Advertising And Marketing Technology

November 2013

Disclaimer:

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liability whatsoever arising directly or indirectly from the use of this document.

Julie Langley Mark Williams

Managing Director Manager

+44 (0) 20 7514 8247 +44 (0) 20 7514 8242

jlangley@resultsig.com mwilliams@resultsig.com

For more information contact:

Market overview and update

Contents

01 About Us

02 Market Landscape

03 Public Markets Environment

1

Digital Media

Selected clients and transaction counterparties (1)

Corporate Finance Advisors to the Adtech, Software & Marcoms Sectors

An established team of sector experts…

• Results International is a market-leading M&A advisory

firm founded in 1991

• Entrepreneurial and owner-managed

• 40 person global team with over 250 completed

transactions

• Senior level attention on all transactions

Adtech

Marketing Services Software

Sector specialism

…with global reach

(1) Some clients were advised by Results International MDs at prior firms 2

Mark Williams Manager

Angela Lurssen Director

Selected Team Members- UK

Andy Collins Senior Partner

• Joined Results in 2005 and

has completed over 50

transactions, raised £150m

of funding from private

equity and the Capital

Markets and provided

strategic advice to a wide

range of businesses

• Clients include Abacus,

Retail Eyes, Bridgehead

International, Chemistry

Communications, Latitude,

and Total Healthcare Group

Keith Hunt Managing Partner

• Joined Results in 2005 -

Previously Head of M&A at

Ernst & Young

• 20+years experience in

corporate finance, including

M&A, fundraising, IPOs, JVs,

MBOs and MBIs

• Clients include Figtree,

Monitor Media,

Spannerworks, Flip Media, Transactis, Punktilio,

Flamingo, Brand X, and AIA

• Joined Results in 2012. He started his career at KPMG

working in Financial Services

M&A and moved to

Ingenious Corporate

Finance in 2010

• Clients include Moonpig, St

Ives, and Inflexion

Julia Crawley- Boevey Manager

• Joined Results in 2010 having spent over four years at BDO

where she worked in both

Audit and Corporate

Finance

• Clients include The Group,

Blue Rubicon, Virgo Health,

Incite, and Crayon

• Joined Results in 2001 having

previously worked client and

then agency side

• Her current role is Director,

where she is responsible for

developing current and new

business opportunities along

with driving the marketing

and knowledge functions

• Clients include Punktilio,

Monitor Media and AIA

• Joined Results International in June 2012

• She recently graduated with

a first class BSc(Hons) in

Chemistry from the University

of Southampton

• Clients include Amaze

Harriet Rosethorn Analyst

• Joined Results International in July 2012

• Started his career at Crowe

Clark Whitehill LLP, before

moving to Parker Lloyd

Group in 2011, a finance

boutique firm based in

Mayfair

Sherif Hegazy Analyst

• Joined Results International

in 2013

• Began his career at Investec

Bank, spending 2 years in

the Credit department

before joining Results

Daniel Lee Analyst

Jim Houghton Partner

• Joined Results in 2010, with

over 10 years of M&A

experience

• Prior to joining Results Jim led

European M&A activity for

the marketing services

division of Omnicom (DAS)

• Clients include Blue Rubicon,

Virgo Health, Crayon, Iris,

United News & Media plc,

and BBC Worldwide

• Joined Results in 2012 to

lead the tech and digital

media practice

• 15 years M&A experience at

Broadview then Jefferies,

advising tech and digital

media companies on M&A

and fundraising

• Advised on transactions with

Oracle, Microsoft, Experian,

Moody’s, IAC, Axel Springer, DMGT, and BT, amongst

others

Julie Langley Managing Director

3

Chris Beaumont Regional Director – North Asia

• Joined Results in 2008 and

has 13 years working in

financial services, with over 8

years of experience as a

corporate finance specialist

• Previously worked at

Nomura, Royal Bank of Canada and Ernst & Young

• Clients include Abacus, Total

Healthcare Group, Synergy,

D2D and Retail Eyes

• Co-founded GroupArgent in

2005. Closed $4.0 billion in

cross-border transactions

including several Canada-US

• Experience includes

Telesystem International

Wireless (NASDAQ: TIWI) sold to Vodafone, and buyout

and exit representation for

Canadian firms Caisse de

Dépôt and Wynnchurch

• Co-founded GroupArgent in 2005 and has closed over 35

transactions totaling $0.75

billion

• Prior to GroupArgent,

Maurice worked at the

Zanett Group, Morgan

Stanley and IBM

USA Team

• 15 years of experience in the global marketing

services sector in

management, M&A

advisory and management

consulting

• 27 years experience in the

advertising sector, including

as COO of JWT's Middle East

Network

• Joined Results International

in 2008 and has since been

engaged in a number of buy and sell mandates

Carl Izzi Managing Director

Pierre-Georges Roy Partner

Selected Team Members - International Asia Team

• 16 years of experience

consulting in Asia

• For 10 years Chris was with

McCann-Erickson in Asia; he

was both Vice-Chairman of

its operations in Tokyo and Chief Strategy Officer for

WorldGroup across Asia

• Long career in marketing sector (Ogilvy & Mather, The

Ball Partnership)

• Managed the acquisition of

SMART to McCann

Worldgroup, CCG by

Publicis Group to establish

Digitas China, CIC by Kantar

Media and The Upper Storey

by Isobar

Andrew Kefford Regional Director - APAC

Maurice Watkins Partner

Hemavli Bali Executive Director

Imad Kublawi Regional Partner - MENA

• Spent 24 years at Hindustan Thompson (part of JWT), the

largest ad agency in India

• Other roles include COO at

RK Swamy/BBDO and as

advisor to companies in

India, Pakistan & Dubai

Sunil Gupta Area Liaison - South Asia

4

Selected Transactions Across Technology, Marcoms & Digital Media

has been acquired

by

has been acquired

by

has been acquired

by

has been acquired

by

has been acquired

by

has been acquired

by

has been acquired

by

has been acquired

by

has completed a joint

venture with

has been acquired

by

has been acquired

by

has been acquired

by

has invested in

has been acquired

by

has been acquired

by

NOTE: Certain transactions were advised on by RI’s MDs at previous firms. 5

has been acquired

by

has been acquired

by

has been acquired

by

Content

01 About Us

02 Market Landscape

03 Public Markets Environment

6

• Ad Network and Exchanges

• DSPs/SSPs/DMPs

• SEO/SEM Tools

• Targeting/Retargeting

• Revenue Acquisition

• Tracking, Tag Management

Attribution

Marketing Technology Landscape – Illustrative Companies

Marketing Automation

• Omnichannel Campaign

Management

• Marketing Automation

• Lead Management

Social CRM /

Social Software

Digital Marketing Tech

(Display & Search) Mobile

• Mobile Marketing

• Mobile App Platforms

• Mobile DSPs

• Mobile Ad Management/Ad

Serving

eCommerce Tech

• eCommerce Platforms

• Recommendation Software

• Personalisation Software

• eCommerce logistics

Video

• OVP’s

• Video Sharing

• Ad Management

• Video Commerce/

Marketing

• Video Creation Tools

Su

bse

gm

en

ts

Diversified

Vendors

Selected Representative Companies

• Social Media Marketing

• Ratings & Reviews

• Monitoring & Intelligence

• Analytics

• Customer Service Solutions

• Enterprise social networking

7

85%

78%

66%

55%

15%

23%

35%

45%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2008 2011 2015E 2020E 2008 2011 2015E 2020E

