software equity group flash...

Public SaaS Companies

Select M&A Transactionsand

Financial and Stock Market PerformancePublic Software Companies By Product Category

August 2012

Software Equity Group Flash Report

Public SaaS CompaniesPublic Internet Companies By Product Category

12220 El Camino Real, #320

[email protected]

Copyright © 2012 by Software Equity Group, L.L.C., All Rights Reserved

San Diego, CA 92130

Software Equity Group, L.L.C.

p: (858) 509-2800f: (858) 509-2818

http://www.softwareequity.com/

mailto:[email protected]

ABOUT OUR FIRM

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domainexpertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.


THE SEG SOFTWARE COMPANY MENTORING PROGRAM

As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever they’d like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and financings in their product category. And the best news – we don’t charge for this mentoring advice. It’s complimentary. It’s our way of building value, and relationships.

We’re looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. We’ll then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, we’ll discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. We’ll assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. We’ll discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. We’re a terrific sounding board. We’ll give you an informed, honest and frank opinion – that’s what we’re known for. And we’ll offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide.

If you run a profitable software company with revenue in excess of $10 million, and you’re interested in learning more about SEG’s complimentary, no obligation mentoring .2800-509-858or [email protected], please contact Kris Beible at

ADDITIONAL RESEARCH

http://www.softwareequity.com/research_quarterly_reports.aspx, please visit: 03Q1For our complimentary current and archived Quarterly Reports from

http://www.softwareequity.com/research_flash_reports.aspx, please visit: 2008For our complimentary current and archived Monthly Flash Reports from July

http://www.softwareequity.com/research_annual_reports.aspx, please visit: 2010through 2003 For our Annual Reports from


mailto:[email protected]

http://www.softwareequity.com/research_quarterly_reports.aspx

http://www.softwareequity.com/research_flash_reports.aspx

http://www.softwareequity.com/research_annual_reports.aspx

CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash Flow

List of Commonly Used Acronyms

FORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date



July 2012

Select Software Industry M&A Transactions


Select July 2012 Software Industry M&A TransactionsDate

Announced EV/ Revenue

07/31/2012 Allot Communications Ltd. (NasdaqGS:ALLT) Oversi Networks Ltd. - $21.00 -07/30/2012 Synopsys Inc. (NasdaqGS:SNPS) Ciranova, Inc. - - -07/30/2012 Roper Industries Inc. (NYSE:ROP) Sunquest Information Systems, Inc. - $1,390.00 -07/26/2012 Brightcove, Inc. (NasdaqGM:BCOV) Zencoder, Inc. - $30.00 -07/26/2012 Mobiquity, Inc. Smartsoft Mobile Solutions, Inc. - - -07/26/2012 Thomson Reuters Corporation (TSX:TRI) MarkMonitor, Inc. - - -07/24/2012 SciQuest, Inc. (NasdaqGS:SQI) Upside Software, Inc. - $22.00 -07/23/2012 Merge Healthcare Incorporated (NasdaqGS:MRGE) Advanced Clinical Software, Inc. - - -07/23/2012 RealPage, Inc. (NasdaqGS:RP) Rent Mine Online Inc. $1.50 $9.50 6.3x07/20/2012 Facebook, Inc. (NasdaqGS:FB) Acrylic Software - - -07/20/2012 Google Inc. (NasdaqGS:GOOG) Sparrow SAS - - -07/20/2012 Azumio, Inc. SkyHealth LLC - - -07/19/2012 NetScout Systems, Inc. (NasdaqGS:NTCT) Accanto Systems Srl, Intelligent Customer - - -07/19/2012 Oracle Corporation (NasdaqGS:ORCL) Skire, Inc. - - -07/18/2012 AlphaPoint Technology, Inc. (OTCBB:APPO) SoftPay Solutions LLC - - -07/17/2012 Autodesk, Inc. (NasdaqGS:ADSK) Socialcam Inc. - $60.00 -07/17/2012 TiVo Inc. (NasdaqGS:TIVO) TRA, Inc. - $20.00 -07/17/2012 PayPal, Inc. Lumber Labs, Inc. - - -07/16/2012 Accuray Incorporated (NasdaqGS:ARAY) Morphormics Inc. - $5.70 -

Acquirer TargetTarget TTM Revenue

($mm)Implied Enterprise

Value ($mm)

07/16/2012 Accuray Incorporated (NasdaqGS:ARAY) Morphormics Inc. $5.7007/16/2012 CSG Systems International Inc. (NasdaqGS:CSGS) Ascade AB - $19.00 -07/16/2012 Wolters Kluwer Financial Services, Inc. Financial Architects nv - - -07/13/2012 Cisco Systems, Inc. (NasdaqGS:CSCO) Virtuata, Inc. - - -07/13/2012 Intel Corporation (NasdaqGS:INTC) Whamcloud Incorporated - - -07/13/2012 NLbuzz B.V. The Saints BV - - -07/13/2012 UNICOM Systems, Inc. DETEC Software Products GmbH $3.67 - -07/12/2012 Aurora Capital Group Market Track, LLC - - -07/12/2012 Dentsu Inc. (TSE:4324) Aegis Group plc (LSE:AGS) $1,766.67 $4,517.03 2.6x07/11/2012 IHS Inc. (NYSE:IHS) Invention Machine Corporation - $40.00 -07/11/2012 Xerox Corp. (NYSE:XRX) Wireless Data Services, Ltd. - - -07/11/2012 SNL Financial LC SwiftKnowledge, LLC - - -07/10/2012 Oracle Corporation (NasdaqGS:ORCL) Involver Inc. $15.00 - -07/10/2012 Environmental Systems Research Institute, Inc. GeoIQ, Inc. - - -07/10/2012 KANA Software, Inc. Sword Ciboodle Ltd - - -07/10/2012 Net@Work, Inc. Synergy Plus Solutions, Inc. - - -07/09/2012 salesforce.com, inc (NYSE:CRM) GoInstant Inc. - $70.00 -07/09/2012 Aareon AG 1st Touch Limited - - -07/09/2012 ICOA, Inc. (OTCPK:ICOA) Tango Software Corp. - - -07/09/2012 Red Giant Software LLC Singular Software Inc. - - -07/09/2012 Squarefactor, Inc. Intellavia LLC - - -07/06/2012 TeleCommunication Systems Inc. (NasdaqGS:TSYS) microDATA GIS, Inc. - $37.00 -07/05/2012 Asure Software, Inc. (NasdaqCM:ASUR) PeopleCube, Inc. - $13.87 -07/03/2012 Lender Processing Services, Inc. (NYSE:LPS) LendingSpace Partners, LLC - - -07/03/2012 Reckon Ltd. (ASX:RKN) Lindenhouse Software Limited - $22.63 -07/02/2012 Cadence Design Systems Inc. (NasdaqGS:CDNS) Sigrity, Inc. - $78.30 -07/02/2012 Meridian Project Systems, Inc. WinEstimator, Inc. - - -07/02/2012 Numark Industries, LP M-Audio LLC and AIR Software Group - $13.90 -07/02/2012 Rubik Financial Limited (ASX:RFL) Coin Software Pty Ltd. - $27.37 -07/02/2012 Xerox Litigation Services Lateral Data, LP - $30.00 -

Category Performance

SEG Software Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA

YoY Stock Market Return

SEG Software Index $1,339.7 $1,280.9 $437.0 67.4% 19.6% 13.0% 2.3x 11.1x 2.2x 8.7x -3.4% Billing & Service Management $676.3 $555.1 $500.3 56.0% 19.2% 9.8% 1.3x 6.9x 1.5x 6.1x -19.6% Business Intelligence $1,141.9 $933.8 $387.0 78.4% 8.5% 15.8% 2.1x 29.2x 1.9x 15.3x -22.0% Development Platforms $2,024.7 $1,977.7 $1,006.0 76.2% 22.1% 5.4% 2.0x 8.8x 1.9x 7.4x -3.4% Engineering & PLM $2,566.7 $2,468.6 $1,032.5 84.0% 21.1% 13.5% 2.5x 11.8x 2.2x 8.1x 18.5% Enterprise Resource Planning $5,856.8 $5,665.2 $2,137.7 71.6% 29.0% 10.1% 2.7x 9.0x 2.4x 6.9x 2.7% Financial & Accounting $2,046.4 $2,652.8 $1,394.1 63.1% 24.4% 8.6% 2.7x 10.0x 2.6x 9.2x 12.7% Gaming $823.2 $719.2 $769.4 57.8% 9.2% 8.2% 0.7x 8.2x 0.5x 3.4x -26.5% Healthcare $504.8 $514.8 $257.5 63.1% 21.1% 21.8% 2.4x 13.9x 2.3x 9.0x -23.6% IT Conglomerates $149,307.0 $135,504.0 $73,723.0 71.6% 36.1% 4.2% 2.7x 8.4x 2.5x 6.9x 2.7% Mobile Solutions/Content $278.0 $138.4 $167.5 60.9% 6.6% 19.7% 1.5x 14.2x 1.4x 8.2x -37.6% Networking & Network Performance $2,126.3 $2,155.8 $889.7 68.1% 16.8% 17.3% 2.3x 13.0x 2.0x 8.6x -8.4% Security $597.1 $636.1 $219.7 79.0% 19.9% 14.4% 2.2x 8.7x 3.3x 11.7x -5.3% Storage, Data Mgmt & Integration $8,004.1 $6,166.0 $3,476.7 74.6% 22.6% 6.0% 2.4x 8.8x 2.3x 7.4x 0.0% Supply Chain Management & $726.8 $642.1 $244.9 61.1% 19.8% 16.9% 2.1x 10.6x 2.0x 11.9x 22.4% Systems Management $10,377.1 $9,558.1 $2,174.0 84.6% 25.8% 18.1% 5.2x 20.8x 4.5x 14.2x 8.7% Vertical - Finance $1,915.7 $1,958.7 $375.5 68.9% 36.9% 12.6% 4.6x 11.9x 3.4x 9.0x 18.5% Vertical - Other $1,175.9 $1,129.9 $333.4 56.0% 13.9% 24.6% 2.7x 20.6x 2.5x 12.5x -3.6%

