European Technology Update - Harris Williams...Aug 31, 2011 · Buddy Media, a social media...

European Technology Update

Member FINRA/SIPC

European Technology Update31 August 2011

Thierry MonjauzeThierry MonjauzeManaging Director63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Francois MorinDirector63 Brook Street

www.harriswilliams.comThis report has been prepared by Harris Williams & Co. Ltd and approved by Sturgeon Ventures LLP in accordance with Conduct Of Business rules COBS 4 of the FSA Handbook.

Harris Williams & Co. Ltd is an authorised representative of Sturgeon Ventures LLP which is Authorised and Regulated by the Financial Services Authority. This report is being made by Harris Williams & Co. Ltd. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris

Williams & Co. Ltd. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Recent Developments

HP agreed to acquire Autonomy, a UK-based global provider of infrastructure software, for $10.3 billionBain Capital acquired majority stake in MYOB, a provider of business management software, for $1.3 billionPermira acquired publicly traded education software company Renaissance Learning for $440 millionBankServ, an electronic payment processor, has been acquired by GTCR for an estimated $300 millionRealPage acquired Multifamily Technology Solutions, an apartment and home rentals site, for $75 million Attenda, leading provider of business critical managed hosting services to UK enterprises, was acquired by

p

Company Specific

News

Darwin Private Equity from MC Venture Partners and investors for £50 millionWireless Logic, UK-based machine-to-machine communication devices manufacturer, was acquired by ECI Partners for £38 million3i acquired a minority stake in TouchTunes Interactive Networks, one of the world’s largest digital interactive out-of-home entertainment providers, for $40 millionCisco acquired Comptel Communications, UK-based company providing service fulfilment software for communications service providers, for €21.3 millionM3 acquired UK-based Doctors.net, the online information site for doctors, for £13.4 million CVC Capital Partners acquired Dutch human resources software provider RaetHuntsman Gay Global Capital has merged iCongo, a Canadian e-commerce software provider, with Germany's Hybris, an e-commerce software & PCM solutions provider, under the Hybris brandSkype acquired GroupMe, a provider of mobile group messaging servicesVerizon Communications acquired CloudSwitch, an innovative provider of cloud software technologyBlogging service Tumblr is set to raise up to $100 million from Greylock Capital in a deal which is expected to value the company at $800 millionChina's largest luxury fashion online retailer, Xiu.com, raised $100 million from Warburg Pincus and KPCBBuddy Media, a social media management software for advertisers, raised $54 million from GGV Capital, Institutional Venture Partners and Bay PartnersRocket Lawyer, an online legal services provider, raised $18.5 million in a round led by August Capital, Google Ventures and Investor Growth CapitalSentilla Corp, a maker of software to monitor and automate data center work loads, raised $15 million from SingTel Innov8 VenturesGoodData, a provider of cloud based intelligence, raised $15 million in a round led by Andreessen HorowitzJive Software, a social-networking software company, filed for a $100 million IPOEloqua, provider of performance management software, filed for an IPO to raise up to $100 millionAngie’s List, a consumer-review website, filed for an IPO to raise $75 millionPandora, an online music service provider, saw its Q2 revenue jump to $67 million, a 117% y-o-y increaseDell slashed its full year outlook for revenue growth to 5%, compared to prior guidance of 9%, sending its share price down 7.6% in after-hours trading

83% of Google+ users are inactive just two months after launch, according to Bime Analytics97 million US smartphone and tablet users log into the internet at least once a month, according to eMarketerAlmost two-thirds of Americans will have either a tablet or smartphone by 2015, and 86% of those users will be viewing digital TV and videos on those devices, according a survey by In-Stat eMarketer forecast a 25% y-o-y growth in mobile internet usage compared to 2010

Industry Trends

eMarketer forecast a 25% y-o-y growth in mobile internet usage compared to 2010UK B2C e-commerce sales are expected to pass $100 billion this year, according to eMarketerUS social network ad revenues are expected to reach $3.1 billion this year, according to eMarketerGlobal tablet sales will hit 250 million units by 2017, according to new research by In-StatChina passed the US to become the world's biggest personal computer market in the second quarterSNL Kagan expects US mobile gaming revenues to top $7.81 billion in the next decadeMobile video viewing is up 41% from last year and double the rate of 2009, according to NielsenAccording to eMarketer, spending for online ads will rise 20.2% this year, to $31.3 billionUS online shopping dollars -excluding travel, digital downloads and event tickets - will exceed $188 billion this year according to eMarketerthis year, according to eMarketerForrester Research forecasts that US interactive marketing spending will reach $76.6 billion by 2016