TV, Radio & Print Desktop & Mobile Internet

% o

f To

tal U

S A

dv

ert

ise

r B

ud

ge

t A

llo

ca

tio

ns

Evolution of the Ad Tech Market

Advertisers Still Allocate ¾ of Advertising Dollars to TV, Radio and Print

Source: eMarketer, IDC, Morgan Stanley Research (June 2012)

Continued growth of digital advertising:

Forecast to account for 45% of the US advertising budget in 2020

This growth continues to be driven by:

- On-going development of new formats and platforms (namely

mobile and video) for online display advertising

- Shift from PC to smartphone and rise of multi-device audience

- Increasing global penetration of high speed broadband –

increasing the need for more interactive communication and

reducing the cost of delivering rich media content

- Continued dominance of social networks capturing more

consumer time spent than any other online vertical

Impact on Adtech:

Increased corporate budgets - budgets for marketing technology are

growing annually at 11%, c.2.5x faster than internal IT budgets, which

are growing at 4.7% (Source: Chuck Schaeffer, CRM Search)

Increasing campaign complexity - brands have recognised the

requirement for technology in order to successfully facilitate multi-

device, multi-channel and multi-territory ad campaigns

Increased awareness of importance of ‘big data’ – consolidating and

analysing data captured across spectrum of digital channels gaining

a full picture of the ‘digital shopper’

- the need to understand the efficacy of digital versus traditional

advertising strategy

Increased interest of both brands and consumers to receive

personalised targeting/ recommendations based on browsing history

to improve shopping experience

‘For every dollar spent on online advertising, as

much as 80 cents is estimated to be spent on digital

technology versus the actual ad space’

Emily Steel, Financial Times

‘CMOs will control more IT spend than CIOs by

2017’

Laura McLellan, Gartner

8

3643

32 3426

34

4943

6155

48 45

78 7888

65 6470

89

7378

68

0

10

20

30

40

50

60

70

80

90

100

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Strength Of The Global M&A Ad Tech Market

(# D

ea

ls)

Sources: Press releases, CapitalIQ, Corpfin, and Results’ Analysis

Adtech consolidation continues at pace – however there is substantial VC funding going into the sector and the number of new start-ups is outpacing the

number of acquisitions (Source: Luma Partners)

Key M&A drivers:

- Established players have been acquiring new capabilities/ technologies to extend their existing product suites

- Large internet conglomerates and technology companies continue to compete to remain ‘on top’ of new tech innovations and are

competitively scouring the market for the best start-ups and talent

- Yahoo, in particular, has been a prolific acquirer in 2013 making over 20 acquisitions to date

The IPO market has recently opened for adtech including YuMe, Tremor Video and Marin Software, however these parties have yet to use their currency

to pursue acquisitions

9

14 25 39 53 71 92 109

195226

259

297

339

385

434

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017

US Retail mCommerce Sales US Retail eCommerce Sales

Ecommerce Technology

Devices used for eCommerce Gartner calculates the eCommerce tech market to be worth in excess of

$3bn

- Matched with consulting and other services delivered alongside, the

entire market could be worth 10x this amount

And as the market has grown, eCommerce tech has become a key

strategic focus for enterprise software, consultancies, and marcoms

groups alike, although there has been a notable shift in the focus of M&A

activity:

- Earlier eCommerce tech deals were focused on management of

websites, store fronts, payments and shopping carts

- Recent deals are more about managing and optimising the full

spectrum of customer engagement across web, mobile, social,

contact centre and other touch points

Focus of recent deal activity:

Tag management and the ability to gather real time behavioural

data on consumers

- RichRelevance recently acquired Avail Intelligence Software

and [x+1] acquired Ubertags, in order to track the consumer

journey and optimise retailers eCommerce sites

Taking captured data relating to each user and using it to

personalise an online store to their individual preferences:

- Yahoo has been acquisitive in this area buying

recommendations software provider Jybe

Establishing a view of a universal user has become paramount as brands

base online marketing and often trading decisions on an understanding

of an entire customer journey, from in-store browsing, price comparison,

review, mobile searching and eventual sale; the growth of omnichannel

retail marketing

The development of eCommerce technology

($ B

illio

n)

eCommerce

facilitation Data capture

Personalisation

Marketing

decision

Source: eMarketer (April 2013)

10

Ecommerce Technology – Selected Recent Deal Activity

Date Investors Target Size ($m)

Description

Aug-13 Wellington Management 76 Mobile payments and eCommerce platform

Jul-13 Octopus Investments and Northstar Ventures

6 Multi-channel retail customer experience software

Jul-13 Revolution Growth 40 eCommerce platform for SMBs

Jul-13 TTV Capital, TechOperators, Nonami, Forte Ventures

3 eCommerce marketing platform for SME's

Jul-13 Yaletown Venture Partners 4 eCommerce software

May-13 Advance Digital, Cox Media, Gannett & others

9 Technology focused on local discovery shopping

May-13 First Round, Accelerator, 500 Startups, SoftTech VC, Joi Ito

1 Recommendation engine for product advertisements

Mar-13 Lightspeed Venture Partners 1 Personalisation software for retailers

Feb-13 Not disclosed 15 Personalisation software

Aug-12 RTP, Shea, Gray, Tugboat 8 Tracking & personalisation software for retailers

Jul-12 Scottish Equity Partners and Delta Partners

2 eCommerce intelligence and data quality solutions

Feb-11 Octopus Ventures 3 eCommerce content

management platform

11

Date Buyer Target EV ($m) EV/REV Description

Aug-13 n.a. n.a. eCommerce solutions provider

Jul-13 n.a. n.a. eCommerce app platform

Jun-13 n.a. n.a. eCommerce platform that places promotions (Buy Now)

