technology, media, & telecom · 2016 deal flow. vista equity remained the most active software...

Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 07078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

www.harriswilliams.de

TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2017

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 4Q 2017

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 4Q 2017

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS

SOFTWARE PUBLIC COMPARABLES

TECHNOLOGY IPOS

DEBT MARKETS

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Tyler DewingManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (“HW&CO.”) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Data Center andManaged Services

Infrastructure and Security Software

IT and Tech-EnabledServices

INTERNET & DIGITAL MEDIA

Consumer Internet

Digital Media and Content

eCommerce and Retail

Mobile

Online Marketing

HW&CO. TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

25+ year history with over 130closed transactions in the last 24months

Approximately 260 professionalsacross eight offices in the U.S. andEurope

Strategic relationships in India andChina

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education Technology

Engineered SolutionsSoftware

Fintech

Healthcare IT

Professional Services

Supply Chain, Transportation,and Logistics Technology

Human CapitalManagement

Public Sectorand Non-Profit

has been acquired by has been acquired byhas received an investment from

has been acquired by

Undisclosed

Strategic Buyer

has been acquired byhas acquiredhas been acquired by

The IAM Assets of

a wholly-owned affiliate of

have been acquired by

a portfolio company of

has received a strategic investment from

has been acquired by has merged withhas acquired

mailto:[email protected]





mailto:*[email protected]

PAGE |



CASE STUDY: PRECISION NUTRITION

ABOUT PRECISION NUTRITION

PN is a market leader in nutrition training, certifications, andsoftware for health and wellness professionals throughout NorthAmerica, Australia, and parts of Europe.

Through a unique combination of three distinct, but relatedbusiness lines of online nutrition coaching, nutrition coachingcertification, and PN’s ProCoach nutrition coaching SaaSplatform, PN enables health and wellness professionals to providelife-changing nutrition coaching services to clients.

Following the strategic investment, BVIP will support PN’s organicgrowth plan which includes further penetrating the fitnessprofessional end market, expanding into adjacent marketsegments, and further investing in the ProCoach online contentand business software platform.

HW&Co.’s TMT Group advised Precision Nutrition (“PN”) on its strategic investment from BVInvestment Partners (“BVIP”).

2

DATE CLOSED:

11/14/2017

RELEVANT SECTORS:

SaaS

Healthcare IT

HW&CO. DEAL CONTACTS

Education Technology

Founded in 2005, PN began as a proprietary, scalable online nutrition coaching program, and later launched the Precision NutritionCertification program, enabling health and wellness professionals to use PN's proven coaching methods with their own clients. In 2016,PN launched ProCoach, a SaaS platform used by professionals for delivering PN’s proprietary curricula to their clients. PN's Certificationand ProCoach product lines have educated and supported more than 45,000 health and nutrition coaches, and PN’s onlineCoaching and ProCoach platforms have served nearly 100,000 clients since the company's founding.

has received a strategic investment from

Mike WilkinsManaging Director

[email protected]

Office: +1 (415) 217 - 3411

Sam HendlerManaging Director

[email protected]

Office: +1 (617) 654 - 2117

Andy LeedVice President

[email protected]

Office: +1 (617) 654 - 2107

Ryan CostaAssociate

[email protected]

Office: +1 (617) 654 - 2120





PAGE |



Verisk’s acquisition of PowerAdvocate

PowerAdvocate provides SaaS-based market, cost intelligence, and supply chain solutions to the energy sector.

The company’s proprietary spend and cost data solutions support enterprise performance by providing insight intocustomers’ cost savings opportunities, providing greater transparency, and ensuring efficient capital deployment.

The acquisition will expand Verisk’s existing offerings in the energy sector by adding PowerAdvocate’s proprietary spend dataand cost models and provide customers with unique insights to increase profitability.

Ent. Value: $280M(1)

Revenue: $36M

EV / Revenue: 7.8x

EV / EBITDA: 25.5x

December 31, 2017

Synopsys’ acquisition of Black Duck

Black Duck provides open source security and license management software to organizations across industries worldwide.

The company’s security and license management software automates the process of securing and managing open sourcesoftware, reduces security vulnerabilities, and eliminates compliance and operational risk while enabling users to manageand enforce open source policies.

The acquisition will broaden Synopsys’ DevOps product offering and customer reach, enhancing the company’s efforts in thesoftware security market.

December 11, 2017

Ent. Value: $547M

Revenue: $75M

EV / Revenue: 7.3x

EV / EBITDA: NA

Emerson’s acquisition of Paradigm

Paradigm provides a SaaS platform to the oil and gas industry for subsurface exploration and production decision making.

The company’s platform offers scalable data management, three dimensional visualization, and seismic processing andimaging software solutions, providing customers with deeper insights into the subsurface.

Paradigm will be combined with Emerson’s Roxar software business to create a best-in-class, end-to-end exploration andproduction software portfolio helping oil and gas operators increase efficiency, reduce costs, and improve ROI.

Ent. Value: $510M

Revenue: NA

December 4, 2017

EV / Revenue: NA

EV / EBITDA: 13.0x

SELECT SOFTWARE M&A TRANSACTIONS – 4Q 2017

3

Thoma Bravo’s acquisition of ABC Financial

ABC Financial provides software, management tools, and payment processing solutions to more than 4,500 health clubsthroughout the United States, Puerto Rico, and Canada.

The company’s products allow gym owners to manage memberships, member / employee schedules, drive memberengagement, and automate payment processing functions.

Thoma Bravo’s capital and executive resources will further support ABC’s geographic expansion and enable the company toscale its billing capabilities and customer support.

Ent. Value: $750M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

January 2, 2018

Mainsail Partners’ $36M growth equity investment in ResMan

Resman provides SaaS-based residential property management software for the multi-family market.

The company’s platform provides intuitive automation tools that improve operational effectiveness and productivity forconventional and affordable housing property management, and integrates with more than 150 property managementsoftware vendors to allow customers end-to-end customization.

Mainsail’s growth capital will be used to accelerate the development of ResMan’s products, enhance its customer serviceorganization, and drive further growth through expansion of its sales and marketing teams.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

October 24, 2017

(1) Acquisition purchase price includes $80m earrnout opportunity.

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME1

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active strategicsoftware acquirers registered 52acquisitions in 2017. Strategicsoftware M&A remained robust in2017 as they continue to view M&A as an attractive avenue for growth.

Google was the most activestrategic acquirer in 2017 with 13completed transactions. The recentacquisitions of Relay Media and TinyGarage Labs highlight Google’scommitment to strengthening itsposition relative to Apple in smartphone and device managementsoftware.

Global strategic software M&A registered 402 acquisitions in 4Q2017, remaining in line with the priorquarter and representing a 15%increase over 4Q 2016.

As a result of the new 2018 U.S. taxlaw, large corporations that aresignificant taxpayers should seetaxes reduced meaningfully, withhigher net income and free cashflow. As such, strategic softwareacquirers could become evenmore active and aggressive buyers.

324371

340309

402454 437 434

406

341 358 351 348 328381 402

1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

5 59 9 8 9 9

5 7 9

28

106 4 9 4

8

14 3

12

1813

10 33

3

61 1

15

914

78

62

94 4

13

104

85

2 2 24 2

2017

2016

2015

2014

2013

PAGE | 5



SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME1

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active softwareinvestors completed 49 newplatform investments in 2017, andactivity remained steadily in line with2016 deal flow.

Vista Equity remained the mostactive software investor in 2017,completing 14 platform investments.Some of Vista’s more notable 2017acquisitions include MarketTrack,XACTLY, and Education AdvisoryBoard.

Globally, private equity registered83 new software platforminvestments in 4Q 2017, in line withthe prior quarter.

Private equity investment across thesoftware sector continues to exhibitstrong momentum as dry powderremains at all-time highs with no signof abating as ever larger funds areraised. Uncertainty surrounding newU.S. tax laws also contributed tobuyer appetite for completingdeals in 2017. 43

32

48 47 4454 56

47 5061

7382

73

9180 83

1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control new platform investments only. Excludes add-on acquisitions.

