Customer Experience & Engagement 2021 - Nfluence

State of the Market Customer Experience & Engagement | 2021

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Key Themes We Are Watching

Artificial Intelligence Adoption | Increasingly important to Success for CX & CE Companies

• AI offerings have been increasingly incorporated to improve customer experience and agent utilization and effectiveness

• AI integration is data-intensive in its applications, but essential to drive increasingly emphasized predictive capabilities that enable

businesses to engage more proactively and effectively with their customers

• 40% of Customer Experience centric companies believe the adoption of artificial intelligence technology to be extremely significant

for usage in decision making and recommendations to employees1

Context Sensitive Engagement | Situational Personalization

• Customers still often prefer talking to live agents instead of having automated customer engagement processes during complex

customer situations

• Usage of data and collection from many different sources are important for creating the a more personalized customer experience as

well as adding a more “genuine” feeling interaction.

• As companies make better use of data, it enables foundational changes in the options for interactions with customers across the

customer journey

Prescriptive Personalization | A Critical Success Factor?

• Storytelling and word of mouth style marketing tactics help make CX seem less automated and more individualized

• Customers expect companies to know what they are interested in to demonstrate more intelligent engagement

• Amidst the trend towards more intelligent management of privacy, companies are empowering customers to take more personal

control over their level and channels of engagement

Instant Gratification | Thus the Rise of Bots

• Usage of bots and cognitive computing technology helps create time for human representatives to engage with clients who need more

complex real time assistance

• Customers expect around the clock customer service when reaching out for help or information

• They also appreciate time efficient service, where bots play a key and positive role as long as they work as intended

______

1: Gartner (July 15, 2019)



COVID Commentary: What was the Impact of the Global Pandemic on CX/CE companies?

COVID-19 accelerated the shift to digital experiences, requiring businesses to quickly reshuffle their priorities to implement

technologies that drive stickier relationships and competitive differentiation

• 38% of companies have indicated that investing in customer experience tools is a key priority over the next year

______

Source: 451 Research, Wall Street Journal

Hyper-Personalization

To create differentiation, companies must invest heavily in improving their CX/CE experience, which has ushered in an

age of hyper-personalization

• 54% of organizations currently have a strong ability to create & deliver personalized experiences

Improved Online Experience

The emphasis on creating strong digital experiences has only grown in the wake of the COVID-19 pandemic

• 51% of enterprises have increased their organization’s overall budget to improve online experiences as a result of the

COVID-19 outbreak

Optimized Customer Journey

The customer journey is already highly complex and will only become more so as new and emerging digital channels of

engagement proliferate and the volume of customer data grows

• 81% of digital leaders state that optimizing the customer journey to increase customer retention and engagement has

recently gained more attention

Privacy Concerns

Consumers have grown increasingly conscious about how their data is utilized, and demand more control over what

happens with their data, a shift bolstered by the changing privacy policies of tech majors like Apple and Google

• 40% of consumers would no longer shop with a business if they are unable to deny access to their personal information



• Before the pandemic, call centers operated in

a predictable environment in which seasonality

played the most significant role, dictating the

number of calls received each day

• Contact centers could handle only a limited

number of call volume at any given moment

• Amid COVID-19, the increased volume was

more than many companies can handle with

their current customer experience solution

• The lack of available customer service

representatives led to longer wait times, and

frustrated customers

• This fueled the rise in demand for customer

experience solutions that can counter capacity

limitations and enhance the overall customer

experience

COVID Drives Increased Demand for Customer Experience Solutions

Call Center Efficiency Becomes Top Priority

“Customer calls to companies rise

amid coronavirus, but operators

aren’t standing by” –

Wall Street Journal

“A troubling picture for

customer experience and

customer service leaders” –

Harvard Business Review

“Customers run into record phone

waits as companies grapple with

worker safety” –

The Washington Post

“Customer service centers are

experiencing an unprecedented

uptick in overall call volume” –

Venture Beat

“Flawless communication is

important [now] more than ever

to support the smooth

functioning of our world” -

Phonexia



Customer

Experience

(CX)

Customer Experience technologies bias towards understanding how a customer

feels about company’s product, platform, service, or delivery channel.

• CX is broadly understanding the customer, anticipating behavior, and informing strategy

• Considers the context and experiential aspects of a customer's interaction: perception of

function, utility, ease-of-use, and satisfaction throughout the customer journey

• Frequently relies on inward-bound analytics: customer surveys, sales and marketing data

analysis, behavioral tracking, and market research

Customer

Engagement

(CE)

Customer Engagement includes technologies which enable all the touchpoints of

interaction between a company and its customers or prospective customers

• CE encompasses the essential interactions and outward efforts of a firm to its clients

• Considers the channels and methodologies of outreach, brand messaging, and

communication between companies and existing or prospective customers

• Frequently relies on communication and marketing services: AdTech, call-centers, and

technologies that drive customer experience, interaction, and brand perception

Inward to Firm Outward to Customer

Analytical

Interactive

Overlap is common, while distinctions derive primarily from directionality

Nfluence Partner’s View of CX vs CE: A Company’s Relationship to Customers



Thirty Years of Evolution: Refining and Extending the Customer Relationship Paradigm

