quarterly software sector review 3q 2016 · quarterly software sector review │ 3q 2016 select...

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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2016

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2016

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 2Q 2016

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS OVERVIEW

SOFTWARE PUBLIC COMPARABLES OVERVIEW

TECHNOLOGY IPO OVERVIEW

DEBT MARKET OVERVIEW

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

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

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Infrastructure and Security Software

IT and Tech-enabled Services

Data Center and Managed Services

INTERNET & DIGITAL MEDIA

AdTech and Marketing Solutions

Consumer Internet

Digital Media and Content

eCommerce

Mobile

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

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

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

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

Strategic relationships in India and China

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education

Energy, Power, and Infrastructure

Fintech

Healthcare IT

Public Sector and Non-Profit

Supply Chain, Transportation, and Logistics

Manufacturing

Professional Services

has been acquired byhas been acquired byhas been

recapitalized by has been acquired by has been acquired by

Baarsma B2C trades as:

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

recapitalized byhas received a majority

investment fromhas acquired

mailto:[email protected]




mailto:*[email protected]

PAGE |



CASE STUDY: DAXKO

HW&CO. DEAL CONTACTS

Leading provider of SaaS-based software and services to member-based health and wellness centers, offering end-to-end solutions for club and member management, including engagement and payments solutions.

Charlotte-based private equity firm targeting investments across the business & technology services, communications, and healthcare industries, and currently investing out of its $650 million Pamlico Capital III fund.

San Francisco-based private equity firm targeting investments in the software, tech-enabled services, IT infrastructure, and healthcare sectors, and actively investing out of its $2 billion GI Partners Fund IV fund.

HW&Co.’s TMT Group advised Pamlico Capital and its portfolio company, Daxko, on a majorityrecapitalization transaction led by GI Partners.

2

a portfolio company of

has been recapitalized by

Date Closed:

9/22/2016

Relevant Sectors:

SaaS / Application Software

Fintech / Payments

Non-Profit Software

Health & Wellness

Jeff BistrongManaging Director

[email protected]: (617) 654-2102

Tyler DewingDirector


Priyanka NaithaniVice President


Positions Daxko well to meet the increasingly complex needs of multi-site and multi-purpose health and wellness facility operations and gives GI Partners the ability to leverage Daxko’s market leadership, scale, and history of successful strategic acquisitions as a platform for further industry consolidation.

THE DEAL




PAGE | 3



SELECT SOFTWARE M&A TRANSACTIONS – 3Q 2016

EQT’s pending take-private of Press Ganey

Press Ganey provides patient-experience measurement, performance analytics, and strategic advisory software and servicesfor healthcare organizations across the continuum of care.

Partnering with more than 26,000 healthcare organizations, Press Ganey leads the industry in using data and analytics to helptransform and advance patient-centered care in the US and internationally.

Post acquisition, EQT will leverage its deep platform and healthcare expertise to support Press Ganey’s expansion bothorganically and through strategic acquisitions on a global basis.

Ent. Value: $2,284.5M

Revenue: $344.3M

EV / Rev: 6.6x

EV / EBITDA: 21.4x

Announced

Verizon’s pending acquisition of Fleetmatics

Fleetmatics provides SaaS-based mobile workforce and fleet management software that allows service-based businesses of allsizes to improve the productivity of their mobile workforces.

Serving approximately 38,000 customers and 757,000 subscribed vehicles worldwide, the company’s solutions provide fleetoperators visibility into vehicle location, fuel usage, and other insights that allow clients to increase revenue and reduce costs.

Verizon Telematics plans to combine Fleetmatics with recently acquired Telogis to become a global leader in fleet and mobileworkforce management.

Ent. Value: $2,183.4M

Revenue: $310.7M

EV / Revenue: 7.0x

EV / EBITDA: 25.9x

Announced

Vista Equity Partners’ acquisition of Regulatory DataCorp

Regulatory DataCorp provides counterparty risk and financial regulatory compliance data and software solutions to financialinstitutions and technology companies worldwide.

The company’s solutions are used by Fortune 100 companies across a range of industries and combine comprehensive data, ascalable platform, and tailored analytics to provide precise risk alerts and ongoing monitoring.

Vista Equity Partners’ deep focus on software, data, and tech-enabled businesses will allow Regulatory DataCorp to increasecapital investment in risk and compliance software at a time of significant growth in the industry.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

August 31, 2016

Thoma Bravo’s take-private of Imprivata

Imprivata provides cloud-based, single sign-on and access-management security software for the healthcare sector thatprovides improved workflows, increased data security, and compliance with government regulations.

The company’s mission-critical solutions allow hospitals to identify patients at registration and allow providers to convenientlyaccess patient health information (“PHI”), communicate PHI across devices, and transact PHI for important clinical workflows.

Leveraging its deep experience in both security and healthcare IT, Thoma Bravo bolsters Imprivata’s ability to expand its marketpresence organically by providing additional high-value products and inorganically through strategic acquisitions.

September 16, 2016

Ent. Value: $442.5M

Revenue: $131.1M

EV / Revenue: 3.4x

EV / EBITDA: NA

GE Transportation’s acquisition of ShipXpress

ShipXpress provides cloud-based software solutions that enable transportation, industrial, and commodity trading businesses tooperate efficiently and collaborate with their supply chain partners.

The company works with major North American railroads and Fortune 500 companies to deliver customized transportationmanagement solutions that help businesses manage data, simplify manual processes, and improve analysis.

Post acquisition, GE Transportation will deliver one of the industry’s most advanced and scalable cloud-based solutions bycombing ShipXpress’ software products with GE’s existing sensing technology platform, Predix.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

August 30, 2016

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME

The 10 most active strategic software acquirers registered 66 acquisitions in YTD 2016, with Google and IBM being the most active with 25 between them.

Google has been actively pursuing assets that enhance its enterprise cloud business, while IBM focuses on its stated strategic imperatives – big data and analytics, cloud platform expansion, mobile, social, and security.

Global strategic software M&A registered 359 transactions in 3Q 2016, a slight uptick from a slow 2Q, and demonstrating promising momentum going into 4Q 2016.

Despite M&A volumes being down relative to 2015, both large tech and non-traditional software buyers continue to view M&A as a core growth initiative. However, recent M&A activity suggests that strategics are focusing on bolt-onsrather than large, transformational deals.

412

352 352 333 327 324371

340309

402454 437 434

406

341 359

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

712

510 8 7

3 25 5

5

9

5

89

59 9

7 9

286

10

94

14 8 5 3

12

13

18 310

63

33 1

13

129

8 6

84

12

3

2016 YTD

2015

2014

2013

2012

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

PAGE | 5



SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME

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

The 10 most active software investors completed 42 platform investments YTD 2016, with Vista Equity and Thoma Bravo outpacing their peers with 12 and 7 new platform investments, respectively.

Private equity remains attracted to the software sector as they look to consolidate niche vertical software markets and capitalize on the ongoing shift to the cloud.

Globally, private equity software M&A registered 74 new platform acquisitions in 3Q 2016, representing a 34% increase over 3Q 2015 and a 21% increase over the prior quarter’s strong results.

With private equity dry powder at record high levels and the lending market continuing to exhibit strong interest in high quality software credits, both incumbent software investors and newcomers to the sector are rapidly deploying capital across a broad range of software sectors.

96

2 3 3 1 2 4 3 2

7

3

24 3 5 2

1 3 3

9

5

63 3 4

4 4 3 3

6

5

5 7 7 3 7 4 32

12

7

43 3

4 12 2 4

2016 YTD

2015

2014

2013

2012

4641 38

47 45 43

32

48 47 44

54 5647 50

61

74

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

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control investments only.

