the tech report - q3 2015

The Tech ReportQ3 2015 Market Reviews

Q3 2015 STRICTLY PRIVATE AND CONFIDENTIAL

1QUARTERLY TECH REPORT

Welcome to the Q3 edition of Results International’s Tech Report

Here at Results we cover all aspects of technology with a particular focus on enterprise software / SaaS, software-related

IT services, and tech enabled services. However we like to turn our attention to a number of specific sectors at the end of

every quarter to consider the trends and analyse the activity in the M&A, fundraising and public markets.

We have produced our view on the previous quarter’s proceedings in a series of individual market reviews on:

• SaaS

• HealthTech

• Cybersecurity

• AdTech & MarTech

The global economic slowdown and financial market volatility has had an impact on public markets for SaaS, HealthTech,

Cybersecurity, Adtech & MarTech with our Results indices all dropping from the previous quarter. Nevertheless the

indices for SaaS and Cybersecurity for the year remain up, both outperforming the broader Nasdaq Composite Index.

The private markets in AdTech & MarTech and HealthTech have seen a high number of M&A transactions over the past

quarter while fundraising appetite and valuation remain healthy across all four market sectors.

Companies displaying strong top-line growth with quality clients and an innovative products, within each of their sectors,

continue to outperform their peers on the public markets.

We hope you enjoy the document, and please do get in touch if you would like to discuss any of the themes with us. We

look forward to speaking with you soon.

SECTION 1

SaaS


3QUARTERLY TECH REPORT – Q3: SAAS

About Results International

A MARKET-LEADING CORPORATE FINANCE ADVISORY FIRM… …WITH GLOBAL REACH

• 40 person team; 250+ completed transactions

• Broad global network

• Creative solutions

• Senior level focus on every transaction

• Founded in 1991

• Entrepreneurial and owner-managed

DEEP DOMAIN EXPERTISE IN THREE INTER-RELATED SECTORS… …AND BROAD INDUSTRY NETWORKS

Marketing

Healthcar

eTechnolog

y

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Xnpv6mT1mXrNHM&tbnid=3pJvLIYwfhFInM:&ved=0CAUQjRw&url=http://my.opera.com/community/opera/buttons/&ei=NuDXUv-XB8am0QXpzoGIBw&bvm=bv.59568121,d.bGE&psig=AFQjCNE6m80XE3hdbm-4Akuss3EvthcY7Q&ust=1389965726223087


http://www.covance.com/index.php


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=c0RRud0PBBv66M&tbnid=_v7sGUY1JN5xDM:&ved=0CAUQjRw&url=http://weijiblog.com/2010/03/42-merck/&ei=sEjUUdHsIcSJhQfd_ICgDw&bvm=bv.48705608,d.ZG4&psig=AFQjCNH22HylAPJvqj1KeOfdNdZOwjzjUQ&ust=1372953090294243


4

90

100

110

120

130

140

Large Cap Mid Cap Small Cap Global SaaS Index NASDAQ Comp

QUARTERLY TECH REPORT – Q3: SAAS

Results International Global SaaS Indices

Sep-15Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15

Notes: Based on share prices as at 30th September 2015; indices weighted by market capitalisation

Sources: Capital IQ and Results analysis

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8.7%

7.2%

4.3%

2.8%

(0.4%)

Q3 2015 PERFORMANCE

Large Cap (1.2%)

Mid Cap (12.7%)

Small Cap (10.8%)

Global SaaS (4.2%)

5

16.4%

21.2%

(8.6%)

(0.3%)

(6.5%)

8.9%

(9.9%)

(23.4%)

(15.7%)

(27.3%)(30.4%)

(16.5%)

(5.2%)

(22.5%)

(12.8%)

1.3%4.8%

(4.6%)

(22.9%)

5.7%

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%


Global SaaS Universe: Large & Mid Cap Share Price Performance

Note: Based on share prices as at 30th September 2015


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Q3 2

015

LARGE CAP MID CAP

1.3%

(4.2%) (6.3%)

20.7% 18.2%26.5%

(16.5%)

(39.0%)

(10.7%)

1.5% 2.3%

(16.9%)

(4.1%) (4.9%)

7.2%

(12.0%)

61.0%

104.2%

(40.0%)

47.9%

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

6QUARTERLY TECH REPORT – Q3: SAAS

Global SaaS Universe: Small Cap Share Price Performance

(1) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stock’s respective IPO dates and the 30th September 2015



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Q3 2

015

SMALL CAP

(28.7%)

(16.8%)

30.6%

13.0%

(11.0%) (9.2%)

(16.9%)

(6.5%) (7.2%)

(53.6%)

(29.5%)(32.5%)

3.2% 3.2%

(20.9%)

(7.5%)

(60.0%)

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

16.0%

(39.4%)

32.7% 35.2%

(19.9%)

(10.3%)

(30.6%)

54.1%

(2.1%)

(63.6%)

7.0%

(33.5%)

27.7%31.7%

(11.5%)(6.9%)

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

(1)

(1)

(1)

7

Global SaaS: Valuation Benchmarks

(1) Global SaaS represents the median of all stocks in Large Cap, Mid Cap and Small Cap, with no weighting applied

Notes: EV = Enterprise Value; financials calendarised to December year end; median values reported

See Selected Publicly Traded Companies (slides 6 and 7) for details of companies included in each category

Sources: Capital IQ and analyst reports

REVENUE GROWTH (2015-16E) EV / REVENUE 2015E

EBITDA MARGIN 2015E EV / EBITDA 2015E


21.6%

19.5%21.0% 21.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Large Cap Mid Cap Small Cap Global SaaS

8.3 x

5.7 x

4.2 x

5.6 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x


34.8 x

20.1 x 19.5 x

23.6 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

35.0 x

40.0 x


17.4%

18.7%

(3.8%)

13.5%

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%


8

OPERATING METRICS VALUATION METRICS

PRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE SUBSCRIPTION REV. GROWTH GROSS MARGIN EBITDA MARGIN REVENUE EBITDA

COMPANY (30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 HISTORICAL CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

LARGE CAP

salesforce.com, inc. 69.43 88.5% 46,254 1,170 851 47,105 6,518 93.9% 20.9% 76.0% 17.4% 21.0% 7.2 x 6.0 x 41.5 x 28.5 x

Solera Holdings Inc. 54.00 92.4% 3,634 480 2,461 6,095 1,205 n.a 9.0% 68.3% 45.0% 39.0% 5.1 x 4.6 x 13.5 x 11.9 x

Workday, Inc. 68.86 70.7% 14,369 1,907 (1,404) 12,964 1,126 75.5% 37.6% 66.4% 4.5% 8.0% 11.5 x 8.4 x n.m. n.m.

ServiceNow, Inc. 69.45 83.2% 11,755 723 (264) 11,492 997 82.4% 36.3% 63.6% 14.0% 15.2% 11.5 x 8.5 x 82.1 x 55.4 x

athenahealth, Inc. 133.35 87.0% 5,279 116 185 5,463 920 94.7% 21.5% 59.8% 18.2% 18.4% 5.9 x 4.9 x 32.6 x 26.6 x

NetSuite Inc. 83.90 73.7% 6,692 386 (107) 6,585 744 80.5% 30.3% 68.2% 6.9% 8.0% 8.9 x 6.8 x n.m. 84.8 x

The Ultimate Software Group, Inc. 179.01 91.7% 5,227 111 (102) 5,125 617 81.5% 21.6% 59.8% 23.9% 24.9% 8.3 x 6.8 x 34.8 x 27.5 x

25th percentile 78.4% 832 80.8% 21.2% 61.7% 10.5% 11.6% 6.6 x 5.4 x 32.6 x 26.8 x

Median 87.0% 997 82.0% 21.6% 66.4% 17.4% 18.4% 8.3 x 6.8 x 34.8 x 28.0 x

75th percentile 90.1% 1,166 91.0% 33.3% 68.3% 21.1% 22.9% 10.2 x 7.6 x 41.5 x 48.7 x

MID CAP

RealPage, Inc. 16.62 71.9% 1,316 29 21 1,337 464 96.1% 12.0% 56.8% 18.7% 19.0% 2.9 x 2.6 x 15.4 x 13.5 x

Medidata Solutions, Inc. 42.11 68.7% 2,383 266 (19) 2,363 404 82.3% 19.5% 74.7% 23.2% 25.0% 5.9 x 4.9 x 25.2 x 19.6 x

Veeva Systems Inc. 23.41 69.5% 3,573 438 (438) 3,136 394 69.8% 26.8% 60.7% 27.7% 29.2% 8.0 x 6.3 x 28.7 x 21.5 x

Constant Contact, Inc. 24.24 56.1% 795 181 (181) 615 372 n.a 14.0% 72.5% 19.9% 21.8% 1.7 x 1.5 x 8.3 x 6.7 x

Cornerstone OnDemand, Inc. 33.00 81.1% 1,812 225 4 1,815 343 n.a 26.9% 70.5% 0.0% 0.2% 5.3 x 4.2 x n.m. n.m.