73 4

15 3 2 2 1 3

9

5 35

43 6 4 4

3

6

5 73

3 7 5 76 2

13

7 48

5 3 51

14

14

67 7 6 7 2

1 1 1

2017

2016

2015

2014

2013

PAGE | 6



Application Software

Pending Schneider Electric SE Ige+Xao SA Computer aided design software for electrical installation functional simulation. $163 5.1x

Pending CSRA, Inc. Praxis Engineering Technologies, Inc. Developer of applications and software solutions for the intelligence community. $235 NA

Pending Apple, Inc. Shazam Entertainment Ltd. Music and image recognition software for consumers. $364 7.7x

01/11/18 TSYS Cayan LLC Payments solutions across the issuing, merchant, and prepaid industries. $1,050 NA

01/02/18 Thoma Bravo ABC Financial Software and payment processing solutions for health and fitness clubs. $750 NA

12/28/17 JAGGAER, Inc. BravoSolution eProcurement software and services. $218 2.3x

12/20/17 Fintrax Group Holdings Ltd. Planet Payment, Inc. International and multi-currency payment processing solutions. $211 4.0x

12/14/17 TMX Group Trayport Ltd. Trading system software designed for energy trading. $726 9.9x

12/04/17 Emerson Electric Co. Paradigm Software solutions for the oil and gas industry. $510 NA

12/01/17 First Data BluePay Revenue and compliance software for financial institutions. $760 NA

12/01/17 H.I.G. Capital Velocity Solutions, Inc. Software and solutions for financial institutions. NA NA

11/21/17 Delphi Automotive Plc nuTonomy, Inc. Developer of autonomous vehicle driving software. $450 NA

11/16/17 Dassault Systèmes SA Exa Corp. Simulation software and related services for vehicle manufacturers. $406 5.6x

11/16/17 bpost SA Radial, Inc. eCommerce logistics and omnichannel technology solutions. $820 0.8x

11/08/17 Accruent LLC BlueCielo ECM Solutions BV Asset lifecycle information management software solutions. $112 3.2x

11/01/17 Leonard Green & Partners CPA Global Ltd. Intellectual property management software for corporations and law firms. $3,103 NA

10/04/17 Visma AS Admincontrol AS Secure collaboration and document sharing software. $400 NA

$428 4.5x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

MEDIAN

DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME1 (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS1,5

Application Software M&A registered 346 transactions in4Q 2017, representing a 13%increase over 4Q 2016 andremaining in line with the priorquarter.

Median reported ApplicationSoftware transaction multiples decreased slightly to 2.5x revenue, though remain in line with two-year historical averages.

MEDIAN M&A REVENUE MULTIPLES1 (REPORTED)

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

2.7x

2.3x

2.4x

2.7x

2.5x

In 4Q 2017, integratedsoftware and paymentscompanies were attractivetargets for strategics andprivate equity seeking tocapitalize on growing digitalpayment volumes.

Notable integrated softwareand payments transactionsinclude TSYS’s acquisition ofCayan, Thoma Bravo’sacquisition of ABC Financial,and First Data’s acquisition ofBluePay.

251

227

282 271

289

272

319 320 316 314

281

298 307

291 288

337 346

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

PAGE | 7



SaaS

Pending Oracle Corp. Aconex Ltd. Cloud-based team collaboration software for the construction industry. $1,167 9.6x

Pending Marling Equity Partners Bazaarvoice, Inc. SaaS-based CGC, advertising, and personalization software solutions. $409 2.0x

Pending Intuit, Inc. TSheets.com LLC Cloud-based time tracking and scheduling software for SMBs. $340 8.5x

Pending CVC Capital Partners VelocityEHS SaaS-based environmental, health, and safety regulation compliance software. $328 NA

01/02/18 Envestnet, Inc. FolioDynamix Cloud-based wealth management platform. $195 NA

12/04/17 JPMorgan Chase WePay, Inc. Cloud-based integrated payment processing services for online software platforms. $220 3.8x

11/21/17 Insight Venture Partners Bullhorn, Inc. Cloud-based CRM and operations software for the recruitment industry. NA NA

11/14/17 SIRIS Capital Group LLC Intralinks Holdings, Inc. Web-based document exchange platform. $1,035 3.5x

11/14/17 BV Investment Partners Precision Nutrition SaaS-based nutrition education and coaching software. $155 6.3x

11/08/17 Industrial & Financial Systems AB Workwave LLC SaaS-based software for the field service and last mile delivery and logistics markets. NA NA

11/01/17 SAP SE Gigya, Inc. Cloud-based customer identity and access management platform. $350 NA

11/01/17 Navicure, Inc. ZirMed, Inc. Cloud-based financial and clinical performance management software. $750 NA

10/09/17 Accel-KKR Reapit Ltd. SaaS-based CRM and accounting software for residential real estate markets. $66 5.6x

10/03/17 Trilliant Health, Inc. Expression Health Analytics LLC SaaS-based healthcare data and insights solutions. NA NA

10/03/17 Blackbaud JustGiving Saas charity fundraising software platform. $114 4.2x

$334 4.9x

HW&CO. CONFIDENTIAL

45 46

60

54 53

65

68 70

55

52 51 52 54

48

43

55 57

NOTABLE SAAS M&A TRANSACTIONS1,5

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x

4.9x

5.6x5.4x

4.8x4.6x

4.7x4.8x

4.5x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME1 (GLOBAL)

SaaS M&A registered 57transactions in 4Q 2017,remaining in line with the priorquarter.

4Q 2017 median reportedSaaS transaction multiples decreased slightly but remained in line with prior quarters at 4.5x revenue.

Cloud adoption continues todrive sector consolidation withstrategics and private equitybuyers seeking to bolster theircloud capabilities and fortifytheir positions in key verticalmarkets.

Notable 4Q 2017 SaaStransactions include Oracle’spending acquisition ofAconex, Intuit’s pendingacquisition of T Sheets, andMarlin’s pending take-privateof BazaarVoice.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

PAGE | 8



NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS1

64 67

72 76

99

89

105

112

102

82

87

97 100

105 106 107 110

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME1 (GLOBAL)

Data and Analytics M&A registered 110 transactions in 4Q 2017, in line with the last four quarters.

Median reported Data and Analytics transaction multiples also remained near four-year highs at 3.0x revenue.

Data and Analytics remained a key focus area for enterprises in 2017, as consumers and businesses alike increasingly sought real-time data and visibility to support critical decision-making.

Recent examples include Verisk’s acquisition of PowerAdvocate, Ascential’sacquisition of Clavis Insight, and Guidewire’s acquisition of Cyence.


1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x2.5x

2.8x

2.5x

3.1x3.0x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

Data and Analytics

Pending ION Investment Group Ltd. Dealogic SaaS-based financial content and analytics platform. NA NA

Pending Accesso Technology The Experience Engine, Inc. Consumer engagement platform driven by real-time information. $81 6.4x

12/31/17 Verisk Analytics, Inc. Power Advocate, Inc. Market, cost intelligence, and supply chain solutions for the energy sector. $280 7.8x

12/22/17 Ascential Plc Clavis Insight Business to business digital analytics solutions to optimize product brands. $140 8.8x

12/22/17 Scaleworks, Inc. Keen.io Data analytics solutions for developers. NA NA

12/20/17 Magnitude Software, Inc. Innowera LLC Productivity and data management platform for SAP systems. NA NA

12/19/17 Verint Systems, Inc. Next IT Corp. Conversational artificial intelligence-powered intelligent virtual assistants. $51 NA

12/07/17 Blackstone Corporate Private Equity TITUS, Inc. Data classification and categorization software for compliance applications. $100 2.5x

11/24/17 Royal Philips NV Analytical Informatics, Inc. Vendor-agnostic advanced workflow tools and aplications. NA NA

11/15/17 TIBCO Software, Inc. Alpine Analytics, Inc. Cloud-based data science and social collaboration platform. NA NA

11/15/17 Oracle Corp. Moat, Inc. Actionable marketing analytics software. $850 NA

11/01/17 Guidewire Software, Inc. Cyence, Inc. Data science and risk analytics solutions for P&C insurers. $264 NA

11/01/17 Cisco Systems, Inc. Perspica, Inc. Machine learning and data processing technology for application-related data. NA NA

10/26/17 Marlin Management Co. LLC Logi Analytics, Inc. Interactive data visualization solutions for business intelligence and analytics. NA NA

10/23/17 Nasdaq, Inc. eVestment Alliance LLC Cloud-based institutional investment data intelligence and analytics platform. $705 9.8x

10/11/17 Welltok, Inc. Tea Leaves Health LLC SaaS-based analytics and marketing technology platform used by hospital systems. $90 NA

$140 7.8x

PAGE | 9



55 53

48

56

47 45

50

36

52

44

57

60

75

63 62

76

71

2.4x2.5x

2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

3.1x

2.6x

2.4x

3.0x 3.0x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS1

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME1 (GLOBAL)

Infrastructure Software M&A registered 71 transactions in4Q 2017, a slight decreasefrom the prior quarter thoughstill among the most activequarters in the last four years.

In 4Q 2017, median reportedInfrastructure Softwaretransaction multiples remainedin line with valuations from theprior quarter at 3.0x revenue.

Established vendors includingCisco and Synopsys, andseasoned private equityinvestors remain highly activeacquirers of InfrastructureSoftware companies.

