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Q2 2015 Market Report LUMA partners Digital Brief 003
Transcript of Digital Brief Market Report 2015 Q2 VFINAL › wp-content › uploads › 2015 › ... · Q2 2014...
Q2 2015 Market Report
LUMA partners
Digital Brief 003
Mobile
LUMA’s Singular Focus on Digital Media
Technology
Media
Marketing MarTech
DigitalContent
AdTech
Ø LUMA’sexpertiseisattheintersectionofMedia,MarketingandTechnology
Ø Atthisintersectionexists:§ DigitalContent: contentsites,MCNs,gamepublishers,aggregators
§ AdTech: display,search,video,mobile,social,contentmarketing/native,connectedTV
§ MarTech: data,analytics,salesandmarketingautomation,email,predictivetools,commercetechnology,shoppermarketing,payments
Ø Mobile proliferationhasamajorimpactonthesemarketsandLUMAisdeeplyknowledgeableonmobile
Overall Commentary on ConsolidationØ InourfirstMarketUpdate(clickhere
http://bit.ly/1Hqqbqd),wereported47acquisitionsindigitalmedia,highlightedbystrategicbuyersinCommerce,AdTechandConsumerInternet
Ø Thedealswetrackinthisreportfallintooneoffourcategories:§ Large(over$500mm)§ Medium($100– $500mm)§ Small($20– $100mm)§ Sub$20mmexitsareconsideredtechandteamdeals,
capitulations,orundisclosed
31 25 21 18 16
1113
1311 21
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Q22014 Q32014 Q42014 Q12015 Q22015
AdTech MarTech DigitalContent
U.S. Digital Media M&A Activity by Sector
Source: LUMA Partners
#ofTransactions
Ø DigitalmediaM&Apickedupthisquarterwith8moreacquisitionsfromlastquarterbut1fewercomparedtothesameperiodlastyear
A Growing Robust Pool of Strategic Buyers
Ø Softwaresolutionsthatenabledecisioningofconsumerdataisacapabilitythatattractsdeeppocketedstrategicsfromawidevarietyofindustries
Ø ManycompaniesfromAdTechandMarTechhavedevelopedthesecapabilities
MARKETINGTECH
CRMSOFTWARE
INTERNETORIGINALS TELCO
MARKETING
MEDIA
DATA
CONSUMERINTERNET
TECHSERVICES
COMMERCE
Right Time Decisioning of
Consumer Data
(Ad Tech and MarTech)
8 95 3 1
2316
16 1715
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Q22014 Q32014 Q42014 Q12015 Q22015
+$100M <$100M
Ad Tech M&A Activity
Source: LUMA Partners
Ø Observations§ AdTechM&Acontinuedwith16
acquisitionsthisquarter§ Ofthe16deals,athirdinvolved
mobileadvertisingandappmarketing
Ø LookingAhead– LocationTech§ Withtheproliferationofmobile
devices,marketersaretryingtofindareliableidentifiertotargetconsumersacrossdevices
§ Weexpecttoseeconsolidationfocusedonlocationdatawhichservesasthemobileequivalenttothewebcookiethatenablesrichmobiletargeting
#ofTransactions
Ad Tech – Notable DealsAcquirer Capital
RaisedEnterprise
Value Comments
$33M N/A TheacquisitionofmobileadservingandmeasurementcompanyMedialets representsWPPandtheagencyworld’smissiontoprovidemoretechnologyservicestomarketers
$40M $720M VistaEquityPartnersacquiredMediaocean,aleadingworkflowandplanningautomationcompany,tofurtherdevelopitsdigitalvideoandTVproducts
$10M N/A ByacquiringanalyticscompanyProximic,ComScore nowhaspre-bidsolutionsthatoffergreatertransparencyinprogrammaticadvertising
$18M $533M Twitter’smobileadcapabilitieswillbecomemoresophisticatedafterintegratingwithTellApart’s retailer-focusedretargetingtechnology
$33M N/A Comcast’sacquisitionofVisibleWorldmarksthecompany’searlyinvestmentsinaddressable andprogrammaticTV
