gca weekly digital media sector summary(2) internet commerce composite includes: amzn, angi, baba,...

1

Weekly Internet / Digital Media / SaaS Sector Summary

Week of November 14th, 2016

2

60%

80%

100%

120%

140%

160%

11/16/2015 1/7/2016 2/28/2016 4/20/2016 6/11/2016 8/2/2016 9/23/2016 11/14/2016

80%

90%

100%

110%

120%

8/16/2016 8/31/2016 9/15/2016 9/30/2016 10/15/2016 10/30/2016 11/14/2016

(1.1%)

INDUSTRY STOCK MARKET VALUATION

Internet / Digital Media / SaaS

Notes: (1) Search/Online Advertising Composite includes: CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, TRMR, TTD, YNDX, YUME. (2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, NILE, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TZOO. (3) Internet Content Composite includes: CRCM, DHX, EHTH, GDDY, IAC, RATE, RENN, SCOR, SFLY, TGNA, TTGT, WBMD, WEB, XOXO, ZG. (4) Publishers Composite includes: GCI, GHC, MMB-FR, NWSA, NYT, PSON-GB, SSP, TIME, TRI, UBM-GB. (5) Diversified Marketing Composite includes: ACXM, ADS, EFX, EXPN-GB, HAV-FR, HHS, IPG, MDCA, NLSN, WPP-GB. (6) Media Conglomerates Composite includes: 6758-JP, CBS, CMCSA, DIS, DISCA, FOXA, LGF, SNI, TRCO, VIAB. (7) Gaming Composite includes: A035420-KR, A036570-KR, 2432-JP, 3632-JP, 3765-JP, 700-HK, ATVI, CYOU, EA, GAM, GLUU, NTES, UBI-FR, ZNGA. (8) SaaS Composite includes: APPF, APTI, BCOV, BOX, BV, COUP, CRM, CSOD, CVT, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, NOW, NTNX, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN. (9) Social Media includes: 3938-JP, FB, P, TWTR, YELP.

Diversified Marketing (5)

Internet Content (3)

Search / Online Advertising (1)

Gaming (7)

Media Conglomerates (6)

Internet Commerce (2)

SaaS (8)

Publishers (4)

NASDAQ

Social Media (9)

Last 12 Months Last 3 Months

27.9%

14.1%

(8.2%)

5.1%

14.1%

6.0%

(10.4%)

(5.0%) (6.6%)

0.4%

(10.3%)

0.1%

3.6% 0.2%

(5.6%)

(2.6%) (4.0%)

(0.9%)

(1.2%)

INDUSTRY STOCK MARKET VALUATION

3

INDUSTRY STOCK MARKET VALUATION Internet / Digital Media / SaaS: Financial Metrics

EV / 2016E Revenue EV / 2016E EBITDA

Notes: (1) Search/Online Advertising Composite includes: CRTO, GOOGL, FUEL, MCHX, MRIN, MSFT, MXPT, QNST, RTHM, RUBI, TRMR, TTD, YNDX, YUME. (2) Internet Commerce Composite includes: AMZN, ANGI, BABA, CMPR, CPRT, EBAY, ETSY, EXPE, FLWS, GRUB, NFLX, NILE, OSTK, PCLN, PRSS, QUOT, QVCA, SSTK, STMP, TZOO. (3) Internet Content Composite includes: CRCM, DHX, EHTH, GDDY, IAC, RATE, RENN, SCOR, SFLY, TGNA, TTGT, WBMD, WEB, XOXO, ZG. (4) Publishers Composite includes: GCI, GHC, MMB-FR, NWSA, NYT, PSON-GB, SSP, TIME, TRI, UBM-GB. (5) Diversified Marketing Composite includes: ACXM, ADS, EFX, EXPN-GB, HAV-FR, HHS, IPG, MDCA, NLSN, WPP-GB. (6) Media Conglomerates Composite includes: 6758-JP, CBS, CMCSA, DIS, DISCA, FOXA, LGF, SNI, TRCO, VIAB. (7) Gaming Composite includes: A035420-KR, A036570-KR, 2432-JP, 3632-JP, 3765-JP, 700-HK, ATVI, CYOU, EA, GAM, GLUU, NTES, UBI-FR, ZNGA. (8) SaaS Composite includes: APPF, APTI, BCOV, BOX, BV, COUP, CRM, CSOD, CVT, ECOM, EVBG, HUBS, JIVE, LPSN, MB, MRIN, NOW, NTNX, RNG, RP, SHOP, ULTI, WDAY, XTLY, ZEN. (9) Social Media includes: 3938-JP, FB, P, TWTR, YELP.

5.4x5.0x

3.5x3.3x

2.9x2.6x

2.4x

1.8x1.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x 37.2x

20.7x 20.0x

13.1x11.9x 11.9x 11.5x 10.5x

8.3x

0.0x

10.0x

20.0x

30.0x

40.0x

4

$MM, Except Per Share Data

Stock LTM EPS

Price Price Range Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS Long Term Revenue Growth

11/14/16 Low High Value Debt Value LTM CY 16E CY 17E LTM CY 16E CY 17E LTM CY 16E CY 17E Growth PEG 17E/16E Y/Y MRQ

Search / Online Advertising

Alphabet Inc. $753.22 $672.66 $839.00 $519,150 ($79,118) $440,032 5.1x 4.9x 4.3x 15.6x 12.3x 10.5x 27.6x 21.8x 18.4x 17.3% 1.1 15.7% 20.2%

Microsoft Corporation 58.12 48.04 61.37 451,903 (60,853) 391,050 4.6 4.2 4.1 14.5 11.2 10.5 27.8 20.4 19.1 9.3% 2.1 4.2% 0.4%

