May monthly current

50
Software Equity Group Flash Report Software Equity Group Flash Report Select M&A Transactions and Valuations and Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet Companies by Product Category

description

Software Equity Group's May 2014 Flash Report : Our complimentary May 2014 Flash Report assesses the financial and market performance of more than 250 publicly traded Software, SaaS, and Internet companies, sorted by product category. The Report also highlights a selection of the most recent software M&A transactions

Transcript of May monthly current

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Software Equity Group Flash Report

Software Equity Group Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

Page 2: May monthly   current

• Industry leading boutique investment bank founded in

LEADERS IN SOFTWARE M&AIndustry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking:

• Strategic exit• Growth capital

We Do Deals.

Growth capital• Buyout • Inorganic growth via acquisition• Buy and sell-side mentoring• Fairness opinions and valuationsFairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies• Clients span virtually every software technology, product

category, delivery model and vertical market• Global presence providing advice and guidance to more

th 2 000 i t d bli i th h t USthan 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction, operating, legal and engineering experience

• Unparalleled software industry reputation and track record.

• Highly referenceable base of past clients

Copyright © 2014 by Software Equity Group, LLC

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EXTENSIVE GLOBAL REACH

Current Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France,

Recent Sell-side Representation

Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

SEG Research Distribution

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are q y p y pdistributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.

Copyright © 2014 by Software Equity Group, LLC

p ,

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Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and

ABOUT SOFTWARE EQUITY GROUPq y p y g gy , g

advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling We are skilled and accomplished investment bankers with extraordinary software internet and technologyOur value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

P h t i t t th l ti hi ' b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. g

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, [email protected] , 2800-509) 858Beible, Director, Business Development (Kris please contact

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www softwareequity comwww.softwareequity.comp: (858) 509-2800

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.

Copyright © 2014 by Software Equity Group, LLC

This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

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List of Commonly Used Acronyms

CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

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Additions:

SEG Index ChangesCategory

GrubHub Inc. GRUB Internet ServicesOPOWER, Inc. Vertically FocusedSaaSOPWR

Ad tech & Lead Generation

Company Ticker Index

InternetRUBIThe Rubicon Project, Inc.

Changes: Current Category

eHealth, Inc. Internet - Lead Gen Internet - ServicesEHTH

Index CategoryUnit 4

Acquired by Advent Intl. Corp. ($1.67 bn) - SaaS ERP & Supply Chain

Company

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Ticker

Company Ticker Previous Category

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Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

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SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

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Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-30-2014 Ansys, Inc. (NasdaqGS:ANSS) SpaceClaim Corporation, Inc. - $85.0 - -Apr-30-2014 WorldPay Limited Thisf Informatica Ltda. - - - -Apr-30-2014 Fixed Income Solutions, LLC Courtland Capital Inc. (TSXV:CTD.H) - - - -Apr-30-2014 VerticalScope Inc. PbNation, LLC - $1.4 - -Apr-30-2014 Accenture plc (NYSE:ACN) I4C Analytics Srl - - - -Apr-30-2014 NHN Entertainment Corp. (KOSE:A181710) PNP Secure Co.,Ltd. - $58.1 - -Apr-30-2014 Bynder B.V. LumaCloud LLC - - - -Apr-30-2014 Kiewit Technology Inc. et alia, LLC, SAP Software Development, - - - -Apr-30-2014 Glu Mobile, Inc. (NasdaqGS:GLUU) PlayFirst, Inc. - $13.5 - -Apr-30-2014 WideOrbit, Inc. Fivia SA - - - -Apr-30-2014 EPAM Systems, Inc. (NYSE:EPAM) Jointech Software (Shenzhen) Co., Ltd. - - - -Apr-30-2014 DataBank Holdings Ltd. Arsalon Technologies, LLC - - - -Apr-30-2014 Flexcomm Limited PT SCAN Nusantara - $0.1 - -Apr-30-2014 Opera Mediaworks Inc. apprupt GmbH - - - -Apr-30-2014 Loton Corp. Loton, Corp. - - - -Apr-30-2014 Private Investor(s) Netex New Media Israel Ltd., Netex.co.il and Kafe.co.il - $1.7 - -Apr-29-2014 PROACTIS Holdings PLC (AIM:PHD) Intesource, Inc. $5.0 $3.9 0.8x -Apr-29-2014 NetNames Limited Web IP Pty Ltd - - - -Apr-29-2014 Zettics, Inc. Velocent Systems Inc. - - - -Apr-29-2014 Advanced Solutions International, Inc. Unxvision eSolutions Inc. - - - -Apr-29-2014 Radius Networks, inc. 4DK Technologies, Inc. - - - -Apr-29-2014 Zinio, LLC Audience Media S.L. - - - -Apr-29-2014 Digital Management, Inc. The Pappas Group, LLC - - - -Apr-29-2014 Numerex Corp. (NasdaqGS:NMRX) Omnilink Systems, Inc. $13.0 $37.5 2.9x -Apr-29-2014 Lanyon, Inc. Passkey International UK Limited - - - -Apr-29-2014 Dun & Bradstreet Corp. (NYSE:DNB) Indicee, Inc. - - - -Apr-29-2014 Private Investor(s) XYPRO Technology Corporation - - - -Apr-29-2014 Modria, Inc. Juripax B.V. - - - -Apr-29-2014 Advantage Sales & Marketing LLC StoreBoard Media, LLC - - - -Apr-29-2014 Radioio, Inc. (OTCPK:RAIO) CrowdStream Inc. - - - -Apr-28-2014 Communisis plc (LSE:CMS) Public Creative Limited $1.0 $0.6 0.6x 7.0xApr-28-2014 reach | influence Penfield Consulting, LLC - - - -Apr-28-2014 Hatchbrands Ventures Inc. Ooploo Inc. - - - -Apr-28-2014 Truven Health Analytics Inc. Fortel Analytics LLC - - - -Apr-28-2014 Accolade, Inc. DocVue, Inc. - - - -Apr-28-2014 TIBCO Software Inc. (NasdaqGS:TIBX) JasperSoft Corporation - $185.0 - -Apr-28-2014 Hallvarsson & Halvarsson AB Springtime AB - - - -Apr-28-2014 ReWorld Media SA (ENXTPA:MLREW) Eaturlife SAS - - - -Apr-27-2014 DAS Acquisition Company, LLC Capital Mortgage Solutions, LLC - - - -Apr-26-2014 YMB PROPERTIES Ltd. Infographic Café - - - -Apr-25-2014 Blonde Digital Ltd. Line Marketing Limited - - - -Apr-25-2014 IRIS Software Group Limited Cascade Human Resources Limited - - - -Apr-25-2014 Private Investor(s) Sport Optimum SARL $0.9 - - -Apr-25-2014 Accord Group Limited Unknown Stakes in TAN Media Limited and Search Engine Rescue Limited - - - -Apr-24-2014 Sopra HR Software SAS Compagnie IBM France, S.A.S., HR Access Service Line - - - -Apr-24-2014 Vitec Software Group AB (OM:VIT B) AutoData Norge AS - $5.6 - -Apr-24-2014 NexJ Systems Inc. (TSX:NXJ) Liberate Ideas Inc. - $1.8 - -Apr-24-2014 DataXu, Inc. JasperLabs, Inc. - - - -Apr-24-2014 Canada Inc. Zippler - - - -Apr-24-2014 Facebook, Inc. (NasdaqGS:FB) ProtoGeo Oy - - - -Apr-24-2014 IdeaScale Corporation Ideavibes Marketing Limited - - - -

Acquirer

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Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-24-2014 Zynx Health Incorporated CareInSync Corporation - - - -Apr-24-2014 Finch Brasil Solucoes Integradas de Tecnologia Ltda Efficeon do Brasil Sistemas Inteligentes Ltda - - - -Apr-23-2014 Mediaforce (UK) LLP TriCommunications Ltd. - - - -Apr-23-2014 J.D. Power and Associates, Inc. Korrelate, Inc. - - - -Apr-23-2014 Stage 32 Happy Writers The Happy Writers - - - -Apr-23-2014 Magnitude Software Kalido, Ltd. - - - -Apr-23-2014 Etsy, Inc. Grand St. - - - -Apr-23-2014 Intralinks, Inc. docTrackr, Inc. - $10.0 - -Apr-23-2014 BizCom Web Services, Inc. CloudAny LLC - - - -Apr-23-2014 Cannabis Capital Corp. (OTCBB:CBCA) WebCongress inc. - $1.9 - -Apr-23-2014 EatAds PTE LTD. Monitorly.in - - - -Apr-23-2014 Catalyst90 Social Media NZ Ltd. - - - -Apr-22-2014 MyWedding LLC The Green Life Guides, LLC - - - -Apr-22-2014 Kantar Retail Company XTEL srl $11.5 - - -Apr-22-2014 Terago Inc. (TSX:TGO) 7,000 Square Foot Data Center Facility in Downtown Vancouver - - - -Apr-22-2014 Points International Ltd. (TSX:PTS) Accruity, Inc. - - - -Apr-22-2014 WorkforceQA LLC Compliance Safety Systems LLC - - - -Apr-22-2014 Xceptional HR Consulting, LLC The Recruiters Lounge - - - -Apr-22-2014 Kaufman, Hall & Associates, Inc, Investment Arm Axiom EPM, LLC - - - -Apr-22-2014 FPX, LLC Secure Document Technology Corporation - - - -Apr-22-2014 WPN Chameleon Ltd. Chameleon - - - -Apr-22-2014 9Slides, Inc. Now Meeting, Inc. - - - -Apr-21-2014 SFX Entertainment Inc. (NasdaqGS:SFXE) Perryscope Productions, LLC - - - -Apr-21-2014 Cross Match Technologies, Inc. DigitalPersona, Inc. - - - -Apr-21-2014 Total Defense, Inc. Untangle, Inc. - - - -Apr-21-2014 Cadence Design Systems Inc. (NasdaqGS:CDNS) Jasper Design Automation, Inc. - $170.0 - -Apr-21-2014 InsideTrack, Inc. Logrado, Inc. - - - -Apr-21-2014 WeLoveServers Horizon Hosting - - - -Apr-21-2014 Media Lounge Pvt. Ltd. Origin Beanstalk Creatives Consultants Pvt. - - - -Apr-21-2014 Television Food Network G.P. Rosso Corporation - - - -Apr-19-2014 Asher Agency, Inc. The Arnold Agency - - - -Apr-18-2014 ARRIS Group, Inc. (NasdaqGS:ARRS) SeaWell Networks Inc. - - - -Apr-18-2014 LocoMobi, Inc. Nautical Technologies Inc. - - - -Apr-18-2014 Parsons Corporation Secure Mission Solutions, Inc. - - - -Apr-18-2014 IN Switch Solutions, Inc. Micropagos S.A. - - - -Apr-18-2014 JOBDIRECT,Inc. Labit Inc., Students Related Business - - - -Apr-18-2014 EdStart, Inc. ClassBadges, Inc. - - - -Apr-18-2014 CS3 Technology, Inc. Consolidated Technology Inc., Sage Practice - - - -Apr-17-2014 Success Resources Global Ltd (ASX:SGU) Success Resources Pte Limited, Certain Intellectual Property Assets and Business Assets - $10.1 - -Apr-17-2014 Success Resources Global Ltd (ASX:SGU) Success Resources Sdn Bhd, Business Assets - $3.4 - -Apr-17-2014 Success Resources Global Ltd (ASX:SGU) Empowernet International Pty Ltd - $6.8 - -Apr-17-2014 angelMD, Inc. IncLinx - - - -Apr-17-2014 Dun & Bradstreet Corp. (NYSE:DNB) Fliptop, Inc., Social Data Matching Business Unit - - - -Apr-17-2014 Webxu, Inc. (OTCPK:WBXU) The Skyline Agency - - - -Apr-17-2014 Woven Digital, LLC Uproxx Media, Inc. - - - -Apr-17-2014 Ubiquity, Inc. (OTCBB:UBIQ.D) Monkeybars, Inc. - $0.2 - -Apr-17-2014 Omnicom Media Group Holdings Inc. Media Interactive S.A. - - - -Apr-17-2014 Chegg, Inc. (NYSE:CHGG) The Campus Special, LLC - $17.0 - -Apr-17-2014 Interactive Intelligence Group Inc. (NasdaqGS:ININ) OrgSpan, Inc. - - - -Apr-17-2014 Tamedia AG (SWX:TAMN) PubliGroupe AG (SWX:PUBN) $300.2 $360.0 1.2x 77.3xApr-17-2014 TELUS Corporation (TSX:T) Data & Audio-Visual Enterprises Holdings Inc. - $318.5 - -

Acquirer

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Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-17-2014 Splashpress Media Ltd. Instadash - - - -Apr-17-2014 Claranet Limited NovaData BV $9.7 - - -Apr-17-2014 PricewaterhouseCoopers LLP GeoTraceability Ltd. - - - -Apr-17-2014 Ed Gier Holding B.V. Playground Publishing Holdings B.V. - - - -Apr-17-2014 Nuance Communications, Inc. (NasdaqGS:NUAN) AccelaRAD, Inc. - - - -Apr-16-2014 ComOps Ltd. (ASX:COM) Complimentary Workforce Management Software Business - - - -Apr-16-2014 TimesCity Dineout Services Pvt Ltd - - - -Apr-16-2014 Experience Art and Design, Inc. (OTCBB:EXAD.E) Blabwire Media LLC $7.0 - - -Apr-16-2014 WealthEngine, Inc. BrightContext Corporation - - - -Apr-16-2014 PROSTEP AG EOS Solutions LLC - - - -Apr-16-2014 Unity Technologies, Inc. Playnomics, Inc. - - - -Apr-16-2014 Private Investor(s) MultiFreight Limited - - - -Apr-16-2014 Verizon Wireless Inc Mobi PCS, Inc., Statewide Spectrum - $210.0 - -Apr-16-2014 dough, Inc. tastytrade, Inc. - - - -Apr-16-2014 IN2 informacijski inzenjering d.o.o. IN2 Dynamics doo - - - -Apr-16-2014 MCI Deutschland GmbH HAGEN INVENT GmbH & Co. KG - - - -Apr-16-2014 MSys Tech India Pvt. Ltd. Clogeny Technologies Private Limited - - - -Apr-16-2014 Kollwitz Internet GmbH stylemarks GmbH - - - -Apr-15-2014 Freelancer Limited (ASX:FLN) Warrior Forum - $3.2 3.0x -Apr-15-2014 Multiphase Solutions, Inc. Cape Software Inc. $5.0 - - -Apr-15-2014 Converged Technology Professionals, Inc. WeVault.COM LLC - - - -Apr-15-2014 John Wiley & Sons Inc. (NYSE:JW.A) E-Learning S.A. $37.0 $175.0 4.7x -Apr-15-2014 Bazaarvoice, Inc. (NasdaqGS:BV) FeedMagnet, LLC - $9.0 - -Apr-15-2014 Twitter, Inc. (NYSE:TWTR) Gnip, Inc. - - - -Apr-15-2014 Vertical Search Works, Inc. addGloo, Inc. - - - -Apr-15-2014 Digital Luxury Group, DLG SA Luxury Society, SAS - - - -Apr-15-2014 Jasper Infotech Pvt. Ltd. Doozton.com - - - -Apr-15-2014 Intermedix Corp. The Optima Corporation - $5.0 - -Apr-15-2014 RetailMeNot, Inc. (NasdaqGS:SALE) Pickie, Inc. - - - -Apr-15-2014 Bookatable Limited 2book AB - - - -Apr-15-2014 TeamSystem S.r.l. 24 ORE Software S.p.A. $84.5 $143.0 1.7x -Apr-14-2014 MGM Wireless Limited (ASX:MWR) Payschool Pty Ltd - - - -Apr-14-2014 Hexagon AB (OM:HEXA B) Mintec, Inc. - - - -Apr-14-2014 EQS Group AG (XTRA:E1S) TodayIR.com $1.9 $6.2 3.2x -Apr-14-2014 Intapp, Inc. The Frayman Group, Inc. - - - -Apr-14-2014 Fidelity National Information Services, Inc. (NYSE:FIS) Credit Management Solutions, Inc. - - - -Apr-14-2014 Paymentus Corp. Tele-Works Inc. - - - -Apr-14-2014 Alpha II Software Solutions Unicor Medical, Inc. - - - -Apr-14-2014 PMK-BNC, Inc. Vowel - - - -Apr-14-2014 Shenzhen ZQGame Co.,Ltd. (SZSE:300052) Beijing AutoThink Co., Ltd. - $118.9 - -Apr-14-2014 Electronics for Imaging, Inc. (NasdaqGS:EFII) Rhapso S.A. - - - -Apr-14-2014 Shijiebang (Beijing) Information Technology Ltd. Tukequan - - - -Apr-14-2014 TargetX.com LLC Matchbox, Inc. - - - -Apr-14-2014 Rowan Dartington & Co. Ltd. Acordias Offshore Limited - - - -Apr-14-2014 Private Investor(s) Resource Team Limited - $0.2 - -Apr-14-2014 Orange Health Solutions, Inc. MZI Healthcare, LLC - - - -Apr-14-2014 Tekla Oyj SVS Innovations, Construction Software Business - - - -Apr-14-2014 Jeeves Information Systems AB SolvAxis SA - - - -Apr-14-2014 EDM Group Limited xit2 Ltd. - - - -Apr-14-2014 Motion PR, Inc. Miller-Pear Public Relations, Inc. - - - -Apr-14-2014 Automotive Rentals, Inc. netcar24 GmbH - - - -

