HW&Co. Landscape Industry Reader Template

TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

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Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM CONTENTS . DEAL SPOTLIGHT . M&A TRANSACTIONS – 1Q 2016 KEY FACTS . SOFTWARE M&A ACTIVITY . 25 year history with over 120 . SOFTWARE SECTOR OVERVIEWS closed transactions in the . SOFTWARE PRIVATE PLACEMENTS OVERVIEW last 2 years . SOFTWARE PUBLIC COMPARABLES . Approximately 250 OVERVIEW professionals across seven . TECHNOLOGY IPO OVERVIEW offices in the U.S. and . DEBT MARKET OVERVIEW Europe . APPENDIX: PUBLIC COMPARABLES DETAIL . Strategic relationships in India and China HW&Co. Office TMT CONTACTS Network Office UNITED STATES . 10 industry groups Jeff Bistrong Managing Director HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS [email protected] Sam Hendler SOFTWARE / SAAS Managing Director INTERNET & DIGITAL MEDIA [email protected] . Enterprise Software . IT and Tech-enabled . AdTech and Marketing . Digital Media and Content Services Mike Wilkins . Data and Analytics Solutions . eCommerce Managing Director . Data Center and . Infrastructure and . Consumer Internet . Mobile [email protected] Managed Services Security Software EUROPE Thierry Monjauze TMT VERTICAL FOCUS AREAS Managing Director [email protected] . Education . Fintech . Manufacturing . Public Sector and Non-Profit . Energy, Power, and . Healthcare IT . Professional Services . Supply Chain, Transportation, TO SUBSCRIBE PLEASE EMAIL: Infrastructure and Logistics *[email protected]

SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS

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PAGE | 1 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

DEAL SPOTLIGHT – CLEARLINK HW&Co.’s TMT Group advised Pamlico Capital and its portfolio company, Clear Link Holdings, LLC (dba Clearlink), on its sale to Sykes Enterprises, Inc. (NASDAQ: SYKE).

. This transformative acquisition expands Sykes’s service offerings and total addressable market, enabling the company to capture a greater share of the customer contact management value chain.

. Combining Clearlink’s digital marketing, demand generation, and sales conversion has been acquired by model with Sykes’s post-sales customer care and support capabilities will enable the combined company to provide the market with a unique and differentiated global customer interaction management platform that more effectively engages digital consumers at every touch point in the customer life cycle.

. There is a significant opportunity for the combined companies to generate revenue synergies through cross-selling the full solution suite to existing customers, providing a April 1, 2016 comprehensive outsourced customer management strategy.

ABOUT CLEARLINK

. Clearlink is a leading tech-enabled inbound demand generation and sales conversion platform serving well-known clients across various industries and subsectors, including telecommunications, satellite television, home security, and insurance. . Clearlink leverages proprietary marketing content generation and sales analytics technologies to capture potential customers, who are then directed towards the company’s sales centers and converted into actual customers for its clients. . Founded in 2003, Clearlink is based in Salt Lake City, Utah and has approximately 1,300 employees across two offices.

PAGE | 2 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SELECT SOFTWARE M&A TRANSACTIONS – 1Q 2016

Announced Insight Venture Partners’ pending take-private acquisition of Diligent Corporation . Diligent is a leading provider of secure corporate governance and collaboration software for boards and senior executives. . Over 3,500 clients in more than 60 countries across all seven continents rely on Diligent to provide secure, intuitive access to their most time-sensitive and confidential information, ultimately helping them make better decisions. Ent. Value: $434.3m EV / Revenue: 4.4x Revenue: $98.7m EV / EBITDA: 26.2x . This acquisition, which is expected to close in 2Q 2016, represents Insight’s second take-private transaction in the last 12 months, having completed the acquisition of supply chain software provider, E2open, in March 2015.

Announced GTCR’s pending acquisition of Lytx . Lytx provides video-based driver safety software and telematics to over 1,400 commercial and government clients worldwide. . The company’s flagship DriveCam™ solution enables clients to realize a significant return on investment by lowering operating and insurance costs, while achieving greater efficiency, safety and compliance. Ent. Value: $500.0m EV / Revenue: NA . Post-acquisition, GTCR will support Lytx in enhancing its solution suite and data set to better serve its expanding client base, Revenue: NA EV / EBITDA: NA furthering the company’s video telematics market leadership.

April 4, 2016 ResMed’s acquisition of Brightree . Brightree offers cloud-based business management software solutions to the post-acute care industry. . The acquisition furthers ResMed's position as a leading tech-driven medical device company and provides its customers new tools to help them increase operational efficiency and improve cash-flow while delivering best-in-class patient care. Ent. Value: $800.0m EV / Revenue: 7.1x Revenue: $113.0m EV / EBITDA: 18.6x . Building healthcare informatics offerings is central to ResMed's growth strategy and its goal of helping customers improve patient quality of life, slow the progression of chronic disease, and lower overall healthcare system costs.

March 31, 2016 The Riverside Company’s acquisition of Guestline . Guestline provides a broad suite of hospitality and hotel management software including property management systems, online bookings, channel distribution, social media, PCI compliance, and POS systems. . The company serves a diverse client base of independent hotels, hotel chains, pub companies, and serviced apartments Ent. Value: NA EV / Revenue: NA across four continents and over ten countries. Revenue: NA EV / EBITDA: NA . Riverside plans to leverage its global team to help Guestline grow internationally, deepen its penetration in the UK market, and invest in new technologies and products to ensure Guestline remains an industry leader.

February 2, 2016 Summit Partners’ acquisition of Perforce Software . Perforce provides a cloud-based source code management and collaboration platform to over 10,000 clients globally. . The company’s software supports distributed high-change environments, favored by developers, as well as the centralized collaborative environment and large file support needed by operations teams. Ent. Value: NA EV / Revenue: NA Revenue: NA EV / EBITDA: NA . Summit is partnering with Perforce to capitalize on the rapidly growing collaborative development market opportunity, which is being driven by the increasing complexity within enterprise development and deployment environments.

PAGE | 3 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME

(# of Transactions) . The 10 most active strategic software consolidators combined for 4 29 acquisitions in 1Q 2016, with IBM 2016 being the most active. 12 10 2015 . IBM is actively expanding its 5 presence in higher-margin 2014 businesses like cloud, security, and 13 4 2013 analytics to offset the decline in its 2 18 3 2012 28 10 perpetual licensing business. The 6 9 company’s investment in these 3 2 4 1 1 areas grew 24% to $28.9 billion in 3 3 9 6 6 constant currency terms in 2015. 10 8 8 5 4 9 5 1 Notable 1Q 2016 transactions 5 5 5 2 7 9 include Truven Health Analytics, 12 9 8 10 7 5 7 5 7 Optevia, IRIS Analytics, and Resilient, 2 3 among others.

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME

(# of Transactions) . Global strategic software M&A registered 406 transactions in 1Q 2016, which was slightly below the last three quarters, but still among the most active quarters in the last four years. . Historically, software M&A has largely been driven by big technology companies; however, in 454 438 435 412 402 406 recent years, many large non- 379 362 371 352 352 333 340 traditional technology companies 327 324 309 like GE and Schneider, have become more active in the sector as their business models are being disrupted by new technologies seeking to capitalize on secular trends involving data and the 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 internet of things.

