The Software Industry Financial Report

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Q2 2015 The Software Industry Financial Financial Report

SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS

About Software Equity Group Leaders in Software M&A 5 Extensive Global Reach 6 Leading Market Position Software Industry Macroeconomics U.S and Global GDP 8 U.S. GDP and Unemployment 9 Global IT Spending 10 E-Commerce and Digital Advertising Spend 11 Stock Market Performance 12 Public Software Financial and Valuation Performance The SEG Software Index 14 The SEG Software Index: Financial Performance 15-17 The SEG Software Index: Public Market Multiples 18-19 The SEG Software Index by Product Category 20 The SEG Software Index by Product Category: Financial Performance 21 The SEG Software Index by Product Category: Public Market Multiples 22 Public SaaS Company Financial and Valuation Performance The SEG SaaS Index 24 The SEG SaaS Index: Financial Performance 25-27 The SEG SaaS Index: Public Market Multiples 28-30 The SEG SaaS Index by Product Category: Financial Performance 31 The SEG SaaS Index by Product Category: Public Market Multiples 32 Public Internet Company Financial and Valuation Performance The SEG Internet Index 34 The SEG Internet Index: Financial Performance 35-37 The SEG Internet Index: Public 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: Public 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 Multiples by Product Category 49 SaaS M&A Deal Volume and Exit Multiples 50 SaaS M&A by Product Category 51 SaaS M&A 2Q15 Transactions 52-55 Internet M&A: Deal Volume and Exit Multiples 56 Internet M&A: By Product Category 57 Appendix SEG Software Index Key Metrics 59-62 SEG Software Index Key Metrics by Product Category 63-64 SEG SaaS Index Key Metrics 65-66 SEG SaaS Index Key Metrics by Product Category 67 SEG Internet Index Key Metrics 68-70 SEG Internet Index Key Metrics by Product Category 71 2Q15 Select Public Sellers 72 2Q15 Mega Deals 73 2Q15 Most Active Buyers 74 About Software Equity Group 75

ABOUT SOFTWARE EQUITY GROUP

• Industry leading boutique investment bank, founded in 1992, representing public and private software and 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 private and public companies throughout 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 Equity Reports and Monthly Flash Reports 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, public accountants, etc. in 76 countries.

Global GDP (% YoY Change) U.S. GDP (% YoY Change)

Global gross domestic product (GDP) growth (YOY) from Annual growth of the Real Gross Domestic Product (GDP) 2004 to 2015 of the United Stats from 2006 to 2015 7% 4% 3.0% 2.7% 5.7% 3% 2.5% 6% 5.6% 5.4% 2.3% 2.2% 2.4% 1.8% 2% 1.6% 5% 4.1% 1% 4% 3.4% 3.3% 3.3% 3.3% 3.0% 0% 3% -1% -0.3% 2% -2%

1% -3% 0.1% -2.8% 0% -4% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

• In January, the IMF forecasted a gradually improving global economy that would remain vulnerable to a host of economic and geopolitical risks. It predicted global GDP would grow 3.5% in 2015. • The IMF’s July Update trimmed its April estimate to an annualized GDP growth rate of 3.3% in 2015, essentially the same lackluster rate that has prevailed for the past three years. In doing so, the IMF reaffirmed the main risks highlighted in April remain relevant. Risks noted in April included continued pay down of public, corporate and household debt, which could slow spending; weakened oil prices that has adversely impacted producer nations, but increased disposable income in oil importing countries (ie. U.S., China, Euro area and India); and significant currency exchange rate fluctuations which could impact manufacturing imports and exports, especially in the U.S, the Euro Zone, and Japan. • The IMF acknowledged its forecasts could also be imperiled by recent geopolitical events and renewed threats of defaults and recessions among EEC member countries.

Sources: Worldbank, The Economist, Council of Economic Advisors, BEA and Statista SOFTWARE EQUITY GROUP | Q2 2015 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © Software Equity Group, LLC, All Rights Reserved 8 U.S. GDP AND UNEMPLOYMENT

GDP % Growth Unemployment Rate 12.0%

10.0%

8.0%

6.0% 4.6% 4.5% 4.6% 5.0% 3.9% 3.9% 3.5% 4.0% 2.7% 2.9% 2.7% 2.5% 2.3% 2.5% 2.2% 2.3% 1.7% 1.6% 1.8% 2.0% 1.3% 0.8% 0.6% -0.5% 0.1% 0.0% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 -2.0% -1.5% -2.1% -4.0%

-6.0% -5.4% -8.0%

• Early forecasts were for U.S. GDP to grow an average of 3.0% in 2015. Although most economists had revised their projection downward to 1% by the close of Q1, the Bureau of Economic Analysis announced in July that GDP grew 2.3% in the second quarter. • The Wall Street Journal’s survey of more than 60 leading economists now projects 3.1% growth in Q3, and 3.0% growth in the final quarter of 2015. • The Labor Department reported the unemployment rate at the end of 2Q15 was 5.3%, a noteworthy decline from 2Q14’s 6.2%, and the lowest unemployment rate since 2008. The Wall Street Journal’s survey of economists projects the unemployment rate will continue to decline, reaching 5.1% by year end, and dropping to 4.8% by year end 2016. • The labor participation rate closed 2Q15 at 62.6% and has been flat for the past 12 months, a 35 year low that can be attributed to an aging baby boomer population that is beginning to retire. This leads to a natural demographic decline in the participation rate.

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

8.0% 6.0% 6.0%

2.0% 2.0% 2.1% 2.5%

2008 2009 2010 2011 2012 2013 2014 2015 (F)

-10.0%

• Assuming reasonably stable currency exchange rates, Gartner projected at the outset of 2015 that worldwide IT spending would grow at a constant currency rate of 3.7% in 2015. That was before the significant rise in value of the U.S. dollar against most other currencies, a phenomenon that has had a materially adverse effect on worldwide IT spending. • By late Q1, Gartner projected global IT spending would shrink 1.3% in 2015, and in Q2 revised that estimate to -5.5%, blaming the rising U.S. dollar. In constant currency terms, however, Gartner estimates global IT spending in 2015 will decline only 0.6% to 2.5% growth. • Forrester estimates software will account for 27% 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 enterprise app stores.”

U.S. E-Commerce Spend Worldwide Digital Advertising Spend

Mobile E-Commerce Spend ($B) $90.0 25.0% $16 Digital Advertising Spend ($B) YoY Percent Change 25% Desktop E-Commerce Spend ($B) $14 20% $80.0 Aggregate YoY Percent Change 20.0% $12 15%

$70.0

$10 15.0% 10% $60.0 $8 5%

10.0% YoY Change YoY YOY Change YOY $6 $50.0

Commerce Spend ($B) Spend Commerce 0% -

E $4 5.0% $40.0 Digital Advertising Revenue ($B) Revenue Advertising Digital $2 -5%

$30.0 0.0% $0 -10%

• E-commerce retail sales in the U.S. totaled $72.2 billion in 1Q15 (the latest data available), up 14% YoY. The increase marks the 22nd consecutive quarter of YoY growth, and the 18th consecutive quarter of double digit growth. • Mobile commerce accounted for $11.1 billion, or 15.4% of the 1Q15 E-Commerce total, according to comScore. In 1Q15, mobile commerce grew 52.1% YoY, while desktop commerce expanded only 8.9%. • Since total consumer discretionary spending grew by only 4.4% in 1Q15, the 15%+ growth in E-commerce spending affirms a significant and growing shift from retail to online consumer spending. • According to Forrester, U.S. digital ad revenues will total $37.6 billion in 2019, with the most growth coming from video advertising. Forrester predicts video advertising on desktop devices alone will grow 14% annually until 2019, when it will contribute 55% of total desktop display ad revenue across the Web.

DOW S&P NASDAQ SEG SW Index SEG SaaS SEG Internet Index 20.0%

15.0%

10.0%

5.0%

0.0%

(5.0%)

(10.0%) Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015

• The DOW, S&P and NASDAQ, as well as our SEG Software, Internet, and SaaS indices, all declined early in the first quarter, rebounded by the end of Q1, and oscillated throughout Q2. • The S&P and DOW closed the second quarter -0.1% and -1.1%, respectively. • The SEG Software Index closed 2Q15 up 9.6% year-to-date, the best return among the six tracking indices and well above the return of the tech heavy NASDAQ which ended Q2 up 5.3%. The median stock performance of the SEG Software Index has improved steadily since October 2014. For some investors, these large, slow growing but quite profitable on-premise software providers are a hedge against smaller, high growth cloud, SaaS and Internet providers, and are seen as ripe for resurgence when GDP growth and IT spending gain momentum. • Concomitantly, the SEG SaaS Index gained only 4.7% by the close of 2Q15, in large part due to investor concerns that their heavy investments in sales and marketing, which have contributed to significant, ongoing operating losses, were not translating into accelerated growth. Their concerns were somewhat validated when public SaaS companies posted a 29.9% median revenue growth in 2Q15, the lowest in the past three quarters. • The SEG Internet Index lagged our other two tracking indices, posting a median 3.9% YTD return in 2Q15.

PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - Software: Median Metrics • The SEG Software Index tracks public software companies that Measure 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.2x 2.9x 2.9x 3.0x 3.1x primarily offer on-premise software under a perpetual license with EV/EBITDA 14.8x 13.9x 14.6x 15.3x 16.5x annual M&S. EV/Earnings 26.8x 25.6x 25.5x 27.5x 29.4x • The SEG Software Index is currently comprised of 135 public Gross Profit Margin 65.7% 65.0% 65.6% 65.6% 65.6% software companies*. EBITDA Margin 17.4% 17.6% 18.1% 18.3% 18.3% Net Income Margin 8.4% 8.8% 8.3% 8.3% 7.9% • The number of public companies comprising the SEG Software Index TTM Revenue Growth 8.2% 8.0% 8.2% 8.4% 8.1% has declined steadily over the past ten years, as many on premise TTM Total Revenue ($M) $532.8 $573.2 $584.9 $584.9 $593.6 providers have been acquired, taken private or migrated to a SaaS TTM EBITDA Growth 5.4% 6.0% 4.7% 5.1% 5.8% business model. TTM Total EBITDA ($M) $95.3 $103.6 $103.7 $102.3 $100.3 Cash & Eq ($M) $221.0 $196.8 $213.1 $213.1 $211.6 Current Ratio 2.0 2.1 2.0 1.9 1.8 Debt / Equity Ratio 7.8% 5.9% 10.5% 11.0% 8.6%

* 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

Median Revenue Performance – Quarterly TTM Revenue Growth Rate Distribution – 2Q15

TTM Total Revenue ($M) TTM Revenue Growth 33% $700 8.6%

25% 23% 8.4%

$600

8.2% $500 8.0% $400 10% 7.8% 7% $300 Companies of % 7.6% 2% $200

7.4%

TTM TotalTTMRevenue TTM RevenueGrowth TTM $100 7.2% <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% $0 7.0% TTM Revenue Growth 2Q14 3Q14 4Q14 1Q15 2Q15 • After seven consecutive quarters of slowing growth, the median TTM revenue growth rates of public on-premise software companies rose modestly in 8.4% in 1Q15, but declined to 8.1% in Q2. • One in four of the public on-premise software companies comprising the SEG Software Index reported negative revenue growth in Q2; more than half grew revenue by a meager 10% or less. • Predictably, the few public on-premise software companies growing revenue 30%+ were focused on three of IT’s hottest product categories: security (Cyberark Software, 67.4%), and business intelligence (Splunk, 48.1%) and mobility (Pandora Media, 30.4%). • The consolidation of on-premise software companies over the past 15 years has resulted in an ecosystem of behemoths whose growth has stalled due to much more focused, prioritized and constrained enterprise IT spending; a current preference for point (vs. suite) solutions; and a shift toward cloud-based computing and subscription pricing, which has negatively impacted revenue recognition. SOFTWARE EQUITY GROUP | Q2 2015 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © Software Equity Group, LLC, All Rights Reserved 15 THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE

Median EBITDA Margin Performance – Quarterly TTM EBITDA Margin Distribution – 2Q15

18.3% 18.3% 17.6% 18.1% 25%

17.4% 23%

18%

14% 15%

% of Companies of % 5% EBITDA Margin EBITDA

<= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 • Slowed growth has prompted most on-premise companies to maintain a keen eye on expenses. The median EBITDA margin of public on-premise software companies has remained steady at 18.3%, essentially unchanged over the past three quarters. • Fewer than half of public on-premise software companies achieved EBITDA margins of 20% or better in the second quarter. • Check Point Software, a security software provider, was a standout exception, leading the pack once again in 2Q15 with an EBITDA margin of 54.3%. Check Point’s extraordinary profitability can be attributed in part to a strong, well-performing channel that reduces its cost of sales. Curiously, Check Point also spends substantially less on R&D (8.9% of revenue) compared to their category peers (19.7% of total revenue). • We anticipate the median EBITDA margin of public software companies will hold steady in 3Q15, in large part due by keeping R&D spending relatively flat while modestly increasing S&M spending.

Median Operating Ratios Median Margin Performance

S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) Gross Profit Margin EBITDA Margin Net Income Margin 25% 70% 65.7% 65.0% 65.6% 65.6% 65.6%

60% 20%

50%

15% 40%

30%

10% % Margin % of Revenue % of 18.1% 18.3% 18.3% 20% 17.4% 17.6% 5% 8.4% 8.8% 8.3% 8.3% 7.9% 10%

0% 0% 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15

• OpEx: Median spending on operations by public on-premise software companies in 2Q15 was consistent with historic norms: 15.1% for Research & Development, 21.6% for Sales & Marketing, and 10.8% for General & Administrative. • Over the past year, median S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat. • Median S&M spending as a percent of total revenue by public on-premise public software companies lagged far behind their SaaS counterparts, which continued to place significant bets on new customer acquisition (21.6% for on-premise vs. 40.2% for SaaS). • Despite declining revenue growth over the past several quarters, the median EBITDA margin of public on-premise software providers has modestly improved over the past four quarters, reaching 18.3% in 2Q15.

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 & $1 billion Revenue Between $100 million & $500 million Revenue Less Than $100 million 16.5x 4.0x 15.3x 14.8x 14.6x

13.9x 3.5x

3.0x 2.5x

Multiple 2.0x

1.5x Median 3.2x 3.1x 1.0x 2.9x 2.9x 3.0x EV/Revenue Median 0.5x 0.0x 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15

• The median EV/Revenue market multiple for public on-premise • The EV/Revenue multiples of smaller public on-premise software software providers was 3.1x in 2Q15. companies – those with revenues <$100 million – lagged well behind their larger counterparts. • The ~3.0x median EV/Revenue multiple that’s prevailed over the past five quarters, despite lackluster growth, reflects the importance of • After converging in 1Q15, the EV/Rev median public market stability and profitability to investors in the current market. multiples of mid size, large and very large on-premise software companies diverged in Q2, another indication that investors are • The higher EV/Rev multiple premium enjoyed by the largest on- comforted by size and incumbency and willing to ignore slowed premise software providers grew in the second quarter, surpassing growth amidst economic uncertainty. that of their smaller counterparts. • We believe investor enthusiasm for the largest on-premise providers will hold steady for the remainder of 2015, absent a significant decline in operating profitability or a surge in SaaS company growth rates. Higher valuations, however, will depend on the ability of these household names to redefine their missions, redirect their resources, and better capitalize on their significant number of blue-chip customers.

THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q15 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q15

4.5x 4.5x 7.4x 4.2x

4.0x

3.0x

2.3x 3.6x 3.9x

2.4x

1.7x 1.5x

Median EV/Revenue Median EV/Revenue Median

<= 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

• While market performance of public on-premise public software • As in quarters past, the median market multiples of on-premise companies remained closely correlated with their TTM revenue software companies generally reflected their median operating growth rates in Q1, the opposite was true in Q2, with higher margins. EV/Revenue multiples awarded to companies growing modestly than • On premise providers with a median EBITDA margin >40% were those reporting aggressive growth. deemed by investors to be almost five times more valuable than those • A closer look reveals this may not be an aberration. The higher generating EBITDA margins less than 10%. growth rate companies are mostly newer and smaller than their • On-premise providers with EBITDA margins greater than 40% slower growth counterparts – further confirmation that size and included: Check Point Software (54% EBITDA margin, 9.3x stability are prized in the current market. EV/Revenue multiple); Aspen Technology (41%, 8.1x); MSCI (41%, • Members of Q2’s 40%+ growth club that rewarded investors 7.1x); and Evertec (42%, 6.5x). handsomely in 2Q15 came from the fastest growing product category,

mobile. Select 2Q15 outperformers included: Glu Mobile (97.5% TTM revenue growth, 2.9x EV/Revenue), and Qihoo 360 Technology (82.7% TTM revenue growth, 5.6 x EV/Revenue).

• The SEG Software Index is segmented into 16 product categories. • Among these product categories, market multiples, TTM growth rates and EBITDA margins fluctuate considerably from quarter to quarter. For example, Engineering/PLM providers saw a decline in median EV/Revenue market multiples from 3.8x in 1Q15 to 3.6x in Q2, despite higher growth. Conversely, the median market multiple of public ERP companies jumped more than 15% in Q2 from the prior quarter, despite a decline in their median growth rate. • 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 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 Billing & Service 1.9x 1.8x 1.8x 1.8x 2.0x 10.1x 9.9x 9.1x 9.7x 10.1x 4.8% 8.2% 18.3% 18.3% 7.6% 18.4% 21.1% 26.6% 26.6% 27.1% Management Business Intelligence 3.3x 3.0x 3.3x 3.6x 3.9x 14.9x 15.3x 14.8x 16.5x 18.3x 13.7% 15.4% 10.0% 10.0% 10.0% 16.8% 16.3% 15.7% 15.7% 15.2% Development Platforms 2.4x 1.8x 2.0x 2.2x 2.5x 9.4x 9.5x 8.0x 8.8x 9.5x -0.8% 1.2% 4.1% 4.5% 7.2% 19.2% 19.2% 18.5% 18.5% 18.9% Engineering & PLM 4.3x 4.7x 3.4x 3.8x 3.6x 14.9x 15.6x 16.0x 15.7x 17.2x 8.4% 7.4% 7.4% 8.3% 8.7% 20.0% 19.9% 19.9% 20.9% 21.4% Enterprise Resource 3.6x 3.4x 3.3x 4.0x 4.7x 12.3x 11.9x 11.7x 12.9x 16.6x 2.7% 3.0% 3.4% 2.5% 2.3% 29.5% 28.9% 28.4% 28.4% 28.4% Planning Financial & Accounting 3.6x 3.3x 3.3x 3.5x 4.1x 12.9x 13.2x 14.8x 14.7x 16.8x 4.7% 2.5% 5.2% 5.2% 4.3% 24.3% 26.0% 23.3% 23.3% 22.3% Gaming 1.9x 1.5x 1.7x 1.6x 1.4x 12.7x 13.0x 11.4x 12.5x 12.6x -4.8% 0.2% -2.2% -2.2% 2.5% 15.9% 15.5% 15.9% 15.9% 13.0% Healthcare 2.3x 2.2x 2.4x 2.6x 2.7x 14.2x 15.1x 14.8x 16.4x 16.8x 0.1% 1.1% 3.9% 3.9% 7.1% 14.5% 14.1% 16.0% 16.0% 15.9% IT Conglomerates 3.3x 3.5x 3.5x 3.1x 3.3x 8.6x 9.6x 9.6x 8.8x 9.3x 2.7% 2.2% 3.4% 2.5% -0.1% 33.5% 32.8% 34.2% 34.2% 32.9% Mobile Solutions/Content 2.9x 3.1x 2.9x 2.1x 2.4x 16.2x 18.5x 21.0x 17.7x 17.5x 17.9% 21.1% 22.9% 22.9% 19.1% -0.4% -1.9% 4.2% 4.2% 4.3% Networking & Network 2.9x 2.2x 2.0x 2.2x 2.3x 15.5x 15.7x 15.7x 13.9x 14.3x 5.1% 8.4% 13.5% 16.2% 13.6% 8.0% 8.5% 10.5% 10.2% 10.9% Performance Management Security 3.2x 3.2x 4.6x 3.9x 3.9x 11.6x 15.0x 16.4x 17.2x 17.1x 16.5% 15.2% 17.6% 18.7% 12.6% 11.5% 12.5% 6.7% 6.7% 7.1% Storage, Data Management 2.5x 2.5x 2.6x 2.4x 2.5x 8.2x 9.0x 9.1x 9.3x 9.2x 2.9% 2.1% 2.4% 3.2% 3.4% 18.0% 17.7% 17.5% 17.3% 16.2% & Integration Systems Management 4.5x 5.0x 4.3x 4.1x 4.3x 17.3x 19.2x 18.3x 17.4x 18.3x 13.3% 15.8% 16.2% 16.3% 14.7% 26.0% 25.3% 25.4% 25.4% 26.3% Vertical - Finance 4.2x 4.1x 4.1x 4.4x 4.3x 13.2x 12.4x 13.7x 16.3x 15.5x 4.8% 5.8% 6.2% 6.2% 6.5% 26.0% 28.8% 29.8% 29.8% 30.3% Vertical - Other 3.2x 3.4x 3.6x 4.0x 4.6x 23.4x 24.4x 23.9x 26.4x 30.2x 21.2% 16.6% 16.3% 16.3% 13.3% 13.5% 11.6% 11.9% 11.9% 12.9% Median 3.2x 2.9x 2.9x 3.0x 3.1x 14.8x 13.9x 14.6x 15.3x 16.5x 8.2% 8.0% 8.2% 8.4% 8.1% 17.4% 17.6% 18.1% 18.3% 18.3%

2Q15 Median TTM Revenue Growth 2Q15 YoY Change in Median Revenue Growth

Billing & Service Management 59.0% Billing & Service Management 7.6% Business Intelligence (27.3%) Business Intelligence 10.0% Development Platforms n/a* Development Platforms 7.2% Engineering & PLM 3.3% Engineering & PLM 8.7% Enterprise Resource Planning 2.3% Enterprise Resource Planning (15.1%) Financial & Accounting 4.3% Financial & Accounting (8.0%) Gaming n/a* Gaming 2.5% 5192.6% Healthcare 7.1% Healthcare IT Conglomerates (0.1)% IT Conglomerates (104.8%) Mobile Solutions/Content 19.1% Mobile Solutions/Content 6.8% Networking & Network Performance… 13.6% Networking & Network Performance… 168.8% Security 12.6% Security (23.7%) Storage, Data Management & Integration 3.4% Storage, Data Management & Integration 15.6% Systems Management 14.7% Systems Management 10.9% Vertical - Finance 6.5% Vertical - Finance 36.3% Vertical - Other 13.3% Vertical - Other (37.2%)

2Q15 Median TTM EBITDA Margin 2Q15 YoY Change in Median EBITDA Margin

Billing & Service Management 27.1% Billing & Service Management 47.1% Business Intelligence 15.2% Business Intelligence (9.6%) Development Platforms 18.9% Development Platforms (1.2%) Engineering & PLM 21.4% Engineering & PLM 7.2% Enterprise Resource Planning 28.4% Enterprise Resource Planning (3.8%) Financial & Accounting 22.3% Financial & Accounting (8.4%) Gaming 13.0% Gaming (18.4%) Healthcare 15.9% Healthcare 9.2% 32.9% IT Conglomerates IT Conglomerates (1.8%) Mobile Solutions/Content Mobile Solutions/Content 4.3% n/a* Networking & Network Performance… Networking & Network Performance… 10.9% 37.4% Security 7.1% Security (38.2%) Storage, Data Management & Integration 16.2% Storage, Data Management & Integration (10.2%) Systems Management 26.3% Systems Management 1.4% Vertical - Finance 30.3% Vertical - Finance 16.7% Vertical - Other 12.9% Vertical - Other (4.9%)

* YoY Change in Median EBITDA Margin or YoY Change in Revenue Growth not applicable.