Fleetmatics Group PLC 49.09 93.6% 1,925 180 (155) 1,770 283 n.a 21.3% 75.2% 31.6% 32.4% 6.3 x 5.2 x 19.8 x 15.9 x

IntraLinks Holdings, Inc. 8.29 64.8% 487 56 23 509 274 n.a 6.6% 72.9% 14.0% 15.0% 1.9 x 1.7 x 13.3 x 11.6 x

LogMeIn, Inc. 68.16 90.4% 1,748 237 (237) 1,512 267 n.a 18.2% 89.6% 24.0% 24.1% 5.7 x 4.8 x 23.6 x 19.9 x

LivePerson Inc. 7.56 51.4% 432 37 (37) 395 245 n.a 12.4% 74.9% 8.0% 9.5% 1.6 x 1.4 x 20.1 x 15.2 x

Ellie Mae, Inc. 66.57 80.3% 2,120 92 (90) 2,030 239 n.a 23.7% 71.4% 25.7% 26.7% 8.5 x 6.9 x 33.0 x 25.7 x

Demandware, Inc. 51.68 68.1% 2,037 187 (186) 1,850 234 92.3% 33.8% 73.8% 4.9% 6.6% 7.9 x 5.9 x n.m. 89.5 x

Marketo, Inc. 28.42 79.8% 1,305 110 (104) 1,201 210 90.2% 32.9% 62.7% (10.3%) (5.2%) 5.7 x 4.3 x n.m. n.m.

Bazaarvoice, Inc. 4.51 48.0% 363 103 (46) 317 201 n.a 10.4% 68.5% (3.5%) 4.8% 1.6 x 1.4 x n.m. 29.9 x


Median 69.5% 274 90.2% 19.5% 72.5% 18.7% 19.0% 5.7 x 4.3 x 20.1 x 19.6 x



Global SaaS: Selected Publicly Traded Companies


Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 100x EV / EBITDA; Net debt includes minority interest

Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m

• Mid Cap: Revenues between $200m and $500m

• Small Cap: Revenues less than $200m


9


PRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE SUBSCRIPTION REV. GROWTH GROSS MARGIN EBITDA MARGIN REVENUE EBITDA

COMPANY (30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 HISTORICAL CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

SMALL CAP

J ive Software, Inc. 4.67 65.4% 353 116 (112) 241 194 88.7% 6.5% 68.2% 0.5% 4.2% 1.2 x 1.2 x n.m. 27.7 x

Cvent, Inc. 33.66 97.2% 1,489 164 (164) 1,325 186 90.2% 22.8% 70.2% 10.5% 12.2% 7.1 x 5.8 x 67.7 x 47.8 x

Benefitfocus, Inc. 31.25 65.8% 954 89 (48) 907 176 93.3% 24.3% 36.3% (20.6%) (11.9%) 5.1 x 4.1 x n.m. n.m.

HubSpot, Inc. 46.37 84.4% 1,734 110 (109) 1,624 173 58.4% 28.9% 68.0% (13.5%) (8.1%) 9.4 x 7.3 x n.m. n.m.

Qualys, Inc. 28.46 51.3% 1,088 158 (158) 930 166 n.a 24.0% 77.2% 28.8% 29.3% 5.6 x 4.5 x 19.5 x 15.5 x

SPS Commerce, Inc. 67.89 87.3% 1,172 121 (121) 1,051 158 n.a 19.2% 68.7% 13.8% 14.9% 6.6 x 5.6 x 48.2 x 37.4 x

Xero Limited. 9.60 56.6% 1,302 172 (172) 1,130 120 94.9% 55.3% 65.7% (35.2%) (17.3%) 9.4 x 6.1 x n.m. n.m.

Marin Software Incorporated 3.13 32.3% 116 41 (40) 76 106 n.a 12.1% 64.2% (11.3%) (1.3%) 0.7 x 0.6 x n.m. n.m.

SciQuest, Inc. 10.00 54.8% 278 128 (128) 150 105 n.a 8.0% 69.1% 17.7% 19.1% 1.4 x 1.3 x 8.1 x 6.9 x

MINDBODY, Inc. 15.63 89.6% 652 323 (307) 344 99 58.0% 31.4% 57.1% (24.5%) (15.2%) 3.5 x 2.6 x n.m. n.m.

Textura Corporation 25.84 82.7% 695 68 (68) 627 98 n.a 37.9% 79.6% 13.5% 19.7% 6.4 x 4.6 x 47.6 x 23.6 x

ChannelAdvisor Corporation 9.94 44.2% 250 58 (57) 194 97 n.a 15.3% 71.5% (8.0%) (3.9%) 2.0 x 1.7 x n.m. n.m.

Xactly Corporation 7.80 77.3% 249 188 (160) 88 74 77.4% 23.0% 59.0% (17.5%) (12.2%) 1.2 x 1.0 x n.m. n.m.

Halogen Software Inc. 6.35 76.2% 142 40 (40) 102 49 87.7% 18.0% 71.8% (9.2%) (5.8%) 1.5 x 1.3 x n.m. n.m.

Craneware plc 10.27 98.2% 275 42 (42) 234 48 87.3% 10.9% 94.6% 30.5% 30.5% 4.9 x 4.4 x 15.9 x 14.3 x

StatPro Group plc 1.12 84.1% 76 3 (3) 73 48 n.a. 4.3% n.a. 13.6% 14.6% 1.5 x 1.5 x 11.3 x 10.0 x

25th percentile 56.2% 91 77.4% 11.8% 64.9% (14.5%) (9.0%) 1.5 x 1.3 x 13.6 x 13.3 x

Median 76.8% 105 87.7% 21.0% 68.7% (3.8%) 1.4% 4.2 x 3.4 x 19.5 x 19.5 x



Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 100x EV / EBITDA; Net debt includes minority interest

Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m

• Mid Cap: Revenues between $200m and $500m

• Small Cap: Revenues less than $200m



Global SaaS: Selected Publicly Traded Companies (Cont.)

10

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SECTION 2

HealthTech Heartbeat


12QUARTERLY TECH REPORT – Q3: HEALTHTECH







• Founded in 1991



Marketing

Healthcar

eTechnolog

y

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=DFQYiv0ak9F7FM&tbnid=JC0hUqObSsXtIM:&ved=0CAgQjRwwAA&url=http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=45709189634603&ir_client_id=687&ei=XFtMUracJemM7QaDtIHgCg&psig=AFQjCNEyyjGJ5RmA-3O_m4xWlR5jBhRVwA&ust=1380822236675855

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=DFQYiv0ak9F7FM&tbnid=JC0hUqObSsXtIM:&ved=0CAgQjRwwAA&url=http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=45709189634603&ir_client_id=687&ei=XFtMUracJemM7QaDtIHgCg&psig=AFQjCNEyyjGJ5RmA-3O_m4xWlR5jBhRVwA&ust=1380822236675855







13

80

90

100

110

120

130

140

150

Healthcare IT - Europe Healthcare IT - US Biopharma IT Generalists NASDAQ Comp FTSE 100

QUARTERLY TECH REPORT – Q3: HEALTHTECH

Results International Global HealthTech Indices


Note: Based on share prices as at 30 September 2015

Note: Indices weighted by market capitalisation

Note: Healthcare IT – US excludes McKesson because the majority of its revenue is generated from pharmaceutical distribution

