2016 Vaquero Market Update

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2/2/2016 1 1 2016 Vaquero Market Update exceptional execution | superior results

Transcript of 2016 Vaquero Market Update

2/2/2016 11

2016 Vaquero Market Update

exceptional execution | superior results

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Vaquero Capital Team

Josh Gatlin

Analyst

(415) 798-2301

[email protected]

Cameron Borumand

Analyst

(415) 798-9091

[email protected]

Sam Hamilton

Analyst

(415) 798-2308

[email protected]

Vaquero Capital is a tech-focused

investment banking & advisory

firm that is focused on

entrepreneurs and investors in fast

growing businesses that have

significant profit potential.

“Our focus on execution and

premium growth clients enables us

to achieve outstanding results.”

- David Grove, Managing Partner

David Grove

Managing Partner

(415) 798-2303

[email protected]

Stefan Gerhard

Managing Director

(415) 539-0688

[email protected]

Bryan Payne

Associate

(415) 796-0537

[email protected]

Terry Jiang

Associate

(415) 798-2304

[email protected]

Vishal Tayal

Director

(415) 798-2307

[email protected]

2/2/2016 13

Vaquero: leader in the premium growth market

Strong relationships with relevant partners

Exceptional results for premium assets

Focus on Quality Assets and Process

High quality materials and data

Maximize tension / timing

Lower Mid-Market Premium Growth Large Cap

Pure-Play

Advisors

Equity

Platforms

Co-Managers Equity Platforms Bulge Bracket

28 high profile transactions

$50,000,000

August 2013

M&A

$165,000,000

February 2012

DISCOAuto / Social Media

Dual Track

M&A / Sponsor Recap

JAGUAReCommerce Enabler

Dual Track

M&A / Sponsor Recap

M&A

December 2014 Undisclosed

December 2012

Sponsor Recap

$33,000,000

September 2011

Growth Financing

Growth Financing

Spring 2013

$30,000,000 September 2012

Sponsor Recap

July 2014

Sponsor Recap

February 2015

M&A

November 2014 February 2014

Sponsor Recap

July 2015

Sponsor TransactionDual Track

July 2015November 2015

GATSBYEd-Tech

Sponsor Recap

TEXASEnergy Tech

Dual Track

M&A / Sponsor Recap

Vaquero is the Leader in Middle Market Capital

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The Market is Outstanding

< 3 weeks to IOIs

Conducted 41 meetings

during 8 day roadshow

75% conversion rate from

mgmt. meeting to data room

Conducted 38 meetings

during 7 day roadshow

Conducted 31 meetings

during 6 day roadshow

65%+ conversion rate from

outreach to meeting

Launched Dec, 4th Launched Jan, 7th Launched Jan, 8th

70%+ conversion rate from

outreach to meeting

Bid date 4 weeks after launch

JAGUAReCommerce Enabler

Dual Track

M&A / Sponsor Recap

SHELBYAuto / Data

Buy-Side

TEXASEnergy Tech

Sell-Side M&A

Bids Received / Exclusivity

Bids Delivered

EQUUS 2Energy Tech

Buy-Side

Sponsor Recap

July 2015July 2015

Sponsor Recap

November 2015

Sponsor Recap

Recent Shootout Deals Completed

10+Bids

10Bids

7Bids

MUSTANGAuto / Data

Minority Raise

MAVERICKConstruction Software

GATSBYInternet / Data

Majority RecapMajority Recap

Pre-emptive offer prior to launch

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Indexed Stock Price Performance

-50%

-30%

-10%

10%

30%

50%

70%

90%

110%

130%

150%

Software Index Internet Index NASDAQ Composite Index (^COMP) - Index Value

Stock Price Performance (2013-2015)

Indexed Performance by Sector(Jan 1, 2013 – Dec 31, 2015)

-14%

-11%

-1%

25%

36%

41%

53%

55%

56%

64%

82%

82%

108%

205%

Ad Tech

Cloud Infrastructure

Legacy Infrastructure

Bell Weather SW

Low Growth SaaS

eCommerce

Horizontal On-Premise Apps

Security

Data & Measurement

Vertical On-Premise Apps

Marketplace

High Growth SaaS

Search & Content

Social Media

Software and Internet have outperformed the broader market

Social Media, Search and High-Growth SaaS have been the best performing sectors

Only Ad Tech and Infrastructure software have posted a negative return

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.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

1 2 3 4 5 6 7 8

Bellwether

SW

Search

Cloud

Infrastructure

Public Company Trading Multiples by Sector

Source: Capital IQ, Bloomberg, and publicly available information

1) Based on consensus First Call consensus estimates as reported by Capital IQ and Bloomberg

2) Chart excludes companies whose multiples are “NM” or “NA”.

3) Less relevant comps displayed in grey for correlation purposes

2016 Revenue Multiple Regression: Revenue Growth + EBITDA Margin*

High growth SaaS, security and e-commerce are outpaced only by social media

Traditional SaaS (legacy & bellwether) trade at a discount

Ad tech performance is the weakest, with social media being the strongest

Mkplace.

10% 20% 30% 40% 50% 60% 70% 80%

High Growth

SaaS

Low Growth

SaaSSecurity

Legacy Integration

Infrastructure

Vert. On

Prem Apps

Horiz. On

Prem Apps

Social

Media

Ad

Tech

Lower risk,

more

sustainable

growth

Higher risk of

slow down

during growth

‘15E – 16E% Revenue Growth + EBITA Margin

’16

Reve

nu

e M

ult

iple

Data

e-Commerce

Search

Security

Legacy

Vertical On-Premise

Horizontal On-Premise

Bellwether Software

Low Growth SaaS

High Growth SaaS

Cloud Infrastructure

Ad Tech

Marketplace

Data

Search

e-Commerce

Social Media

Internet Software

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Public Company Trading Multiples by Sector

*See appendix for supporting details

EV to Revenue EV to EBITDA Rev Growth EBITDA Margin

Group Category 2015E 2016E 2017E 2015E 2016E 2017E '15-'17 2015E 2016E 2017E

Software

High Growth SaaS 7.9x 6.1x 4.9x 41.2x 41.2x 38.5x 25% 17% 17% 18%

Low Growth SaaS 5.0x 4.4x 3.9x 26.8x 26.8x 24.4x 13% 25% 23% 25%

Vertical On-Premise Apps 4.1x 3.8x 3.5x 16.6x 16.6x 12.8x 5% 26% 28% 27%

Horizontal On-Premise Apps 4.4x 4.0x 3.7x 20.9x 20.9x 18.9x 7% 23% 25% 26%

Market Leading SW 3.6x 3.6x 3.4x 11.2x 11.2x 9.9x 2% 34% 36% 37%

Legacy Infrastructure 2.5x 2.4x 2.3x 11.8x 11.8x 10.3x 3% 23% 25% 21%

Cloud Infrastructure 5.3x 4.4x 3.8x 14.4x 14.4x 12.8x 12% 30% 30% 32%

Security 5.6x 4.6x 3.8x 22.0x 22.0x 17.1x 4% 20% 21% 21%

Mean 4.8x 4.2x 3.7x 20.6x 20.6x 18.1x 9% 25% 26% 26%

Median 4.7x 4.2x 3.7x 18.7x 18.7x 15.0x 6% 24% 25% 25%

Internet

Search & Content 3.6x 3.6x 3.5x 17.1x 17.1x 14.9x 14% 23% 25% 26%

Social Media 10.5x 10.5x 7.7x 29.4x 29.4x 20.9x 34% 37% 38% 39%

eCommerce 5.1x 5.1x 4.0x 20.8x 20.8x 16.3x 20% 27% 23% 27%

Marketplace 3.2x 3.2x 3.0x 14.1x 14.1x 16.1x 14% 20% 20% 22%

Data & Measurement 4.2x 4.2x 3.9x 13.8x 13.8x 12.7x 5% 30% 31% 31%

Ad Tech 2.5x 2.5x 2.0x 12.7x 12.7x 11.9x 3% 19% 10% 8%

Mean 4.9x 4.9x 4.0x 18.0x 18.0x 15.5x 15% 26% 24% 25%

Median 3.9x 3.9x 3.7x 15.6x 15.6x 15.5x 14% 25% 24% 26%

Bellwether Software

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Software & Internet M&A Activity: 2013-2015

