Median Ltm Ebitda Multiples – Saas & Cloud 125

SAAS & CLOUD M&A AND VALUATION UPDATE Q1 2017

BOSTON  CHICAGO  LONDON  LOS ANGELES  NEW YORK  ORANGE COUNTY  PHILADELPHIA  SAN DIEGO  SILICON VALLEY  TAMPA CONTENTS

Section Page

Introduction . Research Coverage: SaaS & Cloud 3 . Key Takeaways 4-5 M&A Activity & Multiples . M&A Dollar Volume 7 . M&A Transaction Volume 8-10 . LTM Revenue Multiples 11-12 . Revenue Multiples by Segment 13 . Highest Revenue Multiple Transaction for LTM 14 . Notable M&A Transactions 15 . Most Active Buyers 16-17 Public Company Valuation & Operating Metrics . SaaS & Cloud 125 Public Company Universe 19-20 . Recent IPOs 21-23 . Stock Price Performance 24 . LTM Revenue, EBITDA & P/E Multiples 25-27 . Revenue, EBITDA & EPS Growth 28-30 . Margin Analysis 31-32 . Best / Worst Performers 33-34 Notable Transaction Profiles 35-45

Public Company Trading & Operating Metrics 46-51

Technology & Telecom Team 52

1 INTRODUCTION RESEARCH COVERAGE: SAAS & CLOUD

 Capstone’s Technology & Telecom Group focuses its research efforts on the follow market segments:

ENTERPRISE SAAS & MOBILE & WIRELESS CONSUMER INTERNET CLOUD

• Analytics / Business Intelligence • Cloud & IT Infrastructure • Cloud Computing / Storage • Communication & Collaboration • Content Creation & Management • CRM & Customer Services • ERP, Supply Chain & Commerce CONSUMER IT & E-COMMERCE • Finance & Administration TELECOM HARDWARE • Human Resources • Marketing & Advertising • Software Conglomerates • Vertical Markets

3 KEY TAKEAWAYS – M&A ACTIVITY & MULTIPLES

 2016 M&A dollar volume increased to $109.1B, representing a growth of 93% from the prior year » Increase driven by Microsoft/Linkedin and Quintiles/IMS Health deals ($29.4B and $13.5B, respectively) » Q4’16 M&A dollar volume decreased to $10.6B versus $29.3B in Q3’16  2016 transaction volume of 999 deals was just below 2015 transaction volume of 1,042 » Q4’16 saw 247 deals, down slightly from 268 deals in Q3’16  2016 transaction volume for private targets reached 973 deals representing a marginal decline of 4.3% compared to 2015  2016 public transaction volume remained relatively consistent with the prior year at 26 deals though median deal size jumped to $1.5B with 14 $1B+  Median 2016 revenue multiple paid for private companies remained consistent with 2015 at 3.8x while public company multiples rose to 3.5x from 2.6x in 2015  Notable M&A transactions in Q4’16 . Roper / Deltek ($2.8B) . Roper / Construct Connect ($632M) . GE Digital / ServiceMax ($915M) . Nielsen / Gracenote ($560M) . Synchronoss / Intralinks ($854M) . Adobe / TubeMogul ($542M) . Vista Equity Partners / Sungard Public Sector ($850M) . Ldiscovery / Kroll Ontrack ($410M) . Salesforce / Krux ($768M) . Criteo / HookLogic ($250M)  The most active buyers included J2 Global, IBM, Vista Equity Partners, Microsoft, Alphabet, Salesforce, Oracle, and Cisco (sorted by most active)  Capstone expects robust M&A activity and attractive exit valuations to continue in the SaaS & Cloud segment in the near term » In the longer term, there is increasing risk that a market correction could negatively impact activity levels and valuation multiples

4 KEY TAKEAWAYS – PUBLIC COMPANY METRICS

 4 companies that recently went public were added to the SaaS & Cloud 125, with the exception of i-Mobile » Performance has been mixed, with two companies ending the quarter trading above their opening prices, while the other two ended the quarter trading below their opening prices  SaaS & Cloud 125 saw a median decrease of 7.0% during Q4’16 while the NASDAQ posted a small gain of 1.3% » Q4’16 was generally disappointing for the SaaS & Cloud 125 as only 38 companies saw stock prices increase and only the Software Conglomerates segment posted a median gain » Despite a poor Q4, the SaaS & Cloud 125 managed a 5.3% median gain for the year, lagging slightly below the 7.5% NASDAQ increase  Median 2016 revenue multiple declined to 4.6x, representing is a marginal decrease from 2015  Median LTM EBITDA multiple came in at 18.2x, nearly reaching the 5 year high of 18.8x  Poor stock performances in Q4’16 decreased the median LTM P/E multiple to 30.0x  Median revenue growth rate remains consistent with 2015, currently standing at 21.3% » Revenue growth rates are expected to slightly weaken to a median of 17.0% over the next twelve months  Median EBITDA growth rate jumped to 22.4% in 2016 with similar growth expected for 2017 as many companies reap the benefits of increased scale driving higher profits  Median EPS growth rate of 21.7% represents a recent high, eclipsing 20% for the first time in the past five years  Median gross margins have remained relatively constant for the past five years, increasing slightly in 2016 to 67.4% » Cloud & IT Infrastructure, ERP, Supply Chain & Commerce and Content Creation & Management commanded the highest gross margins as most of their expenses are operational  Median EBITDA margin decreased slightly in Q4’16 as companies reinvested capital, focusing their efforts on growth

5 M&A ACTIVITY & MULTIPLES 2016 M&A DOLLAR VOLUME

 2016 M&A dollar volume increased to $109.1B, representing a growth of 93% from the prior year » Private M&A dollar volume was flat with 2015 as larger public transactions drove the increase » Substantial increase in public M&A dollar volume is driven by the Microsoft/Linkedin and Quintiles Transnational/IMS Health deals, which had transaction values of $29.4B and $13.5B, respectively  Q4’16 M&A dollar volume decreased to $10.6B, a substantial drop from $29.3B in Q3’16 $120,000

$100,000

$80,000

$81,327 $60,000

$40,000 $28,619 Total Transaction Value Transaction Total $20,136 $24,028 $20,849 $20,534

$20,000 $26,308 $27,900 $27,848 $21,183 $22,968 $24,298

$0 2011 2012 2013 2014 2015 2016

Total Private $ Total Public $

7 2016 M&A TRANSACTION VOLUME BY SEGMENT

 2016 transaction volume of 999 deals was just below 2015 transaction volume of 1,042 » Q4’16 saw 247 deals, down slightly from 268 deals in Q3’16  Vertical Market and Cloud & IT Infrastructure were the two largest segments, representing 41% and 13% of total transaction volume, respectively

1200

1000

421 800 413 295

600 232 112 257 224 98 95 40 60 23 62 Transactions 400 80 52 14 57 21 75 52 60 50 23 40 42 19 27 37 44 26 40 37 41 21 40 25 57 43 40 37 54 55 20 31 36 200 31 44 17 50 22 42 25 82 41 32 136 125 98 101 83 117 32 77 66 0 39 52 2011 2012 2013 2014 2015 2016 Analytics / Business Intelligence Cloud & IT Infrastructure Cloud Computing / Storage Communication & Collaboration Content Creation & Management CRM & Customer Service ERP, Supply Chain & Commerce Finance & Administration Human Resources Marketing & Advertising Vertical Market

8 2016 M&A TRANSACTION VOLUME BY DEAL SIZE – PRIVATE TARGETS

 2016 transaction volume for private targets reached 973 deals representing a marginal decline of 4.3% compared to 2015  Median transaction size for private targets of $34M in 2016 was down slightly from $40M in 2015

100% 7 8 2 3 6 8 11 14 2 1 15 10 13 90% 10 12 7 16 28 18 11 80% 23 27 22 36 23 70% 29 14 16 30 60% 30 20 17 26 23 50% 19 39 28 53 40% 19 33 49 30% 40

20% 80 52 78 46 10% 42 42

0% 2011 2012 2013 2014 2015 2016 Total Deals 661 682 642 865 1015 973 Deals w/ Value 243 213 164 182 199 159 Median ($M) $20 $18 $25 $25 $40 $34 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

9 2016 M&A TRANSACTION VOLUME BY DEAL SIZE – PUBLIC TARGETS

 2016 public transaction volume remained relatively consistent with the prior year at 26 deals though median deal size jumped to $1.5B with 14 $1B+ deals  We observed a slowdown in public company targets with Q4’16 transaction volume of 4 deals compared to 10 in Q3’16

100%

90% 7 6 7 7 80% 5 3 14 70% 4 1 4 60% 8 4 4 1 50% 4 2 40% 3 2 5 1 4 1 1 6 30% 1 3 2 2 2 20% 1 3 4 1 5 10% 6 4 3 2 1 0% 1 1 1 2011 2012 2013 2014 2015 2016 Total Deals 33 26 23 12 27 26 Median ($M) $305 $329 $265 $706 $274 $1,536 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

10 MEDIAN 2016 REVENUE MULTIPLES – PRIVATE TARGETS

 Median 2016 revenue multiple paid for private companies remained consistent with 2015 at 3.8x  Q4’16 median revenue multiple paid for private companies increased slightly to 3.8x compared to 3.5x in Q3’16

4.5x

4.0x 3.9x 3.8x 3.8x 3.6x 3.5x 3.1x 3.0x 2.8x

2.5x

2.0x

1.5x

Median Revenue Multiple 1.0x

0.5x

0.0x 2011 2012 2013 2014 2015 2016 25th % 1.7x 1.4x 2.4x 2.2x 1.9x 2.7x 75th % 6.2x 4.3x 6.0x 6.0x 6.0x 7.1x

11 MEDIAN 2016 REVENUE MULTIPLES – PUBLIC TARGETS

 Median 2016 revenue multiple paid for public companies came in at 3.5x, reaching a 5 year high  Q4’16 revenue multiple paid for public companies decreased to 1.9x compared to 4.3x in Q3’16 though with just 4 data points it is difficult to draw any broader conclusions

4.0x 3.5x 3.6x 3.5x 3.2x 3.2x 3.2x 2.9x 2.9x 3.0x 2.6x 2.5x 2.4x 2.5x 2.5x 2.3x

2.0x

1.5x

1.0x Median Revenue Multiple 0.5x

0.0x 2011 2012 2013 2014 2015 2016 25th % 1.5x 1.0x 1.3x 2.2x 0.8x 2.5x 75th % 4.3x 3.4x 4.6x 5.8x 4.5x 6.8x All Deals $100M+ Deals

12 MEDIAN 2016 REVENUE MULTIPLES BY SEGMENT – LAST 5 YEARS

 Median 2016 revenue multiples for SaaS segments ranged from 1.7x to 4.8x » Cloud & IT Infrastructure achieved a median multiple of 4.8x as these companies are often acquired earlier in their revenue curve at strong multiples » More commoditized segments like Cloud Computing / Storage and Communication & Collaboration typically garner lower multiples

6.0x

4.8x 5.0x 4.6x 4.0x 4.0x 3.3x 3.1x 2.9x 3.0x 2.7x 2.6x 2.5x 2.3x 2.0x 1.7x

1.0x Median Revenue Multiple 0.0x

13 HIGHEST REVENUE MULTIPLE TRANSACTIONS FOR LTM

LTM Multiple Premium Enterprise Ann. Date Buyer Target Segment Target Description Revenue on $ to 1 Mo Value Multiple Invested Prior

Provides cloud-based third-party access control SaaS to IT businesses, Cloud & IT 10/4/16 enabling access to applications that are hosted in data centers and to $60M 30.0x 6.1x NA Infrastructure Microsoft SharePoint on enterprise networks.