Jun-13 SAP 1,100 8.8x eCommerce software

Jun-13 n.a. n.a. Commerce and order management platform

May-13 284 2.0x Digital marketing and eCommerce consulting

May-13 n.a. n.a. Online merchandising platforms

Mar-13 n.a. n.a. Recommendation software

Feb-13 n.a. n.a. Website tag management and deployment software

Feb-13 125 n.a. Retail data feeds and product optimisation for eCommerce

Nov-12 33 n.a. Full service eCommerce advertising network

Nov-12 6 n.a. Multi-channel retail management solutions

Oct-12 21 n.a. Product recommendation software

May-12 167 14.0x Rating and reviews software

May-12 n.a. n.a. Customer buying analytics technology

Selected M&A Activity Selected Funding Activity

2,8313,098

3,4493,798

4,214

4,697

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2011 2012 2013 2014 2015 2016

Marketing automation market forecasting steady growth

Marketing Automation

Integration of Social CRM and marketing automation

Marketing automation has historically been limited to email, however,

customers are increasingly using social networks to provide

recommendations, advice and price comparisons prior to purchase

- In these cases, marketing automation software becomes more

reactive to consumer interest rather than proactive or

campaign-driven

- In addition, brands are seeking solutions that react in real-time to

customer activity and enable quick interaction with customers

Furthermore, marketing automation has greater efficacy when

powered with the mass of data gleaned across all online and offline

channels – leveraging the data captured across the complete

customer journey to create targeted messaging

Consequently, to facilitate seamless interaction with social media

and to enable reactive real-time targeting, a marketing automation

products need to be fully integrated with, and feed off of data

captured by measurement (i.e. tagging) and social marketing tools

- Innovation and integration have been key drivers of M&A as

software providers seek to differentiate their product suites with

the newest and most innovative automation applications

Key recent deals exemplifying these trends have been:

- Silverpop – CoreMotives

- Teradata – eCircle

- ExactTarget – Pardot

- Oracle – Eloqua

- Adobe – Neolane

Marketing automation deals have also derived some of the largest

multiples – Oracle paid over 9x revenues for Eloqua

Source: Gartner (December 2012)

Driving development of targeted

software designed to respond to

real-time social interaction to drive

highest impact, engagement and

ROI

Marketing Automation

Responsive

Targeted

Multi-channel

Social CRM

Engagement

Interaction

Monitoring

12

Marketing Automation – Selected Recent Deal Activity

Date Buyer Target EV ($m)

EV/REV Description

Aug-13 n.a. n.a. Marketing automation & demand gneration

Jun-13 600 10.3x Cross-channel campaign management

Jun-13 2,283 7.2x Cloud-based marketing automation

May-13 295 6.2x Lead generation and conversion software

May-13 n.a. n.a. Web-based email marketing system

Dec-12 871 9.2x(1) Cloud-based marketing automation

Sep-12 n.a. n.a. Behavioural targeting & predictive analytics

Oct-12 96 8.6x SaaS marketing automation platform

Oct-12 n.a. n.a. Marketing automation software

May-12 150 4.3x Digital messaging platform

Mar-12 n.a. n.a. Marketing automation solution

Feb-12 169 3.5x Email and social media marketing solutions

Jan-12 108 1.8x Marketing analytics & campaign management

Jun-11 n.a. n.a. Marketing automation software

(1) Eloqua was on a revenue run rate of approx. $95m, 9.2x is the run rate revenue multiple

Date Investors Target Size ($m)

Description

Sep-13 Partial close 4 Voice based marketing automation platform

Sep-13 Southern Cross Venture, Tim Draper, Terry Garnett

2 Marketing & sales automation

Sep-13 Hallett Capital 1 Marketing automation software

Aug-13 NEA, DAG, Lightbank, Andreessen, Cisco, 7-Ventures

12 Universal loyalty program to provide email campaigns

Jun-13 BDC Venture, GO Capital, Alan Shusterman, Feldman

2 Marketing automation and integration platform

Apr-13 Escalate Capital Partners, SVB Capital

25 Cross-channel marketing automation technology

Jan-13 Goldman Sachs 54 Sales & marketing automation platform

Nov-12 Institutional investor, Altimeter, Cross Creek, previous investors

35 Inbound marketing software firm

Sep-12 Norwest Venture, Trinity Ventures, US Venture, Voyager Capital

16 Cloud-based marketing automation platform

Jul-12 Private investors 4 Social nurturing marketing platform

Mar-12 Ignition Partners, Battery, DFJ 20 Infrastructure automation platform

Jan-12 Northwater, Draper Triangle, DFJ

Portage, CincyTech, Washington 8

Marketing optimization software and services

Mar-11 Emergence Capital, Mohr Davidow, Accel, Deep Fork

n/d Marketing automation & demand generation solutions

Selected M&A Activity Selected Funding Activity

13

804

1,003

1,242

1,535

1,896

2,305

2,749

0

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015 2016 2017

2,8313,098

3,4493,798

4,2144,697

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2011 2012 2013 2014 2015 2016

Worldwide Enterprise Social Software Revenue

Social CRM / Social Software

Source: IDC (May 2013)

INTERNAL (at an Enterprise level)

Corporates continue to invest in procuring the best social tools in order to

optimise colleague interaction, the transference of ideas and sharing of

information

However, solo, stand-alone software solutions are no longer preferred as

companies are seeking solutions to be integrated within wider Enterprise

applications

- Enabling automatic response to workflow opportunities and other

supporting tools identified via social interaction

- Many of the large enterprise software vendors have functionality

in this area, e.g. Microsoft (Yammer and SharePoint), Salesforce

(Chatter), IBM (IBM Connections, Sametime, Notes etc.), SAP

(Jam)

EXTERNAL (customer engagement)

Brands are increasing prominence of social media campaigns as a way to

attract and engage with customers and extend brand reach

- The continued growth of Facebook and Twitter advertising

revenues is a sign of confidence in social marketing

Consequently, CRM solution providers have acquired social tech platforms

to accelerate their capture of social market and offer brands another

‘touchpoint’ to reach and monitor customers

Fast, integration with wider solution has been a key occurrence:

- Oracle integrating Vitrue within Oracle’s Social Relationship Suite

- Marketo integrating Crowd Factory provides integrate marketing

automation activities i.e. lead generation, nurturing capabilities

across social applications

Analytics and gaining intelligence from the consumers ‘social voice’ has

also been a key focus of recent acquisitions, as seen by Twitter’s

acquisition of Blue Fin Labs and Oracle’s acquisition of Collective

Intelligence

Global Social Media Advertising Spend

Source: Comscore, Morgan Stanley (June 2012)

48%

($ M

illio

n)

($ M

illio

n)

14

Social CRM / Social Software – Selected Recent Deal Activity

Date Buyer Target EV ($m)

EV/REV Description

Jun-13 n.a. n.a. Platform for conducting social media analysis

Apr-13 n.a. n.a. Social media listening and compliance

Feb-13 c.75 n.a. Social media monitoring for TV shows & commercials

Jan-13 n.a. n.a. Social media marketing suite for SMBs

Aug-12 40 n.a. Social media advertising services

Jul-12 350 n.a. Social media marketing software

Jun-12 1,200 n.a. Enterprise social networking

Jun-12 n.a. n.a. Social media monitoring intelligence

Jun-12 745 c. 19x(1) Social media marketing suite

May-12 167 14.0x Rating and reviews software

May-12 300 n.a. Social media page management

Feb-12 169 3.5x Email and social media marketing solutions

Mar-11 345 9.8x(2) Social media monitoring and intelligence

Jun-10 n.a. n.a. Web analytics software

(1) BuddyMedia generated approx. $25 million revenue in CY2011 (up 250% year-on-year). Based on Salesforce.com’s statements, the TTM revenue at

the time of the deal was approx. $40 million.