NA 275 273 265 258 294 320 334 318 320 342 330 309 1301 78%

$0-100M 76 69 84 79 82 102 75 84 84 82 50 65 281 17%

$100-500M 7 14 8 20 17 14 23 8 13 7 16 18 54 3%

$500-1B 1 2 3 1 6 4 6 5 3 6 6 4 19 1%

$1B+ 1 6 5 3 3 4 6 1 3 4 7 3 17 1%

Total 360 364 365 361 402 444 444 416 423 441 409 399

% Growth - - - - 12% 22% 22% 15% 5% -1% -8% -4%

Total Volume 3.0 4.8 3.9 4.0 5.3 7.2 6.3 6.9 8.1 9.0 9.3 6.4

% Growth - - - - 77% 50% 62% 73% 53% 25% 48% -7%

2013 2014 2015# of Deals

by Size

$3.0

$4.8

$3.9 $4.0

$5.3

$7.2

$6.3

$6.9

$8.1

$9.0$9.3

$6.4

Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415

An

no

un

ce

d D

ea

l V

alu

e (

$B

)

Total 2015 %

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Software & Internet M&A Activity: By Sector

159

235

277

142

187

158

129

191

204

2013 2014 2015

# o

f D

ea

ls

Vertical Software Internet/ Media Mobile

Vertical software transactions lead the wave

Mobile cooled a bit after a strong 2014

Internet is trending down in 2016

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VC-Backed Exits: 2013-2015

Corporate and PE buyout remains the preferred exit vs. IPO

PE Exits

Strategic Exits

IPOs

Q4 2013

$1.2B

Q1 2014

$1.0B

Q1 2014

$600M

$8.4B

Q2 2013

$7.0B

Q3 2015

$6.8B

Q4 2015

$4.6B

Q2 2015 Q4 2015

$4.3B

Q4 201579%75%

79%

11%13%

12%

10% 12% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015

Strategic Exit PE Exit IPO Exit

$1.1B

% o

f E

xit

s

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Number of Transactions by Acquirer

40

38

23

20

18

1615

14 1413

10 109

a a a a a a a a a a a a a

Most Active Software & Internet Acquirers: 2013-2015

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19

9

7 7

5 5

4 4 4 4 4 4 4

Vista Thoma Bravo Insight Marlin Parallax Capital Vector HIG HGGC Permira Siris Capital TA Associaties Carly Riverside

Number of Majority Acquisitions by PE Firm

Most Active Software & Internet Acquirers: 2013-2015

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Representative M&A Deals 2015: Software & Internet

VAQUERO CAPITAL DEAL

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NA 158 166 139 158 263 157 164 143 117 121 122 79 439 8%

$0-100M 1101 1262 1165 1152 1508 1360 1278 1205 1279 1313 1152 921 4465 90%

$100-500M 5 3 3 9 9 12 13 16 13 15 17 8 53 1%

$500-1B 0 1 2 0 3 0 1 1 4 2 2 2 10 0%

$1B+ 0 0 1 1 1 2 1 1 1 2 1 0 4 0%

Total 1264 1432 1310 1320 1784 1531 1457 1366 1414 1453 1294 1010

% Growth - - - - 41% 7% 11% 3% -21% -5% -11% -26%

Total Volume 5.0 7.1 9.6 8.6 13.2 13.9 10.3 13.8 14.4 17.9 15.7 9.6

% Growth - - - - 164% 96% 7% 60% 9% 29% 52% -30%

Software & Internet Private Placement Activity A

nn

ou

nc

ed

Dea

l V

alu

e (

$B

)

# of Deals

by Size

$5.0

$7.1

$9.6$8.6

$13.2$13.9

$10.3

$13.8$14.4

$17.9

$15.7

$9.6

Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415

2013 2014 2015Total 2015 %

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Most Active Software & Internet Investors

21

18

1514 14

13 13

11 11

98 8

7

2013-2015

7 7 7 76 6 6 6 6 6

5 54

2015

Private Placement Investments > $75M

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47

38

34 33

27 26

23 22 21 20 20 20 19

Most Active Software & Internet Investors

19

1513 13 12 11 11 11 10 10 9 9 9

Private Placement Investments $30M - $75M

2013-2015 2015

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40

3433

32 32

29

26 2625

24 2423

22

Most Active Software & Internet Investors

21

12 1211

10 10 109

8 8 8 87

Private Placement Investments $15M - $30M

2013-2015 2015

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Representative Private Placements 2015: Software & Internet

VAQUERO CAPITAL DEAL

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Vaquero Firm Overview

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Vaquero: Focused on Private Company Liquidity

Growth CapitalPrivate Equity Private Debt Pre-IPO & IPO

Advisory

Sell Side M&A Buy Side M&A

Vaquero Capital

Exceptional execution and service

Full suite of products and superior results

Strong relationships with relevant partners

Expertise in dual track M&A / capital raising

Private Equity

Buy-side Debt

Financing

PrincipalInvesting

Pre-IPO / IPO

Sell-SideM&A

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Appendix

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Software Public Comps - Valuation

($ in millions, except per share data) Share Price

Equity Enterprise as of % of EV to EBITDA

Software Value Value 12/31/2015 52-Wk High 2015E 2016E 2017E 2015E 2016E 2017E

High Growth SaaS

SS&C Technologies Holdings, Inc. $6,955 $9,280 $68.27 88% 9.0 x 6.3 x 5.8 x 20.6 x 14.6 x 12.8 x

Ellie Mae, Inc. $1,796 $1,691 $60.23 73% 6.8 x 5.5 x 4.4 x 25.7 x 20.3 x 14.1 x

The Ultimate Software Group, Inc. $5,602 $5,482 $195.51 90% 8.9 x 7.2 x 5.9 x 36.9 x 29.0 x 24.5 x

Cvent, Inc. $1,465 $1,306 $34.91 94% 7.0 x 5.6 x 4.6 x 54.5 x 52.3 x 36.3 x

RingCentral, Inc. $1,673 $1,561 $23.58 92% 5.3 x 4.3 x 3.5 x NM 78.2 x 41.6 x

Fleetmatics Group PLC $1,960 $1,797 $50.79 81% 6.3 x 5.2 x 4.4 x 19.6 x 15.7 x 12.7 x