Note: Includes control investments only. PAGE | 4 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME

(# of Platform Transactions) . The 10 most active software investors completed a combined 18 new platform investments in 1Q 2016 2016, with Insight Venture Partners 3 2015 and Vista Equity leading the way 6 with seven investments, collectively. 2014 . Of the 18 platform investments, 13 2013 were SaaS / application software 9 2 2012 transactions, three were data- 5 2 1 4 1 oriented transactions, and two were 2 7 7 6 5 1 infrastructure software transactions. 5 3 7 4 3 2 Four deals involved European and 2 4 3 3 3 4 6 3 Asian targets while three were take- 4 3 private transactions. 9 3 4 1 3 6 5 2 2 3 4 3 2 2 3 2

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME

(# of Platform Transactions) . Globally, private equity registered 50 new software platform acquisitions in 1Q 2016, of which the average reported transaction size was $227 million, down from $910 million in 4Q 2015. . Private equity firms continue to exhibit strong interest in the software 54 55 sector as they seek to deploy 50 49 47 48 47 46 45 44 46 record levels of uninvested capital 42 41 43 and capitalize on a lending 38 32 environment that remains favorable, especially for high quality, middle market software companies. 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16

Note: Includes control investments only. PAGE | 5 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)

. Application Software M&A 319 320 continued at a strong pace 316 313 298 2.5x 288 289 2.5x 2.5x 2.5x with 313 registered 282 2.4x 272 2.4x 2.3x transactions, making 1Q 2016 266 271 2.3x 2.3x 255 252 251 one of the most active 244 246 2.1x 2.1x quarters over the past four 227 years. 1.6x 1.5x . Median reported Application 1.4x 1.4x Software M&A revenue 1.3x 1.2x multiples remained in line with the prior four quarters, and above historical averages.

1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS

DATE ENTERPRISE REVENUE . Strategic buyers continue to CLOSED ACQUIRER TARGET DESCRIPTION VALUE (MM) MULTIPLE

view M&A as a primary growth Pending CCL Industries Inc. Checkpoint Systems Inc. Manufacturing, distributing, and marketing solutions to the retail and apparel industries. $433 0.7x vehicle, targeting competitors Pending GI Partners, Allscripts Solutions Netsmart Technologies Inc. Medical health record management and analytics software. $950 NA and technology partners to Pending HgCapital Sovos Compliance, LLC Tax, compliance, and reporting software for businesses. NA NA strengthen market positions Pending Siemens Aktiengesellschaft CD-adapco Group, Inc. Engineering simulation and design exploration solutions. $970 4.9x and bolster service offerings. Pending GTCR, LLC Lytx, Inc. Video-based driver safety, compliance, and telematics solutions. $500 NA 04/04/16 BasWare Oyj Verian Technologies, Inc. Purchasing and invoice processing software. $36 3.4x . Some of the more notable 03/22/16 NICE Systems Ltd. Nexidia, Inc. Phonetic-based technology solutions for audio and video search. $135 NA transactions involving direct 03/03/16 Vista Equity Partners Solera Holdings Inc. Risk and asset management software to the P&C insurance sector. $6,272 5.5x competitors include CPSI’s 02/29/16 TriTech Software Systems Inc. The Omega Group, Inc. Geographic and mapping software for law enforcement, public safety, and education. NA NA acquisition of Healthland and 02/24/16 WebQA, Inc. Intelligent Services, Inc. File sharing, request submission, tracking, and payment processing software. NA NA 02/09/16 Endurance International Group Constant Contact, Inc. Marketing software and tools designed for small businesses. $932 2.6x Kronos’s acquisition of 01/29/16 Learning Technologies Group plc Rustici Software LLC Corporate compliance monitoring and training software. $37 5.5x Empower. Notable partner 01/27/16 Pamplona Capital Management MedAssets, Inc. Revenue performance software for healthcare organizations. $2,775 3.6x acquisitions include 01/14/16 Kronos Incorporated Empower Software Solutions, Inc. HR and workforce management software. NA NA Endurance’s purchase of 01/08/16 Computer Programs & Systems Inc. Healthland, Inc. Integrated healthcare information technology solutions to rural health centers. $242 NA Constant Contact and 01/08/16 ExamWorks, Inc. EDCO Group Inc. Record retrieval software and services for the legal and insurance professionals. $62 NA Siemen's pending purchase of 12/31/15 Aptean, Inc. AssetPoint, LLC Maintenance and asset management software solutions. NA NA CD-adapco. MEDIAN $467 3.6x

PAGE | 6 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)

. SaaS M&A volume totaled 52

transactions in 1Q 2016 – 70 68 5.8x below record levels achieved 65 5.7x 5.5x 5.6x in 2015, but still above 60 5.3x 5.3x historical quarterly averages. 4.9x 4.9x 55 54 55 53 52 4.6x 4.6x 4.4x 4.4x 4.4x Median reported transaction 49 4.2x . 47 46 45 3.9x multiples increased to 4.9x 43 42 3.5x revenue in 1Q 2016, 38 38 3.4x representing the highest mark since 2Q 2014.

1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16

NOTABLE SAAS M&A TRANSACTIONS

DATE ENTERPRISE REVENUE . In 1Q 2016, strategic buyers CLOSED ACQUIRER TARGET DESCRIPTION VALUE (MM) MULTIPLE and private equity invested Pending Insight Venture Partners Diligent Corporation SaaS-based shareholder proxy management software. $434 4.4x across a broad set of verticals, Pending Internet Brands, Inc. Demandforce, Inc. Web-based marketing and customer communications software. NA NA with the automotive, Pending Nasdaq, Inc. BoardVantage, Inc. Information sharing solutions for board and leadership communication to the Fortune 500. $200 NA healthcare, construction, and Pending Visma AS Fortnox AB SaaS-based solutions for companies, schools, and accounting and auditing firms in Sweden. $163 9.4x 04/04/16 Resmed Corp. Brightree LLC Cloud-based software solutions to the post-acute industry. $800 7.1x education verticals being 04/01/16 Aconex Limited CONJECT Holding GmbH Web-based construction and infrastructure management software. $74 2.7x among the most active areas. 03/31/16 The Riverside Company Guestline Ltd Cloud-based hotel management and hospitality software solutions. NA NA In particular, strategic buyers 02/29/16 Decision Resources, Inc. Adaptive Software LLC SaaS-based process management software solutions for the pharmacy management. $25 7.7x . 02/22/16 Verint Systems Inc. Contact Solutions, Inc. Web-based message automation solutions. NA NA demonstrated an ability to 02/03/16 PowerSchool Group LLC Interactive Achievement, Inc. SaaS-based educational assessment and grade reporting software for school districts. NA NA pay for growth and synergies 02/02/16 Summit Partners LLP Perforce Software Inc. Cloud-based software configuration and version management solutions. NA NA as evidenced by transactions 01/25/16 JMI Equity CoreHR Limited Cloud-based human resource, recruiting, and payroll software. NA NA led by Visma, Resmed, 01/20/16 Civitas Learning, Inc. College Scheduler, LLC Web-based class scheduling system for the higher education market. NA NA Decision Resources, and 01/20/16 Sparta Systems, Inc. 123Compliance Corporation SaaS-based quality management, compliance, and reporting software. NA NA Quality Systems, all of which 01/12/16 Pitney Bowes Inc. Enroute Systems Corporation Cloud-based transportation management software. NA NA acquired businesses at 01/12/16 PTC Inc. Kepware, Inc. Communication and interoperability software solutions for the automation industry. $118 5.9x 01/05/16 SPS Commerce Canada, Ltd. ToolBox Solutions Inc. Category management solutions for retailers and manufacturing companies. $30 NA multiples greater than 7.0x 01/04/16 Quality Systems Inc. HealthFusion Holdings, Inc. SaaS-based technology for physicians, hospitals, and medical billing. $198 7.9x revenue. MEDIAN $163 7.1x

PAGE | 7 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)

. After a robust 2015, Data and 112 Analytics M&A volume slowed 105 102 in 1Q 2016 to 82 reported 99 3.3x 3.3x

transactions. 89 2.8x 82 82 Median reported Data and 2.7x 2.6x . 76 2.6x 73 74 74 Analytics sector transaction 71 72 67 multiples also decreased to 63 64 64 2.2x 2.0x 2.2x revenue, but remain in 1.9x 1.9x 1.8x line with historical averages. 1.6x 1.4x 1.3x 1.1x 0.9x 0.9x