Acquirer

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Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-12-2014 ActMobile Networks, Inc. Colimetrics Software Pvt Ltd. - - - -Apr-11-2014 Westec Holding Co Ltd MachineWorks Limited - - - -Apr-11-2014 GEO DINOS Co., Ltd. DropWave.inc $6.1 $0.4 0.1x -Apr-10-2014 International Business Machines Corporation (NYSE:IBM) Silverpop Systems, Inc. $80.0 - - -Apr-10-2014 Heartland Payment Systems, Inc. (NYSE:HPY) MCS Software, LLC - - - -Apr-10-2014 Amazon.com Inc. (NasdaqGS:AMZN) Iconology, Inc. - - - -Apr-10-2014 Demandforce, Inc. Customerlink Systems, Inc. - - - -Apr-10-2014 QUALICA Inc. Komatsu Ltd., Part of CSS-Net Business - - - -Apr-10-2014 Criteo SA (NasdaqGS:CRTO) AdQuantic - - - -Apr-10-2014 Beijing TRS Information Technology Co., Ltd (SZSE:300229) Beijing Topwalk - $96.5 - -Apr-10-2014 NewBay Media, LLC Ratings Intelligence LLC - - - -Apr-10-2014 WeLoveServers TuguHost - - - -Apr-09-2014 Private Investor(s) Voxmobili S.A. - - - -Apr-09-2014 Mercadolibre, Inc. (NasdaqGS:MELI) VMK - $40.0 - -Apr-09-2014 True Ventures; Automattic, Inc. Longreads - - - -Apr-09-2014 Lennox Investments L.L.C. Southport Re - - - -Apr-09-2014 Gryphn Corp. Uppidy, Inc. - - - -Apr-09-2014 SARL Sysaware Groupe Alma Accoss SARL $0.7 - - -Apr-09-2014 CompassData, Inc. Spatial Information Solutions, Inc. - - - -Apr-08-2014 Learning Technologies Group plc (AIM:LTG) LINE Communications Group Limited $14.3 $16.1 1.1x 11.0xApr-08-2014 Publicis Groupe SA (ENXTPA:PUB) OwenKessel - - - -Apr-08-2014 Masergy Communications, Inc. Global DataGuard, Inc. - - - -Apr-08-2014 Baker Hughes Incorporated (NYSE:BHI) Perfomix, Inc. - - - -Apr-08-2014 Clarabridge, Inc. Market Metrix LLC - - - -Apr-08-2014 Viewpoints, LLC PowerReviews, LLC - - - -Apr-08-2014 Alaska Dispatch Publishing LLC Anchorage Daily News, Inc. $27.4 $34.0 1.2x -Apr-08-2014 Ph3A Comercio Importacao e Exportacao Ltda. Arima Informática Ltda - - - -Apr-08-2014 SilverTech, Inc. Poised Solutions, Inc. - - - -Apr-08-2014 Daum Communications Corp. (KOSDAQ:A035720) Buzzpia Corporation - - - -Apr-07-2014 INSIDE Secure (ENXTPA:INSD) Metaforic Limited - $16.1 - -Apr-07-2014 BookIt Commerce, Inc. TRAINlete, L.L.C. - - - -Apr-07-2014 lynda.com, Inc. Compilr Inc. - - - -Apr-07-2014 Mobistar SA/NV (ENXTBR:MOBB) Carrefour SA, Hypermarkets Telecommunication Operations In Belgium - - - -Apr-07-2014 Sensus (Bermuda 1), Ltd. Verdeeco, Inc. - - - -Apr-07-2014 GTCR, LLC Vocus Inc. (NasdaqGS:VOCS) $186.3 $441.7 2.4x -Apr-07-2014 DiCentral Corporation On-Demand Warehouse Management System - - - -Apr-07-2014 EXFO Inc (TSX:EXF) ByteSphere LLC - - - -Apr-07-2014 Solera Holdings Inc. (NYSE:SLH) Auto Point, Inc. - - - -Apr-07-2014 Lightbeam Health Solutions, LLC Dynamic Vault, LLC - - - -Apr-07-2014 Twitter, Inc. (NYSE:TWTR) Apps & Zerts, Inc. - - - -Apr-07-2014 Fluid, Inc. 8thBridge, Inc. - - - -Apr-07-2014 LivePerson Inc. (NasdaqGM:LPSN) NexGraph, LLC - - - -Apr-07-2014 SFX Entertainment Inc. (NasdaqGS:SFXE) TMWRK Management and The Meta Agency and Learned Evolution - - - -Apr-07-2014 Tyler Outdoor Advertising LLC Whistler Sign Co LLC, Oklahoma City Assets - - - -Apr-07-2014 SAS Mazarine Groupe You To You $9.6 - - -Apr-06-2014 Dalet S.A. (ENXTPA:DLT) AmberFin Ltd. - - - -Apr-06-2014 Weld North LLC TrueNorthLogic, LLC - - - -Apr-06-2014 Weld North LLC Imagine Learning, Inc. - - - -Apr-06-2014 Hego Norge AS Metaphor AS - $3.8 - -Apr-06-2014 Ross Video Limited Unreel LLC - - - -Apr-04-2014 Elray Gaming Inc. SimRacing - - - -

Acquirer

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Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-04-2014 GEO-CODE Co., Ltd. Samurai Factory, Inc., SEO Business - - - -Apr-04-2014 Help/Systems, LLC Network Automation, Inc. - - - -Apr-04-2014 Open Joint Stock Company Long-Distance and International TelecommunicaOJSC Cellular Communications of Bashkortostan - - - -Apr-04-2014 Cantaloupe Systems, Inc. CompuVend, Inc. - - - -Apr-04-2014 Private Investor(s) Invertise Inc. - - - -Apr-03-2014 Stanfield Funds Management Limited (ASX:SFN) Easybookings (International) Pte Ltd. - $0.3 - -Apr-03-2014 Amadeus Corporate Business AG i:FAO AG (XTRA:FAO2) $19.8 $98.0 5.0x 15.6xApr-03-2014 ConCardis GmbH Yapital Financial AG - - - -Apr-03-2014 j2 Global, Inc. (NasdaqGS:JCOM) Critical Software Ltd - - - -Apr-03-2014 SWK Technologies, Inc. ESC, Inc. - - - -Apr-03-2014 IGE+XAO Group (ENXTPA:IGE) Prosyst SAS $1.9 - - -Apr-03-2014 Tribune Digital Ventures TVbytheNumbers.com LLC - - - -Apr-03-2014 Resource Interactive LLC Ammirati Ready, Inc. $15.0 - - -Apr-03-2014 Ve Interactive Ltd. adGENIE - - - -Apr-03-2014 Dunnhumby Limited sociomantic labs GmbH $100.6 $205.7 2.0x -Apr-03-2014 HitFox GmbH Datamonk - - - -Apr-03-2014 evvnt Ltd Evently Ltd - - - -Apr-03-2014 Eloquant S.A Interview SA $3.0 - - -Apr-03-2014 The Social Client Sociabliz - - - -Apr-02-2014 Kantar Media Research Inc The Data Republic, S.L. - - - -Apr-02-2014 CAD-Quality AB Symetri Ltd. - $4.6 - -Apr-02-2014 Aurelius AG (XTRA:AR4) Publicitas S.A $903.9 - - -Apr-02-2014 The Icicle Group WinWin Media - - - -Apr-02-2014 Kona I CO., Ltd. (KOSDAQ:A052400) Websync Co.,Ltd. - $3.4 - -Apr-02-2014 GE Healthcare Information Technologies CHCA Computer Systems Inc. - - - -Apr-02-2014 John Wiley & Sons Inc. (NYSE:JW.A) Profiles International, Inc. $27.0 $51.0 1.9x -Apr-02-2014 RentPath Inc. Lovely, Inc. - $13.0 - -Apr-02-2014 Brisio Innovations Inc. (OTCPK:NTCE.F) Spermy's Journey, A Race To The Egg! - $0.1 - -Apr-02-2014 Network Communications, Inc. Apartment Guide, LLC - - - -Apr-02-2014 RobbinsKersten Direct KerstenDirect - - - -Apr-02-2014 Accela, Inc. Des Lauriers Municipal Solutions, Inc. - - - -Apr-02-2014 Gild Inc. Distill, Inc. - - - -Apr-02-2014 Private Investor(s) Localist Limited - - - -Apr-02-2014 Merkle, Inc. New Control LLC - - - -Apr-02-2014 Zhejiang Rongxin Network Technology Co., Ltd. Hangzhou Handsome Electronics Group Co. Ltd. - $531.6 - -Apr-02-2014 Beijing Hualu Baina Film &TV Inc. (SZSE:300291) Guangdong Blue Flame Media Co.,Ltd. - $402.8 - -Apr-02-2014 Shanghai Ace Co.,Ltd. (SHSE:600652) UUU9.Com Co. - $190.1 - -Apr-02-2014 TÜV Rheinland Aktiengesellschaft Institut für Sicherheitstechnologie (ISTec) GmbH - - - -Apr-02-2014 Ernst & Young LLP, Investment Arm LogiStar Solutions LLC - - - -Apr-01-2014 Enprise Group Limited Datagate Innovation Limited - $0.1 - -Apr-01-2014 Neopost Limited Data Capture Solutions LTD. $6.2 - - -Apr-01-2014 LexisNexis Risk Solutions, Inc. Tracesmart Ltd. - - - -Apr-01-2014 The Descartes Systems Group Inc (TSX:DSG) Computer Management USA Inc. - $6.6 - -Apr-01-2014 Telefónica, S.A. (CATS:TEF) Digital Bubble S.L. - - - -Apr-01-2014 Captivate Network, Inc. Office Media Network, Inc. - - - -Apr-01-2014 Aspen Technology, Inc. (NasdaqGS:AZPN) Sulphur Experts, Sulsim Software - - - -Apr-01-2014 TechnoConcepts Inc. (OTCPK:TCPS) Portfolio Of 8 Websites - - - -Apr-01-2014 Morningstar Inc. (NasdaqGS:MORN) ByAllAccounts, Inc. - $28.0 - -Apr-01-2014 iBuy Group Limited (ASX:IBY) Ensogo Holdings Ltd $51.1 $18.7 0.4x -Apr-01-2014 PRO DV AG (XTRA:PDA) MSA Auer GmbH, TecBOS.Command - - - -Apr-01-2014 Teliasonera Danmark A/s Siminn Danmark A/S $15.4 - - -

Acquirer

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Page 14: May monthly   current

Select May 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAApr-01-2014 HGGC, LLC AutoAlert, Inc. - - - -Apr-01-2014 Spredfast, Inc. Mass Relevance Inc. - - - -Apr-01-2014 Cirrus Media FST Media Pty. Ltd. - - - -Apr-01-2014 Revation, Inc. North Light Software, Inc. - - - -Apr-01-2014 Crobo GmbH TrafficCaptain GmbH - - - -Apr-01-2014 evvnt Ltd EventSneaker Ltd. - - - -Apr-01-2014 Ocuco Limited Practice Management Services Ltd. - - - -Apr-01-2014 Technicolor SA (ENXTPA:TCH) Cloud Takes, LLC - - - -Apr-01-2014 Proposal Software, Inc. Manager Insights, LLC - - - -

Acquirer

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Page 15: May monthly   current

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Page 16: May monthly   current

SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Software Index $1,960.4 $2,558.5 $743.9 70.1% 19.6% 6.2% 3.1x 13.3x 2.8x 11.0x -3.9% Billing & Service Management $898.5 $952.9 $369.2 57.4% 18.4% 4.8% 2.1x 10.0x 1.9x 8.3x -9.2% Business Intelligence $1,183.8 $930.4 $404.9 81.2% 6.8% 11.7% 3.1x 24.8x 2.6x 13.0x -21.0% Development Platforms $2,661.3 $2,694.0 $1,142.8 76.0% 19.6% -0.3% 2.5x 11.8x 2.8x 8.6x -1.0% Engineering & PLM $4,504.8 $4,204.1 $1,156.4 84.1% 19.7% 6.2% 3.2x 14.2x 3.1x 11.0x -6.9% Enterprise Resource Planning $7,901.8 $8,509.4 $2,228.0 72.5% 29.0% 2.7% 3.8x 12.4x 3.7x 10.5x 8.7% Financial & Accounting $1,960.4 $2,558.5 $743.9 55.1% 26.4% 4.7% 3.1x 13.3x 3.6x 10.7x -7.1% Gaming $2,637.9 $2,717.9 $2,282.1 64.2% 18.5% 3.9% 1.7x 11.4x 1.6x 9.3x 14.0% Healthcare $1,189.5 $1,525.2 $559.6 54.8% 15.5% 1.1% 2.3x 13.6x 2.2x 10.2x 2.0% IT Conglomerates $182,279.3 $169,759.3 $83,347.0 70.1% 34.4% 2.0% 3.2x 9.3x 2.9x 8.1x 8.7% Mobile Solutions/Content $671.3 $571.9 $292.1 56.6% 3.6% 22.3% 2.8x 19.8x 2.0x 13.0x -3.9% Networking & Network Performance Managemen $1,714.8 $1,510.1 $435.6 70.9% 7.5% 8.8% 2.7x 16.1x 2.5x 11.5x -6.9% Security $961.1 $936.3 $196.1 76.8% 5.3% 17.4% 3.2x 11.1x 3.1x 12.7x -4.1% Storage, Data Mgmt & Integration $11,796.7 $7,722.6 $4,582.0 71.3% 23.7% 2.0% 2.7x 9.3x 2.6x 8.1x 3.7% Supply Chain Management & Logistics $1,625.8 $1,551.5 $262.2 62.3% 27.7% 16.2% 5.4x 19.5x 4.9x 16.6x 3.2% Systems Management $10,081.3 $9,175.6 $2,265.5 85.8% 26.0% 13.3% 4.5x 17.9x 3.9x 12.3x -0.9% Vertical - Finance $3,947.1 $4,287.1 $890.6 44.2% 27.0% 8.2% 4.1x 12.7x 3.9x 11.2x -5.4% Vertical - Other $1,374.6 $1,515.2 $433.5 51.9% 11.3% 21.2% 2.9x 19.6x 2.7x 17.0x -18.3%

