QUARTERLY SOFTWARE SECTOR REVIEW | 4Q 2018 SOFTWARE SECTOR REVIEW | 4Q 2018

. DEAL SPOTLIGHT KEY FACTS . M&A TRANSACTIONS – 4Q 2018 . SOFTWARE M&A ACTIVITY . Founded in 1991 . SOFTWARE SECTOR OVERVIEWS . SOFTWARE PRIVATE PLACEMENTS . 300+ professionals across eight offices globally . SOFTWARE PUBLIC COMPARABLES . TECHNOLOGY IPOS . 21st record year in 2018 . DEBT MARKETS . APPENDIX: PUBLIC COMPARABLES DETAIL . 10 industry groups

HW Office Managing Director [email protected]

Managing Director [email protected] SOFTWARE / SAAS & DIGITAL MEDIA Managing Director . Enterprise Software . IT and Tech-Enabled . AdTech and Marketing . Digital Media, Content, [email protected] . Data and Analytics Services Solutions and Gaming . Infrastructure Software . Telecom and . Consumer Internet . eCommerce Managing Director Solutions . Mobile [email protected]

TMT VERTICAL FOCUS AREAS Managing Director . Education Technology . Fintech . Public Sector [email protected] . Energy Technology . Healthcare IT . Supply Chain and Logistics . Human Capital Management . Industrial Software *[email protected]

has been acquired by pending acquisition of has been acquired by has acquired has been acquired by has acquired has been acquired by has been acquired by has merged with has been acquired by has been acquired by has acquired

&

TECHNOLOGY, MEDIA & TELECOM PAGE | 1 SOFTWARE SECTOR REVIEW | 4Q 2018

HW’s TMT Group advised IQMS, a portfolio company of TCV and Banneker Partners, on its sale to Dassault Systemes (EPA: DSY).

$425M IQMS is a leading provider of fully-integrated software solutions that manage, optimize, and automate production operations and back-office workflows for manufacturers across diverse end-markets, globally.

Through its comprehensive manufacturing execution system (MES) and enterprise resource planning (ERP) software platform, IQMS’ solutions provide manufacturers with a comprehensive end-to-end suite that provides real-time visibility and actionable insights throughout the manufacturing lifecycle.

IQMS serves over 1,000 longstanding customers across diverse end-markets, including automotive, has been acquired by medical, packaging, consumer goods, electronics, and aerospace and defense in a growing $35 billion global market.

Dassault Systemes will help IQMS expand its customer base by leveraging the presence in the mid- market space established through Dassault’s SOLIDWORKS applications, which are delivered and supported by the company’s Professional Solutions global partner channel.

Tyler Dewing Jeff Bistrong Thierry Monjauze Andy Leed Erik Szyndlar Managing Director Managing Director Managing Director Director Director [email protected] [email protected] [email protected] [email protected] [email protected] 617-654-2133 617-654-2102 +44 (20) 7518-8900 415-217-3420 415-217-3418

TECHNOLOGY, MEDIA & TELECOM PAGE | 2 SOFTWARE SECTOR REVIEW | 4Q 2018

• Mindbody provides business management software and payment solutions for the fitness, beauty, and wellness services industries. • The Company’s integrated platform enables business owners to operate, market, and grow their businesses, while enabling Enterprise Value: $1,900M EV / Revenue: 7.3x consumers to easily find, engage, and transact with fitness, wellness, and beauty providers in their local communities. Revenue: $260M EV / EBITDA: NA • Following the acquisition, Vista will provide capital and operating expertise to accelerate development of Mindbody’s platform and product suite.

• PlanGrid provides construction productivity and collaboration software to over 12,000 contractors, subcontractors, and owners in commercial, heavy civil, and other industries. • The Company’s web-based solution enables clients to share blueprints, project plans, and daily reports across project teams, Enterprise Value: $875M EV / Revenue: NA resulting in increased productivity and efficiency and decreased project timelines. Revenue: NA EV / EBITDA: NA • PlanGrid’s workflows will be integrated with Autodesk Revit and the Autodesk BIM 360 platforms to provide a seamless flow of project information across all project stakeholders.

• Invoice Cloud provides cloud-based vertical software, payments, and billing solutions to over 25,000 clients in the government, utilities, health and wellness, non-profit, and financial services sectors. • The Company’s SaaS solutions help clients minimize administrative costs, improve customer engagement, and streamline the Enterprise Value: NA EV / Revenue: NA billing and collections processes. Revenue: NA EV / EBITDA: NA • Following the acquisition, Invoice Cloud will leverage General Atlantic’s extensive vertical software and payments expertise to execute on an organic and inorganic growth strategy.

• Qualtrics provides enterprise data collection and experience management (“XM”) software to over 9,000 enterprises worldwide. • The Company’s XM platform enables teams, departments, and organizations to collect, manage, and act on experience data, Enterprise Value: $8,000M EV / Revenue: 20.0x resulting in superior customer, employee, product, and brand experiences. Revenue: $400M EV / EBITDA: NA • Post acquisition, Qulatrics will leverage SAP’s global scale, reach, and resources to accelerate growth and adoption globally.

• OnCourse Learning provides eLearning, workforce management, and compliance solutions to enterprises and professionals in the healthcare, financial services, and real estate sectors to over 750,000 learners and 19,000 B2B clients annually. • The Company’s software solutions empower organizations to manage the workforce lifecycle, ensure compliance, and Enterprise Value: NA EV / Revenue: NA advance careers through technology-based personal learning solutions. • As part of the transaction, OnCourse’s professional education segment will become a new entity within Bertelsmann Education Revenue: NA EV / EBITDA: NA Group while OnCourse’s healthcare segment will merge with Relias, a healthcare-focused e-learning business within the Bertelsmann Education Group portfolio.

TECHNOLOGY, MEDIA & TELECOM PAGE | 3 SOFTWARE SECTOR REVIEW | 4Q 2018

(# of Transactions) . The 10 most active strategic software acquirers registered 65 acquisitions in 2018. Activity among large strategic 2018 software acquirers surpassed 2017 17 levels. 7 2017

. was the most active strategic 2016 acquirer in 2018, completing 17 10 12 4 acquisitions. Collaboration and 4 7 2015 development tools remain strategic priorities as evidenced by the $7.5 9 7 billion acquisition of GitHub, which will 15 14 8 5 4 provide a strong base for Microsoft to 2 7 4 4 expand its cloud-services offerings and 9 8 6 grow its developer network. 18 1 3 13 8 1 12 10 3 6 2 3 6 4 4 4 3 3 1

(# of Transactions) . Globally, strategic software M&A registered 450 acquisitions in 4Q 2018 2018, an 10% increase from 3Q 2018. . 2018 was highlighted by incumbent enterprise software providers expanding their cloud capabilities through multi-billion dollar acquisitions of open-source software, cloud services, and developer solutions. 454 437 434 450 Notable deals include IBM’s $34 billion 402 406 402 395 41 0 358 381 381 acquisition of Red Hat, Broadcom’s 341 351 348 328 $18.5 billion acquisition of CA Technologies, and SAP’s $8 billion acquisition of Qualtrics.

1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

Note: Includes control investments only.

TECHNOLOGY, MEDIA & TELECOM PAGE | 4 SOFTWARE SECTOR REVIEW | 4Q 2018

(# of Platform Transactions) . The 10 most active software investors completed 70 new platform investments in 2018. 2018 12

. Thoma Bravo was the most active 2017 software private equity firm in 2018, completing 14 platform acquisitions. 14 2016 Notable acquisitions for the year include 9 8 6 5 Veracode, Imperva, and Barracuda 2015 Networks. 3 5 6 7 4 6 7 10 6 2 6 5 7 3 4 5 3 8 1 5 2 7 7 4 4 3 6 5 5 3 3 2 2 2

(# of Platform Transactions) . Globally, private equity buyers registered 95 new software platform investments in 4Q 2018, the highest quarter ever. . The software sector is rapidly evolving as all industries are experiencing disruptive digital technology transformations. To capitalize on this trend, dealmakers, including both 1 02 1 00 traditional technology investors and 91 90 95 82 80 83 non-traditional investors, are deploying 73 73 an unprecedented amount of capital in 56 61 54 50 the software sector. 44 47

1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

Note: Includes control new platform investments only. Excludes add-on acquisitions.

TECHNOLOGY, MEDIA & TELECOM PAGE | 5 SOFTWARE SECTOR REVIEW | 4Q 2018

. Application Software M&A 394 3.5x 380 registered 394 transactions in 4Q 373 366 2018, the highest quarter ever, as 346 demand for high quality 337 3.0x 319 320 316 314 2.8x 307 298 2.7x 2.7x Application Software assets 289 291 288 281 2.5x 2.5x 272 2.5x 2.4x 2.5x 2.4x proliferates across different 2.3x 2.4x sectors of the economy. 2.3x 2.3x 2.3x . Median reported Application Software M&A transaction multiples continued an upward 1.4x trend, increasing to 3.5x revenue in 4Q 2018.

