DIGITAL MEDIA | INTERNET | SAAS SECTOR REPORT€¦ · 5 INDUSTRY STOCK MARKET VALUATION Internet /...

DIGITAL MEDIA | INTERNET | SAASSECTOR REPORT

February 2019

2

DEAL DASHBOARD Internet / Digital Media / SaaS

Notes:Sources: Capital IQ, PitchBook, and PriceWaterhouseCoopers / NVCA MoneyTree Report. 1) Criteria based on U.S. internet/mobile/telecommunications Series A and subsequent rounds of financings. 2) Financings include Venture and Private Equity Growth/Expansion activity for U.S. internet/mobile/telecommunications sectors. 3) Figures reflect total transactions and volume through end of most recent quarter. 4) Criteria based on U.S. target internet/digital media/SaaS M&A deals with transaction enterprise values greater than $50MM. 5) Search/online advertising composite, internet commerce composite, internet content composite, diversified marketing composite, SaaS composite and social media composite used as proxy for internet/digital media/SaaS

landscape. Details on companies included can be found on the public valuation company slides.

DM Composite SPX

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count

Select Financing Transactions Quarterly Financing Volume ($Bn) (1)(2) Quarterly M&A Volume ($Bn) (4)

Select M&A Transactions

Company Amount ($MM) Acquirer Target EV ($Bn)

$1,250 $8.0

$600 $6.2

$550 $4.8

$500 $3.3

$500 $1.9

$500 $1.8

$450 $0.3

$300 $0.3

Last 12 Months Digital Media Price Performance vs. S&P 500 (5)

2,940

2018 Financing Transactions (1)(2)(3)

$52.4 Billion

2018 Financing Volume (1)(2)(3)

$83.9 Billion

2018 M&A Volume (3)(4)

90

2018 M&A Transactions (3)(4)

(20%)

(10%)

0%

10%

20%

30%

746 764 805 847745

796 783671 690

0

200

400

600

800

1000

$8 $9

$13$11 $12 $13 $12

$15$13

$0

$5

$10

$15

$20

$14 $14 $17$29

$65

$13 $14

$28 $30

$0

$20

$40

$60

$80

2621

2832

1417 16

25

32

0

10

20

30

40

8%

1%

3

GCA OVERVIEWInternet / Digital Media / SaaS Team

New York640 Fifth Avenue, 10

thFl.

New York, NY 10019United States

Phone: (212) 999-7090

Tokyo11-1 Marunouchi 1-chome

Chiyoda-ku, Tokyo 100-6230Japan

Phone: +81 (3) 6212-7100

San FranciscoOne Maritime Plaza, 25th Fl.

San Francisco, CA 94111United States

Phone: (415) 318-3600

London1 Southampton St.London WC2R0LRUnited Kingdom

Phone: +44 20 7484 4040

FrankfurtThurn-und-Taxis-Platz 6

D-60313 FrankfurtGermany

Phone: +49 (0) 69 204 34 6410

Paul DiNardo Rich Jasen John Lambros James Orozco Joshua Wepman

Managing Director Managing Director Managing Director Managing Director Managing Director

Phone: (212) 999-7097 Phone: (415) 318-3653 Phone: (212) 999-7083 Phone: (415) 318-3667 Phone: (212) 999-7092

Mobile: (650) 483-7246 Mobile: (415) 308-4760 Mobile: (917) 744-9011 Mobile: (415) 722-0922 Mobile: (917) 306-4168

[email protected] [email protected] [email protected] [email protected] [email protected]

Sascha Pfeiffer* Giuseppe Diprima Thomas Egli* Tobias Schultheiss* Tomohiko Kubota**

Managing Director Vice President Managing Director Managing Director Vice President

Phone: +49 (0) 69 204 34 6410 Phone: (212) 999-7088 Phone: +41 (0) 43 499 43 43 Phone: +49 (0) 69 204 34 6410 Phone: +81 (3) 6212-7129

[email protected] [email protected] [email protected] [email protected] [email protected]

*Sascha Pfeiffer, Thomas Egli, and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly owned subsidiary of GCA Corporation.**Tomohiko Kubota is a Vice President at GCA Corporation.

4

60%

80%

100%

120%

140%

160%

2/7/2018 3/31/2018 5/22/2018 7/13/2018 9/3/2018 10/25/2018 12/16/2018 2/6/201975%

90%

105%

120%

11/7/2018 11/20/2018 12/3/2018 12/16/2018 12/29/2018 1/11/2019 1/24/2019 2/6/2019

(2.6)%

11.1%

46.1%

3.4%6.3%

(18.8)%(17.5)%

8.7%

Internet / Digital Media / SaaS

Diversified Marketing(5)

Internet Content(3)

Search / Online Advertising(1)

Gaming(7)

Media Conglomerates(6)

Internet Commerce(2)

SaaS(8)

Publishers(4)

NASDAQ

Social Media (9)