Cloud & IT Provides access control and anti-data leakage SaaS to enable businesses to 6/28/16 $293M 22.2x 8.4x NA Infrastructure secure cloud applications and provide data loss prevention (DLP).

Analytics / Provides big data and predictive analytics SaaS, and related reporting SaaS 8/15/16 Business $110M 22.0x 12.2x NA Intelligence for businesses.

Cloud & IT Provides cybersecurity incident response management SaaS that enables 2/29/16 $145M NA Infrastructure enterprise security teams to automate, orchestrate, analyze and mitigate IT 14.5x NA security incidents such as malware and DDoS attacks.

Cloud & IT Provides IoT service lifecycle management SaaS to enable the launch, 2/3/16 $1.4B 11.7x 6.7x NA Infrastructure management, and monetization of IoT services for businesses globally.

Provides Visual Studio enterprise mobile application development software- Cloud & IT 2/24/16 as-a-service (SaaS), add-on tools and extensions for software developers $400M 10.7x 4.9x NA Infrastructure and businesses.

ERP, Supply Chain Provides enterprise cloud-based e-commerce SaaS for Web merchants and 6/1/16 $2.7B 10.5x NA 66.4% & Commerce multi-channel online retailers.

Provides cloud-based financials/enterprise resource planning (ERP) and ERP, Supply Chain 7/28/16 omnichannel commerce software suites in the United States and $8.7B 10.3x NA 58.0% & Commerce Internationally.

Develops cloud-based field service software solutions that help companies 11/14/16 Human Resources $915M 10.2x 4.5x NA to manage contracts, scheduling, and parts.

ERP, Supply Chain Provides third-party integrateable e-commerce SaaS for independent 8/8/16 $100M 10.0x 50.0x NA & Commerce software vendors (ISV) and businesses.

Excludes deals with Target company revenue less than $2M

14 NOTABLE M&A TRANSACTIONS FOR Q4’16

LTM Multiple Premium Enterprise Ann. Date Buyer Target Segment Target Description Revenue on $ to 1 Mo Value Multiple Invested Prior

Provides enterprise software and information solutions for project-based ERP, Supply Chain 12/6/16 businesses in the professional services and government contracting markets $2.8B 5.5x NA NA & Commerce worldwide.

Develops cloud-based field service software solutions that help companies 11/14/16 Human Resources $915M 10.2x 4.5x NA to manage contracts, scheduling, and parts.

Cloud Computing/ Provides SaaS solutions for secure enterprise content collaboration within 12/6/16 $854M 2.9x NA 33.5% Storage and among organizations in the United States and internationally.

Provides ERP administration SaaS for government and public safety entities 12/7/16 Vertical Market and the K-12 business, which provides cloud-based administration and $850M NA NA NA student management software for K-12 educators. Analytics / Develops a cloud-based data management platform for marketers, media 10/3/16 Business $768M NA NA NA companies, publishers, and agencies worldwide. Intelligence

Provides data management SaaS to the manufacturing and construction 10/31/16 Vertical Market $632M 4.2x NA NA industry in the United States and Canada.

Provides digital rights management SaaS for businesses and content Content Creation 12/20/16 producers, as well as an online digital music and video content recognition $560M NA NA NA & Management database for consumers and the entertainment sector. Designs, develops, and markets software for digital branding. Provides Marketing & 11/9/16 cloud-based platform that enables advertisers to plan, buy, measure, and $542M 2.6x NA 56.3% Advertising optimize video advertising spend from a single platform.

Provides electronic evidence and data recovery SaaS and services for law 10/21/16 Vertical Market $410M NA NA NA firms, government agencies and corporate law departments.

Marketing & Provides retail brand and e-commerce online shopping marketing and 10/3/16 $250M 1.9x 6.3x NA Advertising advertising SaaS for businesses.

Includes largest transactions based on Enterprise Value

15 MOST ACTIVE SAAS/CLOUD BUYERS – LAST 2 YEARS

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 10/11/16 Dakota Cloud Recovery NA 1/14/16 MX Toolbox NA 10/11/16 DataProtect Cloud Ltd NA 10/5/15 Salesify NA 10/11/16 FrontSafe NA 2/19/15 EmailDirect.com (assets) NA 7/11/16 Overvault NA 2/17/15 Nuvotera (assets) NA 7/11/16 SMTP NA 2/11/15 Firstway Digital NA 19 32 7/11/16 WhatCounts NA 1/5/15 Arion IT Solutions NA 4/4/16 BackUp Solutions (server assets) NA 1/5/15 Newrise NA 4/4/16 Global Data Vault NA 1/5/15 Stay Secure NA 4/4/16 Mailout Interactive NA 1/5/15 TestudoData NA 3/21/16 Callstream NA 11/1/16 Fluid Inc. NA 10/5/15 Cleversafe $1.3B 6/1/16 EZ Legacy NA 9/24/15 Advanced Application $13M 3/31/16 Bluewolf Group $240M 9/10/15 StrongLoop NA 3/18/16 Optevia NA 8/17/15 Appcore (assets) NA 17 34 2/29/16 Resilient Systems $145M 7/23/15 Compose NA 2/18/16 Truven Health Analytics $2.6B 4/13/15 Explorys NA 1/21/16 Ustream $130M 4/13/15 Phytel $232M 12/8/15 Clearleap $200M 3/4/15 AlchemyAPI NA 11/3/15 Gravitant $95M

12/7/16 Sungard (Public Sector & Edu) $850 4/18/16 Cvent $1.7B 9/26/16 GovDelivery $153M 1/14/16 Fiverun NA 9/19/16 Infoblox $1.5B 1/14/16 Telarix NA 14 14 9/6/16 Regulatory DataCorp NA 11/25/15 MarketLive $105M 8/18/16 Granicus NA 11/25/15 Shopatron $100M 6/1/16 Ping Identity $600M 9/2/15 Trintech NA 5/31/16 Marketo $1.8B 6/29/15 Mediaocean $720M

8/22/16 Genee NA 9/8/15 Adallom 250M 5/3/16 Solair NA 8/3/15 Incent Games NA 2/24/16 Xamarin $400M 7/16/15 FieldOne Systems NA 12 31 1/13/16 Event Zero NA 6/10/15 BlueStripe Software NA 9/29/15 Sensei Project Solutions NA 3/26/15 LiveLoop NA 9/28/15 Adxstudio NA 1/20/15 Equivio NA

16 MOST ACTIVE SAAS/CLOUD BUYERS – LAST 2 YEARS

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 11/21/16 Qwiklabs NA 5/2/16 Synergyse Training NA 9/19/16 Speaktoit NA 11/19/15 Bebop Technologies $380M 9/8/16 Apigee $625M 9/30/15 Jibe Mobile NA 12 45 8/8/16 Orbitera $100M 7/21/15 Pixate NA 7/7/16 Anvato NA 5/28/15 Pulse.io NA 7/6/16 Moodstocks NA 2/24/15 Red Hot Labs NA 10/4/16 Krux $680M 4/4/16 MetaMind $33M 8/15/16 BeyondCore $110M 12/23/15 SteelBrick $360M 8/1/16 Quip $410M 12/14/15 MinHash NA 12 19 7/21/16 Coolan NA 9/2/15 AKTA NA 6/1/16 Demandware $2.8B 6/25/15 Kerensen Consulting $24M 5/9/16 Implisit NA 4/1/15 Toopher NA

9/18/16 Palerra NA 4/14/16 Crosswise $50M 9/7/16 LogFire NA 2/22/16 Ravello Systems NA 10 12 7/28/16 NetSuite $9.3B 1/5/16 AddThis $175M 5/2/16 Opower $532M 12/18/15 StackEngine NA 4/28/16 Textura $663M 8/20/15 Maxymiser $170M

8/30/16 ContainerX NA 10/28/15 1 Mainstream NA 6/28/16 CloudLock $293M 7/7/15 MaintenanceNet $139M 9 18 3/8/16 Synata NA 6/30/15 OpenDNS $635M 3/1/16 CliQr Technologies $260M 6/3/15 Piston Cloud Computing NA 2/3/16 Jasper Technologies $1.4B

17 PUBLIC COMPANY VALUATION & OPERATING MULTIPLES ENTERPRISE SAAS & CLOUD 125 PUBLIC COMPANY UNIVERSE – PT. 1

Analytics / Business Intelligence

Cloud & IT Infrastructure

Cloud Computing / Storage

Communication & Collaboration

Content Creation & Management

CRM & Customer Service

19 ENTERPRISE SAAS & CLOUD 125 PUBLIC COMPANY UNIVERSE – PT. 2

ERP, Supply Chain & Commerce

Finance & Administration

Human Resources

Software Conglomerates

Marketing & Advertising

Vertical Markets

20 RECENT IPOS – BRAVURA SOLUTIONS

IPO Details Business Description Offering Date: 11/16/16 Market Cap: $232.3M Provides software products and services to global financial Offering Price: $1.08 Offering Size: $110.7M organizations with products such as wealth management and life insurance administration software and data warehousing. Original Range: $1.68 - $2.17 % of Company: 47.7%

IPO Performance HQ: Sydney, Australia Ticker: ASX:BVS Open: $0.94 12/30 $/share: $1.01 % Change to Offer: (12.9)% % Change to Offer: (7.3)% Stock Performance thru End of Q4’16 Close: $0.94 % Change to Open: 6.5% $2.40 % Change to Offer: (13.6)% % Change to Open: (0.8)% $2.20

Financial & Valuation Metrics $2.00 $1.80 LTM Revenue: $137.6M LTM Rev Growth: 21.4% LTM EBITDA: $18.6M Gross Margin: 27.2% $1.60 LTM Net Income: $(4.8M) EBITDA Margin: 13.5% $1.40 Mkt Cap / $ Invested: NA Rev Multiple: 2.1x $1.20

Investors $1.00 11/17/16 11/21/16 11/23/16 11/25/16 11/29/16 12/13/16 12/15/16 12/19/16 12/21/16 12/28/16 12/30/16 12/1/16 12/5/16 12/7/16 12/9/16

Ironbridge Capital; Fisher Funds $0.80 IPO

Offer Range Price-Open Gap $/Sh are

21 RECENT IPOS – BLACKLINE

IPO Details Business Description Offering Date: 10/27/16 Market Cap: $838.6M Provides financial accounting close solutions delivered as a SaaS Offering Price: $17.00 Offering Size: $146.2M designed to automate a variety of processes, including financial closing, general ledgers, balance sheet reconciliations, audits, Original Range: $13.00 - $15.00 % of Company: 17.4% accounting processes, and system-to-system reconciliations. IPO Performance HQ: Los Angeles, CA Ticker: NasdaqGS: BL Open: $24.52 12/30 $/share: $27.63 % Change to Offer: 44.2% % Change to Offer: 62.5% Stock Performance thru End of Q4’16 Close: $23.70 % Change to Open: 12.7% $35.00 % Change to Offer: 39.4%

