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Sectorwatch: Advanced Analytics October 2018

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Page 1: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

Sectorwatch: Advanced Analytics October 2018

Page 2: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

2

Advanced Analytics October 2018

Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [15]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only in conjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. All data cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated as confidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Page 3: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

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Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard • Summary metrics on the sector • Commentary on market momentum by

comparing the most recent 12-month performance against the last 3-year averages.

Public Basket Performance

• Summary valuation and operating metrics for a basket of comparable public companies

Valuation Comparison • Graphical, detailed comparison of valuation

multiples for the public basket Recent Deals

• The most recently announced deals in the sector

Page 4: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

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Dashboard

Operating Metrics

Valuation

Revenue Growth Momentum

0.041 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.6%1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability Momentum

-0.6%1 - year E BITDA % compared to E BITDA % average for

last 3 years

Current revenue growth rate exceeds the average of the last 3 years by this

amount, indicating that market momentum is increasing

Current gross profit margin exceeds the average of the last 3 years gross profit

margin by this amount, indicating supplier pricing power

Current E BITDA margin is less than the average of the last 3 years E BITDA

margins, which may signal further consolidation

14.2%

22.4%

69.5%

0% 30% 60% 90%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

6.6x

17.4x

21.5x

26.4x

0x 10x 20x 30x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

Page 5: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

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Public Basket

Company TEV $m LTM Rev

$m

Rev Growth

YoY GP % EBITDA

% TEV / Rev X

TEV / EBITDA

X # FTEs Rev / FTE $k

Alteryx, Inc. 2,564 162 53% 86% -9% 15.8 0.0 555 293

Fair Isaac Corporation 6,659 1,006 10% 70% 22% 6.6 29.6 2,168 464

Tableau Software, Inc. 7,502 993 14% 87% -12% 7.6 0.0 3,489 285

Accenture plc 96,616 39,573 14% 31% 17% 2.4 14.3 459,000 86

Adobe Inc. 119,833 8,572 24% 87% 36% 14.0 38.8 17,973 477

SAP SE 130,521 27,983 3% 70% 26% 4.7 18.2 88,543 316

International Business Machines Corporation 152,324 80,373 3% 46% 21% 1.9 9.1 366,600 219

Alphabet Inc. 673,419 123,898 25% 57% 31% 5.4 17.6 80,110 1,547

Microsoft Corporation 783,778 110,360 14% 65% 41% 7.1 17.4 131,000 842

Average 219,246 43,658 18% 67% 19% 7.3 16.1 127,715 503

Median 119,833 27,983 14% 70% 22% 6.6 17.4 80,110 316

share price as of 24Oct18

Page 6: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

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Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time

0x

2x

4x

6x

8x

Jan-1

4

Apr-

14

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

TEV/Revenue - Median TEV/Revenue - Average

0x

5x

10x

15x

20x

25x

Jan-1

4

Apr-

14

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

TEV/EBITDA - Median TEV/EBITDA - Average

15.5x

4.8x

0x

5x

10x

15x

20x

25x

Jan-1

4

Apr-

14

Jul-

14

Oct-

14

Jan-1

5

Apr-

15

Jul-

15

Oct-

15

Jan-1

6

Apr-

16

Jul-

16

Oct-

16

Jan-1

7

Apr-

17

Jul-

17

Oct-

17

Jan-1

8

Apr-

18

Jul-

18

Oct-

18

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

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Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

(20%) - 20% 40% 60%

Median

Tableau Software, Inc.

Alteryx, Inc.

Accenture plc

International Business

Machines Corporation

Fair Isaac Corporation

SAP SE

Alphabet Inc.

Adobe Inc.

Microsoft Corporation

- 20% 40% 60% 80% 100%

Median

Accenture plc

International Business

Machines Corporation

Alphabet Inc.

Microsoft Corporation

Fair Isaac Corporation

SAP SE

Alteryx, Inc.

Adobe Inc.

Tableau Software, Inc.