Source: Industry news sources. 1

Public Market Trading Statistics

Stock Performance

Last 30 Days

g

(5%)

0%

5%

(30%)

(25%)

(20%)

(15%)

(10%)

25 Jul 31 Jul 06 Aug 12 Aug 18 Aug 24 Aug

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

(16.4% )(17.3% )(18.4% )(24.4% )(25.7% )

Last Twelve Months

10%

20%

30%

40%

50%

60%

23.8%17.0%10.8%

Comparable Trading

Sources: Capital IQ, 26 August 2011; Brokers’ reports.

CY2011EEBITDA Margin Growth CY2011E CY2012E CY2011E CY2012E CY2011E CY2012E

P / EEV / Revenue EV / EBITDA

(10%)

0%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

0.8%6.6%

(4.3% )

Summary Software and IT ServicesEnterprise Applications 19.1% 3.4% 1.4x 1.3x 7.3x 6.2x 16.9x 12.2xEuropean Large Cap Software 32.0% 6.0% 3.6x 3.3x 10.8x 9.3x 17.0x 14.5xFinancial Software 23.4% 3.3% 2.0x 1.8x 8.3x 7.3x 15.4x 13.2xHealthcare Software 20.6% 14.7% 2.0x 1.8x 8.6x 7.4x 20.5x 15.7xLarge Cap IT Services 13.0% 14.8% 0.8x 0.7x 5.7x 5.0x 11.5x 9.9xMid Cap IT Services 11.0% 3.2% 0.6x 0.6x 5.6x 5.2x 9.0x 7.9xOffshore IT Services 23.6% 25.3% 2.9x 2.4x 11.9x 9.9x 17.4x 14.7xSecurity Software 36.8% 9.9% 3.4x 3.1x 8.7x 7.6x 16.2x 14.4x

CommunicationsCommunicationsDigital Broadband 11.3% 2.9% 0.5x 0.5x 4.8x 3.9x 13.4x 8.7xDiversified Communication Equipment 13.2% 10.6% 1.0x 0.9x 8.3x 5.8x 14.6x 11.6xMobile Content / Solutions Providers 16.8% 36.2% 1.4x 1.1x 7.5x 4.9x 16.1x 14.7xMobile Infrastructure Software 14.2% 6.4% 1.8x 1.6x 11.9x 7.4x 23.3x 17.4x

Internet and Digital MediaChinese Internet Leaders 34.6% 42.3% 7.6x 5.6x 13.7x 10.3x 21.5x 16.4xOnline Classifieds 43.2% 26.1% 5.8x 5.0x 12.6x 10.6x 19.5x 19.2xContent Providers / Communities 19.0% 39.2% 4.9x 3.4x 10.6x 8.0x 28.6x 20.5xEcommerce 19.1% 33.2% 3.6x 2.8x 17.9x 13.1x 32.4x 28.4xGlobal Internet Leaders 36 5% 35 6% 6 6 4 8 17 8 13 0 19 4 18 1

2

Global Internet Leaders 36.5% 35.6% 6.6x 4.8x 17.8x 13.0x 19.4x 18.1xInteractive Entertainment 18.0% 30.3% 1.0x 0.9x 6.2x 8.3x 18.7x 18.4xIntermediation and Comparison 25.4% 12.1% 2.0x 1.8x 8.2x 7.2x 20.3x 19.3xOnline Gambling 27.7% 48.8% 1.6x 1.4x 5.1x 4.3x 10.6x 8.5xOnline Marketing 15.2% 18.9% 1.1x 1.0x 7.5x 6.2x 15.7x 14.4xOnline Travel 29.7% 20.4% 3.8x 3.1x 11.9x 9.3x 23.0x 15.7x

Software and IT Services

5%

Last 30 Days Performance

(20%)

(15%)

(10%)

(5%)

0%

(35%)

(30%)

(25%)


European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

European Large Cap Software (10.6% )Healthcare Software (11.1% )Security Software (15.4% )Large Cap IT Services (20.3% )Financial Software (22.2% )Mid Cap IT Services (22.8% )Enterprise Applications (24.2% )Offshore IT Services (29.4% )

p ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Last Twelve Months Performance