(2) Radian6 was on a revenue run rate of $35m and projecting about $50m for the full year so 9.8x is the run rate revenue multiple

Date Investors Target Size ($m)

Description

Aug-13 NorthCap, Target Partners 8 Social media management platform

Aug-13 CrunchFund, Core Ventures Group

3 Platform to track content on social media

Jun-13 Scottish Equity Partners, Private Investors

2 Management & analytics cloud solution for Twitter

Jun-13 AEA Investors 68 Social software solutions for Facebook, Twitter, Tumblr

Apr-13 Fairhaven, SoftBank, RRE, AOL, betaworks, kbs+, Rand

10 Social media optimization technology

May-13 Gibraltar Business Capital, Blue Chip Venture Company

8 Social data and marketing technology company

Mar-13 Flybridge Capital, Revel Partners, Rutledge Partners 4

Social media management platform

Feb-13 Intel Capital, Battery Ventures 15 Platform for social media management (SIREn)

Jan-13 Shasta, Norwest , Redpoint, Trident

8 Social advocacy platform

Jan-13 DoubleRock, Social Internet, Siemer, Signal, Silicon Valley

7 Social media advertising and analytics platform

Dec-12 Index Ventures, SEED Capital Denmark, Northzone

13 Provides online consumer reviews

Nov-12 Investor Growth, Goldman Sachs, Accolade & others 30 Drupal (open source CMS)

Nov-12 Index Ventures and Early Bird Venture Capital

6 Social media monitoring and digital analytics

May-12 Jafco Ventures, DAG Ventures, Matrix Partners, Eden Ventures 24

Enterprise content collaboration software

Selected M&A Activity Selected Funding Activity

15

153306 386

656

1,090

1,4571,245

1,600

0

500

1,000

1,500

2,000

2,500

Q3 2012 Q4 2012 Q1 2013 Q2 2013

Mobile ad revenue Total ad revenue

Mobile Advertising Market

Global mobile ad revenue nearly doubled in 2012

Facebook’s quarterly advertising revenue

Innovation and development in mobile market underpinned by

increasing tablet and smartphone penetration and the speed of

mobile internet access are driving increasing mobile ad revenues

Whilst historic M&A was driven by mobile ad penetration and

delivery, acquirers new focus on targeted advertising and delivery

based on user engagement, e.g. Yahoo, Criteo, Media6 Degrees,

[x+1] acquisitions

Location based targeting has also been a significant focus

of recent M&A activity, the number of local searches on

mobile devices quadrupled in 2012, evident with

acquisitions of AdMovate, Spindle and Pynt

Core limitations – the lack of cookies on mobile devices preventing

tracking or tagging of user mobile internet activity

Dominance of ‘app’ usage with core customer data owned

and held by app owner rather than brands

Google dominates mobile search market although Facebook and

Twitter are rapidly growing presence having created native ad

formats that seamlessly integrate with user experience generating

higher value impressions

Google is constantly looking to retain its leadership in this

fast moving market and has made a number of acquisitions

in order to do so, including AdMob (now integrated into

AdWords), Motorola Mobility, and more recently investments

in targeting technology (Adelphic)

Whilst Facebook’s mobile advertising revenue grew 70% from Q1 to

Q2 2013 social networks need to fear ‘over monetisation’ and

carefully balance user engagement, number and frequency of ads

and advertiser ROI 16

3,769

6,889

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012

83%

Source: IHS (July 2013)

Source: ffforward (August 2013), Business Insider (October 2012)

(€ Million)

($ Million)

Mobile Technology – Selected Recent Deal Activity

Date Buyer Target EV ($m)

EV/REV Description

Sep-13 350 n.a. Ad inventory management platform for mobile publishers

Aug-13 209(1) n.a. Mobile ad network - targeted advertising

Jul-13 n.a. n.a. Personalised, hyper-local targeted offers on mobile

Jul-13 n.a. n.a. Mobile advertising targeting

Jul-13 n.a. n.a. Monitors advertising performance on apps

Jun-13 n.a. n.a. Mobile app focused on location and check-in space

May-13 3 n.a. Platform that operates in mobile local search & ads

May-13 n.a. n.a. Mobile marketing campaign delivery

Mar-13 n.a. n.a. Acquired location based mobile marketing assets

Feb-13 n.a. n.a. Local-recommendations app

Jan-13 n.a. n.a. Create and manage mobile campaigns

Jan-13 n.a. n.a. Mobile advertising network

Jan-13 n.a. n.a. Mobile marketing platform

Jan-13 23 n.a. Mobile advertising network

17 (1) Jumptap shareholders received 24.6m of Millennial Media shares, this EV is based in August 14th share price of $8.5

Date Investors Target Size ($m)

Description

Sep-13 SoftTech VC, DFJ Esprit, Karlin Ventures, Siemo, Canyon Creek

7 Mobile DSP

Aug-13 Private Equity 4 Mobile advertising network

Aug-13 DFJ, Vulcan, Gannet, Mezzanin, US Venture

8 Analytics ROI technology for mobile advertising

Aug-13 Verizon Ventures 2 Mobile programmatic advertising technology

Jul-13 Publicis 15 Mobile rewards platform

May-13 Not disclosed (Partial close) 4 Location-based mobile advertising

Apr-13 North Atlantic Capital, Silicon Valley Bank

5 Mobile user acquisition network

Apr-13 MMC n.a. Mobile marketing agency and technology

Feb-13 Samsung, Accel, Index, SAP, Mitsui & Co., Presidio, Cyber comms

25 Online advertising platforms

Jan-13 Talus Holdings 8 Mobile advertising platform - signup ads

Dec-12 Google Ventures and Matrix Partners 10

Mobile advertising measurement specialists

Nov-12 SingTel Innov8, NEA, and Jafco

Ventures 13

Mobile video and media

company

Nov-12 Kennet, Tengelmann, High-Tech Gründerfords

15 Data-driven mobile app marketing platform

Nov-12 Crosslink, Menlo, Draper Fisher, InterWest & others

25 Mobile analytics and advertising company

Jun-12 SingTel Innov8 10 Mobile ad exchange

Selected M&A Activity Selected Funding Activity

2,000

2,930

4,140

5,750

6,990

8,040

9,060

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2011 2012 2013 2014 2015 2016 2017