Yandex N.V. 17.81 11.00 23.87 5,731 (690) 5,054 4.4 4.5 3.8 15.0 12.8 10.4 43.4 26.3 20.6 22.5% 0.9 19.6% 30.2%

Criteo SA (1) 39.98 24.23 47.81 2,549 (398) 2,161 4.6 3.0 2.4 14.2 10.3 7.7 32.3 21.3 16.9 26.8% 0.6 26.2% 27.4%

The Trade Desk, Inc. (1) 25.77 22.00 33.40 994 (72) 922 5.3 4.8 3.7 17.2 16.5 13.2 NM 34.2 30.4 30.0% 1.0 28.8% 116.6%

The Rubicon Project, Inc. (1) 7.75 6.12 20.37 380 (193) 187 0.6 0.7 0.7 4.0 2.9 2.9 17.4 8.2 11.1 NM NM 0.7% 2.4%RhythmOne plc 0.46 0.19 0.51 187 (47) 140 0.8 0.6 0.6 NM 30.4 14.4 NM 11.7 25.7 NM NM 2.1% (30.9%)

QuinStreet, Inc. 2.70 2.65 5.19 124 (39) 85 0.3 0.3 0.3 NM 8.5 4.9 NM NM NM 10.7% NM 2.8% 1.4%

Marchex, Inc. 2.70 2.46 4.68 116 (105) 11 0.1 0.1 0.1 NM NM NM NM NM NM 15.0% NM (12.5%) (16.6%)YuMe, Inc. 3.29 2.59 4.36 113 (62) 50 0.3 0.3 0.3 NM 7.1 5.1 NM NM 17.4 NA NA (0.7%) (10.1%)

Tremor Video, Inc. 1.82 1.29 2.15 95 (48) 48 0.3 0.3 0.3 NM NM 7.4 NM NM NM NA NA 11.9% (16.2%)

Marin Software Incorporated 2.40 1.88 4.15 93 (33) 59 0.6 0.6 0.6 NM NM 22.3 NM NM NM NA NA (3.5%) (8.8%)

Rocket Fuel Inc. 1.81 1.74 4.10 83 9 92 0.2 0.2 0.2 NM 7.5 6.9 NM NM NM 2.9% NM 3.5% (1.9%)

MaxPoint Interactive, Inc. 8.55 4.64 11.94 57 2 59 0.4 0.6 0.6 NM NM 66.0 NM NM NM 20.0% NM 5.1% 4.0%

Mean 2.0x 1.8x 1.6x 13.4x 11.9x 14.0x 29.7x 20.6x 20.0x 17.1% 1.1 7.4% 8.4% Median 0.6 0.6 0.6 14.8 10.7 10.4 27.8 21.3 18.7 17.3% 1.0 3.9% 0.9%

Internet Content

Zillow Group, Inc. $34.59 $16.46 $39.99 $6,192 ($215) $5,978 7.6x 7.1x 5.8x NM 42.6x 25.6x NM NM 59.5x 69.9% 0.9 22.5% 27.1%

IAC/InterActiveCorp 65.46 38.82 67.60 5,190 274 5,601 1.8 1.8 1.7 14.4 11.2 9.2 NM 25.7 18.8 19.0% 1.0 8.0% (8.9%)

TEGNA Inc. 22.38 17.91 28.95 4,799 4,131 9,270 2.8 2.8 2.7 8.0 7.4 8.0 10.6 9.9 11.7 13.5% 0.9 3.0% 13.6%

GoDaddy Inc. 32.79 23.88 36.96 2,868 475 3,541 2.0 1.9 1.7 16.8 8.5 7.3 NM 20.5 19.3 NM NM 13.2% 14.8%

WebMD Health Corp. 53.56 42.51 67.55 2,012 6 2,017 2.9 2.9 2.7 11.4 8.8 8.1 29.9 27.9 26.3 12.5% 2.1 5.6% 12.3%

Shutterfly, Inc. 49.98 35.91 54.60 1,697 308 2,005 1.8 1.7 1.6 14.9 9.1 7.8 30.7 84.0 51.8 NM NM 9.3% 11.8%

comScore, Inc. 29.04 21.74 45.21 1,660 (114) 1,546 4.2 3.1 2.7 41.6 12.8 9.9 NM 19.8 16.0 25.8% 0.6 17.4% 8.4%

Bankrate, Inc. 10.35 6.59 15.36 933 159 1,092 2.6 2.5 2.2 11.8 9.5 8.8 NM 16.5 15.1 17.5% 0.9 14.2% 29.2%

Web.com Group, Inc. 14.85 12.90 24.75 700 664 1,364 2.1 1.9 1.8 10.9 7.7 7.2 9.6 5.5 5.2 18.7% 0.3 3.5% 39.4%

Renren Inc. 1.78 1.51 3.77 606 27 632 13.3 10.3 7.3 NM NM NM NM NM NM 20.0% NM 41.9% NA

XO Group Inc. 18.00 13.64 19.92 458 (101) 357 2.4 2.3 2.1 17.4 11.3 10.1 71.8 45.0 39.4 15.0% 2.6 10.6% 5.8%

DHI Group, Inc. 5.95 4.95 10.48 296 61 357 1.5 1.6 1.6 6.9 6.1 6.7 NM 16.5 18.4 NA NA (3.0%) (13.9%)

Care.com, Inc. 8.99 4.90 12.00 259 (71) 188 1.2 1.2 1.0 42.8 16.2 11.3 NM 60.5 32.0 15.0% 2.1 13.0% 12.7%

TechTarget, Inc. 8.40 5.98 9.24 234 8 241 2.2 2.3 2.0 16.7 13.7 8.8 63.6 32.6 18.9 26.0% 0.7 11.9% (11.2%)

eHealth, Inc. 10.06 6.38 15.14 185 (67) 117 0.6 0.6 0.6 12.2 18.9 13.6 NM 29.6 91.5 10.0% 9.1 (1.3%) (16.1%)


PUBLIC COMPANY VALUATIONS Internet / Digital Media / SaaS: Financial Metrics (Cont’d)

Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. (1) Revenue multiples reflective of Net Revenue.