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Operational Metrics

LTM Revenue Growth % LTM Revenue per

Full Time Employee x 000’s

- 10% 20% 30% 40% 50% 60%

Median

International Business

Machines Corporation

SAP SE

Fair Isaac Corporation

Accenture plc

Tableau Software, Inc.

Microsoft Corporation

Adobe Inc.

Alphabet Inc.

Alteryx, Inc.

$- $1,000 $2,000

Median

Accenture plc

International Business

Machines Corporation

Tableau Software, Inc.

Alteryx, Inc.

SAP SE

Fair Isaac Corporation

Adobe Inc.

Microsoft Corporation

Alphabet Inc.

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Operational Metrics

Accounts Receivable Turnover Average Days

Sales Outstanding

0x 2x 4x 6x 8x 10x 12x

Median

Microsoft Corporation

Alteryx, Inc.

SAP SE

Tableau Software, Inc.

Accenture plc

Fair Isaac Corporation

Alphabet Inc.

Adobe Inc.

International Business

Machines Corporation

0 20 40 60 80 100

Median

International

Business Machines…

Adobe Inc.

Alphabet Inc.

Fair Isaac

Corporation

Accenture plc

Tableau Software,

Inc.

SAP SE

Alteryx, Inc.

Microsoft

Corporation

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Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 2x 4x 6x 8x 10x 12x 14x 16x

Median

International

Business Machines…

Accenture plc

SAP SE

Alphabet Inc.

Fair Isaac

Corporation

Microsoft

Corporation

Tableau Software,

Inc.

Adobe Inc.

Alteryx, Inc.

0x 10x 20x 30x 40x

Median

International

Business Machines

Corporation

Accenture plc

Microsoft

Corporation

Alphabet Inc.

SAP SE

Fair Isaac

Corporation

Adobe Inc.

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Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 10x 20x 30x 40x 50x

Median

International

Business Machines

Corporation

Accenture plc

SAP SE

Alphabet Inc.

Microsoft

Corporation

Fair Isaac

Corporation

Adobe Inc.

0x 10x 20x 30x 40x 50x 60x

Median

International

Business Machines

Corporation

Accenture plc

SAP SE

Alphabet Inc.

Fair Isaac

Corporation

Microsoft

Corporation

Adobe Inc.

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Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

9x 14x 17x 18x 18x 30x 39x

45.5%

31.4%

65.2%

57.4%

69.6%

69.5%

87.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0x

5x

10x

15x

20x

25x

30x

35x

40x

45x

LTM

GP%

EBIT

DA(x

)

EBITDA(x) LTM GP%

9x 14x 17x 18x 18x 30x 39x

2.6%

13.6%

14.3%

24.8%

3.0%

10.0%

24.2%

0%

5%

10%

15%

20%

25%

30%

0x

5x

10x

15x

20x

25x

30x

35x

40x

45x

LTM

RG

R%

EBIT

DA(x

)

EBITDA(x) LTM RGR%

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Recent Transactions Date Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

8Oct18 Qlouder B.V. Cloud Technology Solutions Ltd - - - -

21Aug18 Predikto, Inc. United Technologies Corporation - - - -

30Mar18 PeopleDoc SAS The Ultimate Software Group, Inc. - - - -

30Jun18 Sift Security, Inc. Netskope, Inc. - - - -

21Jun18 Shape Analytics Reflektive, Inc. - - - -

23May18 Evolusys SA Bechtle AG - 5.03 - -

15May18 Cyient Insights Private Limited Cyient Limited 0.52 1.96 0.5x -

14Mar18 Avarea Oy Digia Oyj - 4.44 - -

10Jan18 CBIG Consulting, LLC Trianz Holdings Pvt. Limited - - - -

14Dec17 Innowera LLC Magnitude Software, Inc. - - - -

25Oct17 Zettafox Mazars Group - - - -

7Sep17 Logmatic.io Datadog, Inc. - - - -

21Aug17 Affecto Oyj CGI Nordic Investments Limited 132.94 140.98 0.8x 16.3x

8Jun17 Elite Analytics LLC Aviana Global Technologies, Inc. - - - -

1Jun17 4i, Inc. Fractal Analytics Inc. - - - -

1Feb17 YourMembership.com, Inc. Insight Venture Partners LLC; MBP Holdings Limited - - - -