Last 12 Months Last 3 Months

(10.0)%

15.0%

INDUSTRY STOCK MARKET VALUATION

(3.7)%

(1.8)%

(6.4)%

(3.1)%

(0.9)%

14.5%

9.4%

(4.8)%

9.9%

7.7%

Notes:(1) Search/Online Advertising Composite includes: CRTO, GOOGL, MCHX, MSFT, QNST, RUBI, TTD, YNDX.(2) Internet Commerce Composite includes: AMZN, APRN, BABA, BKNG, CARG, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, QUOT, SFIX, SSTK, STMP, TRVG, TZOO.(3) Internet Content Composite includes: CRCM, EHTH, GDDY, IAC, SFLY, TNGA, TTGT, ZG.(4) Publishers Composite includes: GCI, LSE:INF, ENXTPA:MMB, MDP, NWSA, NYT, LSE:PSON, TSX:TRI.(5) Diversified Marketing Composite includes: ADS, EFX, LSE:EXPN, HHS, IPG, MDCA, NLSN, LSE:WPP.(6) Media Conglomerates Composite includes: CBS, CMCSA, DIS, DISCA, TSE:6758 (SONY), VIAB, ENXTPA:VIV.(7) Gaming Composite includes: ATVI, CYOU, TSE:2432 (DENA), EA, GLUU, TSE:3632 (GREE), TSE:3765 (GHO), KOSE:A035420 (NVR), KOSE:A036570 (NCSOFT), NTES, SEHK:700 (TENCENT), ENXTPA:UBI, ZNGA. (8) SaaS Composite includes: APPF, AYX, BCOV, BOX, CLDR, COUP, CRM, CSOD, DBX, DOCU, DOMO, ECOM, EVBG, HUBS, LOGM, LPSN, MDB, NOW, NTNX, OKTA, RNG, RP, SHOP, SSTI, WDAY, YEXT, ZEN, ZUO.(9) Social Media includes: FB, TSE:3938 (LINE), SNAP, SPOT, TWTR, YELP.

5

INDUSTRY STOCK MARKET VALUATIONInternet / Digital Media / SaaS: Financial Metrics

EV / 2018E Revenue EV / 2018E EBITDA

10.4x

5.5x

4.3x 4.2x 3.7x 3.5x 2.8x

2.5x 2.2x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x Mean: 4.3x

Median: 3.7x 30.6x

19.6x 19.3x 18.8x14.3x 13.7x 12.5x

9.4x 9.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x Mean: 16.4x

Median: 14.3x

Notes:(1) Search/Online Advertising Composite includes: CRTO, GOOGL, MCHX, MSFT, QNST, RUBI, TTD, YNDX.(2) Internet Commerce Composite includes: AMZN, APRN, BABA, BKNG, CARG, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, OSTK, QUOT, SFIX, SSTK, STMP, TRVG, TZOO.(3) Internet Content Composite includes: CRCM, EHTH, GDDY, IAC, SFLY, TNGA, TTGT, ZG.(4) Publishers Composite includes: GCI, LSE:INF, ENXTPA:MMB, MDP, NWSA, NYT, LSE:PSON, TSX:TRI.(5) Diversified Marketing Composite includes: ADS, EFX, LSE:EXPN, HHS, IPG, MDCA, NLSN, LSE:WPP.(6) Media Conglomerates Composite includes: CBS, CMCSA, DIS, DISCA, TSE:6758 (SONY), VIAB, ENXTPA:VIV.(7) Gaming Composite includes: ATVI, CYOU, TSE:2432 (DENA), EA, GLUU, TSE:3632 (GREE), TSE:3765 (GHO), KOSE:A035420 (NVR), KOSE:A036570 (NCSOFT), NTES, SEHK:700 (TENCENT), ENXTPA:UBI, ZNGA. (8) SaaS Composite includes: APPF, AYX, BCOV, BOX, CLDR, COUP, CRM, CSOD, DBX, DOCU, DOMO, ECOM, EVBG, HUBS, LOGM, LPSN, MDB, NOW, NTNX, OKTA, RNG, RP, SHOP, SSTI, WDAY, YEXT, ZEN, ZUO.(9) Social Media includes: FB, TSE:3938 (LINE), SNAP, SPOT, TWTR, YELP.

6

PUBLIC COMPANY VALUATIONSInternet / Digital Media / SaaS: Financial Metrics

Notes:Sources: Capital IQ and Wall Street Estimates. Multiples <0 and >50 considered NM.EBITDA Margin Mean and Median exclude values <0.

($MM), Except Per Share DataStock Trading Statistics Operating Metrics

Price LTM Price Range Equity Cash & Net Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin

Company 2/7/19 Low High Value Equiv. Debt Value CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E 17A/16A 18E/17A 19E/18E CY 17A CY 18E CY 19E

Search / Online Advertising

Microsoft Corporation $105.27 $83.83 $116.18 $807,654 $127,673 ($42,190) $765,464 7.5x 6.5x 5.9x 18.1x 15.3x 13.8x 15.0% 15.9% 9.7% 41.3% 42.1% 42.7%

Alphabet Inc. $1,105.91 $977.66 $1,291.44 $768,814 $109,140 ($105,128) $663,686 6.0x 4.9x 4.1x 18.5x 13.3x 11.2x 22.8% 23.1% 19.8% 32.3% 36.7% 36.2%

Yandex N.V. $33.03 $24.90 $44.49 $10,715 $991 ($991) $9,724 5.9x 5.4x 4.0x 24.8x 17.7x 12.1x 31.8% 11.0% 35.6% 24.0% 30.3% 32.5%

The Trade Desk, Inc. $142.04 $40.70 $161.50 $6,142 $166 ($166) $5,976 19.4x 12.9x 9.7x NM 41.0x 31.4x 51.9% 50.8% 32.8% 24.1% 31.4% 30.8%

Criteo S.A. $26.25 $19.13 $36.66 $1,768 $364 ($361) $1,407 0.6x 0.6x 0.6x 4.5x 4.6x 4.7x 27.7% (1.4%) 6.9% 13.5% 13.6% 12.4%

QuinStreet, Inc. $18.53 $9.76 $20.02 $913 $62 ($62) $851 2.5x 1.9x 1.7x NM 20.9x 14.9x 12.1% 32.8% 15.1% 3.4% 9.1% 11.1%

The Rubicon Project, Inc. $4.79 $1.48 $4.89 $242 $97 ($97) $145 0.9x 1.2x 1.0x NM NM 13.2x (44.1%) (22.1%) 19.8% (19.8%) (13.1%) 7.6%

