123 45,936 97.1% 11.7% 45.6% 6.7% 6.8% 22.7% 3.7x 3.3x 3.1x 16.3x 26.3x

Intuit Inc. INTU 33,604 34,192 92.8% 19.5% 64.1% 14.2% 8.8% 31.0% 6.6x 5.8x NM 21.3x 37.7x

Amadeus IT Group AMS-ES 28,148 26,201 97.4% 36.8% 42.0% 14.0% 15.8% 38.1% 5.7x 4.8x 4.5x 14.9x 28.7x

Constellation Software Inc. CSU-CA 10,912 11,037 95.5% 35.3% 104.1% 15.3% 16.3% 25.3% 5.0x 4.0x 3.5x 19.6x 48.3x

Sage Group plc SGE-GB 10,110 9,660 90.0% 3.6% 35.0% (2.9%) 9.0% 29.7% 4.7x 4.1x 3.8x 15.7x 31.5x

Open Text Corporation OTEX 10,538 8,320 89.7% 6.8% 28.9% 14.1% 22.4% 33.2% 4.9x 4.0x 3.6x 14.8x 7.8x

Median $39,364 $40,064 95.9% 21.1% 38.6% 10.5% 9.7% 30.4% 5.0x 4.3x 3.8x 16.0x 30.1x

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

EdTech /

Non-Profit

PAGE | 21



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D) 1

HUMAN CAPITAL MANAGEMENT SOFTWARE

Automatic Data Processing, Inc. ADP $45,123 $45,936 97.1% 11.7% 45.6% 6.7% 6.8% 22.7% 3.7x 3.3x 3.1x 16.3x 26.3x

Paychex, Inc. PAYX 20,316 20,448 90.3% (4.4%) 35.1% 6.8% 5.8% 43.4% 6.4x 5.9x 5.9x 14.9x 25.0x

Workday, Inc. WDAY 18,408 12,853 93.5% 31.3% 7.8% 35.5% 32.9% NM 10.8x 7.3x 5.9x NM NM

Ultimate Software Group, Inc. ULTI 6,362 6,272 93.5% 0.3% 47.1% 24.6% 30.3% 7.9% 7.7x 5.4x 4.7x 98.5x 178.4x

Paycom Software, Inc. PAYC 3,958 4,081 93.2% 58.9% 370.1% 38.1% 34.2% 23.1% 11.0x 7.4x NM 47.7x 80.7x

Paylocity Holding Corp. PCTY 2,328 2,317 90.6% 4.1% 107.3% 34.6% 30.6% 8.6% 8.2x 5.6x NM 95.5x NM

Cornerstone Ondemand, Inc. CSOD 1,976 2,032 74.9% (6.0%) (22.6%) 19.3% 19.2% NM 4.5x 3.6x 3.0x NM NM

Benefitfocus, Inc. BNFT 1,145 1,116 79.8% (5.8%) (24.4%) 23.0% 19.5% NM 4.7x 3.6x 3.1x NM NM

Median $5,160 $5,177 91.9% 2.2% 40.3% 23.8% 24.9% 22.7% 7.1x 5.5x 3.9x 47.7x 53.5x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $68,217 $70,271 96.6% 48.6% 95.0% 22.6% 23.9% 32.4% 10.5x 7.8x 6.7x 32.5x 48.7x

salesforce.com, inc. CRM 60,767 61,901 94.6% 9.6% 47.0% 25.3% 25.3% 7.9% 6.9x 5.0x 4.2x 86.7x NM

Criteo SA CRTO 3,073 2,966 87.0% 6.1% 42.2% 32.2% (40.3%) 9.5% 1.6x 2.5x 2.0x 17.1x 38.5x

HubSpot, Inc. HUBS 2,275 2,420 84.3% 52.4% NA 45.1% 37.4% NM 7.7x 5.0x 4.2x NM NM

Callidus Software Inc. CALD 1,376 1,572 97.5% 21.2% 96.0% 19.1% 23.4% NM 6.4x 4.7x NM NM NM

Bazaarv oice, Inc. BV 348 413 79.9% 22.2% (38.6%) 2.4% 1.0% 1.9% 1.7x 1.6x 1.6x 90.4x NM