Category Name

TTM Revenue Growth 13.0%TTM EBITDA Growth 10.9%TTM Earnings Growth 13.3%Gross Profit Margin 67.4%EBITDA Margin 19.6%Net Income Margin 10.8%SG&A Expenses as a % of Total Revenue 36.8%R&D Expenses as a % of Total Revenue 14.6%

Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 17.3%Avg Days Outstanding: Accounts Receivable 66Avg Days Outstanding: Accounts Payable 37Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 15.3%Cash from Operations Growth (YoY) 15.0%Cash from Investing Growth (YoY) -53.2%Cash from Financing Growth (YoY) -24.6%Levered FCF Growth (YoY) 16.0%


August 2012 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-5%

0%

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20%

25%SEG SW Index Software Stock Market Return: Jan - Jul 2012

DOW S&P NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Amdocs Limited DOX $4,992.3 $4,096.8 $3,237.0 35.7% 18.4% 3.5% 1.3x 6.9x 1.2x 5.9x -6.2%AsiaInfo Holdings, Inc. ASIA $754.8 $501.1 $500.3 40.7% 15.2% 9.8% 1.0x 6.6x 0.9x 5.6x -31.9%CSG Systems International, Inc. CSGS $568.0 $684.6 $739.2 50.4% 22.3% 13.3% 0.9x 4.2x 0.9x 4.2x -0.3%Evolving Systems, Inc. EVOL $64.6 $50.9 $21.8 64.8% 10.7% 6.0% 2.3x 22.0x 2.0x 12.0x -19.6%MIND C.T.I. Ltd. MNDO $31.5 $14.7 $20.4 59.9% 21.1% 7.3% 0.7x 3.4x n/a n/a -34.4%NeuStar, Inc NSR $2,368.9 $2,725.2 $732.7 77.3% 42.0% 30.8% 3.7x 8.9x 3.2x 6.5x 37.0%Synchronoss Technologies, Inc. SNCR $676.3 $555.1 $252.9 56.0% 19.2% 25.6% 2.2x 11.4x 1.9x 6.3x -39.6%

Median: $676.3 $555.1 $500.3 56.0% 19.2% 9.8% 1.3x 6.9x 1.5x 6.1x -19.6%


Current Ratio 2.6xQuick Ratio 2.3xCash as Percent of Market Cap 17.9%Avg Days Outstanding: Accounts Receivable 73.6Avg Days Outstanding: Accounts Payable 29.3Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 15.6%Cash from Operations Growth (YoY) 17.9%Cash from Investing Growth (YoY) -98.6%Cash from Financing Growth (YoY) 10.8%Levered FCF Growth (YoY) 42.2%






-15%

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-5%

0%

5%

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15%

20%

25%Billing and Service Management Software Stock Market Return: Jan - Jul 2012

Billing & Service Management S&P NASDAQ SEG Internet Index

SEG Software Index Category: Business Intelligence


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Actuate Corporation BIRT $314.9 $247.2 $140.2 84.3% 22.4% 1.6% 1.8x 7.9x 1.7x 5.8x 5.3%MicroStrategy Incorporated MSTR $1,299.8 $1,104.3 $588.9 74.5% 6.1% 14.6% 1.9x 30.7x 1.6x 15.3x -25.4%Pegasystems Inc. PEGA $1,039.4 $951.4 $425.5 60.9% 6.5% 16.9% 2.2x 34.6x 1.9x 17.1x -32.0%Progress Software Corporation PRGS $1,244.4 $916.2 $503.7 82.3% 18.8% -7.2% 1.8x 9.7x 1.9x 8.0x -18.5%PROS Holdings PRO $381.4 $310.5 $106.6 72.7% 10.5% 31.5% 2.9x 27.8x 2.6x 15.3x -14.5%Qlik Technologies QLIK $1,714.9 $1,519.7 $348.5 89.5% 6.5% 29.7% 4.4x 67.5x 3.7x 25.4x -33.7%

Median: $1,141.9 $933.8 $387.0 78.4% 8.5% 15.8% 2.1x 29.2x 1.9x 15.3x -22.0%









-10%

-5%

0%

5%

10%

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20%

25%

30%

35%Business Intelligence Software Stock Market Return: Jan - Jul 2012

Business Intelligence S&P NASDAQ SEG Internet Index

SEG Software Index Category: Development Platforms


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Actuate Corporation BIRT $314.9 $247.2 $140.2 84.3% 22.4% 1.6% 1.8x 7.9x 1.7x 5.8x 5.3%Adobe Systems Incorporated ADBE $15,249.6 $13,761.5 $4,335.0 89.4% 34.4% 7.1% 3.2x 9.2x 3.0x 6.8x 11.9%BSQUARE Corporation BSQR $33.8 $17.0 $96.4 20.3% -0.1% -8.9% 0.2x n/a n/a n/a -50.5%Compuware Corporation CPWR $2,024.7 $1,977.7 $1,006.0 66.2% 17.5% 5.6% 2.0x 11.2x 1.9x 8.2x -3.4%GeekNet GKNT $126.9 $94.4 $124.8 26.8% 1.0% 19.3% 0.8x 75.1x 0.7x 13.6x -19.8%Magic Software Enterprises Ltd. MGIC $159.5 $119.6 $118.5 42.0% 18.1% 18.2% 1.0x 5.6x 0.9x n/a -16.0%Microsoft Corporation MSFT $248,483.9 $199,214.9 $73,723.0 76.2% 41.7% 5.4% 2.7x 6.5x 2.5x 5.8x 8.2%Oracle Corporation ORCL $149,307.0 $135,504.0 $37,121.0 78.8% 43.2% 4.2% 3.7x 8.4x 3.5x 6.9x 0.0%Progress Software Corporation PRGS $1,244.4 $916.2 $503.7 82.3% 18.8% -7.2% 1.8x 9.7x 1.9x 8.0x -18.5%Red Hat, Inc. RHT $10,377.1 $9,558.1 $1,183.1 84.6% 22.1% 22.6% 8.1x 36.5x 6.9x 24.2x 27.8%Software AG XTRA:SOW $2,835.4 $2,853.5 $1,371.4 61.6% 27.8% -4.4% 2.1x 7.5x n/a n/a -33.3%

Median: $2,024.7 $1,977.7 $1,006.0 76.2% 22.1% 5.4% 2.0x 8.8x 1.9x 7.4x -3.4%

TTM Revenue Growth 5.4%TTM EBITDA Growth 3.4%TTM Earnings Growth -19.2%Gross Profit Margin 76.2%EBITDA Margin 22.1%Net Income Margin 13.7%SG&A Expenses as a % of Total Revenue 29.3%R&D Expenses as a % of Total Revenue 12.2%








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25%Development Platforms Software Stock Market Return: Jan - Jul 2012

Development Platforms S&P NASDAQ SEG Internet Index

SEG Software Index Category: Engineering & PLM


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ANSYS, Inc. ANSS $5,641.0 $5,199.4 $751.5 87.4% 47.3% 19.9% 6.9x 14.6x n/a 12.1x 19.7%Autodesk, Inc. ADSK $7,840.8 $6,328.8 $2,275.9 89.7% 21.5% 13.5% 2.8x 12.9x 2.5x 8.8x -0.8%Cadence Design Systems, Inc CDNS $3,364.7 $3,088.0 $1,242.8 84.3% 21.1% 19.9% 2.5x 11.8x 2.3x 7.8x 18.5%Cimatron Ltd. CIMT $35.0 $20.7 $42.3 87.9% 16.0% 9.6% 0.5x 3.1x n/a n/a 10.3%Dassault Systèmes DSY $12,129.7 $10,487.1 $2,421.6 86.6% 31.3% 12.1% 4.3x 13.8x n/a n/a 10.9%GSE Systems Inc. GVP $42.3 $25.1 $52.2 32.2% 7.0% 8.0% 0.5x 6.9x 0.5x n/a 4.5%Mentor Graphics Corp MENT $1,704.2 $1,802.9 $1,032.5 84.0% 17.9% 7.1% 1.7x 9.7x 1.6x 7.3x 35.9%Parametric Technology Corporation PMTC $2,566.7 $2,468.6 $1,269.8 69.9% 17.4% 15.9% 1.9x 11.2x 1.9x 7.8x 4.0%PDF Solutions Inc PDFS $275.8 $230.3 $77.7 57.4% 18.4% 22.9% 3.0x 16.1x 2.6x 8.3x 61.0%Stratasys, Inc. SSYS $1,328.3 $1,286.2 $177.9 52.6% 22.3% 29.9% 7.2x 32.4x 6.7x 22.8x 144.2%Synopsys Inc SNPS $4,517.1 $3,970.5 $1,635.4 81.9% 22.6% 11.2% 2.4x 10.8x 2.2x 7.7x 28.1%

Median: $2,566.7 $2,468.6 $1,032.5 84.0% 21.1% 13.5% 2.5x 11.8x 2.2x 8.1x 18.5%









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30%Engineering & PLM Software Stock Market Return: Jan - Jul 2012