50%

Security Software 19.2%Healthcare Software 16.5%European Large Cap Software 13.7%Financial Software 13.2%Enterprise Applications 9.1%

20%

30%

40%

te p se pp cat o s 9. %Large Cap IT Services 5.0%Mid Cap IT Services 4.9%Offshore IT Services (6.6% )

(10%)

0%

10%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

Source: Capital IQ, 26 August 2011.3

Security Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Software and IT Services(Continued)(Continued)

Market Enterprise CY2011ECap ($m) Value ($m) EBITDA Margin Growth CY2011E CY2012E CY2011E CY2012E CY2011E CY2012E

European Large Cap SoftwareSAP 63,416 63,301 34.6% 14.3% 3.1x 2.8x 9.0x 8.1x 13.9x 12.2xAutonomy 10,001 10,047 46.9% 19.7% 9.7x 8.3x 20.6x 16.6x 33.4x 27.0xDassault Systemes 9,414 8,002 31.2% 12.1% 3.2x 2.9x 10.2x 9.4x 19.0x 17.0x

EV / Revenue EV / EBITDA P / E

(1)

y , ,Sage 5,254 5,374 26.9% 3.7% 2.2x 2.1x 8.1x 7.6x 12.2x 11.2xSoftware AG 3,750 3,981 28.9% 4.0% 2.4x 2.3x 8.2x 7.5x 12.3x 11.0xAveva 1,661 1,410 32.2% 16.9% 4.5x 4.1x 14.1x 11.9x 23.7x 20.0xMisys 1,426 1,580 24.6% (28.9%) 2.4x 2.1x 9.6x 7.9x 16.6x 11.6xTemenos 1,339 1,540 25.1% 14.6% 2.9x 2.7x 11.7x 8.7x 12.6x 11.6xMicro Focus 948 963 37.6% (2.1%) 2.3x 2.2x 6.0x 6.0x 9.0x 8.6x

Mean 32.0% 6.0% 3.6x 3.3x 10.8x 9.3x 17.0x 14.5xMedian 31.2% 12.1% 2.9x 2.7x 9.6x 8.1x 13.9x 11.6x

Financial SoftwareIntuit 14,154 13,732 37.0% 13.1% 3.4x 3.1x 9.2x 8.6x 17.5x 15.6xMisys 1,426 1,580 24.6% (28.9%) 2.4x 2.1x 9.6x 7.9x 16.6x 11.6xy , , ( )Temenos 1,339 1,540 25.1% 14.6% 2.9x 2.7x 11.7x 8.7x 12.6x 11.6xFidessa 907 818 20.4% 6.8% 1.8x 1.6x 8.6x 8.0x 19.6x 17.8xSimCorp 759 685 24.0% 7.5% 2.4x 2.1x 9.9x 8.3x 15.1x 12.2xInnovation 301 257 12.5% 8.3% 0.9x 0.8x 7.0x 6.3x 18.8x 16.7xMicrogen 206 164 26.1% 15.2% 2.6x 2.4x 10.1x 9.6x 19.0x 17.7xORC 204 167 24.2% (2.9%) 1.1x 1.0x 4.6x 3.8x 12.5x 8.8xLinedata 154 151 20.8% (1.9%) 0.7x 0.7x 3.6x 3.3x 8.5x 7.5xStatPro 85 94 19.4% 0.7% 1.7x 1.6x 8.8x 8.0x 14.3x 12.6x


Enterprise Applicationsp ppSDL 826 738 18.9% 12.5% 2.0x 1.8x 10.5x 9.5x 17.3x 15.6xUnit 4 728 931 20.4% 9.2% 1.4x 1.3x 6.8x 6.2x 16.9x 13.5xExact 629 565 24.0% (3.1%) 1.8x 1.7x 7.3x 6.9x 12.7x 11.8xKofax 479 406 19.8% (15.8%) 1.6x 1.5x 8.0x 7.4x 15.7x 13.6xF-Secure 454 420 19.2% 10.7% 2.0x 1.8x 10.5x 8.3x 18.0x 13.7xIFS 421 372 16.1% 0.5% 0.9x 0.8x 5.5x 4.8x 13.3x 11.0xCegid 203 308 24.5% 3.9% 0.8x 0.8x 3.3x 3.2x 7.0x 6.5xKewill 127 99 18.2% 5.9% 1.0x 0.9x 5.3x 4.9x 11.1x 10.0xAlterian 74 62 11.1% 7.1% 1.0x 0.9x 8.7x 4.5x 39.8x 14.3x


