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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2015

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2015

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 4Q 2015

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

Application Software

Data and Analytics

Infrastructure Software

IT and Tech-Enabled Services

Telecom and Data Center Solutions

INTERNET & DIGITAL MEDIA

AdTech and Marketing Solutions

Consumer Internet

Digital Media, Content, and Gaming

eCommerce

Mobile

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

SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS

Education Technology

Energy Technology

Financial Technology

Healthcare IT

Public Sector

Supply Chain / Logistics

TMT VERTICAL FOCUS AREAS

25 year history with over 700 closed transactions since inception

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

has acquired a majority interest in

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

recapitalized by has been acquired by has been acquired by

Baarsma B2C trades as:

mailto:[email protected]




mailto:*[email protected]

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DEAL SPOTLIGHT – INVENTUS

Inventus is one of the leading providers of technology-based services to locate,secure, organize, and search electronic data for corporations and law firms.

The Company’s LuminosityTM technology provides an overlay to industry–standardsoftware offering unique analysis and insights to more than 1,000 clients globally.

Headquartered in Chicago, Inventus will operate as an independent subsidiary ofRPX.

ABOUT INVENTUS

RPX Corporation views Inventus as a natural extension of the firm’s expertise inmitigating patent risk and lowering legal costs for clients.

This transformative acquisition expands RPX’s total addressable market and willenable RPX to increase its footprint within client legal departments.

Post acquisition, RPX will support Inventus on organic and inorganic growthinitiatives, including expanding further internationally, where eDiscovery servicescontinue to grow at a rapid pace.

HW&Co.’s TMT Group continues its strong momentum in the legal technology sector, advisingClearlake Capital and management on the announced sale of Inventus to RPX Corporation(NasdaqGS: RPXC).

2

has been acquired by

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

recapitalized by

Select Recent Legal Technology & Services Transactions

PAGE | 3



SELECT SOFTWARE M&A TRANSACTIONS – 4Q 2015

4

Quality Systems pending acquisition of HealthFusion

HealthFusion provides SaaS EHR and practice management software for physicians, hospitals, and medical billing services.

The Company’s MediTouch® platform is currently used by over 3,000 physician practices, hospital ambulatory centers andmedical billing services (totaling more than 6,000 subscribers).

The acquisition further supports Quality Systems’ strategy to expand its client base and solution capabilities in the ambulatorymarket, especially among smaller sized physician practices.

Ent. Value: $190.0m

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Announced in 4Q-15

Roper Technologies acquisition of Aderant Holdings

Aderant is the world’s largest independent provider of ERP and business management software to the legal sector.

Aderant supports nearly 3,200 clients in more than 30 countries, representing 77 of the top 100 Global Law Firms and more than88 percent of the Am Law 200.

As part of Roper’s RF Technology segment, Aderant will operate autonomously with the same company name, brand, officelocations, and most importantly staff.

October 21, 2015

Ent. Value: $675.0m

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Tyler Technologies acquisition of New World Systems

New World Systems provides software solutions for public safety and public administration organizations.

Tyler plans to integrate its Odyssey® courts and justice solution with New World’s Aegis public safety platform to create a uniqueend-to-end enterprise criminal justice solution.

This transaction positions Tyler as a leader in public safety solutions, further strengthening its ability to provide a completeenterprise criminal justice system to state and local governments.

Ent. Value: $675.0m

Revenue: $134.0m

EV / Revenue: 5.0x

EV / EBITDA: 13.8x

November 16, 2015

SS&C Technologies acquisition of Primatics Financial

Primatics provides loan accounting, forecasting, regulatory reporting, and stress testing software to financial institutions globally.

Primatics’ EVOLV platform is widely used by North American banks, including 9 of the 25 largest financial institutions and some ofthe fastest-growing community banks in the U.S.

SS&C will integrate EVOLV with its portfolio of accounting software solutions, creating a comprehensive solution for any financialinstitution, insurance company or institutional asset manager that requires integrated accounting, statutory and entity reporting.

Ent. Value: $122.0m

Revenue: $50.8m

EV / Revenue: 2.4x

EV / EBITDA: 10.2x

November 16, 2015

iModules acquisition of Campus Labs

Campus Labs provides a cloud-based software platform for colleges and universities enabling them to make data-driven,strategic decisions ranging from accreditation to student retention to effective operations.

After acquiring Campus Labs in 2012, Higher One strategically divested the business to refocus on its core payment processingoperations and provide greater financial flexibility while strengthening its balance sheet.

Post acquisition, Campus Labs will be combined with Leeds Equity-backed iModules, a provider of SaaS-based constituentengagement management software for educational institutions and membership-based associations worldwide.

Ent. Value: $91.0m

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

November 25,2015

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 consolidators combined for 65 acquisitions in 2015, with Microsoft being the most active with 17 completed transactions.

Microsoft’s 2015 acquisitions were intended to enable future growth in key strategic areas – analytics, security, enterprise, mobile, and gaming. Analytics was the most prevalent theme among Microsoft's acquisitions as evidenced by the investments in Equivio, Revolution Analytics, Datazen, Volometrix, and Metanautix.

Global strategic software M&A registered 435 transactions in 4Q 2015, which was inline with the prior quarter, and among the most active quarters in the last four years.

Technology executives, who are under pressure to keep up with the pace of innovation and drive growth, are increasingly seeking acquisitions to achieve their strategic objectives.

352379 362

412

352 352 333 327 324370

340309

401

455 443 435

1Q '12 2Q '12 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

5 58

15

9 7 74

8

712

10

5

85

37

5

5

5

9 8

5

9 79

5

8 2

287 9

10

4 54

1 34

11

123

17 83

36

1 1

2015

2014

2013

2012

2011

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

Vista Equity, Thoma Bravo, and Marlin Equity were the most active software investors in 2015, with a combined 21 new platform investments of which 2 were “take-private” transactions and 5 were cross-border deals.

Private equity interest in the software sector remains strong as firms look to invest record levels of dry powder and lending conditions remain favorable, especially for high quality, middle market software credits.

Global private equity investment activity in the software sector remained strong in 4Q 2015 with 47 new platform acquisitions, of which the median reported transaction size was $980 million compared to $545 million in 3Q 2015.

The current surge in technology deals comes at a time when vertical specific software solutions are in high demand, enabling users to cut costs and increase productivity, notably in the manufacturing, healthcare, financial services, and education sectors.

2 24

1 2 25

3

96

4

33 2

1

2

12

7

31

34

6

52

0 1

9

5

4

33

2

5 6 6 5

7

7

4

7 4 33 2 2

2

2015

2014

2013

2012

2011

4549

4246

4138

47 45 43

32

48 46 45

54 5347

1Q '12 2Q '12 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

PAGE | 6



4Q '1

1

1Q '1

2

2Q '1

2

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

4Q '1

1

1Q '1

2

2Q '1

2

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

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 continued at a strong place with 309 registered transactions making 4Q 2015 one of the most active quarters over the past four years.

Median reported Application Software M&A revenue multiples increased slightly in 4Q 2015, and remain above historical averages.

MEDIAN M&A REVENUE MULTIPLES (REPORTED)

1.9x

1.2x

2.1x

2.4x

1.3x

1.4x 1.5x

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.4x

2.2x2.3x

During 4Q 2015, there was strong M&A activity involving vertically-focused ERP software companies, which were primarily led by private equity.

Recent and notable vertically focused, ERP software transactions include LGP and TPG’s pending acquisition of Ellucian (education), Pamplona’s pending acquisition of MedAssets(healthcare), EQT’s take-private of IFS (manufacturing), and Roper’s acquisition of Aderant (legal).