Paycom Software, Inc. $2,224 $2,202 $37.63 81% 10.0 x 7.6 x 5.7 x 46.0 x 36.8 x 25.8 x

salesforce.com, inc. $52,058 $52,763 $78.40 95% 7.9 x 6.5 x 5.4 x 43.2 x 32.0 x 25.8 x

Workday, Inc. $15,458 $14,070 $79.68 84% 12.1 x 9.1 x 6.9 x NM NM 71.1 x

NetSuite Inc. $6,726 $6,636 $84.62 77% 9.0 x 6.9 x 5.3 x NM NM 65.3 x

Tableau Software, Inc. $6,825 $6,074 $94.22 72% 9.3 x 7.0 x 5.3 x 73.5 x 53.6 x 32.9 x

Cornerstone OnDemand, Inc. $1,880 $1,897 $34.53 85% 5.5 x 4.3 x 3.5 x NM 50.7 x NM

Demandware, Inc. $2,034 $1,851 $53.97 71% 7.9 x 6.1 x 4.8 x NM 75.3 x 52.3 x

Benefitfocus, Inc. $1,061 $1,027 $36.39 77% 5.6 x 4.5 x 3.7 x NM NM NM

Marketo, Inc. $1,243 $1,137 $28.71 81% 5.4 x 4.1 x 3.2 x NM NM NM

Zendesk, Inc. $2,345 $2,065 $26.44 94% 10.0 x 7.1 x 5.4 x NM NM NM

athenahealth, Inc. $6,250 $6,432 $160.97 94% 7.0 x 5.8 x 4.8 x 35.9 x 28.0 x 22.6 x

Zillow Group, Inc. $4,610 $4,303 $26.04 59% 6.6 x 5.4 x 4.3 x 46.0 x 29.5 x 19.6 x

Textura Corporation $563 $490 $21.58 69% 5.7 x 4.3 x 3.4 x 51.5 x 23.6 x 14.3 x

Veeva Systems Inc. $3,837 $3,497 $28.85 86% 8.6 x 6.9 x 5.6 x 30.2 x 23.3 x 18.3 x

Callidus Software Inc. $1,042 $947 $18.57 86% 5.5 x 4.5 x 3.8 x 52.2 x 36.1 x 28.9 x

ServiceNow, Inc. $13,763 $13,501 $86.56 95% 13.5 x 9.8 x 7.5 x NM 54.5 x 35.0 x

Mean 7.9x 6.1x 4.9x 41.2x 38.5x 30.8x

Median 7.4x 6.0x 4.8x 43.2x 32.0x 25.8x

Low Growth SaaS

Bazaarvoice, Inc. $353 $300 $4.38 47% 1.5 x 1.4 x 1.3 x NM 44.2 x 25.8 x

Solera Holdings Inc. $3,687 $6,416 $54.83 97% 5.3 x 4.9 x 4.6 x 14.0 x 12.7 x 11.7 x

Aspen Technology, Inc. $3,145 $2,963 $37.76 81% 6.5 x 5.8 x 5.5 x 13.6 x 12.8 x 11.4 x

Guidewire Software, Inc. $4,301 $3,764 $60.16 93% 9.6 x 8.7 x 7.7 x 52.2 x 46.0 x 34.1 x

RealPage, Inc. $1,760 $1,785 $22.45 94% 3.8 x 3.4 x 3.1 x 19.8 x 17.0 x 14.4 x

Envestnet, Inc. $1,071 $1,012 $29.85 51% 2.4 x 1.7 x 1.5 x 13.5 x 9.2 x 6.7 x

Qlik Technologies, Inc. $2,945 $2,624 $31.66 74% 4.3 x 3.7 x 3.1 x 45.1 x 30.3 x 22.2 x

Medidata Solutions, Inc. $2,729 $2,692 $49.29 80% 6.8 x 5.7 x 4.8 x 29.5 x 23.1 x 18.4 x

Mean 5.0x 4.4x 3.9x 26.8x 24.4x 18.1x

Median 4.8x 4.3x 3.9x 19.8x 20.1x 16.4x

EV to Revenue

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Software Public Comps - Valuation (cont.)($ in millions, except per share data) Share Price

Equity Enterprise as of % of EV to EBITDA

Software Value Value 12/31/2015 52-Wk High 2015E 2016E 2017E 2015E 2016E 2017E

Vertical On-Premise Apps

Autodesk, Inc. $13,729 $12,932 $60.93 93% 5.2 x 6.1 x 5.3 x 40.7 x NM NM

Ansys, Inc. $8,232 $7,455 $92.50 94% 7.8 x 7.2 x 6.7 x 15.5 x 13.9 x 12.8 x

Amdocs Limited $8,205 $7,071 $54.57 89% 1.9 x 1.9 x 1.8 x 9.3 x 8.9 x 8.4 x

Synopsys Inc. $6,908 $6,148 $45.61 86% 2.7 x 2.5 x 2.4 x 10.5 x 8.9 x 9.3 x

Constellation Software Inc. $8,811 $9,024 $415.78 96% 5.0 x 4.2 x 3.6 x 19.9 x 16.6 x 14.4 x

PTC Inc. $3,966 $4,361 $34.63 81% 3.6 x 3.6 x 3.7 x 13.0 x 13.0 x 13.6 x

Tyler Technologies, Inc. $5,916 $5,669 $174.32 95% 9.7 x 7.3 x 6.4 x 36.8 x 26.8 x 22.8 x

Allscripts Healthcare Solutions, Inc. $2,907 $3,482 $15.38 97% 2.5 x 2.4 x 2.2 x 14.2 x 12.1 x 10.8 x

Mentor Graphics Corp. $2,164 $2,145 $18.42 66% 1.8 x 1.8 x 1.6 x 8.3 x 8.0 x 7.2 x

Blackbaud Inc. $3,035 $3,261 $65.86 96% 5.1 x 4.4 x 4.1 x 22.5 x 19.1 x 17.4 x

Bottomline Technologies (de), Inc. $1,109 $1,143 $29.73 94% 3.4 x 3.0 x 2.7 x 14.1 x 13.7 x 11.9 x

Synchronoss Technologies, Inc. $1,555 $1,588 $35.23 67% 2.7 x 2.3 x 2.0 x 7.9 x 6.7 x 5.5 x

PROS Holdings, Inc. $684 $642 $23.04 83% 3.8 x 3.9 x 3.3 x NM NM NM

Quality Systems Inc. $981 $870 $16.12 86% 1.7 x 1.6 x 1.5 x 11.8 x 10.3 x 8.6 x

Computer Modelling Group Ltd. $508 $460 $6.47 62% 7.8 x 7.8 x 6.9 x 16.6 x 15.0 x 13.1 x

BroadSoft, Inc. $1,019 $938 $35.36 86% 3.5 x 2.9 x 2.4 x 16.1 x 11.9 x 8.3 x

Epiq Systems, Inc. $490 $877 $13.07 68% 1.7 x 1.6 x NM 8.3 x 7.5 x NM

Mean 4.1x 3.8x 3.5x 16.6x 12.8x 11.7x

Median 3.5x 3.0x 3.0x 14.1x 12.1x 11.3x

Horizontal On-Premise Apps

Intuit Inc. $25,476 $25,852 $96.50 88% 5.7 x 5.5 x 4.9 x 17.2 x 14.5 x 12.4 x

Open Text Corporation $5,816 $6,694 $47.93 78% 3.7 x 3.6 x 3.5 x 10.9 x 10.0 x 9.7 x

