technology, media & telecom update december 2012 · 2012-12-18 · kpcb’s mary meeker has...

Highlighted M&A Transaction…………..... 3

Technology, Media & Telecom Update December 2012

Note: All market data in the following materials is as of

November 30, 2012.

U.S. TMT M&A Overview………………………………………………………………………………………. 4

U.S. TMT Initial Public Offerings……………………………………………………………………………….. 5

TMT Public Market Overview…………………………………………………………………………………… 6

Public Market Trading Statistics by Vertical

Bellwethers………………………………………………………………………………………………. 7

Data and Information Services…………………………………………………………………………... 7

Internet and Digital Media……………………………………………………………………………….. 8

IT and Tech-Enabled Services…………………………………………………………………………… 9

Software – Application…………………………………………………………………………………. 10

Software – Infrastructure……………………………………………………………………………….. 11

Software as a Service (“SaaS”) ………………………………………………………………………… 12

Selected HW&Co. TMT Transactions………………………………………………………………………….. 13

Contents

For more information, please visit http://www.harriswilliams.com/industries/tmt

Harris Williams & Co.’s Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies through dedicated TMT professionals. Below is a list of our senior TMT contacts.

+1 (617) 482-7501 +1 (415) 217-3411 +44 20 7518 8901

Boston San Francisco London

TMT Deal Contact Sam Hendler, Director

[email protected]

• HW&Co. represented Milliman Care Guidelines in its sale to Hearst Corporation.

• Milliman Care Guidelines is a provider of evidence-based clinical guidelines software for health insurance companies and hospitals.

• The acquisition illustrates the strong, continued demand from large diversified technology and media companies for leading edge HCIT businesses, particularly those with differentiated content and SaaS delivery solutions.

• HCIT continues to be a very active sector for HW&Co.

a subsidiary of

has been acquired by

Monthly Spotlight

• E&Y Releases Global Technology M&A Update • HIEs: Significant Market Growth Ahead • IDC Predicts “Third Platforms” to Dominate in 2013 • Mary Meeker’s Annual State of the Internet • Cyber Monday Sales Soar

• NCR acquires Retalix • Cisco acquires Meraki • Thoma Bravo acquires Mediware Information Systems • Priceline acquires Kayak Software • RedPrairie acquires JDA Software

Group Overview

Jeff Bistrong Garin Arevian Sam Hendler Derek Swaim Tyler Dewing

Mike Wilkins Eric Reimers Laura Boyd

Thierry Monjauze Red Norrie

Francois Morin

What We’ve Been Reading………………… 2

http://www.harriswilliams.com/industries/tmt

mailto:[email protected]













According to a recent study by Ernst & Young on the technology M&A landscape, cloud / software-as-a-service deals represented the largest segment by volume and value in 3Q12, with mobile / e-payments and HCIT deals also showing significant surges in deal value. Acquired value in the United States grew in 3Q12 and the U.S. captured 9 of the top 10 global technology deals. Read the full article here.

Ernst & Young Releases Global Technology M&A Update: July – September 2012 TMC News 11/15/2012

What We’ve Been Reading

According to Frost and Sullivan, U.S. healthcare providers will significantly increase their participation in health information exchanges (“HIEs”) over the next two years, driven by provider consolidation, increased adoption of electronic health records, and cost-reduction and operational efficiency initiatives. Additional factors driving growth include the upholding of the Affordable Care Act by the Supreme Court, Barack Obama’s re-election, Stage 2 Meaningful Use requirement for more HIE participation, and technical standards for interoperability. Read the full article here.

Health Information Exchange: Significant Market Growth Ahead FierceHealthIT 11/27/2012

IDC predicts that the IT industry’s transition to “third-platform” technologies such as mobile computing, cloud services, social networking, and big data analytics, will drive approximately 90% of IT spending growth in 2013. While IT spending is expected to exceed $2.1 trillion in 2013, up 5.7% from 2012, smart mobile devices are expected to account for 57% of the industry’s overall growth. In addition, strong spending growth in large emerging markets will have a key impact in reshaping the global IT marketplace, as domestic firms stand to greatly benefit from the strong projected spending growth. Read the full article here.

IDC Predicts “Third-Platforms” Will Dominate IT Spending in 2013 IDC 11/29/2012

“Cyber Monday” recorded a record breaking $1.46 billion of online sales, an increase of 17% over 2011. Notably, mobile devices accounted for more than 18% of retailer website visits on Cyber Monday, an increase of almost 70% over 2011. The convenience offered by tablets and smartphones is boosting sales for large online retailers as shoppers are transitioning from online researchers to online buyers with mobile sales almost doubling compared to 2011. Read the full article here.

Cyber Monday Sales Soar 17% as Amazon, EBay Buyers Go Mobile Bloomberg 11/28/2012

2

KPCB’s Mary Meeker has released her latest edition of her Internet trends presentation entitled “2012 Internet Trends Year-End Update.” According to Meeker’s analysis, there are now 2.4 billion Internet users worldwide, growing at 8% annually. In addition, mobile devices now account for 13% of global Internet traffic, up from 4% in 2010. Overall, Meeker believes the rapid growth of tablet and smartphone penetration amongst Internet users will lead to a massive opportunity for companies that sell into these markets. Read the full article here.

Mary Meeker Releases Annual State of the Internet Report VentureBeat 12/3/2012

http://www.tmcnet.com/usubmit/2012/11/15/6726312.htm

http://www.fiercehealthit.com/story/significant-hie-market-growth-forecasted/2012-11-27

http://www.idc.com/getdoc.jsp?containerId=prUS23814112

http://www.bloomberg.com/news/2012-11-28/online-cyber-monday-sales-soar-17-as-buyers-turn-mobile.html

http://venturebeat.com/2012/12/03/mary-meeker-releases-stunning-data-on-the-state-of-the-internet/

Highlighted Recent TMT M&A Transactions

3

• Kayak Software is a provider of online travel services. • The acquisition solidifies Priceline.com as the world’s largest online travel agency

and bolsters the company’s presence in the U.S. and airfare markets.

Priceline.com Acquires Kayak Software

Ent. Value: $1,630 mm Revenue Multiple: 5.8x EBITDA Multiple: 30.1x

11/8/2012

• Retalix serves over 70,000 retail locations worldwide with Point Of Sale (POS) and in-store management software and services.

• The acquisition will strengthen NCR’s position in the retail industry and complement the July 2011 $1.1 billion acquisition of POS solution provider Radiant Systems.

NCR Acquires Retalix

Ent. Value: $605 mm Revenue Multiple: 2.3x EBITDA Multiple: 28.3x

11/28/2012

• Mediware Information Systems is a provider of clinical and performance management information software systems for the healthcare industry.

• The acquisition expands Thoma Bravo’s stake in the rapidly growing healthcare sector and highlights private equity’s interest in businesses that help control the costs of healthcare.

