Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co.is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
www.harriswilliams.com
TECHNOLOGY, MEDIA & TELECOMQUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
www.harriswilliams.de
Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales undercompany number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze, and Mr. Aadil Khan, authorised and regulated by the Financial Conduct Authority.
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 businessaddress at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
CONTENTS
IDM OVERVIEW
WHAT WE’RE READING
SELECT M&A TRANSACTIONS – 3Q 2016
IDM M&A ACTIVITY
IDM SECTOR OVERVIEWS
IDM PRIVATE PLACEMENTS OVERVIEW
IDM PUBLIC COMPARABLES OVERVIEW
TECHNOLOGY IPO OVERVIEW
DEBT MARKET OVERVIEW
APPENDIX: PUBLIC COMPARABLES DETAIL
TMT CONTACTS
UNITED STATES
Jeff BistrongManaging [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
HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS
SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS
11
HW&Co. OfficeNetwork Office
SOFTWARE / SAAS
Enterprise Software
Data and Analytics
Infrastructure andSecurity Software
IT and Tech-enabledServices
Data Center andManaged Services
INTERNET & DIGITAL MEDIA
AdTech and MarketingSolutions
Data and InformationServices
eCommerce
Media, Content, andGaming
Education
Energy, Power, andInfrastructure
Fintech
Healthcare IT
Public Sector and Non-Profit
Supply Chain, Transportation,and Logistics
TMT VERTICAL FOCUS AREAS
Manufacturing
Professional Services
Approximately 250professionals across sevenoffices in the U.S. andEurope
Strategic relationships inIndia and China
10 industry groups
KEY FACTS
has been acquired byhas been acquired byhas been
recapitalized by has been acquired by has been acquired by
Baarsma B2C trades as:
has been acquired byhas been acquired by has been acquired bypending
recapitalization byhas acquiredhas been
recapitalized byhas received a
majority investment from
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
HARRIS WILLIAMS & CO. INTERNET & DIGITAL MEDIA (IDM) OVERVIEW
2
SECTION CONTENTS
SELECT HW&CO. INTERNET & DIGITAL MEDIA TRANSACTIONS
Harris Williams & Co.’s Technology, Media & Telecom (“TMT”) Group is dedicated to providingsuperior merger & acquisition and capital markets advisory services to market leading companies.We are pleased to issue the 3Q 2016 Internet & Digital Media Sector Update, which providescommentary and analysis on the current IDM M&A environment and market trends.
ABOUT THE SECTORPrimary IDM Contact
Mike WilkinsManaging Director575 Market Street, 31st FloorSan Francisco, California 94105Office: 415.217.3411Mobile: [email protected]
Provider of
online
community
management
solutionshas been acquired by
Leading B2C
eCommerce
wine retail
platform in
Europehas been acquired by
Cloud-based
information
and analytics
platform for
the aviation
industryhas been acquired by
Provider of
data-driven
marketing and
analytics tools
to the
automotive
industry
has been acquired by
Baarsma B2C trades as:
• Proprietary Data Networks
• Community Based Information Services
Data and Information Services
• Advertising Networks and Search Portals
• Marketing Technology
AdTech and Marketing Solutions
• Digital Media
• Online Content
• Social Media
• Gaming
Media, Content, and Gaming
• Marketplace
• Travel
• eCommerce Enablement
• Flash Sales, Promotional, and Coupons
• Vertical eCommerce
eCommerce
Leading
inbound
demand
generation
and sales
conversion
platform
has been acquired by
Provider of B2B
news,
information,
data, software
and custom
content
solutions for
the travel
industry
has been acquired by
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
WHAT WE’RE READING
3
DOUBTS ABOUT DIGITAL ADS RISE OVER NEW REVELATIONS (SEPTEMBER 23, 2016)
In recent months, several significant revelations have further called into question the integrity of both reported advertising data and the reporting party: the revelations that Facebook overestimated the average time spent watching video ads on its platform by up to 80%; that Denstu overcharged at least 111 companies for internet ads; and that ad agencies may have accepted rebates from media companies without informing clients. These developments have all served to compound a mounting concern: that marketers are wasting billions of dollars on digital advertising. In light of this concern, calls for greater accountability and transparency have resounded amongst ad buyers, with some voicing support for broader third-party verification. Without a standardized currency on which to base performance, buyers are struggling to be able to judge the efficacy of their campaigns, and as decisions around budget allocation are further contemplated, the trumpeted value of digital advertising is being re-assessed by some.
The Wall Street Journal
Verizon is stepping up a $10 billion effort to build out its digital media business. The telecom giant’s apparent plan is to acquire, develop, and distribute creative content, while using the vast data collected from mobile phones to offer highly targeted advertising to its tens of millions of users. In so doing, Verizon is hoping to present itself as a strong contender to Facebook and Google as the three vie for advertising dollars—leveraging the diverse assets gained through Verizon’s notable acquisitions of AOL and Yahoo. The company’s digital media push comes in the midst of a 5% quarterly decline in revenue despite a 44% surge in smartphone data usage, signaling heightened competition in the sector. Indeed, collective performance has plateaued across the wireless industry, prompting other carriers to similarly seek out new avenues of strategic reinvention.
The Wall Street Journal
INSIDE VERIZON’S GAMBLE ON DIGITAL MEDIA (AUGUST 2, 2016)
HOW ARTIFICIAL INTELLIGENCE IS CHANGING ONLINE RETAIL FOREVER (OCTOBER 11, 2016)
Artificial intelligence (“A.I.”) is beginning to demonstrate a potentially transformative impact on online retail. Though the full implications of the technological trend for the sector have yet to be determined, its benefits are already becoming tangible. Even now, there are areas where A.I. is showing the ability to plug seamlessly into retailers’ existing online infrastructure and provide immediate value for businesses and consumers alike. As the applications of A.I. evolve, the purchasing lifecycle from product discovery to the logistics of delivery will be meaningfully impacted—providing early-adopters with clear advantages over those who choose to ignore its utility, while simultaneously introducing consumers to a new chapter of eCommerce, one that is increasingly more personalized and intuitive.
TechCrunch
HOW THE MEDIA WILL RISE IN THE FACE OF THE DIGITAL REVOLUTION (JULY 28, 2016)
Despite suffering a continued downturn since 2007, broadcasters and publishers may have cause for optimism in the near term. It is no secret that the ‘digital age’ has beset many media institutions with a series of challenges—declining advertising revenue brought on by channel proliferation, shifting consumer preferences in favor of ‘short-form’ content, heightened overall competition resulting from decreased barriers-to-entry, and others. However, several new developments are nevertheless believed to be signs of industry revitalization: newspaper digital readership has increased significantly amongst younger viewers, subscription models are demonstrating staying power with a growing number of online subscribers, and monetized social media content has the potential to powerfully augment existing advertising revenue streams. For some publications who have struggled to adapt to digital, the past few years have been unkind. Yet, for those who have proactively reconfigured themselves, the future may be brighter than previously thought.
TechCrunch
The contrasting narratives of Twitter and Snap illuminate recent dynamics in Silicon Valley M&A and valuation. Over time, as Twitter’s potential sale played out on a public stage, speculations regarding the various causes for the slow cooling of buyer interest began to center upon several issues, with one key issue amongst all: user growth. For Twitter, though revenue has more than tripled since its IPO, user growth has waned significantly. At filing in 2013, the company posted 39% year-over-year growth whereas, in the three months ended June 30th, that number has fallen significantly to 3% year-over-year growth. On the other hand, Snap is still riding high atop its 150 million daily active users and 30% user growth rate—supporting a potential valuation of $25 billion. The careful cultivation of momentum at Twitter, once valued at $40 billion, no longer sustains the company and, as observers continue to parse the company’s recent M&A difficulties, many are left to wonder if there aren’t insights to be gleaned regarding sky-high social media valuations.
The New York Times
TWITTER’S TROUBLES AND SNAP’S APPEAL: IT’S ALL ABOUT THE MOJO (OCTOBER 11, 2016)
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
Walmart’s pending acquisition of Jet.com
Jet.com operates an eCommerce marketplace that employs a unique system of pricing incentives to drive consumer spending.
The Company gained significant market share over a short period of time through an aggressive pricing strategy that was bolstered by a strong investor base and ample capital.
The investment represents a bold advancement of Walmart’s eCommerce operations as it steps up its online presence to compete with Amazon.Ent. Value: $3.3b
Revenue: est. $1.0b
EV / Revenue: 3.3x
EV / EBITDA: N/A
Announced 8/3/16
Salesforce completes acquisition of Demandware
Demandware provides enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale as well as order management and predictive intelligence capabilities.