Cybersecurity and networkmonitoring companies were inhigh demand in 4Q 2017, asevidenced by Qualys’ pendingacquisition of NetWatcher,Synopsys’ acquisition of BlackDuck, and Thoma Bravo’spending take-private ofBarracuda Networks.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

4Q '1

7

Infrastructure Software

Pending Thoma Bravo Barracuda Networks, Inc. Security software, data protection, and network services provider. $1,270 3.5x

Pending Cisco Systems, Inc. BroadSoft, Inc. Communication software, including enterprise calling, messaging, and collaboration. $1,588 4.4x

Pending TA Associates Flexera Software LLC IT asset / usage management and software monetization solutions. NA NA

Pending Thales SA Gemalto NV Software development solutions for digital security applications. $6,333 1.9x

Pending Qualys, Inc. NetWatcher, Inc. Enterprise-level managed security and network monitoring solutions. NA NA

Pending Apax Partners ThoughtWorks, Inc. Software development and digital transformation solutions. NA NA

Pending Proofpoint, Inc. WebLife Online cyber security and malware protection software. $60 NA

12/27/17 Evergreen Coast Capital Gigamon, Inc. Network visibility and data traffic management software. $1,191 3.9x

12/11/17 Synopsys, Inc. Black Duck Software, Inc. Automated solutions for securing and managing open source software. $547 7.3x

12/11/17 Vista Equity Partners Datto, Inc. Total data protection software for businesses around the world. NA NA

11/21/17 Proofpoint, Inc. Cloudmark, Inc. Messaging security software to protect against spam, phishing, viruses, and other content. $110 NA

11/16/17 Optiv Security, Inc. Decision Lab LLC Big data, automation, and orchestration software solutions. NA NA

11/03/17 Continental AG Argus Cyber Security Ltd. Automotive cyber security solutions to protect vehicles from being hacked. $404 NA

11/01/17 TIBCO Software, Inc. Cisco Data Virtualization Data virtualization software and services. NA NA

10/31/17 DigiCert, Inc. Symantec Web Security Website certification platform for organizations, governments, and consumers. $950 2.4x

10/05/17 Marlin Management Co. AppRiver LLC Cloud-based cybersecurity and productivity data solutions. NA NA

$950 3.7x

PAGE | 10



PRIVATE PLACEMENT CAPITAL RAISED BY ROUND1,4 (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

There were 901 private placement financings in 4Q 2017, representing a 15% increase over 4Q 2016.

Total reported capital raised appears to have stabilized in 4Q 2017, after a decline in the prior quarter.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 4Q 2017, later stage rounds (C – later) continued to represent the majority of private placement rounds, comprising 63% of total capital invested.

Notable late stage rounds included Uptake’s $117 million Series D investment led by Baillie Gifford, Remitly’s $115 million Series D investment led by PayU, and eShares’ $42 million Series C investment led by Menlo Ventures.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED1,4

829

940 952

1013 997 1033

960

756869

896

817784 797

751

852901

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17

$ in

Mill

ion

s

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

6% 4% 2% 4% 2% 4% 4% 2% 4% 2% 2% 1% 2% 2% 1% 1% 2%

29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

17% 12% 11% 14%

16%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

21% 12%

29% 18%

15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

19%

19%

27%

17% 24%

31% 20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

30%

46% 49% 39% 39%

4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17

Seed Series A Series B Series C Series D / or later

PAGE | 11



12/07/17 Infrastructure C $30 $65 Battery Ventures; General Catalyst; Acero CapitalProvider of security technology that enables software

applications to protect themselves against cyberattacks.

12/06/17 SaaS B $13 $18 Susquehanna Growth Equity; Massa Innovations; SaaS Capital Provider of an online alumni networking platform.

12/01/17 SaaS Growth $17 NA TT Capital Partners Provider of heath engagement software.

11/30/17Data &

Analytics D $117 $258 Baillie Gifford; Revolution Growth; GreatPoint Ventures

Provider of predictive analytics software for industrial

applications.

11/14/17 SaaS B $26 $29 Insight Venture PartnersProvider of patient access and healthcare operational

performance software.

11/14/17 SaaS B $8 $14 OpenView; Rethink Education; High Alpha Capital; Allos Ventures Provider of team training / educational software.

11/14/17 Infrastructure B $20 $29 Redpoint Ventures; Sequoia Capital; Cowboy Ventures; Harrison MetalProvider of application performance management solutions

for enterprise software.

10/31/17 Infrastructure B $25 $43 Battery Ventures; Qualcomm Ventures; Square Peg CapitalProvider of software-defined block storage solutions for web-

scale and enterprise applications.

10/31/17 SaaS D $115 $215 PayU; Stripes Group; DFJ; DN Capital Provider of digital payment remittance solutions.

10/11/17 SaaS Growth $25 NA Polaris Partners Provider of a SaaS-based supply chain application suite.

10/11/17 SaaS C $42 $68 Menlo Ventures; Social Capital Provider of digital asset ownership management software.

10/09/17 SaaS C $20 $55 Google Ventures Provider of a coding collaboration and DevOps platform.

SELECT RECENT SOFTWARE PRIVATE PLACEMENTS1,4

Note: Financial information presented above represents reported capital raised only.

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR1

EBITDA MULTIPLE COMPARISON 4Q 2016 VS. 4Q 2017

6.2x

6.9x6.3x

5.2x 5.2x

4.3x 4.4x3.9x

4.5x 4.5x

3.3x3.9x

3.1x3.2x

3.8x

3.0x

1.3x

8.5x8.1x

7.4x

6.4x 6.3x 6.1x5.8x 5.6x

5.4x 5.3x4.8x 4.8x 4.8x

3.9x

3.4x 3.1x

1.5x

4Q 2016 4Q 2017

25.9x

41.6x

37.0x

15.0x

18.2x18.0x 17.6x

56.8x

15.1x 15.3x

42.4x

13.7x

16.4x15.6x

20.1x17.8x

12.3x

30.4x

43.3x

52.3x

17.5x

25.2x

31.3x

16.1x

43.8x

19.3x17.0x

28.6x

15.7x

20.1x18.8x

17.3x13.9x

13.6x

4Q 2016 4Q 2017

REVENUE MULTIPLE COMPARISON 4Q 2016 VS. 4Q 2017STOCK PERFORMANCE (1- & 3-YEAR)

12.6%

49.9%

16.8%

35.5%

41.6%

26.7%

28.8%

43.0%

31.7%

30.0%

26.1%

33.2%

36.3%

31.7%

4.0%

40.2%

21.1%

21.7%

74.9%

44.0%

84.8%

74.5%

37.7%

103.9%

4.4%

55.0%

66.8%

54.2%

65.8%

(7.8%)

9.1%

(23.1%)

17.5%

61.3%

1 Yr - Index Change 3 Yr - Index Change

SCM & Logistics

Large-Cap SaaS

HCM

Financial

PLM & Engineering

IT Security

EdTech / Non-Profit

Small-Cap SaaS

Enterprise

Bellwethers

Marketing

IT Operations Mgmt.

Data & Analytics

HCIT

Communication

Data Storage

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES1

8.5x

8.1x

7.4x

6.4x

6.3x

6.1x

5.8x

5.6x

5.4x

5.3x

4.8x

4.8x

4.8x

3.9x

3.4x

3.1x

1.5x

SCM & Logistics

Large-Cap SaaS

HCM

Financial

PLM & Engineering

IT Security

EdTech / Non-Profit

Small-Cap SaaS

Enterprise

Bellwethers

Marketing

IT Operat ions Mgmt.

Data & Analytics

HCIT

Communication

Data Storage

Energy

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

19% 66% 21% 65% 55% 40%

30% 100% 17% 54% 46% -

17% 118% 16% 83% - 33%

12% 20% 36% 32% - 51%

14% 39% 23% 42% - 73%

21% 77% 19% 26% - 57%

14% 21% 25% 81% 79% 29%

26% 139% 11% 53% - 18%

13% 24% 30% 68% 79% 37%

4% 29% 31% 79% 50% 22%

22% 85% 11% 67% 36% 77%

13% 45% 29% 52% 55% 12%

11% 46% 17% 72% - 80%

16% 52% 18% - 52% 35%

15% 79% 19% 7% - 99%

15% 212% 12% 45% - 60%

17% 14% 12% - - 100%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

Technology IPOs rebounded in 4Q 2017after the underperformance of Snap andBlue Apron in 3Q 2017, which caused manypotential IPO candidates to re-evaluatetiming.

As the stock market completes one of itsbest years in history, driven largely byoutperforming technology stocks, bothtechnology startups and unicorns areincreasingly viewing the public markets as apotentially interesting source of liquidity.

Notable technology companies such asSpotify and Dropbox, both who havealready filed for an IPO, will test the IPOmarkets in 2018.