MEDIAN

Pending Leonard Green & Partners, TPG Ellucian, Inc. Software, serv ices, and analytics for higher education institutions globally. $3,500 NA

Pending Computer Programs & Systems Inc. Healthland, Inc. Integrated healthcare information technology solutions to rural health centers. $242 NA

Pending Hellman & Friedman LLC; HgCapital TeamSystem Holding S.p.A. Document management, electronic storage, and electronic invoicing. NA NA

Pending CoreLogic, Inc. FNC, Inc. Real estate collateral information technology. $475 NA

Pending Pamplona Capital Management LLP MedAssets, Inc. Revenue performance software for healthcare organizations. $2,775 3.6x

Pending Endurance International Group Constant Contact, Inc. Marketing software and tools designed for small businesses. $932 2.6x

12/18/15 Ingram Micro Inc. Docdata Order fulfilment, returns logistics, online payment, and commerce software. $175 NA

12/11/15 Intercontinental Exchange, Inc. Trayport Limited Electronic trading systems and matching engine solutions for financial markets. $860 11.0x

11/30/15 EQT Partners Industrial & Financial Systems IFS AB ERP and business management software for asset and serv ice management. $992 2.6x

11/30/15 FIS Global SunGard Data Systems Inc. Business management software, analytics, and serv ices for the financial serv ices sector. $9,100 3.2x

11/16/15 EPAM Systems, Inc. Alliance Global Serv ices LLC Software design, development, and quality management solutions. $50 NA

11/16/15 Tyler Technologies, Inc. New World Systems Corporation Software solutions for public safety and public administration organizations. $675 NA

11/16/15 SS&C Technologies Holdings, Inc. Primatics Financial LLC Integrated enterprise software for the financial serv ices sector. $122 2.4x

10/21/15 Roper Technologies, Inc. Aderant Holdings, Inc. Business management software for legal and other professional serv ices firms. $675 NA

10/16/15 FactSet Research Systems Inc. Portware LLC Broker-neutral and automated trading software for global equities, futures, options, and FX. $265 NA

10/13/15 IBM Merge Healthcare Incorporated Electronic healthcare reporting software. $975 4.3x

09/10/15 Xerox Corporation RSA Medical, LLC Technology-based, medical risk management software & serv ices. $147 3.1x

09/03/15 ParkerGale ATP Software and information serv ices for the aviation industry. $44 1.8x

$675 3.1x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

269

255

288

266

298

244 246 252 251

227

282 270

287 275

320 321 309

PAGE | 7



39

43

38

42

55

38

49 47

45 46

60

54 52

65

69 70

52

NOTABLE SAAS M&A TRANSACTIONS

4.3x

3.4x

5.5x

4.9x

5.8x

4.6x

5.3x

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.3x4.1x

4.6x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL)

SaaS M&A volume decreased to 52 transactions in 4Q 2015, while continuing to exhibit a broader upward trend since 2011.

Median reported transaction multiples increased to 4.5x revenue in 4Q 2015, in line with historical averages.

In 4Q 2015, strategic and private equity buyers completed transactions across a broad set of verticals including healthcare, financial services, insurance, transportation, non-profit, and education.

In particular, Roper was among the most active SaaS buyers in the healthcare IT vertical with the acquisitions of CliniSys Solutions and Atlas Medical.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

1

1Q '1

2

2Q '1

2

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

4Q '1

1

1Q '1

2

2Q '1

2

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

Pending Quality Systems Inc. HealthFusion, Inc. SaaS-platform for physicians, hospitals, and medical billing serv ices. $190 NA

Pending 3D Medical Limited Mach7 Technologies, Inc. Cloud-based enterprise clinical image management solutions to the healthcare industry. $43 NA

Pending Roper Technologies, Inc. CliniSys Solutions Limited Web-based clinical laboratory information management solutions. $261 NA

Pending Vista Equity Partners Solera Holdings Inc. Risk and asset management software to the P&C insurance sector. $6,272 5.5x

12/09/15 Transunion Trustev Limited Digital fingerprinting technology for real time online customer identity verification. $44 NA

11/25/15 The Descartes Systems Group Inc Oz DEVELOPMENT, Inc. Cloud applications that streamline e-commerce, warehouse, and shipping processes. $30 NA

11/25/15 iModules Software, Inc. Campus Labs, LLC Cloud-based software for assessment and analytics in higher education. $91 NA

11/20/15 Genstar Capital Ministry Brands SaaS-based technology platform for faith-based organizations. $350 6.2x

11/18/15 Evolution1, Inc. Benaissance LLC SaaS-based financial management solutions for health benefits administration. $80 6.0x

11/04/15 ACI Worldwide, Inc. PAY.ON AG Online payment and risk management technologies. $196 NA

11/02/15 West Corporation ClientTell, Inc. Cloud-based notification platform for the healthcare serv ices industry. $49 NA

10/29/15 HCL Technologies Ltd. PowerTeam, Inc. Customer relationship management software solutions. $46 1.2x

10/26/15 Roper Technologies, Inc. Atlas Medical Software Cloud-based clinical connectiv ity and process integration solutions. $48 NA

10/15/15 LogMeIn, Inc. Marvasol, Inc. SaaS-based password and data management serv ices for indiv iduals and enterprises. $116 10.3x

10/07/15 RevSpring, Inc. Healthcare Revenue Strategies, LLC Web-based healthcare revenue cycle management software. NA NA

10/01/15 Aflac, Inc. Empowered Benefits SaaS-based employee benefits technology provider. $40 6.5x

10/01/15 Premier Healthcare Solutions, Inc. InflowHealth LLC Software to improves operational and financial performance of physician practices. $35 NA

09/15/15 CIP Capital Community Investors, Inc. Community management software for the real estate sector. $116 4.8x

$80 6.0x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

PAGE | 8



NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS

76

63

82

73 74

64

71 74

64 67

72 76

100

89

105

112

102

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL)

Data and Analytics M&A registered yet another strong quarter in 4Q 2015 with 102 reported transactions.

Median reported Data and Analytics sector transaction revenue multiples continued on an upward trajectory as buyers continue to seek vertical specific solutions, notably within the transportation, energy, retail, insurance, and education sectors.

Data and Analytics companies are increasingly being targeted by large strategics that are focused on delivering greater insights and intelligence to clients.

In one of the largest sector deals in 2015, Intercontinental Exchange acquired Interactive Data for $7.5 billion, driven by the significant expected growth opportunity in bond-price data as the buying and selling of corporate debt shifts to electronic marketplaces.


1.4x

3.3x

1.6x

0.9x

1.8x

1.1x

0.9x

1.4x

1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x

2.7x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

1

1Q '1

2

2Q '1

2

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

4Q '1

1

1Q '1

2

2Q '1

2

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

Pending Delphi Automotive PLC Control-Tec LLC Telematics and cloud based analytics solutions for the transportation industry. $145 NA

Pending Adobe Systems Software Digital Analytix Business SaaS platform to analyze customer data and report v isitor behavior. $45 NA

Pending Genscape, Inc. Locus Energy, LLC Provider of data monitoring and analytics software for the energy sector. NA NA

Pending Microsoft Corporation VoloMetrix, Inc. Enterprise data analytics software for diverse set of industries. NA NA

Pending Tyco International plc ShopperTrak RCT Corporation Business analytics software for the retail industry. $175 2.3x

12/14/15 Intercontinental Exchange, Inc. Interactive Data Holdings Corporation Provides financial market data, analytics, and related solutions. $7,450 7.9x

12/09/15 NeuStar, Inc. MarketShare Partners LLC Marketing analytics solutions for businesses, media companies, marketers, and agencies. $450 7.9x

12/01/15 CommVault Systems, Inc. LAITEK Inc. Data migration solutions for presenting scientific and medical image information. NA NA

12/01/15 Blackboard Inc. BlueCanary Data & Analytics LLC Data and analytics solutions for higher education. NA NA

11/18/15 The Carlyle Group LP Innovation Group plc Business process serv ices, analytics and software solutions for the P&C insurance industry. $677 2.0x

10/27/15 Raycom Media, Inc. Pure Auto LLC Online platform that provides value and data reports on used cars and trucks. $125 NA

10/13/15 Zendesk, Inc. We Are Cloud SAS Web-based business intelligence application BIME. $45 NA

10/07/15 Atigeo, LLC YaData Solutions, Inc. Big data v isualization software and analytics. NA NA

10/01/15 Markit Ltd. CoreOne Technologies LLC Tech-enabled data analytics solutions for the financial serv ices sector. $200 NA

09/30/15 Thoma Bravo, LLC MedeAnalytics, Inc. Cloud-based analytics software for the healthcare industry. NA NA

08/06/15 Permira Advisers Ltd. Informatica Corporation Provides enterprise data integration software and serv ices worldwide. $4,844 4.6x

$188 4.6x

PAGE | 9



69

49

58

55

67

38

61

56 55 53

48

56

47 45

50

36

48

3.4x

4.2x

3.8x

3.0x

2.3x

1.9x1.7x

1.2x

2.4x2.5x

2.9x

2.4x

2.7x

3.1x3.2x 3.3x

3.1x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL)

In 4Q 2015, Infrastructure Software M&A activity increased 33% over the prior quarter with 34 registered transactions.

As enterprises accelerate their shift to the cloud, large Infrastructure Software consolidators are bolstering their solution suites via M&A to capitalize on key customer concerns such as security and data integration that are more pronounced during these transitions.

Cybersecurity continues to be the most prevalent theme in Infrastructure Software M&A, with both strategic and financial buyers actively pursuing deals.