Healthcare SoftwareMcKesson 18,850 19,723 2.4% 7.7% 0.2x 0.2x 7.1x 5.9x 13.7x 11.6xCerner 10,992 10,425 31.9% 14.2% 4.9x 4.3x 15.5x 13.0x 35.5x 29.5xAllscripts Healthcare Solutions 3,256 3,564 26.9% 14.7% 2.5x 2.2x 9.2x 8.1x 19.4x 16.2xCompuGroup 608 960 19.2% 24.9% 1.7x 1.4x 8.6x 6.7x 14.6x 10.1xCegedim 556 1,240 17.7% 2.0% 0.9x 0.9x 5.1x 4.7x 6.9x 5.7xAdvanced Computer Software 210 260 25.3% 24.8% 1.6x 1.5x 6.4x 6.0x 32.8x 21.3x


4Sources: Capital IQ, 26 August 2011; Brokers’ reports.(1) Autonomy share price affected by takeover announcement on 18 August 2011

Software and IT Services(Continued)(Continued)


Security SoftwareSymantec 12,281 12,063 34.1% 11.5% 1.8x 1.7x 5.3x 4.7x 10.4x 9.3xCheck Point 10,981 9,831 59.7% 14.6% 7.9x 7.1x 13.2x 12.0x 18.8x 16.9xTrend Micro 4 040 2 549 34 0% 3 1% 2 0x 1 9x 5 9x 5 3x 17 9x 17 5x


Trend Micro 4,040 2,549 34.0% 3.1% 2.0x 1.9x 5.9x 5.3x 17.9x 17.5xF-Secure 454 420 19.2% 10.7% 2.0x 1.8x 10.5x 8.3x 18.0x 13.7x


Large Cap IT ServicesAccenture 33,252 28,458 15.7% 18.8% 1.1x 1.0x 6.9x 6.4x 14.8x 13.3xCapita Group 6,854 8,868 17.1% 7.5% 1.8x 1.7x 10.6x 9.8x 14.3x 12.9xCap Gemini 6,004 5,726 9.2% 12.1% 0.4x 0.4x 4.4x 3.9x 10.8x 9.1xComputer Sciences 4,470 5,710 12.7% (0.0%) 0.4x 0.3x 2.8x 2.4x 7.2x 6.1xAtos Origin 3,309 3,444 10.0% 35.8% 0.3x 0.3x 3.5x 2.7x 10.3x 8.0x


Mid Cap IT ServicesCGI 5,086 6,024 18.9% 9.8% 1.4x 1.3x 7.2x 6.9x 12.1x 11.0xIndra Sistemas 2,822 3,349 12.1% 2.5% 0.9x 0.8x 7.2x 6.8x 9.9x 9.4xLogica 2,148 2,854 8.5% 6.5% 0.4x 0.4x 5.2x 4.7x 6.7x 5.9xTieto 1,050 1,260 10.4% 6.8% 0.5x 0.5x 4.6x 4.2x 11.6x 8.6xSopra 806 891 10.7% (6.9%) 0.6x 0.5x 5.4x 5.0x 8.5x 8.0xGroupe Steria 613 907 9.0% (1.2%) 0.4x 0.3x 4.2x 3.8x 6.5x 5.7xGFI Informatique 252 400 7.7% 4.7% 0.4x 0.4x 5.2x 4.8x 7.7x 6.9x


Offshore IT ServicesTata 43,194 41,988 29.2% 27.8% 4.4x 3.6x 14.9x 12.4x 19.5x 17.0xInfosys 28,445 24,751 30.8% 20.6% 3.7x 3.1x 12.0x 10.5x 17.6x 14.4xCognizant 18,474 16,205 20.6% 32.8% 2.7x 2.2x 13.0x 10.6x 21.8x 18.1xWipro 17,417 16,177 20.3% 15.8% 2.2x 1.9x 10.6x 9.1x 14.6x 12.2xHCL 5,833 5,899 17.2% 29.7% 1.5x 1.2x 8.9x 6.9x 13.8x 11.6x


5Sources: Capital IQ, 26 August 2011; Brokers’ reports.

