Software Equity Group Flash Report...PLM Product Lifecycle Management R&D Research and Development...

Public Software Companies By Product CategoryP bli S S C i

Select M&A Transactionsand

Financial and Stock Market Performance

Software Equity Group Flash ReportApril 2013

Public SaaS CompaniesPublic Internet Companies By Product Category

Software Equity Group, L.L.C.

[email protected]

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

f: (858) 509-2818

12220 El Camino Real, #320San Diego, CA 92130

p: (858) 509-2800

ABOUT OUR FIRM

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently 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 technology domainexpertise. 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.


THE SEG SOFTWARE COMPANY MENTORING PROGRAM

As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever they’d like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and financings in their product category. And the best news – we don’t charge for this mentoring advice. It’s complimentary. It’s our way of building value, and relationships.

We’re looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. We’ll then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, we’ll discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. We’ll assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. We’ll discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. We’re a terrific sounding board. We’ll give you an informed, honest and frank opinion – that’s what we’re known for. And we’ll offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide.

If you run a profitable software company with revenue in excess of $10 million, and you’re interested in learning more about SEG’s complimentary, no obligation mentoring .2800-509-858or [email protected], please contact Kris Beible at

ADDITIONAL RESEARCH

http://www.softwareequity.com/research_quarterly_reports.aspx, please visit: 03Q1For our complimentary current and archived Quarterly Reports from

http://www.softwareequity.com/research_flash_reports.aspx, please visit: 2008For our complimentary current and archived Monthly Flash Reports from July

http://www.softwareequity.com/research_annual_reports.aspx, please visit: 2011through 2003 For our Annual Reports from

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 System

List of Commonly Used Acronyms

NASDAQ 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


Select Software Industry M&A TransactionsApril 2013


Select March 2013 Software Industry M&A TransactionsDate

Announced EV/ Revenue

Mar-28-2013 Amazon.com Inc. (NasdaqGS:AMZN) Goodreads, Inc. - - -Mar-28-2013 Room 77, Inc. CheckMate - - -Mar-26-2013 Tracsis Plc (AIM:TRCS) Sky High PLC (AIM:SKHG) $12.2 $5.8 0.5xMar-25-2013 Yahoo! Inc. (NasdaqGS:YHOO) Summly Limited - $30.0 -Mar-25-2013 TIBCO International Holdings, B.V. Maporama Solutions SAS - - -Mar-25-2013 Mercadolibre, Inc. (NasdaqGS:MELI) Neosur S.A. - - -Mar-24-2013 Apple Inc. (NasdaqGS:AAPL) Wifislam, Inc. - - -Mar-22-2013 TripAdvisor Inc. (NasdaqGS:TRIP) Beeem, Inc - - -Mar-21-2013 j2 Global, Inc. (NasdaqGS:JCOM) Data Lock Limited - $0.5 -Mar-20-2013 Yahoo! Inc. (NasdaqGS:YHOO) Jybe, Inc. - - -Mar-20-2013 ShareThis, Inc. Socialize, Inc. - - -Mar-20-2013 Pinterest Livestar - - -Mar-19-2013 Autodesk, Inc. (NasdaqGS:ADSK) Firehole Composites - - -Mar-19-2013 Echo Global Logistics, Inc. (NasdaqGS:ECHO) Open Mile, Inc. - - -Mar-19-2013 Blackbaud Inc. (NasdaqGS:BLKB) MyCharity Limited - - -Mar-19-2013 Microsoft Corporation (NasdaqGS:MSFT) Netbreeze GmbH - - -

Acquirer TargetTarget TTM Revenue ($mm)

Implied Enterprise Value ($mm)

Mar-19-2013 Microsoft Corporation (NasdaqGS:MSFT) Netbreeze GmbH - - -Mar-18-2013 j2 Global, Inc. (NasdaqGS:JCOM) MetroFax, Inc. - - -Mar-18-2013 OpenMarket Inc. mBlox, Inc., Premium SMS Business - - -Mar-14-2013 Facebook, Inc. (NasdaqGS:FB) Hot Studio Inc. - - -Mar-13-2013 NetSuite Inc. (NYSE:N) Element Fusion, L.L.C. - - -Mar-13-2013 PayPal, Inc. Duff Research, LLC - - -Mar-13-2013 Oracle Corporation (NasdaqGS:ORCL) Nimbula, Inc. - - -Mar-13-2013 The McClatchy Company (NYSE:MNI) Tru Measure - - -Mar-12-2013 Corporation Service Company, Inc. CSC Digital Brand Services $56.80 $157.3 2.8xMar-12-2013 IMS Health Incorporated Appature Inc. - - -Mar-12-2013 Becton, Dickinson and Company (NYSE:BDX) Cato Software Solutions GmbH - - -Mar-12-2013 Net Element International Inc. (NasdaqCM:NETE) Unified Payments, LLC - $24.1 -Mar-12-2013 Fleetcor Technologies Operating Company, Llc Telenav, Inc., Enterprise Business Unit - $10.0 -Mar-12-2013 Google Inc. (NasdaqGS:GOOG) DNNresearch Inc. - - -Mar-11-2013 Concur Technologies, Inc. (NasdaqGS:CNQR) conTgo limited - - -Mar-11-2013 Tripwire, Inc. nCircle Network Security, Inc. - - -Mar-11-2013 Yahoo Japan Corporation (TSE:4689) Dreampass - - -Mar-08-2013 JDS Uniphase Corporation (NasdaqGS:JDSU) Arieso Ltd. - $85.0 -Mar-08-2013 Facebook, Inc. (NasdaqGS:FB) Mixtent, Inc. - - -Mar-07-2013 Spindle, Inc. (OTCPK:SPDL) MeNetwork, Inc. - $10.8 -Mar-07-2013 SAP AG (DB:SAP) Camilion Solutions, Inc. - - -Mar-06-2013 OpenText Corporation (NasdaqGS:OTEX) Resonate KT Limited - - -Mar-06-2013 WorldPay Limited YESpay International Limited - - -Mar-05-2013 Komutel Inc. Novo Technologies, Inc. - - -Mar-05-2013 Perceptive Software, Inc. AccessVia, Inc. - - -Mar-05-2013 Perceptive Software, Inc. Twistage, Inc. - - -Mar-04-2013 The Gores Group LLC Meridian Medical Management - - -Mar-04-2013 Microsoft Corporation (NasdaqGS:MSFT) MetricsHub, Inc. - - -

SEG Software Index Category Performance


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

YoY Stock Market Return

SEG Software Index $2,225.1 $2,048.9 $561.4 68.9% 19.9% 9.8% 2.7x 12.8x 2.5x 9.9x 0.7% Billing & Service Management $768.5 $663.1 $410.8 59.4% 21.1% 10.4% 2.0x 8.6x 1.4x 7.6x 14.1% Business Intelligence $1,141.0 $942.4 $388.5 74.3% 10.8% 10.8% 3.0x 18.4x 2.9x 12.7x -4.4% Development Platforms $2,990.4 $2,965.1 $1,149.7 77.9% 21.7% 3.0% 2.6x 8.9x 2.8x 8.9x -3.9% Engineering & PLM $3,491.3 $3,361.1 $1,172.9 84.4% 20.2% 10.2% 2.8x 14.3x 2.5x 9.8x 19.6% Enterprise Resource Planning $3,529.2 $3,722.1 $1,390.1 75.8% 22.8% 2.6% 2.4x 10.2x 2.6x 7.2x 9.8% Financial & Accounting $1,774.7 $2,136.4 $681.3 56.9% 25.6% 9.8% 3.3x 12.6x 2.9x 9.3x 21.3% Gaming $2,121.8 $1,938.7 $2,038.8 64.7% 13.7% 4.4% 1.2x 7.5x 1.0x 5.8x 6.3% IT Conglomerates $152,295.6 $139,082.6 $72,930.0 71.2% 33.8% 0.5% 2.5x 8.0x 2.4x 7.2x 2.2% Mobile Solutions/Content $503.3 $365.9 $216.0 72.0% 4.5% 34.0% 2.1x 16.3x 1.4x 19.1x -40.1% Networking & Network Performance Managemen $2,650.6 $2,655.7 $970.7 66.0% 16.1% 12.5% 2.3x 13.7x 2.0x 8.1x -19.0% Security $847.7 $818.7 $339.9 80.2% 16.6% 15.4% 2.6x 8.9x 2.3x 13.6x -8.1% Storage, Data Mgmt & Integration $11,480.2 $7,825.2 $3,472.9 74.0% 22.0% 4.2% 2.5x 9.1x 2.2x 7.2x -10.0% Supply Chain Management & Logistics $955.6 $1,120.8 $274.1 66.6% 16.0% 11.3% 3.6x 15.0x 3.6x 12.7x 12.2% Systems Management $9,767.9 $8,888.4 $2,197.5 84.9% 25.2% 17.2% 4.8x 20.6x 4.2x 13.5x -8.6% Vertical - Finance $2,725.3 $3,320.9 $751.0 43.8% 26.5% 6.7% 3.7x 11.2x 3.6x 10.5x 10.4% Vertical - Other $1,051.9 $1,285.4 $354.0 53.8% 14.1% 21.3% 3.2x 23.5x 2.7x 13.3x 24.9%