Engineering, PLM & CAD/CAM S&P NASDAQ SEG Internet Index

SEG Software Index Category: Enterprise Resource Planning


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


American Software, Inc. AMSW.A $220.5 $161.1 $102.6 55.3% 17.5% 19.9% 1.6x 9.0x 1.4x n/a -5.0%Oracle Corporation ORCL $149,307.0 $135,504.0 $37,121.0 78.8% 43.2% 4.2% 3.7x 8.4x 3.5x 6.9x 0.0%QAD Inc. QADA $217.8 $155.5 $251.6 57.9% 9.4% 10.1% 0.6x 6.6x 0.6x 5.2x 28.2%Sage Group plc LSE:SGE $5,856.8 $5,665.2 $2,137.7 93.7% 29.0% 8.8% 2.7x 9.1x n/a n/a 3.8%SAP SAP $76,412.4 $76,887.6 $19,214.0 71.6% 36.1% 13.2% 4.0x 11.1x 3.7x 9.9x 2.7%

Median: $5,856.8 $5,665.2 $2,137.7 71.6% 29.0% 10.1% 2.7x 9.0x 2.4x 6.9x 2.7%



Levered FCF Margin 15.3%Cash from Operations Growth (YoY) 15.2%Cash from Investing Growth (YoY) -37.8%Cash from Financing Growth (YoY) -226.0%Levered FCF Growth (YoY) -8.5%






-5%

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20%

25%Enterprise Resource Planning Software Stock Market Return: Jan - Jul 2012

Enterprise Resource Planning S&P NASDAQ SEG Internet Index

SEG Software Index Category: Financial & Accounting


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ACI Worldwide, Inc. ACIW $1,716.5 $1,930.6 $534.6 67.7% 19.8% 17.2% 3.6x 18.3x 2.6x 9.7x 21.1%Bottomline Technologies EPAY $703.0 $584.6 $217.1 54.4% 16.0% 22.9% 2.7x 16.9x 2.4x 14.6x -17.9%DST Systems, Inc. DST $2,376.3 $3,375.0 $2,500.8 17.3% 14.3% 8.4% 1.3x 9.5x 1.6x 7.9x 5.7%Fair Isaac Corporation FICO $1,458.6 $1,811.9 $650.6 70.6% 29.0% 5.9% 2.8x 9.6x 2.7x 9.2x 44.9%Fiserv FISV $9,860.9 $12,973.9 $4,432.0 41.6% 30.2% 5.1% 2.9x 9.7x 2.8x 8.7x 19.7%Intuit Inc INTU $17,182.6 $16,159.6 $4,151.0 82.4% 34.3% 9.4% 3.9x 11.4x 3.5x 9.2x 25.3%NetSol Technologies Inc. NTWK $36.4 $50.9 $32.3 58.4% 15.3% -19.9% 1.6x 10.3x 1.2x 4.4x -44.9%Sage Group plc LSE:SGE $5,856.8 $5,665.2 $2,137.7 93.7% 29.0% 8.8% 2.7x 9.1x n/a n/a 3.8%

Median: $2,046.4 $2,652.8 $1,394.1 63.1% 24.4% 8.6% 2.7x 10.0x 2.6x 9.2x 12.7%



Levered FCF Margin 15.0%Cash from Operations Growth (YoY) -2.1%Cash from Investing Growth (YoY) -24.3%Cash from Financing Growth (YoY) -4.4%Levered FCF Growth (YoY) -8.4%






-5%

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10%

15%

20%

25%Financial & Accounting Software Stock Market Return: Jan - Jul 2012

Financial & Accounting S&P NASDAQ SEG Internet Index

SEG Software Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Activision Blizzard ATVI $13,373.9 $9,897.9 $4,407.0 61.8% 24.6% -7.6% 2.2x 9.1x 2.1x 5.9x 1.6%Electronic Arts Inc. EA $3,569.7 $2,259.7 $4,099.0 62.2% 6.7% 8.6% 0.6x 8.2x 0.5x 3.4x -49.5%GameLoft SA ENXTPA:GF $447.1 $401.8 $223.9 88.9% 14.8% 14.1% 1.8x 12.1x n/a n/a -17.0%Konami Corporation TSE: 9766 $2,878.6 $2,410.0 $3,252.5 34.6% 18.9% 0.1% 0.7x 3.9x 0.7x 3.4x -20.8%Majesco Entertainment Company COOL $74.4 $42.7 $141.3 35.5% 9.2% 21.6% 0.3x 3.3x 0.3x 2.5x -26.5%TakeTwo Interactive TTWO $823.2 $719.2 $717.6 29.7% -23.2% -34.5% 1.0x n/a 0.4x 2.5x -32.3%THQ Inc. THQI $34.7 $58.8 $769.4 57.8% -5.0% 8.2% 0.1x n/a 0.1x n/a -81.0%

Median: $823.2 $719.2 $769.4 57.8% 9.2% 8.2% 0.7x 8.2x 0.5x 3.4x -26.5%

TTM Revenue Growth 8.2%TTM EBITDA Growth -8.1%TTM Earnings Growth 24.4%Gross Profit Margin 57.8%EBITDA Margin 9.2%Net Income Margin 6.0%SG&A Expenses as a % of Total Revenue 25.3%R&D Expenses as a % of Total Revenue 11.9%








-40%

-30%

-20%

-10%

0%

10%

20%

30%Gaming Software Stock Market Return: Jan - Jul 2012

Gaming S&P NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Accelrys Inc. ACCL $449.7 $304.3 $153.8 75.5% 9.9% 19.5% 2.0x 19.9x 1.8x 8.7x 11.4%Allscripts Healthcare Solutions Inc. MDRX $1,769.2 $1,939.2 $1,486.7 43.8% 15.8% 19.9% 1.3x 8.3x 1.3x 5.4x -48.9%Cerner Corporation CERN $12,638.1 $11,834.3 $2,415.7 79.0% 27.2% 24.5% 4.9x 18.0x 4.3x 13.5x 11.0%Computer Programs and Sys, Inc. CPSI $559.9 $537.1 $174.5 44.4% 24.1% 0.7% 3.1x 12.8x 2.6x 9.6x -31.1%Epocrates EPOC $189.0 $107.3 $110.7 60.4% 0.3% -0.7% 1.0x 282.4x 1.0x 9.1x -53.3%Greenway Medical Technologies, Inc GWAY $410.3 $373.9 $117.0 54.3% 7.7% 45.3% 3.2x 41.2x 2.6x 19.6x n/aMedAssets MDAS $769.8 $1,741.9 $613.2 79.3% 29.7% 27.6% 2.8x 9.6x 2.8x 8.9x 4.2%Merge Healthcare MRGE $281.3 $492.5 $248.0 63.0% 19.6% 24.2% 2.0x 10.2x 2.0x 9.8x -40.0%Nuance Communications, Inc. NUAN $6,332.2 $6,763.9 $1,549.8 67.0% 22.7% 22.9% 4.4x 19.3x 3.5x 8.7x 3.2%Omnicell, Inc. OMCL $439.3 $229.7 $266.9 54.5% 9.5% 15.2% 0.9x 9.1x 0.7x 4.6x -23.6%Quality Systems, Inc. QSII $950.7 $815.8 $447.7 63.2% 27.3% 20.7% 1.8x 6.7x 1.6x 6.1x -64.9%Simulations Plus, Inc. SLP $66.7 $53.8 $12.2 76.9% 29.2% 28.4% 4.4x 15.1x 5.1x 9.7x 25.8%

Median: $504.8 $514.8 $257.5 63.1% 21.1% 21.8% 2.4x 13.9x 2.3x 9.0x -23.6%









-10%

-5%

0%

5%

10%

15%

20%

25%Healthcare Software Stock Market Return: Jan - Jul 2012

Healthcare S&P NASDAQ SEG Internet Index

SEG Software Index Category: IT Conglomerates


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Hewlett Packard HPQ $36,005.7 $58,190.7 $124,040.0 22.9% 11.9% -3.0% 0.5x 3.9x 0.5x 3.6x -48.1%IBM IBM $224,215.2 $245,555.2 $106,099.0 47.4% 25.3% 1.5% 2.3x 9.2x 2.3x 8.5x 8.2%Microsoft Corporation MSFT $248,483.9 $199,214.9 $73,723.0 76.2% 41.7% 5.4% 2.7x 6.5x 2.5x 5.8x 8.2%Oracle Corporation ORCL $149,307.0 $135,504.0 $37,121.0 78.8% 43.2% 4.2% 3.7x 8.4x 3.5x 6.9x 0.0%SAP AG SAP $76,412.4 $76,887.6 $19,214.0 71.6% 36.1% 13.2% 4.0x 11.1x 3.7x 9.9x 2.7%

Median: $149,307.0 $135,504.0 $73,723.0 71.6% 36.1% 4.2% 2.7x 8.4x 2.5x 6.9x 2.7%