5


Stock LTM EPS



Internet Commerce

Amazon.com, Inc. $719.07 $474.00 $847.21 $341,678 $641 $342,319 2.7x 2.5x 2.0x 31.2x 22.8x 17.3x NM NM 76.3x NA NA 22.9% 29.0%

Alibaba Group Holding Limited 89.77 59.25 109.87 224,425 (7,448) 217,717 11.6 15.1 11.7 33.3 29.3 23.6 43.6 36.8 29.5 24.5% 1.2 28.7% 47.4%

The Priceline Group Inc. 1,489.18 954.02 1,600.93 73,484 2,967 76,450 7.4 7.1 6.1 19.1 18.0 15.4 38.0 21.4 18.8 NA NA 16.1% 18.9%

Netflix, Inc. 113.38 79.95 133.27 48,657 1,031 49,688 6.1 5.6 4.5 NM 84.7 45.5 NM NM NM NA NA 24.8% 31.7%

eBay Inc. 27.89 21.52 33.19 31,179 986 32,165 3.6 3.6 3.4 10.6 9.3 8.7 17.4 14.8 13.4 8.5% 1.6 4.7% 5.6%

Expedia Inc. 119.16 88.40 133.55 17,878 1,319 20,842 2.5 2.4 2.1 20.5 12.9 10.4 94.8 25.1 18.7 NA NA 14.9% 33.2%

QVC Group 20.58 17.88 27.58 9,611 6,104 15,837 1.5 1.5 1.5 8.9 8.2 7.8 7.9 12.2 10.9 12.6% 0.9 3.5% 14.7%

Copart, Inc. 55.18 32.26 55.22 6,312 485 6,797 5.4 5.1 4.8 15.2 13.9 12.9 25.0 23.7 21.8 13.5% 1.6 6.2% 17.8%

GrubHub Inc. 36.34 17.77 44.58 3,110 (297) 2,814 6.2 5.7 4.5 26.8 19.4 15.2 66.1 39.9 31.6 24.0% 1.3 25.4% 44.1%

Cimpress N.V. 85.97 67.89 104.18 2,721 635 3,421 1.8 1.8 1.6 16.1 12.6 11.7 NM 28.5 27.9 20.5% 1.4 11.4% 18.1%

Stamps.com Inc. 103.90 68.82 123.75 1,772 81 1,852 5.6 5.2 4.6 15.4 11.3 9.9 40.4 12.5 12.0 20.3% 0.6 14.6% 79.1%

Shutterstock, Inc. 49.21 25.44 65.16 1,729 (290) 1,438 3.0 2.9 2.5 22.1 14.7 12.1 59.3 31.4 28.9 27.0% 1.1 15.8% 14.7%

Etsy, Inc. 11.67 6.04 16.05 1,349 (258) 1,090 3.2 3.0 2.4 29.5 19.3 14.6 NM NM 46.7 10.0% 4.7 22.8% 33.3%

Quotient Technology Inc. 11.90 5.00 14.36 1,047 (139) 909 3.4 3.4 2.9 NM 32.8 21.0 NM NM 59.0 43.6% 1.4 14.8% 17.7%

1-800-Flowers.com Inc. 10.00 6.11 10.45 649 229 878 0.7 0.7 0.7 11.5 10.2 8.8 26.2 23.3 19.0 19.0% 1.0 4.9% 6.3%

Angie's List, Inc. 8.56 6.32 11.25 506 20 527 1.6 1.6 1.6 27.3 21.2 14.6 NM NM NM 8.0% NM 0.1% (8.3%)

Blue Nile Inc. 40.48 22.33 41.39 474 (40) 433 0.9 0.9 0.9 26.4 17.6 16.9 49.9 47.6 43.5 5.0% 8.7 2.4% (4.4%)

Overstock.com Inc. 17.20 10.03 17.93 437 (75) 360 0.2 0.2 0.2 NM 10.2 20.4 46.3 NM NM NA NA 8.0% 12.9%

Travelzoo Inc. 10.30 6.63 13.27 142 (25) 117 0.9 0.9 0.9 9.6 9.4 10.5 39.6 23.3 25.0 5.0% 5.0 (0.5%) (9.7%)

CafePress Inc. 2.86 2.80 4.55 48 (35) 12 0.1 0.1 0.1 NM 21.4 10.3 NM NM NM NA NA 6.3% (1.6%)


Media Conglomerates / Selected Entertainment

Comcast Corporation $67.26 $52.34 $68.36 $160,942 $57,621 $222,231 2.8x 2.8x 2.7x 8.6x 8.4x 8.0x 19.7x 19.3x 17.8x NA NA 3.9% 14.2%

The Walt Disney Company 97.92 86.25 120.65 157,367 15,560 176,985 3.2 3.2 3.0 10.5 10.3 9.8 17.1 17.5 15.9 8.8% 1.8 5.6% (2.7%)

Twenty-First Century Fox, Inc. 27.52 22.66 31.25 51,059 14,807 67,667 2.4 2.4 2.3 10.1 9.7 9.2 18.7 14.3 13.9 NA NA 5.3% 7.1%