Note: (1)

Excludes Generalists


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Q3 2015 PERFORMANCE

Healthcare IT -

Europe(0.8%)

Healthcare IT - US (10.5%)

Biopharma IT (19.1%)

Generalists (7.8%)

HealthTech(1) (10.9%)

(1.3%)

29.8%

2.8%

(6.4%)

(1.2%)

(8.5%)

14

(5.9%) (4.9%)

13.9%

6.2% 5.7% 3.2%

(17.7%)(13.2%)

(5.1%)(9.4%)

16.4%

(9.1%)

(24.7%) (25.3%)

47.9%

(28.3%)

(21.1%)(18.2%)

(48.4%)

(21.8%)(16.5%)

(22.5%)

(6.1%)

(60%)

(40%)

(20%)

-

20%

40%

60%


HealthTech: Share Price Performance

Note: Share price performance as at 30 September 2015

Note: *Last quarter & last 12 months reference dates adjusted to first trading day post IPO for Teladoc (01-Jul-15); and ‘Last 12 Months’ Evolent Health (05-Jun-15) and Inovalon Holdings (12-Feb-

15)


LAST

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Q3 2

015

**

55.2%44.3% 41.2%

24.2%15.5%

31.7%

(5.0%)

0.7%11.1%

(7.6%)

1.3%

(3.2%) (9.4%)(22.9%)

222.7%

(9.2%)(26.7%)

(15.4%)

(67.5%)

(21.8%) (16.9%)(4.9%)

36.8%

(100%)

(50%)

-

50%

100%

150%

200%

250%

HEALTHCARE IT - EUROPE HEALTHCARE IT - US BIOPHARMA IT

*


HealthTech: Selected Stocks – Performance Since IPO

COMPANYIPO

DATEDESCRIPTION

RAISED ($M)

INDICATIVE PRICE RANGE ($)

IPO LISTING PRICE ($)

INCREASE VS. RANGE

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / REVENUE 2015E

EV / EBITDA 2015E

NYSE

Jun-15Video telemedicine platform for

medical consultations156.8 15.00-17.00 19.00 18.8% 50% 17.3% 887(2) 11.9x n.m.(3)

NYSE

Jun-15Healthcare delivery and

payments software 195.5 14.00-16.00 17.00 13.3% 10.9% (6.1%) 1,017 6.4x n.m.(4)

NasdaqGS

Feb-15Cloud-based healthcare data

analytics software600.0 24.00-26.00 27.00 8.0% 0.0% (22.9%) 2,710 6.2x 17.0x

NYSE

Apr-14Healthcare information

technology and services1,300.0 18.00-21.00 20.00 2.5% 15.0% 45.5% 13,644 4.7x 15.1x

NYSE

Mar-14Healthcare enterprise

management software 177.6 13.00-15.00 16.00 14.3% 148.8% (73.8%) 301 4.0x n.m.(5)

LSE

Dec-13

Software, hardware and services

for the healthcare and energy

sectors

199.7 n.a. 2.93 n.a. 20.1% 65.8% 332 3.3x 13.6x

NYSE

Oct-13Cloud-based CRM software for

the biopharma industry 260.9 16.00-18.00 20.00 17.6% 85.8% 17.1% 3,136 8.0x 28.7x

Note: Calendarised to December year end; $ millions, except share price data

Note: (1)

Current increase from IPO price; Market data as of 30 September 2015

Note: (2) Current EV adjusted to reflect additional cash from IPO not accounted for in most recent Balance Sheet

Note: (3)

Teladoc projecting negative EBITDA for CY2015

Note: (4)

Evolent Health projecting negative EBITDA for CY2015

Note: (5)

Castlight projecting negative EBITDA for CY2015

Source: Capital IQ

16

27.9%

23.2%

18.2%

23.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Generalists Healthcare IT -Europe

Healthcare IT - US Biopharma IT

11.0 x

13.5 x 14.3 x

25.2 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x



3.7 x3.3 x

4.0 x

5.9 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x



4.5%

6.8%

13.7%

19.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%




HealthTech: Valuation Benchmarks

Note: EV = Enterprise Value; Financials calendarised to December year end

Note: Median values reported; excludes negative multiples

Note: See Selected Publicly Traded Companies (Slide 9) for details of companies included in each category

Note: McKesson excluded from above analysis because majority of revenue is generated from pharmaceutical distribution

Source: Capital IQ



17

21

17

20

32

29

18

28 27 28

32

44

61

54

49

70

4

3

5

1

1

7

27 5

6

2

8

12

5

5

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

10

20

30

40

50

60

70

80

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

TOTA

L D

ISC

LOSED

DEA

L V

ALU

E (

$M

)

NU

MB

ER

OF D

EA

LS

Healthcare IT Biopharma IT Healthcare IT Total Disclosed Deal Value Biopharma IT Total Disclosed Deal Value


HealthTech: Global M&A Activity Q1 2012 – Q3 2015

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


HealthTech: Selected Deals in Q3 2015

DATE BUYER TARGET EV ($M) EV/REVENUE EV/EBITDA COMPANY DESCRIPTIONTARGET

LOCATION

Sep-15 120.0 - - SaaS-based biopharma marketing compliance software

Sep-15 - - -Mobile clinical assessment and patient flow management

systems

Sep-15 - - -Mobile workflow management software for the healthcare,

government and industrial sectors

Sep-15 - - - Tech-enabled services and software for the healthcare industry

Sep-15 - - - Cloud-based financial performance analytics for healthcare

Aug-15 11.7 2.0x - Clinical patient flow and compliance education software

Aug-15 140.0 3.0x -Data-driven advisory services and BI systems for the life

sciences industry

Aug-15 150.0 3.8x - Mobile medical education platform for physicians

Aug-15 65.0 - - Financial management software for hospitals

Aug-15 903.9 4.0x 20.7x Medical image management systems

Aug-15 - - - Genomic laboratory information management software

Aug-15 400.0 - -Saas-based performance management and improvement

software for healthcare

Jul-15 - - - Laboratory information system middleware

Jul-15 - - - Healthcare professional and organisation database

Jul-15 - - - Healthcare professional and organisation database

Jul-15 4.7 - -Primary and secondary care administration and compliance

software

Jul-15 910.0 - -Cloud-based healthcare data analytics platform and

engagement solutions

Jul-15 - - - Clinical decision support software

Note: Financials relate to the companies’ full fiscal year before the transaction took place

Note: Enterprise Value (EV) = transaction value scaled to 100% shareholding plus net debt (includes minority interest)

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


HealthTech: Selected European Fundraisings in Q3 2015

DATE COMPANYTYPE OF ROUND

FUNDSRAISED ($M)

INVESTOR PARTICIPATON COMPANY DESCRIPTIONCOMPANYLOCATION

Sep-15 Seed 0.3 IT Translation InvestissementPharmaceutical data management and

analysis system

Sep-15DESKTOP GENETICS Venture 2.1

IQ Capital Partners LLP; London Business Angels;

Funding London; Capital Enterprise, Investment ArmGenome engineering and editing software

Sep-15 Seed 0.3 - Online veterinarian consultation app

Aug-15 Series A - Wild Blue Cohort Online consumer care platform

Aug-15 Series A 3.4 LEO Pharma A/S; Personal Health Solutions CapitalSkin health tracking and inspection mobile

application

Jul-15 Seed 0.2 Esade Ban Angels Lung image analysis web application

Jul-15 Seed 1.5 -Online GP consultation platform for desktop

and smartphone

Jul-15 Seed - Health InnovationsHealthcare quality data gathering and

reporting software

Jul-15 Seed 5.0 Smedvig Capital LimitedPersonalised healthcare information assistant

applications

Sources: Press releases, Capital IQ and Results analysis

20


PRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN REVENUE EBITDA

COMPANY (30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

GENERALISTS WITH SIGNIFICANT HEALTHTECH EXPOSURE

Oracle 36.12 77% 157,128 55,930 (13,439) 143,689 37,947 1.5% 60.7% 45.0% 46.7% 3.8 x 3.7 x 8.4 x 8.0 x