Category Name

TTM Revenue Growth 10.4%TTM EBITDA Growth -0.4%TTM Earnings Growth -32.6%Gross Profit Margin 59.4%EBITDA Margin 21.1%Net Income Margin 1.6%SG&A Expenses as a % of Total Revenue 54.1%R&D Expenses as a % of Total Revenue 16.6%

Current Ratio 1.9Quick Ratio 1.8Cash as Percent of Market Cap 10.0%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 29Working Capital to TTM Operating Expense Ratio 0.4x

Levered FCF Margin 8.8%Cash from Operations Growth (YoY) 24.6%Cash from Investing Growth (YoY) -128.0%Cash from Financing Growth (YoY) 110.1%Levered FCF Growth (YoY) 18.2%

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

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

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12%SEG SW Index Software Stock Market Return: Jan - Mar 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


Amdocs Limited DOX $5,864.4 $4,903.1 $3,266.3 35.6% 18.5% 1.8% 1.5x 8.1x 1.4x 7.0x 14.8%AsiaInfo Holdings, Inc. ASIA $863.7 $546.4 $547.9 39.1% 12.2% 13.9% 1.0x 8.2x 0.9x 7.2x -5.8%CSG Systems International, Inc. CSGS $673.4 $779.8 $756.9 49.3% 20.1% 3.0% 1.0x 5.1x 1.0x 4.9x 40.0%Evolving Systems, Inc. EVOL $72.3 $63.5 $26.2 68.6% 23.8% 38.0% 2.4x 10.1x 2.2x 8.3x 13.4%MIND C.T.I. Ltd. MNDO $34.9 $16.0 $20.2 61.1% 23.0% 6.9% 0.8x 3.5x n/a n/a 0.5%NeuStar, Inc NSR $3,077.4 $3,320.8 $831.4 77.6% 44.5% 34.0% 4.0x 9.0x 3.7x 7.6x 24.9%Redknee Solutions TSX:RKN $264.7 $239.3 $57.7 67.8% 10.0% -0.6% 4.1x 41.3x 1.1x 14.5x 178.8%Synchronoss Technologies, Inc. SNCR $1,173.2 $1,126.5 $273.7 57.7% 22.2% 19.5% 4.1x 18.6x 3.3x 10.4x -2.8%

Median: $768.5 $663.1 $410.8 59.4% 21.1% 10.4% 2.0x 8.6x 1.4x 7.6x 14.1%

TTM Revenue Growth 10.4%TTM EBITDA Growth 21.9%TTM Earnings Growth 4.2%Gross Profit Margin 59.4%EBITDA Margin 21.1%Net Income Margin 11.0%SG&A Expenses as a % of Total Revenue 19.4%R&D Expenses as a % of Total Revenue 14.9%


Levered FCF Margin 8.7%Cash from Operations Growth (YoY) 31.2%Cash from Investing Growth (YoY) 17.6%Cash from Financing Growth (YoY) 25.2%Levered FCF Growth (YoY) 6.5%





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12%Billing and Service Management Software Stock Market Return: Jan - Mar 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


Actuate Corporation BIRT $286.7 $221.0 $138.8 84.0% 17.2% 2.9% 1.6x 9.2x 1.6x 7.3x -4.4%MicroStrategy Incorporated MSTR $1,141.0 $918.7 $594.6 74.3% 8.4% 5.8% 1.5x 18.4x 1.4x 12.7x -27.8%Pegasystems Inc. PEGA $1,065.4 $942.4 $461.7 65.9% 10.8% 10.8% 2.0x 18.9x 1.9x 10.9x -26.4%Progress Software Corporation PRGS $1,321.0 $999.6 $337.3 87.2% 23.2% 7.5% 3.0x 12.8x 2.9x 8.9x -3.3%PROS Holdings PRO $750.5 $667.0 $117.8 71.3% 8.8% 21.9% 5.7x 64.3x 4.6x 30.1x 45.3%Qlik Technologies QLIK $2,231.8 $2,036.0 $388.5 88.9% 5.1% 21.2% 5.2x 102.4x 4.3x 35.6x -19.3%Verisk VRSK $10,360.9 $11,727.6 $1,534.3 60.4% 44.8% 15.2% 7.6x 17.1x 6.8x 15.0x 31.2%

Median: $1,141.0 $942.4 $388.5 74.3% 10.8% 10.8% 3.0x 18.4x 2.9x 12.7x -4.4%

TTM Revenue Growth 10.8%TTM EBITDA Growth -0.2%TTM Earnings Growth 14.5%Gross Profit Margin 74.3%EBITDA Margin 10.8%Net Income Margin 4.7%SG&A Expenses as a % of Total Revenue 51.8%R&D Expenses as a % of Total Revenue 16.7%


Levered FCF Margin 8.3%Cash from Operations Growth (YoY) 9.5%Cash from Investing Growth (YoY) -162.4%Cash from Financing Growth (YoY) -13.6%Levered FCF Growth (YoY) -9.9%





-5%

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20%

25%Business Intelligence Software Stock Market Return: Jan - Mar 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


Actuate Corporation BIRT $286.7 $221.0 $138.8 84.0% 17.2% 2.9% 1.6x 9.2x 1.6x 7.3x -4.4%Adobe Systems Incorporated ADBE $21,841.7 $19,712.5 $4,366.3 87.8% 29.7% 3.1% 4.5x 15.2x 4.7x 16.6x 26.8%BSQUARE Corporation BSQR $34.2 $14.5 $101.4 18.8% 2.1% 4.7% 0.1x 6.7x n/a n/a -8.1%Compuware Corporation CPWR $2,650.6 $2,655.7 $970.7 66.0% 16.8% -2.3% 2.7x 16.3x 2.6x 11.7x 35.9%Magic Software Enterprises Ltd. MGIC $198.1 $161.8 $126.4 41.9% 17.0% 11.5% 1.3x 7.5x 1.2x n/a -18.7%Microsoft Corporation MSFT $239,602.5 $185,722.5 $72,930.0 75.4% 39.6% 1.2% 2.5x 6.4x 2.2x 5.3x -11.3%Oracle Corporation ORCL $152,295.6 $139,082.6 $37,149.0 80.4% 46.5% 0.5% 3.7x 8.0x 3.6x 7.2x 10.9%Progress Software Corporation PRGS $1,321.0 $999.6 $337.3 87.2% 23.2% 7.5% 3.0x 12.8x 2.9x 8.9x -3.3%Red Hat, Inc. RHT $9,767.9 $8,888.4 $1,328.8 84.9% 20.1% 17.3% 6.7x 33.3x 5.8x 20.5x -15.6%Software AG XTRA:SOW $3,330.2 $3,274.4 $1,380.9 63.9% 27.5% -4.6% 2.4x 8.6x n/a n/a 3.3%

Median: $2,990.4 $2,965.1 $1,149.7 77.9% 21.7% 3.0% 2.6x 8.9x 2.8x 8.9x -3.9%



Levered FCF Margin 16.8%Cash from Operations Growth (YoY) -1.2%Cash from Investing Growth (YoY) 23.4%Cash from Financing Growth (YoY) -25.0%Levered FCF Growth (YoY) -6.1%





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12%Development Platforms Software Stock Market Return: Jan - Mar 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


ANSYS, Inc. ANSS $7,567.2 $7,043.2 $798.0 87.6% 47.6% 15.4% 8.8x 18.5x 7.9x 15.4x 25.2%Autodesk, Inc. ADSK $9,231.8 $8,023.1 $2,312.2 89.7% 20.7% 4.4% 3.5x 16.8x 3.3x 11.1x -2.5%Cadence Design Systems, Inc CDNS $3,937.0 $3,556.9 $1,326.4 85.6% 22.7% 15.4% 2.7x 11.8x 2.5x 7.9x 17.7%Cimatron Ltd. CIMT $58.0 $46.2 $42.3 87.0% 15.2% 3.9% 1.1x 7.2x n/a n/a 55.8%Dassault Systèmes DSY $14,335.8 $12,746.8 $2,674.3 86.8% 31.3% 13.8% 4.8x 15.2x n/a n/a 25.8%GSE Systems Inc. GVP $36.7 $13.4 $52.2 33.9% 6.2% 2.2% 0.3x 4.2x 0.3x n/a -16.0%Mentor Graphics Corp MENT $2,035.5 $2,048.9 $1,088.7 83.3% 19.7% 7.3% 1.9x 9.6x 1.8x 7.5x 21.5%Parametric Technology Corporation PMTC $3,045.6 $3,165.3 $1,257.2 70.5% 17.9% 3.2% 2.5x 14.1x 2.3x 9.8x -8.8%Stratasys, Inc. SSYS $2,848.6 $2,695.2 $215.2 51.1% 23.7% 38.1% 12.5x 52.7x 6.1x 27.5x 103.2%Synopsys Inc SNPS $5,518.2 $5,095.4 $1,805.7 82.3% 19.4% 13.1% 2.8x 14.6x 2.5x 8.8x 17.0%

