Software Equity Group August 2013 Flash Report€¦ · Reports are read and relied upon by more...

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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

http://www.softwareequity.com/

• 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 © 2013 by Software Equity Group, LLC

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.


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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.


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.

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 ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved


Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index



SEG Software Index


SEG SaaS Index

SEG Internet Index


Select July 2013 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-31-2013 DOMOREGOOD CSK Strategic Marketing Group, Inc. - - - -Jul-31-2013 Ashampoo GmbH & Co. KG Deutschland Digital GmbH & Co. KG - - - -Jul-31-2013 Group USA, Inc. eDressMe - - - -Jul-31-2013 Kaplan, Inc. Grockit Inc., Test Prep Assets and Social - - - -Jul-31-2013 IMG Worldwide, Inc. J. Patton Sports Marketing, Inc. - - - -Jul-31-2013 Kofax plc (LSE:KFX) Kapow Software, Inc. $15.9 $47.5 3.0x -Jul-31-2013 Zetes France Sas L4 Epsilon - - - -Jul-31-2013 Yahoo! Inc. (NasdaqGS:YHOO) Lexity, Inc. - - - -Jul-31-2013 Adobe Systems Inc. (NasdaqGS:ADBE) Search Discovery, Inc., Satellite unit - - - -Jul-31-2013 SupremeBytes, LLC SwiftVM - - - -Jul-31-2013 OpenTable, Inc. (NasdaqGS:OPEN) Wanderspot LLC, Rezbook - - - -Jul-30-2013 DataBank IMX, LLC eDocument Resources, LLC - - - -Jul-30-2013 E2open, Inc. (NasdaqGM:EOPN) icon-scm AG - $33.8 3.6x -Jul-30-2013 Creative Networks Protocol Inc. Joomla Development Company Digiologie - - - -Jul-30-2013 Monster Media, LLC LocaModa, Inc. - - - -Jul-30-2013 GoodWorldCreations LLC NowStreet Journal - - - -Jul-30-2013 Dolphin Geophysical AS Quantum GeoServices (Asia Pacific) Pte Ltd. - - - -Jul-30-2013 Gozoop Online Pvt. Ltd. Red Digital Media Pvt Ltd. - - - -Jul-30-2013 Interactive Leisure Systems, Inc. (OTCPK:IALS) Tech 7 Systems, Inc. $0.7 - - -Jul-30-2013 Revana Inc. WebMetro - $21.7 - -Jul-29-2013 NERIM, SAS Boost SAS $2.7 - - -Jul-29-2013 Padilla Speer Beardsley, Inc. CRT/tanaka, LLC $13.0 - - -Jul-29-2013 Add On Systems, Inc. IEG Inc. - - - -Jul-29-2013 Braun Design, Ltd. MyDesignerOnline.com, Inc. - - - -Jul-29-2013 Born To Sell, LLC OptionsBuddy.com - - - -Jul-29-2013 Linx Sistemas E Consultoria Ltda. Opus Software Comercio E Representacoes Ltda., Certain Assets - $4.0 - -Jul-29-2013 PT XL Axiata Tbk (JKSE:EXCL) PT AXIS Telekom Indonesia - - - -Jul-28-2013 Virtual Atmosphere Ltd. YCD Atmosphere - $2.8 - -Jul-26-2013 Darwin Private Equity LLP Esendex Limited - $16.9 - -Jul-26-2013 Zolo Media KOHD, Inc. - $2.4 - -Jul-26-2013 Logo Yazilim Sanayi ve Ticaret AS (IBSE:LOGO) Netsis Yazilim A.S. - $12.8 - -Jul-26-2013 Bernexpo Holding AG ORNARIS AG - - - -Jul-26-2013 Prime Time Ventures, LLC Rio Networks, Inc. - - - -Jul-26-2013 Unisplendour Corporation Limited (SZSE:000938) Shenzhen Temobi Science & Technology Development Co., Ltd. - - - -Jul-25-2013 Proofpoint, Inc. (NasdaqGM:PFPT) Abaca Technology Corporation - - - -Jul-25-2013 Great East Energy, Inc. Epsilon Corp. - - - -Jul-25-2013 ExcentricGrey Exattitude - Servicos Digitais, S.A. - - - -Jul-25-2013 InnerWorkings Inc. (NasdaqGS:INWK) EYELEVEL s.r.o. - $17.8 - -Jul-25-2013 Unisplendour Corporation Limited (SZSE:000938) NTONG Technology CO., Ltd. - - - -Jul-25-2013 Sepura PLC (LSE:SEPU) Portalify OY $1.3 $9.3 7.0x -Jul-25-2013 MarketTools, Inc. RawData, Inc. - - - -Jul-25-2013 QLess, Inc. Textaurant Corporation - - - -Jul-24-2013 ICT Automatisering NV (ENXTAM:ICT) Brandfort B.V. $23.0 - - -Jul-24-2013 Bullhorn, Inc. EASY Software Solutions, LLC - - - -Jul-24-2013 Cloud Bees, Inc. FoxWeave - - - -Jul-24-2013 Frozen Fire Films, Inc. goodmedia communications, llc - - - -Jul-24-2013 Blue Earth Inc. (OTCPK:BBLU) Intelligent Power, Inc. - $4.1 - -Jul-24-2013 Rosetta Stone Ltd. Lexia Learning Systems, Inc. $15.0 $22.5 1.5x -Jul-24-2013 HotelPlanner.com Meetings.com - - - -Jul-24-2013 LightSpeed Retail Inc. MerchantOS - - - -Jul-24-2013 FlashNotes, Inc. NoteUtopia - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-24-2013 Kuboo, Inc. (OTCPK:SGTB) Onverse, LLC - - - -Jul-24-2013 Cansel Survey Equipment Inc. Robert Steltman Inc. - - - -Jul-24-2013 Dassault Systemes SA (ENXTPA:DSY) SFE GmbH - - - -Jul-24-2013 Reputation.com, Inc. Social Cloud, Inc. - - - -Jul-24-2013 @WalmartLabs Torbit, Inc. - - - -Jul-24-2013 BigBen Interactive (ENXTPA:BIG) WRC Promoter GmbH, FIA World Rally Championship License - - - -Jul-23-2013 VerticaLive, Inc. Advanced Software Development Corporation - - - -Jul-23-2013 Shuttleworth Business Systems Limited Border Merchant Systems Ltd - - - -Jul-23-2013 Mediware Information Systems, Inc. Definitive Homecare Solutions, Ltd. - - - -Jul-23-2013 Telefónica Deutschland Holding AG (DB:O2D) E-Plus Mobilfunk GmbH & Co. KG - $6,992.5 - -Jul-23-2013 Avalanche LLC Golfmates.com - - - -Jul-23-2013 Davis + Henderson Corporation (TSX:DH) Harland Financial Solutions, Inc. $254.2 $1,200.0 4.7x -Jul-23-2013 Longhorn Leads, LLC Kidmondo, Inc. - - - -Jul-23-2013 CCI (EU) Ltd. Kupoya - - - -Jul-23-2013 Ahalife Holdings Inc. MediaMerx, Inc. - - - -Jul-23-2013 StrongLoop, Inc. Nodefly Systems Inc. - - - -Jul-23-2013 RSA Security, Inc. PassBan Corporation - - - -Jul-23-2013 REA Group FZ-LLC RealEstate.com S.A.L. - - - -Jul-23-2013 Aimia Inc. (TSX:AIM) Smart Button Associates, Inc. - $18.0 - -Jul-23-2013 To The New Limited Techsailor Group Pte Ltd. - - - -Jul-23-2013 RealDolmen NV (ENXTBR:REA) Travi@ta nv/sa $0.1 - - -Jul-23-2013 Delovoy Mir Online Tsian, OOO - - - -Jul-23-2013 Ruckus Wireless, Inc. (NYSE:RKUS) YFind Technologies Private Limited - - - -Jul-22-2013 Private Investor(s) Actual Systems of America Inc., U.S. and Canadian Yard Management Systems Software Business - - - -Jul-22-2013 Ourpalm Co.,Ltd (SZSE:300315) Beijing to play the crab Technology Co., Ltd. - $325.5 - -Jul-22-2013 Vista Equity Partners Digital Technology International, LLC - - - -Jul-22-2013 mic IT AG dimensio informatics GmbH - - - -Jul-22-2013 Vantiv, Inc. (NYSE:VNTV) Element Payment Services, Inc. - - - -Jul-22-2013 China Public Procurement Limited (SEHK:1094) Fortress Paradise Limited - $773.4 - -Jul-22-2013 Wynyard Group Limited (NZSE:WYN) MHA Compliance and Training Limited, MHA - - - -Jul-22-2013 Vista Equity Partners SAXOTECH, Inc. - - - -Jul-22-2013 Cisco Systems, Inc. (NasdaqGS:CSCO) Sourcefire, Inc. (NasdaqGS:FIRE) $247.4 $2,266.1 9.2x 121.8xJul-22-2013 nCrowd, Inc. Spreebird - $0.2 - -Jul-22-2013 Google Inc. (NasdaqGS:GOOG) SR Tech Group LLC, U.S. Patents And Patent Applications - - - -Jul-22-2013 Helios Towers Tanzania Vodacom Group Limited, Base Stations - - - -Jul-20-2013 Dropbox, Inc. Endorse Corp. - - - -Jul-19-2013 Green 4 Media, Inc. (OTCBB:GEEM) Green 4 Media, Inc. Prior to Reverse Merger with Fresh Healthy Vending LLC $0.0 - - -Jul-19-2013 Cinven Limited Host Europe WVS Limited - $668.0 - -Jul-19-2013 Apple Inc. (NasdaqGS:AAPL) Locationary Inc. - - - -Jul-19-2013 Bjl Group Ltd Mere Communication - - - -Jul-19-2013 iPoint Television, LLC Omniverse One World Television, Inc. - - - -Jul-19-2013 Xpress Group Limited (SEHK:185) OnTarget360 Group, Inc. $0.1 $0.4 3.7x -Jul-19-2013 Wolters Kluwer Financial Services, Inc. SmartStream Technologies GmbH, SVENSON - - - -Jul-18-2013 Centrum.cz Holdings B.V. DALTEN media s.r.o. - - - -Jul-18-2013 Ipreo Holdings LLC Discovery Data - - - -Jul-18-2013 Omniticket Network Limited Enta Ticketing Solutions Ltd - $1.4 - -Jul-18-2013 Wargaming World Limited Master of Orion Franchise - $1.2 - -Jul-18-2013 Facebook, Inc. (NasdaqGS:FB) Monoidics Limited - - - -Jul-18-2013 Rebellion Interactive Ltd Moonbase Commander Franchise - - - -Jul-18-2013 Sunrise Communications Holdings S.A. Ortel Mobile Switzerland GmbH - - - -Jul-18-2013 Symantec Corporation (NasdaqGS:SYMC) PasswordBank Technologies, S.L. - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-18-2013 Yelp, Inc. (NYSE:YELP) SeatMe, Inc. - $12.6 - -Jul-18-2013 Chaotic Moon, L.P. ThoughtLeadr, Inc. - - - -Jul-18-2013 Digital Virgo SAS VirginMega, SAS - $0.1 - -Jul-18-2013 Yahoo! Beijing Global R&D Center Ztelic Inc. - - - -Jul-17-2013 Yahoo! Inc. (NasdaqGS:YHOO) AdMovate, Inc. - - - -Jul-17-2013 FoundationDB, LLC Akiban Technologies, Inc. - - - -Jul-17-2013 Insight Venture Partners Anaqua, Inc. - - - -Jul-17-2013 Epic Gear, LLC Backyard Sports - $1.0 - -Jul-17-2013 Advanstar, Inc. Balluun Inc. - - - -Jul-17-2013 Markinson Software Solutions Pty Ltd ComOps Ltd., Korellus Enterprise Resource Planning - $3.9 - -Jul-17-2013 Cineplex Inc. (TSX:CGX) EK3 Technologies Inc. $24.9 $113.1 4.5x 29.5xJul-17-2013 HighJump Software, Inc. Evenex - - - -Jul-17-2013 Intuit Singapore Pte. Limited Fifo Pty Ltd - - - -Jul-17-2013 Software Paradigms Infotech Pvt. Ltd. ITR Software, Inc. - - - -Jul-17-2013 RACO Wireless LLC Position Logic, LLC - - - -Jul-17-2013 Pin Payments Spreedly, Inc., US Technology and Data Assets - - - -Jul-17-2013 Matter Communications, Inc. The Hollenbeck Group LLC - - - -Jul-17-2013 Wargaming World Limited Total Annihilation Franchise - $1.0 - -Jul-17-2013 [x+1], Inc. Wireless Developer Agency - - - -Jul-16-2013 Arcadia Asia Company Limited A-HOST Company Limited $16.0 $3.9 0.2x -Jul-16-2013 Wynright Corporation BoxLogix Automation, Software and Controls Group - - - -Jul-16-2013 Platinum Equity, LLC CBS Outdoor Limited - $225.0 - -Jul-16-2013 Simba Information, Inc. Education Market Research - - - -Jul-16-2013 Media6Degrees, Inc. EveryScreen