Software Industry Financial Report Contents

The Software Industry Financial Report

Soft ware E quit y G roup, L LLC.L.C. 12220 El Camino Real Suite 320 San Diego, CA 92130 [email protected] (858) 509-2800 SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS

About Software Equity Group Leaders in Software M&A 4 Extensive Global Reach 5 Software Industry Macroeconomics Global GDP 7 U.S. GDP and Unemployment 8 Global IT Spending 9 E-Commerce and Digital Advertising Spend 10 Stock Market Performance 11 Public Software Financial and Valuation Performance The SEG Software Index 13 The SEG Software Index: Financial Performance 14-15 The SEG Software Index: Market Multiples 16-17 The SEG Software Index by Product Category 18 The SEG Software Index by Product Category: Financial Performance 19 The SEG Software Index by Product Category: Market Multiples 20 Public SaaS Company Financial and Valuation Performance The SEG SaaS Index 22 The SEG SaaS Index: Financial Performance 23-24 The SEG SaaS Index: Market Multiples 25-29 The SEG Saa S In dex by Pro duc t Ca tegory 30-31 The SEG SaaS Index by Product Category: Financial Performance 32 The SEG SaaS Index by Product Category: Market Multiples 33 Public Internet Company Financial and Valuation Performance The SEG Internet Index 35 The SEG I nt ernet IdIndex: Financ ia l Per formance 36-37 The SEG Internet Index: Market Multiples 38-39 The SEG Internet Index by Product Category 40 The SEG Internet Index by Product Category: Financial Performance 41 The SEG Internet Index by Product Category: Market Multiples 42

Software Industry M&A Market Update Software/SaaS M&A Deal Volume and Spending 44 Software M&A Exit Multiples 45 Software M&A by Ownership Structure and Size 46 Software M&A by Vertical and Horizontal Markets 47 Software M&A Deal Volume by Product Category 48 Software M&A Exit Valuations by Product Category 49 SaaS M&A Deal Volume and Exit Multiples 50 SaaS M&A by Product Category 51 SaaS M&A 1Q14 Transactions 52-54 Internet M&A: Deal Volume and Exit Multiples 55 Internet M&A: By Product Category 56 Appendix SEG Software Index Key Metrics 58-61 SEG Software Index Key Metrics by Product Category 62-63 SEG SaaS Index Key Metrics 64 SEG SaaS Index Key Metrics by Product Category 65 SEG Internet Index Key Metrics 66-68 SEG Internet Index Key Metrics by Product Category 69 1Q14 Select Public Sellers 70 1Q14 Mega Deals 71 1Q14 Most Active Buyers 72 About Software Equity Group 73

3 LEADERS IN SOFTWARE M&A • Industry leading boutique investment bank, founded in 1992, representing public and private software and We Do Deals. internet companies seeking: • Strategic exit • Growth capital • Buyout • Inorganic growth via acquisition • Buy and sell-side mentoring • Fairness opinions and valuations • Sell-side client revenue range: $5 - 75 million • Buy-side clients include private equity firms and NASDAQ, NYSE and foreign exchange listed companies • Clients span virtually every software technology, product category, delivery model and vertical market • Global presence providing advice and guidance to more than 2 ,000 pri vat e and publi c compan ies throug hou t US, Canada, Europe, Asia-Pacific, Africa and Israel • Strong cross-functional team leveraging transaction, operating, legal and engineering experience • Unparalleled software industry reputation and track record. • Highly referenceable base of past clients

Current Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia

Recent Sell-side Representation

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

SEG Research Distribution

• SEG’s Quarterly and Annual Software Industry Eqyquity Re ports and Monthly Flash Re ports are distributed to an opt-in list of 70,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, pp,ublic accountants, etc. in 76 countries.

6 GLOBAL GDP

Global GDP (% YoY Change) GDP Size

• The latest IMF forecast paints a picture of a steadily improving, but tentative, global economy. • The IMF’s most recent forecast predicted GDP would grow 3.6% in 2014, a modest improvement over 2013’s 3.0% growth rate. In 2015, global GDP is expected to improve further, growing to 3.9%. • According to the IMF, median GDP growth in developed nations is expected to reach 2.3% in 2014, an improvement of 1.0% over 2013. Key growth drivers include more government spending and highly favorable monetary policies. In emerging markets, GDP growth is expected to advance from 4.7% in 2013, to 5.0% in 2014, and 5.3% in 2015. • The IMF acknowledged its forecasts could be imperiled by recent geopolitical events and a growing risk of deflation, particularly in advanced economies.

10% GDP % Growth 8% Unemployment Rate

6% 5.0% 3.7% 4.1% 4.1% 31%3.1% 4% 3.1% 2.6% 2.5% 2.5% 2.6% 2.0% 2.2% 2.0% 1.8% 2% 1.5% 1.7% 1.3% 1.3% 0.4% 0.4% 0%

-0.7% -2% -0.7% -2.7% -4%

-6% -5.4% -6.4% -8% 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14

• According to February’ s Federal Reserve survey of 45 economists, GDP growth in 1Q14 is forecast to be 2.0%. For the year, expectations are the U.S. economy will grow 2.8%, boosted by much stronger growth in the second, third, and fourth quarters. • Over 40% of the economists surveyed by the Fed predicted the U.S. economy will grow 3.0% or greater. Only three months earlier, only 30% of economists were that optimistic. • The Labor Department reported the unemployment rate at the end of 1Q14 was 6.7%, unchanged from 4Q13. The unemployment rate remains at its ltlowest lllevelssince 2008. The lblabor partici pati on rateshdhowed modtdest itimprovement,edidging up slig htly to 63.2% in MhMarch after reaching a 35 year low in December 2013.

Global IT Spending (% YoY Change) Global IT Spending by Category

9.0% 8.0% 6.0% 6.0% 48%4.8%

2.0% 2.0%

2007 2008 2009 2010 2011 2012 2013 2014 (F)

-10. 0%

• On average, analysts were more bullish in their forecasts for Global IT spending in 2014, predicting IT budget increases will more than double each of the prior two years. • The average global IT spending increase, as forecast by the several analysts we track, is 4.8% in 2014. That’s a noteworthy increase from their average estimate of 4.0% made at the end of 2013. • Analysts who raised their earlier forecasts, cited an improving economy and growing demand for mobility, cloud computing solutions and ifinfras truc ture. IDC, however, cut its ftforecast slig htly, from 5.0% to 4.6%,citing spending sldlowdowns inemerging marktketsand dltideceleration in the massive growth of smartphones and tablets. • Forrester forecasts software will account for 26% of all tech spending, leading all other categories. According to Forrester, “Software’s leading position is not a surprise, because it is the focal point for tech innovation today, whether that innovation takes the form of cloud computing and adoption of SaaS, PaaS, smart computing and big data, real-time predictive analytics and smart process apps, or mobile computing and mobile apps and entiterprise app stores.”

Sources: IT spending numbers shown in charts are Q1 2014 Software Industry Financial Report 9 a blended average of Goldman Sachs, IDC, Forrester, Gartner forecasts. IT Spending by Copyright © 2014 by Software Equity Group, LLC Category from Forrester. All Rights Reserved E-COMMERCE AND DIGITAL ADVERTISING SPEND

E-Commerce Spend Digital Advertising Spend

E-Commerce Spend ($B) YoY Percent Change $14 Digital Advertising Spend ($B) YoY Percent Change 30% $70 20% $12 25% $60 ) BB 15% 20% $10 $50 15% 10% $8 $40 10% $6 rce Spending($B) $30 Change YoY oY Change 5% vertising Revenue($ 5% ee dd YY $4 $20 0%

0% A Digital E-Comm $10 $2 -5%

$0 -5% $0 -10%

• E-commerce retail sales in the U.S. totaled $63.6 billion in 4Q13 (the latest data available), up 13% YoY. The increase marks the seventeenth consecutive quarter of YoY growth, and the thirteenth consecutive quarter of double digit growth. • The Q4 total for E-Commerce spending accounted for 13% of all discretionary retail dollars spent. • Mobile commerce accounted for $6.6B, or 10.5% of the 2013 E-Commerce total, according to comScore. In addition, YoY growth in mobile commerce grew 23% in 2013. • Internet ad revenues surged in 4Q13 (the latest data available) to $12.1 billion, up 17% YoY. For the year, 2013 ad revenues soared to $42.8 billion, a landmark high, and the first time Internet advertising surpassed broadcast television in total ad spend. • According to eMarketer, mobile ad spending was $18.0 billion in 2013, with Facebook and Google grabbing the majority of mobile ad market growth. Facebook’s advance was especially noteworthy. In 2012, the company accounted for just 5.4% of global ad spending, but its share rocketed to 17.5% in 2013.

DOW S&P NASDAQ SEG SW Index SEG SaaS SEG Internet Index 12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

(2.0%)

(4.0%)

(6.0%)

(8. 0%)

(10.0%) Jan 2014 Feb 2014 Mar 2014

• After a five year run up that included stellar returns in 2013, the bull market is showing signs of fatigue. After a very slow start in January, 1Q14 stock market performance across all exchanges and indices was choppy for the remainder of the quarter. • Q1’s bumpy ride for investors was largely attributable to the Fed’s announced plans for quantitative easing, skyrocketing market multiples, and geopolitical unrest, particularly in Ukraine. • The S&P posted the best return of the three major stock indices in 1Q14, finishing up 1.3%. The Nasdaq finished close behind, up 0.5%. Surprisingly, in an environment where investors flocked to value stocks, the DOW performed the worst of the three major U.S. stock market indices, closing 1Q14 down 0.72%. • The most dramatic swing in median stock returns in the first quarter was exhibited in the SEG SaaS Index. In early March, the index peaked with a 9.2% return, only to plunge dramatically the rest of the month, closing 1Q14 down 4.6%. In addition to macro economic concerns, many expressed concerns that SaaS valuations had become too rich. More on the impact to median EV/Revenue multiples later in the report. • The SEG Software Index, consisting largely of large, mature, and profitable companies held its own in a tough stock market environment, finishing the quarter flat. 11 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX PUBLIC SOFTWARE COMPANY FINANCIAL AND VALUATION PERFORMANCE

12 THE SEG SOFTWARE INDEX

SEG - Software: Median Metrics Measure 1Q13 2Q13 3Q13 4Q13 1Q14 • The SEG S oft ware I nd ex t rack s publi c EV/Revenue 2.9x 2.8x 3.0x 3.2x 3.2x software companies which primarily offer EV/EBITDA 12.4x 12.0x 13.8x 14.6x 15.0x EV/Earnings 23.7x 23.2x 25.9x 26.3x 27.0x on-premise software under a perpetual Gross Profit Margin 66.7% 67.7% 67.9% 68.2% 67.6% EBITDA Margin 18. 6% 18. 6% 18. 6% 18. 1% 18. 5% license with annual M&S. Net Income Margin 9.0% 9.2% 8.6% 8.6% 9.1% TTM Revenue Growth 12.8% 10.9% 9.9% 9.2% 8.7% • The SEG Software Index is currently TTM Total Revenue ($M) $452.9 $466.8 $479.0 $499.4 $509.0 TTM EBITDA Growth 7.6% 5.6% 6.2% 5.8% 6.1% comprised of 152 public software TTM Total EBITDA ($M) $77.7 $81.9 $91.1 $93.4 $91.8 companies* . Cash & Eq ($M) $153.9 $169.6 $161.0 $186.6 $191.6 Current Ratio 1.9 1.9 2.0 2.0 2.1 Debt / Equity Ratio 27.3% 27.0% 24.8% 25.6% 33.4%

* A number of on-premise software companies are transitioning to subscription based delivery and pricing models; however their SaaS revenue contribution is insufficient for them to be deemed primarily SaaS. ** See appendix for a complete list of companies in The SEG Software Index and detailed financial and trading metrics 13 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution – 1Q14

TTM Total Revenue ($M) TTM Revenue Growth

$600 14%

29% $500 12% 25% 10% $400 20% 8% l Revenue nue Growth $300 mpanies aa ee oo

6% C 11% of $200 10% 4% % TTM Tot

TTM Rev 5% $100 2%

$0 0% 1Q13 2Q13 3Q13 4Q13 1Q14 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • On a quarterly basis, median TTM revenue growth in 1Q14 declined for the TTM Revenue Growth sixth consecutive quarter, to 8.7%. • DitDespite the tidtepid growth rate, themedian TTM revenue of the SEG Software Index reached $509M, the highest in history, and the highest among our three tracking indices. • More than half of public on-premise software companies reported TTM revenue growth rates of 10% or below in 1Q14. • Of the 15% of on-premise software providers with TTM revenue growth rates of 30% or more, most were focused on three of the hottest product categories, mobility (NQ Mobile – 114%), security (Palo Alto Networks – 49.2%), and Big Data (Splunk – 52.1%). • Forecasts for moderately increased IT spending portend well for these on pperemi se pporovi desders.We ex pect media n TTM reeeuevenue ggorow th to steadily, albeit modestly, improve for the balance of 2014. 14 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE

Median EBITDA Margin Performance - Quarterly TTM EBITDA Margin Distribution – 1Q14

18.6% 18.6% 18.6% 18.1% 18.5% 29%

24%

17% 14% mpanies DA Margin DA oo TT 12% C

of EBI

% 5%

1Q13 2Q13 3Q13 4Q13 1Q14 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • The median EBITDA margin of public on-premise software companies TTM EBITDA Margin remained relatively steady over the past five quarters, closing 1Q14 at 18.5%. • Only 5% of on-premise software companies achieved EBITDA margins of 40%+. • Check Point Software, a security provider, led the pack with an EBITDA margin of 55.4%. Check Point’s extraordinary profitability can be attributed to a strong, well-ppgerforming channel that reduces Check Point’s cost of sales. Curiously, for a company in the rapidly evolving security space, Check Point also spends much less on R&D (8% of total revenue) vs. their industry peers (15% of total revenue). • We anticipate EBITDA margins will experience modest decline in 2014, as on-premise providers increase spending on sales and marketing and itinvest more in R&D toupdtdate legacy prodtductsand expand the ir SSSaaS offerings. 15 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX: MARKET MULTIPLES

Median EV/Revenue and EV/EBITDA Multiples - Quarterly EV/Revenue Multiples by Size (TTM Revenue) - Quarterly

EV/Revenue EV/EBITDA Revenue Greater Than $1 billion Revenue Between $500 million and $1 billion Revenue Between $100 million and $500 million Revenue Less Than $100 million 14.6x 15.0x 4.0x 13.8x 3.5x 12.4x 12.0x 3.0x