Some of the more notable cybersecurity transactions include The Carlyle Group’s pending acquisition of Veritas, Blue Coat’s pending acquisition of Elastica, Thales e-Security’s acquisition of Vormetric, Cisco’s acquisition of Lancope, and NCC’s acquisition of Fox-IT.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

1

1Q '1

2

2Q '1

2

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

4Q '1

1

1Q '1

2

2Q '1

2

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

Pending The Carlyle Group Veritas Technologies LLC Data backup, recovery, archiv ing, eDiscovery, storage management solutions. $8,000 NA

Pending Cisco Systems Holdings Acano Limited Audio conferencing and IVR communications platform. $700 NA

Pending Blue Coat Systems Inc. Elastica, Inc. Transaction level security software for cloud applications and serv ices. $280 NA

Pending Silver Lake; Thoma Bravo, LLC SolarWinds, Inc. Enterprise-class information technology and infrastructure management software. $4,446 9.2x

Pending Thales e-Security, Inc. Vormetric, Inc. Data security software for physical, v irtual, and big data cloud environments. $400 7.5x

Pending Carbonite, Inc. EVault, Inc. Cloud-connected backup and recovery software solutions. $14 NA

12/22/15 Cisco Systems, Inc. Lancope, Inc. Network v isibility and security intelligence solutions. $453 NA

12/11/15 Lookingglass Cyber Solutions, LLC Cyveillance, Inc. Online threat intelligence solutions to protect network information. $35 1.9x

11/27/15 NCC Group Fox-IT Group B.V. Software security solutions to prevent cyber threats, data breaches and fraud. $141 4.9x

11/25/15 VASCO Data Security International Silanis Technology Inc. Electronic signature solutions and process management. $85 NA

11/03/15 Proofpoint, Inc. Socialware, Inc. Social media business management software platform for financial serv ices sector. $9 NA

10/30/15 Akamai Technologies, Inc. Bloxx, Ltd. Email and Web filtering technologies to protect against Internet threats. $19 NA

10/22/15 Thoma Bravo, LLC DigiCert, Inc. SSL certificate and management tools for small and large companies in various industries. NA NA

10/15/15 CyberArk Software, Ltd. Viewfinity, Inc. Generation application control and priv ilege management solutions. $31 NA

10/13/15 Rapid7 LLC RevelOps, Inc. Real-time elastic log management and analytics serv ice. $71 NA

10/12/15 Barracuda Networks, Inc. Intronis, Inc. Provides cloud, physical, and v irtual data protection serv ices. $65 3.2x

10/08/15 H.I.G. Capital, LLC HelpSystems, LLC IT infrastructure software for network management, business intelligence, and security. $575 5.4x

$113 5.1x

HW&CO. CONFIDENTIAL

PAGE | 10



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

In 4Q 2015, private placement deal activity decreased 22% quarter over quarter and total reported capital raised decreased to $9.3 billion.

With well-publicized portfolio write-downs in private holdings by high-profile investors like Fidelity, some private capital investors are taking a more cautious approach.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 4Q 2015, 59% of private capital raised was deployed in early stage rounds (Seed - Series B), up from 46% in the prior quarter.

With 13 reported Series D of later financings in 4Q 2015 compared to 17 in 3Q, earlier stage deals increased to 95% of total financings in terms of total deal volume.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED

7% 4% 5% 6% 3% 6% 6% 6% 4% 2% 4% 2% 4% 4% 3% 4%

31%

23% 26% 21% 35% 31%

22% 29%

17% 13%

24%

7%

22% 28% 21% 23%

21%

20% 18%

31%

28% 30%

26% 19%

33%

27%

26%

24%

33% 26%

22%

32%

20%

28% 32% 14%

15% 13%

20% 16%

26%

20%

16%

12%

22% 17% 37% 12%

21% 26% 20%

27% 19% 21% 26%

31% 20%

37% 30%

55%

18% 26%

17% 29%

1Q-12 2Q-12 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

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

638

719 700

899

743

820 829

913

829

941 952

1014 1003 1038

961

754

$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


$ i

n T

ho

usa

nd

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 ($M)SECTOR

TOTAL RAISED

($M)

12/17/15Data &

AnalyticsB $10 $17 Summit Partners IP analytics and management software.

12/08/15Data &

AnalyticsD $30 $73

Battery Ventures; Cisco Systems, Inc.; Allegis Capital; Sutter Hill

Ventures; Tenaya Capital; Harmony Partners; Andreessen

Horowitz LLC; Citi Ventures, Inc.; HSBC Holdings

Big data discov ery solutions and analytics.

11/16/15 SaaS A $8 $9 Version One Ventures; Point Nine Capital; OMERS VenturesBusiness management software for on-site serv ice

companies.

11/10/15 SaaS A $12 $15

Founder Collectiv e; Lerer Hippeau Ventures; Bowery Capital;

Canv as Venture Fund, L.P.; Morgenthaler Technology

Inv estment Company

Mobile and software-enabled truckload shipping

marketplace.

11/10/15 Infrastructure B $250 $300 Accel Partners; Insight Venture Partners Network monitoring solutions.

11/09/15 SaaS D $42 $70 Goldman Sachs Group, Merchant Banking Div ision; Lightspeed

Venture Partners; Health Enterprise Partners

Cloud-based CRM platform that driv es patient

engagement for healthcare prov iders.

11/02/15 SaaS D $52 $107

Battery Ventures; Bessemer Venture Partners; Insight Venture

Partners; Summit Partners LLP; Lightspeed Venture Partners; Bain

Capital Ventures; Salesforce Ventures

Customer acquisition software solutions and serv ices.

11/02/15 SaaS B $50 $70 Sequoia Capital; Northgate Capital Group, L.L.C.; The Founders

Fund; Tenaya Capital; Y Combinator

Cloud-based construction document collaboration

platform for project managers.

10/20/15 SaaS C $81 $119

New Enterprise Associates; Redpoint Ventures; RRE Ventures LLC;

Mav erick Capital, Ltd.; The Founders Fund; GV; Google

Ventures, L.P.

Cloud-based employer-sponsored health insurance

platform for small to midsize employers.

10/16/15 InfrastructureLate

Stage$156 $335

General Atlantic LLC; Goldman Sachs Group; Institutional

Venture Partners; Industry Ventures, LLC; Lightspeed Venture

Partners; Adage Capital; Cross Creek Adv isors; Altimeter Capital

IT operations and application management software

and serv ices.

10/16/15 Infrastructure B $17 $25 Foundation Capital; Matrix Partners; North Bridge Venture

Partners

Threat prev ention and cybersecurity software and

serv ices.

10/15/15Data &

AnalyticsA $10 $21

Sapphire Ventures LLC; Zetta Venture Partners I, L.P.; Zetta

Venture Partners; Aspect Ventures; Salesforce Ventures;

Salesforce1 Fund; Aspect Ventures, L.P.

Mobile marketing analytics and automation for

enterprise applications.

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

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

EBITDA MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2014

10.4x

8.4x7.9x

6.4x

4.2x

5.7x

6.6x 6.8x

3.5x

4.2x 4.1x 4.1x

4.6x

3.0x3.2x

2.9x

1.4x

9.6x

8.0x

7.1x

5.8x5.4x 5.3x 5.3x

4.9x 4.8x 4.8x

3.8x3.6x 3.4x

3.0x 2.9x

2.1x1.6x

4Q 2014 4Q 2015

82.8x

59.2x 59.2x61.5x

20.6x23.1x

48.5x

11.1x

16.0x 14.9x 14.5x

23.6x

16.9x

10.3x

24.9x

13.6x12.4x

46.2x 45.3x

50.4x

31.9x

25.5x

19.5x17.7x

14.1x 14.5x 15.1x11.3x

19.4x

14.3x

7.4x

12.0x8.7x

13.2x

4Q 2014 4Q 2015

REVENUE MULTIPLE ANALYSIS 4Q 2015 VS. 4Q 2014STOCK PERFORMANCE (1- & 3-YEAR)

10.5%

14.6%

21.5%

8.5%

40.9%

17.9%

3.4%

1.7%

8.8%

14.2%

(11.2%)

1.1%

(0.8%)

(8.0%)

(13.8%)

(30.7%)

(2.8%)

104.8%

58.1%

117.9%

88.4%

188.5%

101.9%

59.3%

59.6%

43.8%

51.8%

14.3%

45.8%

14.8%

5.6%

(6.8%)

(5.8%)

(36.9%)

1-Year Performance 3-Year Performance

Large-Cap SaaS

HCM

M arket ing

Small-Cap SaaS

Public Sector / Non-Prof it

SCM & Logist ics

HCIT

IT Security

PLM & Engineering

Financial

Enterprise

Data & Analyt ics

IT Operat ions M gmt

Bellwethers

Communicat ion

Data Storage

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES

9.6x

8.0x

7.1x

5.8x

5.4x

5.3x

5.3x

4.9x

4.8x

4.8x

3.8x

3.6x

3.4x

3.0x

2.9x

2.1x

1.6x

Large-Cap SaaS

HCM

Marketing

Small-Cap SaaS

Public Sector / Non-Profit

SCM & Logistics

HCIT

IT Security

PLM & Engineering

Financial

Enterprise

Data & Analytics

IT Operations Mgmt

Bellwethers

Communication

Data Storage

Energy

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

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

31.2% 111.6% 10.5% 60.4% - 40.2%

29.5% 40.9% 20.1% 81.1% 37.3% -

25.1% 70.4% 16.1% 69.5% - -

23.4% 64.5% 11.8% 58.8% - 30.4%

11.3% 64.1% 17.8% 58.0% - 67.7%

12.7% 23.0% 21.3% - 24.2% 58.4%

19.0% 44.7% 11.5% 70.0% 5.9% 15.6%

23.1% 15.2% 28.2% 48.7% 29.5% 70.6%

5.9% 38.4% 21.9% 47.0% 0.6% 54.1%

6.6% 37.7% 30.8% 47.7% - 85.6%

7.8% 30.1% 27.1% 52.6% 33.8% 9.5%

10.6% 29.2% 15.7% 92.3% - 17.4%

18.2% 32.7% 24.7% 41.3% 49.0% -

(0.4%) 6.8% 29.9% 77.6% 72.9% 76.7%

11.7% 40.2% 16.8% 31.7% 47.6% -

1.9% 19.3% 16.2% 22.5% - 38.5%

1.6% 41.4% 7.8% 46.3% 18.0% 99.6%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

Overall, 2015 was a down year for technology IPOs, and technology companies’ share of U.S. IPOs fell to a seven-year low.