Source: Capital IQ; Crunchbase
4 2 3 15
7 11 109
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0
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Q22014 Q32014 Q42014 Q12015 Q22015
+$100M <$100M
MarTech M&A Activity
Source: LUMA Partners
Ø Observations§ Social“LUMAcorn”Sprinklr
continueditsM&Atearwiththreetransactions(NewBrand,Scup,GetSatisfaction)
§ NetSuiteentereddigitalmarketingwithacquisitionofESPBronto
Ø LookingAhead– PredictiveTech§ Predictiveanalyticsdeals
rampedupinQ2(C9,AppliedPredictiveTechnologies,Coldlight,Splitforce)
§ Weexpectpredictiveanalyticstobeahotareaacrosstechverticals– includingsales&marketing
#ofTransactions
MarTech – Notable DealsAcquirer Capital
RaisedEnterprise
Value Comments
$154M $600M MasterCardacquiredAppliedPredictiveTechnologieswhichoffers cloud-basedpredictiveanalyticsthatareusedformarketingandpricingstrategies
N/A $465M TheacquisitionofBorderfreeprovidesPitneyBoweswithmarketingand internationale-commercetechnologyasthecompanyexpandsintodigitalcommerceservices
N/A $200M NetSuitewillintegrateBronto’smarketingautomationsystemwithitsSuiteCommercetechnology,acloud-basedomni-channelcommerceplatform
$36M N/A InsideSales.comwillcombineitscloudtechnologywithC9’spredictiveanalyticstocreatethefirstpredictivecloudsolutionthataddressestheentiresalesfunnel
N/A $4B TheacquisitionofDealertrackanditsdigitalmarketingservicesfordealershipswillenableCoxAutomotivetocreateabroadersuiteoftoolsfortheautomotiveindustry
$37M N/A ThemergedcompanyMagneticwillcombinefirst andthird-partydatatogiveclientsacompleteviewoftheirmarketingcampaignsthroughoutthecustomerlife-cycle
Source: Capital IQ; Crunchbase
2 4 3 5 3
1211 13 10 15
02468101214161820
Q22014 Q32014 Q42014 Q12015 Q22015
+$100M <$100M
Digital Content M&A Activity
Source: LUMA Partners
Ø Observations§ Technologyistransforming
publishingfromanarttoascience,drivenbydata
§ Therewere5dealsinvolvingpublishersacquiringnewverticalsandtechnology
Ø LookingAhead– DeepLinking§ GoogleandApplewilldebut
deeplinkingintheirnextmajorOSreleasestoenableseamlessuserexperiencesacrossapps
§ Deeplinkingwillhaveatransformativeimpactondistributionandmonetizationofappsanddigitalcontent
#ofTransactions
Digital Content – Notable DealsAcquirer Capital
RaisedEnterprise
Value Comments
N/A $4.2B VerizonhasagreedtoacquireAOLinordertoexpandthetelecomgiant’scontentandadvertisingbusiness
$289M $1.5B BybuyingonlinelearningcompanyLynda.com,LinkedInisaddingeducationtoitscorebusinessofconnectingjobseekerswithnewopportunities
$24M ~$100M Microsofthasacquired6Wunderkinder, themakerofto-dolistappWunderlist,toaddanotherpopularappandteamtoitsgrowingportfolioofconsumerfocusedproducts
Source: Capital IQ; Crunchbase
Q2 2015 Stocks Performance – Ad Tech
Ø AdTechEnjoysPositiveQuarter§ Investorsmayhavefinally
warmeduptothesector.Thesectorgained11%inmarketvaluebytheendofthequarter
§ OnlythreestocksaretradingdownafteronlythreestockstradedupinQ1
Ø TheVerizon-AOLRippleEffect§ Verizon’sacquisitionofAOLand
itsprogrammaticadvertisingtechnologyisexpectedtohaveapositiverippleeffectonthesector
Note:MarketDataasof6/30/15
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
4/1/15 4/15/15 4/29/15 5/13/15 5/27/15 6/10/15 6/24/15
MM TUBE RUBI TRMR MXPT YUME FUEL CRTO NASDAQ