Communications


5%

Digital Broadband (21.9% )Mobile Content / Solutions Providers (29.8% )Mobile Infrastructure Software (30.0% )Diversified Communication Equipment (35.1% )

(20%)

(15%)

(10%)

(5%)

0%

(40%)

(35%)

(30%)

(25%)


Digital Broadband Diversified Communication Equipment

70%


Mobile Content / Solutions Providers 9.5%Mobile Infrastructure Software (3.6% )Di ifi d C i i E i (3 6% )


Mobile Infrastructure Software Mobile Content / Solutions Providers

10%

20%

30%

40%

50%

60% Diversified Communication Equipment (3.6% )Digital Broadband (24.8% )

(30%)

(20%)

(10%)

0%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011


Mobile Infrastructure Software Mobile Content / Solutions Providers

6Source: Capital IQ, 26 August 2011.

Communications(C ti d)(Continued)


Digital BroadbandLogitech 1,926 1,429 6.7% 4.4% 0.6x 0.5x 8.9x 5.5x 26.0x 16.0xTomTom 953 1,477 16.6% (15.6%) 0.8x 0.8x 4.8x 5.0x 7.7x 7.4xTechnicolor 722 2 119 13 7% 5 4% 0 4x 0 4x 3 0x 2 7x NA NA


Technicolor 722 2,119 13.7% 5.4% 0.4x 0.4x 3.0x 2.7x NA NAKudelski 489 776 11.2% (17.9%) 0.7x 0.7x 6.2x 5.2x 16.7x 9.7xPace 482 963 8.6% 22.2% 0.4x 0.4x 4.3x 3.7x 5.0x 3.6xParrot 373 231 15.3% 7.6% 0.6x 0.6x 4.0x 3.5x 11.6x 10.3xAdvanced Digital Broadcast 75 71 7.3% 14.1% 0.2x 0.2x 2.3x 1.7x NM 5.1x


Diversified Communication EquipmentLM Ericsson Telephone 34,472 27,113 15.3% 13.1% 0.8x 0.7x 4.9x 4.4x 12.9x 10.9xNokia 21,921 18,122 5.3% (8.6%) 0.3x 0.3x 6.2x 4.8x 21.6x 16.1xAlcatel-Lucent 7,789 9,283 9.1% 4.6% 0.4x 0.4x 4.2x 3.7x 10.8x 8.1xADTRAN 1 846 1 730 30 3% 21 5% 2 4x 2 2x 7 9x 7 2x 13 0x 12 0xADTRAN 1,846 1,730 30.3% 21.5% 2.4x 2.2x 7.9x 7.2x 13.0x 12.0xCIENA 1,031 1,967 5.9% 22.3% 1.1x 0.9x 18.3x 8.7x NM 11.1x


Mobile Infrastructure SoftwareQUALCOMM 82,072 72,651 44.4% 36.8% 4.6x 4.0x 10.4x 9.4x 15.2x 13.4xVeriSign 5,062 4,252 53.2% 4.0% 5.5x 4.9x 10.4x 9.1x 20.8x 16.8xAmdocs 4,845 3,711 20.6% 6.2% 1.2x 1.1x 5.6x 5.6x 11.7x 10.6xComverse Technology 1,318 1,414 16.6% 7.7% 0.9x 0.8x 5.3x 4.9x 8.5x 7.6xSynchronoss Technologies 1,048 891 27.0% 36.1% 3.9x 3.3x 14.5x 11.4x 32.3x 26.0xSonus Networks 668 350 3.7% 12.8% 1.3x 1.2x 35.9x 13.2x NM 28.6xTekelec 469 206 12 5% (6 9%) 0 5x 0 5x 4 2x 3 5x 24 2x 16 4xTekelec 469 206 12.5% (6.9%) 0.5x 0.5x 4.2x 3.5x 24.2x 16.4xTeleCommunication Systems 217 305 13.9% 8.8% 0.7x 0.6x 5.1x 4.2x 27.1x 17.3xOpenwave Systems 117 36 (10.3%) (13.8%) 0.2x 0.3x NM 4.1x NM 23.4xRedknee Solutions 81 77 7.6% 24.0% 1.2x 1.1x 15.7x 8.3x 46.3x 14.4xSmith Micro Software 64 2 (32.8%) (45.3%) 0.0x 0.0x NM NM NM NM