2.5x /Revenue

VV 20x2.0x

1.5x

2.9x 2.8x 3.0x 3.2x 3.2x 1.0x Median E Median 0.5x

00x0.0x 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14

• The median EV/Revenue multiple for on-premise software providers • Investors continued to be comforted by size. The EV/Revenue was 3.2x in 1Q14, up 10% YoY. multiples of on-premise software companies with revenues <$100 million remained markedly lower than their larger counterparts. • Despite their unimpressive financial performance, public on-premise software providers closed 1Q14 with trading multiples at or near their • SEG Software Index companies with TTM revenue between seven year peak. $100M and $1B successfully balanced TTM revenue growth (median 16.0%) and profitability (median EBITDA of 15.3%), and • The higher median EV/Revenue valuations are a reflection of were rewarded with the highest median EV/Revenue multiples. investor’s enthusiasm for technology stocks, which is likely to wane over time, unless revenue growth improves and recurring revenue from subscriptions accelerates. • The 3.2x median EV/Revenue multiple in 1Q14 marks only the third time since 1Q06 that EV/Revenue multiples surpassed 3.0x. • 1Q14’s median EV/EBITDA multiple of 15.0x was the highest of any quarter since 4Q07. 16 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX: MARKET MULTIPLES

EV/Revenue Multiples vs. TTM Revenue Growth – 1Q14 EV/Revenue Multiples vs. TTM EBITDA Margins – 1Q14

10.9x 777.7x V/Revenue V/Revenue 5.1x 36x3.6x EE EE 48x4.8x 35x3.5x 3.0x 3.5x 3.1x 2.5x 2.4x Median Median Median Median 2.1x

<= 0% > 0% > 10% > 20% > 30% > 40% <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% <= 10% <= 20% <= 30% <= 40% TTM Revenue Growth TTM EBITDA Margin

• The correlation between the public market EV/Revenue multiples • Inadeparture from the past several yy,ears, the market multiples of and TTM revenue growth rates in 1Q14 was the highest since the on-premise software providers in 1Q14 correlated poorly with their recovery began in 2009. profitability. • On-premise software providers with TTM revenue growth rates of • In 1Q14, on-premise software companies with no profits achieved 10%+ were rewarded with median EV/Revenue multiples well above a median EV/Revenue multiple of 3.6x, higher than their peers with the median. On-premise software providers achieving 40%+ EBITDA margins of break even to 40%. revenue growth rates boasted a median 10.9x EV/Revenue multiple, • Investors in 1Q14 did take special note of on-premise providers 240% higher than the index median. with EBITDA margins greater than 40%, conferring a median • Members of Q1’s 40%+ growth club mostly came from the highest EV/Revenue multiple of 7.7x, or 140% higher than the index growth sectors of the software ecosystem – business intelligence median. Select companies included: Verisk (46.1% EBITDA and security. Select companies included: Tableau Software (82.0% margin, 7.7x EV/Revenue multiple); Ansys (46.8%, 7.4x); TTM Rev enu e Grow th, 19.8x EV/Rev enu e); Palo Alto Netw orks Chec kpo in t SftSoftware (55.4%, 8.5x);and SlSolar Wind s (41.7%, (49.2%, 9.6x); and Splunk (52.1%, 24.9x). 9.1x). 17 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY

• The SEG Software Index is segmented into 17 product categories. • See Appendix for the complete list of companies within each product category.

SEG Software Index

EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin Category 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14

Billing & Service Management 2.4x 2.3x 3.1x 3.5x 2.7x 9.3x 8.3x 9.9x 9.0x 9.3x 6.9% 2.2% 17.7% 4.4% 3.6% 22.2% 18.8% 18.7% 18.6% 18.5% Business Intelligence 3.5x 3.0x 3.3x 3.1x 3.1x 16.0x 16.5x 17.2x 18.4x 17.3x 12.8% 13.1% 14.2% 9.7% 10.2% 10.8% 12.2% 12.6% 11.5% 10.2%

Development Platforms 2.5x 2.6x 2.6x 2.7x 2.7x 9.6x 10.2x 14.4x 11.9x 11.1x 3.0% 0.6% -0.3% 0.1% -0.3% 23.9% 20.3% 20.0% 20.0% 19.6%

Engineering & PLM 2.7x 2.7x 2.8x 2.9x 3.3x 14.8x 14.2x 14.6x 14.2x 14.9x 13.1% 11.7% 8.4% 4.4% 6.2% 20.7% 19.8% 19.9% 20.1% 20.7%

Enterprise Resource Planning 2.9x 3.0x 3.0x 2.9x 3.7x 10.1x 11.4x 12.1x 12.4x 12.7x 2.0% 0.2% 1.6% 2.7% 2.7% 28.5% 28.5% 28.7% 29.0% 29.0% Financial & Accounting 3.1x 3.3x 3.3x 3.7x 3.7x 10.8x 11.1x 12.2x 13.5x 15.8x 8.6% 6.4% 9.5% 10.7% 8.5% 27.5% 26.6% 26.1% 26.7% 25.9% Gaming 1.1x 1.3x 1.6x 1.6x 1.7x 7.1x 10.0x 12.1x 14.2x 11.3x 7.4% 15.1% 15.2% 10.7% 3.9% 14.9% 14.8% 14.0% 13.4% 19.0% Healthcare 2.0x 2.1x 2.4x 2.5x 2.4x 12.5x 12.0x 13.1x 14.4x 15.0x 8.8% 7.6% 7.5% 3.1% 3.0% 18.4% 18.0% 17.9% 16.9% 15.2%

IT Conglomerates Conglomerates 25x2.5x 29x2.9x 27x2.7x 30x3.0x 30x3.0x 93x9.3x 90x9.0x 84x8.4x 85x8.5x 90x9.0x 05%0.5% 02%0.2% 12%1.2% 09%0.9% 20%2.0% 32.1% 1% 33.8% 8% 34.3% 3% 35.0% 0% 34.2% 2% Mobile Solutions/Content 3.0x 2.8x 3.4x 3.4x 3.6x 18.4x 13.2x 13.6x 19.7x 30.7x 47.2% 26.4% 20.3% 23.7% 24.9% 7.3% 10.2% 8.5% 8.4% 7.2% Networking & Network Performance 2.8x 2.7x 2.8x 2.8x 3.3x 16.6x 17.0x 17.0x 14.9x 16.8x 20.3% 12.9% 7.2% 6.1% 7.2% 12.6% 12.7% 12.7% 7.9% 7.5% Management Security 3.3x 3.6x 4.0x 3.5x 5.0x 11.6x 10.8x 13.0x 13.7x 12.7x 23.8% 21.8% 21.2% 18.3% 15.3% 11.5% 11.5% 11.1% 0.5% -3.0% Storage, Data Management & 2.4x 2.4x 2.7x 3.0x 3.0x 9.3x 9.0x 8.9x 8.6x 9.0x 4.8% 4.1% 3.3% 4.4% 2.0% 21.8% 21.9% 22.2% 23.3% 24.2% Integration

Supply Chain Management & 3.8x 4.1x 4.5x 5.2x 5.8x 14.7x 15.6x 17.3x 19.4x 21.5x 12.8% 10.7% 13.6% 14.2% 14.7% 19.3% 19.1% 21.4% 24.1% 26.8% Logistics Systems Management 5.6x 5.0x 5.4x 4.4x 5.0x 23.1x 20.9x 19.7x 16.5x 18.9x 17.2% 16.1% 16.4% 15.3% 13.0% 24.3% 23.8% 24.2% 24.2% 25.8% Vertical - Finance 3.4x 3.8x 3.7x 4.7x 4.5x 10.7x 11.4x 12.6x 12.8x 13.4x 6.7% 7.6% 7.4% 8.1% 8.2% 25.9% 26.3% 26.0% 26.1% 27.0% Vertical - Other 3.1x 3.4x 3.7x 3.6x 3.2x 21.2x 24.6x 26.0x 30.2x 16.2x 20.6% 21.7% 22.3% 24.6% 21.2% 13.9% 13.5% 13.3% 12.3% 14.6%

Median 2.9x 2.8x 3.0x 3.2x 3.2x 12.4x 12.0x 13.8x 14.6x 15.0x 12.8% 10.9% 9.9% 9.2% 8.7% 18.6% 18.6% 18.6% 18.1% 18.5%

18 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 1Q14 Median TTM Revenue Growth 1Q14 Median YoY Change in Revenue Growth

Billing & Service Management 3.6% Billing & Service Management (47.6%) Business Intelligence 10.2% Business Intelligence (20.2%) Development Platforms (0.5%) Development Platforms (131%) Engineering & PLM 6.2% Engineering & PLM (52.6%) Enterprise Resource Planning 27%2.7% Enterprise Resource Planning 34. 8% Financial & Accounting 8.5% Financial & Accounting (0.3%) Gaming 3.9% Gaming (47.1%) Healthcare 3.0% Healthcare (65.3%) IT Conglomerates 2.0% IT Conglomerates 343.5% Mobile Solutions/Content 24.9% Mobile Solutions/Content (47.3%) Networking & Network Performance… 7.2% Networking & Network Performance … (64.6%) Security 15.3% Security (35.6%) Storage, Data Management & Integration 2.0% Storage, Data Management & Integration (57.7%) Supply Chain Management & Logistics 14.7% Supply Chain Management & Logistics 15.0% Systems Management 13.0% Systems Management (24.8%) Vertical - Finance 8.2% Vertical - Finance 21.8% Vertical - Other 21.2% Vertical - Other 2.6%

1Q14 Median TTM EBITDA Margin 1Q14 Median YoY Change EBITDA Margin

Billing & Service Management (16.4%) Billing & Service Management 18.5% Business Intelligence (5.9%) Business Intelligence 10.2% Development Platforms (18.1%) Development Platforms 19.6% Engineering & PLM 001%.1% Engineering & PLM 20.7% Enterprise Resource Planning 1.9% Enterprise Resource Planning 29.0% Financial & Accounting (5.9%) Financial & Accounting 25.9% Gaming 27.5% Gaming 19.0% Healthcare (17.8%) Healthcare 15.2% IT Conglomerates 6.7% IT Conglomerates 34.2% Mobile Solutions/Content (()2.1%) Mo bile So lu tions /Con ten t 72%7.2% Networking & Network Performance… (40.2%) Networking & Network Performance… 7.5% Security Security (3.0%) Storage, Data Management & Integration 11.0% Storage, Data Management & Integration 24.2% Supply Chain Management & Logistics 38.4% Supply Chain Management & Logistics 26.8% Systems Management 6.1% Systems Management 25.8% Vertical - Finance 4.3% Vertical - Finance 27. 0% Vertical - Other 5.1% Vertical - Other 14.6% 19 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY: MARKET MULTIPLES 1Q14 Median EV/Revenue Multiples Median 1Q14 YoY Change in EV/Revenue Multiples

Billing & Service Management 2.7x Billing & Service Management 10.1% Business Intelligence 3.1x Business Intelligence(9.1%) Development Platforms 2.7x Development Platforms 7.3% Engineering & PLM 3.3x Engineering & PLM 21.6% Enterprise Resource Planning 3.7x Enterprise Resource Planning 28.4% Financial & Accounting 3.7x Financial & Accounting 17.0% Gaming 1.7x Gaming 52.3% Healthcare 2.4x Healthcare 20.5% IT Conglomerates 3.0x IT Conglomerates 22.6% Mobile Solutions/Content 3.6x Mobil e S ol u tions /Con ten t 18. 6% Networking & Network Performance… 3.3x Networking & Network Performance… 15.8% Security 5.0x Security 51.2% Storage, Data Management & Integration 3.0x Storage, Data Management & Integration 23.5% Supply Chain Management & Logistics 5.8x Supply Chain Management & Logistics 52.0% Systems Management 50x5.0x Systems Management(10. 6%) Vertical - Finance 4.5x Vertical - Finance 29.6% Vertical - Other 3.2x Vertical - Other 3.0%

• In 1Q14, nine product categories achieved median EV/Revenue multiples above the SEG Software Index median of 3.2x, led by Supply Chain Mgmt (5.8x), StSystems MtManagement (5.0x) and SitSecurity (5.0x). • The Supply Chain Management product category is attracting renewed investor interest as manufacturers, distributors and large ecommerce retailers seek to address shrinking margins, operational inefficiencies and demanding customers with a new wave of IT solutions. • The Systems Management and Security categories are benefitting from the rapid shift to cloud and mobile computing, which require new approaches to scaling, managing and securing these new environments. • The Gaming category closed 1Q14 with a median EV/Revenue multiple of 1.7x, the lowest of our 17 product categories, despite its 52% YoY median EV/Revenue growth. Expect gaming multiples to grow further, as gaming providers - caught flat footed by the explosion of mobile and Internet gaming - reposition with online and mobile games suitable for a multi-device world. • TTM revenue growth rates slowed in 12 of 17 product categories saw in 1Q14. The five categories that proved to be the exceptions with higher YoY growth rates included: ERP, IT Conglomerates, Supply Chain, Vertical – Finance (i.e. software providers providing solutions to the financial services industry exclusively) and Vertical – Other (i.e. software providers focused on a vertical). 20 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX PUBLIC SaaS COMPANY FINANCIAL AND VALUATION PERFORMANCE

21 THE SEG SaaS INDEX

SEG - SaaS: Median Metrics Measure 1Q13 2Q13 3Q13 4Q13 1Q14 • The SEG S aaS I nd ex t rack s publi c EV/Revenue 5.4x 5.7x 6.6x 7.6x 8.0x EV/EBITDA 33.6x 30.2x 39.9x 46.8x 55.7x companies which primarily offer hosted, EV/Earnings 84.8x 112.3x 136.1x 81.9x 134.9x on-demand software under a subscription Gross Profit Margin 69.2% 68.6% 67.7% 67.7% 68.5% EBITDA Marg in 04%0.4% 05%0.5% -06%0.6% -12%1.2% -15%1.5% and/or transaction based pricing model. Net Income Margin -6.5% -8.6% -9.2% -9.3% -9.3% TTM Revenue Growth 33.0% 31.4% 32.1% 28.5% 28.2% • The SEG SaaS Index is currently TTM Total Revenue ($M) $112.0 $119.3 $126.5 $137.5 $153.1 TTM EBITDA Growth 17.2% 13.1% 15.0% 17.4% 5.4% comprised of 49 public pure-play SaaS TTM Total EBITDA ($M) $1.1 -$0.2 -$1.8 -$2.6 -$2.7 companies*. Cash & Eq ($M) $55.2 $59.9 $73.0 $82.7 $90.2 Current Ratio 1.7 1.4 1.7 2.2 2.2 Debt / Equity Ratio 7.0% 7.1% 10.3% 12.4% 23.7%

* See appendix for a complete list of companies in the SEG SaaS Index 22 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX: FINANCIAL PERFORMANCE

Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution – 1Q14

TTM Total Revenue ($M) TTM Revenue Growth

$180 34.0% 28% $160 33.0% $140 32.0% $120 31.0% 19% 19% 17% $100 30.0% l Revenue mpanies nue Growth nue aa $80 29. 0% oo $60 28.0% 9%

% of C 6%

TTM Tot $40 27.0% TTM Reve $20 26.0% 2% $0 25. 0% 1Q13 2Q13 3Q13 4Q13 1Q14 <= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 10% <= 20% <= 30% <= 40% <= 50% TTM Revenue Growth • The median TTM revenue growth rate for Public SaaS companies in 1Q14 was 28.2%, down from 33.0% in 1Q13. We expect improvement in 2014, thanks to accelerating enterprise adoption of SaaS solutions, suites and pp,latforms, and increased adoption of SaaS among the SMB segment. • The median TTM revenue of public SaaS companies was $153.3M in 1Q14, a significant increase from just four years ago, when the median was $114.6M. Despite their increased size, TTM revenue growth rates remained in the mid-twenties or higher. • From the standpoint of size, Salesforce continued to dominate the SaaS Sector 1Q14 with TTM revenue of $4.1B, nearly 7x greater than the next largest Public SaaS company. However, a good number of public SaaS Companies reached critical mass (>$350 million) from a revenue standpoint in 1Q14, a feat made more difficult by a revenue model that typically requires deferring alarge ppgercentageof the revenue booking. These $350M+ SaaS providers can now be counted among a wide variety of product categories and industry sectors. Examples include Concur (expense management product category, $586M TTM revenue); Athenahealth (healthcare, $595M); DealerTrack (automotive, $482M); Workday (HCM/Financial, $469M); NetSuite (ERP, $415M); Service-Now (IT automation, $425M); and RealPage (real estate, $377M). • Medians alone do not capture the standout performances of the most successful SaaS companies. Nearly one in five public SaaS companies grew TTM revenue growth by 50% or more. As yet further testament to the widespread adoption of SaaS, these outperformers come from a variety of catitegories ildiincluding HCM, SitSecurity, MktiMarketing, and CttiConstruction. SlSelec tcompanies ildinclude: WkdWorkday (71.4%); FireE ye (94.0%); MktMarketo (64.0%); Cornerstone OnDemand (57.0%); and Textura (70.1%). 23 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX: FINANCIAL PERFORMANCE

Median EBITDA Margin Performance - Quarterly TTM EBITDA Margin Distribution – 1Q14

0.5% 54% 0.4%

1Q13 2Q13 3Q13 4Q13 1Q14 Margin mpanies AA 21% 15% % of Co EBITD -0.6%

6% 4% -1.2% -15%1.5% <= 0% > 0% > 10% > 20% > 30% • After peaking in 2010, the median EBITDA margin of public SaaS <= 10% <= 20% <= 30% companies has steadily declined, closing 1Q14 at -1.5%. TTM EBITDA Margin • Over half (54%) of public SaaS companies are unprofitable, and roughly nine out of ten have EBITDA margins below the 20% median of their on-premise software peers. • And for the time being, that’s just what investors expect if the strong correlation between their EV/Revenue multiples and TTM revenue growth rates (see slide 26) is any indication. • Investors should be circumspect about the GAAP P&L statements of many public SaaS companies which seem to imply they’re suffering significant losses and hemorrhaging cash. In truth, many are not only cash flow positive, but flush with revenue from prepaid subscription fees. But since GAAP requires deferred recognition of most of this revenue, many SaaS providers reported negative operating margins. As example, in its most recent earnings report, Workday reported $56M in net income, yet generated $35M of cash from operations. 24 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX: MARKET MULTIPLES

Median EV/Revenue and EV/EBITDA Multiples - Quarterly EV/Revenue Multiple Distribution – 1Q14

EV/Revenue EV/EBITDA

55.7x

46.8x 49% 39.9x 33.6x 30.2x mpanies oo

% of C 12% 12% 9% 6.6x 7.6x 8.0x 7% 5.4x 5.7x 5% 2% 2% 2% 0%

1Q13 2Q13 3Q13 4Q13 1Q14 <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x > 9.0x <= 2.0x<= 3.0x<= 4.0x<= 5.0x<= 6.0x<= 7.0x<= 8.0x<= 9.0x EV/Revenue

• At the close of 1Q14, the median EV/Revenue multiple for public SaaS companies was 8.0x, up 48% YoY. Although the 48% YoY multiple increase was the hig hes t on record, we expect the dlidecline in the SSSaaS median TTM revenue growth rate portdtendsacorrection tomorerationa l marktket multiples later this year. • Public SaaS companies continued to trade at a significant premiums to their on-premise peers (8.0x vs. 3.2x). While public SaaS companies have historically enjoyed trading multiples twice that of their on-premise peers, 1Q14’s differential was exceptional. • A premium multiple can be largely justified by comparing the relative lifetime value of a SaaS customer vs. an on-premise licensee. A SaaS company’s strong customer retention and gross margins will garner significantly greater cash over time from its average customer than will its on- premise counterpart. On the expense side of the equation, the jury is still out as to whether SaaS companies can achieve levels of profitability on par with their on-premise counterparts, once SaaS demand tapers and current levels of sales & marketing spending become unsustainable. • In the meantime, investors are placing their bets on the next wave of SaaS category leaders who are positioned to displace incumbent on-premise providers across multiple product categories - just as Salesforce did to Siebel in the CRM category. A whopping 49% of the companies in the SEG SSSaaS IdIndex achieve d amedian EV/Revenue multip leof 9xor hig her in 1Q14.

EV/Revenue Multiples vs. TTM Revenue Growth Rates – 1Q14 EV/Revenue Multiples vs. TTM EBITDA Margins – 1Q14

9.6x 19.1x

7.2x 6.3x 6.3x V/Revenue V/Revenue EE EE 9.2x 4.3x 7.0x 5.4x

Median 4.7x Median Median 2.5x 0.0x

<= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 0% > 0% > 10% > 20% > 30% <= 10% <= 20% <= 30% <= 40% <= 50% <= 10% <= 20% <= 30% TTM Revenue Growth TTM EBITDA Margin

• In 1Q14, profitable SaaS companies continued to be penalized with lower market multiples, as investors deemed profitability to be an unacceptable tradeoff for accelerated growth. • As proof, note the very strong correlation between the median TTM revenue growth rate and median market multiple of public SaaS companies. Public SaaS companies that grew TTM revenue in excess of 50% were rewarded with an eye-popping median EV/Revenue multiple of 19.1x in 1Q14. • Conversely, there was an inverse correlation between EBITDA margins and median EV/Revenue multiples. Unprofitable public SaaS companies boasted a rather remarkable median EV/Revenue multiple of 9.6x in 1Q14, while those with EBITDA margins above 30% had a far more modest median market multiple in 1Q14 of 4.3x EV/Revenue.

TTM TTM Revenue EV/ TTM EBITDA EV/ Company Ticker EV (Median) Revenue Growth Revenue EBITDA Margin EBITDA Castlight Health, Inc. CSLT $2,386 $13 212% 183.9x -$62 -475.6% - FireEye, Inc. FEYE $8,974 $162 94% 55.6x -$143 -88.4% - Workday, Inc. WDAY $15,928 $469 71% 34.0x -$119 -25.3% - Demandware, Inc. DWRE $2,247 $104 31% 21.7x -$16 -15.6% - Service-now.com NOW $8,644 $425 74% 20.4x -$43 -10.1% - Netsuite N $7,723 $415 34% 18.6x -$37 -8.9% - VStIVeeva Systems Inc. VEEV $3,754 $210 62% 17.9 x $41 19.4% 92.3 x Cornerstone OnDemand CSOD $2,892 $185 57% 15.6x -$30 -16.1% - Marketo MKTO $1,457 $96 64% 15.2x -$41 -42.4% - • When the SEG SaaS Index is segmented by Textura Corp. TXTR $610 $41 70% 15.0x -$33 -81.5% - relative EV/Revenue multiples, the top 25% of Benefitfocus, Inc. BNFT $1,507 $105 28% 14.4x -$23 -21.7% - ChannelAdvisors ECOM $913 $68 27% 13.4x -$11 -15.8% - public SaaS companies had a median OPOWER, Inc. OPWR n/a $89 71% 13.2x -$12 -13.1% - EV/Revenue of 16.8x in 1Q14. Paylocity Holding Corp. PCTY $1,175 $91 - 13.0x $2 2.2% 602.0x Top 25% Cvent NYSE:CV $1,374 $111 33% 12.4x $2 19%1.9% 663.9x Medidata Solutions MDSO $3,156 $277 27% 11.4x $32 11.5% 99.0x • These SaaS high flyers are market leaders in a Athenahealth, Inc ATHN $6,322 $595 41% 10.6x $55 9.2% 115.3x The Ultimate Software Group, ULTI $4,298 $410 24% 10.5x $59 14.3% 73.1x wide array of SaaS categories including security Concur CNQR $6,091 $586 27% 10.4x $37 6.2% 166.9x (FireEye); HCM/Finance (Workday); ERP E2open, Inc EOPN $682 $69 -7% 9.8x -$18 -25.4% - Salesforce.com CRM $38,016 $4,071 33% 9.3x -$61 -1.5% - (NetSuite); eCommerce (Demandware); and OpenTable, Inc. OPEN $1,743 $190 18% 9.2x $58 30.6% 30.0x Marketing (Marketo). SPS Commerce SPSC $936 $104 35% 90x9.0x $10 94%9.4% 95.3x Q2 Holdings, Inc. QTWO $479 $57 38% 8.4x -$13 -22.9% - RingCentral, Inc. RNG $1,213 $161 40% 7.6x -$32 -20.0% - • The median TTM revenue growth rate of those in Fleetmatics FLTX $1,299 $177 39% 7.3x $45 25.3% 29.0x Amber Road, Inc. AMBR $380 $53 21% 7.2x -$12 -22.3% - the Top 25% percentile was 64.2%. All but two Qualys, Inc. QLYS $778 $108 18% 7.2x $12 11.0% 65.3x companies (Paylocity and Veeva) in the top 25% SciQuest SQI $650 $90 36% 7.2x $0 -0.2% - 2U, Inc. TWOU $534 $83 49% 6.4x -$27 -32.8% - had negative EBITDA margins as of 1Q14. Ellie Mae ELLI $689 $128 26% 5.4x $25 19.5% 27.5x Zix Corporation ZIXI $252 $48 11% 5.2x $11 22.4% 23.3x • In contrast, public SaaS companies comprising Callidus Software Inc. CALD $584 $112 18% 5.2x -$5 -4.0% - DealerTrack TRAK $2,166 $482 24% 4.5x $58 12.0% 37.4x the bottom 25% of EV/Revenue multiples posted Halogen Software, Inc. TSX:HGN $212 $48 26% 4.4x -$4 -7.4% - Bottom 25% a median EV/Revenue of only 3.5x. For this J2 Global JCOM $2,255 $521 40% 4.3x $215 41.3% 10.5x Five9, Inc. FIVN n/a $84 32% 4.2x -$23 -27.8% - group, the median TTM revenue growth rate was RealPage RP $1,571 $377 17% 4.2x $54 14.4% 29.0x 17.9%, and all but four were profitable. LivePerson LPSN $633 $178 13% 3.6x $6 3.5% 101.2x Tangoe TNGO $670 $189 22% 3.5x $16 8.7% 40.8x inContact, Inc. SAAS $460 $130 18% 3.5x -$2 -1.4% - Jive Software, Inc JIVE $515 $146 28% 3.5x -$61 -41.7% - Marin Software MRIN $239 $77 30% 3.1x -$30 -38.3% - Ebix Inc. EBIX $590 $205 3% 2.9x $76 37.1% 7.8x Bazaarvoice, Inc BV $482 $181 22% 2.7x -$31 -16.8% - Constant Contact CTCT $735 $285 13% 2.6x $27 9.4% 27.5x IntraLinks Holdings IL $596 $234 8% 2.5x $13 5.5% 46.1x Vocus VOCS $313 $187 9% 1.7x $0 0.1% 1582.5x

Daily EV/Revenue Multiples for 1Q14

Start of 1Q14 7.4x EV/Rev Up 17.7% Down 17.1% 8.7x EV/Rev 7.2x EV/Rev

End of 1Q14

• While Q1’s median market multiple for public SaaS companies was impressive, trading multiples throughout the quarter were especially volatile. • During the first two months of the quarter, public SaaS EV/Revenue multiples jumped 17.7%, reaching a peak at the end of February. • During the run-up, fears of another tech bubble gained momentum, and investors scurried during the quarter’s closing month. • Consequently, public SaaS EV/Revenue multiples plunged 17. 1% in March, giving up all gains from the prior two months, as investors flocked to less risky value stocks. 28 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX: MARKET MULTIPLES

EV/Revenue Multiples Since 2004

7.3x EV/Revenue 2.1x EV/Revenue Multiple, 1Q14 Multiple, 4Q08

• However, the March decline in median market multiples of public SaaS companies should be viewed from a broader historical perspective. • Since November 2008, the median EV/Revenue multiple for public SaaS companies has expanded by 248%.

• The SEG SaaS Index is currently comprised of 49 publicly listed SaaS companies. Four distinct SaaS product categories had a sufficient number for us to analyze trends and compare results. • Representative companies for each SaaS categories are referenced below. The complete list of companies, as well as detailed financial data about each, can be found in the Appendix.

