SOFTWARE SECTOR REPORT. October 2017

Transcription

1 SOFTWARE SECTOR REPORT October 2017

2 DEAL DASHBOARD Software $40.4 Billion Financing Volume YTD (1)(2) 537 Financing Transactions YTD (1)(2) $39.2 Billion M&A Volume YTD (3) 86 M&A Transactions YTD (3) Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4) Company Amount ($MM) $Bn $Bn (61%) 38% Target Acquirer EV ($MM) $14 $50 $460 $3,903 $9 $10 $12 $11 $41 $6 $166 $6 $5 $6 $24 $16 $15 $1,913 $12 $12 $6 $5 $100 $1,125 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 $93 $713 Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3) $70 37% $ $ % $ $50 14 $ % 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% $40 $344 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q3'15 Q4'15 Q1'16Q2'16 Q3'16 Q4'16 Q1'17 Q2'17Q3'17 Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6) SPX IGV 38% 22% 10.0% 1 5.0% 0 0.0% Nov-16 (5.0%) Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov Sources: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 11/6/ ) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in CY ) ishares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM x 4.7x ` 2.7x 3.1x 3.9x 2.2x 4.2x All Buyers Strategic Buyers PE Buyers 5.3x 3.6x 4.3x 2.9x 2.9x 4.5x 4.0x 3.7x 4.9x 4.6x 4.1x 2.9x 2.9x 2.7x 2

3 GCA OVERVIEW The GCA Software Team Daniel Avrutsky Jimmy Orozco Gautam Garg Vice President US Team Josh Wepman Software & Digital Media Glen Kruger Director Paul DiNardo Mike Janovec Vice President Steve Fletcher Head of Software Alex Vitale Auto Tech Arthur Kirsch Healthcare IT Chris Gough Real Estate Tech Derek Bell Business Services John Lambros Head of Digital Media JT Herman Industrial Technology Peter Bang Financial Services Financial Software Sean Minnihan FinTech Financial Software Executive Leadership Select Europe Team Select Asia Team Todd Carter Co-President & CEO Clark Callander Head of Investment Banking *Adrian Reed **Sascha Pfeiffer Co-Head of European Technology & Media *Phil Adams CEO of GCA Altium *Stephen Georgiadis **Raiko Stelten Director **Tobias Schultheiss ***Akikazu Ida Co-Head of Asian Technology & Media Sameer Jindal Head of Indian Operations ***Ryuichi Kanemaki ***Tomohiko Kubota CEO of AMPLIA *Adrian Reed, Phil Adams and Stephen Georgiadis are s at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. **Raiko Stelten, Sascha Pfeiffer and Tobias Schultheiss are s/directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation. ***Akikazu Ida, Ryuichi Kanemaki and Tomohiko Kubota are s at GCA Corporation. 3

4 RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 40% 35% 30% 25% 20% 15% 10% 5% 0% Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 (5%) (10%) 60% 45% 30% 15% 0% Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 (15%) (30%) (45%) Sector 3 Months 1 Year 3 Years Platform 11.7% 31.8% 51.7% Security 5.1% 17.3% 23.3% Infrastructure 15.6% 28.9% 36.5% BI & Analytics 8.0% 28.8% (5.2%) Vertical 3.3% 20.4% 40.1% SaaS / On Demand 10.7% 38.6% 58.1% Sources: Capital IQ. Market Data as of 11/6/2017. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: ADBE, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV. 4

5 TRADING COMPARABLES Valuation and Operational Metrics EV / 2017E Revenue EV / 2017E EBITDA 7.0x 6.0x 5.0x 4.0x 3.0x 6.7x 6.0x 5.9x 5.6x 4.4x Median: 5.8x 4.2x 35.0x 30.0x 25.0x 20.0x 15.0x 33.3x 33.0x 29.5x 29.1x 24.0x Median: 29.3x 15.6x 2.0x 10.0x 1.0x 5.0x 0.0x SaaS Platform Infrastructure Vertical Security BI & Analytics 0.0x SaaS BI & Analytics Security Vertical Infrastructure Platform 2017E / 2016A Revenue Growth 2017E EBITDA Margin 40.0% 35.0% 40.0% 35.0% 37.2% 30.0% 25.0% 20.0% 15.0% 10.0% 25.9% 22.5% 18.7% Median: 17.0% 15.4% 15.2% 12.0% 30.0% 25.0% 20.0% 15.0% 10.0% 25.7% 23.0% 21.8% Median: 22.4% 17.4% 13.9% 5.0% 5.0% 0.0% SaaS Infrastructure BI & Analytics Vertical Security Platform 0.0% Platform Infrastructure Vertical Security SaaS BI & Analytics Sources: Capital IQ. Market Data as of 11/6/2017. Figures represent mean values of respective comp groups. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: ADBE, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV. 5

6 PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/6/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E Platform Microsoft Corporation $84.47 $651,651 ($44,660) $606, x 6.0x 5.5x 20.8x 15.2x 13.9x 37.6x 24.7x 23.9x (1.0%) 16.1% 8.9% 33.5% 39.3% 39.6% Oracle Corporation $ ,344 (13,606) 196, (0.6%) 4.7% 3.8% 39.2% 46.1% 47.3% International Business Machines Corporation $ ,646 34, , (2.2%) (1.6%) (0.1%) 23.2% 24.3% 25.3% SAP SE $ , , % 17.3% 6.6% 27.4% 34.7% 33.8% Adobe Systems Incorporated $ ,124 (3,479) 85, % 23.8% 20.2% 31.1% 41.8% 44.6% Mean 7.0x 6.0x 5.4x 22.4x 15.6x 13.8x 37.5x 24.0x 21.2x 4.3% 12.0% 7.9% 30.9% 37.2% 38.1% Median (0.6%) 16.1% 6.6% 31.1% 39.3% 39.6% Infastructure VMware, Inc. $ $48,028 ($6,485) $41, x 5.3x 5.0x 22.5x 13.9x 13.6x 42.9x 23.5x 21.6x 6.7% 10.4% 18.2% 26.1% 38.2% 36.5% ServiceNow, Inc. $ ,542 (515) 21, NM NM NM % 38.1% 30.9% NM 22.0% 24.9% Red Hat, Inc. $ ,425 (903) 20, % 18.8% 15.7% 17.0% 27.1% 27.6% Micro Focus International plc $ ,128 1,411 16, % 85.5% 67.9% 38.7% 40.5% 39.3% CA, Inc. $ , , (0.1%) 2.7% 3.6% 31.8% 37.1% 38.2% Citrix Systems, Inc. $ ,708 (87) 12, % (17.4%) 2.1% 30.0% 35.9% 32.0% Atlassian Corporation Plc $ ,757 (614) 11, NM NM NM % 37.9% 31.1% NM 26.7% 27.8% Splunk Inc. $ ,577 (1,003) 8, NM NM NM % 28.0% 25.5% NM 11.5% 13.3% F5 Networks, Inc. $ ,524 (1,017) 6, % 3.6% 3.2% 30.2% 39.3% 40.0% LogMeIn, Inc. $ ,593 (276) 6, NM NM % 5.6% 14.5% 12.2% 36.3% 38.6% Nutanix, Inc. $ ,550 (349) 4, NM NM NM NM NM NM 83.4% 60.2% 38.7% NM NM NM Software Aktiengesellschaft $ ,905 (53) 3, (2.9%) 11.5% 3.3% 29.5% 32.1% 31.7% Pure Storage, Inc. $ ,504 (523) 2, NM NM 32.8 NM NM NM 65.3% 38.4% 30.7% NM 1.5% 6.9% MuleSoft, Inc. $ ,053 (182) 2, NM NM NM NM NM NM 70.3% 55.0% 35.9% NM NM NM New Relic, Inc. $ ,829 (227) 2, NM NM 80.3 NM NM NM 49.6% 34.0% 27.6% NM 0.8% 7.8% NetScout Systems, Inc. $ ,628 (7) 2, NM % 0.1% 8.9% 17.0% 23.7% 26.6% Commvault Systems, Inc. $ ,462 (495) 1, NM NM % 8.2% 10.2% 2.7% 12.6% 13.9% Progress Software Corporation $ ,017 (68) 1, NM % (2.2%) 1.1% 26.9% 46.1% 45.8% Appian Corporation $ ,355 (72) 1, NM NM NM NM NM NM 19.5% 26.3% 16.4% NM NM NM Altair Engineering Inc. $ , , NA NA 47.2 NA NA 27.1 NA NA 6.5% NA NA 8.1% NA NA A10 Networks, Inc. $ (124) NM NM NM % 4.5% 7.6% NM 5.0% 5.9% Mean 7.4x 5.9x 4.9x 23.2x 24.0x 23.3x 37.4x 24.9x 39.1x 26.2% 22.5% 19.7% 22.5% 25.7% 26.9% Median % 15.1% 16.1% 26.5% 27.1% 27.8% Sources: Capital IQ and Wall Street Estimates. Market Data as of 11/6/2017. Negative margins considered NM. Multiples <0 and >100 considered NM. 6