Thoma Bravo Acquires Mediware Information Systems

Ent. Value: $197 MM Revenue Multiple: 2.4x EBITDA Multiple: 11.4x

11/9/2012

• Meraki provides cloud-based wireless network infrastructures to midmarket customers.

• The acquisition fits with Cisco’s strategy of bolstering its small and medium sized business offerings as well as shifting to more software-centric solutions to simplify network management and help customers empower mobile workforces.

Cisco Systems Acquires Meraki

Ent. Value: $1,200 mm Revenue Multiple: NA EBITDA Multiple: NA

11/18/2012

• JDA Software is a provider of enterprise software solutions for planning, optimization, and execution of supply chain, merchandising, and pricing processes.

• RedPrairie’s flagship offering includes supply chain execution solutions such as warehouse management, which will complement JDA’s leadership in supply chain planning.

RedPrairie Acquires JDA Software

Ent. Value: $1,804 mm Revenue Multiple: 2.7x EBITDA Multiple: 10.7x

11/1/2012

Summary M&A

Statistics

LTM M&A Volume and Revenue Multiples LTM M&A Volume by Segment

U.S. TMT M&A Overview

Note: Includes announced or closed transactions over the last three calendar years.

Last Three Years M&A Transaction Volume

Private Equity Activity by Segment

4

Note: Includes announced or closed transactions over the last twelve months.

Note: Includes all announced or closed transactions over the last four quarters.

2.3 x

3.0 x

1.9 x

2.4 x

2.8 x

3.5 x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

0

100

200

300

400

500

600

700

800

900

Data and Information

Services

Internet and Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

LTM

Revenue M

ultipleTran

sact

ion

Volu

me

M&A Transaction Volume Median LTM Revenue Multiple


Services5%


38%


16%


29%


9%

Software –SaaS6%

All Acquisitions Private Equity Acquisitions

Segment Q1'12 Q2'12 Q3'12 Q4'12 Total Q1'12 Q2'12 Q3'12 Q4'12 Total

Data and Information Services 29 35 27 15 106 3% 17% -- 13% 8%

Internet and Digital Media 203 218 218 146 785 2% 7% 6% 5% 5%

IT and Tech-Enabled Services 95 70 89 70 324 5% 1% 4% 7% 5%

Software - Application 166 174 171 91 602 7% 8% 7% 5% 7%

Software - Infrastructure 33 35 34 29 131 3% -- -- 7% 2%

Software - SaaS 37 32 35 22 126 5% 13% 9% -- 7%

Total 563 564 574 373 2,074 4% 7% 5% 6% 6%

0

100

200

300

400

500

600

700

800

900

Data and Information Services





Software –SaaS

Tra

nsac

tion

Vol

ume

2010 M&A Transaction Volume 2011 M&A Transaction Volume 2012 YTD M&A Transaction Volume

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 YTD

Recent IPO Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last twelve months.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

U.S. TMT Initial Public Offerings

Note: Includes major U.S. exchanges and transactions for companies located in the U.S.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 YTD

5

($ in millions) IPO Details Financials at IPO (LTM) Trading MultiplesGross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA10/11/12 Workday, Inc. 637.0$ 0.0% 78.9% 199.1$ NM 127.9% 41.2x NM 10/10/12 Shutterstock, Inc. 76.5 0.0% 50.6% 155.2 17.6% 87.0% 5.6x 31.7x10/09/12 Ambarella Corporation 36.0 18.3% 45.2% 107.2 16.5% 13.2% 1.5x 9.1x10/04/12 Fleetmatics Group Limited 132.8 20.0% 28.1% 117.5 16.9% 81.6% 7.7x 45.6x10/02/12 LifeLock, Inc. 141.3 1.3% (6.8%) 250.6 8.0% 54.4% 4.0x 49.9x09/27/12 Qualys, Inc. 90.9 11.6% 11.5% 83.4 8.3% 27.5% 4.7x 56.8x09/19/12 Trulia, Inc. 102.0 16.7% 4.6% 51.3 NM 159.1% 9.5x NM 08/01/12 Eloqua 92.0 12.5% 57.0% 84.7 1.1% 42.3% 7.3x NM 07/25/12 E2open, Inc. 70.3 20.0% (5.9%) 63.9 1.6% 15.1% 5.6x NM 07/19/12 Kayak Software Corporation 91.0 0.0% 56.5% 265.4 19.4% 32.9% 6.6x 34.1x07/19/12 Palo Alto Networks, Inc. 260.4 24.4% 29.6% 219.7 3.6% 350.4% 16.5x NM 06/28/12 ServiceNow, Inc. 209.7 22.7% 81.3% 169.0 NM 290.0% 24.0x NM 06/28/12 Exa Corporation 62.5 33.3% 24.3% 46.9 11.8% 16.3% 3.4x 28.9x05/17/12 Facebook, Inc. 16,006.9 57.3% (26.3%) 4,038.0 52.8% 104.6% 14.2x 27.0x05/09/12 Audience, Inc. 89.6 5.1% (49.1%) 100.2 3.4% 109.2% 1.6x 46.6x04/24/12 Envivio, Inc. 69.8 16.2% (82.0%) 50.6 4.4% 68.8% 0.3x 7.8x04/19/12 Proofpoint, Inc. 82.3 18.9% (15.4%) 87.7 NM 35.3% 5.2x NM 04/19/12 Infoblox Inc. 120.0 23.4% 18.5% 151.9 NM 48.7% 5.5x NM 04/18/12 Splunk, Inc. 229.5 7.4% 77.6% 121.0 NM 82.6% 24.3x NM 03/28/12 Millennial Media Inc. 132.6 9.8% 5.8% 103.7 0.1% 116.8% 11.0x NM 03/27/12 Vocera Communications, Inc. 93.6 14.5% 53.7% 79.5 1.5% 40.0% 8.0x NM 03/21/12 ExactTarget, Inc. 161.5 0.0% 8.5% 207.5 NM 54.5% 7.6x NM 03/21/12 Vantiv, Inc. 500.0 0.0% 27.5% 1,622.4 26.8% 39.6% 3.0x 11.2x03/14/12 M/A-Com Technology Solutions Holdings 114.0 7.4% (25.7%) 308.4 18.6% 18.5% 2.6x 13.9x03/14/12 Demandware, Inc. 88.0 0.0% 71.2% 56.5 3.8% 54.1% 15.7x NM 03/01/12 Yelp, Inc. 107.3 0.7% 26.1% 83.3 NM 74.5% 14.1x NM 02/23/12 Bazaarvoice, Inc. 113.8 5.1% (18.5%) 94.0 NM 143.2% 7.3x NM 02/17/12 Brightcove, Inc. 55.0 0.0% (11.6%) 63.6 NM 45.4% 4.1x NM 02/09/12 Synacor, Inc. 34.1 20.0% 27.6% 91.1 7.4% 37.5% 2.1x 29.0x02/01/12 Greenway Medical Technologies, Inc. 66.7 19.2% 94.4% 105.8 5.1% 63.6% 6.6x NM 02/01/12 AVG Technologies N.V. 128.0 50.0% (13.9%) 272.4 30.7% 25.4% 4.0x 13.0x01/24/12 Guidewire Software, Inc. 115.1 0.0% 130.0% 190.2 13.6% 31.4% 8.7x 64.1x12/15/11 Zynga, Inc. 1,000.0 0.0% (29.5%) 1,024.6 18.6% 743.5% 1.0x 5.3x12/12/11 Jive Software, Inc. 161.3 25.1% 20.5% 69.4 NM 131.5% 12.8x NM