Median: $3,491.3 $3,361.1 $1,172.9 84.4% 20.2% 10.2% 2.8x 14.3x 2.5x 9.8x 19.6%



Levered FCF Margin 13.5%Cash from Operations Growth (YoY) 19.5%Cash from Investing Growth (YoY) 0.0%Cash from Financing Growth (YoY) 106.5%Levered FCF Growth (YoY) -3.5%





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14%Engineering & PLM Software Stock Market Return: Jan - Mar 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


American Software, Inc. AMSW.A $226.6 $174.5 $103.2 54.5% 16.0% 3.3% 1.7x 10.6x 1.6x n/a -3.0%Oracle Corporation ORCL $152,295.6 $139,082.6 $37,149.0 80.4% 46.5% 0.5% 3.7x 8.0x 3.6x 7.2x 10.9%QAD Inc. QADA $197.2 $148.0 $252.2 57.3% 6.7% 2.0% 0.6x 8.8x 0.6x 6.3x -2.0%Sage Group plc LSE:SGE $6,102.7 $6,323.5 $2,160.7 93.7% 29.6% 0.5% 2.9x 9.9x n/a n/a 8.7%SAP SAP $95,726.8 $98,921.4 $21,389.7 71.2% 33.8% 14.0% 4.6x 13.7x 4.3x 12.4x 15.0%Unit 4 ENXTAM:UN $955.6 $1,120.8 $619.4 92.4% 14.3% 5.4% 1.8x 12.6x n/a n/a 12.2%

Median: $3,529.2 $3,722.1 $1,390.1 75.8% 22.8% 2.6% 2.4x 10.2x 2.6x 7.2x 9.8%

TTM Revenue Growth 2.6%TTM EBITDA Growth 0.5%TTM Earnings Growth -2.3%Gross Profit Margin 75.8%EBITDA Margin 22.8%Net Income Margin 13.9%SG&A Expenses as a % of Total Revenue 34.2%R&D Expenses as a % of Total Revenue 13.4%


Levered FCF Margin 17.5%Cash from Operations Growth (YoY) 1.6%Cash from Investing Growth (YoY) -129.7%Cash from Financing Growth (YoY) -68.8%Levered FCF Growth (YoY) -12.2%





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12%Enterprise Resource Planning Software Stock Market Return: Jan - Mar 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


ACI Worldwide, Inc. ACIW $1,927.7 $2,237.9 $666.6 66.1% 23.6% 43.3% 3.4x 14.2x 2.8x 9.3x 21.3%Bottomline Technologies EPAY $1,072.1 $925.0 $242.0 53.5% 9.3% 14.9% 3.8x 41.0x 3.5x 18.0x 2.0%DST Systems, Inc. DST $3,155.0 $3,681.7 $2,576.6 15.6% 14.5% 7.9% 1.4x 9.9x 1.8x 8.3x 31.4%Fair Isaac Corporation FICO $1,621.7 $2,034.9 $696.1 70.1% 27.5% 9.8% 2.9x 10.6x 2.6x 9.0x 4.1%Fiserv FISV $11,729.7 $14,601.7 $4,482.0 42.1% 29.8% 3.3% 3.3x 10.9x 3.0x 9.2x 26.6%Intuit Inc INTU $19,460.9 $19,281.9 $4,192.0 81.9% 31.3% 6.5% 4.6x 14.7x 4.0x 10.2x 9.1%Model N, Inc MODN $424.9 $417.5 $88.5 54.6% 1.7% n/a 4.7x 275.9x n/a n/a n/aNetSol Technologies Inc. KASE:NETS $16.3 $18.4 $29.0 59.3% 51.5% 40.8% 0.6x 1.2x n/a n/a 34.9%Sage Group plc LSE:SGE $6,102.7 $6,323.5 $2,160.7 93.7% 29.6% 0.5% 2.9x 9.9x n/a n/a 8.7%

Median: $1,774.7 $2,136.4 $681.3 56.9% 25.6% 9.8% 3.3x 12.6x 2.9x 9.3x 21.3%



Levered FCF Margin 13.0%Cash from Operations Growth (YoY) -7.7%Cash from Investing Growth (YoY) -2.0%Cash from Financing Growth (YoY) -41.8%Levered FCF Growth (YoY) 20.3%





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12%Financial & Accounting Software Stock Market Return: Jan - Mar 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


Activision Blizzard ATVI $16,226.6 $11,851.6 $4,856.0 65.8% 32.4% 2.1% 2.4x 7.5x 2.8x 8.3x 13.7%Electronic Arts Inc. EA $5,311.3 $4,373.3 $3,956.0 63.6% 9.9% 2.4% 1.1x 11.1x 1.1x 6.0x 7.4%GameLoft SA ENXTPA:GF $520.1 $464.1 $241.8 87.4% 12.2% 21.1% 1.9x 15.8x n/a n/a 5.3%Konami Corporation TSE: 9766 $2,763.5 $2,515.8 $2,675.1 32.5% 15.3% -12.4% 0.9x 6.1x 1.0x 5.6x -30.0%Take-Two Interactive TTWO $1,480.0 $1,361.6 $1,063.1 36.2% -6.4% 23.6% 1.3x n/a 0.8x 3.8x 5.0%Ubisoft Entertainment ENXTPA:UB $1,024.6 $1,213.7 $1,402.5 68.9% 24.7% 6.4% 0.9x 3.5x n/a n/a 46.6%

Median: $2,121.8 $1,938.7 $2,038.8 64.7% 13.7% 4.4% 1.2x 7.5x 1.0x 5.8x 6.3%

TTM Revenue Growth 4.4%TTM EBITDA Growth -11.9%TTM Earnings Growth 6.1%Gross Profit Margin 64.7%EBITDA Margin 13.7%Net Income Margin 5.4%SG&A Expenses as a % of Total Revenue 27.3%R&D Expenses as a % of Total Revenue 29.7%


Levered FCF Margin 8.7%Cash from Operations Growth (YoY) 9.8%Cash from Investing Growth (YoY) -27.8%Cash from Financing Growth (YoY) -16.8%Levered FCF Growth (YoY) 53.9%





-5%

0%

5%

10%

15%

20%

25%Gaming Software Stock Market Return: Jan - Mar 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


Accretive Health AH $988.2 $791.9 $973.6 20.7% 2.9% 32.2% 0.8x 27.6x 0.8x 10.2x -49.1%Allscripts Healthcare Solutions Inc. MDRX $2,399.2 $2,739.5 $1,446.3 41.9% 8.6% 0.2% 1.9x 22.0x 1.8x 9.7x -18.1%Cerner Corporation CERN $16,315.0 $15,474.3 $2,610.1 78.8% 27.3% 20.9% 5.9x 21.7x 5.1x 16.0x 24.4%Computer Programs and Sys, Inc. CPSI $599.5 $580.0 $183.3 44.0% 24.2% 5.7% 3.2x 13.0x 2.9x 10.8x -4.3%Greenway Medical Technologies, Inc GWAY $471.0 $443.7 $134.7 55.7% 5.9% 27.4% 3.3x 56.0x 2.7x 17.2x 4.1%MedAssets MDAS $1,144.6 $2,025.2 $640.1 78.3% 30.5% 10.7% 3.2x 10.4x 3.0x 9.2x 46.3%Merge Healthcare MRGE $270.1 $483.6 $248.9 60.2% 12.4% 7.1% 1.9x 15.6x 1.8x 8.1x -50.7%Quality Systems, Inc. QSII $1,087.7 $981.0 $457.9 60.0% 23.6% 9.6% 2.1x 9.1x 2.0x 7.4x -58.2%

Median: $1,038.0 $886.4 $549.0 57.9% 18.0% 10.1% 2.7x 18.7x 2.4x 9.9x -11.2%








0%

2%

4%

6%

8%

10%

12%

14%

16%

18%Healthcare Software Stock Market Return: Jan - Mar 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


Hewlett Packard HPQ $46,345.4 $62,357.4 $118,680.0 23.5% 12.1% -5.0% 0.5x 4.3x 0.6x 4.4x 0.0%IBM IBM $237,725.0 $259,942.0 $104,507.0 48.1% 25.7% -2.3% 2.5x 9.7x 2.4x 9.0x 2.2%Microsoft Corporation MSFT $239,602.5 $185,722.5 $72,930.0 75.4% 39.6% 1.2% 2.5x 6.4x 2.2x 5.3x -11.3%Oracle Corporation ORCL $152,295.6 $139,082.6 $37,149.0 80.4% 46.5% 0.5% 3.7x 8.0x 3.6x 7.2x 10.9%SAP AG SAP $95,726.8 $98,921.4 $21,389.7 71.2% 33.8% 14.0% 4.6x 13.7x 4.3x 12.4x 15.0%