The Company's platform offering, Demandware Commerce, is a combination of its cloud platform, community, and related services that enables customers to establish and execute complex digital commerce strategies.
The acquisition of Demandware will position Salesforce to capture the multi-billion dollar digital commerce market with the creation of the new Salesforce Commerce Cloud, which will be an integral part of its Customer Success Platform.Ent. Value: $2.7b
Revenue: $ 254m
EV / Revenue: 10.5x
EV / EBITDA: NM
Closed 7/11/16
Concur’s pending acquisition of Hipmunk
Hipmunk is a consumer-oriented online travel company providing users with hotel deals and flight results through its website and mobile application.
The Company delivers some of the most innovative functionality in the travel industry and is recognized as a leader in the cutting edge space of artificial intelligence-powered travel search and travel bots.
The acquisition of the Hipmunk team and their innovations will further Concur’s strategy to deliver consumer-grade products to corporate customers.Ent. Value: N/A
Revenue: N/A
EV / Revenue: N/A
EV / EBITDA: N/A
Announced 9/13/16
Dentsu Aegis’s pending acquisition of Merkle
Merkle operates as a customer relationship management agency that designs, executes, and evaluates integrated marketing programs.
As one of the largest independent digital agencies, Merkle manages 3.7 billion customer records across 16 offices supporting over 650 blue chip clients globally.
The acquisition will accelerate Dentsu Aegis’s strategy to become a 100% digital economy business by 2020, as well as significantly enhance their global operations.Ent. Value: $1.4b
Revenue: $436m
EV / Revenue: 3.3x
EV / EBITDA: N/A
Announced 8/8/16
Criteo’s pending acquisition of HookLogic
HookLogic provides closed-loop marketing for brand advertisers through its partnerships with leading retailers and travel companies.
HookLogic's performance marketing exchange connects many of the world's largest retail eCommerce sites with consumer brand manufacturers who vie for virtual shelf-space via sponsored product ads.
The acquisition gives Criteo access to HookLogic’s customer base and enables the integration of Criteo’s predictive bidding technology into HookLogic’s existing platform, which will help retailers to further monetize their site traffic.Ent. Value: $250m
Revenue: $111m
EV / Revenue: 2.2x
EV / EBITDA: N/A
Announced 10/4/16
SELECT IDM M&A TRANSACTIONS
4
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
IDM ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS
MOST ACTIVE STRATEGIC ACQUIRERS OF IDM ASSETS BY VOLUME
GLOBAL STRATEGIC ACQUIRER IDM M&A ACTIVITY BY VOLUME
5
(Number of Transactions)
(Number of Transactions)
The ten most active strategic IDMbuyers over the past several yearshave completed a combined 30acquisitions in 2016 YTD.
Yahoo, alone among the group, hasnot completed an acquisition in2016, likely attributable to theinternal focus on the pendingVerizon acquisition.
Google continues to lead the packwith thirteen acquisitions in 2016 YTD,including the purchase of Apigee, aprovider of big data analytics andAPI Solutions.
3Q 2016 brings an uptick in activityover the prior quarter with strategicM&A activity increasing from 119deals in 2Q 2016 to 141 in 3Q 2016.
3Q 2016 activity represents a 18.5%increase from 2Q 2016, howeveractivity is still down 27.3% from thesame period last year.
Buyers across each vertical havetended towards assets thatenhance existing offerings /infrastructure by providing richerdata sets, stronger analytics,broader reach, and a moreexpansive solutions portfolio.
3 4 2 36 4
1 2 1
5 4
12
33
1
7 7 16
5
4
2
23
3
17
9
9
64
1
43
24
7
41
2 2
34 2
3 4
13
2
6 2
21 2
1 1
2016 YTD
2015
2014
2013
2012
2011
148 142167 166
180206
185 189215
228
194
164
193
119141
Q1 - 13 Q2 - 13 Q3 - 13 Q4 - 13 Q1 - 14 Q2 - 14 Q3 - 14 Q4 - 14 Q1 - 15 Q2 - 15 Q3 - 15 Q4 - 15 Q1 - 16 Q2 - 16 Q3 - 16
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
IDM ACQUISITION ACTIVITY – PRIVATE EQUITY INVESTORS
MOST ACTIVE PRIVATE EQUITY INVESTORS OF NEW IDM PLATFORMS BY VOLUME
GLOBAL NEW PLATFORM PRIVATE EQUITY IDM M&A ACTIVITY BY VOLUME
6
(Number of Transactions)
(Number of Transactions)
Vista Equity Partners has continued to be the most active private equity acquirer of new IDM platforms in 2016 YTD with the addition of four more acquisitions to make eight for the year.
Collectively, the 10 most active private equity acquirers of IDM assets executed 25 platform acquisitions in 2016 YTD.
Of note in 3Q, Vista Equity Partners closed its high profile acquisition of Marketo, a leading provider of engagement marketing software and solutions.
Private equity investment in new IDM platforms remains low in 3Q 2016 registering only 10 transactions, down 47.4% and 41.1% in the same periods in 2015 and 2014, respectively.
Continued macroeconomic uncertainty due to the U.S. presidential election and Britain’s exit from the European Union has affected deal volumes. However, PE and VC activity are expected to pick-up in 4Q 2016.
25
74
1
5
1
8
1 1
2
3
3
4
1
2 2 2
55
33
1
2
1 2
5
7 5
5 3
7
3
1
44
6
4
17
6
2
6
3
33
8
2
5 0 5
2
2 1
2016 YTD
2015
2014
2013
2012
2011
12 11
28
2017
21
17 17 17
29
19
24
19
9 10
Q1 - 13 Q2 - 13 Q3 - 13 Q4 - 13 Q1 - 14 Q2 - 14 Q3 - 14 Q4 - 14 Q1 - 15 Q2 - 15 Q3 - 15 Q4 - 15 Q1 - 16 Q2 - 16 Q3 - 16
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
NOTABLE ADTECH AND MARKETING SOLUTIONS M&A TRANSACTIONS
ADTECH AND MARKETING SOLUTIONS – M&A MARKET SUMMARY
ADTECH AND MARKETING M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)
7
(Number of Transactions) (Enterprise Value / Revenue) AdTech and Marketing
Solutions M&A deal volume fell for the third consecutive quarter in 3Q 2016.
Strategic acquirers continue to pace the market, comprising all but one of the highlighted deals for the quarter.
Despite a slight drop in deal volume, median transaction multiples increased for the second consecutive quarter, as buyers remain willing to pay premium valuations for high quality assets.
Google was a highly active acquirer in 3Q 2016, closing five transactions in the sector.
Larger transactions continued to command higher multiples, while deals valued under $100 million traded just over 1.0x revenue.
Large strategic acquirers continue to pursue comprehensive end-to-end offerings utilizing M&A to fill product gaps, while remaining disciplined as to avoid investing too early in emerging players.
DATE
CLOSED ACQUIRER DESCRIPTION
ENTERPRISE
VALUE (MM)TARGET
REVENUE
MULTIPLE
48 45
57
47 51
76
58
65
76
87
57
68
42
36 35
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
1.6x
2.8x
2.1x
3.6x
1.7x
2.8x
2.5x
1.6x
2.2x
1.9x
2.3x
3.0x
1.6x
2.2x
2.6x
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
MEDIAN
Pending Orient Hongtai Investment Mgmt. AppLovin Corp. Provides mobile marketing automation and analytics for brands seeking to reach new consumers. $1,400 6.0x
Pending Dentsu Aegis Network Ltd. Merkle Group, Inc. Develops content protection and contextual advertising technology solutions. $1,433 3.3x
Pending Criteo Corp. HookLogic, Inc. Provides closed-loop marketing for brand advertisers. $250 2.2x
Pending Xaxis LLC Triad Retail Media Creates, manages, and operates online media programs for eCommerce websites. $300 0.6x
09/27/16 Vector Capital Sizmek, Inc. Provides an independent global ad campaign and distribution platform. $75 0.4x
09/14/16 salesforce.com, inc. Gravity Tank, Inc. Offers and designs innovation consultancy and integrated marketing solutions. NA NA
09/03/16 GoDaddy, Inc. ManageWP LLC Offers site a full suite of solutions for WordPress automation. NA NA
09/01/16 Ligatus GmbH (Bertlesmann SE & Co.) LiquidM, Inc. Develops a mobile advertising management platform. NA NA
08/23/16 Endurance International Group, Inc. AppMachine BV Develops and publishes mobile applications. $38 NA
08/16/16 Vista Equity Partners Marketo, Inc. Provides a cloud-based marketing software platform. $1,498 6.6x
08/16/16 Nuance Communications, Inc. TouchCommerce, Inc. Provides digital customer service and engagement solutions. $195 NA
08/09/16 Gannett Co., Inc. ReachLocal, Inc. Offers comprehensive suite of online marketing solutions for SMBs. $156 0.4x
08/09/16 Monotype Imaging, Inc. Olapic, Inc. Helps brands analyze user-generated content across multiple marketing channels. $130 NA
08/04/16 Zeta Interactive LLC Acxiom Digital, Inc. Provides integrated digital marketing solutions. $50 1.2x
07/27/16 Google, Inc. Cluster Labs, Inc. Provides mobile photo sharing applications. NA NA
07/26/16 Taboola.com Ltd. ConvertMedia Provides a recommendation engine for online marketing videos. $100 2.0x
07/19/16 Accenture Plc MobGen BV Operates a digital and mobile marketing agency. NA NA
07/18/16 Luxoft Holding, Inc. INSYS Group, Inc. Provides predictive analytics, digital marketing, and enterprise information management. $71 1.3x
07/07/16 Google, Inc. Anvato, Inc. Develops content protection and contextual advertising technology solutions. NA NA
06/30/16 Pamlico Capital Prize Logic Provides digital promotions for large consumer brands and retailers. NA NA
$156 1.7x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
NOTABLE DATA AND INFO SERVICES M&A TRANSACTIONS
DATA AND INFORMATION SERVICES – M&A MARKET SUMMARY
DATA AND INFO SERVICES M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)
8
(Number of Transactions) (Enterprise Value / Revenue) Data and Information Services
M&A volume remained relatively flat in 3Q 2016, but the drop was minor compared to a larger decline in the prior quarter.