Median 110.5$ 12.0% 22.4% 106.5$ 8.3% 54.5% 6.6x 29.0x

Comparable Trading

Summary

Valuation Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TMT Public Market Overview

6

LTM Revenue LTM EBITDAIndustry Segment 1 Month 12 Month Growth Margin LTM 2012P 2013P LTM 2012P 2013P

Bellwethers 2.1% 22.4% 9.4% 31.3% 2.2x 2.2x 2.0x 8.4x 7.4x 6.8x

Data and Information Services 2.3% 36.4% 10.2% 28.4% 2.8x 2.7x 2.5x 10.3x 9.3x 8.8xDiversified Information Services 2.2% 33.6% 9.2% 28.6% 3.0x 2.7x 2.6x 9.8x 9.7x 8.8xFinancial Data and Media 1.5% 16.8% 10.9% 38.1% 4.3x 4.2x 4.0x 10.2x 9.4x 9.0xLender/Mortgage/Real Estate Data and Processing 4.0% 69.2% 10.4% 19.7% 2.3x 2.3x 2.2x 10.5x 7.6x 7.3xMarket Data and Research 1.7% 37.0% 15.6% 16.8% 1.9x 1.8x 1.7x 12.4x 10.4x 9.6x

Internet & Digital Media (1.3% ) 22.2% 21.8% 20.6% 2.3x 2.2x 2.0x 9.6x 8.4x 7.8xAdvertising & Marketing (2.9%) 16.6% 43.1% 28.1% 4.0x 3.6x 2.8x 9.7x 8.5x 8.9xContent Delivery & Management (0.4%) 6.8% 17.9% 20.8% 1.9x 1.9x 1.8x 9.6x 7.2x 6.8xContent & Services (1.4%) 22.5% 25.1% 14.1% 2.7x 2.6x 2.3x 9.8x 7.7x 8.1xDiversified Media 0.9% 45.1% 1.7% 23.4% 1.9x 1.9x 1.8x 8.0x 7.8x 7.3xe-Commerce (1.7%) 12.6% 23.3% 18.4% 2.6x 2.4x 2.0x 15.5x 12.1x 11.2x

IT and Tech-Enabled Services 3.3% 25.4% 13.0% 15.5% 1.6x 1.5x 1.1x 9.2x 9.0x 7.4xGovernment IT & BPO 6.5% 22.2% 3.1% 9.8% 0.5x 0.5x 0.5x 11.1x 5.3x 5.3xIT Services 5.0% 22.8% 9.2% 10.6% 0.6x 0.6x 0.6x 5.9x 5.6x 5.0xOffshore BPOs 0.8% 20.7% 20.2% 19.4% 2.1x 2.1x 1.8x 10.0x 9.7x 9.5xOnshore BPOs 2.8% 41.1% 14.1% 14.2% 0.8x 1.0x 1.0x 5.4x 4.6x 4.2x

Software – Application (0.8% ) 19.9% 14.9% 20.2% 3.5x 3.2x 2.9x 13.4x 10.7x 9.4xCustomer Engagement/Call Center Management (10.7%) 0.6% 10.9% 15.9% 2.2x 2.1x 1.9x 13.6x 8.1x 7.4xEnterprise Software 1.5% 19.7% 9.2% 26.0% 3.2x 3.2x 3.1x 10.2x 10.0x 9.4xHuman Capital Management (0.8%) 64.3% 47.0% 11.5% 10.5x 9.5x 7.0x 67.4x 34.5x 27.4xProduct Lifecycle Management/Technical Design 0.9% 29.9% 11.3% 20.7% 2.5x 2.5x 2.4x 12.0x 9.0x 8.1xVertically Focused - Financial Technology 3.4% 27.9% 14.4% 19.5% 3.5x 3.2x 2.9x 15.2x 11.0x 9.7xVertically Focused - Healthcare IT 1.7% 6.9% 21.4% 24.7% 3.6x 3.4x 3.0x 14.5x 12.7x 10.8xVertically Focused - Public Sector (10.0%) 0.8% 16.6% 19.4% 2.9x 2.7x 2.4x 17.9x 14.7x 12.0x

Software – Infrastructure 1.6% 5.2% 10.1% 22.2% 2.6x 2.6x 2.4x 9.3x 8.3x 7.9xEnterprise IT Management (0.7%) 0.6% 6.7% 23.0% 2.4x 2.4x 2.3x 12.9x 10.2x 8.3xEnterprise Storage 5.7% 11.4% 13.1% 18.3% 2.9x 2.8x 2.4x 8.8x 9.8x 8.8xSecurity 1.8% 6.9% 10.1% 26.9% 4.7x 4.6x 4.0x 8.2x 7.7x 7.3x

Software – SaaS (2.0% ) 32.7% 27.1% 14.1% 6.1x 5.8x 4.8x 29.7x 21.2x 16.9x

NASDAQ (4.5% ) 8.7%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

0%

20%

40%

60%

80%

100%

120%

Data and Information Services

Internet & Digital Media




Software –SaaS

7

($ in millions) Stock Price CY 2012P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P

Diversified Information Services

Thomson Reuters Corporation 22,753.7$ 27.53$ 90.4% (6.6%) 5.8% 2.1x 2.2x 9.6x 8.0xExperian plc 16,406.7 16.62 94.6% NA NA 4.0x 3.9x 12.0x 11.3xReed Elsevier plc 12,217.1 10.30 95.7% NA NA NA 1.0x NA 3.3xVerisk Analytics, Inc. 8,313.2 49.84 95.6% 14.7% 19.6% 6.6x 6.4x 14.9x 14.1xAlliance Data Systems Corporation 7,104.0 142.49 97.8% 13.8% 26.1% 4.0x 3.9x 13.3x 12.0xEquifax Inc. 6,128.2 51.24 98.8% 10.1% 10.4% 3.2x 3.1x 9.9x 9.7xIHS Inc. 6,075.4 92.14 77.5% 15.3% 79.8% 4.6x 4.4x 22.0x 14.0xWolters Kluwer NV 5,693.0 19.23 97.3% 6.2% 5.9% 1.9x 1.8x 7.7x 7.3xInforma plc 4,050.9 6.74 92.7% (1.3%) 1.5% 2.7x 2.7x 9.6x 9.3xUBM plc 2,878.2 11.80 98.7% 3.7% 5.3% 2.4x 2.3x 10.6x 10.3xNeuStar, Inc. 2,665.0 40.20 97.3% 34.0% 50.5% 3.8x 3.6x 8.9x 7.6xFair Isaac Corporation 1,495.1 42.82 89.5% 8.7% 3.2% 2.8x 2.7x 9.7x 9.9xAcxiom Corporation 1,319.0 17.69 93.2% (1.6%) 2.0% 1.3x 1.3x 6.1x 5.9x