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

. In 4Q 2018, strategic buyers were Application Software highly active pursuing application 1/08/2019 Dassault Systèmes SA IQMS Provider of an integrated manufacturing execution systems (MES) and enterprise resource planning (ERP) software platform. $425 HW CONFIDENTIAL6.1x software targets, as vertical- 12/19/2018 Thoma Bravo LLC PEC Safety Operations LLC Provider of contractor management and safety training software. NA NA specific software companies 12/13/2018 Altair Engineering, Inc. Datawatch Corp. Provider of business application software designed for a complimentary self-service data preparation services. $163 3.9x remain highly sought-after. 12/03/2018 Hub Group, Inc. CaseStack, Inc. Provider of warehousing and logistics outsourcing software. $255 NA 12/03/2018 Newscycle Solutions (Vista Equity) Marketing G2 LLC Provider of digital tools for online subscriptions, customer engagement, data discovery, and audience lifecycle management. NA NA . Notable vertical-specific software 11/27/2018 AMETEK, Inc. Spectro Scientific, Inc. Provider of analytical instrumentation and software used in field-based machine condition monitoring applications. $190 3.8x transactions include 11/27/2018 Golden Gate Private Equity, Inc. Vector Solutions, Inc. Provider of digital compliance and professional development training services. NA NA Bertelsmann’s acquisition of 11/20/2018 PTC, Inc. Frustum, Inc. Provider of a design and topology optimization platform. $70 NA OnCourse Learning (education), 11/13/2018 Clearcourse Partnership LLP MillerTech Provider of membership and customer relationship management software for nonprofit organizations. NA NA PTC’s acquisition of Frustum 11/01/2018 Bertelsmann OnCourse Learning Provider of workforce and professional online training software solutions. $525 HW CONFIDENTIAL5.1x (manufacturing), and Cubic’s 10/30/2018 Wolters Kluwer NV eVision Industry Software BV Provider of operational safety and control workflow software. $180 7.6x 10/25/2018 Hartford Steam Boiler relayr GmbH Provider of an industrial IoT middleware platform. $299 NA acquisition of Trafficware 10/24/2018 Cubic Transportation Systems, Inc. Trafficware LLC Provider of transportation management software. $236 HW CONFIDENTIALNA

(transportation). 10/23/2018 Battery Ventures SigmaTEK Systems LLC Provider of computer aided nesting software designed to optimize the operations of manufacturing companies. NA NA

10/11/2018 Eden Capital Management LLC Tour de Force, Inc. Provider of a suite of customer relationship management (CRM) and business intelligence (BI) software. NA NA

10/04/2018 Amadeus IT Group SA TravelClick, Inc. Provider of distribution and marketing solutions to hotels globally. $1,520 NA

$245 5.1x

TECHNOLOGY, MEDIA & TELECOM PAGE | 6 SOFTWARE SECTOR REVIEW | 4Q 2018

5.6x . SaaS M&A registered 56 5.4x 70 68 transactions in 4Q 2018, in line 5.0x 5.0x 65 4.9x 4.8x 4.8x 4.8x 4.7x 4.8x with the last four quarters as both 4.6x 4.6x 4.5x strategic and private equity 57 4.4x 55 55 55 56 4.2x buyers continue to invest across 53 54 53 52 51 52 52 3.9x the sector. 48 3.5x 43 . 4Q 2018 median reported SaaS transaction multiples increased to 5.0x.

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

. While strategic buyers continue to SaaS demonstrate a strong appetite for Pending Vista Equity MINDBODY, Inc. Provider of business management software for the fitness, beauty, and wellness services industries. $1,674 7.3x SaaS companies, private equity Pending Twilio, Inc. SendGrid, Inc. Provider of a cloud-based email service platform, delivering customer communication to drive engagement and business growth. $1,568 11.4x firms have been particularly active Pending Insight Venture Partners EPiServer Group AB Provider of web content management and online community software platforms. $1,250 NA in new platform and add-on Pending Autodesk, Inc. BuildingConnect Provider of a construction bid management platform designed to connect every business in the construction industry. $275 NA acquisitions. Pending Insight Venture Partners Interfolio, Inc. Provider of an academic decision support platform intended to solve higher education problems easily. $110 NA Pending Silver Lake Management Co. LLC ServiceMax, Inc. Provider of a cloud-based field-service management platform NA NA . With two SaaS acquisitions Pending General Atlantic Invoice Cloud Provider of SaaS-based payment acceptance and invoice presentment platform. NA NA totaling over $1 billion in 4Q 2018, 12/31/2018 Vista Equity Wrike, Inc. Provider of a SaaS-based collaborative work management platform. NA HW CONFIDENTIALNA Autodesk is continuing to build 12/19/2018 Autodesk, Inc. PlanGrid, Inc. Provider of a construction productivity software intended to deliver real-time project information. $875 NA out its suite of SaaS solutions for 12/05/2018 Tangoe (Marlin Equity Partners) MOBI Wireless Management LLC Provider of cloud-based wireless mobility management software. NA NA the construction sector. 11/26/2018 Ontario Teachers' Pension Plan Fleet Complete Provider of cloud-based IoT applications intended to cover all of the fleet management needs. NA NA 10/31/2018 Adobe Systems, Inc. Marketo, Inc. Provider of marketing engagement and automation platforms. $4,750 NA

10/15/2018 Q2 Holdings, Inc. Cloud Lending, Inc. Provider of a cloud-based lending platform offering global cloud infrastructure solutions. $105 NA

10/02/2018 Lithium Technologies (Vista Equity) Spredfast, Inc. Provider of a SaaS-based customer engagement software. NA NA

10/01/2018 SS&C Technologies Holdings, Inc. Eze Software Group LLC Provider of cloud-based investment management software. $1,450 5.2x

8/02/2018 Xero Ltd. Hubdoc, Inc. Provider of an accounting platform automating document collection and processing. $70 NA

$1,063 7.3x

TECHNOLOGY, MEDIA & TELECOM PAGE | 7 SOFTWARE SECTOR REVIEW | 4Q 2018

. Data and Analytics M&A 122 registered 112 transactions in 4Q 115 3.3x 112 110 110 112 2018, a slight increase from the 105 105 106 107 3.1x 3.1x 102 3.0x 99 100 previous quarter. 97 2.8x 2.8x 2.8x 2.8x 2.7x 89 2.6x 87 2.6x 2.6x 2.5x 2.5x . Median reported Data and 82 2.4x Analytics transaction multiples 2.0x remained in line with 2018 1.9x multiples, at 2.8x.

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

. Data and Analytics remains a key Data and Analytics focus area for enterprises in 4Q Pending SAP SE Qualtrics International, Inc. Provider of an enterprise data collection and analysis software intended to survey employees, markets, and customers. $7,992 21.5x 2018 as operational decision- Pending LinkedIn Corp. Glint, Inc. Provider of a real-time employee engagement platform designed to measure and improve employee retention rates. $400 NA making is increasingly driven by Pending MongoDB, Inc. mLab Provider of a DBaaS platform intended to offer services. $68 NA complex and real-time data. 1/03/2019 Cloudera, Inc. Hortonworks, Inc. Provider of an enterprise-ready open and connected data platform designed for storing, managing, and analyzing data. $1,757 5.4x 12/17/2018 Open Text Corp. Liaison Technologies, Inc. Provider of cloud-based data PaaS intended to combine integration and data management under one platform. $310 NA . Recent examples include SAP’s 12/11/2018 Vista Equity 7Park Data, Inc. Provider of an insights platform designed to contextualize anonymous viewing, mobile, web, and purchasing data. NA NA pending acquisition of Qualtrics, 12/04/2018 TIBCO Software, Inc. Orchestra SA Provider of a data management software for managing and distributing master data and metadata to mobile and web applications. $100 NA Cloudera’s pending acquisition of 11/16/2018 SS&C Technologies Holdings, Inc. Intralinks Holdings, Inc. Provider of a cloud-based content collaboration network for document exchange. $1,519 5.1x Hortonworks, Drop Technologies’ 11/15/2018 Drop Technologies, Inc. Canopy Labs Software, Inc. Provider of a lead optimization platform intended to analyze customer data easily. NA NA acquisition of Canopy Labs 11/13/2018 Kohlberg Kravis Roberts & Co. LP Calabrio, Inc. Provider of customer interaction and workforce optimization software services. NA NA Software, and Linkedin’s 10/16/2018 Aventri (HGGC) ITN International, Inc. Provider of event management and analytics software solutions. NA NA 10/16/2018 Compliance Solutions Strategies TradeChannel AB Provider of post-trade regulatory reporting, data, and systems integration software for the financial services industry. NA NA

acquisition of Glint. 10/05/2018 The Allstate Corp. InfoArmor, Inc. Provider of identity, financial and privacy protection software to identify cyber threats. $525 NA

10/01/2018 The Blackstone Group Refinitiv Provider of financial data and risk analytics tools. $17,000 4.9x

10/01/2018 State Street Corp. Charles River Systems, Inc. Provider of a SaaS-based investment management platform to automate and simplify front and middle office processes. $2,600 NA