1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16

NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS

DATE ENTERPRISE REVENUE . Data and Analytics CLOSED ACQUIRER TARGET DESCRIPTION VALUE (MM) MULTIPLE companies continue to garner Pending Delphi Automotive PLC Control-Tec LLC Telematics and analytics solutions for the transportation industry. $145 NA strong interest from strategic Pending Genscape, Inc. Locus Energy, LLC Provider of data monitoring and analytics software for the energy sector. NA NA buyers as they seek to Pending IBM Truven Health Analytics Analytics software and services for the healthcare industry. $3,567 5.8x establish new capabilities in Pending Oracle Corporation AddThis Social sharing and analytics platform for sharing online content. $175 NA Pending Telenor ASA Tapad, INC. Marketing technology and data analytics solutions. $379 NA specific verticals, or with Pending WNS (Holdings) Ltd. Value Edge Research Services BI and analytics software for the pharmaceutical and medical device industries. $18 NA specific data types. Pending Guidewire Software, Inc. EagleEye Analytics, Inc. Predictive analytics software and services for property and casualty insurers. $42 NA In one of the largest sector 03/10/16 Tableau Software, Inc. HyPer Relational DBMS for online transaction processing and analytical processing workloads. NA NA . 02/16/16 SAP SE MeLLmo Inc. Data analytics workflow and sharing platform. NA NA deals, IBM announced the 02/10/16 IHS Global Inc. Oil Price Information Service, LLC Real-time and historical spot, wholesale/rack, and retail fuel prices and analytics. $650 NA acquisition of Truven Health 01/28/16 Apple Inc. LearnSprout, Inc. Online platform for data and application management for educational institutions. NA NA Analytics for $3.6 billion, or 5.8x 01/27/16 Survey Sampling International, LLC Instantly, Inc. Tools and analytics for market researcher and brand management. NA NA revenue. IBM plans to 01/26/16 Tyco International plc ShopperTrak RCT Corporation Business analytics software for the retail industry. $175 2.3x integrate Truven’s extensive 01/22/16 StatPro Group plc Investor Analytics, LLC Portfolio and risk management analytics and services for investment managers. $16 3.2x data set spanning hundreds of 01/21/16 Adobe Systems Software Digital Analytix Business SaaS platform to analyze customer data and report visitor behavior. $45 NA different types of cost, claims, 01/05/16 Thoma Bravo, LLC Infogix, Inc. Data integrity, analytics, and visibility solutions for enterprises. NA NA 12/31/15 Geotab Inc. Maps BI Web-based data analytics and dashboards creation software. NA NA quality and outcomes 12/14/15 Intercontinental Exchange, Inc. Interactive Data Holdings Corporation Provides financial market data, analytics, and related solutions. $7,450 7.9x information with its Watson 12/09/15 NeuStar, Inc. MarketShare Partners LLC Marketing analytics solutions for businesses, media companies, marketers, and agencies. $450 7.9x Health data portfolio. MEDIAN $175 5.8x

PAGE | 8 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL) MEDIAN M&A REVENUE MULTIPLES (REPORTED)

. Infrastructure Software M&A 4.2x activity decreased slightly with 3.8x 44 registered transactions in 67

1Q 2016, but remained in line 61 with historical averages. 58 3.2x 3.3x 55 56 55 56 3.0x 3.1x 3.0x 53 52 2.9x 2.9x 1Q 2016 median reported 49 50 2.7x . 48 47 45 2.5x Infrastructure Software M&A 44 2.4x 2.4x 2.3x revenue multiples remained 38 36 consistent with recent 1.9x historical periods. 1.7x

1.2x

1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS

DATE ENTERPRISE REVENUE . IT security, mobile app CLOSED ACQUIRER TARGET DESCRIPTION VALUE (MM) MULTIPLE development, and Pending Blue Coat Systems Inc. Elastica, Inc. Transaction level security software for cloud applications and services. $280 NA Infrastructure-as-a-Service Pending Cisco Systems Holdings Acano Limited Audio conferencing and IVR communications platform. $700 NA platforms were among the Pending Golden Brick Silk Road Fund Opera Software ASA Develops and sells Web browsers for computer, tablet, and mobile applications. $1,268 2.1x most prevalent acquisition Pending Insieme Networks, Inc. CliQr Technologies, Inc. Platform for modeling, deploying, and managing applications. $260 NA Pending Micro Focus International plc Serena Software, Inc. Application lifecycle management and managed IT solutions. $540 3.3x targets in Infrastructure Pending Oracle Corporation Ravello Systems Inc. Cloud-based virtualization software solutions. NA NA Software. 04/06/16 IBM Resilient, an IBM Company Cyber-security management and incident response software. NA NA 03/22/16 Cisco Systems, Inc. Jasper Technologies, Inc. Cloud-based platform to launch, manage, and monetize IoT services. $1,400 NA . Strategic buyers remain the 03/18/16 Microsoft Corporation Xamarin Inc. Software solutions for mobile application development. NA NA most active acquirers of 03/17/16 Thales e-Security, Inc. Vormetric, Inc. Data security software for physical, virtual, and big data cloud environments. $400 7.5x Infrastructure Software 03/03/16 Interswitch Limited VANSO International Corporation Wireless messaging and software solutions for the banking industry. $75 NA companies. Notable strategic 02/29/16 salesforce.com, inc. TappingStone Inc. Open source machine learning services for software developers. NA NA acquisitions include Micro 02/17/16 keepITsafe Data Solutions, Ltd. VaultLogix, Online Data Backup Business Online data backup and disaster recovery software and solutions. $24 NA Focus’ pending acquisition of 02/08/16 Infoblox Inc. Digital Footprints International LLC IT-security solutions for detecting, diagnosing, and mitigating Internet threats. $45 NA Serena, Oracle’s pending 02/05/16 Silver Lake; Thoma Bravo, LLC SolarWinds, Inc. Enterprise-class IT and infrastructure management software. $4,446 9.2x acquisition of Ravello, and 02/03/16 Providence Equity Partners LLC Skybox Security, Inc. Cyber-security management solutions. $96 NA 01/29/16 St Ives plc The App Business Ltd. Offers mobile programming, organizational design, and agile delivery services. $78 4.9x Cisco’s acquisition of Jasper 01/29/16 The Carlyle Group Veritas Technologies LLC Data backup, recovery, archiving, eDiscovery, storage management solutions. $7,000 NA Technologies. 01/14/16 FireEye, Inc. iSight Security, Inc. Cyber threat intelligence software. $269 NA

MEDIAN $280 4.9x

PAGE | 9 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED

. In 1Q 2016, private 1,200 $16,000 placement activity 1,100 1013 1033 997 $14,000 increased 15% quarter 1,000 940 952 960 902 912 over quarter with total 869 900 $12,000 reported capital raised 820 829 829 754 increasing to $10.6 billion. 800 719 740 700 $10,000 . Although large institutional 700 investors like T. Rowe Price 600 $8,000

have recently marked Volume 500 down their holdings in $6,000 $ in Millions various tech startups 400 previously valued in 300 $4,000 excess of $1 billion, private 200 placement activity $2,000 increased in both capital 100 raised and volume in 1Q 0 $0 2016. 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

PRIVATE PLACEMENT CAPITAL RAISED BY ROUND (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

. In 1Q 2016, 54% of reported private capital 20% 20% 18% 15% raised was deployed in 21% 21% 21% 21% 25% 26% 27% 31% 30% 28% late stage rounds (Series C 37% 36% or later), up from 42% in 13% 55% the prior quarter. 20% 17% 22% 15% 26% 17% 14% 39% 32% 34% 16% . With 40 reported Series C 28% 15% of later financings in 1Q 30% 20% 21% 31% 29% 19% 26% 2016 compared to 34 in 31% 26% 33% 32% the prior quarter, later 18% 33% 11% 20% 22% stage deals increased to 26% 26% 15% of total financings in 17% 31% 31% 29% 24% terms of total deal 23% 26% 21% 28% 24% 28% 19% 17% 22% 22% volume. 14% 16% 17% 4% 4% 7% 7% 4% 5% 6% 4% 6% 5% 6% 2% 2% 4% 4% 2% 4% 2% 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 Seed Series A Series B Series C Series D / or later

PAGE | 10 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SELECT RECENT SOFTWARE PRIVATE PLACEMENTS

TOTAL ROUND DATE COMPANY SECTOR ROUND RAISED INVESTORS (CURRENT ROUND) DESCRIPTION SIZE ($M) ($M)

Late SaaS-based executiv e management analytics and 03/23/16 SaaS $131 $749 Blackrock, Credit Suisse Stage tools platform.