Median 6,075.4$ 95.6% 8.7% 5.9% 3.0x 2.7x 9.8x 9.7x

Financial Data and Media

Moody's Corporation 10,828.5$ 48.58$ 98.1% 16.1% 17.8% 4.4x 4.2x 10.2x 9.6xFactSet Research Systems Inc. 4,089.2 92.39 84.6% 9.6% 14.1% 4.8x 4.7x 12.7x 12.1xMSCI Inc. 3,540.8 29.00 76.0% 4.9% 5.1% 4.3x 4.2x 9.6x 9.2xDun & Bradstreet Corporation 3,528.7 79.18 91.5% (5.0%) 7.6% 2.6x 2.6x 8.4x 7.8xMorningstar Inc. 3,008.4 63.83 98.6% NA NA 4.1x NA 14.2x NA

Median 3,540.8$ 91.5% 7.3% 10.8% 4.3x 4.2x 10.2x 9.4x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 10,584.5$ 36.10$ 99.1% 1.2% 5.6% 2.5x 2.5x 8.6x 8.4xCoreLogic, Inc. 2,518.7 25.84 87.6% 14.8% 143.5% 2.0x 2.0x 10.3x 6.9xCoStar Group Inc. 2,454.7 86.86 97.6% 38.3% 61.0% 7.8x 7.1x 39.5x 30.6xLender Processing Services, Inc. 2,108.6 24.85 80.5% (2.2%) 29.7% 1.4x 1.4x 10.8x 5.6x

Median 2,486.7$ 92.6% 8.0% 45.4% 2.3x 2.3x 10.5x 7.6x

Market Data and Research

Gartner Inc. 4,484.2$ 47.88$ 93.1% 10.3% 28.9% 2.8x 2.7x 17.2x 14.4xAegis Group plc 4,331.1 3.77 98.6% 12.5% 21.7% 2.5x 2.3x 14.3x 11.8xIpsos SA 1,562.8 34.49 93.3% 34.7% 13.9% 1.2x 1.0x 10.5x 9.0xForrester Research Inc. 624.5 28.01 77.5% 3.0% (3.0%) 1.3x 1.3x 7.5x 8.5x

Median 2,946.9$ 93.2% 11.4% 17.8% 1.9x 1.8x 12.4x 10.4x

Total Data and Information Median 4,070.0$ 93.9% 9.6% 13.9% 2.8x 2.7x 10.3x 9.3x

Bellwethers


Services




Bellwethers

Apple Inc. 550,568.2$ 585.28$ 83.0% 29.0% 29.1% 2.7x 2.6x 7.3x 7.3xGoogle Inc. 229,480.3 698.37 90.2% 38.6% 33.9% 4.0x 3.6x 12.1x 10.2xMicrosoft Corporation 224,004.1 26.62 80.8% 1.7% 0.9% 2.2x 2.2x 5.6x 5.4xInternational Business Machines Corporation 214,766.2 190.07 89.7% (2.2%) 0.3% 2.2x 2.2x 8.7x 8.6xSamsung Electronics Co. Ltd. 169,816.1 1,298.43 97.4% 21.7% 59.5% 0.9x 0.8x 4.1x 3.5xOracle Corporation 155,053.1 32.18 96.7% 1.6% 25.8% 3.8x 3.7x 8.2x 6.7xAmazon.com Inc. 114,168.3 252.05 95.4% 29.1% 90.2% 1.9x 1.8x 52.1x 33.5xQUALCOMM Inc. 108,410.3 63.62 92.4% 24.8% 26.1% 4.3x 4.0x 12.3x 9.8xCisco Systems, Inc. 100,397.9 18.91 88.8% 5.3% 27.8% 1.5x 1.5x 5.4x 4.5xIntel Corporation 97,355.4 19.57 66.8% (1.0%) (6.5%) 1.6x 1.6x 3.8x 4.0xSAP AG 92,914.2 77.93 98.9% 14.7% 3.0% 4.6x 4.3x 13.2x 12.9xeBay Inc. 68,348.3 52.82 99.7% 20.6% 41.7% 4.5x 4.4x 15.6x 13.0xEMC Corporation 52,287.2 24.82 82.7% 8.4% 28.5% 2.1x 2.1x 8.8x 7.5xHewlett-Packard & Company 25,540.4 12.99 43.3% (5.5%) (3.3%) 0.4x 0.4x 3.0x 2.9x

Total Comp Set Median 111,289.3$ 90.0% 11.5% 27.0% 2.2x 2.2x 8.4x 7.4x



8



Advertising & Marketing 2,717.9$ -$ 0.6$ 0.4$ 0.3$ 4.0$ 3.6$ 9.7$ 8.5$

Google Inc. 229,480.3$ 698.37$ 90.2% 38.6% 33.9% 4.0x 3.6x 12.1x 10.2xBaidu, Inc. 33,669.0 96.31 62.5% 52.6% 49.3% 9.5x 8.7x 16.4x 15.2xYahoo! Inc. 22,199.1 18.77 98.0% (9.9%) 21.2% 1.9x 2.1x 7.1x 5.7xYandex N.V. 7,140.8 21.82 51.9% 42.6% 45.5% 7.5x 6.9x 17.0x 15.1xAOL Inc. 3,140.3 37.52 85.4% (1.6%) 18.1% 1.1x 1.1x 5.4x 5.7xGroupon, Inc. 2,717.9 4.15 16.0% 45.0% NM 0.6x 0.6x 9.5x 5.0xValueClick, Inc. 1,419.8 18.87 86.3% 18.4% 33.3% 2.2x 2.2x 7.7x 6.9xExactTarget, Inc. 1,403.2 20.61 69.0% 38.5% NM 4.5x 4.1x NM NMBankrate, Inc. 1,203.6 12.03 46.4% 10.7% 1.4% 2.8x 2.8x 9.9x 10.1xMillennial Media Inc. 1,077.1 13.75 49.3% 76.1% NM 6.2x 5.2x NM NMBazaarvoice, Inc. 675.4 9.78 46.4% 59.3% NM 4.0x 3.6x NM NM