Median: $152,295.6 $139,082.6 $72,930.0 71.2% 33.8% 0.5% 2.5x 8.0x 2.4x 7.2x 2.2%








0%

2%

4%

6%

8%

10%

12%IT Conglomerates Software Stock Market Return: Jan - Mar 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


Glu Mobile, Inc. GLUU $199.9 $177.6 $87.5 89.8% -11.2% 32.2% 2.0x n/a 2.0x n/a -38.1%Gree TSE:3632 $2,933.2 $2,738.2 $1,891.6 88.2% 47.1% 49.5% 1.4x 3.1x n/a n/a -50.4%Millennial Media Inc MM $503.3 $365.9 $177.7 40.5% -1.0% 71.4% 2.1x n/a 1.3x 20.8x -73.0%Myriad Group AG MYRN $154.7 $157.2 $56.3 19.1% -18.6% -7.8% 2.8x n/a n/a n/a -42.1%NQ Mobile Inc. NQ $395.9 $273.3 $91.8 72.0% 4.2% 125.6% 3.0x 70.1x 1.5x 5.0x -15.3%Opera OB:OPERA $775.8 $721.3 $216.0 44.6% 27.8% 34.0% 3.3x 12.0x n/a n/a n/aQihoo 360 Technology Co. Ltd QIHU $3,536.4 $3,155.7 $329.0 90.0% 19.5% 96.0% 9.6x 49.2x 5.9x 21.4x 21.2%Synchronoss Technologies, Inc. SNCR $1,173.2 $1,126.5 $273.7 57.7% 22.2% 19.5% 4.1x 18.6x 3.3x 10.4x -2.8%TeleNav TNAV $261.9 $54.1 $209.2 72.6% 16.1% -3.7% 0.3x 1.6x 0.3x 64.7x -8.1%Velti Plc VELT $130.6 $122.3 $270.3 55.1% 3.2% 42.9% 0.5x 14.0x 0.5x 16.8x -85.3%Zynga, Inc ZNGA $2,639.3 $1,454.5 $1,281.3 72.5% 4.5% 12.4% 1.1x 25.5x 1.4x 19.1x -74.4%

Median: $503.3 $365.9 $216.0 72.0% 4.5% 34.0% 2.1x 16.3x 1.4x 19.1x -40.1%

TTM Revenue Growth 34.0%TTM EBITDA Growth -36.5%TTM Earnings Growth -8.0%Gross Profit Margin 72.0%EBITDA Margin 4.5%Net Income Margin -3.1%SG&A Expenses as a % of Total Revenue 38.5%R&D Expenses as a % of Total Revenue 19.1%







0%

2%

4%

6%

8%

10%

12%

14%Mobile Solutions/Content Software Stock Market Return: Jan - Mar 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


Allot Communications Ltd. ALLT $388.8 $245.9 $104.8 70.4% 12.3% 34.7% 2.3x 19.0x 2.0x 9.8x -48.6%Aruba Networks, Inc. ARUN $2,819.0 $2,416.7 $571.0 70.9% 7.1% 22.8% 4.2x 59.5x 3.5x 14.3x 11.0%Brocade Communications Systems, BRCD $2,602.6 $2,818.6 $2,265.9 62.3% 21.8% 4.8% 1.2x 5.7x 1.2x 4.7x 0.3%Cisco Systems, Inc. CSCO $111,411.6 $81,336.6 $47,252.0 61.0% 28.3% 5.4% 1.7x 6.1x 1.6x 5.2x -1.2%Compuware Corporation CPWR $2,650.6 $2,655.7 $970.7 66.0% 16.8% -2.3% 2.7x 16.3x 2.6x 11.7x 35.9%F5 Networks, Inc. FFIV $7,000.9 $6,483.1 $1,420.3 83.0% 33.4% 17.8% 4.6x 13.7x 4.0x 9.8x -34.0%Juniper Networks, Inc. JNPR $9,444.8 $7,595.2 $4,365.4 63.3% 13.7% -1.9% 1.7x 12.7x 1.7x 6.8x -19.0%Keynote Systems, Inc. KEYN $255.0 $203.8 $125.2 47.9% 13.1% 12.5% 1.6x 12.4x 1.5x 8.1x -29.4%Riverbed Technology, Inc. RVBD $2,437.4 $2,558.4 $836.9 75.5% 16.1% 15.2% 3.1x 19.0x 2.2x 7.8x -46.9%

Median: $2,650.6 $2,655.7 $970.7 66.0% 16.1% 12.5% 2.3x 13.7x 2.0x 8.1x -19.0%








April 2013 Monthly Flash Report

0%

2%

4%

6%

8%

10%

12%Networking/Network Performance Mgmt Software Stock Market Return: Jan - Mar 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


AVG Technologies N.V. AVG $751.9 $797.2 $356.0 84.7% 30.1% 30.7% 2.2x 7.4x 1.9x 5.8x -6.9%Check Point Software Tech Ltd. CHKP $9,352.4 $7,849.0 $1,342.7 88.4% 56.7% 7.7% 5.8x 10.3x 5.5x 9.5x -26.4%Commtouch Software Ltd. CTCH $75.7 $70.6 $23.9 81.8% 11.7% 3.9% 3.0x 25.2x 2.1x 18.9x -0.3%Fortinet Inc. FTNT $3,826.9 $3,413.2 $533.6 72.4% 20.9% 23.1% 6.4x 30.6x 5.4x 20.3x -14.4%Guidance Software, Inc. GUID $277.8 $245.7 $129.5 71.9% 5.5% 23.8% 1.9x 34.7x 1.7x 14.4x -1.8%Imperva IMPV $943.6 $840.1 $104.2 79.0% -5.0% 33.1% 8.1x n/a 6.3x 104.2x -1.7%Palo Alto Networks, Inc PANW $3,912.9 $3,575.4 $323.8 71.6% -0.4% 74.8% 11.0x n/a 7.5x 67.2x n/aProofpoint, Inc. PFPT $557.1 $474.6 $106.3 68.8% -11.3% 29.9% 4.5x n/a 3.7x n/a n/aSymantec Corporation SYMC $17,009.2 $15,833.2 $6,839.0 84.3% 26.9% 1.7% 2.3x 8.6x 2.3x 6.9x 32.0%Trend Micro TSE:4704 $3,689.3 $2,425.7 $1,084.9 81.3% 31.9% -2.6% 2.2x 7.0x n/a n/a -9.3%VASCO Data Security International VDSI $326.3 $219.8 $154.0 64.6% 16.0% -8.4% 1.4x 8.9x 1.4x 8.8x -21.8%Websense, Inc. WBSN $548.4 $553.7 $361.5 83.6% 17.1% -0.7% 1.5x 8.9x 1.6x 12.8x -28.9%

Median: $847.7 $818.7 $339.9 80.2% 16.6% 15.4% 2.6x 8.9x 2.3x 13.6x -8.1%








-2%

0%

2%

4%

6%

8%

10%

12%

14%Security Software Stock Market Return: Jan - Mar 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


Brocade Communications Systems, BRCD $2,602.6 $2,818.6 $2,265.9 62.3% 21.8% 4.8% 1.2x 5.7x 1.2x 4.7x 0.3%CA, Inc. CA $11,480.2 $10,361.2 $4,680.0 86.3% 36.1% -1.6% 2.2x 6.1x 2.2x 5.9x -8.6%Cisco Systems, Inc. CSCO $111,411.6 $81,336.6 $47,252.0 61.0% 28.3% 5.4% 1.7x n/a 1.6x 5.2x -1.2%CommVault Systems, Inc. CVLT $3,785.0 $3,387.7 $471.6 86.9% 16.5% 23.4% 7.2x 43.6x 6.2x 27.3x 65.2%EMC EMC $50,182.2 $46,891.8 $21,713.9 62.7% 23.9% 8.5% 2.2x 9.1x 2.0x 7.4x -20.0%FalconStor Software, Inc. FALC $128.4 $99.2 $75.4 72.6% -13.5% -9.0% 1.3x n/a 1.2x n/a -28.3%IBM IBM $237,725.0 $259,942.0 $104,507.0 48.1% 25.7% -2.3% 2.5x 9.7x 2.4x 9.0x 2.2%Informatica Corporation INFA $3,717.2 $3,184.1 $811.6 83.9% 22.2% 3.5% 3.9x 17.7x 3.7x 12.9x -34.8%Microsoft Corporation MSFT $239,602.5 $185,722.5 $72,930.0 75.4% 39.6% 1.2% 2.5x 6.4x 2.2x 5.3x -11.3%NetApp, Inc. NTAP $12,311.5 $7,825.2 $6,318.4 58.9% 13.6% 6.0% 1.2x 9.1x 1.2x 5.7x -23.7%Oracle Corporation ORCL $152,295.6 $139,082.6 $37,149.0 80.4% 46.5% 0.5% 3.7x 8.0x 3.6x 7.2x 10.9%Pervasive Software Inc. PVSW n/a n/a $50.7 83.7% 9.0% 2.8% n/a n/a n/a n/a n/aSplunk, Inc. SPLK $3,947.6 $3,641.6 $198.9 89.2% -8.7% 64.5% 18.3x n/a 13.5x n/a n/aTIBCO Software Inc. TIBX $3,245.9 $3,002.7 $1,036.7 72.0% 20.3% 7.9% 2.9x 14.3x 2.8x 10.4x -33.7%