Media, Inc. - - - -Jul-16-2013 Concur Technologies, Inc. (NasdaqGS:CNQR) GDSX, Ltd. - - - -Jul-16-2013 Cloudera, Inc. Myrrix Ltd. - - - -Jul-16-2013 Kaseya International Limited Rover Apps, LLC - - - -Jul-15-2013 Deltek, Inc Acumen Inc. - - - -Jul-15-2013 Criteo Corp. AD-X Limited - - - -Jul-15-2013 Hydro Phi Technologies, Inc. Big Clix Corp. (OTCPK:BCLX) - - - -Jul-15-2013 Start Today Co., Ltd. (TSE:3092) Bracket, Inc. - - - -Jul-15-2013 Open Joint Stock Company Tattelecom (MICEX:TTLK) CJSC SMARTS-Kazan - - - -Jul-15-2013 Civica UK Limited Corero Business Systems Ltd. - $21.3 - -Jul-15-2013 Grendall Investment Limited Cupid plc, Casual Dating Businesses - $65.0 - -Jul-15-2013 Automattic, Inc. Lightstone Software LLC, Lean Domain Search - - - -Jul-15-2013 Modus Creative Limited Modus Digital Limited - - - -Jul-15-2013 Accenture plc (NYSE:ACN) Mortgage Cadence, LLC - - - -Jul-15-2013 Lite-On Technology Corp. (TSEC:2301) Power Innovations International, Inc. - $18.3 - -Jul-15-2013 Siegel Enterprises, Inc. RinkNet Marketing Inc. - - - -Jul-15-2013 Totvs Nordeste Software Ltda RMS Software S.A. $8.6 $18.9 2.2x -Jul-15-2013 Digital Audio Corporation, Inc. Salient Stills, Inc. - - - -Jul-15-2013 Private Investor(s) SocialGO IH Limited - - - -Jul-15-2013 Wasserman Media Group, LLC Wasserman - - - -Jul-15-2013 Telligent Systems, Inc. Zimbra, Inc. - - - -Jul-13-2013 Ion Investment Group Limited Triple Point Technology, Inc. $200.0 $900.0 4.5x -Jul-12-2013 txtNation Limited 24GMedia Limited - - - -Jul-12-2013 Banca March S.A.; Sociedade Comercial Orey Antunes SA (ENXTLS:ORE) Banco Inversis Net SA, Technology Platform - $283.8 - -Jul-12-2013 Bassilichi S.p.A. Bassilichi Central Eastern Europe $2.6 - - -Jul-12-2013 Panasonic Europe Ltd. Cameramanager B.V. - - - -Jul-12-2013 Integrated Solutions Group, Inc. Data Strategies, Inc. - - - -Jul-12-2013 Intel Corporation (NasdaqGS:INTC) Omek Interactive, Ltd. - $40.0 - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-12-2013 Groupe Septeo RG Systèmes SAS - - - -Jul-12-2013 Hallett Retail Services Ltd. Stylefantasia Limited - - - -Jul-11-2013 Bright Mountain Holdings, Inc. (OTCBB:BMHI) 360Fire.com - - - -Jul-11-2013 White & Partners, Inc. A Brand New Way LLC - - - -Jul-11-2013 Sword Group SE (ENXTPA:SWP) Active Risk Group Plc (AIM:ARI) $12.4 $12.9 1.0x -Jul-11-2013 PTC Inc. (NasdaqGS:PMTC) Enigma, Inc. - $10.0 - -Jul-11-2013 Hobsons PLC National Transcript Center, Inc. - - - -Jul-11-2013 Imprezzio Inc. Racing Snail, Inc. - - - -Jul-11-2013 Hosting Community Group of Companies Reggi Business LLC - - - -Jul-11-2013 EMC Corporation (NYSE:EMC) Scaleio, Inc. - - - -Jul-11-2013 Playtech Limited (LSE:PTEC) Swerford Holdings Ltd. - $50.0 - -Jul-11-2013 SumAll Inc. TwentyFeet GmbH - - - -Jul-11-2013 StarDyne Technologies, Inc. United Systems Technology, Inc. - - - -Jul-11-2013 Shopzilla, Inc. Zappli, Inc. - - - -Jul-10-2013 Y Soft Corporation, a.s. Equitrac Systems of Australia Pty Limited $9.9 - - -Jul-10-2013 GOWEX Mobile S.L. Ideup Desarrollos Tecnológicos, S.L. $2.8 - - -Jul-10-2013 Enterprise Holdings, Inc. Lyft Inc., Zimride - - - -Jul-10-2013 Garantia Data Ltd. MyRedis - - - -Jul-10-2013 Publicis Groupe SA (ENXTPA:PUB) netalk Communications Group, Inc. - - - -Jul-10-2013 Do Process Software Ltd. Pro-Suite Software Ltd - - - -Jul-10-2013 Private Investor(s) SaaSMAX Corp. - $0.0 - -Jul-10-2013 Infogeni Solutions Limited Secure Intelligence Limited - - - -Jul-10-2013 The Kantar Group Limited SIRIUS Marketing and Social Research Ltd. - - - -Jul-10-2013 HGST, Inc. VeloBit, Inc. - - - -Jul-10-2013 Finn Partners, Inc. Widmeyer Communications, Inc. $10.0 - - -Jul-09-2013 ASSET InterTech, Inc. American Arium, Inc. - - - -Jul-09-2013 The Stephens Group, LLC Bay Area Internet Solutions, Inc. - - - -Jul-09-2013 Idera, Inc. CopperEgg Corporation - - - -Jul-09-2013 International Business Machines Corporation (NYSE:IBM) CSL International Ltd - - - -Jul-09-2013 Information Resources, Inc. FreshLook Marketing Group, LLC - - - -Jul-09-2013 Tom's Planner N.V. Gantto Inc. - - - -Jul-09-2013 Burdette Ketchum Greenhouse Studio, Inc. - - - -Jul-09-2013 intergenia AG internet24 GmbH - - - -Jul-09-2013 ServiceNow, Inc. (NYSE:NOW) Mirror42 B.V. - - - -Jul-09-2013 MediaWhiz Holdings, LLC MobAff LLC - - - -Jul-09-2013 Private Investor(s) Previon AG - - - -Jul-09-2013 CD-adapco Group, Inc. Red Cedar Technology, Inc. - - - -Jul-09-2013 Sigma Systems Inc. Tribold Limited - - - -Jul-09-2013 BTS USA, Inc. Wizerize A/S - $1.8 - -Jul-09-2013 Kaseya International Limited Zyrion, Inc. - - - -Jul-08-2013 CompuGroup Medical Italia SpA 79% stake in Studiofarma Srl and 95% stake in Qualità in Farmacia srl - - - -Jul-08-2013 RSA Security, Inc. Aveksa, Inc. - - - -Jul-08-2013 Global Broadcasting Media Group Chinadotcom Communications Technology Development (Beijing) And Beijing China.com Technology Service - - - -Jul-08-2013 ADISTA, S.A.S. CieNum SAS $11.6 - - -Jul-08-2013 Kerseyco Trading Ltd. Drustvo za pruzanje internet usluga BeotelNet-ISP d.o.o. - $6.5 - -Jul-08-2013 Voyager Software Ltd FCP Internet Holdings Limited - $3.1 2.2x -Jul-08-2013 ADVFN plc (AIM:AFN) Financemanila.net - $0.1 - -Jul-08-2013 Graphipub SARL Lettres et Lumière SAS - - - -Jul-08-2013 Genesis Media Holdings Local Focus LLC - - - -Jul-08-2013 Bandzoogle Inc. Onesheet, LLC - - - -Jul-08-2013 TelliQ AB Prosonit AB, AutoJournal Service - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-08-2013 Welsh, Carson, Anderson & Stowe Service Repair Solutions, Inc. - - - -Jul-08-2013 WHAT'S NEXT PARTNERS Talents Only and Napkin - - - -Jul-08-2013 Solarix Networks Ltd Telcoinabox New Zealand Limited - - - -Jul-08-2013 Investment Seminars, Inc. TheStockAdvisors.com - - - -Jul-08-2013 Equifax Inc. (NYSE:EFX) TrustedID, Inc. - - - -Jul-08-2013 The Washington Times, LLC Washington Guardian LLC - - - -Jul-07-2013 EpicPlugins.com Social Gallery Plugin - - - -Jul-07-2013 PropertyIQ NZ Ltd Terralink International Limited - - - -Jul-05-2013 Accent Equity Partners AB Intellecta AB (publ), Infolog $50.7 $30.5 0.6x -Jul-04-2013 eBay Inc. (NasdaqGS:EBAY) 2dehands.nl B.V. - - - -Jul-04-2013 UKFast.Net Ltd BurstNET Technologies, Inc., UK Business - - - -Jul-04-2013 Newzulu, Inc. CitizenSide - - - -Jul-04-2013 Montagu Private Equity LLP CliniSys Solutions Limited - - - -Jul-04-2013 Ouest Croissance SCR Signalisation Développement SARL $8.3 - - -Jul-04-2013 Private Investor(s) TheBusinessDesk Ltd. - - - -Jul-04-2013 Aspect Software, Inc. Voxeo Corporation - $145.0 - -Jul-03-2013 Cartamundi NV Cartamundi Digital - - - -Jul-03-2013 Toshiba Corporation (TSE:6502) cyberGRID GmbH - - - -Jul-03-2013 Private Investor(s) Franklin Rae Communications Limited - - - -Jul-03-2013 Ideagen PLC (AIM:IDEA) MSS Management Systems Services Ltd. $0.8 $3.3 4.3x -Jul-03-2013 Perform Group plc. (LSE:PER) Opta Sportsdata Ltd. $16.5 $61.1 3.7x 44.4xJul-03-2013 Yardi Systems, Inc. Pierce-Eislen, Inc. - - - -Jul-03-2013 London Stock Exchange Plc Turquoise Derivatives - - - -Jul-03-2013 DeLaval International AB Uniform-Agri B.V. - - - -Jul-03-2013 Yahoo! Inc. (NasdaqGS:YHOO) Xobni Corporation - - - -Jul-02-2013 Locaweb Serviços de Internet S.A. All In Mail $3.1 - - -Jul-02-2013 Private Investor(s) ASJ Inc. (TSE:2351) $13.5 -$5.6 - -Jul-02-2013 InternetQ PLC (AIM:INTQ) ATLAS Interactive Deutschland GmbH $29.1 $7.6 0.3x 12.2xJul-02-2013 GB Group plc (AIM:GBG) CRD (UK) Limited $0.7 $2.0 2.7x -Jul-02-2013 Xerox Corporation (NYSE:XRX) Customer Value Group Ltd. - - - -Jul-02-2013 GreatApps.com, Inc. Greatebooks.com and Greatebook.com - - - -Jul-02-2013 ABS Capital Partners; Persimmon Capital Partners IgnitionOne, Inc. and Netmining LLC - - - -Jul-02-2013 1000mercis (ENXTPA:ALMIL) Matiro $3.9 $3.3 0.8x -Jul-02-2013 Yotta Limited Mayrise Ltd $2.9 $9.1 3.1x 5.8xJul-02-2013 Meituan.com Mengmai.com - - - -Jul-02-2013 Medical Transcription Billing, Corp. Metro Medical Management Services, Inc. - - - -Jul-02-2013 Idera, Inc. Precise Software Solutions, Inc. - - - -Jul-02-2013 Yahoo! Inc. (NasdaqGS:YHOO) Qwiki, Inc. - - - -Jul-02-2013 Thomson Reuters Corporation (TSX:TRI) Tradeweb Markets LLC, Foreign Exchange Options Business - - - -Jul-02-2013 Reply S.p.A. (BIT:REY) triplesense GmbH $8.2 $4.4 0.5x -Jul-01-2013 RetailMeNot, France SAS ABCYNE SAS - $19.9 - -Jul-01-2013 Streamworks LLC Action, Inc - - - -Jul-01-2013 Mimvi, Inc. (OTCBB:MIMV) Adaptive Media, Inc. - $2.4 - -Jul-01-2013 Yahoo! Inc. (NasdaqGS:YHOO) Bignoggins Productions LLC - - - -Jul-01-2013 Lee Equity Partners LLC Cross MediaWorks, Inc. - - - -Jul-01-2013 ClearSlide, Inc. Crunched - - - -Jul-01-2013 Thoma Bravo, LLC Digital Insight $305.0 $1,025.0 3.4x -Jul-01-2013 Tabcorp Holdings Ltd. (ASX:TAH) Donaco International Limited, TAB Active - $0.8 - -Jul-01-2013 CameronTec Intressenter AB E2E Infotech Limited - - - -Jul-01-2013 Whitespace Creative, Inc. Highland Public Relations Inc. - - - -Jul-01-2013 DELASOCIAL GmbH indigo pearl GmbH und Co. KG - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAJul-01-2013 gamigo Advertising GmbH Inqnet GmbH - - - -Jul-01-2013 Concerto Group Limited JD Concerto - - - -Jul-01-2013 Sunrise Communications AG Lebara GmbH - - - -Jul-01-2013 Lylab Technology Solutions Inc. Listrak LLC, Cloud Services Business - - - -Jul-01-2013 National Rural Telecommunications Cooperative NeoNova Network Services, Inc. - - - -Jul-01-2013 Growth From Knowledge PCNDATA Nederland BV - - - -Jul-01-2013 Ericsson (OM:ERIC B) Red Bee Media Limited - - - -Jul-01-2013 Resolution Media, Inc. Resolution Media Australia - - - -Jul-01-2013 Mentorix ApS Scoll Methods Ltd., Training Division - - - -Jul-01-2013 Origami Labs Sports and Things, Inc. - - - -