EMC 24.16 78% 46,961 7,742 1,163 48,124 25,167 4.5% 62.4% 25.5% 26.8% 1.9 x 1.8 x 7.5 x 6.8 x

SAP 64.55 82% 78,855 3,990 7,177 86,032 22,735 5.3% 72.2% 34.4% 34.5% 3.8 x 3.6 x 11.0 x 10.4 x

Thermo Fisher Scientific 122.28 87% 49,262 808 13,257 62,519 16,809 4.5% 46.2% 25.3% 26.3% 3.7 x 3.6 x 14.7 x 13.5 x

Computer Sciences Corporation 61.38 84% 8,576 2,199 443 9,019 11,687 (1.0%) 24.1% 14.4% 17.6% 0.8 x 0.8 x 5.4 x 4.4 x

Thomson Reuters 40.04 98% 31,207 1,299 8,060 39,267 9,212 2.6% 28.0% 27.9% 29.2% 3.2 x 3.1 x 11.4 x 10.6 x

Aspen Technology 37.91 81% 3,198 215 (215) 2,983 456 7.3% 81.4% 44.4% 46.9% 6.5 x 6.1 x 14.7 x 13.0 x

25th percentile 2.1% 37.1% 25.4% 26.6% 2.5 x 2.5 x 8.0 x 7.4 x

Median 4.5% 60.7% 27.9% 29.2% 3.7 x 3.6 x 11.0 x 10.4 x


HEALTHCARE IT - EUROPE

CompuGroup Medical 32.90 80% 1,636 23 390 2,026 615 6.5% 33.9% 22.0% 23.1% 3.3 x 3.1 x 15.0 x 13.4 x

Cegedim 40.18 84% 561 316 190 751 572 2.8% 46.2% 19.1% 19.8% 1.3 x 1.3 x 6.9 x 6.4 x

EMIS Group 15.89 99% 1,004 9 6 1,009 243 7.2% 48.2% 30.8% 31.0% 4.2 x 3.9 x 13.5 x 12.5 x

NoemaLife 6.87 96% 52 6 42 94 119 12.8% 22.4% 19.2% 19.6% 1.1 x 1.0 x 5.8 x 5.0 x

Servelec Group 4.86 98% 341 6 (9) 332 101 6.2% 45.3% 24.3% 25.4% 3.3 x 3.1 x 13.6 x 12.3 x

Craneware 10.27 98% 275 42 (42) 234 48 10.9% 93.0% 30.5% 30.5% 4.9 x 4.4 x 15.9 x 14.3 x


Median 6.8% 45.7% 23.2% 24.3% 3.3 x 3.1 x 13.5 x 12.4 x


HEALTHCARE IT - US

McKesson 185.03 76% 43,452 5,635 5,677 49,129 190,425 6.1% 6.3% 2.6% 2.8% 0.3 x 0.2 x 10.0 x 8.8 x

Cerner 59.96 79% 21,502 558 65 21,567 4,743 20.1% 84.5% 33.6% 34.8% 4.5 x 3.8 x 13.5 x 10.9 x

IMS Health 29.10 87% 9,788 348 3,856 13,644 2,911 10.2% 53.4% 31.1% 31.7% 4.7 x 4.3 x 15.1 x 13.4 x

Allscripts Healthcare Solutions 12.40 80% 2,343 77 595 2,938 1,406 5.3% 45.5% 17.2% 19.2% 2.1 x 2.0 x 12.1 x 10.3 x

athenahealth 133.35 87% 5,279 116 185 5,463 920 21.5% 59.8% 18.2% 18.4% 5.9 x 4.9 x 32.6 x 26.6 x

MedAssets 20.06 84% 1,211 10 831 2,042 763 1.7% 76.1% 31.0% 31.6% 2.7 x 2.6 x 8.6 x 8.3 x

Quality Systems 12.48 67% 753 117 (117) 636 505 6.0% 54.6% 13.9% 15.6% 1.3 x 1.2 x 9.1 x 7.6 x

Inovalon Holdings 20.83 62% 3,216 797 (507) 2,710 437 24.7% 68.8% 36.5% 36.8% 6.2 x 5.0 x 17.0 x 13.5 x

Merge Healthcare 7.10 100% 713 20 249 962 251 9.2% 60.8% 21.6% 23.1% 3.8 x 3.5 x 17.8 x 15.2 x

Healthstream 21.81 67% 699 140 (140) 559 205 13.7% 56.6% 15.4% 16.9% 2.7 x 2.4 x 17.7 x 14.2 x

Computer Programs & Systems 42.13 65% 476 37 (37) 439 189 6.3% 45.9% 20.8% 22.9% 2.3 x 2.2 x 11.2 x 9.6 x

Evolent Health 15.96 69% 941 219 75 1,017 159 35.0% 27.5% (24.4%) (13.8%) 6.4 x 4.7 x n.m. n.m.

Castlight Health 4.20 31% 465 164 (164) 301 76 52.3% 39.1% (83.8%) (43.5%) 4.0 x 2.6 x n.m. n.m.

Teladoc 22.29 63% 909 172 (22) 887 75 57.3% 77.2% (67.7%) (26.1%) 11.9 x 7.5 x n.m. n.m.


Median 13.7% 56.6% 18.2% 19.2% 4.0 x 3.5 x 14.3 x 12.2 x


BIOPHARMA IT

Medidata Solutions 42.11 69% 2,383 266 (19) 2,363 404 19.5% 74.7% 23.2% 25.0% 5.9 x 4.9 x 25.2 x 19.6 x

Veeva Systems 23.41 70% 3,573 438 (438) 3,136 394 26.8% 62.9% 27.7% 29.2% 8.0 x 6.3 x 28.7 x 21.5 x

Instem 2.90 88% 37 2 - 28 23 6.1% 14.8% 15.4% 17.3% 1.6 x 1.5 x 10.3 x 8.7 x


Median 19.5% 62.9% 23.2% 25.0% 5.9 x 4.9 x 25.2 x 19.6 x


EBITDA MARGIN


HealthTech: Selected Publicly Traded Companies

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 50x EV / EBITDA; Net debt includes minority interest

Note: (1)

McKesson excluded from ‘Healthcare IT – US’ summary analysis above because majority of revenue is generated from pharmaceutical distribution

Note: (2)

Teladoc current EV adjusted to reflect additional cash from IPO not accounted for in most recent Balance Sheet

Source: Capital IQ

(1)

(2)


Contact Us






t +44 20 7629 7575

www.resultsig.com


10012



t +44 (0)20 7514 8236

e [email protected]

Richard LatnerMANAGER

t +44 (0)20 7514 8241

e [email protected]

Maurice WatkinsPARTNER – NEW YORK

t +1 (0)646 747 6500

e [email protected]

Pierre-Georges

RoyPARTNER – NEW YORK

t +1 (0)646 747 6505

e [email protected]







SECTION 3

CyberScope


23








• Founded in 1991


Marketing

Healthcar

eTechnolog

y

QUARTERLY TECH REPORT – Q3: CYBERSECURITY



24

80

100

120

140

160

180

200

Broadline Endpoint Network Data Monitoring & Analysis Global Security NASDAQ Comp

Results International Global Cybersecurity Indices




27.1%

14.3%

2.8%

12.6%

(12.5%)

12.8%

30.3%

Q3 2015 PERFORMANCE

Broadline (11.7%)

Endpoint (18.1%)

Network (4.4%)

Data (23.5%)

Monitoring & Analysis (23.2%)

Global Security (9.8%)

LAST

12 M

ON

TH S

HA

RE P

RIC

E P

ER

FO

RM

AN

CE


25

Cybersecurity: Share Price Performance

(1) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stock’s respective IPO dates (see slide 4) and the 30th September 2015



LAST

12 M

ON

THS

Q3 2

015

BROADLINE ENDPOINT NETWORK DATA

MONITORING

& ANALYSIS

(16.3%)

0.6%

(20.1%) (20.2%) (21.3%)

(47.5%)

(0.2%)

(60.7%)

(0.3%)

2.8%

(3.8%)(1.5%)

(26.8%)

(4.0%)

(34.9%)

(3.3%)(5.3%)

(28.9%) (29.5%)

(9.5%)

(70.0%)

(60.0%)

(50.0%)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

(17.2%)

13.6%

31.2%

56.6%

(0.8%)

(72.2%)

(0.1%)

(39.3%)

14.6%

68.1%

(2.5%)

75.3%

(7.9%)

4.9% 4.1%

127.9%

62.4%

(10.5%)

7.0%

(9.5%)

(100.0%)

(50.0%)

0.0%

50.0%

100.0%

150.0%

(1

)

(1

)

(1)

(1)


26

Cybersecurity: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTIONRAISED

($M)INDICATIVE PRICE

RANGE ($)IPO LISTING PRICE ($)

INCREASE VS. RANGE

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / REVENUE 2015E

EV / EBITDA 2015E

Jul-15Detection, analytics

and penetration

testing162 13.00-15.00 25.14 79.6% 0.5% (9.5%) 1,093 10.5 x n.m.

