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INTERNET & DIGITAL MEDIASECTOR REPORT

Q4 2019

2

EXECUTIVE SUMMARYQ4 2019 Internet & Digital Media Wrap-Up

Select Q4 Active Buyers Select Q4 Active Investors

» Internet & Digital Media continues to be a highly active category, with ~$24.3Bn in M&A volume and ~$12.7Bn in financing volume during Q4 ’19

- 20 M&A transactions in Q4 ‘19 as varied as: PayPay / Honey (eCommerce); Platinum Equity / Cision (PR Software and Services); Thoma Bravo / Instructure (Learning Management Software)

- 706 financings across all stages -- from seed to LBO – in Q4 ’19 consistent with the similar volume in Q4 ’18

» High-profile, billion dollar M&A deals abounded in Q4 2019, with both strategic buyers and financial sponsors driving deal activity, as they look to

build out their offerings / remain competitive and deploy capital / back innovators, respectively

» At the end of 2019, a record 199 VC-backed private companies are valued at greater than $1BN, compared to just 149 a year ago; these unicorns

are comprised heavily of consumer-facing start-ups who raised billions in 2019, such as Airbnb, SoFi, and Juul Labs

» Q4 public capital markets activity saw 20 VC-backed technology IPOs, a slight drop from the 22 that occurred in Q3. Overall, technology IPOs

experienced an increase in 2019 compared to 2018

» From a trading perspective, Marketplace companies lead the public company pack, trading at 7.0x EV / ’19E Revenue and 20.9x EV/ ’19E EBITDA

on average

Notes:Sources: Capital IQ, PitchBook, PriceWaterhouseCoopers / NVCA MoneyTree Report, Wall Street Research.

3

GCA OVERVIEWStrong Sector Expertise across Internet & Digital Media Team

MEDIA / ENTERTAINMENT

SEARCH & ONLINE ADVERTISING

INTERNET CONTENT

INTERNET COMMERCE

MARKETPLACE / NEW TECHNOLOGY

PUBLISHING

GAMING

SOCIAL MEDIA

HR TECHNOLOGY

DIVERSIFIED MARKETING TECHNOLOGY

RECENT TRANSACTIONS

REPRESENTATIVE FOCUS AREAS GCA SECTOR TEAM

JOHN LAMBROSManaging [email protected]+1 (212) 999-7083

JOSHUA WEPMANManaging [email protected]+1 (212) 999-7092

KEVIN WALSHManaging [email protected]+1 (415) 318-3629

CATHRYN McCARTHYVice [email protected]+1 (212) 999-7073

4

GCA OVERVIEWSelected Recent Internet & Digital Media Transactions

Notes:1) The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Corporation, and GCA Altium, have advised on.

5

SECTION IGCA INTERNET & DIGITAL MEDIA: 2019 YEAR IN REVIEW

6

GCA INTERNET & DIGITAL MEDIA: 2019 YEAR IN REVIEWSelected Transactions Completed in 2019

7

GCA INTERNET & DIGITAL MEDIA: 2019 YEAR IN REVIEWWe Advised Clients All Over the World

TOSHO PRINTING

CO., LTD.

Of these deals, ~65% were M&A while 35%

were private capital

~20% of transactions included a cross-border element

29 transactionscompleted in the Internet / Digital

Media space

~50% of these deals

had strategic buyers

while the other 50% involved financial

sponsors

$1.3BN+worth of M&A and

private capital raised for Internet / Digital

Media clients (1)

Notes: Logos represent the headquarters of target companies in the Internet & Digital Media space involved in GCA-ran processes in 2019.1) Represents only disclosed transaction values.

HOSPITALITY PAYMENTS APP

FASHION CONTENT MARKETER

BABY CAREECOMMERCE

8

GCA INTERNET & DIGITAL MEDIA: 2019 YEAR IN REVIEWSelected Highlighted Transactions

From international mobile marketing companies to global digital

brands, GCA worked with leading companies throughout 2019.

“CVC has a track record of successfully partnering with companies to drive global growth…They are the perfect partner for this next phase in our journey as we continue to scale internationally…”

- Tomar Bar-Zeev, CEO, IronSource

“The combination with Oracle validates CrowdTwist’s world-class technology, employees and customers. We could not have found a more compelling partner to advance our vision of customer loyalty at scale.”

- Scott Matthews, CEO, CrowdTwist

Minority investment in

November 2019~$400MM

October 2019Undisclosed Amount

Acquired by

“Following a successful market entry in the UK last autumn, we want to continue to grow internationally and are delighted to have found the ideal partner for this in the industrial holding Armira.”

- Patric Fassbender, Co-Founder, Tonies

October 2019~$300MM

Acquired by

“This injection of new capital unlocks tremendous growth opportunities, allowing us to reach new markets, create new retail channels, and invest in technologies that will serve our community better.”