7 PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/6/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E Security Symantec Corporation $28.90 $17,917 $4,183 $22, x 4.5x 4.3x 25.8x 9.9x 9.0x NM 19.9x 15.3x 4.2% 30.9% 3.6% 22.7% 45.3% 48.0% Check Point Software Technologies Ltd. $ ,196 (1,510) 15, % 6.7% 6.3% 49.7% 56.0% 55.9% Palo Alto Networks, Inc. $ ,610 (850) 12, NM NM % 24.4% 20.7% NM 23.9% 25.8% Splunk Inc. $ ,577 (1,003) 8, NM NM NM % 28.0% 25.5% NM 11.5% 13.3% Trend Micro Incorporated $ ,340 (1,190) 6, % 13.7% 7.4% 34.5% 33.4% 34.7% Fortinet, Inc. $ ,826 (1,276) 5, NM % 16.6% 14.0% 7.5% 20.7% 21.9% Proofpoint, Inc. $ ,115 (78) 4, NM NM NM % 35.7% 27.3% NM 13.0% 13.9% FireEye, Inc. $ ,675 (109) 2, NM NM NM NM 14.6% 4.0% 7.6% NM 11.7% 12.2% Qualys, Inc. $ ,175 (303) 1, NM % 16.1% 16.4% 24.2% 36.8% 36.3% Mimecast Limited $ ,806 (98) 1, NM NM NM NM 26.1% 36.9% 24.6% NM 8.7% 10.7% Imperva, Inc. $ ,452 (320) 1, NM NM % 22.2% 17.7% NM 13.1% 14.7% CyberArk Software Ltd. $ ,546 (274) 1, % 18.6% 19.5% 19.6% 21.9% 23.1% Barracuda Networks, Inc. $ ,187 (207) NM % 7.0% 6.7% 10.0% 17.5% 20.0% SecureWorks Corp. $ (98) NM NM NM NM NM NM 26.5% 8.2% 9.9% NM NM 0.0% F-Secure Oyj $ (92) % 19.8% 10.3% 14.3% 9.8% 15.1% Rapid7, Inc. $ (84) NM NM NM NM NM NM 42.4% 25.1% 20.6% NM NM NM VASCO Data Security International, Inc. $ (159) (20.4%) (1.7%) 9.0% 8.4% 10.7% 10.8% MobileIron, Inc. $ (82) NM NM NM NM NM NM 9.8% 6.4% 6.9% NM NM NM Zix Corporation $ (33) % 9.1% 7.7% 19.8% 27.9% 30.9% Absolute Software Corporation $ (33) NM NM 65.3 (4.2%) 6.0% 8.8% 12.6% 9.1% 11.8% ipass Inc. $ (7) NM NM NM NM NM NM 1.1% (13.9%) 16.0% NM NM NM Mean 5.2x 4.4x 3.8x 28.0x 29.5x 22.2x 43.6x 37.2x 41.1x 17.0% 15.2% 13.6% 20.3% 21.8% 22.2% Median % 16.1% 10.3% 19.6% 17.5% 17.5% Sources: Capital IQ and Wall Street Estimates. Market Data as of 11/6/2017. Negative margins considered NM. Multiples <0 and >100 considered NM. 7

8 PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/6/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E SaaS Salesforce.com, inc. $ $73,609 ($919) $72, x 7.0x 5.8x NM 32.3x 26.5x NM 77.8x 60.1x 25.9% 23.9% 19.8% 6.0% 21.6% 22.0% Workday, Inc. $ ,551 (1,549) 21, NM NM NM % 34.0% 25.6% NM 15.2% 17.0% ServiceNow, Inc. $ ,542 (515) 21, NM NM NM % 38.1% 30.9% NM 22.0% 24.9% Shopify Inc. $ ,914 (927) 8, NM NM NM NM NM NM 89.7% 69.6% 44.5% NM 2.8% 5.1% Veeva Systems Inc. $ ,627 (725) 7, NM % 23.8% 19.4% 22.4% 32.5% 33.0% LogMeIn, Inc. $ ,593 (276) 6, NM NM % 5.6% 14.5% 12.2% 36.3% 38.6% The Ultimate Software Group, Inc. $ ,022 (129) 5, NM % 19.6% 19.1% 8.7% 23.0% 24.6% Paycom Software, Inc. $ ,770 (32) 4, NM % 31.3% 25.6% 20.7% 30.7% 30.7% Aspen Technology, Inc. $ , , % 3.1% 3.7% 46.7% 48.5% 48.5% Blackbaud, Inc. $ , , NM % 8.1% 10.6% 17.1% 24.6% 24.5% RealPage, Inc. $ , , NM % 17.9% 19.2% 14.3% 24.1% 25.8% j2 Global, Inc. $ , , % 28.4% 5.8% 42.3% 41.7% 43.2% Zendesk, Inc. $ ,507 (227) 3, NM NM NM NM NM NM 49.4% 36.8% 29.6% NM 3.3% 5.2% RingCentral, Inc. $ ,391 (172) 3, NM NM 68.8 NM NM NM 28.2% 29.7% 22.2% NM 6.3% 7.8% 2U, Inc. $ ,325 (185) 3, NM NM NM NM NM NM 37.1% 38.1% 37.3% NM 3.7% 3.9% HubSpot, Inc. $ ,119 (198) 2, NM NM 84.5 NM NM NM 48.9% 36.9% 26.8% NM 5.9% 7.4% MuleSoft, Inc. $ ,053 (182) 2, NM NM NM NM NM NM 70.3% 55.0% 35.9% NM NM NM Box, Inc. $ ,907 (82) 2, NM NM NM NM NM NM 31.7% 26.8% 23.3% NM NM 3.9% New Relic, Inc. $ ,829 (227) 2, NM NM 80.3 NM NM NM 49.6% 34.0% 27.6% NM 0.8% 7.8% Okta, Inc. $ ,766 (213) 2, NM NM NM NM NM NM 86.6% 52.6% 35.5% NM NM NM Paylocity Holding Corporation $ ,569 (1,040) 1, NM NM % 26.1% 22.2% 2.7% 19.9% 20.7% Cornerstone OnDemand, Inc. $ ,176 (63) 2, NM NM % 13.7% 15.6% NM 13.4% 16.3% Qualys, Inc. $ ,175 (303) 1, NM % 16.1% 16.4% 24.2% 36.8% 36.3% Cloudera, Inc. $ ,172 (395) 1, NM NM NM NM NM NM 57.2% 37.4% 26.4% NM NM NM Callidus Software Inc. $ ,941 (176) 1, NM NM % 20.5% 20.1% NM 12.7% 15.5% Coupa Software Incorporated $ ,887 (208) 1, NM NM NM NM NM NM 59.9% 33.4% 25.0% NM NM NM Mimecast Limited $ ,806 (98) 1, NM NM NM NM 26.1% 36.9% 24.6% NM 8.7% 10.7% MongoDB, Inc. $ ,499 (92) 1, NM NA NA NM NM NM 55.3% 48.0% 39.1% NM NA NA Five9, Inc. $ ,408 (17) 1, NM NM 72.0 NM NM NM 25.8% 20.2% 17.6% 1.1% 6.5% 8.4% Appian Corporation $ ,355 (72) 1, NM NM NM NM NM NM 19.5% 26.3% 16.4% NM NM NM Alteryx, Inc. $ ,295 (153) 1, NM NM NM NM NM NM 59.4% 46.3% 35.9% NM NM NM Yext, Inc. $ ,083 (127) NM NM NM NM NM NM 38.5% 36.8% 32.8% NM NM NM Instructure, Inc. $ ,021 (67) NM NM NM NM NM NM 51.5% 41.0% 28.7% NM NM NM Workiva Inc. $ (58) NM NM NM NM NM NM 23.0% 15.6% 31.5% NM NM NM Sources: Capital IQ and Wall Street Estimates. Market Data as of 11/6/2017. Negative margins considered NM. Multiples <0 and >100 considered NM. 8