Nuance Communications, Inc. $6,181 $7,768 $19.89 91% 4.0 x 3.8 x 3.7 x 12.4 x 11.1 x 10.4 x

Manhattan Associates, Inc. $4,835 $4,716 $66.17 85% 8.5 x 7.7 x 7.0 x 26.0 x 23.3 x 20.9 x

Verint Systems Inc. $2,525 $2,912 $40.56 61% 2.5 x 2.4 x 2.2 x 10.2 x 9.4 x 8.5 x

Pegasystems Inc. $2,102 $1,878 $27.50 91% 2.8 x 2.5 x 2.2 x 16.8 x 14.4 x 11.8 x

Interactive Intelligence Group Inc. $682 $652 $31.42 62% 1.7 x 1.5 x 1.3 x 31.7 x 36.4 x 23.2 x

SPS Commerce, Inc. $1,167 $1,044 $70.21 90% 6.6 x 5.4 x 4.5 x 47.7 x 39.0 x 30.1 x

The Descartes Systems Group Inc $1,520 $1,467 $20.07 97% 7.9 x 7.1 x 6.3 x 24.4 x 21.0 x 18.1 x

QAD Inc. $378 $267 $20.52 71% 1.0 x 0.9 x 0.9 x 11.7 x 9.5 x 8.4 x

Mean 4.4x 4.0x 3.7x 20.9x 18.9x 15.3x

Median 3.8x 3.7x 3.6x 17.0x 14.4x 12.1x

Bellwether SW

Microsoft Corporation $443,169 $382,664 $55.48 98% 4.2 x 4.0 x 3.8 x 15.8 x 11.3 x 9.8 x

International Business Machines Corporation $133,507 $163,756 $137.62 78% 2.0 x 2.0 x 2.0 x 7.6 x 7.6 x 7.3 x

Oracle Corporation $153,471 $143,484 $36.53 81% 3.8 x 3.8 x 3.7 x 8.3 x 8.2 x 8.1 x

SAP SE $95,929 $102,107 $80.25 98% 4.6 x 4.3 x 4.1 x 13.0 x 12.3 x 11.4 x

Mean 3.6x 3.6x 3.4x 11.2x 9.9x 9.2x

Median 4.0x 3.9x 3.8x 10.6x 9.8x 9.0x

EV to Revenue

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Software Public Comps - Valuation (cont.)($ in millions, except per share data) Share Price

Equity Enterprise as of % of EV to EBITDA

Software Value Value 12/31/2015 52-Wk High 2015E 2016E 2017E 2015E 2016E 2017E

Legacy Infrastructure

CA, Inc. $11,901 $11,239 $28.56 85% 2.8 x 2.8 x 2.7 x 7.4 x 6.8 x NM

CommVault Systems, Inc. $1,783 $1,383 $39.35 75% 2.4 x 2.2 x 2.1 x 20.6 x 15.3 x 10.9 x

Fair Isaac Corporation $2,927 $3,449 $94.18 97% 4.1 x 3.9 x 3.7 x 17.5 x 14.5 x 13.7 x

Progress Software Corporation $1,205 $1,131 $24.00 79% 2.7 x 2.6 x 2.5 x 8.5 x 8.1 x 7.6 x

Tangoe, Inc. $331 $299 $8.39 56% 1.4 x 1.3 x 1.2 x 15.4 x 13.2 x 8.9 x

IntraLinks Holdings, Inc. $529 $550 $9.07 71% 2.0 x 1.9 x 1.7 x 13.9 x 12.4 x NM

EMC Corporation $49,789 $51,102 $25.68 85% 2.1 x 2.0 x 1.9 x 8.2 x 7.6 x 7.4 x

Citrix Systems, Inc. $11,637 $11,881 $75.65 90% 3.7 x 3.6 x 3.4 x 11.9 x 11.6 x 10.6 x

Teradata Corporation $3,514 $3,350 $26.42 56% 1.3 x 1.4 x 1.4 x 6.1 x 5.8 x 5.6 x

Internap Corporation $354 $713 $6.40 60% 2.2 x 2.1 x 2.0 x 8.8 x 7.7 x 6.8 x

Mean 2.5x 2.4x 2.3x 11.8x 10.3x 8.9x

Median 2.3x 2.2x 2.0x 10.4x 9.9x 8.3x

Cloud Infrastructure

VMware, Inc. $23,817 $18,100 $56.57 61% 2.7 x 2.5 x 2.3 x 7.7 x 7.6 x 7.1 x

Red Hat, Inc. $15,138 $14,731 $82.81 98% 7.5 x 6.5 x 5.7 x 28.3 x 24.5 x 21.7 x

Imperva Inc. $1,990 $1,736 $63.31 81% 7.6 x 6.0 x 4.8 x NM NM 46.1 x

LogMeIn, Inc. $1,682 $1,436 $67.10 89% 5.3 x 4.5 x 3.9 x 21.2 x 18.5 x 14.7 x

Akamai Technologies, Inc. $9,365 $9,316 $52.63 67% 4.2 x 3.8 x 3.4 x 10.5 x 9.6 x 8.3 x

Equinix, Inc. $18,739 $23,040 $302.40 99% 8.5 x 7.2 x 6.3 x 18.1 x 15.3 x 13.3 x

Rackspace Hosting, Inc. $3,410 $3,530 $25.32 45% 1.8 x 1.6 x 1.4 x 5.2 x 4.7 x 4.3 x

Hortonworks, Inc. $1,012 $899 $21.90 73% 7.5 x 4.8 x 3.3 x NM NM NM

MicroStrategy Inc. $2,038 $1,581 $179.29 79% 3.0 x 2.8 x 2.7 x 10.1 x 9.1 x 7.5 x

Mean 5.3x 4.4x 3.8x 14.4x 12.8x 15.4x

Median 5.3x 4.5x 3.4x 10.5x 9.6x 10.8x

Security

Symantec Corporation $14,186 $12,569 $21.00 77% 2.3 x 3.5 x 3.4 x 7.2 x 9.5 x 8.9 x

FireEye, Inc. $3,330 $2,858 $20.74 37% 4.6 x 3.5 x 2.8 x NM NM NM

Fortinet Inc. $5,369 $4,461 $31.17 62% 4.4 x 3.6 x 3.0 x 27.0 x 21.1 x 16.1 x

VASCO Data Security International Inc. $662 $478 $16.73 48% 2.0 x 2.1 x 1.8 x 8.0 x 9.6 x 7.1 x

Zix Corporation $282 $258 $5.08 88% 4.7 x 4.2 x 3.6 x 17.8 x 14.5 x NM

Splunk, Inc. $7,628 $6,679 $58.81 77% 10.3 x 7.8 x 6.0 x NM NM 65.8 x

Barracuda Networks, Inc. $997 $784 $18.68 40% 2.5 x 2.3 x 2.1 x 10.8 x 14.1 x 7.3 x