- Amanda Hesser, CEO, Food52

September 2019$83MM

Majority investment by

9

GCA INTERNET & DIGITAL MEDIA: 2019 YEAR IN REVIEWGlobal Trends Shaping the Industry

CONTINUED RISE OF ARTIFICIAL INTELLIGENCE» AI is helping companies analyze consumer behavior and search patterns and use data from social media and online

platforms to help businesses understand how customers find their products and services» Consumer-facing companies are using AI to transform their basic communication, product recommendations, content

creation, email personalization, eCommerce transactions, and more

IMPORTANCE OF PERSONALIZATION» Consumers are far more likely to engage with a brand that offers personalized experiences compared to generic

ones» Personalization is increasingly being adopted to build loyalty and reduce churn, understand customer needs,

convert visitors, and upsell / cross-sell products

USER-GENERATED CONTENT 2.0» Companies are increasingly opting for both interactive and user-generated content as a means to build stronger

connections with customers» Seen as more engaging and trustworthy than traditional, company-created text-based content, quizzes and polls,

AR advertising, testimonials, and customer videos are becoming especially popular as a means to reach younger target audiences

EMPHASIS ON CONVERSATIONAL MARKETING» With consumers demanding “immediate” responses when doing research on products and services, businesses are

turning towards conversational marketing to facilitate a one-to-one, real-time connection between themselves and their customers

» Available across multiple channels, customers are better able to engage with brands on the devices, platforms, and time schedules at their own convenience

» Underscoring this trend, “chatbots” are becoming a must for most businesses

CAPITALIZING ON MICRO-MOMENTS» Internet & Digital Media companies are increasingly rethinking the linear marketing funnel of awareness, consideration, and decision» Instead, many businesses are opting to focus on building and achieving micro-moments, an intent-rich moment when a person turns to a

device to act (“I want to know, go, do, or buy”)

10

SECTION IIQ4 MARKET UPDATE

11

Select Q4 '19 Financing Transactions Quarterly Financing Volume ($Bn) (1)(2) Quarterly M&A Volume ($Bn) (4) Select Q4 '19 M&A Transactions

Company Amount ($MM) Acquirer Target EV ($Bn)

$500 $4.7

$400 $4.1

$319 $4.0

$275 $3.2

$254 $2.9

$250 $2.0

$200 $0.7

$200 $0.2

Last 12 Months Digital Media & Internet Price Performance (5)

2,891

2019 Financing Transactions (1)(2)(3)

$54.1 Billion

2019 Financing Volume (1)(2)(3)

$96.4 Billion

2019 M&A Volume (3)(4)

62

2019 M&A Transactions (3)(4)

745

796 783

671690

710

787

688706

600

650

700

750

800

850

$12 $13 $12$15

$13 $13$15

$13 $13

$0

$5

$10

$15

$20 $65

$13 $14$28 $30

$17 $20

$35$24

$0

$20

$40

$60

$80

1417 16

2532

1611

1520

0

10

20

30

40

90.0%

105.0%

120.0%

135.0%

150.0%

165.0%

12/31/2018 2/28/2019 4/30/2019 6/30/2019 8/31/2019 10/31/2019 12/31/2019

DEAL DASHBOARD

Notes:Sources: Capital IQ, PitchBook, PriceWaterhouseCoopers / NVCA MoneyTree Report.1) Criteria based on U.S. internet/mobile/telecommunications Series A and subsequent rounds of financings. 2) Financings include Venture and Private Equity Growth/Expansion activity for U.S. internet/mobile/telecommunications sectors. 3) Figures reflect total transactions and volume through end of most recent quarter. 4) Criteria based on U.S. target internet/digital media M&A deals with transaction enterprise values greater than $50MM. 5) Details on companies included can be found on the following page.

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count

Internet Content Gaming PublishersDiversified Marketing

Marketplace / New Technology

Social Media Internet CommerceSearch / Online

AdvertisingMedia /

Entertainment

42.6%33.8%

54.8%

31.2%

29.4%

22.2%

30.3%

25.2%22.5%

12

20.9x19.7x

17.7x16.5x

14.2x 14.1x 13.3x11.5x 10.7x

Marketplace / NewEconomy

Internet Content Internet Commerce Search / Online Adv. Social Media Publishers Gaming DiversifiedMarketing

Media /Entertainment

7.0x6.3x

5.2x

4.1x3.7x 3.5x

2.8x 2.5x 2.4x

Marketplace / NewEconomy

Social Media Search / Online Adv. Internet Content DiversifiedMarketing

Gaming Publishers Media /Entertainment

Internet Commerce

Gaming Publishers Internet Commerce

Internet Content

Diversified Marketing

Search / Online Adv.

Marketplace / New

Economy

ENTERPRISE VALUE / 2019E REVENUE ENTERPRISE VALUE / 2019E EBITDA

INTERNET & DIGITAL MEDIA ECOSYSTEM

Social Media

Media / Entertainment

Social Media

Media / Entertainment


Internet Content

GamingSearch / Online Adv.

Internet Commerce

Marketplace / New

Economy

Publishers

2019E Revenue / 2019E EBITDA Multiple

3.5x / 13.3x7.0x / 20.9x 3.7x / 11.5x

SocialMedia

2.4x / 17.7x 2.8x / 14.1x

Gaming

6.3x / 14.2x 4.1x / 19.7x

Internet Commerce

2.5 / 10.7x5.2x / 16.5x

Marketplace / New Technology

PublishersMedia /

EntertainmentDiversified Marketing

Internet Content

Search / Online Advertisement

PUBLIC COMPANY VALUATION

Notes:Source: Capital IQ. Multiples <0 and >50 considered NM. Multiples represent mean value of sector group.

13

$65.5

$12.6 $14.0

$27.5 $29.9

$17.3 $20.3

$34.5

$24.3

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Q4 2019 M&A DEAL DASHBOARD

($BN) Number of Deals M&A Volume

QUARTERLY M&A ACTIVITY(1)(2) SELECT Q4 2019 M&A TRANSACTIONS

($MM)

Ann. Date Target Acquirer Enterprise Value

12/20 $691

12/19 $441

12/17 $4,677

12/16 $3,197

12/4 $2,010

11/25 $4,050

11/20 $4,000

11/18 $380

10/22 $2,878

10/22 $215

10/21 $150

Notes:Sources: Capital IQ, PitchBook, Wall Street Estimates. 1) Criteria based on U.S. target internet/digital media M&A deals with transaction enterprise values greater than $50MM. 2) Details on companies included can be found in the appendix.