US spend on video ads served to PCs and mobile devices will reach

$4.14 billion this year, more than twice 2011 levels, and expected to

double again by 2017 (Source: eMarketer)

Mobile video is growing at 112% vs. 35% for online video

Growth of video advertising driven by

Increase in connection speeds and broadband and

introduction of 4G increasing consumption of video

Growth of second screen viewing

Growth of video-on-demand and consumption of PAY-TV;

Netflix revenues forecasted to grow by 31% in 2013 since

2011 (using H1 2013 run-rate)

Increased appetite of brands to develop advertiser focused

content embedded with other market initiatives, i.e. Red Bull

‘sky dive’ campaign

Ability to target video advertising to individual users rather

than broader demographically defined TV ads

Video M&A activity remains strong and is still largely driven by ad

management platforms and networks adding video advertising

networks/platforms to their display and search capabilities

Examples include AOL Networks/Adap.tv, WPP/Panache,

Adconian/Smartclip, and MediaMath/tap.me

Still room for the market to evolve, with potential investments

expected to cover the areas of social video, rights management,

tracking & analytics and interactive content are likely to drive M&A

activity

Video Advertising Market

US TV vs. Digital Ad Spending

US Digital Video Ad Spending*

Source: eMarketer (March 2013)

*advertising that appears on desktop and laptop computers, mobile phones and tablets Source: eMarketer (March 2013)

($ Billion)

18

($ Million)

6165 66

69 7073

75

32

37

43

48

5357

60

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016 2017

TV Digital

Video Technology – Selected Recent Deal Activity

Date Buyer Target EV ($m)

EV/REV Description

Aug-13 490(1) n.a. TV advertising distribution unit of Digital Generation

Aug-13 405 n.a. Video advertising platform

May-13 n.a. n.a. Platform for social video advertising

Apr-13 n.a. n.a. Video advertising network

Mar-13 n.a. n.a. Video advertising network

Jan-13 n.a. n.a. In-stream video advertising optimization

Dec-12 n.a. n.a. Video and mobile ad technology provider

Oct-12 n.a. n.a. Video advertising network

Mar-12 13 1.4x Video advertising network

Jan-12 n.a. n.a. ‘InPlay’ Video analytics solutions from TubeMogul

Dec-11 n.a. n.a. Digital video advertising fulfilment software

Nov-11 n.a. n.a. Multi-screen & brand advertising platform

Nov-11 120 n.a. Provides online video advertising technology

Sep-11 40 n.a. Owns advanced video search technology

Sep-11 n.a. n.a. In-Stream Video Ad Solutions

19

Date Investors Target Size ($m)

Description

Aug-13 Not disclosed 4 Core infrastructure for the video advertising market

Jul-13 Nauta Capital, Lightspeed Ventures, Gemini Israel, Marker

8 Personalised video advertising technology

Jul-13 Not disclosed (Partial close) 3 Online video technology

May-13 SingTel Innov8 10 Video ad buying platform

May-13 Catalyst, NEA, Valhalla, Comcast, Pinnacle

60 Video advertising paltform

May-13 Ventech, ISAI 4 Video advertising network

May-13 Spectrum Equity 50 Manage, execute & track ads across video

Apr-13 Not disclosed (Partial close) 4 Targeting technology for video advertising

Mar-13 Sequoia, Genesis, T-Venture, Vintage Investment

11 Video advertising and ad serving technology

Mar-13 Data Point, Atlas, Freestyle, Boston Seed, Transmedia, Tribeca

3 Interactive television & video ad exchange

Feb-13 Institutional and individual investors

7 Social video advertising platform

Feb-13 Viola Credit 11 Video advertising distribution platforms

Jan-13 AGF Investments, Pinetree, Plazacorp, Cranson

18 Video social networking platform

Jan-13 Insight Venture Partners 15 Video content and social platform

Nov-12 Mitsui Global, Orix , Nexus, Intel,. 406, Avalon

25 Open source online video platform

(1) EV includes extra consideration of $5m which is contingent on further investment not being required for the new company post acquisition

Selected M&A Activity Selected Funding Activity

Content

01 About Us

02 Market Landscape

03 Public Markets Environment

20

15.0x

12.9x

18.6x

11.3x

n.a.

9.5x10.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Diversified

Internet

Marketing

Technology

Video Mobile Social CRM Diversified

Agencies

Enterprise

Software

33%

13%

6%

10%

0%

16%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Diversified

Internet

Marketing

Technology

Video Mobile Social CRM Diversified

Agencies

Enterprise

Software

4.3x

3.6x

2.5x

1.2x

4.0x

1.3x

3.8x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

Diversified

Internet

Marketing

Technology

Video Mobile Social CRM Diversified

Agencies

Enterprise

Software

17% 17%

23%

8%

21%

5%

8%

0%

5%

10%

15%

20%

25%

Diversified

Internet

Marketing

Technology

Video Mobile Social CRM Diversified

Agencies

Enterprise

Software

Valuation Benchmarks

21

Notes: EV = Enterprise Value

Source: CapitalIQ

N/A

EBITDA Margins 2014E EV/EBITDA 2014E

Revenue growth (13-14E) EV/REV 2014E

usd millions, except per share

data Valuation Metrics Operating Metrics

Price Market Net Enterprise Revenue EBITDA P/E Rev. Growth EBITDA Margin

Company (30-Oct-13) Cap Debt Value CY2013 CY2014 CY2013 CY2014 CY2013 CY2014 CY13-14 CY2013 CY2014

Diversified Internet

Google Inc. 1,030.42 344,250 (47,599) 296,651 5.0 x 4.3 x 13.8 x 11.4 x 23.3 x 19.8 x 17.3% 36.4% 37.4%

Yahoo! Inc. 32.57 33,657 (1,657) 32,000 7.2 x 7.0 x 21.2 x 20.3 x 22.2 x 19.4 x 2.6% 33.9% 34.6%

AOL Inc. 36.18 2,931 (367) 2,564 1.1 x 1.0 x 5.6 x 5.1 x 17.8 x 15.6 x 7.7% 20.3% 20.4%