9 PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/6/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E SaaS (Cont'd) Apptio, Inc. $21.84 $882 ($135) $ x 4.0x 3.5x NM NM NM NM NM NM 24.2% 17.4% 33.4% NM NM 3.3% SPS Commerce, Inc. $ (164) NM % 13.8% 26.2% 9.8% 14.5% 15.8% Benefitfocus, Inc. $ NM NM NM NM 26.0% 9.8% 20.7% NM 7.4% 9.9% LivePerson, Inc. $ (54) NM NM NM (6.8%) (2.1%) 5.0% 4.0% 8.3% 9.5% Carbonite, Inc. $ (9) NM % 18.6% 29.4% 6.8% 19.2% 22.2% Castlight Health, Inc. $ (82) NM NM NM NM NM NM 35.0% 29.0% 61.3% NM NM NM Bazaarvoice, Inc. $ (58) NM NM % 1.5% 6.7% NM 9.8% 12.2% Brightcove Inc. $ (22) NM NM 44.4 NM NM NM 11.6% 3.3% 10.0% NM NM 3.3% ChannelAdvisor Corporation $ (53) NM NM NM NM 12.5% 8.3% 19.5% NM 3.8% 5.9% Park City Group, Inc. $ (9) NA 21.0 NM % NA 76.3% 20.6% NA 35.3% Amber Road, Inc. $ NM NM 64.1 NM NM NM 9.0% 8.5% 18.6% NM NM 3.9% Marin Software Incorporated $ (29) NA NA NM NA NA NM NA NA (8.0%) NA NA NM NA NA Mean 8.6x 6.7x 5.4x 49.9x 33.3x 33.9x 30.8x 57.1x 46.0x 32.6% 25.9% 25.2% 16.2% 17.4% 17.7% Median % 26.2% 24.6% 13.3% 14.5% 15.6% Business Intelligence & Analytics Splunk Inc. $68.41 $9,577 ($1,003) $8, x 7.1x 5.6x NM 61.3x 42.2x NM NM 83.6x 42.1% 30.5% 60.7% NM 11.5% 13.3% Tableau Software, Inc. $ ,647 (943) 4, NM NM NM NM 26.5% 7.8% 14.3% NM 6.6% 8.0% Teradata Corporation $ ,299 (299) 4, (8.2%) (5.3%) (7.5%) 16.4% 17.2% 17.9% Fair Isaac Corporation $ , , % 6.1% 12.0% 23.0% 24.1% 26.4% Verint Systems Inc. $ , , NM (6.0%) 6.9% 13.7% 9.2% 22.6% 24.8% Cloudera, Inc. $ ,172 (395) 1, NM NM NM NM NM NM 57.2% NA 73.7% NM NM NM MicroStrategy Incorporated $ ,537 (646) (3.3%) (2.6%) (0.5%) 22.6% 20.5% 13.5% Alteryx, Inc. $ ,295 (153) 1, NM NM NM NM NM NM 59.4% NA 98.9% NM NM NM Hortonworks, Inc. $ ,295 (63) 1, NM NM NM NM NM NM 51.3% 42.4% 76.4% NM NM NM Gridsum Holding Inc. $ (16) NM NM 6.5 NM NM % 65.6% 158.5% NM 2.7% 26.0% Datawatch Corporation $ (30) NM NM NA NM NM NM 4.4% 19.1% 35.3% NM NM NA Attunity Ltd. $ (7) NM NM NM % 16.3% 33.1% NM 6.2% 6.9% Datapoints Mean 5.3x 4.2x 3.5x 18.6x 33.0x 23.7x 30.9x 25.1x 33.4x 25.2% 18.7% 47.4% 17.8% 13.9% 17.1% Median % 12.1% 34.2% 19.5% 14.4% 15.7% Sources: Capital IQ and Wall Street Estimates. Market Data as of 11/6/2017. Negative margins considered NM. Multiples <0 and >100 considered NM. 9

10 PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/6/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E Vertical Cerner Corporation $65.71 $21,843 ($317) $21, x 4.2x 3.9x 16.4x 12.9x 11.7x 35.5x 27.2x 25.3x 8.2% 7.4% 18.6% 27.9% 32.5% 32.9% Constellation Software Inc. $ ,059 (101) 11, % 15.4% 31.8% 19.2% 26.0% 26.4% Veeva Systems Inc. $ ,627 (725) 7, NM % 24.8% 47.8% 22.4% 32.5% 33.0% SS&C Technologies Holdings, Inc. $ ,392 2,114 10, % 10.4% 19.4% 34.7% 41.2% 43.3% Guidewire Software, Inc. $ ,116 (573) 5, NM NM % 23.8% 48.0% 4.3% 19.8% 22.3% athenahealth, Inc. $ , , NM % 10.2% 24.4% 9.9% 21.9% 25.3% Medidata Solutions, Inc. $ ,146 (123) 4, NM % 17.7% 38.3% 14.1% 24.5% 25.6% Blackbaud, Inc. $ , , NM % 8.2% 19.5% 17.1% 24.6% 24.5% CoreLogic, Inc. $ ,858 1,648 5, % (4.5%) (3.4%) 21.5% 25.6% 26.3% RealPage, Inc. $ , , NM % 17.9% 40.6% 14.3% 24.1% 25.8% Ellie Mae, Inc. $ ,998 (366) 2, % 16.5% 37.1% 20.3% 28.9% 28.2% Allscripts Healthcare Solutions, Inc. $ ,283 1,312 3, NM % 17.5% 38.0% 9.8% 20.2% 20.0% Inovalon Holdings, Inc. $ ,225 (282) 1, (2.2%) 6.0% 15.4% 17.3% 24.4% 25.1% AppFolio, Inc. $ ,577 (43) 1, NM NM NM NM 40.8% 33.1% 67.0% NM 17.0% 17.7% Instructure, Inc. $ ,021 (67) NM NM NM NM NM NM 51.5% 42.0% 81.5% NM NM NM Silver Spring Networks, Inc. $ (118) NM NM NM 58.9 (36.5%) 3.6% 7.5% NM 3.8% 11.0% HealthStream, Inc. $ (123) NM % 8.4% 17.6% 9.3% 15.0% 16.1% Castlight Health, Inc. $ (82) NM NM NM NM NM NM 35.0% 29.0% 61.3% NM NM NM Exa Corporation $ (17) NM NM NM 10.9% 4.6% 17.6% 6.2% 8.6% 11.4% Mean 6.6x 5.6x 4.8x 38.3x 29.1x 21.5x 59.3x 49.9x 42.8x 19.9% 15.4% 33.0% 16.6% 23.0% 24.4% Median % 15.4% 31.8% 17.1% 24.4% 25.3% Sources: Capital IQ and Wall Street Estimates. Market Data as of 11/6/2017. Negative margins considered NM. Multiples <0 and >100 considered NM. 10