% Change to Open: (3.3)% $30.00 Financial & Valuation Metrics $25.00 LTM Revenue: $112.3M LTM Rev Growth: 34.0% LTM EBITDA: $(17.8M) Gross Margin: 75.2% LTM Net Income: $(30.7M) EBITDA Margin: (15.9)% $20.00 Mkt Cap / $ Invested: 3.8x Rev Multiple: 13.0x $15.00 Investors 11/3/16 11/8/16 12/5/16 12/8/16 12/27/16 12/30/16 10/31/16 11/11/16 11/16/16 11/21/16 11/25/16 11/30/16 12/13/16 12/16/16 12/21/16 Silver Lake Management; Actuate Partners; ICONIQ Capital $10.00 IPO

Offer Range Price-Open Gap $/Sh are

22 RECENT IPOS – COUPA

IPO Details Business Description Offering Date: 10/5/16 Market Cap: $866.0M Provides cloud-based spend management platform. The Offering Price: $18.00 Offering Size: $133.2M platform connects organizations with suppliers globally; and provides greater visibility into and control over how companies Original Range: $14.00 - $16.00 % of Company: 15.4% spend money, as well as enables businesses to achieve savings that drive profitability. IPO Performance HQ: San Mateo, CA Ticker: NasdaqGS:COUP Open: $35.00 12/30 $/share: $25.01 % Change to Offer: 94.4% % Change to Offer: 38.9% Stock Performance thru End of Q4’16 Close: $33.28 % Change to Open: (28.5)% $40.00 % Change to Offer: 84.9% % Change to Open: (4.9)% $35.00

Financial & Valuation Metrics $30.00 LTM Revenue: $122.1M LTM Rev Growth: 68.4% $25.00 LTM EBITDA: $(39.2M) Gross Margin: 63.3% LTM Net Income: $(42.5M) EBITDA Margin: (32.1)% $20.00 Mkt Cap / $ Invested: 5.1x Rev Multiple: 8.4x $15.00 Investors BlueRun Ventures; Phil Boyer; Jeff Kearl; Battery Ventures; El Dorado Ventures; 10/12/16 10/17/16 10/20/16 10/25/16 10/28/16 11/10/16 11/15/16 11/18/16 11/23/16 11/29/16 12/12/16 12/15/16 12/20/16 12/23/16 12/29/16 10/7/16 11/2/16 11/7/16 12/2/16 12/7/16

$10.00 IPO Mohr Davidow Ventures; Crosslink Capital; Rally Ventures; Northgate Capital; Meritech Capital Partners; Wildcat Venture Partners; T. Rowe Price; Premji Invest; Matthew Jacobson; Jack Dorsey; ICONIQ Capital; Elevate Innovation Partners

Offer Range Price-Open Gap $/Sh are

23 MEDIAN STOCK PERFORMANCE – SAAS & CLOUD 125

 Q4’16 SaaS & Cloud 125 saw a median decrease of 7.0% while the NASDAQ posted a small gain of 1.3% » Q4’16 was generally disappointing for the SaaS & Cloud 125 as only 38 companies saw stock prices increase and only the Software Conglomerates segment posted a median gain  Despite a poor Q4, the SaaS & Cloud 125 managed a 5.3% median gain for the year, lagging slightly below the 7.5% NASDAQ increase

Stock Performance Stock Performance - 9/30-12/31

120% Soft war e C onglomer ates 1.2% 106.6%106.6% Cloud Computing / Storage 100% (2.1)% Finance & Administration (4.5)%

80% Marketing & Advertising (5.2)% ERP, Supply Chain & Commerce (5.4)% 60% Communication & Collaboration (6.0)% Content Creation & Management (6.0)% 40% 28.9% Cloud & IT Infrastructure (6.3)% Vertical Market (6.3)% 20% 5.3% 7.5% SaaS & Cloud 125 (7.0)% 1.7% 1.3% 0% CRM & Customer Service (9.9)% Human Resources (10.8)% (7.0)% (20)% Analytics / Business Intelligence (13.8)% Last 5 Years Last 3 Years LTM 9/30-12/31 (25)% (15)% (5)% 5% SaaS & Cloud 125 NASDAQ

24 MEDIAN LTM REVENUE MULTIPLES – SAAS & CLOUD 125

 Median 2016 revenue multiple declined to 4.6x, representing a marginal decrease from 2015 » Finance & Administration and ERP, Supply Chain & Commerce had the highest multiples in 2016 with 6.9x and 6.8x, respectively, representing a 5 year high for the Finance & Administration segment » CRM & Customer Service is the only segment trading below 4.0x

LTM Enterprise Value / Revenue LTM Enterprise Value / Revenue

6.0x ERP, Supply Chain & Commerce 6.9 x

5.2x 5.1x Finance & Administration 6.8 x 5.0x 4.8x 4.6x Marketing & Advertising 5.3 x Vertical Market 4.7 x 3.8x 4.0x Cloud & IT Infrastructure 4.7 x

Human Resources 4.6 x

3.0x SaaS & Cloud 125 4.6 x Content Creation & Management 4.4 x

2.0x Soft war e C onglomer ates 4.3 x Cloud Computing / Storage 4.1 x

1.0x Analytics / Business Intelligence 4.1 x Communication & Collaboration 4.0 x

CRM & Customer Service 3.3 x 0.0x 2012 2013 2014 2015 2016 0x 2x 4x 6x 8x Based on dat a available as of 12/31/16 Based on dat a available as of 12/31/16 MEDIAN LTM EBITDA MULTIPLES – SAAS & CLOUD 125

 Median LTM EBITDA multiple came in at 18.2x, nearly reaching of the 5 year high of 18.8x  The top 2 segments have posted 25.0x+ EBITDA multiples for the past several quarters » Only one company in the ERP, Supply Chain & Commerce segment meets the required parameters so the segment multiple is not very meaningful » Only three segments trade at below 15x

26 MEDIAN LTM P/E MULTIPLES – SAAS & CLOUD 125

 Poor stock performances in Q4’16 decreased the median LTM P/E multiple to 30.0x  Public markets demonstrate a strong preference for companies growing quickly and investing to solidify market leadership, confident that future profits will come with scale

27 MEDIAN REVENUE GROWTH – SAAS & CLOUD 125

 Median revenue growth rate remains consistent with 2015, currently standing at 21.3% » Revenue growth is expected to slow slightly to a median of 17.0% over the next twelve months » Software Conglomerates project weak growth despite forecasts for 11% growth for Microsoft as Oracle is expected to grow slightly while slight declines in revenue are expected for IBM and SAP

28 MEDIAN EBITDA GROWTH – SAAS & CLOUD 125

 Median EBITDA growth rate jumped to 22.4% in 2016 with similar growth expected for 2017 as many companies reap the benefits of increased scale driving higher profits » Lower EBITDA growth in prior years was largely driven by companies aggressively pouring money back in to sales and marketing, forgoing near term profits to drive increased growth

29 MEDIAN EPS GROWTH – SAAS & CLOUD 125

 Median EPS growth rate of 21.7% represents a recent high, eclipsing 20% for the first time in the past five years » This growth trend is expected to increase slightly through the next twelve months  Established leaders with scale are able to drive increased profitability as cost factors normalize after periods of heavy investments to drive top line growth

30 MEDIAN GROSS MARGIN TRENDS – SAAS & CLOUD 125

 Median gross margins have remained relatively constant for the past five years, increasing slightly in 2016 to 67.4% » Cloud & IT Infrastructure, ERP, Supply Chain & Commerce and Content Creation & Management commanded the highest gross margins as most of their expenses are operational  More mature segments such as Cloud Computing / Storage and Software Conglomerates tend to have lower gross margins due to a higher degree of price competition and more significant capital expenditures

31 MEDIAN EBITDA MARGIN TRENDS – SAAS & CLOUD 125

 Median EBITDA margin decreased slightly in Q4’16 as companies reinvested capital, focusing their efforts on growth  The majority of companies in CRM & Customer Service, Analytics / Business Intelligence and ERP, Supply Chain & Commerce continue to invest heavily in sales and marketing, delaying profitability in favor of scale and market share  The Software Conglomerates and other more mature segments already have operating leverage, resulting in higher margins

32 BEST & WORST PERFORMERS – SAAS & CLOUD 125

High/Low LTM EV/Rev Multiples High/Low Revenue Growth

16x 150% 13.4 117.7 14x 13.0 12.8 12.6 100% 12x 10.6 67.4 56.3 55.0 52.4 10x 50% 17.0 8x 6x 4.6 0% 4x (2.4) (3.1) (3.5) 1.4 1.4 1.3 1.2 1.2 (50)% (31.7) 2x (46.0) 0x (100)%

Based on dat a available as of 12/31/16 Based on dat a available as of 12/31/16

High/Low LTM EV/EBITDA Multiples High/Low EBITDA Growth 235.2 250% 100.0x 92.5 89.3 200% 171.9 127.4 66.9 150% 117.5 112.5 59.4 55.0 100% 50.0x 50% 22.2 18.2 0% 8.7 8.5 7.0 7.0 (18.8) 4.8 (50)% (19.1) (21.1) (21.2) 0.0x (100)% (49.0)

Based on dat a available as of 12/31/16 Based on dat a available as of 12/31/16 Companies w it h EBITDA Margin <7.5% and EBI TDA mult iple above 20x deemed NA Com panies wit h EBI T DA M ar gin bet ween -5.0% and 5.0% deem ed NA

33 BEST & WORST PERFORMERS – SAAS & CLOUD 125 (CONTINUED)

High/Low LTM P/E Multiples High/Low EPS Growth 250x 200% 200.3 139.6 136.5 130.4 120.0 119.4 200x 150% 159.1 100% 21.7 150x 50% 112.6 0% 100x 77.3 75.2 (50)% (100)% (68.6) (72.6) (76.4) 50x 30.0 (150)% (113.3) 14.7 13.7 12.7 12.4 8.8 (200)% (179.4) 0x (250)%

Based on dat a available as of 12/31/16 Based on dat a available as of 12/31/16 Com panies wit h Net Margin <5.0% and P/E above 40x deem ed NA Com panies wit h Net Margin bet ween -5.0% and 5.0% deem ed NA

Stock Performance - 9/30-12/31 High/Low EBITDA Margin

150% 137.5 100% 45.9 44.9 42.4 41.0 40.9 120% 12.1 90% 0% 60% 39.0 (41.5) 32.4 29.9 25.8 (100)% (44.0) (46.2) 30%

0% (200)% (146.1) (30)% (7.0) (222.8) (60)% (34.6) (37.5) (38.3) (39.5) (300)% (55.2) (90)%

34 NOTABLE TRANSACTION PROFILES M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Based in Herndon, VA, Deltek is a leading global provider of software and information solutions for project-based businesses serving niche markets, including government contractors and Deal Summary professional services firms, with more than 22,000 customers and Date: 12/6/2016 2,400 employees across more than 80 countries. Transaction Value: $2.8B With nearly 11,000 employees and having generated more than Enterprise Value: $2.8B $3.6B in revenue in 2015, Sarasota, FL-based Roper designs and % Sought: 100% develops software and engineered solutions for healthcare, Consideration: Cash transportation, food, energy, water, education and other niche markets worldwide. Thoma Bravo had previously taken Deltek private in 2012 in an all-cash deal valued at $1.1B, and rumors in mid 2016 had indicated Thoma Bravo was exploring a sale of Valuation Metrics Deltek. Prior to being taken private, Deltek had about $320M in LTM Revenue Multiple: 5.5 x annual revenue and $95M in EBITDA. Thoma Bravo noted in a LTM EBITDA Multiple: 14.0 x(1) statement that during its four years of ownership Deltek completed six acquisitions and grew revenue by more than 60%. Multiple on $ Invested: 2.6 x(2) Roper Technologies Chairman, President and CEO Brian Jellison commented, “The Deltek acquisition is consistent with our disciplined capital deployment strategy, which results in the acquisition of high performing niche businesses that grow and Investors compound our cash flow.” Thoma Bravo With an estimated $535M of revenue and $200M of EBITDA for 2017, Roper said it expects the deal to boost 2017 cash flow by $80M.