Median: $11,480.2 $7,825.2 $3,472.9 74.0% 22.0% 4.2% 2.5x 9.1x 2.2x 7.2x -10.0%









0%

2%

4%

6%

8%

10%

12%

14%Storage, Data Management & Integration Software Stock Market Return: Jan - Mar 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


American Software, Inc. AMSW.A $226.6 $174.5 $103.2 54.5% 16.0% 3.3% 1.7x 10.6x 1.6x n/a -3.0%Aspen Technology, Inc. AZPN $3,017.7 $2,842.5 $274.1 81.7% 7.6% 22.9% 10.4x 135.8x 8.7x 52.4x 57.3%Manhattan Associates, Inc. MANH $1,458.5 $1,355.4 $376.2 57.0% 22.8% 14.3% 3.6x 15.8x 3.3x 12.7x 56.3%The Descartes Systems Group Inc. TSX:DSG $586.7 $549.8 $126.9 66.6% 28.9% 11.3% 4.3x 15.0x 3.8x 12.6x 7.4%Unit 4 ENXTAM:UN $955.6 $1,120.8 $619.4 92.4% 14.3% 5.4% 1.8x 12.6x n/a n/a 12.2%

Median: $955.6 $1,120.8 $274.1 66.6% 16.0% 11.3% 3.6x 15.0x 3.6x 12.7x 12.2%








0%

2%

4%

6%

8%

10%

12%

14%

16%Supply Chain Management & Logistics Software Stock Market Return: Jan - Mar 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


BMC Software Inc. BMC $6,620.0 $6,781.5 $2,197.5 72.5% 27.7% 1.3% 3.1x 11.2x 3.0x 7.5x 15.4%CA Technologies CA $11,480.2 $10,361.2 $4,680.0 86.3% 36.1% -1.6% 2.2x 6.1x 2.2x 5.9x -8.6%Citrix Systems, Inc. CTXS $13,466.1 $12,537.4 $2,586.1 87.5% 23.6% 17.2% 4.8x 20.6x 4.2x 13.5x -8.6%Netscout Systems, Inc. NTCT $1,022.5 $896.3 $341.9 79.0% 25.1% 15.1% 2.6x 10.4x 2.4x 8.9x 20.8%Red Hat, Inc. RHT $9,767.9 $8,888.4 $1,328.8 84.9% 20.1% 17.3% 6.7x 33.3x 5.8x 20.5x -97.7%SolarWinds, Inc. SWI $4,430.5 $4,201.6 $269.0 93.2% 49.2% 35.6% 15.6x 31.7x 12.5x 22.4x 52.9%VMWare, Inc. VMW $33,788.0 $29,607.2 $4,605.0 84.3% 25.2% 22.2% 6.4x 25.5x 5.7x 14.6x -29.8%

Median: $9,767.9 $8,888.4 $2,197.5 84.9% 25.2% 17.2% 4.8x 20.6x 4.2x 13.5x -8.6%



Levered FCF Margin 20.2%Cash from Operations Growth (YoY) 19.5%Cash from Investing Growth (YoY) 20.7%Cash from Financing Growth (YoY) -1.7%Levered FCF Growth (YoY) -4.3%





0%

2%

4%

6%

8%

10%

12%

14%

Systems Management Software Stock Market Return: Jan - Mar 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


Advent Software, Inc. ADVS $1,412.3 $1,337.9 $358.8 68.7% 21.2% 10.0% 3.7x 17.6x 3.6x 10.8x 9.3%Broadridge Financial BR $3,026.9 $3,292.2 $2,336.3 26.2% 15.1% 3.4% 1.4x 9.4x 1.4x 7.0x 3.9%Fidessa LSE:FDSA $1,093.3 $983.9 $452.9 21.3% 20.4% 0.1% 2.2x 10.7x n/a n/a 11.5%Jack Henry & Associates, Inc. JKHY $3,981.7 $3,918.2 $1,072.6 42.0% 31.7% 7.9% 3.7x 11.5x 3.4x 10.2x 35.4%MSCI, Inc. MSCI $4,093.8 $4,694.3 $950.1 69.7% 45.1% 5.5% 4.9x 10.9x 4.6x 10.5x -7.8%SS&C Corporation SSNC $2,423.7 $3,349.7 $551.8 45.7% 38.6% 48.8% 6.1x 15.7x 4.7x 11.6x 28.5%

Median: $2,725.3 $3,320.9 $751.0 43.8% 26.5% 6.7% 3.7x 11.2x 3.6x 10.5x 10.4%









0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%Vertical - Finance Software Stock Market Return:Jan - Mar 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


Blackbaud, Inc. BLKB $1,317.0 $1,520.3 $447.4 54.7% 14.5% 20.6% 3.4x 23.5x 3.0x 13.9x -10.8%Constellation TSX:CSU $2,608.1 $2,610.6 $891.2 33.5% 20.9% 15.2% 2.9x 14.0x 2.4x 12.7x 37.6%EPIQ Systems, Inc. EPIQ $504.0 $712.6 $344.8 57.8% 21.6% 32.0% 2.1x 9.6x 1.8x 7.2x 16.0%Guidewire Software, Inc. GWRE $2,169.9 $2,004.1 $260.1 57.7% 7.2% 28.2% 7.7x 107.0x 6.5x 55.1x 24.9%Micros Systems MCRS $3,610.8 $2,982.1 $1,204.9 53.4% 21.7% 14.3% 2.5x 11.4x 2.2x 9.9x -17.7%PROS Holdings PRO $750.5 $667.0 $117.8 71.3% 8.8% 21.9% 5.7x 64.3x 4.6x 30.1x 45.3%Sapiens International SPNS $210.4 $182.2 $113.9 41.7% 13.8% 62.9% 1.6x 11.6x n/a n/a 54.5%Silver Spring Networks, Inc. SSNI $786.8 $1,050.6 $196.7 16.1% -41.5% -17.0% 5.3x n/a n/a n/a n/aThe Active Network, Inc. ACTV $255.4 $202.1 $418.9 54.2% 1.0% 24.2% 0.5x 47.1x 0.4x 3.9x -75.1%Tyler Technologies, Inc. TYL $1,928.6 $1,940.2 $363.3 46.2% 19.1% 17.4% 5.3x 28.0x 4.7x 22.4x 59.5%

Median: $1,051.9 $1,285.4 $354.0 53.8% 14.1% 21.3% 3.2x 23.5x 2.7x 13.3x 24.9%








0%

5%

10%

15%

20%

25%

30%Vertical - Other Software Stock Market Return: Jan - Mar 2013

Vertical - Other S&P NASDAQ SEG SW Index

SEG SaaS Index Category Performance


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


SEG SaaS Index $760.1 $657.5 $162.2 69.4% 8.2% 27.7% 6.1x 33.5x 4.7x 16.8x 11.9% CRM & Marketing $507.9 $487.1 $170.8 70.8% 2.8% 34.6% 4.2x 25.8x 2.6x 18.1x -14.8% ERP & Supply Chain $636.6 $570.5 $77.1 69.5% 5.9% 30.7% 7.4x 95.7x 5.6x 36.6x 58.7% Vertically Focused $1,402.0 $1,333.1 $270.3 65.9% 16.5% 21.6% 5.2x 26.3x 4.2x 14.7x 19.5% Workforce Management $2,300.5 $2,236.2 $195.8 57.0% -20.2% 42.5% 11.3x 67.8x 8.0x 26.4x 42.1%

Category Name








0%

2%

4%

6%

8%

10%

12%SEG SaaS Index Stock Market Return: Jan - Mar 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


Constant Contact CTCT $398.3 $304.8 $252.2 70.8% 7.8% 17.6% 1.2x 15.4x 1.1x 7.0x -56.4%ExactTarget, Inc. ET $1,598.0 $1,489.8 $292.3 64.6% 1.4% 40.9% 5.1x n/a 4.0x 203.8x -10.5%LivePerson LPSN $758.4 $655.0 $157.4 77.4% 12.1% 18.3% 4.2x 34.5x 3.6x 20.1x -19.0%Marin Software MRIN $507.9 $487.1 $59.6 58.4% -38.0% 64.9% 8.2x n/a n/a n/a n/aResponsys MKTG $434.8 $329.3 $162.8 53.7% 11.8% 20.7% 2.0x 17.1x 1.7x 12.4x -26.1%Salesforce.com CRM $26,189.1 $25,969.4 $3,050.2 77.6% 2.8% 34.6% 8.5x 309.2x 6.7x 38.7x 15.7%Vocus VOCS $299.3 $345.7 $170.8 80.3% -0.2% 48.7% 2.0x n/a 1.7x 16.0x 6.8%