Median 2,717.9$ 62.5% 38.6% 33.3% 4.0x 3.6x 9.7x 8.5x

Content Delivery & Management 1,661.2$ -$ 0.8$ 0.1$ 0.3$ 1.9$ 1.9$ 9.6$ 7.2$

Akamai Technologies, Inc. 6,498.9$ 36.62$ 90.8% 18.9% 22.2% 4.1x 3.9x 10.3x 9.0xLevel 3 Communications, Inc. 4,109.6 18.86 67.4% 46.9% 67.0% 1.9x 1.9x 9.6x 8.4xMentor Graphics Corporation 1,661.2 14.93 86.0% 8.5% 41.5% 1.6x 1.6x 8.2x 7.1xRovi Corporation 1,645.7 15.34 40.6% (3.8%) 29.4% 3.3x 3.3x 10.4x 7.2xEarthLink Inc. 687.6 6.60 76.8% 2.4% (11.9%) 0.8x 0.8x 3.6x 3.7x

Median 1,661.2$ 76.8% 8.5% 29.4% 1.9x 1.9x 9.6x 7.2x

Content & Services

Facebook, Inc. 60,660.0$ 28.00$ 62.2% 34.7% 33.5% 11.0x 10.2x 46.9x 18.4xLinkedIn Corporation 11,619.5 108.14 86.2% 81.6% 224.7% 13.1x 11.5x NM 53.0xVeriSign, Inc. 5,302.0 34.15 68.1% 13.1% 30.4% 5.3x 5.2x 9.6x 8.6xNetflix, Inc. 4,538.6 81.71 61.2% 12.3% (67.1%) 1.2x 1.2x 28.3x 29.4xIAC/InterActiveCorporation 4,170.7 47.15 84.8% 35.7% 66.3% 1.4x 1.3x 9.6x 7.5xAOL Inc. 3,140.3 37.52 85.4% (1.6%) 18.1% 1.1x 1.1x 5.4x 5.7xZynga, Inc. 1,928.6 2.46 15.5% 6.5% NM 0.3x 0.3x NM 2.4xPandora Media, Inc. 1,472.6 8.72 33.5% 56.4% NM 4.1x 3.2x NM NMYelp, Inc. 1,197.0 18.91 59.2% 64.1% NM 8.9x 7.9x NM NMZillow, Inc. 920.1 27.52 58.7% 72.3% 240.0% 6.7x 6.1x 57.9x 33.2xDemand Media, Inc. 758.1 8.90 71.2% 14.6% 72.5% 1.8x 1.7x 9.9x 6.3xWebMD Health Corp. 688.8 14.05 34.9% (17.4%) (50.1%) 1.1x 1.1x 12.9x 7.9xAngie's List, Inc. 642.3 11.11 56.1% 72.7% NM 4.3x 3.8x NM NMMonster Worldwide, Inc. 637.0 5.44 52.3% (13.6%) 10.8% 0.7x 0.7x 5.4x 4.3xDice Holdings, Inc. 512.8 8.60 78.3% 8.3% 5.6% 2.7x 2.6x 6.8x 6.6x

Median 1,472.6$ 61.2% 14.6% 30.4% 2.7x 2.6x 9.8x 7.7x

Diversified Media

Comcast Corporation 99,527.4$ 37.20$ 98.0% 12.0% 7.4% 2.3x 2.2x 7.0x 7.0xWalt Disney Company 88,003.6 49.66 93.0% 4.4% 14.5% 2.3x 2.3x 9.0x 8.7xNews Corporation 57,599.5 24.64 96.6% 0.0% 4.1% 1.7x 1.7x 8.7x 8.5xTime Warner Inc. 44,786.4 47.30 99.8% (0.3%) (0.9%) 2.1x 2.1x 8.6x 8.6xViacom, Inc. 25,917.4 51.61 90.7% (10.1%) (3.0%) 2.4x 2.5x 8.0x 8.4xCBS Corporation 22,861.3 35.98 93.9% 4.3% 13.8% 1.9x 1.9x 8.1x 7.8xLiberty Interactive Corporation 10,492.4 19.30 92.1% 4.7% 6.6% 1.4x 1.3x 7.4x 7.1xScripps Networks Interactive, Inc. 8,847.3 59.04 89.0% 11.9% 7.9% 4.3x 4.2x 9.3x 9.2xGannett Co., Inc. 4,113.2 17.90 89.5% 1.1% 8.9% 1.0x 1.0x 5.4x 4.7xMeredith Corporation 1,387.8 31.18 82.4% 7.5% 12.1% 1.3x 1.2x 6.9x 6.6xThe New York Times Company 1,204.3 8.11 73.3% (13.5%) (23.5%) 0.6x 0.7x 3.7x 4.8x

Median 22,861.3$ 92.1% 4.3% 7.4% 1.9x 1.9x 8.0x 7.8x




9

e-Commerce

Amazon.com Inc. 114,168.3$ 252.05$ 95.4% 29.1% 90.2% 1.9x 1.8x 52.1x 33.5xeBay Inc. 68,348.3 52.82 99.7% 20.6% 41.7% 4.5x 4.4x 15.6x 13.0xpriceline.com Inc. 33,070.0 663.19 85.6% 20.6% 34.5% 5.9x 5.7x 16.3x 15.3xRakuten, Inc. 11,068.6 8.42 76.2% 14.9% 23.1% 1.2x 1.2x 5.0x 5.0xExpedia Inc. 8,342.9 61.86 98.5% 15.7% 19.2% 1.9x 1.8x 10.1x 9.2xMercadolibre, Inc. 3,176.7 71.95 68.9% 26.2% 27.0% 8.3x 7.8x 23.0x 21.7xCtrip.com International Ltd. 2,651.6 19.10 67.9% 18.4% (16.8%) 3.3x 3.2x 15.3x 13.7xHomeAway, Inc. 1,701.8 20.48 73.1% 21.5% 97.0% 5.4x 5.2x 29.9x 18.1xLive Nation Entertainment, Inc. 1,643.9 8.78 79.9% 5.4% 6.3% 0.5x 0.5x 6.8x 6.6xLiquidity Services, Inc. 1,291.5 41.06 61.7% 40.3% 83.2% 2.6x 2.4x 12.5x 11.2xVistaprint N.V. 1,063.8 31.05 71.5% 19.1% 1.3% 1.2x 1.1x 12.1x 9.3xOpenTable, Inc. 1,020.0 44.89 85.3% 15.5% 65.6% 6.0x 5.8x 20.1x 13.4xShutterfly, Inc. 975.1 26.95 77.0% 26.5% 117.9% 1.6x 1.5x 17.1x 8.7xDemandware, Inc. 813.9 27.39 79.9% 34.9% NM 9.9x 9.3x NM NM