The number of private equity deals remained steady at six for the quarter.
Median revenue multiples in the sector reverted to the aggregate historical median of 3.6x, in a possible cooling of investor confidence.
Transactions involving data management and analytics providers were particularly frequent this quarter relative to data collection, with buyers like eBay, Magnitude Software, and Zillow pursuing assets in the space.
The quarter was headlined by Thomson Reuters’ sale of its Intellectual Property & Science business to Onex Corporation and Baring Private Equity Asia in a divestiture valued at $3.6 billion.
45
38
60
41
44
65
60
52
57 59 60
58
64
42 41
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
2.7x
3.5x3.7x
4.5x
4.1x
2.1x2.3x
1.6x
3.5x
3.1x
4.4x
5.0x
4.6x
5.7x
3.6x
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
DATE
CLOSED ACQUIRER DESCRIPTION
ENTERPRISE
VALUE (MM)TARGET
REVENUE
MULTIPLE
MEDIAN
Pending Google, Inc. Apigee Corp. Provides application programming interface and predictive big data analytics technology. $472 5.1x
10/03/16 Onex Corp; Baring Private Equity Asia Thomson Reuters Provides comprehensive intellectual property and scientific decision support services. $3,550 3.6x
10/03/16 Quintiles Transnational Holdings, Inc. IMS Health Holdings, Inc. Provides data and information services to the healthcare industry. $12,905 4.2x
09/30/16 Accenture Plc New Energy Group Srl Provides information technology and digital transformation consultancy services. NA NA
09/07/16 XIO Group J.D. Power & Associates, Inc. Provides marketing information, customer surveys, and consulting services. $1,100 NA
09/06/16 Frontline Technologies Group LLC Excent Corp. Develops and provides data management software solutions. NA NA
09/06/16 Lieberman Research Worldwide LLC MotiveQuest LLC Provides social market research and consulting services. NA NA
08/01/16 X.commerce, Inc. RJ Metrics, Inc. Provides analytics software for online businesses. NA NA
08/25/16 Nielsen Holding France SAS A3 Distrib SASU Provides prospectus analysis services. NA NA
08/22/16 Thoma Bravo LLC Qlik Technologies, Inc. Designs and develops business intelligence software solutions. $2,525 4.0x
08/16/16 Magnitude Software, Inc. Simba Technologies, Inc. Supplies standards-based data access and analytics solutions and data connectivity services. NA NA
08/02/16 Zillow Group, Inc. Bridge Interactive Group LLC Provides brokers and MLS's with back-office data management software. NA NA
07/25/16 Datavail Corp. Art of BI Software LLC Provides oracle analytics consulting services. NA NA
07/31/16 Axel Springer SE eMarketer, Inc. Provides marketing insight and media research, analysis, and consultancy services. $269 5.9x
07/22/16 eBay, Inc. SalesPredict SW Ltd. Develops predictive analytics solutions. NA NA
07/18/16 Luxoft Holding, Inc. INSYS Group, Inc. Provides predictive analytics, digital marketing, and enterprise information management. $71 1.3x
07/12/16 IHS, Inc. Markit Ltd. Provides information, insights, and analytics. $6,177 5.5x
07/01/16 Asset International, Inc. Factset Market Metrics & Matrix Solutions Provides market research services and customer and business intelligence solutions. $175 NA
06/01/16 Market Track LLC Channel IQ Provides online retail intelligence, channel management, and brand protection solutions. NA NA
$1,100 4.2x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
ECOMMERCE– M&A MARKET SUMMARY
ECOMMERCE M&A VOLUME (GLOBAL)
NOTABLE ECOMMERCE M&A TRANSACTIONS
MEDIAN M&A REVENUE MULTIPLES (REPORTED)
(Number of Transactions) (Enterprise Value / Revenue) eCommerce M&A volume
rebounded this quarter, with 42 deals, representing the highest volume year to date.
Revenue multiples remainedstrong, increasing to 6.7x, apremium relative to the historicalmedian of 5.5x.
General consolidation hasmaintained across the sector aslarger companies continue toseek out accretive structuraladditions that better equip themto reach and serve an evolvingmarketplace.
Oracle’s acquisitions ofNetSuite and LogFire illustrateits continued drive to build acomprehensive suite of best-of-breed marketing andcommerce solutions.
The quarter was characterizedby several leadingeCommerce players (Etsy,Rakuten, eBay) acquiringanalytics-driven assets thathelp improve specific aspectsof backend operations.
DATE
CLOSED ACQUIRER DESCRIPTION
ENTERPRISE
VALUE (MM)TARGET
REVENUE
MULTIPLE
MEDIAN
9
35 34
38
53 51
42 44
52
46
64
54
40
37 35
42
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
7.8x
5.7x
2.4x
5.5x
8.2x
7.4x
5.0x
5.8x
3.7x
4.2x
1.7x
4.3x
1.9x
6.3x6.7x
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
Pending Ritchie Bros. Auctioneers, Inc. IronPlanet, Inc. Operates an online marketplace for buying and selling used heavy equipment and trucks. $740 0.9x
10/03/16 Concur Technologies, Inc. Hipmunk, Inc. Provides closed-loop marketing for brand advertisers. NA NA
09/24/16 trivago GmbH Myhotelshop GmbH Provides an online marketing shop for the hotel industry. NA NA
09/19/16 Etsy, Inc. Blackbird Technologies, Inc. Develops search and recommendation technology for eCommerce Companies. NA NA
09/19/16 Wal-Mart Stores, Inc. Jet.com, Inc. Operates an eCommerce marketplace. $3,300 NA
09/06/16 Oracle Corp. LogFire, Inc. Provides cloud-based warehouse management applications for eCommerce companies. NA NA
09/05/16 Rakuten, Inc. Fablic, Inc. Develops an online flea market application. NA NA
09/05/16 Bregal Capital Onlineprinters Operates as a web-to-print service provider focused on B2B solutions. NA 10.5x
08/15/16 Agile Network LLC Ajillus, Inc. Designs and supplies software for shipping services. NA NA
08/10/16 Unilever Plc Dollar Shave Club, Inc. Delivers razors and other personal grooming products to consumers by mail. $1,000 6.6x
08/08/16 Google, Inc. Orbitera, Inc. Provides eCommerce, analytics, and cloud technologies for software vendors to assist in distribution. $100 NA
08/04/16 StubHub, Inc. Ticketbis SL Develops and operates an online ticket exchange platform. $165 6.4x
07/20/16 Expedia, Inc. Trover, Inc. Develops and markets online applications that collect and organize user generated travel information. NA NA
07/14/16 eBay, Inc. Ticket Utils, Inc. Provides a system to manage the distribution of tickets to multiple services. NA NA
07/12/16 Rakuten Marketing LLC Next Performance SAS Offers retargeting solutions for brands and retailers. NA NA
07/11/16 salesforce.com, inc. Demandware, Inc. Provides cloud-based digital commerce solutions for retailers and branded manufacturers. $2,670 10.5x
07/01/16 Stamps.com, Inc. ShippingEasy Group, Inc. Provides online shipping services. $63 NA
06/23/16 Providence Equity Partners LLC OEConnection LLC Offers eCommerce technology for OEM distribution networks. NA NA
06/20/16 JD.com, Inc. The Store Corp. Offers grocery, electronics, and apparel online. $2,918 NA
06/14/16 Bed Bath & Beyond, Inc. One Kings Lane, Inc. Engages in the online retail of home decor and furniture products. NA NA
$870 6.6x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
NOTABLE MEDIA, CONTENT, AND GAMING M&A TRANSACTIONS
MEDIA, CONTENT, AND GAMING – M&A MARKET SUMMARY
MEDIA, CONTENT & GAMING M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)
10
(Number of Transactions) (Enterprise Value / Revenue) Media, Content, and Gaming
volume grew over 44% in 3Q 2016 versus the prior quarter, with strategic deal volume alone growing over 50%.