24Jan17 BlueFlare, LLC Robots and Pencils Corp. - - - -

1Dec16 The Encima Group, Inc. Indegene Lifesystems Pvt Ltd. 16.00 - - -

18Aug16 INTELLEGO S.C Southern Cross Group - - - -

31May16 Syslogic Technical Services Inc. Incedo Inc. - - - -

2Jun16 Recommind, Inc. Open Text Corporation 163.00 - - -

11May16 Vestrics, Inc. The Ultimate Software Group, Inc. 10.10 - - -

19May16 ProbaYes SAS Mediapost Holding SAS - - - -

17May16 Datalytics Technologies LLC Magnitude Software, Inc. - - - -

3Apr16 Mphasis Limited The Blackstone Group L.P. 892.05 916.37 1.1x 6.3x

29Mar16 EagleEye Analytics, Inc. Guidewire Software, Inc. 42.00 - - -

20Mar16 Boire Filler Group Environics Analytics Group Ltd. - - - -

Page 14: Sectorwatch: Advanced Analytics · predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized

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APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only in conjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. All data cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated as confidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Advanced Analytics October 2018

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Public Basket

Alteryx, Inc.

Alteryx, Inc. operates a self-service data analytics software platform that enables organizations to enhance business outcomes and the productivity of their business analysts. Its software platform includes Alteryx Designer for data preparation, blending, and analytics that could be deployable in the cloud and on premise; Alteryx Server, a secure and scalable server-based product for scheduling, sharing, and running analytic processes and applications in a Web-based environment; Alteryx Connect, a collaborative data exploration platform for discovering information assets and sharing recommendations across the enterprise; Alteryx Promote, an analytics model management product for data scientists and analytics teams to build, manage, monitor, and deploy predictive models to production; and Alteryx Analytics Gallery, a cloud-based collaboration offering that allows users to share workflows in a centralized repository. The company also provides technical support, instruction, and customer services. Alteryx, Inc. was founded in 1997 and is headquartered in Irvine, California.

Date Key Development Headline 5/14/18 Alteryx Mulls Acquisitions

0x

10x

20x

30x

Revenue Multiples - Alteryx, Inc.

TEV/Revenue Average

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Public Basket

Fair Isaac Corporation

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions. The company offers analytical solutions, credit scoring, and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations, and public agencies. It operates through three segments: Applications, Scores, and Decision Management Software. The Applications segment offers pre-configured decision management applications designed for various business problem or process, such as marketing, account origination, customer management, fraud, collection, and insurance claims management, as well as associated professional services. The Scores segment provides business-to-business scoring solutions and services, including myFICO solutions for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as associated professional services. The Decision Management Software segment offers analytic and decision management software tools, as well as professional services. Fair Isaac Corporation was founded in 1956 and is headquartered in San Jose, California.

Date Key Development Headline 7/26/18 Fair Isaac Seeks Acquisitions

0x

2x

4x

6x

8x

10x

Revenue Multiples - Fair Isaac Corporation

TEV/Revenue Average

0x

10x

20x

30x

40xEBITDA Multiples - Fair Isaac Corporation

TEV/EBITDA Average

0x

20x

40x

60xP/E Multiples - Fair Isaac Corporation

P/E Average

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Public Basket

Tableau Software, Inc.

Tableau Software, Inc. provides business analytics software products. It offers Tableau Desktop, an analytics product that empowers people to access and analyze data; and Tableau Server, a business intelligence platform with data management and scalability to foster sharing of analytics, as well as to enhance the dissemination of information in an organization and promote decision-making. The company also provides Tableau Online, a hosted software-as-a-service version of Tableau Server; and Tableau Public, a cloud-based platform that allows various users, such as bloggers, journalists, researchers, and government workers to visualize public data on their Websites. In addition, it offers Visual Query Language (VizQL) for databases, which is a computer language for describing pictures of data, including graphs, charts, maps, time series, and tables of visualizations; Live Query Engine that interprets abstract queries generated by VizQL into syntax understandable by various database systems. Tableau Software, Inc. was founded in 2003 and is headquartered in Seattle, Washington.