Channeladv isor Corporation ECOM 239 304 72.6% (20.3%) (57.1%) 10.4% 13.7% NM 2.1x 1.7x NM NM NM

Median $2,275 $2,420 87.0% 21.2% 44.6% 22.6% 23.4% 8.7% 6.4x 4.7x 4.2x 59.6x 43.6x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $21,078 $23,203 93.8% 18.0% 36.7% 7.8% 15.0% 29.6% 6.1x 5.2x 4.8x 20.8x 47.7x

Autodesk, Inc. ADSK 22,046 22,416 88.6% 87.7% 77.9% (14.4%) 12.4% NM 11.0x 8.8x 6.9x NM NM

Hexagon AB Class B HEXA.B-SE 18,556 16,367 92.3% 31.5% 46.2% 3.9% 16.5% 31.1% 5.3x 4.4x 4.2x 17.0x 27.4x

Synopsys, Inc. SNPS 10,608 10,989 95.5% 35.2% 86.9% 12.0% 6.0% 23.3% 4.1x 3.8x NM 17.6x 39.6x

ANSYS, Inc. ANSS 9,755 10,411 93.7% 34.1% 57.6% 6.8% 6.8% 45.1% 9.6x 8.7x 8.4x 21.3x 38.2x

Cadence Design Systems, Inc. CDNS 9,496 9,413 94.2% 38.4% 91.5% 6.1% 7.6% 22.2% 5.1x 4.7x 4.4x 23.2x 42.6x

Trimble Inc. TRMB 9,425 9,092 96.1% 47.5% (3.8%) 4.5% 8.7% 17.1% 3.9x 3.5x 3.2x 23.1x 55.7x

PTC Inc. PTC 6,846 6,391 91.7% 47.0% 41.8% (2.8%) 6.5% 10.3% 6.0x 5.4x 4.8x 57.8x NM

Nemetschek SE NEM-DE 2,854 2,863 92.6% 38.0% 207.1% 19.2% 25.7% 27.3% 7.3x 5.5x 4.9x 26.8x 52.2x

AVEVA Group plc AVV-GB 1,452 1,612 91.9% 11.3% (29.6%) (7.4%) 5.0% 26.1% 5.2x 4.8x 4.6x 19.8x 32.5x

Median $9,625 $9,912 93.2% 36.6% 51.9% 5.3% 8.2% 26.1% 5.6x 5.0x 4.8x 21.3x 41.1x



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Data &

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Data Storage

IT Security

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Communication

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SCM & Logistics

Energy

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SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $3,257 $3,319 70.3% (25.5%) 35.2% 4.4% 5.9% 33.8% 5.4x 5.0x NM 16.1x 26.6x

Descartes Systems Group Inc. DSG-CA 1,790 1,828 94.6% 26.5% 67.7% 10.5% 17.3% 33.0% 8.5x 6.9x 5.9x 25.9x 74.1x

Kinaxis, Inc. KXS-CA 1,487 1,565 90.5% 54.7% 393.4% 23.2% 32.8% 15.6% 12.2x 8.3x 6.8x 78.3x 147.6x

Coupa Software, Inc. COUP 1,234 1,542 70.0% NA NA 50.2% 31.0% NM 8.5x 5.8x 4.6x NM NM

SPS Commerce, Inc. SPSC 950 1,091 84.8% 4.7% (1.2%) 19.4% 18.8% 10.6% 4.8x 3.7x NM 45.1x 142.9x

CommerceHub, Inc. Class A CHUBA-US 785 746 94.4% NA NA 13.3% 18.2% 32.6% 7.6x 6.0x NM 23.4x 55.1x

American Software, Inc. AMSWA 220 279 85.2% (1.6%) (0.1%) (6.7%) 4.3% 14.4% 2.1x 1.9x NM 14.4x 19.1x

Park City Group, Inc. PCYG 236 235 71.2% 34.9% 14.0% 28.4% NA 22.6% 13.5x NM NM 59.5x 69.3x

Amber Road, Inc. AMBR 245 235 70.6% 12.6% (46.1%) 8.5% 16.8% NM 3.3x 2.6x NM NM NM