-5%

0%

5%

10%

15%

20%

25%IT Conglomerates Software Stock Market Return: Jan - Jul 2012

IT Conglomerates S&P NASDAQ SEG Internet Index

SEG Software Index Category: Mobile Solutions/Content


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Access TSE:4813 $270.9 -$24.1 $175.8 68.4% 15.2% -32.2% n/a n/a n/a n/a -9.6%Epocrates EPOC $189.0 $107.3 $110.7 60.4% 0.3% -0.7% 1.0x 282.4x 1.0x 9.1x -53.3%Glu Mobile, Inc. GLUU $297.4 $268.4 $77.2 86.3% -23.1% 18.5% 3.5x n/a 2.5x 56.8x -8.2%Google Inc GOOG $206,783.2 $173,182.2 $43,162.0 63.2% 35.8% 29.5% 4.0x 11.2x 3.0x 8.2x 4.7%Gree TSE:3632 $3,599.0 $2,939.5 $1,689.6 92.4% 53.0% 157.7% 1.7x 3.3x n/a n/a -32.8%Millennial Media Inc MM $782.9 $851.8 $115.1 39.2% -2.4% n/a 7.4x n/a 4.4x n/a n/aMotricity MOTR $24.4 $28.2 $116.6 60.9% -11.7% -12.2% 0.2x n/a n/a n/a -91.1%Myriad Group AG MYRN $158.1 $138.4 $61.0 43.5% 6.6% -39.6% 2.3x 34.3x n/a n/a -35.2%Nuance Communications, Inc. NUAN $6,332.2 $6,763.9 $1,549.8 67.0% 22.7% 22.9% 4.4x 19.3x 3.5x 8.7x 3.2%Opera OB:OPERA $807.7 $747.6 $167.5 49.0% 29.5% 24.6% 4.5x 15.1x n/a n/a 5.3%Qihoo 360 Technology Co. Ltd QIHU $1,770.0 $1,408.2 $214.2 88.9% 27.3% 202.1% 6.6x 24.1x 4.2x 11.3x -35.7%RealNetworks Inc RNWK $278.0 $111.0 $297.1 53.8% -14.5% -16.4% 0.4x n/a 0.4x n/a -40.8%Sky-mobi Limited MOBI $60.8 -$31.6 $108.8 31.3% 6.6% 1.5% n/a n/a n/a n/a -75.3%Smith Micro Software, Inc. SMSI $60.7 $23.1 $44.2 76.4% -75.0% -57.2% 0.5x n/a 0.4x n/a -52.8%SoundBite Communications, Inc. SDBT $38.6 $14.0 $45.0 59.4% 1.9% 16.6% 0.3x 16.1x n/a n/a n/aSynchronoss Technologies, Inc. SNCR $676.3 $555.1 $252.9 56.0% 19.2% 25.6% 2.2x 11.4x 1.9x 6.3x -39.6%TeleNav TNAV $239.4 $40.0 $218.5 78.3% 24.3% 3.8% 0.2x 0.8x 0.2x 2.4x -42.3%Trunkbow International Holdings TBOW $42.3 $46.2 $30.8 77.5% 40.9% 20.9% 1.5x 3.7x n/a n/a -65.6%Unwired Planet, Inc UPIP $179.4 $117.8 $166.6 57.7% -9.2% 249.8% 0.7x n/a n/a n/a -6.7%Velti Plc VELT $335.8 $304.5 $211.4 60.7% 10.8% 63.2% 1.4x 13.3x 1.0x 3.5x -67.6%Zynga, Inc ZNGA $2,286.5 $1,169.5 $1,271.5 71.0% -36.0% 43.1% 0.9x n/a 1.0x 6.7x n/a

Median: $278.0 $138.4 $167.5 60.9% 6.6% 19.7% 1.5x 14.2x 1.4x 8.2x -37.6%

TTM Revenue Growth 19.7%TTM EBITDA Growth 20.9%TTM Earnings Growth 23.2%Gross Profit Margin 60.9%EBITDA Margin 6.6%Net Income Margin -3.5%SG&A Expenses as a % of Total Revenue 37.8%R&D Expenses as a % of Total Revenue 22.1%








-30%

-20%

-10%

0%

10%

20%

30%

40%Mobile Solutions/Content Software Stock Market Return: Jan - Jul 2012

Mobile Solutions/Content S&P NASDAQ SEG Internet Index

SEG Software Index Category: Networking/Network Performance Mgmt


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Allot Communications Ltd. ALLT $781.3 $615.8 $92.7 71.2% 16.2% 39.4% 6.6x 41.1x 5.6x 24.0x 66.5%Aruba Networks, Inc. ARUN $1,592.1 $1,275.6 $491.3 70.0% 4.9% 36.4% 2.6x 52.7x 2.2x 9.4x -38.2%Brocade Communications Systems, BRCD $2,227.8 $2,352.4 $2,157.4 61.0% 19.6% 0.5% 1.1x 5.6x 1.0x 4.6x -9.7%Cisco Systems, Inc. CSCO $85,013.7 $52,991.7 $45,566.0 61.4% 28.2% 6.3% 1.2x 4.1x 1.1x 3.6x -0.6%Compuware Corporation CPWR $2,024.7 $1,977.7 $1,006.0 66.2% 17.5% 5.6% 2.0x 11.2x 1.9x 8.2x -3.4%F5 Networks, Inc. FFIV $7,528.4 $7,008.7 $1,329.3 82.7% 33.5% 21.8% 5.3x 15.8x 4.6x 11.3x 1.9%Juniper Networks, Inc. JNPR $9,293.6 $6,853.9 $4,332.8 62.5% 14.3% -2.1% 1.6x 11.1x 1.5x 7.2x -25.0%Keynote Systems, Inc. KEYN $241.5 $197.9 $121.5 50.1% 15.3% 26.5% 1.6x 10.6x 1.5x 8.1x -42.4%Radware Ltd. RDWR $670.4 $534.6 $179.1 80.7% 20.1% 15.1% 3.0x 14.9x 2.7x 11.4x -7.1%Riverbed Technology, Inc. RVBD $2,761.5 $2,334.0 $773.5 75.2% 15.6% 19.5% 3.0x 19.3x 2.6x 9.0x -37.5%

Median: $2,126.3 $2,155.8 $889.7 68.1% 16.8% 17.3% 2.3x 13.0x 2.0x 8.6x -8.4%









-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Networking/Network Performance Mgmt Software Stock Market Return: Jan - Jul 2012

Networking & Network Performance Management S&P NASDAQ SEG SW Index

SEG Software Index Category: Security


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


AVG Technologies N.V. AVG $541.1 $636.1 $311.0 86.8% 26.8% n/a 2.0x 7.6x 1.9x 6.4x n/aCheck Point Software Tech Ltd. CHKP $9,895.9 $8,524.2 $1,306.8 88.4% 56.6% 11.4% 6.5x 11.5x 6.0x 10.4x -16.2%Commtouch Software Ltd. CTCH $65.3 $43.3 $23.4 82.0% 21.3% 10.3% 1.9x 8.7x 1.6x 7.7x -27.2%Fortinet Inc. FTNT $3,871.7 $3,470.1 $483.5 72.7% 21.0% 29.0% 7.2x 34.2x 6.0x 22.5x 21.1%Guidance Software, Inc. GUID $237.9 $212.7 $114.2 73.2% 5.7% 17.4% 1.9x 32.9x 1.6x 13.1x 27.3%Imperva IMPV $597.1 $495.8 $83.4 79.0% -10.1% 37.9% 5.9x n/a 4.8x 199.1x n/aPalo Alto Networks, Inc. PANW $3,663.1 $3,572.8 $219.7 72.5% 3.6% n/a 16.3x 446.3x 10.0x 144.2x n/aProofpoint, Inc. PFPT $449.6 $551.3 $87.7 65.0% -12.5% n/a 6.3x n/a 5.3x n/a n/aSourcefire, Inc. FIRE $1,457.1 $1,307.0 $195.3 77.0% 9.3% 38.2% 6.7x 72.0x 6.0x 29.6x 101.4%Symantec Corporation SYMC $11,149.9 $10,166.9 $6,745.0 84.9% 26.5% 5.2% 1.5x 5.7x 1.5x 4.8x -18.8%Trend Micro TSE:4704 $3,906.9 $2,550.8 $1,153.3 81.5% 34.6% -0.6% 2.2x 6.4x n/a n/a -5.3%VASCO Data Security International VDSI $349.0 $263.8 $168.8 65.8% 18.3% 22.8% 1.6x 8.5x 1.5x n/a -4.3%Websense, Inc. WBSN $565.3 $573.0 $364.2 83.9% 19.9% 3.9% 1.6x 7.9x 1.6x 6.2x -33.0%

Median: $597.1 $636.1 $219.7 79.0% 19.9% 14.4% 2.2x 8.7x 3.3x 11.7x -5.3%









-10%

-5%

0%

5%

10%

15%

20%

25%Security Software Stock Market Return: Jan - Jul 2012

Security S&P NASDAQ SEG Internet Index

SEG Software Index Category: Storage, Data Management & Integration


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Brocade Communications Systems, BRCD $2,227.8 $2,352.4 $2,157.4 61.0% 19.6% 0.5% 1.1x 5.6x 1.0x 4.6x -9.7%CA, Inc. CA $11,374.2 $10,120.2 $4,796.0 86.7% 35.8% 6.0% 2.1x 5.9x 2.1x 5.6x 8.7%Cisco Systems, Inc. CSCO $85,013.7 $52,991.7 $45,566.0 61.4% 28.2% 6.3% 1.2x 4.1x 1.1x 3.6x -0.6%CommVault Systems, Inc. CVLT $2,037.2 $1,736.9 $426.4 86.7% 14.1% 25.4% 4.1x 28.8x 3.7x 18.2x 17.2%EMC EMC $55,217.3 $52,376.3 $20,960.4 62.3% 23.9% 13.0% 2.5x 10.4x 2.3x 8.0x 0.9%FalconStor Software, Inc. FALC $102.5 $65.5 $80.1 72.5% -10.9% -4.7% 0.8x n/a 0.7x n/a -49.8%IBM IBM $224,215.2 $245,555.2 $106,099.0 47.4% 25.3% 1.5% 2.3x 9.2x 2.3x 8.5x 8.2%Informatica Corporation INFA $3,232.5 $2,667.2 $809.5 84.1% 22.4% 12.4% 3.3x 14.7x 3.1x 10.4x -41.6%Microsoft Corporation MSFT $248,483.9 $199,214.9 $73,723.0 76.2% 41.7% 5.4% 2.7x 6.5x 2.5x 5.8x 8.2%NetApp, Inc. NTAP $11,923.8 $7,790.2 $6,233.2 59.6% 15.1% 21.7% 1.2x 8.3x 1.2x 6.8x -31.6%Oracle Corporation ORCL $149,307.0 $135,504.0 $37,121.0 78.8% 43.2% 4.2% 3.7x 8.4x 3.5x 6.9x 0.0%Pervasive Software Inc. PVSW $110.2 $67.5 $49.2 84.7% 7.3% 1.6% 1.4x 18.7x 1.3x 10.5x -8.4%Splunk, Inc. SPLK $2,779.9 $2,513.8 $137.5 89.9% -7.6% n/a 18.3x n/a 13.3x n/a n/aTIBCO Software Inc. TIBX $4,634.0 $4,541.7 $991.5 73.0% 22.7% 19.8% 4.6x 20.2x 4.0x 13.3x 9.8%