Sony Corporation 29.42 20.30 32.24 37,129 (3,539) 39,799 0.5 0.6 0.6 6.5 7.4 5.2 66.4 NM 20.9 18.0% 1.2 2.1% 5.5%

CBS Corporation 58.86 41.36 59.72 25,293 8,778 34,071 2.4 2.3 2.3 10.2 9.9 9.8 16.3 14.3 13.3 16.6% 0.8 1.1% 4.3%

Discovery Communications, Inc. 28.35 23.66 31.39 16,885 7,609 24,741 3.8 3.8 3.6 10.2 10.1 9.7 16.0 13.6 12.2 13.9% 0.9 5.2% (0.1%)

Viacom, Inc. 38.86 30.11 53.35 15,420 11,420 27,104 2.2 2.2 2.1 9.2 9.7 8.3 10.8 11.5 9.6 0.9% 11.1 3.0% (14.8%)

Scripps Networks Interactive, Inc. 73.70 50.81 73.71 9,515 3,253 13,075 3.9 3.9 3.7 8.8 9.5 9.2 12.2 14.1 13.9 10.5% 1.3 4.3% 3.5%

Lions Gate Entertainment Corp. 23.53 16.21 38.28 3,490 1,372 4,955 1.9 1.9 1.8 NM 29.2 17.0 11.2 NM 50.5 22.5% 2.2 5.4% 34.1%

Tribune Media Company 36.02 26.10 40.72 3,149 2,772 5,926 2.8 2.7 2.7 14.3 10.4 11.8 NM 44.3 25.8 3.0% 8.6 1.4% 6.0%


Publishers

Thomson Reuters Corporation $41.48 $35.02 $42.45 $30,477 $8,520 $39,479 3.3x 3.5x 3.5x 15.4x 12.7x 11.9x 24.6x 20.2x 17.7x 8.0% 2.2 1.6% (0.1%)

Pearson plc 9.24 8.02 12.32 7,534 2,162 9,699 1.7 1.7 1.6 11.9 10.4 8.7 NM 13.5 11.5 1.2% 9.8 6.2% (21.0%)

News Corporation 12.17 10.21 14.68 7,077 (1,122) 6,171 0.7 0.8 0.8 9.4 6.9 6.7 NM 41.1 29.2 8.2% 3.6 (2.2%) (2.4%)

UBM plc 8.59 6.60 9.34 3,381 49 3,469 3.3 3.4 3.1 12.2 11.7 10.4 28.6 18.6 14.9 7.9% 1.9 8.9% (8.7%)

Lagardere SCA 24.77 19.67 30.36 3,174 1,931 5,247 0.6 0.7 0.7 8.6 7.7 7.6 26.5 12.6 11.7 6.0% 2.0 (2.5%) 3.2%

Graham Holdings Company 474.60 425.14 563.64 2,664 (504) 2,170 0.9 NA NA 6.1 NA NA 14.7 NA NA NA NA NA (3.1%)

The New York Times Company 12.45 10.60 14.27 2,006 (311) 1,691 1.1 1.1 1.1 7.3 7.3 7.7 46.3 24.9 20.6 NA NA 0.2% (1.0%)

Time Inc. 13.70 12.23 17.66 1,357 937 2,294 0.8 0.7 0.8 7.3 5.7 5.6 NM 11.4 10.2 8.5% 1.2 (1.9%) (3.0%)

The E. W. Scripps Company 15.83 12.16 22.21 1,312 308 1,621 1.9 1.7 1.8 18.6 8.0 11.6 NM 20.7 39.6 3.0% 13.2 (1.4%) 22.9%

Gannett Co., Inc. 9.71 7.30 17.91 1,132 268 1,400 0.5 0.5 0.4 4.2 4.4 4.1 29.1 9.1 9.0 NM NM 5.6% 10.1%

Mean 1.5x 1.6x 1.5x 10.1x 8.3x 8.3x 28.3x 19.1x 18.3x 6.1% 4.8 1.6% (0.3%) Median 1.0 1.1 NM 9.0 7.7 7.7 27.6 18.6 14.9 7.9% 2.2 0.2% (1.7%)


Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM.

6


Stock LTM EPS



Diversified Marketing

WPP plc $20.71 $14.99 $23.35 $26,070 $5,649 $32,328 1.9x 1.9x 1.7x 12.7x 11.1x 10.0x 24.2x 15.0x 13.2x 9.5% 1.4 10.2% (5.4%)

Experian plc 17.22 13.25 20.00 16,239 3,161 19,414 4.2 NA 4.0 13.9 NA 11.3 19.5 NA 17.6 11.0% 1.6 NA 2.6%

Nielsen Holdings plc 43.07 42.90 55.94 15,395 7,523 23,107 3.7 3.7 3.5 14.8 12.0 11.4 26.5 15.6 14.7 9.0% 1.6 3.3% 2.5%

Equifax Inc. 115.14 91.72 136.97 13,789 2,732 16,562 5.5 5.3 4.8 16.0 14.8 13.4 29.1 21.0 19.3 13.2% 1.5 8.9% 20.5%

Alliance Data Systems Corporation 210.80 176.63 290.30 12,176 17,839 30,014 4.3 4.1 3.8 18.0 14.7 13.5 22.3 12.5 11.3 14.5% 0.8 9.7% 18.7%

The Interpublic Group of Companies, Inc. 22.16 19.79 24.82 8,798 846 9,925 1.3 1.3 1.2 9.3 9.0 8.5 16.6 16.8 15.3 11.1% 1.4 3.7% 3.0%