Date Key Development Headline 6/12/18 Tableau Software, Inc. (NYSE:DATA) acquired Empirical Systems,

Inc.

0x

10x

20x

30xRevenue Multiples - Tableau Software, Inc.

TEV/Revenue Average

200x

300x

400xEBITDA Multiples - Tableau Software, Inc.

TEV/EBITDA Average

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Public Basket

Accenture plc

Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, and enhance business results through industry-specific solutions for communications, media, and high tech industries, as well as for software platforms. The company’s Financial Services segment offers services that address profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies. This segment serves clients in banking, capital markets, and insurance industriesAccenture plc was founded in 1989 and is based in Dublin, Ireland.

Date Key Development Headline 10/21/18 Accenture plc (NYSE:ACN) entered into an agreement to acquire

New Content.

10/20/18 Accenture plc (NYSE:ACN) acquired DAZ Systems, Inc..

10/18/18 Accenture and ServiceNow Announce Collaboration to Drive Innovation in Europe

10/16/18 Accenture plc (NYSE:ACN) acquired TargetST8.

9/18/18 Accenture Teams with SAP to Develop Cloud Solution to Digitally Transform Oil and Gas Upstream Operations

0x

1x

2x

3x

4xRevenue Multiples - Accenture plc

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Accenture plc

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - Accenture plc

P/E Average

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Public Basket

Adobe Systems Incorporated

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products. This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers. The company was founded in 1982 and is headquartered in San Jose, California.

Date Key Development Headline 10/9/18 Adobe Accelerates Experience-Driven Commerce with Major

Advancements to Magento Commerce Cloud

9/20/18 Adobe Systems Incorporated, Marketo, Inc. - M&A Call

9/19/18 Adobe Systems Incorporated (NasdaqGS:ADBE) entered into a definitive agreement to acquire Marketo, Inc. from Vista Equity Partners LLC for $4.8 billion.

6/18/18 Adobe Systems Incorporated (NasdaqGS:ADBE) completed the acquisition of Magento, Inc. from Permira Advisers Ltd. and Hillhouse Capital Management, Ltd.

5/21/18 Adobe Systems Incorporated, Magento, Inc. - M&A Call

0x

5x

10x

15x

20xRevenue Multiples - Adobe Inc.

TEV/Revenue Average

0x

20x

40x

60xEBITDA Multiples - Adobe Inc.

TEV/EBITDA Average

0x

50x

100x

150x

200xP/E Multiples - Adobe Inc.

P/E Average

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Public Basket

SAP SE

SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution that enables businesses to manage data from various sources; SAP Cloud Platform, which enables businesses to connect and integrate applications; SAP BW/4HANA, a data warehouse solution; SAP Leonardo, a system that enables customers to make business sense and opportunity of disruptive technologies; and SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

Date Key Development Headline 9/18/18 Accenture Teams with SAP to Develop Cloud Solution to

Digitally Transform Oil and Gas Upstream Operations

8/15/18 Metalloinvest Opens Innovation Centre and Signs Memorandums of Cooperation with SAP and Accenture

6/4/18 SAP SE (DB:SAP) acquired Coresystems AG.

6/4/18 SAP SE to Team with Accenture, Capgemini and Deloitte to Accelerate Customer Adoption of SAP S/4Hana(R) Cloud in Target Industries

5/8/18 Accenture plc Teams with SAP SE to Help High-Tech Companies Create Digital As-A-Service Business Models Quickly and Easily

0x

2x

4x

6x

8xRevenue Multiples - SAP SE

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - SAP SE

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - SAP SE

P/E Average

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Public Basket

International Business Machines Corporation

International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers Watson, a cognitive computing platform that interacts in natural language, processes big data, and learns from interactions with people and computers. This segment also offers data and analytics solutions, including analytics and data management platforms, cloud data services, enterprise social software, talent management solutions, and solutions tailored by industry; and transaction processing software that runs mission-critical systems in banking, airlines, and retail industries. International Business Machines Corporation was founded in 1911 and is headquartered in Armonk, New York.