Median: $8,004.1 $6,166.0 $3,476.7 74.6% 22.6% 6.0% 2.4x 8.8x 2.3x 7.4x 0.0%









-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%Storage, Data Management & Integration Software Stock Market Return: Jan - Jul 2012

Storage, Data Management & Integration S&P NASDAQ SEG SW Index

SEG Software Index Category: Supply Chain Management & Logistics


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


American Software, Inc. AMSW.A $220.5 $161.1 $102.6 55.3% 17.5% 19.9% 1.6x 9.0x 1.4x n/a -5.0%Aspen Technology, Inc. AZPN $2,192.4 $2,043.5 $231.8 76.6% -11.2% 26.1% 8.8x n/a 7.5x 239.1x 51.2%JDA Software Group JDAS $1,263.3 $1,251.0 $669.5 64.0% 23.6% 3.1% 1.9x 7.9x 1.7x 6.4x 6.2%Manhattan Associates, Inc. MANH $926.1 $825.2 $354.2 58.2% 22.1% 15.9% 2.3x 10.6x 2.2x 8.9x 24.0%Retalix Ltd. RTLX $512.4 $391.0 $258.0 41.3% 8.3% 18.0% 1.5x 18.3x 1.5x 14.1x n/aThe Descartes Systems Group Inc. TSX:DSG $527.6 $459.1 $116.8 65.8% 28.1% 11.3% 3.9x 14.0x 3.5x 11.9x 22.4%

Median: $726.8 $642.1 $244.9 61.1% 19.8% 16.9% 2.1x 10.6x 2.0x 11.9x 22.4%



Levered FCF Margin 13.8%Cash from Operations Growth (YoY) 15.0%Cash from Investing Growth (YoY) 25.2%Cash from Financing Growth (YoY) 12.6%Levered FCF Growth (YoY) 56.2%






-5%

0%

5%

10%

15%

20%

25%

30%Supply Chain Management & Logistics Software Stock Market Return: Jan - Jul 2012

Supply Chain Management & Logistics S&P NASDAQ SEG Internet Index

SEG Software Index Category: Systems Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


BMC Software Inc. BMC $6,290.0 $5,550.8 $2,174.0 73.0% 29.4% 3.2% 2.6x 8.7x 2.4x 6.0x -8.6%CA Technologies CA $11,374.2 $10,120.2 $4,796.0 86.7% 35.8% 6.0% 2.1x 5.9x 2.1x 5.6x 8.7%Citrix Systems, Inc. CTXS $13,638.5 $12,340.7 $2,389.4 88.8% 24.8% 18.1% 5.2x 20.8x 4.5x 14.2x 1.7%Netscout Systems, Inc. NTCT $974.3 $826.8 $321.7 78.7% 24.0% 12.1% 2.6x 10.7x 2.3x 8.6x 53.2%Red Hat, Inc. RHT $10,377.1 $9,558.1 $1,183.1 84.6% 22.1% 22.6% 8.1x 36.5x 6.9x 24.2x 27.8%SolarWinds, Inc. SWI $3,959.0 $3,775.8 $233.3 93.4% 48.5% 36.1% 16.2x 33.4x 13.0x 25.4x 148.3%VMWare, Inc. VMW $39,466.4 $34,569.5 $4,180.4 84.0% 25.8% 26.1% 8.3x 32.0x 6.9x 18.7x -7.9%

Median: $10,377.1 $9,558.1 $2,174.0 84.6% 25.8% 18.1% 5.2x 20.8x 4.5x 14.2x 8.7%



Levered FCF Margin 23.8%Cash from Operations Growth (YoY) 33.0%Cash from Investing Growth (YoY) 14.1%Cash from Financing Growth (YoY) -94.0%Levered FCF Growth (YoY) 27.5%






-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%Systems Management Software Stock Market Return: Jan - Jul 2012

Systems Management S&P NASDAQ SEG Internet Index

SEG Software Index Category: Vertical - Finance


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Advent Software, Inc. ADVS $1,372.9 $1,289.7 $347.5 69.3% 20.6% 14.7% 3.7x 18.0x 3.4x 10.6x 16.7%FX Alliance Inc FX $626.9 $570.9 $122.9 100.0% 38.9% 15.6% 4.6x 11.9x 4.3x 8.9x n/aJack Henry & Associates, Inc. JKHY $3,042.7 $3,094.0 $1,009.8 41.5% 32.3% 6.8% 3.1x 9.5x 2.9x 8.8x 20.4%MSCI, Inc. MSCI $4,040.2 $4,656.8 $918.8 68.9% 44.5% n/a 5.1x 11.4x 4.8x 10.4x -6.3%SS&C Corporation SSNC $1,915.7 $1,958.7 $375.5 50.3% 36.9% 10.5% 5.2x 14.1x 3.1x 9.0x 32.6%

Median: $1,915.7 $1,958.7 $375.5 68.9% 36.9% 12.6% 4.6x 11.9x 3.4x 9.0x 18.5%









-5%

0%

5%

10%

15%

20%

25%

Vertical - Finance Software Stock Market Return: Jan - Jul 2012

Vertical - Finance S&P NASDAQ SEG SW Index

SEG Software Index Category: Vertical - Other


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Blackbaud, Inc. BLKB $1,175.9 $1,129.9 $395.4 56.2% 13.9% 13.1% 2.9x 20.6x 2.5x 11.2x 5.6%Constellation TSX:CSU $1,952.5 $1,891.9 $804.9 33.6% 23.1% 13.6% 2.4x 10.2x 2.2x 10.0x 19.7%EPIQ Systems, Inc. EPIQ $418.0 $671.4 $311.0 60.8% 22.9% 32.2% 2.2x 9.4x 1.7x 6.3x -10.2%Guidewire Software, Inc. GWRE $1,351.1 $1,149.3 $215.5 61.5% 12.4% 28.8% 5.3x 43.1x 4.4x 39.4x n/aMicros Systems MCRS $3,771.2 $2,958.9 $1,079.1 56.0% 22.7% 9.9% 2.7x 12.1x 2.4x 10.1x -4.1%PROS Holdings PRO $381.4 $310.5 $106.6 72.7% 10.5% 31.5% 2.9x 27.8x 2.6x 15.3x -14.5%Sapiens International SPNS $142.5 $127.0 $82.6 41.8% 13.5% 54.0% 1.5x 11.4x n/a n/a -3.0%The Active Network, Inc. ACTV $857.6 $776.0 $381.7 53.8% 2.5% 24.6% 2.0x 82.5x 1.7x 13.9x -19.2%Tyler Technologies, Inc. TYL $1,194.0 $1,259.4 $333.4 46.0% 18.3% 12.5% 3.8x 20.7x 3.3x 16.0x 54.6%

Median: $1,175.9 $1,129.9 $333.4 56.0% 13.9% 24.6% 2.7x 20.6x 2.5x 12.5x -3.6%



Levered FCF Margin 12.7%Cash from Operations Growth (YoY) -9.8%Cash from Investing Growth (YoY) -114.5%Cash from Financing Growth (YoY) -83.5%Levered FCF Growth (YoY) -12.8%






-5%

0%

5%

10%

15%

20%

25%

30%Vertical - Other Software Stock Market Return: Jan - Jul 2012

Vertical - Other S&P NASDAQ SEG Internet Index


SEG SaaS Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


SEG SaaS Index $830.1 $806.0 $169.0 69.8% 9.1% 27.3% 5.6x 40.0x 4.7x 23.2x 18.2% CRM & Marketing $775.0 $683.1 $188.1 74.3% 7.4% 27.2% 4.6x 37.9x 3.7x 21.2x -13.0% ERP & Supply Chain $401.1 $365.6 $65.7 69.8% 8.1% 26.8% 5.6x 81.4x 5.8x 30.5x 39.1% Vertically Focused $1,426.2 $1,373.5 $333.5 60.4% 14.2% 30.3% 5.0x 31.1x 4.4x 15.9x 18.2% Workforce Management $915.4 $849.5 $193.7 58.2% -1.2% 26.6% 5.0x 49.5x 4.3x 35.0x 19.0%

Category Name

TTM Revenue Growth 27.3%TTM EBITDA Growth 6.2%TTM Earnings Growth -21.3%Gross Profit Margin 69.8%EBITDA Margin 9.1%Net Income Margin -0.5%SG&A Expenses as a % of Total Revenue 47.0%R&D Expenses as a % of Total Revenue 13.4%