Median 1,701.8$ 77.0% 20.6% 30.8% 2.6x 2.4x 15.5x 12.1x

Total Internet and Digital Media Median 2,717.9$ 76.8% 15.5% 20.2% 2.3x 2.2x 9.6x 8.4x




(Continued)



Government IT & BPO

SAIC, Inc. 3,941.3$ 11.53$ 81.2% 5.2% 107.2% 0.4x 0.4x 11.1x 4.9xMAXIMUS, Inc. 2,147.3 62.99 99.5% 14.7% 15.0% 1.9x 1.8x 12.9x 12.2xTyler Technologies, Inc. 1,433.8 46.92 94.6% 17.1% 21.5% 4.2x 4.0x 21.5x 21.1xCACI International Inc. 1,167.6 51.15 81.0% (0.2%) 1.4% 0.5x 0.5x 5.3x 5.3xManTech International Corporation 924.3 24.98 67.2% (8.0%) (18.3%) 0.3x 0.3x 3.5x 4.0x

Median 1,433.8$ 81.2% 5.2% 15.0% 0.5x 0.5x 11.1x 5.3x

IT Services

Accenture plc 50,972.8$ 67.92$ 94.6% 5.8% 7.1% 1.6x 1.6x 10.7x 9.9xCap Gemini S.A. 6,507.9 42.35 94.3% 6.0% 12.3% 0.5x 0.5x 5.7x 5.3xAtos S.A. 5,986.3 71.03 97.4% 29.8% 30.7% 0.5x 0.5x 5.3x 4.9xSapient Corporation 1,460.8 10.59 76.3% 10.9% 15.5% 1.2x 1.1x 9.0x 8.2xTieto Oyj 1,378.6 19.21 93.5% 0.4% 0.7% 0.6x 0.6x 5.9x 5.6xEPAM Systems, Inc. 895.3 20.57 87.1% 27.1% 25.5% 2.0x 1.9x 10.7x 9.8xUnisys Corporation 759.9 17.28 68.4% (5.3%) 20.0% 0.2x 0.2x 1.8x 1.5x

Median 1,460.8$ 93.5% 6.0% 15.5% 0.6x 0.6x 5.9x 5.6x

Offshore BPOs

Tata Consultancy Services Ltd. 47,351.7$ 24.19$ 91.3% NA 26.1% 4.3x NA 14.5x 14.6xInfosys Technologies Ltd. 25,656.9 44.90 81.5% 4.5% (0.8%) 3.0x 3.0x 9.5x 10.1xCognizant Technology Solutions 20,181.9 67.23 86.2% 20.0% 20.0% 2.5x 2.4x 12.0x 11.6xWipro Ltd. 17,721.6 7.24 86.8% 17.6% 20.2% 2.1x 2.1x 10.8x 10.6xHCL Technologies Ltd. 8,378.1 12.07 99.4% 29.5% 70.6% 1.9x 1.9x 10.4x 9.1xGenpact Ltd. 3,597.9 16.05 82.2% 18.5% 15.1% 2.2x 2.1x 12.2x 11.7xSyntel, Inc. 2,522.1 60.16 92.3% 13.9% 26.0% 3.0x 2.9x 8.9x 9.3xSatyam Computer Services Limited 2,206.9 1.88 87.4% 21.6% 64.7% 1.2x 1.2x 6.1x 5.6xExlservice Holdings, Inc. 863.1 26.85 89.2% 22.8% 26.2% 1.7x 1.7x 9.2x 9.0xWNS Holdings Ltd. 535.1 10.63 87.2% (19.4%) 9.7% 1.2x 1.3x 7.1x 7.4x

Median 5,988.0$ 87.3% 18.5% 23.1% 2.1x 2.1x 10.0x 9.7x

Onshore BPOs

Alliance Data Systems Corporation 7,104.0$ 142.49$ 97.8% 13.8% 26.1% 4.0x 3.9x 13.3x 12.0xCGI Group, Inc. 7,038.9 22.95 84.4% 46.1% 18.8% 2.1x 1.6x 13.6x 11.2xComputer Sciences Corporation 5,913.3 38.06 98.4% (1.4%) 4.5% 0.5x 0.5x 4.7x 4.5xDST Systems Inc. 2,599.6 57.64 98.9% (15.4%) 12.3% 0.8x 1.0x 5.4x 4.6xConvergys Corporation 1,703.8 15.61 89.6% (11.3%) (9.8%) 0.4x 0.5x 3.5x 4.4x

Median 5,913.3$ 97.8% (1.4% ) 12.3% 0.8x 1.0x 5.4x 4.6x

Total IT Services Median 2,599.6$ 89.2% 12.4% 18.8% 1.6x 1.5x 9.2x 9.0x

IT and Tech-Enabled

Services


Software – Application


10



Customer Engagement/Call Center Management

Nuance Communications, Inc. 6,948.3$ 22.24$ 71.4% 34.4% 163.1% 4.8x 4.3x 20.9x 10.5xAmdocs Limited 5,521.8 33.46 98.8% 1.7% 12.4% 1.4x 1.4x 7.6x 6.8xNICE Systems Ltd. 2,217.4 34.10 86.7% 13.3% 68.4% 2.1x 2.0x 13.7x 8.5xVerint Systems Inc. 1,104.5 27.77 84.8% 9.7% 72.4% 2.2x 2.1x 13.5x 7.8xComverse Technology Inc. 778.3 3.55 50.3% (1.4%) 122.9% 0.7x 0.7x 7.2x 3.5xLivePerson Inc. 736.9 13.19 67.3% 17.7% 6.0% 4.2x 4.0x 29.7x 22.0x

Median 1,661.0$ 78.1% 11.5% 70.4% 2.2x 2.1x 13.6x 8.1x

Enterprise Software

Oracle Corporation 155,053.1$ 32.18$ 96.7% 1.6% 25.8% 3.8x 3.7x 8.2x 6.7xSAP AG 92,914.2 77.93 98.9% 14.7% 3.0% 4.6x 4.3x 13.2x 12.9xsalesforce.com, inc 22,389.1 157.67 95.7% 34.4% 375.2% 7.6x 7.1x NM 42.5xAdobe Systems Inc. 17,133.9 34.61 99.4% 3.2% 24.4% 3.5x 3.5x 10.2x 8.4xSage Group plc 6,041.3 4.99 95.5% 1.9% 0.5% 2.7x 2.7x 9.4x 9.3xNetSuite Inc. 4,271.9 59.62 89.0% 29.8% NM 14.2x 13.3x NM NMOpen Text Corporation 3,357.6 57.41 91.6% 10.3% 24.5% 2.9x 2.9x 10.2x 9.2xInformatica Corporation 2,899.5 26.87 49.3% 1.3% 21.5% 2.9x 2.9x 14.9x 10.7xManhattan Associates, Inc. 1,137.4 57.24 88.1% 13.3% 41.4% 2.8x 2.8x 12.5x 11.0xMicroStrategy Inc. 993.3 88.49 55.3% 5.0% 110.2% 1.3x 1.3x 17.9x 14.4xJive Software, Inc. 930.0 14.46 51.4% 45.3% NM 7.4x 6.8x NM NMExact Holding NV 504.7 22.12 90.4% 1.1% (5.0%) 1.6x 1.6x 6.8x 7.2x