PAGE | 6



Pending Apex Technology & PAG Asia Capital Lexmark International, Inc. Printing, imaging, document workflow, and content management software and serv ices. $3,409 1.0x

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

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

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

Pending Genesys Telecommunications Interactive Intelligence Group, Inc. Enterprise -grade business communication and customer engagement software. $1,303 3.2x

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

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

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

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

09/30/16 Document Technologies LLC EPIQ Systems, Inc. eDiscovery solutions and other technology-based legal serv ices. $1,008 1.8x

09/26/16 The Carlyle Group LP exocad GmbH Digital dentistry software that aids in dental restorations. $123 8.5x

09/19/16 TA Associates Radixx International Cloud-based passenger serv ices system software for the airline industry. NA NA

09/16/16 Vista Equity Partners Granicus, Inc. Technology and software platform for creating, managing, and distributing media. NA NA

09/14/16 ATOS SE Anthelio Healthcare Solutions, Inc. IT solutions and BPO software and serv ices for the healthcare industry. $275 NA

09/01/16 KKR Epicor Software Corp. Industry-specific business software, including ERP, HCM, and SCM. $3,300 NA

08/31/16 Sumeru Equity Partners Telesoft Corp. Expense management serv ices for the telecommunications industry. NA NA

08/16/16 Nuance Communications, Inc. TouchCommerce, Inc. Omni-channel engagement software and analytics solutions. $195 NA

08/01/16 Nemetschek SE Design Data Corp. Steel detailing software for the steel industries. $49 NA

07/26/16 Eco City Vehicles Plc Tax Computer Systems Ltd. Software to manage and automate corporation tax compliance processing. $98 5.7x

$785 3.7x

HW&CO. CONFIDENTIAL

DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS

Application Software M&A registered 298 transactions in 3Q 2016, representing a 6% increase over the previous quarter, falling in line with historical averages.

3Q 2016 median reported Application Software M&A revenue multiples were slightly below 2015 and 1H 2016 multiples, though remain in line with historical four year averages.

MEDIAN M&A REVENUE MULTIPLES (REPORTED)

2.4x

1.3x

1.4x 1.5x

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

Private equity continues to be active in Application Software, leading some of the largest sector transactions in 2016.

Notable private equity deals in 3Q 2016 include KKR’s $3.3 billion acquisition of Epicor Software, EQT’s pending $2.3 billion take-private acquisition of Press Ganey, and Silver Lake’s $719 million pending acquisition of Cegid.

MEDIAN

266

298

244 246 252 251

227

282 271

289

272

319 320 316 314

281

298

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

PAGE | 7



42

55

38

49 47

45 46

60

54 53

65

68 70

55

52 51 52

NOTABLE SAAS M&A TRANSACTIONS

4.9x

5.8x

4.6x

5.3x

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x4.9x

5.6x5.4x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL)

SaaS M&A registered 52 acquisitions in 3Q 2016, in line with the past four quarters and down from the quarterly highs of 2015.

Median reported SaaS transaction multiples decreased slightly in 3Q 2016, though remain in line with the upward trend over the past two years, increasing nearly two turns from 4Q 2014 lows.

Both strategic acquirers and private equity firms continue to be active SaaS consolidators, with a particular interest in vertical SaaS applications across a variety of sectors, including Healthcare and Logistics.

In 3Q 2016, Oracle demonstrated its strategic focus on expanding its cloud-based capabilities with the pending $8.7 billion acquisition of NetSuite and the acquisition of Logfire


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

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

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

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

10/03/16 Evolent Health, Inc. Valence Health, Inc. Cloud-based clinical integration and health plan software and serv ices. $247 NA

09/29/16 Thoma Bravo LLC T2 Systems, Inc. Cloud-based parking management and payment software. NA NA

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

09/22/16 Accruent LLC Verisae, Inc. SaaS-based enterprise contract management and facilit ies management software. NA NA

09/18/16 EQT Partners AB XP Solutions, Inc. Cloud-based water infrastructure and flood control software. $49 NA

09/06/16 Oracle Corp. LogFire, Inc. SaaS-based solutions for multi-channel supply chain serv ices. NA NA

08/30/16 GE Transportation ShipXpress, Inc. SaaS-based software solutions for supply chain collaboration. NA NA

08/16/16 Vista Equity Partners Marketo, Inc. SaaS-based engagement marketing software. $1,498 6.6x

07/28/16 Accel-KKR LLC SciQuest, Inc. SaaS-based e-procurement, supply, and materials management platform. $357 3.4x

07/21/16 Hearst Corp. MedHOK, Inc. SaaS-based healthcare compliance software platform. $280 5.1x

07/20/16 Royal Philips NV Wellcentive, Inc. SaaS-based provider of population health management data analytics solutions. $165 11.0x

07/11/16 SalesForce.com Demandware, Inc. Cloud-based ecommerce solutions for retailers and branded manufacturers. $2,670 10.5x

07/07/16 Thoma Bravo LLC Elemica, Inc. Web-based supply chain operating network for process industries. NA NA

07/01/16 Wolters Kluwer NV Enablon SA Sustainability and performance management software for all industries. $278 5.6x

06/14/16 Oracle Corp. Opower, Inc. SaaS-based customer engagement and data analytics solutions for the utility industry. $491 3.2x

06/10/16 Oracle Corp. Textura Corp. SaaS-based project and workforce management software for the construction industry. $616 6.7x

$424 6.7x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

MEDIAN

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

PAGE | 8



NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS

73 74

64

71 74

64 67

72 76

99

89

105

112

102

82

87

99

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL)

Data and Analytics M&A volume remained robust in 3Q 2016, with 99 reported transactions, a 14% increase over 2Q 2016.

3Q 2016 median reported sector transaction multiples decreased, though remain in line with historical averages from the past four years.

Data and Analytics capabilities continues to be a strategic focus area for strategic and private equity backed companies.

In particular, Google was among the most active acquirers, with the acquisitions of Apigee, Speaktoit, and Orbitera highlighting the company‘s increased focus on delivering greater analytics and business intelligence for enterprise clients.


0.9x

1.8x

1.1x

0.9x

1.4x

1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

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

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

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

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

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

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

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

09/28/16 SAP SE Plat.One, Inc. IoT application enablement, data management, and device management. NA NA

09/20/16 Greenwave Systems, Inc. Predixion Software, Inc. Predictive analytics software for analyzing large volumes of data. NA NA

09/19/16 Google, Inc. Speaktoit, Inc. Human-computer interaction platform based on natural language analytics. NA NA

08/31/16 Vista Equity Partners Regulatory DataCorp, Inc. Risk mitigation, regulatory, and monitoring software and data. NA NA

08/23/16 Syncsort, Inc. Cogito Ltd. Database management system tools. NA NA

08/23/16 FlightGlobal Ltd. FlightStats, Inc. Web and mobile platform for flight data and flight tracking. NA NA

08/22/16 Thoma Bravo LLC Qlik Technologies, Inc. Cloud-based business intelligence and data analytics software. $2,525 4.0x

08/08/16 Google, Inc. Orbitera, Inc. E-commerce, analytics, and cloud technologies for software vendors. $100 NA

08/01/16 Trimble Navigation Ltd. Axio-Net GmbH Data platform for satellite-based surveying and navigation serv ices. NA NA

08/01/16 X.commerce, Inc. RJ Metrics, Inc. Data infrastructure and analytics for online businesses. NA NA

06/07/16 Fortinet, Inc. AccelOps, Inc. Analytics-driven IT operations and cloud management software. $32 NA

06/01/16 Genstar Capital IHS, Inc. (OERM) Sustainability management and optimization software for businesses and governments. NA NA

$408 4.2x

PAGE | 9



Pending Apollo Global Management LLC Rackspace Hosting, Inc. Web hosting serv ices and cloud-based data storage solutions. $4,147 2.0x

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

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

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

Pending Riverbed Technology, Inc. Aternity, Inc. Application testing serv ices and business activ ity analytics. NA NA

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

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

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

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

Pending CA, Inc. BlazeMeter Ltd. Enterprise-grade load and performance testing software and serv ices. NA NA

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

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

09/26/16 Data Intensity, Inc. Red Stack Technology Group Ltd. Database management and business analytics software and serv ices for Oracle platforms. NA NA

09/16/16 Thoma Bravo LLC Imprivata, Inc. Single sign-on and access-management software for the healthcare sector. $443 3.4x

09/14/16 Foxconn Singapore Pte Ltd. SMART Technologies, Inc. Touch-enabled application display and monitoring software. $195 0.6x

08/19/16 SIRIS Capital Group LLC Xura, Inc. Digital communications software for communication serv ice providers. $620 2.1x

08/05/16 Rambus, Inc. Snowbush, Inc. Advanced analog and mixed-signal IP technology for ASSP, ASIC, and SOCs. $32 1.5x

08/01/16 Symantec Corp. Blue Coat, Inc. Web security and wide area network (WAN) optimization software. $6,299 10.5x

$1,306 3.2x

55

67

38

61

56 55 53

48

56

47 45

50

36

52

44

57

60

3.0x

2.3x

1.9x

1.7x

1.2x

2.4x2.5x

2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL)

Infrastructure Software M&A registered 60 transactions in 3Q 2016, the second straight quarter of increased activity.