-5%

0%

5%

10%

15%

20%

25%

30%

35%SEG SaaS Index Software Stock Market Return: Jan - Jul 2012

DOW S&P NASDAQ SEG SaaS

SEG SaaS Index Category: CRM & Marketing


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Constant Contact CTCT $511.1 $430.0 $233.9 71.1% 10.4% 20.0% 1.8x 17.7x 1.6x 10.6x -6.5%ExactTarget, Inc. ET $1,546.8 $1,335.3 $227.5 65.1% -2.1% n/a 5.9x n/a 4.7x 264.2x n/aLivePerson LPSN $1,003.7 $895.8 $146.1 77.5% 16.2% 21.4% 6.1x 37.9x 5.3x 21.5x 48.2%Responsys MKTG $546.3 $450.6 $148.7 52.9% 13.1% 27.2% 3.0x 23.2x 2.6x 15.6x -22.0%Salesforce.com CRM $17,370.1 $17,209.8 $2,457.6 78.1% 4.3% 37.7% 7.0x 162.5x 5.4x 30.0x -13.0%Vocus VOCS $418.8 $470.4 $137.9 80.4% 0.8% 29.9% 3.4x 421.1x 2.4x 21.0x -37.8%

Median: $775.0 $683.1 $188.1 74.3% 7.4% 27.2% 4.6x 37.9x 3.7x 21.2x -13.0%

TTM Revenue Growth 27.2%TTM EBITDA Growth -4.4%TTM Earnings Growth -166.8%Gross Profit Margin 74.3%EBITDA Margin 7.4%Net Income Margin -1.3%SG&A Expenses as a % of Total Revenue 55.8%R&D Expenses as a % of Total Revenue 13.2%








-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%CRM & Marketing SaaS Stock Market Return: Jan - Jul 2012

CRM & Marketing S&P NASDAQ SEG Internet Index

SEG SaaS Index Category: ERP & Supply Chain


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Ariba, Inc. ARBA $4,270.0 $4,052.4 $516.8 66.1% 8.1% 27.3% 7.8x 96.4x 6.9x 26.1x 34.7%E2open, Inc. EOPN $316.8 $319.0 $63.9 65.3% 1.6% n/a 5.0x 303.6x n/a n/a n/aNetsuite N $3,946.8 $3,782.3 $269.1 69.8% -5.6% 26.3% 14.1x n/a 11.2x 108.4x 43.4%SciQuest SQI $372.4 $312.6 $57.6 72.3% 11.6% 22.0% 5.4x 46.9x 4.3x 25.0x -1.1%SPS Commerce SPSC $401.1 $365.6 $65.7 73.2% 8.4% 31.5% 5.6x 66.4x 4.7x 34.9x 76.3%

Median: $401.1 $365.6 $65.7 69.8% 8.1% 26.8% 5.6x 81.4x 5.8x 30.5x 39.1%









-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%ERP & Supply Chain SaaS Stock Market Return: Jan - Jul 2012

ERP & Supply Chain S&P NASDAQ SEG Internet Index

SEG SaaS Index Category: Vertically Focused


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Athenahealth, Inc ATHN $3,331.7 $3,176.3 $376.3 61.1% 13.4% 34.2% 8.4x 63.1x 6.5x 32.1x 57.4%DealerTrack TRAK $1,238.4 $1,137.7 $375.1 43.4% 15.1% 28.7% 3.0x 20.1x 2.9x 11.2x 25.8%Ebix Inc. EBIX $793.6 $806.0 $178.2 80.0% 42.4% 18.2% 4.5x 10.7x 4.1x 9.6x 10.5%RealPage RP $1,614.0 $1,609.4 $292.0 59.7% 13.1% 32.0% 5.5x 42.0x 4.7x 20.7x -8.6%

Median: $1,426.2 $1,373.5 $333.5 60.4% 14.2% 30.3% 5.0x 31.1x 4.4x 15.9x 18.2%









-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Vertically Focused SaaS Stock Market Return: Jan - Jul 2012

Vertically Focused S&P NASDAQ SEG Internet Index

SEG SaaS Index Category: Workforce Management


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Callidus Software Inc. CALD $153.9 $174.8 $89.4 44.7% -11.5% 15.0% 2.0x n/a 1.8x 37.7x -13.6%Cornerstone OnDemand CSOD $1,164.7 $1,082.1 $81.3 71.0% -25.5% 63.2% 13.3x n/a 8.5x n/a 42.7%Kenexa KNXA $666.2 $617.0 $318.0 60.0% 9.1% 32.1% 1.9x 21.4x 1.6x 9.7x -4.7%The Ultimate Software Group, Inc. ULTI $2,459.8 $2,399.6 $297.9 56.5% 10.4% 21.0% 8.1x 77.5x 6.9x 35.0x 69.9%

Median: $915.4 $849.5 $193.7 58.2% -1.2% 26.6% 5.0x 49.5x 4.3x 35.0x 19.0%

TTM Revenue Growth 26.6%TTM EBITDA Growth 16.2%TTM Earnings Growth 57.8%Gross Profit Margin 58.2%EBITDA Margin -1.2%Net Income Margin -13.0%SG&A Expenses as a % of Total Revenue 44.4%R&D Expenses as a % of Total Revenue 15.0%








-5%

0%

5%

10%

15%

20%

25%

30%Workforce Management SaaS Stock Market Return: Jan - Jul 2012

Workforce Management S&P NASDAQ SEG Internet Index

SEG SaaS Index Category: Other Public SaaS Companies


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Bazaarvoice, Inc BV $958.3 $833.1 $106.1 65.7% -19.4% 64.6% 7.8x n/a 5.9x n/a n/aConcur CNQR $3,718.9 $3,489.0 $417.1 71.7% 11.9% 25.7% 8.4x 70.2x 7.1x 30.3x 49.4%Demandware, Inc. DWRE $728.8 $624.3 $66.5 66.7% -3.5% 45.0% 9.4x n/a 8.0x n/a n/aEllie Mae ELLI $514.8 $485.2 $77.9 75.0% 20.6% 67.0% 6.2x 30.2x 6.0x 38.8x 262.6%IntraLinks Holdings IL $233.4 $248.1 $211.7 71.5% 6.5% 2.9% 1.2x 18.0x 1.2x 7.9x -71.9%Medidata Solutions MDSO $786.3 $675.3 $197.4 71.5% 17.9% 10.0% 3.4x 19.1x 3.1x 11.6x 52.6%OpenTable, Inc. OPEN $830.1 $772.3 $150.4 72.7% 28.5% 22.0% 5.1x 18.0x 4.6x 10.9x -48.1%Service-now.com NOW $3,054.2 $3,027.0 $169.0 59.8% -6.7% n/a 17.9x n/a 11.7x n/a n/aZix Corporation ZIXI $148.8 $130.0 $40.1 81.8% 31.5% 11.1% 3.2x 10.3x 2.8x 11.3x -36.5%

Median: $786.3 $675.3 $150.4 71.5% 11.9% 23.9% 6.2x 18.6x 5.9x 11.5x 6.5%

TTM Revenue Growth 23.9%TTM EBITDA Growth -8.1%TTM Earnings Growth -48.6%Gross Profit Margin 71.5%EBITDA Margin 11.9%Net Income Margin -3.1%SG&A Expenses as a % of Total Revenue 54.8%R&D Expenses as a % of Total Revenue 13.9%








-10%

0%

10%

20%

30%

40%

50%Other Public SaaS Companies SaaS Stock Market Return: Jan - Jul 2012

Other SaaS S&P NASDAQ SEG SaaS


SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


SEG Internet Index $1,033.6 $748.0 $400.7 68.2% 13.2% 27.9% 2.0x 13.3x 1.7x 9.0x -24.3% Ad Tech & Lead Generation $1,324.1 $1,287.6 $488.8 68.7% 14.4% 34.5% 2.0x 13.8x 1.5x 8.7x -22.8% Commerce $347.8 $254.7 $381.0 37.0% 8.1% 14.8% 0.7x 14.3x 0.7x 9.4x -11.9% Content & Media $1,595.5 $1,366.9 $345.2 51.9% 12.9% 12.3% 1.6x 11.2x 1.3x 7.4x -21.0% Gaming $1,805.27 $970.3 $998.6 73.0% 45.5% 39.2% 1.8x 2.9x 1.0x 3.7x -41.9% Infrastructure $428.47 $335.0 $232.1 66.6% 9.6% 13.6% 1.4x 14.2x 1.1x 9.3x -31.4% Services $1,145.63 $1,063.4 $324.6 70.1% 10.6% 41.9% 2.6x 13.3x 2.2x 9.9x -6.6% Social $1,464.76 $1,130.0 $328.9 74.0% 12.6% 70.3% 10.5x 33.9x 7.2x 31.0x -40.7% Travel $1,812.04 $1,221.5 $595.4 82.0% 18.8% 24.0% 2.5x 16.8x 4.0x 13.3x -27.4%