Jun-15Antivirus and network

security552 n.a. 3.54 n.a. 7.4% (0.1%) 1,913 3.7 x 24.9 x

Sep-14Privileged account

security86 13.00-15.00 16.00 14.3% 87.1% 213.4% 1,521 10.2 x 48.2 x

Jun-14Mobile security and

management100 8.00-10.00 9.00 0.0% 22.4% (65.6%) 137 0.9 x n.m.

Nov-13Network security and

data storage64 18.00-21.00 18.00 (7.7%) 19.7% (13.4%) 618 2.0 x 10.3 x

Sep-13Forensics and

malware protection304 12.00-14.00 20.00 53.8% 80.0% 59.1% 4,994 7.8 x n.m.

Jul-15Cloud security and

compliance91 11.00-13.00 12.00 0.0% 18.0% 137.2% 930 5.6 x 19.5 x

Jul-12Firewalls and network

security260 34.00-37.00 42.00 18.3% 26.5% 309.5% 14,837 13.7 x n.m.

Apr-12Communication

security82 10.00-12.00 13.00 18.2% 8.3% 364.0% 2,600 10.1 x n.m.

Feb-12Antivirus and anti-

spyware128 16.00-18.00 16.00 (5.9%) (18.8%) 35.9% 1,294 3.0 x 8.1 x

(1) Current increase from IPO price; market data as of 30th September 2015

Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 50x EV / EBITDA


Nasdaq

Nasdaq

Nasdaq

Nasdaq

NYSE

NYSE

NYSE

Nasdaq

LSE

Nasdaq


27

Cybersecurity: Valuation Benchmarks

(1) Global Security represents the median of all stocks in Broadline, Endpoint, Network, Data and Monitoring & Analysis, with no weighting applied

Notes: EV = Enterprise Value; financials calendarised to December year end; median values reported

See Selected Publicly Traded Companies (slide 9) for details of companies included in each category

Sources: Capital IQ and analyst reports



1.4%

15.6%

10.3%

26.5%

24.0%

15.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Broadline Endpoint Network Data Monitoring &Analysis

GlobalSecurity

33.3%

18.7% 19.1%

(3.3%)

1.2%

17.6%

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


GlobalSecurity

2.7 x3.0 x

3.8 x

8.6 x

5.6 x

3.7 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x

10.0 x


GlobalSecurity

8.1 x

18.2 x

13.4 x

n.m.

19.5 x

12.1 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x


GlobalSecurity


28

Cybersecurity: Global M&A Activity Q1 2011 – Q3 2015

Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

26 26 2627

23 23

32

24

15

31

25

22

32

2827

22

3433

22

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

5

10

15

20

25

30

35

40

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

TOTA

L D

ISC

LOSED

DEA

L V

ALU

E (

$M

)

NU

MB

ER

OF D

EA

LS

No. of Deals Total Disclosed Deal Value


29

Cybersecurity: Selected Deals in Q3 2015

DATE BUYER TARGET EV ($M)EV /

REVENUEEV /

EBITDACOMPANY DESCRIPTION

TARGETLOCATION

Sep-15 - - - Smartphone and tablet security suite

Sep-15 - - - Software vulnerability, patch management and software authentication

Sep-15 425.0 2.0x - Secure enterprise mobility solutions

Aug-15 - - - Range of security software from antivirus to firewall and mobile security

Aug-15 - - - Authentication security management and granular access control systems

Aug-15 - - - Online cybersecurity analytics and big data platform

Aug-15 - - - Anti-keylogging and encryption

Aug-15 - - - Endpoint security integrity and threat detection

Aug-15 8.5 - - Mobile app threat identification and prevention

Aug-15 - - - Privileged user access, password management and network authentication

Jul-15 - - - Data encryption and tokenisation of personally identifiable information

Jul-15 - - - Botnet monitoring, threat detection and cybersecurity threat intelligence

Jul-15 - - - Cloud identity and access management and data protection management

Jul-15 - - - Endpoint-based signature-less malware detection and analytics

Jul-15 - - - Antimalware and antispyware application for Apple computers

Jul-15 - - - Real-time secure data governance and monitoring

Jul-15 - - - Password protection security management

Jul-15 190.0 - - Real-time behavioural analytics and breach detection software

(1) In certain cases EV/Revenue are publicly reported estimates; TTM net revenues have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl.

minority interest)

Sources: Press Releases, Capital IQ, Mergermarket, PitchBook, 451 Research and Results analysis

(tech

assets)

(1)

(China)


30

Cybersecurity: Selected Fundraisings in Q3 2015


FUNDSRAISED ($M)


Sep-15 Series B 25.0 Icon Ventures, Aspect Ventures, Norwest Venture Partners Big data security analytics

Sep-15 Series G 150.0TPG, Institutional Venture Partners, T. Row Price Associates,

Andreessen Horowitz, Franklin Templeton, Geodesic Partners

Enterprise security and systems

management

Sep-15 Series B 110.0 TPG Growth, EMC, Lightspeed Ventures, Google Capital Security-as-a-Service platform

Sep-15 Series D 110.0FMR, Google Capital, Microsoft Ventures, Baidu, Qualcomm

Ventures, New Enterprise Associates, Union Square VenturesInternet security protection

Sep-15 Series A 10.0 Orchard Holdings Group Threat intelligence platform

Sep-15 Series D 75.0Iconiq Capital, Accel Partners, Lightspeed Venture Partners,

Social+CapitalCloud access security broker

Sep-15 Series C 12.0First Floor Capital, Bessemer Venture Partners, KPCB, North

Bridge Equity Partners, Intel Capital, CommonAngels VenturesMobile app security

Aug-15 Seed 2.2 Azure Capital, Epic Ventures, Bialla Venture Partners Cloud data exchange security

Aug-15 Series B 17.0 Evolution Equity Partners, 406 Ventures, Arsenal Venture PartnersSAP and Oracle enterprise application

security

Aug-15 Seed 2.3 AccompliceMobile application security vulnerability

detection platform

Aug-15 Series E 52.0 Institutional Venture Partners, Trident Capital, KPCB, GGV CapitalSecurity management and threat

intelligence

Jul-15 Series C 42.0DFJ Growth, KKR, Dell Ventures, CapitalOne Ventures, TenEleven

VenturesCybersecurity solutions

Jul-15 Series B 22.5 Summit PartnersIntelligence-based behavioural

cyberdefence technology

Jul-15 Series A 3.5BRM Group, Curious Minds, FirstTime Ventures , Maxfield Capital,

TheTime VCMobile security app

Jul-15 Series B 17.0 Allegis Capital, The Blackstone GroupMonitoring, reporting and post-incident

forensics

Jul-15 Series C 100.0 Google Capital, Rackspace, Accel Partners, Warburg PincusEndpoint protection and threat

intelligence

Jul-15 Series D 30.0 Pinnacle Ventures, Qihoo 360 Technology, Redpoint VenturesSecure cloud protection for Windows

and Android

Jul-15 Venture 4.0 Sequoia CapitalPenetration testing and risk

quantification

Source: Press Releases, Capital IQ, Mergermarket and Results analysis


31

PRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN EBITDA MARGIN

COMPANY (30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

BROADLINE

Symantec 19.47 71.3% 13,224 3,884 (1,795) 11,429 6,331 0.1% 82.3% 32.4% 35.0% 1.8 x 1.8 x 5.6 x 5.2 x

Trend Micro 35.20 86.3% 4,797 1,039 (1,039) 3,758 1,041 2.8% 82.3% 34.1% 34.8% 3.6 x 3.5 x 10.6 x 10.1 x

ENDPOINT

AVG Technologies 21.75 74.6% 1,146 117 148 1,294 432 15.6% 86.1% 36.9% 36.9% 3.0 x 2.6 x 8.1 x 7.0 x

CyberArk 50.14 65.7% 1,804 284 (284) 1,521 148 32.9% 85.7% 21.3% 21.2% 10.2 x 7.7 x 48.2 x 36.4 x

F-Secure 2.76 64.3% 434 85 (85) 349 163 7.2% 94.9% 18.7% 20.6% 2.1 x 2.0 x 11.5 x 9.7 x

MobileIron 3.10 23.9% 244 108 (108) 137 146 18.8% 81.8% (39.3%) (19.1%) 0.9 x 0.8 x n.m. n.m.