Facebook, Inc. 49.01 119,355 (8,753) 110,602 14.5 x 10.7 x 24.6 x 18.5 x 59.2 x 45.4 x 35.7% 59.1% 57.8%

LinkedIn Corporation 224.11 26,760 (2,272) 24,488 16.1 x 11.3 x n.m. n.m. n.m. n.m. 42.4% 24.6% 26.4%

Amazon.com Inc. 361.08 165,279 (4,646) 160,633 2.1 x 1.8 x 31.9 x 23.3 x n.m. n.m. 22.2% 6.7% 7.5%

eBay Inc. 52.73 68,872 (5,740) 63,132 3.9 x 3.4 x 11.8 x 10.2 x 19.5 x 16.8 x 15.3% 33.4% 33.2%

25th percentile 3.0 x 2.6 x 12.3 x 10.5 x 19.5 x 16.8 x 11.5% 22.4% 23.4%

Median 5.0 x 4.3 x 17.5 x 15.0 x 22.2 x 19.4 x 17.3% 33.4% 33.2%

75th percentile 10.9 x 8.9 x 23.7 x 19.8 x 23.3 x 19.8 x 28.9% 35.2% 36.0%

Marketing Technology

Experian plc 20.41 20,034 3,087 23,121 4.7 x 4.4 x 13.9 x 12.9 x 27.1 x 20.7 x 6.7% 34.0% 34.4%

Responsys, Inc. 16.18 920 (106) 815 4.1 x 3.5 x 33.1 x 25.4 x n.m. 75.5 x 18.9% 12.5% 13.7%

Marin Software Incorporated 11.87 419 (115) 304 4.0 x 3.2 x n.m. n.m. n.m. n.m. 22.5% (37.0%) (26.5%)

LivePerson Inc. 9.37 506 (75) 431 2.4 x 2.1 x 21.6 x 16.2 x 49.3 x 35.4 x 14.2% 11.2% 13.1%

Demandware, Inc. 48.50 1,647 (104) 1,542 15.4 x 11.3 x n.m. n.m. n.m. n.m. 35.8% (3.8%) 3.1%

Vocus Inc. 8.82 186 43 229 1.2 x 1.2 x 9.5 x 8.5 x 43.7 x 32.3 x 2.4% 13.0% 14.2%

Digital River Inc. 18.37 629 (285) 344 0.9 x 0.9 x 9.7 x 7.3 x 32.6 x 33.2 x (2.3%) 9.0% 12.3%

Interactive Intelligence Group Inc. 62.51 1,372 (76) 1,296 4.3 x 3.7 x n.m. n.m. n.m. n.m. 15.3% 9.1% 8.5%

Constant Contact, Inc. 26.36 844 (107) 737 2.6 x 2.3 x 16.1 x 12.7 x 36.3 x 28.1 x 12.8% 16.1% 18.0%

Marketo, Inc. 33.30 1,452 (133) 1,319 14.0 x 10.6 x n.m. n.m. n.m. n.m. 31.9% (32.7%) (18.3%)

Rocket Fuel Inc. 54.56 2,070 (0) 2,070 9.2 x 5.1 x n.m. n.m. n.m. n.m. 81.0% (2.4%) 0.1%

Criteo SA 35.39 1,957 (48) 1,909 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

PROS Holdings, Inc. 34.60 1,025 (88) 936 6.5 x 5.3 x n.m. 32.7 x 68.0 x 61.9 x 21.9% 16.0% 16.2%

25th percentile 2.5 x 2.2 x 10.8 x 10.6 x 33.5 x 30.2 x 11.3% (2.8%) 2.3%

Median 4.2 x 3.6 x 15.0 x 12.9 x 40.0 x 33.2 x 17.1% 10.2% 12.7%

75th percentile 7.1 x 5.1 x 20.2 x 20.8 x 47.9 x 48.7 x 24.8% 13.8% 14.7%

Video

Brightcove, Inc. 15.24 465 (34) 431 4.0 x 3.4 x n.m. n.m. n.m. n.m. 15.8% 4.5% 6.5%

Tremor Video, Inc. 9.17 454 137 592 4.4 x 3.4 x n.m. n.m. n.m. n.m. 29.7% 0.0% 3.0%

YuMe, Inc. 8.32 284 53 337 2.2 x 1.7 x n.m. 31.9 x n.m. 52.4 x 31.2% 2.7% 5.2%

Digital Generation, Inc. 12.51 349 339 688 1.8 x 1.7 x 6.1 x 5.4 x n.a. n.a. 3.3% 29.0% 31.7%

25th percentile 2.1 x 1.7 x 6.1 x 12.0 x n.a. 52.4 x 12.7% 2.0% 4.6%

Median 3.1 x 2.5 x 6.1 x 18.6 x n.a. 52.4 x 22.7% 3.6% 5.8%

75th percentile 4.1 x 3.4 x 6.1 x 25.3 x n.a. 52.4 x 30.0% 10.6% 12.8%

Selected Publicly Traded Companies

22

Notes: EV = Enterprise Value

Calendarised to December year end

Source: Capital IQ

usd millions, except per share

data Valuation Metrics Operating Metrics

Price Market Net Enterprise Revenue EBITDA P/E Rev. Growth EBITDA Margin

Company (30-Oct-13) Cap Debt Value CY2013 CY2014 CY2013 CY2014 CY2013 CY2014 CY13-14 CY2013 CY2014

Mobile

Velti Plc 0.26 23 12 36 0.2 x 0.2 x n.m. n.m. n.m. n.m. 0.4% (42.3%) 0.6%

Millennial Media Inc. 7.06 600 (123) 478 1.8 x 1.2 x n.m. 11.3 x n.m. 23.9 x 52.6% 4.4% 10.3%

YOC AG 2.41 7 3 10 0.3 x 0.3 x n.m. n.m. n.m. n.m. (8.0%) (18.2%) (3.0%)

1000mercis 64.02 199 (46) 153 2.8 x 2.6 x 8.8 x 7.9 x 16.0 x 15.1 x 7.7% 31.6% 32.5%

Opera Software ASA 12.42 1,609 (70) 1,539 5.1 x 3.8 x 18.1 x 12.5 x 42.2 x 23.4 x 34.1% 28.4% 30.6%

25th percentile 0.3 x 0.3 x 11.1 x 9.6 x 22.6 x 19.2 x 0.4% (18.2%) 0.6%

Median 1.8 x 1.2 x 13.4 x 11.3 x 29.1 x 23.4 x 7.7% 4.4% 10.3%

75th percentile 2.8 x 2.6 x 15.8 x 11.9 x 35.6 x 23.6 x 34.1% 28.4% 30.6%

Social CRM

Bazaarvoice, Inc. 9.72 757 (85) 672 3.8 x 3.2 x n.m. n.m. n.m. n.m. 17.3% (12.9%) (2.4%)