Mobile Content / Solutions ProvidersOpera Software 609 525 25.0% 28.9% 3.2x 2.5x 12.8x 8.4x 23.7x 14.9xGameLoft 423 386 21.6% 14.6% 1.6x 1.5x 7.6x 6.4x 18.7x 15.7xBuongiorno 156 218 11.5% 27.2% 0.5x 0.4x 4.1x 3.3x 13.1x 8.2xDanal 124 101 17 7% 23 0% 0 9x 0 7x 5 0x 3 8x 15 0x 11 0xDanal 124 101 17.7% 23.0% 0.9x 0.7x 5.0x 3.8x 15.0x 11.0xDada 55 91 11.3% (34.8%) 0.6x 0.6x 5.4x 4.5x NM 35.4xSynchronica 39 40 13.9% 158.4% 1.4x 1.0x 10.2x 3.3x 9.9x 3.3x



Internet and Digital Media


g

10%

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

(50%)

(45%)

(40%)

(35%)

(30%)

22 Jul 28 Jul 03 Aug 09 Aug 15 Aug 21 AugGlobal Internet Leaders EcommerceOnline Travel Online Marketing

Intermediation and Comparison (10.9% )Global Internet Leaders (12.8% )Online Gambling (13.1% )Chinese Internet Leaders (19.3% )Content Providers / Communities (19.9% )Interactive Entertainment (21.2% )Online Marketing (23.4% )Online Classifieds (27.4% )Online Travel (32.3% )Ecommerce (39.5% )

110%


Content Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Intermediation and Comparison 38.4%Online Classifieds 36.7%Chinese Internet Leaders 35.7%Ecommerce 31.1%

30%

50%

70%

90%

0% Ecommerce 31.1%Global Internet Leaders 28.8%Online Travel 27.1%Online Marketing 25.9%Content Providers / Communities 8.1%Interactive Entertainment (3.9% )Online Gambling (31.5% )

(50%)

(30%)

(10%)

10%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011Global Internet Leaders EcommerceO li T l O li M k tiOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

8Source: Capital IQ, 26 August 2011.

Internet and Digital Media(Continued)(Continued)


Global Internet LeadersApple 355,614 327,219 32.8% 58.3% 2.8x 2.3x 8.5x 7.4x 12.9x 11.5xMicrosoft 211,551 173,318 42.6% 9.5% 2.4x 2.2x 5.6x 5.1x 8.9x 8.2xGoogle 170,117 137,136 41.7% 30.1% 3.6x 3.0x 8.7x 7.2x 14.9x 12.6xAmazon 90,456 84,101 5.2% 43.1% 1.7x 1.3x 33.0x 23.7x NM NM


o 90, 56 8 , 0 5. % 3. % .7 .3 33.0 3.7 N NBaidu 48,747 47,200 58.0% 84.3% 21.9x 14.2x 37.8x 24.7x 48.6x 32.2xeBay 37,967 36,116 32.7% 26.3% 3.1x 2.7x 9.6x 8.1x 14.9x 12.8xYahoo! 16,086 13,612 32.1% (2.5%) 3.1x 2.9x 9.5x 8.1x 16.3x 14.8xYandex 9,835 9,166 46.8% 35.9% 13.8x 9.6x 29.5x 19.8x NM 34.5x


EcommerceAmazon 90,456 84,101 5.2% 43.1% 1.7x 1.3x 33.0x 23.7x NM NMeBay 37,967 36,116 32.7% 26.3% 3.1x 2.7x 9.6x 8.1x 14.9x 12.8xNetflix 11,657 11,516 15.9% 51.9% 3.5x 2.5x 22.0x 16.3x 47.0x 32.4xMail ru 6 050 5 911 46 4% 58 1% 12 4x 9 5x 26 6x 19 1x 37 1x 26 0xMail.ru 6,050 5,911 46.4% 58.1% 12.4x 9.5x 26.6x 19.1x 37.1x 26.0xIAC 3,229 2,470 18.1% 19.0% 1.3x 1.1x 7.0x 5.8x 18.9x 15.8xMercadolibre 2,865 2,749 35.3% 37.3% 9.4x 7.2x 26.5x 19.6x 41.7x 29.9xAsos 2,261 2,254 9.8% 52.6% 2.9x 2.1x 29.9x 21.1x NM 36.6xShutterfly 1,688 1,612 19.5% 63.3% 3.3x 2.6x 17.1x 11.7x NM 34.2xOpenTable 1,466 1,397 39.5% 45.7% 9.7x 7.5x 24.7x 17.5x 49.8x 36.0xVistaprint 1,128 891 16.1% 24.6% 1.0x 0.8x 6.1x 5.6x 14.6x 12.4xOcado 987 987 5.8% 21.2% 1.0x 0.8x 16.5x 10.8x NM 39.7xDigital River 761 406 21.1% 8.5% 1.0x 0.9x 4.9x 3.9x 17.4x 13.8xYOOX 731 725 9.9% 33.5% 1.8x 1.4x 17.8x 12.9x 45.4x 33.3xBlue Nile 520 447 9.0% 8.6% 1.2x 1.2x 13.9x 12.6x 37.4x 32.7xOverstock 236 197 1.3% 5.2% 0.2x 0.2x 13.2x 7.1x NM 42.2x