Median $950 $1,091 84.8% 12.6% 14.0% 13.3% 17.8% 22.6% 7.6x 5.4x 5.9x 25.9x 69.3x

ENERGY SOFTWARE

Aspen Technology, Inc. AZPN $4,242 $4,111 85.7% 37.0% 17.3% 0.0% 4.4% 46.2% 9.0x 8.3x NM 19.4x 29.1x

AVEVA Group plc AVV-GB 1,452 1,612 91.9% 11.3% (29.6%) (7.4%) 5.0% 26.1% 5.2x 4.8x 4.6x 19.8x 32.5x

Silv er Spring Networks, Inc. SSNI 478 600 73.4% (6.9%) (18.3%) (20.8%) 2.1% NM 1.5x 1.4x 1.3x NM NM

PSI Aktiengesellschaft PSAN-DE 207 252 96.1% 14.3% (11.2%) (3.3%) 11.0% 10.9% 1.1x 0.9x 0.9x 9.7x 25.7x

Median $965 $1,106 88.8% 12.8% (14.8%) (5.3%) 4.7% 26.1% 3.3x 3.1x 1.3x 19.4x 29.1x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $31,147 $25,982 96.2% 12.5% 99.8% 4.9% 6.7% 33.9% 5.6x 5.1x 4.8x 16.5x 29.3x

MSCI Inc. MSCI 10,877 9,386 94.7% 34.3% 122.4% 7.5% 10.1% 50.0% 9.3x 8.1x 7.5x 18.5x 34.3x

Jack Henry & Associates, Inc. JKHY 8,124 8,087 97.7% 19.2% 73.5% 7.0% 7.1% 35.7% 5.7x 5.2x NM 16.1x 30.5x

SS&C Technologies Holdings, Inc. SSNC 10,393 7,836 97.7% 36.9% 69.5% 39.9% 8.4% 35.8% 6.6x 6.1x 5.7x 18.6x 45.5x

Square, Inc. SQ 8,080 5,422 94.4% 160.6% NA 28.3% (41.5%) 0.2% 4.5x 6.9x 5.6x NM NM

Oracle Financial Serv ices Software Ltd. 532466-IN 4,271 4,748 90.3% 9.0% 7.9% 5.6% 17.2% 39.2% 6.5x 5.2x 4.9x 16.5x 26.9x

Black Knight Financial Serv ices, Inc. BKFS 8,773 2,862 97.1% 9.0% NA 10.2% 8.9% 43.3% 8.4x 7.4x 6.9x 19.5x 61.4x

BlackLine, Inc. BL 1,742 1,846 92.6% NA NA 46.8% 45.7% NM 12.9x 7.8x 5.9x NM NM

Env estnet, Inc. ENV 1,975 1,749 96.2% 19.8% (18.4%) 32.4% 17.1% 8.9% 3.3x 2.6x 2.3x 36.7x NM

Q2 Holdings, Inc. QTWO 1,425 1,520 91.6% 32.4% 155.2% 35.9% 36.4% NM 8.9x 5.8x 4.6x NM NM

Median $8,102 $5,085 95.5% 19.8% 73.5% 19.3% 9.5% 35.7% 6.6x 5.9x 5.6x 18.5x 32.4x



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Data Storage

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HEALTHCARE IT

Cerner Corporation CERN $22,361 $21,954 95.9% 13.4% 28.5% 7.7% 10.0% 30.5% 4.5x 4.0x 3.6x 14.9x 33.3x

Veev a Systems Inc VEEV 8,643 6,702 90.4% 80.4% 134.9% 32.6% 24.1% 24.0% 14.8x 11.0x 9.4x 61.9x 72.6x

athenahealth, Inc. ATHN 5,794 5,600 94.0% 1.9% 7.8% 14.1% 17.7% 16.3% 5.2x 4.2x 3.6x 32.0x NM

Medidata Solutions, Inc. MDSO 4,428 4,547 95.4% 66.2% 76.4% 20.2% 24.2% 15.0% 9.1x 6.8x 5.8x 60.6x 139.3x