2Q15 Median EV/Revenue Multiples Median 2Q15 YoY Change in EV/Revenue

Billing & Service Management Billing & Service Management 2.0x 5.1% Business Intelligence 3.9x Business Intelligence 18.9% Development Platforms 2.5x Development Platforms 3.9% Engineering & PLM 3.6x Engineering & PLM (16.7%) Enterprise Resource Planning 4.7x Enterprise Resource Planning 28.7% Financial & Accounting 4.1x Financial & Accounting 12.0% Gaming 1.4x Gaming (26.3%) Healthcare 2.7x Healthcare 18.6% IT Conglomerates 3.3x IT Conglomerates 1.3% Mobile Solutions/Content 2.4x Mobile Solutions/Content (15.4%) Networking & Network Performance… 2.3x Networking & Network Performance… (20.0%) Security 3.9x Security 22.4% Storage, Data Management & Integration 2.5x Storage, Data Management & Integration 2.0% Systems Management 4.3x Systems Management (4.0%) Vertical - Finance 4.3x Vertical - Finance 2.1% 43.5% Vertical - Other 4.6x Vertical - Other

• In 2Q15, nine product categories achieved median EV/Revenue multiples above the SEG Software Index median of 3.3x, led by Enterprise Resource Planning (4.7x), Vertical Other (4.6x), and Vertical Finance (4.3x). • The Systems Management and Security categories are benefitting from the continuing shift to cloud and mobile computing, which require new approaches to scaling, managing and securing these new environments. • The Gaming category closed 2Q15 with a median EV/Revenue multiple of 1.4x, the lowest of our 16 product categories. We’ve predicted in past Reports that gaming multiples would improve as gaming providers - caught flat footed by the explosion of mobile and Internet gaming - repositioned with online and mobile games suitable for a multi-device world. It hasn’t happened – yet. • The median TTM revenue growth rate accelerated in 11 of 16 product categories in 2Q15. The eleven categories with higher YoY EV/Revenue multiples included: Billing & Service Management, Business Intelligence, Development Platforms, Enterprise Resource Planning, Financial & Accounting, Healthcare, IT Conglomerates, Security, Storage, Vertical – Finance (i.e. software providers focused on the financial services vertical), and Vertical - Other.

PUBLIC SaaS COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - SaaS: Median Metrics Measure 2Q14 3Q14 4Q14 1Q15 2Q15 • The SEG SaaS Index tracks public companies that primarily offer EV/Revenue 7.0x 6.9x 5.8x 5.5x 6.0x hosted, on-demand software under a subscription and/or transaction EV/EBITDA 57.0x 41.5x 29.2x 37.3x 49.3x based pricing model. EV/Earnings 75.4x 119.5x 70.4x 115.3x 70.0x Gross Profit Margin 65.3% 65.6% 65.1% 65.1% 65.3% EBITDA Margin -8.9% -11.2% -13.2% -13.1% -11.3% • The SEG SaaS Index is currently comprised of an all-time high of 65 Net Income Margin -17.0% -15.9% -21.2% -21.2% -16.9% publicly traded, pure-play SaaS companies.* TTM Revenue Growth 30.1% 29.8% 32.2% 32.1% 29.9% TTM Total Revenue ($M) $117.8 $125.4 $150.0 $150.0 $163.7 TTM EBITDA Growth 19.4% 10.7% 24.1% 24.1% 29.7% TTM Total EBITDA ($M) -$8.4 -$7.6 -$9.4 -$10.2 -$9.4 Cash & Eq ($M) $79.3 $85.1 $112.6 $112.6 $106.8 Current Ratio 2.2 2.1 2.0 2.1 1.9 Debt / Equity Ratio 4.2% 3.4% 3.0% 3.0% 4.2%

* See appendix for complete list of companies in the SEG SaaS Index

Median Revenue Performance – Quarterly TTM Revenue Growth Rate Distribution– 2Q15

TTM Total Revenue ($M) TTM Revenue Growth 29% $180 32.5%

24%

$160 32.0%

$140 31.5% $120 14% 14% 31.0% 12% $100

30.5% % of Companies of % $80 5% 30.0% $60 2% 29.5%

TTM Total Revenue Total TTM $40 TTM Revenue Growth Revenue TTM $20 29.0% <= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 10% <= 20% <= 30% <= 40% <= 50% $0 28.5% 2Q14 3Q14 4Q14 1Q15 2Q15 TTM Revenue Growth

• The median TTM revenue growth rate of Public SaaS companies in 2Q15 was 29.9%, down just a tick below 30.1% in 2Q14. We anticipate only marginally higher growth in Q3, mostly due to floundering GDP growth and IT spending. • Median growth rates alone do not capture the standout performances of the most successful SaaS companies. Nearly one in four public SaaS companies grew TTM revenue by 50% or more. As further testament to the widespread and ramping adoption of SaaS, these outperformers come from a variety of product categories including Human Capital Management, Life Sciences, Marketing, Security, and Business Intelligence. Especially noteworthy were: Castlight Health (173.5%); FireEye (130.3%); Medical Transcription Billing (102.3%); DealerTrack (78.5%); Tableau Software (75.4%); New Relic (74.4%); Zendesk (72.4%); and Workday (63.7%). • The median TTM revenue of public SaaS companies was $163.7M in 2Q15, a significant YoY increase from 2Q14’s $117.8M. In part, the revenue growth is attributable to wider, and deeper, enterprise adoption of hosted solutions; and in part the revenue growth is inorganic, as the group has become increasingly acquisitive. • Salesforce continued to lead the SaaS revenue pack by several lengths, reporting 2Q15 TTM revenue of $5.7B, almost 6x greater than the next largest public SaaS company. Still, many public SaaS companies reached critical revenue mass (>$350 million) in 2Q15, a feat made more difficult by a revenue model that requires deferring a significant percentage of booked revenue. SaaS providers with revenues of $350M+ can now be found among a wide array of product categories and industry sectors, including Workday (HCM/Financial, $879.1M); DealerTrack (Automotive, $948.4M); RealPage (Real Estate, $414.5M); and Service-Now (IT Service Mgmt., $755.4M).

Median EBITDA Margin Performance – Quarterly TTM EBITDA Margin Distribution– 2Q15

59%

2Q14 3Q14 4Q14 1Q15 2Q15

18% 16% % of Companies of %

4% 4% EBITDA Margin EBITDA (8.9%)

(11.2%) (11.3%) <= 0% > 0% > 10% > 20% > 30% <= 10% <= 20% <= 30% (13.2%) (13.1%) TTM EBITDA Margin

• The median EBITDA margin of public SaaS companies remained negative but improved, closing 2Q15 at -11.3%. • Almost three out of five (59%) public SaaS companies are unprofitable, and nine out of ten have EBITDA margins below the 20% median of their on-premise software peers. • For the time being, investors are untroubled by the operating losses, if the strong correlation between their EV/Revenue market multiples and TTM revenue growth rates (see slide 29) is any indication. • Apparently, the public markets have come to understand the GAAP compliant P&L statements of many public SaaS companies, which seem to indicate they’re suffering significant losses and hemorrhaging cash, don’t tell the whole story. Many are not only cash flow positive, but flushed with revenue from prepaid subscription fees that require deferred recognition under GAAP. As example, for the year ended June 2015, NetSuite reported a $109.6M net loss, but was cash flow positive from operations to the tune of $89.1M.

Median Operating Ratios Median Margin Performance

S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) Gross Profit Margin EBITDA Margin Net Income Margin 45% 70% 40% 60% 35%

50% 30%

25% 40%

20% 30%

% of Revenue % of 15% 20%

10% % Margin 5% 10%

0% 0% 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 -10%

-20%

• OpEx: Public SaaS companies continue to spend heavily on sales & marketing in order to drive revenue growth and capture market share. • In 2Q15, public SaaS companies invested a median 40.2% of total revenue on sales & marketing, almost double their on-premise counterparts. • R&D spending as a percent of revenue remained almost flat in 2Q15, declining to 19.5% from 19.7% a year earlier. Public SaaS companies in 2Q15 spent 4.4% more on R&D as a percent of revenue than their on-premise peers, as they endeavored to expand their offerings, enhance their technology and platforms, and address new markets • On a GAAP basis, operating losses of public SaaS companies grew throughout 2014, bottoming out at a -13.2% median EBITDA margin in 4Q14. After barely improving in 1Q15 (-13.1%), the median public SaaS company EBITDA margin inched closer to break even in 2Q15 at -11.3%.

Median EV/Revenue and EV/EBITDA Multiples – Quarterly EV/Revenue Multiple Distribution– 2Q15

EV/Revenue EV/EBITDA 36% 57.0x

49.3x

41.5x 37.3x 19% 29.2x

% of Companies of % 10% 8% 7% 7% 5% 5% 7.0x 6.9x 5.8x 5.5x 6.0x 2% 2%

2Q14 3Q14 4Q14 1Q15 2Q15 <= 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 2Q15, the median market multiple of public SaaS companies was 6.0x EV/Revenue, down 14% YoY, but up slightly from last quarter’s median multiple of 5.5x. • Yet investors were goggle-eyed about the prospects of a good number of public SaaS providers. More than one-third of the companies in the SEG SaaS Index achieved a median EV/Revenue multiple of 9x or higher in 2Q15, and public SaaS companies continued to trade at a significant premium to their on- premise peers (6.0x vs. 3.1x median EV/Revenue). Although public SaaS companies have historically enjoyed trading multiples about double their on- premise peers, the differential is shrinking. 2Q15’s premium of 94% was much lower than 2Q14’s 119% premium. • A premium market multiple can be largely justified by comparing the relative lifetime value of a SaaS customer vs. an on-premise licensee. A SaaS company with a mission critical hosted app and strong customer retention will garner significantly greater cash over time (typically, 10+ years) from its average customer than will its on-premise counterpart. As for profitability, it remains to be seen if SaaS companies can eventually achieve bottom line performances that are equivalent to their on-premise counterparts. • In the meantime, investors are placing their bets on the next wave of SaaS category leaders that are positioned to displace incumbent on-premise providers across multiple product categories - just as Salesforce did to Siebel years ago in the CRM category.

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q15 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q15

8.0x 11.9x 7.2x

6.9x

9.5x 5.5x

3.7x 5.0x 5.2x

3.7x

Median EV/Revenue Median Median EV/Revenue Median 2.3x

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 2Q15, investors continued to handsomely reward the fastest growing public SaaS companies, albeit more modestly than in Q1. Public SaaS companies that grew TTM revenue in excess of 50% were anointed with the highest median EV/Revenue multiple of 11.9x in 2Q15, compared to a median market multiple of 13x in the prior quarter. • In past years, investors deemed profitability to be an unacceptable tradeoff for accelerated growth. That trend has ameliorated over the past three quarters, as public SaaS companies have grown larger and growth rates have stalled. In Q2, investors favored public SaaS companies losing money but perceived to be investing heavily in rapid growth, as well as those that are demonstrating not only sustained growth, but moderate profitability, as well. The older view, however, prevailed for those SaaS companies deemed to be too profitable (30%+), which investors saw as unacceptable tradeoff against accelerated growth.

TTM TTM Revenue EV/ TTM EBITDA EV/ Company Ticker EV (Median) Revenue Growth Rev EBITDA Margin EBITDA Shopify SHOP $2,293 $124 - 18.6x -$15 -11.9% - Workday WDAY $15,043 $879 63.7% 17.1x -$152 -17.3% - Tableau Software DATA $7,253 $468 75.4% 15.5x $10 2.2% 711.2x Service-now.com NOW $11,412 $755 58.1% 15.1x -$122 -16.1% - FireEye FEYE $6,666 $477 130.3% 14.0x -$400 -83.8% - HortonWorks HDP $841 $60 96.6% 13.9x -$188 -311.3% - • When the SEG SaaS Index is segmented on Paycom Software PAYC $2,045 $169 44.6% 12.1x $30 17.6% 68.7x the basis of median EV/Revenue multiple, Netsuite N $7,220 $598 34.2% 12.1x -$50 -8.3% - New Relic NEWR $1,327 $110 74.7% 12.0x -$45 -40.7% - the top 25% boasted an impressive median Demandware DWRE $2,142 $178 50.2% 12.0x -$20 -11.5% - Zendesk ZEN $1,699 $144 73.3% 11.8x -$67 -46.5% - 9.5x in 2Q15. That median, however, was HubSpot HUBS $1,481 $130 52.7% 11.4x -$49 -37.5% - Paylocity Holding PCTY $1,565 $141 40.9% 11.1x -$9 -6.7% - 29% lower than Q1’s median EV/Rev Castlight Health CSLT $587 $53 173.5% 11.0x -$80 -150.6% - Box BOX $2,360 $237 62.0% 10.0x -$147 -61.9% - multiple of 13.2x. Although that’s likely a Ellie Mae ELLI $1,752 $184 41.4% 9.5x $38 20.9% 45.7x Top 25% Textura TXTR $652 $68 48.6% 9.5x -$13 -18.8% - reflection of Q2’s greater market volatility, it Veeva Systems VEEV $3,163 $336 43.7% 9.4x $82 24.2% 38.8x Qualys QLYS $1,316 $141 24.0% 9.4x $27 19.0% 49.3x may be an indicator of waning investor 2U TWOU $1,106 $119 31.2% 9.3x -$26 -21.9% - enthusiasm for SaaS stocks. Q2 Holdings QTWO $799 $86 42.0% 9.2x -$14 -16.2% - MINDBODY MB $691 $77 - 9.0x -$23 -30.4% - The Ultimate Software Group ULTI $4,669 $530 22.2% 8.8x $71 13.4% 65.7x Salesforce.com CRM $48,443 $5,658 28.4% 8.6x $241 4.3% 201.0x • These SaaS high flyers are market leaders in Medidata Solutions MDSO $2,969 $351 20.9% 8.5x $39 11.3% 75.2x AppFolio APPF $453 $54 - 8.4x -$8 -14.9% - a wide array of SaaS categories including SPS Commerce SPSC $979 $136 24.1% 7.2x $14 10.2% 70.3x Benefitfocus BNFT $1,037 $149 33.9% 6.9x -$52 -34.7% - security (FireEye); HCM/Finance Marketo MKTO $1,121 $164 50.9% 6.8x -$52 -31.9% - Cvent CVT $960 $152 28.6% 6.3x $2 1.5% 432.9x (Workday); ERP (NetSuite); eCommerce Fleetmatics FLTX $1,539 $245 28.5% 6.3x $63 25.9% 24.3x Athenahealth ATHN $4,760 $796 25.9% 6.0x $62 7.8% 76.6x (Demandware); and Vertically Focused Cornerstone OnDemand CSOD $1,673 $280 36.7% 6.0x -$47 -16.9% - (Castlight Health – Healthcare ERP). Apigee Corporation APIC $369 $65 - 5.7x -$50 -76.9% - Ebix EBIX $1,255 $227 11.4% 5.5x $82 36.2% 15.3x J2 Global JCOM $3,362 $626 15.7% 5.4x $256 40.9% 13.1x Xactly XTLY $333 $64 - 5.2x -$13 -19.7% - • The median TTM revenue growth rate of Callidus Software CALD $722 $145 23.4% 5.0x -$4 -2.5% - TrueCar NasdaqGS: TRUE$1,052 $221 44.8% 4.8x -$42 -19.1% - those in the top 25% percentile was 47.7%. Zix ZIXI $239 $51 5.6% 4.7x $9 16.9% 27.6x RingCentral RNG $1,070 $237 36.8% 4.5x -$31 -13.1% - All but three companies (Tableau Software, HealthStream HSTM $799 $179 27.3% 4.4x $31 17.3% 25.7x Workiva WK $495 $120 28.6% 4.1x -$37 -30.9% - Paycom, and Ellie Mae) in the top rank had a Yodlee YDLE $380 $94 26.2% 4.0x -$4 -3.7% - Alarm.com ALRM $675 $176 26.9% 3.8x $23 12.9% 29.5x negative EBITDA margin in 2Q15. RealPage RP $1,529 $414 6.7% 3.7x $25 5.9% 62.3x OPOWER OPWR $453 $133 35.7% 3.4x -$41 -30.4% - Bottom 25% inContact SAAS $594 $186 37.4% 3.2x -$9 -4.9% - • In contrast, the median TTM revenue SciQuest SQI $306 $102 7.9% 3.0x $5 4.6% 64.6x DealerTrack TRAK $2,781 $948 78.5% 2.9x $115 12.1% 24.2x growth rate of those comprising the bottom Amber Road AMBR $189 $65 16.3% 2.9x -$7 -10.8% - ChannelAdvisors ECOM $219 $88 21.7% 2.5x -$27 -31.1% - 25% of EV/Revenue multiples was 21.3%, IntraLinks Holdings IL $614 $263 10.1% 2.3x $12 4.6% 50.7x LivePerson LPSN $516 $222 21.2% 2.3x $11 5.0% 46.6x and almost half of these companies were Halogen Software TSX:HGN $135 $59 18.2% 2.3x -$9 -16.0% - Constant Contact CTCT $753 $343 15.9% 2.2x $41 11.8% 18.6x profitable. Tangoe TNGO $473 $216 10.9% 2.2x $17 7.7% 28.5x Bazaarvoice BV $403 $191 13.7% 2.1x -$22 -11.3% - Upland Software UPLD $138 $66 38.1% 2.1x $1 1.8% 118.8x Marin Software MRIN $173 $103 24.1% 1.7x -$27 -26.3% - Jive Software JIVE $305 $185 20.8% 1.7x -$32 -17.2% - Medical Transcript MTBC $24 $22 102.3% 1.1x -$3 -11.8% - Covisint COVS $41 $89 -8.9% 0.5x -$27 -30.4% - SOFTWARE EQUITY GROUP | Q2 2015 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © Software Equity Group, LLC, All Rights Reserved 30 THE SEG SaaS INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE

2Q15 Median TTM Revenue Growth 2Q15 YoY Change in Median Revenue Growth

CRM & 28.4% CRM & Marketing (5.8%) Marketing

ERP & ERP & 26.3% (24.1%) Supply Chain Supply Chain

Vertically Vertically 38.5% 37.0% Focused Focused

Human Human Capital 33.9% Capital 17.8% Management Management

2Q15 Median TTM EBITDA Margin 2Q15 YoY Change in Median EBITDA Margin

CRM & CRM & (11.3%) Marketing Marketing n/a*

ERP & ERP & (8.3%) n/a* Supply Chain Supply Chain

Vertically Vertically 5.9% (31.3%) Focused Focused

Human Human Capital (11.3%) Capital n/a* Management Management

* YoY Change in Median EBITDA Margin not applicable.

2Q15 Median EV/Revenue Multiple 2Q15 YoY Change in Median EV/Revenue

CRM & CRM & 6.3x 101.1% Marketing Marketing

ERP & ERP & 6.3x (18.3%) Supply Chain Supply Chain

Vertically Vertically 8.4x (14.5%) Focused Focused

Human Human Capital 6.5x Capital (31.2%) Management Management

• Public SaaS companies comprising the Vertically Focused category posted the highest median public market multiple (8.4x EV/Revenue) of our four SaaS tracking categories in 2Q15. The category was led by Castlight Health (11.0x EV/Revenue multiple) and Textura (9.5x EV/Revenue). As the SaaS delivery model matures, investors are favoring newer, vertically oriented, best of breed providers that are rapidly gaining share in large vertical markets, often at the expense of larger, slower and less vertically focused SaaS and on-premise providers. • The market success of Vertically Focused SaaS companies was largely attributable to their having achieved the highest TTM revenue growth rate in 2Q15, 38.5%. Category standouts included healthcare spend management SaaS provider, Castlight Health (174% TTM revenue Growth); construction sector SaaS vendor, Textura (49% TTM revenue growth); and life sciences SaaS vendor, Veeva Systems (44% TTM revenue growth). • In 2Q15, the CRM & Marketing category saw the only positive YoY change in Median EV/Rev, thanks to a number of recent IPOs that have rapidly gained traction, including Shopify (18.6x EV/Rev, 109% TTM revenue growth); Zendesk (11.9x EV/Rev, 73% TTM revenue growth); and Hubspot, 11.4x EV/Rev of 11.4x, 53% TTM revenue growth

PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - Internet: Median Metrics • The SEG Internet Index tracks public companies that primarily offer Measure 2Q14 3Q14 4Q14 1Q15 2Q15 B2C and B2B solutions over the Internet using a wide array of pricing EV/Revenue 3.0x 2.9x 2.5x 2.4x 2.4x models. EV/EBITDA 23.5x 20.1x 21.4x 22.0x 20.0x EV/Earnings 35.1x 31.4x 35.4x 36.3x 36.3x • The SEG Internet Index is currently comprised of 105 public Internet Gross Profit Margin 65.2% 63.3% 64.2% 63.7% 63.8% companies*. EBITDA Margin 8.5% 7.9% 7.8% 7.8% 7.9% Net Income Margin -0.1% -0.5% -0.2% -0.2% -0.2% TTM Revenue Growth 19.1% 20.5% 19.4% 19.4% 19.0% TTM Total Revenue ($M) $361.3 $409.8 $440.2 $440.2 $451.2 TTM EBITDA Growth 15.4% 13.1% 13.9% 13.9% 12.0% TTM Total EBITDA ($M) $28.6 $28.4 $23.9 $23.9 $23.6 Cash & Eq ($M) $182.7 $192.8 $188.2 $188.2 $200.2 Current Ratio 2.5 2.5 2.2 2.2 2.4 Debt / Equity Ratio 1.5% 1.6% 3.1% 3.1% 3.7%

* See appendix for complete list of companies in the SEG Internet Index

Median Revenue Performance – Quarterly TTM Revenue Growth Rate Distribution – 2Q15

TTM Total Revenue ($M) TTM Revenue Growth 23% 20% $500 21.0%

17% $450 17% 17%

20.5%

$400 $350 20.0% $300 6% $250 19.5% Companies of % $200 19.0%

$150 TTM Total Revenue Total TTM $100 Growth Revenue TTM 18.5% <= 0% > 0% > 10% > 20% > 30% > 40% $50 <= 10% <= 20% <= 30% <= 40% $0 18.0% TTM Revenue Growth 2Q14 3Q14 4Q14 1Q15 2Q15 • Approximately 59% of the companies comprising the SEG Internet Index offer online services and solutions primarily or exclusively to consumers; their revenue growth typically lags a quarter behind the performance of the U.S. economy. • After declining from 20.5% growth in 3Q14 to 19.4% in both 4Q14 and 1Q15, median TTM revenue growth of the SEG Internet Index dropped to 19% in 2Q15. • Once again demonstrating the Internet is an ecosystem of unequals, 23% of public Internet providers far outpaced the pack, posting TTM revenue growth greater than 40% in 2Q15. These high flyers included LendingClub (110.6%), Twitter (98.3%), and YY (91.4%). • Conversely, 34% of public Internet companies struggled to advance, reporting TTM revenue growth of 10% or less in 2Q15. The slow growers included VeriSign, Yahoo!, Zynga, Brightcove, and Monster Worldwide.

Median EBITDA Margin Performance – Quarterly TTM EBITDA Margin Distribution – 2Q15

31% 8.5% 28%

7.9% 7.8% 7.8% 7.9%

18%

11%

% of Companies of % EBITDA Margin EBITDA 4%

2Q14 3Q14 4Q14 1Q15 2Q15 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM EBITDA Margin • The median EBITDA margin of the SEG internet Index has remained relatively flat for the last four quarters. • Almost 30% of SEG Internet Index companies were unprofitable in 2Q15. The median S&M spend as a percent of revenue of public Internet companies remained virtually unchanged in 2Q15 at 25.5%. • At the other end of the spectrum, 4% of public Internet companies, mostly those with significant transaction or advertising revenue, achieved EBITDA margins above 40%, led by VeriSign (62.0%), Mail.ru Group (48.6%) and Tencent Holdings (41.0%). • With few exceptions, many of the most profitable public Internet companies reported stellar TTM revenue growth. Among them were Tencent Holdings (50.0% EBITDA margin, 27.2% revenue growth); Facebook (46.6% EBITDA margin, 51.5% revenue growth); Yandex (36.4% EBITDA margin, 23.2% revenue growth); and Baidu.com (32.3% EBITDA margin, 47.4% revenue growth).

THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE

Median Operating Ratios Median Margin Performance

S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) Gross Profit Margin EBITDA Margin Net Income Margin 30% 70%

60% 25%

50%

20%

40%

15%

30% % of Revenue % of

10% % Margin 20%

5% 10%

0% 0% 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 -10%

• OpEx: Median spending on operations by public Internet companies in 2Q15 was consistent with historic norms: 14.2% for Research & Development, 25.5% for Sales & Marketing, and 12.4% for General & Administrative. • Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat. • The median R&D spend as a percent of total revenue was the lowest among our three tracking indices. • Public internet companies have kept their cost structures in line, resulting in a median EBITDA margin of 7.9% in 2Q15, virtually the same as the past three quarters.

Median EV/Revenue and EV/EBITDA Multiples – Quarterly Median EV/Revenue Multiple Distribution – 2Q15

23% EV/Revenue EV/EBITDA 23.5x 19% 21.4x 22.0x

20.1x 20.0x

14% 12%

% of Companies of % 7% 6% 5% 4% 3.0x 2.9x 2.5x 2.4x 2.4x 2%

2Q14 3Q14 4Q14 1Q15 2Q15 <= 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 public market EV/Revenue multiple of public Internet providers closed 2Q15 at 2.4x, on par with the first quarter, but notably lower than the 3.0x multiple of a year ago. More than 40% of public Internet companies closed Q2 with an EV/Revenue multiple of 2.0x or less. • We believe Q2’s depressed Internet market multiple reflected continuing investor caution about a sustained economic recovery and its concomitant impact on consumer spending. Almost 60% of public Internet companies are consumer focused (Travel, Games, Retail, Advertising, etc). Until wages improve and consumer confidence is restored, it’s likely Internet providers will continue to lag well behind their SaaS and on-premise peers in market multiples. • That said, investors in Q2 continued to richly reward the most rapidly growing and most promising Internet providers, especially those that generated significant revenue from online advertising and ecommerce. More than one in five closed the quarter with a market multiple of 7.0x EV/Revenue or higher, include 58.com (27.5x EV/Rev), Alibaba (16.9x), Facebook (16.0x); Wowo Limited (15.2x); and Zillow (13.1x).

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q15 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q15

6.4x 7.0x 6.8x

5.2x

5.0x 4.0x

1.9x 2.0x

Median EV/Revenue Median EV/Revenue Median 1.1x 1.3x

<= 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

• Here, too, investors favored growth. Public Internet companies with TTM revenue growth of 30% or higher had a median EV/Revenue multiple of 6.4x in Q2, compared to 2.0x for their slower growing (<20%) peers. The outperformers included Twitter (98.3%, 14.1x EV/Revenue); 58.com (78.5%, 27.5x EV/Revenue); Zillow (72.1%, 13.1x EV/Revenue); and Facebook (51.5%, 16.0x EV/Revenue). • Investors in public Internet companies kept a keen eye on margins, and rewarded more profitable performers with significantly higher public market multiples. Public Internet companies with EBITDA margins above 40% posted a median EV/Revenue multiple of 6.8x in 2Q15, 283% 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 5.5x in Q2, 20% below the SaaS median market multiple. • When valuing Internet vs. SaaS stocks, investors have clearly taken into consideration the likely longevity of the customer relationship and associated recurring revenue, and the nature and extent of switching costs. By those measures, the likely lifetime value of a SaaS customer appears to greatly outweigh the perceived value of an online consumer.

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

Ad Tech Commerce Content & Media Gaming

Infrastructure Search Services Social Travel

2Q15 Median TTM Revenue Growth 2Q15 Median YoY Change in Revenue Growth

Ad Tech 22.1% Ad Tech (19.7%)

Commerce 17.7% Commerce 7.5%

Content & Media 10.0% Content & Media (17.6%) 92.3% Gaming 23.4% Gaming

Infrastructure 4.9% Infrastructure (51.3%)

Search 20.1% Search (15.8%)

Services 22.5% Services (19.2%)

Social 51.5% Social (17.5%)

Travel 20.4% Travel 1.0%

2Q15 Median TTM EBITDA Margin 2Q15 Median YoY Change in EBITDA Margin

Ad Tech 2.0% Ad Tech (35.6%)

Commerce 5.3% Commerce (45.7%)

Content & Media 10.9% Content & Media (32.2%)

Gaming 28.6% Gaming (4.2%) 16.5% Infrastructure 5.8% Infrastructure

Search 32.3% Search (11.9%)

Services 5.9% Services (21.8%)

Social 10.1% Social 1.6%

Travel 12.4% Travel (20.5%)

2Q15 Median EV/Revenue Multiples Median 2Q15 YoY Change in EV/Revenue

Ad Tech 2.3x Ad Tech (17.7%) 64.0% Commerce 1.9x Commerce

Content & Media 2.8x Content & Media (25.7%)

Gaming 3.1x Gaming (13.8%)

Infrastructure 1.5x Infrastructure (25.4%)

Search 5.6x Search (17.3%)

Services 2.4x Services (24.1%)

Social 9.1x Social (13.7%)

Travel 3.8x Travel (30.0%)

• Public Internet companies comprising the Social product category closed Q2 with a median revenue growth rate of 51.1%, roughly 3x the overall Internet median growth rate of 18.4%. The Gaming product category ended Q2 with a median revenue growth rate of 23.4%, roughly 1.5x greater than Q2’s Internet median. • Public Internet companies comprising the Social category closed 2Q15 with the highest median EV/Revenue multiple, 9.7x, led by Facebook (16.1x) and Twitter (14.1x). • The success social media Internet providers have had monetizing their services, largely through advertising, has come at the expense of many in the Ad Tech space, with marketers clearly favoring the scalability and ROI of advertising on Twitter and Facebook. As a result of these shifting advertising priorities, the median TTM revenue growth of the Ad Tech product category fell 17.7% YoY in 2Q15. • Companies within the Search product category continued to be very profitable in Q2, posting a median EBITDA margin of 32.3%, 3.8x higher than the median EBITDA margin across all Internet categories in 2Q15. • Following a correction in public software industry valuations witnessed throughout 2014, eight of our nine product categories experienced a decline in YoY EV/Rev multiples.

U.S. Software Mergers & Acquisitions Activity Average On-Premise Software Deal Size

600 $50 $70.0 555 $65 517 $45 $60 505 488 499 $60.0 $57

500 460 $54 $53 454 431 444 455 $40 $53 435 $43.5 406 394 $35 $50.0 $31.4 $36.8 400 Value (BIllions) $42 $43 $30 $39 $40 $40.0 $36 $36 $35 $23.1 300 $26.6 $25 $30.0

$22.8 $17.8 $20

Number of Deals of Number $15.8 $20.2 200 $12.3 $20.8 $17.7 $15 $20.0 $10 100 (Millions) Value Deal AverageTTM $9.9 $10.0 $5

0 $0 $0.0

2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Deals Value 2Q12

• There were 555 reported software M&A transactions in 2Q15, a new quarterly record. The second quarter tally will likely increase by approximately 15 – 20 transactions as unpublicized deals are added. Typically, the second quarter has been the most active, following a relative Q1 lull spent digesting their year-end deals. • Software M&A spending in 2Q15 totaled $36.8 billion, almost double Q1 2015’s $17.8 billion aggregate price tag. Included were twelve mega deals (EV>$500M), four with price tags exceeding $2 billion. The two largest were Permira Advisers’ $4.8 billion (~4.6x EV/Rev) acquisition of Informatica Corporation, and Cox Automotive’s $4.5 billion (4.7x EV/Revenue) acquisition of Dealertrack Technologies. • Other 2Q15 mega deals included EMC’s acquisition of Virtustream ($1.2B, ~10.0x EV/Rev), MasterCard’s acquisition of Applied Predictive Technologies ($600M, ~6.0 EV/Rev); and Twitter’s acquisition of TellApart ($533M, ~6.0 EV/Rev). • Megadeals aside, most buyers continued to focus on small and mid-sized acquisitions in 2Q15, consistent with their response to our 2015 Buyers Survey, in which 95% of respondents indicated they would focus in 2015 on deals in the range of $10M - $99M .

Median Exit Multiples Median EV/Revenue Exit Multiple Distribution

EV/Revenue EV/EBITDA 30.0% 28.3%

20.0x 18.1x 17.7x 17.5x 17.3x 25.0% 23.3% 18.0x 16.2x 16.0x 20.0%

14.0x TTM 12.0x

15.0% 12.5% 13.3% 13.3% 2Q15

10.0x - 8.0x 10.0% 7.5% 6.0x 4.0x 2.3x 2.4x 2.3x 2.5x 2.5x 5.0% % of Deals of % 1.7% 2.0x 0.0x 0.0% 2Q14 3Q14 4Q14 1Q15 2Q15 <= 1.0x > 1.0x & > 2.0x & > 3.0x & > 4.0x & > 5.0x & > 6.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x TTM Revenue Exit Multiple Bins

• The median EV/Rev exit multiple for on-premise software providers • On a TTM basis, 35.8% of all on-premise software targets in 2Q15 was 2.5x in 2Q15, matching the prior quarter’s all-time high exit were acquired for 2.0x TTM revenue or less, and 64.1% for 3.0x or multiple. That makes five consecutive quarters the median exit less. multiple has reached 2.3x EV/Rev or higher. • Most targets receiving an exit multiple of 3.0x or higher belonged to • After a significant shakeout following the Great Recession, many of currently “hot” software product categories that are experiencing the public on-premise providers left standing are considered to be rapid market adoption and growth, including Financial Services and compelling, highly valued targets by an array of public and private Mobile. equity acquirers, but buyer motives varied widely. Some sought to • Helping to keep the on-premise multiple at an all time high was extend their reach into entirely new markets (Cox Amino Technologies’ acquisition of mobile video content provider Automotive/Dealertrack); some saw competitive advantage Boox Media ($11.1 million, 7.1x TTM revenue); MasterCard’s (Mastercard/Applied Predictive); and some were active investors acquisition of predictive analytics software provider Applied demanding a higher return for shareholders (Permira/Informatica). Predictive Technologies ($600M, ~6.0 EV/Rev); and Cox Automotive’s • The median EV/EBITDA exit multiple for public on-premise software acquisition of automotive retail industry solutions provider companies held relatively steady at healthy 17.3x TTM EBITDA. Dealertrack Technologies ($4.5B, 4.7x EV/Rev).

Public vs. Private Target Large Vs. Smaller Buyer

• Of the TTM deals announced with an ascertainable EV/Rev exit • Buyers with revenue greater than $200 million paid a median 2.8x multiple, nearly four out of five software M&A transactions featured TTM revenue for their targets, compared to a median 1.9x TTM privately-held targets. revenue paid by sub-$200 million revenue buyers. • The median TTM exit multiple in Q2 was only marginally higher for • On a TTM basis, software M&A transactions with the highest exit public on-premise software sellers (2.4x TTM revenue) than for their multiples featured a large public or private buyer (greater than $200 private counterparts (2.3x TTM revenue). million in revenue) acquiring a small target (less than $20 million). For the last 12 months, this match-up produced a median 3.1x • Over the last 12 months, public buyers paid a median 2.2x TTM EV/Revenue exit multiple. revenue for their targets, compared to a median of 2.5x paid by private buyers.

Horizontal & Vertical M&A Volume Horizontal & Vertical M&A Median EV/Revenue Exit Multiples

100% 2.5x 2.5x 90% 2.4x 2.4x 2.4x 2.4x 80% 70% 2.3x 2.3x 65% 69% 66% 67% 65% 2.3x 60% 50% 40% 2.1x 30% 20% 35% 31% 34% 33% 35% 10% 0% 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15

Horizontal Vertical Vertical Horizontal

• The median exit multiple of horizontal software companies was 2.3x TTM revenue in 2Q15, virtually unchanged from the prior four quarters. Notable Q2 horizontal transactions included Comverse‘s acquisition of enterprise messaging and communications software provider Acision for $402.2 million (2.1x EV/Revenue) and Francisco Partners Management’s acquisition of workforce management software provider ClickSoftware Technologies for $375.6 million (3.0x EV/Revenue). • The median exit multiple of vertical software companies was 2.5x TTM revenue in 2Q15, slightly higher than the prior quarter. Vertical software targets have fetched a higher median EV/Revenue exit multiple than their horizontal software counterparts for the past three quarters. That represents a marked turnaround for vertical software median exit multiples after a dismal 2012 and 2013 (1.5x). The vertical exit recovery began in 2014 when the median multiple advanced to 2.2x. • Q2’s more noteworthy vertical software deals included Zoopla Property Group’s acquisition of energy software provider Ulysses Enterprises for $292.0 million (3.0x EV/Revenue) and Autobytel’s acquisition of automotive software provider Dealix Corporation And Autotegrity for $25.0 million.

• Mobile was the most active product category by far in the second quarter, accounting for 20.1% of all software M&A transactions. Distant runner-ups were Financial Services (6.0%), Security (4.1%), Multimedia, Graphics & Communications (4.3%), and BI, Risk & Compliance (4.3%). • Historically, deal activity in any given product category varies widely from year to year, based upon evolving market adoption, changing technology platforms, economic cycles, etc. Examples include: • Public Sector transactions accounted for 3.6% of all software M&A activity in 2Q15, but only 1.6% in 2Q14. • Education deals represented only 1.9% of all software M&A activity in 2Q15, compared with 4.0% in 2Q14. • Multimedia, Graphics & Communications transactions were credited with 4.3% of software M&A activity in 2Q15, compared with 2.8% in 2Q14. • CRM, Marketing, & Sales accounted for 3.1% of all software M&A activity in 2Q15, compared with 5.4% in 2Q14.

Median EV/Revenue Exit Multiples by Software Product Category

4.1x

2.8x 2.6x 2.5x 2.3x 2.1x 2.1x 1.9x 1.9x

1.1x

Mobile

Security

BI,Risk &

Healthcare

Compliance

etc.)

Media

& & BPM

Multimedia,

& & Logistics

OtherVerticals

CRM & Marketing

FinancialServices

Graphics& Digital

Content, Document

(A&D, Telco, Retail, SupplyChain Mgmt

• Among the 34 on-premise software product categories we track, ten had both sufficient deal activity and deal data to ascertain a category TTM revenue multiple in 2Q15. • On a TTM basis, the Financial Services category was rewarded with the highest median exit multiple (4.1x) in Q2, followed by Healthcare with a median exit multiple of 2.8x. • Notable Financial Services software transactions included BridgePoint Advisors acquisition of eFront (4.1x EV/Revenue) and First Derivatives’ acquisition of ActivateClients (6.5x EV/Revenue). • First quarter Healthcare software transactions included Sy.Med Development’s acquisition of HealthLine Systems (4.7x EV/Revenue) and Maquet’s acquisition of Cetrea A/S (3.7x EV/Revenue). • On-premise CRM & Marketing exit multiples lagged far behind most others, with most M&A dollars in this product category going to SaaS/hosted solution providers. SOFTWARE EQUITY GROUP | Q2 2015 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © Software Equity Group, LLC, All Rights Reserved 49 SaaS M&A: DEAL VOLUME AND MEDIAN EXIT MULTIPLES

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

SaaS M&A Deals SaaS as % of Software

160 30% 150 140 132 134 25% 118 4.0x 4.1x 120 108 3.7x 3.7x 104 103 104 3.4x 97 20% 100 94 94 86 80 15% 59

60 Deals M&A 10% 2Q14 3Q14 4Q14 1Q15 2Q15

# of SaaS M&A Deals M&ASaaS of # 40 5% 20

0 0% Software Total of % a as Deals M&A SaaS

• There were 150 SaaS M&A transactions in 2Q15, the most on record for any quarter, and approximately 154% greater than three years ago. • The median TTM EV/Revenue exit multiple of SaaS transactions was 3.7x in 2Q15, a modest uptick from the prior quarter. The median SaaS exit multiple has been slightly depressed over the past three quarters as the number of SaaS targets has substantially increased. There are many reasons for the decline over the past several years in SaaS median exit multiples, including a growing number of smaller, slower growing SaaS providers being acquired; a greater number of acquisitions by tighter fisted private equity buyers.(Insight Venture’s acquisition of E2Open for 3.2x TTM revenue, and The Carlyle Group’s acquisition of Dealogic for 3.6x TTM revenue); and a growing number of SaaS acquisitions by non-traditional buyers who tend to pay less, such as digital and audio equipment manufacturer, Harman International, and business process services provider, Maximus. • That said, a number of SaaS sellers in Q2 fetched exit multiples well above the median, including Virtustream, purchased by EMC for $1.2 billion (~10.0x revenue); Applied Predictive Technologies, acquired by Mastercard for $600 million (~6.0x revenue); TellApart, purchased by Twitter for $533 million (~6.0x revenue); and DealerTrack, acquired by Cox Automotive for $4.5 billion (4.7x revenue). • The median SaaS exit multiple was 48% greater than the median on-premise software exit multiple in 2Q15 (3.4x vs 2.5x).

SaaS M&A BY PRODUCT CATEGORY – 2Q15

• Education and CRM, Marketing & Sales were the most active SaaS M&A product categories, accounting for 12.7% and 8.7%, respectively, of all SaaS M&A transactions in the second quarter. • While the CRM, Marketing and Sales category usually accounts for a high percentage of quarterly SaaS transaction activity, Education was a surprise. The category was largely driven by nearly one dozen higher education SaaS acquisitions in the second quarter. • Messaging, Conferencing, & Communications and Security product categories also exhibited strength in 2Q15, accounting for 5.3% and 7.3%, respectively, of total SaaS deal volume for the quarter. • Other notable categories included BI, Risk & Compliance (5.3%), HR & Workforce Management (4.7%), Healthcare (4.7%), and Multimedia, Graphics & Communications (4.7%).

TTM Enterprise Revenue Date Buyer Seller Value (mm) (mm) EV/Rev 6/30/2015 SendGrid, Inc. Mail Bypass, Inc. - - - 6/29/2015 Sprinklr Inc. Get Satisfaction, Inc. - - - 6/29/2015 Frontline Technologies Group LLC My Learning Plan Inc. - - - 6/29/2015 Safari Books Online, LLC popforms, inc. - - - 6/29/2015 NetSuite Inc. (NYSE:N) Bronto Software, Inc. $200.00 - - 6/28/2015 Schulman Associates IRB, Inc. Absolute Research, LLC - - - 6/26/2015 ToxPlanet Expert Publishing, LLC - - - 6/25/2015 Gravity4, Inc. TradeDoubler AB (OM:TRAD) $53.30 $199.33 0.26x 6/25/2015 CoCubes Technologies Pvt. Ltd. VCS Tech Solutions Pvt. Ltd. - - - 6/25/2015 Changepoint Corporation Barometer, Inc. - - - 6/25/2015 Cisco Systems, Inc. (NasdaqGS:CSCO) Tropo Inc. - - - 6/24/2015 Pantheon Systems, Inc. Gorton Studios, Inc., NodeSquirrel - - - 6/24/2015 Hubei Landing Holding Co., Ltd. (SZSE:000971) Jilin Gosun Technology Co.,Ltd. $242.03 - - 6/24/2015 AppFolio, Inc. (NasdaqGM:APPF) RentLinx, LLC. - - - 6/23/2015 AvidXchange, Inc. Strongroom Solutions, Inc. - - - 6/24/2015 CA, Inc. (NasdaqGS:CA) Rally Software Development Corp. $432.40 $92.52 4.67x 6/23/2015 Online Learning MERLOT, The Journal of Online Learning and Teaching - - - 6/23/2015 Mobio Technologies Inc. (TSXV:MBO) 20 Year Media Corp. $2.08 - - 6/23/2015 Optimal Payments Plc (AIM:OPAY) FANS Entertainment Inc. $12.80 - - 6/22/2015 STAUFENBIEL Institut GMBH GradeView UG (haftungsbeschränkt) - - - 6/19/2015 Brand Networks, LLC Shift Labs, Inc. $50.00 - - 6/19/2015 mercator Catapult, a Mercator company - - - 6/19/2015 Serent Capital Mercury Network, LLC - - - 6/17/2015 Pitney Bowes International Holdings, Inc. Borderfree, Inc. $372.04 $123.76 3.01x 6/17/2015 XIFIN, Inc. VisualShare, Inc. - - - 6/17/2015 Kronos Incorporated Productive Scheduling Solutions, LLC - - - 6/16/2015 Permira Advisers Ltd.; Canada Pension Plan Investment Board Informatica Corporation (NasdaqGS:INFA) $4,844.37 $1,055.39 4.59x 6/16/2015 MarketShare Partners LLC Business Researchers, Inc. - - - 6/15/2015 Scribble Technologies Inc. Appinions Inc. - - - 6/15/2015 - DecisionsDecisions Ltd. - - - 6/15/2015 Intercity Networks Limited Gage Networks LLP - - - 6/15/2015 SiteMinder Pty Ltd. Globekey Systems Pty Ltd - - - 6/15/2015 Patriot Technology Solutions, Inc. InsureLinx, Inc. $6.00 - - 6/12/2015 Batia Infotech HelpIQ - - - 6/11/2015 InsideSales.com, Inc. Cloud9 Analytics, Inc. - - - 6/11/2015 Pearson VUE, Inc. ProctorCam, Inc. - - - 6/10/2015 Zuora, Inc. Frontleaf, Inc. - - - 6/10/2015 ArisGlobal LLC Medsight Solutions, LLC - - -

TTM Enterprise Revenue Date Buyer Seller Value (mm) (mm) EV/Rev 6/10/2015 Baidu, Inc. (NasdaqGS:BIDU) Xingyun Rongchuang (Beijing) Technology Co. Ltd. - - - 6/11/2015 Ackroo Inc. (TSXV:AKR) Dealer Rewards Of Canada 2014 Inc. $1.48 - - 6/10/2015 Satellite Logistics Group, Inc. Have AnotherRound Apps, L.L.C. - - - 6/9/2015 BlackBerry Limited (TSX:BB) WatchDox, Inc. - - - 6/9/2015 Hello Curry Pvt Ltd. Acharis IT Consultancy Private Limited, Fire42 - - - 6/8/2015 eVestment Alliance, LLC TopQ Software Ltd - - - 6/5/2015 Viewpoint, Inc. Jobpac International Systems Pty Ltd. - - - 6/5/2015 Automattic Inc. Bubblestorm Management (Proprietary) Limited $30.00 - - 6/3/2015 ProQuest LLC SIPX, Inc. - - - 6/3/2015 GameFly, Inc. Playcast Media Systems Ltd. - - - 6/4/2015 Marlin Equity Partners, LLC General Dynamics Fidelis Cybersecurity Solutions Inc. - - - 6/3/2015 H.I.G. Capital, LLC Inome, Inc. - - - 6/3/2015 Insight Venture Partners Fourth Ltd. - $36.85 - 6/2/2015 SkillSoft France SARL Vodeclic SAS - - - 6/2/2015 Palo Alto Networks, Inc. (NYSE:PANW) ShieldArc Inc. $18.00 - - 6/1/2015 ACS Technologies Group, Inc. Mersoft Corporation, Solomon Learning Management System - - - 6/2/2015 IID, Inc. (TSE:6038) Mynavi Corporation - - - 6/1/2015 Akamai Technologies, Inc. (NasdaqGS:AKAM) Octoshape ApS - - - 6/1/2015 EMC Corporation (NYSE:EMC) Virtustream, Inc. $1,200.00 - - 6/11/2015 Ernst & Young Global Limited Entegreat, Inc - - - 6/2/2015 Ornico Group (Pty) Ltd. Fuseware (Pty) Ltd. - - - 5/31/2015 Accenture plc (NYSE:ACN) T'quila Limited $35.84 - - 6/24/2015 Francisco Partners Management LLC HealthcareSource HR, Inc. - - - 5/30/2015 Avaya Inc. Esna Technologies Inc. - - - 5/29/2015 Hortonworks, Inc. (NasdaqGS:HDP) SequenceIQ Inc. - - - 5/28/2015 Perfect Commerce Holdings, LLC Hubwoo (ENXTPA:HBW) $21.89 $33.26 0.71x 6/2/2015 QUADROtech Solutions AG Timefinity Group Limited - - - 5/28/2015 StudyPortals B.V. Web2Present SL - - - 5/28/2015 Orange Business Services Gemalto NV, SafeNet Authentication Service - - - 5/27/2015 DMM.com Corporation Cerego Japan, Inc., iKnow - - - 5/27/2015 Vertafore, Inc. QQ Solutions, Inc. - - - 5/26/2015 Vista Equity Partners Pearson Education, Inc., Student Information Systems Businesses $350.00 - - 5/26/2015 Marketing Associates, LLC Conclusive Analytics, Inc. - $10.00 - 5/22/2015 Basware UK Ltd. ProcServe Holdings Limited $27.97 $10.37 2.70x 5/21/2015 Adobe Systems Incorporated (NasdaqGS:ADBE) Mixamo, Inc. - - - 5/21/2015 Proxio, Inc. PCMS Consulting, Inc. - - - 5/20/2015 Charter Pacific Corp. Ltd. (ASX:CHF) Accloud Limited - - - 5/19/2015 LenderLive Network, Inc. Walz Group, LLC - - - 5/19/2015 Overture Technologies, Inc. AlumniFidelity, Inc. - - -