Acquirer


SEG Software Index


SEG SaaS Index

SEG Internet Index


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 $2,355.3 $2,354.0 $568.9 67.6% 19.2% 9.7% 2.9x 12.8x 2.8x 10.4x 16.6% Billing & Service Management $736.4 $638.1 $435.7 58.1% 18.7% 9.2% 2.1x 8.8x 1.5x 8.2x 25.5% Business Intelligence $1,373.3 $1,155.0 $447.5 71.8% 12.4% 12.9% 3.4x 18.6x 3.3x 14.5x 25.5% Development Platforms $2,469.1 $2,492.0 $1,120.9 77.4% 20.3% 0.3% 2.6x 12.0x 2.9x 9.7x 11.0% Engineering & PLM $3,428.0 $3,287.7 $1,067.3 83.4% 20.5% 8.4% 2.9x 12.8x 2.7x 9.6x 14.7% Enterprise Resource Planning $5,892.6 $6,241.8 $2,088.2 71.9% 29.6% 0.2% 3.0x 11.9x 2.6x 8.2x -6.4% Financial & Accounting $1,886.9 $2,444.9 $691.0 55.7% 26.1% 10.7% 3.5x 12.0x 3.3x 9.6x 15.3% Gaming $2,347.1 $2,166.1 $1,925.5 66.0% 14.3% 15.7% 1.6x 11.4x 1.4x 8.1x 49.1% IT Conglomerates $149,806.6 $136,581.6 $77,849.0 71.9% 34.3% 0.2% 2.6x 7.9x 2.5x 6.9x 0.2% Mobile Solutions/Content $788.2 $654.7 $231.1 54.2% 8.0% 20.3% 3.4x 14.9x 2.2x 14.6x 16.6% Networking & Network Performance Managemen $2,225.1 $1,971.5 $766.1 67.4% 14.7% 5.7% 2.8x 16.5x 2.4x 10.5x -0.8% Security $1,793.0 $1,717.8 $303.4 77.8% 9.9% 14.4% 4.1x 12.8x 4.6x 21.1x 12.9% Storage, Data Mgmt & Integration $13,550.4 $10,148.7 $4,626.0 72.3% 21.9% 4.8% 2.6x 9.3x 2.7x 7.0x 17.0% Supply Chain Management & Logistics $1,215.0 $1,139.8 $211.6 61.9% 19.5% 11.2% 4.6x 17.6x 4.0x 14.5x 21.1% Systems Management $9,800.3 $8,946.6 $2,201.4 85.1% 25.3% 16.3% 4.6x 17.2x 4.1x 12.6x -0.7% Vertical - Finance $3,251.1 $3,871.5 $840.2 43.1% 26.0% 7.4% 3.7x 12.1x 3.5x 10.9x 26.0% Vertical - Other $1,432.1 $1,455.8 $384.0 53.4% 16.3% 22.2% 3.4x 19.4x 2.9x 16.2x 45.5%

Category Name

TTM Revenue Growth 9.2%TTM EBITDA Growth -16.2%TTM Earnings Growth -46.4%Gross Profit Margin 58.1%EBITDA Margin 18.7%Net Income Margin -3.1%SG&A Expenses as a % of Total Revenue 55.0%R&D Expenses as a % of Total Revenue 17.3%

Current Ratio 1.9Quick Ratio 1.7Cash as Percent of Market Cap 8.1%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 44Working Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 8.8%Cash from Operations Growth (YoY) 16.8%Cash from Investing Growth (YoY) -92.8%Cash from Financing Growth (YoY) 357.6%Levered FCF Growth (YoY) 7.5%

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved August 2013 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

0%

5%

10%

15%

20%

25%SEG SW Index Software Stock Market Return: January - July 2013

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmdocs Limited DOX $6,192.6 $5,101.9 $3,322.8 35.3% 18.7% 2.6% 1.5x 8.2x 1.5x 7.1x 12.9%AsiaInfo Holdings, Inc. ASIA $719.2 $422.2 $567.2 38.0% 11.7% 15.7% 0.7x 6.4x 0.7x 5.7x 6.6%CSG Systems International, Inc. CSGS $753.6 $854.0 $752.5 48.5% 18.6% 2.2% 1.1x 6.1x 1.1x 5.3x 28.0%Evolving Systems, Inc. EVOL $80.9 $69.5 $27.0 70.7% 27.5% 38.2% 2.6x 9.4x 2.5x 8.5x 23.1%MIND C.T.I. Ltd. MNDO $34.0 $13.4 $19.4 58.2% 18.8% -1.6% 0.7x 3.7x n/a n/a 2.2%NeuStar, Inc NSR $3,609.5 $3,849.1 $862.1 77.4% 44.8% 17.7% 4.5x 10.0x 4.1x 8.2x 28.4%Redknee Solutions TSX:RKN $333.2 $317.9 $55.4 66.5% 4.7% -1.4% 5.7x 122.6x 1.2x 16.0x 78.2%Synchronoss Technologies, Inc. SNCR $1,383.8 $1,333.8 $304.3 58.0% 20.9% 20.3% 4.4x 21.0x 3.5x 10.4x 59.5%

Median: $736.4 $638.1 $435.7 58.1% 18.7% 9.2% 2.1x 8.8x 1.5x 8.2x 25.5%

TTM Revenue Growth 9.2%TTM EBITDA Growth -4.4%TTM Earnings Growth 7.1%Gross Profit Margin 58.1%EBITDA Margin 18.7%Net Income Margin 10.2%SG&A Expenses as a % of Total Revenue 19.2%R&D Expenses as a % of Total Revenue 14.9%


Levered FCF Margin 10.6%Cash from Operations Growth (YoY) 13.7%Cash from Investing Growth (YoY) -62.4%Cash from Financing Growth (YoY) 25.4%Levered FCF Growth (YoY) -1.9%





0%

5%

10%

15%

20%

25%Billing and Service Management Software Stock Market Return: January - July 2013

Billing & Service Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $352.3 $285.0 $137.6 84.2% 12.6% -1.9% 2.1x 16.5x 2.0x 9.0x 29.5%MicroStrategy Incorporated MSTR $1,073.7 $755.9 $589.0 73.6% 5.0% 1.2% 1.3x 25.8x 1.3x 19.8x -0.5%Pegasystems Inc. PEGA $1,361.9 $1,181.0 $466.8 67.1% 12.2% 9.7% 2.5x 20.7x 2.3x 14.3x 53.3%Progress Software Corporation PRGS $1,384.7 $1,128.9 $344.0 87.3% 20.4% 34.7% 3.3x 16.1x 3.4x 9.7x 18.8%PROS Holdings PRO $916.2 $833.7 $131.8 69.9% 6.7% 23.6% 6.3x 94.9x 5.5x 33.9x 69.5%Qlik Technologies QLIK $2,725.5 $2,501.9 $428.1 87.6% 1.3% 22.8% 5.8x 452.3x 4.8x 36.5x 38.6%Teradata NYSE:TDC $9,660.2 $9,078.2 $2,644.0 55.2% 23.0% 3.6% 3.4x 15.0x 3.1x 10.7x -7.2%Verisk VRSK $10,807.0 $12,035.0 $1,639.2 61.1% 46.5% 16.1% 7.3x 15.8x 6.7x 14.6x 21.5%

Median: $1,373.3 $1,155.0 $447.5 71.8% 12.4% 12.9% 3.4x 18.6x 3.3x 14.5x 25.5%



Levered FCF Margin 8.2%Cash from Operations Growth (YoY) -13.4%Cash from Investing Growth (YoY) 30.7%Cash from Financing Growth (YoY) 3.8%Levered FCF Growth (YoY) 10.9%





0%

5%

10%

15%

20%

25%

30%Business Intelligence Software Stock Market Return: January - July 2013

Business Intelligence S&P NASDAQ SEG SW Index

SEG Software Index Category: Development Platforms


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActuate Corporation BIRT $352.3 $285.0 $137.6 84.2% 12.6% -1.9% 2.1x 16.5x 2.0x 9.0x 29.5%Adobe Systems Incorporated ADBE $23,746.9 $21,406.8 $4,252.4 87.4% 26.6% -1.9% 5.0x 18.9x 5.1x 16.2x 23.3%BSQUARE Corporation BSQR $31.2 $11.8 $96.7 18.2% 1.5% 0.3% 0.1x 8.0x n/a n/a -7.9%Compuware Corporation CPWR $2,420.3 $2,354.0 $945.9 64.2% 15.0% -6.0% 2.5x 16.5x 2.3x 10.9x 4.9%Magic Software Enterprises Ltd. MGIC $231.2 $196.3 $129.8 41.1% 19.2% 10.1% 1.5x 7.9x 1.4x n/a 32.7%Microsoft Corporation MSFT $265,225.8 $205,301.8 $77,849.0 74.0% 38.7% 5.6% 2.6x 6.8x 2.5x 6.3x 17.0%Oracle Corporation ORCL $149,806.6 $136,581.6 $37,180.0 80.9% 46.6% 0.2% 3.7x 7.9x 3.5x 6.9x -6.4%Progress Software Corporation PRGS $1,384.7 $1,128.9 $344.0 87.3% 20.4% 34.7% 3.3x 16.1x 3.4x 9.7x 18.8%Red Hat, Inc. RHT $9,800.3 $8,946.6 $1,377.3 84.7% 20.1% 16.4% 6.5x 32.3x 5.7x 19.6x -5.2%Software AG XTRA:SOW $2,517.9 $2,630.1 $1,295.8 67.1% 26.0% -7.9% 2.0x 7.8x n/a n/a -25.5%