Median 3,814.8$ 91.0% 7.7% 24.5% 3.2x 3.2x 10.2x 10.0x

Human Capital Management

Workday, Inc. 8,316.6$ 50.10$ 87.6% 100.8% NM 32.1x 28.0x NM NMConcur Technologies, Inc. 3,618.8 65.71 86.3% 24.7% 170.4% 7.5x 7.2x 65.2x 29.0xThe Ultimate Software Group, Inc. 2,580.3 94.51 88.8% 23.0% 134.7% 8.0x 7.6x 69.6x 40.1xCornerstone OnDemand, Inc. 1,415.5 28.04 86.3% 61.5% NM 13.0x 11.5x NM NM

Median 3,099.6$ 86.9% 43.1% 152.5% 10.5x 9.5x 67.4x 34.5x

Product Lifecycle Management/Engineering

Dassault Systemes SA 13,986.9$ 113.20$ 99.1% 14.1% 21.1% 4.9x 4.7x 15.8x 14.4xAutodesk, Inc. 7,444.3 33.13 77.6% 3.3% 38.1% 2.5x 2.5x 12.3x 9.0xAnsys, Inc. 6,144.7 66.33 89.2% 16.0% 27.5% 7.3x 7.1x 15.4x 13.4xSynopsys Inc. 4,900.3 32.86 96.1% 11.6% 38.7% 2.4x 2.3x 11.6x 8.1xCadence Design Systems Inc. 3,570.1 12.75 92.5% 15.0% 77.4% 2.5x 2.5x 11.2x 8.6xAspen Technology, Inc. 2,425.8 25.99 94.0% 18.4% NM 8.6x 8.6x NM 90.6xParametric Technology Corporation 2,419.5 20.25 69.9% 3.2% 43.1% 1.8x 1.8x 10.3x 7.7xAveva Group plc 2,230.6 32.81 98.5% 14.7% 25.3% 5.8x 5.6x 19.7x 17.3xMentor Graphics Corporation 1,661.2 14.93 86.0% 8.5% 41.5% 1.6x 1.6x 8.2x 7.1x

Median 3,570.1$ 92.5% 14.1% 38.4% 2.5x 2.5x 12.0x 9.0x

Vertically Focused - Financial Technology

Intuit Inc. 17,736.6$ 59.91$ 96.1% 8.0% 9.3% 4.2x 4.1x 12.4x 11.3xJack Henry & Associates Inc. 3,345.7 38.87 95.5% 7.5% 7.5% 3.1x 3.0x 9.5x 9.5xBroadridge Financial Solutions, Inc. 2,885.7 23.61 94.7% 3.4% 8.5% 1.4x 1.4x 9.3x 7.6xSS&C Technologies Holdings, Inc. 1,860.2 23.59 87.2% 49.1% 55.1% 6.0x 5.2x 15.9x 13.5xACI Worldwide, Inc. 1,697.8 43.11 91.9% 47.8% 84.6% 3.5x 2.9x 18.2x 10.7xFinancial Engines, Inc. 1,241.0 26.22 97.7% 29.3% 109.2% 6.1x 5.8x 35.0x 20.4xAdvent Software, Inc. 1,117.3 22.26 78.7% 9.9% 53.1% 2.9x 2.8x 14.5x 10.5xBottomline Technologies (de), Inc. 916.2 24.51 82.0% 14.6% (10.2%) 3.5x 3.4x 27.0x 25.8x

Median 1,779.0$ 93.3% 12.2% 31.2% 3.5x 3.2x 15.2x 11.0x

Vertically Focused - Healthcare IT

Cerner Corporation 13,248.2$ 77.22$ 87.4% 22.8% 38.0% 4.7x 4.5x 17.4x 14.6xathenahealth, Inc. 2,310.2 63.69 65.4% 30.6% 82.9% 5.3x 5.0x 42.6x 24.0xHMS Holdings Corp. 2,013.9 23.17 62.3% 31.3% 42.6% 5.0x 4.7x 16.6x 14.4xAllscripts Healthcare Solutions, Inc. 1,906.7 11.12 51.3% 1.5% 11.5% 1.5x 1.5x 9.9x 8.0xQuality Systems Inc. 1,081.1 18.21 40.5% 10.8% (8.7%) 2.1x 2.1x 8.3x 8.1xMedAssets, Inc. 950.8 16.10 86.2% 10.0% 19.7% 2.9x 2.9x 9.6x 9.1xGreenway Medical Technologies, Inc. 574.7 19.44 98.9% 30.4% 201.7% 4.1x 3.9x 70.5x 32.9xComputer Programs & Systems Inc. 554.7 50.07 78.2% 8.3% 10.3% 3.0x 2.8x 12.5x 11.0x

Median 1,493.9$ 71.8% 16.8% 28.8% 3.6x 3.4x 14.5x 12.7x




Enterprise IT Management

Microsoft Corporation 224,004.1$ 26.62$ 80.8% 1.7% 0.9% 2.2x 2.2x 5.6x 5.4xVMware, Inc. 38,905.0 90.95 76.6% 21.8% 85.8% 8.0x 7.6x 31.7x 19.5xHewlett-Packard Company 25,540.4 12.99 43.3% (5.5%) (3.3%) 0.4x 0.4x 3.0x 2.9xCitrix Systems, Inc. 11,419.6 61.16 69.5% 15.5% 38.9% 4.0x 3.9x 17.1x 12.3xCA Technologies 10,177.8 22.16 79.1% (2.0%) 8.0% 2.0x 2.0x 5.5x 5.0xRed Hat, Inc. 9,550.3 49.40 78.7% 17.7% 47.1% 6.7x 6.4x 31.5x 23.0xBMC Software Inc. 6,346.3 40.96 89.6% 1.6% 32.5% 2.6x 2.6x 9.3x 5.9xTIBCO Software Inc. 4,079.2 25.05 72.3% 13.5% 47.6% 3.9x 3.8x 16.9x 12.6xSplunk, Inc. 2,922.3 30.20 76.0% 59.6% NM 15.0x 13.7x NM NMCompuware Corporation 1,993.8 9.35 91.2% (2.6%) (1.2%) 2.1x 2.1x 12.9x 11.6xProgress Software Corporation 1,285.2 20.11 81.2% (14.1%) (15.9%) 1.9x 2.0x 9.3x 7.9xPegasystems Inc. 770.6 20.34 50.9% 5.8% 138.5% 1.5x 1.5x 26.5x 10.2x