Jive Software, Inc. 12.72 974 (107) 867 6.0 x 4.8 x n.m. n.m. n.m. n.m. 24.8% (14.5%) (11.3%)

25th percentile 4.3 x 3.6 x n.a. n.a. n.a. n.a. 19.2% (14.1%) (9.1%)

Median 4.9 x 4.0 x n.a. n.a. n.a. n.a. 21.0% (13.7%) (6.9%)

75th percentile 5.4 x 4.4 x n.a. n.a. n.a. n.a. 22.9% (13.3%) (4.6%)

Diversified Agencies

Dentsu Inc. 38.33 9,941 3,413 13,354 0.6 x 0.6 x 13.3 x 11.4 x n.m. n.a. 7.0% 4.5% 4.9%

Havas 8.33 3,339 (237) 3,102 1.2 x 1.2 x 7.7 x 7.3 x 16.2 x 14.7 x 3.7% 16.1% 16.5%

The Interpublic Group of Companies, Inc. 16.62 7,015 1,147 8,162 1.1 x 1.1 x 9.2 x 8.1 x 20.5 x 15.9 x 4.4% 12.5% 13.5%

Omnicom Group Inc. 67.99 17,734 3,182 20,916 1.4 x 1.4 x 9.6 x 9.1 x 17.7 x 16.0 x 4.7% 14.9% 15.0%

Publicis Groupe SA 84.12 18,051 950 19,001 2.0 x 1.8 x 10.6 x 9.9 x 17.0 x 15.6 x 5.8% 18.4% 18.6%

WPP plc 21.45 29,220 4,795 34,014 1.9 x 1.8 x 10.9 x 10.3 x 16.3 x 14.8 x 5.1% 17.4% 17.5%

25th percentile 1.2 x 1.1 x 9.3 x 8.4 x 16.3 x 14.8 x 4.4% 13.1% 13.9%

Median 1.3 x 1.3 x 10.1 x 9.5 x 17.0 x 15.6 x 4.9% 15.5% 15.8%

75th percentile 1.8 x 1.7 x 10.9 x 10.2 x 17.7 x 15.9 x 5.7% 17.1% 17.3%

Selected Publicly Traded Companies Cont.

23

Notes: EV = Enterprise Value

Calendarised to December year end

Source: Capital IQ

usd millions, except per share

data Valuation Metrics Operating Metrics

Price Market Net Enterprise Revenue EBITDA P/E Rev. Growth EBITDA Margin

Company (30-Oct-13) Cap Debt Value CY2013 CY2014 CY2013 CY2014 CY2013 CY2014 CY13-14 CY2013 CY2014

Enterprise Software

Sage Group plc 5.42 5,981 370 6,351 2.8 x 2.8 x 9.6 x 9.3 x 15.1 x 13.8 x 2.2% 29.6% 30.1%

Blackbaud Inc. 35.30 1,602 157 1,759 3.5 x 3.2 x 17.0 x 14.9 x 29.2 x 26.1 x 8.8% 20.6% 21.7%

Adobe Systems Inc. 54.10 27,584 (1,644) 25,939 6.4 x 5.9 x 21.8 x 19.0 x 39.7 x 33.1 x 8.5% 29.2% 30.9%

Concur Technologies, Inc. 107.25 6,069 (280) 5,789 10.0 x 8.0 x n.m. n.m. n.m. n.m. 25.4% 21.6% 22.0%

Qlik Technologies, Inc. 25.31 2,322 (235) 2,087 4.5 x 3.8 x n.m. 32.2 x n.m. 60.6 x 18.0% 8.7% 11.8%

Salesforce.com, Inc 52.79 32,248 1,816 34,065 8.6 x 6.7 x n.m. n.m. n.m. n.m. 29.0% 13.1% 16.2%

Oracle Corporation 33.53 156,410 (14,569) 141,841 3.7 x 3.6 x 7.8 x 7.0 x 13.8 x 11.0 x 4.2% 48.0% 51.7%

Microsoft Corporation 35.54 296,801 (63,409) 233,392 2.9 x 2.7 x 7.7 x 7.3 x 15.3 x 12.7 x 7.9% 37.4% 36.3%

SAP AG 79.03 96,109 2,818 98,927 4.2 x 3.9 x 12.3 x 10.9 x 17.4 x 15.5 x 7.7% 34.5% 36.0%

Intuit Inc. 71.46 20,596 (1,162) 19,434 4.5 x 4.2 x 12.2 x 10.6 x 24.3 x 19.1 x 7.6% 37.1% 39.7%

Open Text Corporation 75.10 4,482 67 4,549 3.3 x 3.1 x 10.8 x 10.1 x 19.0 x 12.6 x 4.5% 30.5% 31.2%

25th percentile 3.4 x 3.2 x 9.2 x 9.3 x 15.2 x 12.7 x 6.0% 21.1% 21.9%

Median 4.2 x 3.8 x 11.5 x 10.6 x 18.2 x 15.5 x 7.9% 29.6% 30.9%

75th percentile 5.4 x 5.0 x 13.4 x 14.9 x 25.5 x 26.1 x 13.4% 35.8% 36.2%

Selected Publicly Traded Companies Cont.

24

Notes: EV = Enterprise Value

Calendarised to December year end

Source: Capital IQ

8

9

9

10

10

11

11

12

12

Closed at $9 on its first

day of trading, the same

price at which it went

out to market

Earnings release

Provider of digital video brand advertising solutions. Offers a range of

solutions, all with the aim of maximising publishers video and app inventory

and ensuring it reaches and targets the correct audience

Based in California and founded in 2004, it was originally backed by Khosla

Ventures and Accel Partners

It also offers video ad management software (YuMe for Publishers) that

allows Publishers to monetize their video and app inventory

Its Connected Audience Network delivers smarter digital video advertising to

TV-scale audiences watching PCs, smartphones, tablets and connected TV

screens

SDKs technology resides in players and devices and collects a vast amount

of screen and audience data

Placement Quality Index, or PQI, contextual scoring system uses data

algorithms to assess the quality of ad placement

IPO (August 2013)

Priced at $9 per share

Stock traded at a high of $9.85 and a low of $8.73, ending the day at an

even $9 on its first day of trading

Has since decreased 8% from its initial IPO price to $8.32 per share

Trading at a 50% discount to peer, Tremor Video, on EV/Rev

IPO Case Study

25

Company & IPO Overview Share Price & Financials

USD

Current share price: $8.32

IPO share price: $9

Current market cap: $284m

Current EV: $337m

EV/Rev 2013E: 2.2x

EV/EBITDA 2013E: NM

Sh

are

pric

e

Source – Capital IQ, Market Data as of 30th October 2013; Note – December year end