Marchex, Inc. $4.14 $2.47 $4.29 $171 $45 ($45) $126 1.4x 1.5x 1.3x NM NM 28.3x (30.3%) (6.2%) 18.6% (3.2%) 2.4% 4.4%

Mean 5.5x 4.3x 3.5x 16.5x 18.8x 16.2x 26.9% 26.7% 19.8% 23.1% 23.7% 22.2%Median 4.2x 3.4x 2.8x 18.3x 16.5x 13.5x 18.9% 13.4% 19.2% 18.7% 21.9% 21.6%

Internet Content

IAC/InterActiveCorp $215.93 $128.80 $223.54 $18,095 $2,255 $4 $18,099 5.5x 4.3x 3.8x NM 18.4x 15.7x 5.3% 27.9% 13.5% 10.2% 23.2% 24.1%

GoDaddy Inc. $69.52 $50.29 $84.97 $11,625 $870 $1,707 $13,332 6.0x 5.0x 4.5x 45.8x 19.3x 17.5x 20.8% 19.1% 12.1% 13.1% 25.9% 25.5%

Zillow Group, Inc. $34.09 $26.20 $65.42 $6,929 $1,643 ($928) $6,001 5.6x 4.5x 3.2x NM 29.7x 26.7x 27.2% 22.6% 42.8% 7.7% 15.3% 11.9%

TEGNA Inc. $11.56 $10.00 $14.25 $2,489 $24 $2,966 $5,455 2.9x 2.5x 2.5x 8.7x 7.1x 8.1x (5.0%) 15.4% (1.8%) 32.9% 34.9% 31.1%

Shutterfly, Inc. $47.91 $35.08 $100.34 $1,613 $556 $549 $2,162 1.8x 1.1x 1.0x 13.0x 5.5x 6.7x 4.9% 66.6% 8.6% 13.9% 19.8% 15.1%

eHealth, Inc. $59.65 $13.61 $64.81 $1,303 $20 ($20) $1,282 8.1x 5.1x 4.3x NM 40.5x 27.0x (7.3%) 58.5% 19.7% (16.0%) 12.6% 15.8%

Care.com, Inc. $23.42 $15.14 $24.35 $745 $120 ($120) $625 3.6x 3.2x 2.9x NM 19.7x 16.6x 7.6% 10.5% 13.8% 6.7% 16.5% 17.2%

TechTarget, Inc. $15.53 $11.12 $34.47 $432 $35 ($10) $421 3.9x 3.5x 3.2x 28.0x 14.4x 11.6x 1.8% 11.4% 10.2% 13.9% 24.2% 27.3%


7


PUBLIC COMPANY VALUATIONSInternet / Digital Media / SaaS: Financial Metrics (Cont’d)




Internet Commerce

Amazon.com, Inc. $1,614.37 $1,265.93 $2,050.50 $792,983 $41,250 $8,039 $801,022 4.5x 3.4x 2.9x NM 24.2x 18.9x 30.8% 30.7% 18.3% 8.8% 14.2% 15.4%

Alibaba Group Holding Limited $166.96 $129.77 $211.70 $432,790 $29,165 ($9,384) $423,407 12.1x 8.4x 6.1x 30.8x 25.4x 19.8x 68.3% 44.5% 38.9% 39.4% 33.1% 30.6%

Netflix, Inc. $344.71 $231.23 $423.21 $150,500 $3,794 $6,566 $157,065 13.4x 9.9x 7.8x NM NM NM 32.4% 35.2% 28.0% 7.8% 12.6% 15.3%

Booking Holdings Inc. $1,877.06 $1,606.27 $2,228.99 $86,963 $7,131 $1,578 $88,542 7.0x 6.1x 5.5x 18.0x 15.6x 14.1x 18.0% 14.6% 11.1% 38.8% 39.2% 38.9%

eBay Inc. $35.25 $26.01 $44.36 $32,250 $4,915 $4,326 $36,576 3.7x 3.4x 3.4x 12.4x 10.1x 9.7x 6.8% 8.1% 1.2% 29.6% 33.8% 34.7%

Expedia Group, Inc. $127.87 $98.52 $139.77 $18,814 $2,471 $1,246 $20,060 2.0x 1.8x 1.6x 17.3x 10.5x 9.3x 14.7% 11.5% 10.4% 11.5% 17.1% 17.5%

Copart, Inc. $51.29 $40.29 $67.08 $12,003 $320 $79 $12,082 7.4x 6.4x 5.8x 18.4x 17.0x 14.9x 18.6% 15.3% 11.3% 40.3% 37.9% 38.7%

GrubHub Inc. $82.27 $66.62 $149.35 $7,462 $225 $116 $7,578 11.1x 7.5x 5.6x NM 31.7x 30.1x 38.5% 47.6% 34.2% 20.4% 23.7% 18.6%

Etsy, Inc. $51.53 $17.49 $60.58 $6,207 $584 ($304) $5,903 13.4x 9.9x 7.6x NM 43.1x 30.4x 20.9% 35.7% 30.4% 10.9% 22.9% 24.9%

CarGurus, Inc. $39.10 $28.52 $57.25 $4,304 $148 ($148) $4,156 13.1x 9.2x 7.4x NM NM NM 59.9% 42.1% 25.3% 6.0% 8.5% 9.6%

Stamps.com Inc. $190.76 $141.38 $285.75 $3,453 $78 $3 $3,456 7.4x 6.0x 5.0x 18.7x 13.5x 11.7x 28.7% 23.1% 19.5% 39.5% 44.3% 42.8%