Median: $507.9 $487.1 $170.8 70.8% 2.8% 34.6% 4.2x 25.8x 2.6x 18.1x -14.8%









0%

2%

4%

6%

8%

10%

12%

14%CRM & Marketing SaaS Stock Market Return: Jan - Mar 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


E2open, Inc EOPN $499.8 $467.4 $74.4 69.0% 5.9% 22.2% 6.3x 106.3x 5.6x n/a n/aFleetmatics FLTX $838.7 $762.7 $127.5 72.1% 18.6% 38.1% 6.0x 32.2x 4.7x 16.7x n/aNetsuite N $5,864.6 $5,681.8 $308.8 69.1% -5.2% 30.7% 18.4x n/a 14.1x 148.2x 59.2%SciQuest SQI $541.1 $495.7 $66.5 69.5% 5.7% 24.4% 7.5x 131.4x 5.4x 27.6x 57.7%SPS Commerce SPSC $636.6 $570.5 $77.1 71.4% 8.7% 33.0% 7.4x 85.1x 5.8x 45.5x 58.7%

Median: $636.6 $570.5 $77.1 69.5% 5.9% 30.7% 7.4x 95.7x 5.6x 36.6x 58.7%



Levered FCF Margin -1.7%Cash from Operations Growth (YoY) 51.0%Cash from Investing Growth (YoY) -114.2%Cash from Financing Growth (YoY) 1333.1%Levered FCF Growth (YoY) 35.9%






0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%ERP & Supply Chain SaaS Stock Market Return: Jan - Mar 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


Athenahealth, Inc ATHN $3,525.7 $3,332.6 $422.3 60.5% 12.1% 30.3% 7.9x 65.3x 6.1x 29.4x 30.9%DealerTrack TRAK $1,265.0 $1,249.6 $388.9 43.2% 13.8% 10.1% 3.2x 23.4x 2.8x 11.1x -2.9%Ebix Inc. EBIX $602.5 $646.8 $199.4 80.9% 42.4% 18.0% 3.2x 7.7x 2.9x 6.7x -30.0%Ellie Mae ELLI $628.8 $568.5 $101.8 77.3% 25.5% 83.5% 5.6x 21.9x 4.4x 12.6x 115.5%Medidata Solutions MDSO $1,539.0 $1,416.6 $218.3 71.3% 16.6% 18.4% 6.5x 39.2x 5.3x 23.9x 117.6%RealPage RP $1,568.8 $1,545.0 $322.2 60.1% 16.4% 24.9% 4.8x 29.2x 4.0x 16.8x 8.0%

Median: $1,402.0 $1,333.1 $270.3 65.9% 16.5% 21.6% 5.2x 26.3x 4.2x 14.7x 19.5%



Levered FCF Margin 11.1%Cash from Operations Growth (YoY) 12.2%Cash from Investing Growth (YoY) -115.7%Cash from Financing Growth (YoY) 110.1%Levered FCF Growth (YoY) -17.8%






-5%

0%

5%

10%

15%

20%Vertically Focused SaaS Stock Market Return: Jan - Mar 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


Callidus Software Inc. CALD $170.2 $201.2 $95.0 47.0% -17.1% 13.3% 2.1x n/a 1.9x 19.9x -41.5%Cornerstone OnDemand CSOD $1,733.5 $1,662.7 $117.9 70.7% -23.4% 61.5% 14.1x n/a 9.2x n/a 56.1%The Ultimate Software Group, Inc. ULTI $2,867.5 $2,809.8 $332.3 56.5% 12.5% 23.4% 8.5x 67.8x 6.9x 32.9x 42.1%Workday, Inc. WDAY $10,230.6 $9,465.2 $273.7 57.4% -32.5% 103.6% 34.6x n/a 22.0x n/a n/a

Median: $2,300.5 $2,236.2 $195.8 57.0% -20.2% 42.5% 11.3x 67.8x 8.0x 26.4x 42.1%

TTM Revenue Growth 42.5%TTM EBITDA Growth -43.0%TTM Earnings Growth 0.6%Gross Profit Margin 57.0%EBITDA Margin -20.2%Net Income Margin -27.9%SG&A Expenses as a % of Total Revenue 57.0%R&D Expenses as a % of Total Revenue 17.9%








-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%Workforce Management SaaS Stock Market Return: Jan - Mar 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


Bazaarvoice, Inc BV $532.8 $427.3 $148.4 65.4% -18.2% 57.9% 2.9x n/a 2.3x n/a -63.2%Concur CNQR $3,818.6 $3,589.0 $462.2 71.9% 9.7% 25.1% 7.8x 80.1x 6.2x 28.2x 19.7%Demandware, Inc. DWRE $761.8 $660.0 $79.5 69.4% -4.8% 40.5% 8.3x n/a 6.8x n/a -14.9%IntraLinks Holdings IL $348.9 $349.8 $216.7 71.2% 3.2% 1.8% 1.6x 51.2x 1.6x 9.9x 20.2%Jive Software, Inc JIVE $1,000.2 $865.6 $113.7 60.5% -32.2% 47.1% 7.6x n/a 5.7x n/a -44.0%OpenTable, Inc. OPEN $1,445.8 $1,342.3 $161.6 74.1% 28.5% 15.9% 8.3x 29.1x 7.1x 16.3x 55.6%Qualys, Inc. QLYS $389.3 $272.9 $91.4 79.9% 11.3% 20.0% 3.0x 26.4x 2.5x 16.6x n/aService-now.com NOW $4,774.8 $4,460.1 $243.7 58.0% -8.9% 90.3% 18.3x n/a 11.4x 152.9x n/aTangoe TNGO $467.6 $440.0 $154.5 54.3% 8.5% 47.2% 2.8x 33.5x 2.3x 14.0x -34.1%Zix Corporation ZIXI $221.3 $198.3 $43.4 82.4% 27.6% 13.7% 4.6x 16.5x 4.0x 14.1x 23.0%

Median: $647.3 $550.0 $151.5 70.3% 5.8% 32.8% 6.1x 31.3x 4.8x 16.3x 2.4%

TTM Revenue Growth 90.3%TTM EBITDA Growth 0.6%TTM Earnings Growth -35.1%Gross Profit Margin 58.0%EBITDA Margin -8.9%Net Income Margin -6.0%SG&A Expenses as a % of Total Revenue 56.3%R&D Expenses as a % of Total Revenue 16.6%








0%

2%

4%

6%

8%

10%

12%Other Public SaaS Companies SaaS Stock Market Return: Jan - Mar 2013

Other SaaS S&P NASDAQ SEG SaaS

SEG Internet Index Category Performance


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


SEG Internet Index $1,118.0 $955.2 $393.3 66.8% 12.9% 20.4% 2.0x 13.1x 1.9x 10.2x -3.8% Ad Tech & Lead Generation $1,543.6 $1,380.9 $493.2 65.7% 14.0% 25.1% 1.6x 12.6x 1.4x 10.0x -9.5% Commerce $395.1 $314.0 $393.1 38.4% 7.6% 14.4% 0.9x 10.4x 1.1x 7.7x 4.5% Content & Media $2,448.2 $2,146.1 $427.1 52.4% 14.8% 12.6% 2.1x 16.6x 2.3x 13.1x 12.8% Gaming $2,265.99 $1,455.7 $887.8 71.2% 36.3% 21.9% 2.8x 6.3x 1.6x 4.4x -7.9% Infrastructure $438.05 $360.1 $250.3 61.6% 8.0% 9.2% 0.9x 11.7x 1.4x 9.0x -24.4% Services $1,061.29 $997.2 $216.1 69.5% 8.5% 42.2% 2.8x 16.5x 2.5x 14.4x 4.6% Social $1,510.66 $1,415.5 $314.4 73.2% 16.1% 65.2% 7.9x 32.8x 6.7x 33.5x -29.8%


Current Ratio 2.2Quick Ratio 2.0Cash as Percent of Market Cap 19.9%Avg Days Outstanding: Accounts Receivable 37Avg Days Outstanding: Accounts Payable 46Working Capital to TTM Operating Expense Ratio 0.5






0%

2%

4%

6%

8%

10%

12%SEG Internet Index Stock Market Return: Jan - Mar 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