Median: $2,469.1 $2,492.0 $1,120.9 77.4% 20.3% 0.3% 2.6x 12.0x 2.9x 9.7x 11.0%

TTM Revenue Growth 0.3%TTM EBITDA Growth -5.7%TTM Earnings Growth -1.7%Gross Profit Margin 77.4%EBITDA Margin 20.3%Net Income Margin 12.6%SG&A Expenses as a % of Total Revenue 39.2%R&D Expenses as a % of Total Revenue 13.2%


Levered FCF Margin 18.1%Cash from Operations Growth (YoY) -14.3%Cash from Investing Growth (YoY) 31.6%Cash from Financing Growth (YoY) -50.9%Levered FCF Growth (YoY) -9.1%





-5%

0%

5%

10%

15%

20%

25%Development Platforms Software Stock Market Return: January - July 2013

Development Platforms S&P NASDAQ SEG SW Index

SEG Software Index Category: Engineering & PLM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDANSYS, Inc. ANSS $7,441.6 $6,816.7 $830.2 87.6% 46.8% 10.5% 8.2x 17.6x 7.7x 15.4x 14.0%Autodesk, Inc. ADSK $7,955.7 $6,613.6 $2,294.0 89.2% 20.5% 0.8% 2.9x 14.1x 2.7x 9.7x -4.2%Cadence Design Systems, Inc CDNS $4,139.9 $4,019.6 $1,400.9 86.7% 22.4% 12.7% 2.9x 12.8x 2.7x 8.1x 4.1%Cimatron Ltd. CIMT $63.8 $60.2 $42.6 87.3% 14.7% 2.1% 1.4x 9.6x n/a n/a 69.0%Dassault Systèmes DSY $16,386.6 $14,344.1 $2,691.4 87.1% 31.0% 8.4% 5.3x 17.2x n/a n/a 16.6%GSE Systems Inc. GVP $32.8 $14.1 $51.2 33.0% 3.3% -1.8% 0.3x 8.3x 0.3x n/a -18.3%Mentor Graphics Corp MENT $2,317.1 $2,343.5 $1,067.3 83.4% 17.6% 3.4% 2.2x 12.5x 2.0x 8.0x 18.8%Parametric Technology Corporation PMTC $3,235.5 $3,246.6 $1,274.0 71.0% 19.9% 0.3% 2.5x 12.8x 2.5x 9.6x 16.3%PDF Solutions Inc PDFS $605.7 $529.0 $95.3 59.8% 27.6% 22.6% 5.6x 20.1x 4.7x 11.6x 41.3%Stratasys, Inc. SSYS $3,428.0 $3,287.7 $267.5 46.5% 19.8% 60.9% 12.3x 62.1x 7.1x 28.8x 8.9%Synopsys Inc SNPS $5,695.4 $5,134.4 $1,872.4 82.7% 22.2% 14.5% 2.7x 12.3x 2.5x 8.5x 14.7%

Median: $3,428.0 $3,287.7 $1,067.3 83.4% 20.5% 8.4% 2.9x 12.8x 2.7x 9.6x 14.7%

TTM Revenue Growth 14.5%TTM EBITDA Growth 10.1%TTM Earnings Growth 6.0%Gross Profit Margin 82.7%EBITDA Margin 22.2%Net Income Margin 10.4%SG&A Expenses as a % of Total Revenue 34.4%R&D Expenses as a % of Total Revenue 17.8%


Levered FCF Margin 13.1%Cash from Operations Growth (YoY) 9.2%Cash from Investing Growth (YoY) 9.7%Cash from Financing Growth (YoY) 141.0%Levered FCF Growth (YoY) 2.2%





0%

5%

10%

15%

20%

25%Engineering & PLM Software Stock Market Return: January - July 2013

Engineering & PLM S&P NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $247.9 $188.2 $100.5 54.7% 15.4% -2.1% 1.9x 12.2x 1.8x 8.9x 13.4%Oracle Corporation ORCL $149,806.6 $136,581.6 $37,180.0 80.9% 46.6% 0.2% 3.7x 7.9x 3.5x 6.9x -6.4%QAD Inc. QADA $193.4 $136.1 $250.4 56.2% 4.6% -0.5% 0.5x 11.9x 0.5x 7.5x -6.7%Sage Group plc LSE:SGE $5,892.6 $6,241.8 $2,088.2 93.9% 29.6% 2.9% 3.0x 10.1x n/a n/a 12.0%SAP DB:SAP $87,113.2 $89,203.6 $21,628.9 71.9% 34.3% 9.8% 4.1x 12.0x 3.7x 10.1x -9.4%

Median: $5,892.6 $6,241.8 $2,088.2 71.9% 29.6% 0.2% 3.0x 11.9x 2.6x 8.2x -6.4%

TTM Revenue Growth 0.0%TTM EBITDA Growth 0.6%TTM Earnings Growth -14.4%Gross Profit Margin 0.0%EBITDA Margin 0.0%Net Income Margin 10.4%SG&A Expenses as a % of Total Revenue 31.6%R&D Expenses as a % of Total Revenue 13.4%


Levered FCF Margin 16.1%Cash from Operations Growth (YoY) 3.5%Cash from Investing Growth (YoY) -30.6%Cash from Financing Growth (YoY) -22.9%Levered FCF Growth (YoY) 2.3%





-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Enterprise Resource Planning Software Stock Market Return: January - July 2013

Enterprise Resource Planning S&P NASDAQ SEG SW Index

SEG Software Index Category: Financial & Accounting


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDACI Worldwide, Inc. ACIW $1,886.9 $2,444.9 $691.0 64.2% 21.1% 38.7% 3.5x 16.8x 2.6x 9.2x 6.5%Bottomline Technologies EPAY $1,045.6 $897.7 $251.1 53.6% 8.8% 15.7% 3.6x 40.4x 3.3x 16.6x 5.0%DST Systems, Inc. DST $3,032.3 $3,616.5 $2,630.1 15.9% 14.8% 5.2% 1.4x 9.3x 1.8x 8.1x 13.9%Evertec EVTC $1,957.2 $2,666.5 $346.5 54.0% 44.9% 6.2% 7.7x 17.1x 7.2x 14.4x 16.9%Fair Isaac Corporation FICO $1,758.6 $2,150.6 $739.2 69.2% 26.1% 13.6% 2.9x 11.1x 2.7x 8.4x 15.3%Fiserv FISV $12,519.9 $16,152.9 $4,648.0 41.7% 29.1% 5.1% 3.5x 12.0x 3.3x 9.9x 18.4%Intuit Inc INTU $18,979.4 $17,483.4 $4,444.0 83.2% 33.8% 10.7% 3.9x 11.6x 3.7x 9.3x 4.0%Model N, Inc MODN $537.9 $433.3 $92.9 55.7% 4.7% n/a 4.7x 99.9x 3.9x n/a 18.0%NetSol Technologies Inc. KASE:NETS $33.0 $36.3 $31.6 59.7% 52.6% 61.5% 1.2x 2.2x n/a n/a 129.1%Sage Group plc LSE:SGE $5,892.6 $6,241.8 $2,088.2 93.9% 29.6% 2.9% 3.0x 10.1x n/a n/a 12.0%Qiwi plc QIWI $1,492.4 $1,254.1 $307.0 41.3% 20.8% n/a 4.1x 19.6x 7.2x 16.2x 70.3%

Median: $1,886.9 $2,444.9 $691.0 55.7% 26.1% 10.7% 3.5x 12.0x 3.3x 9.6x 15.3%








0%

5%

10%

15%

20%

25%Financial & Accounting Software Stock Market Return: January - July 2013

Financial & Accounting S&P NASDAQ SEG SW Index

SEG Software Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDActivision Blizzard ATVI $20,093.4 $15,475.4 $4,984.0 67.4% 37.1% 13.1% 3.1x 8.4x 3.6x 10.8x 66.4%Electronic Arts Inc. EA $7,994.9 $7,147.9 $3,791.0 64.6% 9.1% -7.5% 1.9x 20.8x 1.7x 9.3x 79.5%GameLoft SA ENXTPA:GF $642.8 $569.0 $274.7 84.6% 15.6% 26.7% 2.1x 13.3x n/a n/a 16.2%Konami Corporation TSE: 9766 $3,063.7 $2,772.0 $2,241.5 31.6% 13.0% -14.4% 1.2x 9.5x 1.2x 6.9x 1.0%Take-Two Interactive TTWO $1,630.5 $1,560.2 $1,131.0 44.9% 6.2% 57.6% 1.4x 22.2x 0.8x 3.7x 52.9%Ubisoft Entertainment ENXTPA:UB $1,460.7 $1,315.3 $1,609.5 72.7% 36.8% 18.4% 0.8x 2.2x n/a n/a 45.3%

Median: $2,347.1 $2,166.1 $1,925.5 66.0% 14.3% 15.7% 1.6x 11.4x 1.4x 8.1x 49.1%








-10%

0%

10%

20%

30%

40%

50%

60%Gaming Software Stock Market Return: January - July 2013

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAccretive Health AH $970.7 $774.3 $973.6 20.7% 2.9% 32.2% 0.8x 27.0x 0.8x 10.0x -14.7%Allscripts Healthcare Solutions Inc. MDRX $2,791.1 $3,266.4 $1,428.7 41.3% 7.4% -3.0% 2.3x 30.9x 2.2x 12.6x 68.0%Cerner Corporation CERN $16,812.3 $16,024.7 $2,711.7 81.8% 28.8% 12.3% 5.9x 20.5x 5.1x 15.6x 21.8%Computer Programs and Sys, Inc. CPSI $617.6 $605.3 $195.9 45.4% 24.9% 12.3% 3.1x 12.4x 2.9x 11.0x 8.9%Greenway Medical Technologies, Inc GWAY $344.2 $331.0 $135.7 54.5% 1.4% 15.9% 2.4x 174.1x 2.3x 61.3x -27.6%MedAssets MDAS $1,326.3 $2,157.0 $670.8 78.5% 31.5% 9.4% 3.2x 10.2x 3.1x 9.5x 23.6%Merge Healthcare MRGE $423.4 $628.8 $251.6 59.3% 11.5% 4.5% 2.5x 21.7x 2.3x 11.4x 72.2%Omnicell, Inc. OMCL $724.4 $654.6 $355.3 54.0% 15.0% 33.1% 1.8x 12.3x 1.7x 9.2x 37.4%Quality Systems, Inc. QSII $1,362.8 $1,232.8 $451.5 58.1% 21.5% 0.8% 2.7x 12.7x 2.6x 10.2x 29.8%

Median: $970.7 $774.3 $451.5 54.5% 15.0% 12.3% 2.5x 20.5x 2.3x 11.0x 23.6%








-5%

0%

5%

10%

15%

20%

25%

30%

35%Healthcare Software Stock Market Return: January - July 2013

Healthcare S&P NASDAQ SEG SW Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDHewlett Packard HPQ $49,525.2 $63,438.2 $115,569.0 23.6% 12.1% -6.8% 0.5x 4.5x 0.6x 4.5x 73.1%IBM IBM $213,651.9 $237,543.9 $102,384.0 48.6% 25.0% -3.5% 2.3x 9.3x 2.3x 8.1x 0.2%Microsoft Corporation MSFT $265,225.8 $205,301.8 $77,849.0 74.0% 38.7% 5.6% 2.6x 6.8x 2.5x 6.3x 17.0%Oracle Corporation ORCL $149,806.6 $136,581.6 $37,180.0 80.9% 46.6% 0.2% 3.7x 7.9x 3.5x 6.9x -6.4%SAP AG DB:SAP $87,113.2 $89,203.6 $21,628.9 71.9% 34.3% 9.8% 4.1x 12.0x 3.7x 10.1x -9.4%

Median: $149,806.6 $136,581.6 $77,849.0 71.9% 34.3% 0.2% 2.6x 7.9x 2.5x 6.9x 0.2%