Proofpoint, Inc. $2,626 $2,550 $65.01 86% 9.7 x 7.4 x 5.8 x NM NM 69.7 x

Qualys, Inc. $1,132 $957 $33.09 60% 5.8 x 4.7 x 3.9 x 17.6 x 14.7 x 11.9 x

Palo Alto Networks, Inc. $15,132 $14,863 $176.14 88% 13.1 x 9.7 x 7.6 x 71.4 x 39.0 x 27.1 x

Infoblox Inc. $1,101 $750 $18.39 66% 2.1 x 1.9 x 1.6 x 16.0 x 14.6 x 10.2 x

Mean 5.6x 4.6x 3.8x 22.0x 17.1x 24.9x

Median 4.6x 3.6x 3.4x 16.8x 14.6x 11.9x

EV to Revenue

2/2/2016 125

Software Public Comps – Operating Metrics

($ in millions)

EBITDA Margin

Software 2015E 2016E 2017E % CAGR 2015E 2016E 2017E % CAGR 2015E 2016E 2017E

High Growth SaaS

SS&C Technologies Holdings, Inc. $1,027 $1,473 $1,610 25% $450 $635 $724 27% 44% 43% 45%

Ellie Mae, Inc. $250 $306 $388 25% $66 $83 $120 35% 26% 27% 31%

The Ultimate Software Group, Inc. $617 $759 $924 22% $148 $189 $224 23% 24% 25% 24%

Cvent, Inc. $187 $231 $282 23% $24 $25 $36 23% 13% 11% 13%

RingCentral, Inc. $293 $365 $442 23% $6 $20 $37 148% 2% 5% 8%

Fleetmatics Group PLC $285 $344 $405 19% $92 $114 $141 24% 32% 33% 35%

Paycom Software, Inc. $221 $289 $384 32% $48 $60 $85 34% 22% 21% 22%

salesforce.com, inc. $6,649 $8,082 $9,692 21% $1,221 $1,647 $2,049 30% 18% 20% 21%

Workday, Inc. $1,158 $1,548 $2,036 33% $76 $117 $198 61% 7% 8% 10%

NetSuite Inc. $739 $958 $1,241 30% $53 $70 $102 38% 7% 7% 8%

Tableau Software, Inc. $651 $871 $1,144 33% $83 $113 $184 49% 13% 13% 16%

Cornerstone OnDemand, Inc. $342 $439 $537 25% $5 $37 $0 (100%) 1% 9% 0%

Demandware, Inc. $234 $301 $387 29% $18 $25 $35 39% 8% 8% 9%

Benefitfocus, Inc. $183 $229 $277 23% ($35) ($24) ($2) (79%) NM NM NM

Marketo, Inc. $210 $277 $360 31% ($18) ($15) $1 NA NM NM 0%

Zendesk, Inc. $206 $289 $385 37% ($6) $2 $24 NA NM 1% 6%

athenahealth, Inc. $925 $1,109 $1,333 20% $179 $230 $284 26% 19% 21% 21%

Zillow Group, Inc. $653 $795 $1,003 24% $94 $146 $220 53% 14% 18% 22%

Textura Corporation $87 $114 $146 30% $10 $21 $34 90% 11% 18% 23%

Veeva Systems Inc. $405 $508 $620 24% $116 $150 $191 28% 29% 30% 31%

Callidus Software Inc. $173 $212 $251 20% $18 $26 $33 34% 10% 12% 13%

ServiceNow, Inc. $1,001 $1,371 $1,810 34% $153 $248 $386 59% 15% 18% 21%

Mean $749.9 $948.6 $1,166.1 26% $127.3 $178.1 $232.1 32% 17% 17% 18%

Median $317.8 $401.9 $489.4 25% $59.4 $76.5 $110.7 34% 14% 18% 21%

Low Growth SaaS

Bazaarvoice, Inc. $197 $210 $227 7% ($4) $7 $12 NA NM 3% 5%

Solera Holdings Inc. $1,203 $1,302 $1,381 7% $459 $503 $547 9% 38% 39% 40%

Aspen Technology, Inc. $458 $509 $542 9% $217 $232 $259 9% 47% 46% 48%

Guidewire Software, Inc. $390 $431 $492 12% $72 $82 $110 24% 18% 19% 22%

RealPage, Inc. $466 $524 $585 12% $90 $105 $124 17% 19% 20% 21%

Envestnet, Inc. $418 $582 $695 29% $75 $110 $152 42% 18% 19% 22%

Qlik Technologies, Inc. $616 $718 $835 16% $58 $87 $118 43% 9% 12% 14%

Medidata Solutions, Inc. $399 $474 $558 18% $91 $116 $147 27% 23% 25% 26%

Mean $518.3 $593.9 $664.4 14% $132.4 $155.1 $183.6 24% 25% 23% 25%

Median $438.1 $516.5 $571.7 12% $82.7 $107.2 $135.2 24% 19% 19% 22%

REVENUE EBITDA

2/2/2016 126

Software Public Comps – Operating Metrics (cont.)($ in millions)

EBITDA Margin

Software 2015E 2016E 2017E % CAGR 2015E 2016E 2017E % CAGR 2015E 2016E 2017E

Vertical On-Premise Apps

Autodesk, Inc. $2,486 $2,114 $2,433 (1%) $318 ($216) $41 (64%) 13% NM 2%

Ansys, Inc. $950 $1,029 $1,112 8% $482 $535 $582 10% 51% 52% 52%

Amdocs Limited $3,662 $3,809 $3,982 4% $761 $796 $842 5% 21% 21% 21%

Synopsys Inc. $2,269 $2,412 $2,550 6% $584 $693 $660 6% 26% 29% 26%

Constellation Software Inc. $1,819 $2,142 $2,483 17% $454 $543 $625 17% 25% 25% 25%

PTC Inc. $1,222 $1,200 $1,167 (2%) $335 $336 $320 (2%) 27% 28% 27%

Tyler Technologies, Inc. $583 $776 $891 24% $154 $211 $248 27% 26% 27% 28%

Allscripts Healthcare Solutions, Inc. $1,399 $1,476 $1,553 5% $246 $288 $322 15% 18% 19% 21%

Mentor Graphics Corp. $1,179 $1,223 $1,306 5% $257 $268 $296 7% 22% 22% 23%

Blackbaud Inc. $643 $740 $798 11% $145 $171 $187 14% 23% 23% 23%

Bottomline Technologies (de), Inc. $337 $379 $417 11% $81 $84 $96 9% 24% 22% 23%

Synchronoss Technologies, Inc. $578 $679 $797 17% $200 $235 $288 20% 35% 35% 36%

PROS Holdings, Inc. $171 $164 $193 6% ($14) ($29) ($13) (6%) NM NM NM

Quality Systems Inc. $501 $535 $594 9% $74 $85 $102 17% 15% 16% 17%

Computer Modelling Group Ltd. $59 $59 $67 7% $28 $31 $35 12% 47% 52% 52%

BroadSoft, Inc. $271 $325 $386 19% $58 $79 $114 39% 22% 24% 29%

Epiq Systems, Inc. $501 $547 $0 (100%) $106 $117 $0 (100%) 21% 21% NA

Mean $1,095.9 $1,153.5 $1,219.4 3% $251.0 $248.5 $279.2 2% 26% 28% 27%

Median $642.6 $776.0 $891.4 7% $199.9 $211.3 $248.3 10% 23% 24% 25%

Horizontal On-Premise Apps

Intuit Inc. $4,498 $4,735 $5,235 8% $1,504 $1,785 $2,085 18% 33% 38% 40%

Open Text Corporation $1,827 $1,868 $1,892 2% $616 $672 $691 6% 34% 36% 37%

Nuance Communications, Inc. $1,958 $2,019 $2,108 4% $626 $698 $744 9% 32% 35% 35%