Online TravelPriceline 25,058 23,751 33.5% 39.9% 5.5x 4.4x 16.4x 12.4x 22.3x 16.9xExpedia 7,687 7,176 26.1% 18.0% 1.8x 1.6x 7.0x 6.3x 14.5x 12.8xCtrip 5,527 4,939 39.9% 28.7% 9.0x 7.1x 22.5x 17.6x 26.6x 21.3xWotif 908 767 56.4% 3.5% 5.0x 4.6x 8.9x 8.1x 15.9x 14.3xTravelzoo 551 510 26.9% 37.4% 3.3x 2.6x 12.2x 8.5x 23.1x 16.4xOrbitz 232 559 16.0% 1.3% 0.7x 0.7x 4.6x 4.2x 33.4x 16.9xhotel.de 76 64 8.9% 13.8% 1.0x 0.9x 11.7x 7.9x 25.2x 11.4x


Online MarketingValueClick 1,171 1,028 29.7% 26.4% 1.9x 1.6x 6.4x 5.4x 16.0x 13.5xConstant Contact 538 418 16.3% 23.3% 1.9x 1.6x 12.0x 8.7x 28.4x 20.0xInfoSpace 354 90 14.1% (5.3%) 0.4x 0.4x 2.8x 2.9x 17.8x 21.5xMarchex 342 313 15.7% 53.5% 2.1x 1.8x 13.4x 10.9x NM NMLBI 271 273 17.6% 19.6% 0.9x 0.9x 5.4x 5.3x 7.3x 7.7xHi-Media 199 250 9.5% 10.6% 0.7x 0.6x 7.3x 6.2x 12.4x 9.6xTradeDoubler 179 145 5.0% 3.3% 0.3x 0.3x 6.3x 5.4x 11.6x 9.7x1000mercis 163 133 39.7% 26.7% 2.2x 1.9x 5.6x 4.9x 10.4x 9.0xSedo 124 93 6.3% 12.7% 0.5x 0.5x 7.9x 6.8x 21.5x 15.7xd di 42 28 (2 3%) 18 2% 0 3 0 3 6 22ad pepper media 42 28 (2.3%) 18.2% 0.3x 0.3x NM 5.6x NM 22.5x


Content Providers / CommunitiesLinkedIn 7,183 6,811 13.4% 111.4% 13.3x 9.0x NM 48.8x NM NMPandora Media 2,160 2,065 2.0% 149.5% 15.0x 7.9x NM NM NM NMWebMD Health 1,917 1,568 34.2% 10.4% 2.7x 2.4x 7.8x 6.7x 24.6x 22.6xMixi 647 515 25.7% (3.2%) 2.5x 2.0x 9.8x 8.3x 42.1x 23.0xPerform Group 625 600 17.5% 52.1% 3.6x 2.8x 20.4x 11.4x 37.7x 18.0xMeetic 497 447 21.3% 0.9% 1.6x 1.6x 7.7x 7.2x 13.3x 12.1xXING 366 272 31.4% 23.7% 2.8x 2.4x 9.0x 7.4x 30.6x 19.3x


XO Group 264 169 12.2% 10.5% 1.4x 1.2x 11.2x 8.0x NM 33.3xMove 245 204 12.9% (2.5%) 1.1x 1.0x 8.2x 7.0x 23.2x 15.4x


Internet and Digital Media(Continued)(Continued)