Cimpress N.V. $77.85 $76.76 $171.76 $2,401 $48 $1,148 $3,549 1.5x 1.3x 1.3x 15.9x 9.9x 9.4x 26.0% 11.1% 3.6% 9.2% 13.3% 13.5%

Stitch Fix, Inc. $21.79 $14.48 $52.44 $2,169 $258 ($258) $1,911 1.7x 1.4x 1.2x 49.6x 39.0x 47.8x 25.5% 24.8% 20.8% 3.5% 3.6% 2.4%

trivago N.V. $5.77 $4.01 $8.87 $2,027 $185 ($185) $1,841 1.5x 1.8x 1.8x NM NM 24.6x 56.2% (15.8%) (1.3%) (1.1%) (0.2%) 7.3%

Shutterstock, Inc. $39.48 $31.77 $55.76 $1,383 $206 ($206) $1,177 2.1x 1.9x 1.7x 23.6x 11.4x 9.7x 12.7% 12.5% 10.4% 8.9% 16.5% 17.6%

1-800-FLOWERS.COM, Inc. $16.86 $10.01 $17.54 $1,082 $258 ($159) $923 0.8x 0.8x 0.7x 13.0x 11.6x 10.4x (2.7%) 3.3% 6.7% 6.1% 6.6% 7.0%

Quotient Technology Inc. $9.63 $9.00 $15.98 $917 $323 ($167) $750 2.3x 1.9x 1.6x NM 13.0x 9.8x 17.1% 20.1% 24.8% 3.6% 14.9% 15.8%

Overstock.com, Inc. $19.49 $12.33 $68.90 $627 $182 ($178) $449 0.3x 0.2x 0.2x NM NM NM (3.1%) 6.2% 7.2% (1.7%) (8.7%) (2.6%)

Blue Apron Holdings, Inc. $1.36 $0.65 $4.20 $263 $96 $59 $322 0.4x 0.5x 0.6x NM NM NM 10.8% (24.5%) (13.7%) (17.0%) (10.1%) 0.7%

Travelzoo $15.58 $5.95 $21.15 $189 $18 ($18) $171 1.6x 1.5x 1.4x 27.1x 18.1x 14.1x (6.8%) 5.1% 5.9% 5.9% 8.4% 10.2%


Media Conglomerates / Selected Entertainment

Comcast Corporation $37.68 $30.43 $40.42 $170,538 $3,814 $107,929 $278,467 3.3x 3.0x 2.5x 10.1x 9.3x 8.1x 5.3% 10.8% 19.0% 32.6% 31.9% 30.6%

The Walt Disney Company $110.95 $97.68 $120.20 $165,402 $4,455 $16,210 $181,612 3.3x 3.1x 3.0x 10.7x 10.5x 10.3x 1.0% 6.4% 3.3% 30.4% 29.2% 28.7%

Sony Corporation $42.94 $42.86 $63.53 $54,511 $20,145 ($7,463) $47,047 0.7x 0.6x 0.6x 4.3x 4.2x 4.2x 16.7% 25.3% (0.8%) 17.3% 13.9% 14.2%

Vivendi SA $25.43 $23.01 $26.74 $32,241 $5,572 ($608) $31,633 2.1x 2.0x 1.9x 20.4x 15.8x 13.9x 30.8% 5.6% 5.8% 10.4% 12.7% 13.6%

Discovery, Inc. $28.64 $20.47 $34.89 $20,354 $571 $16,911 $37,265 5.7x 3.5x 3.3x 14.6x 9.0x 8.0x 5.9% 63.4% 5.7% 39.0% 38.9% 41.2%

CBS Corporation $49.15 $41.38 $59.59 $18,392 $322 $9,830 $28,222 2.1x 1.9x 1.8x 9.2x 8.5x 8.1x 4.0% 7.0% 6.7% 22.3% 22.6% 22.3%

Viacom Inc. $29.38 $23.31 $34.58 $11,842 $534 $8,427 $20,269 1.6x 1.6x 1.5x 6.9x 6.8x 6.5x 2.8% (0.2%) 1.9% 22.5% 23.0% 23.6%


Publishers

Thomson Reuters Corporation $53.04 $38.75 $53.91 $26,600 $549 $6,818 $33,418 2.9x 6.1x 5.6x 13.3x 25.9x 23.7x 1.5% (51.4%) 7.8% 22.3% 23.4% 23.7%

Informa plc $8.84 $7.82 $11.28 $11,060 $174 $3,579 $14,638 6.2x 4.9x 3.9x 19.4x 14.8x 11.5x 43.1% 25.5% 24.6% 31.8% 33.2% 34.2%

Pearson plc $11.94 $8.44 $13.36 $9,260 $435 $1,118 $10,377 1.7x 1.9x 1.9x 13.8x 11.8x 10.6x 8.5% (11.6%) 2.6% 12.3% 16.3% 17.7%

News Corporation $12.71 $10.65 $16.68 $7,436 $1,670 $36 $7,472 1.0x 0.8x 0.7x 8.9x 6.2x 5.7x 0.9% 28.3% 2.8% 10.9% 12.2% 12.8%

The New York Times Company $30.60 $21.34 $30.74 $5,047 $554 ($302) $4,746 3.0x 2.8x 2.6x 18.2x 18.6x 19.8x 7.2% 9.9% 7.0% 16.6% 14.8% 13.0%

Lagardère SCA $25.68 $23.84 $30.45 $3,290 $734 $1,713 $5,003 0.6x 0.6x 0.6x 6.8x 6.7x 6.5x 8.8% (2.9%) 2.6% 8.7% 9.0% 9.0%