Manhattan Associates, Inc. $556 $612 $671 10% $181 $203 $226 12% 33% 33% 34%

Verint Systems Inc. $1,171 $1,232 $1,302 5% $285 $310 $341 9% 24% 25% 26%

Pegasystems Inc. $671 $752 $854 13% $112 $130 $159 19% 17% 17% 19%

Interactive Intelligence Group Inc. $388 $440 $515 15% $21 $18 $28 17% 5% 4% 5%

SPS Commerce, Inc. $158 $194 $233 21% $22 $27 $35 26% 14% 14% 15%

The Descartes Systems Group Inc $185 $207 $233 12% $60 $70 $81 16% 32% 34% 35%

QAD Inc. $280 $290 $302 4% $23 $28 $32 18% 8% 10% 11%

Mean $1,169.2 $1,234.9 $1,334.6 9% $345.0 $394.2 $442.3 15% 23% 25% 26%

Median $613.4 $682.0 $762.6 9% $146.5 $166.6 $192.6 17% 28% 29% 30%

Bellwether SW

Microsoft Corporation $90,791 $95,104 $99,904 5% $24,236 $33,839 $38,964 27% 27% 36% 39%

International Business Machines Corporation $81,818 $79,959 $79,938 (1%) $21,470 $21,416 $22,343 2% 26% 27% 28%

Oracle Corporation $37,556 $37,787 $38,986 2% $17,290 $17,432 $17,753 1% 46% 46% 46%

SAP SE $22,387 $23,560 $24,822 5% $7,869 $8,322 $8,922 6% 35% 35% 36%

Mean $58,137.6 $59,102.6 $60,912.8 3% $17,716.3 $20,252.4 $21,995.4 9% 34% 36% 37%

Median $59,686.6 $58,873.1 $59,462.3 3% $19,380.0 $19,424.4 $20,047.6 4% 31% 35% 37%

REVENUE EBITDA

2/2/2016 127

Software Public Comps – Operating Metrics (cont.)($ in millions)

EBITDA Margin

Software 2015E 2016E 2017E % CAGR 2015E 2016E 2017E % CAGR 2015E 2016E 2017E

Legacy Infrastructure

CA, Inc. $4,007 $4,079 $4,108 1% $1,520 $1,644 $0 (100%) 38% 40% 0%

CommVault Systems, Inc. $579 $615 $673 8% $67 $90 $127 37% 12% 15% 19%

Fair Isaac Corporation $849 $883 $928 5% $197 $238 $252 13% 23% 27% 27%

Progress Software Corporation $413 $429 $446 4% $134 $140 $149 6% 32% 33% 33%

Tangoe, Inc. $220 $235 $260 9% $19 $23 $34 31% 9% 10% 13%

IntraLinks Holdings, Inc. $275 $294 $327 9% $40 $44 $0 (100%) 14% 15% 0%

EMC Corporation $24,895 $25,756 $26,967 4% $6,236 $6,755 $6,906 5% 25% 26% 26%

Citrix Systems, Inc. $3,248 $3,314 $3,454 3% $996 $1,020 $1,120 6% 31% 31% 32%

Teradata Corporation $2,517 $2,395 $2,372 (3%) $552 $575 $601 4% 22% 24% 25%

Internap Corporation $321 $337 $353 5% $81 $92 $104 14% 25% 27% 30%

Mean $3,732.5 $3,833.7 $3,988.8 4% $984.2 $1,062.2 $929.2 -8% 23% 25% 21%

Median $714.0 $749.0 $800.4 4% $165.4 $189.1 $137.6 6% 24% 27% 25%

Cloud Infrastructure

VMware, Inc. $6,626 $7,230 $7,817 9% $2,356 $2,377 $2,541 4% 36% 33% 33%

Red Hat, Inc. $1,971 $2,271 $2,587 15% $521 $601 $679 14% 26% 26% 26%

Imperva Inc. $230 $290 $360 25% $8 $18 $38 123% 3% 6% 10%

LogMeIn, Inc. $270 $322 $371 17% $68 $78 $98 20% 25% 24% 26%

Akamai Technologies, Inc. $2,199 $2,432 $2,756 12% $886 $974 $1,125 13% 40% 40% 41%

Equinix, Inc. $2,708 $3,193 $3,632 16% $1,271 $1,507 $1,738 17% 47% 47% 48%

Rackspace Hosting, Inc. $2,000 $2,220 $2,464 11% $673 $750 $831 11% 34% 34% 34%

Hortonworks, Inc. $121 $189 $274 51% ($86) ($78) ($40) (32%) NM NM NM

MicroStrategy Inc. $527 $560 $592 6% $157 $173 $211 16% 30% 31% 36%

Mean $1,850.1 $2,078.7 $2,317.0 18% $650.4 $711.1 $802.2 21% 30% 30% 32%

Median $1,970.5 $2,220.4 $2,464.3 15% $521.4 $600.9 $678.7 14% 32% 32% 33%

Security

Symantec Corporation $5,450 $3,637 $3,722 (17%) $1,751 $1,317 $1,407 (10%) 32% 36% 38%

FireEye, Inc. $625 $820 $1,017 28% ($200) ($149) ($59) (46%) NM NM NM

Fortinet Inc. $1,009 $1,249 $1,478 21% $165 $211 $277 30% 16% 17% 19%

VASCO Data Security International Inc. $240 $231 $260 4% $60 $50 $67 6% 25% 21% 26%

Zix Corporation $55 $61 $72 15% $14 $18 $0 (100%) 26% 29% 0%

Splunk, Inc. $652 $856 $1,111 31% $38 $57 $101 63% 6% 7% 9%

Barracuda Networks, Inc. $309 $338 $378 11% $72 $55 $107 22% 23% 16% 28%

Proofpoint, Inc. $264 $343 $441 29% $4 $11 $37 200% 2% 3% 8%

Qualys, Inc. $164 $202 $247 23% $54 $65 $81 22% 33% 32% 33%

Palo Alto Networks, Inc. $1,133 $1,533 $1,964 32% $208 $381 $549 62% 18% 25% 28%

Mean $990.1 $926.9 $1,068.9 17% $216.7 $201.7 $256.7 25% 20% 21% 21%

Median $466.9 $581.2 $728.9 22% $56.9 $56.4 $91.0 22% 23% 21% 26%

REVENUE EBITDA

2/2/2016 128

Internet Public Comps – Valuation($ in millions, except per share data)

Equity Enterprise 12/31/15 % of 52- EV to Revenue EV to EBTIDA

Internet Value Value Price Wk High 2015E 2016E 2017E 2015E 2016E 2017E

Search & Content

Alphabet Inc. $528,448 $466,033 $778.01 97% 6.3 x 5.6 x 4.8 x 15.7 x 13.3 x 11.6 x

Yahoo! Inc. $31,409 $26,778 $33.26 65% 6.6 x 6.9 x 6.7 x 28.9 x 30.7 x 27.4 x

IAC/InterActiveCorp $5,331 $5,536 $60.05 71% 1.7 x 1.7 x 1.6 x 11.5 x 9.5 x 8.2 x