Allscripts Healthcare Solutions, Inc. MDRX 3,977 2,323 84.4% 0.8% (21.1%) 15.8% 9.3% 15.4% 2.5x 2.2x 2.1x 15.9x NM

Ev olent Health Inc Class A EVH 1,436 1,578 92.6% 32.7% NA 112.5% 55.0% NM 4.6x 2.7x 2.1x NM NM

HMS Holdings Corp. HMSY 1,610 1,550 76.9% 4.8% (10.3%) 0.0% 24.0% 21.4% 3.3x 2.5x 2.3x 15.6x 44.9x

Quality Systems, Inc. QSII 1,034 1,072 97.4% 43.5% 5.3% 3.5% 3.4% 15.5% 2.0x 1.9x 1.8x 13.1x 58.8x

Inov alon Holdings, Inc. Class A INOV 1,649 838 66.1% (26.4%) NA (2.9%) 7.3% 18.2% 3.8x 3.4x 3.3x 20.9x 29.8x

Model N, Inc. MODN 381 383 95.9% (0.4%) 19.0% 18.3% 21.7% NM 3.2x 2.5x NM NM NM

Median $2,813 $1,950 93.3% 9.1% 13.4% 15.0% 19.7% 17.3% 4.2x 3.0x 3.3x 18.4x 51.8x

EDTECH / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $10,912 $11,037 95.5% 35.3% 104.1% 15.3% 16.3% 25.3% 5.0x 4.0x 3.5x 19.6x 48.3x

Tyler Technologies, Inc. TYL 6,799 6,556 99.3% 6.0% 86.0% 22.2% 15.5% 24.6% 8.8x 7.2x NM 35.7x 52.4x

Blackbaud, Inc. BLKB 4,294 4,164 93.5% 27.7% 136.2% 12.9% 10.3% 17.8% 5.8x 5.0x 4.8x 32.3x 86.7x

2U, Inc. TWOU 2,083 2,241 97.4% 60.3% 193.1% 36.9% 39.5% NM 9.3x 5.9x NM NM NM

NIC Inc. EGOV 1,123 1,250 72.9% (14.0%) 17.3% 7.4% 6.2% 26.4% 3.5x 3.2x NM 13.2x 22.2x

Instructure, Inc. INST 813 857 98.5% 56.1% NA 48.5% 43.6% NM 6.7x 4.1x 3.2x NM NM

K12 Inc. LRN 527 728 84.7% 43.6% (25.6%) 0.8% 2.9% 10.2% 0.6x 0.6x NM 5.8x 122.3x

Cambium Learning Group, Inc. ABCD 315 230 85.1% 10.4% 140.6% 5.1% NA 28.4% 2.0x NM NM 7.2x 17.6x

Median $1,603 $1,745 94.5% 31.5% 104.1% 14.1% 15.5% 25.0% 5.4x 4.1x 3.5x 16.4x 50.4x



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Data Storage

IT Security

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

salesforce.com, inc. CRM $60,767 $61,901 94.6% 9.6% 47.0% 25.3% 25.3% 7.9% 6.9x 5.0x 4.2x 86.7x NM

Serv iceNow, Inc. NOW 17,514 18,094 96.2% 60.3% 67.4% 36.6% 43.5% NM 11.7x 7.2x 5.6x NM NM

Check Point Software Technologies Ltd. CHKP 16,977 17,887 94.4% 37.3% 62.6% 6.7% 9.4% 49.4% 9.6x 8.5x 8.1x 19.4x 24.2x

Workday, Inc. WDAY 18,408 12,853 93.5% 31.3% 7.8% 35.5% 32.9% NM 10.8x 7.3x 5.9x NM NM

Veev a Systems Inc VEEV 8,643 6,702 90.4% 80.4% 134.9% 32.6% 24.1% 24.0% 14.8x 11.0x 9.4x 61.9x 72.6x

Ultimate Software Group, Inc. ULTI 6,362 6,272 93.5% 0.3% 47.1% 24.6% 30.3% 7.9% 7.7x 5.4x 4.7x 98.5x 178.4x

athenahealth, Inc. ATHN 5,794 5,600 94.0% 1.9% 7.8% 14.1% 17.7% 16.3% 5.2x 4.2x 3.6x 32.0x NM