Meredith Corporation $53.09 $47.30 $62.40 $2,388 $77 $2,430 $4,819 2.8x 2.1x 1.6x 13.3x 11.4x 6.5x 3.9% 31.2% 37.4% 21.1% 18.7% 23.8%

Gannett Co., Inc. $11.00 $8.37 $11.99 $1,244 $109 $229 $1,474 0.5x 0.5x 0.5x 4.9x 4.5x 4.7x 2.6% 0.8% (2.4%) 10.4% 11.1% 10.9%


8






Diversified Marketing

Experian plc $25.56 $19.39 $26.05 $23,031 $182 $3,430 $26,461 6.1x 5.7x 5.4x 17.4x 16.4x 15.8x (4.7%) 7.5% 5.1% 35.1% 34.7% 34.2%

WPP plc $10.38 $10.35 $19.12 $13,101 $2,931 $6,112 $19,213 0.9x 1.0x 0.9x 6.0x 6.5x 6.7x 16.1% (4.8%) 3.1% 15.5% 15.0% 14.2%

Equifax Inc. $106.60 $88.68 $138.69 $12,853 $253 $2,379 $15,232 4.5x 4.5x 4.3x 13.7x 13.2x 12.6x 6.9% 1.7% 3.5% 33.2% 33.7% 34.3%

Nielsen Holdings plc $25.55 $20.53 $36.90 $9,070 $451 $8,160 $17,230 2.6x 2.6x 2.7x 10.1x 9.4x 9.3x 4.2% (1.0%) (0.1%) 25.9% 28.1% 28.6%

Alliance Data Systems Corporation $162.19 $142.58 $250.93 $8,835 $3,863 $21,320 $30,155 3.9x 3.8x 3.6x 15.6x 14.5x 13.5x 8.1% 2.4% 5.7% 25.1% 26.3% 26.8%

The Interpublic Group of Companies, Inc.$21.89 $19.61 $26.01 $8,413 $1,860 $1,484 $9,897 1.3x 1.2x 1.2x 8.8x 7.5x 6.9x 0.5% 1.1% 7.2% 14.3% 16.6% 16.8%

MDC Partners Inc. $2.81 $2.20 $9.85 $162 $25 $963 $1,125 0.7x 0.8x 0.7x 6.4x 6.3x 5.3x 9.2% (2.8%) 3.9% 11.6% 12.2% 14.0%

Harte Hanks, Inc. $3.10 $2.38 $12.16 $19 $23 ($23) ($3) NM NM NA NM 1.3x NA (5.1%) (14.2%) NA 2.2% (0.8%) NA

Mean 2.9x 2.8x 2.7x 11.1x 9.4x 10.0x 4.4% (1.3%) 4.1% 20.4% 20.7% 24.1%Median 2.6x 2.6x 2.7x 10.1x 8.5x 9.3x 5.5% 0.0% 3.9% 20.3% 21.5% 26.8%

Gaming

Tencent Holdings Limited $44.30 $32.04 $60.61 $418,849 $21,015 $4,273 $423,122 14.2x 9.3x 7.1x 28.5x 24.8x 21.1x 53.9% 52.2% 31.7% 49.7% 37.6% 33.6%

Activision Blizzard, Inc. $43.96 $42.53 $84.68 $33,544 $4,225 ($1,554) $31,990 4.6x 4.3x 4.4x 14.4x 12.0x 12.0x 6.2% 6.3% (2.3%) 31.7% 35.7% 36.7%

NetEase, Inc. $237.71 $184.60 $329.00 $31,218 $6,178 ($4,191) $27,027 3.3x 2.8x 2.2x 13.6x 21.8x 16.7x 51.2% 17.6% 25.3% 23.9% 12.7% 13.2%

Electronic Arts Inc. $84.10 $73.91 $151.26 $25,196 $5,161 ($4,167) $21,029 4.1x 4.2x 4.2x 13.6x 12.3x 13.4x 10.1% (2.3%) 0.4% 30.2% 34.3% 31.4%

NAVER Corporation $114.70 $92.47 $152.93 $16,767 - - $16,767 3.8x 3.4x 2.9x 13.0x 15.6x 15.2x 31.1% 13.7% 14.5% 29.6% 21.6% 19.4%

Ubisoft Entertainment SA $82.81 $69.59 $122.53 $8,975 $1,227 $396 $9,371 4.6x 4.3x 3.3x 16.9x 9.4x 8.2x 31.2% 8.5% 28.9% 27.4% 45.2% 40.4%

Ncsoft Corporation $411.23 $293.42 $459.69 $8,739 $1,227 ($1,088) $7,651 4.6x 4.9x 4.2x 13.3x 12.8x 10.5x 101.5% (6.1%) 18.4% 35.0% 38.6% 39.7%

Zynga Inc. $4.74 $3.20 $4.86 $4,388 $581 ($481) $3,906 4.5x 4.3x 3.2x NM 21.0x 16.0x 16.2% 5.5% 33.4% 8.1% 20.5% 20.1%

DeNA Co., Ltd. $15.74 $15.59 $20.44 $2,288 $993 ($993) $1,295 1.0x 1.1x 1.0x 3.4x 5.3x 4.5x 1.8% (5.0%) 4.0% 30.6% 20.4% 23.0%

GungHo Online Entertainment, Inc. $2.87 $1.68 $3.71 $2,042 $681 ($678) $1,363 1.7x 1.9x 1.7x 4.3x 6.5x 6.1x (14.9%) (11.6%) 12.6% 38.5% 28.8% 27.5%

Glu Mobile Inc. $8.95 $3.02 $10.41 $1,282 $98 ($98) $1,184 4.1x 3.1x 2.6x NM 29.6x 20.8x 43.0% 32.5% 18.5% (24.0%) 10.5% 12.6%