After four very strong quarters, the median revenue multiple in Media, Content, and Gaming has returned closer to the aggregate historical median of 3.8x.
Verizon’s ongoing acquisition of Yahoo is part of a multi-billion dollar effort by Verizon to advance its mobile-first content strategy—highlighting a contest amongst several larger players (including AT&T) who endeavor to capture a valuable younger audience.
As major content providers and tech incumbents push into the realm of virtual reality, mobile and online gaming valuations still remain strong.
DATE
CLOSED ACQUIRER DESCRIPTION
ENTERPRISE
VALUE (MM)TARGET
REVENUE
MULTIPLE
MEDIAN
50
56 58
65
61
77
68 67
80
85
62
53
84
38
58
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
2.7x
4.8x
2.0x
3.8x
2.9x
2.6x
4.7x
2.7x
3.7x
2.5x
6.0x
4.8x5.1x
4.2x
3.9x
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16
Pending Shanghai Giant Network Technology Playtika Ltd. Develops online social networking games. $4,400 4.9x
Pending AVI Partners LLC YuMe, Inc. Provides digital video brand advertising solutions. $117 0.7x
Pending Verizon Communications Yahoo! Inc Provides information content, online search, maps, shopping, and other web-based services. $4,826 1.0x
Pending Tencent Holdings Ltd. China Music Co. Provides online music services in China. $2,700 NA
Pending Microsoft Corp. LinkedIn Corp. Operates an online professional network. $24,386 7.6x
Pending Internet Brands, Inc. Fodors LLC Markets and publishes content for the travel and tourism industry. NA NA
Pending Informa Plc Penton Business Media, Inc. Provides business-to-business digital and print media platform. $1,557 NA
Pending Wanda Cinema Line Co. Ltd. Mtime.com, Inc. Operates an online movie marketing and media platform. $350 NA
09/22/16 Verizon Communications Complex Media, Inc. Provides a multi-media platform for its audience targeting young male consumers. $300 NA
09/19/16 Facebook, Inc. Nascent Objects, Inc. Provides custom computer programming services. NA NA
09/14/16 Glu Mobile, Inc. Poke Radar Develops and publishes free-to-play games for smartphones. NA NA
08/11/16 Microsoft Corp. Beam Interactive, Inc. Develops live video streaming platform for gamers. NA NA
07/25/16 Tencent Holdings Ltd. Supercell Oy Provides online browser-based games for iPhone and iPad devices. $10,111 NA
07/25/16 Playtech Plc Best Gaming Technology GmbH Provides software and technology related to sports betting and gaming. $170 3.7x
07/12/16 NBCUniversal Media LLC Sport Ngin, Inc. Provides online software technology to manage youth and amateur sports leagues. NA NA
07/07/16 Google, Inc. Anvato, Inc. Develops content protection and contextual advertising technology solutions. NA NA
06/28/16 AT&T, Inc. QuickPlay Media, Inc. Provides mobile interactive multimedia services. NA NA
06/20/16 Bankrate, Inc. NextAdvisor, Inc. Provide online sources for reviews of credit cards, personal finance, and interest services. $225 NA
06/20/16 Twitter, Inc. Magic Pony Technology Ltd. Develops machine-learning based approaches for visual processing. $150 NA
06/17/16 Cision US, Inc. PR Newswire Association LLC Distributes news releases and other marketing messages for companies. $872 2.9x
$1,557 3.7x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
10/04/16 eCommerce E $40 $90 Foundry Group, Menlo Ventures, Madrona Venture
Group
Provides an online platform to connect pet owners with
dog walkers and sitters.
09/26/16 eCommerce Late Stage $189 $517 JP Morgan Asset Management, W Capital Partners,
American Association of Retired Persons
Provides an online retail platform to sell food and
grocery products.
09/21/16
AdTech &
Marketing
Solutions
E $35 $113
Georgian Partners, Bain Capital Ventures, Battery
Ventures, Presidio Ventures, Silver Lake, Tenaya
Capital
Provides web analytics and digital marketing software.
09/20/16 eCommerce E $50 $218
Altimeter Capital, Foxhaven Asset Management, L
Catterton, General Catalyst Partners, Allen &
Company
Provides an online used-car marketplace.
09/19/16 eCommerce D $15 $76 Bessemer Venture Partners, Accel Partners, SAIF
Partners, Norwest Venture Partners, Apoletto Asia
Provides a platform for online ordering and delivery
serv ices from restaurants.
09/14/16
AdTech &
Marketing
Solutions
C $32 $51 Innovation Endeavors Management Company,
Marker, Lightspeed Venture PartnersProvides a cross-channel marketing analytics platform.
09/08/16
AdTech &
Marketing
Solutions
D $35 $74
General Atlantic, Salesforce Ventures, Causeway
Media Partners, Charles River Ventures, and other
investors
Provides a mobile marketing automation and loyalty
platform.
09/08/16 eCommerce C $119 $211
Altimeter Capital, GGV Capital, Warburg Pincus,
Andreessen Horowitz, Coatue Management, T
Rowe Price, Vy Capital
Provides a mobile marketplace to buy and sell items
locally.
09/01/16Media, Content
& GamingLate Stage $153 $780
Revolution Ventures and other undisclosed
investorsProvides an online fantasy sports betting platform.
09/01/16
Data &
Information
Serv ices
Late Stage $45 $195
FS Investments, Capital Partners, Cerberus PNC
Senior Loan Fund and PNC Bank, National
Association
Helps leading brands acquire, grow and retain
customers through predicitive analytics and targeted
advertising.
08/11/16 eCommerce E $45 $126 Turner, Scripps NetworksProvides a platform for fashion and lifestyle news,
trends, and shopping.
07/20/16
Data &
Information
Serv ices
F $105 $229
Temasek, Wellington Management Company, EDBI,
Battery Ventures, Intel Capital, Iconiq Capital, and
other investors
Offers a platform providing social governance,
engagement, audience management, analytics, and
integration.
06/28/16 eCommerce F $555 $4,067 Google Capital, Technology Crossover VenturesOperates an online property rental marketplace for
short-term travel stays.
06/27/16Media, Content
& GamingD $53 $183
J.P. Morgan, Andreessen Horowitz, Index Ventures,
Two Sigma
Develops A.I. technology that can be used in consumer
products, including v ideo games.
SELECT RECENT IDM PRIVATE PLACEMENTS
11
Note: Financial information presented above represents reported capital raised only.
DESCRIPTIONTOTAL
RAISED ($M)DATE COMPANY SECTOR ROUND
ROUND
SIZE ($M)INVESTORS (CURRENT ROUND)
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
PUBLIC IDM VALUATION MULTIPLES BY SECTOR
LTM EBITDA MULTIPLE ANALYSIS 3Q 2016 VS. 3Q 2015
LTM REVENUE MULTIPLE ANALYSIS 3Q 2016 VS. 3Q 2015STOCK PERFORMANCE (1- & 3-YEAR)
12
As of September 30, 2016.