Sophos 3.53 81.9% 1,765 629 149 1,913 789 (2.2%) 86.0% 14.7% 14.5% 3.7 x 3.8 x 24.9 x 26.0 x

NETWORK

Barracuda Networks 15.58 33.3% 832 218 (213) 618 314 15.4% 78.9% 19.1% 25.1% 2.0 x 1.7 x 10.3 x 6.8 x

Check Point Software 79.33 89.6% 14,756 1,227 (1,227) 13,529 1,627 8.1% 88.2% 56.7% 56.9% 8.3 x 7.7 x 14.7 x 13.5 x

Fortinet 42.48 84.4% 7,565 873 (873) 6,692 1,007 22.6% 70.0% 16.5% 17.5% 6.6 x 5.4 x 40.2 x 30.9 x

F5 Networks 115.80 85.1% 8,230 798 (798) 7,432 1,978 10.2% 82.1% 39.3% 39.4% 3.8 x 3.4 x 9.6 x 8.7 x

Palo Alto Networks 172.00 85.8% 15,139 789 (302) 14,837 1,082 35.9% 72.9% 5.6% 24.6% 13.7 x 10.1 x n.m. 41.0 x

Radware 16.26 65.3% 740 81 (81) 659 215 7.3% 81.1% 19.1% 17.8% 3.1 x 2.9 x 16.1 x 16.1 x

Secunet 21.32 86.3% 138 26 (26) 112 92 10.3% 64.3% 10.1% 10.0% 1.2 x 1.1 x 12.1 x 11.0 x

DATA

FireEye 31.82 57.5% 5,494 1,190 (501) 4,994 640 37.3% 58.9% (26.4%) (13.7%) 7.8 x 5.7 x n.m. n.m.

Imperva 65.48 88.5% 2,118 245 (245) 1,873 217 23.7% 77.7% (3.3%) (0.6%) 8.6 x 7.0 x n.m. n.m.

Proofpoint 60.32 83.0% 2,674 411 (75) 2,600 258 26.5% 66.4% 0.9% 6.3% 10.1 x 8.0 x n.m. n.m.

MONITORING & ANALYSIS

Guidance Software 6.02 58.9% 182 21 (21) 161 110 5.5% 66.9% 1.2% 3.9% 1.5 x 1.4 x n.m. 35.9 x

Qualys 28.46 51.3% 1,088 158 (158) 930 166 24.0% 78.3% 28.8% 29.3% 5.6 x 4.5 x 19.5 x 15.5 x

Rapid7 22.75 86.9% 960 130 134 1,093 104 24.9% 75.9% (29.3%) (24.4%) 10.5 x 8.4 x n.m. n.m.

25th percentile 63.0% 159 7.2% 72.2% 1.1% 5.7% 2.1 x 1.9 x 10.3 x 9.2 x

Median 78.3% 286 15.5% 80.0% 17.6% 19.2% 3.7 x 3.6 x 12.1 x 13.5 x

75th percentile 85.9% 1,016 24.2% 83.1% 29.7% 30.7% 8.4 x 7.2 x 19.5 x 28.4 x


REVENUE EBITDA

Cybersecurity: Selected Publicly Traded Companies

Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 50x EV / EBITDA; net debt includes minority interest

Source: Capital IQ


32

Contact Us






t +44 20 7629 7575

www.resultsig.com


10012



t +44 (0)20 7514 8236

e [email protected]


t +44 (0)20 7514 8242

e [email protected]

Maurice WatkinsPARTNER

t +1 (0)646 747 6500

e [email protected]

Pierre-Georges

RoyPARTNER

t +1 (0)646 747 6505

e [email protected]








SECTION 4

AdTech & MarTech Barometer


34QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH







• Founded in 1991



Marketing

Healthcar

eTechnolog

y




Results International Global AdTech & MarTech Indices

60%

70%

80%

90%

100%

110%

120%

130%

140%

Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

NASDAQ Comp Diversified Internet MarTech Data AdTech




LAST

12

MO

NTH

SH

AR

E P

RIC

E P

ER

FO

RM

AN

CE

14.8%

11.4%

2.8%

(3.0%)

(31.3%)

Q3 2015 PERFROMANCE

Diversified Internet 6.6%

Nasdaq Comp (7.4%)

MarTech (8.0%)

Data (12.2%)

AdTech (24.9%)

36

(7.8%)(22.0%)

11.6%

(38.0%)

(63.6%)(51.6%)

(64.5%)

(5.9%)

(49.0%)

(78.5%)(70.4%)

(59.9%)

23.9%

(20.5%)(8.5%)

(48.2%)(39.0%)

(11.8%)(10.7%)

1.5%

85.5%

(12.0%)

15.7%

107.1%

19.4%

4.3% 7.6%

(30.9%)

8.5%

58.8%

(56.8%)

13.7%

(29.1%)

(100%)

(50%)

-

50%

100%

150%

(3.8%)

1.9%

(21.3%)

(29.9%)

(53.6%)

0.5%

(49.5%)

8.0%

(32.1%)

(20.7%)

(43.0%)

(0.8%) (2.9%)

(36.1%)

(26.4%)

(52.2%)

(23.4%)(28.3%)

(15.7%)

(27.3%)

(6.5%)

1.3%

8.3%3.7%

12.4%

(11.3%)(8.7%)

(21.7%)

18.2% 17.9%

(59.4%)

4.8%

(26.4%)

(70%)

(60%)

(50%)

(40%)

(30%)

(20%)

(10%)

-

10%

20%

30%

QUARTERLY TECH REPORT – Q3: ADTECH & MARTECH

AdTech & MarTech: Share Price Performance

EV/2015E

Net Revenue6.4x 0.8x - 2.6x 1.8x 1.4x 2.1x 0.7x 2.3x 2.4x 0.3x 2.8x 0.5x 1.6x 1.1x 1.7x 7.9x 5.7x9.4x 12.0x 1.9x 4.6x 3.9x 1.5x 6.3x 2.3x 14.0x 5.5x3.1x3.9x 0.7x 0.9x 17.4x

(1)

(1) 2015E Net Revenue data is unavailable

(2) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stocks respective IPO date (see slide 4) and 30th September 2015



(2) (2)

(2)

(2)

(2)

ADTECH DIVERSIFIED INTERNETMARTECH DATA

LAST

12 M

ON

TH S

HA

RE P

RIC

E P

ER

FO

RM

AN

CE

Q3 2

015

http://uk.tremorvideo.com/

http://uk.tremorvideo.com/

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=eZ-_KQo9-ow3BM&tbnid=LU3R-z5avIx_YM:&ved=0CAgQjRwwAA&url=http://www.designboom.com/design/yahoo-unveils-brand-new-logo-design/&ei=P-kuUqKUE8eJ7Ab85YHQBw&psig=AFQjCNG-I-m4ZE5b63nsTcDztTU5jk4m2g&ust=1378892479376534