Median 7,948.3$ 77.6% 3.7% 32.5% 2.4x 2.4x 12.9x 10.2x

Enterprise Storage

EMC Corporation 52,287.2$ 24.82$ 82.7% 8.4% 28.5% 2.1x 2.1x 8.8x 7.5xNetApp, Inc. 11,361.2 31.71 67.8% 5.9% 33.1% 1.1x 1.1x 8.6x 5.7xTeradata Corporation 10,058.1 59.48 73.5% 12.4% 48.3% 3.6x 3.6x 14.6x 12.2xCommVault Systems, Inc. 3,018.1 66.36 94.9% 21.9% 94.1% 6.0x 5.7x 38.3x 26.3xBrocade Communications Systems, Inc. 2,595.3 5.68 88.2% 4.2% 31.8% 1.1x 1.1x 5.3x 4.5xFusion-io, Inc. 2,234.2 23.33 68.9% 47.5% 66.2% 4.7x 4.3x NM 47.6x

Median 6,538.1$ 78.1% 10.4% 40.7% 2.9x 2.8x 8.8x 9.8x

Security

Symantec Corporation 13,017.6$ 18.76$ 96.0% 0.9% 8.3% 1.8x 1.8x 6.6x 6.0xCheck Point Software Technologies Ltd. 9,455.6 46.17 71.0% 8.1% 17.0% 4.7x 4.6x 8.2x 7.7xVeriSign, Inc. 5,302.0 34.15 68.1% 13.1% 30.4% 5.3x 5.2x 9.6x 8.6xTrend Micro Inc. 3,425.7 26.04 82.2% (3.0%) (16.2%) 1.4x 1.4x 4.2x 4.7xFortinet Inc. 3,195.6 19.98 69.3% 21.5% 43.2% 5.0x 4.8x 24.3x 18.2xSourcefire, Inc. 1,481.3 49.23 82.5% 32.5% 252.0% 6.2x 5.9x 66.1x 29.5xWebsense, Inc. 507.5 13.96 63.0% (0.9%) 10.1% 1.4x 1.4x 7.3x 6.7x

Median 3,425.7$ 71.0% 8.1% 17.0% 4.7x 4.6x 8.2x 7.7x

Total Infrastructure Software Median 5,302.0$ 76.6% 8.1% 32.1% 2.6x 2.6x 9.3x 8.3x


11

Software – Application (Continued) Vertically Focused - Public Sector

Tyler Technologies, Inc. 1,433.8$ 46.92$ 94.6% 17.1% 21.5% 4.2x 4.0x 21.5x 21.1xBlackbaud Inc. 1,009.2 22.34 65.7% 21.0% 17.0% 2.9x 2.7x 20.1x 14.7xNIC Inc. 970.1 15.01 95.0% 14.3% 6.4% 4.5x 4.3x 17.9x 17.9xK12, Inc. 623.1 17.33 60.1% 25.8% 121.7% 0.8x 0.7x 9.2x 5.8xHigher One Holdings, Inc. 500.3 8.84 43.2% 11.7% 2.1% 2.7x 2.6x 7.2x 7.9xMedian 970.1$ 65.7% 17.1% 17.0% 2.9x 2.7x 17.9x 14.7x

Total Application Software Median 2,224.0$ 87.5% 14.2% 27.5% 3.5x 3.2x 13.4x 10.7x



Software - Infrastructure


12 Note: Public comparables exclude companies with market capitalization below $500 million.

( $ in millions) Stock Price CY 2012P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA


SaaS

salesforce.com, inc 22,389.1$ 157.67$ 95.7% 34.4% 375.2% 7.6x 7.1x NM 42.5xWorkday, Inc. 8,316.6 50.10 87.6% 100.8% NM 32.1x 28.0x NM NMNetSuite Inc. 4,271.9 59.62 89.0% 29.8% NM 14.2x 13.3x NM NMConcur Technologies, Inc. 3,618.8 65.71 86.3% 24.7% 170.4% 7.5x 7.2x 65.2x 29.0xThe Ultimate Software Group, Inc. 2,580.3 94.51 88.8% 23.0% 134.7% 8.0x 7.6x 69.6x 40.1xathenahealth, Inc. 2,310.2 63.69 65.4% 30.6% 82.9% 5.3x 5.0x 42.6x 24.0xQlik Technologies, Inc. 1,664.7 19.38 57.7% 17.8% 60.5% 4.1x 3.9x 84.2x 40.0xCornerstone OnDemand, Inc. 1,415.5 28.04 86.3% 61.5% NM 13.0x 11.5x NM NMExactTarget, Inc. 1,403.2 20.61 69.0% 38.5% NM 4.5x 4.1x NM NMFinancial Engines, Inc. 1,241.0 26.22 97.7% 29.3% 109.2% 6.1x 5.8x 35.0x 20.4xDealerTrack Holdings, Inc. 1,148.5 26.89 84.1% 9.9% 79.7% 2.6x 2.5x 18.0x 9.9xOpenTable, Inc. 1,020.0 44.89 85.3% 15.5% 65.6% 6.0x 5.8x 20.1x 13.4xBlackbaud Inc. 1,009.2 22.34 65.7% 21.0% 17.0% 2.9x 2.7x 20.1x 14.7xMedAssets, Inc. 950.8 16.10 86.2% 10.0% 19.7% 2.9x 2.9x 9.6x 9.1xJive Software, Inc. 930.0 14.46 51.4% 45.3% NM 7.4x 6.8x NM NMDemandware, Inc. 813.9 27.39 79.9% 34.9% NM 9.9x 9.3x NM NMLivePerson Inc. 736.9 13.19 67.3% 17.7% 6.0% 4.2x 4.0x 29.7x 22.0xEbix Inc. 640.3 16.82 62.5% 17.5% 20.8% 3.7x 3.5x 8.9x 7.8xSPS Commerce, Inc. 541.2 36.86 89.2% 32.0% 116.0% 6.7x 6.2x 78.9x 54.4xWebsense, Inc. 507.5 13.96 63.0% (0.9%) 10.1% 1.4x 1.4x 7.3x 6.7x

Total SaaS Median 1,194.7$ 84.7% 27.0% 72.6% 6.1x 5.8x 29.7x 21.2x

Software as a Service

(“SaaS”)


a subsidiary of


Selected HW&Co. TMT Transactions

a portfolio company of

has received a strategic investment from


has acquired


has merged with


has received a minority investment from

The Mill a portfolio company of




has acquired


has been recapitalized by



has received a strategic investment from








13

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technology, media & telecom update december 2012 · 2012-12-18 · kpcb’s mary meeker has...

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