Angie's List, Inc. ANGI $1,145.0 $1,106.7 $155.8 71.8% -31.3% 73.0% 7.1x n/a 4.6x n/a 4.6%Baidu.com, Inc. BIDU $30,664.9 $27,555.2 $3,578.5 78.1% 56.3% 53.8% 7.7x 13.7x 5.6x 11.5x -39.8%Bankrate, Inc. RATE $1,194.6 $1,304.9 $457.2 68.0% 24.9% 7.8% 2.9x 11.4x 2.9x 11.8x -51.8%Digital Generation, Inc. DGIT $177.6 $546.7 $386.6 64.5% 26.0% 19.2% 1.4x 5.4x 1.4x 4.1x -37.1%eHealth, Inc. EHTH $374.1 $233.3 $155.5 97.2% 13.0% 2.5% 1.5x 11.6x 1.4x 8.9x 9.6%Google Inc. GOOG $261,814.6 $220,936.6 $50,175.0 59.1% 32.4% 32.4% 4.4x 13.6x 3.6x 10.0x 23.9%Groupon GRPN $4,029.8 $2,819.7 $2,334.5 69.2% 6.5% 45.0% 1.2x 18.6x 1.1x 10.4x -66.7%InterActiveCorp IACI $3,764.8 $3,700.1 $2,800.9 64.6% 15.0% 36.0% 1.3x 8.8x 1.1x 6.0x -9.0%Marchex Inc. MCHX $158.1 $142.1 $138.3 41.7% 1.1% -5.7% 1.0x 97.2x 1.0x 11.0x -5.6%QuinStreet QNST $255.5 $247.4 $329.1 19.3% 13.0% -16.4% 0.8x 5.8x 0.8x 5.1x -43.1%ReachLocal, Inc. RLOC $422.9 $327.4 $455.4 50.1% 1.7% 21.3% 0.7x 43.1x 0.6x 10.7x 109.8%SINA Corporation SINA $3,219.8 $2,515.4 $529.3 53.2% 2.5% 9.6% 4.8x 191.3x 4.2x 36.3x -25.2%Sohu.com Inc. SOHU $1,892.7 $1,456.9 $1,067.2 66.8% 32.7% 25.2% 1.4x 4.2x 1.1x 4.4x -10.1%Tree.Com, Inc. TREE $211.5 $131.3 $77.4 94.5% -6.0% 41.8% 1.7x n/a 1.2x 7.9x 142.3%ValueClick, Inc. VCLK $2,248.9 $2,254.8 $660.9 62.3% 30.3% 25.0% 3.4x 11.2x 3.0x 8.9x 49.7%Yandex YNDX $8,686.7 $8,289.5 $941.9 75.0% 43.1% 43.6% 8.8x 20.4x 6.8x 15.1x -13.9%

Median: $1,543.6 $1,380.9 $493.2 65.7% 14.0% 25.1% 1.6x 12.6x 1.4x 10.0x -9.5%


Current Ratio 2.2xQuick Ratio 2.0xCash as Percent of Market Cap 20.5%Avg Days Outstanding: Accounts Receivable 40.1xAvg Days Outstanding: Accounts Payable 47.8xWorking Capital to TTM Operating Expense Ratio 0.3x

Levered FCF Margin 12.5%Cash from Operations Growth (YoY) 16.3%Cash from Investing Growth (YoY) 16.9%Cash from Financing Growth (YoY) -94.3%Levered FCF Growth (YoY) 9.0%





-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%Internet Ad Tech and Lead Generation Stock Market Return: Jan - Mar 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


1-800-FLOWERS.COM, Inc. FLWS $321.7 $316.5 $733.1 41.1% 5.6% 5.0% 0.4x 7.7x 0.4x 6.0x 64.0%Amazon.com, Inc. AMZN $121,133.3 $114,070.3 $61,093.0 24.8% 4.1% 27.1% 1.9x 45.5x 1.5x 23.6x 31.6%Bitauto Holdings Limited BITA $407.7 $311.4 $169.6 72.4% 15.8% 57.8% 1.8x 11.6x 1.3x 7.7x 86.8%Bluefly, Inc. BFLY $22.9 $23.8 $93.4 17.2% -21.7% -2.9% 0.3x n/a n/a n/a n/aBlueNile NILE $429.4 $343.1 $400.0 18.8% 3.4% 14.9% 0.9x 25.1x 0.8x 14.0x 4.5%DangDang DANG $332.7 $280.5 $833.2 13.9% -8.6% 43.5% 0.3x n/a 0.3x n/a -48.8%Digital River Inc. DRIV $499.8 $104.1 $386.2 82.9% 9.7% -3.0% 0.3x 2.8x 0.3x 1.6x -24.4%eBay Inc. EBAY $70,224.6 $65,335.6 $14,072.0 70.0% 29.3% 20.8% 4.6x 15.9x 4.0x 12.0x 46.9%Liquidity Services, Inc. LQDT $940.6 $894.7 $491.5 43.8% 19.9% 37.3% 1.8x 9.2x 1.6x 7.2x -33.5%Mecox Lane Limited MCOX $30.7 -$3.2 $151.8 35.8% -13.2% -30.3% n/a 0.2x n/a n/a -56.7%Mercadolibre, Inc. MELI $4,263.2 $4,072.2 $373.6 79.8% 37.1% 25.0% 10.9x 29.4x 9.0x 24.1x -1.3%Overstock.com, Inc. OSTK $291.4 $197.8 $1,099.3 18.1% 2.6% 4.3% 0.2x 7.0x 0.2x 7.0x 135.1%PetMed Express, Inc. PETS $258.2 $212.7 $232.6 33.5% 11.7% -0.3% 0.9x 7.8x 0.9x 7.7x 8.4%Stamps.com STMP $382.5 $346.6 $115.7 76.0% 22.3% 13.9% 3.0x 13.4x 2.8x 10.6x -10.4%

Median: $395.1 $314.0 $393.1 38.4% 7.6% 14.4% 0.9x 10.4x 1.1x 7.7x 4.5%








-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Internet Commerce Internet Stock Market Return: Jan - Mar 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


AOL, Inc. AOL $2,971.9 $2,624.3 $2,191.7 30.9% 21.5% -0.5% 1.2x 5.6x 1.2x 6.2x 102.9%DemandMedia DMD $743.4 $641.9 $380.6 52.4% 18.0% 17.1% 1.7x 9.4x 1.5x 5.7x 19.0%InterActiveCorp IACI $3,764.8 $3,700.1 $2,800.9 64.6% 15.0% 36.0% 1.3x 8.8x 1.1x 6.0x -9.0%Netflix NFLX $10,598.4 $10,282.2 $3,609.3 27.2% 2.6% 12.6% 2.8x 107.7x 2.4x 35.4x 64.5%Pandora P $2,448.2 $2,359.2 $427.1 31.9% -7.2% 55.7% 5.5x n/a 3.8x 239.1x 38.7%Shutterstock, Inc. SSTK $1,507.6 $1,411.5 $169.6 62.0% 18.9% 41.0% 8.3x 44.0x 6.5x 32.1x n/aTheStreet.com, Inc. TST $63.6 $21.6 $50.7 50.9% -4.5% -12.2% 0.4x n/a n/a n/a -13.6%WebMD Health Corp. WBMD $1,192.0 $1,000.2 $469.9 54.0% 4.9% -15.9% 2.1x 43.1x 2.2x 13.3x -4.9%XO Group XOXO $243.1 $165.7 $129.1 82.5% 14.8% 3.9% 1.3x 8.7x 1.2x 5.7x 6.5%Yahoo! Inc. YHOO $25,912.4 $21,810.8 $4,986.6 67.5% 26.4% 0.0% 4.4x 16.6x 4.8x 13.1x 54.6%Youku YOKU $2,749.1 $2,146.1 $288.1 25.9% 2.7% 100.0% 7.5x 278.1x 4.4x n/a -23.7%

Median: $2,448.2 $2,146.1 $427.1 52.4% 14.8% 12.6% 2.1x 16.6x 2.3x 13.1x 12.8%









0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%Internet Content & Media Stock Market Return: Jan - Mar 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


ChangYou.com CYOU $1,531.6 $1,414.4 $623.4 83.2% 63.3% 28.7% 2.3x 3.6x 1.9x 3.4x 6.4%Giant Interactive GA $1,555.1 $1,132.1 $345.2 86.6% 61.1% 20.1% 3.3x 5.4x 2.8x 4.4x 32.7%Netease NTES $7,172.5 $4,631.0 $1,315.7 68.6% 48.1% 12.5% 3.5x 7.3x 3.0x 6.3x -5.7%NCSoft KOSE:A036 $2,765.4 $2,290.6 $708.5 69.9% 25.0% 23.8% 3.2x 12.9x n/a n/a -47.4%Perfect World PWRD $524.8 $278.1 $444.5 80.5% 26.1% -7.1% 0.6x 2.4x 0.6x 2.7x -33.0%Sohu.com Inc. SOHU $1,892.7 $1,456.9 $1,067.2 66.8% 32.7% 25.2% 1.4x 4.2x 1.1x 4.4x -10.1%Tencent Holdings SEHK:700 $58,290.3 $55,785.3 $7,041.8 58.5% 40.0% 54.0% 7.9x 19.8x n/a n/a 14.0%Zynga, Inc. ZNGA $2,639.3 $1,454.5 $1,281.3 72.5% 4.5% 12.4% 1.1x 25.5x 1.4x 19.1x -74.4%