TTM Enterprise Revenue Date Buyer Seller Value (mm) (mm) EV/Rev 5/19/2015 Google Inc. (NasdaqGS:GOOGL) Agawi Inc. - - - Ausstellungs- und Messe GmbH des Börsenvereins des Deutschen 5/19/2015 IPR License, Ltd. - - - Buchhandels 5/19/2015 salesforce.com, inc. (NYSE:CRM) Toopher Inc. - - - 5/19/2015 Sovos Compliance, LLC Six88 Solutions, Inc. - - - 5/15/2015 Twitter, Inc. (NYSE:TWTR) TellApart, Inc. $533.00 - - 5/19/2015 Zomato Media Pvt. Ltd. Zomato Base - - - 5/14/2015 American Green, Inc. (OTCPK:ERBB) TrackX, LLC - - - 5/14/2015 XSEED Education Pte. Ltd. Pleolabs Technology Private Limited - - - 5/13/2015 HighJump Software Nexternal Solutions, Inc. - - - 5/13/2015 Archway Marketing Services, Inc. PogMaker Corp - - - 5/12/2015 - Brivo Systems, LLC $50.00 - - 5/12/2015 EMC Corporation (NYSE:EMC) CloudLink Technologies Inc. - $1.00 - 5/12/2015 ITM|TwentyFirst LLC Insurance Trust Monitor, Inc. and InsuranceIQ - - - 5/12/2015 MasterCard Incorporated (NYSE:MA) Applied Predictive Technologies, Inc. $600.00 - - 5/11/2015 Gravity4, Inc. CrossGraph - - - 5/8/2015 BookingSuite (USA) Inc. PriceMatch SAS - - - 5/7/2015 Jive Communications, Inc. Speek Inc. - - - 5/7/2015 Rapid7, Inc. NT OBJECTives, Inc. - - - 5/7/2015 HDS International Corp. (OTCPK:HDSI) SirenGPS Inc, Emergency Management Software $6.50 - - 5/7/2015 Neopost S.A. (ENXTPA:NEO) Temando Pty Ltd - - - 5/6/2015 EMS Find, Inc. (OTCPK:EMSF) Page-Out,LLC - - - 5/6/2015 Buchzentrum AG bpm consult ag - - - 5/5/2015 Visma AS e-conomic international a/s, Core Scandinavian Business $225.81 - - 5/4/2015 Cisco Systems, Inc. (NasdaqGS:CSCO) Piston Cloud Computing, Inc. - - - 5/4/2015 Aptean, Inc. Cinram Group, Inc., Vision Software Solutions - - - 5/4/2015 Capillary Technologies Pvt Ltd. MartJack - - - 4/30/2015 Beyondsoft Investment soften.cn $8.05 - - 5/8/2015 Synchronous Technologies, Inc. CoolerEmail, Inc. and CoolerWeb, Inc. - - - 4/30/2015 EDPlus Holdings, LLC PrepTalk, Inc. - - - 4/30/2015 RingCentral, Inc. (NYSE:RNG) Glip, Inc. - - - 4/29/2015 Valore Boundless Learning, Inc. - - - 4/30/2015 8x8 Inc. (NasdaqGS:EGHT) Quality Software Corporation $4.30 - - 4/29/2015 Dartican LLC KnowledgePay, Inc. - - - 4/26/2015 InfoFort CBKSoft Software Inc. $16.55 - - 4/30/2015 Access Intelligence plc (AIM:ACC) Cision UK Limited And Vocus UK Ltd. $2.05 - - 4/24/2015 Source Medical Solutions, Inc. LaClaro, Inc. - - - 5/25/2015 Avaya Inc. KnoahSoft, Inc. - - - 4/24/2015 Accela, Inc. SoftRight, LLC and Springbrook Software, Inc. - - -

TTM Enterprise Revenue Date Buyer Seller Value (mm) (mm) EV/Rev 4/23/2015 LULU SOFTWARE, Inc. Online PDF Services OÜ - - - 4/23/2015 Terragon Limited Bizense Pte. Ltd. - - - 4/22/2015 Ernst & Young Australia ISD Analytics - - - 4/22/2015 NZX Limited (NZSE:NZX) Apteryx, Inc. $1.02 $0.82 1.25x 4/22/2015 Mitek Systems, Inc. (NasdaqCM:MITK) ID Checker.NL B.V. $10.60 - - 4/22/2015 Aurea Software Lyris, Inc. $15.56 $28.42 0.55x 4/21/2015 Free Stream Media Corp. Filmaster Sp. z o.o. $1.12 - - 4/20/2015 Accusoft Corporation Vuzit, LLC - - - 4/20/2015 Ooyala, Inc. Nativ Limited - - - 4/18/2015 Blackfin Capital Partners SAS AM Fine Services & Software SAS - - - 4/16/2015 ESI Group SA (ENXTPA:ESI) Ciespace Corporation - - - 4/16/2015 Interactive Brokers Group, Inc. (NasdaqGS:IBKR) Covestor, Inc. - - - 4/17/2015 RealPage, Inc. (NasdaqGS:RP) Indatus ICIM Corp., Select Assets $49.00 - - 4/16/2015 AppDynamics, Inc. BugBuster SA - - - 4/15/2015 Hewlett-Packard Company (NYSE:HPQ) ConteXtream, Inc. - - - 4/15/2015 Greater Intell Inc. Stella Now Limited - - - 4/14/2015 Market Tech Holdings Limited (AIM:MKT) Stucco Media Limited $42.86 $6.10 7.03x 4/14/2015 CCC Information Services Inc. DriveFactor Inc. $22.00 - - 4/13/2015 Singapore Telecommunications Limited (SGX:Z74) TrustWave Holdings, Inc. $826.53 $216.00 3.83x Charter Communications, Inc. (NasdaqGS:CHTR); ARRIS Group, Inc. 4/9/2015 ActiveVideo Networks, Inc. $135.00 - - (NasdaqGS:ARRS) 4/8/2015 Market Track, LLC New Momentum, Inc. - - - 4/8/2015 Vert Capital Corporation Asahi Net International, Inc. - - - 4/8/2015 International Business Machines Corporation (NYSE:IBM) Explorys, Inc. - - - 4/8/2015 Cox Automotive, Inc. Dealertrack Technologies, Inc. (NasdaqGS:TRAK) $4,459.51 $948.36 4.70x 4/7/2015 eCommerce Industries, Inc. Naverisk Ltd. - - - 4/7/2015 Carl Capital Corp. FlowWorks, Inc. - $0.83 - 4/8/2015 Towers Watson & Co. (NasdaqGS:TW) Saville Consulting Group Ltd $63.94 - - 4/7/2015 Box, Inc. (NYSE:BOX) Verold Inc. - - - 4/6/2015 The Learning House, Inc. Acatar LLC - - - 4/3/2015 mClinica Pte. Ltd. Medix - - - 4/7/2015 Unit4 N.V. Three Rivers Systems, Inc. - - - 4/2/2015 Driftt, Inc. Fetchnotes, Inc. - - - 4/1/2015 Tune, Inc. Appfuel - - - 4/1/2015 Sony Computer Entertainment Inc. OL2, Inc. - - - 4/1/2015 mGage LLC Unicel Technologies Pvt. Ltd. - $15.64 -

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

350 304 300 241 244 244 250 215 2.9x 2.9x 200 2.1x 2.0x 150 1.7x 100 50 0 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15

• After holding steady for the past three quarters, Internet M&A deal volume rose sharply in 2Q15. • Q2’s 304 Internet M&A transactions represented a 41% YoY gain (215 in 2Q14 vs 304 in 2Q15). • The 2.9x median TTM EV/Revenue exit multiple for Internet sellers in 2Q15 equaled 1Q15’s mark, a breathtaking benchmark compared to historical norms. • Recent leading second quarter Internet M&A transactions included Hotspring Ventures’ acquisition of Treatwell Holding ($38 million, 141.7x EV/Revenue) in 2Q15 and Equinix’s acquisition of Telecity Group ($4.1 billion, 7.6x EV/Revenue) in 2Q15.

2Q15 M&A Volume by Product Category M&A Volume by Quarter

7.6%

9.2% 28.6% Ad-Tech & Lead Gen Category 2Q 2014 3Q 2014 4Q 2014 1Q15 2Q15 Ad-Tech & Lead Gen 68 73 67 73 87 3.6% Commerce Commerce 41 49 65 50 74 Content & Media 41 43 52 60 81 Content & Media Gaming 16 21 13 10 11 Infrastructure 25 32 32 32 28 Gaming Social Tech 24 23 15 19 23 Total 215 241 244 244 304 Infrastructure

Social Tech 26.6% 24.3%

• With the exception of Internet Infrastructure, all internet M&A categories experienced higher deal volume in 2Q15 over 1Q15. • Three categories posted exceptional deal activity, accounting for most of Q2’s uptick in deal volume. The Ad-Tech and Lead Gen category racked up 87 deals in 2Q15, a 19% increase over 1Q15 and 28% YoY increase; Content & Median posted 81 deals in 2Q15, a 35% increase over 1Q15 and ~100% YoY increase); and Commerce saw 74 deals in 2Q15, a 48% increase over 1Q15 and 81% YoY increase. • Infrastructure’s 28 transactions, and Social Tech’s 23 transactions in 2Q15, were both in line with historical norms. • Gaming once again had the lowest transaction volume.