Havas SA 7.56 6.94 8.65 3,174 99 3,287 1.3 1.4 1.3 8.3 8.2 7.8 16.2 15.2 14.2 7.6% 1.9 3.8% 4.8%

Acxiom Corporation 26.98 17.32 27.38 2,090 (1) 2,089 2.4 2.4 2.3 24.1 13.5 12.3 NM 41.0 38.9 15.0% 2.6 3.8% 4.8%

MDC Partners Inc. 5.05 2.75 23.90 270 930 1,327 1.0 1.0 0.9 9.5 7.6 6.5 NM NM 7.3 6.0% 1.2 5.8% 6.3%

Harte-Hanks Inc. 1.40 0.85 3.90 86 54 141 0.3 0.3 0.3 11.0 3.9 3.1 NM 10.0 6.7 NA NA 0.5% (10.4%)


Gaming

Tencent Holdings Limited $24.83 $17.03 $28.46 $232,664 ($2,257) $230,836 12.3x 10.6x 8.0x 28.6x 24.5x 19.1x 45.3x 35.1x 26.7x 30.9% 0.9 31.7% 42.1%

NetEase, Inc. 217.91 129.60 272.58 28,650 (4,177) 24,510 4.8 4.5 3.6 14.3 13.0 10.7 19.1 16.5 14.0 24.0% 0.6 26.8% 31.6%

Activision Blizzard, Inc. 37.77 26.49 45.55 28,071 2,333 30,404 5.1 4.6 4.4 16.1 12.5 11.9 32.8 18.3 17.1 18.9% 0.9 6.3% 58.4%

Electronic Arts Inc. 76.38 53.01 86.07 23,048 (2,276) 20,772 4.6 4.4 4.1 17.4 13.5 12.1 19.5 22.4 19.2 12.4% 1.6 7.0% 10.2%

Naver Corporation 636.26 463.98 770.17 18,539 (2,629) 16,383 4.7 4.8 4.0 15.4 15.0 11.4 NA 29.6 22.5 36.9% 0.6 18.1% 29.9%

Gamesa Corporación Tecnológica S.A. 19.43 14.28 23.71 5,379 (281) 5,098 1.1 1.1 0.9 8.9 7.7 6.4 18.6 17.3 16.7 21.6% 0.8 21.2% 31.0%

DeNA Co., Ltd. 31.85 14.14 36.51 4,620 (782) 3,910 2.7 2.9 2.6 11.0 10.9 8.3 29.7 27.0 20.5 25.3% 0.8 8.7% 21.7%

NCsoft Corporation 210.67 172.71 261.84 4,475 (666) 3,812 4.8 4.7 3.8 13.6 13.3 9.9 22.9 20.3 15.8 NA NA 23.7% 7.2%

Ubisoft Entertainment SA 32.68 19.94 41.68 3,573 (42) 3,530 2.1 2.2 1.5 13.7 4.5 4.0 32.5 29.2 20.3 34.3% 0.6 51.2% 36.7%

Zynga, Inc. 2.85 1.78 3.04 2,542 (871) 1,671 2.3 2.2 2.0 NM 28.8 15.9 NM NM 44.7 19.0% 2.4 13.3% (6.8%)

GungHo Online Entertainment, Inc. 2.74 2.09 3.75 1,950 (256) 1,709 1.4 1.6 1.9 3.3 3.5 4.9 8.8 8.4 9.4 NA NA (18.7%) (16.7%)

Changyou.com Limited 26.35 15.21 30.28 1,339 (848) 520 0.9 1.0 0.9 3.3 3.5 3.0 9.8 9.8 8.5 NM NM 15.2% (28.1%)

Gree, Inc. 5.32 4.23 6.28 1,247 (806) 440 0.7 0.7 0.8 3.5 3.7 4.7 7.5 11.3 15.5 NA NA (10.9%) (8.7%)

Glu Mobile, Inc. 2.10 1.73 4.00 280 (148) 133 0.6 0.7 0.6 NM NM NM NM NM NM 15.0% NM 6.5% (18.8%)


Social Media & New Platform

Facebook, Inc. $115.08 $89.37 $135.60 $331,680 ($26,140) $305,540 12.4x 11.2x 8.3x 23.8x 17.3x 13.2x 44.4x 27.9x 22.1x 30.9% 0.7 34.4% 55.8%

Twitter, Inc. 19.14 39.40 26.70 13,578 771 14,349 5.7 5.6 5.1 NM 20.0 17.0 NM 37.0 31.4 NA NA 10.2% 8.2%

LINE Corporation 37.29 0.00 48.28 8,101 (1,284) 6,820 5.1 5.1 4.1 35.7 24.2 14.9 82.7 NM 33.9 56.4% 0.6 24.6% 54.6%

Yelp Inc. 35.72 14.53 43.36 2,803 (432) 2,370 3.5 3.3 2.6 NM 21.0 14.5 NM 49.6 33.4 33.0% 1.0 25.6% 29.7%

Pandora Media, Inc. 10.66 7.10 16.23 2,487 80 2,567 1.9 1.9 1.5 NM NM NM NM NM NM 46.0% NM 22.7% 12.9%




7


Stock LTM EPS



SaaS

salesforce.com, inc. $72.76 $52.60 $84.48 $49,411 $1,341 $50,752 6.8x 6.1x 5.0x 90.7x 36.1x 27.6x NM 76.8x 57.4x 28.6% 2.0 21.1% 24.6%