Levered FCF Margin 22.6%Cash from Operations Growth (YoY) -0.1%Cash from Investing Growth (YoY) 19.2%Cash from Financing Growth (YoY) -3.7%Levered FCF Growth (YoY) 2.3%





-5%

0%

5%

10%

15%

20%

25%IT Conglomerates Software Stock Market Return: January - July 2013

IT Conglomerates S&P NASDAQ SEG SW Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBango PLC BGO $126.2 $122.9 $17.6 19.1% -22.1% -34.4% 7.0x n/a n/a n/a -9.1%Glu Mobile, Inc. GLUU $187.6 $166.4 $85.1 90.2% -10.4% 19.3% 2.0x n/a 1.8x n/a 16.6%Gree TSE:3632 $1,887.9 $1,735.3 $1,648.9 85.7% 40.4% 11.5% 1.1x 2.6x n/a n/a -45.5%Millennial Media Inc MM $788.2 $654.7 $194.2 40.9% -0.9% 68.7% 3.4x n/a 2.2x 31.8x -24.0%Myriad Group AG MYRN $119.5 $136.6 $52.6 22.1% -7.0% 3.0% 2.6x n/a n/a n/a -25.6%NQ Mobile Inc. NQ $837.6 $722.9 $109.0 69.9% 5.5% 122.4% 6.6x 121.5x 3.6x 11.6x 167.8%Opera OB:OPERA $991.1 $938.2 $231.1 43.9% 27.2% 35.9% 4.1x 14.9x n/a n/a 41.7%Qihoo 360 Technology Co. Ltd QIHU $7,987.5 $7,686.5 $369.6 89.4% 17.9% 72.6% 20.8x 116.0x 11.5x 41.9x 118.4%Pandora Media P $3,205.9 $3,130.5 $471.9 32.0% -8.2% 55.2% 6.6x n/a 4.6x 118.6x 93.3%Synchronoss Technologies, Inc. SNCR $1,383.8 $1,333.8 $304.3 58.0% 20.9% 20.3% 4.4x 21.0x 3.5x 10.4x 59.5%Tangoe TNGO $673.8 $643.4 $165.2 54.2% 8.7% 41.5% 3.9x 45.0x 3.2x 19.4x 40.4%TeleCommunication Systems TSYS $157.7 $252.3 $460.4 35.3% 8.0% 2.5% 0.5x 6.9x 0.5x 6.0x 3.9%TeleNav TNAV $241.2 $49.5 $191.8 64.0% 8.1% -12.2% 0.3x 3.2x 0.3x 12.1x -23.2%Velti Plc VELT $102.9 $133.9 $259.6 51.6% -1.9% 22.8% 0.5x n/a 0.6x 14.6x -76.1%Zynga, Inc ZNGA $2,365.8 $1,250.5 $1,122.1 73.5% 12.5% -11.8% 1.1x 8.9x 1.7x n/a 24.7%

Median: $788.2 $654.7 $231.1 54.2% 8.0% 20.3% 3.4x 14.9x 2.2x 14.6x 16.6%



Levered FCF Margin 4.4%Cash from Operations Growth (YoY) 24.8%Cash from Investing Growth (YoY) 25.3%Cash from Financing Growth (YoY) 8.5%Levered FCF Growth (YoY) -40.3%





-5%

0%

5%

10%

15%

20%

25%

30%

35%Mobile Solutions/Content Software Stock Market Return: January - July 2013

Mobile Solutions/Content S&P NASDAQ SEG SW Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAllot Communications Ltd. ALLT $476.5 $341.7 $104.6 70.5% 7.5% 23.4% 3.3x 43.3x 2.9x 13.7x -20.0%Aruba Networks, Inc. ARUN $2,029.9 $1,589.0 $586.2 70.9% 6.1% 19.3% 2.7x 44.5x 2.5x 12.6x -18.4%Brocade Communications Systems, BRCD $2,955.6 $2,790.6 $2,261.2 62.3% 21.9% 4.8% 1.2x 5.6x 1.3x 5.1x 16.6%Cisco Systems, Inc. CSCO $136,761.6 $105,631.6 $47,880.0 60.9% 27.6% 5.1% 2.2x 8.0x 2.1x 6.6x 27.7%Cyan, Inc. CYNI $462.2 $558.9 $108.0 40.5% -11.9% n/a 5.2x n/a 3.6x n/a -6.6%Compuware Corporation CPWR $2,420.3 $2,354.0 $945.9 64.2% 15.0% -6.0% 2.5x 16.5x 2.3x 10.9x 4.9%F5 Networks, Inc. FFIV $6,875.2 $6,323.9 $1,448.5 82.8% 31.5% 9.0% 4.4x 13.9x 4.0x 10.1x -13.2%Gigamon, LLC GIMO $1,053.5 $1,030.8 $105.8 79.4% 8.3% 41.6% 9.7x 117.3x n/a n/a 25.6%Juniper Networks, Inc. JNPR $10,970.5 $9,177.0 $4,469.0 63.8% 15.9% 3.1% 2.1x 12.9x 1.9x 7.4x 5.5%Keynote Systems, Inc. KEYN $369.1 $307.8 $124.8 46.8% 12.0% 2.8% 2.5x 20.6x 2.4x 16.2x 36.3%Radware Ltd. RDWR $614.2 $559.3 $189.3 81.0% 18.6% 5.7% 3.0x 15.9x 2.8x 15.1x -19.9%Riverbed Technology, Inc. RVBD $2,555.1 $2,664.0 $952.0 74.0% 14.3% 23.1% 2.8x 19.6x 2.4x 9.0x -26.1%

Median: $2,225.1 $1,971.5 $766.1 67.4% 14.7% 5.7% 2.8x 16.5x 2.4x 10.5x -0.8%








August 2013 Monthly Flash Report

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Networking/Network Performance Mgmt Software Stock Market Return: January - July 2013

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

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAVG Technologies N.V. AVG $1,205.2 $1,219.6 $395.6 84.9% 33.6% 27.2% 3.1x 9.2x 2.8x 8.7x 38.5%Check Point Software Tech Ltd. CHKP $11,063.3 $9,822.8 $1,363.8 88.4% 56.1% 4.4% 7.2x 12.8x 6.9x 11.8x 14.4%Commtouch Software Ltd. CTCH $79.0 $74.1 $25.9 80.4% 1.5% 10.9% 2.9x 189.6x 2.1x n/a -6.0%Fortinet Inc. FTNT $3,447.3 $2,944.6 $570.7 71.6% 18.1% 18.0% 5.2x 28.5x 4.6x 21.1x 0.3%Guidance Software, Inc. GUID $258.3 $232.7 $126.6 69.5% -0.7% 10.9% 1.8x n/a 1.7x 47.3x -26.2%Imperva IMPV $1,241.2 $1,130.0 $111.3 78.8% -7.1% 33.5% 10.2x n/a 7.9x 160.9x 55.6%Palo Alto Networks, Inc PANW $3,481.4 $3,119.7 $359.4 71.9% -1.9% 63.6% 8.7x n/a 6.3x 54.1x -4.5%Proofpoint, Inc. PFPT $945.1 $858.6 $118.3 70.5% -12.1% 26.2% 7.3x n/a 6.1x n/a 107.5%Sourcefire, Inc. FIRE $2,344.8 $2,216.1 $247.4 76.9% 7.5% 26.7% 9.0x 119.1x 7.2x 34.6x 56.6%Symantec Corporation SYMC $18,632.8 $16,943.8 $6,947.0 83.8% 27.4% 3.0% 2.4x 8.9x 2.4x 7.2x 37.8%Trend Micro TSE:4704 $4,374.7 $3,161.9 $1,029.7 80.9% 32.8% 2.1% 3.1x 9.4x n/a n/a 11.4%VASCO Data Security International VDSI $318.2 $232.5 $147.8 64.4% 12.2% -12.5% 1.6x n/a 1.4x 8.6x 1.1%

Median: $1,793.0 $1,717.8 $303.4 77.8% 9.9% 14.4% 4.1x 12.8x 4.6x 21.1x 12.9%



Levered FCF Margin 7.6%Cash from Operations Growth (YoY) 17.3%Cash from Investing Growth (YoY) 15.9%Cash from Financing Growth (YoY) -88.9%Levered FCF Growth (YoY) -27.8%





-10%

-5%

0%

5%

10%

15%

20%

25%Security Software Stock Market Return: January - July 2013

Security S&P NASDAQ SEG SW Index

SEG Software Index Category: Storage, Data Management & Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBrocade Communications Systems, BRCD $2,955.6 $2,790.6 $2,261.2 62.3% 21.9% 4.8% 1.2x 5.6x 1.3x 5.1x 16.6%CA, Inc. CA $13,550.4 $12,500.4 $4,626.0 86.1% 36.4% -3.5% 2.7x 7.4x 2.8x 7.5x 33.3%Cisco Systems, Inc. CSCO $136,761.6 $105,631.6 $47,880.0 60.9% 27.6% 5.1% 2.2x 8.0x 2.1x 6.6x 27.7%CommVault Systems, Inc. CVLT $3,937.3 $3,478.4 $519.0 87.0% 17.6% 21.7% 6.7x 38.2x 5.8x 23.0x 17.1%EMC EMC $54,418.2 $51,802.2 $22,308.9 62.6% 23.9% 6.4% 2.3x 9.7x 2.1x 6.5x 5.7%FalconStor Software, Inc. FALC $48.9 $21.5 $71.3 72.3% -15.1% -14.4% 0.3x n/a n/a n/a -56.6%IBM IBM $213,651.9 $237,543.9 $102,384.0 48.6% 25.0% -3.5% 2.3x 9.3x 2.3x 8.1x 0.2%Informatica Corporation INFA $4,125.3 $3,521.2 $861.8 83.4% 19.5% 6.5% 4.1x 21.0x 3.6x 13.5x 27.1%Microsoft Corporation MSFT $265,225.8 $205,301.8 $77,849.0 74.0% 38.7% 5.6% 2.6x 6.8x 2.5x 6.3x 17.0%NetApp, Inc. NTAP $14,848.9 $10,148.7 $6,332.4 59.4% 13.0% 1.6% 1.6x 12.4x 1.5x 7.0x 20.4%Oracle Corporation ORCL $149,806.6 $136,581.6 $37,180.0 80.9% 46.6% 0.2% 3.7x 7.9x 3.5x 6.9x -6.4%Splunk, Inc. SPLK $5,191.6 $4,860.4 $219.0 89.1% -12.0% 59.2% 22.2x n/a 16.6x n/a 70.9%TIBCO Software Inc. TIBX $4,095.8 $3,902.3 $1,035.2 71.5% 18.6% 4.4% 3.8x 20.3x 3.6x 13.2x 11.9%

Median: $13,550.4 $10,148.7 $4,626.0 72.3% 21.9% 4.8% 2.6x 9.3x 2.7x 7.0x 17.0%









-5%

0%

5%

10%

15%

20%

25%Storage, Data Management & Integration Software Stock Market Return: January - July 2013

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

SEG Software Index Category: Supply Chain Management & Logistics


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAmerican Software, Inc. AMSW.A $247.9 $188.2 $100.5 54.7% 15.4% -2.1% 1.9x 12.2x 1.8x 8.9x 13.4%Aspen Technology, Inc. AZPN $3,049.3 $2,879.7 $292.1 82.7% 13.8% 26.1% 9.9x 71.5x 8.4x 32.8x 16.4%Manhattan Associates, Inc. MANH $1,706.0 $1,599.5 $390.3 56.1% 23.7% 10.2% 4.1x 17.3x 3.7x 14.1x 40.2%The Descartes Systems Group Inc. TSX:DSG $724.0 $680.2 $131.1 67.7% 29.1% 12.2% 5.2x 17.9x 4.4x 14.9x 25.9%

Median: $1,215.0 $1,139.8 $211.6 61.9% 19.5% 11.2% 4.6x 17.6x 4.0x 14.5x 21.1%








0%

5%

10%

15%

20%

25%Supply Chain Management & Logistics Software Stock Market Return: January - July 2013