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 A10 Networks 4.0x 3.2x 0.8x 1.0x 1.4x ------26.6% 26.6% 12.6% -1.0% -1.7% -12.8% -12.8% -18.8% Accretive Health 0.3x 0.3x 0.4x - 0.4x 4.7x 4.8x 6.2x - 7.1x -2.1% -3.1% 0.5% 0.5% 5.8% 6.7% 6.6% 6.3% 6.3% 6.1% ACI Worldwide 2.9x 2.8x - 3.0x 3.5x 12.9x 12.9x - 14.6x 16.9x 33.8% 30.3% 17.5% 17.5% 11.2% 22.2% 21.6% 20.5% 20.5% 20.5% Activision Blizzard 3.4x - 3.4x - 3.8x 11.5x - 11.7x - 12.6x -12.7% -13.9% -3.8% -3.8% 4.7% 29.5% 27.2% 28.9% 28.9% 30.4% Advent Software ------6.3% 5.6% 3.6% 3.6% 4.1% 18.6% 24.1% 25.9% 25.9% 26.2% Allot Communications 3.1x - 2.2x 1.8x 1.2x 552.2x - 80.6x 68.1x 33.8x -3.8% 8.3% 21.4% 21.4% 17.6% 0.6% 3.4% 2.7% 2.7% 3.5% Allscripts Healthcare Solutions - 2.4x 2.3x 2.1x 2.2x - 104.4x 56.3x 50.0x 47.3x -4.4% -2.2% 0.4% 0.4% 0.4% 1.4% 2.3% 4.1% 4.1% 4.6% Amdocs Limited 1.8x 1.8x 1.8x 1.7x 2.0x 9.8x 10.0x 9.3x 9.1x 10.3x 4.8% 5.6% 6.6% 6.6% 4.8% 18.4% 18.3% 18.9% 18.9% 19.4% American Software 2.2x 2.0x 1.9x 2.0x 2.1x 13.8x 12.6x 15.7x 17.8x 17.9x 0.1% 4.4% 1.3% 1.3% 2.3% 16.2% 15.9% 12.3% 11.1% 11.5% ANSYS 7.3x 6.8x 6.9x 7.0x 7.7x 15.7x 14.7x 15.0x 15.1x 16.7x 8.4% 8.0% 8.7% 8.7% 6.8% 46.8% 46.5% 46.0% 46.0% 46.0% Aspen Technology 10.1x 9.6x 8.8x 7.3x 8.1x 34.1x 28.4x 22.6x 18.6x 20.0x 27.7% 25.7% 20.4% 20.4% 14.6% 29.7% 34.0% 38.9% 38.9% 40.7% Autodesk 4.3x 4.2x 4.6x 4.9x 4.6x 25.1x 27.2x 36.0x 45.4x 47.3x 0.1% 3.7% 6.1% 10.5% 11.8% 17.1% 15.3% 12.8% 10.7% 9.7% AVG Technologies 2.8x 2.6x 2.3x 2.5x 3.6x 7.9x 7.8x 7.2x 7.8x 11.5x 4.8% -3.0% -8.1% -8.1% -3.2% 35.0% 33.6% 32.4% 32.4% 31.0% Bango PLC 7.4x 6.8x 9.1x 11.6x 9.2x ------16.5% -19.5% -42.0% -42.0% -42.0% -60.4% -71.1% -95.7% -95.7% -95.7% Barracuda Networks 6.8x 5.2x 4.8x 5.9x 6.8x 454.1x 162.7x 140.6x 209.0x 308.2x 16.5% 16.8% 17.6% 18.7% 18.7% 1.5% 3.2% 3.4% 2.8% 2.2% Blackbaud 3.1x 3.1x 3.2x 3.6x 4.6x 16.0x 15.9x 19.5x 22.0x 28.2x 10.1% 9.5% 12.0% 12.0% 13.2% 19.5% 19.6% 16.5% 16.5% 16.2% Bottomline Technologies 4.5x 3.5x 3.1x 2.9x 3.1x 41.4x 31.6x 24.3x 22.6x 23.3x 13.1% 18.0% 19.8% 19.8% 15.2% 10.9% 11.1% 12.6% 12.6% 13.5% Broadridge Financial 1.9x 1.9x 2.0x 2.2x 2.5x 9.7x 9.6x 10.1x 10.9x 12.7x 7.2% 5.2% 4.6% 4.6% 4.5% 19.7% 20.4% 19.9% 19.9% 20.0% Brocade Communications Systems 2.0x 1.6x 1.6x 1.9x 2.1x 7.7x 5.9x 6.2x 7.3x 8.0x -2.8% -1.6% -0.5% 1.1% 1.6% 25.5% 26.2% 25.8% 25.6% 26.0% BSQUARE 0.2x 0.2x 0.2x 0.2x 0.4x - 65.0x 5.7x 7.3x 7.4x -2.8% 1.2% 4.1% 4.1% 5.8% -1.3% 0.3% 3.3% 3.3% 5.2% CA Technologies 3.0x 2.6x 2.6x 2.8x 2.9x 9.2x 8.2x 8.4x 8.9x 9.1x -2.0% -1.6% -0.4% -0.4% -3.4% 32.2% 31.7% 31.1% 31.1% 32.3% Cadence Design Systems 2.8x 2.8x 3.1x 3.2x 3.3x 14.2x 14.0x 15.7x 15.3x 15.5x 8.8% 7.4% 7.4% 8.3% 8.7% 19.9% 19.9% 19.9% 20.9% 21.4% Cerner 6.4x 5.4x 5.8x 6.2x 6.7x 24.2x 20.6x 21.9x 21.2x 23.4x 11.1% 15.2% 15.2% 16.6% 20.0% 26.3% 26.5% 26.5% 29.0% 28.4% Check Point Software Tech 8.4x 7.9x 7.9x 8.9x 9.3x 15.3x 14.4x 14.5x 16.4x 17.1x 4.5% 5.3% 7.3% 7.3% 8.0% 55.1% 54.7% 54.3% 54.3% 54.0% Cisco Systems 1.9x 2.0x 2.1x 2.2x 2.3x 6.8x 7.4x 7.5x 7.4x 8.4x -1.4% -3.0% -3.1% 0.4% 3.1% 27.8% 27.3% 27.5% 29.1% 27.7% Citrix Systems 3.3x 3.2x 3.8x 3.5x 3.5x 14.7x 13.3x 17.6x 16.4x 16.3x 12.2% 9.4% 7.7% 7.7% 5.2% 22.7% 23.8% 21.4% 21.4% 21.4% ClickSoftware Technologies Ltd ------10.2% -8.5% 1.7% 1.7% 6.2% 13.8% 13.1% 15.9% 15.9% 14.3% CommVault Systems 4.9x 3.4x 3.2x 2.9x 2.7x 26.9x 19.8x 28.0x 25.2x 31.6x 18.2% 16.5% 8.1% 8.1% 3.6% 18.2% 17.1% 11.5% 11.5% 8.4% Computer Programs and Sys 3.5x 3.3x 3.3x 3.2x 2.9x 12.7x 11.9x 12.6x 12.3x 11.6x 8.0% 3.7% 1.9% 1.9% -2.2% 27.3% 27.9% 26.0% 26.0% 24.7% Constellation 4.0x 3.5x 3.3x 3.8x 5.2x 29.9x 35.8x 22.9x 25.7x 32.3x 41.7% 40.8% 37.9% 37.9% 25.8% 13.5% 9.9% 14.6% 14.6% 16.1% CSG Systems International 1.3x 1.3x 1.3x 1.3x 1.5x 7.8x 7.9x 8.5x 8.1x 9.4x 0.3% -0.2% 0.5% 0.5% -0.8% 16.2% 16.0% 15.7% 15.7% 16.3% Cyan 1.3x 1.4x 1.4x 1.0x 1.7x - - - - - 1.2% -12.5% -13.8% -13.8% 7.5% -41.2% -49.9% -49.3% -49.3% -35.8% Cyberark Software - - 8.2x 9.7x 14.9x - - 39.6x 47.0x 62.0x - - 55.7% 55.7% 67.4% 13.2% 12.6% 20.6% 20.6% 24.1% Cyren 2.9x 2.6x 2.4x 1.6x 2.9x - - - - - 25.0% 15.2% -1.0% -1.0% -4.9% -10.6% -13.7% -13.3% -13.3% -12.5% Dassault Systèmes 4.4x 4.7x 5.5x 5.3x 6.9x 16.2x 17.9x 22.1x 21.1x 27.1x 1.6% 2.3% 11.0% 11.0% 17.3% 27.4% 26.3% 25.1% 25.1% 25.4% DST Systems 1.8x 1.6x 1.5x 1.5x 1.7x 11.2x 10.1x 9.8x 9.8x 10.9x 2.1% 2.0% 3.4% 3.4% 4.1% 15.7% 15.5% 15.5% 15.5% 15.7% Electronic Arts 2.1x 2.3x 2.2x 2.5x 3.8x 30.9x 24.4x 8.8x 10.0x 14.9x -5.8% 1.3% 21.6% 21.6% 26.3% 6.9% 9.5% 24.9% 24.9% 25.2%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 EMC 2.3x 2.2x 2.4x 2.4x 2.1x 9.8x 9.7x 10.1x 10.0x 9.3x 5.9% 5.7% 5.2% 5.2% 5.4% 23.7% 23.1% 23.9% 23.9% 22.9% EPIQ Systems 1.7x 1.6x 1.8x 2.0x 2.1x 11.2x 12.2x 15.5x 16.7x 16.2x 23.9% 21.7% 1.2% 1.2% -3.6% 15.1% 13.2% 11.8% 11.8% 12.9% Evertec 7.4x 7.1x 6.8x 6.6x 6.5x 19.2x 17.7x 16.3x 15.7x 15.5x 3.3% 2.5% 0.9% 0.9% 1.9% 38.5% 40.2% 41.9% 41.9% 42.1% Evolving Systems 3.7x 3.0x 3.4x 3.6x 3.1x 17.3x 12.3x 11.1x 11.8x 10.1x -7.4% 3.9% 18.3% 18.3% 19.0% 21.4% 24.6% 30.4% 30.4% 31.1% F5 Networks 4.8x 4.5x 4.5x 4.9x 4.5x 15.8x 14.7x 14.4x 15.6x 14.3x 11.3% 14.7% 17.5% 17.5% 15.6% 30.7% 30.8% 31.1% 31.1% 31.6% Fair Isaac 3.2x 3.1x 2.9x 3.4x 4.1x 12.0x 11.8x 12.6x 14.7x 18.3x 3.9% 2.5% 7.6% 7.6% 9.7% 26.4% 26.0% 23.3% 23.3% 22.3% FalconStor Software 1.0x 1.0x 0.9x 0.7x 0.9x - - - - 128.8x -22.4% -23.5% -21.1% -21.1% -2.1% -10.7% -9.2% -18.0% -18.0% 0.7% Fidessa 3.2x 2.9x 3.0x 3.1x 2.8x 16.9x 15.5x 16.6x 16.9x 15.5x 0.1% 0.1% -1.4% -1.4% -1.4% 19.1% 18.8% 18.2% 18.2% 18.2% Fiserv 3.7x 3.7x 3.8x 4.0x 4.4x 12.7x 12.7x 12.8x 13.6x 14.6x 9.0% 7.6% 5.2% 5.2% 4.3% 29.1% 29.3% 29.7% 29.7% 30.3% Fortinet 4.9x 4.5x 4.7x 4.9x 7.1x 38.1x 35.8x 43.8x 46.5x 79.2x 17.4% 20.0% 25.2% 25.2% 25.6% 13.0% 12.5% 10.6% 10.6% 9.0% GameLoft SA 2.5x 2.2x 1.8x 1.3x 1.3x 18.6x 19.9x 35.6x 25.0x 26.4x 8.7% 5.7% -2.6% -2.6% -2.6% 13.4% 11.3% 5.1% 5.1% 5.1% Gigamon 5.9x 2.7x 1.4x 2.0x 4.9x - - - - - 38.2% 15.4% 12.0% 17.8% 17.8% -25.8% -11.4% -9.3% -1.6% -1.6% Glu Mobile 2.8x 2.1x 2.0x 1.7x 2.9x - - 29.7x 25.5x 43.2x 18.2% 40.0% 111.3% 111.3% 97.5% -6.0% -2.4% 6.6% 6.6% 6.7% Gree 1.6x 1.4x 1.6x 1.3x 1.1x 4.7x 4.3x 5.0x 4.0x 3.5x -12.4% -17.5% -25.0% -25.0% -27.9% 34.2% 33.5% 31.4% 31.4% 30.3% GSE Systems 0.3x 0.3x 0.3x 0.2x 0.3x ------14.3% -16.2% -20.3% -20.3% -1.6% -8.9% -10.4% -12.3% -12.3% -7.3% Guidance Software 2.6x 2.3x 1.9x 1.5x 1.7x ------16.4% -14.1% -1.7% -1.7% -0.6% -11.1% -8.3% -5.3% -5.3% -4.3% Guidewire Software 9.1x 6.3x 7.0x 8.1x 8.2x 113.6x 92.9x 77.2x 93.6x 121.3x 21.2% 16.5% 19.6% 17.2% 13.3% 8.0% 6.8% 9.1% 8.7% 6.8% Hewlett Packard 0.6x 0.6x 0.7x 0.7x 0.6x 5.6x 5.5x 5.6x 5.7x 5.1x -3.2% -0.8% -0.8% -1.7% -3.2% 11.5% 11.5% 11.8% 11.9% 12.0% IBM 2.4x 2.3x 2.5x 2.1x 2.2x 8.9x 8.9x 9.3x 8.1x 8.3x -5.9% -3.3% -5.7% -5.7% -7.3% 26.8% 25.6% 26.3% 26.3% 26.2% iDream Sky Technologies - - 5.2x 4.1x 1.4x - - 299.0x 237.7x 74.3x - - 299.1% 299.1% 196.5% 20.8% 20.8% 1.7% 1.7% 1.9% Imperva 9.8x 3.3x 3.9x 6.3x 8.4x - - - - - 26.4% 25.2% 19.1% 19.1% 26.0% -23.6% -28.8% -32.3% -32.3% -31.4% Informatica 3.8x 3.3x 2.8x 3.2x 4.3x 21.0x 18.0x 15.1x 16.9x 23.8x 17.7% 16.6% 10.5% 10.5% 8.0% 17.9% 18.3% 18.7% 18.7% 18.1% Intuit 4.9x 4.5x 4.8x 5.4x 6.2x 14.4x 13.7x 15.0x 17.5x 25.1x 15.1% 8.0% 7.7% 11.0% -0.9% 33.9% 33.0% 31.8% 30.6% 24.7% Jack Henry & Associates 4.1x 4.1x 4.0x 4.1x 4.3x 12.8x 12.2x 11.8x 12.0x 12.6x 3.3% 5.9% 8.4% 8.4% 9.1% 32.3% 33.5% 33.7% 33.7% 34.4% Juniper Networks 2.4x 2.1x 2.0x 1.9x 2.3x 14.1x 11.8x 11.5x 10.7x 12.6x 8.8% 8.7% -0.9% -0.9% -5.3% 17.0% 17.6% 17.7% 17.7% 18.4% King Digital Entertainment 2.6x 2.0x 1.6x 1.7x 1.8x 7.3x 5.6x 4.9x 5.1x 5.1x 555.3% 213.8% 20.4% 20.4% -2.3% 36.0% 36.5% 32.8% 32.8% 35.2% Konami 1.5x 1.4x 1.7x 1.4x 1.3x 14.0x 12.1x 14.1x 11.4x 9.9x -3.7% -0.8% -1.9% -1.9% 0.3% 10.4% 11.6% 12.2% 12.2% 13.3% Magic Software Enterprises 2.2x 1.7x 1.4x 1.3x 1.3x 11.6x 8.9x 7.9x 7.3x 6.8x 17.5% 16.0% 13.3% 13.3% 7.3% 19.2% 19.2% 17.9% 17.9% 18.9% Manhattan Associates 6.0x 5.3x 4.5x 5.8x 7.7x 22.1x 19.2x 16.7x 21.3x 28.1x 13.1% 15.7% 18.7% 18.7% 18.7% 27.2% 27.4% 27.1% 27.1% 27.5% MedAssets 3.4x 3.2x 3.0x 2.9x 2.9x 11.4x 10.9x 9.9x 9.6x 9.8x 2.3% 1.8% 5.9% 5.9% 8.3% 30.1% 29.6% 29.9% 29.9% 29.1% Mentor Graphics 2.1x 2.0x 2.1x 2.0x 2.3x 10.7x 10.6x 11.0x 10.1x 10.7x 10.7% 10.1% 11.0% 7.6% 6.9% 20.0% 19.1% 18.9% 20.1% 21.6% Merge Healthcare 2.1x 2.0x 2.1x 2.4x 3.3x 17.7x 14.7x 12.6x 13.9x 19.4x -13.0% -12.3% -8.4% -8.4% -1.4% 11.6% 13.4% 16.9% 16.9% 16.8% Microsoft 3.4x 3.1x 3.3x 3.5x 3.3x 9.0x 8.4x 9.2x 9.7x 9.3x 9.6% 11.5% 12.0% 12.0% 13.7% 37.8% 37.0% 36.0% 36.0% 35.5% MicroStrategy 1.6x 1.9x 2.1x 2.5x 2.9x 23.5x 36.6x 30.2x 36.4x 23.2x 4.7% 4.9% 0.7% 0.7% -3.1% 7.0% 5.1% 6.9% 6.9% 12.4% Millennial Media 2.3x 1.3x 0.6x 0.4x 0.7x - - - - - 45.4% 38.2% 14.3% 14.3% 1.5% -2.0% -4.9% -12.1% -12.1% -14.5% MIND C.T.I. 0.9x 1.1x 1.5x 1.7x 1.5x 5.0x 5.1x 5.0x 5.7x 4.6x 1.8% 16.7% 35.4% 35.4% 26.8% 17.3% 21.1% 30.7% 30.7% 32.3% MobileIron - 6.0x 4.6x 4.3x 2.7x ------25.3% 25.3% 27.4% -33.8% -40.7% -43.3% -43.3% -46.5%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 Model N 1.5x 1.6x 1.7x 1.9x 2.5x - - - - - 4.7% -8.3% -18.6% -18.6% -13.3% -1.0% -11.6% -23.9% -23.9% -22.6% Momo - - - 46.5x 26.3x ------1330.3% 1330.3% 665.4% -89.0% -72.4% -52.1% -52.1% -24.6% Monotype Imaging Holdings 7.0x 5.5x 5.9x 5.6x 5.3x 20.6x 16.3x 17.9x 17.2x 17.0x 8.3% 9.0% 10.7% 10.7% 8.1% 34.2% 34.0% 32.8% 32.8% 31.1% MSCI 6.0x 5.1x 5.6x 5.7x 7.1x 13.3x 12.4x 13.4x 13.7x 17.2x -0.7% 16.3% 9.1% 9.1% 9.2% 44.8% 41.2% 41.3% 41.3% 41.2% Myriad Group AG 3.4x 3.3x 6.7x 10.9x 16.8x - - 21.6x 35.0x 53.9x -20.4% -17.3% -6.9% -6.9% -6.9% -11.4% -6.8% 31.2% 31.2% 31.2% NetApp 1.3x 1.2x 1.5x 1.5x 1.1x 8.0x 7.6x 9.0x 9.4x 7.9x -0.1% -1.7% -1.9% -2.5% -3.2% 16.2% 16.4% 16.4% 16.0% 14.3% Netscout Systems 3.6x 3.4x 3.7x 3.1x 3.2x 14.9x 13.6x 14.6x 12.0x 11.7x 13.1% 18.7% 16.8% 16.8% 14.4% 24.1% 24.6% 25.5% 25.5% 27.5% NetSol Technologies 1.3x 1.2x 1.1x 1.3x 1.2x 8.5x - - - - -17.9% -21.7% -9.6% -9.6% 16.6% 15.2% -8.9% -17.0% -17.0% -4.2% NeuStar 2.7x 2.2x 2.2x 1.8x 2.1x 6.9x 5.8x 5.8x 4.9x 5.5x 7.9% 8.2% 6.8% 6.8% 7.6% 38.7% 37.6% 37.2% 37.2% 38.6% NICE Systems Ltd 2.6x 2.3x 2.1x 2.6x 3.4x 14.8x 13.5x 11.5x 13.7x 17.3x 6.8% 6.8% 6.6% 6.6% 7.9% 17.5% 16.9% 18.7% 18.7% 19.5% NQ Mobile 3.3x 1.8x 0.7x 1.2x 1.1x - - - - - 123.1% 123.1% 68.9% 68.9% 40.5% -8.5% -8.5% -20.1% -20.1% -18.0% Nuance Communications, Inc. 3.7x 3.5x 3.6x 3.2x 3.5x 36.1x 38.6x 37.0x 33.3x 32.6x 4.1% 2.2% 3.5% 3.5% 2.1% 10.2% 9.1% 9.7% 9.7% 10.9% Omnicell 2.3x 2.1x 2.0x 2.4x 2.6x 15.5x 14.6x 13.0x 15.6x 17.3x 17.3% 14.4% 15.8% 15.8% 15.2% 15.2% 14.7% 15.1% 15.1% 15.0% Open Text Corp 3.9x 4.2x 4.1x 4.2x 3.7x 15.2x 15.1x 13.7x 14.0x 12.8x 11.8% 19.2% 35.4% 35.4% 26.1% 25.5% 27.6% 30.0% 30.0% 28.9% Opera 4.9x 4.5x 3.7x 3.6x 2.4x 18.3x 18.2x 17.9x 17.6x 13.6x 40.7% 39.9% 60.2% 60.2% 60.1% 26.6% 24.5% 20.7% 20.7% 17.9% Oracle 4.5x 4.4x 4.3x 4.2x 4.7x 10.3x 10.1x 9.8x 9.6x 11.2x 2.9% 3.0% 3.4% 2.5% -0.1% 43.7% 43.7% 43.6% 43.2% 42.0% Palo Alto Networks 9.0x 7.7x 9.3x 11.4x 15.2x - - - - - 48.1% 51.0% 51.1% 53.0% 54.5% -5.0% -7.5% -8.8% -10.4% -12.1% Pandora Media 8.1x 6.1x 5.6x 4.0x 3.5x ------40.6% 40.6% 30.4% -1.0% -1.4% -1.7% -1.7% -3.6% Parametric Technology 3.2x 3.2x 3.4x 3.4x 3.6x 14.9x 14.5x 15.3x 16.1x 17.6x 3.4% 4.8% 4.9% 4.5% 2.2% 21.8% 22.3% 21.9% 20.9% 20.3% PDF Solutions 4.5x 4.6x 5.1x 2.9x 3.9x 12.8x 12.9x 17.0x 9.6x 13.0x 12.3% 9.5% -1.3% -1.3% -4.3% 34.8% 35.4% 29.9% 29.9% 30.1% Pegasystems 2.3x 2.2x 2.4x 2.3x 2.4x 14.6x 15.6x 19.0x 18.0x 20.1x 14.2% 16.7% 15.9% 15.9% 13.2% 15.8% 14.4% 12.8% 12.8% 12.0% Progress Software 2.8x 2.7x 2.9x 3.1x 3.7x 9.4x 8.7x 9.2x 11.6x 16.7x -0.8% -1.2% -0.4% 4.5% 7.2% 29.3% 30.9% 31.5% 26.5% 22.1% Proofpoint 8.6x 6.5x 6.9x 8.1x 10.8x - - - - - 33.3% 39.0% 41.8% 41.8% 40.6% -15.1% -16.4% -16.4% -16.4% -17.1% PROS Holdings 5.8x 4.1x 3.7x 3.8x 3.1x 264.8x - - - - 22.3% 22.1% 28.3% 28.3% 24.0% 2.2% -0.6% -2.7% -2.7% -5.3% QAD 0.9x 0.9x 0.9x 0.9x 1.2x 16.1x 15.5x 13.3x 12.8x 16.6x 9.0% 10.3% 11.8% 10.8% 8.4% 5.7% 5.7% 6.5% 7.0% 7.1% Qihoo 360 Technology 14.8x 10.8x 8.0x 6.0x 5.1x 49.9x 40.8x 32.1x 24.3x 19.6x 123.6% 121.3% 107.2% 107.2% 82.7% 29.7% 26.6% 24.8% 24.8% 25.9% Qiwi 4.5x 3.7x 7.1x 4.9x 5.2x 18.3x 13.6x 24.6x 16.9x 16.5x 30.0% 26.3% 26.2% 26.2% 24.5% 24.3% 27.5% 28.9% 28.9% 31.4% Qlik Technologies 4.6x 3.5x 3.9x 4.4x 5.3x 387.7x 208.5x 769.0x 851.5x 987.4x 19.5% 18.8% 18.4% 18.4% 16.7% 1.2% 1.7% 0.5% 0.5% 0.5% Quality Systems 2.1x 1.9x 1.7x 1.6x 1.7x 15.3x 17.0x 18.6x 17.8x 16.3x -3.4% 0.3% 8.2% 8.2% 10.2% 13.9% 11.1% 9.0% 9.0% 10.4% Radware 3.4x 2.9x 2.7x 3.5x 4.4x 23.5x 21.8x 15.1x 19.6x 23.0x 5.1% 8.4% 15.0% 15.0% 14.7% 14.4% 13.5% 17.8% 17.8% 19.1% Red Hat 5.8x 5.1x 5.9x 5.8x 7.3x 30.2x 27.3x 32.0x 31.6x 38.7x 15.8% 16.6% 16.5% 16.6% 15.8% 19.1% 18.8% 18.5% 18.5% 18.9% Redknee Solutions 2.1x 1.9x 1.3x 1.1x 1.5x 37.2x 153.8x 26.4x 23.6x 22.2x 349.5% 156.4% 38.1% 38.1% -3.1% 5.6% 1.2% 4.8% 4.8% 6.7% Sage Group 3.7x 3.6x 3.7x 3.3x 4.8x 12.7x 12.4x 12.9x 11.7x 16.8x -3.7% -4.4% -1.6% -1.6% 1.9% 29.5% 28.9% 28.4% 28.4% 28.4% SAP AG 4.3x 4.0x 4.4x 3.9x 4.8x 12.8x 12.1x 12.9x 11.5x 14.7x 2.7% 2.2% 4.4% 4.4% 8.6% 33.5% 32.8% 34.2% 34.2% 32.9% Sapiens International 2.2x 2.0x 1.9x 2.0x 2.3x 19.0x 17.2x 16.2x 16.5x 18.4x 17.6% 16.6% 16.3% 16.3% 15.2% 11.3% 11.6% 11.9% 11.9% 12.7% Silver Spring Networks 3.3x 2.0x 2.0x 1.5x 1.8x - - - - - 62.8% 3.5% -41.5% -41.5% -8.4% -7.2% -22.7% -41.9% -41.9% -6.3% Software AG 2.4x 2.5x 2.1x 2.0x 2.5x 9.7x 10.6x 8.4x 8.0x 9.5x -6.0% -8.2% -11.8% -11.8% -11.9% 24.8% 23.6% 25.4% 25.4% 26.1%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 SolarWinds 8.7x 7.1x 6.9x 8.3x 7.7x 22.7x 20.2x 21.8x 26.1x 24.9x 27.0% 29.3% 27.8% 27.8% 25.5% 38.4% 35.2% 31.9% 31.9% 31.0% Sourcefire 1.0x 1.0x 1.3x 0.9x 1.0x 7.2x 8.1x 18.8x 13.3x 13.7x 36.0% 43.9% 10.3% 10.3% 2.2% 13.6% 12.7% 6.7% 6.7% 7.1% Splunk 23.9x 14.3x 12.0x 14.9x 15.5x - - - - - 51.3% 51.6% 50.6% 49.0% 48.1% -31.0% -40.8% -44.9% -45.1% -45.5% SS&C 5.7x 5.6x 5.6x 6.1x 7.3x 14.3x 14.3x 14.4x 15.8x 19.5x 14.9% 7.1% 7.7% 7.7% 8.6% 39.6% 39.0% 38.9% 38.9% 37.5% Stratasys 9.0x 6.8x 6.8x 6.4x 2.0x 57.8x 46.9x 49.9x 47.4x 18.5x 101.2% 88.0% 54.9% 54.9% 43.4% 15.6% 14.6% 13.6% 13.6% 10.6% Symantec 1.8x 1.9x 2.2x 2.4x 2.3x 6.3x 6.6x 7.5x 8.2x 8.1x -3.3% -3.5% -2.9% -2.7% -2.5% 29.0% 29.0% 29.2% 29.0% 28.3% Synchronoss Technologies 3.7x 3.2x 3.6x 3.9x 4.2x 15.8x 12.5x 13.5x 14.8x 15.4x 28.5% 27.8% 31.0% 31.0% 33.2% 23.7% 25.7% 26.6% 26.6% 27.1% Synopsys 2.6x 2.5x 2.7x 2.7x 3.1x 15.0x 14.3x 14.9x 14.2x 16.3x 6.0% 5.8% 4.9% 7.9% 8.8% 17.3% 17.6% 18.0% 18.9% 19.3% Take-Two Interactive 0.7x 0.6x 1.6x 1.9x 1.5x 3.8x 3.3x - - - 93.5% 106.3% -60.2% -60.2% -53.9% 18.4% 19.3% -4.9% -4.9% -21.9% Tangoe 3.6x 2.7x 2.3x 2.2x 2.2x 44.1x 37.7x 30.3x 28.5x 28.5x 17.7% 14.4% 12.5% 12.5% 10.9% 8.1% 7.2% 7.7% 7.7% 7.7% TeleCommunication Systems 0.6x 0.8x 0.7x 0.7x 0.8x 10.2x 10.4x 8.4x 8.3x 8.9x -26.9% -24.8% -0.7% -0.7% 1.1% 6.3% 7.4% 8.4% 8.4% 8.9% TeleNav 0.4x 0.5x 0.6x 0.9x 1.5x ------16.9% -21.6% -21.7% -21.7% -7.1% -8.0% -15.7% -25.6% -25.6% -22.7% Teradata 2.7x 2.3x 2.2x 2.2x 2.0x 11.3x 9.6x 10.1x 10.0x 9.9x 3.6% 3.6% 1.5% 1.5% -1.7% 23.6% 23.3% 22.0% 22.0% 20.1% The Descartes Systems Group 5.5x 5.2x 6.0x 5.7x 6.0x 19.5x 18.1x 20.5x 19.3x 20.0x 20.6% 17.2% 15.3% 12.9% 10.3% 28.2% 28.7% 29.1% 29.5% 30.0% Trend Micro 2.6x 2.9x 3.6x 3.2x 3.8x 7.5x 8.4x 10.1x 8.9x 11.0x 13.5% 9.8% 6.4% 6.4% 6.8% 34.7% 35.1% 35.8% 35.8% 34.4% Tyler Technologies 6.4x 5.6x 5.8x 7.0x 7.7x 32.7x 27.4x 26.8x 32.0x 34.6x 15.2% 17.2% 18.4% 18.4% 18.9% 19.5% 20.5% 21.8% 21.8% 22.3% Ubisoft Entertainment 1.6x 1.5x 1.1x 1.2x 1.1x 4.9x 4.9x 5.7x 6.2x 9.1x -19.8% -12.7% 16.9% 16.9% 45.3% 32.9% 30.3% 19.5% 19.5% 12.6% Varonis Systems 10.9x 5.7x 4.2x 4.3x 4.3x - - - - - 43.7% 38.0% 35.8% 35.8% 34.5% -11.1% -14.0% -15.8% -15.8% -18.3% VASCO Data Security International 1.3x 1.9x 2.2x 4.6x 3.9x 11.4x 14.2x 11.2x 23.5x 17.9x 0.9% 14.3% 30.0% 30.0% 43.7% 11.5% 13.3% 19.5% 19.5% 22.1% Verint Systems Inc 3.0x 2.7x 3.0x 3.4x 3.7x 18.1x 18.4x 22.9x 24.1x 25.5x 13.2% 18.3% 21.8% 24.4% 18.8% 16.6% 14.5% 13.2% 14.2% 14.3% Verisk 6.8x 6.7x 6.6x 6.4x 7.4x 14.9x 14.7x 14.6x 14.2x 16.0x 13.3% 14.2% 9.5% 9.5% 10.3% 45.6% 45.4% 45.2% 45.2% 46.1% VMWare 8.2x 6.5x 6.0x 5.1x 5.1x 29.5x 24.8x 23.9x 20.2x 20.2x 13.4% 15.0% 15.9% 15.9% 15.1% 27.8% 26.0% 25.3% 25.3% 25.1%

Billing & Service Management 2Q14 3Q14 4Q14 1Q15 2Q15 Enterprise Resource Planning 2Q14 3Q14 4Q14 1Q15 2Q15 IT Conglomerates 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 1.9x 1.8x 1.8x 1.8x 2.0x EV/Revenue 3.6x 3.4x 3.3x 4.0x 4.7x EV/Revenue 3.3x 3.5x 3.5x 3.1x 3.3x EV/EBITDA 10.1x 9.9x 9.1x 9.7x 10.1x EV/EBITDA 12.3x 11.9x 11.7x 12.9x 16.6x EV/EBITDA 8.6x 9.6x 9.6x 8.8x 9.3x EV/Earnings 20.7x 19.2x 16.3x 15.6x 16.0x EV/Earnings 20.0x 20.9x 23.0x 21.5x 26.0x EV/Earnings 14.1x 14.5x 15.8x 15.8x 16.4x Gross Profit Margin 57.3% 56.3% 59.7% 59.7% 59.7% Gross Profit Margin 61.3% 61.4% 61.5% 61.1% 60.3% Gross Profit Margin 61.3% 61.4% 61.5% 61.1% 60.3% EBITDA Margin 18.4% 21.1% 26.6% 26.6% 27.1% EBITDA Margin 29.5% 28.9% 28.4% 28.4% 28.4% EBITDA Margin 33.5% 32.8% 34.2% 34.2% 32.9% Net Income Margin 12.2% 11.7% 12.5% 12.5% 12.7% Net Income Margin 18.0% 16.2% 14.5% 14.5% 14.7% Net Income Margin 19.7% 18.7% 18.7% 18.7% 17.2% TTM Revenue Growth (YoY) 4.8% 8.2% 18.3% 18.3% 7.6% TTM Revenue Growth (YoY) 2.7% 3.0% 3.4% 2.5% 2.3% TTM Revenue Growth (YoY) 2.7% 2.2% 3.4% 2.5% -0.1% TTM EBITDA Growth (YoY) 2.3% -0.5% 51.2% 39.2% 16.0% TTM EBITDA Growth (YoY) 4.0% 1.6% -7.8% -6.9% -12.6% TTM EBITDA Growth (YoY) 1.4% 1.6% 3.1% 1.5% -3.9% TTM Earnings Growth (YoY) -9.2% -3.3% 28.1% 28.1% 24.2% TTM Earnings Growth (YoY) 16.0% 7.7% -1.4% -1.4% -9.3% TTM Earnings Growth (YoY) 8.1% 3.1% -2.0% -6.6% -10.8% Current Ratio 2.7 2.7 2.6 2.6 2.7 Current Ratio 1.2 1.2 1.2 1.5 1.6 Current Ratio 1.2 1.2 1.2 1.2 1.3 Cash as Percent of Market Cap 15.0% 20.8% 22.5% 17.7% 16.3% Cash as Percent of Market Cap 20.2% 21.5% 21.6% 23.2% 22.9% Cash as Percent of Market Cap 20.2% 21.5% 21.6% 19.4% 24.9% Enterprise Value Growth (YoY) 33.3% 25.3% 2.5% 0.0% 13.8% Enterprise Value Growth (YoY) 19.7% 21.3% 14.2% 2.2% 5.2% Enterprise Value Growth (YoY) 19.7% 21.3% 14.2% 8.7% 3.0%

Business Intelligence 2Q14 3Q14 4Q14 1Q15 2Q15 Financial & Accounting 2Q14 3Q14 4Q14 1Q15 2Q15 Mobile Solutions/Content 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.3x 3.0x 3.3x 3.6x 3.9x EV/Revenue 3.6x 3.3x 3.3x 3.5x 4.1x EV/Revenue 2.9x 3.1x 2.9x 2.1x 2.4x EV/EBITDA 14.9x 15.3x 14.8x 16.5x 18.3x EV/EBITDA 12.9x 13.2x 14.8x 14.7x 16.8x EV/EBITDA 16.2x 18.5x 21.0x 17.7x 17.5x EV/Earnings 28.1x 28.2x 28.5x 31.4x 38.9x EV/Earnings 22.4x 25.3x 28.3x 30.0x 33.6x EV/Earnings 33.8x 46.5x 46.1x 46.5x 78.1x Gross Profit Margin 73.4% 73.4% 74.6% 74.6% 75.3% Gross Profit Margin 55.2% 56.3% 55.2% 55.2% 56.0% Gross Profit Margin 52.6% 52.4% 57.2% 57.2% 57.4% EBITDA Margin 16.8% 16.3% 15.7% 15.7% 15.2% EBITDA Margin 24.3% 26.0% 23.3% 23.3% 22.3% EBITDA Margin -0.4% -1.9% 4.2% 4.2% 4.3% Net Income Margin 8.4% 8.1% 8.3% 8.3% 7.2% Net Income Margin 11.5% 14.4% 14.5% 14.5% 11.1% Net Income Margin -6.1% -10.7% -2.5% -2.5% -3.1% TTM Revenue Growth (YoY) 13.7% 15.4% 10.0% 10.0% 10.0% TTM Revenue Growth (YoY) 4.7% 2.5% 5.2% 5.2% 4.3% TTM Revenue Growth (YoY) 17.9% 21.1% 22.9% 22.9% 19.1% TTM EBITDA Growth (YoY) 3.4% 0.7% -6.9% -8.6% -17.8% TTM EBITDA Growth (YoY) 3.4% 6.6% 0.1% -2.6% -2.9% TTM EBITDA Growth (YoY) 5.2% 1.3% -0.8% -27.2% -24.8% TTM Earnings Growth (YoY) -0.1% 0.1% -7.6% -7.6% -5.9% TTM Earnings Growth (YoY) 11.0% 34.2% 16.4% 16.4% 9.3% TTM Earnings Growth (YoY) 156.3% 147.0% 1.3% 1.3% -3.2% Current Ratio 2.0 2.0 2.1 1.9 1.8 Current Ratio 1.2 1.3 1.2 1.2 1.3 Current Ratio 2.9 2.8 3.6 3.6 3.6 Cash as Percent of Market Cap 13.9% 17.5% 16.0% 13.8% 13.9% Cash as Percent of Market Cap 5.5% 5.4% 5.0% 5.4% 4.6% Cash as Percent of Market Cap 15.1% 16.1% 19.5% 19.8% 18.1% Enterprise Value Growth (YoY) 5.3% -13.0% -9.7% -3.5% 27.4% Enterprise Value Growth (YoY) 21.5% 13.8% 6.0% 4.9% 14.9% Enterprise Value Growth (YoY) 34.6% 29.5% -11.4% -35.6% -17.3%