Category Name

TTM Revenue Growth 8.0%TTM EBITDA Growth -25.1%TTM Earnings Growth -35.6%Gross Profit Margin 69.1%EBITDA Margin 18.6%Net Income Margin -14.1%SG&A Expenses as a % of Total Revenue 56.6%R&D Expenses as a % of Total Revenue 18.9%

Current Ratio 2.3Quick Ratio 2.1Cash as Percent of Market Cap 11.2%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 8.9%Cash from Operations Growth (YoY) 20.8%Cash from Investing Growth (YoY) -29.2%Cash from Financing Growth (YoY) 75.9%Levered FCF Growth (YoY) 17.8%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

-6%

-4%

-2%

0%

2%

4%

6%SEG SW Index Software Stock Market Return: January - April 2014

DOW S&P NASDAQ SEG SW Index

Page 17: May monthly   current

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmdocs Limited DOX $7,427.0 $6,318.3 $3,447.5 35.2% 18.4% 4.8% 1.8x 10.0x 1.7x 8.3x 14.5%CSG Systems International, Inc. CSGS $898.5 $952.9 $747.5 49.1% 16.8% -1.2% 1.3x 7.6x 1.3x 6.0x -9.2%Evolving Systems, Inc. EVOL $100.8 $87.1 $25.1 71.5% 23.8% -4.4% 3.5x 14.6x 3.0x 10.5x -10.1%MIND C.T.I. Ltd. MNDO $35.4 $16.1 $18.5 57.4% 13.0% -8.6% 0.9x 6.7x n/a n/a 2.7%NeuStar, Inc NSR $1,549.3 $1,955.7 $915.5 75.8% 38.4% 7.9% 2.1x 5.6x 2.0x 4.4x -48.1%Redknee Solutions TSX:RKN $477.4 $450.4 $188.2 54.7% 3.6% 226.0% 2.4x 66.9x 1.9x 15.4x -26.5%Synchronoss Technologies, Inc. SNCR $1,253.4 $1,204.3 $369.2 58.3% 24.0% 28.5% 3.3x 13.6x 2.8x 8.2x 2.5%

Median: $898.5 $952.9 $369.2 57.4% 18.4% 4.8% 2.1x 10.0x 1.9x 8.3x -9.2%

TTM Revenue Growth 0.0%TTM EBITDA Growth -0.6%TTM Earnings Growth -1.2%Gross Profit Margin 0.0%EBITDA Margin 0.0%Net Income Margin 11.8%SG&A Expenses as a % of Total Revenue 20.6%R&D Expenses as a % of Total Revenue 14.7%

Current Ratio 2.3Quick Ratio 2.2Cash as Percent of Market Cap 14.9%Avg Days Outstanding: Accounts Receivable 74Avg Days Outstanding: Accounts Payable 28Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 13.4%Cash from Operations Growth (YoY) 0.5%Cash from Investing Growth (YoY) -169.7%Cash from Financing Growth (YoY) 38.6%Levered FCF Growth (YoY) 26.3%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Billing and Service Management Software Stock Market Return: January - April 2014

Billing & Service Management S&P NASDAQ SEG SW Index

Page 18: May monthly   current

SEG Software Index Category: Business Intelligence

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $265.1 $186.0 $123.7 85.6% 5.2% -11.0% 1.5x 28.8x 1.5x 7.6x -26.1%MicroStrategy Incorporated MSTR $1,372.3 $1,006.5 $583.6 76.8% 7.0% 4.7% 1.7x 24.8x 1.6x 18.6x -1.7%Pegasystems Inc. PEGA $1,265.3 $1,108.6 $509.0 69.1% 15.9% 10.2% 2.2x 13.7x 1.9x 12.7x -32.3%Progress Software Corporation PRGS $1,102.3 $854.3 $324.8 90.4% 28.3% 1.9% 2.6x 9.3x 2.6x 7.2x -16.0%PROS Holdings PRO $808.3 $763.6 $144.8 70.2% 6.6% 23.0% 5.3x 80.5x 4.0x 34.0x -30.3%Qlik Technologies QLIK $1,968.5 $1,715.2 $485.0 86.5% 1.2% 19.5% 3.5x 297.6x 3.0x 34.5x -12.5%Varonis Systems, Inc. VRNS $615.0 $600.9 $74.6 91.3% -6.8% 39.7% 8.1x n/a n/a n/a -42.6%Verisk VRSK $9,998.5 $10,842.5 $1,628.6 60.2% 45.6% 13.3% 6.7x 14.6x 6.0x 13.0x -7.7%Tableau Software DATA $3,524.8 $3,272.1 $232.4 92.0% 4.5% 82.0% 14.1x 311.1x 10.0x n/a -19.2%Teradata NYSE:TDC $7,253.1 $6,832.1 $2,692.0 54.7% 23.1% 1.0% 2.5x 11.0x 2.4x 8.7x 1.6%

Median: $1,183.8 $930.4 $404.9 81.2% 6.8% 11.7% 3.1x 24.8x 2.6x 13.0x -21.0%

TTM Revenue Growth 11.7%TTM EBITDA Growth -0.5%TTM Earnings Growth -30.1%Gross Profit Margin 81.2%EBITDA Margin 6.8%Net Income Margin 3.7%SG&A Expenses as a % of Total Revenue 51.9%R&D Expenses as a % of Total Revenue 18.1%

Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 11.0%Avg Days Outstanding: Accounts Receivable 93Avg Days Outstanding: Accounts Payable 49Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 10.5%Cash from Operations Growth (YoY) 26.3%Cash from Investing Growth (YoY) -92.7%Cash from Financing Growth (YoY) 4.1%Levered FCF Growth (YoY) 57.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-25%

-20%

-15%

-10%

-5%

0%

5%

10%Business Intelligence Software Stock Market Return: January - April 2014

Business Intelligence S&P NASDAQ SEG SW Index

Page 19: May monthly   current

SEG Software Index Category: Development Platforms

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $265.1 $186.0 $123.7 85.6% 5.2% -11.0% 1.5x 28.8x 1.5x 7.6x -26.1%Adobe Systems Incorporated ADBE $30,705.0 $29,082.6 $4,047.5 85.7% 18.6% -7.3% 7.2x 38.6x 6.8x 24.5x 4.0%BSQUARE Corporation BSQR $36.4 $15.6 $92.1 16.5% -2.0% -9.2% 0.2x n/a n/a n/a -11.8%Compuware Corporation CPWR $2,260.4 $2,172.4 $946.1 62.2% 13.3% -2.5% 2.3x 17.2x 2.8x 12.9x -6.0%Magic Software Enterprises Ltd. MGIC $357.0 $328.1 $145.0 40.7% 19.1% 14.7% 2.3x 11.8x 2.1x n/a 15.1%Microsoft Corporation MSFT $333,720.6 $269,528.6 $83,347.0 70.1% 37.7% 9.6% 3.2x 8.6x 2.9x 8.1x 9.5%Oracle Corporation ORCL $182,279.3 $169,759.3 $37,902.0 81.9% 43.5% 2.0% 4.5x 10.3x 4.3x 8.6x 8.7%Progress Software Corporation PRGS $1,102.3 $854.3 $324.8 90.4% 28.3% 1.9% 2.6x 9.3x 2.6x 7.2x -16.0%Red Hat, Inc. RHT $9,211.6 $8,229.5 $1,534.6 84.8% 20.1% 15.5% 5.4x 26.6x 4.7x 16.9x -12.9%Software AG XTRA:SOW $3,062.2 $3,215.7 $1,339.5 69.7% 25.0% -7.1% 2.4x 9.6x 2.4x 8.7x 10.5%

Median: $2,661.3 $2,694.0 $1,142.8 76.0% 19.6% -0.3% 2.5x 11.8x 2.8x 8.6x -1.0%

TTM Revenue Growth -0.3%TTM EBITDA Growth -1.5%TTM Earnings Growth -2.6%Gross Profit Margin 76.0%EBITDA Margin 19.6%Net Income Margin 11.3%SG&A Expenses as a % of Total Revenue 40.3%R&D Expenses as a % of Total Revenue 13.3%

Current Ratio 1.9Quick Ratio 1.8Cash as Percent of Market Cap 21.5%Avg Days Outstanding: Accounts Receivable 77Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 19.8%Cash from Operations Growth (YoY) -6.7%Cash from Investing Growth (YoY) 24.9%Cash from Financing Growth (YoY) -1.7%Levered FCF Growth (YoY) 13.9%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

-6%

-4%

-2%

0%

2%

4%

6%Development Platforms Software Stock Market Return: January - April 2014

Development Platforms S&P NASDAQ SEG SW Index

Page 20: May monthly   current

SEG Software Index Category: Engineering & PLM

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDANSYS, Inc. ANSS $7,070.0 $6,327.0 $878.8 87.4% 46.8% 8.4% 7.2x 15.4x 6.7x 13.1x -11.3%Autodesk, Inc. ADSK $10,923.5 $9,402.8 $2,273.9 87.9% 18.8% -1.7% 4.1x 22.0x 4.0x 21.5x -2.5%Cadence Design Systems, Inc CDNS $4,504.8 $4,204.1 $1,484.4 85.9% 19.7% 8.8% 2.8x 14.4x 2.6x 8.0x 11.1%Cimatron Ltd. CIMT $70.8 $57.8 $44.2 86.8% 14.7% 4.6% 1.3x 8.9x 1.2x n/a -28.3%Dassault Systèmes DSY $15,421.6 $13,535.7 $2,870.3 87.1% 30.3% 1.6% 4.7x 15.6x 4.1x 12.8x -0.1%GSE Systems Inc. GVP $31.3 $15.7 $47.6 26.5% -6.8% -9.0% 0.3x n/a 0.4x n/a 8.0%Mentor Graphics Corp MENT $2,361.1 $2,313.1 $1,156.4 84.1% 20.7% 6.2% 2.0x 9.7x 1.9x 7.5x -12.5%Parametric Technology Corporation PTC $4,198.5 $4,246.2 $1,313.5 71.9% 23.2% 3.4% 3.2x 13.9x 3.1x 11.0x 1.9%PDF Solutions Inc PDFS $571.4 $470.4 $104.4 62.2% 34.7% 12.3% 4.5x 13.0x 4.1x 9.2x -25.1%Stratasys, Inc. SSYS $4,771.7 $4,157.3 $484.4 46.8% 16.6% 125.0% 8.6x 51.7x 6.1x 22.9x -27.7%Synopsys Inc SNPS $5,796.6 $5,001.1 $1,966.0 82.3% 18.3% 8.9% 2.5x 13.9x 2.4x 7.9x -6.9%

Median: $4,504.8 $4,204.1 $1,156.4 84.1% 19.7% 6.2% 3.2x 14.2x 3.1x 11.0x -6.9%

TTM Revenue Growth 6.2%TTM EBITDA Growth 6.7%TTM Earnings Growth 2.1%Gross Profit Margin 84.1%EBITDA Margin 19.7%Net Income Margin 12.5%SG&A Expenses as a % of Total Revenue 35.7%R&D Expenses as a % of Total Revenue 17.7%

Current Ratio 2.4Quick Ratio 2.3Cash as Percent of Market Cap 15.4%Avg Days Outstanding: Accounts Receivable 82Avg Days Outstanding: Accounts Payable 45Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 16.0%Cash from Operations Growth (YoY) 9.4%Cash from Investing Growth (YoY) -6.2%Cash from Financing Growth (YoY) -36.2%Levered FCF Growth (YoY) 2.9%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Engineering & PLM Software Stock Market Return: January - April 2014

Engineering & PLM S&P NASDAQ SEG SW Index

Page 21: May monthly   current

SEG Software Index Category: Enterprise Resource Planning

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $269.4 $203.6 $99.9 55.9% 16.5% -3.2% 2.0x 12.4x 1.9x 9.4x -1.9%Oracle Corporation ORCL $182,279.3 $169,759.3 $37,902.0 81.9% 43.5% 2.0% 4.5x 10.3x 4.3x 8.6x 8.7%QAD Inc. QADA $290.4 $229.9 $266.3 56.1% 5.1% 5.6% 0.9x 16.9x 0.8x 10.7x 13.2%Sage Group plc LSE:SGE $7,901.8 $8,509.4 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x 3.7x 12.5x 13.1%SAP DB:SAP $96,330.9 $95,926.0 $23,302.8 72.5% 34.4% 2.7% 4.1x 12.0x 3.9x 10.5x -4.3%

Median: $7,901.8 $8,509.4 $2,228.0 72.5% 29.0% 2.7% 3.8x 12.4x 3.7x 10.5x 8.7%

TTM Revenue Growth 2.7%TTM EBITDA Growth 8.7%TTM Earnings Growth 11.2%Gross Profit Margin 72.5%EBITDA Margin 29.0%Net Income Margin 10.9%SG&A Expenses as a % of Total Revenue 32.1%R&D Expenses as a % of Total Revenue 13.3%

Current Ratio 1.2Quick Ratio 1.1Cash as Percent of Market Cap 20.4%Avg Days Outstanding: Accounts Receivable 72Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.1x

Levered FCF Margin 16.8%Cash from Operations Growth (YoY) 9.6%Cash from Investing Growth (YoY) 32.2%Cash from Financing Growth (YoY) 20.9%Levered FCF Growth (YoY) -12.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%Enterprise Resource Planning Software Stock Market Return: January - April 2014