3Q 2016 median reported Infrastructure Software M&A revenue multiples increased slightly from the previous quarter and remain consistent with historical periods.

As data security breaches become increasingly prevalent, private equity investors are acquiring best-of-breed security assets as they jockey for control of an evolving sector.

Notable security transactions include Vista Equity’s pending take-private of Infoblox, TPG’s pending acquisition of McAfee, and Thoma Bravo’s take-private acquisition of Imprivata.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

PAGE | 10



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

26% 21% 28% 31%

19% 29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

18% 31%

31% 30%

22%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32% 15% 17% 13%

34% 15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

20% 27%

21% 21% 21% 31%

20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

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

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

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

Despite an overall decrease in the number of transactions in 3Q 2016, private placement capital deployed increased to $11.2 billion, continuing an upward trend since the end of 2015.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 3Q 2016, private investors were more active in late stage fundraising, as evidenced by nearly 70% of private placement capital being invested in series C or later rounds.

Notable late stage transactions included the $760 million investment in Best Logistics Technology, $150 million investment in DraftKings, and the $105 million investment in Sprinklr.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED

902

740

820 829

912

829

940 952

1013 997 1033

960

756869

896

829

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

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

$ in

Mill

ion

s

Vo

lum

e

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

PAGE | 11



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

09/29/16 SaaS D $23 $112 Bpifrance; HSBC; Daher CapitalProv ider of SaaS-based cash and treasury

management serv ices.

09/29/16 SaaSLate

Stage$55 NA JMI Equity

Prov ider of cloud-based applications for member-

based organizations.

09/13/16 SaaSLate

Stage$36 $40 Silv ersmith Capital Partners

Prov ider of cloud-based spatial technology and data

solutions.

09/07/16 Infrastructure B $24 $34 GGV Capital; Mayfield Fund LLC; True Ventures LLC; Redpoint

VenturesProv ider of software for Dev Ops solutions.

08/24/16 SaaS D $60 $76 Battery VenturesProv ider of system management software for home-

care agencies.

08/16/16Data &

Analytics C $61 $112

Lightspeed Management Co. LLC; Greylock Management

Corp.; Khosla Ventures LLCProv ider of cloud infrastructure serv ices.

08/09/16Data &

Analytics E $50 $194

Lightspeed Management Co. LLC; New Enterprise Associates

LLC; Redpoint Ventures; Mayfield Fund LLC; Google Capital;

QUALCOMM Ventures; Future Fund Management Agency

Prov ider of an enterprise software platform for data

management.

08/04/16 SaaS B $15 $17 Charlie Cheev er; Draper Fisher Jurv etson Management LLC;

Martha H. Marsh, MBA

Prov ider of a cloud-based electronic health record

system for physicians.

08/03/16 SaaS B $18 $32 83North Management Ltd.; Norwest Venture Partners; Intel

Capital Corp.Prov ider of cloud workload-mobility software.

08/02/16 Infrastructure C $21 $56 TechStars Central, LLC; Foundry Group LLC; Deer Management

Co. LLC; SVB CapitalProv ider of cloud-based security software.

07/26/16 SaaS B $23 $26 Centana Management, LLCProv ider of cloud-based corporate performance

management software.

07/25/16 Infrastructure A $150 NA ABRY Partners LLCProv ider of an internet security-as-a-serv ice solution

suite.

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

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

EBITDA MULTIPLE ANALYSIS 3Q 2016 VS. 3Q 2015

8.2x

7.3x

6.0x

4.1x 4.2x

7.1x

5.2x 5.2x4.8x

3.8x

5.6x

3.5x

4.3x

3.5x

2.0x

2.9x

1.1x

10.1x

7.6x7.4x

6.3x 6.1x5.6x 5.5x

5.5x 5.2x4.9x

4.4x 4.4x3.9x

3.6x3.0x

2.4x

1.1x

3Q 2015 3Q 2016

49.6x

28.3x

49.6x

16.1x

26.0x

15.3x

17.0x

47.4x

21.2x

13.7x

18.5x

8.9x

17.5x

14.5x 14.5x

20.9x

18.7x

38.6x

26.9x

50.4x

17.0x

35.0x

13.8x15.0x

34.3x

20.9x

16.9x 16.5x

10.7x10.1x 10.3x

16.6x14.5x

19.2x

3Q 2015 3Q 2016

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

27.0%

16.0%

33.5%

24.0%

31.0%

(0.1%)

17.5%

26.0%

16.0%

23.8%

4.9%

24.3%

10.4%

(6.0%)

27.6%

15.9%

(3.4%)

26.0%

34.9%

(0.3%)

42.7%

15.2%

36.5%

64.3%

35.5%

68.8%

65.6%

7.7%

36.0%

19.0%

(4.6%)

0.4%

(8.5%)

(28.6%)

1 Yr Stock 3 Yr Stock

Large-Cap SaaS

SCM & Logistics

HCM

PLM & Engineering

Small-Cap SaaS

IT Security

Financial

Marketing

Public Sector / Non-Profit

Enterprise

HCIT

Bellwethers

IT Operations Mgmt.

Data & Analytics

Data Storage

Communication

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES

10.1x

7.6x

7.4x

6.3x

6.1x

5.6x

5.5x

5.5x

5.2x

4.9x

4.4x

4.4x

3.9x

3.6x

3.0x

2.4x

1.1x

Large-Cap SaaS

SCM & Logistics

HCM

PLM & Engineering

Small-Cap SaaS

IT Security

Financial

Marketing

Public Sector / Non-Profit

Enterprise

HCIT

Bellwethers

IT Operat ions Mgmt.

Data & Analytics

Data Storage

Communication

Energy

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

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

27% 133% 12% 72% - 13%

9% 18% 15% 12% - -

27% 70% 15% 74% 100% -

4% 27% 24% - - 47%

25% 91% 10% 62% - 65%

22% 28% 25% 52% 46% 42%

8% 27% 35% 63% - 85%

21% 65% 13% 90% - 68%

15% 30% 23% 78% 79% 60%

7% 22% 30% 82% 99% 19%

12% 35% 18% 89% 47% -

1% 19% 30% 78% 96% 33%

9% 37% 26% 78% - 63%

3% 19% 19% 78% - 41%

12% 37% 14% 31% 98% 11%

8% 105% 12% 71% - 61%

(5%) (1%) 20% - - 78%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

The IPO market showed signs of renewed life in 3Q 2016, with eight technology companies going public.

Notable IPOs included Talend, which raised $94.5 million with a market cap of $503.5 million and priced at $18 at the end of July, and Nutanix, which raised $237.9 million and priced at $16 at the end of September and has registered an impressive 131% growth in share price since listing.

The successful IPO of Nutanix as well as the sustained success of Twilio, which currently trades at over 300% of its offer price, may renew comfort around the IPO market, particularly as venture capital funding slows.