(1) EBITDA multiple calculated based on 2017 estimate (2) Multiple is calculated based on $1.1B transaction value when Thoma Bravo acquired Deltek

36 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Based in Pleasanton, CA and founded in 2007 ServiceMax provides a cloud-based suite of applications, including inventory and supply chain logistics, workforce optimization and work order Deal Summary management for more than 400 customers worldwide, including Date: 11/14/2016 Coca-Cola and Tyco. Transaction Value: $915 million GE Digital was established just last year in San Ramon, CA as Enterprise Value: $915 million General Electric sought to expand its digital revenue stream with % Sought: 100% the bulk of earnings depending on services revenue. This Consideration: Cash acquisition provides GE Digital with enhanced capabilities to advance its ‘Industrial Internet’ initiative, connecting assets to provide more data to improve productivity, enabling customers to immediately gain insights from their assets and enhance the Valuation Metrics efficiency of field service processes for industrial equipment. GE LTM Revenue Multiple: 10.2 x Digital CEO Bill Ruh commented, “This acquisition builds upon our LTM EBITDA Multiple: NA ongoing efforts to enhance our overall technology stack around the Predix platform and advance our Industrial Internet vision… Multiple on $ Invested: 4.5 x Improved productivity is critical for the Industrial Internet and digitizing field services is a cornerstone of a successful digital industrial strategy.”

Investors GE was already an investor in ServiceMax, having participated in Emergence Capital, Trinity Ventures, salesforce.com, an $82M funding round last year, and has been a customer since Mayfield Fund, CrossLink Capital, Adams Street, MeriTech 2010. With more than $90M in estimated revenue for 2016, the Capital, KPCB, Cross Creek, QuestMark, Sozo Ventures, deal value represents a notably lofty revenue multiple of 10.2x. PremjiInvest, GE Ventures, Cloud Apps Management The deal also marks the largest SaaS acquisition by a company not in the software business.

37 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Based in New York, NY and founded in 1996, Intralinks has more than 90,000 customers and provides confidential cloud-based software that enables companies to securely manage, control, Deal Summary track, search, exchange and collaborate on sensitive information in Date: 12/6/2016 high-stakes transactions and business collaborations worldwide. Transaction Value: $821 million Bridgewater, NJ-based Synchronoss is a leading provider of cloud Enterprise Value: $902 million solutions, secure enterprise productivity and software-based % Sought: 100% automated activation for enterprise customers and mobile Consideration: Cash providers worldwide. The acquisition of Intralinks will enable Synchronoss to further penetrate the enterprise market by leveraging their cloud expertise and deep relationships across the carrier space and financial services vertical. Intralinks CEO Ron Valuation Metrics Hovsepian, who will now assume the role of CEO of the combined company, commented, “Together with Synchronoss, we believe we LTM Revenue Multiple: 2.9 x can deploy enhanced enterprise and mobile solutions to our LTM EBITDA Multiple: 42.7 x customers while opening up new enterprise distribution channels LTM P/E Multiple: NM across the world.” The company expects to achieve more than $40 million in combined synergies within the first year following the Premium versus: acquisition. 1 day prior: 15.4% 1 week prior: 12.8% Synchronoss' offer of $13.00 per share represents a 15.4% 1 month prior: 33.5% premium to Intralinks' prior day closing stock price. Intralinks stock price was up 15.3% in premarket trading on the day following the announcement. Note: LTM and Premiums as of quarter prior to transaction announcement date.

38 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Based in Bethlehem, PA, the SunGuard Public Sector and Education solutions business was part of Jacksonville, FL-based Fidelity National Information Services (NYSE:FIS), a global provider Deal Summary of financial services technology. The SunGard Public Sector Date: 12/7/2016 business provides comprehensive technology solutions to address Transaction Value: $850 million public safety and public administrative needs of government customers and public schools. Enterprise Value: $850 million % Sought: 100% The SunGard Public Sector business will become a new Consideration: Cash independent company under the ownership of Vista and will remain focused on providing technology solutions to government entities, while the SunGard Education business will become part of Vista-owned PowerSchool to create more comprehensive K-12 Valuation Metrics technology solutions tailored for the education market. Brian LTM Revenue Multiple: NA Sheth, co-founder and President of Vista Equity commented, “For LTM EBITDA Multiple: NA years, the SunGard Public Sector and Education businesses have provided innovative and mission-critical solutions that serve the Multiple on $ Invested: NA diverse needs of public administration, public safety and education officials… We look forward to welcoming the businesses into the Vista family and helping them reach their full potential in their important respective markets.” Investors Fidelity National Information Services, Inc. (NYSE:FIS) FIS expects the transaction to result in cash proceeds of approximately $500M, and the proceeds will be used to reduce outstanding debt.

39 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2010, Krux is a leading data management platform used by marketers to unify, segment and activate audiences to increase engagement with users, prospects and customers. It Deal Summary boasts customers including the likes of Spotify, Centro, Kellog’s, Date: 10/3/2016 Warner Brothers and Peugeot. Transaction Value: $768 million Salesforce.com’s namesake SaaS CRM product enables sales Enterprise Value: $768 million organizations to manage leads through the entire sales funnel. % Sought: 100% Krux is just the latest in a series of acquisitions made by Consideration: Cash / Stock salesforce.com during the past year, having spent approximately $4B collectively on Demandware, BeyondCore and Quip over the past 12 months, as well as an unsuccessful bid to buy LinkedIn for more than $26B. Salesforce.com CEO Marc Benioff commented Valuation Metrics during his most recent earnings call, “This M&A window, I talked LTM Revenue Multiple: NA about that I think on the last call, openly in the press, seems to LTM EBITDA Multiple: NA have opened for the year… I think it will probably close, probably at the end of this calendar year. But it's been incredible time for us Multiple on $ Invested: 15.4 x to acquire some phenomenal assets.” By incorporating the Krux platform into the Salesforce Marketing Cloud, Salesforce will enable marketers to better tailor and personalize marketing campaigns while providing marketers the tools to seek out new, Investors broader markets. Accel Partners, Data Collective, IDG, Sapphire Ventures, Temasek Investments, The Entrepreneurs' Fund, Time The consideration is comprised of a combination of $340M in cash Warner Investments, Ulu Ventures, Visionnaire Ventures, and 6M shares of salesforce.com common stock. Western Technology Investment

40 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Based in Cincinnati, OH, ConstructConnect is a leading provider of cloud-based data, collaboration, and workflow automation solutions for the commercial construction industry. Deal Summary ConstructConnect's SaaS solutions business boasts more than Date: 10/31/2016 800,000 users spanning general contractors, subcontractors, and Transaction Value: $632 million building product manufacturers, generating more than 55 million invitations to bid across 400,000 construction projects in the last Enterprise Value: $632 million year alone. % Sought: 100% Consideration: Not specified With nearly 11,000 employees and having generated more than $3.6B in revenue in 2015, Sarasota, FL-based Roper designs and develops software and engineered solutions for healthcare, transportation, food, energy, water, education and other niche Valuation Metrics markets worldwide. Roper Chairman, President and CEO Brian LTM Revenue Multiple: 4.2 x Jellison commented, “We are excited to acquire another industry- LTM EBITDA Multiple: NA leading SaaS and informatics business… ConstructConnect has created the largest cloud-based network for collaboration Multiple on $ Invested: NA between participants in the construction industry. Its solutions facilitate the pre-construction process from opportunity identification through project award, driving efficiency and creating revenue opportunities for its users.” Investors Chrysalis, Custer Capital, Fort Washington Capital, Genstar, Roper expects ConstructConnect to generate approximately Hauser, Horizon Technology, Iron Gate Capital, Messer $150M in revenue in 2017. Construction, Reservoir Venture Partners, River Cities, Seavest, Ticonderoga, Tri-State Ventures, Warburg Pincus

41 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2006, TubeMogul provides video advertising solutions through a programmatic platform that lets agencies and brands plan, buy, measure, and optimize their video advertising spend Deal Summary across multiple platforms. TubeMogul had actually gone public in Date: 11/9/2016 2014 but its shares have since fallen from a high of $22.00 in Transaction Value: $626 million December 2014 to less than $8.00, a return to the initial offering price. Enterprise Value: $540 million % Sought: 100% Adobe is a global leader in digital media and digital marketing Consideration: Cash solutions. TubeMogul will be integrated into Adobe’s Marketing Cloud business, which provides solutions for big data analytics, mobility, and social media. The acquisition will position Adobe Marketing Cloud as a fully featured digital advertising and data Valuation Metrics management solution for cross-channel video advertising. Brad Rencher, EVP and GM of Digital Marketing at Adobe commented, LTM Revenue Multiple: 2.6 x “Whether it’s episodic TV, indie films, or Hollywood blockbusters, LTM EBITDA Multiple: NM video consumption is exploding across every device, and brands LTM P/E Multiple: NM are following those eyeballs… With the acquisition of TubeMogul, Adobe will give customers a ‘one-stop shop’ for video advertising, Premium versus: providing even more strategic value for our Adobe Marketing 1 day prior: 82.1 % Cloud customers.” 1 week prior: 90.7% 1 month prior: 56.2% The deal value of $540M on $212M of revenue for the twelve months preceding the transaction equates to 2.6x trailing revenue for the same period. Note: LTM and Premiums as of quarter prior to transaction announcement date.

42 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 1982, Gracenote is a leading provider of media and entertainment metadata and digital rights management SaaS. Known as the industry standard for automatic content recognition Deal Summary (ACR) technology, Gracenote’s ACR technology powers the Date: 12/20/2016 discovery and recommendation engines used by the world’s largest television, music, media, and automotive companies. Transaction Value: $560 million Enterprise Value: $560 million Headquartered in Oxford, United Kingdom, Nielsen studies % Sought: 100% consumer behavior and market trends to provide their clients with actionable insights aimed at helping them drive profitable growth. Consideration: Cash The acquisition will allow Nielsen to provide clients with deeper analytics on consumer behavior and engagement. Karthik Rao, President, Expanded Verticals at Nielsen commented, “Gracenote’s Valuation Metrics metadata and content recognition technology fuels the interfaces LTM Revenue Multiple: NA of the major video, music and in-car infotainment systems that LTM EBITDA Multiple: NA consumers engage with every day. This acquisition provides Nielsen with a significant asset in our mission of measuring and NA Multiple on $ Invested: understanding consumer behavior.”