14

1716

25

32

16

11

15

20

14

$12.3 $12.7

$12.3

$14.8

$12.6 $13.4

$15.1

$12.9 $12.7

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

Q4 2019 FINANCING DEAL DASHBOARD

($BN) Number of Deals Financing Volume

QUARTERLY FINANCING ACTIVITY(1)(2)(3) SELECT Q4 2019 FINANCING TRANSACTIONS

($MM)

Ann. Date Company Selected Investors Amount Invested

12/6 $254

12/5 $500

12/4 $200

11/20 $400

11/14 $200

11/13 $157

11/5 $165

10/29 $200

10/29 $319

10/7 $250

10/3 $275

Notes:Sources: Capital IQ, PitchBook, PriceWaterhouseCoopers / NVCA MoneyTree Report. 1) Criteria based on U.S. internet/mobile/telecommunications Series A and subsequent rounds of financings. 2) Financings include Venture and Private Equity Growth/Expansion activity for U.S. internet/mobile/telecommunications sectors. 3) Figures reflect total transactions and volume through end of most recent quarter.

671

745

796783

690

710

787

688

706

15

APPENDIX

16

APPENDIX – PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM.

($MM), Except Per Share DataStock Trading Statistics Operating Metrics

Price LTM Price Range Equity Cash & Net Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin

Company 12/31/19 Low High Value Equiv. Debt Value CY 18A CY 19E CY 20E CY 18A CY 19E CY 20E 18A/17A 19E/18A 20E/19E CY 18A CY 19E CY 20E

Marketplace / New Economy

Uber Technologies, Inc. $29.74 $25.58 $47.08 $50,731 $12,650 ($5,074) $45,657 4.1x 3.2x 2.5x NM NM NM 42.1% 24.7% 29.5% (21.5%) (20.2%) (9.7%)

Shopify Inc. $397.58 $129.48 $416.60 $46,086 $2,667 ($2,556) $43,530 40.6x 28.0x 20.6x NM NM NM 59.4% 44.9% 36.1% (6.4%) 4.3% 5.0%

MercadoLibre, Inc. $571.94 $282.88 $698.98 $28,431 $2,775 ($1,866) $26,565 18.5x 11.7x 8.6x NM NM NM 18.3% 57.9% 35.7% (1.6%) (3.4%) (1.8%)

Copart, Inc. $90.94 $46.65 $92.41 $21,139 $181 $360 $21,499 11.5x 9.7x 8.7x 30.1x 23.7x 20.9x 14.9% 18.8% 11.0% 38.1% 40.8% 41.6%

Lyft, Inc. $43.02 $37.07 $88.60 $12,807 $3,116 ($2,668) $10,138 4.7x 2.8x 2.2x NM NM NM 103.5% 66.1% 28.5% (44.3%) (20.3%) (11.1%)

Peloton Interactive, Inc. $28.40 $20.46 $37.02 $7,967 $1,476 ($993) $6,974 NA 5.8x 3.9x NA NA NM NA NA 47.5% NA - (10.4%)

Just Eat plc $11.06 $7.54 $11.42 $7,521 $221 $82 $7,603 7.7x 5.6x 4.5x 35.8x 31.5x 25.4x 34.5% 37.4% 23.5% 21.4% 17.7% 17.7%

Etsy, Inc. $44.30 $39.76 $73.35 $5,249 $852 $16 $5,265 8.7x 6.5x 5.1x NM 28.6x 22.9x 36.8% 34.6% 26.2% 16.2% 22.6% 22.4%

TripAdvisor, Inc. $30.38 $27.66 $60.90 $4,235 $933 ($764) $3,471 2.1x 2.2x 2.1x 14.6x 8.0x 7.5x 3.8% (3.3%) 4.4% 14.7% 27.9% 28.4%

LendingTree, Inc. $303.44 $211.11 $434.94 $3,944 $50 $326 $4,270 5.6x 3.8x 3.3x 42.6x 21.1x 18.3x 23.8% 45.6% 16.2% 13.1% 18.2% 18.0%

CarGurus, Inc. $35.18 $28.65 $45.25 $3,938 $164 ($99) $3,840 8.5x 6.6x 5.4x NM NM 38.3x 43.3% 28.9% 21.0% 6.2% 12.4% 14.2%

Farfetch Limited $10.35 $7.43 $31.60 $3,104 $318 ($218) $2,886 4.8x 3.0x 2.0x NM NM NM 56.1% 61.9% 51.3% (27.3%) (13.1%) (4.2%)

Moneysupermarket.com Group PLC $4.38 $3.61 $5.56 $2,349 $16 $16 $2,365 5.2x 4.6x 4.3x 15.8x 12.6x 11.9x 1.7% 13.7% 6.1% 33.0% 36.3% 36.3%

The RealReal, Inc. $18.85 $12.58 $30.05 $1,617 $370 ($370) $1,247 6.0x 4.0x 3.0x NM NM NM 54.9% 50.4% 32.1% (31.5%) (23.5%) (15.8%)

Mean 9.8x 7.0x 5.5x 27.8x 20.9x 20.8x 37.9% 37.0% 26.4% 0.8% 7.1% 9.3%Median 6.0x 5.1x 4.1x 30.1x 22.4x 20.9x 36.8% 37.4% 27.4% 6.2% 8.4% 9.6%