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

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBMC Software Inc. BMC $6,525.9 $6,356.5 $2,201.4 73.1% 27.8% 1.4% 2.9x 10.4x 2.8x 8.0x 11.9%CA Technologies CA $13,550.4 $12,500.4 $4,626.0 86.1% 36.4% -3.5% 2.7x 7.4x 2.8x 7.5x 33.3%Citrix Systems, Inc. CTXS $13,476.7 $12,776.5 $2,784.7 86.7% 22.3% 16.5% 4.6x 20.6x 4.1x 12.6x 5.6%Netscout Systems, Inc. NTCT $1,097.8 $948.8 $356.0 79.3% 24.0% 10.6% 2.7x 11.1x 2.4x 8.6x -0.7%Red Hat, Inc. RHT $9,800.3 $8,946.6 $1,377.3 84.7% 20.1% 16.4% 6.5x 32.3x 5.7x 19.6x -5.2%SolarWinds, Inc. SWI $2,673.4 $2,497.5 $295.7 92.7% 49.2% 26.8% 8.4x 17.2x 6.9x 13.8x -34.9%VMWare, Inc. VMW $35,333.5 $30,460.5 $4,861.4 85.1% 25.3% 16.3% 6.3x 24.8x 5.5x 13.6x -13.4%

Median: $9,800.3 $8,946.6 $2,201.4 85.1% 25.3% 16.3% 4.6x 17.2x 4.1x 12.6x -0.7%



Levered FCF Margin 23.5%Cash from Operations Growth (YoY) 8.5%Cash from Investing Growth (YoY) 0.8%Cash from Financing Growth (YoY) -38.5%Levered FCF Growth (YoY) -3.5%





-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Systems Management Software Stock Market Return: January - July 2013

Systems Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAdvent Software, Inc. ADVS $1,512.5 $1,342.7 $370.8 70.0% 19.3% 6.7% 3.6x 18.8x 3.4x 12.4x 83.4%Broadridge Financial BR $3,508.3 $3,850.6 $2,366.0 26.9% 15.4% 3.8% 1.6x 10.6x 1.6x 8.3x 24.5%Fidessa LSE:FDSA $1,130.4 $1,054.0 $420.5 21.6% 20.1% -2.1% 2.5x 12.5x n/a n/a 27.6%Jack Henry & Associates, Inc. JKHY $4,159.2 $4,109.8 $1,097.8 42.0% 31.9% 8.7% 3.7x 11.7x 3.5x 10.4x 19.1%MSCI, Inc. MSCI $4,231.3 $4,797.2 $992.3 69.2% 45.0% 8.0% 4.8x 10.7x 4.7x 10.9x 9.1%SS&C Corporation SSNC $2,993.9 $3,892.5 $688.0 44.2% 40.8% 70.1% 5.7x 13.9x 5.3x 13.0x 54.3%

Median: $3,251.1 $3,871.5 $840.2 43.1% 26.0% 7.4% 3.7x 12.1x 3.5x 10.9x 26.0%



Levered FCF Margin 17.3%Cash from Operations Growth (YoY) 23.0%Cash from Investing Growth (YoY) 60.7%Cash from Financing Growth (YoY) -20.9%Levered FCF Growth (YoY) 28.9%






0%

5%

10%

15%

20%

25%

30%Vertical - Finance Software Stock Market Return:January - July 2013

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBlackbaud, Inc. BLKB $1,601.7 $1,789.9 $483.6 54.3% 19.1% 22.3% 3.7x 19.4x 3.4x 16.2x 49.6%Constellation TSX:CSU $3,084.1 $3,239.1 $1,041.6 33.6% 19.9% 29.4% 3.1x 15.6x 2.8x 13.5x 21.6%EPIQ Systems, Inc. EPIQ $472.9 $721.6 $380.0 54.1% 19.1% 22.2% 1.9x 10.0x 1.7x 7.1x 1.8%Guidewire Software, Inc. GWRE $2,512.1 $2,358.0 $271.3 55.0% 3.3% 25.9% 8.7x 265.6x 7.2x 61.3x 41.8%Micros Systems MCRS $3,833.1 $3,170.8 $1,242.0 52.8% 21.4% 15.1% 2.6x 11.9x 2.4x 10.9x 11.6%PROS Holdings PRO $916.2 $833.7 $131.8 69.9% 6.7% 23.6% 6.3x 94.9x 5.5x 33.9x 69.5%Sapiens International SPNS $230.1 $204.6 $119.4 40.8% 13.5% 44.6% 1.7x 12.6x n/a n/a 52.2%Silver Spring Networks, Inc. SSNI $1,262.5 $1,121.7 $246.9 29.7% -27.3% 8.0% 4.5x n/a 2.9x 37.2x 23.2%The Active Network, Inc. ACTV $526.1 $423.6 $441.3 54.8% 2.1% 15.6% 1.0x 45.1x 0.9x 8.0x 61.6%Tyler Technologies, Inc. TYL $2,376.1 $2,373.0 $388.1 46.5% 19.8% 16.4% 6.1x 30.8x 5.4x 25.7x 49.2%

Median: $1,432.1 $1,455.8 $384.0 53.4% 16.3% 22.2% 3.4x 19.4x 2.9x 16.2x 45.5%








0%

10%

20%

30%

40%

50%

60%Vertical - Other Software Stock Market Return: January - July 2013

Vertical - Other S&P NASDAQ SEG SW Index

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $988.7 $881.6 $170.6 70.1% 4.9% 24.4% 6.5x 45.0x 6.0x 22.0x 30.4% CRM & Marketing $715.3 $609.9 $173.3 65.6% 2.2% 21.3% 3.5x 34.6x 3.1x 15.5x 2.2% ERP & Supply Chain $1,000.4 $1,174.0 $138.0 68.4% 2.8% 36.7% 9.2x 77.6x 7.6x 44.2x 37.2% Vertically Focused $1,544.2 $1,521.5 $245.8 73.0% 16.1% 22.6% 4.6x 26.5x 5.2x 15.8x 24.5% Workforce Management $2,247.5 $2,178.2 $131.6 58.5% -11.9% 43.1% 9.9x 69.5x 8.1x 33.0x 36.5%

Category Name








-5%

0%

5%

10%

15%

20%

25%

30%

35%SEG SaaS Index Stock Market Return: January - July 2013

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDBazaarvoice, Inc BV $775.9 $680.5 $160.3 65.6% -28.1% 51.0% 4.2x n/a 3.7x n/a 6.6%Constant Contact CTCT $589.3 $490.1 $268.6 71.0% 7.0% 14.8% 1.8x 26.1x 1.6x 10.0x 30.4%ExactTarget, Inc. ET $1,070.9 $861.4 $314.1 57.5% 29.1% 7.8% 2.7x n/a 2.8x 9.6x -8.0%LivePerson LPSN $508.9 $434.0 $167.9 76.2% 7.5% 14.9% 2.6x 34.6x 2.3x 19.3x -32.9%Marketo MKTO $1,124.7 $1,009.4 $74.5 57.2% -49.5% n/a 13.5x n/a 9.9x n/a 36.1%Marin Software MRIN $376.7 $267.2 $63.7 57.8% -39.9% n/a 4.2x n/a 3.4x n/a -28.9%Responsys MKTG $715.3 $609.9 $173.3 54.1% 11.2% 21.3% 3.5x 31.4x 3.1x 21.3x 124.7%Salesforce.com CRM $25,809.7 $25,404.2 $3,247.4 77.2% 2.2% 32.1% 7.8x 350.6x 6.0x 40.1x 2.2%Vocus VOCS $215.6 $257.7 $185.2 79.9% 1.9% 34.3% 1.4x 73.1x 1.3x 11.7x -43.5%

Median: $715.3 $609.9 $173.3 65.6% 2.2% 21.3% 3.5x 34.6x 3.1x 15.5x 2.2%









-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%CRM & Marketing SaaS Stock Market Return: January - July 2013

CRM & Marketing S&P NASDAQ SEG SaaS

SEG SaaS Index Category: ERP & Supply Chain


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDE2open, Inc EOPN $512.4 $482.1 $75.1 67.8% -3.4% 17.4% 6.4x n/a 6.0x n/a 37.2%Fleetmatics FLTX $1,342.1 $1,264.1 $138.0 73.2% 20.3% 39.6% 9.2x 45.0x 7.2x 24.8x 51.1%Netsuite N $6,927.4 $6,720.9 $357.4 67.8% -8.7% 32.8% 18.8x n/a 14.5x 151.1x 36.1%SciQuest SQI $560.1 $514.0 $78.7 68.4% 2.8% 36.7% 6.5x 232.3x 5.4x 25.3x 49.0%SPS Commerce SPSC $977.0 $901.9 $92.2 69.9% 8.9% 40.2% 9.8x 110.1x 8.1x 63.0x 64.1%Unit 4 ENXTAM:U $1,000.4 $1,174.0 $619.4 92.4% 14.3% 5.4% 1.9x 13.2x n/a n/a 10.3%Workday, Inc. WDAY $11,814.2 $11,029.7 $308.5 58.5% -31.9% 88.3% 35.8x n/a 22.5x n/a 29.1%

Median: $1,000.4 $1,174.0 $138.0 68.4% 2.8% 36.7% 9.2x 77.6x 7.6x 44.2x 37.2%









-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%ERP & Supply Chain SaaS Stock Market Return: January - July 2013

ERP & Supply Chain S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Vertically Focused


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAthenahealth, Inc ATHN $4,125.2 $4,337.9 $494.1 59.6% 8.6% 31.3% 8.8x 101.7x 6.4x 31.9x 48.4%DealerTrack TRAK $1,626.5 $1,619.9 $406.3 43.2% 13.8% 10.5% 4.0x 29.0x 3.4x 13.5x 24.5%Ebix Inc. EBIX $431.2 $464.9 $208.1 81.3% 41.8% 20.5% 2.2x 5.3x n/a n/a -28.7%Ellie Mae ELLI $619.6 $559.1 $122.5 76.5% 23.6% 57.2% 4.6x 19.4x 4.1x 11.9x -15.7%Medidata Solutions MDSO $2,466.7 $2,326.4 $245.8 73.0% 16.1% 24.5% 9.5x 58.8x 7.6x 32.0x 123.4%RealPage RP $1,544.2 $1,521.5 $352.4 60.6% 17.9% 20.7% 4.3x 24.1x 3.8x 15.8x -7.4%Textura Corp. TXTR $660.6 $674.8 $27.3 75.0% -55.1% n/a 24.7x n/a 15.1x n/a 44.2%

Median: $1,544.2 $1,521.5 $245.8 73.0% 16.1% 22.6% 4.6x 26.5x 5.2x 15.8x 24.5%

TTM Revenue Growth n/aTTM EBITDA Growth 13.8%TTM Earnings Growth 6.8%Gross Profit Margin 75.0%EBITDA Margin -55.1%Net Income Margin 3.3%SG&A Expenses as a % of Total Revenue 39.8%R&D Expenses as a % of Total Revenue 13.9%


Levered FCF Margin 12.9%Cash from Operations Growth (YoY) -2.0%Cash from Investing Growth (YoY) -110.8%Cash from Financing Growth (YoY) 14.8%Levered FCF Growth (YoY) 39.4%






-5%

0%

5%

10%

15%

20%

25%

30%

35%Vertically Focused SaaS Stock Market Return: January - July 2013

Vertically Focused S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Workforce Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCallidus Software Inc. CALD $250.5 $290.1 $100.6 50.3% -11.9% 12.6% 2.9x n/a 2.7x 29.0x 41.6%Cornerstone OnDemand CSOD $2,247.5 $2,178.2 $131.6 70.4% -21.5% 61.9% 16.6x n/a 10.9x n/a 45.3%Halogen Software, Inc. TSX:HGN $314.7 $353.4 $40.8 73.4% -9.6% n/a 8.7x n/a 7.2x n/a 13.8%The Ultimate Software Group, Inc. ULTI $3,740.5 $3,659.5 $370.2 57.6% 14.2% 24.2% 9.9x 69.5x 8.1x 37.0x 36.5%Workday, Inc. WDAY $11,814.2 $11,029.7 $308.5 58.5% -31.9% 88.3% 35.8x n/a 22.5x n/a 29.1%