Nielsen will incorporate Gracenote into their Watch segment, which tracks what, when and how frequently consumer audiences Investors consume TV programming. Nielsen expects the acquisition to be Tribune Media neutral to their 2017 GAAP EPS and slightly accretive in 2018.

43 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Kroll Ontrack, a subsidiary of Corporate Risk Holdings, was founded in 1985 and provides data recovery, eDiscovery, and data destruction solutions across numerous market segments. Kroll Deal Summary Ontrack boasts over 12,000 clients worldwide, including the Date: 10/21/2016 world’s largest financial institutions, Fortune 1,000 companies, and Transaction Value: $410 million Am Law 100 law firms. Enterprise Value: $410 million Established in 2005 and a portfolio company of The Carlyle Group % Sought: 100% and Revolution Growth, LDiscovery is a leader in eDiscovery Consideration: Cash management solutions, providing end-to-end legal and technology consulting services to Am Law 200 law firms, Fortune 500 companies, and government agencies. The acquisition will allow LDiscovery to supplement its eDiscovery solutions with Kroll Valuation Metrics Ontrack’s market leading eDiscovery and data recovery LTM Revenue Multiple: NA technology and platform. Chris Weiler, CEO of LDiscovery LTM EBITDA Multiple: NA commented, “… With this combination, LDiscovery customers will have access to Kroll Ontrack’s global footprint, proprietary review Multiple on $ Invested: NA platform and the world’s best data recovery services, while Kroll Ontrack customers will leverage LDiscovery’s proprietary suite of eDiscovery technology, including our remote collection tool, ESI processing platform, eDirect365™, and our award-winning Investors Relativity integrations, as well as the eDiscovery industry’s most Kroll advanced and robust hosting infrastructure.”

The transaction was financed by The Carlyle Group and Revolution Growth who committed debt financing to LDiscovery to complete the all cash transaction of $410M.

44 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2004, HookLogic is a pioneer of performance marketing for brands. Advertisers use the HookLogic platform to reach in-market shoppers and drive traffic to products. HookLogic Deal Summary boasts a network of partners that include the likes of Walmart, Date: 10/3/2016 Target, Best Buy, and Expedia. Transaction Value: $250 million With over 2,200 employees in 30 officers across the world, Criteo Enterprise Value: $250 million provides predictive search engines for retailers and e-commerce % Sought: 100% sites as well as pay-per-click performance display advertising Consideration: Cash solutions. With the acquisition of HookLogic, Criteo will be able to strengthen Criteo’s performance marketing platform and build future performance marketing products. Eric Eichmann, Criteo CEO, commented, “The addition of both the HookLogic team and Valuation Metrics technology to our business, along with the recent launch of LTM Revenue Multiple: 1.9x Predictive Search, enables Criteo to focus on delivering more value LTM EBITDA Multiple: NA to brand manufacturers and retailers, providing them with a full portfolio of performance marketing solution.” Multiple on $ Invested: 6.3x Criteo will integrate its technology for predictive bidding and product recommendation into HookLogic’s products, which will increase campaign performance and enable retailers to further Investors monetize their site traffic via the HookLogic Exchange. With a deal Bain Capital Ventures; Fung Capital USA; LUMA Capital value of $250M on $130M of revenue for the twelve months Partners; Michael Barrett; Mousse Partners preceding the transaction equates to 1.9x trailing revenue for the same period.

45 PUBLIC COMPANY TRADING & OPERATING METRICS TRADING & OPERATING METRICS

($ in millions, except per share data) $/Share Market Enterprise % Change Ent. Value/Rev. Ent. Value/EBITDA Price/EPS NTM / LTM Growth LTM Margin Company Name 12/31/16 Cap Value Cash Debt LTM LQ LTM NTM LTM NTM LTM NTM Revenue EBITDA EPS Gross EBITDA Net

SaaS & Cloud 125 Mean 21,027 20,699 3,523 3,195 7.9 % (5.6)% 5.0 x 4.2 x 22.7 x 18.9 x 39.9 x 31.8 x 18.5% 33.7% 30.8% 65.9 % 8.7 % (1.3)% SaaS & Cloud 125 Median 1,493 1,379 116 29 5.3 % (7.0)% 4.6 x 4.0 x 18.2 x 15.7 x 30.0 x 26.4 x 17.0% 22.2% 22.5% 67.4 % 12.1 % 6.6 %

Analytics / Business Intelligence Adobe 102.95 51,190 48,330 4,761 1,902 9.6 % (5.2)% 8.3 x 6.9 x 20.9 x 17.5 x 34.1 x 26.9 x 19.4% 19.4% 26.7% 86.0 % 39.5 % 26.0 % Alphabet 792.45 539,070 459,952 83,056 3,938 1.9 % (1.4)% 5.4 x 4.6 x 13.3 x 11.4 x 23.5 x 20.1 x 16.6% 17.1% 17.2% 61.8 % 40.5 % 27.5 % Apptio 18.53 710 587 123 0 NA (14.6)% 3.9 x 3.3 x NA NA NA NA 19.0% 52.6% 80.1% 65.7 % (16.5)% (22.8)% Bazaarvoice 4.85 402 353 86 37 10.7 % (17.9)% 1.7 x 1.7 x NA 22.4 x NA NA 3.0% 26.9% NA 62.4 % 6.2 % 1.2 % comScore 31.58 1,806 1,692 147 33 (23.3)% 3.0 % 4.6 x 3.3 x 15.4 x 14.1 x 16.4 x 21.1 x 40.8% 9.1% (22.1)% 68.5 % 29.7 % 19.7 % Gridsum 10.19 293 219 81 7 NA (39.5)% 4.3 x 2.8 x NA NA NA NA 56.3% 117.5% 97.2% 86.3 % (10.3)% (25.6)% Hottolink 4.11 51 59 12 20 (10.8)% (13.1)% 2.6 x NA NA NA NA NA NA NA NA 54.7 % (2.0)% (17.2)% iSentia 2.08 415 451 6 42 (41.0)% (29.3)% 3.9 x 3.7 x 12.8 x 11.6 x 21.3 x 16.7 x 5.2% 10.9% 27.8% 39.2 % 30.3 % 16.8 % Mattersight 3.70 98 109 15 25 (43.6)% (11.9)% 2.7 x 2.1 x NA NA NA NA 27.9% 90.4% 27.6% 68.0 % (24.4)% (51.2)% New Relic 28.25 1,472 1,275 197 0 (22.5)% (26.3)% 5.7 x 4.4 x NA NA NA NA 30.9% 88.8% 41.8% 80.3 % (9.6)% (16.9)% Splunk 51.15 6,939 6,000 1,027 88 (13.0)% (12.8)% 6.9 x 5.4 x 89.3 x 54.9 x NA 120.4 x 28.5% 62.8% NA 80.5 % 7.8 % 4.0 % Workiva 13.65 563 530 54 22 (22.3)% (24.7)% 3.1 x 2.7 x NA NA NA NA 15.1% 21.6% 7.4% 71.3 % (17.6)% (19.3)% Mean 50,251 43,296 7,464 509 (15.4)% (16.1)% 4.4 x 3.7 x 30.4 x 22.0 x 23.8 x 41.0 x 23.9% 47.0% 33.7% 68.7 % 6.1 % (4.8)% Median 636 559 104 29 (17.7)% (13.8)% 4.1 x 3.3 x 15.4 x 15.8 x 22.4 x 21.1 x 19.4% 26.9% 27.6% 68.2 % 2.1 % (7.8)%

Cloud & IT Infrastructure Akamai 66.68 11,556 11,279 911 635 26.7 % 25.8 % 4.9 x 4.5 x 12.0 x 11.3 x 24.7 x 23.9 x 8.3% 6.0% 3.5% 65.3 % 40.9 % 20.8 % Alarm.com 27.83 1,279 1,151 135 7 66.8 % (3.6)% 4.6 x 4.0 x 26.5 x 21.7 x 46.5 x 47.5 x 15.2% 22.2% (2.1)% 62.6 % 17.5 % 11.4 % Brightcove 8.05 272 238 35 1 29.8 % (38.3)% 1.6 x 1.5 x NA NA NA NA 9.5% 17.2% NA 64.4 % 5.6 % 1.9 % Citrix 89.31 13,929 13,605 1,663 1,339 18.1 % 4.8 % 4.0 x 4.1 x 11.5 x 11.7 x 16.7 x 17.0 x (2.4)% (2.3)% (1.9)% 85.3 % 34.8 % 24.6 % Fir eEy e 11.90 2,036 1,843 926 733 (42.6)% (19.2)% 2.6 x 2.4 x NA NA NA NA 6.7% 112.5% 53.1% 62.2 % (12.9)% (30.1)% Hortonw orks 8.31 505 421 84 0 (62.1)% (0.5)% 2.5 x 1.9 x NA NA NA NA 28.4% 79.7% 23.4% 58.9 % (46.2)% (88.1)% LogMeIn 96.55 2,467 2,287 217 38 43.9 % 6.8 % 7.1 x 6.2 x 27.3 x 21.8 x 50.5 x 41.3 x 14.5% 25.2% 22.5% 86.3 % 25.8 % 15.3 % Metaps 34.69 447 404 63 19 41.3 % 137.5 % 4.7 x 3.2 x NA NA NA NA 49.2% NA NA 18.6 % (1.2)% (8.4)% Mimec as t 17.90 981 875 111 4 86.5 % (6.4)% 5.5 x 4.4 x NA NA NA NA 23.8% 52.1% NA 71.6 % 6.0 % 4.6 % Nutanix 26.56 3,778 3,431 347 0 NA (28.2)% 6.5 x 4.3 x NA NA NA NA 52.4% 7.6% 61.6% 60.8 % (27.3)% (32.9)% Proofpoint 70.65 3,002 2,951 412 361 8.7 % (5.6)% 8.6 x 6.4 x NA 65.6 x NA NA 33.3% 83.5% NA 70.1 % 7.1 % 0.6 % Qualys 31.65 1,130 920 210 0 (4.4)% (17.1)% 4.8 x 4.1 x 13.9 x 13.0 x 37.7 x 37.5 x 18.0% 7.5% 0.5% 79.1 % 34.7 % 16.9 % Quick Heal 3.69 259 204 55 0 NA 12.1 % 3.8 x 3.5 x 10.3 x 11.9 x 18.1 x 24.8 x 6.9% (13.4)% (27.3)% 94.4 % 36.8 % 17.7 % Rapid7 12.17 517 429 88 0 (19.6)% (31.0)% 3.0 x 2.4 x NA NA NA NA 25.1% (2.2)% 7.6% 74.5 % (21.6)% (25.8)% Red Hat 69.70 12,518 11,963 1,295 740 (15.8)% (13.8)% 5.1 x 4.6 x 20.6 x 17.3 x 32.0 x 27.8 x 12.6% 18.8% 14.9% 85.2 % 25.0 % 17.2 % SecureWorks 10.59 854 743 111 0 NA (15.3)% 1.8 x 1.6 x NA NA NA NA 17.7% 59.4% 55.2% 50.3 % (7.2)% (7.6)% ServiceNow 74.34 12,341 12,034 807 499 (14.1)% (6.1)% 9.3 x 7.1 x 54.1 x 34.6 x 112.6 x 79.2 x 30.9% 56.2% 42.3% 70.2 % 17.2 % 8.3 % Sophos 3.23 1,493 1,702 90 299 (16.4)% (7.0)% 3.4 x 2.9 x NA 21.1 x NA 31.9 x 16.0% NA 177.1% 77.6 % 3.2 % (11.8)% Splunk 51.15 6,939 6,000 1,027 88 (13.0)% (12.8)% 6.9 x 5.4 x 89.3 x 54.9 x NA 120.4 x 28.5% 62.8% NA 80.5 % 7.8 % 4.0 % Symantec 23.89 14,893 16,450 5,619 7,176 13.8 % (4.8)% 4.5 x 3.7 x 12.7 x 8.3 x 22.3 x 17.5 x 21.8% 52.6% 27.4% 82.3 % 35.5 % 18.7 % Talend 22.20 633 543 90 0 NA (15.1)% 5.6 x 4.2 x NA NA NA NA 34.4% 31.1% 89.9% 76.3 % (26.2)% (45.1)% Trend Micro 35.59 4,880 3,625 1,255 0 (13.2)% 2.7 % 2.9 x 3.0 x 10.5 x 9.5 x 29.5 x NA (3.5)% 10.7% NA 82.6 % 28.0 % 13.5 % V Mw ar e 78.73 32,524 25,770 8,254 1,500 39.2 % 7.3 % 3.7 x 3.5 x 10.2 x 9.3 x 18.6 x 17.0 x 6.0% 9.8% 9.6% 84.9 % 36.3 % 26.0 % WANdisco 2.47 87 84 3 0 94.7 % (8.6)% 7.7 x 7.3 x NA NA NA NA 4.3% 61.7% 28.3% 93.2 % (222.8)% (214.6)% Mean 5,388 4,956 992 560 13.4 % (1.5)% 4.8 x 4.0 x 24.9 x 22.3 x 37.2 x 40.5 x 19.1% 34.5% 32.5% 72.4 % (0.1)% (11.0)% Median 1,764 1,772 214 13 11.2 % (6.3)% 4.7 x 4.1 x 13.3 x 15.1 x 29.5 x 29.9 x 16.8% 23.7% 23.0% 75.4 % 7.5 % 4.3 %