Online platform for loan analytics, risk-based pricing, Data & Late 03/22/16 $40 $50 Bregal Sagemount and automated decision technology for automotiv e Analytics Stage lenders.

Adams Street Partners, LLC; Schooner Capital LLC; Tribeca 03/21/16 SaaS C $22 $56 Venture Partners; Industry Ventures, LLC; The Guardian Life SaaS-based online benefits serv ice. Insurance Company of America; Sun Life Financial Inc.

Google Ventures; Cisco Inv estments; Index Ventures; Intel 03/15/16 Infrastructure C $30 $60 Capital; Northgate Capital Group; Sutter Hill Ventures; Thomv est Enterprise security and IT infrastructure software. Ventures

UPMC Enterprises; CHV Capital, Inc.; Norwest Venture Partners; Data & Late Data warehousing, analytics, and outcomes 02/09/16 $70 $222 Sequoia Capital; EPIC Ventures; Kaiser Permanente Ventures; Analytics Stage improv ement solutions to healthcare organizations. MultiCare Health System; Sands Capital Management

Google Capital; Institutional Venture Partners; Felicis Ventures; Caller-ID products to detect, report, and mitigate 01/28/16 SaaS C $75 $133 Andreessen Horowitz; Citi Ventures phone fraud.

Accel Partners; SoftTech VC; Costanoa Venture Capital; RSE 01/26/16 SaaS C $40 $62 Cloud-based employee training platform. Ventures, Inv estment Arm; Vayner/RSE

Norwest Venture Partners; Lightspeed Venture Partners; SingTel 01/26/16 Infrastructure A $20 $20 Network cyber-security solutions. Innov 8 Holdings

Data & Late Programmatic marketing software and analytics for 01/24/16 $10 $57 Sky plc Analytics Stage brands and agencies.

Goldman Sachs Group, Merchant Banking Div ision; Accel Late 01/21/16 Infrastructure $30 $77 Partners; Bay Partners, LLC; Hummer Winblad Venture Partners; Component-based software dev elopment solutions. Stage Morgenthaler; New Enterprise Associates

Susa Ventures; Data Collectiv e; Victory Park Capital Adv isors; 01/20/16 SaaS B $150 $164 GV; QED Inv estors; SV Angel; Kapor Capital; Bronze Inv estments; Direct lending platform for non-prime borrowers. Eagle Cliff Partners

ICONIQ Capital, Index Ventures; OpenView Venture Partners; 01/12/16 Infrastructure D $95 $147 Cloud-based application monitoring platform. Contour Venture Partners; Amplify Partners

Note: Financial information presented above represents reported capital raised only. PAGE | 11 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

STOCK PERFORMANCE (1- & 3-YEAR) REVENUE MULTIPLE ANALYSIS 1Q 2016 VS. 1Q 2015

Large-Cap SaaS (3.3%) 1Q 2015 1Q 2016 45.6% 9.4x

HCM 10.8% 8.5x 39.1% 8.1x

12.2% 6.7x 6.8x Financial 6.5x 6.2x 6.3x 84.5% 5.9x 6.1x 5.2x 5.0x 4.9x 4.6x 4.8x 4.7x Public Sector / Non-Profit 4.6% 4.3x 4.4x 4.6x 4.4x 4.3x 4.2x 113.6% 4.2x 4.1x 3.9x 3.4x 3.5x 2.9x 10.0% 2.9x 2.6x 2.7x Marketing 2.1x 68.4% 1.7x1.3x

HCIT ( 8.4%) 5.2%

PLM & Engineering 3.0% 35.4%

SCM & Logistics ( 13.0%) 68.9% 6.5% Enterprise 59.8% EBITDA MULTIPLE ANALYSIS 1Q 2016 VS. 1Q 2015 4.6% Bellwethers 26.2% 74.1x 1Q 2015 1Q 2016 Small-Cap SaaS ( 15.9%) 65.2x 65.5x 15.9%

56.4x ( 6.7%) IT Security 42.6%

Data & Analytics ( 38.3%) 14.9% 36.8x 37.5x 34.0x 34.6x ( 9.4%) 30.1x 30.8x 29.8x IT Operations Mgmt. 10.0% 26.0x 19.5x 20.7x 16.4x13.8x 17.5x 17.4x 15.6x 14.6x 18.3x 15.1x 15… Communication (27.2%) 15.0x 13.8x13.3x 14.2x ( 1.4%) 12.5x 9.0x 12.8x 12.7x 9.3x 9.7x 8.5x Data Storage ( 22.6%) ( 12.9%)

Energy 5.5% (31.4%)

1 Yr Stock 3 Yr Stock

PAGE | 12 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH NTM EBITDA GROWTH LTM EBITDA MARGIN NTM REVENUE GROWTH NTM EBITDA GROWTH LTM EBITDA MARGIN

Large-Cap SaaS 8.1x 25% 168% 7% 52% 16% (35%)

HCM 6.7x 26% 54% 19% 56% 57% (92%)

Financial 5.2x 6% 32% 34% 33% (16%) 78%

Public Sector / Non-Profit 5.0x 15% 70% 22% 80% (23%) 70%

Marke ting 4.9x 22% 74% 8% 65% (100%) 57%

HCIT 4.8x 14% 63% 12% 82% - 17%

PLM & Engineering 4.7x 6% 36% 20% 21% (19%) 63%

SCM & Logistics 4.4x 10% 29% 19% (22%) (60%) 94%

Enterprise 4.4x 5% 27% ` 27% 82% 87% 22%

Bellwethers 4.3x (0%) 14% 27% 82% 75% -

Small-Cap SaaS 4.2x 23% 60% 13% 79% (63%) 50%

IT Security 4.1x 21% 17% 26% 39% - 63%

Data & Analytics 3.4x 14% 49% 14% 67% (61%) 37%

IT Operations Mgmt. 2.9x 14% 33% 22% 27% 54% 37%

Communication 2.6x 8% 105% 15% 31% 14% 38%

Data Storage 2.1x 4% 26% 15% - (55%) 48%

Energy 1.3x 6% 25% 20% (13%) 52% 63%

PAGE | 13 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SUMMARY OF TECHNOLOGY IPOS

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE)

$0 - 50M $50 - 100M $100 - 250M $250M + . Not a single technology company went public 1Q 2016, representing the fourth 18 quarter since 1993 where technology IPOs 16 have been absent (e.g., 3Q 2002, 1Q 2003, 15 and 1Q 2009). 13 13 . According to Dealogic, the lack of deals in 12 11 11 those three quarters made sense as they were periods of crisis, when stock markets 9 9 were trading at record lows. However, the 8 7 7 lack of activity in 1Q 2016 does not follow 6 any sort of market correction or bubble 5 bursting. In fact, the broader equity markets

3 are trading just shy of their nominal record highs (not adjusted for inflation).