Workday, Inc. 80.52 47.32 93.35 16,104 (1,547) 14,557 10.8 9.4 7.1 NM NM 63.6 NM NM NM 37.0% NM 30.9% 33.6%ServiceNow, Inc. 83.27 46.00 91.28 13,824 (308) 13,516 10.5 9.8 7.5 NM 51.2 34.7 NM NM 79.5 46.9% 1.7 30.1% 37.0%The Ultimate Software Group, Inc. 190.92 148.26 224.07 5,537 (100) 5,436 7.3 7.0 5.6 84.2 29.3 23.1 NM 58.9 47.7 26.8% 1.8 24.0% 26.8%Nutanix, Inc. 28.20 23.11 46.78 3,871 (112) 3,759 8.4 NA 4.4 NM NA NM NM NM NM NA NA NA 88.7%

Shopify Inc. 37.90 18.48 45.20 3,372 (400) 2,971 9.0 7.8 5.3 NM NM NM NM NM NM 25.0% NM 47.5% 88.6%

RealPage, Inc. 28.30 16.06 29.41 2,277 (133) 2,145 4.0 3.8 3.3 28.6 17.5 14.5 NM 38.2 31.4 20.0% 1.6 14.6% 21.7%

Zendesk, Inc. 23.46 11.06 31.88 2,237 (211) 2,025 7.1 6.5 4.9 NM NM NM NM NM NM 22.5% NM 32.5% 45.0%

Cornerstone OnDemand, Inc. 36.13 22.25 47.75 2,030 (1) 2,029 4.9 4.8 4.1 NM 60.0 38.5 NM NM NM 20.0% NM 15.7% 23.5%

HubSpot, Inc. 56.00 27.00 60.11 1,994 (113) 1,881 7.6 7.0 5.4 NM NM NM NM NM NM 25.0% NM 30.3% 48.0%

Box, Inc. 14.80 8.82 16.59 1,957 (115) 1,842 5.3 4.7 3.7 NM NM NM NM NM NM NM NM 26.2% 30.3%

RingCentral, Inc. 22.75 13.88 25.67 1,674 (136) 1,538 4.3 4.1 3.3 NM 71.3 48.5 NM NM NM 28.8% NM 24.4% 26.1%Coupa Software Incorporated 27.72 0.00 34.75 1,334 (80) 1,254 11.5 10.1 7.9 NM NM NM NM NM NM NA NA 27.9% 66.4%

Cvent, Inc. 30.69 17.85 37.25 1,305 (179) 1,126 5.1 4.9 4.2 NM 27.5 21.8 NM NM 64.8 30.0% 2.2 18.1% 17.1%MINDBODY, Inc. 20.30 9.20 21.05 822 (71) 752 5.8 5.4 4.2 NM NM NM NM NM NM 15.0% NM 28.9% 35.2%

AppFolio, Inc. 21.55 11.07 22.32 726 (18) 709 7.2 6.8 5.2 NM NM NM NM NM NM 30.0% NM 30.1% 38.7%

Apptio, Inc. 18.14 17.52 24.60 695 (122) 573 3.8 3.6 3.0 NM NM NM NM NM NM 12.5% NM 19.4% 26.0%

LivePerson Inc. 8.60 3.74 8.85 499 (51) 447 2.0 2.0 1.9 26.6 23.6 19.7 NM NM 95.2 20.0% 4.8 3.4% (10.3%)Everbridge, Inc. 15.22 0.00 18.73 410 (62) 347 4.8 4.6 3.6 NM NM NM NM NM NM 20.0% NM 25.8% 31.2%

Xactly Corporation 12.95 4.68 16.10 398 (31) 368 4.2 3.8 3.1 NM NM NM NM NM NM 25.0% NM 23.3% 30.6%

Bazaarvoice, Inc. 4.80 2.82 6.14 398 (50) 348 1.7 1.7 1.7 NM 27.5 18.3 NM NM NM NA NA 3.9% 2.5%

ChannelAdvisor Corporation 13.90 10.28 15.91 358 (63) 295 2.7 2.6 2.3 NM 57.4 43.2 NM NM NM NA NA 14.3% 14.8%

Jive Software, Inc. 4.05 2.84 5.10 316 (100) 217 1.1 1.1 1.1 NM 12.4 11.1 NM 62.0 36.2 NA NA (0.4%) 1.6%Brightcove Inc. 8.20 4.70 13.80 277 (34) 243 1.7 1.6 1.5 NM 32.8 22.2 NM NM 64.7 15.0% 4.3 9.8% 13.5%

Marin Software Incorporated 2.40 1.88 4.15 93 (33) 59 0.6 0.6 0.6 NM NM 22.3 NM NM NM NA NA (3.5%) (8.8%)

Mean 5.5x 5.0x 4.0x 57.5x 37.2x 29.2x NM 59.0x 59.6x 24.9% 2.6 20.8% 30.1% Median 5.1 4.7 4.1 56.4 31.1 22.7 NM 60.4 61.1 25.0% 2.0 23.7% 26.8%



8

Valuation Correlation to Growth and Cash Flow

Notes: Source: Capital IQ and Wall Street Estimates. When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.76. Estimates for NTNX are not available.

CY 2017E Revenue Growth % + CY 2017E FCF Margin %

Ente

rpri

se V

alu

e /

CY

20

17

E R

eve

nu

e

PUBLIC SAAS COMPANIES

WDAY NOW

ULTI

SHOPZEN

CSOD

RP

HUBS

BOX

RNG

CVTMB

APPF

LPSN

BV

XTLY

BCOV

JIVE

ECOM

MRIN

COUP

CRM

EVGBAPTI

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

(10%) 0% 10% 20% 30% 40% 50% 60%

R = 0.81Company Identifier

APPF

APTI

BCOV

BOX

BV

COUP

CRM

CSOD

CVT

ECOM

EVBG

HUBS

JIVE

LPSN

MB

MRIN

NOW

RNG

RP

SHOP

ULTI

WDAY

XTLY

ZEN

Selected Public Saas Companies

9

Valuation Correlation to S&M Effectiveness

Notes: Source: Capital IQ and Wall Street Estimates. Estimates for NTNX are not available.