Enterprise Resource Planning S&P NASDAQ SEG SW Index

Page 22: May monthly   current

SEG Software Index Category: Financial & Accounting

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDACI Worldwide, Inc. ACIW $2,167.4 $2,843.5 $924.4 57.8% 21.0% 33.8% 3.1x 14.6x 2.7x 9.7x -9.3%Bottomline Technologies EPAY $1,180.7 $1,118.7 $283.9 55.8% 13.5% 13.0% 3.9x 29.1x 3.5x 16.6x -9.6%DST Systems, Inc. DST $3,881.2 $4,410.4 $2,660.0 17.2% 16.0% 2.1% 1.7x 10.4x 2.1x 9.3x 2.6%Evertec EVTC $1,845.1 $2,558.5 $357.2 55.1% 39.0% 4.6% 7.2x 18.4x 6.8x 13.5x -6.2%Fair Isaac Corporation FICO $1,960.4 $2,335.2 $743.9 69.1% 26.4% 3.9% 3.1x 11.9x 3.0x 10.0x -7.1%Fiserv FISV $15,148.1 $18,689.1 $4,896.0 43.1% 29.1% 9.0% 3.8x 13.1x 3.7x 11.2x 4.4%Intuit Inc INTU $21,461.0 $20,629.0 $4,129.0 86.2% 31.4% 12.2% 5.0x 15.9x 4.4x 10.7x 0.3%Model N, Inc MODN $218.4 $115.8 $97.2 54.5% -1.0% 4.7% 1.2x n/a 1.5x n/a -54.9%NetSol Technologies Inc. KASE:NETS $30.8 $32.9 $27.3 45.6% 35.8% 2.3% 1.2x 3.4x n/a n/a -18.5%Sage Group plc LSE:SGE $7,901.8 $8,509.4 $2,228.0 94.2% 29.0% 2.7% 3.8x 13.2x 3.7x 12.5x 13.1%Qiwi plc QIWI $1,507.8 $1,107.2 $355.1 45.9% 23.1% 30.9% 3.1x 13.5x 5.2x 10.6x -48.1%

Median: $1,960.4 $2,558.5 $743.9 55.1% 26.4% 4.7% 3.1x 13.3x 3.6x 10.7x -7.1%

TTM Revenue Growth 4.7%TTM EBITDA Growth 8.7%TTM Earnings Growth -0.6%Gross Profit Margin 55.1%EBITDA Margin 26.4%Net Income Margin 11.5%SG&A Expenses as a % of Total Revenue 27.9%R&D Expenses as a % of Total Revenue 15.5%

Current Ratio 1.2Quick Ratio 0.8Cash as Percent of Market Cap 5.5%Avg Days Outstanding: Accounts Receivable 64Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.1x

Levered FCF Margin 16.7%Cash from Operations Growth (YoY) 23.5%Cash from Investing Growth (YoY) 34.0%Cash from Financing Growth (YoY) -90.7%Levered FCF Growth (YoY) 20.3%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-12%

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0%

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6%Financial & Accounting Software Stock Market Return: January - April 2014

Financial & Accounting S&P NASDAQ SEG SW Index

Page 23: May monthly   current

SEG Software Index Category: Gaming

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActivision Blizzard ATVI $14,303.5 $14,553.5 $4,583.0 66.6% 32.3% -5.6% 3.2x 9.8x 3.1x 9.0x 11.8%Electronic Arts Inc. EA $8,761.4 $7,266.4 $3,661.0 61.8% 6.1% -7.5% 2.0x 32.6x 1.8x 9.3x 24.0%GameLoft SA ENXTPA:GF $835.3 $751.7 $321.3 82.8% 15.6% 12.0% 2.3x 15.0x 2.0x 9.8x -7.7%Konami Corporation TSE: 9766 $3,163.1 $3,125.2 $2,109.3 30.8% 11.3% -4.1% 1.5x 13.1x 1.3x 9.3x -0.7%Take-Two Interactive TTWO $1,997.5 $1,474.1 $2,454.8 42.2% 21.4% 130.9% 0.6x 2.8x 1.1x 9.8x 16.3%Ubisoft Entertainment ENXTPA:UB $2,112.6 $2,310.6 $1,719.3 72.7% 37.7% 16.3% 1.3x 3.6x 1.4x 5.1x 36.3%

Median: $2,637.9 $2,717.9 $2,282.1 64.2% 18.5% 3.9% 1.7x 11.4x 1.6x 9.3x 14.0%

TTM Revenue Growth 3.9%TTM EBITDA Growth -1.0%TTM Earnings Growth -26.7%Gross Profit Margin 64.2%EBITDA Margin 18.5%Net Income Margin 3.7%SG&A Expenses as a % of Total Revenue 24.5%R&D Expenses as a % of Total Revenue 30.7%

Current Ratio 2.4Quick Ratio 1.6Cash as Percent of Market Cap 19.0%Avg Days Outstanding: Accounts Receivable 42Avg Days Outstanding: Accounts Payable 58Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 10.8%Cash from Operations Growth (YoY) 26.6%Cash from Investing Growth (YoY) -71.6%Cash from Financing Growth (YoY) 115.1%Levered FCF Growth (YoY) 20.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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25%Gaming Software Stock Market Return: January - April 2014

Gaming S&P NASDAQ SEG SW Index

Page 24: May monthly   current

SEG Software Index Category: Healthcare

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAccretive Health AH $16,795.0 $15,501.4 $44,927.3 26.6% 6.5% -0.2% 0.3x 5.3x 0.3x 5.1x 13.2%Allscripts Healthcare Solutions Inc. MDRX $2,730.8 $3,230.1 $1,373.1 45.1% 0.7% -5.1% 2.4x 327.2x 2.3x 14.2x -1.1%Cerner Corporation CERN $17,615.0 $16,744.2 $2,939.3 85.0% 26.3% 11.1% 5.7x 21.6x 4.9x 13.6x -6.8%Computer Programs and Sys, Inc. CPSI $704.8 $682.4 $203.4 47.2% 27.3% 8.0% 3.4x 12.3x 3.2x 11.2x 5.1%MedAssets MDAS $1,410.9 $2,186.7 $678.4 77.1% 29.8% 2.3% 3.2x 10.8x 3.0x 9.1x 16.6%Merge Healthcare MRGE $216.7 $425.6 $218.9 59.4% 11.6% -13.0% 1.9x 16.7x 2.0x 10.0x -9.9%Omnicell, Inc. OMCL $968.1 $863.6 $395.2 53.8% 14.6% 17.3% 2.2x 15.0x 2.0x 10.4x 5.6%Quality Systems, Inc. QSII $889.3 $795.3 $440.8 55.8% 16.5% -3.7% 1.8x 10.9x 1.7x 8.6x -28.0%

Median: $1,189.5 $1,525.2 $559.6 54.8% 15.5% 1.1% 2.3x 13.6x 2.2x 10.2x 2.0%

TTM Revenue Growth 1.1%TTM EBITDA Growth 4.3%TTM Earnings Growth 5.5%Gross Profit Margin 54.8%EBITDA Margin 15.5%Net Income Margin 5.4%SG&A Expenses as a % of Total Revenue 32.5%R&D Expenses as a % of Total Revenue 9.9%

Current Ratio 1.8Quick Ratio 1.5Cash as Percent of Market Cap 9.0%Avg Days Outstanding: Accounts Receivable 69Avg Days Outstanding: Accounts Payable 38Working Capital to TTM Operating Expense Ratio 0.2x

Levered FCF Margin 9.2%Cash from Operations Growth (YoY) -2.9%Cash from Investing Growth (YoY) 0.7%Cash from Financing Growth (YoY) -47.1%Levered FCF Growth (YoY) 13.2%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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20%Healthcare Software Stock Market Return: January - April 2014

Healthcare S&P NASDAQ SEG SW Index

Page 25: May monthly   current

SEG Software Index Category: IT Conglomerates

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDHewlett Packard HPQ $62,652.7 $71,576.7 $112,093.0 23.4% 11.8% -5.6% 0.6x 5.4x 0.6x 5.2x 20.1%IBM IBM $198,863.6 $233,284.6 $98,827.0 49.0% 25.4% -4.3% 2.4x 9.3x 2.4x 8.1x 6.5%Microsoft Corporation MSFT $333,720.6 $269,528.6 $83,347.0 70.1% 37.7% 9.6% 3.2x 8.6x 2.9x 8.1x 9.5%Oracle Corporation ORCL $182,279.3 $169,759.3 $37,902.0 81.9% 43.5% 2.0% 4.5x 10.3x 4.3x 8.6x 8.7%SAP AG DB:SAP $96,330.9 $95,926.0 $23,302.8 72.5% 34.4% 2.7% 4.1x 12.0x 3.9x 10.5x -4.3%

Median: $182,279.3 $169,759.3 $83,347.0 70.1% 34.4% 2.0% 3.2x 9.3x 2.9x 8.1x 8.7%

TTM Revenue Growth 2.0%TTM EBITDA Growth 3.1%TTM Earnings Growth 24.8%Gross Profit Margin 70.1%EBITDA Margin 34.4%Net Income Margin 19.7%SG&A Expenses as a % of Total Revenue 23.4%R&D Expenses as a % of Total Revenue 13.2%

Current Ratio 1.2Quick Ratio 1.1Cash as Percent of Market Cap 20.4%Avg Days Outstanding: Accounts Receivable 61Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.1x

Levered FCF Margin 18.4%Cash from Operations Growth (YoY) 0.8%Cash from Investing Growth (YoY) 19.3%Cash from Financing Growth (YoY) -4.7%Levered FCF Growth (YoY) -22.9%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

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10%IT Conglomerates Software Stock Market Return: January - April 2014

IT Conglomerates S&P NASDAQ SEG SW Index

Page 26: May monthly   current

SEG Software Index Category: Mobile Solutions/Content

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBango PLC BGO $100.7 $92.8 $14.6 23.5% -51.5% -13.7% 6.4x n/a n/a n/a -2.8%Glu Mobile, Inc. GLUU $325.2 $288.3 $125.6 69.3% -6.8% 18.2% 2.3x n/a 1.9x 50.1x 2.6%Gree TSE:3632 $2,295.8 $1,910.5 $1,358.5 79.6% 31.6% -12.7% 1.4x 4.5x 1.6x 4.7x -1.5%King Digital Entertainment KING $5,401.1 $5,209.5 $1,884.3 69.0% 38.2% 1046.1% 2.8x 7.2x 2.1x 5.3x -9.7%Millennial Media Inc MM $683.1 $585.6 $259.2 40.3% 0.4% 45.9% 2.3x 510.1x 1.4x 31.1x -13.2%Myriad Group AG MYRN $137.1 $136.8 $43.2 29.0% -16.0% -23.3% 3.2x n/a n/a n/a -0.6%NQ Mobile Inc. NQ $659.6 $558.3 $196.7 58.9% 0.7% 114.3% 2.8x 382.7x 1.7x 6.3x -23.0%Opera OB:OPERA $1,708.5 $1,625.1 $325.1 44.0% 25.2% 40.7% 5.0x 19.8x 3.7x 13.0x -5.7%Qihoo 360 Technology Co. Ltd QIHU $10,625.7 $10,230.0 $671.1 86.9% 30.6% 104.0% 15.2x 49.8x 8.8x 25.1x 3.1%Pandora Media P $4,811.7 $4,470.4 $734.0 43.2% -1.0% n/a 6.1x n/a 4.6x 70.7x -12.5%Synchronoss Technologies, Inc. SNCR $1,253.4 $1,204.3 $369.2 58.3% 24.0% 28.5% 3.3x 13.6x 2.8x 8.2x 2.5%Tangoe TNGO $581.1 $539.9 $188.9 55.0% 8.7% 22.3% 2.9x 32.9x 2.4x 14.3x -16.7%TeleCommunication Systems TSYS $155.4 $241.0 $352.6 39.2% 6.4% -26.9% 0.7x 10.7x 0.7x 6.8x 10.4%TeleNav TNAV $240.0 $94.0 $163.0 60.8% -7.2% -16.9% 0.6x n/a 0.6x n/a -5.0%Zynga, Inc ZNGA $3,582.1 $2,799.9 $777.7 70.3% 4.2% -36.5% 3.6x 86.0x 3.5x 23.8x 2.5%

Median: $671.3 $571.9 $292.1 56.6% 3.6% 22.3% 2.8x 19.8x 2.0x 13.0x -3.9%

TTM Revenue Growth 22.3%TTM EBITDA Growth 26.1%TTM Earnings Growth 25.0%Gross Profit Margin 56.6%EBITDA Margin 3.6%Net Income Margin -2.7%SG&A Expenses as a % of Total Revenue 35.6%R&D Expenses as a % of Total Revenue 13.8%

Current Ratio 3.1Quick Ratio 2.8Cash as Percent of Market Cap 9.5%Avg Days Outstanding: Accounts Receivable 56Avg Days Outstanding: Accounts Payable 40Working Capital to TTM Operating Expense Ratio 0.0x

Levered FCF Margin 3.0%Cash from Operations Growth (YoY) 28.3%Cash from Investing Growth (YoY) 9.6%Cash from Financing Growth (YoY) 58.1%Levered FCF Growth (YoY) -21.6%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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15%Mobile Solutions/Content Software Stock Market Return: January - April 2014

Mobile Solutions/Content S&P NASDAQ SEG SW Index

Page 27: May monthly   current

SEG Software Index Category: Networking/Network Performance Mgmt

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDA10 Networks, Inc. ATEN $772.7 $898.1 $157.9 76.7% -1.3% n/a 5.7x n/a 4.9x n/a -19.2%Allot Communications Ltd. ALLT $450.1 $328.0 $100.7 71.9% 0.6% -3.8% 3.3x 581.5x 2.8x 17.5x -9.9%Aruba Networks, Inc. ARUN $2,110.8 $1,832.6 $637.5 69.9% 1.7% 11.6% 2.9x 166.9x 2.4x 11.1x 14.2%Barracuda Networks, Inc. CUDA $1,318.7 $1,187.7 $233.8 77.0% 0.0% 17.5% 5.1x n/a 4.4x 21.2x -30.5%Brocade Communications Systems, BRCD $4,042.1 $3,642.2 $2,198.7 64.0% 24.4% -3.0% 1.7x 6.8x 1.7x 5.6x 5.6%Cisco Systems, Inc. CSCO $119,046.1 $89,153.1 $47,873.0 59.4% 27.1% 1.3% 1.9x 6.9x 1.9x 5.5x 5.9%Cyan, Inc. CYNI $195.5 $136.3 $116.6 41.3% -29.9% 21.6% 1.2x n/a 1.4x n/a -19.9%Compuware Corporation CPWR $2,260.4 $2,172.4 $946.1 62.2% 13.3% -2.5% 2.3x 17.2x 2.8x 12.9x -6.5%F5 Networks, Inc. FFIV $7,908.8 $7,285.0 $1,592.1 82.4% 30.7% 11.3% 4.6x 14.9x 4.0x 10.4x 18.3%Gigamon, LLC GIMO $503.0 $360.3 $146.2 76.7% -25.8% 38.2% 2.5x n/a 1.9x 11.9x -43.3%Juniper Networks, Inc. JNPR $11,686.8 $10,078.2 $4,780.0 62.7% 16.8% 8.8% 2.1x 12.5x 2.0x 7.1x 9.8%Radware Ltd. RDWR $747.5 $580.7 $198.9 81.1% 14.4% 5.1% 2.9x 20.3x 2.7x 13.4x -7.2%Riverbed Technology, Inc. RVBD $3,121.8 $3,168.8 $1,060.3 73.3% 15.3% 17.7% 3.0x 19.5x 2.7x 9.3x 7.9%