1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16

2012 Total: 37 2013 Total: 48 2014 Total: 47 2015 Total: 31

OFFERING SIZE AT IPO (LTM) MARKET CAP AT IPO (LTM) REVENUE GROWTH (1YR PRIOR TO IPO)

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

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

13% 10% 29% 26% 39% 23% 45% 26%

32% 23% 35%

PAGE | 14 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

750.0%

650.0% 540.7%

550.0% 1 450.0% 293.0%

Growth 350.0% 172.5% 194.4% 107.0% 250.0% 150.0% 102.3% 64.3% 150.0% 57.4% 52.6% 45.4%

43.4% 11.8% 34.8% 26.9% % % Revenue 50.0%

(50.0%)

(150.0%)

125.0%

98.3% 100.0%

75.0% 65.3% 57.3% 53.0% 50.0% 39.7% 32.0% 33.1% 19.6% 2 25.0% 14.7% 14.7% 17.5% 16.2% 11.4% 7.4% 9.9% 3.3%2.2% 0.0% (1.2%) (3.1%) (1.2%) (2.7%) (25.0%) (15.6%) (16.4%) (23.2%) (22.2%) (29.7%) (50.0%) (37.2%) (41.6%)

Stock Stock Performance (49.4%) (48.8%) (75.0%)

(100.0%)

(125.0%) Circle Size Denotes Revenue ($)

IPO DATE 3/26/15 4/23/15 5/20/15 6/4/15 6/18/15 6/25/15 6/25/15 6/25/15 6/30/15 7/16/15 10/6/15 11/12/15 11/18/15 11/18/15 12/9/15

OFFER PRICE $18.0 $17.0 $25.0 $17.0 $14.0 $8.0 $12.0 $14.0 $19.0 $16.0 $17.0 $16.0 $9.0 $10.0 $21.0

OFFERING SIZE ($M) $126.0 $87.0 $222.5 $195.5 $100.1 $56.3 $74.4 $98.0 $156.8 $103.2 $425.0 $70.4 $243.0 $77.5 $462.0

OFFER TO CURRENT 39.7% (49.4%) 19.6% (37.2%) (3.1%) (15.6%) 2.2% 65.3% (48.8%) (16.4%) (22.2%) 11.4% 57.3% (2.7%) 16.2%

PAGE | 15 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER

Defined as Issuers with EBITDA of $50 Million or Less Defined as Issuers with EBITDA of $50 Million or Less . Middle market LBO loan multiples FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA Institutional Pro Rata tightened in 1Q 2016.

. Middle market LBO $2.0B $2.0B 5.6x $1.9B loan volumes 5.3x 5.3x $1.8B increased in 1Q 2016, 4.7x 4.7x 4.8x but remained below 4.5x 4.5x 4.4x $1.6B 4.3x 4.2x 4.3x $1.5B the average levels 4.1x 4.0x 3.8x 3.8x experienced during $1.2B $1.2B the past few years. 3.4x 3.3x $1.0B $0.9B $0.7B $0.6B$0.7B

$0.4B

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q'16 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16

LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES

Percentage of Total Purchase Price . Technology 2015 New-Issue LBO Loan Volume: $5.5 billion companies were the largest recipients of Technology 29.3% 66% LBO loans in 2015. 63% 60% 60% 60% Services & Leasing . Lenders, however, 23.1% 57% 58% continue to demand higher equity Healthcare 13.2% contributions from 55% sponsors as evidenced Manufacturing & 45% 50% by the decline in debt Machinery 7.6% as percentage of total purchase price to a Printing & Publishing 4.8% nine-year low of 45%. Retail 4.7%

Other 17.4%

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2016

PAGE | 16 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

SELECT HW&CO. TMT TRANSACTIONS

has received an has been has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by investment from recapitalized by

APPLICATION ERP / BUSINESS SUPPLY CHAIN DATA INFRASTRUCTURE DIGITAL HEALTHCARE ENERGY HEALTHCARE EDUCATION SOFTWARE MANAGEMENT SOFTWARE ANALYTICS SOFTWARE MEDIA TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY

has received a has received a minority has been acquired by has been acquired by has been acquired by has been acquired by has merged with has been acquired by significant equity has been acquired by has been acquired by equity investment from investment from GFI Energy Group a division of

HEALTHCARE MARKETING REAL ESTATE MARKETING DIGITAL ERP / BUSINESS ERP / BUSINESS HEALTHCARE ENERGY IT TECHNOLOGY TECHNOLOGY SOFTWARE ANALYTICS MEDIA MANAGEMENT MANAGEMENT TECHNOLOGY TECHNOLOGY SERVICES

has received a minority has been has been acquired by has acquired has been acquired by has been acquired by has been acquired by has merged with has been acquired by has been acquired by equity investment from recapitalized by

FINANCIAL HEALTHCARE HEALTHCARE ENERGY INFRASTRUCTURE INFRASTRUCTURE SUPPLY CHAIN HEALTHCARE SUPPLY CHAIN HEALTHCARE TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY SOFTWARE SOFTWARE SOFTWARE TECHNOLOGY SOFTWARE TECHNOLOGY

MANAGED LEGAL HEALTHCARE HEALTHCARE FINANCIAL HEALTHCARE NON-PROFIT NON-PROFIT INFRASTRUCTURE HEALTHCARE SERVICES TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY SOFTWARE SOFTWARE SOFTWARE TECHNOLOGY

has received a has become a wholly- has received a has received a minority has received a has been acquired by has been acquired by has been acquired by majority investment has been acquired by has been acquired by owned subsidiary of majority equity investment from significant investment from investment from from

ECOMMERCE EDUCATION ENERGY HEALTHCARE MARKETING PUBLIC SECTOR HCM ENERGY TECH-ENABLED MARKETING RETAIL TECHNOLOGY TECHNOLOGY TECHNOLOGY ANALYTICS SOFTWARE SOFTWARE TECHNOLOGY SERVICES ANALYTICS

PAGE | 17 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP EMC Salesforce HP

Communication Software Nuance NICE Synchronoss BroadSoft MobileIron Tangoe Jiv e

Enterprise Software Oracle IBM SAP Adobe Intuit Sage Constellation Open Text TOTVS

Human Capital Management (HCM) Paychex Workday Ultimate Paycom Cornerstone Paylocity Benefitfocus Xactly Halogen

Marketing Software Salesforce Adobe Criteo HubSpot Demandware Marketo Callidus Bazaarv oice ChannelAdv isor

HORIZONTAL PLM & Engineering Software Dassault Autodesk Ansys Synopsys Cadence PTC Aspen Mentor Nemetschek AVEVA

Supply Chain & Logistics Software Manhattan Fleetmatics Descartes Kinaxis SPS SciQuest American Park City Amber Road Tecsys

Energy Software AVEVA Silv er Spring OPOWER PSI EnerNOC APPLICATION SOFTWARE APPLICATION Financial Software Fiserv MSCI Jack Henry SS&C FIS Black Knight Bottomline Env estnet Q2 Holdings

Healthcare IT (HCIT) Cerner athenahealth Veev a Inov alon Allscripts Medidata Press Ganey HMS Quality Systems Impriv ata VERTICAL

Public Sector / Non-Profit Software Constellation Tyler Tech Blackbaud NIC 2U Instructure K12

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Workday Serv iceNow athenahealth NetSuite Ultimate Atlassian Guidewire Veev a Proofpoint

Small-Cap SaaS (≤ $2Bn Mkt Cap) Paycom ZenDesk Cornerstone RealPage HubSpot Fleetmatics Xero Limited. Demandware Ebix LogMeIn

Small-Cap SaaS (cont'd) CyberArk RingCentral Alarm.Com Benefitfocus Cv ent Qualys Q2 Holdings Marketo Callidus SPS SAAS Small-Cap SaaS (cont'd) inContact MINDBODY IntraLinks Workiv a Textura Instructure Fiv e9 AppFolio SciQuest OPOWER

Small-Cap SaaS (cont'd) Castlight Health Model N Bazaarv oice Xactly Amber Road

Data & Analytics Splunk Teradata Tableau Inov alon Qlik Verint MicroStrategy Pegasystems Hortonworks PROS Holdings

IT Operations Management VMware Red Hat CA Citrix Serv iceNow F5 Networks Micro Focus Arista Software AG NetScout

IT Operations Management (cont'd) Pegasystems New Relic Progress Infoblox Radware

Data Storage EMC NetApp Iron Mountain Brocade CommVault Box Barracuda Nimble Storage Carbonite

SOFTWARE IT Security Cisco Check Point Palo Alto Symantec VeriSign Gemalto Trend Micro Fortinet FireEye Cheetah Mobile INFRASTRUCTURE INFRASTRUCTURE IT Security (cont'd) Proofpoint Imperv a CyberArk AVG Tech Qualys Rapid7 Mimecast Varonis