Customer Experience & AI Usage • 40% of CX-Centric companies view the adoption of AI technology as a significant step in understanding the consumer experience and

driving more personalized engagement—however only 29% of marketers have implemented AI

Customer Engagement & Data • Successes within data-driven marketing and personalized engagement leads the rapid adoption of customer data management

platforms as companies strive to create accurate unified customer identities

$7.8B

From First Tracking and Understanding the Customer to Better Targeting New Prospects, now the 3rd Wave Increasingly focuses on Sustainable Customer Relationships

______

Source: Gartner, Markets And Markets

Customer Relationship

ManagementMarketing Automation

Customer Experience

Management

1990 2000 2015 2020 20251995 2005 2010



The CX & CE Market Landscape is Rich with Innovation & Consolidation

Customer Relationship Management

Marketing & Advertising Tech

Call & Contact Centers

Support & Engagement Channels

Consumer Data & Analytics

Loyalty, Personalization, & Optimization

Consumer Data Platforming

Customer Feedback & Survey

CECX



______

Source: Capital IQ as of 3/4/21; refer to public comparables for constituents trading metrics

Constituent Group: NasdaqGS:ADBE, NYSE:CRM, NYSE:TWLO, TASE:NICE, NYSE:ZEN, NYSE:HUBS, NasdaqGS:PEGA, NasdaqGS:JCOM, NYSE:MDLA, NasdaqGS:VRNT, NasdaqGM:FIVN,, NasdaqGS:SVMK, NasdaqCM:EGAN, NasdaqGS:XM

CX & CE Performance since 2018

Customer

Engagement

& Experience

+275.7%

Nasdaq

+81.6%

Dow Jones

Industrial Avg.

+24.6%

S&P 500

+39.8%

MSCI Europe

+13.9%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

Public Customer & Engagement Companies Have Significantly Outperformed the Broader Markets



Macroeconomic Considerations and Impact on Tech M&ALooking Ahead - Several tailwinds will support

robust Tech M&A activity in 2021

• Companies are focusing more on deploying capital to accelerate

growth, gain scale and digitize their businesses

• Markets are supportive with a historically low cost of capital

• Business conditions in COVID-impacted sectors are likely to improve as

vaccination rates increase

• With equity market valuations near all-time highs, an increase in

stock-for-stock transactions is likely

• Markets have been rewarding to acquirers since the outbreak of the

COVID-19 pandemic

‒ In the second half of 2020, M&A activity rebounded on the back of

plentiful capital available at historically low rates; this is

anticipated to serve as a tailwind in 2021

Abundant Capital from Private Equity and SPACs

• Sponsor-led transactions accounted for 26% of overall M&A activity in

2020, the highest proportion since prior to the 2008 Global Financial

Crisis

• As of the end of 2020, financial sponsors were sitting on a record of

$2.9 trillion in dry-powder

• During 2020, 248 new SPACs were listed and raised over $80 billion,

compared to 59 such offerings raising $12 billion in 2019

______

Source: 451 Research, Pitchbook, Morgan Stanley, SPACTrack

$22 $28 $26 $26

$51

$25 $37 $34

$87

$45

$109 612

762 753 743702

757 720

569634

745824

$0

$25

$50

$75

$100

$125

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Acquisitions of VC-Backed Start-Ups Hits All-Time High in 2020

Total Deal Value ($bn) Total Volume

912

8 9

16 15 1512

6

11

38

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Number of Tech Targets Purchased by Blank-Check Companies (SPACs)



______

Source: 451 Research, Pitchbook

• Propelled by the shift towards digital commerce, 73% of businesses reported CX / CE is becoming a

critical priority and consolidators have captured that functionality through acquisitions

Data, Data, Data

• Huge demand for platforms providing centralized data across all channels

‒ As the demand for more personalized experiences increases, companies rush to create platforms

that can manipulate data from all channels

‒ Data is a focal point for Customer Engagement across all aspects of the process, including campaign

creation, deployment, and analysis, as well as customer experience and interaction

‒ New customer engagement tools have been established to help businesses collect data from more

channels, or have greater control over the entire customer engagement process

AI, Automation, and Bots

• AI-enabled software has become integral in realizing the value of the vast quantities of collected

consumer data

• Bot usage also benefits from AI in speeding up automation of manual processes of data processing,

segmentation, and analysis

• Enabled with machine help companies automate tasks, Bots are leading to increased time spent on the

more personal aspects of customer engagement

Omnichannel Engagement Platforms

• Unification of all channels acts as an incentive for firms to merge

‒ Current customer engagement landscape reflects strong diversity across services (analytics, loyalty

programs, campaign generation) and channels (social media, email, mobile, web) ripe for

consolidation in creating unified customer experience platforms

‒ Companies look to interact with customers across all mediums, both digital and physical to improve

relationships and retention

Digital Transformation Trends are Driving CX/CE M&A



______

Source: Capital IQ as of 3/4/21; companies arranged by descending LTM Revenue Multiples