LogMeIn, Inc. LOGM 4,289 5,508 84.2% 64.6% 122.6% 52.9% 144.4% 18.0% 9.7x 3.7x 3.4x 53.8x NM

Guidewire Software, Inc. GWRE 4,649 5,140 98.3% 11.9% 70.9% 15.9% 25.9% 5.3% 9.8x 7.2x NM 185.6x NM

Medidata Solutions, Inc. MDSO 4,428 4,547 95.4% 66.2% 76.4% 20.2% 24.2% 15.0% 9.1x 6.8x 5.8x 60.6x 139.3x

Paycom Software, Inc. PAYC 3,958 4,081 93.2% 58.9% 370.1% 38.1% 34.2% 23.1% 11.0x 7.4x NM 47.7x 80.7x

Proofpoint, Inc. PFPT 3,723 3,807 92.2% 37.9% 122.1% 42.9% 38.6% NM 9.1x 5.8x 4.9x NM NM

Atlassian Corp. Plc TEAM 7,438 3,158 93.8% 37.3% NA 36.1% 41.2% 0.3% 13.0x 8.1x NM NM NM

RealPage, Inc. RP 2,911 2,993 94.4% 61.7% 59.2% 21.8% 18.1% 15.5% 4.9x 3.9x 3.3x 31.6x 137.0x

Zendesk, Inc. ZEN 2,483 2,772 87.9% 6.2% 61.9% 43.2% 43.4% NM 7.4x 4.6x 3.6x NM NM

Xero Limited XRO-NZ 2,455 2,543 96.6% 42.3% (18.3%) 49.6% 57.6% NM 11.7x 6.4x 5.1x NM NM

HubSpot, Inc. HUBS 2,275 2,420 84.3% 52.4% NA 45.1% 37.4% NM 7.7x 5.0x 4.2x NM NM

RingCentral, Inc. RNG 2,606 2,299 94.6% 87.0% 137.0% 27.6% 35.3% NM 6.4x 4.3x 3.5x NM NM

Cornerstone Ondemand, Inc. CSOD 1,976 2,032 74.9% (6.0%) (22.6%) 19.3% 19.2% NM 4.5x 3.6x 3.0x NM NM

Median $4,428 $4,547 93.8% 37.9% 62.6% 32.6% 32.9% 15.5% 9.1x 5.8x 4.5x 57.2x 108.8x



Large-Cap

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Data &

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Data Storage

IT Security

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

Alarm.com Holdings, Inc. ALRM $1,850 $1,747 97.8% 47.1% NA 24.5% 26.9% 8.2% 6.7x 4.9x 4.2x 81.6x 153.7x

CyberArk Software Ltd. CYBR 1,526 1,744 84.7% 3.3% NA 30.9% 30.3% 18.5% 6.7x 4.7x 4.0x 36.0x 55.7x

Ebix, Inc. EBIX 1,909 1,698 82.8% 12.5% 268.2% 12.3% 21.6% 36.8% 6.2x 4.8x NM 16.9x 17.3x

Callidus Software Inc. CALD 1,376 1,572 97.5% 21.2% 96.0% 19.1% 23.4% NM 6.4x 4.7x NM NM NM

Coupa Software, Inc. COUP 1,234 1,542 70.0% NA NA 50.2% 31.0% NM 8.5x 5.8x 4.6x NM NM

Q2 Holdings, Inc. QTWO 1,425 1,520 91.6% 32.4% 155.2% 35.9% 36.4% NM 8.9x 5.8x 4.6x NM NM

Qualys, Inc. QLYS 1,347 1,517 92.4% 37.5% 57.4% 18.4% 19.6% 23.5% 6.6x 5.1x 4.3x 28.0x 41.7x

Mimecast Limited MIME 1,359 1,498 90.9% 167.6% NA 31.5% 38.1% 0.8% 7.3x 4.8x 4.0x NM NM

Box, Inc. Class A BOX 2,296 1,466 87.2% 76.4% NA 30.1% 30.0% NM 5.4x 3.8x 3.1x NM NM