PAGE | 18 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price / Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2016E Rev. 2017E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS Software Bellwethers Alphabet Inc. GOOGL $454,639 $518,917 94.1% 38.8% 90.4% 13.6% 15.9% 32.6% 6.1x 5.2x 4.6x 12.9x 31.7x Microsoft Corporation MSFT 379,385 436,831 97.2% 35.6% 93.0% (5.7%) (1.0%) 34.6% 4.3x 4.0x 3.8x 11.1x 38.3x Communication Oracle Corporation ORCL 159,576 169,771 90.4% (4.7%) 26.2% (4.3%) (3.4%) 40.1% 4.3x 4.3x 4.2x 9.3x 19.2x Cisco Systems, Inc. CSCO 107,495 143,264 95.2% 4.5% 36.7% 3.1% (0.3%) 28.8% 2.2x 2.2x 2.1x 7.0x 13.9x Enterprise IBM Corporation IBM 177,385 145,525 85.9% (4.9%) (28.7%) (11.9%) (4.7%) 24.6% 2.2x 2.3x 2.3x 9.0x 11.0x SAP SE SAP 103,434 96,846 93.8% 11.5% 0.3% 18.4% 5.9% 27.5% 4.4x 4.1x 3.9x 12.1x 29.1x EMC Corporation EMC 50,967 51,889 92.6% 4.6% 13.1% 1.1% 0.8% 19.7% 2.1x 2.0x 2.0x 7.5x 26.1x HCM salesforce.com, inc. CRM 50,248 49,533 89.1% 11.7% 68.4% 24.1% 21.8% 7.0% 7.5x 6.2x 5.2x 30.2x NM HP Inc. HPQ 24,443 21,399 34.6% (60.6%) (47.1%) 4.7% (53.8%) 10.8% 0.2x 0.5x 0.5x 5.5x 5.7x Marketing Median $107,495 $143,264 92.6% 4.6% 26.2% 3.1% (0.3%) 27.5% 4.3x 4.0x 3.8x 9.3x 22.6x PLM & COMMUNICATION SOFTWARE Engineering Nuance Communications, Inc. NUAN $7,243 $5,690 85.6% 31.3% (7.4%) 0.8% 1.4% 15.3% 3.7x 3.6x 3.4x 11.6x NM SCM & Logistics NICE Systems Ltd. NICE 3,459 3,900 93.9% 7.6% 78.2% 6.3% 8.3% 24.1% 3.7x 3.4x 3.2x 13.8x 15.1x Synchronoss Technologies, Inc. SNCR 1,527 1,436 61.7% (31.6%) 4.6% 26.6% 14.8% 27.2% 2.6x 2.3x 2.0x 7.6x 35.3x Energy BroadSoft, Inc. BSFT 1,118 1,178 98.2% 22.9% 55.5% 28.6% 20.5% 10.9% 4.0x 3.3x 2.8x 19.1x NM MobileIron, Inc. MOBL 276 372 34.9% (50.5%) NA 12.9% 15.8% NM 1.8x 1.6x 1.4x NM NM Tangoe, Inc. TNGO 280 311 52.9% (41.3%) (35.6%) 5.7% 3.7% 4.4% 1.3x 1.2x 1.1x 14.4x NM Financial Jiv e Software, Inc. JIVE 187 289 63.1% (27.2%) (74.7%) 9.6% 3.9% NM 1.0x 0.9x 0.9x NM NM Median $1,118 $1,178 63.1% (27.2%) (1.4%) 9.6% 8.3% 15.3% 2.6x 2.3x 2.0x 13.8x 25.2x HCIT

ENTERPRISE SOFTWARE Public Sector / Non-Profit Oracle Corporation ORCL $159,576 $169,771 90.4% (4.7%) 26.2% (4.3%) (3.4%) 40.1% 4.3x 4.3x 4.2x 9.2x 19.2x IBM Corporation IBM 177,385 145,525 85.9% (4.9%) (28.7%) (11.9%) (4.7%) 24.6% 2.2x 2.3x 2.3x 8.3x 11.0x Large-Cap SAP SE SAP 103,434 96,846 93.8% 11.5% 0.3% 18.4% 5.9% 27.5% 4.4x 4.1x 3.9x 12.5x 29.1x SaaS Adobe Systems Incorporated ADBE 44,739 46,920 95.7% 25.0% 116.2% 19.1% 21.5% 27.2% 8.8x 7.7x 6.3x 26.1x 58.7x Small-Cap Intuit Inc. INTU 27,623 26,712 95.2% 6.5% 59.8% 6.4% 9.3% 29.1% 6.2x 5.8x 5.3x 18.4x 52.6x SaaS Sage Group plc SGE 10,270 9,778 99.8% 30.3% 65.0% 6.1% 5.0% 27.1% 5.1x 4.8x 4.5x 16.9x 33.3x Data & Constellation Software Inc. TSX: CSU 8,879 8,690 88.9% 19.1% 233.4% 10.1% 15.1% 23.2% 4.8x 4.2x 3.6x 19.5x 49.0x Analytics Open Text Corporation OTEX 7,117 6,274 88.7% (4.0%) 78.4% (1.5%) (0.8%) 28.8% 3.9x 3.8x 3.7x 11.5x 28.0x TOTVS S.A. TOTS3 1,364 1,253 67.7% (32.5%) (62.4%) 7.7% 3.4% 18.6% 2.6x 2.1x 2.1x 11.2x 25.4x IT Operations Median $27,623 $9,234 92.1% 12.8% 71.7% 7.0% 7.2% 27.1% 4.9x 4.5x 4.1x 17.7x 41.1x Data Storage

IT Security

PAGE | 19 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

HUMAN CAPITAL MANAGEMENT SOFTWARE Software Bellwethers Paychex, Inc. PAYX $19,123 $19,450 98.6% 9.1% 52.9% 7.6% 7.7% 42.7% 6.7x 6.2x 5.8x 15.8x 26.3x Workday, Inc. WDAY 13,522 14,984 82.1% (7.9%) 25.4% 47.5% 33.2% NM 11.6x 8.7x 6.7x NM NM Communication The Ultimate Software Group, Inc. ULTI 5,470 5,582 89.5% 15.9% 88.5% 22.2% 24.9% 10.3% 8.9x 7.1x 5.9x 36.8x 245.9x Paycom Software, Inc. PAYC 2,079 2,103 76.8% 12.4% NA 48.8% 38.4% 18.7% 9.3x 6.7x 5.2x 43.3x 100.4x Enterprise Cornerstone OnDemand, Inc. CSOD 1,784 1,796 80.5% 17.8% (2.1%) 28.9% 26.2% NM 5.3x 4.1x 3.4x NM NM Paylocity Holding Corporation PCTY 1,589 1,668 69.8% 14.4% NA 46.7% 46.9% NM 8.6x 6.3x 5.0x NM NM Benefitfocus, Inc. BNFT 951 974 70.2% (7.0%) NA 34.7% 26.5% NM 5.1x 4.1x 3.3x NM NM HCM Xactly Corporation XTLY 170 202 64.2% NA NA 24.3% 24.8% NM 2.2x 1.8x 1.4x NM NM Halogen Software Inc. HGN 120 159 85.1% (2.8%) NA 15.9% 11.3% NM 1.8x 1.6x 1.5x NM NM Marketing Median $1,784 $1,796 80.5% 10.8% 39.1% 28.9% 26.2% 18.7% 6.7x 6.2x 5.0x 36.8x 100.4x PLM & MARKETING SOFTWARE Engineering salesforce.com, inc. CRM $50,248 $49,533 89.1% 11.7% 68.4% 24.1% 21.8% 7.0% 7.5x 6.2x 5.2x 43.1x NM SCM & Logistics Adobe Systems Incorporated ADBE 44,739 46,920 95.7% 25.0% 116.2% 19.1% 21.5% 27.2% 8.8x 7.7x 6.3x 26.1x 58.7x Criteo SA CRTO 2,250 2,588 72.3% 3.4% NA 33.9% NA 8.6% 1.7x 3.1x 2.5x 16.1x 43.5x Energy HubSpot, Inc. HUBS 1,410 1,514 72.6% 10.0% NA 57.0% 37.8% NM 7.8x 5.6x 4.3x NM NM Demandware, Inc. DWRE 1,278 1,475 51.5% (33.3%) 54.4% 47.8% 27.0% NM 5.4x 4.2x 3.3x NM NM Marketo, Inc. MKTO 769 869 57.6% (22.5%) NA 40.0% 30.0% NM 3.7x 2.8x 2.2x NM NM Financial Callidus Software Inc. CALD 841 939 77.1% 34.2% 271.5% 26.7% 22.6% 0.2% 4.9x 4.0x 3.3x 46.4x NM Bazaarv oice, Inc. BV 204 256 48.0% (45.7%) (56.3%) 6.1% 3.6% NM 1.0x 1.0x 0.9x NM NM HCIT ChannelAdv isor Corporation ECOM 230 286 76.4% 18.4% NA 18.5% 11.9% NM 2.3x 2.0x 1.8x NM NM Median $1,278 $1,475 72.6% 10.0% 68.4% 26.7% 22.2% 7.8% 4.9x 4.0x 3.3x 34.6x 51.1x Public Sector / Non-Profit