MARKET CAP AT IPO (LTM) 1 REVENUE GROWTH (1YR PRIOR TO IPO) 1OFFERING SIZE AT IPO (LTM) 1

RECENT U.S. TECHNOLOGY IPO ACTIVITY (BY OFFERING SIZE) 1

35%

50%

15%

< 25% 25 - 75% > 75%

30%

30%

40%

$0-50M $50-500M $500M-$1B $1B+

10%

10%

65%

15%

$0 - 50M $50 - 100M $100 - 250M $250M +

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

11

18

7

11

5

15

3

8

0

2

9

4

5

6

1

8

1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17

$0 - 50M $50 - 100M $100 - 250M $250M +

2014 Total: 47 2016 Total: 152015 Total: 31 2017 Total: 20

PAGE | 15



(150.0%)

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

thSto

ck

Pe

rfo

rma

nc

e (

Offe

r to

Cu

rre

nt)

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS1

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

120.5%

73.4%

92.9%

(37.8%)

36.9% 36.8%

80.5%

50.6%

10.1%

162.3%

27.7%

9.5%

45.0%

84.0%

20.8%

84.3% 115.3%

49.3%

85.7%

17.7% 70.3%

59.4%

86.6%

57.2%

9.1% 31.5% 16.7% 32.5%

6.5%

70.6%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

9/29/16 10/5/16 10/27/16 12/15/16 3/9/17 3/16/17 3/24/17 4/6/17 4/27/17 5/25/17 6/7/17 10/5/17 10/26/17 10/31/17 11/17/17

$16.0 $18.0 $17.0 $11.0 $14.0 $17.0 $14.0 $17.0 $15.0 $12.0 $11.0 $17.0 $22.0 $13.0 $12.0

$1,958.5 $866.0 $838.6 $330.3 $1,240.6 $2,141.9 $662.5 $1,542.9 $1,921.0 $704.3 $100.2 $2,951.6 $814.3 $226.9 $1,026.6

$237.9 $133.2 $146.2 $287.2 $233.3 $221.0 $126.0 $187.0 $225.0 $75.0 $30.8 $531.3 $116.2 $156.0 $240.0

120.5% 73.4% 92.9% (37.8%) 36.9% 36.8% 80.5% 50.6% 10.1% 162.3% 27.7% 9.5% 45.0% 84.0% 20.8%

MARKET CAP AT OFFER ($M)

PAGE | 16



22.2%

4.2%

8.2%

10.7%

10.8%

15.5%

28.4%

Other

Buildings Materials

Manufacturing

Retail

Services & Leasing

Technology

Healthcare

54% 50%

57% 55% 54%

60% 58%

56%

50% 53%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x 5.3x5.5x

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

LBO LOAN VOLUME BY INDUSTRY2,3 MEDIAN LBO DEBT PERCENTAGES4

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES2,3 MIDDLE MARKET LBO VOLUME BY QUARTER2,3

2017 New Issue LBO Loans Percentage of Total Purchase Price

Median middle market LBO loan multiples in 2017 increased slightly to 5.5x leverage.

Middle market LBO loan volume decreased to $1.1 billion in 4Q 2017, bringing total volume in 2017 to $6.8 billion.

Technology companies were the second largest recipients of middle market LBO loans in 2017, representing 15.5% of new issuance.

Median LBO debt percentages increased slightly to 53% of total purchase price in 2017.

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B$1.1B

$1.8B

$2.9B

$1.1B

3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

Education TechnologyeCommerce and Retail Engineered Solutions

FinTech

Enterprise Software

Healthcare IT Human Capital Management Infrastructure Software

Internet and Digital Media Legal TechnologyIT Services

Please click here if you would like to contact HW&Co. in order to discuss any particular sector.

Supply Chain and Logistics TechnologySecurity SoftwareOnline Marketing and Data Analytics

Membership Mgmt. and Non-Profit Software

mailto:*[email protected]?subject=TMT Reader Follow Up

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

acquired by

and

acquired by

acquired by

and

acquired by acquired byacquired byacquired byacquired by majority

recapitalization by

recapitalized byacquired by acquired byacquired byacquired byacquired byacquired by

a portfolio company of

recapitalized

by management

acquired by

acquired bystrategic investment

fromacquired by acquired by acquired by acquired byacquired by acquired by

acquired by

and

acquired byacquired byminority investment

fromacquired by

acquired bysignificant equity

investment fromacquired byacquired acquired by acquired by acquired byacquired by acquired byacquired byacquired by acquired by

GFI Energy Group

a division of

significant equity

investment from

minority investment

from

acquired by merged with acquired bystrategic investment

fromacquired by merged with

significant equity

investment fromacquired by acquired by acquired byacquired by

minority investment

fromacquired by

majority investment

frominvestment from

acquired by acquired by acquired by acquired byacquired byacquired a majority

stake inacquired byacquired byacquired byacquired byacquired byacquired byrecapitalized byacquired by

B2C

acquired by

acquired acquired by acquired by acquired by acquired byacquired byrecapitalized bymajority investment

fromacquired by

majority investment

fromacquired by

growth Investment

from

majority investment

fromacquiredacquired by

acquired by acquired byacquired byinvestment fromacquired by

Undisclosed

Strategic Buyer

acquired byacquired acquired by

Company A

acquired by

a wholly-owned affiliate of

The Identity and Access Management Business of

acquired by

investment from acquired bymerged withacquiredmajority investment

from

http://www.aderant.com/

http://www.meddatahealth.com/our_business/index.html

http://www.cltsloyalty.com/

http://www.rewardsnetwork.com/

http://www.oaktreecapital.com/default.aspx

http://www.leisurepassgroup.com/

PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE1

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

AP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP Adobe Salesforce HPE

Communication Software NICE Nuance Twilio Synchronoss MobileIron

Enterprise Software Oracle IBM SAP Adobe ADP Intuit Amadeus Constellation Sage OpenText

Human Capital Management (HCM) ADP Paychex Workday Ultimate Paycom Paylocity Cornerstone Benefitfocus

Marketing Software Adobe Salesforce HubSpot Acxiom Callidus Criteo ChannelAdv isor Marin

PLM & Engineering Software Dassault Autodesk Hexagon AB Synopsys Ansys Cadence Trimble PTC Nemetschek Altair

Supply Chain & Logistics Software Manhattan Descartes Coupa Kinaxis CommerceHub SPS American Amber Road Park City

Energy Software AspenTech Itron PSI

Financial Software Fiserv MSCI Square Jack Henry SS&C Black Knight Oracle FSS Env estnet Blackline Q2 Holdings

Healthcare IT (HCIT) Cerner Veev a athenahealth Medidata Allscripts HMS Inov alon Ev olent Health Quality Systems Model N

EdTech / Non-Profit Software Constellation Tyler Tech Blackbaud 2U NIC Instructure K12 Cambium

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Serv iceNow Check Point Workday Ultimate Veev a LogMeIn Guidewire athenahealth Paycom

Large-Cap SaaS (cont'd) Atlassian Proofpoint Medidata RealPage ZenDesk HubSpot RingCentral Xero Box Ebix

Large-Cap SaaS (cont'd) Qualys Cornerstone

Small-Cap SaaS (≤ $2Bn Mkt Cap) Callidus Alarm.Com Coupa Mimecast Q2 Holdings CyberArk Hortonworks Fiv e9 MINDBODY Yext

Small-Cap SaaS (cont'd) Instructure Benefitfocus SPS Rapid7 Workiv a AppFolio Apptio Model N Castlight Health Amber Road

Data & Analytics Verisk Splunk Teradata Tableau Pegasystems Verint MicroStrategy Talend Inov alon PROS Holdings

IT Operations Management Serv iceNow Red Hat Arista Micro Focus CA Citrix VMware F5 Networks Software AG New Relic

IT Operations Management (cont'd) NetScout Progress Radware Apptio

Data Storage NetApp Iron Mountain Nutanix Box CommVault Pure Storage Carbonite

IT Security Cisco Symantec Check Point Palo Alto VeriSign Trend Micro Fortinet Proofpoint FireEye Qualys

IT Security (cont'd) Mimecast CyberArk Varonis SailPoint ForeScout Rapid7 Cheetah Mobile SecureWorks

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS1

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. 2017E Rev. 2018E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS

Alphabet Inc. GOOGL $645,115 $679,655 97.0% 32.9% 98.5% 23.0% 0.6% 32.8% 6.2x 6.1x 5.3x 18.9x 32.3x

Microsoft Corporation MSFT 617,403 659,906 97.8% 37.7% 84.2% 10.2% 18.2% 38.9% 6.6x 5.6x 5.1x 17.0x 28.6x

Oracle Corporation ORCL 192,021 195,720 89.0% 23.0% 5.1% 4.5% 4.4% 42.3% 4.9x 4.7x 4.6x 11.7x 19.7x

Cisco Systems, Inc. CSCO 155,605 189,341 98.2% 26.7% 37.7% (2.3%) 2.3% 30.5% 3.3x 3.2x 3.1x 10.7x 19.6x

IBM Corporation IBM 177,417 142,035 83.9% (7.6%) (4.4%) (2.3%) 0.4% 19.1% 2.3x 2.3x 2.2x 11.9x 12.6x