11 Enterprise Value / CY 2018E Revenue Enterprise Value / CY 2018E Revenue PUBLIC SAAS COMPANIES VALUATION CORRELATION TO GROWTH AND CASH FLOW Valuation Correlation to Growth Valuation Correlation to Growth & Free Cash Flow 10.0x AZPN VEEV SHOP R = x AZPN SHOP VEEV R = x 6.0x 4.0x 2.0x JCOM BV LOGM LPSN CARB BCOV BNFT QLYS APPN HUBS FIVN CALD NEWR BLKB CRM MIME ZEN ULTI RNG CSOD SPSC AMBR ECOM WK APTI RP BOX PAYC WDAY PCTY NOW PCYG INST CLDR CSLT TWOU MDB OKTA YEXT MULE AYX 8.0x 6.0x 4.0x 2.0x MDB PAYC TWOU OKTA WDAY NOW COUP MULE AYX QLYS APPN NEWR FIVN HUBS ZEN BLKB CALD MIME CRM RNG LOGM ULTI INST RP BOX CLDR YEXT WK PCTY APTI CSOD JCOM BNFT CSLT LPSN SPSC AMBR CARB BV BCOV ECOM 0% 10% 20% 30% 40% 50% CY2018E Revenue Growth 0% 10% 20% 30% 40% 50% 60% CY 2018E Revenue Growth % + CY 2018E FCF Margin % Source: Capital IQ as of 11/6/2017. Consensus Estimates used for CY2018E figures. Estimates for MRIN are not available. 11

12 RECENT ACQUISITIONS Select Software M&A Transactions ($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description 11/2/17 Infrastructure Management $548 NA NA NA NA Provides electronic design automation (EDA) software used to design system on chip (SoC), analog and embedded semiconductors for semiconductor designers and OEMs 10/27/17 Infrastructure Management $726 NA NA NA NA Provides energy exchange trade execution, order routing, reporting, market data and risk management software, SaaS and services for financial services brokers, exchanges and clearing houses 10/26/17 Enterprise Networking $1, x 3.7x NM 17.4x Develops and delivers solution that delivers visibility and control of data-in-motion traversing enterprise, federal, and service provider networks 10/26/17 Infrastructure Management $ x 4.0x 18.6x 12.8x Provides international payment and transaction processing, and multi-currency processing services and offers payment processing services that enable the authorization and settlement of payment transactions 10/24/17 Application Software $400 NA NA NA NA Develops self-driving vehicle and automated mobile robot vehicle software for businesses 10/24/17 Infrastructure Management $400 NA NA NA NA The Virtu BondPoint asset of Virtu Financial, which provides trade execution software of fixed income securities for brokers and advisors globally 10/23/17 Hosted Services $1, x 4.7x 80.5x 19.3x Provides hosted unified communications, VoIP and PBX services, as well as telecom management software and SaaS, for businesses and telecom service providers 10/17/17 Information Management $ x NA NA NA 10/10/17 Application Software $3,600 NA NA NA NA 10/6/17 Security $275 NA NA NA NA Provides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology and manufacturing industries to securely exchange documents and sync files Provides healthcare benefit and claims management SaaS, including online claims authorization and eligibility lookup, online payments, records management, medical practice assessment and client information Web portal, for healthcare providers, hospitals and patients Provides risk analysis and analytics SaaS to the insurance industry. Software provides features for analyzing the financial impact of cyber risk through real-time data collection and market analytics 10/5/17 Application Software $64 2.6x NA NM NA Provides a searchable online database of US federal, state and local government contracts and RFPs for the purposes of identifying sales leads for businesses. 9/28/17 Application Software $ x 4.8x 260.9x 43.3x Provides simulation and product engineering software and SaaS for the automotive, transportation, rail, aerospace, oil and gas sectors globally 9/27/17 Application Software $ x NA NA NA Provides marketing cross-channel attribution SaaS that enables media and video ad performance analytics and optimization 9/26/17 Application Software $807 NA NA NA NA Provides online and mobile commerce logistics software for shipping companies globally Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 11/6/2017, where Enterprise Value is > $50MM. Transactions highlighted in yellow denote Private Equity acquirers. 12

13 RECENT ACQUISITIONS Select Software M&A Transactions ($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description 9/26/17 7/25/17 Sage Group Intacct Corp. Application Software $392 $ x NA NA NA NA Provides marketing accounting automation and financial and management behavior prediction software analytics as a service SaaS (SaaS) for the for automotive businesses dealership industry 7/24/17 9/25/17 Partners Group Provides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS) Civica pl Application Software $1,370 NA NA NA NA The VelocityEHS and BOLT Solutions assets of Actua. VelocityEHS provides environment, health and safety (EHS) compliance (VelocityEHS ( and BOLT ) Application Software $354 NA NA NA NA and systems integration services for public sector agencies globally and incident management software and SaaS for HR professionals Solutions assets) Provides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read" 7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NA content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content 9/25/17 Application Software $195 NA 4.9x NA NA Provides Web-based wealth management SaaS for financial markets 7/12/17 Application Software $80 NA NA NA NA Provides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the hospitality, dining, healthcare, entertainment, travel and education sectors 9/20/17 Security $ x NA NA NA Provides authentication, single sign-on and user identity management SaaS for enterprises Provides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM, 7/7/17 Application Software $ x NA 20.6x NA contract management and spend analysis Provides e-commerce and order management software and services for retailers and businesses. Also provides web hosting, 9/6/17 Application Software $475 NA NA NA NA design and integration services Provides open-source and Windows-based software for businesses. Software provides features for data management, 7/6/17 Information Management $1,260 NA NA NA NA integration and backup 9/5/17 Application Software $200 NA NA NA NA Provides clinical documentation and document management software for the emergency medical sector in the United States 7/5/17 Infrastructure Management $55 1.0x NA NA NA Provides enterprise IT automation and workspace management software to businesses. Features include IT store management, service desk optimization, on-boarding and off-boarding and workforce security 9/5/17 Application Software $ x NA 13.3x NA Provides manufacturing plant project management and design software for businesses in the industrial industries Provides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and 6/14/17 Hosted Services $ x NA 20.0x NA management services for businesses 8/31/17 Application Software $128 NA NA NA NA Provides sales acceleration and lead management SaaS for the mortgage, insurance, technology and education industries 6/14/17 Hosted Services $ x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses Provides gift card sales marketing automation for the restaurant and retail sectors. Also provides an online sales service that 8/30/17 6/5/17 Application Security Software $175 $69 5.1x 1.0x 4.0x NA NM NA NA enables Provides consumers identity and to access purchase management gift cards SaaS, as well as IoT application development SaaS, for businesses 8/28/17 6/2/17 Infrastructure Application Management Software $105 $ x NA 1.0x NA NM NA 19.9x NA 5/31/17 Infrastructure Management $1,125 NA NA NA NA 8/22/17 Application Software $ x NA 15.5x NA Provides marketing transaction automation and payment SaaS processing and digital software, marketing SaaS services and services to businesses for businesses. the consumer Also provides products, related retail, in-store automotive, payment terminals financial services, healthcare, telecommunications, marketing and entertainment industries Provides Provides business enterprise intelligence SQL Server document administration, and knowledge performance management, management, and backup GIS SaaS, and hosting recovery, and and software compliance development software. services Also provides for businesses Windows in PowerShell Scandinavia interactive and Baltic development nations environment (IDE) software Provides sales performance and compensation management, analytics and planning software as a service (SaaS) for 5/30/17 Application Software $ x 4.7x NM NM 8/21/17 Application Software $ x NA 20.8x NA Provides businesses insurance and reinsurance software solutions 5/26/17 Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses 8/15/17 Asure Software Inc. isystems ( LLC ) Application Software $ x NA NA NA Provides load tracking and management SaaS for the shipping and freight sector in the US 5/11/17 Symantec Corporation Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers DigiCert Inc. [Thoma The Website Security business and PKI assets of Symantec, which provides security SaaS and services for businesses and 8/3/17 (Website Security Application Software $950 NA 2.4x NA NA Bravo] consumers globally business (Website Security assets) Business Assets) Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 11/6/2017, where Enterprise Value is > $50MM. Transactions highlighted in yellow denote Private Equity acquirers. 13