Development Platforms 2Q14 3Q14 4Q14 1Q15 2Q15 Gaming 2Q14 3Q14 4Q14 1Q15 2Q15 Networking & Network Perf Mgmt 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 2.4x 1.8x 2.0x 2.2x 2.5x EV/Revenue 1.9x 1.5x 1.7x 1.6x 1.4x EV/Revenue 2.9x 2.2x 2.0x 2.2x 2.3x EV/EBITDA 9.4x 9.5x 8.0x 8.8x 9.5x EV/EBITDA 12.7x 13.0x 11.4x 12.5x 12.6x EV/EBITDA 15.5x 15.7x 15.7x 13.9x 14.3x EV/Earnings 17.1x 16.9x 15.8x 16.8x 18.9x EV/Earnings 70.8x 65.3x 25.9x 27.3x 19.4x EV/Earnings 21.9x 21.8x 26.3x 20.9x 18.9x Gross Profit Margin 70.0% 69.8% 72.5% 72.5% 73.5% Gross Profit Margin 64.4% 63.0% 67.0% 67.0% 66.7% Gross Profit Margin 74.3% 74.2% 73.2% 73.2% 73.2% EBITDA Margin 19.2% 19.2% 18.5% 18.5% 18.9% EBITDA Margin 15.9% 15.5% 15.9% 15.9% 13.0% EBITDA Margin 8.0% 8.5% 10.5% 10.2% 10.9% Net Income Margin 11.1% 10.9% 10.3% 10.1% 9.3% Net Income Margin 2.4% 2.8% 3.1% 3.1% 5.2% Net Income Margin 4.2% 4.4% -0.3% -4.7% -4.9% TTM Revenue Growth (YoY) -0.8% 1.2% 4.1% 4.5% 7.2% TTM Revenue Growth (YoY) -4.8% 0.2% -2.2% -2.2% 2.5% TTM Revenue Growth (YoY) 5.1% 8.4% 13.5% 16.2% 13.6% TTM EBITDA Growth (YoY) 7.6% 14.0% 12.1% 0.5% 5.7% TTM EBITDA Growth (YoY) -19.5% -18.5% -41.3% -35.7% -24.4% TTM EBITDA Growth (YoY) -1.5% 13.4% 14.7% 12.4% 12.8% TTM Earnings Growth (YoY) -4.1% -6.5% -9.9% -9.9% -10.5% TTM Earnings Growth (YoY) -48.4% -15.1% -28.4% -28.4% 122.1% TTM Earnings Growth (YoY) 3.3% 9.1% 17.2% 13.1% 28.7% Current Ratio 2.1 2.4 2.4 1.6 1.7 Current Ratio 2.5 3.2 2.5 2.5 2.1 Current Ratio 2.9 2.8 2.6 2.5 2.6 Cash as Percent of Market Cap 20.2% 23.8% 22.8% 23.1% 21.6% Cash as Percent of Market Cap 15.5% 19.4% 18.6% 18.4% 23.1% Cash as Percent of Market Cap 21.9% 22.8% 29.8% 26.5% 22.1% Enterprise Value Growth (YoY) 7.0% 16.7% 4.8% 5.2% 47.1% Enterprise Value Growth (YoY) 37.1% 10.9% 27.2% 15.3% -2.8% Enterprise Value Growth (YoY) 11.2% -0.6% 17.1% 6.0% 27.4%

Engineering & PLM 2Q14 3Q14 4Q14 1Q15 2Q15 Healthcare 2Q14 3Q14 4Q14 1Q15 2Q15 Security 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 4.3x 4.7x 3.4x 3.8x 3.6x EV/Revenue 2.3x 2.2x 2.4x 2.6x 2.7x EV/Revenue 3.2x 3.2x 4.6x 3.9x 3.9x EV/EBITDA 14.9x 15.6x 16.0x 15.7x 17.2x EV/EBITDA 14.2x 15.1x 14.8x 16.4x 16.8x EV/EBITDA 11.6x 15.0x 16.4x 17.2x 17.1x EV/Earnings 24.7x 25.6x 28.5x 28.4x 30.5x EV/Earnings 37.5x 36.3x 34.1x 34.2x 34.4x EV/Earnings 17.3x 18.0x 24.6x 21.1x 23.3x Gross Profit Margin 83.0% 82.9% 83.1% 84.1% 84.5% Gross Profit Margin 54.4% 54.0% 53.4% 53.4% 53.7% Gross Profit Margin 76.7% 76.7% 76.1% 76.1% 75.4% EBITDA Margin 20.0% 19.9% 19.9% 20.9% 21.4% EBITDA Margin 14.5% 14.1% 16.0% 16.0% 15.9% EBITDA Margin 11.5% 12.5% 6.7% 6.7% 7.1% Net Income Margin 12.9% 12.5% 11.8% 11.8% 11.1% Net Income Margin 3.8% 3.0% 3.2% 3.2% 6.2% Net Income Margin 6.2% 5.1% 3.3% 3.3% 2.3% TTM Revenue Growth (YoY) 8.4% 7.4% 7.4% 8.3% 8.7% TTM Revenue Growth (YoY) 0.1% 1.1% 3.9% 3.9% 7.1% TTM Revenue Growth (YoY) 16.5% 15.2% 17.6% 18.7% 12.6% TTM EBITDA Growth (YoY) 4.5% 5.8% 2.2% 4.7% 4.9% TTM EBITDA Growth (YoY) 7.3% 8.4% 7.7% 8.3% 9.3% TTM EBITDA Growth (YoY) -12.7% 0.5% -5.4% -7.1% -11.8% TTM Earnings Growth (YoY) -1.2% 15.3% 3.8% -3.3% -7.6% TTM Earnings Growth (YoY) 2.3% 2.8% 0.5% 27.3% 19.0% TTM Earnings Growth (YoY) 0.9% 26.3% 11.0% 6.8% -0.4% Current Ratio 2.3 2.0 1.7 1.7 1.7 Current Ratio 1.6 1.6 1.5 1.5 1.4 Current Ratio 1.8 1.9 1.9 1.9 1.7 Cash as Percent of Market Cap 12.0% 12.2% 12.4% 12.5% 13.4% Cash as Percent of Market Cap 7.2% 9.9% 9.1% 6.4% 6.0% Cash as Percent of Market Cap 12.2% 15.1% 14.2% 13.4% 12.0% Enterprise Value Growth (YoY) 15.0% 14.9% -4.4% 1.9% 17.5% Enterprise Value Growth (YoY) 11.6% 0.1% -2.9% -9.6% 7.8% Enterprise Value Growth (YoY) 20.1% 14.0% 5.4% 10.3% 29.6%

Storage, Data Mgmt & Integration 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 2.5x 2.5x 2.6x 2.5x 2.5x EV/EBITDA 8.2x 9.0x 9.1x 9.2x 9.2x EV/Earnings 13.7x 16.2x 17.5x 18.6x 17.5x Gross Profit Margin 79.4% 79.7% 79.7% 79.7% 81.7% EBITDA Margin 18.0% 17.7% 17.5% 17.3% 16.2% Net Income Margin 10.5% 10.1% 10.4% 10.4% 9.8% TTM Revenue Growth (YoY) 2.9% 2.0% 2.4% 3.2% 3.4% TTM EBITDA Growth (YoY) 7.7% 8.8% -7.9% -5.1% -0.6% TTM Earnings Growth (YoY) 10.4% 10.3% -6.1% -6.1% -4.7% Current Ratio 2.5 2.5 2.4 2.3 2.3 Cash as Percent of Market Cap 20.3% 23.1% 23.6% 21.2% 19.9% Enterprise Value Growth (YoY) 6.2% -2.3% -4.3% -8.2% 1.4%

Systems Management 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 4.5x 5.0x 4.3x 4.1x 4.3x EV/EBITDA 17.5x 19.4x 18.2x 17.4x 18.3x EV/Earnings 30.9x 37.3x 39.3x 37.4x 39.9x Gross Profit Margin 85.6% 85.4% 84.9% 84.9% 84.8% EBITDA Margin 26.0% 25.4% 25.4% 25.4% 26.3% Net Income Margin 15.9% 15.2% 13.7% 13.7% 13.9% TTM Revenue Growth (YoY) 13.3% 15.8% 16.2% 16.3% 14.7% TTM EBITDA Growth (YoY) 10.9% 13.5% 4.2% 0.9% 2.8% TTM Earnings Growth (YoY) 6.2% 8.4% -12.8% -12.8% -7.2% Current Ratio 1.3 1.2 1.5 1.5 1.5 Cash as Percent of Market Cap 8.8% 9.3% 10.0% 10.5% 10.7% Enterprise Value Growth (YoY) 6.5% 12.3% 19.5% 4.4% 9.7%

Vertical - Finance 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 4.2x 4.1x 4.1x 4.4x 4.3x EV/EBITDA 13.2x 13.4x 13.7x 16.3x 15.5x EV/Earnings 26.1x 24.2x 25.4x 27.2x 26.6x Gross Profit Margin 43.5% 44.0% 44.2% 44.2% 44.5% EBITDA Margin 26.0% 28.8% 29.8% 29.8% 30.3% Net Income Margin 13.3% 13.6% 14.3% 14.3% 13.7% TTM Revenue Growth (YoY) 4.8% 5.4% 6.2% 6.2% 6.5% TTM EBITDA Growth (YoY) 3.7% 7.6% 11.9% 7.7% 4.6% TTM Earnings Growth (YoY) 13.6% 27.2% 11.0% 11.0% 4.0% Current Ratio 1.4 1.4 1.4 1.4 1.4 Cash as Percent of Market Cap 5.1% 7.0% 6.6% 3.6% 4.8% Enterprise Value Growth (YoY) 21.2% 14.8% 10.1% 19.4% 30.9%

Vertical - Other 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.2x 3.4x 3.6x 4.0x 4.6x EV/EBITDA 23.4x 22.4x 23.9x 26.4x 30.2x EV/Earnings 58.1x 57.9x 60.9x 67.4x 81.0x Gross Profit Margin 46.6% 46.9% 47.3% 47.3% 47.5% EBITDA Margin 13.5% 13.2% 11.9% 11.9% 12.9% Net Income Margin 6.1% 6.5% 5.0% 5.1% 4.9% TTM Revenue Growth (YoY) 21.2% 16.6% 16.3% 16.3% 13.3% TTM EBITDA Growth (YoY) 14.1% 5.7% -3.8% 17.5% 19.5% TTM Earnings Growth (YoY) 12.1% 7.8% 10.7% 20.8% 19.3% Current Ratio 1.7 1.6 1.5 1.5 1.7 Cash as Percent of Market Cap 5.4% 10.2% 8.8% 6.0% 5.9% Enterprise Value Growth (YoY) 9.2% 14.7% 9.0% 16.6% 35.9%

SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2U 6.8x - - - 9.3x ------32.6% 32.6% 31.2% -32.9% -32.3% -24.4% -24.4% -21.9% Alarm.com - - - - 3.8x - - - - 29.5x - - 28.5% 28.5% 26.9% 19.3% 17.1% 14.6% 14.6% 12.9% Amber Road 7.0x 10.7x 9.8x 9.9x 2.9x - - - - - 24.4% 30.2% 23.4% 23.4% 16.3% -50.3% -40.9% -35.2% -35.2% -10.8% Apigee Corporation - - - - 5.7x - - - - - 56.3% 22.1% - - - -55.7% -106.7% -98.1% -83.7% -76.9% AppFolio - 12.7x 7.0x 5.4x 8.4x ------79.6% 79.6% - -28.6% -28.6% -14.1% -14.1% -14.9% Athenahealth 9.9x - - - 6.0x 106.6x - - - 76.8x 40.1% 36.0% 26.5% 26.5% 25.9% 9.2% 9.1% 8.2% 8.2% 7.8% Bazaarvoice 3.1x - - - 2.1x - - - - - 14.5% 14.7% 16.9% 20.0% 13.7% -17.7% -17.4% -15.1% -12.1% -11.3% Benefitfocus 10.0x 41.7x 37.5x 35.0x 6.9x - - - - - 29.0% 31.1% 31.2% 31.2% 33.9% -26.0% -30.8% -37.6% -37.6% -34.7% Box - 3.3x 2.8x 2.4x 10.0x ------83.4% 74.3% 62.0% -99.2% -99.2% -71.0% -64.9% -61.9% Callidus Software 4.6x 6.9x 6.7x 4.6x 5.0x - - - - - 19.6% 23.6% 21.6% 21.6% 23.4% -1.7% -0.2% -1.9% -1.9% -2.5% Castlight Health 103.3x - - - 11.0x ------251.5% 251.5% 173.5% -382.4% -295.7% -186.0% -186.0% -150.6% ChannelAdvisors 11.4x 6.1x 6.0x 8.6x 2.5x - - - - - 28.5% 28.9% 24.8% 24.8% 21.7% -24.4% -30.4% -33.2% -33.2% -31.1% Constant Contact 2.2x 4.1x 3.0x 2.7x 2.2x 21.0x 36.8x 27.0x 23.9x 18.6x 13.7% 14.4% 16.2% 16.2% 15.9% 10.3% 11.0% 11.2% 11.2% 11.8% Cornerstone OnDemand 12.3x 2.2x 1.3x 1.4x 6.0x - - - - - 55.7% 48.8% 42.4% 42.4% 36.7% -15.7% -16.6% -16.1% -16.1% -16.9% Covisint 2.3x 8.2x 9.9x 10.7x 0.5x - - - - - 7.1% 0.4% -9.1% -9.1% -8.9% -34.6% -43.2% -37.6% -37.6% -30.4% Cvent 11.2x 16.3x 14.5x 12.4x 6.3x 355.5x 351.5x 401.5x 344.0x 432.9x 31.9% 29.6% 28.0% 28.0% 28.6% 3.1% 4.6% 3.6% 3.6% 1.5% DealerTrack 5.0x 0.3x 0.1x 0.1x 2.9x 55.1x 3.4x 1.2x 0.9x 24.2x 30.8% 46.9% 77.4% 77.4% 78.5% 9.1% 9.5% 12.4% 12.4% 12.1% Demandware 17.4x 7.5x 5.7x 5.8x 12.0x - - - - - 41.4% 48.2% 50.6% 50.6% 50.2% -12.0% -11.2% -13.2% -13.2% -11.5% Ebix 3.3x 11.5x 10.9x 13.8x 5.5x 9.0x 30.0x 29.6x 37.3x 15.3x -2.2% -3.5% 4.7% 4.7% 11.4% 36.6% 38.5% 36.9% 36.9% 36.2% Ellie Mae 5.9x 13.0x 10.8x 11.1x 9.5x 36.3x 77.7x 55.5x 57.0x 45.7x 16.1% 10.6% 25.7% 25.7% 41.4% 16.3% 16.7% 19.5% 19.5% 20.9% FireEye 44.0x 2.3x 1.3x 1.4x 14.0x - - - - - 111.5% 132.9% 163.5% 163.5% 130.3% -100.5% -103.6% -89.3% -89.3% -83.8% Fleetmatics 6.1x 3.4x 3.8x 4.6x 6.3x 25.2x 15.5x 15.1x 18.2x 24.3x 38.3% 35.7% 30.6% 30.6% 28.5% 24.0% 21.9% 25.1% 25.1% 25.9% Halogen Software 2.7x 93.8x 81.3x 76.9x 2.3x - - - - - 22.4% 21.3% 18.1% 18.1% 18.2% -8.9% -11.7% -18.0% -18.0% -16.0% HealthStream 4.5x 6.8x 6.2x 7.0x 4.4x 26.5x 41.5x 37.8x 42.7x 25.7x 28.5% 30.9% 29.0% 29.0% 27.3% 17.0% 16.3% 16.4% 16.4% 17.3% HortonWorks - 3.3x 2.8x 2.7x 13.9x ------71.8% 71.8% 96.6% -219.0% -201.5% -365.1% -365.1% -311.3% HubSpot - 6.3x 5.1x 5.9x 11.4x ------49.3% 49.3% 52.7% -40.3% -35.6% -40.4% -40.4% -37.5% inContact 3.8x - - 5.5x 3.2x - - - - - 16.4% 19.9% 32.1% 32.1% 37.4% -2.1% -3.2% -4.1% -4.1% -4.9% IntraLinks Holdings 2.4x - - 4.5x 2.3x 50.7x - - 95.5x 50.7x 8.1% 8.7% 9.1% 9.1% 10.1% 4.7% 3.6% 4.7% 4.7% 4.6% J2 Global 4.3x 0.8x 0.9x 0.8x 5.4x 10.2x 2.0x 2.1x 1.9x 13.1x 35.9% 21.0% 15.0% 15.0% 15.7% 42.2% 41.5% 41.6% 41.6% 40.9% Jive Software 3.2x 3.1x 2.7x 3.4x 1.7x - - - - - 25.2% 23.4% 22.6% 22.6% 20.8% -38.9% -35.3% -22.2% -22.2% -17.2% Liquid Holdings Group - 504.5x 455.6x 505.4x ------14.1% -10.9% 1.3% 1.3% 1.3% - - - - - LivePerson 3.1x 2.4x 1.9x 1.6x 2.3x 88.7x 55.9x 38.6x 31.4x 46.6x 12.3% 13.8% 18.1% 18.1% 21.2% 3.5% 4.3% 5.0% 5.0% 5.0% Marin Software 3.1x - - - 1.7x - - - - - 30.2% 30.5% 28.5% 28.5% 24.1% -33.2% -30.5% -27.0% -27.0% -26.3% Marketo 11.7x 3.7x 4.1x 4.4x 6.8x - - - - - 64.5% 63.7% 56.3% 56.3% 50.9% -39.1% -34.4% -31.0% -31.0% -31.9% Medical Transcript - 20.8x 11.9x 12.2x 1.1x - 334.7x - - - - - 74.8% 74.8% 102.3% 8.6% 6.2% -9.6% -9.6% -11.8% Medidata Solutions 10.4x 3.1x 3.1x 3.6x 8.5x 122.0x 38.0x 28.8x 32.8x 75.2x 25.5% 24.2% 21.0% 21.0% 20.9% 8.5% 8.2% 10.8% 10.8% 11.3% MINDBODY - - 0.6x 0.5x 9.0x - - - - - 52.2% 52.2% 43.8% 43.8% - -26.3% -26.3% -30.4% -30.4% -30.4%

SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 Netsuite 15.9x 4.5x 4.4x 4.2x 12.1x - - - - - 34.6% 33.4% 34.2% 34.2% 34.2% -8.8% -8.1% -9.2% -9.2% -8.3% New Relic - - - - 12.0x - - - - - 113.0% - 82.2% 82.2% 74.7% -58.6% -50.2% -40.8% -40.8% -40.7% OPOWER - 54.7x 48.6x 61.3x 3.4x - - - - - 64.2% 54.4% 44.8% 44.8% 35.7% -16.2% -26.7% -29.7% -29.7% -30.4% Paycom Software - - - 9.4x 12.1x - - - 64.6x 68.7x - - 40.3% 40.3% 44.6% 10.6% 11.8% 14.6% 14.6% 17.6% Paylocity Holding 12.1x 8.3x 6.1x 5.2x 11.1x 652.3x - - - - - 40.6% 41.2% 41.2% 40.9% 1.9% -1.9% -7.3% -7.3% -6.7% Q2 Holdings 10.6x 12.1x 10.4x 15.6x 9.2x ------39.1% 39.1% 42.0% -26.0% -24.8% -18.9% -18.9% -16.2% Qualys 6.7x 8.0x 8.0x 9.2x 9.4x 60.3x 67.4x 50.3x 58.4x 49.3x 19.3% 20.4% 23.7% 23.7% 24.0% 11.1% 11.8% 15.8% 15.8% 19.0% Rally Software Development ------RealPage 3.6x 1.7x 1.8x 2.6x 3.7x 25.9x 15.3x 24.4x 35.7x 62.3x 15.4% 10.4% 7.3% 7.3% 6.7% 13.9% 10.8% 7.2% 7.2% 5.9% RingCentral 6.4x - - - 4.5x - - - - - 38.3% 38.5% 37.0% 37.0% 36.8% -18.4% -20.5% -15.8% -15.8% -13.1% Salesforce.com 8.5x 0.3x 0.2x 0.3x 8.6x - 473.8x 14.3x 9.8x 201.0x 35.7% 37.3% 34.9% 32.0% 28.4% -0.7% 0.1% 1.7% 3.1% 4.3% SciQuest 7.4x 8.5x 7.8x 7.1x 3.0x 442.7x 290.4x 155.2x 140.6x 64.6x 30.6% 25.8% 13.0% 13.0% 7.9% 1.7% 2.9% 5.1% 5.1% 4.6% Service-now.com 18.0x 63.4x 52.7x 56.6x 15.1x - - - - - 69.3% 65.5% 60.7% 60.7% 58.1% -13.1% -15.5% -16.1% -16.1% -16.1% Shopify - 8.8x 3.2x 2.8x 18.6x - - - - - 111.9% 111.9% 109.0% 109.0% - -5.6% -5.6% -16.8% -16.8% -11.9% SPS Commerce 8.0x 63.3x 65.1x 72.5x 7.2x 84.7x 650.4x 629.3x 700.5x 70.3x 29.9% 24.8% 22.6% 22.6% 24.1% 9.5% 9.7% 10.3% 10.3% 10.2% Tableau Software 18.4x - - - 15.5x 316.7x - - - 711.2x 86.6% 87.8% 77.5% 77.5% 75.4% 5.8% 5.0% 4.8% 4.8% 2.2% Tangoe 3.6x 3.8x 3.6x 3.7x 2.2x 44.1x 52.0x 46.2x 48.2x 28.5x 17.7% 14.4% 12.5% 12.5% 10.9% 8.1% 7.2% 7.7% 7.7% 7.7% Textura 12.0x 61.1x 59.3x 79.7x 9.5x ------54.5% 54.5% 48.6% -76.5% -23.0% -27.0% -27.0% -18.8% The Ultimate Software Group 8.7x 1.2x 1.0x 0.9x 8.8x 58.9x 8.2x 6.8x 6.4x 65.7x 23.2% 23.7% 23.3% 23.3% 22.2% 14.8% 14.5% 14.4% 14.4% 13.4% TrueCar - 2.5x 3.1x 2.8x 4.8x ------54.3% 54.3% 44.8% -10.9% -16.1% -19.3% -19.3% -19.1% Upland Software - 64.5x 61.5x 63.2x 2.1x - - - - 118.8x - - 56.8% 56.8% 38.1% -17.5% -15.7% -13.1% -13.1% 1.8% Veeva Systems 12.9x 3.5x 4.0x 4.5x 9.4x 66.1x 17.1x 18.2x 19.1x 38.8x 58.3% 54.9% 54.4% 49.0% 43.7% 19.5% 20.4% 21.8% 23.3% 24.2% Workday 30.0x - - 0.3x 17.1x - - - - - 74.1% 74.4% 72.2% 68.0% 63.7% -24.6% -25.2% -22.7% -19.9% -17.3% Workiva - 24.2x 24.8x 29.2x 4.1x ------32.3% 32.3% 28.6% -26.2% -23.9% -30.8% -30.8% -30.9% Xactly - 275.8x 307.7x 235.9x 5.2x - - - - - 30.0% 30.0% 30.0% 29.4% - -17.9% -17.9% -17.9% -20.9% -19.7% Yodlee - - - 6.0x 4.0x ------27.0% 27.0% 26.2% 6.2% 7.0% -1.9% -1.9% -3.7% Zendesk - - - - 11.8x ------76.3% 76.3% 73.3% -27.3% -38.8% -46.9% -46.9% -46.5% Zix 4.6x - - 9.4x 4.7x 18.7x - - 56.6x 27.6x 8.3% 6.5% 4.6% 4.6% 5.6% 24.5% 23.5% 16.6% 16.6% 16.9%