Gree, Inc. $4.17 $3.50 $6.29 $985 $793 ($793) $192 0.3x 0.3x 0.3x 1.9x 2.4x 2.8x 26.0% (1.3%) 2.9% 14.9% 11.8% 9.9%

Changyou.com Limited $18.74 $12.68 $31.36 $962 $645 ($425) $538 0.9x 1.1x 1.2x 2.7x 4.1x 4.7x 10.4% (16.3%) (3.8%) 34.0% 26.8% 24.7%


Social Media & New Platform

Facebook, Inc. $166.38 $123.02 $218.62 $474,847 $41,114 ($40,614) $434,233 10.7x 7.9x 6.3x 18.7x 13.2x 11.9x 47.1% 36.1% 24.6% 57.1% 59.7% 53.2%

Spotify Technology S.A. $131.19 $103.29 $198.99 $23,764 $1,674 ($1,674) $22,090 4.5x 3.7x 2.9x NM NM NM 57.6% 22.8% 25.6% (8.0%) (2.1%) (2.2%)

Twitter, Inc. $30.80 $26.19 $47.79 $23,370 $6,209 ($3,489) $19,881 8.1x 6.6x 5.8x NM 17.3x 15.5x (3.4%) 22.8% 15.0% 14.1% 38.3% 37.2%

Snap Inc. $8.57 $4.82 $20.90 $11,321 $1,279 ($1,262) $10,059 12.2x 8.6x 6.5x NM NM NM 104.0% 41.6% 32.4% (410.3%) (52.9%) (21.7%)

LINE Corporation $36.90 $28.06 $47.56 $8,764 $2,487 ($1,192) $7,573 5.1x 3.9x 3.4x 39.5x NM NM 23.1% 30.2% 15.5% 12.9% 7.7% 6.0%

Yelp Inc. $36.25 $29.33 $52.50 $3,012 $756 ($756) $2,256 2.7x 2.4x 2.2x NM 12.6x 10.4x 18.8% 11.0% 10.5% 4.7% 19.1% 20.9%

Mean 7.2x 5.5x 4.5x 29.1x 14.3x 12.6x 41.2% 27.4% 20.6% (54.9%) 11.6% 15.6%Median 6.6x 5.3x 4.6x 29.1x 13.2x 11.9x 35.1% 26.5% 20.0% 8.8% 13.4% 13.4%

9






SaaS

salesforce.com, inc. $154.93 $102.37 $161.19 $118,521 $3,450 $941 $119,462 11.4x 9.0x 7.5x NM 37.3x 30.0x 24.9% 26.3% 20.7% 8.6% 24.2% 24.9%

Workday, Inc. $186.61 $107.75 $190.35 $41,054 $1,582 ($391) $40,663 19.0x 14.5x 11.5x NM NM NM 36.1% 31.1% 25.3% (7.8%) 16.3% 18.1%

ServiceNow, Inc. $226.96 $137.60 $229.50 $40,695 $1,498 ($836) $39,859 20.6x 15.3x 11.6x NM NM 42.8x 39.0% 35.1% 31.2% 0.8% 26.0% 27.2%

Shopify Inc. $171.80 $112.50 $176.88 $18,968 $1,979 ($1,979) $16,989 25.2x 16.1x 11.5x NM NM NM 72.9% 57.0% 39.4% (4.2%) 3.7% 6.4%

Dropbox, Inc. $24.79 $18.50 $43.50 $10,078 $1,039 ($873) $9,205 8.3x 6.6x 5.7x NM 28.1x 24.6x 31.0% 25.2% 15.7% 6.2% 23.6% 23.3%

Nutanix, Inc. $51.96 $29.94 $64.87 $9,308 $965 ($528) $8,780 8.6x 7.1x 5.5x NM NM NM 58.9% 21.3% 29.4% (23.5%) (5.2%) (0.9%)

Okta, Inc. $80.67 $27.71 $83.58 $8,909 $546 ($278) $8,631 33.2x 22.0x 16.7x NM NM NM 62.2% 50.7% 32.3% (42.8%) (10.2%) (4.7%)

DocuSign, Inc. $50.71 $35.06 $68.35 $8,380 $1,094 ($662) $7,718 14.9x 11.1x 9.0x NM NM NM 35.9% 33.9% 23.5% (3.8%) 5.8% 9.4%

Zendesk, Inc. $73.27 $37.81 $78.85 $7,843 $427 $31 $7,874 18.3x 13.3x 9.8x NM NM NM 38.0% 37.5% 35.6% (21.0%) 5.9% 7.1%

RingCentral, Inc. $96.96 $49.55 $98.15 $7,789 $566 ($200) $7,589 16.4x 11.4x 9.2x NM NM NM 30.2% 43.8% 23.4% (2.4%) 11.8% 12.0%

HubSpot, Inc. $160.39 $85.66 $166.07 $6,292 $592 ($273) $6,019 16.0x 11.9x 9.5x NM NM NM 38.6% 34.8% 25.7% (8.2%) 10.3% 11.8%

Coupa Software Incorporated $92.22 $37.32 $94.73 $5,482 $406 ($235) $5,247 28.1x 20.7x 16.7x NM NM NM 39.6% 35.7% 24.3% (21.6%) 7.2% 8.1%

RealPage, Inc. $57.40 $42.90 $66.25 $5,195 $280 $318 $5,513 8.2x 6.3x 5.5x NM 23.9x 19.3x 18.1% 30.1% 15.0% 14.1% 26.4% 28.5%

MongoDB, Inc. $95.87 $24.62 $98.25 $5,139 $522 ($308) $4,830 31.3x 19.7x 13.9x NM NM NM 52.4% 58.3% 42.0% (61.1%) (29.0%) (15.5%)