Yext, Inc. YEXT-US 403 1,195 87.8% NA NA 38.5% 54.8% NM 3.2x 1.8x 1.4x NM NM

Fiv e9, Inc. FIVN 1,140 1,167 86.4% 80.1% 216.5% 25.2% 22.6% 1.0% 6.7x 5.0x 4.4x NM NM

Benefitfocus, Inc. BNFT 1,145 1,116 79.8% (5.8%) (24.4%) 23.0% 19.5% NM 4.7x 3.6x 3.1x NM NM

SPS Commerce, Inc. SPSC 950 1,091 84.8% 4.7% (1.2%) 19.4% 18.8% 10.6% 4.8x 3.7x NM 45.1x 142.9x

MINDBODY, Inc. MB 1,028 1,083 92.4% 70.4% NA 34.3% 36.3% NM 6.9x 4.5x 3.6x NM NM

Instructure, Inc. INST 813 857 98.5% 56.1% NA 48.5% 43.6% NM 6.7x 4.1x 3.2x NM NM

Hortonworks, Inc. HDP 720 820 92.3% 21.4% NA 41.7% 36.1% NM 3.6x 2.4x 2.0x NM NM

Rapid7 Inc. RPD 635 734 87.9% 34.7% NA 37.9% 28.9% NM 3.8x 2.7x 2.4x NM NM

Workiv a, Inc. WK 749 589 95.8% 41.3% NA 20.3% 18.3% NM 4.0x 3.2x 2.8x NM NM

AppFolio Inc APPF 1,109 402 92.9% 126.1% NA 39.1% 36.6% 5.7% 9.7x 6.4x 5.1x 168.9x NM

Model N, Inc. MODN 381 383 95.9% (0.4%) 19.0% 18.3% 21.7% NM 3.2x 2.5x NM NM NM

Apptio, Inc. Class A APTI 568 381 71.9% NA NA 23.6% 16.3% NM 3.4x 2.7x 2.5x NM NM

Castlight Health, Inc. CSLT 332 316 75.5% 4.8% (72.8%) 30.0% 41.4% NM 3.1x 2.0x 1.6x NM NM

Amber Road, Inc. AMBR 245 235 70.6% 12.6% (46.1%) 8.5% 16.8% NM 3.3x 2.6x NM NM NM

Median $1,109 $1,116 87.9% 33.6% 38.2% 30.0% 28.9% 9.4% 6.2x 4.1x 3.4x 40.5x 55.7x



Large-Cap

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IT Security

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DATA & ANALYTICS

Verisk Analytics Inc VRSK $16,478 $13,951 96.5% 4.1% 38.5% (4.6%) 6.9% 48.1% 8.2x 7.5x 7.0x 17.1x 31.0x

Splunk Inc. SPLK 6,793 7,913 82.6% 5.6% 1.6% 38.1% 31.8% NM 6.7x 4.6x 3.6x NM NM

Pegasystems Inc. PEGA 4,654 4,524 90.4% 117.6% 171.8% 12.3% 15.7% 10.2% 5.9x 4.8x 4.1x 57.2x 100.5x

Teradata Corporation TDC 3,245 3,863 88.6% 17.7% (26.8%) (9.0%) (8.0%) 20.3% 1.4x 1.6x 1.6x 7.1x 22.9x

Tableau Software, Inc. DATA 3,816 3,694 91.8% 26.0% (14.6%) 23.0% 6.7% NM 4.5x 4.0x 3.4x NM NM

Verint Systems Inc. VRNT 2,961 2,563 91.5% 23.5% (17.4%) (2.6%) 8.4% 14.4% 2.7x 2.5x 2.3x 19.1x NM

MicroStrategy Incorporated MSTR 1,604 1,804 92.7% 9.7% 34.9% (2.2%) 2.9% 24.1% 3.1x 3.0x NM 13.0x 19.7x

Talend SA TLND 905 1,000 93.5% NA NA 37.9% 44.7% NM 7.9x 4.8x 3.8x NM NM

PROS Holdings, Inc. PRO 890 864 90.2% 57.8% 1.7% (4.3%) 12.0% NM 5.7x 4.8x 4.1x NM NM

Inov alon Holdings, Inc. INOV 1,649 838 66.1% (26.4%) NA (2.9%) 7.3% 18.2% 3.8x 3.4x 3.3x 20.9x 29.8x