Yelp Inc. $2,167 $1,798 $28.80 49% 3.3 x 2.6 x 2.1 x 24.5 x 16.8 x 11.9 x

WebMD Health Corp. $1,781 $1,972 $48.30 97% 3.1 x 2.9 x 2.6 x 10.5 x 9.2 x 8.1 x

Bankrate, Inc. $1,322 $1,475 $13.30 84% 2.7 x 3.6 x 3.5 x 9.5 x 10.5 x 9.8 x

Angie's List, Inc. $547 $548 $9.35 83% 1.6 x 1.5 x 1.4 x 19.5 x 13.8 x 11.5 x

Mean 3.6x 3.5x 3.2x 17.1x 14.9x 12.6x

Median 3.1x 2.9x 2.6x 15.7x 13.3x 11.5x

Social Media

Facebook, Inc. $295,978 $280,270 $104.66 95% 16.1 x 11.6 x 8.8 x 25.7 x 19.0 x 14.4 x

Twitter, Inc. $15,803 $13,916 $23.14 43% 6.3 x 4.5 x 3.4 x 25.8 x 17.1 x 12.6 x

LinkedIn Corporation $29,505 $27,557 $225.08 81% 9.2 x 7.1 x 5.6 x 36.7 x 26.7 x 19.4 x

Mean 10.5x 7.7x 5.9x 29.4x 20.9x 15.4x

Median 9.2x 7.1x 5.6x 25.8x 19.0x 14.4x

eCommerce

Amazon.com, Inc. $316,832 $320,991 $675.89 97% 3.0 x 2.5 x 2.1 x 29.5 x 21.8 x 16.6 x

eBay Inc. $32,994 $35,132 $27.48 41% 4.1 x 3.9 x 3.7 x 10.0 x 9.5 x 8.3 x

Alibaba Group Holding Limited $204,185 $200,839 $81.27 77% 13.7 x 10.6 x 8.4 x 26.6 x 21.3 x 16.9 x

Wayfair Inc. $4,006 $3,681 $47.62 84% 1.7 x 1.2 x 0.9 x NM NM 46.1 x

Stamps.com Inc. $1,820 $1,722 $109.61 96% 8.5 x 5.9 x 5.0 x 24.5 x 19.4 x 15.0 x

LendingTree, Inc. $1,095 $989 $89.28 64% 3.9 x 3.1 x 2.5 x 25.1 x 18.6 x 14.0 x

1-800-Flowers.com Inc. $472 $728 $7.28 54% 0.6 x 0.6 x NM 8.9 x 7.3 x NM

Mean 5.1x 4.0x 3.8x 20.8x 16.3x 19.5x

Median 3.9x 3.1x 3.1x 24.8x 19.0x 15.8x

Media

Netflix, Inc. $48,885 $48,697 $114.38 86% 7.2 x 5.6 x 4.5 x NM NM 42.2 x

Zynga, Inc. $2,500 $1,431 $2.68 86% 1.9 x 1.9 x 1.7 x 65.2 x 15.5 x 10.6 x

The Priceline Group Inc. $63,472 $65,863 $1,274.95 86% 7.2 x 6.2 x 5.3 x 17.8 x 15.1 x 12.8 x

Gogo Inc. $1,528 $1,721 $17.80 77% 3.5 x 2.9 x 2.4 x 50.6 x 29.8 x 16.5 x

Global Eagle Entertainment Inc. $775 $629 $9.87 62% 1.5 x 1.3 x 1.2 x 12.8 x 9.2 x 6.9 x

Mean 4.2x 3.6x 3.0x 36.6x 17.4x 17.8x

Median 3.5x 2.9x 2.4x 34.2x 15.3x 12.8x

2/2/2016 129

Internet Public Comps – Valuation (cont.)

($ in millions, except per share data)

Equity Enterprise 12/31/15 % of 52- EV to Revenue EV to EBTIDA

Internet Value Value Price Wk High 2015E 2016E 2017E 2015E 2016E 2017E

Marketplace

Groupon, Inc. $1,886 $1,179 $3.07 37% 0.4 x 0.4 x 0.4 x 5.0 x 11.1 x 5.9 x

Shutterstock, Inc. $1,167 $885 $32.34 44% 2.1 x 1.7 x 1.5 x 10.6 x 8.8 x 6.8 x

Shutterfly, Inc. $1,566 $1,815 $44.56 91% 1.7 x 1.5 x 1.4 x 9.3 x 7.8 x 6.8 x

GrubHub Inc. $2,055 $1,760 $24.20 50% 4.9 x 3.9 x 3.2 x 17.2 x 14.1 x 10.9 x

Etsy, Inc. $926 $650 $8.26 23% 2.4 x 1.9 x 1.5 x 23.5 x 18.2 x 13.4 x

TrueCar, Inc. $789 $692 $9.54 41% 2.6 x 2.2 x 1.9 x NM 34.7 x 17.6 x

The Priceline Group Inc. $63,472 $65,863 $1,274.95 86% 7.2 x 6.2 x 5.3 x 17.8 x 15.1 x 12.8 x

TripAdvisor Inc. $12,292 $11,894 $85.25 91% 8.0 x 7.0 x 5.9 x 25.7 x 22.3 x 17.9 x

Expedia Inc. $18,678 $20,295 $124.30 88% 3.0 x 2.4 x 2.1 x 17.7 x 12.5 x 10.0 x

Mean 3.6x 3.0x 2.6x 15.9x 16.1x 11.3x

Median 2.6x 2.2x 1.9x 17.4x 14.1x 10.9x

Data & Measurement

Nielsen Holdings plc $16,965 $24,147 $46.60 94% 3.9 x 3.8 x 3.6 x 13.0 x 12.3 x 11.5 x

Equifax Inc. $13,195 $14,458 $111.37 97% 5.4 x 5.1 x 4.7 x 15.5 x 14.1 x 12.9 x

IHS Inc. $8,074 $9,918 $118.43 88% 4.3 x 4.2 x 4.0 x 13.5 x 12.7 x 11.8 x

Dun & Bradstreet Corp. $3,755 $5,232 $103.93 76% 3.2 x 3.0 x 2.9 x 10.8 x 9.9 x 9.4 x

comScore, Inc. $1,604 $1,493 $41.15 63% 4.0 x 3.5 x 2.9 x 16.3 x 14.5 x 11.8 x

Mean 4.2x 3.9x 3.6x 13.8x 12.7x 11.5x

Median 4.0x 3.8x 3.6x 13.5x 12.7x 11.8x

Ad Tech

Marketo, Inc. $1,243 $1,137 $28.71 81% 5.4 x 4.1 x 3.2 x NM NM NM

Constant Contact, Inc. $942 $761 $29.24 68% 2.1 x 1.8 x NM 10.5 x 8.3 x NM

The Rubicon Project, Inc. $730 $650 $16.45 80% 2.6 x 1.9 x 1.5 x 14.8 x 11.8 x 7.7 x