Intermediation and ComparisonMoneysupermarket 904 852 27.2% 20.3% 2.9x 2.7x 10.7x 9.6x 18.4x 16.1xLiquidity Services 638 534 15.2% 17.8% 1.6x 1.4x 10.2x 8.6x 19.7x 21.4xeHealth 270 134 15.9% (3.7%) 0.9x 0.9x 5.7x 5.5x 32.8x 31.2xGruppo MutuiOnline 232 216 43.0% 13.9% 2.6x 2.3x 6.1x 5.1x 10.3x 8.5x



Online ClassifiedsRightmove 2,091 2,062 68.7% 15.3% 13.0x 11.4x 19.0x 16.3x 26.6x 22.4xSEEK 1,929 2,247 42.9% 22.3% 5.5x 4.8x 12.9x 10.8x 15.6x 12.9x51job 1,552 1,270 40.9% 25.8% 6.1x 5.0x 15.0x 13.1x 25.7x 20.3xSouFun 1,283 1,115 45.9% 59.8% 3.4x 2.8x 7.4x 6.1x 12.2x 9.5xCarsales.au 1,239 1,204 55.0% 19.6% 6.9x 6.2x 12.6x 11.1x 19.0x 16.6xMonster 927 850 18.3% 14.4% 0.8x 0.7x 4.3x 3.2x 17.7x 10.0xLoopNet 708 600 31.8% 10.6% 7.0x 6.1x 22.0x 17.7x NM 47.4xDice 651 601 41.7% 40.7% 3.3x 2.8x 8.0x 6.5x 19.7x 14.5x


Chinese Internet LeadersBaidu 48,747 47,200 58.0% 84.3% 21.9x 14.2x 37.8x 24.7x 48.6x 32.2xTencent 41,991 40,018 49.6% 42.3% 9.2x 7.0x 18.6x 14.1x 24.6x 19.2xSina 6,450 5,628 12.6% 19.8% 11.8x 9.4x NM NM NM NMNetease 6,093 4,350 49.6% 34.9% 4.0x 3.4x 8.1x 6.9x 12.8x 11.5xAlibaba 5,212 3,792 33.5% 19.9% 3.7x 3.1x 10.9x 9.3x 17.2x 14.5xFocus Media 4,186 3,595 38.7% 30.8% 5.0x 4.2x 13.0x 10.6x 20.1x 16.3xSohu 2,881 2,341 38.0% 37.6% 2.8x 2.3x 7.4x 5.6x 15.4x 12.5xRenren 2,815 1,586 2.6% 59.9% 13.0x 8.1x NM NM NM NM, ,Shanda Interactive 1,874 1,178 17.4% 33.6% 1.1x 0.9x 6.1x 4.7x 20.9x 15.5xSouFun 1,283 1,115 45.9% 59.8% 3.4x 2.8x 7.4x 6.1x 12.2x 9.5x


Online Gamblingbwin.party digital entertainment 1,426 1,209 22.0% 130.3% 1.1x 1.0x 4.8x 4.0x 8.5x 7.0xPlaytech 1,206 1,110 56.9% 35.2% 3.9x 3.1x 6.8x 6.1x 8.9x 7.9xBetfair 1,022 774 20.0% 16.8% 1.2x 1.1x 5.9x 4.8x 17.6x 12.3x888 163 99 11.9% 13.1% 0.3x 0.3x 2.8x 2.6x 7.5x 6.7x

Mean 27.7% 48.8% 1.6x 1.4x 5.1x 4.3x 10.6x 8.5xM di 21 0% 26 0% 1 1 1 0 5 4 4 4 8 7 7 5Median 21.0% 26.0% 1.1x 1.0x 5.4x 4.4x 8.7x 7.5x

Interactive EntertainmentActivision 12,891 9,947 35.1% (10.7%) 2.4x 2.2x 6.9x 6.1x 14.3x 12.0xElectronic Arts 7,187 5,339 12.6% 10.2% 1.3x 1.3x 10.4x 7.8x 28.3x 19.5xTake-Two Interactive Software 1,048 908 9.6% (4.6%) 0.8x 0.9x 8.5x 14.1x 15.0x NMUbisoft Entertainment 657 471 27.0% 23.4% 0.3x 0.3x 1.1x 0.7x 17.0x 10.1xTHQ 127 108 3.0% 9.5% 0.1x 0.1x 3.9x 12.6x NM 31.8x



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