CRMCRM & Marketing& Marketing ERPERP & & Supply Supply ChainChain VerticallyVertically FocusedFocused WorkforceWorkforce Management Management

• In addition to these four SaaS product categories, there are a number of emerging SaaS product categories that currently lack sufficient number to yield reliable trend data, but nevertheless demonstrate continued adoption of SaaS across vertical markets and traditionally on-premise product categories.

eCommerce Healthcare Life Sciences Real Estate Security

31 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 1Q14 Median TTM Revenue Growth 1Q14 Median YoY Change in Revenue Growth

CRM & CRM & 26.0% (39.3%) Marketing Marketing

ERP & ERP & 35.4% 15.3% Supply Chain Supply Chain

Vertically Vertically 39.6% (()24.2%) Focused Focused

Workforce Workforce 26.3% (16.6%) Management Management

1Q14 Median TTM EBITDA Margin 1Q14 Median YoY Change EBITDA Margin

CRM & Marketing CRM & 1183.4% -07%0.7% Marketing

ERP & ERP & Supply Chain (515.5%) (4.0%) Supply Chain

Vertically 10.4% Vertically Focused (23.4%) Focused

Workforce (13.5%) Management Workforce Management 0.0%

32 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG SaaS INDEX BY PRODUCT CATEGORY: MARKET MULTIPLES 1Q14 Median EV/Revenue Multiples 1Q14 Median YoY Change in EV/Revenue Multiples

CRM & CRM & 3.3x (2.6%) Marketing Marketing

ERP & ERP & 9.0x 34.8% Supply Chain Supply Chain

Vertically Vertically 8.4x 68.5% Focused Focused

Workforce Workforce 11.7x 9.6% Management Management

• As in past quarters, public SaaS companies comprising the Workforce Management category boasted the highest median market valuation (11.7x EV/Revenue) among our four SaaS product categories at the close of 1Q14. The category is led by Workday (34.0x EV/Revenue multiple) and Cornerstone On Demand (15.6x). Valuation drivers included the continued displacement of on-premise incumbents, as well as a growing performance among enterprises to facilitate and empower employers at all levels. • Vertically focused SaaS companies achieved the highest TTM revenue growth rate in 1Q14, 39.6%. This group, which consists of long- standing companies such as RealPage (real estate) and AthenaHealth (healthcare), was given a boost by Veeva Systems (life sciences) and Textura (construction), both of whom IPO’ed in the past year. Veeva’s TTM revenue growth rate was 62.2% and Textura closed 1Q14 at 70.1%. • The strong revenue performance of vertically focused SaaS companies led to a 68.5% YoY expansion in the median EV/Revenue multiple, the best among our four tracking indices. • In the CRM & Marketing category, SaaS providers that focused on leading edge marketing (marketing automation, business social marketing, etc.), such as Marketo (15.2x) and Salesforce (9.3x), enjoyed market multiples considerably higher than those focused on more established offeri ngs in thecategory (e.g. email marktiketing campaign management) such as CttConstant CttContact (2.6x).

34 THE SEG INTERNET INDEX

SEG - Internet: Median Metrics Measure 1Q13 2Q13 3Q13 4Q13 1Q14 • The SEG Internet Index tracks public EV/Revenue 2.0x 2.2x 2.6x 2.6x 3.3x EV/EBITDA 13.3x 14.9x 18.4x 19.0x 23.3x companies which primarily offer B2C EV/Earnings 21.4x 26.6x 31.1x 38.2x 33.7x solutions over the Internet using a wide Gross Profit Margin 66.1% 65.6% 65.5% 66.0% 66.5% EBITDA Marg in 10. 1% 90%9.0% 94%9.4% 10. 0% 91%9.1% array of pricing models. Net Income Margin 2.3% 2.2% 2.1% 1.8% 2.2% TTM Revenue Growth 21.8% 20.3% 19.3% 16.5% 18.4% • The SEG Internet Index is currently TTM Total Revenue ($M) $351.8 $384.8 $409.5 $435.1 $453.7 TTM EBITDA Growth 16.0% 10.3% 16.6% 16.1% 14.6% comprised of 92 public Internet TTM Total EBITDA ($M) $26.8 $30.5 $30.4 $31.2 $34.6 Cash & Eq ($M) $132.2 $133.3 $140.0 $164.3 $207.3 companies*. Current Ratio 2.2 2.3 2.1 2.3 2.6 Debt / Equity Ratio 19.7% 20.1% 19.7% 22.2% 24.8%

* See appendix for a complete list of companies in The SEG Internet Index 35 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution – 1Q14

TTM Total Revenue ($M) TTM Revenue Growth

$500 25.0% 23% $450 21% 20% $400 20.0% $350 15% $300 15.0% l Revenue nue Growth $250 mpanies 11% aa oo $200 10.0% 9% $150 % of C TTM Tot $100 5.0% TTM Reve $50 $0 00%0.0% 1Q13 2Q13 3Q13 4Q13 1Q14 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • Approximately 62% of the companies comprising the SEG Internet TTM Revenue Growth Index offer online services and solutions that are consumer targeted; their revenue growth closely parallels the performance of the U.S. economy. • After a sequential drop in each of the last six quarters, median TTM revenuegrowthoftheSEGInternetIndeximprovedin1Q14,edgingup to 18.4% from 16.5% in 4Q13. • Once again demonstrating the Internet is an ecosystem of unequals, one in four public Internet providers far outpaced the pack, touting TTM revenue growth greater than 40% in 1Q14. • Many of these high flyers were recent IPOs whose innovative products services and business models allowed them to scale quickly. Select examples included: Trulia (111%), Facebook (55%), and Yelp (69%) • Conversely, 31% of public Internet companies struggled to advance, reporting TTM revenue growth of 10% or less. 36 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE

Median EBITDA Margin Performance – Quarterly TTM EBITDA Margin Distribution – 1Q14

10.1% 10.0% 33% 93%9.3% 94%9.4% 91%9.1%

21% 19% panies DA Margin DA mm TT EBI 9% 9% 9% % of Co

1Q13 2Q13 3Q13 4Q13 1Q14 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • The median EBITDA margin of the SEG internet Index declined slightly TTM EBITDA Margin in 1Q14. Over the past five quarters, EBITDA margins of public Internet companies have been stable, ranging from 9% to 10%. • As testament to the revenue growth focus, 19% of SEG Internet Index Companies were unprofitable in 1Q14. • By contrast 9% of public Internet companies, mostly those with significant transaction or advertising revenue, achieved EBITDA margins above 40%, led by Giant Interactive (65.7%), VeriSign (61.0%), FbkFacebook (49.9%), BidBaidu.com (43.4%). • Facebook, much maligned after its botched IPO and spotty mobile performance when it first went public, has set an example for others in the Internet sector by successfully monetizing its massive user base. • Facebook has added credibility to the notion that its better to scale the user base first, then monetize it. The question remains, will other public Internet companies such as Yelp and Twitter fare as well? 37 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG INTERNET INDEX: MARKET MULTIPLES

Median EV/Revenue and EV/EBITDA Multiples – Quarterly EV/Revenue Multiple Distribution - Quarterly

EV/Revenue EV/EBITDA

23.3x 22% 21% 18.4x 19.0x

14.9x 13.3x 13% 12% mpanies oo 9%

6% % of C 5% 4% 4% 3.3x 3% 2.0x 2.2x 2.6x 2.6x

1Q13 2Q13 3Q13 4Q13 1Q14 <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x >= 9.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x <= 7.0x <= 8.0x <= 9.0x EV/Revenue • The median market multiple of public Internet providers closed 1Q14 at 3.3x, a marked improvement over 1Q13’s 2.0x. • Considering approximately 60% of the public Internet companies are highly levered to consumer spending (Travel, Games, Advertising, etc), we see the improvement in median EV/Revenue as a reflection of growing investor confidence in rapidly ramping online consumer spending and digital advertising. • The widely disparate financial performance of the 92 companies comprising the SEG Internet Index reveals an Internet ecosystem clearly bifurcated into “haves” and “have nots.” Virile market adoptions, consumer fickleness, switching ease, unlimited choice and fierce competition handsomely reward a select few and punish others. Many investors have apparently taken careful note. • 1Q14 only served to further reinforce this reality, 35% of companies closed the quarter with an EV/Revenue multiple of 2.0x or less, while 28% closed the quarter with a market multiple of 7.0x EV/Revenue or higher. • Among the Internet companies boosting the highest EV/Revenue market multiples were a large number of relatively recent IPO’s that are capturing a significant share of online advertising dollars. Examples include Twitter (44.3x); Yelp (24.1x); Qihoo (17.3x); and LinkedIn (14.7x).

EV/Revenue Multiples vs. TTM Revenue Growth Rates – 1Q14 EV/Revenue Multiples vs. TTM EBITDA Margins – 1Q14

11.2x 7.3x 6.8x

4.9x

5.4x 5.7x 3.2x n EV/Revenue n EV/Revenue aa aa 2.1x 2.0x Medi Medi 1.8x 2.1x 1.1x

<= 0% > 0% > 10% > 20% > 30% > 40% <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% <= 10% <= 20% <= 30% <= 40% TTM Revenue Growth TTM EBITDA Margin

• Public Internet companies with TTM revenue growth of 40% or higher were rewarded with median EV/Revenue multiples (11.2x) markedly greater than their slower gggrowing peers. Among those gggrowing 40%+ were: Trulia (93.3%); Zillow (69.5%); Yelp (67.7%); LinkedIn (65.6%). • Unlike the SEG SaaS Index, where TTM EBITDA margins were inversely related to median EV/Revenue multiples, investors in public Internet companies kept a keen eye on margins, and rewarded more profitable performers with significantly higher market multiples. • Public Internet companies with EBITDA margins above 40% posted a median EV/Revenue multiple of 6.8x in 1Q14, 113% higher than the overall Index median. By comparison, public SaaS companies with EBITDA margins above 30% (not enough companies with 40%+) posted a median EV/Revenue multiple of 4.5x, 44% below the SaaS median market valuation. • Investors have clearly taken into consideration, when valuing Internet vs SaaS stocks, such factors as sustainability of the customer relationship, and the associated recurring revenue, and the nature and extent of switching costs. By those measures the long term promise of SaaS seems to far out weight the attractiveness of many public Internet companies. • With few exceptions, many of the most profitable public Internet companies also reported stellar TTM revenue growth. Among them were SouFun Holdings (43.2% revenue growth, 53.6% EBITDA margin), Facebook (48.2% revenue growth, 47.5% EBITDA margin), Baidu.com (40.7% revenue growth, 45.0% EBITDA margin), and Mail.ru Group (32.2% revenue growth, 44.3% EBITDA margin). 39 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG INTERNET INDEX BY PRODUCT CATEGORY

• The SEG Internet Index is segmented into eight product categories. • Representative companies in each Internet category are referenced below. • See the appendix for the complete list of companies within each product category.

AdAd Tech Tech & & LeadLead GenGen CommerceCommerce ContentContent & & MediaMedia GamingGaming

Infrastructure Services Social Travel

40 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved THE SEG INTERNET INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 1Q14 Median TTM Revenue Growth 1Q14 Median YoY Change in Revenue Growth

Ad Tech & Ad Tech & 27.6% (22.2%) Lead Generation Lead Generation Commerce 15.2% Commerce (25.7%)

Content & Media 7.9% Content & Media (37.2%)

Gaming 11.2% Gaming(49.1%)

Infrastructure 8.9% Infrastructure (3.3%)

SiServices 52.7% Services 26.2% 57.2% Social Social (12.2%)

Travel 21.0% Travel 8.5%

1Q14 Median TTM EBITDA Margin 1Q14 Median YoY Change EBITDA Margin

Ad Tech & Ad Tech & 6.8% (9.0%) Lead Generation Lead Generation Commerce 7.3% Commerce 4%45.5%

Content & Media 13.2% Content & Media (3.8%)

Gaming 32.9% Gaming (8.1%)

Infrastr uctur e 6.1% Infrastructure (()16.4%)

Services 7.4% Services (0.5%)

Social 10.9% Social (15.5%)

Travel 17.2% Travel (5.0%)

1Q14 Median EV/Revenue Multiples 1Q14 YoY Change in Median EV/Revenue Multiples

Ad Tech & Ad Tech & 3.2x 39.6% Lead Generation Lead Generation Commerce 1.2x Commerce 30.7% 128.2% Content & Media 3.5x Content & Media

Gaming 3.8x Gaming 40.6%

IfInfras truc ture 191.9x IfInfras truc ture 11. 2%

Services 4.2x Services 18.6%

Social 14.7x Social 61.0%

Travel 4.8x Travel 69.6%

• Public Internet companies comprising the Services and Social product categories closed Q1 with revenue growth rates more than twice the median (52.7%, 57.2%, respectively). • Public Internet companies comprising the social category closed 1Q14 with the highest median EV/Revenue multiple, 14.7x, 206% higher than the second hig hes t category . FbkFacebook and Lin ke dIn ldled the ascent,after proving socilial netkitworking could beextltremelyprofitabl e. • The success social media Internet providers have had monetizing their services, largely through advertising, is taking share away from many in the Ad Tech & Lead Generation space, with marketers clearly attracted to the scalability and ROI of advertising in Facebook and LinkedIn. As a result of these shifting advertising budgets, the median TTM revenue growth of the Ad Tech & Lead Generation product category plunged 22.2% YoY in 1Q14. • Companies within the Gaming product category continue to be very profitable. At the close of 1Q14, the Gaming product category closed with a median EBITDA margin of 32.9%, 3x higher than the median of public Internet companies. However, the category continues to be extremely hits driven leading to low visibility of future performance, which keeps trading multiples somewhat muted. • Despite poor financial performance, the Content & Media product category median EV/Revenue spiked 128% YoY to 3.5x in 1Q14. The categgyory was larggyely driven by outperformance of Netflix and Pandora, two companies who are demonstrating incredible stayyging power in the face of stiff competition from companies with deep pockets. 42 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved SOFTWARE INDUSTRY M&A MARKET UPDATE

43 SOFTWARE/SaaS M&A DEAL VOLUME AND SPENDING

U.S. Software Mergers & Acquisitions Activity Median On-Premise Software EV/Revenue Exit Multiples

500 $35 $60.0 454 456 454 455 $54 432 444 444 450 426 430 435 431 $30 406 ons) 394 $31.4 $50. 0 400 $43 $42 $41 $41 $42

(Milli $40 $40 $23.4 $25 $39 350 $40.0 $37 $36 $21.3 $36 $35 $20.2 Value 300 $23.1 $22.8

$20 Value

Deals

(BIllions of 250 $20.8 $30.0 Deal

$15 ) umber $13.1 200 $15.8 e NN $15.8 $20.0 $12.3 150 $12.6 $10 $9.9 100 Averag $10.0 $5

50 TTM

0 $0 $0.0

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1 1 1 1 2 2 2 2 3 3 3 3 4 11 11 11 11 11 11 11 11 11 11 11 11 11

Deals Value 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

• There were 444 software M&A transactions in 1Q14. Deal activity over the past three years has remained consistently robust. • Software M&A spending soared to $31.4 billion in 1Q14, the highest quarterly deal spend since 2Q07. Facebook’s $16.4 billion acquisition of WhatsApp accounted for roughly half of the quarter’s tally. • In addition to WhatsApp, Q1 featured seven other On-premise/SaaS/Internet mega deals (EV > $500M), including Thoma Bravo’s acquisition of TravelClick ($930M EV, 3.5x EV/Revenue multiple estimate); Verint’s purchase of Kana Software ($514M, 4.0x estimate); Rakuten’s acquisition of Viber Media ($900 million); VMWare’s acquisition of AirWatch ($1.5 billion, 10.0x estimate); and Dassault Systemes’ acquisition of Accelrys ($683 million, 4.1x). • The average software M&A purchase price has increased each of the past three quarters, reaching $54M in 1Q14. • Megadeals aside, most buyers have focused on small and mid-sized acquisitions, in line with out 2013 and 2014 Buyers Survey in response to which 72% of buyers indicated they would focus on deals ranging in size from $10M - $99M.