CRM & Marketing 2Q14 3Q14 4Q14 1Q15 2Q15 Other SaaS 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.1x 5.0x 4.7x 6.6x 6.3x EV/Revenue 5.5x 4.5x 3.9x 4.6x 9.4x EV/EBITDA 88.7x 112.7x 117.2x 122.7x 123.8x EV/EBITDA 47.4x 41.5x 32.0x 38.9x 50.0x EV/Earnings 73.4x 398.0x 283.9x 294.2x 44.3x EV/Earnings 194.1x 208.6x 46.4x 42.3x 39.1x Gross Profit Margin 68.5% 67.1% 68.0% 68.0% 68.3% Gross Profit Margin 71.9% 72.5% 65.1% 65.1% 66.5% EBITDA Margin -17.7% -17.4% -15.1% -12.1% -11.3% EBITDA Margin -13.1% -15.7% -16.1% -16.1% -13.1% Net Income Margin -33.0% -33.0% -29.5% -26.5% -18.0% Net Income Margin -21.7% -24.5% -23.4% -23.4% -19.4% TTM Revenue Growth (YoY) 30.2% 29.6% 28.5% 28.5% 28.4% TTM Revenue Growth (YoY) 35.9% 26.2% 37.0% 37.0% 36.8% TTM EBITDA Growth (YoY) -18.4% 0.4% 9.4% 22.3% 1.5% TTM EBITDA Growth (YoY) -9.1% -46.4% -66.3% -42.2% -34.4% TTM Earnings Growth (YoY) -25.5% 16.5% 98.4% 98.4% 95.2% TTM Earnings Growth (YoY) -6.2% -12.6% -17.0% -17.0% -3.2% Current Ratio 2.3 2.1 1.8 1.9 2.1 Current Ratio 2.5 2.2 3.0 3.0 2.2 Cash as Percent of Market Cap 13.6% 10.9% 11.9% 14.3% 15.6% Cash as Percent of Market Cap 12.6% 11.9% 12.2% 11.6% 12.2% Enterprise Value Growth (YoY) 9.7% 0.0% 5.4% -12.7% 12.0% Enterprise Value Growth (YoY) 25.6% 3.8% -3.4% -18.8% 28.7%

ERP & Supply Chain 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 7.7x 6.1x 5.5x 5.7x 6.3x EV/EBITDA 84.7x 67.4x 57.2x 56.5x 64.6x EV/Earnings 376.5x 257.2x 159.3x 167.8x 189.4x Gross Profit Margin 67.7% 68.0% 68.2% 68.2% 68.2% EBITDA Margin -8.8% -8.1% -9.2% -9.2% -8.3% Net Income Margin -17.9% -17.3% -18.0% -18.0% -16.8% TTM Revenue Growth (YoY) 34.6% 30.2% 27.0% 27.0% 26.3% TTM EBITDA Growth (YoY) -4.6% -4.9% -38.9% 22.9% 34.4% TTM Earnings Growth (YoY) 164.5% 76.2% 73.7% 73.7% 76.2% Current Ratio 2.3 2.1 2.1 2.1 2.7 Cash as Percent of Market Cap 12.6% 13.2% 13.2% 12.3% 12.0% Enterprise Value Growth (YoY) 18.2% -14.0% -5.7% -7.5% 16.7%

Vertically Focused 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 9.9x 6.9x 5.8x 6.4x 8.4x EV/EBITDA 55.1x 39.1x 42.7x 45.0x 42.2x EV/Earnings 75.3x 133.5x 71.6x 76.4x 68.5x Gross Profit Margin 60.7% 59.5% 59.8% 59.8% 60.4% EBITDA Margin 8.6% 8.2% 7.2% 7.2% 5.9% Net Income Margin -1.1% -1.7% -2.5% -2.5% -3.0% TTM Revenue Growth (YoY) 28.1% 30.1% 39.1% 39.1% 38.5% TTM EBITDA Growth (YoY) -23.5% -16.2% 4.3% 5.7% 9.9% TTM Earnings Growth (YoY) -20.6% -23.0% 11.3% 11.3% 73.0% Current Ratio 2.2 2.3 2.9 2.9 1.7 Cash as Percent of Market Cap 10.0% 9.9% 10.3% 9.4% 5.5% Enterprise Value Growth (YoY) 21.7% 19.9% -6.6% 2.5% 29.7%

Human Capital Management 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 9.4x 7.2x 6.6x 6.7x 6.5x EV/EBITDA 58.9x 52.8x 37.5x 55.9x 65.7x EV/Earnings 105.5x 119.4x 88.7x 91.2x 111.1x Gross Profit Margin 59.5% 60.1% 59.7% 59.7% 59.8% EBITDA Margin -5.3% -6.8% -11.7% -11.7% -11.3% Net Income Margin -15.8% -12.2% -18.9% -18.9% -18.7% TTM Revenue Growth (YoY) 28.8% 30.9% 30.6% 30.3% 33.9% TTM EBITDA Growth (YoY) -10.8% -21.7% -29.6% -32.0% -47.3% TTM Earnings Growth (YoY) 28.5% 23.3% 75.2% 75.2% 41.6% Current Ratio 1.6 1.4 1.3 1.3 1.4 Cash as Percent of Market Cap 8.5% 7.4% 8.4% 11.8% 8.8% Enterprise Value Growth (YoY) 16.1% -16.1% -18.8% -10.0% 34.1%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 1-800-FLOWERS.COM 0.5x 0.5x 0.3x 0.5x 0.7x 9.5x 8.0x 3.4x 6.1x 7.8x 1.2% 2.8% 36.3% 45.6% 45.6% 5.2% 5.9% 10.1% 8.8% 8.8% 58.com 20.6x 15.7x 15.1x 11.5x 27.5x 133.0x 108.3x 326.1x 247.8x - 86.4% 86.7% 81.8% 81.8% 78.4% 15.5% 14.5% 4.6% 4.6% -15.5% 8x8 6.2x 4.3x 3.4x 3.3x 3.7x 94.1x 93.8x 57.9x 55.7x 68.8x 23.9% 27.3% 28.2% 28.2% 26.3% 6.6% 4.6% 5.9% 5.9% 5.3% Akamai Technologies 6.0x 5.4x 5.4x 5.5x 6.5x 16.9x 15.3x 15.5x 15.7x 19.2x 16.9% 19.9% 24.5% 24.5% 22.5% 35.5% 35.1% 34.8% 34.8% 34.0% Alibaba - - 19.5x 22.4x 16.9x - - 46.4x 53.5x 46.5x 52.1% - 44.1% 44.1% 45.1% 53.0% 51.6% 41.9% 41.9% 36.3% Amazon.com 1.9x 1.7x 1.7x 1.6x 2.2x 40.1x 35.5x 35.2x 33.3x 41.5x 22.1% 22.3% 19.5% 19.5% 17.7% 4.9% 4.9% 4.9% 4.9% 5.3% Angie's List 2.6x 2.2x 1.3x 1.2x 1.1x - - - - 84.5x 50.5% 43.2% 28.2% 28.2% 22.5% -7.3% -8.7% -1.4% -1.4% 1.3% Baidu.com 9.5x 8.4x 9.1x 9.7x 8.0x 23.4x 22.0x 26.7x 28.4x 24.7x 47.7% 52.8% 53.6% 53.6% 47.4% 40.5% 38.4% 34.2% 34.2% 32.3% Bankrate 3.8x 3.6x 3.1x 2.4x 2.5x 17.2x 16.3x 16.5x 12.9x 14.0x 10.0% 20.3% 19.3% 19.3% 13.5% 22.3% 22.0% 18.7% 18.7% 18.2% Baozun - - - - 1.9x - - - - - 59.4% 59.4% 4.1% 4.1% - -2.2% -2.2% -2.8% -2.8% -2.2% Bitauto Holdings 5.8x 5.1x 7.5x 7.5x 6.4x 28.0x 21.7x 31.0x 31.1x 34.1x 38.9% 43.7% 70.8% 70.8% 80.7% 20.9% 23.5% 24.1% 24.1% 18.7% BlueNile 0.7x 0.7x 0.6x 0.8x 0.6x 20.5x 19.0x 17.4x 23.6x 17.9x 10.3% 5.0% 5.0% 5.2% 4.3% 3.6% 3.6% 3.6% 3.3% 3.4% Brightcove 2.4x 2.2x 1.4x 1.5x 1.6x - - - - - 25.4% 22.8% 13.8% 13.8% 9.0% -0.9% -1.0% -3.1% -3.1% -2.4% BroadSoft 3.8x 3.3x 2.8x 3.3x 4.1x - 634.3x 32.4x 38.2x 32.5x 10.0% 12.8% 21.5% 21.5% 25.1% -1.8% 0.5% 8.7% 8.7% 12.7% Carbonite 1.9x 1.8x 1.8x 1.9x 1.9x 24.1x 25.3x 48.1x 51.8x - 24.2% 20.8% 14.4% 14.4% 13.1% 7.8% 7.2% 3.7% 3.7% -0.2% Care.com 6.9x 2.6x 1.5x 1.3x 1.1x ------41.1% 43.2% 42.9% 42.9% -29.3% -30.5% -27.0% -23.1% -23.1% ChangYou.com 2.0x 1.7x 1.5x 1.6x 2.0x 6.6x 10.4x 15.3x 16.3x 9.7x 11.6% 5.3% 2.4% 2.4% 5.7% 29.8% 16.5% 10.0% 10.0% 20.9% Chegg 3.0x 1.8x 2.4x 1.9x 1.9x 41.4x 44.1x 30.5x 24.4x 34.9x 19.1% 16.8% 19.3% 19.3% 17.2% 7.2% 4.0% 7.8% 7.8% 5.4% Cimpress 1.5x 1.2x 1.2x 1.9x 2.0x 13.9x 9.1x 8.5x 12.8x 13.5x 6.5% 8.8% 15.2% 15.2% 19.8% 10.9% 13.0% 14.6% 14.6% 14.9% Coupons.com 9.6x 7.7x 4.4x 4.6x 3.8x ------32.1% 32.1% 23.5% -5.1% -6.8% -8.3% -8.3% -6.0% Criteo SA 3.0x 2.1x 1.7x 2.2x 2.7x 48.0x 27.9x 20.8x 26.3x 32.2x 61.7% 60.8% 67.8% 67.8% 70.3% 6.2% 7.5% 8.2% 8.2% 8.5% Ctrip 6.8x 6.7x 7.0x 6.2x 7.9x 45.0x 54.2x 1806.1x 1611.4x - 31.7% 34.3% 36.4% 36.4% 39.1% 15.0% 12.3% 0.4% 0.4% -2.6% DangDang 0.9x 0.6x 0.7x 0.5x 0.4x - 112.6x 46.2x 34.9x 95.6x 23.6% 25.6% 25.8% 25.8% 25.4% -0.8% 0.6% 1.4% 1.4% 0.4% DemandMedia 2.7x 0.9x 0.7x 0.4x 0.4x 12.7x 10.6x 8.8x 5.3x 15.7x -61.0% 21.6% -17.7% -17.7% 4.4% 21.0% 8.6% 8.3% 8.3% 2.7% eBay 4.0x 3.6x 3.5x 3.6x 3.9x 13.5x 12.4x 12.6x 12.9x 13.7x 13.9% 13.5% 11.6% 11.6% 9.2% 29.6% 29.2% 28.1% 28.1% 28.2% eHealth 4.6x 3.2x 2.2x 2.0x 1.0x 198.0x 69.8x 517.3x 478.4x 27.0x 15.7% 14.4% 0.3% 0.3% 1.7% 2.3% 4.6% 0.4% 0.4% 3.6% Envivio 0.9x 0.5x 0.3x 0.0x 0.3x - - - - - 33.2% 29.9% 7.5% -3.8% -3.4% -19.8% -23.4% -28.8% -24.5% -15.5% Everyday Health 2.9x 3.9x 2.7x 2.1x 2.6x 34.5x 43.5x 24.0x 19.0x 29.5x 17.1% - 18.3% 18.3% 15.4% 8.5% 8.9% 11.1% 11.1% 8.7% Expedia 2.1x 1.8x 1.8x 1.8x 2.3x 15.6x 12.9x 13.7x 14.1x 18.6x 17.3% 19.5% 20.8% 20.8% 19.7% 13.2% 13.8% 13.1% 13.1% 12.4% Facebook 16.8x 14.5x 14.5x 15.8x 16.0x 32.1x 26.7x 29.0x 31.7x 34.5x 62.4% 63.7% 58.4% 58.4% 51.5% 52.3% 54.4% 49.9% 49.9% 46.6% GeekNet 0.3x 0.3x 0.3x 0.2x 0.1x 63.0x - - - - 16.9% 14.1% 1.8% 1.8% -3.0% 0.4% -1.2% -4.8% -4.8% -6.0% Giant Interactive 60.6x 25.7x 11.9x 8.8x 12.1x - - - - 33.4x - - 708.3% 708.3% 328.6% - - -7.5% -7.5% 36.2% GoDaddy - - - - 2.0x - - - - 29.0x - - 22.7% 22.7% 21.5% 0.8% 1.0% 6.2% 6.2% 6.9% Google 5.7x 4.9x 5.2x 4.8x 4.6x 16.6x 16.5x 16.1x 14.7x 14.3x 10.5% 21.1% 18.9% 18.9% 17.0% 34.3% 29.8% 32.5% 32.5% 32.3% Groupon 1.6x 1.2x 1.1x 1.3x 1.1x 35.8x 32.8x 38.3x 45.5x 33.7x 13.6% 17.6% 24.0% 24.0% 19.0% 4.5% 3.5% 2.8% 2.8% 3.2% GrubHub - 12.4x 10.6x 10.3x 10.9x - 56.9x 40.7x 39.5x 39.6x - - 85.1% 85.1% 66.8% 23.4% 21.8% 26.2% 26.2% 27.4% Harmonic 1.2x 1.2x 1.0x 1.2x 1.2x 20.9x 23.1x 24.2x 27.2x 26.4x 0.8% -3.0% -6.1% -6.1% -8.3% 5.6% 5.2% 4.3% 4.3% 4.7%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 HomeAway 8.5x 6.5x 5.9x 5.5x 5.2x 52.6x 39.6x 40.4x 37.5x 37.7x 26.0% 28.8% 28.9% 28.9% 23.5% 16.1% 16.3% 14.6% 14.6% 13.7% Interactive Intelligence 4.4x 3.1x 2.4x 2.6x 2.6x 74.4x 112.0x - - 1017.8x 25.8% 17.4% 7.2% 7.2% 8.3% 5.9% 2.8% -0.2% -0.2% 0.3% InterActiveCorp 1.8x 1.8x 1.8x 1.7x 2.0x 10.0x 10.2x 11.3x 11.0x 14.0x 4.1% -1.4% 2.9% 2.9% 4.0% 17.5% 17.3% 15.6% 15.6% 14.1% LendingClub ------168.6% 150.5% 115.4% 115.4% 110.5% - - - - - LifeLock 3.7x 2.4x 2.3x 2.8x 2.3x 51.6x 36.5x 29.4x 35.5x 35.5x 31.3% 30.6% 28.8% 28.8% 27.3% 7.1% 6.6% 7.8% 7.8% 6.4% Limelight Networks 0.6x 0.6x 0.8x 1.0x 1.9x ------7.1% -7.0% -6.4% -6.4% -3.2% -7.0% -5.6% -3.5% -3.5% -3.9% LinkedIn 12.1x 9.5x 10.5x 11.2x 10.4x 122.3x 89.7x 99.9x 107.0x 103.1x 51.3% 48.5% 45.2% 45.2% 42.1% 9.9% 10.6% 10.5% 10.5% 10.1% Liquidity Services 1.2x 0.8x 0.8x 0.6x 0.4x 8.2x 6.1x 7.7x 6.0x 5.2x 1.5% 1.5% -1.3% -1.3% -6.0% 15.0% 13.1% 9.7% 9.7% 8.6% Mail.ru Group 9.3x 7.0x 10.1x 7.7x 9.1x 21.0x 15.5x 20.8x 15.8x 18.7x 26.8% 24.5% 19.5% 19.5% 19.5% 44.4% 45.5% 48.6% 48.6% 48.6% MakeMyTrip 4.0x 3.6x 3.8x 3.7x 2.4x - - - - - 11.6% 12.9% 16.9% 16.9% 17.3% -5.1% -3.5% -2.8% -2.8% -3.4% Marchex 2.6x 2.3x 1.7x 0.5x 0.7x 55.6x 41.7x 36.0x 10.0x 10.3x 27.5% 30.3% 19.7% 19.7% 3.8% 4.6% 5.4% 4.8% 4.8% 6.7% MaxPoint Interactive - - - - 1.8x ------61.1% 61.1% 70.2% -1.4% -4.8% -8.5% -8.5% -9.7% Mecox Lane 1.0x 0.5x 0.9x 0.7x 0.6x 2.0x - 5.4x 4.4x 4.3x -76.4% -36.6% 16.4% 16.4% 61.3% 52.6% -7.0% 17.1% 17.1% 13.2% Mercadolibre 8.3x 7.2x 8.3x 10.1x 10.6x 23.5x 20.1x 24.9x 30.0x 31.7x 23.6% 21.4% 17.8% 17.8% 21.4% 35.4% 35.9% 33.6% 33.6% 33.3% Mitel Networks 2.0x 1.7x 1.1x 1.1x 1.1x 16.9x 14.6x 8.1x 8.0x 8.6x - - 106.0% 106.0% 75.1% 11.6% 11.3% 13.6% 13.6% 13.1% MOL Global - - - 8.6x 2.1x - - - 724.5x - - - 18.2% 18.2% 16.5% 24.7% 23.9% 1.2% 1.2% -13.4% Monster Worldwide 1.0x 0.9x 0.9x 0.7x 1.0x 8.2x 8.4x 9.9x 8.2x 9.9x -8.6% -6.6% -4.7% -4.7% -4.8% 12.7% 11.0% 8.9% 8.9% 9.6% NCSoft 5.1x 4.1x 2.9x 2.9x 3.7x 16.6x 13.7x 7.7x 7.9x 10.0x -5.9% -8.4% 10.8% 10.8% 13.2% 30.5% 30.1% 37.3% 37.3% 36.9% Netease 4.0x 4.0x 4.3x 5.1x 7.0x 8.3x 8.4x 10.2x 12.0x 17.9x 12.2% 14.1% 27.4% 27.4% 38.2% 48.5% 47.0% 42.2% 42.2% 39.3% Netflix 4.6x 4.3x 4.8x 3.9x 6.3x 61.7x 50.6x 57.6x 46.4x 79.7x 22.8% 24.0% 25.8% 25.8% 25.7% 7.4% 8.5% 8.3% 8.3% 7.9% Orbitz 1.4x 1.3x 1.3x 1.3x 1.6x 9.4x 8.6x 8.6x 8.5x 12.8x 7.9% 7.3% 10.0% 10.0% 10.2% 14.9% 14.9% 15.0% 15.0% 12.4% Overstock.com 0.3x 0.2x 0.2x 0.3x 0.3x 9.8x 14.4x 12.6x 18.9x 17.4x 16.1% 14.2% 14.8% 14.8% 16.6% 2.6% 1.3% 1.7% 1.7% 1.5% Pandora 8.1x 6.1x 5.6x 4.0x 3.5x ------40.6% 40.6% 30.4% -1.0% -1.4% -1.7% -1.7% -3.6% Perfect World 1.3x 0.9x 1.2x 1.2x 1.0x 6.3x 4.2x 6.9x 6.9x 5.9x 24.5% 30.9% 25.9% 25.9% 25.9% 20.5% 21.0% 17.2% 17.2% 17.2% PetMed Express 1.0x 1.0x 1.0x 1.0x 1.3x 7.7x 7.8x 8.1x 7.6x 9.6x 2.4% -0.6% -3.3% -3.3% -1.7% 12.5% 12.7% 12.9% 12.9% 13.1% Polycom 1.2x 1.1x 1.1x 1.1x 1.0x 12.2x 10.5x 9.3x 9.2x 8.4x -2.0% -2.0% -1.7% -1.7% -0.8% 9.7% 10.4% 11.9% 11.9% 12.3% Priceline 8.5x 7.7x 7.1x 6.6x 7.2x 22.4x 20.1x 18.2x 17.0x 18.8x 29.1% 28.9% 24.3% 24.3% 21.1% 37.7% 38.2% 38.9% 38.9% 38.1% Qihoo 14.8x 10.8x 8.0x 6.0x 5.1x 49.9x 40.8x 32.1x 24.3x 19.6x 123.6% 121.3% 107.2% 107.2% 82.7% 29.7% 26.6% 24.8% 24.8% 25.9% QuinStreet 0.8x 0.7x 0.6x 0.6x 0.8x 11.1x 18.9x - - - -7.7% -7.4% -7.6% -7.6% -4.1% 7.3% 3.9% -0.6% -0.6% -1.4% ReachLocal 0.4x 0.2x 0.2x 0.1x 0.1x 62.8x - - - - 9.4% 5.5% -7.6% -7.6% -13.0% 0.7% -1.5% -7.0% -7.0% -8.3% Renren 2.3x 2.0x 2.4x 2.9x 8.4x ------23.2% -40.9% -43.9% -43.9% -43.5% -64.8% -81.4% -108.3% -108.3% -125.9% Rocket Fuel 5.1x 2.7x 1.0x 1.3x 0.8x - - - - - 115.9% 97.4% 69.8% 69.8% 58.5% -4.8% -5.5% -9.2% -9.2% -12.4% Rovi 5.4x 5.3x 5.3x 5.0x 4.5x 15.3x 15.0x 15.5x 14.5x 13.6x 11.8% 19.6% 0.9% 0.9% -2.4% 35.2% 35.3% 34.3% 34.3% 33.0% SeaChange International 1.7x 1.5x 1.2x 1.0x 1.2x 1142.6x - - - - -13.5% -18.6% -22.9% -21.1% -15.4% 0.1% -5.0% -10.1% -12.1% -12.1% ShoreTel 1.6x 1.1x 1.0x 1.2x 1.0x 35.8x 20.0x 15.1x 17.5x 16.4x 9.9% 8.4% 5.9% 5.9% 5.4% 4.4% 5.6% 6.7% 6.7% 6.3% Shutterfly 1.8x 1.7x 2.0x 1.8x 1.9x 18.2x 17.1x 20.5x 18.1x 20.4x 20.7% 18.4% 17.6% 17.6% 17.5% 9.8% 9.9% 9.8% 9.8% 9.2% Shutterstock 9.6x 8.1x 7.5x 7.1x 5.8x 52.4x 49.9x 52.5x 49.6x 43.6x 40.4% 40.8% 39.3% 39.3% 37.2% 18.3% 16.3% 14.2% 14.2% 13.4%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 2Q14 3Q14 4Q14 1Q15 2Q15 SINA 5.0x 3.5x 2.6x 1.7x 1.9x 58.7x 37.5x 107.0x 69.2x 299.1x 29.4% 28.7% 15.5% 15.5% 10.0% 8.5% 9.3% 2.5% 2.5% 0.6% Sohu.com 1.4x 1.2x 1.1x 1.0x 1.3x 10.7x 18.8x 31.9x 29.5x 17.9x 27.0% 23.4% 19.5% 19.5% 20.9% 13.4% 6.3% 3.3% 3.3% 7.5% Sonus Networks 2.3x 2.3x 2.7x 2.8x 1.1x 145.4x 295.8x 245.0x - - 9.8% 7.2% 7.1% -3.0% -3.0% 1.6% 0.8% 1.1% -4.6% -4.6% Stamps.com 3.7x 3.5x 3.2x 4.7x 6.8x 13.3x 12.5x 12.2x 18.1x 26.3x 8.0% 6.4% 15.2% 15.2% 22.5% 28.3% 27.7% 26.2% 26.2% 25.6% Synacor 0.3x 0.3x 0.3x 0.2x 0.3x 26.5x - - - 58.5x -10.4% -9.4% -4.7% -4.7% 0.1% 1.2% -0.9% -1.3% -1.3% 0.5% Tencent Holdings 12.4x 11.0x 11.6x 10.9x 13.9x 36.8x 31.2x 29.7x 28.1x 33.9x 36.6% 36.8% 30.6% 30.6% 27.0% 33.7% 35.4% 39.0% 39.0% 41.0% The Rubicon Project - 5.0x 2.5x 3.0x 4.3x ------49.5% 49.5% 54.5% -3.1% -8.1% -8.7% -8.7% -7.2% TheStreet.com 0.6x 0.5x 0.4x 0.4x 0.5x - - - - 670.6x 11.4% 11.7% 12.1% 12.1% 13.0% -0.5% -0.2% -1.1% -1.1% 0.1% Travelzoo 1.8x 1.4x 1.4x 0.9x 0.9x 10.7x 8.8x 12.2x 8.3x 10.1x 1.5% -2.7% -10.2% -10.2% -11.4% 16.5% 16.2% 11.2% 11.2% 9.2% Tree.Com 1.8x 1.4x 1.4x 2.4x 3.3x 26.6x 17.7x 21.0x 35.2x 38.9x 63.8% 38.3% 20.2% 20.2% 17.9% 6.7% 7.8% 6.8% 6.8% 8.6% Tremor 0.8x 0.8x 0.4x 0.3x 0.4x - - - - - 25.9% 22.1% 21.0% 21.0% 16.4% -6.5% -9.5% -10.4% -10.4% -9.7% TripAdvisor 13.5x 11.6x 11.0x 8.5x 8.6x 41.9x 37.6x 36.7x 28.3x 30.6x 23.1% 24.7% 31.9% 31.9% 33.3% 32.3% 31.0% 30.1% 30.1% 28.1% TubeMogul - - 2.5x 3.9x 3.6x ------99.7% 99.7% 75.9% -6.5% -0.8% -0.9% -0.9% -5.0% Tucows 1.0x 1.1x 1.1x 1.2x 1.4x 13.9x 13.2x 12.5x 13.2x 12.6x 14.7% 15.5% 13.6% 13.6% 14.4% 7.2% 8.0% 9.0% 9.0% 11.0% Twitter 32.0x 21.4x 18.1x 16.4x 14.1x - - - - - 112.5% 117.3% 111.0% 111.0% 98.3% -78.8% -74.6% -24.7% -24.7% -21.1% VeriSign 7.0x 6.3x 6.7x 6.9x 7.3x 11.5x 10.3x 10.7x 11.1x 11.8x 8.1% 6.3% 4.7% 4.7% 4.3% 61.0% 61.5% 62.2% 62.2% 62.0% WebMD Health 2.4x 3.2x 2.9x 2.7x 3.2x 15.0x 17.6x 14.6x 14.1x 15.8x 12.8% 12.9% 12.6% 12.6% 10.0% 16.2% 18.0% 19.5% 19.5% 20.4% Wix.com 8.0x 5.3x 3.9x 4.7x 5.3x - - - - - 88.5% 85.3% 76.3% 76.3% 67.9% -37.2% -40.0% -37.4% -37.4% -35.0% Wowo Limited - - - - 15.2x ------17.0% -17.0% -2.0% -95.4% -130.8% -139.0% -139.0% -121.9% XO Group 1.4x 1.6x 1.7x 2.1x 2.5x 11.7x 15.5x 14.2x 17.8x 19.0x 4.9% 4.7% 7.4% 7.4% 5.8% 11.7% 10.6% 11.7% 11.7% 12.9% Xoom 3.8x 4.6x 4.2x 2.6x 3.2x 42.7x 69.6x 66.9x 42.4x 60.3x 53.1% 40.4% 30.2% 30.2% 25.2% 8.9% 6.5% 6.2% 6.2% 5.3% Xunlei - 3.8x 2.6x 0.8x 1.2x - 19.3x 14.8x 4.6x 8.0x - - 2.8% 2.8% 6.7% 28.0% 19.8% 17.7% 17.7% 15.4% Yahoo! 7.4x 7.2x 7.7x 8.2x 7.6x 39.0x 43.1x 51.9x 55.4x 59.9x -4.7% -4.2% -1.3% -1.3% 0.8% 19.0% 16.7% 14.8% 14.8% 12.7% Yandex 8.0x 7.2x 11.5x 10.0x 6.5x 20.6x 19.0x 30.6x 26.6x 17.9x 37.2% 36.2% 28.5% 28.5% 23.2% 39.0% 37.8% 37.5% 37.5% 36.4% Yelp 20.3x 14.3x 13.3x 10.2x 7.5x 3906.2x 654.7x 203.5x 156.0x 110.6x 68.4% 66.2% 62.0% 62.0% 59.4% 0.5% 2.2% 6.5% 6.5% 6.8% Youku 8.1x 6.3x 5.0x 3.2x 4.4x 50.5x 41.9x 41.2x 26.6x 48.9x 63.0% 46.7% 37.6% 37.6% 37.9% 16.0% 15.1% 12.2% 12.2% 9.1% YuMe 1.2x 0.9x 0.7x 0.6x 0.6x 71.2x 114.1x - - - 31.2% 26.8% 17.6% 17.6% 11.6% 1.6% 0.8% -2.6% -2.6% -2.7% YY 11.9x 7.8x 6.9x 6.4x 4.9x 38.7x 24.4x 21.7x 20.3x 16.9x 117.8% 113.7% 101.7% 101.7% 91.4% 30.8% 31.9% 31.5% 31.5% 29.0% Zillow 14.8x 15.3x 15.5x 12.3x 13.1x - - - - - 69.1% 68.6% 65.0% 65.0% 72.1% -2.9% -1.9% -0.8% -0.8% -1.3% Zynga 3.5x 3.3x 2.8x 2.1x 2.4x 1047.6x - - - - -36.5% -37.6% -20.9% -20.9% -9.3% 0.3% -6.3% -15.2% -15.2% -11.8%