Annual Change in Revenue (CY16E) / LTM Sales & Marketing Expense

Ente

rpri

se V

alu

e /

CY

20

16

E R

eve

nu

e

PUBLIC SAAS COMPANIES

CRM

WDAY

NOW

ULTISHOP

ZEN

CSODRP

HUBS

BOX

RNG

CVTMB

APPF

LPSN

BV

XTLY

BCOV

JIVE

ECOM

MRIN

COUP

APTIEVBG

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

(0.5x) 0.0x 0.5x 1.0x 1.5x 2.0x

R = 0.71Company Identifier

APPF

APTI

BCOV

BOX

BV

COUP

CRM

CSOD

CVT

ECOM

EVBG

HUBS

JIVE

LPSN

MB

MRIN

NOW

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RP

SHOP

ULTI

WDAY

XTLY

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Selected Public Saas Companies

10

Notes: Multiples <0x or >50x considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) Uses gross profit as proxy for net revenue. (2) NTM multiples based on Capital IQ consensus estimates. (3) LTM multiple based on period ending 6/30/16. (4) LTM multiple based on Wall Street Estimates. (5) LTM multiple based on period ending 9/30/16. (6) LTM multiple based on period ending 7/31/16.

RECENT ACQUISITIONS Internet / Digital Media / SaaS

($MM)

Announced Date Acquirer Target Enterprise Value EV / LTM Sales EV / LTM EBITDA EV / NTM Sales EV / NTM EBITDA

11/10/2016 $446 3.1x NM 2.6x 48.2x

10/22/2016 $106,021 3.8x 13.7x 3.5x 12.4x

10/21/2016 $465 1.9x NM 1.7x 8.8x

10/21/2016 $410 NA NA NA NA

10/20/2016 $55 NA NA NA NA

10/20/2016 $500 2.6x NA NA NA

10/13/2016 $300 NA NA NA NA

10/4/2016 $60 30.0x NA NA NA

10/4/2016 $250 NA NA NA NA

10/3/2016 $680 13.1x NA NA NA

9/26/2016 $153 NA NA NA NA

9/26/2016 $1,400 NA NA NA NA

9/19/2016 $1,342 3.7x NM 3.6x 19.3x(2) (6)

(4) (5)

(4) (5)

(2) (3)

(2) (3)

(1) (2)

11

($MM)


9/8/2016 $515 6.0x NM 4.6x NM

8/31/2016 $1,400 3.3x NM 3.1x 38.4x

8/26/2016 $4,300 2.1x 6.4x 2.1x 6.1x

8/25/2016 $225 45.9x NM NA NA

8/22/2016 $900 2.8x NA NA NA

8/22/2016 $59 NA NA NA NA

8/18/2016 $120 NA NA NA NA

8/16/2016 $135 NA NA NA NA

8/9/2016 $355 0.5x 3.8x 0.6x 4.2x

8/8/2016 $1,500 3.4x NA NA NA

8/8/2016 $3,300 NA NA NA NA

8/3/2016 $85 0.5x NM 0.4x 14.1x

8/1/2016 $582 NA NA NA NA

(3)

(1)

(1) (2)

(1)(2)

(1) (2) (5)

(4)

(1)(2)

(1) (2)

Notes: Multiples <0x or >50x considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) LTM multiple based on period ending 6/30/16. (2) NTM multiples based on Capital IQ consensus estimates. (3) LTM multiple based on period ending 3/31/16. (4) Enterprise value and LTM multiple based on Wall Street estimates. (5) LTM and NTM sales multiples are reflective of gross revenue.


12

Notes: Multiples <0x or >50x considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) LTM multiple based on period ending 6/30/16. (2) NTM multiples based on Capital IQ consensus estimates. (3) LTM multiple based on period ending 3/31/16. (4) LTM multiple based on CY15 ending annualized recurring net revenue. (5) Reflects the acquisition of remaining 95.4% stake. (6) Reflects the acquisition of remaining 83.0% stake.


($MM)


7/28/2016 $8,694 10.3x NM 8.5x NM

7/27/2016 $1,010 1.9x 12.8x 1.9x 8.8x

7/25/2016 $4,826 1.3x 6.2x 1.4x 5.7x

7/21/2016 $215 NA NA NA NA

7/21/2016 $130 8.7x NA NA NA

7/21/2016 $3,800 NA NA NA NA

7/13/2016 $60 NA NA NA NA

7/5/2016 $45 NA NA NA NA

7/1/2016 $1,220 NA NA NA NA

6/30/2016 $4,295 2.6x 11.0x 2.5x 8.9x

6/28/2016 $125 NA NA NA NA

6/28/2016 $156 15.6x NM NM NM

6/28/2016 $151 NA NA NA NA(6)

(1) (2)

(4)

(2) (3) (5)

(2) (3)

(1) (2)

13


Notes: Multiples <0x or >50x considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) LTM multiple based on period ending 3/31/16. (2) NTM multiples based on Capital IQ consensus estimates. (3) LTM multiple based on Wall Street estimates as of 6/21/16. (4) Reflects the acquisition of remaining 95.1% stake.