14 RECENT ACQUISITIONS Select Software M&A Transactions ($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description 7/25/17 Sage Group Intacct Corp. Application Software $ x NA NA NA The Provides communities accounting and and sports financial divisions management of Active Network, 8/3/17 Global Payments Inc. Application Software $1,207 NA NA NA NA software which as a service provides (SaaS) administration, for businesses membership, donations and event management SaaS for non-profit organizations (Communities& Sports Divisions) 7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NA 8/2/17 Application Software $250 NA 5.0x NA NA 7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NA 8/1/17 Application Software $80 1.5x NA NA NA Provides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS) Provides property management software featuring document management, electronic signatures, website development, and systems integration services for public sector agencies globally background screening, legal contract management, payment processing and cloud computing Provides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read" Provides content and customer provides service grammar automation, editing, billing, monitoring, citation scoring, management, analytics asset reporting recovery, and development and transportation to written database enterprise systems content and outsourced services for municipalities and toll authorities 7/12/17 Application Software $80 NA NA NA NA Provides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the hospitality, dining, healthcare, entertainment, travel and education sectors 7/27/17 Security $112 NA NA NA NA Provides merchant risk intelligence software for the investment and financial industries Provides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM, 7/7/17 Application Software $ x NA 20.6x NA contract management and spend analysis Provides e-discovery and forensic investigation software that analyzes the contents of an individual or networked computer 7/26/17 Information Management $ x 2.1x NM 20.6x for businesses and law enforcement agencies globally Provides open-source and Windows-based software for businesses. Software provides features for data management, 7/6/17 Information Management $1,260 NA NA NA NA integration and backup 7/25/17 Application Software $ x NA NA NA Provides accounting and financial management software as a service (SaaS) for businesses 7/5/17 Infrastructure Management $55 1.0x NA NA NA Provides enterprise IT automation and workspace management software to businesses. Features include IT store management, service desk optimization, on-boarding and off-boarding and workforce security 7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NA 6/14/17 Hosted Services $ x NA 20.0x NA Provides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS) and Provides systems infrastructure integration as services a service for (IaaS), public backup sector agencies and recovery, globally firewall, cloud storage and remote monitoring and management services for businesses Provides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read" 7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NA 6/14/17 Hosted Services $ x 2.2x NM 148.3x content Operates and as provides a domain grammar name registry editing, and monitoring, provides domain scoring, name analytics services reporting to consumers and development and businesses to written enterprise content Provides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the 7/12/17 6/5/17 Application Security Software $80 $69 1.0x NA NA NM NA NA hospitality, Provides identity dining, and healthcare, access management entertainment, SaaS, travel as well and as education IoT application sectors development SaaS, for businesses 7/7/17 6/2/17 Infrastructure Application Management Software $133 $ x NA NA 20.6x NA NA 5/31/17 Infrastructure Management $1,125 NA NA NA NA 7/6/17 Information Management $1,260 NA NA NA NA 5/30/17 Application Software $ x 4.7x NM NM 7/5/17 Infrastructure Management $55 1.0x NA NA NA Provides SCM transaction SaaS for and businesses payment primarily processing within software, the US, SaaS UK and services Europe. Software for businesses. provides Also features provides for related procurement, in-store SRM, contract payment management terminals and spend analysis Provides enterprise SQL Server administration, performance management, backup and recovery, and compliance software. Provides open-source and Windows-based software for businesses. Software provides features for data management, Also provides Windows PowerShell interactive development environment (IDE) software integration and backup Provides sales performance and compensation management, analytics and planning software as a service (SaaS) for Provides businesses enterprise IT automation and workspace management software to businesses. Features include IT store management, service desk optimization, on-boarding and off-boarding and workforce security 5/26/17 Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses Asure Software Inc. isystems ( LLC ) Provides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and 6/14/17 Hosted Services $ x NA 20.0x NA management services for businesses 5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers 6/14/17 Hosted Services $ x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 11/6/2017, where Enterprise Value is > $50MM. Transactions highlighted in yellow denote Private Equity acquirers. 14

15 RECENT ACQUISITIONS Select Software M&A Transactions ($MM) Announced Enterprise EV / Revenue EV / EBITDA Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description 7/25/17 6/5/17 Sage Group Intacct Corp. Application Security Software $850 $69 9.7x 1.0x NA NM NA NA Provides identity accounting and and access financial management management SaaS, software as well as as IoT a service application (SaaS) development for businesses SaaS, for businesses 7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NA 6/2/17 Infrastructure Management $260 NA NA NA NA Provides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS) Provides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store and systems integration services for public sector agencies globally payment terminals Provides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read" 7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NA content Provides and enterprise provides SQL grammar Server editing, administration, monitoring, performance scoring, analytics management, reporting backup and and development recovery, and to written compliance enterprise software. 5/31/17 Infrastructure Management $1,125 NA NA NA NA content Also provides Windows PowerShell interactive development environment (IDE) software Provides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the 7/12/17 Application Software $80 NA NA NA NA hospitality, Provides sales dining, performance healthcare, and entertainment, compensation travel management, and education analytics sectors and planning software as a service (SaaS) for 5/30/17 Application Software $ x 4.7x NM NM businesses 7/7/17 Application Software $ x NA 20.6x NA Provides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM, contract management and spend analysis 5/26/17 Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses Provides open-source and Windows-based software for businesses. Software provides features for data management, 7/6/17 Information Management $1,260 NA NA NA NA integration and backup 5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers 7/5/17 Infrastructure Management $55 1.0x NA NA NA Provides enterprise IT automation and workspace management software to businesses. Features include IT store management, service desk optimization, on-boarding and off-boarding and workforce security 5/9/17 Information Management $96 5.6x NA 16.5x NA 6/14/17 Hosted Services $ x NA 20.0x NA Provides customer address verification software as a service (SaaS) to e-commerce companies and other businesses. Also Provides provides verification infrastructure SaaS as a for service other customer (IaaS), backup data and such recovery, as phone firewall, numbers cloud and storage addresses and remote monitoring and management services for businesses 5/3/17 Infrastructure Management $ x 5.2x 14.0x NA Provides software, Web application and API code review, testing and quality assurance (QA) software for businesses 6/14/17 Hosted Services $ x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses 6/5/17 Security All Software $69 1.0x NA NM NA Provides identity and access management SaaS, as well as IoT application development SaaS, for businesses Median 4.4x 4.0x 18.6x 19.9x Mean 4.2x 3.7x 51.2x 40.2x 6/2/17 Infrastructure Management $260 NA NA NA NA PE Acquirers 5/31/17 Infrastructure Management Median $1, x NA 4.2x NA 14.0x NA NA 17.4x Mean 5.1x 4.0x 14.0x 17.4x Provides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store payment terminals Provides enterprise SQL Server administration, performance management, backup and recovery, and compliance software. Also provides Windows PowerShell interactive development environment (IDE) software 5/30/17 Application Software $ x 4.7x NM NM Provides sales performance and compensation management, analytics and planning software as a service (SaaS) for businesses 5/26/17 Asure Software Inc. isystems ( LLC ) Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses 5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 11/6/2017, where Enterprise Value is > $50MM. Transactions highlighted in yellow denote Private Equity acquirers. 15