SAP SE SAP 137,839 137,856 96.1% 30.0% 61.3% 8.2% 13.3% 27.0% 5.3x 4.7x 4.4x 19.6x 33.6x

Adobe Systems Incorporated ADBE 83,878 86,383 94.1% 70.2% 141.0% 25.1% 21.6% 31.2% 11.5x 9.4x 8.1x 36.8x 51.0x

salesforce.com, inc. CRM 74,006 73,841 93.6% 49.3% 72.4% 25.5% 24.4% 8.9% 7.5x 6.0x 5.0x 84.2x NM

Hewlett Packard Enterprise Co. HPE 28,531 22,888 57.7% 6.8% NA (42.2%) 0.5% 17.5% 1.0x 1.0x 1.0x 5.6x 52.5x

Median $155,605 $142,035 94.1% 30.0% 66.8% 8.2% 4.4% 30.5% 5.3x 4.7x 4.6x 17.0x 30.5x

COMMUNICATION SOFTWARE

NICE Systems Ltd. NICE-IL $5,708 $5,515 99.5% 32.8% 78.9% 29.4% 15.2% 21.9% 4.6x 4.0x 3.7x 20.9x 59.0x

Nuance Communications, Inc. NUAN 6,504 4,746 82.0% 9.7% 14.6% (0.5%) 6.8% 19.3% 3.4x 3.1x 3.0x 17.3x NM

Twilio, Inc. TWLO 1,891 1,624 67.5% (18.2%) NA 48.2% 31.4% NM 5.2x 3.9x 3.2x NM NM

Synchronoss Technologies, Inc. SNCR 513 425 22.2% (76.7%) (78.6%) (17.6%) 32.6% 11.9% 1.1x 0.8x 0.9x 9.1x NM

MobileIron, Inc. MOBL 288 375 57.6% 4.0% (60.8%) 7.2% 7.5% NM 1.7x 1.5x 1.4x NM NM

Median $1,891 $1,624 67.5% 4.0% (23.1%) 7.2% 15.2% 19.3% 3.4x 3.1x 3.0x 17.3x 59.0x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $192,021 $195,720 89.0% 23.0% 5.1% 4.5% 4.4% 42.3% 4.9x 4.7x 4.6x 11.7x 19.7x

IBM Corporation IBM 177,417 142,035 83.9% (7.6%) (4.4%) (2.3%) 0.4% 19.1% 2.3x 2.3x 2.2x 11.9x 12.6x

SAP SE SAP 137,839 137,856 96.1% 30.0% 61.3% 8.2% 13.3% 27.0% 5.3x 4.7x 4.4x 19.6x 33.6x

Adobe Systems Incorporated ADBE 83,878 86,383 94.1% 70.2% 141.0% 25.1% 21.6% 31.2% 11.5x 9.4x 8.1x 36.8x 51.0x

Automatic Data Processing, Inc. ADP 51,804 51,973 96.2% 14.0% 40.6% 5.7% 8.9% 21.8% 4.1x 3.8x 3.5x 19.0x 29.4x

Intuit Inc. INTU 40,490 40,336 97.7% 37.7% 71.1% 11.1% 12.3% 31.1% 7.7x 6.8x 6.2x 24.6x 41.0x

Amadeus IT Group AMS-ES 33,792 31,674 97.5% 58.5% 80.3% 17.7% 21.5% 38.2% 6.6x 5.4x 5.1x 17.3x 32.2x

Constellation Software Inc. CSU-CA 12,788 12,889 98.5% 33.7% 103.9% 13.6% 19.3% 26.0% 5.4x 4.5x 4.0x 20.9x 60.9x

Sage Group plc SGE-GB 12,692 11,673 98.6% 33.4% 48.7% (2.4%) 20.4% 29.0% 5.8x 4.8x 4.5x 20.1x 35.9x

Open Text Corporation OTEX 11,894 9,429 99.6% 15.4% 22.5% 29.7% 13.6% 33.4% 4.9x 4.3x 4.1x 14.6x 63.1x

Median $46,147 $46,155 96.9% 31.7% 55.0% 9.6% 13.5% 30.1% 5.4x 4.7x 4.4x 19.3x 34.7x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 21



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D) 1

HUMAN CAPITAL MANAGEMENT SOFTWARE

Automatic Data Processing, Inc. ADP $51,804 $51,973 96.2% 14.0% 40.6% 5.7% 8.9% 21.8% 4.1x 3.8x 3.5x 19.0x 29.4x

Paychex, Inc. PAYX 24,399 24,453 96.7% 11.8% 47.5% 5.7% 7.2% 43.7% 7.5x 7.0x 6.6x 17.2x 29.0x

Workday, Inc. WDAY 19,545 13,938 87.0% 53.9% 24.7% 37.1% 31.0% NM 9.8x 7.5x 6.1x NM NM

Ultimate Software Group, Inc. ULTI 6,586 6,520 93.5% 19.7% 48.6% 21.4% 23.5% 8.1% 7.3x 5.9x 5.0x 90.6x NM

Paycom Software, Inc. PAYC 4,697 4,680 93.3% 76.6% 205.1% 32.8% 33.2% 22.1% 11.5x 8.7x 7.0x 52.3x 75.1x

Paylocity Holding Corp. PCTY 2,478 2,477 87.4% 57.1% 80.6% 26.3% 29.8% 10.7% 7.8x 6.0x 5.0x 73.4x NM

Cornerstone Ondemand, Inc. CSOD 1,973 2,046 79.8% (16.5%) 0.4% 12.0% 9.9% NM 4.3x 3.9x 3.5x NM NM

Benefitfocus, Inc. BNFT 907 842 72.8% (9.1%) (17.8%) 12.3% 10.8% 0.2% 3.6x 3.2x 2.8x NM NM

Median $5,642 $5,600 90.3% 16.8% 44.0% 16.8% 17.2% 16.2% 7.4x 6.0x 5.0x 52.3x 29.4x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $83,878 $86,383 94.1% 70.2% 141.0% 25.1% 21.6% 31.2% 11.5x 9.4x 8.1x 36.8x 51.0x

salesforce.com, inc. CRM 74,006 73,841 93.6% 49.3% 72.4% 25.5% 24.4% 8.9% 7.5x 6.0x 5.0x 84.2x NM

HubSpot, Inc. HUBS 3,077 3,304 94.5% 88.1% 163.0% 39.5% 36.7% NM 8.9x 6.5x 5.3x NM NM

Acxiom Corporation ACXM-US 2,238 2,185 90.7% 2.8% 36.0% 0.9% 13.3% 12.4% 2.5x 2.2x 1.9x 20.3x NM

Callidus Software Inc. CALD 1,704 1,951 93.6% 70.5% 75.4% 21.4% 24.8% NM 7.1x 5.7x 4.7x NM NM

Criteo SA CRTO 1,443 1,718 46.5% (36.6%) (35.6%) 34.9% (57.8%) 9.4% 0.7x 1.5x 1.3x 6.9x 22.1x

Channeladv isor Corporation ECOM 185 239 59.4% (37.3%) (58.3%) 8.4% 12.1% NM 1.5x 1.4x 1.3x NM NM

Marin Software, Inc. MRIN-US 34 62 57.1% (33.4%) (81.5%) (24.3%) NA NM 0.4x NM NM NM NM

Median $1,971 $2,068 92.1% 26.1% 54.2% 23.3% 21.6% 10.9% 4.8x 5.7x 4.7x 28.6x 36.5x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $25,387 $27,572 97.3% 39.3% 73.9% 7.3% 17.7% 29.0% 7.2x 6.1x 5.7x 24.9x 54.7x

Autodesk, Inc. ADSK 23,152 23,091 80.0% 41.6% 74.5% (9.6%) 26.9% NM 11.7x 9.2x 7.3x NM NM

Hexagon AB HEXA.B-SE 20,594 17,299 95.8% 40.1% 62.3% 5.1% 19.9% 32.2% 5.7x 4.7x 4.5x 17.6x 28.0x

Synopsys, Inc. SNPS 12,301 12,676 89.9% 44.8% 96.1% 12.2% 7.3% 23.0% 4.5x 4.2x 4.0x 19.6x 92.8x

ANSYS, Inc. ANSS 11,853 12,524 95.1% 59.6% 80.0% 9.7% 10.2% 44.2% 11.1x 10.1x 9.3x 25.2x 45.3x

Cadence Design Systems, Inc. CDNS 11,730 11,808 91.6% 65.8% 120.5% 6.8% 6.9% 22.9% 6.1x 5.7x 5.5x 26.8x 45.9x

Trimble Inc. TRMB 10,768 10,232 92.4% 34.8% 53.1% 8.3% 14.0% 17.2% 4.3x 3.7x 3.4x 24.8x 52.8x

PTC Inc. PTC 7,546 7,057 90.5% 31.3% 65.8% 1.9% 8.3% 11.8% 6.5x 6.0x 5.4x 54.8x NM