TubeMogul, Inc. $477 $394 $13.60 58% 2.3 x 1.8 x 1.5 x NM NM 21.8 x

Rocket Fuel Inc. $150 $151 $3.49 21% 0.3 x 0.3 x 0.3 x NM 15.6 x 6.6 x

Mean 2.5x 2.0x 1.6x 12.7x 11.9x 12.0x

Median 2.3x 1.8x 1.5x 12.7x 11.8x 7.7x

2/2/2016 130

Internet Public Comps – Operating Metrics

($ in millions, except per share data)

EBITDA EBITDA Margin

Internet 2015E 2016E 2017E % CAGR 2015E 2016E 2017E % CAGR 2015E 2016E 2017E

Search & Content

Alphabet Inc. $73,403 $83,825 $96,909 15% $29,722 $35,080 $40,287 16% 40% 42% 42%

Yahoo! Inc. $4,042 $3,854 $3,967 (1%) $926 $872 $977 3% 23% 23% 25%

IAC/InterActiveCorp $3,249 $3,297 $3,553 5% $483 $580 $678 19% 15% 18% 19%

Yelp Inc. $548 $688 $861 25% $73 $107 $152 44% 13% 16% 18%

WebMD Health Corp. $634 $691 $748 9% $189 $213 $244 14% 30% 31% 33%

Bankrate, Inc. $549 $408 $427 (12%) $155 $140 $150 (1%) 28% 34% 35%

Angie's List, Inc. $346 $367 $385 6% $28 $40 $48 30% 8% 11% 12%

Mean $11,825 $13,304 $15,265 7% $4,510.8 $5,290.2 $6,076.3 18% 23% 25% 26%

Median $634 $691 $861 6% $188.5 $213.4 $243.9 16% 23% 23% 25%

Social Media

Facebook, Inc. $17,448 $24,094 $31,806 35% $10,884 $14,776 $19,525 34% 62% 61% 61%

Twitter, Inc. $2,217 $3,114 $4,080 36% $539 $812 $1,105 43% 24% 26% 27%

LinkedIn Corporation $2,987 $3,906 $4,924 28% $750 $1,034 $1,421 38% 25% 26% 29%

Mean $7,551 $10,371 $13,603 33% $4,057.6 $5,540.7 $7,350.4 38% 37% 38% 39%

Median $2,987 $3,906 $4,924 35% $749.9 $1,033.6 $1,420.9 38% 25% 26% 29%

eCommerce

Amazon.com, Inc. $107,238 $129,594 $155,148 20% $10,881 $14,715 $19,356 33% 10% 11% 12%

eBay Inc. $8,585 $8,993 $9,458 5% $3,500 $3,706 $4,222 10% 41% 41% 45%

Alibaba Group Holding Limited $14,655 $18,900 $23,777 27% $7,561 $9,415 $11,852 25% 52% 50% 50%

Wayfair Inc. $2,185 $3,083 $3,937 34% ($22) $10 $80 NM NM 0% 2%

Stamps.com Inc. $203 $290 $347 31% $70 $89 $115 28% 35% 31% 33%

LendingTree, Inc. $253 $324 $400 26% $39 $53 $70 34% 16% 16% 18%

1-800-Flowers.com Inc. $1,183 $1,233 $0 (100%) $82 $100 $0 (100%) 7% 8% NA

Mean $19,186 $23,202 $27,581 6% $3,158.7 $4,012.5 $5,099.3 5% 27% 23% 27%

Median $2,185 $3,083 $3,937 26% $81.5 $100.0 $114.6 26% 25% 16% 25%

Media

Netflix, Inc. $6,785 $8,692 $10,857 26% $479 $532 $1,154 55% 7% 6% 11%

Zynga, Inc. $738 $773 $851 7% $22 $92 $135 148% 3% 12% 16%

The Priceline Group Inc. $9,197 $10,667 $12,328 16% $3,690 $4,351 $5,141 18% 40% 41% 42%

Gogo Inc. $495 $592 $710 20% $34 $58 $105 75% 7% 10% 15%

Global Eagle Entertainment Inc. $423 $480 $541 13% $49 $69 $91 36% 12% 14% 17%

Mean $3,528 $4,241 $5,057 16% $854.9 $1,020.5 $1,325.1 66% 14% 17% 20%

Median $738 $773 $851 16% $49.3 $92.4 $134.6 55% 7% 12% 16%

Revenue

2/2/2016 131

Internet Public Comps – Operating Metrics (cont.)

($ in millions, except per share data)

EBITDA EBITDA Margin

Internet 2015E 2016E 2017E % CAGR 2015E 2016E 2017E % CAGR 2015E 2016E 2017E

Marketplace

Groupon, Inc. $3,050 $2,956 $3,131 1% $238 $106 $200 (8%) 8% 4% 6%

Shutterstock, Inc. $427 $515 $603 19% $83 $100 $129 24% 20% 20% 21%

Shutterfly, Inc. $1,056 $1,189 $1,330 12% $194 $233 $267 17% 18% 20% 20%

GrubHub Inc. $361 $451 $542 23% $102 $125 $162 26% 28% 28% 30%

Etsy, Inc. $272 $348 $427 25% $28 $36 $49 32% 10% 10% 11%

TrueCar, Inc. $261 $309 $360 17% $8 $20 $39 117% 3% 6% 11%

The Priceline Group Inc. $9,197 $10,667 $12,328 16% $3,690 $4,351 $5,141 18% 40% 41% 42%

TripAdvisor Inc. $1,483 $1,709 $2,016 17% $462 $532 $664 20% 31% 31% 33%

Expedia Inc. $6,668 $8,550 $9,746 21% $1,150 $1,621 $2,033 33% 17% 19% 21%

Mean $2,531 $2,966 $3,387 17% $661.8 $791.7 $964.8 31% 20% 20% 22%

Median $1,056 $1,189 $1,330 17% $194.4 $125.2 $200.0 24% 18% 20% 21%

Data & Measurement

Nielsen Holdings plc $6,156 $6,375 $6,694 4% $1,855 $1,964 $2,094 6% 30% 31% 31%

Equifax Inc. $2,661 $2,860 $3,068 7% $930 $1,024 $1,119 10% 35% 36% 36%

IHS Inc. $2,324 $2,337 $2,464 3% $737 $779 $840 7% 32% 33% 34%

Dun & Bradstreet Corp. $1,657 $1,746 $1,815 5% $484 $530 $559 7% 29% 30% 31%

comScore, Inc. $371 $431 $519 18% $92 $103 $127 18% 25% 24% 24%

Mean $2,634 $2,750 $2,912 8% $819.6 $879.8 $947.6 10% 30% 31% 31%

Median $2,324 $2,337 $2,464 5% $737.3 $778.9 $839.8 7% 30% 31% 31%

Ad Tech

Marketo, Inc. $210 $277 $360 31% ($18) ($15) $1 NM NM NM 0%

Constant Contact, Inc. $369 $420 $0 (100%) $73 $92 $0 NM 20% 22% NA

The Rubicon Project, Inc. $248 $337 $431 32% $44 $55 $84 38% 18% 16% 19%

TubeMogul, Inc. $174 $217 $260 22% ($1) $3 $18 NM NM 1% 7%

Rocket Fuel Inc. $457 $476 $497 4% ($4) $10 $23 NM NM 2% 5%

Mean $291 $345 $309 -2% $18.6 $29.0 $25.3 38% 19% 10% 8%

Median $248 $337 $360 22% ($0.9) $9.6 $18.1 38% 19% 9% 6%

Revenue