Date Key Development Headline 10/23/18 ST Engineering Joins Hands with Cisco Security and IBM to

Safeguard Cyber Landscapes

9/27/18 University of South Carolina Opens Digital Transformation Lab and Announces New Research Partnerships

8/15/18 IBM and Synopsys, Inc. Accelerate 3-Nanometer Process Development with DTCO Innovations

8/9/18 A.P. Moller -Maersk and IBM Announces the Creation of TradeLens Blockchain Shipping Solution

7/17/18 Columbia University and IBM Establish New Center to Accelerate Innovation in Blockchain and Data Transparency

0x

1x

2x

3x

4x

5xRevenue Multiples - International Business

Machines Corporation

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - International Business

Machines Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40xP/E Multiples - International Business

Machines Corporation

P/E Average

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Public Basket

Alphabet Inc.

Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality. This segment also offers digital content, enterprise cloud services, and hardware products, as well as other miscellaneous products and services. The Other Bets segment includes businesses, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X, as well as fiber Internet and Television services. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.

Date Key Development Headline 10/10/18 accesso Technology Group plc Partners with Google to Connect

Accesso Clients with Google Users

10/1/18 Alphabet Inc. (NasdaqGS:GOOG.L) acquired Terraform Labs Incorporated.

8/5/18 Alphabet Inc. (NasdaqGS:GOOGL) acquired GraphicsFuzz Ltd.

6/19/18 Vivint Smart Home Works with Google to Give Voice Control to All New Vivint Customers

5/22/18 Blue Prism Collaborates with Google Cloud to Drive Adoption of AI and Intelligent Automation in the Enterprise

0x

2x

4x

6x

8x

10x

Revenue Multiples - Alphabet Inc.

TEV/Revenue Average

0x

10x

20x

30x

EBITDA Multiples - Alphabet Inc.

TEV/EBITDA Average

0x

15x

30x

45x

60x

P/E Multiples - Alphabet Inc.

P/E Average

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Public Basket

Microsoft Corporation

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive; Dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. The company was founded in 1975 and is headquartered in Redmond, Washington.

Date Key Development Headline 10/15/18 Microsoft Genomics and Eagle Genomics Ltd Announces Their

Partnership

9/27/18 Accela Announces Collaboration with Microsoft

9/25/18 E.ON Develops Highly-Secure Smart and Efficient Connected Home Solution in Collaboration with Microsoft

9/12/18 Microsoft Corporation (NasdaqGS:MSFT) acquired Lobe Artificial Intelligence, Inc.

8/20/18 York Telecom Corporation acquired Microsoft Solutions Practice from Microsoft Corporation (NasdaqGS:MSFT).

8/6/18 LiveTiles Limited and Microsoft Collaborate on Artificial Intelligence Program

0x

3x

6x

9x

Revenue Multiples - Microsoft Corporation

TEV/Revenue Average

0x

10x

20x

30x

EBITDA Multiples - Microsoft Corporation

TEV/EBITDA Average

0x

20x

40x

60x

80x

P/E Multiples - Microsoft Corporation

P/E Average

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Contact Information 7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected]

Tripp Davis, Partner 704.899.5762 [email protected]

Andy Johnston, Partner 704.899.5961 [email protected]

Ben Lunka, Managing Director 704.496.2995 [email protected]

Jeff Stoecklein, Managing Director 312.796.9330 [email protected]

Kristina Sergueeva, Director 704.899.5149 [email protected]

Neil Churman, Director 281.742.9340 [email protected]

John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected]

Nicholas Prendergast, Financial Analyst 704.973.3995 [email protected]

Ariail Siggins, Marketing Director 704.981.2908 [email protected]

Sydney Larese, Associate 704.973.3998 [email protected]

Marty Johnson, Associate 704.973.3999 [email protected]

Rory Julyan, Associate 704.981.2520 [email protected]

Garth Martin, Associate 704.973.3997 [email protected]

Chevonese Dacres, Analyst 704.981.2342 [email protected]