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=eZ-_KQo9-ow3BM&tbnid=LU3R-z5avIx_YM:&ved=0CAgQjRwwAA&url=http://www.designboom.com/design/yahoo-unveils-brand-new-logo-design/&ei=P-kuUqKUE8eJ7Ab85YHQBw&psig=AFQjCNG-I-m4ZE5b63nsTcDztTU5jk4m2g&ust=1378892479376534

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&docid=qWwKuu5X6X-l_M&tbnid=krbJlSkCTzo8GM:&ved=0CAUQjRw&url=http://couponsinthenews.com/2013/09/02/ebays-new-coupon-policy-begins-and-nothing-changes/&ei=AuouUueULoSnhAfftoHwBQ&bvm=bv.51773540,d.ZGU&psig=AFQjCNG69hAalCWkXhi1rM6gGDbkv6VJQA&ust=1378892639832050

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&docid=qWwKuu5X6X-l_M&tbnid=krbJlSkCTzo8GM:&ved=0CAUQjRw&url=http://couponsinthenews.com/2013/09/02/ebays-new-coupon-policy-begins-and-nothing-changes/&ei=AuouUueULoSnhAfftoHwBQ&bvm=bv.51773540,d.ZGU&psig=AFQjCNG69hAalCWkXhi1rM6gGDbkv6VJQA&ust=1378892639832050


AdTech & MarTech: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTIONRAISED

($M)INDICATIVE PRICE

RANGE ($)IPO LISTING PRICE ($)

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / NET REVENUE 2015E

EV / EBITDA 2015E

Jun-15 AI ad optimisation 42 n.a. 2.1 4.2% (7.8%) 95 6.4x 9.4x

May-15eCommerce

platform131 12.0-14.0 17.0 51.1% 107.1% 3,179 17.4x n.m.

Mar-15Localised ad

targeting75 10.5-12.5 11.5 (15.1%) (64.5%) 78 0.9x n.m.

Oct-14Marketing

automation125 22.0-24.0 25.0 20.4% 85.5% 1,624 9.4x n.m.

Sept-14Multi-channel ad

server75 n.a. 1.7 0.8% (41.7%) 72 n.a. n.a.

Jul-14Programmatic video

DSP44 7.0-8.0 7.0 64.3% 50.3% 311 2.8x n.m.

Jul-14Multi-channel ad

network70 n.a. 3.9 4.4% (57.2%) 169 2.6x 11.7x

Apr-14 SSP 102 15.0-17.0 15.0 33.9% (3.1%) 590 2.4x 15.8x

Nov-13Multi-channel

network33 n.a. 1.0 20.0% (81.8%) 52 2.1x n.m.

Oct-13DSP focused on

retargeting251 27.0-29.0 31.0 14.2% 21.1% 2,050 3.9x 18.8x

Sep-13 DSP 116 27.0-29.0 29.0 93.4% (83.9%) 201 0.7x n.m.

Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (71.2%) 40 0.5x n.m.

Nasdaq

LSE

NYSE

AIM

Nasdaq

Nasdaq

NYSE

AIM

NYSE

AIM

NYSE

NYSE

(1) Current increase from IPO price; Market data as of 30th September 2015

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDA


38

1.8 x

6.8 x

2.9 x

5.5 x

2.3 x

-

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

AdTech MarTech Data DiversifiedInternet

Global AdTech/MarTech

24.4%

30.9%

1.9%

16.1%

17.9%

-

5%

10%

15%

20%

25%

30%

35%

AdTech MarTech Data DiversifiedInternet

Global AdTech/MarTech


AdTech & MarTech: Valuation Benchmarks

(1) (1)

(1) Global AdTech / MarTech represents the median of all stocks in AdTech, MarTech, Data & Diversified Internet

Notes: EV = Enterprise Value; Financials calendarised to December year end; Median values reported

See Selected Publicly Traded Companies (Slide 9) for details of companies included in each category

Source: Capital IQ & analyst reports

REVENUE GROWTH (2015-16E) EV / NET REVENUE 2015E

39

54

43

74

52

108101

113106

98 101

112

-

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

$8bn

$9bn

0

20

40

60

80

100

120

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

TOTA

L D

ISC

LOSED

DEA

L V

ALU

E (

$B

N)

NU

MB

ER

OF

DEA

LS

Number of deals Total disclosed deal value ($bn)


AdTech & MarTech: Global M&A Activity Q1 2013 – Q3 2015

(1) Q3 2014 data includes Alliance Data’s acquisition of Conversant ($2.2bn)

(2) Q2 2015 data includes Verizon’s acquisition of AOL ($4.3bn)


(1) (2)


AdTech & MarTech: Selected Deals in Q3 2015

DATE BUYER TARGET EV ($M) EV/REVENUE COMPANY DESCRIPTIONTARGET

LOCATION

Sep 15 683 6.3x TV and movie measurement

Sep 15 120 - Content management & GRC

Sep 15 - - Social media and event analytics

Sep 15 - - Mobile attribution

Sep 15 - - In-store customer analytics

Sep 15 89 1.9x Social and video ad network

Sep 15 - - B2B DMP

Sep 15 - - Mobile ad app SDK

Sep 15 17 1.1x Mobile and social DSP

Sep 15 500 - OTT video content

Sep 15 218 1.9x Mobile ad network and ad exchange

Aug 15 - - Predictive marketing CRM

Aug 15 - - SEM bidding

Aug 15 - - Cross-channel optimisation and personalisation

Aug 15 - - Dynamic video ad insertion

Aug 15 3 - Programmatic video ad exchange

Aug 15 - - Marketing content automation

Jul 15 1,000 6.0x Multi-channel, big data marketing cloud

(1) In certain cases EV/Revenue are publicly reported estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV =

transaction value scaled to 100% shareholding plus net debt (incl. minority interest)

(2) Earn out of $86m (£56m) has not been included in the calculation of EV


(1)

(2)


AdTech & MarTech: Selected Fundraisings in Q3 2015


FUNDSRAISED ($M)


Sep 15 Debt 100 Tennenbaum Capital Partners Mobile discovery platform

Sep 15 Series C 25Next World Capital (lead investor), Accel Partners, DAG, Icon Ventures and

Lightspeed Venture PartnersMarketing signal measurement

Sep 15 Debt 30 Silicon Valley Bank Programmatic ad exchange

Sep 15 Series A 33 Vector Capital B2C marketing cloud

Sep 15 Series B 6 Private investors Dynamic ad creation

Sep 15 Series B 40IHeartMedia (lead investor), Advance Publications, Upfront Ventures and

Foundry Group; Silicon Valley Bank (debt)Social data and ad buying

Sep 15 Series C 45Warburg Pincus (lead investor), Norwest Venture Partners and Sequoia

CapitalSocial CRM

Aug 15 Series B 45 Tenaya Capital (lead investor), Sequoia Capital, SoftTech VC and others Mobile marketing automation

Jul 15 Series E 67Silicon Valley Bank (debt); Sapphire Ventures (lead investor), Cross Creek

Advisors and previous investorsAd viewability and fraud

Jul 15 Series D 50

Founders Fund (lead investor), BlueRun Ventures, Glynn Capital

Management, AME Cloud Ventures, Yuan Capital, Salesforce Ventures,

Formation 8

B2B predictive marketing

Jul 15 Series F 50 Susquehanna Growth Equity Content recommendation

Jul 15 Series B 22Blue Chip Venture Company and G20 Ventures (lead investors) and

Valhalla PartnersNative ad exchange

Jul 15 Series A 7Twenty Ten Capital (lead investor), IBIS TMT, Sandbox & Co. and Hoxton

VenturesKid-safe ad network

Jul 15 Series C 25 Vista Equity Partners SME marketing platform

Jul 15 Series G 30

Sageview Capital (lead investor), Adobe Systems, Altos Ventures, Costanoa

Venture Capital, Greenspring Associates, Salesforce.com Ventures, Scale

Venture Partners and Sigma West

B2B account-based marketing

Jul 15 Series D 59 Legend Holdings Mobile social CRM

Jul 15 Series B 31

Georgian Partners (lead investor), OurCrowd, Atlas Venture, Docomo

Capital, BDC Capital IT Venture Fund, Hummer Winblad Venture Partners,

Illuminate Ventures, Resolute Ventures, Relay Ventures and First Round

Capital

Advocate marketing

Jul 15 Series D 42FTV Capital (lead investor), Mayfield Fund, InterWest Partners and