PLM & ENGINEERING SOFTWARE Large-Cap Dassault Systèmes SE DSY $18,627 $20,144 90.6% 19.5% 36.9% 23.8% 6.6% 27.2% 5.7x 5.3x 4.9x 16.8x 46.1x SaaS Autodesk, Inc. ADSK 12,327 13,090 88.6% (0.7%) 46.0% (0.3%) (20.4%) 5.9% 4.9x 6.2x 5.4x 29.8x NM Small-Cap Ansys, Inc. ANSS 7,081 7,865 90.9% 1.5% 12.5% 0.7% 6.9% 45.8% 7.5x 7.0x 6.5x 14.7x 31.1x SaaS Synopsys Inc. SNPS 6,862 7,340 91.8% 4.6% 36.6% 7.0% 6.0% 17.7% 3.0x 2.9x 2.7x 11.7x 33.2x Data & Cadence Design Systems Inc. CDNS 6,793 7,156 99.3% 28.2% 73.1% 7.7% 6.8% 24.0% 4.0x 3.7x 3.5x 12.5x 28.3x Analytics PTC Inc. PTC 4,219 3,798 77.6% (8.3%) 34.1% (10.1%) (3.8%) 19.3% 3.5x 3.5x 3.6x 12.7x NM Aspen Technology, Inc. AZPN 2,812 3,013 77.3% (5.2%) 13.9% 10.7% 8.3% 44.4% 6.0x 5.7x 5.4x 13.0x 22.8x IT Operations Mentor Graphics Corp. MENT 2,113 2,174 72.4% (16.5%) 16.8% (5.1%) 2.8% 18.9% 1.8x 1.7x 1.7x 8.2x 22.6x Nemetschek SE XTRA:NEM 1,860 1,861 89.4% 43.4% 219.6% 30.6% 13.6% 19.4% 5.7x 5.1x 4.5x 23.5x 47.7x Data Storage AVEVA Group plc LSE: AVV 1,298 1,450 67.0% 5.5% (38.3%) (4.7%) (1.5%) 21.3% 4.5x 4.4x 4.2x 15.4x 33.8x Median $5,506 $5,477 89.0% 3.0% 35.4% 3.9% 6.3% 20.4% 4.7x 4.7x 4.4x 13.8x 32.2x IT Security

PAGE | 20 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

SUPPLY CHAIN AND LOGISTICS SOFTWARE Software Bellwethers Manhattan Associates, Inc. MANH $4,023 $4,151 73.1% 11.9% 209.9% 13.1% 10.1% 30.4% 7.2x 6.6x 6.0x 22.2x 40.1x Fleetmatics Group PLC FLTX 1,426 1,575 64.8% (8.2%) 70.0% 23.0% 20.9% 24.0% 5.0x 4.1x 3.5x 15.5x 40.6x Communication The Descartes Systems Group Inc TSX: DSG 1,431 1,477 87.7% 28.3% 108.8% 8.3% 10.1% 32.0% 7.7x 7.0x 6.3x 23.8x 71.8x Kinaxis Inc. KXS 708 814 82.5% 56.2% NA 30.3% 19.5% 27.8% 7.8x 6.5x 5.3x 24.9x 64.2x Enterprise SPS Commerce, Inc. SPSC 594 723 54.8% (35.5%) (1.2%) 23.9% 21.4% 10.5% 3.7x 3.1x 2.6x 27.2x 155.9x SciQuest, Inc. SQI 244 387 83.8% (14.6%) (42.3%) 3.4% 4.7% 7.7% 2.3x 2.2x 2.0x 12.4x 207.6x American Software, Inc. AMSW.A 195 260 79.2% (11.3%) 9.0% 11.3% 10.2% 13.5% 1.7x 1.7x 1.6x 9.8x 27.6x HCM Park City Group Inc. PCYG 165 174 63.4% (35.4%) 145.7% 4.0% NA NM 12.3x NM NM NM NM Amber Road, Inc. AMBR 148 142 55.8% (40.2%) NA 3.5% 9.5% NM 2.2x 2.0x 1.8x NM NM Marketing Tecsys Inc. TSX: TCS 65 69 71.6% (29.4%) 67.8% 15.3% 10.2% 4.2% 1.4x 1.2x 1.1x 19.1x 76.6x Median $419 $555 72.4% (13.0%) 68.9% 12.2% 10.2% 18.7% 4.4x 3.1x 2.6x 20.7x 68.0x PLM & Engineering ENERGY SOFTWARE SCM & Logistics AVEVA Group plc LSE: AVV $1,298 $1,450 67.0% 5.5% (38.3%) (4.7%) (1.5%) 21.3% 4.5x 4.4x 4.2x 15.4x 33.8x Silv er Spring Networks, Inc. SSNI 626 751 91.2% 63.2% (14.2%) 155.9% 7.4% 20.1% 1.3x 2.1x 1.8x 55.7x 9.4x Energy OPOWER, Inc. OPWR 302 362 52.5% (33.5%) NA 15.8% 8.3% NM 2.0x 1.9x 1.7x NM NM PSI Aktiengesellschaft PSAN 199 240 91.2% 18.0% (24.5%) 3.3% 5.7% 7.5% 1.0x 0.9x 0.8x 11.2x 29.6x EnerNOC, Inc. ENOC 186 213 49.9% (36.4%) (55.8%) (15.3%) (5.0%) NM 0.5x 0.5x 0.5x NM NM Financial Median $302 $362 67.0% 5.5% (31.4%) 3.3% 5.7% 20.1% 1.3x 1.9x 1.7x 15.4x 29.6x HCIT FINANCIAL SOFTWARE Fiserv , Inc. FISV $26,887 $22,869 99.7% 28.9% 135.8% 3.7% 5.7% 30.5% 5.1x 4.8x 4.6x 15.0x 32.1x Public Sector / Non-Profit MSCI Inc. MSCI 8,088 7,286 98.9% 21.4% 122.1% 7.9% 6.2% 44.8% 7.5x 7.1x 6.6x 16.9x 32.6x Jack Henry & Associates Inc. JKHY 6,715 6,669 98.1% 21.5% 84.5% 6.4% 6.4% 35.0% 5.2x 4.9x 4.6x 14.9x 30.0x Large-Cap SS&C Technologies Holdings, Inc. SSNC 8,580 6,263 82.2% 2.2% 114.6% 30.3% 50.0% 32.9% 8.6x 5.7x 5.2x 19.0x 146.1x SaaS

Oracle Financial Serv ices Software Ltd. 532466 4,136 4,517 79.3% 1.7% 13.4% 4.7% 6.2% 41.9% 6.8x 5.9x 5.2x 16.1x 25.5x Small-Cap Black Knight Financial Serv ices, Inc. BKFS 4,646 2,144 79.9% NA NA 9.2% 7.1% 34.3% 5.0x 4.6x 4.3x 11.2x 107.2x SaaS Bottomline Technologies (de), Inc. EPAY 1,191 1,156 96.5% 11.4% 12.5% 3.9% 5.1% 12.8% 3.6x 3.3x 3.0x 14.7x NM Data & Env estnet, Inc. ENV 1,391 1,143 48.2% (51.0%) 57.0% 20.7% 38.0% 12.0% 3.3x 2.4x 2.1x 18.5x NM Analytics Q2 Holdings, Inc. QTWO 826 937 79.0% 13.1% NA 37.6% 34.1% NM 7.6x 5.7x 4.4x NM NM Median $4,646 $4,517 82.2% 12.2% 84.5% 7.9% 6.4% 33.6% 5.2x 4.9x 4.6x 15.6x 32.3x IT Operations