$1,022 5.3x

TECHNOLOGY, MEDIA & TELECOM PAGE | 8 SOFTWARE SECTOR REVIEW | 4Q 2018

3.3x 3.2x 3.2x . Infrastructure Software M&A 89 3.1x 3.0x 3.0x 3.0x 84 registered 84 transactions in 4Q 2.9x 2.9x 2.8x 2018, representing a slight 2.7x 76 2.7x decrease from the prior quarter. 75 2.6x 2.6x 2.6x 71 70 2.5x 67 2.4x In 4Q 2018, median reported 63 62 . 60 Infrastructure Software transaction 57 52 multiples decreased slightly to 50 47 2.5x revenue, but remain in line 45 44

with historical averages. 36

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18

. Established software vendors Infrastructure Software including IBM, Broadcom, Pending IBM Red Hat, Inc. Provider of cloud-based open source, enterprise information technology services. $32,332 10.2x Microsoft, and VMWare, as well as Pending EQT Partners AB SUSE LINUX GmbH Provider of reliable infrastructure software and application delivery systems. $2,535 7.9x private equity investors, remain Pending Bain Capital Private Equity LP Rocket Software, Inc. Provider of enterprise-class software products for a variety of industries. $2,000 NA keen on high quality infrastructure Pending Thoma Bravo LLC Imperva, Inc. Provider of data security services that provide visibility and control over high value business data across critical systems. $1,671 4.8x software assets. Pending Vista Equity Apptio, Inc. Provider of a SaaS-based business management application to transform the way IT runs its business and makes decisions. $1,569 7.0x Pending Perforce Software (Clearlake Capital) Perfecto Mobile, Inc. Provider of cloud-based testing, automation, and monitoring technology. $200 NA . Network and infrastructure security 1/01/2019 Thoma Bravo LLC Veracode, Inc. Provider of a cloud-based security platform to find and fix security-related defects throughout the software development lifecycle. $950 NA companies continue to be in high 11/30/2018 Searchlight Capital Partners LLC Mitel Networks Corp. Provider of business communications and collaboration software. $1,930 1.7x demand as evidenced by Thoma 11/05/2018 Broadcom, Inc. CA, Inc. Provider of enterprise IT software designed to eliminate the barriers between ideas and business outcomes. $18,202 4.4x Bravo’s pending acquisitions of 11/05/2018 Symantec Corp. Appthority, Inc. Provider of a mobile threat-protection software. NA NA Imperva and Veracode, Palo Alto 10/25/2018 Microsoft Corp. GitHub, Inc. Provider of a software development and collaboration platform. $7,500 NA 10/24/2018 Check Point Software Technologies Ltd. Dome9 Security, Inc. Provider of a SaaS-based verifiable infrastructure security platform designed to deliver comprehensive security. $175 NA

Networks’ acquisition of RedLock, 10/12/2018 Palo Alto Networks, Inc. RedLock, Inc. Provider of a infrastructure security platform designed to provide deep security visibility and anomaly detection. $173 NA

and Bomgar’s acquisition of 10/10/2018 AppRiver (Marlin Equity Partners) Total Defense, Inc. Provider of an internet security software designed to offer anti-malware and anti-virus products. NA NA

BeyondTrust (via its financial 10/04/2018 VMware, Inc. CloudHealth Technologies, Inc. Provider of cloud-service-management software helping businesses manage . $500 NA

sponsor Francisco Partners). 10/04/2018 Bomgar (Francisco Partners) BeyondTrust Software, Inc. Provider of cybersecurity software designed to provide a seamless and straightforward approach to prevent data breaches. NA NA

10/02/2018 Kohlberg Kravis Roberts & Co. LP BMC Software, Inc. Provider of multi-cloud management software designed to transform businesses into digital enterprises. $10,000 NA

10/01/2018 Cisco Systems, Inc. Duo Security, Inc. Provider of cloud-based internet security services designed to protect organizations against data breaches. $2,350 NA

10/01/2018 Siemens AG Holding BV Provider of an application-development platform to improve mobile applications at scale. $735 21.7x

$1,930 5.9x

TECHNOLOGY, MEDIA & TELECOM PAGE | 9 SOFTWARE SECTOR REVIEW | 4Q 2018

. There were 976 private 1,200 placement financings in 4Q 1,100 $28,000 952 997 2018, which represents a 15% 1,013 920 978 1,000 1,033 976 increase over 4Q 2017. 869 849 898 $24,000 756 900 743 896 . Total reported capital 811 774 investment in the software 800 960 790 $20,000 sector continues to grow 700 $16,000 substantially with $18.2 billion 600

invested in 4Q 2018, up from Volume

$13.0 billion in 3Q 2018. 500 $12,000 $ Millionsin 400

300 $8,000

200 $4,000 100

0 $0 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

. In 4Q 2018, the majority of private capital invested was in 1 8% 1 5% late stage (C – later) rounds, 25% 28% 29% 34% comprising 56% of total capital 36% 39% 38% 41 % 38% 36% 50% 46% 48% 45% invested. 55% 22% 1 7 % 1 4% 39% . Notable late stage rounds 20% included Amplitude’s $80 20% 1 7 % 1 9% million Series D investment led 29% 28% 24% 1 9% 26% by Sequoia Capital, Aras’ $70 33% 32% 20% 22% 11% 20% 28% million Series D investment led 32% 20% 26% 23% by Goldman Sachs, and 29% 1 8% 21 % 1 7 % 25% 1 7 % HashiCorp’s $100 million Series 24% 20% 28% 21 % 1 2% D investment led by IVP. 22% 22% 21 % 1 6% 1 7 % 1 7 % 1 7 % 1 9% 1 8% 1 2% 1 4% 1 5% 7% 11% 8% 11% 2% 4% 4% 2% 4% 2% 2% 1% 2% 2% 1% 1% 2% 1% 1% 2% 3% 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18

Seed Series A Series B Series C Series D / or later

TECHNOLOGY, MEDIA & TELECOM PAGE | 10 SOFTWARE SECTOR REVIEW | 4Q 2018

Late Tiger Global Management; Bessemer Venture Partners; Lumia Capital; Provider of a cloud-based project-management platform Procore Technologies 12/13/18 SaaS $75 $307 Stage ICONIQ Capital designed to manage construction and real estate projects.

Provider of mobile applications for the construction industry to FinalCAD SAS 12/13/18 SaaS C $40 $65 Draper Espirit; Cathay Innovation; Ventures manage building processes in the field.

Provider of a data warehouse virtualization platform that Data & AtScale, Inc. 12/12/18 D $50 $95 Morgan Stanley; Storm Ventures; Wells Fargo; Atlantic Bridge Capital enables enterprises to connect business intelligence and data Analytics visualization tools to cloud data warehouses.

Insight Venture Partners; Madrona Venture Group; New Enterprise Provider of network security and continuous compliance Tigera, Inc. 12/12/18 Infrastructure B $30 $53 Associates; Wing Venture Partners software for Kubernetes platforms.

Data & Provider of a mobile analytics platform designed to track and Amplitude, Inc. 12/05/18 D $80 $137 Sequoia Capital; Lead Edge; Benchmark Capital; IVP; Battery Ventures Analytics analyze user behavior across consumer facing products.

Late Provider of a cloud-based business management platform for Vagaro, Inc. 12/05/18 SaaS $63 $63 FTV Capital Stage the salon, spa, and fitness industry.

Goldman Sachs Private Investing; GE Ventures; Silver Lake Provider of a web-based enterprise product lifecycle Aras Corp. 11/29/18 Application D $70 $135 Management management platform.

IVP; OpenView Venture Partners; Square Peg Capital; EVP Capital Provider of a workforce management platform for employee Deputy 11/28/18 SaaS B $81 $106 Management scheduling, tasking, and communication.

Provider of vertically-focused accounting software leveraging AI Botkeeper, Inc. 11/21/18 SaaS A $18 $23 Greycroft; Gradient Ventures; Ignition Partners; Halfcourt Ventures and machine learning.

Thrive Capital; Benchmark; Coatue Management; Delphine Arnault; Provider of a cloud-based spreadsheet and database Airtable 11/15/18 SaaS C $100 $170 Charles River Ventures; Caffeinated Capital collaboration tool.

Provider of open source automation tools that enable IVP; Bessemer Venture Partners; GGV Capital; Mayfield; Redpoint HashiCorp, Inc. 11/01/18 Infrastructure D $100 $175 developers to provision, secure, run, and connect cloud Ventures; True Ventures computing infrastructure.

Data & Provider of cloud-based supply chain data and compliance Assent Compliance, Inc. 10/22/18 C $100 $144 Warburg Pincus Analytics management software.

Data & Late Provider of a big data analytics operating system to enable Tresata, Inc. 10/10/18 $50 $52 GCP Capital Partners Analytics Stage clients to derive actionable customer intelligence. Note: Financial information presented above represents reported capital raised only. TECHNOLOGY, MEDIA & TELECOM PAGE | 11 SOFTWARE SECTOR REVIEW | 4Q 2018

36.6% 11.0x Large-Cap SaaS 110.2% 4Q 2017 4Q 2018 7.7% PLM & Engineering 84.7% 7.7x 7.4x 7.4x 7.4x 11.8% 7.2x 7.1x Financial 6.8x 6.7x 62.1% 6.2x 6.4x 6.1x 5.9x 5.5x 5.4x 35.2% 5.1x 5.1x 5.1x HCM 4.8x 5.0x 47.3% 4.6x 4.6x 4.5x 4.5x 3.8x 3.5x 3.3x 3.3x 3.4x 15.7% 3.1x 3.1x 2.5x IT Security 2.6x 59.6% 2.3x (0.0%) SCM & Logistics 24.5%

1.3% Data & Analytics 36.3%

18.4% Small-Cap SaaS 29.8%

9.4% IT Operations Mgmt. 67.1%

Marketing 29.1% 74.7%

EdTech / Public Sector 5.0% 54.1% 4Q 2017 4Q 2018

(0.8%) Bellwethers 49.6% 62.8x (4.1%) Enterprise 57.1x 45.0% 54.8x 48.1x 1.4% Data Storage 35.5% 35.9x36.6x 29.4x 31.8x HCIT 6.4% 25.9x 27.6x 25.8x 24.9x 23.5x 22.5x 25.6x 18.5% 21.5x 18.5x 20.1x 16.8x 19.8x 19.0x 17.9x 17.4x 18.6x 17.5x 17.6x 16.9x 15.7x 16.0x 15.4x15.5x 15.8x 17.1x Energy 2.3% 15.3x 65.0% (0.1%) Communication 26.5%