8.1x
5.0x
4.4x 4.4x
3.6x
2.5x
1.8x 2.0x 2.2x 2.3x
1.7x 1.8x
1.0x
9.9x
6.5x
5.5x
4.2x3.9x
3.2x2.7x
2.5x 2.5x 2.3x 2.2x
1.2x 1.2x
Social Media Bellwethers Search Portals Travel Community Info Marketplace Gaming Digital Media Data Networks Local Online VerticaleCommerce
Marketing Tech Promotional
3Q 2015 3Q 2016
21.3x
35.3x
15.6x17.9x
12.5x
20.2x
11.8x15.1x 14.3x 14.6x
16.3x
29.6x
10.2x
22.0x
27.1x
17.5x19.5x
13.3x
20.5x
16.3x14.7x
15.7x16.2x
19.4x
12.1x10.2x
Social Media Bellwethers Search Portals Travel Community Info Marketplace Gaming Digital Media Data Networks Local Online VerticaleCommerce
Marketing Tech Promotional
3Q 2015 3Q 2016
41.0%
45.1%
40.7%
33.4%
5.1%
9.8%
43.4%
0.8%
(0.7%)
9.8%
25.0%
(7.1%)
47.9%
36.8%
117.8%
20.2%
48.8%
(7.9%)
16.5%
135.4%
2.8%
0.1%
(47.9%)
2.9%
(53.4%)
(63.6%)
Social Media
Bellwethers
Search Portals
Travel
Community Info
Marketplace
Gaming
Digital Media
Data Networks
Local Online
Vertical eCommerce
Marketing Tech
Promotional
1-Year Performance 3-Year Performance
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
`
KEY METRICS BY SECTOR – COMPARABLE PUBLIC IDM COMPANIES
EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH
COMP SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE
13
As of September 30, 2016.
9.9x
6.5x
5.5x
4.2x
3.9x
3.2x
2.7x
2.5x
2.5x
2.3x
2.2x
1.2x
1.2x
Social Media
Bellwethers
Search Portals
Travel
Community Info
Marketplace
Gaming
Digital Media
Data Networks
Local Online
Vertical eCommerce
Marketing Tech
Promotional
27% 37% 17% 64% 71% 5%
13% 37% 21% 46% - 78%
12% 17% 27% - 54% -
9% 5% 14% 70% - 15%
5% 8% 26% - - 88%
28% 14% 20% 12% 23% 76%
16% 12% 27% 79% - -
11% 21% 16% 76% 39% 86%
12% 22% 14% 46% 34% -
25% 34% 15% 67% - 43%
9% 31% 13% 77% 19% 82%
18% 22% 18% 51% 7% 89%
14% 88% 7% 51% - -
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
SUMMARY OF TECHNOLOGY IPOS
The IPO market showed signs of renewed life in 3Q 2016, with eight technology companies going public.
Notable IPOs included Line, which priced at $32 at the beginning of July; Talend, which priced at $18 per share at the end of July; and Nutanix, which priced at $16 per share at the end of September and has registered an impressive 131% growth in share price since listing.
The successful IPO of Nutanix as well as the sustained success of Twilio, which currently trades at over 300% of its offer price, may renew comfort around the IPO market, particularly as venture capital funding slows.
The resulting impact from the US Presidential election may shorten the promising IPO window that the last two quarters have created.
MARKET CAP AT IPO (LTM) REVENUE GROWTH (1YR PRIOR TO IPO)OFFERING SIZE AT IPO (LTM)
RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE)
24%
29%
47%
< 25% 25 - 75% > 75%
6%
44%
17%
33%
$0-50M $50-500M $500M-$1B $1B+
8%
23%
38%
31%
$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)
6
16
13 13
11
18
7
11
5
15
3
8
0
2
8
1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16
$0 - 50M $50 - 100M $100 - 250M $250M +
2013 Total: 48 2014 Total: 47 2016 Total: 102015 Total: 31
14
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
11/6/13 1/23/14 3/6/14 3/27/14 4/1/14 7/17/14 7/23/14 9/18/14 10/1/14 10/9/14 12/10/14 3/5/15 3/19/15 4/15/15 5/20/15 7/1/15 11/18/15 11/18/15 7/11/16
$26.0 $17.0 $16.0 $14.0 $15.0 $7.0 $11.0 $68.0 $29.0 $25.0 $15.0 $11.5 £3.5 $16.0 $17.0 $26.0 $9.0 $12.0 $32.8
$1,820.0 $91.0 $168.0 $0.0 $101.6 $43.8 $91.7 $21,767.2 $319.0 $125.0 $870.0 $74.8 £2,042.0 $266.7 $130.9 $192.5 $243.0 $400.0 $1,140.5
(11.3%) (41.4%) (16.8%) (45.1%) (44.8%) 33.9% (15.1%) 55.6% 35.8% 130.5% (58.8%) (22.4%) 52.2% (10.8%) 152.5% 65.3% 29.6% 48.3% 47.4%
Circle Size Denotes Revenue ($)
% R
eve
nu
e G
row
thSto
ck
Pe
rfo
rma
nc
e
KEY PERFORMANCE METRICS FOR RECENT IDM IPOS
IPO DATE
OFFER PRICE
OFFERING SIZE ($M)
OFFER TO CURRENT
15
As of September 30, 2016.
(11.3%)
(41.4%)
(16.8%)
(45.1%) (44.8%)
33.9%
(15.1%)
55.6%
35.8%
130.5%
(58.8%)
(22.4%)
52.2%
(10.8%)
152.5%
65.3%
29.6%
48.3% 47.4%
117.4%
68.0%
49.7%
12.5%
43.5%
90.5%
47.3%
51.3%
52.4% 50.4%
72.5%
61.1%
9.1%
53.2%
106.2%
53.3%
107.0%
10.6%
22.2%
(20.0%)
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
98.3%
(23.2%)
32.0%
(1.2%)
53.0%
33.1%
3.3%
(29.7%)
(41.6%)
14.7% 14.7%
(1.2%)
7.4%
17.5%
9.9%
(125.0%)
(100.0%)
(75.0%)
(50.0%)
(25.0%)
0.0%
25.0%
50.0%
75.0%
100.0%
125.0%
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
14.2%
7.7%
13.4%
13.9%
15.3%
16.8%
18.7%
Other
Food & Beverage
Services & Leasing
Automotive
Technology
Insurance
Healthcare
63% 60%
50%
57%
55%
60%
66%
60% 58%
52%
2007 2008 2009 2010 2011 2012 2013 2014 2015 3Q'16
4.1x 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
4.9x
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD16
FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA
LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES
DEBT MARKET OVERVIEW
MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER
1H 2016 New-Issue LBO Loan Volume: $1.5 billion Percentage of Total Purchase Price
Median middle market LBO loan multiples tightened in YTD 2016 to 4.9x total leverage.
Middle market LBO loan volume in 3Q 2016 remained flat compared to 2Q, with $0.5 billion of issuance.
Technology companies were the third largest recipients of LBO loans in YTD 2016.
The median LBO debt percentage through 3Q 2016 was 52%, in line with the recent trend of lenders requiring larger equity contributions from sponsors.
Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less
$0.7B
$1.0B
$2.0B
$1.2B
$1.6B$1.5B
$1.8B
$1.2B
$1.9B$2.0B
$0.4B
$0.9B
$0.5B$0.5B
2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16
Institutional Pro Rata
16
PAGE | 17
TECHNOLOGY, MEDIA, & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
SELECT HW&CO. TMT TRANSACTIONS
has been acquired by
DIGITAL
MEDIA
has merged with
SUPPLY CHAIN
SOFTWARE
ERP / BUSINESS
MANAGEMENT
has received a
significant equity
investment from
has been acquired by
NON-PROFIT
SOFTWARE
has been acquired by
INFRASTRUCTURE
SOFTWARE
has merged with
DIGITAL
MEDIA
has been
recapitalized by
SUPPLY CHAIN
SOFTWARE
has been acquired by
FINANCIAL
TECHNOLOGY
has been acquired by
HEALTHCARE
TECHNOLOGY
has been acquired by
DATA
ANALYTICS
has been acquired by
INFRASTRUCTURE
SOFTWARE
has been acquired by
ERP / BUSINESS
MANAGEMENT
has been acquired by
HEALTHCARE
TECHNOLOGY
has received a
majority investment
from
MARKETING
ANALYTICS
has been acquired by
HEALTHCARE
TECHNOLOGY
has been acquired by
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
has been acquired by
has been
recapitalized by
NON-PROFIT
SOFTWARE
has been acquired by
HCM SOFTWARE
has received an
investment from
APPLICATION
SOFTWARE
has been acquired by
ENERGY
TECHNOLOGY
has been acquired by
REAL ESTATE
SOFTWARE
has been acquired by
HEALTHCARE
TECHNOLOGY
has been acquired by
EDUCATION
TECHNOLOGY
has been acquired by
EDUCATION
TECHNOLOGY
has been acquired by
INFRASTRUCTURE
SOFTWARE
has been acquired by
HEALTHCARE
TECHNOLOGY
has been acquired by
TECH-ENABLED
SERVICES
has been acquired by
FINANCIAL
TECHNOLOGY
has been acquired by
MARKETING
ANALYTICS
has been acquired by
HEALTHCARE
TECHNOLOGY
has become a wholly-
owned subsidiary of
ENERGY
TECHNOLOGY
has been acquired by
ERP / BUSINESS
MANAGEMENT
has acquired
HEALTHCARE
TECHNOLOGY
has been acquired by
ECOMMERCE
RETAIL
has received a minority
equity investment from
HEALTHCARE
TECHNOLOGY
has been acquired by
LEGAL
TECHNOLOGY
has been acquired by
MARKETING
TECHNOLOGY
HCM SOFTWARE
has been acquired by
IT SERVICES
has been acquired by
has been acquired by
HEALTHCARE
TECHNOLOGY
has received a minority
investment from
ENERGY
TECHNOLOGY
has been acquired by
DATA
ANALYTICS
has been acquired by
HEALTHCARE
TECHNOLOGY
has acquired
HEALTHCARE
TECHNOLOGY
has been acquired by
MANAGED
SERVICES
has been acquired by
HEALTHCARE
TECHNOLOGY
to be acquired by
HEALTHCARE
TECHNOLOGY
has been
recapitalized by
NON-PROFIT
SOFTWARE
has received a
majority investment
from
HEALTHCARE
TECHNOLOGY
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
APPENDIX: INTERNET & DIGITAL MEDIA SECTOR PUBLIC COMPANY UNIVERSE
eC
om
me
rce
18
Me
dia
/ C
on
ten
t /
Ga
min
g
Ad
Tec
h&
M
ark
etin
g
So
lutio
ns
Da
ta &
In
form
atio
n
Se
rvic
es
Internet Bellwethers Alphabet Amazon.com Facebook Yahoo!