Median Exit Multiples Median EV/Revenue Exit Multiple Distribution

EV/Revenue EV/EBITDA

14.0x 13.3x 12.9x 30.0% 12.7x 26.2 % 25.0% 12.0x 11.6x 11.5x 25.0%

20.0% 17.9% 10.0x 16.7% 14.3% TTMTTM 15.0% 8.0x 013013 2222

‐‐ 10.0% 6.0x 5.0% DealsDeals

ofof 4.0x %% 0.0% 2.3x 2.3x 2.3x 1.6x 1.8x <= 1.0x > 1.0x & <= > 2.0x & <= > 3.0x & <= > 4.0x 2.0x 2.0x 3.0x 4.0x

0.0x 1Q13 2Q13 3Q13 4Q13 1Q14 TTM Revenue Exit Multiple Bins • On a TTM basis, 43% of all on-premise software targets in 1Q14 • The median on-premise software exit multiple in 1Q14 was 2.3x, were acquired for 2.0x TTM revenue or less, and 69% for 3.0x or precisely the same as the past two quarters. less. • Historically, a 2.3x revenue exit multiple is at the upper end of the • Targets receiving an exit multiple of 3.0x or higher belonged to valuation range for on-premise software companies. That quarterly currently “hot” software product categories experiencing rapid median multiple was beaten only twice since 2007, in 3Q10 and market adoption and growth, including big data integration, 2Q11, when it climbed to 2.5x before receding the following quarter. network infrastructure and security. • NtNoteworth ysmaller on-premise acquiitiisitions in 1Q14 ilddincluded AeroFlex Holdings’ acquisition of network performance management vendor Shenick Network Systems ($28.5 million, 3.0x TTM revenue), and Medina Capital’s acquisition of encryption software provider Cryptzone ($13.4 million, 3.6x TTM revenue).

by Ownership Structure by Size

Public Sellers 2.1x Median Multiple Buyer Greater Buyer Less Than Than $200 million $200 million 3.1x Median 1.6x Median 28% Multiple Multiple 72% 34% 66% Private Sellers 2.3x Median Multiple

Private Buyers 1.7x Median Multiple Seller Greater Seller Greater Than $20 Than $20 million: 0.8x2.9x million: 1.5x1.6x 40% 60% Seller Less Seller Less Than $20 Than $20 million: 3.7x million: 2.4x1.8x Public Buyers million 2.7x Median Multiple

• Almost three out of four software M&A transactions in 1Q14 featured • Buyers with revenue greater than $200 million paid a median 3.1x pritlivately-hldheld tttargets. TTM revenue for the iir tttargets, compared toamedian 1.6x TTM revenue purchase price paid by smaller buyers. • Privately-held software companies in the first quarter were paid a marginally higher multiple than their public counterparts (2.3x TTM • On a TTM basis, software M&A transactions with the highest exit revenue vs. 2.1x) multiples featured a large public or private buyer (greater than $200 million in revenue) acquiring a small target (less than $20 • Public buyers in 1Q14 paid a median 2.7x TTM revenue for their million). In Q1, this match-up produced a median 3.7x targets in 1Q14, compared to a median of 1.7x paid by private EV/Revenue exit multiple. buyers.

46 Q1 2014 Software Industry Financial Report Copyright © 2014 by Software Equity Group, LLC All Rights Reserved SOFTWARE M&A: BY VERTICAL AND HORIZONTAL MARKETS Horizontal & Vertical M&A Median EV/Revenue Exit Horizontal & Vertical M&A Volume Multiples

100%

80% 27x2.7x 2.4x 252.5x 67% 64% 67% 61% 65% 2.1x 60% 1.8x 1.9x 2.0x 1.6x 1.7x 40% 1.3x

20% 33% 36% 33% 39% 35% 0% 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 Horizontal Vertical Vertical Horizontal

• As in the past five quarters, horizontal software providers garnered almost two-thirds of all software M&A transactions in 1Q14. • The median exit multiple for horizontal software companies has risen steadily during the past three quarters, reaching 2.5x TTM revenue in 1Q14. First quarter horizontal transactions included Alibaba Group’s acquisition of digital map content provider AutoNavi Holdings for $1.2 billion (8.3x revenue); Barco’s acquisition of digital media content management provider X2O Median for $19 million (4.2x revenue); Medina Capital’s acquisition of encryption software provider Cryptzone for $13.4 million (3.6x revenue); and Aeroflex Holding’s acquisition of network performance management software vendor Shenick Network Systems for $28.5 million (3.0x revenue). • The median exit valuation of vertical software companies has fluctuated widely over the past five quarters, advancing from 1.7x TTM revenue in 4Q13 to a more historically normal 2.1x TTM in the first quarter. • Q1’s vertical software deals included Equifax’s acquisition of debt collection software provider TDX Group for $326.8 million (3.7x revenue); Dassault Systemes’ acquisition of scientific informatics provider Accelrys for $682.9 million (4.1x revenue); and Advanced Software Group’s acquisition of higher education software provider Compass Computer for $19.4 million (2.1x revenue).

Content & Document Mgmt Dev. Tools & IT Asset Mgmt Billing & Service 2.8% 2.2% Accounting & Finance Provisioning Data Mgmt & Integration EDA eCommerce 0.6% 0.3% 0.3% 2.2% BI, Risk & CRM, Marketing & Sales 1.9% • The Mobile product category accounted for Compliance 4.3% 25.4% of all software M&A transactions in Retail Telcom 4.6% Engineering, PLM & CAD 2.5% 0.3% 22%2.2% the first quarter, making it the most active Middleware Real Estate category. Distant runner-ups were 0.3% 1.2% ERP Healthcare (7.1%), Financial Services Public Sector 0.6% (6.5%), Security (5.0%), and BI, Risk & 0.3% Entertainment Compliance (4.6%) Other Verticals 0.9% 8.0% HR & WkfWorkforce MtMgmt • Historically, deal activity in any given product Manufacturing 2.5% category typically varies widely from year to 0.6% Messaging, Conferencing & Legal Communications year, based upon evolving market adoption, 0.3% 1.5% changing technology platforms, economic Multimedia, Graphics & cycles, etc. Examples include: Communications ls Insurance aa 28%2.8% • BI, Risk & Compliance transactions 1.2% Network Performance Mgmt accounted for 4.6% of all software Healthcare Vertic 0.9% M&A activity in 1Q14, but only 2.3% 7.1% in 1Q13. • Engineering, PLM & CAD deals Security 5.0% accounted for 2.2% of software M&A Financial Services 6.5% activity in 1Q14 compared with 4.6% Systems Mgmt in 1Q13. 1.2% • Supply Chain Management Energy & Utilities 1.2% Supply Chain Mgmt & transactions accounted for 2.8% of Logistics software M&A activity in 1Q14 versus 2.8% Education 4.6% in 1Q13. 3.4% Mobile Construction Automotive 25.4% 0.9% 0.9%

Median EV/Revenue Exit Multiples by Software Product Category

3.1x 3.0x 2.7x 232.3x 2.2x 1.8x 1.8x 1.5x 1.1x 1.1x Mobile Security Education PLM Healthcare BI, Risk & Systems anagement etail, etc.) etail, &D, Telco, &D, upply Chain Compliance oftware ineering and her Verticals cial Services AA MM tt RR SS SS gg ( O En Finan

• Among the 32 on-premise software product categories we track, ten had both sufficient deal activity and deal data to ascertain a TTM revenue multiple in 1Q14. • On a TTM basis, Systems Management software M&A transactions garnered the highest median exit multiple (3.1x) among these ten categories in the first quarter, led by Insight Venture Partners’ 2Q13 acquisition of BMC Software and Solarwinds’ 4Q13 purchase of Confio Software. • Healthcare Software was a close second, posting a solid 3.0x median EV/Revenue exit multiple in 1Q14. Notable Healthcare Software deals included 2Q13’s acquisition of Ingenuity by Qiagen (5.5x revenue); 3Q13’s acquisition of MSS Management by Ideagen (4.3x revenue); and 3Q13’s acquisition of Qline Solutions by Biosign Technologies (3.0x revenue).

SaaS M&A Volume Median SaaS EV/Revenue Exit Multiples

SaaS M&A Deals SaaS as % of Software

120 30%

104 104 4.6x 94 94 97 103 4.3x 100 25% Total 4.1x 86 4.0x 4.0x of

% Deals Deals 80 20%

68 a 65 as &A 59

M&A ls MM 60 15%

45 48

39 Dea

SaaS

40 10% of

# Software M&A 20 5% SaaS 0 0% 1Q13 2Q13 3Q13 4Q13 1Q14

• There were 104 SaaS M&A transactions in 1Q14, essentially the same deal volume level as in three of the past four quarters. • The median TTM EV/Revenue exit multiple of SaaS transactions rose sharply to 4.6x in 1Q14, after holding mostly steady the past year. • SaaS transactions in the first quarter with especially lofty exit multiples included Infor’s acquisition of PeopleAnswers ($200 million, 7.0x TTM revenue estimate); ServiceSource’s acquisition of Scout Analytics ($32.5 million, 6.0x revenue); Wolters Kluwer’s acquisition of Third Coast ($290 million, 5.8x revenue); and Microsoft’s acquisition of Parature ($100 million, 5.0x revenue). • The median SaaS exit multiple was 100% greater than the median on-premise exit multiple in 1Q14 (4.6x vs 2.3x).

Billing & Service Provisioning Content & Document Mgmt 1.0% 2.9% CRM, Marketing & Sales 13.6% Accounting & Finance BI, Risk & Compliance • CRM, Marketing & Sales, and HR & 1.9% 5.8% Data Mgmt & Integration Workforce Management were the most Real Estate 1.0% active Saa S pro duc t ca tegor ies, eac h 1.0% eCommerce accounting for 13.6% of all SaaS M&A Other Verticals 1.9% transactions in the first quarter. 3.9% Non‐profit • After three quarters of lackluster deal 1.0% volume, SaaS transactions in the HR & Manufacturing Engineering, PLM & CAD WkfWorkforce Mgm t pro duc t ca tegory 1.9% 1.0% comprised 13.6% of Q1’s total SaaS M&A Legal ERP activity, compared to only 6.4% for all of 2.9% 1.9% Insurance 2013. The resurgence in the category’s 1.0% quarterly deal volume is largely

ls attributable to strong customer demand aa Healthcare for HR big data and HR analytics, as well 1.9% as mobile workforce and social recruiting Vertic Financial Services solutions. 2.9% • Messaging, Conferencing & Education Communications and Systems 39%3.9% HR & Workforce Mgmt 13.6% Management product categories also Construction 1.9% exhibited strength in 1Q14, with each accounting for 10.7% of total quarterly Messaging, Conferencing & deal volume. Both categories benefited Communications Automotive from rapidly ramping enterprise adoption 10.7% 10%1.0% ofSf Saa SdS depl oyed so lu tions, w hihihich is Multimedia, Graphics & placing increasing pressure on large, on- Communications premise legacy vendors to catch up. Supply Chain Mgmt & 1.0% Logistics Systems Mgmt Security 3.9% 10.7% 3.9% Network Performance Mgmt 1.9%

Enterprise TTM Rev. Date Buye r Se lle r Value (mm) (mm) EV/Rev 03/26/2014 SAP AG (DB:SAP) Fieldglass, Inc. - - - 03/25/2014 Golden Gate Capital LiveVox, Inc. - - - 03/21/2014 ALSO Holding AG (SWX:ALSN) Nervogrid Oy - - - 03/20/2014 DELd(ASXDMY)Dromana Estate Ltd. (ASX:DMY ) Clou dCentra l Pty Lt d $2. 4 -- 03/19/2014 InterCloud Systems, Inc. (NasdaqCM:ICLD) VaultLogix, LLC $44.0 $12.0 3.7x 03/19/2014 IgnitionOne, Inc. Knotice, Ltd. - - - 03/19/2014 BigHand Ltd. Esquire Innovations, Inc. - - - 03/18/2014 Thoma Bravo, LLC TravelCLICK, Inc.* $930.0 $265.7 3.5x 03/18/2014 Dropbox, Inc. Zulip, Inc. - - - 03/18/2014 TrustWave Holdings, Inc. Cenzic, Inc. --- 03/17/2014 Everbridge, Inc. Vocal Ltd. - - - 03/14/2014 Charterhouse Capital Partners LLP SkillSoft Limited - - - 03/13/2014 Clear Payment Solutions LLC eKiosk Solutions LLC - - - 03/12/2014 eBet Limited (ASX:EBT) Industry Data Online Pty Ltd $0.6 - - 03/12/2014 Xumanii International Holdings Corp (OTCPK:XUII) Amonshare.com $1.5 - - 03/11/2014 Sysxnet Limited SaaS Markets, LLC - - - 03/11/2014 Ian Martin Limited Fitzii, Inc. - - - 03/10/2014 Chinasoft International Ltd. (SEHK:354) Deem, Inc. - - - 03/07/2014 DocuSign, Inc. Comprova.com Informatica S.A. - - - 03/06/2014 Axium XTS Corporation ArchitTrek, LLC - - - 03/05/2014 Raine Ventures LLC The Immediate Edge $1.4 $0.5 2.7x 03/05/2014 Tribal Group plc (LSE:TRB) Sky Softw are Pty Limited $19.1 - - 03/05/2014 L- 3 Communications Holdings Inc . (NYSE:LLL) L3DataTacticsL-3 Data Tactics --- 03/04/2014 TalentSoft SA PeopleXS Holding BV - - - 03/03/2014 Shutterstock, Inc. (NYSE:SSTK) WebDAM, Inc. - - - 03/03/2014 Securus Technologies, Inc. Telerus, Inc. - - - 02/28/2014 Corporate Executive Board Co. (NYSE:CEB) Know ledgeAdvisors, Inc. $52.0 - - 02/28/2014 FrontStream Payments, Inc. Truist, Inc. - - - 02/26/2014 Wolters Kluw er Corppgorate Legal Services Third Coast Holdings Inc $290.3 $50.1 5.8x 02/26/2014 Workday, Inc. (NYSE:WDAY) Identified, Inc. - - - 02/26/2014 Square, Inc. BookFresh - - - 02/26/2014 DEKRA International GmbH TTL Automotive Ltd. - - - 02/25/2014 AmbiCom Holdings, Inc. (OTCPK:ABHI) Veloxum Corporation - - - 02/24/2014 Oracle Corporation (NYSE:ORCL) Blue Kai, Inc. - - -