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

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

24%

29%

47%

< 25% 25 - 75% > 75%

6%

44%

17%

33%

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

8%

23%

38%

31%

$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

8

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

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

2013 Total: 48 2014 Total: 47 2016 Total: 102015 Total: 31

PAGE | 15



(150.0%)

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

thSto

ck

Pe

rfo

rma

nc

e

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

(3.1%)

(15.6%)

2.2%

65.3%

(48.8%)

(16.4%)(22.2%)

11.4%

57.3%

(2.7%)

16.2%

(10.6%)

45.3%

131.3%

57.4% 34.8%

102.3% 26.9%

194.4%

52.6%

540.7%

150.0%

107.0%

45.4% 64.3%

29.5%

117.1%

22.6%

84.3%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

350.0%

450.0%

550.0%

650.0%

750.0%

329.1%

6/18/15 6/25/15 6/25/15 6/25/15 6/30/15 7/16/15 10/6/15 11/12/15 11/18/15 11/18/15 12/9/15 4/21/16 6/22/16 7/28/16 9/29/16

$14.0 $8.0 $12.0 $14.0 $19.0 $16.0 $17.0 $16.0 $9.0 $10.0 $21.0 $14.0 $15.0 $18.0 $16.0

$547.6 $221.7 $387.9 $627.8 $703.9 $620.0 $3,146.0 $422.2 $2,708.5 $540.1 $4,382.2 $149.4 $150.0 $503.5 $237.9

$100.1 $56.3 $74.4 $98.0 $156.8 $103.2 $425.0 $70.4 $243.0 $77.5 $462.0 $112.0 $150.0 $94.5 $237.9

(3.1%) (15.6%) 2.2% 65.3% (48.8%) (16.4%) (22.2%) 11.4% 57.3% (2.7%) 16.2% (10.6%) 329.1% 45.3% 131.3%

MARKET CAP AT OFFER ($M)

PAGE | 16



14.2%

7.7%

13.4%

13.9%

15.3%

16.8%

18.7%

Other

Food & Beverage

Services & Leasing

Automotive

Technology

Insurance

Healthcare

63% 60%

50%

57%

55%

60%

66%

60% 58%

52%

2007 2008 2009 2010 2011 2012 2013 2014 2015 3Q'16

4.1x 4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x

4.9x

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD16

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

LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER

1H 2016 New-Issue LBO Loan Volume: $1.5 billion Percentage of Total Purchase Price

Median middle market LBO loan multiples tightened in YTD 2016 to 4.9x total leverage.

Middle market LBO loan volume in 3Q 2016 remained flat compared to 2Q, with $0.5 billion of issuance.

Technology companies were the third largest recipients of LBO loans in YTD 2016.

The median LBO debt percentage through 3Q 2016 was 52%, continuing the recent trend of lenders requiring larger equity contributions from sponsors as a percent of purchase price.

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

$0.7B

$1.0B

$2.0B

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$0.5B$0.5B

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

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

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

FinTechERP and Business Management Software Healthcare IT Human Capital Management

Infrastructure Software Internet and Digital Media Legal TechnologyIT Services

Non-Profit Software Supply Chain, Transportation & LogisticsSecurity Software

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

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

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

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

acquired by

acquired by

acquired by

acquired byacquired by acquired by

minority investment

fromacquired by acquired by acquired by

majority investment

fromacquired by

acquired by

merged with

merged with acquired by acquired by

acquired by

significant equity

investment from

acquired a majority

stake inacquired by

acquired by acquired by

acquired by acquired byacquired by acquired by

acquired by

recapitalized byacquired by acquired by acquired by

acquired byacquired by

acquired by

acquired by majority

recapitalization by

acquired by


recapitalized byacquired by


acquired acquired by

significant equity

investment fromacquired by acquired

acquired by

significant equity

investment fromacquired by

acquired by


acquired by acquired byacquired by

acquired by

minority investment

from


strategic investment

fromacquired byacquired by acquired byacquired by

acquired by acquired by acquired by acquired by

acquired by

acquired by

acquired by

and

acquired by

acquired by

and

acquired by acquired byacquired by

investment from recapitalized by

acquired by

acquired by

strategic investment

from


growth equity

investment from

sold its Kline Towers

Division to

acquired by

acquired by

acquired by

GFI Energy Group

a division of

acquired by

B2C

recapitalized by

acquired byminority investment

from

acquired by

and

majority investment

from

acquired by

http://epiqsystems.com/

http://epiqsystems.com/

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

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

http://www.aderant.com/

http://www.aderant.com/

http://www.cltsloyalty.com/

http://www.cltsloyalty.com/

http://www.stream.com/

http://www.stream.com/

http://www.rewardsnetwork.com/

http://www.rewardsnetwork.com/

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

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

http://www.bdcast.com/

http://www.bdcast.com/

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

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

PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

AP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP Salesforce HP

Communication Software Nuance NICE Synchronoss BroadSoft Jiv e Tangoe MobileIron

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

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

Marketing Software Adobe Salesforce Criteo HubSpot Callidus Bazaarv oice ChannelAdv isor

PLM & Engineering Software Dassault Autodesk Synopsys Ansys Cadence PTC Aspen Mentor Nemetschek AVEVA

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

Energy Software AVEVA Silv er Spring PSI EnerNOC

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

Healthcare IT (HCIT) Cerner athenahealth Veev a Medidata Allscripts HMS Inov alon Quality Systems

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

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

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

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

Small-Cap SaaS (cont'd) inContact Fiv e9 Instructure IntraLinks Workiv a Hortonworks Bazaarv oice Xactly MINDBODY Model N

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

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

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

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

Data Storage NetApp Iron Mountain Brocade CommVault Barracuda Box Nimble Storage Carbonite

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

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

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

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

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. 2017E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS

Alphabet Inc. GOOGL $486,050 $504,152 98.2% 25.2% 81.1% 11.8% (1.9%) 31.3% 6.6x 6.7x 5.8x 13.5x 31.9x

Microsoft Corporation MSFT 401,996 448,849 98.1% 29.1% 71.5% (8.8%) 11.2% 32.2% 4.7x 4.3x 4.1x 11.5x 26.7x

Oracle Corporation ORCL 151,858 161,270 93.5% 8.4% 17.3% (3.1%) 1.5% 41.6% 4.1x 4.1x 4.0x 9.1x 17.9x

Cisco Systems, Inc. CSCO 124,277 159,055 99.3% 23.3% 36.5% 0.2% 1.1% 30.7% 2.5x 2.5x 2.5x 7.3x 14.8x

IBM Corporation IBM 186,637 151,836 96.3% 10.6% (14.8%) (11.9%) (2.6%) 23.3% 2.3x 2.3x 2.4x 10.0x 11.4x

SAP SE SAP 114,081 111,718 98.5% 42.5% 23.7% (1.1%) 5.9% 29.6% 5.0x 4.7x 4.4x 14.1x 33.0x

salesforce.com, inc. CRM 50,984 48,326 84.4% (2.2%) 35.5% 24.1% 24.7% 16.1% 6.8x 6.2x 5.1x 31.0x 222.0x

HP Inc. HPQ 27,988 26,570 52.2% 34.9% 60.5% (8.4%) (53.4%) 9.5% 0.5x 0.6x 0.6x 6.8x 7.6x

Median $138,068 $155,446 97.2% 24.3% 36.0% (2.1%) 1.3% 30.2% 4.4x 4.2x 4.1x 10.7x 22.3x

COMMUNICATION SOFTWARE

Nuance Communications, Inc. NUAN $5,897 $4,056 66.4% (10.8%) (23.6%) NA NA NA NM 3.0x 2.9x 8.9x NM

NICE Systems Ltd. NICE 3,677 4,040 96.4% 19.1% 60.8% 7.8% 8.5% 23.6% 4.0x 3.7x 3.2x 14.5x 28.7x

Synchronoss Technologies, Inc. SNCR 1,958 1,859 94.3% 25.9% 6.6% 26.6% 17.4% 27.5% 3.4x 2.9x 2.5x 9.6x 45.7x

BroadSoft, Inc. BSFT 1,301 1,388 97.0% 57.4% 24.4% 28.6% 20.9% 12.4% 4.7x 3.9x 3.3x 22.2x NM