Nemetschek SE NEM-DE 3,441 3,460 92.0% 54.2% 255.3% 17.6% 31.4% 28.1% 8.2x 6.2x 5.5x 29.1x 58.7x

Altair Engineering Inc. ALTR-US 1,582 631 93.5% NA NA 6.5% 14.5% 8.1% 5.1x 4.4x 3.9x 62.2x 62.1x

Median $11,791 $12,166 92.2% 41.6% 74.5% 7.1% 14.2% 23.0% 6.3x 5.9x 5.4x 25.2x 53.8x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 22




SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $3,295 $3,415 88.9% (6.6%) 21.7% (0.0%) (6.4%) 33.4% 5.5x 5.9x 5.9x 16.5x 28.0x

Descartes Systems Group Inc. DSG-CA 2,231 2,189 91.0% 33.6% 91.5% 13.9% 20.8% 32.4% 9.8x 8.1x 7.4x 30.4x 83.2x

Coupa Software, Inc. COUP 1,460 1,719 82.8% 24.8% NA 40.1% 29.4% NM 8.5x 6.6x 5.4x NM NM

Kinaxis, Inc. KXS-CA 1,473 1,559 89.7% 31.5% 283.7% 20.0% 27.6% 18.7% 11.7x 9.1x 7.6x 62.2x 96.7x

CommerceHub, Inc. CHUBA-US 990 900 89.6% 46.5% NA 22.4% 18.9% 29.8% 9.2x 7.8x 6.9x 31.0x 71.1x

SPS Commerce, Inc. SPSC 682 837 66.9% (30.5%) (14.2%) 15.6% 14.3% 10.9% 3.2x 2.8x 2.5x 29.4x 98.9x

American Software, Inc. AMSWA 271 324 89.2% 12.6% 27.7% (3.3%) 8.1% 17.3% 2.6x 2.4x 2.3x 14.8x 18.3x

Amber Road, Inc. AMBR 216 199 74.7% (19.2%) (28.2%) 9.1% 11.7% NM 2.8x 2.5x 2.2x NM NM

Park City Group, Inc. PCYG 184 186 56.2% (24.8%) 5.9% 28.5% 43.7% 21.4% 9.5x 6.6x 5.0x 44.3x 53.2x

Median $990 $900 88.9% 12.6% 21.7% 15.6% 18.9% 21.4% 8.5x 6.6x 5.4x 30.4x 71.1x

ENERGY SOFTWARE

Aspen Technology, Inc. AZPN $4,954 $4,802 95.4% 21.1% 89.0% 2.9% 4.4% 44.7% 10.2x 9.8x 9.2x 22.8x 29.6x

Itron, Inc. ITRI 2,899 2,641 85.3% 8.5% 61.3% (2.5%) 16.7% 10.8% 1.5x 1.3x 1.2x 13.6x 39.3x

PSI Aktiengesellschaft PSAN-DE 304 349 95.1% 72.7% 54.3% 4.3% 19.6% 12.4% 1.5x 1.3x 1.2x 12.2x 34.3x

Median $2,899 $2,641 95.1% 21.1% 61.3% 2.9% 16.7% 12.4% 1.5x 1.3x 1.2x 13.6x 34.3x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $32,913 $27,327 98.3% 23.4% 84.8% 3.1% 7.3% 33.8% 5.9x 5.5x 5.2x 17.3x 29.9x

MSCI Inc. MSCI 12,903 11,396 96.9% 60.6% 166.7% 9.0% 13.7% 51.3% 10.5x 9.2x 8.4x 20.4x 37.0x

Square, Inc. SQ 12,777 9,321 70.0% 154.4% NA 25.7% (37.9%) 2.2% 6.2x 10.0x 7.8x NM NM

Jack Henry & Associates, Inc. JKHY 8,977 9,033 97.6% 31.7% 88.2% 4.9% 7.7% 35.0% 6.2x 5.8x 5.4x 17.8x 36.6x

SS&C Technologies Holdings, Inc. SSNC 10,710 8,333 95.2% 41.5% 38.4% 18.6% 8.2% 37.5% 6.5x 6.0x 5.7x 17.5x 37.8x

Black Knight Financial Serv ices, Inc. BKFS 4,422 7,085 92.8% 16.8% NA 4.3% 10.4% 44.8% 4.2x 3.8x 3.5x 9.4x 151.1x

Oracle Financial Serv ices Software Ltd. 532466-IN 5,185 5,458 98.5% 39.2% 20.5% 9.0% 14.5% 42.8% 7.4x 6.5x 5.9x 17.4x 28.4x

Env estnet, Inc. ENV 2,405 2,209 90.4% 41.4% 1.4% 21.3% 19.7% 9.8% 3.7x 3.1x 2.7x 37.4x NM

BlackLine, Inc. BL 1,616 1,736 81.4% 18.7% NA 44.4% 38.2% NM 10.0x 7.2x 5.6x NM NM

Q2 Holdings, Inc. QTWO 1,433 1,536 83.1% 27.7% 95.6% 33.2% 30.2% NM 7.8x 6.0x 4.8x NM NM

Median $7,081 $7,709 94.0% 35.5% 84.8% 13.8% 12.0% 36.2% 6.4x 6.0x 5.5x 17.5x 36.8x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 23




HEALTHCARE IT

Cerner Corporation CERN $22,513 $22,401 91.2% 42.3% 4.2% 7.9% 9.7% 30.5% 4.4x 4.0x 3.7x 14.5x 32.9x

Veev a Systems Inc VEEV 7,769 6,441 81.2% 35.8% 109.3% 28.1% 22.2% 24.6% 11.9x 9.8x 8.3x 48.5x 49.6x

athenahealth, Inc. ATHN 5,568 5,324 83.9% 26.5% (8.7%) 12.1% 13.9% 16.9% 4.7x 4.1x 3.7x 27.9x 170.1x

Medidata Solutions, Inc. MDSO 3,718 3,705 73.8% 27.6% 32.7% 20.8% 21.1% 15.6% 7.0x 5.8x 4.9x 45.0x 89.4x

Allscripts Healthcare Solutions, Inc. MDRX 4,397 2,629 95.7% 42.5% 13.9% 16.6% 25.0% 16.0% 2.6x 2.1x 1.9x 16.0x NM

HMS Holdings Corp. HMSY 1,614 1,425 81.1% (6.7%) (19.8%) (0.4%) 13.8% 21.4% 3.3x 2.9x 2.6x 15.2x 56.3x

Inov alon Holdings, Inc. INOV 1,844 970 84.3% 45.6% NA (4.7%) 13.2% 19.7% 4.3x 3.8x 3.4x 21.7x 55.3x

Ev olent Health Inc. EVH 730 918 44.7% (16.9%) NA 92.8% 41.9% NM 1.8x 1.3x 1.0x NM NM

Quality Systems, Inc. QSII 885 865 76.6% 3.3% (12.9%) 6.0% 2.7% 14.8% 1.7x 1.6x 1.6x 11.4x 32.2x

Model N, Inc. MODN 451 462 94.0% 78.0% 48.3% 22.6% 17.2% NM 3.4x 2.9x 2.6x NM NM

Median $2,781 $2,027 82.5% 31.7% 9.1% 14.3% 15.5% 18.3% 3.9x 3.4x 3.0x 18.8x 55.3x

EDTECH / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $12,788 $12,889 98.5% 33.7% 103.9% 13.6% 19.3% 26.0% 5.4x 4.5x 4.0x 20.9x 60.9x

Tyler Technologies, Inc. TYL 6,801 6,651 94.1% 24.0% 61.8% 13.1% 14.3% 25.1% 8.3x 7.3x 6.6x 33.2x 43.3x

Blackbaud, Inc. BLKB 4,703 4,544 90.4% 47.6% 118.4% 8.6% 13.4% 18.4% 6.1x 5.4x 4.9x 33.2x 86.5x

2U, Inc. TWOU 2,956 3,369 93.1% 114.0% 228.1% 34.2% 53.2% NM 11.5x 7.5x 5.6x NM NM

NIC Inc. EGOV 948 1,100 64.6% (30.5%) (7.7%) 6.6% 5.7% 25.5% 2.9x 2.7x 2.6x 11.2x 20.4x

Instructure, Inc. INST 911 986 90.4% 69.3% NA 44.9% 36.8% NM 6.2x 4.5x 3.6x NM NM

K12 Inc. LRN 504 657 75.1% (7.3%) 34.0% 0.9% 3.0% 11.7% 0.6x 0.6x NM 4.8x 105.5x

Cambium Learning Group, Inc. ABCD 327 265 77.8% 13.8% 242.2% 4.5% NA 29.6% 2.1x NM NM 7.0x 14.9x

Median $1,952 $2,234 90.4% 28.8% 103.9% 10.9% 14.3% 25.3% 5.8x 4.5x 4.5x 16.1x 52.1x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 24