Median: $1,714.8 $1,510.1 $435.6 70.9% 7.5% 8.8% 2.7x 16.1x 2.5x 11.5x -6.9%

TTM Revenue Growth 8.8%TTM EBITDA Growth -25.6%TTM Earnings Growth 3.3%Gross Profit Margin 70.9%EBITDA Margin 7.5%Net Income Margin -1.3%SG&A Expenses as a % of Total Revenue 48.0%R&D Expenses as a % of Total Revenue 21.0%

Current Ratio 2.6Quick Ratio 2.3Cash as Percent of Market Cap 22.3%Avg Days Outstanding: Accounts Receivable 53Avg Days Outstanding: Accounts Payable 47Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 20.1%Cash from Operations Growth (YoY) -4.3%Cash from Investing Growth (YoY) 36.6%Cash from Financing Growth (YoY) -27.5%Levered FCF Growth (YoY) 19.0%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

-8%

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-4%

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14%Networking/Network Performance Mgmt Software Stock Market Return: January - April 2014

Networking & Network Performance Management S&P NASDAQ SEG SW Index

Page 28: May monthly   current

SEG Software Index Category: Security

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDA10 Networks, Inc. ATEN $772.7 $898.1 $157.9 76.7% -1.3% n/a 5.7x n/a 4.9x n/a -19.2%AVG Technologies N.V. AVG $987.0 $974.6 $407.1 83.1% 35.0% 14.4% 2.4x 6.8x 2.5x 7.4x 10.6%Barracuda Networks, Inc. CUDA $1,318.7 $1,187.7 $233.8 77.0% 0.0% 17.5% 5.1x n/a 4.4x 21.2x -30.5%Check Point Software Tech Ltd. CHKP $12,222.0 $11,014.8 $1,413.6 88.4% 55.1% 4.5% 7.8x 14.1x 7.3x 12.7x -0.5%Cyren CYRN $78.3 $77.8 $32.2 77.7% -7.7% 34.9% 2.4x n/a 2.2x n/a -0.3%Fortinet Inc. FTNT $3,584.3 $3,023.2 $648.4 70.4% 13.1% 17.4% 4.7x 35.6x 4.1x 20.9x 15.6%Guidance Software, Inc. GUID $266.7 $247.1 $110.5 66.1% -12.3% -14.6% 2.2x n/a 2.1x 24.6x -8.0%Imperva IMPV $599.4 $481.7 $140.7 78.0% -23.4% 26.4% 3.4x n/a 3.1x n/a -52.9%Palo Alto Networks, Inc PANW $4,709.1 $4,270.8 $482.9 73.2% -3.7% 49.2% 8.8x n/a 6.4x 51.2x 14.2%Proofpoint, Inc. PFPT $935.2 $834.9 $149.9 69.2% -13.4% 33.3% 5.6x n/a 4.5x n/a -21.5%Sourcefire, Inc. FIRE $22.9 $22.1 $18.9 38.5% 10.6% 25.2% 1.2x 11.1x n/a n/a 3.1%Symantec Corporation SYMC $14,024.7 $12,228.7 $6,799.0 83.6% 28.8% -0.6% 1.8x 6.2x 1.8x 6.0x -12.9%Trend Micro TSE:4704 $4,365.3 $2,988.5 $1,030.1 82.1% 33.9% 15.4% 2.9x 8.6x 2.7x 8.2x -7.7%VASCO Data Security International VDSI $447.8 $338.3 $158.5 64.7% 10.8% 0.9% 2.1x 19.7x 2.0x 10.9x 50.3%

Median: $961.1 $936.3 $196.1 76.8% 5.3% 17.4% 3.2x 11.1x 3.1x 12.7x -4.1%

TTM Revenue Growth 17.4%TTM EBITDA Growth -43.9%TTM Earnings Growth -27.9%Gross Profit Margin 76.8%EBITDA Margin 5.3%Net Income Margin -1.6%SG&A Expenses as a % of Total Revenue 53.3%R&D Expenses as a % of Total Revenue 18.0%

Current Ratio 1.8Quick Ratio 1.7Cash as Percent of Market Cap 10.3%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 46Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 12.4%Cash from Operations Growth (YoY) 2.7%Cash from Investing Growth (YoY) 5.0%Cash from Financing Growth (YoY) 12.2%Levered FCF Growth (YoY) 0.2%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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15%Security Software Stock Market Return: January - April 2014

Security S&P NASDAQ SEG SW Index

Page 29: May monthly   current

SEG Software Index Category: Storage, Data Management & Integration

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBrocade Communications Systems, BRCD $4,042.1 $3,642.2 $2,198.7 64.0% 24.4% -3.0% 1.7x n/a 1.7x 5.6x 5.6%CA, Inc. CA $13,495.7 $12,412.7 $4,582.0 85.8% 34.2% -2.1% 2.7x 7.9x 2.8x 7.1x -8.4%Cisco Systems, Inc. CSCO $119,046.1 $89,153.1 $47,873.0 59.4% 27.1% 1.3% 1.9x 6.9x 1.9x 5.5x 5.9%CommVault Systems, Inc. CVLT $2,298.8 $1,816.0 $586.3 87.3% 18.2% 18.2% 3.1x 17.0x 2.7x 10.7x -34.7%EMC EMC $52,306.8 $51,088.8 $23,314.0 62.3% 23.7% 5.9% 2.2x 9.2x 2.0x 6.5x 3.7%FalconStor Software, Inc. FALC $73.0 $52.7 $55.4 75.6% -10.6% -22.4% 1.0x n/a n/a n/a 15.2%IBM IBM $198,863.6 $233,284.6 $98,827.0 49.0% 25.4% -4.3% 2.4x 9.3x 2.4x 8.1x 6.5%Informatica Corporation INFA $3,882.3 $3,152.2 $977.0 83.2% 17.9% 17.7% 3.2x 18.0x 2.9x 10.8x -13.0%Microsoft Corporation MSFT $333,720.6 $269,528.6 $83,347.0 70.1% 37.7% 9.6% 3.2x 8.6x 2.9x 8.1x 9.5%NetApp, Inc. NTAP $11,796.7 $7,722.6 $6,392.6 61.2% 15.2% 1.2% 1.2x 7.9x 1.2x 5.1x -11.2%Oracle Corporation ORCL $182,279.3 $169,759.3 $37,902.0 81.9% 43.5% 2.0% 4.5x 10.3x 4.3x 8.6x 8.7%Splunk, Inc. SPLK $6,451.0 $5,553.6 $302.6 88.9% -23.3% 52.1% 18.4x n/a 13.7x n/a -23.6%TIBCO Software Inc. TIBX $3,194.4 $2,978.4 $1,085.0 71.3% 18.5% 4.7% 2.7x 14.9x 2.5x 9.1x -15.2%Varonis Systems, Inc. VRNS $615.0 $600.9 $74.6 91.3% -6.8% 39.7% 8.1x n/a n/a n/a -42.6%

Median: $11,796.7 $7,722.6 $4,582.0 71.3% 23.7% 2.0% 2.7x 9.3x 2.6x 8.1x 3.7%

TTM Revenue Growth 2.0%TTM EBITDA Growth 3.1%TTM Earnings Growth 7.5%Gross Profit Margin 71.3%EBITDA Margin 23.7%Net Income Margin 11.3%SG&A Expenses as a % of Total Revenue 34.1%R&D Expenses as a % of Total Revenue 14.0%

Current Ratio 2.6Quick Ratio 2.3Cash as Percent of Market Cap 21.6%Avg Days Outstanding: Accounts Receivable 67Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.7x

Levered FCF Margin 18.7%Cash from Operations Growth (YoY) -5.1%Cash from Investing Growth (YoY) 17.8%Cash from Financing Growth (YoY) 4.3%Levered FCF Growth (YoY) -7.0%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

-8%

-6%

-4%

-2%

0%

2%

4%

6%Storage, Data Management & Integration Software Stock Market Return: January - April 2014

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

Page 30: May monthly   current

SEG Software Index Category: Supply Chain Management & Logistics

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $269.4 $203.6 $99.9 55.9% 16.5% -3.2% 2.0x 12.4x 1.9x 9.4x -1.9%Aspen Technology, Inc. AZPN $3,958.2 $3,701.3 $373.2 85.9% 30.1% 27.7% 9.9x 33.0x 8.8x 25.2x 3.5%Manhattan Associates, Inc. MANH $2,389.6 $2,263.7 $431.5 57.0% 27.2% 13.1% 5.2x 19.3x 4.9x 16.8x 7.3%The Descartes Systems Group Inc. TSX:DSG $862.0 $839.4 $151.3 67.6% 28.1% 19.2% 5.5x 19.7x 4.9x 16.4x 3.0%

Median: $1,625.8 $1,551.5 $262.2 62.3% 27.7% 16.2% 5.4x 19.5x 4.9x 16.6x 3.2%

TTM Revenue Growth 16.2%TTM EBITDA Growth 23.0%TTM Earnings Growth 19.6%Gross Profit Margin 62.3%EBITDA Margin 27.7%Net Income Margin 13.8%SG&A Expenses as a % of Total Revenue 28.3%R&D Expenses as a % of Total Revenue 13.8%

Current Ratio 2.3Quick Ratio 2.0Cash as Percent of Market Cap 6.9%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 12Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 21.5%Cash from Operations Growth (YoY) 30.0%Cash from Investing Growth (YoY) 4.5%Cash from Financing Growth (YoY) 54.3%Levered FCF Growth (YoY) 49.5%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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0%

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15%Supply Chain Management & Logistics Software Stock Market Return: January - April 2014

Supply Chain Management & Logistics S&P NASDAQ SEG SW Index

Page 31: May monthly   current

SEG Software Index Category: Systems Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCA Technologies CA $13,495.7 $12,412.7 $4,582.0 85.8% 34.2% -2.1% 2.7x 7.9x 2.8x 7.1x -8.4%Citrix Systems, Inc. CTXS $10,951.0 $10,121.7 $2,996.4 85.8% 22.7% 12.2% 3.4x 14.9x 3.1x 11.3x -5.1%Netscout Systems, Inc. NTCT $1,610.2 $1,432.9 $396.6 78.7% 24.1% 13.1% 3.6x 15.0x 3.1x 10.6x 35.1%Red Hat, Inc. RHT $9,211.6 $8,229.5 $1,534.6 84.8% 20.1% 15.5% 5.4x 26.6x 4.7x 16.9x -12.9%SolarWinds, Inc. SWI $3,039.1 $2,856.3 $358.4 91.0% 38.1% 27.0% 8.0x 20.9x 6.6x 13.2x 6.7%VMWare, Inc. VMW $39,861.1 $34,745.1 $5,376.0 86.1% 27.8% 13.4% 6.5x 23.3x 5.6x 15.2x 3.4%

Median: $10,081.3 $9,175.6 $2,265.5 85.8% 26.0% 13.3% 4.5x 17.9x 3.9x 12.3x -0.9%

TTM Revenue Growth 13.3%TTM EBITDA Growth 13.6%TTM Earnings Growth 14.3%Gross Profit Margin 85.8%EBITDA Margin 26.0%Net Income Margin 15.9%SG&A Expenses as a % of Total Revenue 44.7%R&D Expenses as a % of Total Revenue 17.4%

Current Ratio 1.4Quick Ratio 1.3Cash as Percent of Market Cap 10.8%Avg Days Outstanding: Accounts Receivable 74Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 20.8%Cash from Operations Growth (YoY) 17.2%Cash from Investing Growth (YoY) 33.1%Cash from Financing Growth (YoY) 12.3%Levered FCF Growth (YoY) 15.0%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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0%

5%

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15%

Systems Management Software Stock Market Return: January - April 2014

Systems Management S&P NASDAQ SEG SW Index

Page 32: May monthly   current

SEG Software Index Category: Vertical - Finance

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAdvent Software, Inc. ADVS $1,481.4 $1,731.4 $387.3 71.3% 18.6% 6.3% 4.5x 24.1x 4.3x 14.4x -16.0%Broadridge Financial BR $4,579.5 $4,863.3 $2,507.6 29.7% 19.9% 7.3% 1.9x 9.7x 1.9x 9.0x -1.9%Fidessa LSE:FDSA $1,430.3 $1,307.0 $462.2 21.2% 19.4% 0.1% 2.8x 14.6x 2.7x 10.3x 2.9%Jack Henry & Associates, Inc. JKHY $4,715.3 $4,569.5 $1,197.3 42.6% 34.0% 9.1% 3.8x 11.2x 3.5x 10.3x -4.8%MSCI, Inc. MSCI $4,730.1 $5,179.4 $1,055.9 67.9% 42.5% 12.3% 4.9x 11.5x 5.0x 12.0x -6.0%SS&C Corporation SSNC $3,314.7 $4,004.7 $725.3 45.8% 39.6% 14.9% 5.5x 14.0x 5.2x 12.6x -12.6%

Median: $3,947.1 $4,287.1 $890.6 44.2% 27.0% 8.2% 4.1x 12.7x 3.9x 11.2x -5.4%

TTM Revenue Growth 8.2%TTM EBITDA Growth 11.6%TTM Earnings Growth 18.8%Gross Profit Margin 44.2%EBITDA Margin 27.0%Net Income Margin 14.0%SG&A Expenses as a % of Total Revenue 13.0%R&D Expenses as a % of Total Revenue 7.4%

Current Ratio 1.5Quick Ratio 1.2Cash as Percent of Market Cap 4.3%Avg Days Outstanding: Accounts Receivable 59Avg Days Outstanding: Accounts Payable 10Working Capital to TTM Operating Expense Ratio 0.2x

Levered FCF Margin 9.9%Cash from Operations Growth (YoY) 6.9%Cash from Investing Growth (YoY) -16.2%Cash from Financing Growth (YoY) -0.8%Levered FCF Growth (YoY) 13.0%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Vertical - Finance Software Stock Market Return:January - April 2014

Vertical - Finance S&P NASDAQ SEG SW Index

Page 33: May monthly   current

SEG Software Index Category: Vertical - Other

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBlackbaud, Inc. BLKB $1,374.6 $1,515.2 $515.8 52.9% 19.8% 10.1% 2.9x 14.8x 2.7x 12.5x -18.1%Constellation TSX:CSU $4,690.8 $5,033.7 $1,349.2 32.3% 11.2% 41.7% 3.7x 33.4x 2.8x 14.3x 5.1%EPIQ Systems, Inc. EPIQ $456.4 $746.4 $452.0 52.3% 15.1% 23.9% 1.7x 10.9x 1.5x 6.9x -18.3%Guidewire Software, Inc. GWRE $2,565.7 $2,121.5 $315.2 51.9% -1.1% 21.2% 6.7x n/a 5.9x 48.8x -21.6%Micros Systems MCRS $3,875.3 $3,251.3 $1,337.9 52.3% 19.6% 7.7% 2.4x 12.4x 2.4x 10.6x -9.1%PROS Holdings PRO $808.3 $763.6 $144.8 70.2% 6.6% 23.0% 5.3x 80.5x 4.0x 34.0x -30.3%Sapiens International SPNS $369.0 $299.3 $135.4 37.2% 11.3% 18.8% 2.2x 19.6x 1.9x 17.0x 4.5%Silver Spring Networks, Inc. SSNI $722.0 $579.0 $326.9 35.3% -10.8% 66.1% 1.8x n/a 1.6x 35.5x -27.8%Tyler Technologies, Inc. TYL $2,695.2 $2,598.0 $433.5 46.6% 19.5% 15.2% 6.0x 30.7x 5.3x 21.9x -19.4%