16 RECENT PRIVATE FINANCINGS ($MM) Deal Date Company Amount Raised Brief Description Investors 11/3/17 DataRobot $68 11/3/17 Glint $20 11/2/17 Ayla Networks $60 11/2/17 Instart Logic $30 11/2/17 Zhuiyi $21 Developer of a machine learning automation platform designed to deploy accurate predictive models Provider of a real-time employee engagement platform designed to measure and improve employee retention rates Provider of a a cloud platform-as-a-service (PaaS) connectivity platform designed to provide the flexibility and modularity to enable rapid changes to practically any type of device, cloud or app environment Prvider of an endpoint-aware application delivery technology designed to accelerate web and mobile application performance Developer of Saas based artificial intelligence chatbot platform designed to use for customer services Open Field Capital, New Enterprise Associates Bessemer Venture Partners, Meritech Capital Partners, Norwest Venture Partners, Shasta Ventures Run Liang Tai Fund, Sunsea Telecommunications Singapore Technologies Telemedia, Andreessen Horowitz, Four Rivers Group, Geodesic Capital, H. Barton Asset Management, Hermes Growth Partners, Kleiner Perkins Caufield & Byers, StartX, Telstra Ventures, Tenaya Capital GGV Capital, Sinovation Ventures, Banyan Capital, Morningside Group 11/1/17 Globality (Cross-Border Business Platform) $35 Operator of a global premium B2B services marketplace intended to make globalization work for more businesses and people Albert Gore, Dennis Nally, John Danilovich, THK Private Equities, John Joyce, Raine Ventures 11/1/17 InVisionApp $100 11/1/17 MariaDB $27 Developer of a SaaS prototyping, collaboration & workflow platform designed to help companies unlock the power of design-driven product development Developer of cloud-based open source database designed for information technology infrastructure needs of enterprises Battery Ventures, Geodesic Capital, Spark Capital, Accel, FirstMark Capital, ICONIQ Capital, Tiger Global Management Alibaba Group, California Technology Ventures, Finnish Industry Investment, Intel Capital, Open Ocean Partners, SmartFin Capital 11/1/17 NuoDB $22 Provider of client or cloud relational database technology 10/31/17 ChangingEdu $55 Provider of online platform designed to help parents find a suitable tutor for their children Converge Venture Partners, ACI Worldwide, Dassault Systemes, Hummer Winblad Venture Partners, Longworth Venture Partners, Morgenthaler Ventures ClearVue Partners, Frees Fund, IDG Capital, Sequoia Capital, Tal Education Group, Trustbridge Partners 10/31/17 Face++ $460 10/31/17 Innoviz Technologies $73 10/31/17 Recorded Future $25 10/31/17 Shippo $20 10/27/17 LimeBike $50 Provider of a facial recognition technology designed to aim at providing compact, powerful and cross-platform vision service Provider of LiDAR-based (Light Detection and Ranging) remote sensing sensors and systems designed to offer accurate mapping and localization Developer of a threat intelligence analytics platform intended to significantly lower risk of cyber attacks Provider of a multi-carrier API and dashboard designed to help business succeed through shipping Operator of a bike sharing platform designed to change the way people travel within blocks Ant Financial, CCB International Asset Management, China State-Owned Assets Supervision & Admn Commission, Foxconn Technology Group, Lenovo Capital and Incubator Group, Russia- China Investment Fund, SK Group, Sunshine Insurance Group Co., Comet Labs, Legend Star, Qiming Venture Partners, Sinovation Ventures 360 Capital Partners, Delphi Automotive, Glory Ventures (China), Naver, Samsung Strategy and Innovation Center, SoftBank Ventures Korea, Amiti Ventures, Delek Group, Gil Agmon, Magma Venture Partners, Startup Autobahn, Vertex Ventures Israel Insight Venture Partners Bessemer Venture Partners, 500 Startups, SoftTech VC, Union Square Ventures, Version One Ventures AME Cloud Ventures, Coatue Management, Franklin Templeton Investments, GGV Capital, Section 32, StartX, The Durant Company, Andreessen Horowitz, DCM Ventures Source: Pitchbook. Reflects deal activity through 11/6/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM. 16

17 RECENT PRIVATE FINANCINGS ($MM) Deal Date Company Amount Raised Brief Description Investors 10/25/17 Credit Sesame $27 10/25/17 Klook $60 10/24/17 ChowNow $20 Provider of a credit and loan management platform intended to change the way consumers apply for and manage their credit Provider of travel tours and activities booking platform designed to connect travelers with the experiences they want and need Provider of an online food ordering platform created to help restaurants effectively improve and maintain customer relations SF Capital, Globespan Capital Partners, IA Capital Group, Inventus Capital Partners, Menlo Ventures The Goldman Sachs Group, Matrix Partners China, Sequoia Capital China Catalyst Investors, Steadfast Venture Capital 10/24/17 GTreasury $42 Provider of installed as well as SaaS treasury management services Mainsail Partners 10/24/17 HashiCorp $40 10/24/17 iadvize $38 10/24/17 KnowBe4 $30 Provider of cloud infrastructure automation tools designed to solve development, operations and security challenges in infrastructure Provider of a real-time customer engagement platform designed to manage online customer relations Developer of an integrated security awareness training and simulated phishing platform designed to train employees to make smarter security decisions GGV Capital, Mayfield Fund, Redpoint Ventures, True Ventures IdInvest Partners, Quadrille Capital, Bpifrance Goldman Sachs Merchant Banking Division, Elephant Partners 10/24/17 ResMan (Property Management Software) $36 Provider of a leading next-generation property management software intended to streamline multifamily management Mainsail Partners 10/24/17 Wibbitz $20 10/23/17 ActionIQ $30 Provider of an online video creation platform designed to publish short videos using text content Developer of a SaaS enterprise customer data platform designed to solve the flow and scale of data, analytics and marketing campaigns Associated Press, Bertelsmann Digital Media Investments, TF1 Group, The Weather Channel, Horizons Ventures, lool Ventures, NantWorks Andreessen Horowitz, Shutterstock, FirstMark Capital, Sequoia Capital 10/23/17 Shift Technology $28 Developer of a data security platform intended to improve the insurance claims process General Catalyst Partners, Accel, Elaia Partners, Iris Capital Management 10/22/17 SmartDrive (Driver Safety Software) $40 Developer of a Web-based driver safety and risk management software designed to help fleet managers reduce risk by coaching operators to be safer drivers Michelin North America Pension Arm, New Enterprise Associates, Oak Investment Partners, Wabco 10/19/17 Automile $34 10/19/17 Coda.io $60 10/19/17 CrowdStrike $25 Provider of mobile-first, design-first fleet and field service management services intended to connect vehicle drivers to fleet managers Developer of an adaptable business documents platform intended to actively adapt to the way teams naturally work together Developer of a cloud-based cybersecurity platform designed to prevent, detect, and respond to attacks in real-time Insight Venture Partners, Dawn Capital, Point Nine Capital, SaaStr, Salesforce Ventures General Catalyst Partners, Greylock Partners, Khosla Ventures, Kleiner Perkins Caufield & Byers, New Enterprise Associates, NA Source: Pitchbook. Reflects deal activity through 11/6/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM. 17