Median $3,103 $3,129 91.0% 17.7% 1.7% (2.4%) 7.9% 19.3% 5.1x 4.3x 3.6x 18.1x 29.8x

IT OPERATIONS MANAGEMENT

Serv iceNow, Inc. NOW $17,514 $18,094 96.2% 60.3% 67.4% 36.6% 43.5% NM 11.7x 7.2x 5.6x NM NM

Red Hat, Inc. RHT 16,654 17,127 95.7% 32.9% 71.7% 17.8% 16.6% 17.2% 6.6x 5.3x 4.7x 38.5x 64.5x

CA, Inc. CA 14,497 14,555 94.6% 5.3% 17.9% 0.3% 2.9% 36.8% 3.6x 3.5x 3.3x 9.8x 19.0x

Citrix Systems, Inc. CTXS 12,705 12,084 83.4% 25.4% 59.0% (2.6%) (11.4%) 29.6% 3.9x 4.3x 4.1x 13.2x 23.1x

Arista Networks, Inc. ANET 10,630 10,808 92.0% 132.9% 97.3% 35.7% 33.8% 23.5% 8.7x 5.9x 5.1x 37.0x 46.8x

VMware, Inc. VMW 29,156 9,498 89.3% 53.0% (10.9%) 7.7% 7.7% 25.9% 4.0x 3.7x 3.5x 15.5x 7.6x

F5 Networks, Inc. FFIV 7,269 8,242 85.2% 11.9% 13.5% 5.0% 7.2% 31.0% 3.5x 3.2x 3.0x 11.4x 21.2x

Micro Focus International plc MCRO-GB 8,627 6,775 85.2% 36.8% 93.6% 7.7% 5.3% 44.3% 6.5x 6.2x 6.2x 14.7x 40.8x

Software AG SOW-DE 3,221 3,342 89.4% 28.9% 20.1% (2.1%) 9.6% 29.9% 3.4x 3.0x 2.9x 11.3x 22.0x

NetScout Systems, Inc. NTCT 3,061 3,162 89.7% 55.1% (23.1%) 22.8% 2.4% 19.3% 2.6x 2.5x NM 13.5x 95.0x

New Relic, Inc. NEWR 2,037 2,321 95.7% 47.7% NA 45.3% 39.2% NM 7.7x 4.9x 4.1x NM NM

Progress Software Corporation PRGS 1,385 1,496 95.5% 12.9% 27.3% 2.8% (2.2%) 31.7% 3.4x 3.5x NM 10.8x NM

Radware Ltd. RDWR 594 763 96.4% 56.9% 3.9% (5.1%) 7.0% NM 3.0x 2.7x NM NM NM

Apptio, Inc. Class A APTI 568 381 71.9% NA NA 23.6% 16.3% NM 3.4x 2.7x 2.5x NM NM

Median $7,948 $7,509 90.8% 36.8% 23.7% 7.7% 7.5% 29.7% 3.7x 3.6x 4.1x 13.3x 23.1x



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

EdTech /

Non-Profit

PAGE | 27






DATA STORAGE

NetApp, Inc. NTAP $8,505 $10,937 93.3% 63.6% 9.9% (0.6%) 2.5% 16.8% 1.5x 1.5x 1.5x 9.2x 21.5x

Iron Mountain, Inc. IRM 15,197 9,067 82.7% (13.8%) (2.9%) 22.9% 4.6% 21.3% 4.1x 3.9x 3.7x 19.3x 95.5x

CommVault Systems, Inc. CVLT 2,189 2,544 95.9% 31.0% 13.4% 9.3% 10.1% 1.5% 3.4x 2.9x 2.6x NM NM

Nutanix, Inc. Class A NTNX 2,557 1,620 43.2% NA NA 79.5% 50.0% NM 3.8x 2.2x 1.7x NM NM

Box, Inc. BOX 2,296 1,466 87.2% 76.4% NA 30.1% 30.0% NM 5.4x 3.8x 3.1x NM NM

Barracuda Networks, Inc. CUDA 1,035 1,216 86.1% 51.7% (26.0%) 10.1% 9.9% 10.8% 2.9x 2.6x 2.5x 27.2x 118.8x