Customer Engagement and Experience Comparable Public Comps

• LTM Revenue-Multiple Valuations are aligned to projected forward revenue growth rates

• Companies are being rewarded with increased market valuation for quicker growth

• High growth companies with smaller market caps are experiencing a more pronounced relative increase in multiples

33.0x

26.3x

24.1x 23.9x

16.2x 16.2x

11.6x

10.0x8.6x

7.9x7.1x

4.4x 3.6x2.9x

38.0%

19.7%

31.8%

29.0%

18.2%

26.0%

10.9%

21.9%21.0%

8.9%

17.3%16.3%

5.4% 5.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

LTM Revenue Multiples

Median: 10.8x

’20A – ’21E Growth Rate



CX & CE Quarterly M&A Activity

Top 3 Acquisitions by Quarter ($M) - Target / Acquirer

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Qualtrics / SAP

SE ($8,000)

ZoomInfo /

DiscoverOrg

($800)

IBM (Assets) /

Centerbridge

Partners ($500)

iPipeline /

Roper

($1,625)

Cision /

Platinum

Equity LLC

($1,484)

Centerfield /

Platinum

Equity ($625)

SAP (Assets) /

Sinch AB

($250)

Reflexis /

Zebra

Technologies

($575)

Segment /

Twilio

($3,200)

SendGrid /

Twilio ($1,738)

Prescribe

Wellness /

Tabula Rasa

HealthCare

($150)

InMoment /

Madison

Dearborn

Partners ($200)

Crossix / Veeva

($430)

Precision

Lender / Q2

Holdings

($510)

Elemidia /

Eletromidia

($500)

FMG Suite /

Aurora Capital

Partners ($217)

Openet /

Amdocs ($180)

Gainsight/

Vista Equity

($1,100)

Compuscan /

Experian

($262)

Falcon.io ApS /

Cision ($125)

Lattice Engines

/ Dun &

Bradsheet

($135)

GetFeedBack

/

SurveyMonkey

($68)

SessionM /

MasterCard

($215)

Wavy Global /

Sinch AB ($116)

Localytics /

Upland

($68)

StellaService /

Medallia ($100)

Emarsys / SAP

SE

($940)

______

Source: 451 Research; includes transactions with disclosed, estimated, undisclosed transaction values

Top 3 acquisitions with disclosed transaction values

45

35

4846 47

3331

35

43

$10,556

$1,275 $1,119

$2,323 $2,464

$1,483

$606$935

$4,707

0

10

20

30

40

50

60

4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000Total # of Deals$ in Millions

Deal Volume Deal Value



Localytics (February 7,

2020)

$68m

Selligent (November 2,

2020)

$135m

Sense360 (September 14,

2020)

$44m

SAP SE (Assets) (May 5,

2020)

$250m

Evergage (February 3,

2020)

$100m

Altify (October 7, 2019)

$85m

Conversio (October 8,

2019)

Undisclosed

StellaSevice (September

3, 2020)

$100m

Wavy Global (Mach 26,

2020)

$116m

Bonobo Technologies (May

6, 2019)

Undisclosed

InGenius Software

(October 1, 2019)

$29.4m

Vuture (May 14, 2019)

Undisclosed

LivingLens (February 6,

2020)

$26m

Chatlayer (March 19,

2020)

$7.6m

roundCorner

(January 14, 2019)

Undisclosed

Daily Inches (May 28,

2019)

$45m

Sailthru (January 15,

2019)

$100m

Zingle (September 24,

2019)

$42m

myElefant SAS

(September 26, 2019)

$20.4m

Rebelmail

(October 5, 2018)

Undisclosed

PostUp (April 22, 2019)

$35m

Liveclicker (January 15,

2019)

Undisclosed

Cooladata

(June 3, 2019)

$7.6m

Adestra

(December 13, 2018)

$60m

Delivra (June 21, 2018)

Undisclosed

Strikedeck

(May 8, 2019)

$11m

Rapide Communication

(October 3, 2018)

$65m

Emma (June 21, 2018)

Undisclosed

RO Innovation Inc.

(June 28, 2018)

$14m

Most Active Acquirers in CX & CE (2018 – Present)

(8 deals) (7 deals) (4 deals)(6 deals) (4 deals)

______

Source: 451 Research

Deals shown in descending order, most recent



Provider of a CE platform for

connecting customers across

social media, web, or mobile

chat; analyzes customer

journeys to personalize

experiences

• Acquired by Facebook for

$1B on November 30th,

2020

• Facebook positions itself

strongly in the CE market

by acquiring Kustomer,

positioning the company to

pick up a share of certain

enterprise software

markets and extending its

own CE offerings with

cross-channel customer

service

Provides customer data

infrastructure that helps

businesses put their

customers first

• Acquired by Twilio for

$3.2B on October 12th,

2020

• Twilio enhances its existing

Customer Engagement

Platform by leveraging

Segment’s personalization

functionality, enabling

Twilio to provide a more

personalized, timely, and

impactful engagement

across customer service,

marketing, analytics,

product, and sales

Enables brands around the

world to deliver highly

personalize customer

interactions across email,

mobile, social, and web – at

scale

• Acquired by SAP for $940M

on October 10th, 2020

• The addition of Emarsys to

SAP’s portfolio will bolster

the company’s customer

engagement capabilities.