1 Yr - Index Change 3 Yr - Index Change

TECHNOLOGY, MEDIA & TELECOM PAGE | 12 SOFTWARE SECTOR REVIEW | 4Q 2018

Large-Cap SaaS 11.0x 30% 133% 12% 47% 22% -

PLM & Engineering 7.7x 13% 39% 24% - - 40%

Financial 7.4x 12% 22% 35% 10% 25% 33%

HCM 7.4x 19% 76% 13% 70% - 35%

IT Security 6.7x 22% 63% 22% 13% - 44%

SCM & Logistics 6.4x 12% 19% 27% 91% 54% 81%

Data & Analytics 6.1x 14% 69% 13% 72% - 83%

Small-Cap SaaS 5.5x 19% 1% 33% 39% - -

IT Operations Mgmt. 5.4x 12% 36% ` 31% 46% 89% -

Marketing 5.1x 16% 61% 11% 78% 47% 69%

EdTech / Public Sector 4.6x 14% 23% 24% 65% 72% 49%

Bellwethers 4.5x 6% 20% 31% 81% 62% 18%

Enterprise 4.5x 7% 17% 29% 82% 83% 31%

Data Storage 3.8x 20% 66% 19% 44% 11% 32%

HCIT 3.3x 9% 49% 18% 25% 35% 47%

Energy 3.1x 6% 34% 16% 72% 35% 100%

Communication 2.5x 6% 51% 21% 96% - 100%

TECHNOLOGY, MEDIA & TELECOM PAGE | 13 SOFTWARE SECTOR REVIEW | 4Q 2018

$0 - 50M $50 - 100M $100 - 250M $250M + . Technology IPO activity in 4Q 2018 remained in line with the previous quarter, with just three new companies listed. 15 . Following a more active 1H 2018, technology IPO activity slowed in 2H 2018 as companies evaluate timing and private markets continue to 11 offer compelling valuations. 9 9 8 8 . There are a number of large technology companies including Uber, Lyft, and Palantir who 6 have all signaled they are preparing to go public 5 5 4 in 2019. 3 3 3 3 2 1 0

4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 4Q-17 1Q-18 2Q-18 3Q-18 4Q-18

2014 Total: 47 2015 Total: 31 2016 Total: 15 2017 Total: 20 2018 Total: 18

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

$50 - 100M $100 - 250M $250M + $0-50M $50-500M $500M-$1B $1B+ < 25% 25 - 75% > 75%

9% 12% 26% 30% 31%

56%

19% 61% 58%

TECHNOLOGY, MEDIA & TELECOM PAGE | 14 SOFTWARE SECTOR REVIEW | 4Q 2018

150.0%

79.1% 70.6% 65.9% 31.0% 66.1% 53.5% 48.6% 35.9% 55.9% 51.1% 40.8% 36.5% 34.7% 18.5% 8.4% 50.0% 15.6% 12.6%

(50.0%)

(150.0%)

250.0%

200.0% 169.8% 145.1% 150.0%

95.8% 98.6% 100.0% 65.7% 56.8% 56.1% 38.2% 50.0% 29.6% 29.8% 20.9% 2.3% 0.0% (2.7%) (6.5%) (7.8%) (16.7%) (50.0%) (29.4%)

(100.0%)

Circle Size Denotes Revenue ($) (150.0%)

11/14/17 11/17/17 2/8/18 3/15/18 3/22/18 4/12/18 4/26/18 4/26/18 4/27/18 5/4/18 6/15/18 6/28/18 9/19/18 9/25/18 10/4/18 10/11/18 10/18/18 $16.00 $12.00 $13.00 $16.00 $21.00 $14.00 $29.00 $22.00 $15.00 $19.00 $24.00 $21.00 $23.00 $12.00 $36.00 $17.00 $15.00 $672.4 $1,026.6 $253.8 $1,877.3 $911.4 $1,127.6 $4,411.2 $2,999.0 $174.5 $1,250.7 $1,559.5 $455.5 $1,800.0 $1,493.7 $2,501.7 $2,067.9 $4,649.1 $131.2 $240.0 $70.2 $192.0 $756.0 $154.0 $629.3 $462.0 $174.5 $152.0 $180.0 $193.2 $230.0 $180.0 $252.0 $263.5 $375.0 169.8% 95.8% (16.7%) 145.1% (2.7%) 29.6% 38.2% 56.8% 65.7% (29.4%) 29.8% (6.5%) 20.9% 2.3% 98.6% 56.1% (7.8%)

TECHNOLOGY, MEDIA & TELECOM PAGE | 15 SOFTWARE SECTOR REVIEW | 4Q 2018

Defined as Issuers with EBITDA of $50 Million or Less Defined as Issuers with EBITDA of $50 Million or Less ($ in billions) . Median middle market LBO loan multiples in FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA $2.9 2018 increased slightly Institutional Pro Rata to 5.6x leverage. 5.6x 5.6x 5.4x 5.5x 5.3x 5.2x . Middle market LBO loan 4.8x 4.7x 4.7x volume decreased to 4.5x 4.5x $2.0 4.3x 4.2x 4.3x $0.9 billion in 4Q 2018, $1.8 bringing total volume in 3.8x 3.8x $1.8 $1.6 2018 to $5.8 billion. 3.4x 3.3x $1.5

$1.2 $1.1 $1.1 $0.9 $0.9 $0.9 $0.7

$0.4

3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18

YTD 2018 New Issue LBO Loans Percentage of Total Purchase Price . Technology companies were the largest Technology 22.0% recipients of middle 60% market LBO loans in 57% 58% Healthcare 16.6% 56% 2018, representing 22.0% 55% 55% of new issuance. 54% 53% 50% 50% Services & Leasing . Median LBO debt 10.8% percentages increased slightly to 55% of total Chemicals 8.7% purchase price 2018.

Oil & Gas 5.0%

Building Materials 4.9%

Other 32.1% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TECHNOLOGY, MEDIA & TELECOM PAGE | 16 SOFTWARE SECTOR REVIEW | 4Q 2018

a wholly-owned affiliate of acquired by acquired by acquired acquired by acquired acquired by acquired acquired by acquired by acquired by acquired invested in majority investment from acquired by acquired by

& &

acquired by acquired by acquired by acquired by investment from acquired acquired by merged with investment from acquired by acquired by acquired acquired by investment from acquired by

&

acquired by acquired by acquired by acquired majority investment from growth Investment from acquired by majority investment from acquired by majority investment from recapitalized by acquired by acquired acquired by acquired by

B2C

acquired a majority stake acquired by acquired by acquired by recapitalized by acquired by acquired by acquired by acquired by acquired by acquired by acquired by acquired by acquired by majority investment from in

significant equity minority investment from acquired by acquired by merged with acquired by acquired by strategic investment from merged with acquired by acquired by acquired by acquired by acquired by acquired by investment from

acquired by

acquired by acquired by acquired by acquired by acquired by acquired by acquired by acquired by majority recapitalization recapitalized by acquired by acquired by acquired acquired by by and

acquired by significant equity acquired by acquired by acquired by acquired by acquired by acquired by acquired by minority investment from minority investment from acquired by acquired by strategic investment from acquired by investment from and GFI Energy Group a division of

TECHNOLOGY, MEDIA & TELECOM PAGE | 17 SOFTWARE SECTOR REVIEW | 4Q 2018

Software Bellwethers Microsoft Cisco Oracle IBM SAP Adobe Salesforce HPE

Communication Software Twilio NICE Nuance MobileIron Synchronoss

Enterprise Software Oracle IBM SAP Adobe ADP Intuit Amadeus Constellation OpenText Sage

Human Capital Management (HCM) Workday ADP Paychex Ultimate Paycom Ceridian Paylocity Cornerstone Benefitfocus

Marketing Software Adobe Salesforce HubSpot Acxiom Criteo ChannelAdvisor

PLM & Engineering Software Hexagon AB Autodesk Dassault Synopsys Cadence Ansys PTC Trimble Nemetschek Altair

Supply Chain & Logistics Software Coupa Wisetech Manhattan Descartes SPS Kinaxis Amber Road American

Energy Software AspenTech AVEVA Itron PSI

Financial Software Fiserv Square SS&C MSCI Jack Henry Black Knight Oracle FSS Envestnet Blackline Q2 Holdings

Healthcare IT (HCIT) Cerner Veeva Allscripts Medidata Inovalon HMS Evolent Health NextGen Model N

EdTech / Public Sector Software Constellation Tyler Tech Blackbaud 2U Instructure K12 NIC

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Workday ServiceNow Atlassian Check Point Veeva Ultimate DocuSign Paycom RingCentral

Large-Cap SaaS (cont'd) ZenDesk Guidewire HubSpot RealPage Proofpoint Xero LogMeIn Medidata Coupa Anaplan

Large-Cap SaaS (cont'd) Cornerstone Qualys Five9 Alarm.Com CyberArk Q2 Holdings Avalara Mimecast Eventbrite

Large-Cap SaaS (cont'd) AppFolio

Small-Cap SaaS (≤ $2Bn Mkt Cap) Ebix Benefitfocus Workiva Yext Rapid7 SPS Instructure Model N Domo Castlight Health

Small-Cap SaaS (cont'd) Amber Road

Data & Analytics Verisk Tableau Teradata Pegasystems Verint Inovalon PROS Holdings Talend MicroStrategy

IT Operations Management ServiceNow VMware Arista Citrix Micro Focus F5 Networks SolarWinds New Relic Software AG NetScout

IT Operations Management (cont'd) Progress Radware

Data Storage Iron Mountain NetApp Nutanix Pure Storage Box CommVault Carbonite

IT Security Cisco Symantec VeriSign Palo Alto Check Point Fortinet Trend Micro Proofpoint FireEye Qualys

IT Security (cont'd) CyberArk SailPoint Mimecast Rapid7 Varonis SecureWorks ForeScout Cheetah Mobile