Enterprise TTM Rev. Date Buye r Se lle r Value (mm) (mm) EV/Rev 02/24/2014 Monster Worldw ide, Inc. (NYSE:MWW) Gozaik LLC - - - 02/24/2014 CloudFlare, Inc. Jaal, LLC - - - 02/24/2014 International Business Machines Corporation (NYSE:IBM) Cloudant, Inc. - - - 02/24/2014 QSC AG (XTRA: QSC) FTAPI S of tw are G mbH --- 02/20/2014 - codeMantra, LLC - - - 02/20/2014 OTOY, Inc. AppSlingr, Inc. - - - 02/19/2014 Sprinklr Inc. Dachis Corporation, Inc. - - - 02/19/2014 FSX Interlinked, Inc. Interlinked, Inc. - - - 02/19/2014 Ocuco Limited EMRlogic Systems Inc. - - - 02/19/2014 Clearsw ift Limited Microdasys Europe GmbH --- 02/18/2014 ClickSoftw are Technologies Ltd. (NasdaqGS:CKSW) Xora, Inc. $14.7 - - 02/18/2014 Remark Media, Inc. (NasdaqCM:MARK) BH Enterprises of FL, Inc., - - - 02/18/2014 Wyless Inc. ASPIDER Solutions B.V. - - - 02/18/2014 Court Square Capital Partners AFS Technologies, Inc. - - - 02/14/2014 Equifax Inc. (NYSE:EFX) Forseva, LLC - - - 02/13/2014 Yahoo! Inc. (NasdaqGS:YHOO) Distill, Inc. - - - 02/11/2014 SearchDex, Inc. Altruik, Inc. - - - 02/11/2014 j2 Global, Inc. (NasdaqGS:JCOM) Betteroff Netw orks Pty Ltd. and - - - 02/11/2014 RealPage, Inc. (NasdaqGS:RP) Bookt LLC - - - 02/10/2014 Visma AS Logium Oy - - - 02/06/2014 Ericsson (OM:ERIC B) Azuki Systems, Inc. - - - 02/06/2014 Arqiva Broadcast Holdings Limited Capablue Ltd - - - 02/05/2014 Persistent Systems Limited (BSE:533179) Cloudsquads, Inc.--- 02/05/2014 PointAcross, Inc. GoldMail, Inc. - - - 02/04/2014 Callidus Softw are Inc. (NasdaqGM:CALD) LeadRocket, Inc. $3.0 - - 02/04/2014 Service Scout, Inc. Betterfly, Inc. - - - 02/03/2014 - RentVM, Inc. $5.9 - - 01/31/2014 Physio-Control, Inc. Sansio, Inc. - - - 01/31/2014 Altiux Innovations Pvt Ltd. P-Device Systems Pvt Ltd - - - 01/31/2014 Vector Capital CollabNet, Inc. - - - 01/31/2014 Explorer Softw are Inc. Computer Guidance Corporation - - - 01/30/2014 SalesFUSION Inc. LoopFuse, Inc. - - - 01/29/2014 Bottomline Technologies (de), Inc. (NasdaqGS:EPAY) Rationalw ave, Inc. $8.0 - - 01/29/2014 - Theta Research, LLC - - -

Enterprise TTM Rev. Date Buye r Se lle r Value (mm) (mm) EV/Rev 01/29/2014 ThinkHR Corporation HR That Works, Inc. - - - 01/27/2014 LiveOps, Inc. UserEvents, Inc. - - - 01/27/2014 Navico Holding AS Contour Innovations, LLC - - - 01/27/2014 Berkshire Hathaw ay Specialty Insurance MyAssist Inc Inc. . and InsureIns ure America LLC --- 01/26/2014 Dealer Authority eReputationBuilder - - - 01/24/2014 Budget Center Inc. (OTCPK:BDGN) Vericard Inc. $0.9 - - 01/23/2014 AdRoll, Inc. Userfox - - - 01/23/2014 The Gores Group LLC Zmags, Corp. - - - 01/22/2014 ServiceSource International, Inc. (NasdaqGS:SREV) Scout Analytics, Inc. $32.5 $5.4 6.0x 01/20/2014 Callcredit Information Group Limited Coactiva Aspiren Ltd - - - 01/20/2014 Ellucian, Inc. CampusIT Limited - - - 01/20/2014 Genesys Telecommunications Laboratories, Inc. Ventriloquist Customer - - - 01/18/2014 Allied Wallet, Ltd. Cloudasia Limited - - - 01/16/2014 4CAD Group Plate-forme d’Ingénierie Collaborative - - - 01/16/2014 Electronics for Imaging, Inc. (NasdaqGS:EFII) SmartLinc, Inc. - - - 01/16/2014 HUBHEAD CORP. NRX Global Inc. - - - 01/15/2014 Trusted Team LLC 22Touch Systems, Inc.--- 01/15/2014 Google Inc. (NasdaqGS:GOOG) Impermium Corporation - - - 01/15/2014 Hamilton-Ryker IT Solutions, LLC WMS iSymphony, Inc. - - - 01/14/2014 PROACTIS Holdings PLC (AIM:PHD) EGS Group Limited $3.6 - - 01/14/2014 RuffaloCODY, LLC ScaleFunder, Inc. - - - 01/13/2014 Project Management Institute, Inc., Endow ment Arm ProjectManagement.com And - - - 01/13/2014 NGB Markets, Inc. Local Food Systems, Inc. - - - 01/10/2014 Deutsche Boerse AG (XTRA:DB1) Impendium Systems Ltd. - - - 01/10/2014 Qualcomm Connected Experiences, Inc. kooaba AG - - - 01/10/2014 AFS Technologies, Inc. Visicom Inc. - - - 01/09/2014 HireVue, Inc. Reschedge - - - 01/08/2014 IQNavigator, Inc. ProcureStaff Technologies, Ltd. - - - 01/07/2014 INFOR, INC. PeopleAnsw ers, LLC* $200.0 $28.6 7.0x 01/07/2014 Oracl e C orporati on (NYSE (NY SE: ORCL) CtICorente, Inc. - - - 01/06/2014 Verint Systems Inc. (NasdaqGS:VRNT) KANA Softw are, Inc.* $514.0 $128.5 4.0x 01/06/2014 Microsoft Dynamics Inc Parature, Inc.* $100.0 $20.0 5.0x 01/06/2014 Pinterest, Inc. VisualGraph Inc. - - - 01/06/2014 ABRY Partners, LLC Inmar, Inc. - - - 01/02/2014 Firespring, Inc. Cost Effective Technologies, Inc. - - -

Internet M&A Volume Median Internet EV/Revenue Exit Multiples

256

231

204 195 1.9x 1.9x 1.9x 1.9x 1.8x 185

1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14

• Internet M&A deal volume remained highly volatile, in large part due to shifting marketing strategies, evolving business models, and constant changes in the competitive ldlandscape. • In early 2012, a large number of Internet targets exited amidst the hype of the pending Facebook IPO (5/2012), creating a spike in M&A volume. After the Facebook IPO debacle, Internet investors and buyers alike became more cautious and circumspect, and M&A volume declined markedly, plunging to 185 transactions in 1Q13, down from 273 transactions in 2Q12. • There were 195 Internet M&A transactions in the first qq,uarter, a23%declinefrom4Q13’s 256 deals. We believe the retreat signals a return to more typical quarterly deal activity in the Internet sector, following three consecutive quarters of frothy deal activity. A similar normalization was witnessed in 1Q13. • The median EV/Revenue exit multiple for Internet sellers in 1Q14 was 1.8x, virtually unchanged from the prior four quarters.

TTM M&A Volume by Product Category M&A Volume by Quarter

9.3%

10.8% 29.4% Ad‐Tech & Lead Gen Category 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 Commerce Ad-Tech & Lead Gen 58 60 85 94 57 Commerce 3439444938 5.2% Content & Media Content & Media 42 34 36 42 50 Gaming 7 11 8 10 10 Gaming Infrastructure 24 41 39 39 21 Social Tech 20 19 19 22 18 Infrastructure Total 185 204 231 256 194

Social Tech

19.6% 25.8%

• Internet ad-tech remained the most active Internet M&A category, with 57 transactions in 1Q14. The first quarter’ s tally was down sharply from 4Q13’s 94 ad-tech transactions, but in line with quarterly transaction volume during the first half of 2013. We do not anticipate a resurgence in Ad-tech and Lead gen deal activity for the remainder of the year. • Internet Infrastructure and Internet Commerce transaction activity declined significantly in 1Q14 from the prior quarter. Here too, the category’s quarterly deal volume represented a retreat to normalcy following high deal volumes in recent quarters. • Content and Media were the only Internet categories to post increases in deal activity over the prior quarter.

57 THE SEG SOFTWARE INDEX COMPANIES – KEY METRICS

Billinggg & Service Management 1Q13 2Q13 3Q13 4Q13 1Q14 Enterppgrise Resource Planning 1Q13 2Q13 3Q13 4Q13 1Q14 IT Conglomerates 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.4x 2.3x 3.1x 3.5x 2.7x EV/Revenue 2.9x 3.0x 3.0x 2.9x 3.7x EV/Revenue 2.5x 2.9x 2.7x 3.0x 3.0x EV/EBITDA 9.3x 8.3x 9.9x 9.0x 9.3x EV/EBITDA 10.1x 11.4x 12.1x 12.4x 12.7x EV/EBITDA 9.3x 9.0x 8.4x 8.5x 9.0x EV/Earnings 15.6x 15.9x 17.3x 19.0x 17.8x EV/Earnings 22.8x 25.4x 23.4x 23.5x 21.1x EV/Earnings 14.7x 14.2x 13.5x 12.7x 13.6x Gross Profit Margin 61.1% 58.5% 58.7% 57.8% 57.4% Gross Profit Margin 71.2% 71.6% 71.9% 72.2% 72.6% Gross Profit Margin 71.2% 71.6% 71.9% 72.2% 71.5% EBITDA Margin 22.2% 18.8% 18.7% 18.6% 18.5% EBITDA Margin 28.5% 28.5% 28.7% 29.0% 29.0% EBITDA Margin 32.1% 33.8% 34.3% 35.0% 34.2% Net Income Margin 12.2% 12.2% 12.7% 12.3% 11.8% Net Income Margin 12.6% 10.4% 9.8% 10.7% 10.9% Net Income Margin 17.3% 17.6% 17.8% 18.6% 19.8% TTM Revenue Growth (YoY) 6.9% 2.2% 17.7% 4.4% 3.6% TTM Revenue Growth (YoY) 2.0% 0.2% 1.6% 2.7% 2.7% TTM Revenue Growth (YoY) 0.5% 0.2% 1.2% 0.9% 2.0% TTM EBITDA Growth (YoY) 13.0% 15.6% 7.7% 3.4% 3.7% TTM EBITDA Growth (YoY) 5.3% 0.0% 4.1% 3.9% 2.9% TTM EBITDA Growth (YoY) 0.2% 2.4% 0.6% 2.1% 3.1% TTM Earningg()s Growth (YoY) 4.2% 7.8% -16.7% -9.6% -4.8% TTM Earningg()s Growth (YoY) -18.4% -16.7% -16.6% -6.8% 0.2% TTM Earningg()s Growth (YoY) -6.8% -6.7% 3.3% 5.5% 11.9% Current Ratio 3.3 2.5 2.6 2.3 2.4 Current Ratio 1.1 1.1 1.1 1.1 1.2 Current Ratio 1.1 1.2 1.2 1.2 1.3 Cash as Percent of Market Cap 15.4% 19.2% 17.9% 14.2% 13.5% Cash as Percent of Market Cap 19.2% 21.4% 22.3% 20.6% 21.8% Cash as Percent of Market Cap 19.2% 21.4% 22.3% 20.6% 21.8% Enterprise Value Growth (YoY) 13.4% 22.6% 29.3% 30.7% 27.2% Enterprise Value Growth (YoY) 2.0% 15.4% 4.3% 13.7% 25.8% Enterprise Value Growth (YoY) 1.6% 1.7% 3.7% 9.7% 5.1%

Business Intelligence 1Q13 2Q13 3Q13 4Q13 1Q14 Financial & Accounting 1Q13 2Q13 3Q13 4Q13 1Q14 Mobile Solutions/Content 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 3.5x 3.0x 3.3x 3.1x 3.1x EV/Revenue 3.1x 3.3x 3.3x 3.7x 3.7x EV/Revenue 3.0x 2.8x 3.4x 3.4x 3.6x EV/EBITDA 16.0x 16.5x 17.2x 18.4x 17.3x EV/EBITDA 10.8x 11.1x 12.2x 13.5x 15.8x EV/EBITDA 18.4x 13.2x 13.6x 19.7x 30.7x EV/Earnings 34.7x 25.2x 34.0x 33.8x 30.1x EV/Earnings 22.8x 24.4x 28.0x 28.8x 28.0x EV/Earnings 41.1x 52.2x 63.0x 79.1x 35.3x Gross Profit Margin 75.1% 73.9% 73.6% 74.5% 75.9% Gross Profit Margin 54.6% 54.0% 53.9% 54.7% 54.7% Gross Profit Margin 58.7% 60.9% 60.9% 59.9% 58.5% EBITDA Margin 10.8% 12.2% 12.6% 11.5% 10.2% EBITDA Margin 27.5% 26.6% 26.1% 26.7% 25.9% EBITDA Margin 7.3% 10.2% 8.5% 8.4% 7.2% Net Income Margin 4.7% 6.8% 7.1% 8.6% 7.5% Net Income Margin 12.6% 12.6% 11.2% 11.6% 11.3% Net Income Margin 3.4% 4.2% 3.4% 3.1% 0.6% TTM Revenue Growth (YoY) 12.8% 13.1% 14.2% 9.7% 10.2% TTM Revenue Growth (YoY) 8.6% 6.4% 9.5% 10.7% 8.5% TTM Revenue Growth (YoY) 47.2% 26.4% 20.3% 23.7% 24.9% TTM EBITDA Growth (YoY) -0.7% -8.2% -26.9% -14.2% -8.5% TTM EBITDA Growth (YoY) 3.2% 4.0% 4.5% 9.4% 9.4% TTM EBITDA Growth (YoY) 16.4% 12.0% 16.0% 16.5% 26.5% TTM Earnings Growth (YoY) 15.5% 14.9% 15.6% 4.3% -10.0% TTM Earnings Growth (YoY) 29.4% 20.6% 8.0% 4.4% 2.0% TTM Earnings Growth (YoY) 13.4% -20.1% -36.6% -34.9% 88.3% Current Ratio 1.9 1.9 2.0 2.1 2.0 Current Ratio 1.3 1.5 1.4 1.6 1.3 Current Ratio 2.0 2.1 2.1 3.3 2.8 Cash as Percent of Market Cap 15.7% 14.3% 11.8% 9.4% 9.5% Cash as Percent of Market Cap 5.8% 11.1% 8.5% 8.1% 6.1% Cash as Percent of Market Cap 10.5% 15.7% 15.7% 10.8% 8.7% Enterprise Value Growth (YoY) -7.2% -9.1% 21.3% 37.8% 11.6% Enterprise Value Growth (YoY) 11.9% 20.9% 23.1% 29.8% 29.1% Enterprise Value Growth (YoY) -15.7% -6.5% 9.1% 50.2% 30.0%