Median: $1,374.6 $1,515.2 $433.5 51.9% 11.3% 21.2% 2.9x 19.6x 2.7x 17.0x -18.3%

TTM Revenue Growth 21.2%TTM EBITDA Growth 0.2%TTM Earnings Growth -3.5%Gross Profit Margin 51.9%EBITDA Margin 11.3%Net Income Margin 6.1%SG&A Expenses as a % of Total Revenue 26.6%R&D Expenses as a % of Total Revenue 12.7%

Current Ratio 2.1Quick Ratio 1.4Cash as Percent of Market Cap 5.5%Avg Days Outstanding: Accounts Receivable 67Avg Days Outstanding: Accounts Payable 39Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 12.4%Cash from Operations Growth (YoY) 11.0%Cash from Investing Growth (YoY) -122.8%Cash from Financing Growth (YoY) 220.2%Levered FCF Growth (YoY) 22.9%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

Income Statement Analysis (Median)

-25%

-20%

-15%

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-5%

0%

5%

10%Vertical - Other Software Stock Market Return: January - April 2014

Vertical - Other S&P NASDAQ SEG SW Index

Page 34: May monthly   current

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Page 35: May monthly   current

SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $838.3 $703.7 $161.3 67.7% -4.5% 28.2% 6.4x 67.9x 5.5x 20.7x -21.6% CRM & Marketing $676.5 $568.9 $179.6 71.4% -1.0% 26.0% 2.7x 71.9x 2.3x 20.7x -10.6% ERP & Supply Chain $838.3 $703.7 $109.6 67.7% -8.8% 30.6% 6.4x 67.9x 5.5x 33.4x -21.6% Vertically Focused $866.1 $838.7 $129.8 64.7% 8.9% 40.1% 6.8x 48.0x 5.5x 13.6x -20.7% Workforce Management $1,438.5 $1,393.0 $161.3 61.0% -4.5% 26.3% 8.3x 262.7x 6.6x 27.6x -24.2% SaaS Other $643.0 $649.9 $130.0 70.4% -14.4% 28.2% 5.0x 31.7x 4.0x 17.2x -23.4%

Category Name

TTM Revenue Growth 28.2%TTM EBITDA Growth -25.1%TTM Earnings Growth -35.6%Gross Profit Margin 67.7%EBITDA Margin -4.5%Net Income Margin -14.1%SG&A Expenses as a % of Total Revenue 56.6%R&D Expenses as a % of Total Revenue 18.9%

Current Ratio 2.3Quick Ratio 2.1Cash as Percent of Market Cap 11.2%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 8.9%Cash from Operations Growth (YoY) 20.8%Cash from Investing Growth (YoY) -29.2%Cash from Financing Growth (YoY) 75.9%Levered FCF Growth (YoY) 17.8%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-25%

-20%

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0%

5%

10%

15%SEG SaaS Index Stock Market Return: January - April 2014

DOW S&P NASDAQ SEG SaaS

Page 36: May monthly   current

SEG SaaS Index Category: CRM & Marketing

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBazaarvoice, Inc BV $495.1 $438.2 $181.4 68.3% -16.8% 22.3% 2.4x n/a 2.3x n/a -13.5%Constant Contact CTCT $811.2 $688.0 $296.1 71.8% 10.6% 13.7% 2.3x 22.0x 2.1x 11.3x -14.5%Cvent NYSE:CVT $1,131.5 $973.7 $111.1 71.0% 1.9% 33.1% 8.8x 470.4x 7.0x 73.7x -25.2%LivePerson LPSN $541.7 $449.8 $177.8 76.1% 3.5% 13.0% 2.5x 71.9x 2.2x 20.7x -32.6%Marketo MKTO $1,097.6 $986.9 $108.5 62.6% -39.1% 64.5% 9.1x n/a 6.5x n/a 17.5%Marin Software MRIN $313.5 $215.3 $77.3 59.8% -38.3% 29.8% 2.8x n/a 2.2x n/a -7.8%Salesforce.com CRM $31,511.7 $33,181.5 $4,071.0 76.2% -1.5% 33.5% 8.2x n/a 6.3x 39.7x -5.9%Vocus VOCS $389.0 $428.9 $186.3 79.3% -0.5% 2.3% 2.3x n/a n/a 18.4x 60.8%

Median: $676.5 $568.9 $179.6 71.4% -1.0% 26.0% 2.7x 71.9x 2.3x 20.7x -10.6%

TTM Revenue Growth 26.0%TTM EBITDA Growth -56.1%TTM Earnings Growth -27.5%Gross Profit Margin 71.4%EBITDA Margin -1.0%Net Income Margin -5.7%SG&A Expenses as a % of Total Revenue 67.9%R&D Expenses as a % of Total Revenue 16.3%

Current Ratio 2.3Quick Ratio 2.2Cash as Percent of Market Cap 13.9%Avg Days Outstanding: Accounts Receivable 66Avg Days Outstanding: Accounts Payable 29Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 7.1%Cash from Operations Growth (YoY) -6.4%Cash from Investing Growth (YoY) -13.9%Cash from Financing Growth (YoY) 86.9%Levered FCF Growth (YoY) 7.6%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

-25%

-20%

-15%

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0%

5%

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15%CRM & Marketing SaaS Stock Market Return: January - April 2014

CRM & Marketing S&P NASDAQ SEG SaaS

Page 37: May monthly   current

SEG SaaS Index Category: ERP & Supply Chain

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmber Road, Inc. AMBR $330.2 $335.1 $52.5 57.6% -22.3% 21.1% 6.4x n/a 5.5x n/a -21.6%E2open, Inc EOPN $496.0 $444.5 $71.2 60.7% -29.4% -4.9% 6.2x n/a 5.1x n/a -28.7%Fleetmatics FLTX $1,115.1 $990.7 $190.8 75.6% 24.0% 38.3% 5.2x 21.6x 4.1x 14.9x -30.8%Netsuite N $5,841.1 $5,632.7 $445.8 67.7% -8.8% 34.6% 12.6x n/a 9.8x 120.5x -24.1%SciQuest SQI $646.8 $612.6 $95.0 70.0% 0.4% 30.6% 6.5x 1603.7x 5.5x 28.9x -11.8%SPS Commerce SPSC $838.3 $703.7 $109.6 69.0% 9.5% 29.9% 6.4x 67.9x 5.3x 37.9x -19.6%Workday, Inc. WDAY $13,466.6 $12,061.4 $468.9 62.3% -25.3% 71.4% 25.7x n/a 16.4x n/a -10.6%

Median: $838.3 $703.7 $109.6 67.7% -8.8% 30.6% 6.4x 67.9x 5.5x 33.4x -21.6%

TTM Revenue Growth 30.6%TTM EBITDA Growth -53.5%TTM Earnings Growth -96.3%Gross Profit Margin 67.7%EBITDA Margin -8.8%Net Income Margin -17.9%SG&A Expenses as a % of Total Revenue 53.8%R&D Expenses as a % of Total Revenue 19.3%

Current Ratio 2.1Quick Ratio 1.9Cash as Percent of Market Cap 11.5%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 23Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 12.3%Cash from Operations Growth (YoY) 21.8%Cash from Investing Growth (YoY) -12.9%Cash from Financing Growth (YoY) 64.9%Levered FCF Growth (YoY) 42.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%ERP & Supply Chain SaaS Stock Market Return: January - April 2014

ERP & Supply Chain S&P NASDAQ SEG SaaS

Page 38: May monthly   current

SEG SaaS Index Category: Vertically Focused

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD2U, Inc. TWOU $583.8 $576.8 $83.1 72.7% -32.8% 48.8% 6.9x n/a 5.5x n/a 6.7%Athenahealth, Inc ATHN $4,678.8 $4,773.6 $632.4 59.3% 9.2% 40.1% 7.5x 81.7x 6.1x 35.0x -6.0%Castlight Health, Inc. CSLT $1,300.3 $1,233.1 $13.0 -33.4% -475.6% 212.3% 95.1x n/a 33.5x n/a -62.3%DealerTrack TRAK $2,447.9 $2,485.3 $481.5 42.4% 12.0% 23.8% 5.2x 42.9x 3.1x 13.6x -5.6%Ebix Inc. EBIX $605.5 $604.9 $204.7 80.2% 37.1% 2.7% 3.0x 8.0x 2.9x 7.2x 10.1%Ellie Mae ELLI $681.6 $602.9 $129.8 73.5% 16.3% 16.1% 4.6x 28.5x 4.1x 13.4x -9.1%Medidata Solutions MDSO $1,964.2 $1,975.1 $290.2 74.6% 8.9% 25.5% 6.8x 76.8x 5.5x 23.1x -38.5%OPOWER, Inc. OPWR $866.1 $838.7 $88.7 64.7% -13.1% 71.4% 9.5x n/a 7.4x n/a -20.7%Q2 Holdings, Inc. QTWO $392.3 $381.2 $56.9 38.2% -22.9% 38.4% 6.7x n/a 5.2x n/a -19.1%RealPage RP $1,398.8 $1,365.8 $377.0 60.7% 14.4% 17.0% 3.6x 25.2x 3.1x 12.9x -20.8%The Rubicon Project, Inc. RUBI $498.9 $473.1 $83.8 81.7% 2.2% 46.9% 5.6x 254.6x 4.3x n/a -28.5%Textura Corp. TXTR $441.8 $366.5 $40.8 68.6% -81.5% 70.1% 9.0x n/a 5.5x n/a -40.5%Veeva Systems Inc. VEEV $2,443.4 $2,155.3 $210.2 60.7% 19.4% 62.2% 10.3x 53.0x 7.8x 39.5x -40.6%

Median: $866.1 $838.7 $129.8 64.7% 8.9% 40.1% 6.8x 48.0x 5.5x 13.6x -20.7%

TTM Revenue Growth 40.1%TTM EBITDA Growth -21.1%TTM Earnings Growth -52.1%Gross Profit Margin 64.7%EBITDA Margin 8.9%Net Income Margin -1.0%SG&A Expenses as a % of Total Revenue 48.7%R&D Expenses as a % of Total Revenue 19.7%

Current Ratio 1.5Quick Ratio 1.5Cash as Percent of Market Cap 5.4%Avg Days Outstanding: Accounts Receivable 57Avg Days Outstanding: Accounts Payable 30Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 7.0%Cash from Operations Growth (YoY) 26.9%Cash from Investing Growth (YoY) -32.9%Cash from Financing Growth (YoY) 43.1%Levered FCF Growth (YoY) 18.4%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

-25%

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15%Vertically Focused SaaS Stock Market Return: January - April 2014

Vertically Focused S&P NASDAQ SEG SaaS

Page 39: May monthly   current

SEG SaaS Index Category: Workforce Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCallidus Software Inc. CALD $438.7 $419.0 $117.8 59.7% -1.7% 19.6% 3.6x n/a 3.3x 29.0x -26.9%Cornerstone OnDemand CSOD $1,951.9 $1,862.4 $204.9 70.9% -15.5% 55.7% 9.1x n/a 6.9x n/a -30.5%Halogen Software, Inc. TSX:HGN $188.5 $134.4 $48.0 74.8% -7.4% 26.3% 2.8x n/a 2.3x n/a -30.0%Paylocity Holding Corp. PCTY $925.1 $923.5 $90.5 48.4% 2.2% n/a 10.2x 473.4x 8.2x n/a -21.3%The Ultimate Software Group, Inc. ULTI $3,385.1 $3,294.3 $433.6 59.4% 14.6% 23.2% 7.6x 52.0x 6.2x 26.2x -21.5%Workday, Inc. WDAY $13,466.6 $12,061.4 $468.9 62.3% -25.3% 71.4% 25.7x n/a 16.4x n/a -10.6%

Median: $1,438.5 $1,393.0 $161.3 61.0% -4.5% 26.3% 8.3x 262.7x 6.6x 27.6x -24.2%

TTM Revenue Growth 26.3%TTM EBITDA Growth 4.8%TTM Earnings Growth 0.8%Gross Profit Margin 61.0%EBITDA Margin -4.5%Net Income Margin -18.6%SG&A Expenses as a % of Total Revenue 53.9%R&D Expenses as a % of Total Revenue 15.7%

Current Ratio 1.5Quick Ratio 1.4Cash as Percent of Market Cap 10.9%Avg Days Outstanding: Accounts Receivable 66Avg Days Outstanding: Accounts Payable 20Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 12.1%Cash from Operations Growth (YoY) 105.3%Cash from Investing Growth (YoY) -391.4%Cash from Financing Growth (YoY) 285.3%Levered FCF Growth (YoY) 78.1%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

-35%

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15%Workforce Management SaaS Stock Market Return: January - April 2014

Workforce Management S&P NASDAQ SEG SaaS

Page 40: May monthly   current

SEG SaaS Index Category: Other Public SaaS Companies

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBenefitfocus, Inc. BNFT $812.7 $758.2 $104.8 40.4% -21.7% 28.2% 7.2x n/a 5.7x n/a -42.2%ChannelAdvisors ECOM $643.0 $541.5 $68.0 73.4% -15.8% 26.9% 8.0x n/a 6.4x n/a -36.0%Concur CNQR $4,575.1 $4,443.9 $628.2 67.4% 4.4% 30.6% 7.1x 160.8x 5.8x 33.8x -20.3%Covisint Corporation COVS $264.7 $209.9 $98.4 44.5% -27.5% 13.9% 2.1x n/a 2.1x n/a -43.9%Demandware, Inc. DWRE $1,775.9 $1,500.6 $103.7 73.0% -15.6% 30.5% 14.5x n/a 10.4x n/a -23.4%FireEye, Inc. FEYE $5,693.6 $5,519.7 $161.6 70.4% -88.4% 93.9% 34.2x n/a 13.6x n/a -4.5%inContact, Inc. SAAS $465.8 $424.7 $130.0 48.2% -1.4% 17.9% 3.3x n/a 2.7x n/a 2.9%IntraLinks Holdings IL $515.2 $505.0 $234.5 72.3% 5.5% 8.2% 2.2x 39.1x 2.1x 12.8x -23.8%J2 Global JCOM $2,193.1 $2,140.2 $520.8 83.3% 41.3% 40.2% 4.1x 9.9x 3.6x 8.2x -6.1%Jive Software, Inc JIVE $526.3 $426.5 $145.8 62.1% -41.7% 28.2% 2.9x n/a 2.5x n/a -31.5%Liquid Holdings Group, LLC LIQD $99.0 n/a $4.8 43.7% n/a 137.4% n/a n/a n/a n/a -42.9%OpenTable, Inc. OPEN $1,578.5 $1,464.0 $198.3 74.2% 30.4% 18.2% 7.4x 24.3x 6.5x 17.2x -14.0%Qualys, Inc. QLYS $629.6 $533.2 $108.0 77.2% 11.0% 18.1% 4.9x 44.7x 4.1x 24.8x -16.7%Rally Software Development, Inc. RALY $325.0 $236.1 $74.3 77.6% -21.1% 30.8% 3.2x n/a 2.6x n/a -32.4%RingCentral, Inc. RNG $1,015.2 $880.8 $173.2 62.1% -20.2% 38.3% 5.1x n/a 4.0x n/a -15.0%Service-now.com NOW $7,129.8 $6,895.9 $477.8 63.2% -13.1% 69.3% 14.4x n/a 9.7x 110.6x -10.7%Zix Corporation ZIXI $194.3 $171.8 $48.5 84.1% 22.2% 8.3% 3.5x 15.9x 3.1x 10.8x -28.2%