47 TRADING & OPERATING METRICS

Cloud Computing / Storage Alphabet 792.45 539,070 459,952 83,056 3,938 1.9 % (1.4)% 5.4 x 4.6 x 13.3 x 11.4 x 23.5 x 20.1 x 16.6% 17.1% 17.2% 61.8 % 40.5 % 27.5 % Amazon 749.87 356,313 356,954 18,347 18,988 10.9 % (10.4)% 2.8 x 2.3 x 24.7 x 19.4 x NA NA 23.9% 27.0% NA 34.6 % 11.3 % 1.6 % Box 13.86 1,755 1,652 168 65 (0.7)% (12.1)% 4.4 x 3.5 x NA NA NA NA 26.8% 20.8% 34.8% 71.0 % (12.6)% (24.3)% CenturyLink 23.78 13,000 32,578 140 19,718 (5.5)% (13.3)% 1.8 x 1.9 x 4.8 x 5.1 x 8.8 x 10.5 x (2.3)% (6.0)% (16.5)% 58.8 % 38.3 % 8.3 % IBM 165.99 157,832 190,347 9,968 42,483 20.6 % 4.5 % 2.4 x 2.4 x 9.8 x 9.4 x 12.4 x 11.8 x (0.6)% 4.4% 4.4% 48.4 % 24.1 % 16.1 % Microsoft 62.14 483,160 422,303 136,789 75,932 12.0 % 7.9 % 4.9 x 4.5 x 12.0 x 11.5 x 21.8 x 20.9 x 11.1% 5.1% 4.4% 60.9 % 41.0 % 26.6 % Oracle 38.45 157,735 153,856 58,206 54,327 5.3 % (2.1)% 4.1 x 4.0 x 9.2 x 9.1 x 14.7 x 14.5 x 2.8% 1.5% 1.3% 58.5 % 44.9 % 29.6 % Salesforce 68.46 46,491 47,806 1,201 2,516 (12.7)% (4.0)% 6.0 x 4.9 x 30.3 x 23.7 x 75.2 x 57.7 x 22.6% 28.0% 30.4% 74.1 % 20.0 % 7.9 % Verizon 53.38 217,611 317,763 6,441 106,593 15.5 % 2.7 % 2.5 x 2.5 x 7.0 x 6.9 x 13.7 x 13.4 x (1.3)% 1.6% 2.0% 59.5 % 35.4 % 12.5 % Mean 219,219 220,357 34,924 36,062 5.3 % (3.1)% 3.8 x 3.4 x 13.9 x 12.1 x 24.3 x 21.3 x 11.1% 11.1% 9.7% 58.6 % 27.0 % 11.8 % Median 157,832 190,347 9,968 19,718 5.3 % (2.1)% 4.1 x 3.5 x 10.9 x 10.4 x 14.7 x 14.5 x 11.1% 5.1% 4.4% 59.5 % 35.4 % 12.5 %

Communication & Collaboration 8x8 14.30 1,295 1,125 170 0 24.9 % (7.3)% 4.8 x 4.1 x 49.4 x 40.4 x 71.5 x 68.4 x 16.9% 22.1% 4.5% 73.2 % 9.8 % 7.6 % Atlassian 24.08 5,302 4,548 754 0 (19.9)% (19.7)% 9.2 x 7.1 x 59.4 x 33.7 x 66.9 x 69.0 x 30.2% 76.4% (3.0)% 83.3 % 15.5 % 14.7 % Cisco 30.22 151,697 115,512 70,974 34,789 11.3 % (4.7)% 2.4 x 2.4 x 7.0 x 6.8 x 12.7 x 12.7 x (1.4)% 4.0% (0.2)% 63.4 % 33.6 % 24.7 % Citrix 89.31 13,929 13,605 1,663 1,339 18.1 % 4.8 % 4.0 x 4.1 x 11.5 x 11.7 x 16.7 x 17.0 x (2.4)% (2.3)% (1.9)% 85.3 % 34.8 % 24.6 % CLX 10.69 520 526 1 7 (0.3)% 29.9 % 4.1 x 1.9 x NA 22.8 x 32.7 x 21.1 x 117.7% 235.2% 54.9% 14.9 % 5.4 % 8.3 % Cybozu 3.82 175 156 19 0 43.5 % (23.5)% 2.1 x NA 24.6 x NA NA NA NA NA NA 93.6 % 8.3 % 1.4 % Everbridge 18.45 501 439 62 0 NA 9.4 % 6.1 x 4.9 x NA NA NA NA 25.7% 99.8% 70.1% 68.1 % (9.9)% (15.6)% j2 Global 81.80 3,931 4,205 325 599 (0.6)% 22.8 % 5.1 x 3.9 x 11.1 x 9.2 x 17.0 x 14.5 x 29.7% 20.6% 17.6% 82.9 % 45.9 % 28.0 % Jive Softw are 4.35 340 240 101 2 6.6 % 2.1 % 1.2 x 1.2 x 17.5 x NA NA 36.3 x 1.7% (49.0)% NA 65.2 % 6.8 % (0.8)% LivePerson 7.55 438 386 51 0 11.9 % (10.2)% 1.7 x 1.7 x 19.3 x 18.2 x NA NA 0.5% 6.1% NA 70.8 % 8.8 % (0.5)% Microsoft 62.14 483,160 422,303 136,789 75,932 12.0 % 7.9 % 4.9 x 4.5 x 12.0 x 11.5 x 21.8 x 20.9 x 11.1% 5.1% 4.4% 60.9 % 41.0 % 26.6 % RingCentral 20.60 1,516 1,379 152 16 (12.6)% (12.9)% 3.8 x 3.1 x NA NA NA NA 23.9% 40.5% NA 74.8 % 5.5 % 1.4 % Tw ilio 28.85 2,514 2,261 252 0 NA (55.2)% 9.2 x 6.9 x NA NA NA NA 32.3% 64.8% 82.7% 55.9 % (7.3)% (35.7)% V-cube 5.57 108 134 19 46 (34.1)% (34.6)% 1.9 x NA 12.6 x NA NA NA NA NA NA 51.5 % 15.2 % (5.4)% Mean 47,530 40,487 15,095 8,052 5.0 % (6.5)% 4.3 x 3.8 x 22.4 x 19.3 x 34.2 x 32.5 x 23.8% 43.6% 25.4% 67.4 % 15.2 % 5.7 % Median 1,405 1,252 161 4 9.0 % (6.0)% 4.0 x 4.0 x 15.0 x 15.0 x 21.8 x 21.0 x 20.4% 21.3% 4.5% 69.4 % 9.3 % 4.5 %

Content Creation & Management Adobe 102.95 51,190 48,330 4,761 1,902 9.6 % (5.2)% 8.3 x 6.9 x 20.9 x 17.5 x 34.1 x 26.9 x 19.4% 19.4% 26.7% 86.0 % 39.5 % 26.0 % GoDaddy 34.95 3,057 3,532 566 1,041 9.0 % 1.2 % 2.0 x 1.7 x 8.8 x 7.7 x 21.6 x 20.9 x 13.7% 14.7% 3.7% 64.7 % 22.3 % 6.7 % Kudelski 17.38 943 1,188 90 335 20.4 % (6.9)% 1.2 x 1.1 x 10.2 x 8.7 x NA 15.1 x 5.5% 18.1% NA 68.0 % 11.4 % 5.5 % ROV I 13.02 642 638 46 42 (17.0)% (10.6)% 2.2 x 2.1 x 17.7 x 15.9 x 28.2 x 22.6 x 2.6% 11.4% 24.9% 57.4 % 12.3 % 9.6 % Sumavision 1.03 1,421 1,184 237 0 (44.8)% (13.7)% 13.4 x NA NA NA 159.1 x NA NA NA NA 71.8 % 0.4 % 10.2 % Wix.com 44.55 1,892 1,746 145 0 95.8 % 2.6 % 6.6 x 4.9 x 55.0 x 26.7 x NA NA 35.5% 106.4% 107.7% 84.0 % 12.1 % (8.8)% Mean 9,857 9,436 974 553 12.2 % (5.4)% 5.6 x 3.4 x 22.6 x 15.3 x 60.8 x 21.4 x 15.3% 34.0% 40.7% 72.0 % 16.3 % 8.2 % Median 1,656 1,467 191 189 9.3 % (6.0)% 4.4 x 2.1 x 17.7 x 15.9 x 31.1 x 21.7 x 13.7% 18.1% 25.8% 69.9 % 12.2 % 8.1 %