Over the past year, the majority of technology IPOs consisted of larger companies as evidenced by nearly 50% of technology IPOs receiving $1 billion+ valuations at offering.

Revenue growth remains a core focus for IPO investors and 39% of technology companies generated 75%+ LTM revenue growth leading up to their IPOs.

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

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

26%

35%

39%

< 25% 25 - 75% > 75%

10%

23%

23%

45%

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

13%

26%

32%

29%

$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

12

9

7

9

6

16

13 13

11

18

7

11

5

15

3

8


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

2012 Total: 37 2013 Total: 48 2014 Total: 47 2015 Total: 31

PAGE | 15



98.3%

(23.2%)

32.0%

(1.2%)

53.0%

33.1%

3.3%

(29.7%)

(41.6%)

14.7% 14.7%

(1.2%)

7.4%

17.5%

9.9%

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

3/26/15 4/23/15 5/20/15 6/4/15 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

$18.0 $17.0 $25.0 $17.0 $14.0 $8.0 $12.0 $14.0 $19.0 $16.0 $17.0 $16.0 $9.0 $10.0 $21.0

$126.0 $87.0 $222.5 $195.5 $100.1 $56.3 $74.4 $98.0 $156.8 $103.2 $425.0 $70.4 $243.0 $77.5 $462.0

56.5% (52.8%) 26.2% (28.8%) 8.1% 6.6% 21.7% 19.1% (5.5%) (5.4%) (8.4%) 30.1% 45.4% (4.0%) 43.2%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

th1

Sto

ck

Pe

rfo

rma

nc

e2

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

56.5%

(52.8%)

26.2%

(28.8%)

8.1% 6.6%

21.7% 19.1%

(5.5%) (5.4%) (8.4%)

30.1%

45.4%

(4.0%)

43.2%

172.5%

43.4% 11.8%

150.5%

57.4% 34.8%

102.3%

26.9%

194.4%

52.6%

540.7%

150.0%

107.0%

45.4% 64.3%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

350.0%

450.0%

550.0%

650.0%

750.0%

PAGE | 16



17.4%

4.7%

4.8%

7.6%

13.2%

23.1%

29.3%

Other

Textile & Apparel

Retail

Manufacturing &Machinery

Healthcare

Services & Leasing

Technology

LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER

2015 New-Issue LBO Loan Volume: $5.5 billion Percentage of Total Purchase Price

In 2015, middle market LBO loan multiples remained strong and near all time highs.

After a robust 2Q and 3Q 2015, middle market LBO loan volumes and values in 4Q decreased to $410 million, the lowest level since 2010.

Technology companies were the largest recipients of LBO loans in 2015, indicating the continued credit interest in the software sector.

Lenders, however, demanded slightly higher equity contributions to finance LBOs as evidenced by the median debt as a percentage of total purchase price declining to 58.0% in 2015.

4.9x4.8x

4.1x4.0x

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

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

62.6% 63.4%

60.3%

50.0%

56.6%

54.5%

60.0%

66.3%

60.0%

58.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$1.0B

$0.6B

$0.9B

$0.6B$0.7B

$1.0B

$2.0B

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.9B

$2.0B

$0.4B

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Institutional Pro Rata

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

PAGE | 17



SELECT HW&CO. TMT TRANSACTIONS

has received a

significant investment

from

MARKETING

ANALYTICS


TECH-ENABLED

SERVICES


ECOMMERCE

RETAIL


HCM SOFTWARE

has become a wholly-

owned subsidiary of

ENERGY

TECHNOLOGY

has received a

majority equity

investment from

PUBLIC SECTOR

SOFTWARE


EDUCATION

TECHNOLOGY


HEALTHCARE

TECHNOLOGY

has received a minority

investment from

ENERGY

TECHNOLOGY

has received a

majority investment

from

MARKETING

ANALYTICS


HEALTHCARE

TECHNOLOGY

has been

recapitalized by

SUPPLY CHAIN

SOFTWARE


FINANCIAL

TECHNOLOGY

has merged with

SUPPLY CHAIN

SOFTWARE


equity investment from

HEALTHCARE

TECHNOLOGY


INFRASTRUCTURE

SOFTWARE

has acquired

HEALTHCARE

TECHNOLOGY


ENERGY

TECHNOLOGY


HEALTHCARE

TECHNOLOGY


INFRASTRUCTURE

SOFTWARE


EDUCATION

TECHNOLOGY


HEALTHCARE

TECHNOLOGY

has received an

investment from

APPLICATION

SOFTWARE


HEALTHCARE

TECHNOLOGY

has been

recapitalized by

SUPPLY CHAIN

SOFTWARE


DIGITAL

MEDIA


ERP / BUSINESS

MANAGEMENT


DATA

ANALYTICS


ENERGY

TECHNOLOGY


INFRASTRUCTURE

SOFTWARE


HEALTHCARE

TECHNOLOGY


APPLICATION

SOFTWARE


MANAGED

SERVICES

has been

recapitalized by

NON-PROFIT

SOFTWARE


HEALTHCARE

TECHNOLOGY


NON-PROFIT

SOFTWARE


HEALTHCARE

TECHNOLOGY


FINANCIAL

TECHNOLOGY


INFRASTRUCTURE

SOFTWARE


HEALTHCARE

TECHNOLOGY


IT SERVICES


equity investment from

ENERGY

TECHNOLOGY

GFI Energy Group

a division of


HEALTHCARE

TECHNOLOGY

has received a

significant equity

investment from

ERP / BUSINESS

MANAGEMENT


LEGAL

TECHNOLOGY


ERP / BUSINESS

MANAGEMENT


REAL ESTATE

SOFTWARE


MARKETING

ANALYTICS


HEALTHCARE

TECHNOLOGY

has merged with

DIGITAL

MEDIA

http://www.aderant.com/

http://www.aderant.com/

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

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

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

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

PAGE | 18



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSESA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

ALAP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP EMC HP

Communication Software Nuance NICE Synchronoss NeuStar BroadSoft Tangoe MobileIron

Enterprise Software Oracle IBM SAP Adobe Intuit Sage Open Text TOTVS Progress

Human Capital Management (HCM) Nuance NICE Synchronoss NeuStar BroadSoft Tangoe MobileIron

Marketing Software Salesforce Adobe HubSpot Marketo Callidus Bazaarvoice

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

Supply Chain & Logistics Software Manhattan Fleetmatics Descartes SPS RIB SciQuest American Park City MiX Telematics Amber Road

Energy Software AVEVA Silver Spring OPOWER PSI EnerNOC

Financial Software Fiserv Jack Henry Markit FIS DH Black Knight Bottomline Envestnet Q2 Holdings BasWare

Healthcare IT (HCIT) Cerner athenahealth Veeva Allscripts Medidata Inovalon Press Ganey HMS Quality Systems

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

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Workday ServiceNow NetSuite athenahealth Ultimate Guidewire Veeva Medidata Proofpoint

Large-Cap SaaS (cont'd) ZenDesk Paycom Demandware

Small-Cap SaaS (≤ $2Bn Mkt Cap) Fleetmatics HubSpot Cornerstone Xero Limited. RealPage LogMeIn RingCentral Cvent CyberArk Marketo

Small-Cap SaaS (cont'd) SPS Qualys Benefitfocus Callidus Q2 Holdings Alarm.Com MINDBODY inContact Textura Instructure

Small-Cap SaaS (cont'd) OPOWER AppFolio Five9 Castlight Health SciQuest Bazaarvoice Xactly Amber Road

Data & Analytics Splunk Tableau Teradata Qlik Inovalon Verint Pegasystems MicroStrategy PROS Holdings