Social Media & New Platform

Facebook, Inc. $205.25 $128.56 $208.93 $585,321 $52,269 ($43,137) $542,184 9.7x 7.7x 6.3x 18.6x 14.4x 12.5x 37.4% 26.2% 21.8% 52.3% 53.3% 50.7%

Spotify Technology S.A. $149.55 $108.59 $161.38 $27,475 $1,554 ($878) $26,598 4.4x 3.5x 2.8x NM NM NM 22.6% 26.8% 24.3% (0.3%) 0.8% 0.8%

Twitter, Inc. $32.05 $27.87 $45.86 $24,834 $5,816 ($3,271) $21,563 7.1x 6.3x 5.4x 28.0x 17.6x 15.4x 24.5% 13.3% 14.8% 25.4% 35.6% 35.3%

Snap Inc. $16.33 $5.35 $18.36 $22,862 $2,261 ($1,046) $21,816 18.5x 12.7x 9.3x NM NM NM 43.1% 45.4% 36.5% (97.1%) (12.9%) 4.4%

LINE Corporation $49.23 $26.79 $49.69 $11,792 $2,032 $34 $11,825 6.3x 5.6x 4.7x NM NM NM 27.3% 12.8% 16.9% (0.2%) (6.3%) 7.6%

Yelp Inc. $34.83 $30.12 $40.99 $2,445 $382 ($139) $2,306 2.4x 2.3x 2.0x 46.4x 10.6x 8.7x 10.8% 8.1% 11.8% 5.3% 21.4% 23.3%

Mean 8.1x 6.3x 5.1x 31.0x 14.2x 12.2x 27.6% 22.1% 21.0% (2.4%) 15.3% 20.3%Median 6.7x 5.9x 5.1x 28.0x 14.4x 12.5x 25.9% 19.8% 19.3% 2.5% 11.1% 15.4%

Search / Online Advertising

Microsoft Corporation $157.70 $97.20 $159.55 $1,203,063 $136,609 ($51,039) $1,152,024 9.7x 8.7x 7.8x 23.2x 19.4x 17.7x 15.8% 12.3% 11.3% 41.9% 44.7% 43.9%

Alphabet Inc. $1,339.39 $1,022.37 $1,367.07 $923,760 $121,177 ($106,304) $817,456 6.0x 5.0x 4.3x 20.2x 13.8x 11.9x 23.4% 18.9% 17.8% 29.5% 36.3% 36.0%

Yandex N.V. $43.49 $26.77 $44.28 $14,295 $1,363 ($1,238) $13,057 7.1x 4.6x 3.6x 28.2x 15.5x 11.5x 12.4% 54.2% 29.2% 25.2% 29.6% 30.9%

The Trade Desk, Inc. $259.78 $109.38 $289.51 $11,725 $297 ($113) $11,612 24.3x 17.6x 13.5x NM NM 43.5x 54.9% 38.0% 30.6% 24.2% 31.8% 31.0%

Criteo S.A. $17.33 $15.90 $30.85 $1,110 $409 ($220) $890 0.4x 0.4x 0.4x 2.9x 2.9x 3.0x 27.7% (1.4%) 6.9% 13.5% 13.6% 12.4%

QuinStreet, Inc. $15.31 $10.15 $20.02 $784 $71 ($55) $729 1.6x 1.5x 1.4x 27.8x 21.5x 12.5x 33.0% 7.3% 11.5% 5.9% 7.1% 10.9%

The Rubicon Project, Inc. $8.16 $3.60 $10.85 $433 $85 ($62) $371 3.0x 2.4x 2.1x NM 15.5x 10.9x (19.8%) 24.8% 14.2% (25.7%) 15.4% 19.2%

Marchex, Inc. $3.78 $2.61 $5.57 $160 $52 ($45) $115 1.3x 1.1x 1.1x NM 27.0x 31.9x (5.6%) 21.4% 0.9% (1.7%) 4.1% 3.4%


17






Internet Content

IAC/InterActiveCorp $249.11 $173.43 $268.72 $21,075 $3,103 $254 $21,329 5.0x 4.5x 3.9x 26.0x 21.5x 17.8x 28.9% 11.9% 14.3% 19.2% 20.8% 21.9%

GoDaddy Inc. $67.92 $59.82 $82.30 $11,597 $990 $1,693 $13,290 5.0x 4.5x 4.0x 35.7x 19.0x 16.2x 19.2% 12.2% 11.0% 14.0% 23.4% 24.8%

Zillow Group, Inc. $45.74 $28.12 $50.99 $9,489 $2,324 $125 $9,614 7.2x 3.7x 2.1x NM NM NM 23.8% 96.0% 74.5% 1.5% 0.4% (0.9%)

TEGNA Inc. $16.69 $10.63 $17.24 $3,620 $9 $4,282 $7,902 3.6x 3.5x 2.8x 10.1x 11.5x 8.0x 16.0% 3.1% 25.3% 35.5% 30.2% 34.9%

eHealth, Inc. $96.08 $36.00 $112.22 $2,219 $88 ($50) $2,170 9.5x 5.5x 4.4x NM 30.2x 20.7x 28.5% 74.9% 23.9% 9.4% 18.1% 21.3%

TechTarget, Inc. $26.10 $11.60 $30.00 $731 $52 $2 $733 6.0x 5.5x 5.0x 34.6x 17.6x 15.3x 11.8% 10.2% 9.7% 17.4% 31.1% 32.6%