Uses machine learning and

predictive analytics to

analyze customer behavior

and deliver personalized,

omnichannel campaign

MaritzCX offers a platform

that collects and analyzes

data to drive high-value

customer experience

programs

• Acquired by InMoment on

February 26th, 2020

• Adding MartizCX to

InMoment’s portfolio

broadens the company's

solutions and provides a

strong blue-chip client

base; including eight of the

top ten banks, 90% of the

world’s automotive

companies, and 40% of top

hospitality companies

Select CX & CE M&A Transactions (2020)

• As the demand for tools to better reach and understand consumers has risen, acquisitions in the Customer Engagement & Experience marketplaces

remain hot in order to deliver optimal solutions for maintaining customer loyalty.

• Perfectly targeting audiences requires in depth portfolio of customer identities, signifying the importance of analytics and customer data in

creating said portfolios.



Improved Public Company Valuations Driving Increased M&A Activity

Revenue Multiple Median

• Current Revenue-Multiple Valuations are robust and tied to growth rates

• Faster growing CE & CX SaaS companies tend to see higher valuations

— Smaller, private companies tend to exit at much lower levels compared to their larger public peers

______

Source: CapIQ 3/4/2021 for Current multiples; 2/10/2020 for Pre-Covid multiples

Note: All companies are above $30 million Revenue and have an Implied Enterprise Value of over $150 million or more

Revenue Multiple Mean

4.9x5.8x

11.9x

15.8x

4.8x

9.8x

17.0x

28.5x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

0-10% 10%-20% 20%-30% 30%-50%

3.6x

5.3x

10.5x

15.6x

3.6x

9.4x

16.2x

28.5x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

0-10% 10%-20% 20%-30% 30%-50%

Revenue Multiples Revenue Multiples

Revenue Growth Rate Revenue Growth Rate

Pre-Covid Current Pre-Covid Current



CX & CE Quarterly Capital Raise Activity

Top 3 Investments by Quarter ($M) - Target

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Talkdesk

($100)

C3

($63)

Outreach

($114)

Showpad

($70)

Freshworks

($150)

Infibond

($100)

ContentSquare

($189)

Sprinklr

($650)

MessageBird

($200)

Pindrop

($90)

ContentSquare

($60)

SalesLoft

($70)

Signpost

($52)

Pendo

($100)

Partnerize

($50)

Podium

($125)

AppDirect

($185)

MindTickle

($100)

Braze

($80)

Matterport

($48)

ShowPad

($70)

C3.ai

($50)

CallMiner

($75)

Dixa

($36)

Couchbase

($105)

Talkdesk

($143)

Tungee

($53)

74

66

8984

79 78 79

55

65

$700 $609

$720

$846

$983 $957

$1,404

$1,397

$1,046

0

10

20

30

40

50

60

70

80

90

100

4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Total # of Deals$ in MillionsDeal Volume Deal Value

______

Source: Pitchbook; includes transactions with disclosed, estimated, undisclosed transaction values

Top 3 investments with disclosed transaction values



Developer of cloud-based call

center software designed to

help growing businesses

improve customer satisfaction

while reducing costs

• $143M Series C in venture

funding from Skip Capital,

Lead Edge Capital, and Top

Tier Capital Partners on

July 23rd, 2020

• Post-money valuation of

$3.14B

• Funding will be utilized to

capitalize on the

company’s current

momentum, particularly by

investing in continued

international expansion

Developer of a software

platform for customer

experience and journey

analytics

• $189M Series D led by

BlackRock on May 19th,

2020

• Funding will be used to

bolster the company’s

investment in innovation,

including AI-based and

predictive analytics while

expanding internationally

across the America’s,

Europe, Asia, and the

Middle East

Developer of communication

APIs designed to connect

companies with their

customers on billions of

devices around the world

• $200M Series C led by

Spark Capital on October

8th, 2020


$3.0B

• The funds will be used to

triple the size of

MessageBird's global team

and further expand into its

core markets in Europe,

Asia and Latin America, as

the company officially

launches a "Work

Anywhere" policy

Developer of a customer

experience management

(CXM) software platform

designed to provide digital

transformation

• $650M Series F1 led by

Hellman & Friedman on

September 9th, 2020


$2.7B

• Sprinklr aims to use the

funding to accelerate

growth both domestically

and internationally, while

increasing the

sophistication of its CXM

platform

Select CX & CE Financing Transactions (2020)

• Investment in Customer Engagement & Experience maintains diversity across large and small enterprises

• Company valuations reach higher peaks as overall demand for customer engagement tools increases

• Data evaluation’s significance to personalizing customer experience leads to strong expectations for future growth in the Customer