Development Platforms 1Q13 2Q13 3Q13 4Q13 1Q14 Gaming 1Q13 2Q13 3Q13 4Q13 1Q14 Networking & Network Perf Mgmt 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.5x 2.6x 2.6x 2.7x 2.7x EV/Revenue 1.1x 1.3x 1.6x 1.6x 1.7x EV/Revenue 2.8x 2.7x 2.8x 2.8x 3.3x EV/EBITDA 9.6x 10.2x 14.4x 11.9x 11.1x EV/EBITDA 7.1x 10.0x 12.1x 14.2x 11.3x EV/EBITDA 16.6x 17.0x 17.0x 14.9x 16.8x EV/Earnings 17.2x 14.2x 13.7x 16.0x 18.2x EV/Earnings 16.8x 20.5x 43.6x 29.7x 35.5x EV/Earnings 29.7x 21.0x 22.8x 21.7x 25.8x Gross Profit Margin 77.9% 78.1% 77.7% 77.6% 76.7% Gross Profit Margin 64.7% 65.3% 66.3% 66.8% 64.2% Gross Profit Margin 70.6% 70.7% 70.8% 71.1% 71.1% EBITDA Margin 23.9% 20.3% 20.0% 20.0% 19.6% EBITDA Margin 14.9% 14.8% 14.0% 13.4% 19.0% EBITDA Margin 12.6% 12.7% 12.7% 7.9% 7.5% Net Income Margin 14.3% 12.6% 11.2% 11.5% 11.3% Net Income Margin 4.5% 4.4% 3.5% 3.4% 3.7% Net Income Margin 4.7% 1.3% -2.4% -2.7% -2.5% TTM Revenue Growth (YoY) 3.0% 0.6% -0.3% 0.1% -0.3% TTM Revenue Growth (YoY) 7.4% 15.1% 15.2% 10.7% 3.9% TTM Revenue Growth (YoY) 20.3% 12.9% 7.2% 6.1% 7.2% TTM EBITDA Growth (()YoY) 0.0% -2.7% -13.9% -12.6% -6.5% TTM EBITDA Growth (()YoY) 12.1% 40.1% 50.6% 27.6% 8.0% TTM EBITDA Growth (()YoY) 11.7% 8.9% 3.6% -21.6% -21.8% TTM Earnings Growth (YoY) -7.0% -6.9% 1.6% -0.3% -10.3% TTM Earnings Growth (YoY) -10.7% 26.4% 25.3% -17.6% -18.2% TTM Earnings Growth (YoY) -14.4% 2.9% 10.0% 6.9% -0.8% Current Ratio 2.3 2.3 2.1 2.1 2.0 Current Ratio 2.5 2.6 2.4 2.0 2.4 Current Ratio 1.6 1.5 2.1 2.3 2.6 Cash as Percent of Market Cap 19.8% 20.6% 19.3% 18.9% 20.9% Cash as Percent of Market Cap 28.7% 26.0% 21.6% 22.6% 19.4% Cash as Percent of Market Cap 14.4% 17.3% 16.9% 19.1% 14.2% Enterprise Value Growth (YoY) 0.1% -3.0% 6.3% 18.1% 7.0% Enterprise Value Growth (YoY) -1.3% 27.1% 65.0% 45.7% 44.5% Enterprise Value Growth (YoY) -4.3% 2.2% 8.4% 8.1% 3.9%

Engineering & PLM 1Q13 2Q13 3Q13 4Q13 1Q14 Healthcare 1Q13 2Q13 3Q13 4Q13 1Q14 Security 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.7x 2.7x 2.8x 2.9x 3.3x EV/Revenue 2.0x 2.1x 2.4x 2.5x 2.4x EV/Revenue 3.3x 3.6x 4.0x 3.5x 5.0x EV/EBITDA 14.8x 14.2x 14.6x 14.2x 14.9x EV/EBITDA 12.5x 12.0x 13.1x 14.4x 15.0x EV/EBITDA 11.6x 10.8x 13.0x 13.7x 12.7x EV/Earnings 20.0x 19.6x 22.9x 23.1x 25.8x EV/Earnings 18.4x 27.8x 30.1x 34.6x 41.7x EV/Earnings 15.8x 16.2x 19.6x 16.8x 17.7x Gross Profit Margin 83.3% 83.4% 83.6% 84.0% 84.1% Gross Profit Margin 57.4% 56.4% 55.8% 55.5% 54.6% Gross Profit Margin 79.0% 78.8% 78.2% 78.3% 76.4% EBITDA Margin 20.7% 19.8% 19.9% 20.1% 20.7% EBITDA Margin 18.4% 18.0% 17.9% 16.9% 15.2% EBITDA Margin 11.5% 11.5% 11.1% 0.5% -3.0% Net Income Margin 10.8% 10.4% 10.8% 11.2% 11.4% Net Income Margin 4.0% 6.3% 6.8% 7.0% 5.2% Net Income Margin 6.2% -3.8% -7.4% -7.7% -14.7% TTM Revenue Growth (YoY) 13.1% 11.7% 8.4% 4.4% 6.2% TTM Revenue Growth (YoY) 8.8% 7.6% 7.5% 3.1% 3.0% TTM Revenue Growth (YoY) 23.8% 21.8% 21.2% 18.3% 15.3% TTM EBITDA Growth (YoY) 10.6% 11.3% 8.0% 3.7% 7.0% TTM EBITDA Growth (YoY) 6.4% 7.0% 3.9% 1.3% 1.4% TTM EBITDA Growth (YoY) 2.0% -16.4% -29.9% -39.8% -39.8% TTM Earnings Growth (YoY) 14.2% 13.3% 6.1% 4.0% 8.6% TTM Earnings Growth (YoY) 16.0% 34.6% 20.3% 8.3% 9.2% TTM Earnings Growth (YoY) -3.5% -6.1% -4.1% -13.0% -21.6% Current Ratio 1.9 2.2 2.2 2.5 2.4 Current Ratio 1.8 1.9 2.0 1.7 1.8 Current Ratio 1.4 1.4 1.3 1.4 1.6 Cash as Percent of Market Cap 13.9% 16.4% 15.5% 16.5% 14.2% Cash as Percent of Market Cap 9.5% 6.4% 6.2% 6.5% 6.5% Cash as Percent of Market Cap 12.8% 11.0% 9.9% 11.6% 8.8% Enterpp(rise Value Growth (YoY)21.1% 27.4% 32.2% 40.9% 25.6% Enterpp(rise Value Growth (YoY)0.1% 14.9% 14.0% 23.0% 17.8% Enterpp(rise Value Growth (YoY)-0.2% 13.6% 30.7% 29.0% 24.6%

Stora gggge, Data M g mt & Inte g ration 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.4x 2.4x 2.7x 3.0x 3.0x EV/EBITDA 9.3x 9.0x 8.9x 8.6x 9.0x EV/Earnings 15.4x 16.9x 15.5x 16.4x 14.3x Gross Profit Margin 72.6% 72.3% 72.8% 73.5% 71.5% EBITDA Margin 21.8% 21.9% 22.2% 23.3% 24.2% Net Income Margin 11.5% 10.7% 10.9% 11.1% 12.4% TTM Revenue Growth (YoY) 4.8% 4.1% 3.3% 4.4% 2.0% TTM EBITDA Growth (YoY) 1.6% 1.8% -0.6% 3.8% 3.6% TTM Earnings Growth (YoY) 4.7% 3.2% 8.9% 6.9% 5.7% Current Ratio 2.2 2.2 2.4 2.5 2.6 Cash as Percent of Market Cap 22.1% 21.4% 19.6% 20.6% 21.8% Enterprise Value Growth (YoY) -9.1% -0.8% 13.0% 27.6% 5.8%

Supply Chain Mgmt & Logistics 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 3.8x 4.1x 4.5x 5.2x 5.8x EV/EBITDA 14.7x 15.6x 17.3x 19.4x 21.5x EV/Earnings 29.0x 31.2x 35.9x 42.6x 46.7x Gross Profit Margin 61.8% 62.0% 61.9% 61.9% 61.9% EBITDA Margin 19.3% 19.1% 21.4% 24.1% 26.8% Net Income Margin 11.5% 11.4% 12.8% 13.2% 13.5% TTM Revenue Growth (YoY) 12.8% 10.7% 13.6% 14.2% 14.7% TTM EBITDA Growth (YoY) 16.2% 19.8% 19.1% 23.5% 20.6% TTM Earnings Earnings Growth Growth (YoY) (YoY) 87%8 .7% 06%0 .6% 11. 9%9% 20. 1%1% 15. 0%0% Current Ratio 2.4 2.4 2.3 2.4 2.3 Cash as Percent of Market Cap 10.0% 7.5% 6.5% 5.8% 6.2% Enterprise Value Growth (YoY) 38.4% 37.2% 40.7% 50.6% 51.5%

Systems Management 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 5.6x 5.0x 5.4x 4.4x 5.0x EV/EBITDA 23.1x 20.9x 19.7x 16.5x 18.9x EV/Earnings 37.6x 34.7x 34.7x 29.8x 32.3x Gross Profit Margin 85.6% 85.5% 85.6% 85.7% 85.9% EBITDA Margin 24.3% 23.8% 24.2% 24.2% 25.8% NetIncome Income Margin Margin 14. 9%9% 14. 1%1% 13. 8%8% 14. 8%8% 15. 9%9% TTM Revenue Growth (YoY) 17.2% 16.1% 16.4% 15.3% 13.0% TTM EBITDA Growth (YoY) 6.7% 13.2% 11.9% 16.7% 12.8% TTM Earnings Growth (YoY) 2.7% 0.7% 9.4% 16.8% 16.1% Current Ratio 1.5 1.5 1.5 1.6 1.3 Cash as Percent of Market Cap 11.0% 11.3% 10.5% 10.9% 9.5% Enterprise Value Growth (YoY) 4.1% -10.3% -9.1% -9.1% 11.7%

Vertical - Finance 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 3.4x 3.8x 3.7x 4.7x 4.5x EV/EBITDA 10.7x 11.4x 12.6x 12.8x 13.4x EV/Earnin gs24.1x 23.2 x 24.3x 24.5 x 26.2 x Gross Profit Margin 43.8% 43.3% 43.2% 43.7% 44.0% EBITDA Margin 25.9% 26.3% 26.0% 26.1% 27.0% Net Income Margin 9.7% 10.3% 11.3% 13.2% 14.0% TTM Revenue Growth (YoY) 6.7% 7.6% 7.4% 8.1% 8.2% TTM EBITDA Growth (YoY) 6.5% 9.8% 9.4% 9.8% 11.6% TTM Earnings Growth (YoY) 1.2% 5.6% 20.3% 23.1% 21.0% Current Ratio 1.3 1.4 1.3 1.3 1.3 Cash as Percent of Market Cap 7.0% 5.2% 4.7% 4.4% 4.3% Enterprise Value Growth (YoY) 0.9% 20.9% 29.1% 46.0% 46.3%

Vertical - Other 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 3.1x 3.4x 3.7x 3.6x 3.2x EV/EBITDA 21.2x 24.6x 26.0x 30.2x 16.2x EV/Earnings 41.0x 45.5x 51.8x 68.1x 53.6x Gross Profit Margin 53.4% 52.8% 52.4% 52.5% 51.9% EBITDA Margin 13.9% 13.5% 13.3% 12.3% 14.6% Net Income Margin 6.5% 6.7% 5.8% 4.5% 6.0% TTM Revenue Growth (YoY) 20.6% 21.7% 22.3% 24.6% 21.2% TTM EBITDA Growth (YoY) 8.7% 4.8% -3.5% 0.6% 17.0% TTM Earnings Growth (YoY) -4.2% -3.4% 15.1% 6.3% -1.5% Current Ratio 1.6 1.4 1.5 1.6 2.1 Cash as Percent of Market Cap 9.8% 8.0% 7.9% 5.2% 8.0% Enterprise Value Value Growth Growth (YoY) (YoY) 21. 9%9% 55. 4%4% 69. 3%3% 77. 5%5% 67. 6%6%

CRM & Marketing 1Q13 2Q13 3Q13 4Q13 1Q14 Other SaaS 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 3.4x 2.6x 4.1x 3.2x 3.3x EV/Revenue 4.2x 5.2x 5.9x 6.1x 7.6x EV/EBITDA 35.5x 29.8x 107.4x 136.8x 382.6x EV/EBITDA 26.2x 31.5x 41.1x 37.1x 40.8x EV/Earnings 66.9x 85.4x 431.4x 75.1x 101.8x EV/Earnings 48.2x 50.6x 52.6x 56.1x 52.2x Gross Profit Margin 73.1% 73.2% 72.8% 72.4% 71.2% Gross Profit Margin 70.3% 70.7% 71.6% 71.6% 69.8% EBITDA Margin -0.1% 0.5% 0.0% 0.0% -0.7% EBITDA Margin -0.6% -1.2% -2.0% -4.2% -5.8% Net Income Margin -11.3% -10.6% -9.2% -7.6% -8.7% Net Income Margin -8.6% -9.7% -10.2% -10.8% -12.1% TTM Revenue Growth (YoY) 42.9% 32.1% 31.4% 26.5% 26.0% TTM Revenue Growth (YoY) 24.9% 23.9% 27.3% 25.1% 27.5% TTM EBITDA Growth (YoY) -94.8% -40.5% -44.4% -38.1% -27.8% TTM EBITDA Growth (YoY) 6.9% -23.8% -23.7% -47.5% -43.5% TTM Earnings Growth (YoY) -46. 8% -64. 1% -68. 6% -62. 2% -42. 6% TTM Earnings Growth (YoY) (YoY) 86%8.6% 10.9% 50%5.0% 29.9% -50%5.0% Current Ratio 1.8 1.5 1.6 2.4 2.3 Current Ratio 1.9 1.7 1.7 2.4 2.4 Cash as Percent of Market Cap 17.5% 17.6% 14.3% 15.0% 11.5% Cash as Percent of Market Cap 13.0% 13.3% 10.3% 12.6% 9.9% Enterprise Value Growth (YoY) -1.5% -36.2% -24.3% -15.0% 9.5% Enterprise Value Growth (YoY) 3.8% 30.0% 64.9% 66.3% 59.3%