Median: $2,247.5 $2,178.2 $131.6 58.5% -11.9% 43.1% 9.9x 69.5x 8.1x 33.0x 36.5%

TTM Revenue Growth 43.1%TTM EBITDA Growth -29.9%TTM Earnings Growth -33.7%Gross Profit Margin 58.5%EBITDA Margin -11.9%Net Income Margin -28.0%SG&A Expenses as a % of Total Revenue 58.8%R&D Expenses as a % of Total Revenue 17.3%








-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Workforce Management SaaS Stock Market Return: January - July 2013

Workforce Management S&P NASDAQ SEG SaaS

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDChannelAdvisors ECOM $402.1 $404.1 $56.3 72.6% -3.7% n/a 7.2x n/a 5.9x n/a 6.5%Concur CNQR $4,962.8 $4,682.8 $506.8 72.3% 9.2% 21.5% 9.2x 101.0x 7.3x 32.3x 27.1%Demandware, Inc. DWRE $1,339.8 $1,237.7 $83.9 69.7% -10.7% 37.5% 14.8x n/a 11.6x n/a 60.7%inContact, Inc. SAAS $452.5 $411.6 $116.4 46.8% 1.4% 25.5% 3.5x 259.5x 2.9x 91.0x 55.0%IntraLinks Holdings IL $522.3 $523.5 $220.9 71.7% 2.3% 4.6% 2.4x 102.2x 2.3x 14.5x 48.9%J2 Global JCOM $2,102.2 $2,053.0 $398.4 82.1% 46.1% 16.0% 5.2x 11.2x 3.9x 8.7x 45.8%Jive Software, Inc JIVE $922.8 $797.5 $130.5 61.8% -37.1% 36.5% 6.1x n/a 4.9x n/a -10.5%OpenTable, Inc. OPEN $1,450.8 $1,354.3 $173.8 74.8% 30.8% 15.5% 7.8x 25.3x 6.9x 15.4x 23.9%Qualys, Inc. QLYS $506.8 $415.8 $95.1 78.9% 11.1% 19.3% 4.4x 39.3x 3.7x 22.8x 2.5%Service-now.com NOW $5,852.8 $5,599.0 $327.7 61.4% -10.5% 84.5% 17.1x n/a 11.6x 132.3x 44.3%Tableau Software DATA $3,186.3 $3,145.8 $143.1 91.4% 0.1% n/a 22.0x 20696.2x 15.4x n/a 9.2%Tangoe TNGO $673.8 $643.4 $165.2 54.2% 8.7% 41.5% 3.9x 45.0x 3.2x 19.4x 40.4%Zix Corporation ZIXI $278.4 $252.1 $46.3 83.2% 21.9% 15.5% 5.4x 24.9x 4.8x 16.7x 53.1%

Median: $922.8 $797.5 $143.1 72.3% 2.3% 21.5% 6.1x 45.0x 4.9x 19.4x 40.4%



Levered FCF Margin 7.7%Cash from Operations Growth (YoY) 16.8%Cash from Investing Growth (YoY) -68.2%Cash from Financing Growth (YoY) 357.6%Levered FCF Growth (YoY) -6.0%






-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Other Public SaaS Companies SaaS Stock Market Return: January - July 2013

Other SaaS S&P NASDAQ SEG SaaS

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $1,285.6 $1,217.9 $424.0 66.3% 12.6% 19.2% 2.6x 19.9x 2.3x 11.9x 31.7% Ad Tech & Lead Generation $10,611.6 $10,395.3 $1,014.2 75.8% 44.2% 37.1% 10.2x 23.2x 7.7x 17.0x 41.4% Commerce $607.5 $495.6 $423.5 38.5% 6.1% 14.6% 1.1x 15.4x 1.1x 11.6x 30.1% Content & Media $2,853.3 $2,500.9 $471.9 52.4% 15.8% 14.1% 2.9x 16.0x 2.8x 12.2x 25.6% Gaming $2,377.37 $1,810.2 $919.3 71.5% 38.6% 21.0% 2.9x 7.3x 1.9x 7.4x 33.6% Infrastructure $629.23 $540.5 $261.3 61.2% 6.6% 8.8% 1.5x 14.0x 1.4x 9.7x 18.2% Services $1,244.29 $1,115.2 $261.1 70.1% 5.4% 41.2% 3.7x 53.5x 3.2x 16.0x 44.1% Social $2,704.56 $2,607.8 $305.8 67.0% 21.0% 47.2% 10.7x 29.5x 9.8x 42.7x 31.4% Travel $3,658.29 $3,144.7 $776.9 79.7% 17.1% 20.2% 3.8x 21.0x 4.5x 16.2x 42.5%


Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 16.4%Avg Days Outstanding: Accounts Receivable 37Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.5






0%

5%

10%

15%

20%

25%

30%

35%

40%

45%SEG Internet Index Stock Market Return: January - July 2013

DOW S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Ad Tech and Lead Generation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $1,285.6 $1,234.3 $199.6 72.5% -17.2% 67.6% 6.2x n/a 4.2x 184.3x 83.7%Baidu.com, Inc. BIDU $46,278.7 $42,861.5 $4,251.8 74.8% 50.7% 42.2% 10.1x 19.9x 7.3x 16.7x 27.1%Bankrate, Inc. RATE $1,817.0 $1,899.2 $424.0 66.5% 21.8% -10.5% 4.5x 20.6x 3.9x 14.0x 40.0%Digital Generation, Inc. DGIT $215.2 $571.0 $385.7 64.3% 26.1% 9.1% 1.5x 5.7x 1.5x 5.1x -31.7%eHealth, Inc. EHTH $598.4 $508.7 $165.9 96.6% 11.6% 10.2% 3.1x 26.3x 2.8x 16.3x 12.4%Google Inc. GOOG $295,639.4 $249,407.4 $55,797.0 57.0% 30.5% 30.5% 4.5x 14.7x 4.0x 10.7x 22.7%Groupon GRPN $5,858.1 $4,690.1 $2,376.6 65.4% 6.0% 26.8% 2.0x 32.9x 1.8x 14.8x 78.5%InterActiveCorp IACI $4,200.6 $4,209.5 $3,021.4 64.9% 15.8% 24.1% 1.4x 8.8x 1.2x 6.1x 8.8%LinkedIn LNKD $22,491.1 $21,660.8 $1,244.0 87.0% 12.8% 71.9% 17.4x 136.5x 13.2x 54.0x 80.9%Marchex Inc. MCHX $228.9 $211.8 $139.0 41.1% 1.6% -9.2% 1.5x 93.0x 1.4x 12.8x 42.9%QuinStreet QNST $399.2 $363.9 $305.1 17.5% 11.8% -17.6% 1.2x 10.1x 1.2x 9.0x 36.3%ReachLocal, Inc. RLOC $366.9 $278.6 $473.2 50.0% 1.9% 19.7% 0.6x 30.3x 0.5x 8.7x -5.3%SINA Corporation SINA $4,604.0 $3,929.6 $549.1 54.1% 5.7% 12.3% 7.2x 125.2x 6.2x 48.9x 31.9%Sohu.com Inc. SOHU $2,389.0 $2,042.7 $1,231.4 66.9% 30.3% 28.1% 1.7x 5.5x 1.4x 7.4x 30.2%Tree.Com, Inc. TREE $212.5 $139.2 $92.3 94.7% 1.9% 71.1% 1.5x 78.6x 1.2x 7.4x 4.5%Tremor, Inc. TRMR $413.7 $388.2 $112.7 43.7% -5.5% n/a 3.4x n/a 2.9x n/a -7.0%ValueClick, Inc. VCLK $1,862.7 $1,813.5 $685.7 62.3% 31.8% 12.3% 2.6x 8.3x 2.4x 7.1x 24.3%Yandex YNDX $10,611.6 $10,395.3 $1,014.2 75.8% 44.2% 37.1% 10.2x 23.2x 7.7x 17.0x 41.4%

Median: $1,839.8 $1,856.3 $511.1 65.2% 12.3% 24.1% 2.9x 21.9x 2.6x 12.8x 28.6%


Current Ratio 2.3xQuick Ratio 1.9xCash as Percent of Market Cap 14.9%Avg Days Outstanding: Accounts Receivable 42.7xAvg Days Outstanding: Accounts Payable 55.3xWorking Capital to TTM Operating Expense Ratio 0.3x






-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Internet Ad Tech and Lead Generation Stock Market Return: January - July 2013

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

SEG Internet Index Category: Commerce


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD1-800-FLOWERS.COM, Inc. FLWS $420.1 $421.0 $746.1 41.4% 6.0% 3.8% 0.6x 9.4x 0.5x 8.6x 74.1%Amazon.com, Inc. AMZN $137,622.6 $133,201.6 $66,848.0 26.0% 4.4% 23.0% 2.0x 45.6x 1.6x 22.6x 17.1%Bitauto Holdings Limited BITA $478.4 $391.6 $179.9 72.7% 17.0% 51.5% 2.2x 12.8x 1.6x 9.0x 64.9%BlueNile NILE $481.2 $441.4 $431.1 18.6% 3.6% 19.3% 1.0x 28.5x 1.0x 18.4x 0.2%DangDang DANG $756.0 $663.3 $875.9 14.7% -7.7% 35.6% 0.8x n/a 0.6x n/a 116.3%Digital River Inc. DRIV $599.2 $333.6 $399.2 80.9% 6.1% -0.4% 0.8x 13.7x 0.8x 7.6x 15.0%eBay Inc. EBAY $66,914.4 $61,011.4 $15,022.0 69.3% 29.4% 15.4% 4.1x 13.8x 3.5x 10.3x -3.5%GeekNet GKNT $95.0 $44.0 $125.2 19.5% 0.7% 13.7% 0.4x 48.7x 0.3x 12.8x -18.6%Liquidity Services, Inc. LQDT $901.3 $844.1 $496.1 44.0% 19.3% 25.8% 1.7x 8.8x 1.7x 7.3x -31.7%Mecox Lane Limited MCOX $27.8 $6.3 $135.7 35.6% -14.2% -34.4% 0.0x n/a n/a n/a -17.5%Mercadolibre, Inc. MELI $5,184.9 $4,991.3 $415.9 78.3% 35.4% 22.1% 12.0x 33.9x 10.2x 27.3x 43.1%Overstock.com, Inc. OSTK $807.7 $723.0 $1,202.6 18.7% 3.0% 13.9% 0.6x 20.0x 0.5x 16.1x 127.0%PetMed Express, Inc. PETS $322.4 $271.9 $233.1 33.8% 12.6% -0.2% 1.2x 9.3x 1.1x 9.1x 50.4%Stamps.com STMP $615.8 $549.9 $123.4 76.8% 26.2% 13.5% 4.5x 17.0x 4.1x 15.3x 52.4%

Median: $607.5 $495.6 $423.5 38.5% 6.1% 14.6% 1.1x 15.4x 1.1x 11.6x 30.1%








-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Internet Commerce Internet Stock Market Return: January - July 2013

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAOL, Inc. AOL $2,853.3 $2,500.9 $2,200.6 30.8% 21.9% 0.9% 1.1x 5.2x 1.1x 5.7x 21.6%DemandMedia DMD $566.5 $457.1 $395.0 52.4% 17.9% 19.1% 1.2x 6.5x 1.1x 4.0x -32.7%InterActiveCorp IACI $4,200.6 $4,209.5 $3,021.4 64.9% 15.8% 24.1% 1.4x 8.8x 1.2x 6.1x 8.8%Netflix NFLX $14,405.6 $13,825.5 $3,943.7 28.0% 4.4% 14.1% 3.5x 80.4x 2.9x 33.1x 165.7%Pandora P $3,205.9 $3,130.5 $471.9 32.0% -8.2% 55.2% 6.6x n/a 4.6x 118.6x 93.3%Shutterstock, Inc. SSTK $1,781.8 $1,674.8 $183.2 61.8% 21.0% 38.4% 9.1x 43.5x 7.1x 31.6x 101.8%TheStreet.com, Inc. TST $68.1 $21.2 $50.5 51.1% -2.6% -10.6% 0.4x n/a n/a n/a 18.9%WebMD Health Corp. WBMD $1,620.6 $1,394.4 $488.3 57.6% 10.9% -3.4% 2.9x 26.1x 2.7x 12.2x 117.2%XO Group XOXO $294.1 $219.2 $129.6 82.7% 16.5% 2.5% 1.7x 10.2x 1.6x 8.0x 25.6%Yahoo! Inc. YHOO $30,411.2 $27,957.9 $4,823.2 69.2% 26.6% -3.1% 5.8x 21.8x 6.2x 17.3x 39.9%Youku YOKU $3,656.9 $3,090.0 $328.4 25.6% -0.5% 96.3% 9.4x n/a 5.5x n/a 13.2%