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

IT Operations Mgmt (cont'd) New Relic Progress Infoblox Radware

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

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

IT Security (cont'd) Imperva Qualys AVG Tech

PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

SOFTWARE BELLWETHERS

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

Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. 2017E Rev. LTM EBITDA Earnings

Alphabet Inc. GOOGL $466,033 $528,448 97.4% 46.6% 120.0% 12.8% 11.6% 32.5% 6.5x 5.5x 4.8x 17.8x 32.2x

Microsoft Corporation MSFT 382,664 443,169 97.6% 19.4% 107.7% (0.8%) (1.0%) 35.7% 4.2x 4.0x 3.8x 11.8x 36.1x

Oracle Corporation ORCL 143,484 153,471 80.6% (18.8%) 9.6% (3.5%) (2.6%) 40.6% 3.8x 3.8x 3.7x 7.6x 16.7x

Cisco Systems, Inc. CSCO 103,363 137,841 89.6% (2.4%) 38.2% 4.9% 0.4% 27.6% 2.1x 2.1x 2.0x 7.2x 14.4x

IBM Corporation IBM 163,756 133,507 78.1% (14.2%) (28.2%) (12.8%) (11.8%) 25.6% 2.0x 2.0x 2.0x 6.7x 9.4x

SAP SE SAP 102,107 95,929 NA 13.6% 0.1% 15.7% 16.8% 32.2% 4.8x 4.4x 4.2x 14.8x 27.8x

EMC Corporation EMC 51,102 49,789 85.5% (13.7%) 1.5% 2.8% 1.9% 21.0% 2.1x 2.0x 1.9x 7.0x 21.1x

HP Inc. HPQ 28,829 21,215 28.8% (70.5%) (16.9%) (7.3%) (53.7%) 11.8% 0.3x 0.6x 0.6x 2.2x 4.7x

Median $123,423 $135,674 83.0% (8.0%) 5.6% 1.0% (0.3%) 29.9% 3.0x 2.9x 2.9x 7.4x 18.9x

COMMUNICATION SOFTWARE

Nuance Communications, Inc. NUAN $7,768 $6,181 91.1% 39.4% (10.9%) 0.4% 1.4% 12.8% 4.0x 3.8x 3.7x 14.9x NM

NICE Systems Ltd. NICE 3,059 3,493 85.5% 13.9% 74.8% 6.5% (8.6%) 20.8% 2.9x 3.1x 2.9x 13.3x 13.9x

Synchronoss Technologies, Inc. SNCR 1,588 1,555 67.2% (15.8%) 67.0% 30.1% 26.3% 28.5% 2.9x 2.3x 2.0x 10.6x 31.7x

NeuStar, Inc. NSR 1,710 1,284 73.4% (13.8%) (42.8%) 7.7% 8.5% 39.9% 1.7x 1.4x 2.2x 3.8x 6.8x

BroadSoft, Inc. BSFT 938 1,019 86.5% 21.8% (2.7%) 25.7% 24.9% 6.9% 3.7x 2.9x 2.4x 19.1x NM

Tangoe, Inc. TNGO 299 331 56.2% (35.6%) (29.3%) 5.7% 3.8% 4.4% 1.4x 1.3x 1.2x 9.0x NM

MobileIron, Inc. MOBL 192 290 27.9% (63.8%) NA 17.3% 14.8% NM 1.3x 1.1x 1.0x NM NM

Median $1,588 $1,284 73.4% (13.8%) (6.8%) 7.7% 8.5% 16.8% 2.9x 2.3x 2.2x 12.0x 13.9x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $143,484 $153,471 80.6% (18.8%) 9.6% (3.5%) (2.6%) 40.6% 3.8x 3.8x 3.7x 7.6x 16.7x

IBM Corporation IBM 163,756 133,507 78.1% (14.2%) (28.2%) (12.8%) (11.8%) 25.6% 2.0x 2.0x 2.0x 6.7x 9.4x

SAP SE SAP 102,107 95,929 NA 13.6% 0.1% 15.7% 16.8% 32.2% 4.7x 4.4x 4.1x 14.7x 27.8x

Adobe Systems Incorporated ADBE 44,776 46,857 97.4% 29.2% 149.3% 15.6% 19.7% 25.9% 9.3x 7.8x 6.4x 41.5x 74.4x

Intuit Inc. INTU 25,852 25,476 88.4% 4.7% 62.3% 1.4% 9.0% 27.2% 6.0x 5.5x 4.9x 16.0x 60.9x

Sage Group plc SGE 10,107 9,603 96.5% 22.6% 76.9% 6.1% 3.4% 27.1% 4.8x 4.6x 4.3x 17.9x 32.7x

Open Text Corporation OTEX 6,694 5,816 77.6% (17.7%) 71.5% 4.5% (0.6%) 27.8% 3.7x 3.6x 3.5x 10.3x 27.6x

TOTVS S.A. TOTS3 1,260 1,280 NA (40.5%) (60.3%) 4.7% 7.8% 20.8% 2.7x 2.3x 2.1x 11.3x 18.6x

Progress Software Corporation PRGS 1,131 1,205 78.5% (11.2%) 14.3% 11.4% 22.1% 20.1% 3.1x 2.6x 2.5x 9.0x 79.6x

Median $25,852 $25,476 78.5% (11.2%) 14.3% 4.7% 7.8% 27.1% 3.8x 3.8x 3.7x 11.3x 27.8x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

Public Sector /

Non-Profit

PAGE | 20



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

HUMAN CAPITAL MANAGEMENT SOFTWARE

Paychex, Inc. PAYX $18,614 $19,090 96.5% 14.6% 70.1% 8.0% 7.6% 42.8% 6.7x 6.1x 5.7x 16.6x 26.2x

Workday, Inc. WDAY 14,070 15,458 83.7% (2.4%) 46.2% 51.4% 47.0% NM 13.2x 9.1x 6.9x NM NM

The Ultimate Software Group, Inc. ULTI 5,482 5,602 90.4% 33.2% 107.1% 20.8% 21.9% 11.3% 9.4x 7.2x 5.9x 45.3x 219.7x

Paycom Software, Inc. PAYC 2,202 2,224 81.2% 42.9% NA 48.4% 46.2% 20.1% 10.8x 7.6x 5.7x 89.3x 121.6x

Paylocity Holding Corporation PCTY 1,983 2,061 86.5% 55.3% NA 42.0% 39.4% NM 12.0x 8.2x 6.4x NM NM

Cornerstone OnDemand, Inc. CSOD 1,897 1,880 84.8% (1.9%) 16.9% 32.3% 29.5% NM 5.9x 4.3x 3.5x NM NM

Xactly Corporation XTLY 213 249 79.9% NA NA 20.9% NA NM 3.0x 2.3x 1.9x NM NM

Halogen Software Inc. HGN 75 113 64.1% (29.8%) NA 17.4% 15.7% NM 1.2x 1.0x 0.9x NM NM

Median $2,202 $2,224 84.3% 14.6% 58.1% 32.3% 29.5% 20.1% 8.0x 6.7x 5.7x 45.3x 121.6x

MARKETING SOFTWARE

salesforce.com, inc. CRM $52,763 $52,058 94.6% 32.2% 86.6% 24.2% 23.7% 6.3% 8.4x 6.5x 5.4x 59.2x NM

Adobe Systems Incorporated ADBE 44,776 46,857 97.4% 29.2% 149.3% 15.6% 19.7% 25.9% 9.3x 7.8x 6.4x 41.5x 74.4x

HubSpot, Inc. HUBS 1,816 1,920 93.7% 67.5% NA 56.6% 54.6% NM 11.1x 7.6x 5.8x NM NM

Marketo, Inc. MKTO 1,137 1,243 80.6% (12.3%) NA 42.8% 39.9% NM 5.9x 4.1x 3.2x NM NM

Callidus Software Inc. CALD 947 1,042 85.8% 13.7% 309.0% 27.8% 26.6% NM 5.8x 4.5x 3.8x NM NM

Bazaarvoice, Inc. BV 300 353 46.6% (45.5%) (53.2%) 9.3% 4.0% NM 1.5x 1.4x 1.3x NM NM

Median $1,477 $1,582 89.7% 21.5% 117.9% 26.0% 25.1% 16.1% 7.1x 5.5x 4.6x 50.4x 74.4x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY $18,982 $20,297 95.8% 31.0% 44.3% 24.2% 21.1% 26.5% 6.4x 5.7x 5.2x 22.8x 48.5x

Autodesk, Inc. ADSK 12,932 13,729 92.6% 1.4% 72.4% 3.5% (1.1%) 6.8% 5.1x 6.1x 5.3x 29.3x NM

Ansys, Inc. ANSS 7,455 8,232 94.0% 12.8% 37.4% 3.0% 0.9% 45.6% 7.9x 7.2x 6.7x 15.9x 32.4x