Median: $2,266.0 $1,455.7 $887.8 71.2% 36.3% 21.9% 2.8x 6.3x 1.6x 4.4x -7.9%








0%

2%

4%

6%

8%

10%

12%

14%

16%Internet Gaming Stock Market Return: Jan - Mar 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


8x8, Inc. EGHT $492.2 $445.6 $103.2 67.8% 13.4% 29.3% 4.3x 32.3x 3.7x 19.9x 63.1%Akamai Technologies, Inc. AKAM $6,286.0 $5,848.6 $1,373.9 69.6% 36.5% 18.6% 4.3x 11.7x 3.9x 9.2x -3.8%Brightcove Inc. BCOV $174.0 $145.9 $88.0 68.9% -11.2% 38.4% 1.7x n/a 1.4x 148.1x -75.0%BroadSoft, Inc. BSFT $741.3 $665.1 $164.8 80.3% 18.8% 19.4% 4.0x 21.4x 3.6x 14.8x -30.8%Digital River Inc. DRIV $499.8 $104.1 $386.2 82.9% 9.7% -3.0% 0.3x 2.8x 0.3x 1.6x -24.4%Envivio, Inc. ENVI $45.8 -$9.1 $39.1 61.7% -35.5% -22.8% n/a 0.7x n/a 0.8x n/aHarmonic Inc HLIT $667.0 $465.8 $530.5 44.6% 6.6% -3.4% 0.9x 13.2x 0.9x 6.6x 5.9%KIT digital, Inc. KITD $17.5 $1.5 $246.5 69.8% -9.3% 73.7% 0.0x n/a n/a n/a -96.0%Limelight Networks, Inc. LLNW $201.8 $76.0 $180.2 53.5% -2.8% 5.2% 0.4x n/a 0.4x 6.8x -36.8%Mitel Networks Corp. MITL $209.3 $423.4 $583.6 55.4% 13.9% -3.8% 0.7x 5.2x 0.7x 4.4x -9.1%Polycom, Inc. PLCM $1,961.3 $1,287.0 $1,392.6 59.1% 8.9% -0.7% 0.9x 10.3x 0.9x 5.9x -41.9%Rovi Corporation ROVI $2,156.7 $2,777.3 $650.6 83.1% 36.2% -4.5% 4.3x 11.8x 4.3x 9.0x -34.2%SeaChange International Inc. SEAC $383.9 $296.8 $157.2 53.7% 8.1% -4.6% 1.9x 23.2x 1.8x 11.0x 52.8%ShoreTel, Inc. SHOR $213.2 $183.2 $284.4 61.5% -4.3% 29.3% 0.6x n/a 0.6x 9.9x -36.1%Sonus Networks, Inc SONS $728.5 $481.1 $254.1 56.1% -8.1% -2.1% 1.9x n/a 1.8x n/a -10.7%Synacor, Inc SYNC $81.6 $43.5 $122.0 45.4% 7.9% 34.0% 0.4x 4.5x 0.4x 3.7x -60.4%Tucows Inc. TCX $69.1 $66.4 $114.7 23.5% 6.4% 18.2% 0.6x 9.0x n/a n/a 39.8%VeriSign VRSN $7,211.6 $6,352.7 $873.6 80.8% 58.5% 13.2% 7.3x 12.4x 6.7x 10.6x 23.3%

Median: $438.0 $360.1 $250.3 61.6% 8.0% 9.2% 0.9x 11.7x 1.4x 9.0x -24.4%








-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Internet Infrastructure Stock Market Return: Jan - Mar 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


Angie's List, Inc. ANGI $1,145.0 $1,106.7 $155.8 71.8% -31.3% 73.0% 7.1x n/a 4.6x n/a 4.6%Bankrate RATE $1,194.6 $1,304.9 $457.2 68.0% 24.9% 7.8% 2.9x 11.4x 2.9x 11.8x -51.8%Carbonite, Inc. CARB $283.8 $228.4 $84.0 65.4% -8.1% 38.9% 2.7x n/a 2.2x 241.2x -0.5%LifeLock, Inc. LOCK $835.1 $700.9 $276.4 71.1% 7.5% 42.5% 2.5x 34.0x 2.1x 17.1x n/aMonster Worldwide, Inc. MWW $563.4 $579.5 $890.4 54.1% 16.0% -10.4% 0.7x 4.1x 0.7x 3.5x -48.0%Qihoo QIHU $3,536.4 $3,155.7 $329.0 90.0% 19.5% 96.0% 9.6x 49.2x 5.9x 21.4x 21.2%Shutterfly SFLY $1,604.8 $1,359.7 $640.6 54.0% 12.9% 35.4% 2.1x 16.5x 1.8x 9.7x 41.0%Tree.Com, Inc. TREE $211.5 $131.3 $77.4 94.5% -6.0% 41.8% 1.7x n/a 1.2x 7.9x 142.3%Trulia, Inc. TRLA $977.6 $887.6 $68.1 85.3% -10.3% 76.8% 13.0x n/a 8.8x 77.8x n/aVistaPrint VPRT $1,297.9 $1,463.7 $1,107.8 65.7% 9.6% 19.8% 1.3x 13.8x 1.2x 9.4x 0.0%Xoom XOOM $727.2 $697.0 $80.0 66.5% -3.5% 60.0% 8.7x n/a 6.7x n/a n/aZillow Z $1,855.5 $1,661.4 $116.9 88.0% 10.6% 76.9% 14.2x 134.3x 9.7x 50.4x 53.6%

Median: $1,061.3 $997.2 $216.1 69.5% 8.5% 42.2% 2.8x 16.5x 2.5x 14.4x 4.6%








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Internet Services Stock Market Return: Jan - Mar 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


Facebook FB $60,935.0 $53,665.0 $5,089.0 73.2% 23.3% 37.1% 10.5x 45.2x 8.1x 15.5x n/aFriendFinder Networks Inc FFN $17.2 $482.3 $314.4 65.3% 23.3% -4.9% 1.5x 6.6x n/a n/a -60.3%LinkedIn LNKD $19,200.0 $18,450.4 $972.3 87.1% 12.9% 86.2% 19.0x 147.0x 12.3x 51.5x 72.6%Mail.ru Group LSE:MAIL $5,768.6 $4,747.2 $602.1 75.5% 44.7% 75.4% 7.9x 17.6x n/a n/a -29.8%Renren Inc RENN $1,091.0 $185.8 $176.1 62.2% -47.2% 49.3% 1.1x n/a 0.7x n/a -47.6%Yelp, Inc. YELP $1,510.7 $1,415.5 $137.6 92.8% -8.3% 65.2% 10.3x n/a 6.7x 67.0x -11.8%YY, Inc. YY $918.7 $693.7 $131.6 49.3% 16.1% 156.5% 5.3x 32.8x 3.1x 14.0x n/a

Median: $1,510.7 $1,415.5 $314.4 73.2% 16.1% 65.2% 7.9x 32.8x 6.7x 33.5x -29.8%



Levered FCF Margin 5.2%Cash from Operations Growth (YoY) 52.1%Cash from Investing Growth (YoY) -27.9%Cash from Financing Growth (YoY) 61.2%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


Ctrip CTRP $2,968.1 $2,461.2 $667.2 75.0% 18.1% 18.9% 3.7x 20.4x 3.1x 15.7x -1.2%Expedia EXPE $8,205.9 $7,626.2 $4,030.3 77.7% 15.9% 16.9% 1.9x 11.9x 1.6x 8.5x 79.5%HomeAway AWAY $2,719.2 $2,449.4 $280.4 83.8% 18.1% 21.8% 8.7x 48.3x 7.2x 24.5x 28.3%Kayak Software Corp KYAK $1,540.9 $1,351.1 $292.7 93.3% 17.6% 30.4% 4.6x 26.3x 3.8x 15.2x n/aMakeMyTrip MMYT $516.5 $443.6 $220.6 24.9% -3.0% 21.9% 2.0x n/a 4.3x 83.8x -39.5%Orbitz OWW $600.2 $910.2 $778.8 81.0% 13.6% 1.6% 1.2x 8.6x 1.1x 6.6x 87.2%Priceline PCLN $34,319.3 $30,753.4 $5,261.0 77.6% 36.4% 20.8% 5.8x 16.1x 4.7x 12.4x -4.1%Travelzoo TZOO $328.3 $266.7 $151.2 89.6% 20.5% 1.9% 1.8x 8.6x 1.7x 8.7x -7.1%TripAdvisor Inc TRIP $7,505.4 $7,431.1 $763.0 98.4% 40.6% 19.8% 9.7x 24.0x 7.9x 19.4x 47.2%

Median: $2,719.2 $2,449.4 $667.2 81.0% 18.1% 19.8% 3.7x 18.2x 3.8x 15.2x 13.6%








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18%Internet Travel Stock Market Return: Jan - Mar 2013

Travel S&P NASDAQ SEG Internet Index

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