Pure Storage, Inc. Class A PSTG 2,112 1,209 85.0% 18.0% NA 52.2% 45.5% NM 2.7x 1.7x 1.3x NM NM

Carbonite, Inc. CARB 609 590 87.3% 120.7% 73.7% 42.4% 17.7% 7.1% 2.8x 2.3x NM 39.6x 72.1x

Median $2,242 $1,543 86.6% 51.7% 9.9% 26.5% 13.9% 10.8% 3.1x 2.4x 2.5x 23.3x 83.8x

IT SECURITY

Cisco Systems, Inc. CSCO $122,606 $156,702 90.6% 9.2% 25.0% (1.9%) (0.5%) 31.3% 2.5x 2.5x 2.5x 8.1x 15.7x

Check Point Software Ltd. CHKP 16,977 17,887 94.4% 37.3% 62.6% 6.7% 9.4% 49.4% 9.6x 8.5x 8.1x 19.4x 24.2x

Symantec Corporation SYMC 21,389 17,183 85.1% 37.6% 23.6% 6.6% 30.1% 20.5% 5.3x 4.0x 3.8x 26.0x NM

Palo Alto Networks, Inc. PANW 11,416 12,381 81.3% 9.9% 63.8% 31.1% 27.0% NM 6.9x 4.9x 4.2x NM NM

VeriSign, Inc. VRSN 11,733 9,503 98.6% 8.3% 92.4% 6.1% 2.2% 65.4% 10.2x 9.9x 9.5x 15.6x 21.1x

Trend Micro Incorporated 4704-JP 6,004 7,229 96.5% 45.0% 56.2% 22.2% 5.6% 34.2% 4.7x 4.4x 4.2x 13.9x 32.1x

Fortinet, Inc. FTNT 5,556 6,659 91.7% 19.9% 50.6% 23.2% 20.1% 8.3% 4.2x 3.2x 2.9x 50.6x 143.7x

Gemalto N.V. GTO-NL 5,437 5,420 83.1% (1.5%) (42.7%) 1.5% 5.3% 19.9% 1.5x 1.4x 1.4x 7.8x 26.4x

Cheetah Mobile, Inc. CMCM 1,349 4,426 78.2% 13.5% (49.3%) 6.0% 18.3% 1.4% 2.0x 1.5x 1.3x 136.2x NM

Proofpoint, Inc. PFPT 3,723 3,807 92.2% 37.9% 122.1% 42.9% 38.6% NM 9.1x 5.8x 4.9x NM NM

FireEye, Inc. FEYE 2,515 2,733 83.1% (7.0%) (62.7%) 8.2% 6.1% NM 3.5x 3.2x 3.0x NM NM

CyberArk Software Ltd. CYBR 1,526 1,744 84.7% 3.3% NA 30.9% 30.3% 18.5% 6.7x 4.7x 4.0x 36.0x 55.7x

Qualys, Inc. QLYS 1,347 1,517 92.4% 37.5% 57.4% 18.4% 19.6% 23.5% 6.6x 5.1x 4.3x 28.0x 41.7x

Mimecast Limited MIME 1,359 1,498 90.9% 167.6% NA 31.5% 38.1% 0.8% 7.3x 4.8x 4.0x NM NM

Varonis Systems, Inc. VRNS 884 1,012 98.4% 55.3% 23.1% 29.5% 26.4% NM 5.1x 3.7x 3.2x NM NM

Rapid7 Inc. RPD 635 734 87.9% 34.7% NA 37.9% 28.9% NM 3.8x 2.7x 2.4x NM NM

SecureWorks Corp. Class A SCWX 650 100 58.6% (34.3%) NA 21.7% 8.9% NM 1.5x 1.3x 1.1x NM NM

Median $3,723 $4,426 90.6% 19.9% 50.6% 21.7% 19.6% 20.5% 5.1x 4.0x 3.8x 22.7x 29.2x

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

EdTech /

Non-Profit

Healthcare & Life Sciences

IndustrialsEnergy, Power & Infrastructure

Industrials

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4. PitchBook.

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