Jiv e Software, Inc. JIVE 223 331 81.8% (9.4%) (65.8%) 9.6% 2.7% NM 1.1x 1.1x 1.1x NM NM

Tangoe, Inc. TNGO 293 325 81.5% 15.9% (65.5%) 5.7% 11.6% NA 1.3x 1.3x 1.1x 15.1x NM

MobileIron, Inc. MOBL 149 236 57.5% (9.8%) NA 12.9% 7.9% NM 1.0x 0.9x 0.8x NM NM

Median $1,301 $1,388 81.8% 15.9% (8.5%) 11.2% 10.0% 23.6% 2.4x 2.9x 2.5x 14.5x 37.2x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $151,858 $161,270 93.5% 8.4% 17.3% (3.1%) 1.5% 41.6% 4.1x 4.1x 4.0x 8.8x 17.9x

IBM Corporation IBM 186,637 151,836 96.3% 10.6% (14.8%) (11.9%) (2.6%) 23.3% 2.3x 2.3x 2.4x 9.0x 11.4x

SAP SE SAP 114,081 111,718 98.5% 42.5% 23.7% (1.1%) 5.9% 29.6% 5.0x 4.7x 4.4x 15.8x 33.0x

Adobe Systems Incorporated ADBE 52,138 53,969 98.9% 29.6% 107.0% 14.8% 23.1% 29.5% 9.4x 8.8x 7.2x 30.0x 54.4x

Automatic Data Processing, Inc. ADP 39,286 40,076 91.9% 9.0% 39.3% 0.9% 7.4% 21.7% 3.4x 3.2x 3.0x 16.9x 26.8x

Intuit Inc. INTU 29,073 28,376 94.0% 23.8% 65.6% 12.0% 7.6% 31.5% 6.2x 6.0x 5.6x 19.4x 35.2x

Sage Group plc SGE-GB 10,763 10,353 96.5% 25.0% 79.0% NA NA NA NM 5.2x 4.7x 17.7x NM

Constellation Software Inc. CSU-CA 9,648 9,537 98.9% 2.7% 152.7% 27.6% 14.9% 24.7% 5.2x 4.6x 4.0x 20.9x 53.8x

Open Text Corporation OTEX 8,742 7,853 97.0% 42.9% 72.1% 12.9% 15.4% 35.6% 4.8x 4.4x 4.1x 13.7x 27.6x

Median $39,286 $19,364 96.8% 24.4% 75.5% 12.9% 14.9% 29.5% 5.2x 4.9x 4.4x 18.6x 35.2x

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

Public Sector /

Non-Profit

PAGE | 21



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

HUMAN CAPITAL MANAGEMENT SOFTWARE

Paychex, Inc. PAYX $20,624 $20,932 93.5% 20.2% 44.7% 8.8% 7.5% 42.7% 7.1x 6.7x 6.2x 17.0x NM

Workday, Inc. WDAY 16,536 10,911 99.2% 27.0% 10.9% 47.5% 34.0% NM 12.2x 10.9x 8.3x NM NM

Ultimate Software Group, Inc. ULTI 6,021 5,915 91.2% 13.2% 37.2% 22.2% 26.2% 10.5% 9.7x 7.7x 6.3x 40.7x NM

Paycom Software, Inc. PAYC 2,891 2,999 94.7% 39.3% NA 48.8% 45.4% 19.5% 12.9x 8.8x 6.9x 60.1x 145.1x

Cornerstone Ondemand, Inc. CSOD 2,507 2,570 96.2% 38.7% (11.4%) 28.9% 25.6% NM 7.4x 5.9x 4.8x NM NM

Paylocity Holding Corp. PCTY 2,177 2,274 89.5% 49.3% NA 49.2% 28.8% 4.5% 9.4x 8.2x 6.5x 118.6x NM

Benefitfocus, Inc. BNFT 1,183 1,184 88.8% 33.5% (18.7%) 34.7% 27.1% NM 6.4x 5.0x 4.0x NM NM

Xactly Corp XTLY 416 453 98.8% 74.2% NA 24.3% 27.6% NM 4.8x 4.4x 3.5x NM NM

Halogen Software, Inc. HGN-CA 134 166 97.0% 21.9% (42.5%) 34.3% 10.9% NM 2.0x 1.8x 1.6x NM NM

Median $2,507 $2,570 94.7% 33.5% (0.3%) 34.3% 27.1% 15.0% 7.4x 6.7x 6.2x 50.4x 145.1x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $52,138 $53,969 98.9% 29.6% 107.0% 14.8% 23.1% 29.5% 9.4x 8.8x 7.2x 30.0x 54.4x

salesforce.com, inc. CRM 50,984 48,326 84.4% (2.2%) 35.5% 24.1% 24.7% 16.1% 6.8x 6.2x 5.1x 38.6x 222.0x

Criteo SA CRTO 1,944 2,138 73.4% (4.0%) NA 36.0% NM 9.1% 1.5x 2.7x 2.2x 13.6x 35.9x

HubSpot, Inc. HUBS 1,902 2,037 95.9% 26.0% NA 57.0% 45.4% NM 10.5x 7.2x 5.5x NM NM

Callidus Software Inc. CALD 954 1,141 84.8% 10.1% 99.7% 26.7% 18.2% 0.1% 5.5x 4.7x 3.9x 53.7x NM

Bazaarv oice, Inc. BV 436 490 98.8% 34.0% (38.8%) 4.5% 1.8% NM 2.2x 2.2x 2.0x NM NM

Channeladv isor Corporation ECOM 268 332 81.3% 38.7% (65.4%) 18.5% 12.4% NM 2.7x 2.4x 2.1x NM NM

Median $1,902 $2,037 84.8% 26.0% 35.5% 24.1% 20.7% 12.6% 5.5x 4.7x 3.9x 34.3x 54.4x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $20,534 $22,327 97.1% 17.4% 30.0% 23.8% 8.4% 30.2% 6.3x 6.0x 5.5x 20.1x 47.6x

Autodesk, Inc. ADSK 15,568 16,050 99.4% 67.7% 78.6% (1.5%) (17.7%) NA 6.8x 7.5x 7.0x NM NM

Synopsys, Inc. SNPS 8,321 8,982 98.9% 27.9% 56.8% 8.7% 8.2% 20.7% 3.5x 3.4x 3.2x 13.4x 36.8x

ANSYS, Inc. ANSS 7,427 8,077 93.6% 6.0% 5.5% 0.7% 5.8% 45.8% 7.9x 7.4x 6.9x 15.5x 32.0x

Cadence Design Systems, Inc. CDNS 7,525 7,463 97.3% 24.4% 87.7% 7.7% 6.9% 24.0% 4.4x 4.1x 3.9x 14.0x 29.6x

PTC Inc. PTC 5,599 5,094 99.0% 41.1% 52.3% NA NA NA NM 4.8x 4.9x 17.0x NM

Aspen Technology, Inc. AZPN 3,717 3,731 98.9% 23.6% 33.2% 10.5% 0.5% 47.1% 7.9x 7.8x 7.6x 17.1x 26.7x

Mentor Graphics Corporation MENT 2,888 2,860 94.1% 7.3% 11.9% (5.1%) 3.0% 14.1% 2.6x 2.4x 2.3x 9.9x 43.9x

Nemetschek SE NEM-DE 2,347 2,360 94.3% 62.6% 299.6% 30.6% 20.0% 23.1% 7.4x 6.2x 5.4x 31.2x 59.3x

AVEVA Group plc AVV-GB 1,506 1,659 73.0% (17.3%) (39.0%) (3.4%) (7.7%) 26.4% 5.0x 5.5x 5.2x 19.2x 53.8x

Median $6,513 $6,279 97.2% 24.0% 42.7% 7.7% 5.8% 25.2% 6.3x 5.7x 5.3x 17.0x 40.4x



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SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $4,067 $4,126 74.1% (8.1%) 138.8% 13.1% 10.7% 30.4% 7.3x 6.6x 6.0x 22.1x 39.9x