TECHNOLOGY, MEDIA & TELECOM PAGE | 18 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Microsoft Corporation MSFT $734,828 $779,805 87.4% 18.7% 83.1% 22.8% 14.3% 41.3% 6.4x 5.6x 15.5x 12.9x 41.4x Alphabet Inc. GOOGL 643,891 723,465 80.9% (0.8%) 34.3% 24.9% 25.0% 30.5% 4.9x 4.0x 16.2x 10.7x 38.5x Communication Cisco Systems, Inc. CSCO 181,574 194,810 87.6% 13.1% 59.6% 5.2% 3.9% 31.3% 3.6x 3.5x 11.6x 9.8x 154.0x Oracle Corporation ORCL 179,613 162,040 84.4% (4.5%) 23.6% 2.2% 0.9% 42.7% 4.5x 4.5x 10.6x 9.8x 40.7x Enterprise IBM Corporation IBM 157,357 103,303 66.4% (25.9%) (17.4%) 2.6% (1.2%) 20.9% 2.0x 2.0x 9.4x 8.0x 18.1x SAP SE SAP 127,203 122,081 78.3% (11.4%) 25.9% 10.1% 6.2% 27.3% 4.4x 4.2x 16.3x 12.8x 24.4x HCM Adobe Inc. ADBE 112,401 110,435 81.5% 29.1% 140.8% 24.2% 25.1% 34.0% 12.4x 9.9x 36.6x 22.7x 42.6x salesforce.com, inc. CRM 110,433 104,782 85.0% 34.0% 74.7% 26.3% 25.7% 11.0% 8.8x 7.0x 80.1x 30.5x 128.5x Hewlett Packard Enterprise Co. HPE 24,360 18,477 67.8% (8.0%) 49.6% 6.7% 0.5% 16.5% 0.8x 0.8x 4.8x 4.6x 9.2x Marketing Median $157,357 $122,081 81.5% (0.8%) 49.6% 10.1% 6.2% 30.5% 4.5x 4.2x 15.5x 10.7x 40.7x PLM & Engineering

Twilio, Inc. TWLO $10,074 $8,965 88.9% NM NM 53.4% 47.8% NM 18.0x 12.2x NM NM NM SCM & Logistics NICE Systems Ltd. NICE-IL 7,080 6,657 89.8% 18.8% 86.6% 17.7% 6.0% 24.1% 4.8x 4.5x 20.0x 15.0x 37.0x Nuance Communications, Inc. NUAN 5,194 3,805 70.6% (19.1%) (33.5%) 5.8% 2.4% 18.2% 2.5x 2.5x 13.9x 8.2x NM MobileIron, Inc. MOBL 441 484 80.4% NM NM 8.5% 13.5% NM 2.3x 2.1x NM 35.2x NM Energy Synchronoss Technologies, Inc. SNCR 345 261 50.7% NM NM 18.2% (1.6%) NM 1.0x 1.0x NM NM NM Median $5,194 $3,805 80.4% (0.1%) 26.5% 17.7% 6.0% 21.2% 2.5x 2.5x 16.9x 15.0x 37.0x Financial

Oracle Corporation ORCL $179,613 $162,040 84.4% (4.5%) 23.6% 2.2% 0.9% 42.7% 4.5x 4.5x 10.6x 9.8x 40.7x HCIT IBM Corporation IBM 157,357 103,303 66.4% (25.9%) (17.4%) 2.6% (1.2%) 20.9% 2.0x 2.0x 9.4x 8.0x 18.1x EdTech / SAP SE SAP 127,203 122,081 78.3% (11.4%) 25.9% 10.1% 6.2% 27.3% 4.4x 4.2x 16.3x 12.8x 24.4x Public Sector Adobe Inc. ADBE 112,401 110,435 81.5% 29.1% 140.8% 24.2% 25.1% 34.0% 12.4x 9.9x 36.6x 22.7x 42.6x Automatic Data Processing, Inc. ADP 58,670 57,395 85.4% 11.9% 54.8% 8.2% 8.2% 22.6% 4.3x 4.0x 19.1x 16.3x 33.3x Large-Cap SaaS Intuit Inc. INTU 51,699 51,089 84.9% 24.8% 104.0% 15.3% 13.3% 29.4% 8.5x 7.5x 28.9x 20.5x 40.5x Amadeus IT Group AMS-ES 35,903 30,520 72.4% (3.6%) 57.4% 13.0% 10.7% 40.6% 6.2x 5.6x 15.3x 13.9x 24.4x Small-Cap SaaS Constellation Software Inc. CSU-CA 13,502 13,559 74.4% 5.2% 54.1% 23.8% 19.2% 24.8% 4.6x 3.9x 18.6x 14.8x 49.1x Open Text Corporation OTEX 10,691 8,749 80.9% (8.6%) 36.0% 16.5% 2.3% 35.9% 3.8x 3.7x 10.5x 9.7x 36.2x Data & Sage Group plc SGE-GB 9,017 8,315 66.2% (29.0%) (13.9%) 14.2% 1.8% 28.5% 3.6x 3.6x 12.8x 13.5x 21.0x Analytics Median $55,184 $54,242 79.6% (4.1%) 45.0% 13.6% 7.2% 28.9% 4.5x 4.1x 15.8x 13.7x 34.7x IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 19 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Workday, Inc. WDAY $64,214 $34,810 92.5% 56.9% 100.4% 31.4% 31.7% NM 24.5x 18.6x NM 99.2x NM Automatic Data Processing, Inc. ADP 58,670 57,395 85.4% 11.9% 54.8% 8.2% 8.2% 22.6% 4.3x 4.0x 19.1x 16.3x 33.3x Communication Paychex, Inc. PAYX 24,126 23,395 85.7% (4.3%) 23.2% 6.8% 10.7% 40.9% 7.0x 6.3x 17.0x 15.2x 24.2x Ultimate Software Group, Inc. ULTI 7,885 7,657 73.7% 12.2% 25.2% 20.8% 25.3% 11.2% 7.3x 5.8x 65.0x 23.9x 157.0x Enterprise Paycom Software, Inc. PAYC 7,127 7,069 74.6% 52.4% 225.4% 30.3% 31.3% 33.2% 13.4x 10.2x 40.5x 24.6x 59.7x Ceridian HCM Holding, Inc. CDAY 5,511 4,761 76.7% NA NA NA 8.0% 13.4% 7.4x 6.8x 54.8x 31.1x NM HCM Paylocity Holding Corp. PCTY 3,292 3,179 68.1% 27.7% 48.5% 25.3% 26.8% 13.4% 8.3x 6.5x 61.8x 22.7x 66.4x Cornerstone Ondemand, Inc. CSOD 3,266 2,956 85.2% 42.7% 46.0% 15.8% 6.6% 5.7% 6.1x 5.8x 108.6x 25.4x NM Marketing Benefitfocus, Inc. BNFT 1,888 1,461 82.5% 69.3% 25.6% (0.8%) 18.7% NM 7.5x 6.3x NM 85.4x NM Median $7,127 $7,069 82.5% 35.2% 47.3% 18.3% 18.7% 13.4% 7.4x 6.3x 54.8x 24.6x 59.7x PLM & Engineering Adobe Inc. ADBE $112,401 $110,435 81.5% 29.1% 140.8% 24.2% 25.1% 34.0% 12.4x 9.9x 36.6x 22.7x 42.6x SCM & Logistics salesforce.com, inc. CRM 110,433 104,782 85.0% 34.0% 74.7% 26.3% 25.7% 11.0% 8.8x 7.0x 80.1x 30.5x 128.5x HubSpot, Inc. HUBS 5,363 4,933 77.5% 42.2% 123.3% 37.6% 33.5% NM 11.3x 8.4x NM 71.0x NM Acxiom Holdings, Inc. ACXM 3,112 3,000 75.0% 40.2% 84.7% (31.5%) (42.7%) 2.2% 5.1x 9.0x NM NM NM Energy Criteo SA CRTO 1,177 1,527 62.0% (12.7%) (42.6%) 4.0% (56.2%) 11.3% 0.5x 1.2x 4.5x 3.7x 14.7x Channeladvisor Corporation ECOM 303 310 72.6% 26.1% (18.1%) 8.6% 7.5% NM 2.3x 2.2x NM 28.5x NM Financial Median $4,237 $3,966 76.3% 31.5% 79.7% 16.4% 16.3% 11.2% 7.0x 7.7x 36.6x 28.5x 42.6x HCIT

Hexagon AB HEXA.B-SE $150,995 $16,484 73.9% (8.3%) 23.2% 21.3% 5.2% 31.0% 34.3x 32.6x 110.6x 100.7x 17.9x EdTech / Autodesk, Inc. ADSK 29,378 28,167 80.4% 22.7% 111.1% 21.3% 31.9% NM 12.3x 9.3x NM 32.9x NM Public Sector Dassault Systemes SA DSY-FR 28,785 31,004 72.2% 11.4% 47.9% 13.7% 9.4% 30.5% 7.2x 6.6x 23.6x 19.2x 45.0x Synopsys, Inc. SNPS 12,846 12,595 81.5% (1.2%) 84.7% 14.4% 7.7% 19.5% 4.1x 3.8x 21.1x 14.4x 29.1x Large-Cap SaaS Cadence Design Systems, Inc. CDNS 12,736 12,268 91.7% 4.0% 108.9% 8.4% 9.3% 23.8% 6.2x 5.6x 25.9x 18.0x 52.7x ANSYS, Inc. ANSS 11,605 11,944 75.1% (3.2%) 54.5% 11.0% 15.6% 39.1% 9.8x 8.5x 25.1x 18.5x 37.5x Small-Cap SaaS PTC Inc. PTC 10,483 9,838 77.2% 36.4% 139.4% 6.7% 11.5% 13.3% 8.4x 7.6x 63.4x 26.9x 189.2x Trimble Inc. TRMB 9,544 8,265 72.0% (19.0%) 53.4% 19.8% 14.5% 18.5% 3.1x 2.8x 17.0x 12.3x 51.2x Data & Nemetschek SE NEM-DE 4,253 4,215 60.4% 21.8% 118.9% 23.6% 16.8% 28.9% 8.2x 7.0x 28.3x 25.9x 42.3x Analytics Altair Engineering Inc. ALTR 1,931 1,940 62.7% 15.3% NA 18.5% 15.3% 7.4% 5.2x 4.5x 70.0x 35.1x NM IT Operations Median $12,170 $12,106 74.5% 7.7% 84.7% 16.4% 13.0% 23.8% 7.7x 6.8x 25.9x 22.5x 43.7x