Synopsys Inc. SNPS 6,148 6,908 86.4% 4.9% 43.3% 9.0% 5.9% 18.4% 2.7x 2.5x 2.4x 9.0x 30.6x

Cadence Design Systems Inc. CDNS 5,828 6,191 89.3% 9.7% 54.0% 9.7% 7.6% 23.7% 3.5x 3.2x 3.0x 12.1x 26.1x

PTC Inc. PTC 4,361 3,966 81.0% (5.5%) 53.8% (7.5%) (3.7%) 20.2% 3.5x 3.6x 3.7x 12.1x 83.4x

Aspen Technology, Inc. AZPN 2,963 3,145 80.8% 7.8% 36.6% 10.4% 6.7% 43.1% 6.5x 6.1x 5.6x 16.7x 24.9x

Mentor Graphics Corp. MENT 2,145 2,164 65.6% (16.0%) 8.2% 6.4% (5.2%) 22.4% 1.7x 1.8x 1.6x 7.2x 14.4x

Nemetschek AG XTRA:NEM 1,904 1,924 NA 97.6% 356.8% 31.8% 28.4% 19.0% 6.5x 5.6x 5.0x 31.4x 51.7x

AVEVA Group plc LSE: AVV 1,369 1,525 68.9% 16.5% (36.9%) (4.7%) (0.9%) 21.3% 4.5x 4.4x 4.2x 13.2x 35.6x

Median $6,148 $6,908 83.7% 8.8% 43.8% 9.0% 5.9% 21.9% 4.8x 5.0x 4.6x 14.5x 32.4x



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SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $4,716 $4,835 85.1% 62.5% 338.6% 16.2% 13.1% 29.0% 8.6x 7.7x 7.0x 33.0x 49.6x

Fleetmatics Group PLC FLTX 1,797 1,960 80.8% 43.1% 101.9% 24.7% 22.9% 24.9% 6.6x 5.2x 4.4x 25.4x 51.1x

The Descartes Systems Group Inc TSX: DSG 1,467 1,520 96.6% 34.7% 116.0% 8.6% 8.5% 31.3% 8.1x 7.1x 6.3x 28.6x 80.9x

SPS Commerce, Inc. SPSC 1,044 1,167 89.7% 24.0% 88.4% 25.8% 23.8% 10.1% 6.9x 5.5x 4.6x 60.2x NM

RIB Software AG DB:RSTA 367 560 NA (7.9%) 109.1% 47.4% 16.5% 27.9% 4.0x 3.6x 3.1x 10.4x 37.0x

SciQuest, Inc. SQI 225 361 71.0% (10.2%) (18.2%) 2.0% 3.3% 6.8% 2.2x 2.0x 1.8x 11.6x NM

American Software, Inc. AMSW.A 231 292 89.6% 11.7% 31.2% 11.6% 12.7% 13.7% 2.1x 1.9x NM 13.5x 28.8x

Park City Group Inc. PCYG 220 228 80.1% 32.0% 297.0% 7.4% NA NM 16.4x NM NM NM NM

MiX Telematics Limited JSE:MIX 87 144 70.0% (31.4%) (47.0%) 7.0% 4.5% 17.7% 0.9x 0.9x 0.8x 5.1x 10.2x

Amber Road, Inc. AMBR 135 134 47.6% (50.2%) NA 7.5% 5.8% NM 2.0x 1.8x 1.5x NM NM

Median $367 $560 80.4% 17.9% 101.9% 11.6% 12.7% 21.3% 5.3x 3.6x 3.8x 19.5x 43.3x

ENERGY SOFTWARE

AVEVA Group plc LSE: AVV $1,369 $1,525 68.9% 16.5% (36.9%) (4.7%) (0.9%) 21.3% 4.5x 4.4x 4.2x 13.2x 35.6x

Silver Spring Networks, Inc. SSNI 604 725 89.1% 70.9% NA 74.2% 1.6% 7.8% 1.6x 1.9x 1.7x -31.9x 39.0x

OPOWER, Inc. OPWR 478 547 68.0% (25.8%) NA 19.6% 15.3% NM 3.3x 2.7x 2.3x NM NM

PSI Aktiengesellschaft PSAN 193 219 NA (2.8%) (31.0%) 5.5% 6.0% 6.3% 1.0x 0.9x 0.8x 13.3x 33.1x

EnerNOC, Inc. ENOC 119 119 20.2% (75.1%) (67.2%) (16.4%) (16.1%) NM 0.3x 0.3x 0.3x NM NM

Median $478 $547 68.0% (2.8%) (36.9%) 5.5% 1.6% 7.8% 1.6x 1.9x 1.7x 13.2x 35.6x

FINANCIAL SOFTWARE

Fiserv, Inc. FISV $24,828 $20,902 93.6% 28.9% 131.5% 3.8% 3.8% 30.8% 4.8x 4.4x 4.2x 15.0x 29.7x

Jack Henry & Associates Inc. JKHY 6,156 6,239 97.7% 25.6% 98.8% 6.6% 6.6% 35.1% 4.8x 4.5x 4.2x 14.2x 28.8x

Markit Ltd. MRKT 5,818 5,419 97.7% 14.2% NA 5.4% 4.5% 35.9% 5.3x 4.7x 4.5x 12.3x 44.5x

Oracle Financial Services Software Ltd. 532466 4,434 4,782 84.0% 6.4% (6.2%) 1.4% 12.6% 41.0% 7.4x 6.2x 5.6x 19.2x 27.7x

DH Corporation DH 3,851 2,419 71.6% (28.0%) 5.4% 25.4% NA 25.4% 3.9x 3.1x 3.0x 15.1x 31.5x

Black Knight Financial Services, Inc. BKFS 4,796 2,248 85.1% NA NA NA NA 35.0% 5.3x 4.8x 4.4x NM NM

Bottomline Technologies (de), Inc. EPAY 1,143 1,109 94.1% 17.6% 12.7% 5.6% 8.0% 13.0% 3.5x 3.0x 2.7x 14.1x NM

Envestnet, Inc. ENV 1,012 1,071 51.3% (39.3%) 114.0% 22.4% 19.9% 12.2% 2.5x 1.7x 1.5x 18.3x 88.9x

Q2 Holdings, Inc. QTWO 901 1,021 86.6% 40.0% NA 38.5% 36.9% NM 9.0x 6.3x 4.9x NM NM

BasWare Oyj HLSE:BAS1V 535 574 NA (18.4%) 51.8% 10.2% 14.5% 6.2% 3.5x 2.9x 2.5x 40.6x 324.7x

Median $4,434 $2,419 85.9% 14.2% 51.8% 6.1% 6.6% 30.8% 4.8x 4.5x 4.2x 15.1x 31.5x



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HEALTHCARE IT

Cerner Corporation CERN $20,751 $20,584 79.5% (6.9%) 55.3% 29.0% 30.0% 27.6% 5.1x 4.1x 3.7x 18.2x 39.5x

athenahealth, Inc. ATHN 6,432 6,250 94.5% 10.5% 119.6% 23.8% 22.9% 7.8% 7.3x 5.8x 4.8x 46.2x NM

Veeva Systems Inc. VEEV 3,497 3,837 85.7% 9.2% NA 32.2% 29.4% 23.8% 9.2x 6.9x 5.6x 40.0x 76.4x

Allscripts Healthcare Solutions, Inc. MDRX 3,482 2,907 97.5% 20.4% 63.3% (0.5%) 1.5% 7.1% 2.5x 2.4x 2.2x 17.2x NM

Medidata Solutions, Inc. MDSO 2,692 2,729 80.4% 3.2% 151.6% 19.5% 19.0% 10.5% 7.0x 5.7x 4.8x 35.9x NM

Inovalon Holdings, Inc. INOV 2,136 2,565 50.4% NA NA 21.0% 22.1% 33.6% 5.3x 4.0x 3.4x 16.0x 40.4x

Press Ganey Holdings, Inc. PGND 1,832 1,663 87.3% NA NA 12.7% NA 9.2% 5.9x 5.3x 4.9x NM NM

HMS Holdings Corp. HMSY 1,114 1,061 56.1% (41.6%) (52.4%) 1.2% 5.7% 18.5% 2.4x 2.2x 1.9x 10.0x 79.2x

Quality Systems Inc. QSII 870 981 86.0% 3.4% (7.1%) 8.0% 2.4% 11.5% 1.7x 1.7x 1.5x 12.3x 30.6x

Median $2,692 $2,729 85.7% 3.4% 59.3% 19.5% 19.0% 11.5% 5.3x 4.1x 3.7x 17.7x 40.4x

PUBLIC SECTOR / NON-PROFIT SOFTWARE

Constellation Software Inc. TSX: CSU $9,024 $8,811 96.5% 39.4% 245.4% 12.5% 8.9% 17.8% 5.1x 4.2x 3.6x 25.5x 58.5x