Marketplace Amazon.com Alibaba Group eBay JD.com Rakuten Liberty Interactiv e MercadoLibre 58.com Shopify LendingClub
Marketplace (cont'd) Cnov a Wayfair Ov erstock.com
Trav el Priceline Ctrip.com Expedia TripAdv isor MakeMyTrip Trav elzoo
Flash Sales / Promotional / Coupons GrouponQuotient
TechnologyRetailMeNot
Vertical eCommerce GrubHub Cimpress Shutterstock Stamps.com Etsy Shutterfly Chegg PetMed Express Blue Nile1-800-
FLOWERS.COM
Vertical eCommerce (cont'd) eHealth
Digital Media & Online Content Tencent SINA Corporation IAC Pandora WebMD Health Sohu.com XO Group Blucora Ev eryday Health TechTarget
Digital Media & Online Content (cont'd) Demand Media Townsquare Media
Social Media Facebook Twitter Weibo Momo Match Group Spark
Gaming Nintendo Activ ision Blizzard NetEase Electronic Arts Ubisoft
Entertainment
Take-Two
Interactiv e Zynga GREE Glu Mobile
Proprietary Data Networks Alliance Data Acxiom comScore Neustar YouGov Plc
Community Based Information Serv ices CoStar Group Zillow Group Auto Trader Group Rightmov e Yelp Moneysupermarket 51job Autohome Bankrate Angie's List
Community Based Information Serv ices
(cont'd)DHI Group Monster Worldwide Care.com
Adv ertising Networks / Search Portals Alphabet Baidu, Inc. Yahoo! Nav er Yahoo! Japan Yandex N.V.
Marketing Technology Adobe Criteo SA HubSpot Bazaarv oice The Rubicon Project TubeMogul QuinStreet Rocket Fuel
Local Online Adv ertising GoDaddy Wix.com Endurance
InternationalWeb.com Tucows Marchex
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /
Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. LTM EBITDA Earnings
APPENDIX: INTERNET & DIGITAL MEDIA SECTOR PUBLIC COMPANY METRICS
MARKETING TECHNOLOGY
19
ADVERTISING NETWORKS / SEARCH PORTALS
Marketing
Technology
Advertising
Networks /
Search Portals
Local Online
Advertising
Internet
Bellwethers
LOCAL ONLINE ADVERTISING
INTERNET BELLWETHERS
Marketplace
Proprietary Data
Networks
Community
Based Info
Services
Travel
Flash Sales /
Promotional /
Coupons
Vertical
eCommerce
Digital Media &
Online Content
Social Media
Gaming
As of September 30, 2016.Enterprise value and market capitalization figures in millions USD.Market capitalization figures exclude non-traded shares
Alphabet Inc. GOOGL $482,470 $505,078 98.2% 25.2% 81.1% 11.8% (1.9%) 32.6% 5.7x 6.7x 17.5x 26.5x
Amazon.com, Inc. AMZN 406,268 396,947 99.7% 60.8% 160.9% 20.2% 27.9% 8.7% 3.2x 3.0x 36.5x NM
Facebook, Inc. FB 347,767 297,966 97.2% 41.0% 154.4% 43.8% 51.0% 52.0% 14.1x 12.8x 27.1x 39.8x
Yahoo! Inc. YHOO 35,975 41,022 95.9% 49.1% 25.6% 8.1% (29.6%) 4.8% 7.2x 10.3x NM NM
Median $377,018 $347,456 97.7% 45.1% 117.8% 16.0% 13.0% 20.6% 6.5x 8.5x 27.1x 33.2x
Alphabet Inc. GOOGL $482,470 $505,078 98.2% 25.2% 81.1% 11.8% (1.9%) 32.6% 5.7x 6.7x 17.5x 26.5x
Baidu, Inc. BIDU 58,242 49,463 83.5% 32.4% 14.8% 32.8% 3.1% 25.1% 5.4x 5.4x 21.4x 9.9x
Yahoo! Inc. YHOO 35,975 41,022 95.9% 49.1% 25.6% 8.1% (29.6%) 4.8% 7.2x 10.3x NM NM
NAVER Corp. 035420-KR 22,068 26,428 97.6% 72.7% 54.6% 17.9% 28.7% 27.7% 6.7x 6.0x 24.2x 43.0x
Yahoo Japan Corporation 4689-JP 19,413 22,610 79.4% 4.8% (31.1%) 52.2% 55.3% 26.2% 2.7x 2.4x 10.2x 21.3x
Yandex NV YNDX 6,190 5,815 88.2% 96.2% (44.4%) (25.8%) 20.0% 31.0% 5.4x 5.3x 17.4x 42.7x
Median $29,022 $33,725 92.1% 40.7% 20.2% 14.8% 11.5% 27.0% 5.5x 5.7x 17.5x 26.5x
Adobe Systems Incorporated ADBE $52,138 $53,969 98.9% 29.6% 107.0% 14.8% 23.1% 29.5% 9.4x 8.8x 31.9x 54.4x
Criteo SA CRTO 1,922 2,138 73.4% (4.0%) NA 36.0% 33.0% 9.7% 1.2x 2.7x 12.1x 26.5x
HubSpot, Inc. HUBS 1,926 2,037 95.9% 26.0% NA 57.0% 45.4% NM 7.8x 7.3x NM NM
Bazaarv oice, Inc. BV 436 490 98.8% 34.0% (38.8%) 4.5% 1.8% NM 2.2x 2.2x NM NM
Rubicon Project, Inc. RUBI 210 405 40.6% (42.1%) NA 98.3% 7.8% 17.9% 0.7x 0.8x 3.9x 17.2x
TubeMogul, Inc. TUBE 266 339 64.8% (10.2%) NA 58.2% 21.3% NM 1.3x 1.2x NM NM
QuinStreet, Inc. QNST 98 138 47.9% (45.8%) (68.0%) 5.5% 14.0% NM 0.3x 0.3x NM NM
Rocket Fuel, Inc. FUEL 126 117 47.1% (43.1%) (95.3%) 13.0% (42.7%) NM 0.3x 0.5x NM NM
Median $351 $447 69.1% (7.1%) (53.4%) 25.4% 17.7% 17.9% 1.2x 1.7x 12.1x 26.5x
GoDaddy, Inc. GDDY $4,014 $2,913 97.2% 36.5% NA 15.9% 14.8% 11.7% 2.2x 2.2x 19.3x NM
Wix.com Ltd. WIX 1,658 1,844 87.8% 148.2% NA 43.5% 37.5% NM 6.9x 5.9x NM NM
Endurance International Group Holdings, Inc.EIGI 3,156 1,236 56.5% (32.7%) NA 17.7% 50.1% 17.0% 3.1x 2.8x 18.3x NM
Web.com Group, Inc. WEB 1,541 872 69.1% (17.0%) (47.9%) (0.1%) 36.0% 19.6% 2.3x 2.1x 11.9x 11.0x
Tucows Inc. TCX 350 334 94.3% 37.1% 234.7% 17.1% 10.5% 13.6% 1.9x 1.8x 14.1x 29.3x
Marchex, Inc. MCHX 25 105 53.9% (30.9%) (61.3%) (18.4%) (10.2%) NM 0.2x 0.2x NM NM
Median $1,599 $1,054 78.4% 9.8% (47.9%) 16.5% 25.4% 15.3% 2.3x 2.1x 16.2x 20.2x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
APPENDIX: INTERNET & DIGITAL MEDIA SECTOR PUBLIC COMPANY METRICS
PROPRIETARY DATA NETWORKS
20
COMMUNITY BASED INFORMATION SERVICES
MARKETPLACE
Marketing
Technology
Advertising
Networks /
Search Portals
Local Online
Advertising
Internet
Bellwethers
Marketplace