($MM)


6/27/2016 $55 NA NA NA NA

6/27/2016 $157 0.4x NM 0.5x 8.8x

6/21/2016 $900 6.9x NA NA NA

6/20/2016 $63 NA NA NA NA

6/13/2016 $24,610 7.7x NM 6.4x 23.3x

6/12/2016 $4,723 7.9x NM NA NA

6/10/2016 $260 5.7x 19.3x NA NA

6/8/2016 $148 NA NA NA NA

6/2/2016 $163 NA NA NA NA

6/2/2016 $2,614 4.1x NM 3.5x 30.5x

6/1/2016 $2,905 11.4x NM 9.1x NM

5/31/2016 $1,790 7.9x NM 6.2x NM

5/30/2016 $347 3.2x 36.9x 3.1x 14.6x(2)

(2)

(1)

(4)

(3)

(2)

(2)

(2)

(1)

(1) (2)

14


Notes: Multiples <0x or >50x considered NM. Disclosed transactions with Aggregate Value <$50MM not included. (1) NTM multiples based on Capital IQ consensus estimates. (2) LTM multiple based on period ending 12/31/15.

($MM)


5/18/2016 $915 3.9x NM 3.4x 42.4x

5/13/2016 $117 0.8x 17.0x NA NA

5/5/2016 $250 NA NA NA NA

5/5/2016 $71 0.5x 4.7x 0.6x 4.7x

5/3/2016 $115 NA NA NA NA

5/2/2016 $61 NA NA NA NA

5/2/2016 $566 3.8x NM 3.6x NM

4/29/2016 $789 1.6x 6.8x 1.5x 5.2x

4/28/2016 $631 6.8x NM 5.8x NM

4/28/2016 $4,069 4.4x 39.5x 4.4x 37.2x

4/22/2016 $90 0.5x NA NA NA

4/19/2016 $360 NA NA NA NA

4/18/2016 $1,473 7.8x NM 6.1x NM(1) (2)

(1)

(1)

(1)

(1)

(2)

Marketing Applications Business

(1)

(1)

(2)

15

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

Q3 2001 Q3 2002 Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount

VENTURE CAPITAL INDUSTRY TMT: Transactions Since Q3 2001

Notes: (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.

(1)

16

GCA OVERVIEW Selected Recent Digital Media and Software Transactions

Divestiture of Sale of Controlling Preferred Stock Acquired by Acquired by Acquired by Acquired by Acquired by Preferred Stock

Interest to

to

We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor

November 2016 October 2016 October 2016 October 2016 September 2016 September 2016 August 2016 August 2016 February 2016

Equity Investment Acquisition of Acquired by Acquired by Acquired by Acquired by Preferred Stock Preferred Stock Acquired by

Undisclosed Consortium Led by

Financial Advisor We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor Financial Advisor We Advised the Buyer

February 2016 December 2015 August 2015 July 2015 July 2015 June 2015 June 2015 May 2015 April 2015

Sale of

Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by

to

A subsidiary of

We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

April 2015 March 2015 February 2015 December 2014 May 2012 October 2014 May 2012 September 2014 August 2014

Acquired by Acquired by Preferred Stock Acquired by Acquisition of Acquired by Acquired by Acquired by Sale of Entertainment

Store Assets to

We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Buyer We Advised the Seller We Advised the Seller We Advised the Seller We Advised the Seller

August 2014 March 2012 May 2014 April 2014 April 2014 March 2014 March 2014 November 2013 September 2013

Acquired by Acquired by Preferred Stock Acquired by Acquired by Acquired by Preferred Stock Acquired by Acquired by

Fairness Opinion for

We Advised the Seller We Advised the Seller Financial Advisor We Advised the Seller We Advised the Seller We Advised the Seller Financial Advisor Buddy Media We Advised the Seller

August 2013 August 2013 July 2013 July 2013 January 2013 September 2012 August 2012 August 2012 August 2012

Reality Media HoldingsJapan

17

GCA OVERVIEW Digital Media / Software Team

*Tomohiko Kubota is a Vice President at GCA Corporation. *Saif Malik is a Vice President at GCA Savvian Europe Limited.

San Francisco

One Maritime Plaza, 25th Fl. San Francisco, CA 94111

United States Phone: (415) 318-3600

New York

640 Fifth Avenue, 10th

Fl. New York, NY 10019

United States Phone: (212) 999-7090

Tokyo

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230

Japan Phone: +81 (3) 6212-7100

London

1 Southampton Street London WC2R0LR United Kingdom

Phone: +44 (0) 207 038-3200

Paul DiNardo Steve Fletcher Rich Jasen Seihun Kong John Lambros James Orozco Joshua WepmanAdvisory Director Managing Director Managing Director Managing Director Managing Director Managing Director Managing Director

Phone: (212) 999-7097 Phone: (415) 318-3661 Phone: (415) 318-3653 Phone: (415) 318-3682 Phone: (212) 999-7083 Phone: (415) 318-3667 Phone: (212) 999-7092

Mobile: (415) 509-4501 Mobile: (415) 518-6725 Mobile: (415) 308-4760 Mobile: (415) 823-7300 Mobile: (917) 744-9011 Mobile: (415) 722-0922 Mobile: (917) 306-4168

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Dan Etchevers Ashley Ma Gautam Garg Giuseppe Diprima Tomohiko Kubota* Saif Malik*Director Director Vice President Vice President Vice President Vice President

Phone: (415) 318-3644 Phone: (212) 999-7076 Phone: (415) 318-3692 Phone: (212) 999-7088 Phone: +81 (3) 6212-7129 Phone: +44 (0) 207 038-3216

Mobile: (415) 572-3549 Mobile: (917) 575-0103 Mobile: (650) 504-1722 Mobile: (347) 622-1887 [email protected] Mobile: +44 (0) 778 606-8553

[email protected] [email protected] [email protected] [email protected] [email protected]

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