48 TRADING & OPERATING METRICS

CRM & Customer Service Five9 14.19 752 739 57 45 63.1 % (9.5)% 4.8 x 4.1 x NA NA NA NA 16.0% NA NA 56.6 % 1.7 % (3.4)% Jive Softw are 4.35 340 240 101 2 6.6 % 2.1 % 1.2 x 1.2 x 17.5 x NA NA 36.3 x 1.7% (49.0)% NA 65.2 % 6.8 % (0.8)% LivePerson 7.55 438 386 51 0 11.9 % (10.2)% 1.7 x 1.7 x 19.3 x 18.2 x NA NA 0.5% 6.1% NA 70.8 % 8.8 % (0.5)% Model N 8.85 247 181 66 0 (20.7)% (20.3)% 1.7 x 1.5 x NA NA NA NA 12.6% (13.0)% (15.6)% 49.8 % (11.8)% (16.4)% Salesforce 68.46 46,491 47,806 1,201 2,516 (12.7)% (4.0)% 6.0 x 4.9 x 30.3 x 23.7 x 75.2 x 57.7 x 22.6% 28.0% 30.4% 74.1 % 20.0 % 7.9 % Zendesk 21.20 2,021 1,810 211 0 (19.8)% (31.0)% 6.3 x 4.7 x NA NA NA NA 34.2% NA 24.6% 69.2 % 1.0 % (8.0)% Mean 8,381 8,527 281 427 4.7 % (12.2)% 3.6 x 3.0 x 22.4 x 21.0 x 75.2 x 47.0 x 14.6% (7.0)% 13.1% 64.3 % 4.4 % (3.5)% Median 595 563 84 1 (3.0)% (9.9)% 3.3 x 2.9 x 19.3 x 21.0 x 75.2 x 47.0 x 14.3% (3.4)% 24.6% 67.2 % 4.2 % (2.1)%

ERP, Supply Chain & Commerce Amber Road 9.08 244 250 16 22 78.4 % (5.9)% 3.5 x 3.1 x NA NA NA NA 12.7% 74.9% 32.7% 48.9 % (8.2)% (20.5)% ChannelAdvisor 14.35 370 307 65 2 3.6 % 11.0 % 2.8 x 2.5 x NA NA NA NA 11.5% (19.1)% NA 79.9 % 6.9 % (0.6)% Freelancer 0.72 333 306 27 0 (44.8)% (37.5)% 7.9 x NA NA NA NA NA NA NA NA 86.3 % (1.5)% (3.4)% Shopify 42.87 3,814 3,413 400 0 66.2 % (0.1)% 10.4 x 6.7 x NA NA NA NA 55.0% NA NA 52.7 % (0.1)% (3.2)% SPS Commer c e 69.89 1,191 1,066 125 0 (0.5)% (4.8)% 5.8 x 4.9 x NA 34.6 x 70.6 x 62.2 x 18.0% NA 13.4% 67.2 % (1.0)% 9.2 % Wisetech 4.09 1,187 1,104 88 5 NA (6.5)% 12.6 x 9.7 x 45.2 x 27.7 x 200.3 x 52.3 x 29.9% 63.6% 282.8% 84.5 % 27.9 % 6.3 % Mean 1,190 1,074 120 5 20.6 % (7.3)% 7.2 x 5.4 x 45.2 x 31.1 x 135.4 x 57.3 x 25.4% 39.8% 109.7% 69.9 % 4.0 % (2.0)% Median 779 686 76 1 3.6 % (5.4)% 6.9 x 4.9 x 45.2 x 31.1 x 135.4 x 57.3 x 18.0% 63.6% 32.7% 73.6 % (0.5)% (1.9)%

Finance & Administration Blackline 27.63 1,417 1,463 20 66 NA NA 13.0 x 9.8 x NA NA NA NA 33.6% 3.9% 26.0% 75.2 % (10.0)% (21.7)% Bottomline 25.02 914 960 128 173 (15.8)% 7.3 % 2.8 x 2.7 x 21.2 x 13.3 x 20.2 x 28.6 x 3.2% 59.7% (29.3)% 56.4 % 13.2 % 13.7 % Coupa 25.01 1,250 1,029 221 0 NA NA 8.4 x 6.6 x NA NA NA NA 27.9% 25.0% 90.1% 63.3 % (28.7)% (48.4)% Intuit 114.61 29,417 29,912 605 1,100 18.8 % 4.2 % 6.3 x 5.8 x 17.2 x 15.1 x 30.0 x 25.9 x 7.9% 13.7% 15.7% 84.2 % 36.6 % 21.0 % MY OB 2.65 1,586 1,873 47 334 11.5 % (7.4)% 6.8 x 6.7 x 16.7 x 13.7 x 41.1 x 21.4 x 1.5% 22.2% 92.0% 61.6 % 40.8 % 14.1 % Tangoe 7.88 311 279 37 5 (6.1)% (4.5)% 1.3 x 1.2 x NA 14.7 x NA 24.8 x 4.5% 53.4% NA 54.1 % 5.7 % 2.8 % Xero 12.19 1,662 1,562 101 0 (10.2)% (13.6)% 8.5 x 6.2 x NA NA NA NA 36.7% 78.5% 27.9% 76.1 % (30.2)% (31.6)%

Mean 5,222 5,297 165 240 (0.4)% (2.8)% 6.7 x 5.6 x 18.4 x 14.2 x 30.4 x 25.2 x 16.5% 36.6% 37.0% 67.3 % 3.9 % (7.1)% Median 1,417 1,463 101 66 (6.1)% (4.5)% 6.8 x 6.2 x 17.2 x 14.2 x 30.0 x 25.4 x 7.9% 25.0% 26.9% 63.3 % 5.7 % 2.8 %

49 TRADING & OPERATING METRICS

Human Resources Benefitfocus 29.70 884 899 55 70 (18.4)% (25.6)% 4.0 x 3.4 x NA NA NA NA 17.0% NA 44.9% 47.3 % (3.9)% (12.8)% Callidus 16.80 1,066 880 186 0 (9.5)% (8.4)% 4.5 x 3.8 x 47.4 x 29.7 x 60.0 x 53.8 x 17.8% 59.3% 11.5% 62.5 % 9.4 % 8.1 % Cornerstone 42.31 2,377 2,376 237 236 22.5 % (7.9)% 5.8 x 5.1 x 66.9 x 61.6 x NA NA 14.3% 8.6% NA 68.0 % 8.7 % 1.2 % Freelancer 0.72 333 306 27 0 (44.8)% (37.5)% 7.9 x NA NA NA NA NA NA NA NA 86.3 % (1.5)% (3.4)% Halogen 6.17 133 97 35 0 19.8 % (20.4)% 1.4 x 1.3 x 17.6 x 11.5 x NA 36.3 x 5.3% 52.2% NA 75.8 % 7.8 % 1.6 % Instructure 19.55 552 469 83 0 (6.1)% (22.9)% 4.6 x 3.4 x NA NA NA NA 37.0% 13.7% 13.4% 69.9 % (41.5)% (40.1)% Paycom 45.49 2,734 2,690 74 30 20.9 % (9.3)% 8.8 x 6.8 x 31.9 x 24.8 x 57.6 x 47.0 x 28.9% 28.5% 22.5% 85.7 % 27.5 % 15.1 % Solium 6.28 316 255 61 0 24.5 % 12.4 % 3.4 x 3.0 x 19.8 x 25.1 x 48.4 x NA 11.4% (21.1)% (40.8)% 34.2 % 17.0 % 8.6 % Ultimate Softw are 182.35 5,288 5,188 111 11 (6.7)% (10.8)% 7.0 x 5.7 x 29.7 x 23.5 x 58.8 x 48.8 x 23.6% 26.7% 20.6% 61.7 % 23.5 % 12.6 % Upland 8.95 160 182 17 40 27.0 % 1.6 % 2.5 x 2.3 x 19.5 x 11.5 x NA 20.2 x 6.3% 70.2% NA 62.5 % 12.8 % 4.0 % WageWorks 72.50 2,657 2,069 667 79 59.8 % 19.0 % 6.0 x 4.5 x 19.7 x 15.7 x 53.3 x 45.7 x 32.6% 25.9% 16.5% 65.6 % 30.3 % 14.5 % Workday 66.09 13,284 11,898 1,914 528 (17.1)% (27.9)% 8.2 x 6.3 x 92.5 x 60.7 x NA NA 29.0% 52.2% NA 68.7 % 8.8 % 0.4 % Xactly 11.00 345 317 41 14 29.0 % (25.3)% 3.5 x 3.0 x NA NA NA NA 16.9% (6.9)% (1.2)% 60.2 % (7.8)% (12.5)%

Mean 2,318 2,125 270 77 7.8 % (12.5)% 5.2 x 4.0 x 38.3 x 29.4 x 55.6 x 42.0 x 20.0% 28.1% 10.9% 65.3 % 7.0 % (0.2)% Median 884 880 74 14 19.8 % (10.8)% 4.6 x 3.6 x 29.7 x 24.8 x 57.6 x 46.4 x 17.4% 26.7% 15.0% 65.6 % 8.8 % 1.6 %

Marketing & Advertising Adobe 102.95 51,190 48,330 4,761 1,902 9.6 % (5.2)% 8.3 x 6.9 x 20.9 x 17.5 x 34.1 x 26.9 x 19.4% 19.4% 26.7% 86.0 % 39.5 % 26.0 % Alphabet 792.45 539,070 459,952 83,056 3,938 1.9 % (1.4)% 5.4 x 4.6 x 13.3 x 11.4 x 23.5 x 20.1 x 16.6% 17.1% 17.2% 61.8 % 40.5 % 27.5 % Bazaarvoice 4.85 402 353 86 37 10.7 % (17.9)% 1.7 x 1.7 x NA 22.4 x NA NA 3.0% 26.9% NA 62.4 % 6.2 % 1.2 % Callidus 16.80 1,066 880 186 0 (9.5)% (8.4)% 4.5 x 3.8 x 47.4 x 29.7 x 60.0 x 53.8 x 17.8% 59.3% 11.5% 62.5 % 9.4 % 8.1 % Criteo 41.08 2,619 2,221 407 9 3.7 % 17.0 % 1.4 x 2.5 x 11.3 x 8.4 x 21.3 x 17.9 x (46.0)% 34.2% 19.0% 36.0 % 12.1 % 7.7 % Hubspot 47.00 1,674 1,561 114 1 (16.5)% (18.4)% 6.3 x 4.8 x NA NA NA NA 32.3% NA NA 76.3 % (0.8)% (4.9)% Jive Softw are 4.35 340 240 101 2 6.6 % 2.1 % 1.2 x 1.2 x 17.5 x NA NA 36.3 x 1.7% (49.0)% NA 65.2 % 6.8 % (0.8)% Nasmedia 32.81 287 265 23 0 (22.8)% (15.5)% 5.2 x 4.1 x 20.9 x 15.4 x 27.3 x 21.9 x 24.7% 36.2% 24.6% 100.0 % 24.7 % 19.3 % Salesforce 68.46 46,491 47,806 1,201 2,516 (12.7)% (4.0)% 6.0 x 4.9 x 30.3 x 23.7 x 75.2 x 57.7 x 22.6% 28.0% 30.4% 74.1 % 20.0 % 7.9 % TechTarget 8.53 237 245 42 50 6.2 % 5.8 % 2.2 x 2.2 x 11.4 x 11.7 x 27.5 x 27.1 x 1.8% (2.7)% 1.6% 72.4 % 19.6 % 9.1 % Trade Desk 27.67 1,067 995 124 52 NA (5.3)% 5.7 x 4.4 x 18.2 x 18.6 x NA NA 30.6% (2.3)% 120.7% 80.4 % 31.6 % (20.4)% Yahoo 38.67 36,896 31,578 6,601 1,283 16.3 % (10.3)% 6.3 x 9.3 x 41.4 x 37.0 x 77.3 x 56.2 x (31.7)% 11.8% 37.7% 49.0 % 15.3 % 9.5 % Mean 56,778 49,535 8,059 816 (0.6)% (5.1)% 4.5 x 4.2 x 23.3 x 19.6 x 43.3 x 35.3 x 7.7% 16.2% 32.2% 68.8 % 18.7 % 7.5 % Median 1,370 1,278 155 43 3.7 % (5.2)% 5.3 x 4.3 x 19.5 x 18.1 x 30.8 x 27.1 x 17.2% 19.4% 24.6% 68.8 % 17.5 % 8.0 %