ERP & Supply Chain 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 6.6x 7.1x 9.3x 9.1x 9.0x EV/EBITDA 128.4x 86.7x 72.2x 66.8x 62.1x EV/Earnings 283.6x 331.2x 478.7x 466.1x 466.5x Gross Profit Margin 69. 1% 68. 5% 67. 8% 67. 4% 67. 4% EBITDA Margin 2.1% -2.1% -7.8% -8.1% -8.9% Net Income Margin -1.8% -5.0% -14.3% -15.6% -17.0% TTM Revenue Growth (YoY) 30.7% 33.9% 37.7% 38.3% 35.4% TTM EBITDA Growth (YoY) 7.1% 0.3% -77.8% -94.6% -107.5% TTM Earnings Growth (YoY) -1.3% 23.0% 698.4% 393.6% 224.6% Current Ratio 1.4 1.4 2.5 2.5 2.1 Cash as Percent of Market Cap 7.5% 8.0% 6.4% 6.0% 5.6% Enterprise Value Growth (YoY) 64.8% 94.4% 69.3% 69.5% 68.1%

Vertically Focused 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 5.0x 5.0x 5.7x 7.4x 8.4x EV/EBITDA 27.2x 25.4x 28.5x 32.1x 37.4x EV/Earnings 63.3x 137.6x 119.5x 104.7x 159.0x Gross Profit Margin 62.0% 62.0% 62.1% 62.5% 62.7% EBITDA Margin 13.5% 11.6% 11.3% 11.4% 10.4% Net Income Margin 3.0% 1.1% 0.2% 0.7% 0.8% TTM Revenue Growth (YoY) 52.3% 28.7% 31.3% 26.1% 39.6% TTM EBITDA Growth (YoY) 11. 1% 13. 3% 11. 5% 41%4.1% -68%6.8% TTM Earnings Growth (YoY) -1.4% -3.1% -36.1% -13.4% -16.0% Current Ratio 2.0 1.6 2.0 2.5 2.0 Cash as Percent of Market Cap 8.3% 10.5% 8.8% 7.7% 5.6% Enterprise Value Growth (YoY) 25.6% 21.5% 27.2% 46.0% 61.2%

Workforce Management 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 10.7x 8.5x 10.5x 10.7x 11.7x EV/EBITDA 63.9x 61.9x 73.0x 73.7x 337.6x EV/Earn ings 181. 0x 165. 7x 190. 0x 189. 1x 6398. 7x Gross Profit Margin 57.0% 57.9% 58.9% 59.6% 60.6% EBITDA Margin -16.2% -13.6% -11.3% -8.9% -5.7% Net Income Margin -27.9% -26.5% -25.4% -22.1% -20.4% TTM Revenue Growth (YoY) 31.5% 39.5% 40.3% 42.7% 26.3% TTM EBITDA Growth (YoY) -33.8% -17.9% -4.8% 6.5% 5.6% TTM Earnings Growth (YoY) 241.7% 264.2% 69.5% 113.6% 74.5% Current Ratio 1.1 1.1 1.7 1.7 1.6 Cash as Percent of Market Cap 3.8% 11.9% 9.2% 8.1% 8.3% Enterprise Value Growth (YoY) 49. 2% 42. 8% 76. 4% 74. 4% 85. 7%

Ad Tech & Lead Generation 1Q13 2Q13 3Q13 4Q13 1Q14 Infrastructure 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.3x 2.9x 2.6x 2.9x 3.2x EV/Revenue 1.7x 1.6x 1.4x 1.7x 1.9x EV/EBITDA 14.2x 15.2x 22.8x 27.3x 24.3x EV/EBITDA 12.3x 12.9x 14.7x 14.4x 17.2x EV/Earnings 21.8x 25.9x 25.7x 38.0x 78.7x EV/Earnings 23.3x 35.3x 47.1x 40.6x 33.3x Gross Profit Margin 65.7% 63.7% 62.8% 64.5% 66.3% Gross Profit Margin 61.5% 61.2% 62.2% 62.2% 63.3% EBITDA Margin 7.5% 6.8% 6.3% 5.7% 6.8% EBITDA Margin 7.3% 7.2% 7.1% 6.3% 6.1% Net Income Margin 3.4% 3.6% 0.5% 0.0% 0.2% Net Income Margin -1.0% 0.4% 0.7% -0.8% -1.8% TTM Revenue Growth (YoY) 35.4% 26.9% 24.4% 20.1% 27.6% TTM Revenue Growth (YoY) 9.2% 8.8% 5.6% 6.3% 8.9% TTM EBITDA Growth (YoY) 10.2% 26.2% 11.1% 8.3% 14.9% TTM EBITDA Growth (YoY) -32.2% -16.2% -14.8% 11.9% 3.6% TTM Earnings Growth (YoY) 53%5.3% 50%5.0% -17%1.7% 29%2.9% 86%8.6% TTM Earnings Growth (YoY) -28. 3% -73. 4% -73. 2% -14. 9% 43. 9% Current Ratio 2.3 2.4 2.0 2.5 2.9 Current Ratio 3.1 3.1 3.1 3.2 2.7 Cash as Percent of Market Cap 18.7% 20.5% 17.7% 17.1% 13.9% Cash as Percent of Market Cap 28.4% 25.7% 22.9% 22.7% 23.1% Enterprise Value Growth (YoY) 4.9% 44.4% 51.5% 64.7% 57.7% Enterprise Value Growth (YoY) -2.8% -2.5% 17.9% 48.1% 35.5%

Commerce 1Q13 2Q13 3Q13 4Q13 1Q14 Services 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 0.9x 0.9x 1.1x 1.2x 1.2x EV/Revenue 3.5x 3.4x 4.3x 4.2x 4.2x EV/EBITDA 10.1x 15.1x 16.3x 18.6x 18.7x EV/EBITDA 14.2x 19.7x 23.9x 22.3x 27.6x EV/Earnings 13.8x 23.8x 24.6x 28.6x 24.8x EV/Earnings 50.2x 74.6x 117.9x 94.9x 69.3x GPfitMiGross Profit Margin 38. 7% 38. 7% 38. 9% 39. 7% 40. 7% GPfitMiGross Profit Margin 71. 8% 72. 3% 72. 5% 72. 7% 73. 0% EBITDA Margin 5.0% 5.3% 5.2% 5.4% 7.3% EBITDA Margin 7.5% 5.8% 4.4% 5.3% 7.4% Net Income Margin 2.0% 2.2% 2.1% 2.2% 4.6% Net Income Margin 2.3% 0.3% 0.3% -1.4% -0.1% TTM Revenue Growth (YoY) 20.4% 17.7% 15.4% 13.9% 15.2% TTM Revenue Growth (YoY) 41.8% 40.4% 38.5% 48.0% 52.7% TTM EBITDA Growth (YoY) 26.5% 30.7% 18.3% 16.8% 16.4% TTM EBITDA Growth (YoY) 21.0% 30.6% 42.8% 41.2% 33.0% TTM Earnings Growth (YoY) -0.5% 1.7% 11.6% 13.9% 14.5% TTM Earnings Growth (YoY) 56.5% -43.2% -40.5% 42.2% 94.8% Current Ratio 1.7 1.6 1.7 1.6 2.0 Current Ratio 1.4 1.3 1.3 1.4 2.1 Cash as Percent of Market Cap 18.5% 15.4% 13.4% 13.3% 12.8% Cash as Percent of Market Cap 13.2% 18.9% 12.3% 12.3% 9.8% Enterprise Value Growth (YoY) -6.3% 29.0% 40.5% 52.1% 21.1% Enterprise Value Growth (YoY) 16.1% 65.8% 102.8% 94.0% 41.0%

Content & Media 1Q13 2Q13 3Q13 4Q13 1Q14 Social 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 1.5x 2.3x 2.7x 2.8x 3.5x EV/Revenue 9.1x 8.3x 11.9x 16.3x 14.7x EV/EBITDA 15.4x 14.2x 20.8x 22.5x 24.5x EV/EBITDA 38.9x 37.1x 38.7x 37.8x 40.0x EV/Earnings 19.2x 23.9x 23.3x 30.8x 42.2x EV/Earnings 401.8x 259.2x 103.4x 77.3x 44.0x Gross Profit Margin 52.4% 52.4% 52.3% 50.5% 49.6% Gross Profit Margin 62.2% 62.9% 63.8% 65.3% 66.6% EBITDA Margin 13.7% 15.5% 15.9% 15.6% 13.2% EBITDA Margin 12.9% 13.5% 12.8% 12.1% 10.9% Net Income Margin 1.6% 2.2% 2.4% 1.7% 2.9% Net Income Margin 1.0% 1.2% 3.2% 2.5% 19.1% TTM Revenue Growth (YoY) 12.6% 12.1% 14.1% 10.8% 7.9% TTM Revenue Growth (YoY) 65.2% 56.6% 54.0% 56.9% 57.2% TTM EBITDA Grow th (Yo Y) 59%5.9% 17. 7% 19. 1% 28. 6% 30. 1% TTM EBITDA Grow th (Yo Y) 17. 2% 45. 1% 67. 7% 43. 9% 73. 8% TTM Earnings Growth (YoY) 80.9% 85.8% 24.8% 48.2% -38.9% TTM Earnings Growth (YoY) 81.4% 119.7% 101.3% 180.2% 229.8% Current Ratio 1.8 1.8 2.0 2.8 2.6 Current Ratio 5.4 4.6 3.8 4.7 10.3 Cash as Percent of Market Cap 17.2% 15.3% 13.8% 11.0% 10.1% Cash as Percent of Market Cap 10.6% 13.4% 9.6% 9.0% 8.1% Enterprise Value Growth (YoY) 12.8% 34.4% 72.4% 111.1% 93.7% Enterprise Value Growth (YoY) n/a n/a n/a 154.3% 105.8%

Gaming 1Q13 2Q13 3Q13 4Q13 1Q14 Travel 1Q13 2Q13 3Q13 4Q13 1Q14 EV/Revenue 2.7x 2.7x 2.8x 3.2x 3.8x EV/Revenue 2.8x 3.4x 4.6x 4.7x 4.8x EV/EBITDA 5.8x 5.9x 7.7x 8.0x 8.7x EV/EBITDA 16.1x 18.0x 20.9x 21.7x 22.7x EV/Earnings 7.2x 8.4x 11.2x 9.4x 9.7x EV/Earnings 25.2x 35.3x 44.3x 53.6x 37.2x Gross Profit Margin 71.2% 71.3% 72.5% 73.3% 72.3% Gross Profit Margin 79.5% 79.9% 81.0% 82.2% 83.0% EBITDA Margin 35.9% 38.6% 36.6% 35.2% 32.9% EBITDA Margin 18.1% 17.9% 16.8% 17.3% 17.2% Net Income Margin 24.8% 26.7% 28.0% 26.5% 23.3% Net Income Margin 9.5% 9.5% 9.1% 5.2% 11.8% TTM Revenue Growth (YoY) 21.9% 21.9% 19.8% 15.7% 11.2% TTM Revenue Growth (YoY) 19.3% 20.0% 20.8% 21.1% 21.0% TTM EBITDA Growth (YoY) 8.8% 13.4% 11.5% 12.1% 17.2% TTM EBITDA Growth (YoY) 2.0% 2.2% 2.7% 8.7% 5.6% TTM Earnings Growth (YoY) 12.9% 12.9% 12.4% 6.0% 11.8% TTM Earnings Growth (YoY) 21.8% 6.0% 1.1% 20.0% 18.2% Current Ratio 2.5 2.4 2.4 2.2 2.2 Current Ratio 1.9 1.9 1.9 1.7 1.8 Cash as Percent of Market Cap 36.7% 35.9% 31.8% 33.7% 31.0% Cash as Percent of Market Cap 19.4% 18.3% 14.8% 13.9% 12.1% EtEnterpr ise VlValue Grow th(YY)th (YoY) -63%6.3% 22. 8% 63. 6% 66. 5% 86. 2% EtEnterpr ise VlValue Grow th(YY)th (YoY) 10%1.0% 38. 8% 45. 0% 73. 8% 86. 2%

Purchase Price Enterprise Value TTM Rev Buyer Seller (mm) (mm) EV/Rev EV/EBITDA Growth Alibaba Group Holding Limited AutoNavi Holdings Limited (NasdaqGS:AMAP) $1,236.2 $1,167.7 8.2x - - Dassault Systemes SA (ENXTPA:DSY) Accelrys Inc. (NasdaqGS:ACCL) $746.4 $682.9 4.1x 101.4x 3.7% WABCO Europe BVBA Transics International NV (ENXTBR:TRAN) $136.4 $115.3 1.6x 7.2x 5.2% Sint ecM edi a Ltd .; Si nt ec M edi a S oft ware Ltd . Pilat M edi a Gl ob al pl c (AIM :PGB) $80.7 $72.1 161.6x 12.4 x 91%9.1% Medina Capital Cryptzone Group AB (publ) (OM:CZON B) $13.4 $13.4 3.6x - -35.9%

Purchase Price Enterprise Value TTM Rev Buyer Seller (mm) (mm) EV/ Rev EV/ EBITDA Growth Facebook, Inc. (NasdaqGS:FB) WhatsApp Inc. $16,374.2 $16,374.2 - - - VMware, Inc. (NYSE:VMW) AirWatch, LLC $1,540.0 $1,540.0 - - - Alibaba Group Holding Limited AutoNavi Holdings Limited (NasdaqGS:AMAP) $1,236.2 $1,167.7 8.2x - -11.3% Thoma Bravo, LLC TravelCLICK, Inc. $930.0 $930.0 - - - Rakuten, Inc. (TSE:4755) Viber Media Inc. $900.0 $900.0 - - - Dassault Systemes SA (ENXTPA:DSY) Accelrys Inc. (NasdaqGS:ACCL) $746.4 $682.9 4.1x 101.4x 3.7% Platinum Equity, LLC Sensis Pty Ltd $411.0 $587.1 - 0.9x - Zynga Game International Limited NaturalMotion Ltd. $527.1 $527.1 - - - Veri nt S yst ems I nc. (N asd aqGS :VRNT) KANA S oft ware, I nc. $514.0 $514.0 ---

Purchase Price Enterprise Value TTM Revenue Buyer Seller (mm) (mm) (mm) EV/ Rev Facebook, Inc. (NasdaqGS:FB) WhatsApp Inc. $16,374.2 $16,374.2 - - Little Eye Software Labs Pvt Ltd. $14.5 $14.5 - - Branch Media, Inc. $15.0 $15.0 - - Google Inc. (NasdaqGS:GOOG) Deepmind Technologies Limited $401.3 $401.3 - - Impermium Corporation - - - - Spider.io - - - - SlickLogin - - - - Bitspin GmbH - - - - Synopsys Inc. (NasdaqGS:SNPS) Coverity, Inc. $375.0 $350.0 - - Target Compiler Technologies N.V. - - - - Brandenburg GmbH - - - -

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