Proprietary Data
Networks
Community
Based Info
Services
Travel
Flash Sales /
Promotional /
Coupons
Vertical
eCommerce
Digital Media &
Online Content
Social Media
Gaming
Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /
Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. LTM EBITDA Earnings
As of September 30, 2016.Enterprise value and market capitalization figures in millions USD.Market capitalization figures exclude non-traded shares
Alliance Data Systems Corporation ADS $22,753 $12,556 70.6% (18.2%) 0.1% 21.4% 11.6% 27.8% 3.2x 3.2x 11.6x 22.2x
Acxiom Corporation ACXM 2,147 2,063 97.8% 35.4% (7.3%) 5.6% 2.5% 13.8% 2.5x 2.5x 17.9x NM
comScore, Inc. SCOR 1,047 1,737 59.7% (34.6%) 5.4% 12.1% 33.0% 7.1% 2.9x 2.1x 40.7x NM
NeuStar, Inc. NSR 2,338 1,449 88.3% (0.7%) (45.7%) 9.0% 17.1% 38.1% 2.0x 1.9x 5.3x 9.3x
YouGov plc YOU-GB 271 283 97.3% 55.1% 145.5% 15.9% (13.3%) 13.4% 2.1x 2.3x 15.7x 57.0x
Median $2,147 $1,737 88.3% (0.7%) 0.1% 12.1% 11.6% 13.8% 2.5x 2.3x 15.7x 22.2x
CoStar Group, Inc. CSGP $6,838 $7,060 96.3% 27.3% 26.4% 23.6% 17.8% 25.4% 8.4x 8.2x 33.2x 89.9x
Zillow Group, Inc. ZG 6,319 6,016 86.1% 24.5% 27.3% 97.8% 29.9% NM 8.0x 7.5x NM NM
Auto Trader Group PLC AUTO-GB 5,828 5,206 77.8% 2.3% NA 2.6% (7.1%) 63.7% 13.7x 15.0x 21.6x 27.3x
Rightmov e plc RMV-GB 5,214 5,147 86.5% (0.5%) 42.8% 15.0% (3.8%) 73.7% 17.0x 18.5x 23.1x 28.8x
Yelp Inc. YELP 3,025 3,263 99.4% 99.8% (41.4%) 45.6% 28.8% 2.1% 4.5x 4.3x NM NM
Moneysupermarket.com Group plc MONY-GB 2,126 2,134 70.6% (22.9%) 57.9% 13.5% (7.9%) 38.6% 4.9x 5.4x 12.6x 20.3x
51job Inc JOBS 1,317 1,986 94.1% 21.3% (7.8%) 10.1% 5.5% 29.4% 3.9x 3.8x 13.3x 20.2x
Autohome, Inc. ATHM 2,243 1,249 64.3% (25.0%) NA 59.4% 51.5% 28.6% 3.3x 2.7x 11.4x 7.9x
Bankrate, Inc. RATE 913 765 53.7% (18.0%) (59.2%) (32.0%) 14.5% 26.0% 3.3x 2.2x 12.7x NM
Angie's List, Inc. ANGI 610 583 88.1% 99.0% (51.2%) 9.2% (3.7%) 5.0% 1.8x 1.8x 36.3x NM
DHI Group, Inc. DHX 438 395 75.3% 5.1% (8.0%) (1.1%) (9.7%) 22.3% 1.8x 1.9x 8.3x NM
Monster Worldwide, Inc. MWW 411 322 46.6% (43.5%) (17.8%) (13.4%) (7.8%) 7.6% 0.7x 0.7x 8.9x NM
Care.com, Inc. CRCM 263 285 83.0% 94.2% NA 18.8% 15.6% 6.4% 1.8x 1.6x 27.9x 21.9x
Median $2,126 $1,986 83.0% 5.1% (7.9%) 13.5% 5.5% 25.7% 3.9x 3.8x 13.3x 21.9x
Amazon.com, Inc. AMZN $406,268 $396,947 99.7% 60.8% 160.9% 20.2% 27.9% 8.7% 3.2x 3.0x 36.5x NM
Alibaba Group BABA 275,348 263,975 96.3% 79.7% NA 29.3% 43.0% 36.9% 15.7x 13.2x 42.6x 23.5x
eBay Inc. EBAY 38,459 37,145 99.1% 32.1% 39.7% (2.3%) 4.1% 32.8% 4.3x 4.3x 13.1x 20.0x
JD.com, Inc. JD 34,062 29,889 77.9% (1.5%) NA 54.7% 31.1% NM 1.0x 0.9x NM NM
Rakuten, Inc. 4755-JP 20,306 18,539 89.4% (0.6%) (13.8%) 19.2% 33.9% 20.0% 3.2x 2.6x 15.8x 50.5x
Liberty Interactiv e QVCA 20,385 15,205 69.7% (24.2%) (0.8%) (4.9%) 4.0% 17.6% 1.9x 2.0x 10.9x 17.5x
MercadoLibre, Inc. MELI 8,002 8,168 96.5% 104.0% 33.7% 17.1% 25.3% 24.8% 10.4x 9.8x 41.9x 65.9x
58.com Inc. WUBA 6,763 5,541 67.8% 4.8% NA 175.8% (73.5%) NM 1.1x 5.7x NM NM
Shopify, Inc. SHOP 3,244 3,170 95.0% 22.4% NA 94.9% 79.6% NM 9.6x 8.8x NM NM
LendingClub Corp LC 5,934 2,417 41.2% (53.0%) NA 72.3% (51.8%) NM 8.9x 12.6x NM NM
Cnov a NV CNV 2,520 2,370 99.4% 77.8% NA (57.5%) 88.7% NM 1.6x 0.7x NM NM
Wayfair, Inc. W 3,065 1,897 78.7% 9.8% NA 70.6% 52.1% NM 1.1x 0.9x NM NM
Ov erstock.com, Inc. OSTK 311 388 85.4% (9.9%) (49.7%) 10.7% 6.4% 0.9% 0.2x 0.2x 20.5x 40.7x
Median $8,002 $8,168 89.4% 9.8% 16.5% 20.2% 27.9% 20.0% 3.2x 3.0x 20.5x 32.1x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
APPENDIX: INTERNET & DIGITAL MEDIA SECTOR PUBLIC COMPANY METRICS
TRAVEL
21
FLASH SALES / PROMOTIONAL / COUPONS
VERTICAL eCOMMERCE
Marketing
Technology
Advertising
Networks /
Search Portals
Local Online
Advertising
Internet
Bellwethers
Marketplace
Proprietary Data
Networks
Community
Based Info
Services
Travel
Flash Sales /
Promotional /
Coupons
Vertical
eCommerce
Digital Media &
Online Content
Social Media
Gaming
Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /
Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. LTM EBITDA Earnings
As of September 30, 2016.Enterprise value and market capitalization figures in millions USD.Market capitalization figures exclude non-traded shares
Priceline Group Inc PCLN $76,545 $72,731 99.3% 18.0% 41.7% 9.3% 15.6% 37.9% 7.8x 7.2x 20.6x 28.5x
Ctrip.com CTRP 24,016 23,175 81.2% 48.8% 55.9% 45.6% 66.1% 4.9% 10.6x 8.3x NM 58.1x
Expedia, Inc. EXPE 20,949 16,001 83.1% (2.7%) 120.8% 15.8% 31.1% 13.6% 2.5x 2.4x 18.4x 84.3x
TripAdv isor, Inc. TRIP 8,530 8,394 72.2% (1.5%) (19.5%) 19.7% 2.2% 17.0% 5.8x 5.6x 34.1x 42.4x
MakeMyTrip Ltd. MMYT 1,022 996 99.2% 69.5% 56.9% 12.1% (34.0%) NM 2.7x 9.7x NM NM
Trav elzoo Inc. TZOO 153 178 96.7% 54.4% (52.4%) (0.3%) (5.9%) 9.6% 1.2x 1.1x 12.2x 29.0x
Median $14,740 $12,197 89.9% 33.4% 48.8% 14.0% 8.9% 13.6% 4.2x 6.4x 19.5x 42.4x
Groupon, Inc. GRPN $2,504 $2,947 86.7% 58.5% (56.0%) (2.3%) (0.6%) 1.4% 0.8x 0.8x NM NM
Quotient Technology Incorporated QUOT 966 1,117 92.7% 47.9% NA 7.0% 13.7% NM 3.6x 3.6x NM NM