Descartes Systems Group Inc. DSG-CA 1,582 1,628 96.2% 15.7% 88.0% 26.0% 8.3% 32.6% 8.1x 7.9x 7.2x 26.9x 72.7x

Kinaxis, Inc. KXS-CA 1,202 1,262 98.1% 56.8% NA 50.9% 25.6% 26.2% 13.2x 10.5x 8.6x 40.1x 99.5x

SPS Commerce, Inc. SPSC 1,129 1,246 93.8% 8.4% 7.4% 23.9% 21.9% 10.5% 7.1x 5.8x 4.9x 49.9x NM

CommerceHub, Inc. Class A CHUBA-US 696 678 95.1% NA NA 33.2% NA 1.0% 7.9x NM NM NM NM

American Software, Inc. AMSWA 253 296 93.0% 18.1% 30.1% 10.7% 3.0% 15.1% 2.2x 2.2x 2.1x 13.3x NM

Amber Road, Inc. AMBR 263 255 85.5% 129.2% NA 3.5% 9.9% NM 3.9x 3.6x 3.1x NM NM

Park City Group, Inc. PCYG 218 228 94.5% 16.0% 34.9% 14.4% NA 8.5% 15.5x NM NM NM NM

Median $913 $962 94.1% 16.0% 34.9% 19.2% 10.3% 15.1% 7.6x 6.2x 5.5x 26.9x 72.7x

ENERGY SOFTWARE

AVEVA Group plc AVV-GB $1,506 $1,659 73.0% (17.3%) (39.0%) (3.4%) (7.7%) 26.4% 5.0x 5.5x 5.2x 19.2x 53.8x

Silv er Spring Networks, Inc. SSNI 635 732 87.6% 10.4% (18.1%) 155.9% (38.2%) 20.1% 1.3x 2.1x 1.9x 44.5x 9.1x

PSI Aktiengesellschaft PSAN-DE 197 234 92.1% 20.0% (8.3%) 4.7% 6.2% 5.4% 1.0x 0.9x 0.9x 11.9x 28.2x

EnerNOC, Inc. ENOC 178 169 55.3% (31.3%) (64.8%) (15.3%) (2.3%) NM 0.4x 0.5x 0.5x NM NM

Median $416 $483 80.3% (3.4%) (28.6%) 0.6% (5.0%) 20.1% 1.1x 1.5x 1.4x 19.2x 28.2x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $26,731 $21,865 89.2% 13.7% 94.0% 3.7% 5.9% 32.9% 5.1x 4.8x 4.5x 15.0x 30.7x

MSCI Inc. MSCI 9,309 7,943 92.5% 44.8% 107.1% 7.9% 7.0% 44.8% 8.7x 8.1x 7.5x 19.3x 34.5x

Jack Henry & Associates, Inc. JKHY 6,751 6,719 95.2% 22.8% 64.3% 7.8% 4.6% 34.8% 5.0x 4.9x 4.6x 14.7x 27.0x

SS&C Technologies Holdings, Inc. SSNC 9,091 6,467 83.3% (10.3%) 66.2% 30.3% 51.8% 35.6% 9.1x 6.0x 5.5x 20.6x 150.9x

Oracle Financial Serv ices Software Ltd. 532466-IN 3,712 4,120 77.7% (19.2%) (1.3%) 10.4% 9.3% 41.2% 5.9x 5.6x 5.0x 14.9x 23.1x

BATS Global Markets, Inc. BATS 3,361 2,904 91.3% NA NA 22.0% (75.5%) NA 1.9x 7.7x 7.2x 14.7x 35.3x

Black Knight Financial Serv ices, Inc. BKFS 8,867 2,826 96.9% 26.4% NA 9.2% 10.5% 42.2% 9.5x 8.6x 7.9x 21.4x 141.3x

Env estnet, Inc. ENV 1,812 1,560 87.9% 23.3% 15.6% 20.7% 37.9% 12.7% 4.3x 3.1x 2.6x 23.8x NM

Q2 Holdings, Inc. QTWO 1,032 1,140 93.3% 17.5% NA 37.6% 36.7% NM 9.5x 6.9x 5.4x NM NM

Bottomline Technologies, Inc. EPAY 924 957 73.8% (3.2%) (16.8%) 4.1% 3.0% 11.8% 2.7x 2.6x 2.5x 12.6x NM

Median $5,231 $3,512 90.3% 17.5% 64.3% 9.8% 8.2% 35.2% 5.5x 5.8x 5.2x 15.0x 34.5x



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HEALTHCARE IT

Cerner Corporation CERN $21,198 $20,854 90.4% 2.7% 14.4% 30.1% 11.2% 30.4% 4.8x 4.3x 3.9x 14.5x 38.7x

athenahealth, Inc. ATHN 5,113 4,962 74.0% (4.4%) 13.4% 22.9% 19.4% 12.4% 5.5x 4.6x 3.9x 27.9x NM

Veev a Systems Inc VEEV 5,595 4,178 96.9% 76.4% NA 30.6% 28.7% 20.0% 11.8x 10.8x 8.9x 49.8x 78.1x

Medidata Solutions, Inc. MDSO 3,094 3,206 98.2% 34.2% 11.3% 17.1% 17.8% 10.4% 7.9x 6.7x 5.6x 34.2x 243.5x

Allscripts Healthcare Solutions, Inc. MDRX 3,945 2,457 83.5% 7.1% (12.7%) 0.6% 13.7% 14.4% 2.8x 2.5x 2.3x 16.3x NM

HMS Holdings Corp. HMSY 1,884 1,872 92.4% 156.6% 4.0% 7.0% 4.9% 22.4% 4.0x 3.8x 3.5x 16.7x 76.3x

Inov alon Holdings, Inc. Class A INOV 1,777 997 61.6% (27.8%) NA 20.9% 8.0% 32.8% 4.1x 3.8x 3.4x 11.7x 15.1x

Quality Systems, Inc. QSII 749 696 64.7% (8.6%) (48.9%) 0.5% 1.6% 15.1% 1.5x 1.5x 1.5x 9.3x 123.1x

Median $3,520 $2,831 86.9% 4.9% 7.7% 19.0% 12.4% 17.5% 4.4x 4.0x 3.7x 16.5x 77.2x

PUBLIC SECTOR / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $9,648 $9,537 98.9% 2.7% 152.7% 27.6% 14.9% 24.7% 5.2x 4.6x 4.0x 20.9x 53.8x

Tyler Technologies, Inc. TYL 6,611 6,222 93.1% 4.2% 91.5% 19.9% 29.3% 22.6% 11.2x 8.7x 7.6x 43.0x 95.9x

Blackbaud, Inc. BLKB 3,306 3,152 92.4% 18.1% 68.8% 13.0% 14.8% 16.7% 5.2x 4.5x 4.1x 22.8x 122.9x

2U, Inc. TWOU 1,592 1,795 98.4% 18.9% NA 36.2% 34.8% NM 10.6x 7.9x 6.0x NM NM

NIC Inc. EGOV 1,422 1,550 98.7% 34.0% (0.3%) 7.5% 8.0% 25.9% 4.9x 4.5x 4.2x 18.2x 37.3x

Instructure, Inc. INST 638 710 97.6% NA NA 65.0% 52.6% NM 8.7x 5.7x 4.0x NM NM

K12 Inc. LRN 364 569 99.3% 13.9% (54.4%) (6.1%) 3.8% 10.6% 0.4x 0.4x 0.4x 3.9x 63.0x

Median $1,592 $1,795 98.4% 16.0% 68.8% 19.9% 14.9% 22.6% 5.2x 4.6x 4.1x 20.9x 63.0x

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

salesforce.com, inc. CRM $50,984 $48,326 84.4% (2.2%) 35.5% 24.1% 24.7% 16.1% 6.8x 6.2x 5.1x 38.6x 222.0x

Serv iceNow, Inc. NOW 12,652 13,020 86.7% 10.6% 53.7% 47.3% 37.0% NM 12.6x 9.2x 7.1x NM NM