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 20 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Coupa Software, Inc. COUP $4,186 $3,737 74.4% 101.3% NA 39.9% 29.0% NM 17.5x 13.6x NM 196.7x NM Wisetech Global Ltd. WTC-AU 3,482 3,581 65.4% 7.5% NA 48.1% 58.5% 37.6% 20.3x 12.8x 53.9x 37.5x 113.3x Communication Manhattan Associates, Inc. MANH 2,718 2,770 67.9% (14.5%) (36.0%) (6.6%) 1.0% 27.2% 4.9x 4.8x 17.9x 21.2x 26.8x Descartes Systems Group Inc. DSG-CA 2,077 2,028 73.4% (7.5%) 31.6% 18.2% 9.7% 32.0% 7.8x 7.1x 24.2x 20.2x 67.5x Enterprise SPS Commerce, Inc. SPSC 1,325 1,455 81.8% 69.5% 17.3% 13.0% 13.7% 26.3% 5.5x 4.8x 20.9x 21.2x 190.7x Kinaxis, Inc. KXS-CA 1,113 1,256 62.6% (21.3%) 42.8% 21.0% 21.0% 22.2% 7.3x 6.0x 32.8x 21.4x 70.6x HCM Amber Road, Inc. AMBR 253 229 79.1% 12.1% 61.7% 8.1% 8.2% NM 3.0x 2.8x NM 43.3x NM American Software, Inc. AMSWA 245 323 55.2% (10.1%) 2.7% 8.5% 5.4% 13.7% 2.1x 2.0x 15.6x 13.2x 34.1x Median $1,701 $1,741 70.7% (0.0%) 24.5% 15.6% 11.7% 26.7% 6.4x 5.4x 22.5x 21.3x 69.0x Marketing

PLM & Aspen Technology, Inc. AZPN $6,060 $5,816 69.1% 24.1% 117.6% 1.1% 16.9% 40.8% 12.3x 10.6x 30.3x 21.3x 38.3x Engineering AVEVA Group plc AVV-GB 4,908 4,971 70.7% 27.1% 99.4% 243.8% (0.2%) 22.2% 5.0x 5.0x 22.4x 17.8x 69.1x SCM & Logistics Itron, Inc. ITRI 2,844 1,864 61.1% (30.7%) 30.7% 19.2% 6.7% 10.7% 1.2x 1.1x 11.3x 9.2x NM PSI Aktiengesellschaft PSAN-DE 239 281 69.8% (19.5%) 27.7% 15.4% 5.1% 8.0% 1.0x 1.0x 12.9x 9.0x 20.3x Median $3,876 $3,417 69.5% 2.3% 65.0% 17.3% 5.9% 16.5% 3.1x 3.1x 17.6x 13.5x 38.3x Energy

Financial Fiserv, Inc. FISV $33,713 $29,284 88.8% 12.1% 60.7% 3.2% 6.8% 35.1% 5.8x 5.5x 16.6x 14.4x 20.4x Square, Inc. SQ 26,399 23,252 55.5% 61.8% 328.5% 45.4% (22.0%) 2.9% 8.9x 11.3x NM 62.5x NM SS&C Technologies Holdings, Inc. SSNC 20,304 11,308 74.0% 11.4% 32.2% 67.8% 72.4% 32.3% 7.4x 4.3x 22.9x 11.3x 53.9x HCIT MSCI Inc. MSCI 14,377 12,979 80.0% 16.5% 104.4% 14.2% 9.9% 53.8% 10.2x 9.3x 19.0x 16.9x 30.9x EdTech / Jack Henry & Associates, Inc. JKHY 9,701 9,780 77.3% 8.2% 62.1% 8.5% 4.5% 35.5% 6.2x 5.9x 17.4x 17.3x 24.6x Public Sector Black Knight Financial Services, Inc. BKFS 8,213 6,732 79.8% 2.1% 36.3% 4.8% 9.5% 44.9% 7.5x 6.8x 16.7x 13.8x 24.7x Oracle Financial Services Software Ltd. 532466-IN 4,238 4,555 77.3% (16.9%) (5.9%) 1.0% 14.3% 40.6% 6.0x 5.3x 14.8x 12.0x 23.8x Large-Cap SaaS Envestnet, Inc. ENV 2,694 2,249 75.9% (1.3%) 64.8% 19.6% 14.8% 11.5% 3.4x 3.0x 29.8x 14.9x 97.0x BlackLine, Inc. BL 2,282 2,238 70.5% 24.8% NA 33.0% 29.4% NM 10.6x 8.2x NM 120.7x NM Small-Cap SaaS Q2 Holdings, Inc. QTWO 2,214 2,149 73.8% 34.5% 87.9% 22.3% 35.8% NM 9.8x 7.2x NM 87.7x NM Median $8,957 $8,256 76.6% 11.8% 62.1% 16.9% 12.1% 35.3% 7.4x 6.4x 17.4x 15.9x 24.7x Data & Analytics

IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 21 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Cerner Corporation CERN 16,961 17,278 71.4% (22.2%) (12.8%) 4.5% 9.3% 27.5% 3.2x 2.9x 11.6x 9.9x 20.7x Veeva Systems Inc VEEV 13,151 12,979 81.9% 61.6% 209.6% 25.2% 23.4% 25.6% 16.1x 13.1x 63.0x 36.7x 67.5x Communication Allscripts Healthcare Solutions, Inc. MDRX 4,856 1,684 59.8% (33.7%) (37.3%) 21.3% 7.8% 10.5% 2.3x 2.2x 22.3x 11.1x NM Medidata Solutions, Inc. MDSO 4,274 4,125 75.9% 6.4% 36.8% 15.3% 23.2% 14.6% 7.0x 5.7x 48.0x 22.9x 80.3x Enterprise Inovalon Holdings, Inc. INOV 3,091 2,161 93.3% (5.5%) (16.6%) 17.4% 24.8% 20.9% 6.1x 4.9x 29.2x 15.3x NM HMS Holdings Corp. HMSY 2,581 2,360 73.7% 66.0% 128.0% 19.5% 8.9% 24.5% 4.4x 4.0x 17.8x 15.4x 49.9x HCM Evolent Health Inc. EVH 1,795 1,563 68.7% 62.2% 64.7% 33.8% 56.2% 8.9% 3.3x 2.1x 36.9x 29.2x NM NextGen Healthcare, Inc. QSII 1,008 980 63.8% 11.6% (6.0%) 1.4% 3.7% 13.1% 1.9x 1.8x 14.5x 12.1x 157.1x Model N, Inc. MODN 446 417 65.1% (16.0%) 18.5% 17.9% (6.5%) NM 2.9x 3.1x NM 35.6x NM Marketing Median $3,091 $2,161 71.4% 6.4% 18.5% 17.9% 9.3% 17.8% 3.3x 3.1x 25.8x 15.4x 67.5x PLM & Engineering Constellation Software Inc. CSU-CA $13,502 $13,559 74.4% 5.2% 54.1% 23.8% 19.2% 24.8% 4.6x 3.9x 18.6x 14.8x 49.1x SCM & Logistics Tyler Technologies, Inc. TYL 7,236 7,214 73.6% 5.0% 6.6% 11.6% 14.1% 23.8% 7.9x 7.0x 33.3x 22.6x 40.6x Blackbaud, Inc. BLKB 3,574 3,055 52.3% (33.4%) (4.5%) 9.7% 5.0% 17.9% 4.2x 4.0x 23.6x 19.3x 46.1x 2U, Inc. TWOU 2,568 2,880 50.4% (22.9%) 77.7% 48.9% 42.7% NM 6.7x 4.7x NM NM NM Energy Instructure, Inc. INST 1,237 1,315 76.3% 13.3% 80.2% 34.5% 31.4% NM 6.3x 4.8x NM NM NM K12 Inc. LRN 942 996 99.8% 55.9% 181.7% 5.9% 9.2% 11.6% 1.0x 0.9x 8.6x 7.1x 36.4x Financial NIC Inc. EGOV 668 831 70.5% (24.8%) (36.6%) 5.5% (6.1%) 25.6% 1.9x 2.0x 7.5x 9.0x 14.2x Median $2,568 $2,880 73.6% 5.0% 54.1% 11.6% 14.1% 23.8% 4.6x 4.0x 18.6x 14.8x 40.6x HCIT