Engagement marketplace



RichRelevance provides a suited of personalization and

recommendation tools for ecommerce platforms; designed to

provide both actionable insights to brands and retailers as well

as an enhanced customer experience

• Nfluence led a targeted strategic process that resulted in

multiple bids

• Entered into an agreement to be acquired by Manthan, an

India-based market leader in SaaS solutions for retail

• The vision has been to create a more US centric combined

entity from the merger of RichRelevance and Manthan. This

was accomplished through the following steps:

• RichRelevance received and initial investment from

Manthan simultaneous with a commitment to merge

• Manthan also initiated the process of offshoring its

ownership structure from India to the US

• The combined, merged entity is now branded as

Algonomy and the company is planning an IPO by 2023

Recent Nfluence Partners Transactions in CX & CE

CloudCherry provides

predictive customer analytics

SaaS for call center agents in

the financial, retail,

hospitality, B2B, healthcare

and education sectors

• Acquired by Cisco for an

undisclosed amount in late

2019

• Cloud Cherry marked the

first software acquisition in

Cisco’s traditionally

hardware-centric call

center business

HAS BEEN ACQUIRED

BY

Financial Advisor to

the Seller

QuanticMind’s MarTech

platform utilizes artificial

intelligence (AI) and machine

learning to unify and analyze

data

• QuanticMind’s acquisition

would strengthen Centro’s

Omnichannel Ad

Management platform

• Nlfuence spearheaded a

strategic sale process while

navigating challenges

posed by the impact of

COVID

HAS BEEN ACQUIRED

BY


the Seller

RECEIVED AN

INVESTMENT FROM


the Seller

HAS MERGED WITH

TO FORM


the Seller



Contact Us

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• 30+ years experience in investment banking and corporate finance

• Executed over 80 public offerings raising over $10 billion

• Completed over 30 M&A transactions and capital raises representing

over $5 billion

• Prior investment banking experience includes:

‒ Managing Director & Head of Technology Investment Banking,

Petsky Prunier

‒ Managing Director & Head of Technology Investment Banking,

Cantor Fitzgerald

‒ Managing Director & Head of Communications Investment

Banking, Piper Jaffray

• MBA, Harvard Graduate School of Business

• BA, University of Pennsylvania

John Sternfield

Managing Director

[email protected]

Mobile: 650-804-1133

• 20+ years experience in investment banking, venture capital and

finance

• Longtime focus on global tech, especially in Asia / emerging markets

• Prior investment banking experience includes:

‒ Managing Director, Pacific Crest Securities

‒ Managing Director, FBR

• Clients include Alibaba (IPO lead manager), 58.com (IPO and strategic

investment from Tencent), Ubiquisys sale to Cisco, 21Vianet (Temasek

/ Singtel transaction), as well as Criteo, YY, and many others

• Ph.D., Politics and Economics, Harvard University

• M.A., International Politics and Economics, Johns Hopkins University

• BA, U.C. Berkeley

Brewer Stone

Partner

[email protected]

Mobile: 415-533-5881

Appendix:Public Comps, Precedent M&A Transactions, and Precedent

Investments



Public Comps: Trading Metrics

______

Source: CapIQ

Trading Metrics($ in millions, except per share data) Stock

Price % of Equity Enterprise EV / Revenue EV / EBITDA

Company Ticker 03/04/21 52W High Value Value LTM CY 2021E CY 2022E LTM CY 2021E CY 2022E

Adobe Inc. NasdaqGS:ADBE $439.06 82% $210,178 $208,894 16.2x 13.7x 12.0x 43.4x 27.6x 24.3x

salesforce.com, inc. NYSE:CRM 205.33 72% 188,082 182,401 8.6x 7.1x 6.0x 55.3x 23.8x 20.1x

Twilio Inc. NYSE:TWLO 346.05 76% 60,486 58,054 33.0x 23.9x 18.2x NM NM NM

HubSpot, Inc. NYSE:HUBS 461.00 84% 21,772 21,309 24.1x 18.3x 14.7x NM NM NM

Qualtrics International Inc. NasdaqGS:XM 33.57 59% 17,159 17,270 23.9x 18.5x 15.5x NM NM NM

Zendesk, Inc. NYSE:ZEN 136.13 82% 16,474 16,680 16.2x 12.9x 10.3x NM NM 86.3x

NICE Ltd. TASE:NICE 217.98 79% 13,726 13,082 7.9x 7.2x 6.6x 30.6x 21.6x 19.7x

Five9, Inc. NasdaqGM:FIVN 166.13 82% 11,389 11,439 26.3x 22.0x 18.7x 689.9x NM NM

Pegasystems Inc. NasdaqGS:PEGA 118.46 80% 10,016 10,147 10.0x 8.2x 6.8x NM NM 67.8x

J2 Global, Inc. NasdaqGS:JCOM 110.62 97% 5,016 6,483 4.4x 3.9x 3.7x 11.2x 9.9x 9.1x

Medallia, Inc. NYSE:MDLA 37.82 78% 5,736 5,549 11.6x 10.0x 8.4x NM NM 79.8x

Verint Systems Inc. NasdaqGS:VRNT 47.81 62% 3,143 3,616 2.9x 2.7x 2.5x 19.3x 15.6x 14.3x