Workday, Inc. WDAY 16,536 10,911 99.2% 27.0% 10.9% 47.5% 34.0% NM 12.2x 10.9x 8.3x NM NM

Ultimate Software Group, Inc. ULTI 6,021 5,915 91.2% 13.2% 37.2% 22.2% 26.2% 10.5% 9.7x 7.7x 6.3x 40.7x NM

athenahealth, Inc. ATHN 5,113 4,962 74.0% (4.4%) 13.4% 22.9% 19.4% 12.4% 5.5x 4.6x 3.9x 27.9x NM

Guidewire Software, Inc. GWRE 3,796 4,383 92.6% 13.9% 26.0% 11.5% 12.9% 6.3% 8.9x 8.5x 7.5x 45.3x NM

Veev a Systems Inc VEEV 5,595 4,178 96.9% 76.4% NA 30.6% 28.7% 20.0% 11.8x 10.8x 8.9x 49.8x 78.1x

Medidata Solutions, Inc. MDSO 3,094 3,206 98.2% 34.2% 11.3% 17.1% 17.8% 10.4% 7.9x 6.7x 5.6x 34.2x 243.5x

Proofpoint, Inc. PFPT 3,058 3,146 92.8% 23.2% 133.8% 35.7% 36.7% NM 11.5x 8.4x 6.5x NM NM

Paycom Software, Inc. PAYC 2,891 2,999 94.7% 39.3% NA 48.8% 45.4% 19.5% 12.9x 8.8x 6.9x 60.1x 145.1x

Zendesk, Inc. ZEN 2,606 2,881 96.3% 52.6% NA 64.3% 48.4% NM 12.5x 8.4x 6.3x NM NM

Cornerstone Ondemand, Inc. CSOD 2,507 2,570 96.2% 38.7% (11.4%) 28.9% 25.6% NM 7.4x 5.9x 4.8x NM NM

LogMeIn, Inc. LOGM 2,154 2,287 95.7% 33.1% 189.9% 22.4% 22.9% 12.3% 7.9x 6.5x 5.6x 31.9x 157.1x

Atlassian Corp. Plc TEAM 5,527 2,268 85.2% NA NA 48.5% 30.7% 3.5% 12.1x 10.5x 8.1x NM NM

RealPage, Inc. RP 1,984 2,063 97.2% 55.1% 5.5% 15.8% 21.7% 11.7% 4.2x 3.5x 3.0x 21.5x NM

HubSpot, Inc. HUBS 1,902 2,037 95.9% 26.0% NA 57.0% 45.4% NM 10.5x 7.2x 5.5x NM NM

Median $3,445 $3,176 95.2% 27.0% 26.0% 29.8% 27.5% 12.0% 10.1x 8.1x 6.3x 38.6x 157.1x



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

Xero Limited XRO-NZ $1,792 $1,935 92.6% 46.3% (10.2%) 67.2% 59.6% NM 12.8x 8.7x 6.2x NM NM

Ebix, Inc. EBIX 2,037 1,847 96.1% 128.0% 466.2% 23.9% 10.0% 37.0% 7.7x 7.0x 6.4x 20.1x 23.2x

CyberArk Software Ltd. CYBR 1,537 1,664 83.6% (3.1%) NA 56.1% 32.1% 24.5% 9.6x 7.2x 5.9x 33.7x 64.5x

RingCentral, Inc. RNG 1,588 1,414 92.2% 32.9% 38.5% 34.7% 26.1% NM 5.4x 4.3x 3.4x NM NM

Qualys, Inc. QLYS 1,242 1,351 96.1% 29.0% 80.5% 23.0% 20.6% 23.8% 7.6x 6.3x 5.3x 21.9x 85.2x

Alarm.com Holdings, Inc. ALRM 1,244 1,317 87.1% 145.2% NA 24.8% 17.4% 11.3% 6.0x 5.1x 4.3x 36.3x 111.9x

SPS Commerce, Inc. SPSC 1,129 1,246 93.8% 8.4% 7.4% 23.9% 21.9% 10.5% 7.1x 5.8x 4.9x 49.9x NM

Benefitfocus, Inc. BNFT 1,183 1,184 88.8% 33.5% (18.7%) 34.7% 27.1% NM 6.4x 5.0x 4.0x NM NM

Callidus Software Inc. CALD 954 1,141 84.8% 10.1% 99.7% 26.7% 18.2% 0.1% 5.5x 4.7x 3.9x 53.7x NM

Q2 Holdings, Inc. QTWO 1,032 1,140 93.3% 17.5% NA 37.6% 36.7% NM 9.5x 6.9x 5.4x NM NM

inContact, Inc. SAAS 867 874 99.9% 107.4% 72.8% 29.2% 18.7% 2.3% 3.9x 3.3x 2.8x 62.5x NM

Fiv e9, Inc. FIVN 804 824 96.6% 338.0% NA 25.0% 21.8% NM 6.2x 5.1x 4.3x NM NM

Instructure, Inc. INST 638 710 97.6% NA NA 65.0% 52.6% NM 8.7x 5.7x 4.0x NM NM

IntraLinks Holdings, Inc. IL 616 577 96.4% 21.6% 15.2% 7.9% 8.3% 10.0% 2.2x 2.1x 1.9x 15.8x NM

Workiv a, Inc. WK 707 542 95.2% 18.2% NA 28.9% 24.8% NM 4.9x 3.9x 3.2x NM NM

Hortonworks, Inc. HDP 370 493 36.6% (60.1%) NA 164.8% 45.6% NM 3.0x 2.1x 1.6x NM NM

Bazaarv oice, Inc. BV 436 490 98.8% 34.0% (38.8%) 4.5% 1.8% NM 2.2x 2.2x 2.0x NM NM

Xactly Corp XTLY 416 453 98.8% 74.2% NA 24.3% 27.6% NM 4.8x 4.4x 3.5x NM NM

MINDBODY, Inc. MB 708 388 96.5% 34.0% NA 44.8% 36.2% NM 7.0x 5.1x 4.0x NM NM

Model N, Inc. MODN 236 307 79.5% 12.3% 12.6% NA NA NA NM 2.2x 1.9x NM NM

Amber Road, Inc. AMBR 263 255 85.5% 129.2% NA 3.5% 9.9% NM 3.9x 3.6x 3.1x NM NM

AppFolio Inc APPF 629 214 97.3% 14.6% NA 57.3% 39.2% NM 8.4x 6.0x 4.6x NM NM

Castlight Health, Inc. CSLT 289 201 77.2% 3.2% NA 65.1% 33.3% NM 3.8x 2.9x 2.3x NM NM

Median $804 $824 93.8% 31.0% 15.2% 29.1% 25.4% 10.9% 6.1x 5.0x 4.0x 35.0x 74.8x



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DATA & ANALYTICS

Splunk Inc. SPLK $6,786 $7,895 87.7% 4.9% (4.6%) 48.3% 36.8% NM 8.6x 7.6x 5.9x NM NM

Teradata Corporation TDC 3,750 4,042 93.7% 10.2% (43.9%) (7.4%) (9.6%) 19.4% 1.5x 1.6x 1.7x 6.7x NM

Tableau Software, Inc. DATA 2,831 3,639 52.7% (57.6%) (22.6%) 48.5% 27.8% NM 4.3x 3.4x 2.8x NM NM

Verint Systems Inc. VRNT 2,737 2,376 75.7% (13.0%) 0.3% 0.2% (2.9%) 15.4% 2.6x 2.5x 2.3x 10.3x NM

Pegasystems Inc. PEGA 2,191 2,250 97.6% 20.1% 48.2% 15.7% 15.8% 12.9% 3.2x 2.8x 2.5x 19.9x 61.9x

MicroStrategy Incorporated MSTR 1,379 1,573 79.8% (16.0%) 56.3% (8.6%) (3.8%) 29.3% 2.6x 2.7x 2.6x 8.4x 14.9x