Median: $643.0 $649.9 $130.0 70.4% -14.4% 28.2% 5.0x 31.7x 4.0x 17.2x -23.4%

TTM Revenue Growth 28.2%TTM EBITDA Growth -39.5%TTM Earnings Growth -36.8%Gross Profit Margin 70.4%EBITDA Margin -14.4%Net Income Margin -21.7%SG&A Expenses as a % of Total Revenue 62.3%R&D Expenses as a % of Total Revenue 19.2%

Current Ratio 2.5Quick Ratio 2.5Cash as Percent of Market Cap 15.4%Avg Days Outstanding: Accounts Receivable 65Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 8.2%Cash from Operations Growth (YoY) 20.1%Cash from Investing Growth (YoY) 9.8%Cash from Financing Growth (YoY) 98.9%Levered FCF Growth (YoY) -5.2%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

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20%Other Public SaaS Companies SaaS Stock Market Return: January - April 2014

Other SaaS S&P NASDAQ SEG SaaS

Page 41: May monthly   current

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Page 42: May monthly   current

SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $2,425.5 $2,041.7 $525.2 64.2% 9.3% 17.8% 3.6x 21.5x 3.2x 15.9x -11.0% Ad Tech & Lead Generation $1,646.2 $1,529.1 $514.1 64.7% 7.1% 27.0% 2.5x 22.0x 2.2x 13.2x -20.6% Commerce $528.1 $403.8 $416.5 40.5% 8.6% 15.0% 0.9x 14.1x 0.9x 10.1x -16.9% Content & Media $3,420.2 $3,225.3 $536.4 49.6% 13.2% 6.6% 3.4x 21.2x 3.2x 18.5x -11.2% Gaming $3,204.78 $2,554.3 $759.4 71.9% 30.7% 10.9% 3.7x 9.2x 3.4x 8.2x -7.8% Infrastructure $663.43 $515.7 $284.2 63.7% 6.5% 10.3% 1.3x 17.7x 1.3x 11.1x -4.0% Services $847.49 $728.3 $186.9 73.9% 6.8% 40.9% 3.7x 35.3x 3.3x 25.1x -10.8% Social $5,681.36 $4,726.8 $801.0 61.2% 9.9% 62.4% 9.8x 32.5x 7.7x 25.2x -14.1% Travel $4,709.39 $4,138.7 $868.4 83.1% 16.5% 20.6% 4.8x 21.8x 5.3x 18.6x 0.7%

TTM Revenue Growth 27.0%TTM EBITDA Growth 10.9%TTM Earnings Growth 14.9%Gross Profit Margin 64.7%EBITDA Margin 7.1%Net Income Margin 0.3%SG&A Expenses as a % of Total Revenue 39.1%R&D Expenses as a % of Total Revenue 14.3%

Current Ratio 2.5Quick Ratio 2.3Cash as Percent of Market Cap 16.5%Avg Days Outstanding: Accounts Receivable 37Avg Days Outstanding: Accounts Payable 46Working Capital to TTM Operating Expense Ratio 0.5

Levered FCF Margin 9.2%Cash from Operations Growth (YoY) 16.2%Cash from Investing Growth (YoY) -24.4%Cash from Financing Growth (YoY) 63.7%Levered FCF Growth (YoY) 15.9%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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10%SEG Internet Index Stock Market Return: January - April 2014

DOW S&P NASDAQ SEG Internet Index

Page 43: May monthly   current

SEG Internet Index Category: Ad Tech and Lead Generation

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $661.8 $612.7 $266.1 73.9% -7.3% 50.5% 2.3x n/a 1.8x 53.1x -16.7%Baidu.com, Inc. BIDU $53,910.2 $50,733.6 $5,705.8 70.1% 40.3% 47.7% 8.9x 22.0x 6.0x 19.2x -14.5%Bankrate, Inc. RATE $1,835.1 $1,902.0 $457.4 67.0% 23.8% 0.1% 4.2x 17.5x 3.6x 12.8x 0.5%Criteo SA CRTO $1,836.7 $1,529.1 $611.4 35.4% 5.1% 63.3% 2.5x 48.7x n/a n/a -2.9%Conversant, Inc. CNVR $1,646.2 $1,704.9 $573.1 68.0% 36.1% 6.2% 3.0x 8.2x 2.8x 7.4x 5.8%Coupons.com, Inc. COUP $1,230.7 $1,215.0 $167.9 69.0% -2.1% 49.7% 7.2x n/a 5.8x 142.7x -43.9%Google Inc. GOOGL $358,001.1 $309,121.1 $62,294.0 57.2% 29.8% 18.7% 5.0x 16.6x 4.6x 11.3x -3.9%Groupon GRPN $4,768.9 $3,535.8 $2,573.7 58.3% 5.4% 10.2% 1.4x 25.3x 1.1x 12.2x -41.0%InterActiveCorp IACI $5,501.2 $5,566.0 $3,021.0 68.4% 17.5% 4.1% 1.8x 10.5x 1.7x 8.3x -2.1%LinkedIn LNKD $18,679.7 $16,355.4 $1,677.0 86.7% 9.9% 51.3% 9.8x 98.4x 7.7x 31.7x -26.1%Marchex Inc. MCHX $389.2 $358.3 $168.3 38.2% 5.0% 21.1% 2.1x 42.7x 2.0x 22.8x -6.0%QuinStreet QNST $265.3 $228.3 $297.8 17.9% 9.0% -9.5% 0.8x 8.5x 0.8x 6.3x -30.7%ReachLocal, Inc. RLOC $288.9 $208.6 $514.1 50.1% 2.6% 13.0% 0.4x 15.9x 0.4x 8.4x -21.8%Rocket Fuel, Inc. FUEL $1,126.8 $1,040.4 $240.6 47.8% -4.3% 125.7% 4.3x n/a 2.4x 232.6x -46.1%The Rubicon Project, Inc. RUBI $498.9 $473.1 $83.8 81.7% 2.2% 46.9% 5.6x 254.6x 4.3x n/a -28.5%SINA Corporation SINA $3,158.8 $2,574.9 $665.1 59.2% 8.7% 25.7% 3.9x 44.7x 3.1x 20.1x -43.6%Sohu.com Inc. SOHU $2,118.2 $1,685.9 $1,458.0 64.7% 12.3% 27.0% 1.2x 9.4x 1.0x n/a -24.7%Tree.Com, Inc. TREE $328.8 $237.1 $139.2 95.3% 7.1% 79.8% 1.7x 23.9x 1.5x 11.4x -10.8%Tremor, Inc. TRMR $227.1 $134.4 $131.8 40.9% -5.5% 25.3% 1.0x n/a 0.8x n/a -20.6%Yandex YNDX $8,507.9 $8,366.7 $1,205.1 71.8% 39.0% 37.2% 6.9x 17.8x 5.5x 13.2x -37.9%YuMe YUME $216.3 $166.8 $151.1 46.9% 2.9% 29.5% 1.1x 38.1x 0.9x 33.9x -9.1%

Median: $1,646.2 $1,529.1 $514.1 64.7% 7.1% 27.0% 2.5x 22.0x 2.2x 13.2x -20.6%

TTM Revenue Growth 27.0%TTM EBITDA Growth 8.7%TTM Earnings Growth -4.3%Gross Profit Margin 64.7%EBITDA Margin 7.1%Net Income Margin -0.5%SG&A Expenses as a % of Total Revenue 39.1%R&D Expenses as a % of Total Revenue 9.3%

Current Ratio 2.9xQuick Ratio 2.7xCash as Percent of Market Cap 16.0%Avg Days Outstanding: Accounts Receivable 54.6xAvg Days Outstanding: Accounts Payable 66.9xWorking Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 6.1%Cash from Operations Growth (YoY) 11.1%Cash from Investing Growth (YoY) 0.4%Cash from Financing Growth (YoY) 104.7%Levered FCF Growth (YoY) 9.3%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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10%Internet Ad Tech and Lead Generation Stock Market Return: January - April 2014

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

Page 44: May monthly   current

SEG Internet Index Category: Commerce

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD1-800-FLOWERS.COM, Inc. FLWS $349.9 $352.2 $741.9 41.3% 5.2% 1.0% 0.5x 9.1x 0.4x 6.1x 3.0%58.com Inc. WUBA $3,239.6 $2,928.5 $145.7 94.2% 13.2% 67.3% 20.1x 151.9x 12.2x 72.4x 4.7%Amazon.com, Inc. AMZN $139,950.6 $134,431.6 $78,123.0 27.8% 4.9% 22.1% 1.7x 35.5x 1.4x 19.1x -23.6%Bitauto Holdings Limited BITA $1,486.9 $1,303.8 $237.7 76.7% 20.0% 36.2% 5.5x 27.4x 4.0x 17.1x 14.8%BlueNile NILE $437.7 $322.4 $456.6 18.6% 3.6% 10.3% 0.7x 19.6x 0.6x 12.4x -25.1%Chegg, Inc. CHGG $435.8 $321.8 $269.0 31.1% 8.0% 19.1% 1.2x 15.0x 1.0x 4.9x -36.6%DangDang DANG $887.9 $688.6 $1,044.8 17.4% -2.3% 21.8% 0.7x n/a 0.5x 45.1x 10.7%Digital River Inc. DRIV $499.3 $242.6 $376.5 66.1% 9.3% -5.3% 0.6x 6.9x 0.6x 5.1x -16.9%eBay Inc. EBAY $65,670.7 $61,954.7 $16,561.0 68.4% 29.6% 13.9% 3.7x 12.6x 3.3x 10.0x -3.9%GeekNet GKNT $99.3 $46.2 $138.3 19.6% 0.8% 16.3% 0.3x 41.5x 0.3x 10.1x -17.3%Liquidity Services, Inc. LQDT $557.0 $455.5 $505.6 42.0% 17.4% 2.9% 0.9x 5.2x 0.9x 4.6x -23.2%Mecox Lane Limited MCOX $46.3 $32.3 $87.4 39.7% -21.3% -42.4% 0.4x n/a n/a n/a -0.8%Mercadolibre, Inc. MELI $4,118.2 $3,921.2 $472.6 78.5% 35.0% 26.5% 8.3x 23.7x 7.7x 22.4x -9.6%Overstock.com, Inc. OSTK $384.2 $273.5 $1,333.4 19.0% 1.6% 16.1% 0.2x 13.2x 0.2x 6.9x -45.8%PetMed Express, Inc. PETS $260.8 $219.4 $233.4 33.3% 12.5% 2.4% 0.9x 7.5x 0.9x 7.5x -20.4%Stamps.com STMP $561.6 $455.8 $129.0 78.8% 28.1% 8.0% 3.5x 12.6x 3.2x 10.4x -16.9%

Median: $528.1 $403.8 $416.5 40.5% 8.6% 15.0% 0.9x 14.1x 0.9x 10.1x -16.9%

TTM Revenue Growth 15.0%TTM EBITDA Growth 12.5%TTM Earnings Growth 24.2%Gross Profit Margin 40.5%EBITDA Margin 8.6%Net Income Margin -1.7%SG&A Expenses as a % of Total Revenue 40.0%R&D Expenses as a % of Total Revenue 17.6%

Current Ratio 2.5xQuick Ratio 2.2xCash as Percent of Market Cap 21.3%Avg Days Outstanding: Accounts Receivable 59.0xAvg Days Outstanding: Accounts Payable 44.8xWorking Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 6.8%Cash from Operations Growth (YoY) -2.1%Cash from Investing Growth (YoY) -47.8%Cash from Financing Growth (YoY) 44.5%Levered FCF Growth (YoY) -19.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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5%

10%

Internet Commerce Internet Stock Market Return: January - April 2014

Commerce S&P NASDAQ SEG Internet Index

Page 45: May monthly   current

SEG Internet Index Category: Content & Media

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAOL, Inc. AOL $3,420.2 $3,334.9 $2,319.9 29.3% 18.8% 5.8% 1.4x 7.6x 1.3x 6.4x -4.4%DemandMedia DMD $360.9 $303.6 $394.6 48.1% 11.4% 3.7% 0.8x 6.8x 0.8x 5.5x -26.0%InterActiveCorp IACI $5,501.2 $5,566.0 $3,021.0 68.4% 17.5% 4.1% 1.8x 10.5x 1.7x 8.3x -2.1%Netflix NFLX $19,305.5 $18,537.3 $4,620.7 30.4% 7.4% 22.8% 4.0x 54.1x 3.2x 28.2x -11.2%Pandora P $4,811.7 $4,470.4 $734.0 43.2% -1.0% n/a 6.1x n/a 4.6x 70.7x -12.5%Shutterstock, Inc. SSTK $2,552.1 $2,342.4 $235.5 61.5% 20.0% 38.9% 9.9x 49.8x 7.6x 34.1x -12.7%TheStreet.com, Inc. TST $88.3 $33.4 $54.5 49.6% -0.7% 7.4% 0.6x n/a n/a n/a 16.3%WebMD Health Corp. WBMD $1,666.6 $1,840.4 $536.4 59.8% 16.2% 12.8% 3.4x 21.2x 3.2x 11.7x 14.3%XO Group XOXO $284.6 $193.9 $133.8 83.3% 13.2% 3.6% 1.4x 11.0x 1.4x 10.8x -27.7%Yahoo! Inc. YHOO $36,411.5 $34,764.1 $4,672.7 71.5% 19.0% -4.7% 7.4x 39.2x 7.7x 25.4x -9.2%Youku YOKU $3,753.3 $3,225.3 $500.2 29.8% 10.0% 68.7% 6.4x 64.4x 4.7x 101.4x -29.9%

Median: $3,420.2 $3,225.3 $536.4 49.6% 13.2% 6.6% 3.4x 21.2x 3.2x 18.5x -11.2%

TTM Revenue Growth 6.6%TTM EBITDA Growth 22.5%TTM Earnings Growth -19.2%Gross Profit Margin 49.6%EBITDA Margin 13.2%Net Income Margin 4.0%SG&A Expenses as a % of Total Revenue 38.0%R&D Expenses as a % of Total Revenue 9.2%

Current Ratio 2.6xQuick Ratio 2.4xCash as Percent of Market Cap 14.1%Avg Days Outstanding: Accounts Receivable 36.5xAvg Days Outstanding: Accounts Payable 27.9xWorking Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 10.6%Cash from Operations Growth (YoY) -7.8%Cash from Investing Growth (YoY) -50.7%Cash from Financing Growth (YoY) 87.9%Levered FCF Growth (YoY) 5.0%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

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5%

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20%Internet Content & Media Stock Market Return: January - April 2014