Tyler Technologies, Inc. TYL 5,669 5,916 94.7% 59.3% 259.9% 17.5% 18.3% 22.6% 10.1x 7.4x 6.4x 45.3x 82.7x

Blackbaud Inc. BLKB 3,261 3,035 96.1% 52.2% 188.5% 12.5% 13.7% 15.9% 5.4x 4.4x 4.1x 27.2x 126.2x

NIC Inc. EGOV 1,169 1,291 94.2% 9.4% 20.4% 7.6% 7.6% 25.8% 4.1x 3.7x 3.4x 15.2x 31.3x

2U, Inc. TWOU 1,100 1,275 70.5% 42.3% NA 32.0% 35.1% NM 8.0x 5.6x 4.3x NM NM

Instructure, Inc. INST 610 549 88.1% NA NA NA NA NM 9.4x 5.8x 4.1x NM NM

K12, Inc. LRN 229 343 49.7% (25.9%) (56.9%) 0.5% (10.4%) 5.9% 0.2x 0.3x NM 2.0x 68.9x

Median $2,215 $2,163 94.2% 40.9% 188.5% 12.5% 11.3% 17.8% 5.4x 4.4x 4.1x 25.5x 68.9x

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

salesforce.com, inc. CRM $52,763 $52,058 94.6% 32.2% 86.6% 24.2% 23.7% 6.3% 8.4x 6.5x 5.4x 59.2x NM

Workday, Inc. WDAY 14,070 15,458 83.7% (2.4%) 46.2% 51.4% 47.0% NM 13.2x 9.1x 6.9x NM NM

ServiceNow, Inc. NOW 13,501 13,763 94.8% 27.6% 188.2% 50.5% 46.7% NM 14.7x 9.9x 7.5x NM NM

NetSuite Inc. N 6,636 6,726 77.0% (22.5%) 25.7% 34.9% 32.9% NM 9.6x 6.9x 5.4x NM NM

athenahealth, Inc. ATHN 6,432 6,250 94.5% 10.5% 119.6% 23.8% 22.9% 7.8% 7.3x 5.8x 4.8x 46.2x NM

The Ultimate Software Group, Inc. ULTI 5,482 5,602 90.4% 33.2% 107.1% 20.8% 21.9% 11.3% 9.4x 7.2x 5.9x 45.3x NM

Guidewire Software, Inc. GWRE 3,764 4,301 92.9% 18.8% 102.4% 5.4% 8.3% 4.5% 9.8x 8.7x 7.7x 49.7x NM

Veeva Systems Inc. VEEV 3,497 3,837 85.7% 9.2% NA 32.2% 29.4% 23.8% 9.2x 6.9x 5.6x 40.0x 76.4x

Medidata Solutions, Inc. MDSO 2,692 2,729 80.4% 3.2% 151.6% 19.5% 19.0% 10.5% 7.0x 5.7x 4.8x 35.9x NM

Proofpoint, Inc. PFPT 2,550 2,626 86.2% 34.8% 428.1% 36.8% 34.9% NM 10.3x 7.4x 5.8x NM NM

Zendesk, Inc. ZEN 2,065 2,345 93.8% 8.5% NA 66.3% 62.5% NM 11.2x 7.1x 5.3x NM NM

Paycom Software, Inc. PAYC 2,202 2,224 81.2% 42.9% NA 48.4% 46.2% 20.1% 10.8x 7.6x 5.7x 89.3x 121.6x

Demandware, Inc. DWRE 1,851 2,034 71.1% (6.2%) 97.5% 46.3% 45.9% NM 8.6x 6.1x 4.8x NM NM

Median $4,623 $4,952 86.2% 10.5% 104.8% 33.5% 31.2% 10.5% 9.6x 7.1x 5.6x 46.2x 99.0x



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

Fleetmatics Group PLC FLTX $1,797 $1,960 80.8% 43.1% 101.9% 24.7% 22.9% 24.9% 6.6x 5.2x 4.4x 25.4x 51.1x

HubSpot, Inc. HUBS $1,816 $1,920 93.7% 67.5% NA 56.6% 54.6% NM 11.1x 7.6x 5.8x NM NM

Cornerstone OnDemand, Inc. CSOD $1,897 $1,880 84.8% (1.9%) 16.9% 32.3% 29.5% NM 5.9x 4.3x 3.5x NM NM

Xero Limited. XRO $1,685 $1,839 74.7% 7.6% 116.3% 74.8% 69.7% NM 15.5x 8.4x 5.8x NM NM

RealPage, Inc. RP $1,785 $1,760 93.6% 2.2% 4.1% 14.1% 15.2% 9.0% 4.0x 3.4x 3.1x 26.5x NM

LogMeIn, Inc. LOGM $1,436 $1,682 89.0% 36.0% 199.4% 23.2% 21.6% 11.8% 5.6x 4.5x 3.9x 29.6x NM

RingCentral, Inc. RNG $1,561 $1,673 91.9% 58.0% NA 35.1% 33.5% NM 5.7x 4.3x 3.5x NM NM

Cvent, Inc. CVT $1,306 $1,465 93.7% 25.4% NA 31.8% 31.5% 1.4% 7.4x 5.6x 4.6x 77.3x NM

CyberArk Software, Ltd. CYBR $1,179 $1,429 59.1% 13.8% NA 67.9% 48.8% 22.7% 8.1x 5.8x 5.0x 73.9x 63.5x

Marketo, Inc. MKTO $1,137 $1,243 80.6% (12.3%) NA 42.8% 39.9% NM 5.9x 4.1x 3.2x NM NM

SPS Commerce, Inc. SPSC $1,044 $1,167 89.7% 24.0% 88.4% 25.8% 23.8% 10.1% 6.9x 5.5x 4.6x 60.2x NM

Qualys, Inc. QLYS $957 $1,132 59.7% (12.3%) 123.7% 24.1% 23.1% 22.3% 6.1x 4.7x 3.9x 34.3x 31.1x

Benefitfocus, Inc. BNFT $1,027 $1,061 76.6% 10.8% NA 34.1% 32.9% NM 6.0x 4.5x 3.7x NM NM

Callidus Software Inc. CALD $947 $1,042 85.8% 13.7% 309.0% 27.8% 26.6% NM 5.8x 4.5x 3.8x NM NM

Q2 Holdings, Inc. QTWO $901 $1,021 86.6% 40.0% NA 38.5% 36.9% NM 9.0x 6.3x 4.9x NM NM

Alarm.Com Holdings, Inc. ALRM $640 $760 82.4% NA NA 26.1% NA 15.1% 3.2x 2.8x 2.4x NM 57.3x

MINDBODY, Inc. MB $509 $593 82.3% NA NA NA NA NM 5.5x 3.8x 3.0x NM NM

inContact, Inc. SAAS $562 $588 80.0% 8.5% 84.2% 33.3% 27.6% NM 2.7x 2.2x 1.8x NM NM

Textura Corporation TXTR $490 $563 69.1% (24.2%) NA 41.6% 37.4% NM 6.1x 4.3x 3.4x NM NM

Instructure, Inc. INST $610 $549 88.1% NA NA NA NA NM 9.4x 5.8x 4.1x NM NM

OPOWER, Inc. OPWR $478 $547 68.0% (25.8%) NA 19.6% 15.3% NM 3.3x 2.7x 2.3x NM NM

AppFolio, Inc. APPF $450 $490 73.2% NA NA NA NA NM 6.6x 4.2x 3.0x NM NM

Five9, Inc. FIVN $427 $439 96.0% 94.2% NA 23.0% 22.2% NM 3.5x 2.9x 2.4x NM NM

Castlight Health, Inc. CSLT $257 $404 35.6% (63.5%) NA 88.9% 64.3% NM 3.8x 2.5x 1.9x NM NM

SciQuest, Inc. SQI $225 $361 71.0% (10.2%) (18.2%) 2.0% 3.3% 6.8% 2.2x 2.0x 1.8x 11.6x NM

Bazaarvoice, Inc. BV $300 $353 46.6% (45.5%) (53.2%) 9.3% 4.0% NM 1.5x 1.4x 1.3x NM NM

Xactly Corporation XTLY $213 $249 79.9% NA NA 20.9% NA NM 3.0x 2.3x 1.9x NM NM

Amber Road, Inc. AMBR $135 $134 47.6% (50.2%) NA 7.5% 5.8% NM 2.0x 1.8x 1.5x NM NM

Median $924 $1,032 80.7% 8.5% 88.4% 26.0% 23.4% 11.8% 5.8x 4.3x 3.4x 31.9x 54.2x



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DATA & ANALYTICS

Splunk, Inc. SPLK $6,679 $7,628 76.5% (0.2%) 102.7% 47.7% 44.5% NM 11.2x 7.8x 6.0x NM NM

Tableau Software, Inc. DATA 6,074 6,825 71.7% 11.2% NA 69.1% 57.9% NM 10.2x 7.0x 5.3x NM NM