-5%

0%

5%

10%

15%

20%

25%SEG Internet Index Software Stock Market Return: Jan - Jul 2012

SEG Internet Index S&P NASDAQ SEG SW Index

SEG Internet Index Category: Ad Tech and Lead Generation


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Angie's List, Inc. ANGI $761.3 $699.6 $119.1 71.4% -45.5% 69.7% 5.9x n/a 3.7x n/a n/aBaidu.com, Inc. BIDU $42,378.6 $40,115.0 $2,889.9 79.5% 57.3% 74.0% 13.9x 24.2x 9.4x 17.1x -22.8%Bankrate, Inc. RATE $1,727.7 $1,856.9 $473.8 68.7% 29.4% 37.2% 3.9x 13.3x 3.3x 10.7x -5.5%Digital Generation, Inc. DGIT $298.3 $695.5 $353.6 67.1% 33.7% 40.0% 2.0x 5.8x 1.6x 4.6x -61.7%eHealth, Inc. EHTH $360.4 $238.4 $150.5 82.2% 11.1% -7.0% 1.6x 14.2x 1.5x 9.2x 42.1%Google Inc. GOOG $206,783.2 $173,182.2 $43,162.0 63.2% 35.8% 29.5% 4.0x 11.2x 3.0x 8.2x 4.7%Groupon GRPN $4,456.0 $3,299.2 $1,874.2 81.9% -2.4% 232.2% 1.8x n/a 1.3x 7.5x n/aInterActiveCorp IACI $4,664.7 $3,920.6 $2,435.0 64.4% 14.4% 34.5% 1.6x 11.2x 1.3x 7.3x 28.7%LinkedIn LNKD $10,761.9 $10,141.1 $723.9 85.9% 12.6% 101.9% 14.0x 111.3x n/a 48.8x 3.1%Marchex Inc. MCHX $130.6 $89.3 $148.4 44.3% 4.0% 23.6% 0.6x 14.9x 0.6x 4.3x -59.5%QuinStreet QNST $417.4 $410.2 $370.5 23.5% 16.1% -8.1% 1.1x 6.9x 1.1x 5.7x -24.3%ReachLocal, Inc. RLOC $344.8 $253.9 $414.6 50.1% 1.4% 24.0% 0.6x 43.6x 0.5x 11.7x -33.5%SINA Corporation SINA $3,201.9 $2,565.5 $488.8 53.8% 5.8% 17.0% 5.2x 90.0x 4.4x 55.9x -55.3%Sohu.com Inc. SOHU $1,324.1 $748.0 $961.3 68.7% 38.2% 35.3% 0.8x 2.0x 0.7x 3.6x -61.3%Tree.Com, Inc. TREE $151.6 $92.6 $54.0 94.1% -23.2% -7.3% 1.7x n/a 1.1x 9.3x 141.5%ValueClick, Inc. VCLK $1,290.3 $1,287.6 $632.4 59.3% 28.2% 32.6% 2.0x 7.2x 1.8x 5.8x -11.4%Yandex YNDX $6,781.1 $6,431.9 $748.3 75.1% 43.7% 54.7% 8.6x 19.7x 6.4x 14.5x -40.5%

Median: $1,324.1 $1,287.6 $488.8 68.7% 14.4% 34.5% 2.0x 13.8x 1.5x 8.7x -22.8%



Levered FCF Margin 11.8%Cash from Operations Growth (YoY) 20.7%Cash from Investing Growth (YoY) 12.3%Cash from Financing Growth (YoY) -41.6%Levered FCF Growth (YoY) -34.9%






-10%

-5%

0%

5%

10%

15%

20%

25%Internet Ad Tech and Lead Generation Software Stock Market Return: Jan - Jul 2012

Ad Tech & Lead Generation S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Commerce


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


1-800-FLOWERS.COM, Inc. FLWS $221.6 $229.8 $737.0 40.3% 5.1% 12.5% 0.3x 6.1x 0.3x 5.0x 13.6%Amazon.com, Inc. AMZN $106,728.0 $101,758.0 $54,326.0 23.3% 3.6% 34.9% 1.9x 52.5x 1.4x 26.8x 6.1%Bitauto Holdings Limited BITA $168.0 $80.5 $117.2 70.6% 13.7% 48.3% 0.7x 5.0x 0.5x 3.3x -39.4%Bluefly, Inc. BFLY $34.3 $31.8 $98.9 24.1% -16.7% 9.8% 0.3x n/a n/a n/a n/aBlueNile NILE $349.9 $289.4 $361.4 19.5% 3.7% 5.4% 0.8x 21.8x 0.7x 12.2x -40.3%DangDang DANG $399.5 $178.4 $637.2 13.0% -9.1% 59.3% 0.3x n/a 0.2x n/a -55.8%Digital River Inc. DRIV $645.5 $298.3 $400.7 84.0% 14.4% 7.3% 0.7x 5.2x 0.7x 3.4x -31.4%eBay Inc. EBAY $58,763.4 $55,091.4 $13,020.7 69.9% 28.9% 29.5% 4.2x 14.7x 3.7x 11.1x 39.2%Liquidity Services, Inc. LQDT $1,371.6 $1,307.9 $432.2 45.9% 21.1% 40.6% 3.0x 14.3x 2.6x 11.3x 81.8%Mecox Lane Limited MCOX $56.9 $4.0 $206.9 33.8% -14.3% -8.6% 0.0x n/a 0.0x n/a -66.8%Mercadolibre, Inc. MELI $3,090.3 $2,935.9 $340.7 74.8% 36.3% 36.8% 8.6x 23.7x 7.2x 19.6x -11.9%Overstock.com, Inc. OSTK $185.9 $142.9 $1,055.7 17.0% 0.8% -3.6% 0.1x 16.5x 0.1x 5.5x -37.5%PetMed Express, Inc. PETS $197.0 $129.2 $233.6 33.5% 11.2% 1.2% 0.6x 5.0x 0.6x 5.1x -10.8%Stamps.com STMP $345.7 $279.6 $108.7 75.0% 18.7% 17.1% 2.6x 13.8x 2.3x 9.4x 25.4%

Median: $347.8 $254.7 $381.0 37.0% 8.1% 14.8% 0.7x 14.3x 0.7x 9.4x -11.9%









-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Internet Commerce Software Stock Market Return: Jan - Jul 2012

Commerce S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Content & Media


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


AOL, Inc. AOL $2,951.3 $1,605.2 $2,169.0 27.8% 20.6% -3.8% 0.7x 3.6x 0.7x 4.3x 82.9%DemandMedia DMD $853.8 $758.2 $345.2 51.9% 18.3% 15.9% 2.2x 12.0x 2.0x n/a 8.2%InterActiveCorp IACI $4,664.7 $3,920.6 $2,435.0 64.4% 14.4% 34.5% 1.6x 11.2x 1.3x 7.3x 28.7%Netflix NFLX $3,207.1 $2,793.8 $3,456.4 31.2% 6.6% 30.1% 0.8x 12.3x 0.7x 15.4x -78.3%Pandora P $1,595.5 $1,515.0 $304.1 34.0% -6.8% 81.9% 5.0x n/a 3.3x n/a -36.4%TheStreet.com, Inc. TST $48.8 $13.6 $53.9 53.9% -6.0% -7.3% 0.3x n/a n/a n/a -47.3%Tudou Holdings Limited TUDO $765.9 $668.7 $98.8 -0.6% -52.6% n/a 6.8x n/a 4.0x n/a n/aWebMD Health Corp. WBMD $842.7 $500.7 $505.4 58.5% 12.9% -12.4% 1.0x 7.7x 1.1x 7.4x -57.2%XO Group XOXO $220.1 $151.9 $127.2 81.4% 13.2% 8.7% 1.2x 9.1x 1.1x 5.8x -5.5%Yahoo! Inc. YHOO $19,540.3 $17,803.3 $4,979.8 69.2% 26.2% -10.6% 3.6x 13.6x 4.0x 10.5x 22.0%Youku YOKU $1,940.1 $1,366.9 $193.4 25.6% -0.9% 107.3% 7.1x n/a n/a n/a -54.2%

Median: $1,595.5 $1,366.9 $345.2 51.9% 12.9% 12.3% 1.6x 11.2x 1.3x 7.4x -21.0%

TTM Revenue Growth 12.3%TTM EBITDA Growth -9.2%TTM Earnings Growth -29.6%Gross Profit Margin 51.9%EBITDA Margin 12.9%Net Income Margin 2.9%SG&A Expenses as a % of Total Revenue 37.7%R&D Expenses as a % of Total Revenue 9.1%








-5%

0%

5%

10%

15%

20%

25%Internet Content & Media Software Stock Market Return: Jan - Jul 2012

Content & Media S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Gaming


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


ChangYou.com CYOU $958.8 $620.5 $558.7 84.6% 64.7% 47.2% 1.1x 1.7x 1.0x 2.0x -64.9%Giant Interactive GA $1,056.7 $771.1 $313.0 90.3% 65.2% 28.7% 2.5x 3.8x 2.2x 3.9x -41.9%Netease NTES $6,957.8 $4,745.9 $1,231.0 67.9% 49.9% 32.7% 3.9x 7.7x 3.3x 6.6x 5.2%NCSoft KOSE:A036 $3,922.0 $3,475.5 $1,035.9 75.0% n/a 85.8% 3.4x n/a n/a n/a -35.9%Perfect World PWRD $451.5 $304.5 $473.5 83.3% 38.8% 20.4% 0.6x 1.7x 0.6x 2.0x -51.9%Sohu.com Inc. SOHU $1,324.1 $748.0 $961.3 68.7% 38.2% 35.3% 0.8x 2.0x 0.7x 3.6x -61.3%Tencent Holdings SEHK:700 $54,257.1 $51,201.6 $5,047.7 63.6% 45.5% 46.2% 10.1x 22.3x n/a n/a 14.2%Zynga, Inc. ZNGA $2,286.5 $1,169.5 $1,271.5 71.0% -36.0% 43.1% 0.9x n/a 1.0x 6.7x n/a