FirstMark Capital

Omni-channel content

management(1) Round is split $30 million equity funding, $10m debt funding

(2) Round is split $40 million debt financing, $27 million equity funding

Source: Press Releases, Capital IQ, Mergermarket and Results analysis

(1)

(2)


AdTech & MarTech: Selected Publicly Traded Companies

Notes: Broker reports have been used for selected company financials – Liberium (Aug-15) for Adgorithms, Numis (May-15) for Blinkx, JP Morgan (Aug-15) for Criteo, Canaccord Genuity (Aug-15) for Matomy Media, William

Blair (Aug-15) for MaxPoint Interactive, Canaccord Genuity (Aug-15) for Millennial Media, Cenkos (May-15) for Rightster, BMO Capital Markets (Aug-15) for Rocket Fuel, N+1 Singer (Sep-15) for Taptica, Jefferies (Aug-15) for

Tremor Video, BMO Capital Markets (Aug-15) for TubeMogul, Deutsche Bank (Aug-15) for YuMe, RBC Capital Markets (Aug-15) for Alphabet and JP Morgan (Sep-15) for Yahoo!

Note: Calendarised to December year end. Cap multiple at 20x EV/Revenue and 60x EV/EBITDA. Net debt is inclusive of minority interest and preferred equity. Net revenues have been used where appropriate

Sources: Capital IQ, market data as of 30th September 2015

COMPANY OPERATING METRICS VALUATION METRICS

PRICE ($) % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE GROWTH EBITDA MARGIN NET REVENUE EBITDA

(30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE ($M) CY14-15 CY15-16 CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

ADTECH

Adgorithms LTD 1.91 83.0% 129 35 (35) 95 56.3% 65.0% 67.5% 58.7% 6.4 x 3.9 x 9.4 x 6.6 x

Blinkx plc 0.42 67.9% 168 96 (95) 73 (11.1%) 3.7% (0.4%) 3.2% 0.8 x 0.8 x n.m. 24.2 x

Criteo SA 37.54 65.5% 2,355 320 (305) 2,050 56.0% 26.0% 20.7% 24.8% 3.9 x 3.1 x 18.8 x 12.4 x

Crossrider Plc 0.98 57.0% 151 78 (78) 72 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Marin Software Incorporated 3.13 32.3% 116 41 (40) 76 6.5% 12.1% (11.3%) (1.3%) 0.7 x 0.6 x n.m. n.m.

Matomy Media Group Ltd. 1.66 43.2% 153 43 15 169 (1.1%) 12.2% 22.5% 30.4% 2.6 x 2.4 x 11.7 x 7.7 x

MaxPoint Interactive, Inc. 4.08 36.3% 106 55 (28) 78 44.7% 36.7% (17.5%) (16.7%) 0.9 x 0.6 x n.m. n.m.

Millennial Media Inc. 1.75 82.9% 248 35 (30) 218 4.5% 10.0% (20.6%) (2.2%) 1.8 x 1.6 x n.m. n.m.

Opera Software ASA 5.38 43.4% 787 134 18 806 20.1% 21.9% 17.1% 18.7% 1.4 x 1.1 x 8.2 x 6.1 x

Rightster Group Plc 0.17 21.6% 64 12 (12) 52 89.7% 40.0% (55.8%) (5.6%) 2.1 x 1.5 x n.m. n.m.

Rocket Fuel Inc. 4.67 22.1% 199 81 2 201 23.9% 14.8% (10.0%) (2.9%) 0.7 x 0.6 x n.m. n.m.

Taptica International Ltd 0.95 35.3% 66 23 (23) 43 (2.0%) 52.5% 9.7% 25.0% 2.3 x 1.5 x 23.9 x 6.1 x

The Rubicon Project, Inc. 14.53 70.6% 690 99 (99) 590 97.8% 33.4% 15.1% 15.7% 2.4 x 1.8 x 15.8 x 11.4 x

Tremor Video, Inc. 1.86 56.8% 96 69 (69) 27 40.2% 24.4% (11.8%) (0.7%) 0.3 x 0.3 x n.m. n.m.

TubeMogul, Inc. 10.52 44.1% 391 81 (81) 311 40.6% 28.7% (21.1%) (10.5%) 2.8 x 2.1 x n.m. n.m.

YuMe, Inc. 2.59 40.6% 88 47 (47) 40 (12.8%) 3.6% (14.1%) (7.3%) 0.5 x 0.5 x n.m. n.m.

MARTECH

Bazaarvoice, Inc. 4.51 48.0% 363 103 (46) 317 9.4% 10.4% (3.5%) 4.8% 1.6 x 1.4 x n.m. 29.9 x

Brightcove Inc. 4.92 58.2% 160 21 (19) 141 6.3% 8.5% 4.2% 6.3% 1.1 x 1.0 x 25.2 x 15.5 x

Constant Contact, Inc. 24.24 56.1% 795 181 (181) 615 12.0% 14.0% 19.9% 21.8% 1.7 x 1.5 x 8.3 x 6.7 x

Demandware, Inc. 51.68 68.1% 2,037 187 (186) 1,850 45.5% 33.8% 4.9% 6.6% 7.9 x 5.9 x n.m. n.m.

HubSpot, Inc. 46.37 84.4% 1,734 110 (109) 1,624 49.3% 28.9% (13.5%) (8.1%) 9.4 x 7.3 x n.m. n.m.

Marketo, Inc. 28.42 79.8% 1,305 110 (104) 1,201 40.3% 32.9% (10.3%) (5.2%) 5.7 x 4.3 x n.m. n.m.

New Relic, Inc. 38.11 95.3% 2,074 195 (195) 1,879 58.5% 36.9% (22.6%) (11.1%) 12.0 x 8.8 x n.m. n.m.

Shopify Inc. 35.20 83.6% 3,377 199 (199) 3,179 74.0% 38.9% (2.4%) 0.7% 17.4 x 12.5 x n.m. n.m.

DATA

Acxiom Corporation 19.76 92.0% 1,563 123 149 1,712 (14.8%) (0.9%) 14.8% 16.1% 1.9 x 2.0 x 13.2 x 12.2 x

Alliance Data Systems Corporation 258.98 83.0% 15,947 822 14,063 30,010 22.5% 12.5% 29.4% 29.6% 4.6 x 4.1 x 15.7 x 13.9 x

Experian plc 16.01 83.7% 15,328 155 3,281 18,609 (1.7%) 2.0% 33.4% 34.4% 3.9 x 3.9 x 11.8 x 11.2 x

Teradata Corporation 28.96 61.6% 4,101 921 (321) 3,780 (5.5%) 1.9% 21.4% 23.4% 1.5 x 1.4 x 6.8 x 6.1 x

DIVERSIFIED INTERNET

Alphabet Inc. 638.37 89.5% 440,686 67,725 (59,798) 380,888 14.6% 16.1% 42.5% 43.8% 6.3 x 5.4 x 14.8 x 12.4 x

Amazon.com, Inc. 511.89 88.2% 239,621 14,001 3,952 243,573 18.9% 19.8% 9.7% 11.1% 2.3 x 1.9 x 23.6 x 17.3 x

eBay Inc. 24.44 36.6% 29,773 10,554 (2,932) 26,841 (2.6%) 4.9% 39.7% 40.2% 3.1 x 3.0 x 7.8 x 7.4 x

Facebook, Inc. 89.90 90.6% 254,403 14,125 (13,976) 240,427 38.0% 35.7% 61.7% 61.0% 14.0 x 10.3 x 22.7 x 16.9 x

Yahoo! Inc. 28.91 54.9% 27,311 5,824 (4,553) 22,758 (5.1%) (2.3%) 10.0% 15.5% 5.5 x 5.6 x 54.4 x 36.1 x

25th percentile (1.2%) 9.7% (11.4%) (2.4%) 1.4 x 1.4 x 9.4 x 7.0 x

Median 19.5% 17.9% 7.3% 8.8% 2.3 x 1.9 x 14.8 x 12.2 x



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