Teradata Corporation TDC 3,350 3,514 56.2% (39.5%) (57.3%) (6.1%) (7.9%) 17.2% 1.3x 1.4x 1.4x 4.5x NM

Qlik Technologies, Inc. QLIK 2,624 2,945 73.8% 2.5% 45.8% 10.1% 10.6% 0.5% 4.4x 3.6x 3.1x 63.5x NM

Inovalon Holdings, Inc. INOV 2,136 2,565 50.4% NA NA 21.0% 22.1% 33.6% 5.3x 4.0x 3.4x 16.0x 40.4x

Verint Systems Inc. VRNT 2,912 2,525 61.0% (30.4%) 38.1% 8.3% 1.1% 14.2% 2.5x 2.4x 2.2x 10.4x NM

Pegasystems Inc. PEGA 1,878 2,102 91.0% 32.4% 142.5% 12.7% 13.7% 12.6% 2.9x 2.5x 2.2x 22.8x 59.3x

MicroStrategy Inc. MSTR 1,581 2,038 79.2% 10.4% 92.0% (10.3%) (8.9%) 26.2% 3.0x 2.8x 2.6x 54.6x 22.8x

PROS Holdings, Inc. PRO 642 684 82.6% (16.2%) 26.0% 5.4% (8.0%) NM 3.6x 3.9x 3.3x NM NM

Median $2,624 $2,565 73.8% 1.1% 45.8% 10.1% 10.6% 15.7% 3.6x 3.6x 3.1x 19.4x 49.8x

IT OPERATIONS MANAGEMENT

VMware, Inc. VMW $18,100 $23,817 60.5% (31.4%) (39.9%) 11.4% 9.8% 26.2% 2.8x 2.5x 2.3x 8.4x 25.1x

Red Hat, Inc. RHT 14,731 15,138 98.1% 19.8% 56.4% 14.3% 14.3% 18.5% 7.5x 6.5x 5.7x 32.4x 78.0x

ServiceNow, Inc. NOW 13,501 13,763 94.8% 27.6% 188.2% 50.5% 46.7% NM 14.7x 9.9x 7.5x NM NM

CA, Inc. CA 11,239 11,901 85.5% (6.2%) 29.9% (6.1%) (6.0%) 31.4% 2.7x 2.8x 2.7x 6.4x 15.7x

Citrix Systems, Inc. CTXS 11,881 11,637 89.9% 18.6% 15.3% 4.2% 3.3% 24.7% 3.7x 3.6x 3.4x 14.3x 41.1x

F5 Networks, Inc. FFIV 6,050 6,824 71.7% (25.7%) (0.2%) 10.8% 6.9% 31.0% 3.2x 2.9x 2.6x 8.8x 18.7x

Arista Networks, Inc. ANET 4,748 5,274 87.9% 28.1% NA 45.7% 42.5% 19.8% 6.2x 4.5x 3.8x 31.4x 48.7x

Micro Focus International plc LSE:MCRO 6,507 5,118 98.3% 39.7% 113.1% 183.7% 47.5% 37.4% 5.3x 5.3x 5.3x 31.4x 37.0x

NetScout Systems, Inc. NTCT 2,975 3,043 67.4% (16.0%) 18.1% 39.1% 128.5% 18.0% 4.9x 2.2x 2.1x 21.4x 79.6x

Software AG XTRA:SOW 2,249 2,247 NA 17.4% (32.2%) (2.2%) 0.6% 28.6% 2.4x 2.3x 2.3x 9.0x 15.4x

New Relic, Inc. NEWR 1,585 1,774 90.8% 4.6% NA 68.8% 58.8% NM 11.0x 7.3x 5.7x NM NM

Progress Software Corporation PRGS 1,131 1,205 78.5% (11.2%) 14.3% 11.4% 22.1% 20.1% 3.1x 2.6x 2.5x 9.0x 79.6x

Infoblox Inc. BLOX 750 1,101 65.6% (9.0%) 2.3% 31.5% 23.1% NM 2.3x 1.9x 1.6x NM NM

Radware Ltd. RDWR 603 695 61.6% (30.3%) (7.0%) 4.0% (2.5%) 18.0% 2.7x 2.7x 2.5x 15.0x 29.6x

Median $5,399 $5,196 82.0% (0.8%) 14.8% 12.9% 18.2% 24.7% 3.4x 2.8x 2.7x 14.3x 37.0x



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DATA STORAGE



EMC Corporation EMC $51,102 $49,789 85.5% (13.7%) 1.5% 2.8% 1.9% 21.0% 2.1x 2.0x 1.9x 7.0x 21.1x

NetApp, Inc. NTAP 4,431 7,756 63.5% (36.0%) (20.9%) (6.7%) (6.2%) 11.3% 0.8x 0.8x 0.8x 3.1x 19.6x

Iron Mountain Incorporated IRM 10,397 5,703 65.0% (30.1%) (13.0%) (2.4%) (3.0%) 29.8% 5.6x 3.3x 3.3x 11.1x 43.8x

Brocade Communications Systems, Inc. BRCD 3,115 3,760 70.8% (22.5%) 72.2% 2.4% 0.6% 25.7% 1.4x 1.4x 1.4x 4.9x 11.0x

CommVault Systems, Inc. CVLT 1,383 1,783 75.1% (23.9%) (43.5%) (4.9%) (3.8%) 2.3% 2.4x 2.2x 2.1x 10.5x NM

Box, Inc. BOX 1,486 1,653 56.4% NA NA 45.5% 38.3% NM 5.3x 3.8x 3.0x NM NM

Barracuda Networks, Inc. CUDA 784 997 39.9% (47.9%) NA 17.4% 15.8% 1.6% 2.6x 2.2x 1.9x 10.7x NM

Nimble Storage, Inc. NMBL 507 716 28.6% (66.5%) NA 49.4% 40.9% NM 1.7x 1.3x 1.0x NM NM

Carbonite, Inc. CARB 204 267 63.5% (31.3%) 5.9% 11.7% 11.8% NM 1.5x 1.4x 1.2x NM NM

Median $1,486 $1,783 63.5% (30.7%) (5.8%) 2.8% 1.9% 16.2% 2.1x 2.0x 1.9x 8.7x 20.3x

IT SECURITY

Cisco Systems, Inc. CSCO $103,363 $137,841 89.6% (2.4%) 38.2% 4.9% 0.4% 27.6% 2.1x 2.1x 2.0x 7.2x 14.4x

Palo Alto Networks, Inc. PANW 14,863 15,132 87.8% 43.7% 229.1% 56.0% 43.7% NM 14.4x 9.7x 7.6x NM NM

Check Point Software Technologies Ltd. CHKP 13,419 14,718 92.0% 3.6% 70.8% 8.9% 8.9% 52.9% 8.4x 7.6x 7.1x 15.3x 21.7x

Symantec Corporation SYMC 12,569 14,186 76.9% (18.1%) 11.6% (7.9%) (26.2%) 28.2% 2.0x 3.5x 3.4x 5.9x 21.1x

VeriSign, Inc. VRSN 9,712 9,741 93.0% 53.3% 125.0% 4.3% 4.6% 62.6% 9.3x 8.6x 8.2x 14.4x 28.7x

Trend Micro Inc. TSE: 4704 4,561 5,599 NA 47.1% 36.8% 9.3% 7.4% 33.9% 4.5x 3.8x 3.7x 14.1x 29.2x

Fortinet Inc. FTNT 4,461 5,369 62.0% 1.7% 48.3% 29.4% 31.0% 6.6% 4.8x 3.6x 3.0x 31.6x 309.8x

Gemalto NV GTO 5,823 5,284 64.8% (27.0%) (33.0%) 18.6% 26.2% 16.3% 1.9x 1.6x 1.5x 11.0x 25.2x

FireEye, Inc. FEYE 2,858 3,330 37.5% (34.3%) NA 71.0% 46.8% NM 4.9x 3.5x 2.8x NM NM

Proofpoint, Inc. PFPT 2,550 2,626 86.2% 34.8% 428.1% 36.8% 34.9% NM 10.3x 7.4x 5.8x NM NM

Imperva Inc. IMPV 1,736 1,990 81.2% 28.1% 100.8% 37.1% 40.0% NM 8.2x 6.0x 4.8x NM NM

Qualys, Inc. QLYS 957 1,132 59.7% (12.3%) 123.7% 24.1% 23.1% 22.3% 6.1x 4.7x 3.9x 34.3x 31.1x

AVG Technologies N.V. AVG 1,170 1,049 68.8% 1.6% 26.7% 11.5% 14.1% 29.1% 2.8x 2.6x 2.5x 8.5x 31.9x

Median $4,561 $5,369 76.9% 1.7% 59.6% 18.6% 23.1% 28.2% 4.9x 3.8x 3.7x 14.1x 28.7x

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