Inov alon Holdings, Inc. INOV 1,777 997 61.6% (27.8%) NA 20.9% 8.0% 32.8% 4.1x 3.8x 3.4x 11.7x 15.1x

PROS Holdings, Inc. PRO 688 687 88.9% 1.0% (34.2%) (9.5%) (10.5%) NM 4.1x 4.6x 4.3x NM NM

Median $2,464 $2,313 83.8% (6.0%) (4.6%) 7.9% 2.6% 19.4% 3.6x 3.1x 2.7x 10.3x 15.1x

IT OPERATIONS MANAGEMENT

Red Hat, Inc. RHT $14,219 $14,638 95.7% 10.4% 76.7% 14.7% 18.2% 39.3% 6.4x 6.0x 5.2x 26.0x 66.6x

CA, Inc. CA 13,040 13,859 94.5% 20.8% 10.5% (5.6%) 0.7% 38.0% 3.2x 3.2x 3.2x 8.3x 18.2x

Citrix Systems, Inc. CTXS 13,330 13,271 94.7% 21.6% 20.1% 4.2% 3.4% 26.2% 4.1x 3.9x 3.8x 10.8x 41.6x

Serv iceNow, Inc. NOW 12,652 13,020 86.7% 10.6% 53.7% 47.3% 37.0% NM 12.6x 9.2x 7.1x NM NM

VMware, Inc. VMW 24,163 9,125 89.1% (9.0%) (10.6%) 10.1% 5.3% 24.5% 3.6x 3.5x 3.3x 10.1x 9.2x

F5 Networks, Inc. FFIV 7,569 8,252 98.0% 6.6% 40.1% NA NA NA NM 3.7x 3.5x 9.9x NM

Micro Focus International plc MCRO-GB 7,574 6,544 89.3% 54.1% 127.4% 93.2% 20.0% 42.9% 9.6x 5.6x 5.4x 15.7x NM

Arista Networks, Inc. ANET 5,413 5,928 98.5% 39.5% NA 43.4% 31.7% 19.5% 6.5x 4.9x 4.1x 21.5x 49.8x

Software AG SOW-DE 3,159 3,348 100.0% 43.8% 19.0% 1.8% 2.7% 30.0% 3.3x 3.2x 3.1x 11.1x 21.7x

NetScout Systems, Inc. NTCT 2,711 2,691 72.6% (17.3%) 15.0% 110.6% 27.5% 14.8% 2.8x 2.3x 2.2x 10.1x NM

New Relic, Inc. NEWR 1,728 1,948 95.5% 2.9% NA 64.2% 40.6% NM 9.5x 7.3x 5.6x NM NM

Progress Software Corporation PRGS 1,241 1,319 91.3% 6.1% 3.4% 13.5% 9.2% 25.7% 3.1x 3.0x 2.9x 9.3x 153.4x

Radware Ltd. RDWR 382 601 79.1% (15.6%) (0.3%) (2.4%) (4.6%) 12.7% 1.8x 1.8x 1.7x 10.1x 32.4x

Median $7,569 $6,544 94.5% 10.4% 19.0% 14.1% 13.7% 25.9% 3.9x 3.7x 3.5x 10.1x 37.0x



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DATA STORAGE

NetApp, Inc. NTAP $7,165 $9,982 99.2% 22.5% (16.8%) (9.2%) (2.9%) 13.9% 1.3x 1.3x 1.3x 6.5x 30.9x

Iron Mountain, Inc. IRM 15,250 9,880 90.4% 20.4% 39.1% (3.6%) 16.3% 25.8% 5.1x 4.4x 4.0x 16.6x 80.7x

Brocade Communications Systems, Inc. BRCD 4,453 3,700 84.4% (8.4%) 15.1% 2.4% 2.9% 20.7% 2.0x 1.9x 1.7x 6.7x 16.0x

CommVault Systems, Inc. CVLT 1,941 2,360 98.7% 53.8% (40.6%) (2.0%) 6.7% 2.1% 3.3x 3.1x 2.9x 22.4x NM

Barracuda Networks, Inc. CUDA 1,184 1,328 98.9% 60.4% NA 15.4% 7.5% 2.6% 3.7x 3.5x 3.2x 22.5x NM

Box, Inc. BOX 1,883 848 99.4% 32.7% NA 39.9% 30.6% NM 5.4x 4.9x 3.8x NM NM

Nimble Storage, Inc. NMBL 551 751 36.5% (60.8%) NA 41.5% 23.7% NM 1.6x 1.4x 1.1x NM NM

Carbonite, Inc. CARB 372 415 99.2% 38.9% 0.4% 11.4% 45.5% NM 2.7x 1.9x 1.8x NM NM

Median $1,912 $1,844 98.8% 27.6% 0.4% 6.9% 11.9% 13.9% 3.0x 2.5x 2.3x 16.6x 30.9x

IT SECURITY

Cisco Systems, Inc. CSCO $124,277 $159,055 99.3% 23.3% 36.5% 0.2% 1.1% 30.7% 2.5x 2.5x 2.5x 7.5x 14.8x

Symantec Corporation SYMC 12,648 15,623 99.0% 29.8% 1.8% (4.7%) 8.3% 28.2% 3.4x 3.2x 2.9x 8.6x NM

Palo Alto Networks, Inc. PANW 13,100 14,475 81.8% (7.2%) 253.6% 48.5% 33.3% NM 9.5x 8.3x 6.3x NM NM

Check Point Software Ltd. CHKP 12,241 13,308 86.3% (2.9%) 35.4% 9.0% 5.8% 52.4% 7.5x 7.1x 6.7x 13.2x 19.4x

VeriSign, Inc. VRSN 10,179 8,353 83.3% 9.5% 52.7% 4.9% 7.6% 63.0% 9.6x 8.9x 8.7x 14.5x 22.3x

Fortinet, Inc. FTNT 5,370 6,377 82.7% (14.2%) 77.1% 31.0% 26.7% 5.5% 5.3x 4.2x 3.5x 32.8x NM

Gemalto N.V. GTO-NL 6,086 5,766 85.6% 0.5% (41.9%) 26.6% 3.5% 16.8% 1.8x 1.7x 1.6x 10.5x 29.2x

Trend Micro Incorporated 4704-JP 3,561 4,863 77.6% (0.1%) (7.1%) 7.9% 26.5% 31.6% 3.5x 2.7x 2.6x 11.4x 27.5x

Proofpoint, Inc. PFPT 3,058 3,146 92.8% 23.2% 133.8% 35.7% 36.7% NM 11.5x 8.4x 6.5x NM NM

FireEye, Inc. FEYE 2,194 2,499 44.4% (54.9%) (63.5%) 46.4% 16.2% NM 3.5x 3.0x 2.6x NM NM

CyberArk Software Ltd. CYBR 1,537 1,664 83.6% (3.1%) NA 56.1% 32.1% 24.5% 9.6x 7.2x 5.9x 33.7x 64.5x

Qualys, Inc. QLYS 1,242 1,351 96.1% 29.0% 80.5% 23.0% 20.6% 23.8% 7.6x 6.3x 5.3x 21.9x 85.2x

Mimecast Limited MIME 1,000 1,042 95.2% NA NA 22.2% 23.0% 5.6% 7.0x 6.0x 4.9x NM NM

Varonis Systems, Inc. VRNS 682 794 98.3% 99.9% NA 25.5% 25.6% NM 5.4x 4.3x 3.6x NM NM

Rapid7 Inc. RPD 640 743 71.3% (20.7%) NA 43.8% 40.1% NM 5.8x 4.1x 3.3x NM NM

Cheetah Mobile, Inc. CMCM 1,608 460 58.3% (10.9%) NA 105.0% 11.1% 8.3% 2.7x 2.5x 2.0x 35.8x 16.4x

Median $3,310 $4,005 84.6% (0.1%) 36.5% 26.1% 21.8% 24.5% 5.6x 4.2x 3.6x 13.8x 24.9x

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quarterly software sector review 3q 2016 · quarterly software sector review │ 3q 2016 select...

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