LARGE-CAP SAAS (Market Cap > $2Bn)



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

salesforce.com, inc. CRM $74,006 $73,841 93.6% 49.3% 72.4% 25.5% 24.4% 8.9% 7.5x 6.0x 5.0x 84.2x NM

Serv iceNow, Inc. NOW 21,897 22,518 99.3% 75.4% 92.2% 37.3% 41.8% NM 12.4x 8.7x 6.8x NM NM

Check Point Software Technologies Ltd. CHKP 15,707 16,936 86.9% 22.7% 31.9% 7.2% 7.5% 49.8% 8.6x 8.0x 7.5x 17.2x 21.6x

Workday, Inc. WDAY 19,545 13,938 87.0% 53.9% 24.7% 37.1% 31.0% NM 9.8x 7.5x 6.1x NM NM

Ultimate Software Group, Inc. ULTI 6,586 6,520 93.5% 19.7% 48.6% 21.4% 23.5% 8.1% 7.3x 5.9x 5.0x 90.6x NM

Veev a Systems Inc VEEV 7,769 6,441 81.2% 35.8% 109.3% 28.1% 22.2% 24.6% 11.9x 9.8x 8.3x 48.5x 49.6x

LogMeIn, Inc. LOGM 5,862 6,032 88.4% 18.6% 132.1% 147.3% 42.7% 24.8% 7.3x 5.1x 4.8x 29.4x NM

Guidewire Software, Inc. GWRE 5,022 5,596 88.9% 50.5% 46.7% 21.1% 29.8% 7.0% 9.5x 7.3x 6.3x 136.7x NM

athenahealth, Inc. ATHN 5,568 5,324 83.9% 26.5% (8.7%) 12.1% 13.9% 16.9% 4.7x 4.1x 3.7x 27.9x 170.1x

Paycom Software, Inc. PAYC 4,697 4,680 93.3% 76.6% 205.1% 32.8% 33.2% 22.1% 11.5x 8.7x 7.0x 52.3x 75.1x

Atlassian Corp. Plc TEAM 9,768 4,442 85.2% 89.0% NA 37.6% 42.6% NM 14.4x 10.1x 8.0x NM NM

Proofpoint, Inc. PFPT 3,866 3,982 90.7% 25.7% 84.1% 38.7% 37.9% NM 8.1x 5.9x 4.6x NM NM

Medidata Solutions, Inc. MDSO 3,718 3,705 73.8% 27.6% 32.7% 20.8% 21.1% 15.6% 7.0x 5.8x 4.9x 45.0x 89.4x

RealPage, Inc. RP 3,862 3,672 94.7% 47.7% 101.7% 16.9% 30.5% 14.7% 6.1x 4.7x 4.2x 41.5x 128.4x

Zendesk, Inc. ZEN 3,180 3,435 94.3% 59.6% 38.9% 38.3% 39.7% NM 8.0x 5.7x 4.5x NM NM

HubSpot, Inc. HUBS 3,077 3,304 94.5% 88.1% 163.0% 39.5% 36.7% NM 8.9x 6.5x 5.3x NM NM

RingCentral, Inc. RNG 3,550 3,142 96.9% 135.0% 224.4% 29.8% 32.3% NM 7.6x 5.8x 4.7x NM NM

Xero Limited XRO-NZ 3,017 3,102 87.9% 83.6% 77.5% 42.8% 47.7% 0.7% 12.2x 8.3x 6.5x NM NM

Box, Inc. BOX 2,755 2,555 87.6% 52.4% NA 28.3% 27.9% NM 5.7x 4.5x 3.7x NM NM

Ebix, Inc. EBIX 2,769 2,493 96.8% 38.9% 366.5% 17.6% 25.5% 35.5% 8.2x 6.5x 5.8x 23.0x 25.3x

Qualys, Inc. QLYS 2,089 2,251 95.2% 87.5% 57.2% 15.8% 21.5% 25.4% 9.5x 7.8x 6.7x 37.3x 51.7x

Cornerstone Ondemand, Inc. CSOD 1,973 2,046 79.8% (16.5%) 0.4% 12.0% 9.9% NM 4.3x 3.9x 3.5x NM NM

Median $4,282 $4,212 89.8% 49.9% 74.9% 28.2% 30.2% 16.9% 8.1x 6.2x 5.1x 43.3x 63.4x

PAGE | 25




SMALL-CAP SAAS (Market Cap < $2Bn)



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Callidus Software Inc. CALD $1,704 $1,951 93.6% 70.5% 75.4% 21.4% 24.8% NM 7.1x 5.7x 4.7x NM NM

Alarm.com Holdings, Inc. ALRM 1,847 1,780 76.3% 35.6% NA 28.9% 19.1% 12.5% 5.8x 4.8x 4.2x 46.0x 55.8x

Coupa Software, Inc. COUP 1,460 1,719 82.8% 24.8% NA 40.1% 29.4% NM 8.5x 6.6x 5.4x NM NM

Mimecast Limited MIME 1,546 1,643 89.6% 60.2% NA 39.7% 32.1% 3.4% 6.9x 5.2x 4.3x NM NM

Q2 Holdings, Inc. QTWO 1,433 1,536 83.1% 27.7% 95.6% 33.2% 30.2% NM 7.8x 6.0x 4.8x NM NM

CyberArk Software Ltd. CYBR 1,223 1,438 74.4% (9.0%) 4.4% 20.6% 24.5% 12.0% 5.0x 4.0x 3.4x 41.6x 63.3x

Hortonworks, Inc. HDP 1,303 1,418 95.8% 142.0% (25.5%) 42.2% 36.8% NM 5.5x 4.0x 3.2x NM NM

Fiv e9, Inc. FIVN 1,462 1,385 89.5% 75.3% 455.4% 22.8% 22.4% 1.9% 7.7x 6.3x 5.3x NM NM

MINDBODY, Inc. MB 1,204 1,297 84.0% 43.0% NA 32.6% 33.1% NM 7.0x 5.3x 4.2x NM NM

Yext, Inc. YEXT-US 973 1,098 79.6% NA NA 38.5% 77.3% NM 7.8x 4.4x 3.3x NM NM

Instructure, Inc. INST 911 986 90.4% 69.3% NA 44.9% 36.8% NM 6.2x 4.5x 3.6x NM NM

Benefitfocus, Inc. BNFT 907 842 72.8% (9.1%) (17.8%) 12.3% 10.8% 0.2% 3.6x 3.2x 2.8x NM NM

SPS Commerce, Inc. SPSC 682 837 66.9% (30.5%) (14.2%) 15.6% 14.3% 10.9% 3.2x 2.8x 2.5x 29.4x 98.9x

Rapid7 Inc. RPD 724 819 92.1% 53.3% NA 29.6% 26.5% NM 3.8x 3.0x 2.6x NM NM

Workiv a, Inc. WK 837 672 90.3% 56.8% 59.7% 16.0% 17.8% NM 4.2x 3.6x 3.1x NM NM

AppFolio Inc APPF 1,418 602 79.4% 74.0% NA 36.7% 34.9% 13.3% 10.6x 7.8x 6.1x 79.5x 102.9x

Apptio, Inc. APTI 808 543 92.3% 26.9% NA 19.4% 18.7% NM 4.5x 3.8x 3.3x NM NM

Model N, Inc. MODN 451 462 94.0% 78.0% 48.3% 22.6% 17.2% NM 3.4x 2.9x 2.6x NM NM

Castlight Health, Inc. CSLT 415 303 73.5% (24.2%) (67.9%) 33.5% 31.6% NM 3.3x 2.5x 2.1x NM NM

Amber Road, Inc. AMBR 216 199 74.7% (19.2%) (28.2%) 9.1% 11.7% NM 2.8x 2.5x 2.2x NM NM

Median $1,089 $1,042 83.5% 43.0% 4.4% 29.2% 25.6% 10.9% 5.6x 4.2x 3.4x 43.8x 81.1x

PAGE | 26




DATA & ANALYTICS

IT OPERATIONS MANAGEMENT



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Verisk Analytics Inc VRSK $18,840 $15,873 97.4% 18.3% 49.9% 1.5% 10.7% 48.4% 9.1x 8.2x 7.7x 18.7x 34.7x

Splunk Inc. SPLK 10,573 11,718 97.6% 62.0% 40.5% 34.0% 32.1% NM 9.1x 6.9x 5.4x NM NM

Teradata Corporation TDC 4,539 5,034 97.8% 41.6% (12.0%) (10.7%) 0.6% 13.5% 2.1x 2.1x 2.1x 15.5x 77.4x

Tableau Software, Inc. DATA 4,554 4,340 84.1% 64.2% (18.4%) 12.7% 7.3% NM 5.2x 4.8x 4.3x NM NM

Pegasystems Inc. PEGA 3,469 3,671 72.7% 31.0% 127.0% 6.0% 10.9% 6.9% 4.3x 3.9x 3.4x 62.6x 75.6x