LogMeIn, Inc. $92.91 $74.87 $134.80 $4,753 $149 $51 $4,805 4.9x 4.0x 3.8x 18.3x 10.8x 10.2x 194.5% 21.6% 4.4% 26.6% 36.9% 37.4%

Alteryx, Inc. $67.68 $24.46 $74.24 $4,154 $328 ($157) $3,997 30.4x 19.8x 14.7x NM NM NM 53.4% 53.0% 35.1% (10.9%) 0.8% 1.2%

Cloudera, Inc. $13.55 $10.07 $22.43 $3,570 $390 ($390) $3,180 8.7x 4.0x 3.3x NM NM 15.4x 40.8% 117.4% 21.6% (102.9%) 4.5% 21.2%

Cornerstone OnDemand, Inc. $58.23 $36.26 $59.48 $3,413 $388 ($53) $3,360 7.0x 6.3x 5.9x NM 35.9x 26.6x 13.9% 9.9% 7.1% (7.5%) 17.7% 22.2%

Box, Inc. $22.79 $15.64 $29.79 $3,268 $200 ($102) $3,166 6.3x 5.2x 4.3x NM NM NM 27.0% 20.3% 20.5% (22.6%) 4.3% 7.3%

Zuora, Inc. $20.82 $15.56 $37.78 $2,259 $175 ($160) $2,099 12.5x 9.0x 7.1x NM NM NM 48.6% 39.4% 25.7% (24.9%) (17.0%) (13.1%)

AppFolio, Inc. $62.37 $38.25 $91.49 $2,136 $46 ($46) $2,091 14.5x 11.1x 8.8x NM 47.2x 32.8x 36.2% 30.5% 26.6% 9.1% 23.6% 26.8%

Everbridge, Inc. $62.02 $29.56 $64.79 $1,839 $106 ($11) $1,828 17.5x 12.5x 9.8x NM NM NM 35.8% 40.4% 26.7% (15.4%) (2.0%) 1.7%

Yext, Inc. $17.41 $10.64 $27.19 $1,756 $107 ($107) $1,649 9.7x 7.2x 5.5x NM NM NM 37.0% 33.8% 30.7% (36.1%) (15.1%) (10.3%)

LivePerson, Inc. $23.74 $10.80 $27.40 $1,505 $66 ($66) $1,439 6.6x 5.8x 5.1x NM NM NM (1.8%) 13.8% 14.0% 4.3% 7.6% 6.6%

Domo, Inc. $27.82 $13.28 $28.86 $733 $206 ($108) $625 5.8x 4.4x 3.7x NM NM NM 45.6% 29.8% 20.8% (157.5%) (86.6%) (60.2%)

ShotSpotter, Inc. $43.45 $9.33 $66.14 $470 $10 ($10) $460 19.4x 13.3x 10.0x NM NM 48.1x 53.2% 45.2% 33.9% (1.8%) 9.6% 20.7%

Brightcove Inc. $8.46 $6.60 $10.75 $309 $29 ($29) $280 1.8x 1.7x 1.6x NM NM 44.6x 3.8% 6.0% 6.0% (9.2%) 0.8% 3.6%

ChannelAdvisor Corporation $10.75 $8.45 $15.63 $294 $47 ($44) $250 2.0x 1.9x 1.8x NM 30.9x 23.7x 8.2% 7.0% 7.0% (5.8%) 6.2% 7.5%

Mean 14.5x 10.4x 8.2x 18.3x 30.6x 28.9x 41.9% 35.3% 23.7% (18.6%) 3.8% 8.2%Median 13.5x 10.1x 8.1x 18.3x 30.9x 26.6x 37.5% 33.8% 24.8% (8.0%) 6.0% 7.8%

10

Valuation Correlation to Growth and Cash Flow

Notes:Sources: Capital IQ and Wall Street Estimates. When analyzing the same data set, R value of 2019E Revenue Multiple and 2019E Revenue Growth % is 0.71.

CY 2019E Revenue Growth % + CY 2019E FCF Margin %

Ente

rpri

se V

alu

e /

CY

20

19

E R

eve

nu

e

PUBLIC SAAS COMPANIES

Company Identifier

APPF

BCOV

BOX

COUP

CRM

CSOD

ECOM

EVBG

HUBS

LPSN

NOW

NTNX

RNG

RP

SHOP

WDAY

ZEN

Selected Public SaaS Companies

WDAY

NOWSHOP

ZEN

CSOD

RP

HUBS

BOX

RNGAPPF

LPSN

BCOVECOM

COUP

CRM

EVGB

NTNX

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

22.0x

0% 10% 20% 30% 40% 50% 60%

R = 0.72

11

Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Value based on Wall Street Estimates.

RECENT ACQUISITIONSInternet / Digital Media / SaaS

($MM)

Announced Date Acquirer Target Enterprise Value EV / LTM Rev. EV / LTM EBITDA EV / NTM Rev. EV / NTM EBITDA

2/6/2019 $343 NA NA NA NA

2/4/2019 $10,713 9.4x NM 8.2x 34.4x

2/1/2019 $185 2.6x NA NA NA

1/30/2019 $163 0.5x 10.7x 0.4x 3.3x

1/23/2019 $221 8.7x NA NA NA

1/22/2019 $340 4.8x NA NA NA

1/2/2019 $157 10.4x NA NA NA

12/24/2018 $1,829 8.0x NM 6.5x NM

12/21/2018 $105 6.3x 8.8x NA NA

12/17/2018 $65 0.8x NA NA NA

12/10/2018 $95 NA NA NA NA

12/10/2018 $135 6.9x NM 3.3x NM

12/6/2018 $87 3.5x NA NA NA

(1)

(1)

(1)

(1)

(1)

(1)

(1)

(2)

12

RECENT ACQUISITIONSInternet / Digital Media / SaaS (Cont’d)

Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.