EdTech / Public Sector

Large-Cap SaaS

Small-Cap SaaS

Data & Analytics

IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 22 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers salesforce.com, inc. CRM $110,433 $104,782 85.0% 34.0% 74.7% 26.3% 25.7% 11.0% 8.8x 7.0x 80.1x 30.5x 128.5x Workday, Inc. WDAY 64,214 34,810 92.5% 56.9% 100.4% 31.4% 31.7% NM 24.5x 18.6x NM 99.2x NM Communication ServiceNow, Inc. NOW 51,685 31,924 86.3% 36.6% 105.7% 37.7% 38.1% 3.5% 21.2x 15.3x NM 55.6x NM Atlassian Corp. Plc TEAM 21,550 21,427 90.6% 95.5% 195.8% 40.0% 41.3% 4.7% 22.7x 16.1x NM 61.2x NM Enterprise Check Point Software Technologies Ltd. CHKP 14,725 16,035 85.0% (0.9%) 26.1% 3.4% 4.9% 50.1% 7.8x 7.4x 15.5x 14.0x 19.5x Veeva Systems Inc VEEV 13,151 12,979 81.9% 61.6% 209.6% 25.2% 23.4% 25.6% 16.1x 13.1x 63.0x 36.7x 67.5x HCM Ultimate Software Group, Inc. ULTI 7,885 7,657 73.7% 12.2% 25.2% 20.8% 25.3% 11.2% 7.3x 5.8x 65.0x 23.9x 157.0x DocuSign, Inc. DOCU 7,374 6,623 58.6% NA NA 36.0% 30.3% NM 11.3x 8.7x NM 106.5x NM Paycom Software, Inc. PAYC 7,127 7,069 74.6% 52.4% 225.4% 30.3% 31.3% 33.2% 13.4x 10.2x 40.5x 24.6x 59.7x Marketing RingCentral, Inc. RNG 7,051 6,623 84.0% 70.3% 249.6% 34.4% 31.5% 0.4% 11.3x 8.6x NM 72.3x NM PLM & Zendesk, Inc. ZEN 6,907 6,248 80.2% 72.5% 120.8% 39.0% 41.7% NM 12.6x 8.9x NM 104.7x NM Engineering Guidewire Software, Inc. GWRE 6,013 6,501 74.4% 8.0% 33.4% 38.7% 5.7% 9.4% 8.2x 7.8x 87.3x 40.4x NM HubSpot, Inc. HUBS 5,363 4,933 77.5% 42.2% 123.3% 37.6% 33.5% NM 11.3x 8.4x NM 71.0x NM SCM & Logistics RealPage, Inc. RP 4,854 4,526 72.7% 8.8% 114.7% 31.3% 20.9% 19.2% 5.8x 4.8x 30.5x 17.0x NM Proofpoint, Inc. PFPT 4,801 4,580 64.3% (5.6%) 28.9% 39.3% 31.8% NM 7.2x 5.5x NM 34.8x NM Energy Xero Limited XRO-AU 4,325 4,159 77.2% 32.0% 118.0% 34.2% 38.2% 12.3% 13.0x 9.4x 106.4x 47.7x NM LogMeIn, Inc. LOGM 4,324 4,173 60.5% (28.8%) 21.6% 45.9% 7.3% 30.8% 3.7x 3.4x 12.0x 9.2x 29.3x Financial Medidata Solutions, Inc. MDSO 4,274 4,125 75.9% 6.4% 36.8% 15.3% 23.2% 14.6% 7.0x 5.7x 48.0x 22.9x 80.3x Coupa Software, Inc. COUP 4,186 3,737 74.4% 101.3% NA 39.9% 29.0% NM 17.5x 13.6x NM 196.7x NM Anaplan, Inc. PLAN-US 3,988 3,317 89.4% NA NA 80.7% 35.5% NM 18.3x 13.5x NM NM NM HCIT Cornerstone Ondemand, Inc. CSOD 3,266 2,956 85.2% 42.7% 46.0% 15.8% 6.6% 5.7% 6.1x 5.8x 108.6x 25.4x NM EdTech / Qualys, Inc. QLYS 2,850 2,943 76.0% 25.9% 125.9% 21.6% 23.6% 27.6% 10.7x 8.6x 38.5x 22.3x 64.3x Public Sector Five9, Inc. FIVN 2,709 2,570 88.3% 75.7% 402.5% 27.4% 22.7% 3.7% 11.3x 9.2x NM 53.7x NM Box, Inc. BOX 2,644 2,613 56.7% (20.1%) 20.9% 21.3% 24.3% NM 4.5x 3.7x NM 54.1x NM Large-Cap SaaS Alarm.com Holdings, Inc. ALRM 2,566 2,490 86.2% 37.4% 211.0% 24.4% 10.3% 10.1% 6.4x 5.8x 64.0x 25.1x 178.9x CyberArk Software Ltd. CYBR 2,479 2,674 88.0% 79.1% 64.2% 28.0% 24.9% 13.0% 7.9x 6.3x 60.7x 25.0x 101.1x Small-Cap SaaS Q2 Holdings, Inc. QTWO 2,214 2,149 73.8% 34.5% 87.9% 22.3% 35.8% NM 9.8x 7.2x NM NM NM Avalara Inc AVLR 2,120 2,072 52.4% NA NA 27.3% 49.2% NM 9.9x 6.7x NM NM NM Data & Mimecast Limited MIME 2,078 2,020 71.8% 17.3% 250.3% 32.8% 30.7% 6.9% 7.0x 5.4x 100.9x 31.1x NM Analytics Smartsheet, Inc. Class A SMAR 2,895 2,812 73.2% NA NA 61.8% 50.1% NM 18.3x 12.2x NM NM NM IT Operations Eventbrite, Inc. Class A EB 2,460 2,176 69.1% NA NA 51.1% 76.6% NM 11.9x 6.8x NM 51.3x NM AppFolio Inc APPF 2,093 2,035 64.7% 42.7% 305.6% 32.6% 33.8% 18.9% 11.8x 8.8x 62.5x 35.3x 102.3x Median $4,324 $4,166 7 5.9% 36.6% 110.2% 32.0% 30.5% 11.7 % 11.0x 8.1x 62.8x 36.0x 80.3x Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 23 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Ebix, Inc. EBIX $1,976 $1,331 47.8% (46.3%) 29.8% 37.4% 28.9% 40.6% 4.2x 3.3x 10.4x 10.1x 12.0x Benefitfocus, Inc. BNFT 1,888 1,461 82.5% 69.3% 25.6% (0.8%) 18.7% NM 7.5x 6.3x NM NM NM Communication Workiva, Inc. WK 1,705 1,574 87.9% 67.7% 104.3% 17.4% 19.0% NM 7.3x 6.1x NM NM NM Yext, Inc. YEXT 1,651 1,498 54.6% 23.4% NA 71.4% 37.1% NM 7.8x 5.7x NM NM NM Enterprise Rapid7 Inc. RPD 1,608 1,475 79.1% 67.0% 105.9% 23.8% 24.6% NM 6.9x 5.5x NM 165.0x NM SPS Commerce, Inc. SPSC 1,325 1,455 81.8% 69.5% 17.3% 13.0% 13.7% 26.3% 5.5x 4.8x 20.9x 21.2x 190.7x HCM Instructure, Inc. INST 1,237 1,315 76.3% 13.3% 80.2% 34.5% 31.4% NM 6.3x 4.8x NM NM NM Model N, Inc. MODN 446 417 65.1% (16.0%) 18.5% 17.9% (6.5%) NM 2.9x 3.1x NM 35.6x NM Domo, Inc. Class B DOMO 409 517 68.0% NA NA 45.6% 54.3% NM 3.8x 2.4x NM NM NM Marketing Castlight Health, Inc. CSLT 266 303 36.5% (42.1%) (49.2%) 21.7% 5.6% NM 1.8x 1.7x NM 64.8x NM PLM & Amber Road, Inc. AMBR 253 229 79.1% 12.1% 61.7% 8.1% 8.2% NM 3.0x 2.8x NM 43.3x NM Engineering Median $1,325 $1,331 76.3% 18.4% 29.8% 21.7% 19.0% 33.5% 5.5x 4.8x 15.7x 39.5x 101.3x SCM & Logistics

Energy

Financial

HCIT

EdTech / Public Sector

Large-Cap SaaS

Small-Cap SaaS

Data & Analytics

IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 24 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Verisk Analytics Inc VRSK $20,721 $17,950 86.5% 13.6% 41.8% 13.0% 8.8% 47.4% 8.8x 8.1x 18.6x 16.9x 27.3x Splunk Inc. SPLK 15,750 15,495 80.7% 26.6% 78.3% 38.3% 32.6% NM 9.8x 7.4x NM 51.6x NM Communication Tableau Software, Inc. DATA 10,223 10,028 91.0% 73.4% 27.4% 21.6% 23.7% NM 9.6x 7.7x NM 61.5x NM Teradata Corporation TDC 4,429 4,534 86.7% (0.3%) 45.2% 2.1% (2.2%) 10.2% 2.0x 2.1x 19.7x 11.2x NM Enterprise Pegasystems Inc. PEGA 3,915 3,764 70.4% 1.4% 73.9% 9.3% 7.7% 2.7% 4.5x 4.2x 163.2x 68.5x NM Verint Systems Inc. VRNT 3,241 2,762 80.7% 1.1% 4.3% 9.5% 8.6% 16.2% 2.7x 2.4x 16.4x 10.0x 49.5x HCM Inovalon Holdings, Inc. INOV 3,091 2,161 93.3% (5.5%) (16.6%) 17.4% 24.8% 20.9% 6.1x 4.9x 29.2x 15.3x NM PROS Holdings, Inc. PRO 1,185 1,167 76.4% 18.7% 36.3% 17.5% 18.8% NM 6.2x 5.2x NM NM NM Talend SA TLND 1,140 1,115 50.4% (1.1%) NA 36.6% 32.1% NM 6.0x 4.6x NM NM NM Marketing MicroStrategy Incorporated MSTR 766 1,465 84.5% (2.7%) (28.7%) (0.5%) 1.5% 6.5% 1.5x 1.5x 23.3x 18.2x NM PLM & Median $3,578 $3,263 82.6% 1.3% 36.3% 15.2% 13.8% 13.2% 6.1x 4.7x 21.5x 17.5x 38.4x Engineering