Verint Systems Inc. VRNT 3,104 2,667 93.6% 18.7% (28.2%) 6.2% 9.1% 13.0% 2.8x 2.6x 2.4x 21.5x NM

MicroStrategy Incorporated MSTR 863 1,236 63.8% (33.5%) (19.2%) (1.8%) (2.8%) 21.0% 1.7x 1.8x 1.8x 8.1x 16.5x

Talend SA TLND 993 1,092 80.9% 68.8% NA 41.4% 39.1% NM 7.2x 5.1x 3.9x NM NM

Inov alon Holdings, Inc. INOV 1,844 970 84.3% 45.6% NA (4.7%) 13.2% 19.7% 4.3x 3.8x 3.4x 21.7x 55.3x

PROS Holdings, Inc. PRO 933 844 86.7% 22.9% (3.7%) 4.5% 14.6% NM 5.7x 5.0x 4.3x NM NM

Median $3,286 $3,169 85.5% 36.3% (7.8%) 5.3% 10.8% 16.6% 4.8x 4.4x 3.7x 20.1x 55.3x

Serv iceNow, Inc. NOW $21,897 $22,518 99.3% 75.4% 92.2% 37.3% 41.8% NM 12.4x 8.7x 6.8x NM NM

Red Hat, Inc. RHT 21,404 21,251 91.7% 72.3% 73.7% 19.4% 18.2% 19.1% 7.7x 6.5x 5.8x 40.4x 63.0x

Arista Networks, Inc. ANET 17,382 17,221 95.9% 143.4% 287.7% 43.9% 38.3% 28.4% 11.5x 8.3x 6.9x 40.6x 45.7x

Micro Focus International plc MCRO-GB 14,628 14,857 91.3% 26.8% 102.7% 45.7% 118.7% 44.5% 7.6x 3.5x 3.4x 17.0x 85.6x

CA, Inc. CA 13,944 13,929 91.1% 4.8% 9.3% 0.4% 4.9% 35.2% 3.4x 3.3x 3.2x 9.7x 19.4x

Citrix Systems, Inc. CTXS 13,520 13,259 91.8% 23.7% 73.2% (13.5%) (2.5%) 28.1% 4.6x 4.7x 4.5x 16.3x 26.2x

VMware, Inc. VMW 44,379 12,925 96.8% 59.2% 51.9% 10.3% 12.2% 26.2% 5.8x 5.2x 4.8x 22.2x 8.9x

F5 Networks, Inc. FFIV 7,483 8,214 87.8% (9.3%) 0.6% 4.8% 3.3% 30.3% 3.6x 3.5x 3.4x 11.8x 19.5x

Software AG SOW-DE 4,189 4,299 98.7% 54.7% 130.2% 1.2% 13.9% 29.6% 4.3x 3.8x 3.7x 14.7x 27.4x

New Relic, Inc. NEWR 2,933 3,181 94.9% 104.5% 65.8% 37.8% 36.4% NM 9.6x 7.0x 5.6x NM NM

NetScout Systems, Inc. NTCT 2,690 2,653 79.1% (3.3%) (16.7%) (2.7%) 9.1% 17.6% 2.4x 2.2x 2.1x 13.8x 157.3x

Progress Software Corporation PRGS 1,991 2,035 98.7% 33.3% 57.5% (0.3%) (0.0%) 33.0% 5.0x 5.0x NM 15.1x NM

Radware Ltd. RDWR 687 844 93.4% 33.1% (11.9%) 2.2% 10.4% NM 3.4x 3.0x 2.8x NM NM

Apptio, Inc. APTI 808 543 92.3% 26.9% NA 19.4% 18.7% NM 4.5x 3.8x 3.3x NM NM

Median $10,501 $10,569 92.8% 33.2% 65.8% 7.6% 13.0% 29.0% 4.8x 4.3x 3.7x 15.7x 27.4x

PAGE | 27






DATA STORAGE

IT SECURITY

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

NetApp, Inc. NTAP $12,379 $14,759 93.8% 56.8% 33.5% 4.2% 5.8% 18.6% 2.2x 2.1x 2.0x 11.8x 22.8x

Iron Mountain, Inc. IRM 16,642 10,617 90.8% 16.2% (2.4%) 13.8% 3.7% 31.5% 4.4x 4.2x 4.1x 13.9x 50.3x

Nutanix, Inc. NTNX 5,165 3,896 92.2% 32.8% NA 67.1% 39.1% NM 5.9x 4.2x 3.5x NM NM

Box, Inc. BOX 2,755 2,555 87.6% 52.4% NA 28.3% 27.9% NM 5.7x 4.5x 3.7x NM NM

CommVault Systems, Inc. CVLT 1,899 2,425 81.3% 2.1% 1.6% 7.3% 12.8% 0.7% 2.8x 2.5x 2.3x NM NM

Pure Storage, Inc. PSTG 2,831 1,789 82.3% 40.2% NA 40.3% 43.1% NM 3.1x 2.2x 1.7x NM NM

Carbonite, Inc. CARB 689 701 93.0% 53.0% 75.9% 22.6% 15.4% 4.9% 3.0x 2.6x 2.4x 60.3x NM

Median $2,831 $2,555 90.8% 40.2% 17.5% 22.6% 15.4% 11.8% 3.1x 2.6x 2.4x 13.9x 36.6x

Cisco Systems, Inc. CSCO $155,605 $189,341 98.2% 26.7% 37.7% (2.3%) 2.3% 30.5% 3.3x 3.2x 3.1x 10.7x 19.6x

Symantec Corporation SYMC 21,440 17,397 82.0% 17.5% 9.4% 88.7% 13.0% 18.6% 4.7x 4.2x 4.0x 25.3x NM

Check Point Software Ltd. CHKP 15,707 16,936 86.9% 22.7% 31.9% 7.2% 7.5% 49.8% 8.6x 8.0x 7.5x 17.2x 21.6x

Palo Alto Networks, Inc. PANW 12,242 13,318 91.9% 15.9% 18.3% 26.3% 25.3% NM 6.6x 5.2x 4.4x NM NM

VeriSign, Inc. VRSN 14,240 11,280 96.8% 50.4% 100.8% 2.4% 4.5% 65.0% 12.3x 11.8x 11.3x 18.9x 24.5x

Trend Micro Incorporated 4704-JP 6,611 7,958 96.7% 59.2% 103.6% 20.2% 5.0% 35.8% 5.0x 4.7x 4.5x 13.9x 28.0x

Fortinet, Inc. FTNT 6,544 7,598 95.7% 45.1% 42.5% 19.2% 17.6% 11.7% 4.5x 3.9x 3.4x 38.8x 88.8x

Proofpoint, Inc. PFPT 3,866 3,982 90.7% 25.7% 84.1% 38.7% 37.9% NM 8.1x 5.9x 4.6x NM NM

FireEye, Inc. FEYE 2,443 2,621 78.9% 19.3% (55.0%) 2.7% 9.0% NM 3.3x 3.1x 2.8x NM NM

Qualys, Inc. QLYS 2,089 2,251 95.2% 87.5% 57.2% 15.8% 21.5% 25.4% 9.5x 7.8x 6.7x 37.3x 51.7x

Mimecast Limited MIME 1,546 1,643 89.6% 60.2% NA 39.7% 32.1% 3.4% 6.9x 5.2x 4.3x NM NM

CyberArk Software Ltd. CYBR 1,223 1,438 74.4% (9.0%) 4.4% 20.6% 24.5% 12.0% 5.0x 4.0x 3.4x 41.6x 63.3x

Varonis Systems, Inc. VRNS 1,211 1,352 90.6% 81.2% 47.9% 29.0% 26.0% NM 6.1x 4.8x 4.1x NM NM

SailPoint Technologies SAIL-US 1,572 1,241 88.6% NA NA 70.6% 32.9% 11.0% 9.7x 7.3x 5.8x 88.0x NM

ForeScout Technologies, Inc. FSCT-US 1,444 1,209 97.9% NA NA 32.5% 55.8% NM 8.7x 5.5x 4.6x NM NM

Rapid7 Inc. RPD 724 819 92.1% 53.3% NA 29.6% 26.5% NM 3.8x 3.0x 2.6x NM NM

Cheetah Mobile, Inc. CMCM 1,520 502 87.6% 26.4% (20.1%) 5.4% 16.5% 1.4% 2.1x 1.8x 1.6x 153.5x 9.4x

SecureWorks Corp. SCWX 613 98 68.3% (16.2%) NA 15.2% 7.4% NM 1.3x 1.2x 1.1x NM NM

Median $2,266 $2,436 90.6% 26.5% 37.7% 20.4% 19.5% 18.6% 5.5x 4.8x 4.2x 31.3x 26.2x

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1. FactSet.

2. PNC Capital Markets.

3. S&P LCD stats.

4. PitchBook.

5. HW&Co. proprietary transaction information.

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