SVMK Inc. NasdaqGS:SVMK 17.82 63% 2,596 2,668 7.1x 6.1x 5.0x NM 52.8x 34.8x

eGain Corporation NasdaqCM:EGAN 9.95 48% 324 273 3.6x 3.4x 2.9x 30.1x 80.2x 37.1x

High 33.0x 23.9x 18.7x 689.9x 80.2x 86.3x

Mean 14.0x 11.3x 9.4x 125.7x 33.1x 39.3x

Median 10.8x 9.1x 7.6x 30.6x 23.8x 29.6x

Low 2.9x 2.7x 2.5x 11.2x 9.9x 9.1x



Public Comps: Operating Metrics

______

Source: CapIQ

Operating Metrics($ in millions, except per share data) Margins

LTM Revenue Revenue Growth Gross EBITDA

Company As Of LTM CY 2021E CY 2022E '20A-'21E '21E-'22E LTM LTM

Adobe Inc. NasdaqGS:ADBE Nov 2020 $12,868 $15,209 $17,391 18% 14% 87% 20%

salesforce.com, inc. NYSE:CRM Jan 2021 21,252 25,710 30,481 21% 19% 74% 1%

Twilio Inc. NYSE:TWLO Dec 2020 1,762 2,432 3,185 38% 31% 52% (16%)

HubSpot, Inc. NYSE:HUBS Dec 2020 883 1,164 1,450 32% 25% 81% (6%)

Qualtrics International Inc. NasdaqGS:XM Sep 2020 723 932 1,112 29% 19% 72% (34%)

Zendesk, Inc. NYSE:ZEN Dec 2020 1,030 1,297 1,618 26% 25% 76% (10%)

NICE Ltd. TASE:NICE Dec 2020 1,648 1,805 1,991 9% 10% 66% 9%

Five9, Inc. NasdaqGM:FIVN Dec 2020 435 521 613 20% 18% 59% (5%)

Pegasystems Inc. NasdaqGS:PEGA Dec 2020 1,018 1,240 1,486 22% 20% 69% (8%)

J2 Global, Inc. NasdaqGS:JCOM Dec 2020 1,490 1,652 1,761 11% 7% 84% 10%

Medallia, Inc. NYSE:MDLA Jan 2021 477 555 658 16% 19% 64% (19%)

Verint Systems Inc. NasdaqGS:VRNT Oct 2020 1,264 1,350 1,425 5% 6% 68% 3%

SVMK Inc. NasdaqGS:SVMK Dec 2020 376 441 529 17% 20% 78% (15%)

eGain Corporation NasdaqCM:EGAN Dec 2020 76 80 94 5% 18% 74% 7%

High 38% 31% 87% 20%

Mean 19% 18% 72% -4%

Median 19% 19% 73% -5%

Low 5% 6% 52% -34%

23ConfidentialSecurities Products and Investment Banking Services are offered through BA Securities, LLC. Four Tower Bridge, 200 Barr Harbor Drive, Suite 400,

W. Conshohocken, PA 19428. (P) 877-738-5841. Member FINRA SIPC. HMAdvise Co, LLC dba Nfluence Partners and BA Securities, LLC are separate, unaffiliated entities.State of the Market CX & CE | Spring 2021

Date Target Target Description AcquirerEnterprise

Value ($M)

Revenue

Multiple

12/31/2020 OpenMarket

Developer of mobile engagement platforms committed to offering cloud-based

messaging services to enterprises allowing it to effectively optimize brand campaigns,

customer outreach programs and marketing plans.

Amdocs $300 N.D.

11/30/2020 Kustomer

The company's platform provides a customer-centric tool that unifies everything that

agents and teams need in one place to manage customer relationships and resolve

issues, enabling clients to manage their business internally and communicate with

customers externally.

Facebook $1,000 N.D.

11/30/2020 Gainsight

The company's platform assists in identifying at-risk customers, creating systematic

processes to mitigate concerns and efficiently ramping up engagement efforts,

enabling enterprises to successfully onboard, retain and expand their customer base.

Vista Equity $1,100 13.8x

11/17/2020 SmarterHQProvider of a customer intelligence-driven marketing automation platform intended

to help online brands seize on a massive opportunity to leverage powerful data. Wunderkind N.D. N.D.

11/12/2020 Pipedrive

The company's tool offers customer relationship management (CRM) software with

customizable fields, Google Apps integration and tools for e-mail tracking, data

importing and exporting and drag and drop capabilities on the sales pipeline, enabling

salespeople in small businesses to plan their activities, track deals and record

conversation history.

Vista Equity Partners $41 N.D.

10/21/2020 Acquire

The company provides syndication and content services to enterprise business

customers in the news media, digital publishing, financial services and corporate

communities, news and multimedia with reliability in formats that make content

instantly usable and searchable.

Moody's N.D. N.D.