Content & Media S&P NASDAQ SEG Internet Index

Page 46: May monthly   current

SEG Internet Index Category: Gaming

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDChangYou.com CYOU $1,481.3 $1,345.6 $741.0 82.2% 29.8% 11.6% 1.8x 6.1x 1.7x 4.6x -13.1%Giant Interactive GA $2,827.5 $2,308.7 $389.1 91.9% 65.7% 9.5% 5.9x 9.0x 5.3x 8.2x 5.0%Netease NTES $8,852.5 $5,865.0 $1,519.0 73.0% 49.1% 12.1% 3.9x 7.9x 3.3x 6.8x -11.3%NCSoft KOSE:A036 $3,959.6 $3,324.8 $716.7 70.8% 31.6% 0.4% 4.6x 14.7x 3.6x 8.4x -14.6%Perfect World PWRD $918.8 $543.9 $504.2 77.3% 20.9% 10.2% 1.1x 5.2x 0.9x 4.6x 7.0%Sohu.com Inc. SOHU $2,118.2 $1,685.9 $1,458.0 64.7% 12.3% 27.0% 1.2x 9.4x 1.0x n/a -24.7%Tencent Holdings SEHK:700 $114,996.7 $110,985.8 $9,983.0 54.6% 34.2% 37.7% 11.1x 32.5x 8.7x 24.7x -4.2%Zynga, Inc. ZNGA $3,582.1 $2,799.9 $777.7 70.3% 4.2% -36.5% 3.6x 86.0x 3.5x 23.8x 2.5%

Median: $3,204.8 $2,554.3 $759.4 71.9% 30.7% 10.9% 3.7x 9.2x 3.4x 8.2x -7.8%

TTM Revenue Growth 10.9%TTM EBITDA Growth 5.2%TTM Earnings Growth 14.9%Gross Profit Margin 71.9%EBITDA Margin 30.7%Net Income Margin 22.1%SG&A Expenses as a % of Total Revenue 32.5%R&D Expenses as a % of Total Revenue 22.9%

Current Ratio 2.2xQuick Ratio 2.0xCash as Percent of Market Cap 25.0%Avg Days Outstanding: Accounts Receivable 19.3xAvg Days Outstanding: Accounts Payable 43.9xWorking Capital to TTM Operating Expense Ratio 0.7x

Levered FCF Margin 22.7%Cash from Operations Growth (YoY) 23.9%Cash from Investing Growth (YoY) -16.4%Cash from Financing Growth (YoY) 46.3%Levered FCF Growth (YoY) 16.8%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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15%Internet Gaming Stock Market Return: January - April 2014

Gaming S&P NASDAQ SEG Internet Index

Page 47: May monthly   current

SEG Internet Index Category: Infrastructure

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD8x8, Inc. EGHT $852.4 $678.4 $124.5 70.3% 9.6% 24.2% 5.5x 57.0x 4.4x 44.7x -2.7%Akamai Technologies, Inc. AKAM $9,511.7 $8,837.8 $1,663.4 68.1% 35.4% 16.9% 5.3x 15.0x 4.7x 11.1x 14.1%Brightcove Inc. BCOV $276.2 $256.1 $116.3 65.9% -0.9% 25.4% 2.2x n/a 1.9x n/a -38.5%BroadSoft, Inc. BSFT $724.8 $652.8 $182.8 75.6% -2.2% 10.0% 3.6x n/a 3.1x 13.4x -4.0%Digital River Inc. DRIV $499.3 $242.6 $376.5 66.1% 9.3% -5.3% 0.6x 6.9x 0.6x 5.1x -16.9%Envivio, Inc. ENVI $72.2 $24.3 $43.2 66.2% -20.8% 10.5% 0.6x n/a 0.5x n/a -23.3%Harmonic Inc HLIT $663.4 $515.7 $468.3 48.5% 6.5% -9.2% 1.1x 17.0x 1.1x 9.6x -4.0%Interactive Intelligence, Inc. ININ $1,301.6 $1,203.6 $318.2 64.2% 8.9% 34.1% 3.8x 42.3x 3.3x 56.1x -5.8%Limelight Networks, Inc. LLNW $203.8 $86.1 $173.4 48.8% -5.9% -3.8% 0.5x n/a 0.6x n/a 4.0%Mitel Networks Corp. MITL $904.1 $1,133.4 $536.0 57.1% 11.9% n/a 2.1x 17.7x 1.4x 8.5x -5.3%Polycom, Inc. PLCM $1,699.2 $1,416.0 $1,358.2 57.8% 9.7% -2.0% 1.0x 10.7x 1.0x 6.8x 10.2%Rovi Corporation ROVI $2,111.5 $2,837.9 $547.7 82.6% 35.0% 11.9% 5.2x 14.8x 5.3x 12.0x 12.3%SeaChange International Inc. SEAC $308.2 $186.9 $146.3 55.0% 5.6% -6.9% 1.3x 22.7x 1.3x 10.3x -22.9%ShoreTel, Inc. SHOR $463.8 $413.9 $336.8 59.5% 4.4% 9.9% 1.2x 28.2x 1.2x 15.0x -18.4%Sonus Networks, Inc SONS $810.3 $653.4 $284.2 63.7% 2.5% 12.3% 2.3x 92.9x 2.1x n/a 6.2%Synacor, Inc SYNC $65.1 $31.5 $111.8 46.7% 3.5% -8.3% 0.3x 8.0x 0.3x 9.5x -5.6%Tucows Inc. TCX $160.8 $154.7 $129.9 24.7% 6.6% 13.3% 1.2x 18.1x 1.1x 11.9x 9.9%VeriSign VRSN $6,201.8 $5,855.7 $977.4 80.8% 61.0% 8.1% 6.0x 9.8x 5.7x 8.6x -21.4%

Median: $663.4 $515.7 $284.2 63.7% 6.5% 10.3% 1.3x 17.7x 1.3x 11.1x -4.0%

TTM Revenue Growth 10.3%TTM EBITDA Growth 12.5%TTM Earnings Growth 24.2%Gross Profit Margin 63.7%EBITDA Margin 6.5%Net Income Margin -1.7%SG&A Expenses as a % of Total Revenue 40.0%R&D Expenses as a % of Total Revenue 17.6%

Current Ratio 2.5xQuick Ratio 2.2xCash as Percent of Market Cap 21.3%Avg Days Outstanding: Accounts Receivable 59.0xAvg Days Outstanding: Accounts Payable 44.8xWorking Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 6.8%Cash from Operations Growth (YoY) -2.1%Cash from Investing Growth (YoY) -47.8%Cash from Financing Growth (YoY) 44.5%Levered FCF Growth (YoY) -19.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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Internet Infrastructure Stock Market Return: January - April 2014

Infrastructure S&P NASDAQ SEG Internet Index

Page 48: May monthly   current

SEG Internet Index Category: Services

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $661.8 $612.7 $266.1 73.9% -7.3% 50.5% 2.3x n/a 1.8x 53.1x -16.7%Bankrate RATE $1,835.1 $1,902.0 $457.4 67.0% 23.8% 0.1% 4.2x 17.5x 3.6x 12.8x 0.5%Carbonite, Inc. CARB $264.0 $194.0 $111.8 68.4% 6.7% 24.2% 1.7x 25.8x 1.5x 26.4x -16.7%Care.com, Inc. CRCM $379.5 $501.9 $88.6 77.0% -30.2% n/a 5.7x n/a 4.6x n/a -49.6%eHealth, Inc. EHTH $796.9 $689.8 $186.9 97.4% 2.3% 15.7% 3.7x 158.9x 3.3x 31.2x -12.0%Everyday Health, Inc. EVDY $418.2 $473.3 $155.9 72.2% 6.8% 12.5% 3.0x 44.8x 2.7x 16.4x 4.4%GrubHub Inc. GRUB $2,426.0 $2,339.5 $137.1 75.1% 21.8% 66.6% 17.1x 78.2x 10.6x 41.4x -9.0%LifeLock, Inc. LOCK $1,448.2 $1,257.0 $395.1 73.0% 5.9% 31.3% 3.2x 53.5x 2.6x 20.8x -0.4%Monster Worldwide, Inc. MWW $627.1 $728.3 $793.7 51.6% 12.6% -8.6% 0.9x 7.3x 0.9x 5.1x -2.4%Qihoo QIHU $10,625.7 $10,230.0 $671.1 86.9% 30.6% 104.0% 15.2x 49.8x 8.8x 25.1x 3.1%Shutterfly SFLY $1,576.0 $1,483.3 $804.0 52.2% 9.8% 20.7% 1.8x 18.9x 1.6x 8.7x -17.2%Tree.Com, Inc. TREE $328.8 $237.1 $139.2 95.3% 7.1% 79.8% 1.7x 23.9x 1.5x 11.4x -10.8%Trulia, Inc. TRLA $1,255.6 $1,264.9 $174.2 82.8% -10.4% 118.0% 7.3x n/a 4.6x 44.2x -3.4%VistaPrint VPRT $1,313.8 $1,464.0 $1,212.1 65.6% 11.1% 6.5% 1.2x 10.9x 1.1x 7.4x -28.5%Wix.com Ltd. WIX $768.7 $667.4 $80.5 81.0% -31.8% 84.2% 8.3x n/a 5.2x n/a -20.5%Xoom XOOM $847.5 $642.7 $133.8 70.0% 8.9% 53.1% 4.8x 53.8x 3.8x 44.4x -17.8%Zillow Z $4,258.1 $3,962.8 $197.5 90.5% -2.8% 69.1% 20.1x n/a 13.5x 94.8x 32.5%

Median: $847.5 $728.3 $186.9 73.9% 6.8% 40.9% 3.7x 35.3x 3.3x 25.1x -10.8%

TTM Revenue Growth 40.9%TTM EBITDA Growth 10.1%TTM Earnings Growth -14.8%Gross Profit Margin 73.9%EBITDA Margin 6.8%Net Income Margin -1.6%SG&A Expenses as a % of Total Revenue 54.3%R&D Expenses as a % of Total Revenue 16.8%

Current Ratio 2.2xQuick Ratio 2.0xCash as Percent of Market Cap 13.2%Avg Days Outstanding: Accounts Receivable 21.4xAvg Days Outstanding: Accounts Payable 52.5xWorking Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 7.7%Cash from Operations Growth (YoY) 36.0%Cash from Investing Growth (YoY) -43.8%Cash from Financing Growth (YoY) 63.7%Levered FCF Growth (YoY) 26.1%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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Internet Services Stock Market Return: January - April 2014

Services S&P NASDAQ SEG Internet Index

Page 49: May monthly   current

SEG Internet Index Category: Social

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFacebook FB $153,416.2 $141,179.2 $8,916.0 79.7% 52.3% 62.4% 15.8x 30.3x 11.1x 18.4x 9.3%LinkedIn LNKD $18,679.7 $16,355.4 $1,677.0 86.7% 9.9% 51.3% 9.8x 98.4x 7.7x 31.7x -26.1%Mail.ru Group LSE:MAIL $5,681.4 $4,726.8 $818.9 59.0% 43.2% 29.4% 5.8x 13.4x 5.0x 9.3x -38.6%Renren Inc RENN $1,181.5 $233.0 $156.7 56.2% -58.4% -1.8% 1.5x n/a 2.0x n/a 3.8%Twitter, Inc. TWTR $22,971.7 $20,987.9 $801.0 61.2% -76.9% 112.5% 26.2x n/a 14.8x 93.5x -42.3%Yelp, Inc. YELP $4,172.4 $3,773.1 $263.3 93.0% 0.5% 68.4% 14.3x 2764.2x 9.6x 56.1x -14.1%YY, Inc. YY $3,179.1 $2,822.0 $301.2 54.2% 28.8% 122.4% 9.4x 32.5x 5.8x 18.8x 9.3%

Median: $5,681.4 $4,726.8 $801.0 61.2% 9.9% 62.4% 9.8x 32.5x 7.7x 25.2x -14.1%

TTM Revenue Growth 62.4%TTM EBITDA Growth 28.7%TTM Earnings Growth 44.0%Gross Profit Margin 61.2%EBITDA Margin 9.9%Net Income Margin 21.6%SG&A Expenses as a % of Total Revenue 49.9%R&D Expenses as a % of Total Revenue 21.8%

Current Ratio 9.6xQuick Ratio 9.2xCash as Percent of Market Cap 11.2%Avg Days Outstanding: Accounts Receivable 43.0xAvg Days Outstanding: Accounts Payable 35.6xWorking Capital to TTM Operating Expense Ratio 1.5x

Levered FCF Margin 24.4%Cash from Operations Growth (YoY) 149.7%Cash from Investing Growth (YoY) -39.6%Cash from Financing Growth (YoY) 1231.0%Levered FCF Growth (YoY) n/a

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

May 2014 Monthly Flash Report

Income Statement Analysis (Median)

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40%Internet Social Stock Market Return: January - April 2014

Social S&P NASDAQ SEG Internet Index

Page 50: May monthly   current

SEG Internet Index Category: Travel

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCtrip CTRP $6,368.4 $5,684.2 $889.8 74.3% 17.8% 29.5% 6.4x 36.0x 4.9x 34.5x -5.4%Expedia EXPE $9,217.0 $9,598.3 $4,959.3 78.2% 13.2% 17.3% 1.9x 14.7x 1.7x 9.5x 2.8%HomeAway AWAY $3,050.4 $2,593.3 $372.7 84.6% 16.1% 26.0% 7.0x 43.1x 5.8x 20.8x -18.7%MakeMyTrip MMYT $875.5 $809.8 $249.7 23.7% -7.8% 13.2% 3.2x n/a 6.8x 172.7x 6.9%Orbitz OWW $802.1 $1,129.2 $847.0 81.8% 13.7% 8.8% 1.3x 9.7x 1.3x 7.2x 3.4%Priceline PCLN $60,534.1 $55,683.9 $6,793.3 84.3% 37.6% 29.1% 8.2x 21.8x 6.6x 16.5x 1.1%Travelzoo TZOO $264.6 $203.3 $156.3 88.4% 16.8% 1.5% 1.3x 7.8x 1.3x 7.3x -14.7%TripAdvisor Inc TRIP $11,517.8 $11,403.9 $944.7 98.1% 32.9% 23.8% 12.1x 36.7x 9.6x 23.9x 0.3%

Median: $4,709.4 $4,138.7 $868.4 83.1% 16.5% 20.6% 4.8x 21.8x 5.3x 18.6x 0.7%

TTM Revenue Growth 20.6%TTM EBITDA Growth 4.2%TTM Earnings Growth 13.2%Gross Profit Margin 83.1%EBITDA Margin 16.5%Net Income Margin 12.5%SG&A Expenses as a % of Total Revenue 51.5%R&D Expenses as a % of Total Revenue 15.5%

Current Ratio 1.9xQuick Ratio 1.7xCash as Percent of Market Cap 18.9%Avg Days Outstanding: Accounts Receivable 37.6xAvg Days Outstanding: Accounts Payable 171.4xWorking Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 22.1%Cash from Operations Growth (YoY) 18.1%Cash from Investing Growth (YoY) 8.2%Cash from Financing Growth (YoY) -44.2%Levered FCF Growth (YoY) 24.7%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved May 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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20%Internet Travel Stock Market Return: January - April 2014

Travel S&P NASDAQ SEG Internet Index