Care.com, Inc. $15.03 $7.61 $25.81 $500 $130 ($99) $401 2.1x 1.9x 1.8x 29.0x 18.4x 17.8x 10.4% 8.4% 7.3% 7.2% 10.4% 10.1%


Internet Commerce

Amazon.com, Inc. $1,847.84 $1,460.93 $2,035.80 $916,154 $43,401 $31,190 $947,344 4.1x 3.4x 2.9x 34.1x 22.8x 18.9x 30.9% 19.9% 18.6% 11.9% 14.9% 15.1%

Alibaba Group Holding Limited $212.10 $129.83 $218.11 $569,006 $33,717 ($10,656) $558,350 11.1x 8.0x 6.2x 43.1x 25.0x 19.7x 44.0% 39.2% 29.8% 25.8% 31.9% 31.2%

Netflix, Inc. $323.57 $252.28 $385.99 $141,805 $4,435 $9,104 $150,909 9.6x 7.5x 6.2x NM 47.9x 33.5x 35.1% 27.5% 21.3% 10.7% 15.6% 18.4%

Booking Holdings Inc. $2,053.73 $1,637.02 $2,082.67 $85,960 $7,439 $1,672 $87,632 6.0x 5.8x 5.4x 15.2x 15.0x 13.9x 14.6% 3.4% 7.7% 39.8% 38.9% 38.9%

eBay Inc. $36.11 $27.56 $42.00 $29,376 $3,086 $5,326 $34,702 3.2x 3.2x 3.2x 11.6x 9.4x 9.2x 8.3% 0.4% 1.8% 28.0% 34.1% 34.4%

Expedia Group, Inc. $108.14 $93.53 $144.00 $15,668 $4,455 $1,008 $16,676 1.5x 1.4x 1.3x 13.2x 7.9x 7.4x 11.6% 7.8% 8.3% 11.3% 17.4% 17.3%

Zalando SE $50.70 $24.49 $54.21 $12,609 $1,025 ($427) $12,182 2.0x 1.7x 1.4x NM 26.1x 22.5x 14.4% 17.5% 18.2% 3.2% 6.5% 6.3%

Chewy, Inc. $29.00 $21.68 $41.34 $11,559 $136 $67 $11,626 3.3x 2.4x 1.9x NM NM NM 67.9% 36.9% 26.2% (7.1%) (2.0%) (0.2%)

Wayfair Inc. $90.37 $78.61 $173.72 $8,416 $1,301 $1,034 $9,451 1.4x 1.0x 0.8x NM NM NM 43.6% 34.3% 27.9% (6.0%) (5.5%) (4.2%)

Grubhub Inc. $48.64 $32.11 $87.98 $4,448 $426 $186 $4,634 4.6x 3.6x 3.2x 28.7x 25.8x 38.7x 47.5% 28.7% 12.3% 16.0% 13.9% 8.2%

ASOS Plc $44.67 $26.93 $54.17 $3,738 - $110 $3,848 1.2x 1.1x 0.9x 27.4x 26.0x 15.4x 15.2% 10.1% 18.6% 4.4% 4.2% 6.0%

Qurate Retail, Inc. $8.43 $7.72 $22.29 $3,505 $605 $7,529 $11,034 0.8x 0.8x 0.8x 5.6x 5.5x 5.5x 35.2% (4.4%) (0.9%) 14.1% 14.9% 14.9%

Cimpress plc $125.77 $73.74 $145.09 $3,414 $31 $1,411 $4,825 1.8x 1.7x 1.7x 17.9x 10.9x 11.1x 9.9% 4.8% 3.3% 10.1% 15.7% 15.0%

Stitch Fix, Inc. $25.66 $16.55 $37.72 $2,610 $297 ($143) $2,468 1.8x 1.4x 1.2x 43.8x NM NM 25.3% 26.8% 20.9% 4.1% 1.4% 2.0%

Shutterstock, Inc. $42.88 $33.26 $50.09 $1,520 $285 ($230) $1,290 2.1x 2.0x 1.9x 24.3x 12.8x 12.6x 11.9% 5.2% 5.4% 8.5% 15.4% 14.8%

Stamps.com Inc. $83.52 $32.54 $207.25 $1,426 $143 ($56) $1,370 2.3x 2.5x 2.5x 6.2x 9.4x 12.1x 25.2% (5.7%) (1.6%) 37.7% 26.3% 20.8%

Revolve Group, Inc. $18.36 $14.35 $48.36 $1,264 $51 ($51) $1,213 2.4x 2.0x 1.6x 27.2x 22.2x 15.8x 24.8% 21.5% 22.0% 9.0% 9.0% 10.4%

1-800-FLOWERS.COM, Inc. $14.50 $11.82 $21.77 $937 $34 $140 $1,076 0.9x 0.8x 0.8x 13.3x 12.2x 11.0x 4.5% 7.9% 7.8% 6.7% 6.8% 7.0%

trivago N.V. $2.62 $2.32 $6.43 $923 $224 ($114) $809 0.8x 0.9x 0.8x NM 10.7x 9.3x (15.8%) (9.5%) 4.6% (0.8%) 8.0% 8.8%

Quotient Technology Inc. $9.86 $6.92 $11.99 $877 $238 ($65) $812 2.1x 1.9x 1.7x 39.6x 18.6x 12.9x 20.1% 10.5% 13.5% 5.3% 10.2% 13.0%

Overstock.com, Inc. $7.05 $6.57 $29.75 $273 $84 ($35) $238 0.1x 0.2x 0.2x NM NM NM 4.4% (20.7%) 0.9% (10.5%) (5.5%) (2.2%)