10/12/2020 Segment

The company's platform integrates the data generated by websites, mobile apps,

servers and other sources and sends it to third-party tools, internal systems, or SQL

databases, enabling businesses to collect and unify data as well as deliver seamless,

personalized customer experiences across every channel and touchpoint.

Twilio $3,200 20.0x

______

Source: Pitchbook, 451 Research; arranged in descending transaction date

High $3,200.0 20.0x

Mean $727.6 8.2x

Median $500.0 6.3x

Low $41.0 2.6x

Select Precedent M&A Transactions (2020)




Value ($M)

Revenue

Multiple

10/1/2020 Emarsys

The company's digital marketing software simplifies cross-channel execution and

streamlines marketing operations by offering predictive and prescriptive analytics,

customer intelligence, and marketing automation applications in order to enable

clients to achieve their desired business outcomes.

SAP $940 7.2x

9/8/2020 Bullhorn

The company offers cloud-based and mission-critical customer relationship

management (CRM) and operations software that provides automated data and

customer insight technology, enabling global staffing and recruiting industries to

increase sales, improve service delivery and streamline operations.

Stone Point Capital N.D. N.D.

9/3/2020 Optimizely

The company's platform offers ease of use and speed of deployment to create and

run bold experiments that help make data-driven decisions and accelerate growth,

enabling businesses to deliver continuous experimentation and personalization

across websites, mobile applications and connected devices.

Episerver [Insight Venture

Partners]N.D. N.D.

9/01/2020 Reflexis Systems

Provider of retail execution management software. The company’s execution

management software aligns store activities with corporate indicated best-practice

responses to real-time metrics and alerts, enabling organizations to best execute

their customer engagement strategy and uncover profit.

Zebra Technologies $575 8.7x

8/11/2020 Openet

Provider of real-time transaction management services intended to improve

customer engagement by enabling service providers to drive new revenues and

increase their share of customers’ digital spend.

Amcdocs $180 2.6x

8/5/2020 RevionicsDeveloper of a pricing, promotion, markdown and space platform designed to make

consumer-focused, strategy-aligned, data-driven decisions.Aptos [Goldman Sachs] N.D. N.D.

6/23/2020 AnswerDash

The company's cloud-based platform predicts user questions based on web page

content and personalization with a point-and-click self-service UX to help deliver

the right answers at the point-of-action, enabling companies to lower support

tickets and costs and help in higher sales conversions.

Cloudengage N.D. N.D.

______


Select Precedent M&A Transactions (2020) (Continued)High $3,200.0 20.0x

Mean $727.6 8.2x

Median $500.0 6.3x

Low $41.0 2.6x




Value ($M)

Revenue

Multiple

2/26/2020 MaritzCX

The company offers a feedback system that collects and analyzes the voice of

customers and employees through multiple channels, including email, web, print

and phone to accumulate them in a central database for analysis and action.

InMoment N.D. N.D.

2/7/2020 Localytics

The company's platform provides a tool that integrates application marketing portal

like push, in-application and email marketing with an analytics platform, enabling

businesses to leverage real-time user data to run automated, personalized

marketing campaigns and improve user engagement and retention.

Upland Software $68 3.3x

2/3/2020 EvergageDeveloper of a real-time personalization platform designed to deliver the most

relevant, individualized marketing experience.Salesforce $100 5.3x

1/31/2020 Elemidia

The company's media platform customizes advertisements through geolocation, its

automatically links advertisements to variable data such as time and temperature

and can change the advertising pieces according to the communication needs,

enabling agencies and advertisers to reach out to their audience no matter the

distance.

Eletromidia $500 4.5x

1/27/2020 ChatterDeveloper of an online market research platform designed to engage customers in

conversational surveys over text message.Stingray Group N.D. N.D.

______


Select Precedent M&A Transactions (2020) (Continued)High $3,200.0 20.0x

Mean $727.6 8.2x

Median $500.0 6.3x

Low $41.0 2.6x



Date Target Target Description Notable Investors Deal TypeDeal Size

($M)

Company

Valuation

($M)

12/21/2020 Civis AnalyticsDeveloper of a data platform designed to make data driven better

decisions.

Drive Capital, WPP, Verizon

VenturesSeries A2 $20.8 $200.8

12/10/2020 GorgiasProvider of multi-channel helpdesk services designed for e-commerce

to manage all customer support in one application.

Amplify Partners, CRV, Greycroft,

Sapphire VenturesSeries B $25 $325

12/1/2020 TungeeProvider of an enterprise sales forecasting platform designed to offer

sales analyses and solutions.

Alibaba, Innoangel Fund, Qiming

Venture Partners, Sequoia Capital,

Unity Ventures

Series C $53 $334

11/18/2020 CogitoDeveloper of real-time emotional intelligence software designed to

improve customer engagement.

Battery Ventures, Goldman Sachs

Growth Equity, Herast Ventures,

Safar Partners, Salesforce Ventures

Series C2 $25 --

11/03/2020 Reflektion

Developer of a customer engagement platform designed to understand

and respond to the purchase intent of the individual shopper in real-

time.