($MM)


12/3/2018 $6,222 3.2x 8.6x 3.1x 11.7x

12/3/2018 $150 3.7x 13.5x NA NA

11/27/2018 $133 NA NA NA NA

11/27/2018 $150 NA NA NA NA

11/20/2018 $875 NA NA NA NA

11/12/2018 $400 NA NA NA NA

11/11/2018 $8,000 NA NA NA NA

11/11/2018 $2,050 8.0x NM 6.9x NM

11/8/2018 $68 NA NA NA NA

11/5/2018 $188 4.3x NM 3.3x NM

11/5/2018 $84 1.0x NM 0.9x NM

11/5/2018 $950 NA NA NA NA

11/1/2018 $54 1.2x NA NA NA

(1)

(1)

(1)

(1)

(1)

(1)

13


Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Enterprise Value inclusive of total potential earnout.

($MM)


10/31/2018 $438 6.6x NM 5.4x 35.0x

10/31/2018 $310 NA NA NA NA

10/30/2018 $80 NA 19.0x NA NA

10/24/2018 $236 NA NA NA NA

10/22/2018 $111 3.0x 33.7x 2.9x 20.2x

10/17/2018 $150 NA NA NA NA

10/15/2018 $2,020 13.4x NM 11.5x NM

10/12/2018 $57 NA NA NA NA

10/11/2018 $163 NA NA NA NA

10/10/2018 $2,119 5.2x NM 5.0x 46.1x

10/9/2018 $200 28.6x NA NA NA

10/4/2018 $370 NA NA NA NA

10/3/2018 $2,025 6.5x NM 5.4x NM(1)

(1)

(2)

(1)

(1)

(1)

(1)

(1)

14


Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.

($MM)


9/25/2018 $150 NA NA NA NA

9/25/2018 $811 5.0x 35.9x 4.6x 21.4x

9/24/2018 $3,318 2.2x NM 2.0x NM

9/20/2018 $4,750 NA NA NA NA

9/13/2018 $55 NA NA NA NA

9/13/2018 $620 NA NA NA NA

9/12/2018 $6,700 NA NA NA NA

9/6/2018 $1,500 4.6x 11.4x NA NA

9/4/208 $295 NA NA NA NA

8/31/2018 $82 NA NA NA NA

8/29/2018 $210 NA NA NA NA

8/23/2018 $157 0.8x 5.8x 1.0x 5.1x

8/10/2018 $1,520 NA NA NA NA

(1)

(1)

(1)

(1)

15


Notes:Multiples <0x or >50x considered NM.Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Enterprise Value inclusive of total potential earnout.

($MM)


8/3/2018 $120 NA NA NA NA

8/2/2018 $2,350 NA NA NA NA

8/2/2018 $63 NA NA NA NA

8/1/2018 $600 NA NA NA NA

7/31/2018 $220 NA NA NA NA

7/28/2018 $135 10.2x 23.7x NA NA

7/25/2018 $390 NA NA NA NA

7/23/2018 $140 NA NA NA NA

7/18/2018 $133 2.1x 13.1x NA NA

7/16/2018 $800 NA NA NA NA

7/2/2018 $2,300 NA NA NA NA

7/2/2018 $110 4.0x NA NA NA

6/25/2018 $3,547 NA NA NA NA

(1) (2)

Marketing Solutions Division

B2C Component

(1)

(1)

16

IPO PIPELINEInternet / Digital Media / SaaS: IPOs in Public Registration

(1)

Notes:Sources: Capital IQ and SEC.gov.(1) LTM as of 12/31/18.

($MM)

Offering Amounts $10MM or Greater

Primary Initial Initial Offering LTM

Issuer Industry Filing Date Amount Description Revenue EBIT % Adj. EBITDA

Advertising 01/14/19 $17

PCI Media offers 3D animation, innovative visual

effects, and digital content such as short themed

branded films, ads, and site specific presentations,

providing attractive advertisements and visuals for

promotion and branding purposes.

NA NA NA

Interactive Media and

Services01/04/19 $25

Super League Gaming, Inc. operates an esports

community and content platform.

$1 NM NM

17

VENTURE CAPITAL INDUSTRYTMT: Transactions Since Q4 2003

(1)

Notes:(1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and Equipment,

Semiconductors, Software and Telecommunications until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

$14

$16

Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount

18

GCA OVERVIEWSelected Recent Internet, Digital Media & SaaS Transactions

Notes:(1) The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Corporation, and GCA Altium, have advised on.

Acquired by Financing Acquired by Acquired by Acquired by Acquisition of Financing Acquired by Acquired by

Series B Series C

We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Buyer Financial Advisor We Advised the Seller We Advised the Seller

Acquired by Acquired by Acquired by Acquired by Acquisition of Acquired by Financing Acquired by Acquired by

Series C

We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Buyer We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller

Strategic Investment Acquired By Acquired By Sale of Controlling Preferred Stock Acquired by Acquired by Acquired by Acquired by

from Interest to

We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

Divestiture of

Acquired by Preferred Stock Equity Investment Acquisition of Strategic Alternatives Preferred Stock Acquired by Acquired by

& Capital Allocation

to

We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor We Advised the Buyer Strategic Advisor Financial Advisor We Advised the Seller We Advised the Seller

Acquired by Acquired by Preferred Stock Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by

UndisclosedConsortium Led by

We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

DIGITAL MEDIA | INTERNET | SAAS SECTOR REPORT€¦ · 5 INDUSTRY STOCK MARKET VALUATION Internet /...

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