Median: $1,805.3 $970.3 $998.6 73.0% 45.5% 39.2% 1.8x 2.9x 1.0x 3.7x -41.9%









-30%

-20%

-10%

0%

10%

20%

30%

40%

Internet Gaming Software Stock Market Return: Jan - Jul 2012

Gaming S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Infrastructure


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


8x8, Inc. EGHT $387.4 $349.2 $92.5 67.4% 11.7% 28.8% 3.8x 32.3x 3.1x 20.3x 39.7%Acme Packet, Inc. APKT $1,033.6 $666.9 $292.0 81.3% 16.0% 4.1% 2.3x 14.2x 2.4x 11.5x -74.3%Akamai Technologies, Inc. AKAM $6,376.0 $5,879.4 $1,256.4 72.6% 39.9% 15.1% 4.7x 11.7x 4.0x 9.3x 47.9%Brightcove Inc. BCOV $406.3 $354.0 $76.8 69.1% -14.0% 48.3% 4.6x n/a 3.8x n/a n/aBroadSoft, Inc. BSFT $645.0 $552.0 $155.1 82.3% 21.0% 29.4% 3.6x 16.9x 3.3x 12.7x -19.7%Digital River Inc. DRIV $645.5 $298.3 $400.7 84.0% 14.4% 7.3% 0.7x 5.2x 0.7x 3.4x -31.4%Envivio, Inc. ENVI $166.1 $91.8 $54.2 63.8% 2.7% 56.2% 1.7x 62.2x 1.1x 12.6x n/aHarmonic Inc HLIT $498.6 $320.8 $542.9 44.6% 8.1% 6.5% 0.6x 7.3x 0.6x 4.2x -21.9%Interactive Intelligence, Inc. ININ $500.0 $435.3 $217.4 67.6% 8.2% 13.1% 2.0x 24.4x 1.8x 22.7x -31.5%KIT digital, Inc. KITD $190.2 $179.9 $239.5 71.7% 3.8% 93.6% 0.8x 19.5x 0.7x n/a -71.2%Limelight Networks, Inc. LLNW $287.7 $154.5 $177.1 53.8% 1.0% -9.2% 0.9x 84.1x 0.8x 8.5x -33.0%Mitel Networks Corp. MITL $236.4 $469.5 $611.8 53.8% 13.3% 3.8% 0.8x 5.8x 0.7x 5.0x -0.9%Polycom, Inc. PLCM $1,542.2 $970.1 $1,539.3 59.0% 13.9% 17.6% 0.6x 4.5x 0.7x 5.8x -68.0%Rovi Corporation ROVI $1,424.7 $1,992.5 $692.4 82.7% 31.4% 13.5% 2.9x 9.2x 3.0x 7.3x -74.9%SeaChange International Inc. SEAC $246.1 $159.9 $194.2 49.5% 10.7% 3.7% 0.8x 7.7x 1.0x 6.3x -21.5%ShoreTel, Inc. SHOR $262.7 $226.4 $224.7 65.8% -2.8% 20.9% 1.0x n/a 0.7x n/a -46.6%Sonus Networks, Inc SONS $450.6 $130.2 $262.6 62.5% 0.3% 7.3% 0.5x 194.0x 0.5x n/a -45.6%Synacor, Inc SYNC $273.1 $243.2 $114.4 45.6% 8.4% n/a 2.1x 25.3x 1.7x 14.1x n/aTucows Inc. TCX $58.0 $56.0 $102.0 25.0% 6.7% 17.7% 0.5x 8.2x n/a n/a 56.9%VeriSign VRSN $7,117.5 $6,377.4 $820.5 79.5% 54.6% 13.6% 7.8x 14.2x 6.9x 11.3x 45.8%

Median: $428.5 $335.0 $232.1 66.6% 9.6% 13.6% 1.4x 14.2x 1.1x 9.3x -31.4%









-15%

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-5%

0%

5%

10%

15%

20%

25%

30%Internet Infrastructure Software Stock Market Return: Jan - Jul 2012

Infrastructure S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Services


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Ancestory.com ACOM $1,400.0 $1,330.4 $434.9 83.0% 32.7% 22.7% 3.1x 9.3x 2.6x 7.0x -7.8%Angie's List, Inc. ANGI $761.3 $699.6 $119.1 71.4% -45.5% 69.7% 5.9x n/a 3.7x n/a n/aBankrate RATE $1,727.7 $1,856.9 $473.8 68.7% 29.4% 37.2% 3.9x 13.3x 3.3x 10.7x -5.5%Carbonite, Inc. CARB $227.7 $159.6 $72.1 63.0% -22.7% 46.7% 2.2x n/a 1.8x n/a n/aMonster Worldwide, Inc. MWW $859.7 $820.7 $992.1 52.1% 13.8% -2.3% 0.8x 6.0x 0.8x 5.2x -39.6%Qihoo QIHU $1,770.0 $1,408.2 $214.2 88.9% 27.3% 202.1% 6.6x 24.1x 4.2x 11.3x -35.7%Shutterfly SFLY $1,200.3 $1,082.2 $530.6 52.7% 9.6% 52.4% 2.0x 21.1x 1.7x 10.5x -38.6%Tree.Com, Inc. TREE $151.6 $92.6 $54.0 94.1% -23.2% -7.3% 1.7x n/a 1.1x 9.3x 141.5%VistaPrint VPRT $1,163.5 $1,330.3 $1,020.3 65.2% 11.2% 24.9% 1.3x 11.6x 1.1x 8.9x 27.7%Zillow Z $1,127.8 $1,044.7 $89.5 85.9% 10.0% 99.4% 11.7x 116.3x 8.7x 50.4x 21.4%

Median: $1,145.6 $1,063.4 $324.6 70.1% 10.6% 41.9% 2.6x 13.3x 2.2x 9.9x -6.6%









-5%

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10%

15%

20%

25%

30%

35%

40%

45%

Internet Services Software Stock Market Return: Jan - Jul 2012

Services S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Social


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Facebook FB $49,496.7 $40,014.7 $4,327.0 74.0% 24.2% n/a 9.2x 38.2x 7.2x 13.3x n/aFriendFinder Networks Inc FFN $27.7 $479.5 $328.9 65.4% 22.1% -4.2% 1.5x 6.6x n/a n/a -79.1%Jive Software, Inc JIVE $1,254.2 $1,100.8 $95.6 57.4% -36.6% 56.8% 11.5x n/a n/a n/a n/aLinkedIn LNKD $10,761.9 $10,141.1 $723.9 85.9% 12.6% 101.9% 14.0x 111.3x n/a 48.8x 3.1%Mail.ru Group LSE:MAIL $6,286.9 $6,135.1 $505.9 75.2% 41.0% 83.8% 12.1x 29.6x n/a n/a -15.8%Renren Inc RENN $1,464.8 $414.1 $143.9 68.2% -39.4% n/a 2.9x n/a 2.1x n/a -65.7%Yelp, Inc. YELP $1,260.7 $1,130.0 $107.2 92.7% -12.6% n/a 10.5x n/a 7.8x n/a n/a

Median: $1,464.8 $1,130.0 $328.9 74.0% 12.6% 70.3% 10.5x 33.9x 7.2x 31.0x -40.7%

TTM Revenue Growth 70.3%TTM EBITDA Growth -12.8%TTM Earnings Growth -7.7%Gross Profit Margin 74.0%EBITDA Margin 12.6%Net Income Margin 1.8%SG&A Expenses as a % of Total Revenue 47.2%R&D Expenses as a % of Total Revenue 25.2%








-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%Internet Social Software Stock Market Return: Jan - Jul 2012

Social S&P NASDAQ SEG Internet Index

SEG Internet Index Category: Travel


Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA


Ctrip CTRP $1,812.0 $1,177.5 $595.4 75.8% 25.8% 18.4% 2.0x 7.7x 1.7x 6.0x -72.7%Expedia EXPE $7,617.8 $6,581.0 $3,664.1 77.6% 18.8% 17.3% 1.8x 9.6x 1.6x 8.1x -11.5%HomeAway AWAY $1,947.3 $1,726.1 $255.3 84.7% 18.1% 27.2% 6.8x 37.4x 5.6x 18.6x -39.7%Kayak Software Corp KYAK $1,264.3 $1,221.5 $245.2 92.3% 17.1% 31.4% 5.0x 29.1x 4.0x 17.1x n/aMakeMyTrip MMYT $599.4 $512.3 $208.7 28.7% 2.1% 45.9% 2.5x 115.3x 4.9x 28.6x -27.4%Orbitz OWW $456.0 $708.8 $770.8 82.0% 13.8% 0.9% 0.9x 6.6x 0.9x 4.8x 34.4%Priceline PCLN $33,985.7 $31,991.9 $4,807.6 74.3% 34.9% 31.9% 6.7x 19.1x 5.6x 15.2x 26.9%Travelzoo TZOO $350.2 $295.7 $152.5 89.8% 25.9% 16.7% 1.9x 7.5x 1.8x 9.1x -58.4%TripAdvisor Inc TRIP $5,125.4 $5,061.5 $699.5 98.3% 43.0% 24.0% 7.2x 16.8x 6.1x 13.3x n/a

Median: $1,812.0 $1,221.5 $595.4 82.0% 18.8% 24.0% 2.5x 16.8x 4.0x 13.3x -27.4%



Levered FCF Margin 19.2%Cash from Operations Growth (YoY) 35.8%Cash from Investing Growth (YoY) 8.0%Cash from Financing Growth (YoY) -21.5%Levered FCF Growth (YoY) -0.6%






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0%

5%

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15%

20%

25%Internet Travel Software Stock Market Return: Jan - Jul 2012

Travel S&P NASDAQ SEG Internet Index

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