50 TRADING & OPERATING METRICS

Vertical Market ACI Worldw ide 18.15 2,129 2,830 51 752 (15.2)% (6.3)% 2.9 x 2.8 x 14.7 x 10.4 x NA 33.4 x 4.1% 42.1% NA 53.6 % 19.8 % 2.8 % AppFolio 23.85 804 786 18 0 63.4 % 22.7 % 8.0 x 6.1 x NA NA NA NA 31.0% NA 51.6% 56.3 % (0.2)% (9.9)% Athenahealth 105.17 4,150 4,311 130 291 (34.7)% (16.6)% 4.1 x 3.5 x 18.6 x 15.2 x 60.8 x 49.8 x 18.7% 22.7% 22.0% 61.1 % 22.0 % 6.6 % Blackbaud 64.00 2,975 3,334 16 376 (2.8)% (3.5)% 4.7 x 4.3 x 18.7 x 17.9 x 37.4 x 29.9 x 9.6% 4.3% 25.3% 53.2 % 25.2 % 11.4 % Bravura 1.01 215 198 18 0 NA NA 1.4 x NA 8.5 x NA 39.1 x NA NA NA NA 28.5 % 16.5 % 1.3 % Castlight Health 4.95 513 397 116 0 15.9 % 19.0 % 4.3 x 3.3 x NA NA NA NA 27.4% 71.4% 68.0% 61.5 % (44.0)% (47.6)% Descartes 21.31 1,616 1,541 78 3 6.2 % (0.9)% 7.7 x 7.1 x 22.7 x 20.2 x 23.7 x 21.7 x 8.9% 12.6% 9.1% 72.4 % 34.1 % 34.6 % Earthport 0.26 127 107 19 0 (28.1)% 39.0 % 3.5 x 2.8 x NA NA NA NA 25.1% 86.0% 44.1% 67.4 % (37.5)% (29.2)% Ebix 57.05 1,849 2,002 103 255 74.0 % 0.4 % 6.9 x 6.4 x 18.3 x 16.8 x 20.7 x 20.2 x 8.0% 8.7% 2.1% 72.6 % 37.9 % 31.8 % Ellie Mae 83.68 2,809 2,422 388 2 38.9 % (20.5)% 7.4 x 5.9 x 24.0 x 18.2 x 39.1 x 37.4 x 25.7% 32.0% 4.6% 66.5 % 30.6 % 20.7 % Envestnet 35.25 1,518 1,758 51 291 18.1 % (3.3)% 3.2 x 2.7 x 19.2 x 13.8 x 37.1 x 28.6 x 19.4% 38.9% 29.8% 26.9 % 16.9 % 7.3 % FactSet 163.43 6,488 6,659 194 365 0.5 % 0.8 % 5.8 x 5.5 x 16.4 x 15.4 x 23.9 x 21.9 x 6.2% 6.0% 9.2% 56.6 % 35.5 % 24.4 % GrubHub 37.62 3,220 2,923 297 0 55.5 % (12.5)% 6.4 x 4.9 x 22.1 x 16.8 x 49.7 x 34.6 x 29.8% 31.5% 43.8% 57.6 % 29.0 % 14.3 % IDOX 0.80 287 317 5 35 4.8 % (10.4)% 3.4 x 2.8 x 13.2 x 10.3 x 18.5 x 14.8 x 20.2% 28.0% 25.4% 86.8 % 25.7 % 17.1 % Inovalon 10.30 1,514 1,071 713 270 (39.4)% (30.0)% 2.4 x 2.4 x 8.7 x 11.0 x 24.5 x 35.7 x (3.1)% (21.2)% (31.2)% 64.0 % 27.3 % 14.1 % Instructure 19.55 552 469 83 0 (6.1)% (22.9)% 4.6 x 3.4 x NA NA NA NA 37.0% 13.7% 13.4% 69.9 % (41.5)% (40.1)% JUST EA T 7.20 4,888 4,719 170 1 (1.0)% 3.2 % 10.5 x NA 34.7 x NA 65.4 x NA NA NA NA 90.5 % 30.4 % 16.8 % Linx 5.33 883 713 208 37 43.0 % (10.8)% 4.8 x 4.3 x 19.6 x 16.7 x 40.0 x 20.9 x 10.8% 17.4% 91.3% 70.8 % 24.3 % 12.8 % Medidata Solutions 49.67 2,861 2,791 330 260 0.8 % (10.9)% 6.4 x 5.3 x 28.4 x 22.8 x 47.8 x 43.9 x 20.9% 24.5% 8.7% 76.0 % 22.5 % 13.7 % MINDBODY 21.30 863 792 86 16 40.8 % 8.3 % 6.1 x 4.7 x NA NA NA NA 31.0% 127.4% 56.2% 67.7 % (7.5)% (14.7)% Model N 8.85 247 181 66 0 (20.7)% (20.3)% 1.7 x 1.5 x NA NA NA NA 12.6% (13.0)% (15.6)% 49.8 % (11.8)% (16.4)% MY OB 2.65 1,586 1,873 47 334 11.5 % (7.4)% 6.8 x 6.7 x 16.7 x 13.7 x 41.1 x 21.4 x 1.5% 22.2% 92.0% 61.6 % 40.8 % 14.1 % NantHealth 9.94 1,205 1,242 76 113 NA (24.4)% 12.8 x 7.7 x NA NA NA NA 67.4% 77.0% 45.2% 50.0 % (146.1)% (117.4)% NIC 23.90 1,577 1,425 151 0 21.4 % 1.7 % 4.6 x 4.3 x 17.4 x 16.2 x 31.4 x 31.9 x 6.6% 7.7% (1.5)% 41.0 % 26.4 % 16.1 % Playtech 10.20 3,203 3,115 612 524 (16.9)% (13.9)% 4.0 x 3.5 x 10.3 x 8.6 x 20.6 x 12.1 x 14.8% 20.0% 70.6% 100.0 % 38.8 % 20.2 % Q2 Holdings 28.85 1,158 1,066 92 0 9.4 % 0.7 % 7.7 x 5.9 x NA NA NA NA 30.7% 171.9% 58.5% 47.4 % (5.6)% (11.0)% RealPage 30.00 2,414 2,468 69 123 33.6 % 16.7 % 4.6 x 3.9 x 21.0 x 17.1 x 42.3 x 34.7 x 16.4% 22.7% 21.8% 57.1 % 21.8 % 10.1 % Sabre 24.95 6,992 10,115 325 3,448 (10.8)% (11.5)% 3.1 x 2.8 x 9.9 x 8.7 x 18.9 x 16.3 x 8.0% 12.9% 16.1% 33.1 % 31.1 % 11.3 % SS&C 28.60 5,801 8,189 102 2,490 (16.2)% (11.0)% 5.9 x 5.0 x 14.0 x 12.2 x 18.6 x 15.5 x 17.7% 14.7% 19.5% 45.6 % 42.4 % 22.9 % Tabula Rasa 14.98 241 286 2 47 NA 4.6% 3.3 x 2.6 x 28.2 x 16.5 x 21.4 x 34.1 x 2,761.3 % 7,113.1 % (3,736.3)% 29.3 % 11.7 % 7.1 % Takeaw ay 24.81 1,071 1,083 5 17 NA (9.9)% 10.6 x 9.4 x NA NA NA NA 13.3% (18.8)% 91.1% 88.2 % (16.4)% (23.2)% Temenos 69.80 4,559 4,832 116 389 34.5 % 10.6 % 7.9 x 7.3 x 23.0 x 20.2 x 36.0 x 32.3 x 8.3% 13.6% 11.3% 68.6 % 34.4 % 23.1 % TrueCar 12.50 1,068 994 103 29 31.0 % 32.4 % 3.7 x 3.3 x NA NA NA NA 12.6% NA 38.4% 90.7 % 3.5 % (6.0)% Wisetech 4.09 1,187 1,104 88 5 NA (6.5)% 12.6 x 9.7 x 45.2 x 27.7 x 200.3 x 52.3 x 29.9% 63.6% 282.8% 84.5 % 27.9 % 6.3 % Mean 2,134 2,297 145 308 10.7 % (2.8)% 5.7 x 4.7 x 19.7 x 15.7 x 41.7 x 29.2 x 18.7% 33.7% 37.6% 62.0 % 10.8 % 1.3 % Median 1,547 1,483 90 36 6.2 % (6.3)% 4.7 x 4.3 x 18.7 x 16.3 x 37.1 x 30.9 x 17.0% 22.4% 25.3% 61.5 % 23.4 % 10.7 %

Software Conglomerates IBM 165.99 157,832 190,347 9,968 42,483 20.6 % 4.5 % 2.4 x 2.4 x 9.8 x 9.4 x 12.4 x 11.8 x (0.6)% 4.4% 4.4% 48.4 % 24.1 % 16.1 % Microsoft 62.14 483,160 422,303 136,789 75,932 12.0 % 7.9 % 4.9 x 4.5 x 12.0 x 11.5 x 21.8 x 20.9 x 11.1% 5.1% 4.4% 60.9 % 41.0 % 26.6 % Oracle 38.45 157,735 153,856 58,206 54,327 5.3 % (2.1)% 4.1 x 4.0 x 9.2 x 9.1 x 14.7 x 14.5 x 2.8% 1.5% 1.3% 58.5 % 44.9 % 29.6 % SAP 87.25 104,543 107,505 5,185 8,147 8.7 % (4.6)% 4.4 x 4.4 x 12.4 x 12.6 x 20.9 x 20.3 x (0.4)% (1.8)% 2.8% 68.2 % 35.5 % 20.6 % Mean 225,818 218,503 52,537 45,222 11.6 % 1.4 % 4.0 x 3.8 x 10.9 x 10.7 x 17.4 x 16.9 x 3.2% 2.3% 3.2% 59.0 % 36.4 % 23.2 % Median 157,784 172,102 34,087 48,405 10.4 % 1.2 % 4.3 x 4.2 x 10.9 x 10.4 x 17.8 x 17.4 x 1.2% 3.0% 3.6% 59.7 % 38.3 % 23.6 %

51 TECHNOLOGY & TELECOM TEAM TECHNOLOGY & TELECOM TEAM

 Capstone is built from the top and our clients receive hands-on, senior-level attention on every transaction. With a long track record of success, we are dedicated to delivering results that maximize value for our clients.

JOHN FERRARA DAVID MICHAELS JOHN SNEAD Founder & President Partner, Managing Director Partner, Managing Director Head of Investment Banking Head of Technology & Telecom Head of International M&A Technology & Telecom Los Angeles, Boston, New York San Diego & Silicon Valley London

DAVID DESIMONE TEAK MURPHY BRANDON OVERMYER Director Director Vice President Technology & Telecom Technology & Telecom Technology & Telecom

Boston Los Angeles Los Angeles

JAY WONGWATANA-ANAN Analyst Technology & Telecom

Los Angeles