Q2 2015 Stocks Performance – MarTech
Ø MarTechRebounds§ MarTechstocksclimbedbynearly
10%inmarketvaluethisquarterandonaveragegrewby9%afterfallingbythesameamountinvalueinthepriorquarter
Ø Highlights§ Marketingandsalesautomation
companies(CRM,MKTO,HUBS)continuetoleadthesector
§ SHOPhadasuccessfulIPO,pricingabovetherangeat$17pershareandhassoared34%sincegoingpublic
Note:MarketDataasof6/30/15
-30%
-20%
-10%
0%
10%
20%
30%
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4/1/15 4/15/15 4/29/15 5/13/15 5/27/15 6/10/15 6/24/15
CRM MKTO HUBS BV CTCT DWRE
JIVE MRIN LPSN SHOP NASDAQ
Key Startup Financings to WatchLead Investor Capital Raised Valuation Comments
Source: Crunchbase
N/A $63M $1.2B AppNexus’latestroundoffundingwillaid itsexpansioninto thefast-growingprogrammaticvideomarket
$100M N/A Banjoisrampingupitsenterprise-class,real-timedataproductsaftersuccessfullytransitioningfrom itsconsumer-facingorigins
$210M $2B BusinessmanagementcompanyDomo,whichletsusersconnectandvisualizedata,cameoutofstealthinAprilwitharun-rateof$100millionand1,000customers
$186M $11B Pinterest isrollingoutitshighlyanticipated“buybutton”toenableuserstodirectlypurchaseproductsfromthesocialbookmarkingsite
$125M N/A RetailNext,aretailanalyticscompanythatcollectsdatafromin-storecameras,smartphones,andPOSsystems,planstoexpandinternationally
$160M $2.8B Injusttwoyears,popularworkplacemessagingappSlackhasoveronemilliondailyactiveusersand isgrowing5%everyweek
$526M $8.5B Spotify closedanotherlargeroundoffundingamidincreasedcompetitionandasitplanstoexpandintodigitalvideoforthefirsttime
N/A $100M $1B Twilio,a providerofcloud communicationsinfrastructure,surpasseda$100millionrunratelastyearandworkswithover500,000developers
Introducing the LUMAcorns
corn
WhatdoyoucallastartupontheLUMAscapesthatmakesittothe$1billionvaluationmark?
LUMA’s Recent M&A DealsØ LUMAActivity
§ LUMAannouncedtheMyBuysmergerwithMagnetic,followingtheYieldex saletoAppNexus
Ø ALookAhead§ Wehaveneverbeenbusierand
anticipateariseinthenumberofdealscoupledwithanincreaseinthesizeofdealsasindustryconsolidationcontinuesorevenaccelerates
LUMA’s Differentiated Value Proposition
Ø LUMAhasdevelopedadifferentiatedvaluepropositionbasedon:§ Focus§ Expertise§ ObjectiveCredibility§ Trust§ Performance
Ø LUMAhasbuiltadifferentiatedglobalbrand
Ø Weleverageourbrandtooptimizefinancialandstrategicobjectivesofselectqualityclients
LUMA partners
LUMA’s Differentiated Strategic ApproachØ Ratherthanpitchinventory,LUMAoptimizesoutcomesforqualitygrowth
companiesbymakingmatcheswithstrategicbuyers
Ø ThisapproachmakesLUMAanexcellentchoiceifcompaniesreceiveinboundinterest
ExistingAssets
IndustryTrends
CompetitiveLandscape Strategy Capabilities
Build
Acquire
PartnerTarget
Selection
DueDiligence
InitialApproach
NegotiateTransaction
CloseTransactionIntegration
GeoorSizeFilter
LUMA partners
Actsasconsultanttostrategic
decisionmakers
Actsasbankertotarget
company
A"Valua'on"Framework"for"the"Ad"Tech"Sector"
Color by Numbers:
May$2014$
DISCLAIMER: LUMA Securities, a wholly-owned subsidiary of LUMA Partners, has acted as co-managing underwriter for and may pursue underwriting or other advisory assignments with companies mentioned in this report or in the sector.!!
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