Video advertising network that enables advertisers to deliver high quality

video ads across its network of premium publishers. Offers advertising across

computers, smartphones, tablets and connected TVs

Based in NYC, founded in 2005 and IPO in June 2013. 6 venture firms

collectively owned 27.7m pre-IPO shares (68%) – largest of these were

Canaan Partners and W Capital Partners

Does not own the advertising inventory it sells but purchases it from

publishers on a yearly or spot bases to then sell on to advertisers

Has access to its own analytical platform, named Video Hub, which

analyses in-stream video content, detects viewer and system attributes –

helps optimize video advertising campaigns

• As of Q1 2013 of its 500 premium websites and mobile applications

partnerships , it has exclusive access to c.200

IPO (June 2013)

Priced at $10 per share

On first day of trading declined to $9

Has seen small movements with share price - slight decline of 8% to $9.17

Recent increase in share price followed

- Issuing Q3 2013 guidance above analysts’ estimates

- Launch of new demand-side platform, VideoHub Connect, to

enable programmatic video ad buying platform, to rival Rocket

Fuel’s proposition

6

7

8

9

10

11

12

Closed at $9 on first day

of trading, below the $10

opening price

Earnings release

IPO Case Study

26

Company & IPO Overview Share Price & Financials

USD

Current share price: $9.17

IPO share price: $10

Current market cap: $454m

Current EV: $592m

EV/Rev 2013E: 4.4x

EV/EBITDA 2013E: NM

Sh

are

pric

e

Source – Capital IQ, Market Data as of 30th October 2013; Note – December year end

9

10

11

12

13

14

15

16

17

18

Closed at

$16.26 on first

day of

trading, 16%

increase on

IPO price of

$14

Earnings release

Revenue Acquisition Management (RAM) multi-tenant SaaS platform that

provides analytics, workflow, and optimization solutions for marketing

professionals, allowing them to effectively manage their digital advertising

spend across search, display, social and mobile channels

Based in San Francisco and founded in 2006, it was initially backed by

Benchmark, DAG ventures and Temasek

Platform synchronizes with popular publishers (such as Baidu, Bing, Facebook,

Google, Yahoo! and Yahoo! Japan) and third-party web and enterprise

applications in order to measure the effectiveness of advertisements and the

subsequent revenue generated

Revenues are primarily derived through subscriptions. Subscription contract

terms range from six months to two years. A sticky customer base (>90% of

revenue comes from existing advertisers) and over 100% renewal rates provide

good visibility

IPO (March 2013)

Priced at $14 per share

Rose 40% in opening hour, but closed at $16.26 on its first day (16% increase)

Has since declined 15% from its initial IPO price to $11.87 per share

Recent increase in share price

- Issuing Q3 2013 guidance above analysts’ estimates

- Better earnings reported in Q2 2013 at 6.2% q/q revenue growth and

2.1% expansion in advertisers on platform

- Revenue growth was primarily driven by new client wins, which

included Ford and the US advertising division of Microsoft

IPO Case Study

27

Company & IPO Overview Share Price & Financials

USD

Current share price: $11.87

IPO share price: $14

Current market cap: $419m

Current EV: $304m

EV/Rev 2013E: 4.0x

EV/EBITDA 2013E: NM

Sh

are

pric

e

Source – Capital IQ, Market Data as of 30th October 2013; Note – December year end

Leading mobile ad network provider, based in Baltimore, Maryland

Founded in 2006 and initially backed by Bessemer Venture Partners, Charles

River Ventures; Columbia Capital and New Enterprise Associates

Key product - MYDAS, technology and data platform, allows the connection

of mobile application developers with advertisers, enabling publishers of

games, music, and other content to offer free apps to smartphone and

tablet users

Its targeting capabilities take into account 150 different audience targeting

categories based on device usage, content consumption, and other

variables, these metrics allow advertisers to specify location, demographics,

affluence, intent, gender, interests and others to target their ad campaigns

Key statistics:

- 45% Q-on-Q revenue growth (as at Q2 2013)

- Strong international revenue growth – over 200% y-on-y

- 450m unique users globally per month

IPO (March 2012)

Priced at $13 per share

On first day of trading increased 92% to $25

Has since declined to $7.06, which is 46% below its IPO price

Recent decline attributed by analysts to:

- Disappointing earnings in Q4 2012/Q1 2013

- Competition (Facebook & Google) offering single point of contact

- Twitter entering market with MoPub acquisition

6

8

10

12

14

16

18

20

22

24

26

Patent lawsuit

filed against

Millennial

Media

IPO closed at $25

on its first day of

trading

(significantly

above the $13

initial pricing)

Acquisition of

Jumptap

Earnings release

IPO Case Study

28

Company & IPO Overview Share Price & Financials

USD

Source – Capital IQ, Market Data as of 30th October 2013; Note – December year end

Current share price: $7.06

IPO share price: $13

Current market cap: $600m

Current EV: $478m

EV/Rev 2013E: 1.8x

EV/EBITDA 2013E: NM

Acquisition of

Metaresolver

Sh

are

pric

e

Source – Capital IQ, Market Data as of 30th October 2013; Note – Calendarised to December year end

6

8

10

12

14

16

18

20

22

IPO priced above the

$8.00-$10.00 initial range

Priced at $12.00 on Feb 24

Earnings release

Provides customer review and social commerce features for brands.

Currently serves over 2,000 clients, including Costco, BestBuy, Home Depot,

LG, Samsung, Vodafone and Microsoft

Based in Austin, Texas and founded in 2005, it was originally backed by

Austin Ventures and Battery Ventures

Offers its solutions through a SaaS conversations platform, enables clients to

capture, display, and analyse online word of mouth, including consumer-

generated ratings and reviews. It then syndicates that content across the

Web and through the channel to reach shoppers

IPO (February 2012)

Priced at $12

IPO was well received by the market as the stock appreciated by c. 20% in

the first month

Has since declined to $9.72, which is 19% below its IPO price

Recent increase in stock price can be mainly linked to

- Conclusions expected shorty on the lawsuit filed against the

company over Power Reviews acquisition

- Positive Q1 2014 results beating analysts’ estimates by 3% and

increasing revenues y-o-y by 25%

IPO Case Study

29

Company & IPO Overview Share Price & Financials

USD

Acquisition of

Longboard

Media

Nov 5

Acquisition of

PowerReviews

May 24

Current share price: $9.72

IPO share price: $12

Current market cap: $757m

Current EV: $672m

EV/Rev 2013E: 3.8x

EV/EBITDA 2013E: NM Sh

are

pric

e

Lawsuit filed against

Bazaarvoice over

Power Reviews

acquisition

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