ServiceNow, Inc. NOW $51,685 $31,924 86.3% 36.6% 105.7% 37.7% 38.1% 3.5% 21.2x 15.3x NM 55.6x NM SCM & Logistics VMware, Inc. VMW 49,111 56,208 81.0% 9.4% 142.4% 13.7% 12.9% 29.9% 5.6x 5.0x 18.9x 13.3x 38.0x Arista Networks, Inc. ANET 15,601 15,892 67.2% (10.6%) 170.7% 34.3% 30.2% 32.0% 7.7x 5.9x 24.1x 16.4x 60.8x Energy Citrix Systems, Inc. CTXS 15,137 13,808 87.7% 16.4% 70.1% (0.2%) 4.6% 31.0% 5.1x 4.9x 16.6x 13.8x 109.5x Micro Focus International plc MCRO-GB 11,594 7,372 43.8% (48.4%) (25.1%) 45.7% 79.3% 44.5% 6.0x 3.4x 13.5x 8.2x 42.5x Financial F5 Networks, Inc. FFIV 8,974 9,823 81.1% 23.5% 67.1% 3.4% 4.6% 30.8% 4.2x 4.0x 13.5x 10.4x 21.7x SolarWinds Corp. SWI-US 6,355 4,287 72.6% NA NA 18.5% 14.2% 44.8% 7.8x 6.9x 17.5x 14.1x NM HCIT New Relic, Inc. NEWR 4,603 4,612 70.5% 40.2% 122.3% 35.0% 35.8% NM 11.1x 8.2x NM NM NM Software AG SOW-DE 2,571 2,673 59.3% (35.8%) 25.8% 7.2% 0.3% 30.8% 2.5x 2.5x 8.1x 7.7x 14.9x EdTech / NetScout Systems, Inc. NTCT 2,114 1,836 74.4% (22.4%) (23.0%) (15.9%) 2.5% 14.7% 2.3x 2.2x 15.4x NA 104.5x Public Sector Progress Software Corporation PRGS 1,624 1,594 66.2% (16.6%) 47.9% 0.7% (0.6%) 35.0% 4.0x 4.1x 11.6x 10.2x 25.9x Large-Cap Radware Ltd. RDWR 811 1,029 79.7% 17.1% 48.0% 11.9% 11.7% 4.1% 3.5x 3.2x 85.4x 20.7x 174.0x SaaS Median $7 ,665 $5,992 7 3.5% 9.4% 67 .1% 12.8% 12.3% 30.8% 5.4x 4.5x 16.0x 13.6x 42.5x Small-Cap SaaS

Data & Analytics

IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 25 SOFTWARE SECTOR REVIEW | 4Q 2018

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. NTM Rev. LTM EBITDA NTM EBITDA Earnings Software Bellwethers Iron Mountain, Inc. IRM $17,438 $9,276 85.4% (14.1%) 20.0% 9.7% 5.9% 33.8% 4.2x 4.0x 12.4x 11.3x 38.4x NetApp, Inc. NTAP 13,030 15,030 67.7% 7.9% 124.9% 9.4% 5.7% 21.0% 2.1x 2.0x 10.1x 7.9x 52.0x Communication Nutanix, Inc. NTNX 8,269 7,637 64.1% 17.9% NA 36.3% 31.9% NM 6.9x 5.3x NM NM NM Dropbox DBX 8,124 8,305 47.0% NA NA 27.1% 21.4% NM 6.1x 5.1x NM 20.6x NM Enterprise Pure Storage, Inc. PSTG 3,839 3,885 55.2% 1.4% 3.3% 39.8% 35.7% NM 3.0x 2.2x NM 20.1x NM Box, Inc. BOX 2,644 2,613 56.7% (20.1%) 20.9% 21.3% 24.3% NM 4.5x 3.7x NM NM NM HCM CommVault Systems, Inc. CVLT 2,392 2,735 81.3% 12.6% 50.2% 5.6% 7.3% 3.1% 3.4x 3.1x 109.2x 15.7x NM Carbonite, Inc. CARB 846 873 57.9% 0.6% 157.8% 21.6% 19.1% 16.5% 3.0x 2.5x 18.2x 8.9x 166.9x Median $5,981 $5,761 61.0% 1.4% 35.5% 21.4% 20.2% 18.8% 3.8x 3.4x 15.3x 13.5x 52.0x Marketing

PLM & Cisco Systems, Inc. CSCO $181,574 $194,810 87.6% 13.1% 59.6% 5.2% 3.9% 31.3% 3.6x 3.5x 11.6x 9.8x 154.0x Engineering Symantec Corporation SYMC 19,253 12,072 63.6% (32.7%) (10.0%) 3.9% 3.3% 25.7% 4.1x 3.9x 15.8x 10.0x 10.2x SCM & Logistics VeriSign, Inc. VRSN 18,767 17,926 83.9% 29.6% 69.7% 4.1% 5.6% 66.4% 15.6x 14.8x 23.5x 20.6x 35.6x Palo Alto Networks, Inc. PANW 18,185 17,871 78.6% 30.0% 6.9% 29.7% 25.4% 1.7% 7.5x 6.0x NM 22.3x NM Check Point Software Ltd. CHKP 14,725 16,035 85.0% (0.9%) 26.1% 3.4% 4.9% 50.1% 7.8x 7.4x 15.5x 14.0x 19.5x Energy Fortinet, Inc. FTNT 11,114 11,999 74.6% 61.2% 126.0% 18.7% 20.1% 18.2% 6.5x 5.4x 35.7x 21.2x 99.5x Trend Micro Incorporated 4704-JP 6,214 7,589 81.9% (4.1%) 32.8% 8.0% 11.2% 32.5% 4.3x 3.9x 13.3x 12.0x 32.0x Financial Proofpoint, Inc. PFPT 4,801 4,580 64.3% (5.6%) 28.9% 39.3% 31.8% NM 7.2x 5.5x NM 34.8x NM FireEye, Inc. FEYE 3,416 3,194 78.7% 14.2% (21.8%) 11.2% 9.3% NM 4.2x 3.8x NM 29.4x NM HCIT Qualys, Inc. QLYS 2,850 2,943 76.0% 25.9% 125.9% 21.6% 23.6% 27.6% 10.7x 8.6x 38.5x 22.3x 64.3x CyberArk Software Ltd. CYBR 2,479 2,674 88.0% 79.1% 64.2% 28.0% 24.9% 13.0% 7.9x 6.3x 60.7x 25.0x 101.1x EdTech / SailPoint Technologies SAIL 2,087 2,062 67.9% 62.0% NA 46.6% 24.5% 8.2% 8.8x 7.0x 106.8x NM NM Public Sector Mimecast Limited MIME 2,078 2,020 71.8% 17.3% 250.3% 32.8% 30.7% 6.9% 7.0x 5.4x 100.9x 31.1x NM Large-Cap Rapid7 Inc. RPD 1,608 1,475 79.1% 67.0% 105.9% 23.8% 24.6% NM 6.9x 5.5x NM 165.0x NM SaaS Varonis Systems, Inc. VRNS 1,563 1,559 63.7% 9.0% 181.4% 28.9% 24.3% NM 6.1x 4.9x NM NM NM Small-Cap SecureWorks Corp. SCWX 1,349 1,380 89.0% 90.4% NA 9.1% 11.2% NM 2.7x 2.4x NM 70.2x NM SaaS ForeScout Technologies, Inc. FSCT 1,144 1,114 63.5% (18.5%) NA 67.2% 24.6% NM 4.1x 3.3x NM NM NM Data & Cheetah Mobile, Inc. CMCM 496 876 33.6% (49.4%) (61.9%) 6.0% 1.6% 14.8% 0.7x 0.7x 4.5x 4.6x 4.0x Analytics Median $3,133 $3,068 7 7 .3% 15.7 % 59.6% 20.1% 21.8% 22.0% 6.7 x 5.4x 23.5x 22.3x 35.6x IT Operations

Data Storage

IT Security

TECHNOLOGY, MEDIA & TELECOM PAGE | 26 SOFTWARE SECTOR REVIEW | 4Q 2018

Harris Williams has a broad range of industry expertise, which create powerful opportunities. Our clients benefit form our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries.

Aerospace, Defense & Building Products Business Consumer Energy, Power Healthcare Industrials Specialty Technology,Technology, Transportation Government Services & Materials Services & Infrastructure & Life Sciences Distribution MediaMedia & Telecom & Logistics

One International Place 1001 Haxall Point Bockenheimer Landstrasse 33-35 Suite 2620 9th Floor 60325 Frankfurt Boston, Massachusetts 02110 Richmond, Virginia 23219 Germany Phone: +1 (617) 482-7501 Phone: +1 (804) 648-0072 Phone: +49 069 3650638 00

1900 East 9th Street 575 Market Street 63 Brook Street 20th Floor 31st Floor London W1K 4HS, England Cleveland, Ohio 44114 San Francisco, California 94105 Phone: +44 (0) 20 7518 8900 Phone: +1 (216) 689-2400 Phone: +1 (415) 288-4260

222 South 9th Street 800 17th St. NW Suite 3350 2nd Floor Minneapolis, Minnesota 55402 Washington, D.C. 20006 Phone: +1 (612) 359-2700 Phone: +1 (202) 207-2300

TECHNOLOGY, MEDIA & TELECOM PAGE | 27 SOFTWARE SECTOR REVIEW | 4Q 2018

1. FactSet.

2. PNC Capital Markets.

3. S&P LCD stats.

4. PitchBook.

5. HW proprietary transaction information.

Harris Williams (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams Ltd, which is private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US. The information and views contained in this report were prepared by Harris Williams (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent. Copyright© 2019 Harris Williams, all rights reserved.

TECHNOLOGY, MEDIA & TELECOM PAGE | 28