18 RECENT PRIVATE FINANCINGS ($MM) Deal Date Company Amount Raised Brief Description Investors 10/19/17 Huajuan Mall $40 Provider of an online video and m-commerce platform designed for online shopping Sinovation Ventures, Zhiping Capital, Ventech, Vertex Ventures China 10/19/17 Lyft $1,000 Provider of an on-demand ride hailing platform designed to connect passengers with local drivers CapitalG 10/18/17 Contrast Security $30 Developer of application security software designed to protect against cyber-attacks Battery Ventures, Acero Capital, General Catalyst Partners 10/18/17 Duo $70 10/18/17 GuiaBolso $39 Provider of cloud-based internet security services designed to protect organizations against data breaches Operator of an online financial control and advisory platform intended to transform relationship with money Geodesic Capital, Index Ventures (UK), Meritech Capital Partners, Workday, Lead Edge Capital, Redpoint Ventures, True Ventures Endeavor Global, Vostok Emerging Finance, International Finance Corporation, Omidyar Network, QED Investors, Ribbit Capital 10/18/17 MapR $61 Provider of a converged data platform designed to offer real-time database capabilities Quadrille Capital, Lightspeed Venture Partners 10/18/17 Perfect $25 Developer of beauty applications dedicated to transform how consumers, content creators and beauty brands interact together China Creation Ventures, CyberLink, Extol Capital, Yuanta Financial Holding 10/17/17 Auto Amigo $30 Developer and provider of online automotive buying platform NA 10/17/17 BankBazaar.com $30 10/17/17 Feedzai $50 Provider of online loan marketplace designed to provide customized rate quotes on loans and insurance products Provider of machine learning platform designed to help processing large volumes of data with low latency producing actionable information in real time Experian Sapphire Ventures 10/17/17 Lightspeed POS $166 Developer of point of sale and e-commerce services designed to manage businesses Silicon Valley Bank, Caisse de dépôt et placement du Québec, inovia Capital, Investissement Québec 10/13/17 PolicyBazaar $77 10/12/17 Domo $112 10/12/17 KnowBox $30 10/12/17 SecurityScorecard $28 Provider of an online life insurance and general insurance comparison portal designed to analyze financial products Provider of a cloud-based business-management platform designed to connect data, people, and expertise that are needed to improve business results Developer of an online educational platform created to help students and teachers better manage homework Provider of a security rating platform designed to empower every organization with collaborative security intelligence IDG Ventures India, True North (Managers), Wellington Management, Premji Invest, Temasek Holdings, Tiger Global Management SharesPost, The Yard Ventures, BlackRock, GGV Capital, Glynn Capital Management, The Capital Group Companies Baidu Capital, Bertelsmann Asia Investments, Haoweilai, New World Development AXA Strategic Ventures, Intel Capital, Moody's, Nokia Growth Partners, Boldstart Ventures, Evolution Equity Partners, GV, Sequoia Capital, Two Sigma Ventures Source: Pitchbook. Reflects deal activity through 11/6/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM. 18

19 RECENT PRIVATE FINANCINGS ($MM) Deal Date Company Amount Raised Brief Description Investors 10/11/17 Attivo Networks $21 Developer of a deception technology designed to detect, analyze and accelerate response to cyber-attacks Bain Capital Ventures, Omidyar Technology Ventures, Trident Capital Cybersecurity 10/11/17 Baxter Planning Systems $25 Provider of a Software-as-a-service (SaaS) based supply chain application suite Polaris Partners 10/11/17 Carta $42 Developer of a cap table management platform designed to consolidate private company ownership onto one common electronic registry and bring a wealth of financial services to all privately held companies Menlo Ventures, Social Capital 10/11/17 Huishoubao $45 Provider of a mobile phone recycling platform intended to refurbish used mobile phones STRAIT Capital Corp, Chengwei Capital, CITIC Capital Partners, SM Capital, Source Code Capital 10/10/17 Bill.com $100 10/10/17 Tongdun $73 10/9/17 Gitlab $20 10/7/17 Petuum (Artificial Intelligence) $93 10/5/17 QuanticMind $20 10/5/17 Stellar Labs $26 10/4/17 FogHorn $30 Provider of a cloud-based business payments network designed to simplify business payments Developer of anti-theft and fraud management software designed to provide security services in the financial sector Provider of an open-source, code-collaboration platform designed to unify issues, code review, CI and CD into a single UI Developer of a machine learning (ML) infrastructure platform designed to make even the most advanced AI technology accessible and affordable by everyone who needs it Provider of predictive advertising management software designed to offer intelligent marketing services Provider of a real-time sourcing platform and digital marketplace designed for private and business aviation needs Developer of edge intelligence software designed to deliver the power of real time industrial grade analytics to resource constrained edge devices JPMorgan Chase & Company, Temasek Holdings, August Capital, DCM Ventures, Emergence Capital Partners, Icon Ventures, Napier Park Financial Partners, Scale Venture Partners China Cinda Asset Management, Temasek Holdings, Tiantu Capital, Xindahanshi Capital GV SoftBank Group, Advantech Capital Partners Foundation Capital, Cervin Ventures, Safeguard Scientifics Columbia Equity Partners, Expa Labs, Global Jet Capital Honeywell Ventures, Intel Capital, Darling Ventures, Dell Technologies Capital, GE Ventures, March Capital Partners, Robert Bosch Venture Capital, Saudi Aramco Energy Ventures, The Hive, Yokogawa Electric 10/4/17 Roofstock $35 Operator of an online marketplace designed to buy & sell tenant-occupied rental property Canvas Ventures, FJ Labs, Bain Capital Ventures, Khosla Ventures, Lightspeed Venture Partners, Nyca Partners, QED Investors 10/4/17 Seasoned $20 10/4/17 TripActions $27 10/3/17 AtScale $25 Operator of a professional networking platform designed to connect workers with jobs, talent and career development opportunities Developer of an online corporate and business travel management platform designed to help business travel managers and travelers in booking hotels and flights at a discounted price Provider of a business intelligence platform designed to make business analytics work on big data TPG Growth Zeev Ventures, Lightspeed Venture Partners Atlantic Bridge Capital, Industry Ventures, UCLA Ventures, Wells Fargo Securities, Comcast Ventures, Storm Ventures, UMC Capital, XSeed Capital Source: Pitchbook. Reflects deal activity through 11/6/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM. 19