Ad Tech 2Q14 3Q14 4Q14 1Q15 2Q15 Infrastructure 2Q14 3Q14 4Q14 1Q15 2Q15 Travel 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 2.7x 2.0x 2.2x 2.5x 2.3x EV/Revenue 2.0x 1.5x 1.2x 1.3x 1.5x EV/Revenue 5.4x 5.4x 4.6x 4.2x 3.8x EV/EBITDA 37.0x 27.9x 26.6x 26.1x 17.9x EV/EBITDA 20.8x 17.9x 15.7x 15.8x 19.2x EV/EBITDA 21.6x 20.7x 17.1x 17.1x 18.7x EV/Earnings 28.2x 33.3x 29.7x 21.6x 21.5x EV/Earnings 32.1x 32.9x 32.2x 34.4x 39.2x EV/Earnings 51.4x 60.4x 46.9x 51.1x 51.6x Gross Profit Margin 56.1% 54.8% 54.7% 54.7% 53.2% Gross Profit Margin 61.5% 61.1% 61.5% 61.5% 61.6% Gross Profit Margin 83.2% 83.0% 82.8% 82.8% 82.2% EBITDA Margin 3.1% 3.1% 1.2% 1.2% 2.0% EBITDA Margin 5.0% 3.7% 6.0% 6.0% 5.8% EBITDA Margin 15.6% 15.6% 13.8% 13.8% 12.4% Net Income Margin -1.2% -1.8% -7.2% -7.2% -7.8% Net Income Margin -3.2% -4.7% -4.5% -7.0% -4.2% Net Income Margin 5.5% 5.1% 5.1% 5.1% 4.6% TTM Revenue Growth (YoY) 27.5% 26.8% 24.8% 24.8% 22.1% TTM Revenue Growth (YoY) 10.0% 10.6% 7.2% 5.3% 4.9% TTM Revenue Growth (YoY) 20.2% 22.1% 22.5% 22.5% 20.4% TTM EBITDA Growth (YoY) -1.6% -14.2% -59.4% -52.7% -34.0% TTM EBITDA Growth (YoY) 0.4% 2.9% 18.7% 10.6% 11.7% TTM EBITDA Growth (YoY) -0.7% 2.2% 17.5% 12.5% 8.9% TTM Earnings Growth (YoY) 10.1% 13.6% 26.3% 26.3% 19.0% TTM Earnings Growth (YoY) 61.5% 41.1% 13.8% 13.8% -4.2% TTM Earnings Growth (YoY) 33.6% 24.4% -7.0% -7.0% -27.3% Current Ratio 3.1 3.4 2.2 2.2 3.1 Current Ratio 2.4 2.4 2.3 2.3 2.5 Current Ratio 1.8 1.7 1.7 1.7 1.9 Cash as Percent of Market Cap 18.4% 20.2% 17.7% 18.7% 21.5% Cash as Percent of Market Cap 19.6% 15.8% 17.0% 15.5% 18.9% Cash as Percent of Market Cap 21.2% 18.2% 18.8% 22.1% 17.2% Enterprise Value Growth (YoY) 27.1% -13.2% -37.6% -31.1% -11.7% Enterprise Value Growth (YoY) 21.4% 4.6% -4.4% -1.7% -4.8% Enterprise Value Growth (YoY) 41.2% 35.2% 5.6% 2.4% -2.3%

Commerce 2Q14 3Q14 4Q14 1Q15 2Q15 Search 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 1.1x 1.2x 1.5x 1.6x 1.9x EV/Revenue 6.7x 6.2x 7.2x 5.5x 5.6x EV/EBITDA 19.1x 25.7x 24.4x 24.2x 26.3x EV/EBITDA 18.3x 18.3x 20.6x 15.6x 16.1x EV/Earnings 28.1x 36.7x 44.8x 33.2x 38.8x EV/Earnings 24.4x 27.4x 25.8x 20.2x 21.1x Gross Profit Margin 40.7% 40.1% 39.1% 39.1% 40.1% Gross Profit Margin 69.2% 66.8% 70.2% 70.2% 70.1% EBITDA Margin 9.8% 5.4% 6.4% 6.4% 5.3% EBITDA Margin 36.7% 33.8% 33.4% 33.4% 32.3% Net Income Margin 1.9% 2.1% 0.4% 0.4% -0.1% Net Income Margin 26.8% 24.9% 24.4% 24.4% 23.3% TTM Revenue Growth (YoY) 16.5% 14.2% 17.1% 17.1% 17.7% TTM Revenue Growth (YoY) 23.9% 28.7% 23.7% 23.7% 20.1% TTM EBITDA Growth (YoY) 7.4% 8.0% 4.3% -1.8% -7.3% TTM EBITDA Growth (YoY) 3.1% 5.5% 0.0% -0.3% -3.2% TTM Earnings Growth (YoY) 31.5% 21.4% -7.6% -8.1% -7.2% TTM Earnings Growth (YoY) 33.3% 13.6% 25.8% 25.8% 18.7% Current Ratio 1.5 1.5 1.6 1.6 1.6 Current Ratio 4.2 4.1 3.5 3.5 3.5 Cash as Percent of Market Cap 12.3% 14.2% 15.8% 14.1% 12.6% Cash as Percent of Market Cap 14.7% 14.2% 14.3% 14.3% 13.7% Enterprise Value Growth (YoY) -0.8% -10.6% -6.2% -2.6% 21.4% Enterprise Value Growth (YoY) 30.3% 36.4% 14.5% -4.8% 7.8%

Content & Media 2Q14 3Q14 4Q14 1Q15 2Q15 Services 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.6x 2.7x 2.7x 2.8x 2.8x EV/Revenue 3.2x 2.4x 2.3x 2.5x 2.4x EV/EBITDA 20.1x 16.7x 17.8x 21.6x 31.3x EV/EBITDA 24.2x 26.4x 29.8x 24.7x 28.3x EV/Earnings 76.1x 44.4x 13.3x 13.0x 35.3x EV/Earnings 84.8x 74.0x 43.0x 47.4x 36.4x Gross Profit Margin 59.8% 52.3% 59.8% 59.8% 56.0% Gross Profit Margin 72.4% 73.0% 73.0% 73.0% 72.4% EBITDA Margin 16.2% 15.1% 12.2% 12.2% 12.7% EBITDA Margin 7.5% 6.9% 6.5% 6.5% 5.9% Net Income Margin 3.5% 5.4% 6.0% 6.0% 4.1% Net Income Margin -1.6% -3.8% -7.6% -7.6% -5.9% TTM Revenue Growth (YoY) 12.8% 12.9% 12.1% 12.1% 10.0% TTM Revenue Growth (YoY) 27.8% 34.5% 28.2% 28.2% 22.5% TTM EBITDA Growth (YoY) 29.6% 33.9% -4.7% -10.2% -21.3% TTM EBITDA Growth (YoY) 31.7% 17.8% 9.8% 3.3% 13.2% TTM Earnings Growth (YoY) -22.2% -26.7% 45.2% 45.2% 45.8% TTM Earnings Growth (YoY) 159.9% 401.6% 123.5% 123.5% 162.6% Current Ratio 3.5 3.5 3.8 3.8 2.9 Current Ratio 2.7 2.6 2.8 2.8 2.6 Cash as Percent of Market Cap 26.5% 21.3% 23.8% 18.3% 18.7% Cash as Percent of Market Cap 13.4% 14.9% 17.1% 17.5% 18.2% Enterprise Value Growth (YoY) 37.9% 27.6% -2.3% -21.2% -7.4% Enterprise Value Growth (YoY) 18.8% -8.2% -14.5% -24.8% 0.2%

Gaming 2Q14 3Q14 4Q14 1Q15 2Q15 Social 2Q14 3Q14 4Q14 1Q15 2Q15 EV/Revenue 3.6x 2.8x 2.5x 2.8x 3.1x EV/Revenue 10.5x 12.6x 10.2x 8.5x 9.1x EV/EBITDA 9.2x 10.2x 14.2x 15.9x 17.9x EV/EBITDA 31.1x 33.1x 31.7x 32.7x 34.5x EV/Earnings 8.7x 11.8x 11.6x 13.1x 18.7x EV/Earnings 20.7x 20.4x 22.2x 18.6x 77.1x Gross Profit Margin 70.3% 69.0% 70.2% 70.2% 70.1% Gross Profit Margin 61.8% 63.0% 68.2% 68.2% 68.3% EBITDA Margin 29.8% 21.0% 13.6% 13.6% 28.6% EBITDA Margin 9.9% 10.6% 10.5% 10.5% 10.1% Net Income Margin 18.8% 16.5% 5.9% 5.9% 10.2% Net Income Margin 21.6% 23.8% 23.6% 23.6% 9.0% TTM Revenue Growth (YoY) 12.2% 14.1% 22.7% 22.7% 23.4% TTM Revenue Growth (YoY) 62.4% 63.7% 58.4% 58.4% 51.5% TTM EBITDA Growth (YoY) -20.0% -14.7% 3.8% -2.7% -2.7% TTM EBITDA Growth (YoY) 7.5% 19.2% 39.4% 39.8% 44.5% TTM Earnings Growth (YoY) 19.8% 15.9% 25.9% 25.9% 8.7% TTM Earnings Growth (YoY) 299.4% 222.7% 109.4% 109.4% 65.8% Current Ratio 2.0 1.8 2.5 2.5 2.4 Current Ratio 9.6 6.7 9.6 9.6 8.3 Cash as Percent of Market Cap 25.2% 32.5% 32.1% 27.9% 25.0% Cash as Percent of Market Cap 11.4% 13.4% 12.8% 12.1% 12.6% Enterprise Value Growth (YoY) 27.8% -6.5% -24.8% -15.0% 20.4% Enterprise Value Growth (YoY) n/a n/a n/a -14.3% 22.5%

Purchase Enterprise TTM Rev Date Buyer Seller Price (mm) Value (mm) EV/Rev EV/EBITDA Growth 06/17/15 CITIC Securities Company Limited (SHSE:600030) Qihoo 360 Technology Co. Ltd. (NYSE:QIHU) $9,912.8 $10,045.8 6.7x 27.3x 82.7% 04/07/15 Permira Advisers; Canada Pension Plan Investment Informatica Corporation (NasdaqGS:INFA) $5,343.1 $4,844.4 4.6x 25.6x 8.0% 06/15/15 Cox Automotive, Inc. Dealertrack Technologies, Inc. (NasdaqGS:TRAK) $4,547.1 $4,459.5 4.7x 36.1x 78.5% 05/07/15 Equinix, Inc. (NasdaqGS:EQIX) Telecity Group plc (LSE:TCY) $4,089.4 $4,047.9 7.6x 16.2x 7.1% 06/23/15 Huatai Ruilian Fund Management Co., Ltd. Momo Inc. (NasdaqGS:MOMO) $1,863.4 $3,117.8 47.5x - 665.4% 06/15/15 - iDreamSky Technology Limited (NasdaqGS:DSKY) $491.9 $480.7 2.5x 141.0x 196.5% 06/29/15 Accel Partners; IDG Capital Partners Kongzhong Corp. (NasdaqGS:KZ) $349.4 $281.0 1.2x 7.3x 29.8% 05/04/15 Ciena Corporation (NYSE:CIEN) Cyan, Inc. (NYSE:CYNI) $275.4 $221.5 1.9x - 7.5% 06/01/15 Orient Securities Co., Ltd. Taomee Holdings Ltd. (NYSE:TAOM) $98.7 $55.1 1.4x - -21.7% 05/15/15 Gravity4, Inc. TradeDoubler AB (OM:TRAD) $97.1 $53.3 0.3x - -10.4% 04/12/15 Avid Technology, Inc. (NasdaqGS:AVID) Orad Hi Tec Systems Ltd. (XTRA:OHT) $68.3 $58.7 1.4x 10.2x 22.5% 06/24/15 Hikari Tsushin, Inc. (TSE:9435) iFLAG Co.,Ltd. (JASDAQ:2759) $58.6 $65.8 1.4x - 26.4% 06/09/15 Perfect Commerce Holdings, LLC Hubwoo (ENXTPA:HBW) $28.6 $21.9 0.7x 20.8x -10.9%

Purchase Enterprise TTM Rev Date Buyer Seller Price (mm) Value (mm) EV/Rev EV/EBITDA Growth 06/22/15 Numericable-SFR (ENXTPA:NUM) Bouygues Telecom S.A. $11,394.1 $11,394.1 - - - 06/17/15 CITIC Securities Company Limited (SHSE:600030) Qihoo 360 Technology Co. Ltd. (NYSE:QIHU) $9,912.8 $10,045.8 6.7x 27.3x 82.7% 04/07/15 Permira Advisers; Canada Pension Plan Investment Informatica Corporation (NasdaqGS:INFA) $5,343.1 $4,844.4 4.6x 25.6x 8.0% 05/12/15 Verizon Communications Inc. (NYSE:VZ) AOL Inc. $4,759.4 $4,282.5 1.7x 9.9x 8.6% 06/15/15 Cox Automotive, Inc. Dealertrack Technologies, Inc. (NasdaqGS:TRAK) $4,547.1 $4,459.5 4.7x 36.1x 78.5% 05/07/15 Equinix, Inc. (NasdaqGS:EQIX) Telecity Group plc (LSE:TCY) $4,089.4 $4,047.9 7.6x 16.2x 7.1% 06/23/15 Huatai Ruilian Fund Management Co., Ltd. Momo Inc. (NasdaqGS:MOMO) $1,863.4 $3,117.8 47.5x - 665.4% 04/20/15 Telenet Group Holding NV (ENXTBR:TNET) BASE Company nv $1,425.3 $1,425.3 1.9x 7.8x - 05/26/15 EMC Corporation (NYSE:EMC) Virtustream, Inc. $1,200.0 $1,200.0 - - - 04/07/15 Singapore Telecommunications Limited (SGX:Z74) TrustWave Holdings, Inc. $810.0 $826.5 3.8x - 8.7% 05/18/15 Changjiang Growth Capital Investment Co., Ltd. China Mobile Games & Entertainment (NasdaqGM:CMGE) $718.7 $650.1 2.7x 12.7x 180.9% 05/19/15 Continental Aktiengesellschaft (DB:CON) Elektrobit Automotive GmbH $668.2 $668.2 3.5x 26.8x 15.8% 06/30/15 Cisco Systems, Inc. (NasdaqGS:CSCO) OpenDNS, Inc. $635.0 - - - - 04/27/15 MasterCard Incorporated (NYSE:MA) Applied Predictive Technologies, Inc. $600.0 $600.0 - - - 05/04/15 Delivery Hero Holding GmbH Yemek Sepeti Elektronik Iletisim Tanitim Pazarlama Gida $589.0 $589.0 - - - 04/28/15 Twitter, Inc. (NYSE:TWTR) TellApart, Inc. $533.0 $533.0 - - - 06/05/15 JM WOWO (NasdaqGM:WOWO) Join Me Group (HK) Investment Company Limited $523.9 $523.9 - - -

Purchase Price Enterprise Buyer Seller (mm) Value (mm) EV/Rev EV/EBITDA CA, Inc. (NasdaqGS:CA) Rally Software Development Corp. $431.8 $432.4 4.7x - Grid-Tools Limited - - - - IdmLogic LTD. - - - - Cisco Systems, Inc. (NasdaqGS:CSCO) OpenDNS, Inc. $635.0 - - - Piston Cloud Computing, Inc. - - - - Tropo Inc. - - - - Embrane, Inc. - - - - Drivy, SA Buzzcar, Inc. $1.2 $1.2 - - Autonetzer GmbH - - - - Livop Ltd - - - - Google Inc. (NasdaqGS:GOOGL) Agawi Inc. - - - - Pulse.io, Inc. - - - - Timeful Inc. - - - - Gravity4, Inc. TradeDoubler AB (OM:TRAD) $97.1 $53.3 0.3x - Rocket Fuel Inc. (NasdaqGS:FUEL) $434.5 $342.4 0.8x - CrossGraph - - - - EZ Like Midia e Participacoes Ltda. - - - - G4 Search - - - - Jasper Infotech Private Limited Accelyst Solutions Pvt. Ltd. - - - - MartMobi Technologies Pvt. Ltd. - - - - Letsgomo Labs LLP - - - - Microsoft Corporation (NasdaqGS:MSFT) Datazen Software Inc. - - - - 6 Wunderkinder GmbH - - - - BlueStripe Software, Inc. - - - - Sprinklr Inc. Scup Ltda. - - - - Get Satisfaction, Inc. - - - - newBrandAnalytics, Inc. - - - - STATS LLC Prozone Sports Ltd. - - - - Prozone-Amisco Group - - - - TVT Video Technologies Inc. - - - - Synopsys Inc. (NasdaqGS:SNPS) Atrenta Inc. - - - - Codenomicon Oy - - - - Quotium Technologies SA, Application Security Solutions - - - - Twitter, Inc. (NYSE:TWTR) TellApart, Inc. $533.0 $533.0 - - Whetlab - - - - tenXer, Inc. - - - - Vista Equity Partners Pearson Education, Inc., Student Information Systems Businesses $350.0 $350.0 - - EagleView Technologies, Inc. - - - - Mediaocean LLC - - - -

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