Travelzoo $10.70 $8.72 $22.85 $125 $12 $8 $133 1.2x 1.2x 1.1x 13.5x 9.7x 8.8x 4.5% 2.0% 4.8% 8.8% 12.0% 12.6%

Blue Apron Holdings, Inc. $6.58 $6.10 $24.60 $87 $86 $69 $155 0.2x 0.3x 0.3x NM NM NM (24.2%) (31.4%) (0.9%) (11.6%) (1.8%) 0.2%


18






Gaming

Tencent Holdings Limited $48.22 $38.57 $51.41 $457,934 $28,166 $2,445 $460,379 13.5x 8.5x 6.9x 28.1x 22.9x 19.3x 14.2% 58.2% 24.2% 48.1% 37.3% 35.6%

Activision Blizzard, Inc. $59.42 $39.85 $59.75 $45,650 $4,939 ($1,989) $43,661 5.8x 6.9x 6.3x 17.4x 19.7x 16.8x 6.9% (15.1%) 8.9% 33.4% 34.8% 37.5%

NetEase, Inc. $306.64 $209.01 $325.00 $39,238 $8,587 ($6,357) $32,881 3.4x 3.6x 3.4x 22.7x 14.7x 12.7x 17.4% (5.5%) 3.4% 14.9% 24.3% 27.2%

Electronic Arts Inc. $107.51 $77.20 $108.92 $31,391 $4,883 ($3,632) $27,759 5.2x 5.2x 5.3x 16.3x 14.7x 15.7x 3.9% 1.0% (3.0%) 32.1% 35.3% 34.1%

NAVER Corporation $161.54 $92.25 $164.57 $23,496 $3,280 ($1,515) $21,981 4.4x 3.8x 3.3x 20.4x 23.3x 16.4x 14.6% 13.8% 15.4% 21.5% 16.5% 20.3%

Ncsoft Corporation $468.61 $367.69 $487.66 $9,657 $1,449 ($1,150) $8,507 5.5x 5.8x 4.0x 14.8x 17.5x 9.6x (6.4%) (5.1%) 45.0% 37.3% 33.3% 41.6%

Ubisoft Entertainment SA $69.11 $44.76 $95.99 $7,490 $1,227 $396 $7,886 NA 2.9x 3.5x NA 7.1x 6.7x NA NA (16.9%) NA 41.0% 52.4%

Zynga Inc. $6.12 $3.87 $6.65 $5,789 $1,380 ($668) $5,121 5.6x 4.0x 3.2x NM 16.7x 14.6x 5.3% 41.9% 25.3% 6.3% 23.8% 21.7%

DeNA Co., Ltd. $16.15 $14.65 $21.39 $2,198 $895 ($793) $1,404 1.2x 1.2x 1.1x 6.7x 6.7x 6.3x (7.0%) (2.9%) 10.0% 17.9% 18.4% 17.9%

GungHo Online Entertainment, Inc. $21.31 $17.67 $39.75 $1,485 $770 ($768) $717 0.9x 0.7x 0.8x 2.8x 2.4x 3.1x 2.4% 17.1% (14.1%) 30.2% 30.8% 27.7%

GREE, Inc. $4.54 $3.92 $5.13 $1,045 $785 ($785) $259 0.4x 0.4x 0.4x 3.5x 4.4x 4.1x (2.0%) (6.6%) 2.5% 11.1% 9.6% 9.8%

Glu Mobile Inc. $6.05 $4.11 $11.75 $882 $102 ($61) $821 2.2x 2.0x 1.8x NM 20.7x 20.2x 27.8% 14.0% 9.2% (0.0%) 9.5% 8.9%

Changyou.com Limited $9.79 $5.43 $22.27 $508 $248 ($248) $260 0.5x 0.6x 0.6x 1.9x 1.9x 2.1x (16.3%) (6.3%) (9.2%) 27.7% 30.6% 30.0%

Mean 4.1x 3.5x 3.1x 13.5x 13.3x 11.3x 5.1% 8.7% 7.8% 23.4% 26.5% 28.1%Median 3.9x 3.6x 3.3x 15.6x 14.7x 12.7x 4.6% (1.0%) 8.9% 24.6% 30.6% 27.7%

Media Conglomerates / Selected Entertainment

The Walt Disney Company $144.63 $105.94 $153.41 $260,681 $5,418 $41,568 $302,249 5.1x 4.0x 3.7x 17.3x 16.3x 15.6x 6.6% 26.6% 9.9% 29.4% 24.7% 23.5%

Comcast Corporation $44.97 $33.42 $47.27 $204,580 $3,507 $101,938 $306,518 3.2x 2.8x 2.7x 10.2x 8.9x 8.5x 11.1% 15.1% 5.4% 31.8% 31.5% 31.6%

Sony Corporation $68.10 $41.47 $69.06 $83,560 $6,627 $9,756 $93,315 1.4x 1.2x 1.2x 9.8x 8.2x 8.0x 4.2% 18.4% 2.7% 14.4% 14.5% 14.4%

Vivendi SA $28.98 $23.34 $29.95 $34,660 $4,845 $4,812 $39,472 2.5x 2.2x 2.1x 21.6x 16.4x 14.6x 6.2% 11.2% 4.1% 11.5% 13.5% 14.6%

ViacomCBS Inc. $41.97 $35.02 $53.71 $25,812 $196 $10,303 $36,115 2.5x 1.3x 1.2x 11.6x 6.1x 5.8x 6.0% 95.5% 5.3% 21.5% 20.9% 20.9%