Battery Ventures, Clear Ventures,

Intel CapitalSeries C1 $13.5 --

10/26/2020 TechSeeDeveloper of AI-powered visual customer engagement platform

intended to change the traditional way of customer support.

Salesforce Ventures, Scale Venture

Partners, TELUS VenturesSeries C $30 --

10/05/2020 LunchboxDeveloper of a digital ordering platform designed to take back control

of the online ordering experience

645 Ventures, Coatue Management,

Evolution VC PartnersSeries A $20 $100

9/09/2020Sharpen

Technologies

Developer of a cloud-native contact center platform designed to help

companies create perfect customer experiences.

Allos Ventures, Collina Ventures,

Cultivation Capital, Lightchain

Capital, Elevate Ventures

Series A4 $12 --

______


High $650.0 $3,143.0

Mean $61.7 $515.1

Median $25.0 $119.3

Low $11.3 $26.5

Select Precedent Investments (2020)




($M)

Company

Valuation

($M)

9/09/2020 SprinklrDeveloper of a customer experience management (CXM) software

platform designed to provide digital transformation.

Battery Ventures, JC2 Ventures,

H&F, Intel Capital, Sixth Street

Partners

Series F1 $650 $2,700

7/28/2020 AdvertimaDeveloper of an AI-based software designed to understand human

behavior in the physical world and engage in real-time.

Fortimo Group, Ennea Capital

PartnersSeries A $17.1 $119.3

7/23/2020 Talkdesk

Developer of cloud-based call center software designed to help

growing businesses to improve customer satisfaction while reducing

costs.

Amity Ventures, Franklin

Templeton, Salesforce Ventures,

Storm Ventures

Series C $143 $3,143

7/14/2020 Userlane

The company's software automates user onboarding and staff training,

converts more leads to loyal customers and increases user

engagement, enabling people to operate any software and interface

without the need of learning.

Capnamic Ventures, Five Elms

Capital, Main IncubatorSeries B $11.3 $26.5

7/07/2020 Netomi

Developer of artificial intelligence (AI)-based customer service

platform designed to unlock the power of one-to-one relationships

across the entire customer journey.

Bowery Capital, Index Ventures,

Salesforce Ventures, Y CombinatorSeries A2 $12 $64

6/29/2020 Alida

Operator of cloud-based customer intelligence platform intended to

assist large, customer-centric enterprises discover what their

customers wants.

OMERS Ventures, W Capital

Partners, Vistara Capital PartnersSeries A7 $20 --

5/27/2020 Aircall

Developer of a virtual voice calling software designed to facilitate

remote communication between the customers, partners and

employees.

Adams Street Partners, DTCP,

FundersClub, Kima VenturesSeries C $65 $373.2

5/20/2020 DirectlyDeveloper of a platform intended to provide resilient customer support

by using expert networks and artificial intelligence.

Costanoa Ventures, Northgate

Capital, True VenturesSeries B1 $31 $115

______


High $650.0 $3,143.0

Mean $61.7 $515.1

Median $25.0 $119.3

Low $11.3 $26.5

Select Precedent Investments (2020) (Continued)




($M)

Company

Valuation

($M)

5/19/2020 ContentSquareDeveloper of a digital experience insights optimization platform

designed to help businesses understand how users are interacting.

BlackRock, Canaan Partners,

Highland Europe, KKRSeries D $188.8 $772.3

5/07/2020 GrooveDeveloper of a sales engagement platform designed to assist clients to

build relationships with their customers.

Capital One Ventures, Level Equity,

Quest Venture Partners, Uncork

Capital

Series A $12 $54.5

4/13/2020 Xiaoduo AIDeveloper of AI-powered enterprise support chatbot designed to

improve online client service experience.

Chengwei Cpital, Vertex Ventures,

Vision Knight Capital Series C $28.3 --

3/31/2020 CatalystDeveloper of an intuitive customer success platform designed to assist

in customer management operations.

Accel, Compound, Spark Capital,

True VenturesSeries B $25 $128.3

2/20/2020 LeanplumDeveloper of a mobile marketing and multichannel engagement

platform designed to built brand engagement.

Ascolta Ventures, Kleiner Perkins,

Shasta VenturesSeries D1 $27 $114

2/11/2020 MoEngageDeveloper of a marketing automation platform designed to offer user

analytics and engagement.

Eight Roads, Exfinity Venture

Partners, Matrix Partners,

VenturEast

Series C $25 $104.3

2/04/2020 DixaProvider of a conversational costumer engagement platform intended

to create friendship between brands and their customers.JPKE, Project A, Notion Series B $36 --

1/27/2020 Airkit

Developer of a low-code digital engagement platform intended to

accelerate the digital transformation of businesses for better customer

experience.

Accel, Amplify Partners,

Emergence Capital Partners,

Salesforce Ventures

Series A $21.7 $81.7

______


High $650.0 $3,143.0

Mean $61.7 $515.1

Median $25.0 $119.3

Low $11.3 $26.5

Select Precedent Investments (2020) (Continued)

Customer Experience & Engagement 2021 - Nfluence

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