Median: $2,853.3 $2,500.9 $471.9 52.4% 15.8% 14.1% 2.9x 16.0x 2.8x 12.2x 25.6%

TTM Revenue Growth 96.3%TTM EBITDA Growth 4.8%TTM Earnings Growth 1.8%Gross Profit Margin 25.6%EBITDA Margin -0.5%Net Income Margin 2.2%SG&A Expenses as a % of Total Revenue 33.8%R&D Expenses as a % of Total Revenue 9.4%








0%

5%

10%

15%

20%

25%

30%

35%

40%

45%Internet Content & Media Stock Market Return: January - July 2013

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDChangYou.com CYOU $1,725.1 $1,577.6 $699.3 82.8% 61.4% 25.2% 2.3x 3.7x 2.1x 4.2x 18.4%Giant Interactive GA $1,952.3 $1,482.6 $356.5 90.1% 64.9% 16.8% 4.2x 6.4x 3.6x 5.6x 43.5%Netease NTES $8,272.2 $5,799.3 $1,349.5 69.6% 47.4% 8.1% 4.3x 9.1x 3.7x 7.4x 53.3%NCSoft KOSE:A036 $3,015.4 $2,508.1 $716.6 69.5% n/a 34.1% 3.5x n/a n/a n/a 4.7%Perfect World PWRD $1,020.1 $769.1 $430.6 79.8% 24.6% -10.3% 1.8x 7.3x 1.7x 9.9x 99.2%Sohu.com Inc. SOHU $2,389.0 $2,042.7 $1,231.4 66.9% 30.3% 28.1% 1.7x 5.5x 1.4x 7.4x 30.2%Tencent Holdings SEHK:700 $83,369.0 $80,271.3 $7,689.4 57.5% 38.6% 50.3% 10.4x 27.1x n/a n/a 37.1%Zynga, Inc. ZNGA $2,365.8 $1,250.5 $1,122.1 73.5% 12.5% -11.8% 1.1x 8.9x 1.7x n/a 24.7%

Median: $2,377.4 $1,810.2 $919.3 71.5% 38.6% 21.0% 2.9x 7.3x 1.9x 7.4x 33.6%



Levered FCF Margin 20.5%Cash from Operations Growth (YoY) -0.1%Cash from Investing Growth (YoY) 14.3%Cash from Financing Growth (YoY) -109.8%Levered FCF Growth (YoY) -40.3%





0%

10%

20%

30%

40%

50%

60%Internet Gaming Stock Market Return: January - July 2013

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTD8x8, Inc. EGHT $659.3 $601.4 $112.4 69.6% 13.8% 21.4% 5.4x 38.9x 4.5x 23.4x 21.3%Akamai Technologies, Inc. AKAM $8,401.6 $7,870.7 $1,469.3 72.3% 37.6% 17.0% 5.4x 14.2x 4.7x 10.9x 12.0%Brightcove Inc. BCOV $287.4 $257.0 $98.0 67.2% -8.2% 27.7% 2.6x n/a 2.2x 40.8x 4.2%BroadSoft, Inc. BSFT $835.7 $756.9 $166.1 79.4% 13.8% 13.2% 4.6x 33.1x 3.9x 17.9x -18.9%Digital River Inc. DRIV $599.2 $333.6 $399.2 80.9% 6.1% -0.4% 0.8x 13.7x 0.8x 7.6x 15.0%Envivio, Inc. ENVI $70.9 $21.1 $33.1 62.0% -49.8% -38.8% 0.6x n/a 0.6x n/a 41.2%Harmonic Inc HLIT $775.7 $614.0 $510.8 46.1% 5.9% -3.9% 1.2x 20.4x 1.3x 10.9x 44.7%Interactive Intelligence, Inc. ININ $1,130.2 $1,061.5 $257.8 65.8% 5.8% 20.2% 4.1x 71.5x 3.5x 49.5x 65.2%Limelight Networks, Inc. LLNW $230.8 $112.2 $181.7 53.1% -1.9% 4.3% 0.6x n/a 0.6x 8.6x 2.6%Mitel Networks Corp. MITL $260.5 $479.6 $576.9 55.6% 13.8% -5.7% 0.8x 6.0x 0.8x 5.0x 52.0%Polycom, Inc. PLCM $1,624.4 $1,014.5 $1,372.4 58.6% 7.4% -5.1% 0.7x 10.0x 0.7x 5.0x -13.9%Rovi Corporation ROVI $2,269.5 $2,936.7 $626.3 82.2% 33.4% -7.8% 4.7x 14.0x 4.4x 9.5x 41.8%SeaChange International Inc. SEAC $385.8 $271.5 $156.1 53.0% 7.3% -3.2% 1.7x 23.9x 1.6x 9.6x 16.3%ShoreTel, Inc. SHOR $229.0 $212.3 $306.4 60.4% -3.1% 36.4% 0.7x n/a 0.6x 11.9x -13.9%Sonus Networks, Inc SONS $964.5 $751.8 $264.7 56.6% -5.4% 0.8% 2.8x n/a 2.7x n/a 74.9%Synacor, Inc SYNC $90.6 $53.7 $120.5 45.5% 7.0% 16.9% 0.4x 6.3x 0.4x 6.4x -41.9%Tucows Inc. TCX $76.5 $80.3 $117.2 22.7% 5.5% 14.8% 0.7x 12.6x 0.6x 9.0x 31.0%VeriSign VRSN $6,868.9 $6,227.7 $929.5 80.9% 61.9% 13.3% 6.7x 10.8x 6.3x 9.8x 20.1%

Median: $629.2 $540.5 $261.3 61.2% 6.6% 8.8% 1.5x 14.0x 1.4x 9.7x 18.2%








-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Internet Infrastructure Stock Market Return: January - July 2013

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDAngie's List, Inc. ANGI $1,285.6 $1,234.3 $199.6 72.5% -17.2% 67.6% 6.2x n/a 4.2x 184.3x 83.7%Bankrate RATE $1,817.0 $1,899.2 $424.0 66.5% 21.8% -10.5% 4.5x 20.6x 3.9x 14.0x 40.0%Carbonite, Inc. CARB $342.5 $284.0 $96.0 66.1% -1.9% 33.2% 3.0x n/a 2.5x 67.0x 35.6%LifeLock, Inc. LOCK $988.5 $819.0 $322.5 71.8% 4.7% 41.2% 2.5x 53.5x 2.1x 16.0x 37.8%Monster Worldwide, Inc. MWW $666.6 $704.8 $844.1 54.6% 15.8% -11.3% 0.8x 5.3x 0.8x 4.5x -3.4%Qihoo QIHU $7,987.5 $7,686.5 $369.6 89.4% 17.9% 72.6% 20.8x 116.0x 11.5x 41.9x 118.4%Shutterfly SFLY $2,017.2 $1,889.2 $700.5 53.2% 11.8% 32.0% 2.7x 22.8x 2.3x 12.8x 73.8%Tree.Com, Inc. TREE $212.5 $139.2 $92.3 94.7% 1.9% 71.1% 1.5x 78.6x 1.2x 7.4x 4.5%Trulia, Inc. TRLA $1,203.0 $996.2 $92.8 86.1% -0.6% 81.1% 10.7x n/a 7.7x 45.1x 118.3%VistaPrint VPRT $1,664.2 $1,851.4 $1,167.5 65.7% 9.5% 14.4% 1.6x 16.8x 1.5x 11.0x 48.2%Xoom XOOM $1,083.2 $979.5 $99.9 68.4% 4.4% n/a 9.8x 225.0x 7.9x n/a 28.7%Zillow Z $2,551.2 $2,372.2 $133.0 88.9% 6.1% 71.3% 17.8x 292.2x 11.9x 87.2x 161.1%

Median: $1,244.3 $1,115.2 $261.1 70.1% 5.4% 41.2% 3.7x 53.5x 3.2x 16.0x 44.1%



Levered FCF Margin 4.0%Cash from Operations Growth (YoY) 50.4%Cash from Investing Growth (YoY) -24.2%Cash from Financing Growth (YoY) -5.1%Levered FCF Growth (YoY) -6.5%





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Internet Services Stock Market Return: January - July 2013

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDFacebook FB $89,619.8 $81,534.8 $6,118.0 74.9% 45.2% 41.4% 13.3x 29.5x 9.9x 18.2x 31.4%FriendFinder Networks Inc FFN $17.0 $489.6 $305.8 67.0% 25.5% -6.8% 1.6x 6.3x n/a n/a -16.3%LinkedIn LNKD $22,491.1 $21,660.8 $1,244.0 87.0% 12.8% 71.9% 17.4x 136.5x 13.2x 54.0x 80.9%Mail.ru Group LSE:MAIL $6,680.9 $5,732.4 $680.8 55.1% 42.8% 40.2% 8.4x 19.7x n/a n/a 5.1%Renren Inc RENN $1,261.4 $406.9 $190.6 62.9% -42.3% 47.2% 2.1x n/a 1.6x n/a -4.3%Yelp, Inc. YELP $2,704.6 $2,607.8 $178.7 92.8% -1.2% 66.6% 14.6x n/a 9.8x 71.7x 112.2%YY, Inc. YY $2,375.1 $2,132.9 $198.6 54.2% 21.0% 132.1% 10.7x 51.1x 8.1x 31.4x 205.3%

Median: $2,704.6 $2,607.8 $305.8 67.0% 21.0% 47.2% 10.7x 29.5x 9.8x 42.7x 31.4%



Levered FCF Margin 11.7%Cash from Operations Growth (YoY) 52.0%Cash from Investing Growth (YoY) 78.1%Cash from Financing Growth (YoY) -95.1%Levered FCF Growth (YoY) n/a






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Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDCtrip CTRP $4,749.5 $4,058.6 $761.9 74.7% 16.8% 23.6% 5.3x 31.7x 4.6x 18.5x 58.0%Expedia EXPE $6,409.4 $5,856.6 $4,391.3 77.6% 13.8% 19.8% 1.3x 9.6x 1.2x 6.2x -25.2%HomeAway AWAY $2,567.1 $2,230.8 $310.8 83.7% 18.4% 21.7% 7.2x 39.0x 6.0x 20.5x 36.9%MakeMyTrip MMYT $533.6 $451.8 $228.8 22.7% -6.6% 16.4% 2.0x n/a 4.3x n/a 7.6%Orbitz OWW $971.2 $1,201.5 $791.9 80.7% 13.4% 2.6% 1.5x 11.3x 1.4x 8.2x 219.8%Priceline PCLN $45,167.1 $41,638.6 $5,525.7 78.7% 35.9% 20.6% 7.5x 21.0x 6.1x 16.2x 37.2%Travelzoo TZOO $440.4 $366.6 $156.0 89.4% 17.4% 2.3% 2.4x 13.5x 2.2x 10.9x 47.8%TripAdvisor Inc TRIP $10,726.8 $10,715.3 $859.0 98.3% 39.0% 22.8% 12.5x 32.0x 10.1x 25.3x 69.9%

Median: $3,658.3 $3,144.7 $776.9 79.7% 17.1% 20.2% 3.8x 21.0x 4.5x 16.2x 42.5%








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Travel S&P NASDAQ SEG Internet Index

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