Discovery, Inc. $32.74 $24.11 $33.66 $22,683 $825 $15,474 $38,157 3.8x 3.4x 3.2x 8.4x 8.1x 8.0x 53.5% 10.9% 5.6% 45.2% 42.4% 40.4%


19






Publishers

Thomson Reuters Corporation $71.62 $48.51 $74.28 $35,799 $1,201 $2,374 $38,173 6.9x 6.5x 6.1x 35.4x 25.5x 19.6x 3.9% 7.6% 5.0% 19.6% 25.3% 31.3%

Informa plc $11.35 $7.98 $11.93 $14,207 $403 $3,590 $17,797 5.9x 4.7x 4.6x 18.9x 13.4x 13.1x 27.2% 25.3% 1.7% 31.1% 35.0% 35.3%

News Corporation $14.14 $11.12 $14.66 $8,320 $1,441 $1,436 $9,756 1.1x 1.0x 1.0x 9.2x 9.1x 8.4x 19.5% 6.0% (0.1%) 11.5% 10.9% 11.9%

Pearson plc $8.44 $8.08 $13.64 $6,571 $530 $2,098 $8,669 1.6x 1.7x 1.7x 12.5x 8.9x 8.7x (13.7%) (2.2%) 0.7% 13.2% 18.9% 19.1%

The New York Times Company $32.17 $21.34 $36.25 $5,341 $661 ($351) $4,991 3.1x 2.8x 2.6x 21.6x 21.4x 19.9x 2.2% 12.8% 5.4% 14.5% 12.9% 13.2%

Lagardère SCA $21.80 $20.86 $28.35 $2,803 $1,186 $4,932 $7,735 0.9x 0.9x 0.9x 11.1x 10.0x 10.0x (2.3%) 2.5% 3.0% 8.4% 9.1% 8.8%

Meredith Corporation $32.47 $30.69 $60.95 $1,471 $27 $2,904 $4,374 2.6x 1.9x 1.4x 12.1x 10.4x 5.9x 3.9% 31.2% 37.4% 21.1% 18.7% 23.8%

Gannett Co., Inc. $6.38 $5.85 $14.11 $783 $29 $526 $1,309 0.9x NA NA 8.4x NA NA 13.7% NA NA 10.2% NA NA



Experian plc $33.80 $23.84 $34.98 $30,698 $156 $4,212 $34,910 7.3x 7.0x 6.5x 22.5x 20.6x 18.1x 6.2% 4.2% 7.3% 32.4% 33.8% 35.9%

WPP plc $14.12 $10.48 $14.32 $17,762 $2,762 $8,408 $26,170 1.3x 1.5x 1.7x 11.2x 8.6x 9.3x (6.9%) (13.0%) (8.6%) 11.8% 17.6% 17.9%

Equifax Inc. $140.12 $90.69 $148.59 $16,966 $168 $3,142 $20,108 5.9x 5.7x 5.4x 27.0x 17.1x 15.8x 1.5% 2.8% 5.7% 21.8% 33.6% 34.4%

The Interpublic Group of Companies, Inc.$23.10 $19.56 $23.98 $8,957 $521 $4,791 $13,747 1.7x 1.6x 1.6x 11.1x 9.8x 9.3x 7.5% 7.4% 1.8% 15.4% 16.3% 16.9%

Nielsen Holdings plc $20.30 $17.94 $27.57 $7,223 $389 $8,631 $15,854 2.4x 2.4x 2.4x 10.8x 8.5x 8.4x (0.9%) (0.5%) 1.6% 22.5% 28.7% 28.8%

HubSpot, Inc. $158.50 $117.77 $207.98 $6,787 $949 ($372) $6,415 12.5x 9.6x 7.7x NM NM NM 36.6% 30.5% 23.8% (6.9%) 12.5% 12.6%

Alliance Data Systems Corporation $112.20 $99.20 $182.95 $5,168 $4,513 $18,036 $23,204 3.0x 2.9x 2.8x 12.0x 11.2x 10.4x 8.1% 2.4% 5.7% 25.1% 26.3% 26.8%

Yext, Inc. $14.42 $12.83 $23.32 $1,656 $245 ($126) $1,529 6.7x 5.1x 4.0x NM NM NM 34.1% 30.4% 27.9% (30.2%) (16.6%) (9.7%)

MDC Partners Inc. $2.78 $1.65 $3.53 $200 $131 $824 $1,024 0.7x 0.7x 0.6x 7.6x 5.0x 4.6x (2.5%) 3.0% 5.5% 9.1% 13.4% 13.8%

Harte Hanks, Inc. $3.58 $2.20 $4.46 $22 $23 $18 $41 0.1x 0.1x NA 4.9x NM NA (5.1%) (14.2%) NA 2.2% (0.8%) NA


20

APPENDIX – RECENT ACQUISITIONS

Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM. Disclosed transactions with Enterprise Value <$50MM not included.(1) Multiples based on Capital IQ consensus estimates.(2) Value based on Wall Street Estimates.

($MM)

Announced Date Acquirer Target Enterprise Value EV / LTM Rev. EV / LTM EBITDA EV / NTM Rev. EV / NTM EBITDA

12/20/2019 $150 NA NA NA NA

12/20/2019 $691 2.7x NM 2.6x 27.6x

12/19/2019 $441 5.5x NM 4.8x NM

12/18/2019 $675 0.7x NM NA NA

12/18/2019 $145 5.5x NA NA NA

12/18/2019 $75 NA NA NA NA

12/17/2019 $4,677 3.7x 14.3x 3.5x 11.3x

12/16/2019 $3,197 2.5x 15.5x 2.4x 9.4x

12/5/2019 $51 NA NA NA NA

12/4/2019 $2,010 7.7x NM NM NM

11/25/2019 $4,050 3.6x NA NA NA

11/20/2019 $4,000 20.0x NA 11.4x NA

11/19/2019 $140 NA NA NA NA

(1)

(1)

(1)

(1)

(1)

(1)

(1)

(2)

21

Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.