RetailMeNot, Inc. SALE 321 481 76.5% 20.3% (71.3%) (5.9%) 15.9% 11.9% 1.2x 1.1x 10.2x 55.7x
Median $966 $1,117 86.7% 47.9% (63.6%) (2.3%) 13.7% 6.6% 1.2x 1.1x 10.2x 55.7x
GrubHub, Inc. GRUB $3,419 $3,663 96.4% 75.5% NA 42.5% 34.5% 23.9% 7.5x 7.0x 31.4x NM
Cimpress N.V. CMPR 4,029 3,200 97.1% 31.8% 77.3% 19.7% 16.1% 11.1% 2.2x 2.1x 19.5x NM
Shutterstock, Inc. SSTK 1,992 2,231 97.8% 113.5% (13.9%) 29.6% 18.7% 14.1% 4.1x 3.9x 29.3x NM
Stamps.com Inc. STMP 1,777 1,632 76.4% 27.3% 105.2% 45.3% 58.2% 30.3% 5.4x 5.3x 17.9x 35.4x
Etsy, Inc. ETSY 1,421 1,624 91.0% 0.9% NA 39.8% 31.7% 12.6% 4.1x 3.9x 32.9x NM
Shutterfly, Inc. SFLY 1,823 1,517 81.8% 25.0% (21.7%) 15.0% 8.9% 13.4% 1.6x 1.6x 12.2x 27.1x
Chegg, Inc. CHGG 591 645 88.3% (0.6%) NA (1.1%) (16.9%) NM 2.2x 2.4x NM NM
PetMed Express, Inc. PETS 361 416 95.8% 26.4% 19.7% 2.3% 2.2% 14.7% 1.5x 1.5x 10.3x 19.1x
Blue Nile, Inc. NILE 365 400 88.3% 7.8% (14.0%) 1.4% (1.4%) 4.0% 0.8x 0.8x 19.4x 41.9x
1-800-FLOWERS.COM, Inc. FLWS 826 321 84.3% (0.4%) 83.8% 4.6% 4.5% 6.5% 0.7x 0.7x 10.8x 12.6x
eHealth, Inc. EHTH 138 205 74.0% (12.4%) (66.0%) 5.5% 3.6% NM 0.7x 0.7x NM NM
Median $1,421 $1,517 88.3% 25.0% 2.9% 15.0% 8.9% 13.4% 2.2x 2.1x 19.4x 27.1x
PAGE |
TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
APPENDIX: INTERNET & DIGITAL MEDIA SECTOR PUBLIC COMPANY METRICS
DIGITAL MEDIA & ONLINE CONTENT
22
SOCIAL MEDIA
GAMING
Marketing
Technology
Advertising
Networks /
Search Portals
Local Online
Advertising
Internet
Bellwethers
Marketplace
Proprietary Data
Networks
Community
Based Info
Services
Travel
Flash Sales /
Promotional /
Coupons
Vertical
eCommerce
Digital Media &
Online Content
Social Media
Gaming
Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /
Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. LTM EBITDA Earnings
As of September 30, 2016.Enterprise value and market capitalization figures in millions USD.Market capitalization figures exclude non-traded shares
Tencent Holdings Ltd. 700-HK $239,398 $259,975 96.5% 64.6% 161.7% 27.7% 36.8% 42.0% 12.4x 10.7x 29.5x 56.7x
SINA Corp. SINA 4,545 5,233 86.6% 93.1% (8.3%) 14.6% 13.1% 9.4% 4.9x 4.6x NM NM
IAC IAC 5,359 4,609 85.4% (4.2%) 13.9% 3.9% (3.8%) 11.8% 1.7x 1.7x 14.3x NM
Pandora Media, Inc. P 3,406 3,311 64.5% (30.8%) (43.9%) 26.4% 20.0% NM 2.6x 2.4x NM NM
WebMD Health Corp. WBMD 2,781 1,938 73.6% 22.6% 62.7% 9.6% 10.9% 27.5% 4.0x 3.9x 14.7x 23.5x
Sohu.com, Inc. SOHU 905 1,713 74.4% 5.5% (44.2%) 15.8% (13.0%) 9.4% 0.5x 0.5x 5.7x NM
XO Group Inc. XOXO 396 511 98.8% 38.0% 44.4% (1.4%) 7.6% 15.7% 2.7x 2.6x 16.9x NM
Blucora, Inc. BCOR 856 465 73.9% (16.2%) (52.6%) 13.5% NA 39.6% 7.9x 1.9x 20.0x NM
Ev eryday Health, Inc. EVDY 342 257 72.6% (10.8%) NA 25.9% 10.8% 10.4% 1.4x 1.3x 13.3x NM
TechTarget, Inc. TTGT 272 219 84.0% (7.2%) 61.8% 5.3% (1.2%) 15.6% 2.4x 2.5x 15.5x 30.5x
Demand Media, Inc. DMD 57 116 87.9% 37.1% (54.9%) (26.9%) (12.7%) NM 0.5x 0.5x NM NM
Townsquare Media, Inc. TSQ 812 98 77.5% (3.9%) NA 18.0% 19.7% 18.7% 1.7x 1.5x 9.2x 10.0x
Median $880 $1,112 80.7% 0.8% 2.8% 14.1% 10.8% 15.6% 2.5x 2.2x 14.7x 27.0x
Facebook, Inc. FB $347,767 $297,966 97.2% 41.0% 154.4% 43.8% 51.0% 52.0% 14.1x 12.8x 27.1x NM
Twitter, Inc. TWTR 14,226 16,313 72.3% (6.6%) NA 58.1% 15.1% 3.1% 5.6x 5.6x NM NM
Weibo Corp WB 10,721 4,999 95.9% 336.4% NA 43.5% 32.7% 16.8% 20.0x 16.9x NM NM
Momo Inc MOMO 4,007 3,245 87.8% 80.1% NA 200.4% 209.0% 12.0% 17.8x 9.7x NM NM
Match Group, Inc. MTCH 5,794 744 97.7% NA NA 14.9% 20.3% 29.4% 5.0x 4.7x 16.8x 5.6x
Spark Networks, Inc. LOV 37 41 38.2% (47.3%) (80.8%) (21.9%) (22.6%) NM 0.9x 1.0x NM NM
Median $8,257 $4,122 91.9% 41.0% 36.8% 43.6% 26.5% 16.8% 9.9x 7.6x 22.0x 5.6x
Nintendo Co., Ltd. 7974-JP $22,965 $37,220 85.5% 51.8% 130.7% (8.2%) 18.1% 5.4% 6.0x 4.6x NM 91.3x
Activ ision Blizzard, Inc. ATVI 35,824 32,847 98.2% 43.4% 162.1% 5.8% 40.7% 36.7% 6.0x 5.5x 16.4x 37.7x
NetEase, Inc. NTES 27,649 31,928 94.6% 105.1% 232.1% 91.0% 55.2% 33.9% 5.7x 4.9x 16.7x 29.8x
Electronic Arts Inc. EA 23,429 25,685 99.5% 27.1% 223.2% (3.2%) 13.2% 26.6% 5.2x 4.8x 19.6x 20.5x
Ubisoft Entertainment SA UBI-FR 4,441 4,287 88.3% 83.0% 135.4% (4.8%) 24.8% 43.9% 2.7x 2.4x 6.2x 38.2x
Take-Two Interactiv e Software, Inc. TTWO 4,082 3,878 96.4% 58.0% 145.3% 30.5% 16.0% 16.5% 2.7x 2.5x 16.2x NM
Zynga Inc. ZNGA 1,695 2,226 96.4% 28.2% (24.2%) 10.8% (2.2%) NM 2.3x 2.3x NM NM
GREE, Inc. 3632-JP 507 1,347 89.4% 23.2% (28.0%) (24.4%) (3.6%) 20.3% 0.9x 0.8x 4.2x 8.5x
Glu Mobile Inc. GLUU 151 298 50.1% (46.0%) (22.8%) 12.0% (20.7%) NM 0.7x 0.8x NM NM
Median $4,441 $4,287 94.6% 43.4% 135.4% 5.8% 16.0% 26.6% 2.7x 2.5x 16.3x 33.8x
Healthcare & Life Sciences
IndustrialsEnergy, Power & Infrastructure
Industrials
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QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
Technology, Media & Telecom
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TECHNOLOGY, MEDIA & TELECOM
QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 3Q 2016
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