20 RECENT PRIVATE FINANCINGS ($MM) Deal Date Company Amount Raised Brief Description Investors 10/3/17 Frame.io $20 10/3/17 MessageBird $62 9/28/17 Taulia $20 9/28/17 Trifacta $33 9/27/17 Kyriba $45 9/26/17 Envoy Global $21 Developer of a video review and collaboration platform designed to streamline video creation process Developer of communication APIs designed to connect companies with their customers on billions of devices around the world Developer of a SaaS financial supply chain platform designed help companies strengthen supplier relationships Provider of productivity platforms for data analysis intended to leverage innovative research in human-computer interaction, scalable data management and machine learning Provider of a cloud-based treasury and cash management software designed to help in supply chain finance and risk management operations Provider of global immigration and workforce management technology and services designed to make it easier for employers and workers to pursue opportunity across the global marketplace Accel, FirstMark Capital, Shasta Ventures, SignalFire Accel, Atomico, Y Combinator NA DB1 Ventures, Ericsson Ventures Sumeru Equity Partners, Bpifrance, Daher Capital, HSBC Innovation Investments, Iris Capital Management Catalyst Investors, General Catalyst Partners 9/24/17 Deliveroo $385 Provider of an online food delivery platform designed to order restaurant meals Fidelity Management & Research, T. Rowe Price, Accel, DST Global, General Catalyst Partners, Index Ventures (UK) 9/21/17 Earnin $39 Developer of a mobile application designed to give people access to their pay any time they want Andreessen Horowitz, March Capital Partners, Matrix Partners, Ribbit Capital 9/28/17 Feidee $200 Developer of a mobile application for personal finance Kohlberg Kravis Roberts 9/28/17 Stockpile $30 9/27/17 Logtrust $35 9/26/17 Drift $32 Provider of a stock market investment platform designed to make it simple for young and first-time investors to save and invest for their future Provider of a big data analytics platform designed to provide a complete and unified view of business operations Developer of a conversation-driven marketing and sales platform designed to automatically turn website traffic into qualified sales meetings Eight Roads Ventures, Hanna Ventures, Wang Ventures, Arbor Ventures, Mayfield Fund Atlantic Bridge Capital, Insight Venture Partners, Kibo Ventures Partners, Investing Profit Wisely HubSpot, Sequoia Capital, Charles River Ventures, General Catalyst Partners 9/25/17 Ritual $44 Provider of a mobile application for local lunch and coffee ordering Insight Venture Partners, Mistral Venture Partners 9/22/17 Apttus $55 Provider of a cloud-based software designed to offer quote-to-cash automation services Premji Invest, ICONIQ Capital, K1 Capital, Salesforce Ventures 9/22/17 Prosper $50 Developer of a marketplace lending platform designed to facilitate peer to peer lending FinEX Asia, LPG Capital Source: Pitchbook. Reflects deal activity through 11/6/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM. 20

21 SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Registrations ($MM) Issuer Primary Industry Initial Filing Date Initial Offering Amount LTM Revenue (1) Rev Growth (2) EBIT (3) EBIT Margin Date (4) Last Financing Amount Raised Post Money Valuation Funding TD (5) Application Software 20-Oct-17 $100 $ % $8 5.6% 30-Sep-16 $54 NA $55 Communications Software 18-Oct-17 $100 $ % $0 0.3% 17-Nov-16 $33 $578 $82 Sources: Capital IQ, Pitchbook and Company filings. Offering amounts $20MM or greater. (1) LTM as of 6/30/2017 for SailPoint and 9/30/2017 for SendGrid. (2) Reflects revenue growth from CY2015 to CY2016 for SailPoint and SendGrid. (3) Reflects LTM Non-GAAP EBIT. Calculated as EBIT plus stock-based compensation. LTM as of 6/30/2017 for SailPoint and 9/30/2017 for SendGrid. (4) Reflects last financing > $25MM. (5) Represents latest VC financing greater than $25MM. SendGrid funding TD includes later stage VC financing of $1.2MM on 3/14/

22 SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Pricings ( $M M ) Offer Date (1) Name Market IPO Date Amount Raised Pre IPO Filing Range Offer Price % Change Offer / Midpoint Price % Change 1st Trading Day / Offer Price % Change Current / Offer Price 1-Nov-17 $1,106 $ $ % 40.8% 45.9% 19-Oct-17 $1,570 $ $ % 33.6% 27.5% 25-May-17 $881 $ $ % 87.3% 28-Apr-17 $2,318 $ $ % 20.7% 3.9% 13-Apr-17 $1,146 $ $ % 21.9% 9.1% 7-Apr-17 $2,134 $ $ % 38.3% 70.2% 24-Mar-17 $873 $ $ % 10.7% 57.5% 17-Mar-17 $3,118 $ $ % 45.6% 38.2% Sources: Capital IQ and Company filings. Market Data as of 11/6/2017. (1) First Trading Day listed as Offer Date. 22

23 A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIES Strategic and Private Equity Exits Outweigh New Issues 210 PE Acquisitions Strategic Acquisitions IPO (7) 11 (11) Fortinet CDC Software LogMeIn Medidata SolarWinds Rosetta Stone (5) SciQuest RealPage IntraLinks Envestnet Qlik BroadSoft Higher One Convio SPS Commerce SS&C QuinStreet (4) 7 Jive Imperva Carbonite Tangoe Responsys Cornerstone Epocrates (8) (6) 17 Workday Fleetmatics Qualys Eloqua E2open ServiceNow Exa Incadea Infloblox Proofpoint Splunk ExactTarget Demandware Bazaarvoice Greenway AVG Guidewire (11) 16 (9) (9) (6) Mavenir Barracuda Wix.com Covisint RingCentral FireEye Cvent Gigamon Textura ChannelAdvisor Marketo Tableau Halogen Rally Marin Model N 17 Workiva Hortonworks New Relic HubSpot CyberArk MobileIron Kinaxis Zendesk Paycom OPOWER Five9 2U Borderfree Amber Road A10 Networks Paylocity Varonis Systems (6) (7) 11 Atlassian Mimecast Instructure Rapid7 Sophos AppFolio Alarm.Com Xactly Shopify Apigee Box (10) (8) 9 Twilio SecureWorks Talend Everbridge Apptio Gridsum Holding Nutanix Coupa BlackLine, Inc. (12) (9) 8 Mulesoft Alteryx Okta Yext Cloudera Appian MongoDB Altair Engineering YTD 2017 (11) (5) YTD 2017 IPO Strategic Exits PE Exits Sources: Capital IQ, company filings. Market Data as of 11/6/

24 $Bn Number of Investments VENTURE CAPITAL INDUSTRY TMT Transactions Since Q $14 1,000 $ $10 $8 600 $6 400 $4 200 $2 $0 0 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Quarter - Year (1) Number of Deals Investment Amount (1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and Equipment, Semiconductors, Software and Telecommunications until Q As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software. 24

25 GCA OVERVIEW Deep Software Sector Expertise Acquisition of Acquisition of Minority investment from Preferred Stock We Advised the Buyer We Advised the Buyer Preferred Stock Acquisition of Convertible Note Offering Financial Advisor We Advised the Buyer Financial Advisor Strategic Advisory Services Acquisition of Investment by Preferred Stock Acquisition of Acquisition of Financial Advisor We Advised the Buyer Financial Advisor We Advised the Buyer We Advised the Buyer Preferred Stock Acquisition of Financial Advisor We Advised the Buyer Fairness Opinion to Buddy Media The above transactions represents a compilation of past and current deals that GCA entities have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction. 25