($MM)


11/19/2019 $118 0.6x 6.4x 0.6x 5.7x

11/18/2019 $380 NA NA NA NA

10/22/2019 $2,878 3.7x 12.5x 3.5x 10.0x

10/22/2019 $215 5.4x NA NA NA

10/21/2019 $150 3.3x NA NA NA

10/16/2019 $110 NA NA NA NA

10/8/2019 $150 2.6x 14.6x NA NA

9/26/2019 $118 NA NA NA NA

9/24/2019 $100 NA NA NA NA

9/24/2019 $1,000 NA NA NA NA

9/5/2019 $3,500 NA NA NA NA

9/2/2019 $152 1.9x NA NA NA

8/23/2019 $615 NA NA NA NA

MJR Theatres(1)

(1)

(1)

(1)

22


Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM. Disclosed transactions with Enterprise Value <$50MM not included.(1) Multiples based on Capital IQ consensus estimates.(2) Value based on Wall Street Estimates.

($MM)


8/22/2019 $4,535 3.8x 37.0x 3.2x 15.2x

8/13/2019 $20,947 1.6x 6.7x 1.5x 6.9x

8/8/2019 $92 NA NA NA NA

8/5/2019 $68 NA NA NA NA

8/5/2019 $2,296 0.8x 7.9x 0.8x 7.9x

7/29/2019 $66 1.9x NA NA NA

7/26/2019 $906 3.5x 15.7x 3.4x 11.1x

7/24/2019 $53 1.6x 17.7x NA NA

7/1/2019 $79 NA NA NA NA

6/24/2019 $200 NA NA NA NA

6/24/2019 $150 NA NA NA NA

6/11/2019 $405 9.5x NA NA NA

6/6/2019 $2,600 28.9x NA 17.3x NA

(2)

(2)

(1)

(1)

(1)

(1)

(1)

(1)

23


Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Value based on Wall Street Estimates.

($MM)


6/4/2019 $1,193 3.7x 32.9x 3.5x 17.3x

6/3/2019 $120 NA NA NA NA

5/3/2019 $10,600 2.8x NA NA NA

4/30/2019 $200 NA NA NA NA

4/17/2019 $262 NA NA NA NA

4/14/2019 $4,400 2.3x 8.2x NA NA

4/3/2019 $207 NA NA NA NA

3/26/2019 $56 NA NA NA NA

3/26/2019 $3,100 NA NA NA NA

3/25/2019 $300 NA NA NA NA

3/21/2019 $265 NA NA NA NA

3/15/2019 $60 2.5x NA NA NA

3/10/2019 $300 10.3x NM NA NA

(2)

(1)

(1)

(1)

24


Notes:Sources: Capital IQ, Wall Street Estimates. Multiples <0 and >50 considered NM. Disclosed transactions with Enterprise Value <$50MM not included. (1) Multiples based on Capital IQ consensus estimates.(2) Value based on Wall Street Estimates.

($MM)


3/1/2019 $121 7.4x 14.7x NA NA

2/12/2019 $199 NA NA NA NA

2/11/2019 $767 7.1x NM 6.1x 34.0x

2/6/2019 $343 NA NA NA NA

2/4/2019 $10,713 9.4x NM 8.2x 34.4x

2/1/2019 $185 2.6x NA NA NA

1/30/2019 $163 0.5x 10.7x 0.4x 3.3x

1/23/2019 $221 8.7x NA NA NA

1/22/2019 $340 4.8x NA NA NA

1/2/2019 $157 10.4x NA NA NA

12/24/2018 $1,829 8.0x NM 6.5x NM

12/21/2018 $105 6.3x 8.8x NA NA

12/17/2018 $65 0.8x NA NA NA

(2)

(1)

(2)

(2)

(2)

(1)

(1)

(1)

(2)

(1)

(1)

(1)

25

APPENDIX – IPOS IN PUBLIC REGISTRATION

Notes:Sources: Capital IQ, SEC.gov.

($MM)

Offering Amounts $10MM or Greater

Primary Initial Initial Offering LTM

Issuer Industry Filing Date Amount Description Revenue EBIT % Adj. EBITDA

Entertainment 10/31/19 $29

Tapinator develops and publishes mobile

games and applications on the iOS, Google

Play, and Amazon platforms in North America,

Europe, and Asia

$4 NM NM

Entertainment 10/11/19 $10

Moving iMage designs and manufactures

proprietary and custom designed equipment

and other off-the-shelf cinema products for

cinema requirements in the United States and

internationally

$20 NM NM

Application Software 02/14/19 $800

Alight Inc. develops cloud-based human capital

solutions software. Its software includes health

solutions that enable employees to enroll in

and manage their medical, dental, and

voluntary benefits

$2,378 13% $536

Advertising 01/14/19 $57

PCI Media offers 3D animation, innovative

visual effects, and digital content such as short-

themed branded films, ads, and site specific

presentations

$57 NM NM

26

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GCA is a global investment bank that provides strategic M&A, capital markets and private funds advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 450 professionals in 23 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks.

www.gcaglobal.com

This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision.

DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any trademark owner but may provide financial services to one or more trademark owners or their affiliates.

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