Data Storage

IT Security

PAGE | 21 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

HEALTHCARE IT Software Bellwethers Cerner Corporation CERN $18,099 $18,007 69.9% (27.5%) 12.4% 31.4% 12.4% 27.7% 4.2x 3.6x 3.3x 12.4x 33.4x athenahealth, Inc. ATHN 5,563 5,406 81.4% 16.8% 45.6% 22.9% 19.8% 6.6% 6.0x 5.0x 4.2x 31.1x NM Communication Veev a Systems Inc. VEEV 3,013 3,359 85.3% 0.2% NA 30.6% 25.1% 21.6% 7.4x 5.9x 4.8x 26.0x 61.7x Inov alon Holdings, Inc. INOV 2,363 2,810 62.7% (36.2%) NA 20.9% 17.6% 32.1% 5.4x 4.6x 3.9x 15.4x 42.5x Enterprise Allscripts Healthcare Solutions, Inc. MDRX 3,021 2,501 83.7% 12.7% (1.9%) 0.6% 4.1% 8.1% 2.2x 2.1x 2.0x 12.3x NM Medidata Solutions, Inc. MDSO 2,163 2,180 63.1% (20.3%) 37.1% 17.1% 17.3% 10.2% 5.5x 4.7x 3.9x 23.7x 165.6x Press Ganey Holdings, Inc. PGND 1,742 1,588 83.2% NA NA 13.2% 10.4% 8.9% 5.5x 5.0x 4.6x 15.0x NM HCM HMS Holdings Corp. HMSY 1,258 1,205 77.2% (8.4%) (47.8%) 7.0% 2.2% 19.0% 2.7x 2.6x 2.4x 11.4x 49.1x Quality Systems Inc. QSII 823 928 84.9% (4.1%) (17.0%) 3.3% 1.2% 11.6% 1.7x 1.5x 1.4x 11.1x 28.4x Marketing Impriv ata, Inc. IMPR 266 317 58.4% (8.9%) NA 22.8% 16.2% NM 2.2x 1.9x 1.7x NM NM Median $2,263 $2,340 79.3% (8.4%) 5.2% 19.0% 14.3% 11.6% 4.8x 4.1x 3.6x 15.0x 45.8x PLM & Engineering PUBLIC SECTOR / NON-PROFIT SOFTWARE SCM & Logistics Constellation Software Inc. TSX: CSU $8,879 $8,690 88.9% 19.1% 233.4% 10.1% 15.1% 23.2% 4.8x 4.2x 3.6x 19.5x 49.0x Tyler Technologies, Inc. TYL 4,674 4,655 69.9% 6.1% 113.8% 19.9% 30.5% 21.8% 7.9x 6.1x 5.4x 30.3x 71.8x Energy Blackbaud Inc. BLKB 3,210 2,816 91.8% 32.7% 113.6% 13.0% 15.0% 16.4% 5.0x 4.4x 4.0x 21.2x 109.8x NIC Inc. EGOV 1,101 1,199 86.3% 3.1% (5.7%) 7.5% 6.9% 25.5% 3.8x 3.5x 3.3x 14.2x 28.6x 2U, Inc. TWOU 855 1,039 56.9% (11.4%) NA 36.2% 33.0% NM 5.7x 4.3x 3.3x NM NM Financial Instructure, Inc. INST 400 491 75.9% NA NA 65.0% 47.4% NM 5.5x 3.7x 2.6x NM NM K12, Inc. LRN 248 385 56.1% (37.6%) (58.3%) (2.7%) (10.1%) 5.3% 0.3x 0.3x NM 2.8x NM HCIT Median $1,101 $1,199 75.9% 4.6% 113.6% 13.0% 15.1% 21.8% 5.0x 4.2x 3.5x 19.5x 60.4x Public Sector / LARGE-CAP SAAS (Market Cap > $2Bn) Non-Profit salesforce.com, inc. CRM $50,248 $49,533 89.1% 11.7% 68.4% 24.1% 21.8% 7.0% 7.5x 6.2x 5.2x 43.1x NM Large-Cap Workday, Inc. WDAY $13,522 $14,984 82.1% (7.9%) 25.4% 47.5% 33.2% NM 11.6x 8.7x 6.7x NM NM SaaS Serv iceNow, Inc. NOW $9,510 $9,837 67.0% (19.1%) 73.7% 47.3% 35.3% NM 9.5x 7.0x 5.4x NM NM Small-Cap athenahealth, Inc. ATHN $5,563 $5,406 81.4% 16.8% 45.6% 22.9% 19.8% 6.6% 6.0x 5.0x 4.2x 31.1x NM SaaS NetSuite Inc. N $5,397 $5,478 66.8% (24.7%) (13.2%) 33.2% 29.8% NM 7.3x 5.6x 4.4x NM NM Data & The Ultimate Software Group, Inc. ULTI $5,470 $5,582 89.5% 15.9% 88.5% 22.2% 24.9% 10.3% 8.9x 7.1x 5.9x 36.8x 245.9x Analytics Atlassian Corporation Plc TEAM $4,660 $5,342 79.9% NA NA NA NA 4.1% 12.8x 9.2x 7.0x NM NM Guidewire Software, Inc. GWRE $3,335 $3,926 84.1% 3.8% 44.5% 7.1% 8.8% 5.4% 8.4x 7.7x 6.7x 46.2x NM IT Operations Veev a Systems Inc. VEEV $3,013 $3,359 85.3% 0.2% NA 30.6% 25.1% 21.6% 7.4x 5.9x 4.8x 26.0x 61.7x Proofpoint, Inc. PFPT $2,153 $2,214 71.3% (6.8%) 221.1% 35.7% 31.1% NM 8.1x 6.2x 4.8x NM NM Data Storage Medidata Solutions, Inc. MDSO $2,163 $2,180 63.1% (20.3%) 37.1% 17.1% 17.3% 10.2% 5.5x 4.7x 3.9x 23.7x 165.6x Median $5,397 $5,406 81.4% (3.3%) 45.6% 27.4% 25.0% 7.0% 8.1x 6.2x 5.2x 34.0x 165.6x IT Security

PAGE | 22 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

SMALL-CAP SAAS (Market Cap < $2Bn) Software Bellwethers Paycom Software, Inc. PAYC $2,079 $2,103 76.8% 12.4% NA 48.8% 38.4% 18.7% 9.3x 6.7x 5.2x 43.3x 100.4x Zendesk, Inc. ZEN $1,649 $1,894 74.2% (7.3%) NA 64.3% 42.4% NM 7.9x 5.5x 4.2x NM NM Communication Cornerstone OnDemand, Inc. CSOD $1,784 $1,796 80.5% 17.8% (2.1%) 28.9% 26.2% NM 5.3x 4.1x 3.4x NM NM RealPage, Inc. RP $1,649 $1,640 86.9% 4.7% 2.3% 15.8% 22.3% 11.3% 3.5x 2.9x 2.5x 18.3x NM Enterprise HubSpot, Inc. HUBS $1,410 $1,514 72.6% 10.0% NA 57.0% 37.8% NM 7.8x 5.6x 4.3x NM NM Fleetmatics Group PLC FLTX $1,426 $1,575 64.8% (8.2%) 70.0% 23.0% 20.9% 24.0% 5.0x 4.1x 3.5x 15.5x 40.6x Xero Limited. XRO $1,294 $1,450 63.0% (39.3%) 15.9% 74.8% 70.5% NM 12.0x 6.4x 4.5x NM NM HCM Demandware, Inc. DWRE $1,278 $1,475 51.5% (33.3%) 54.4% 47.8% 27.0% NM 5.4x 4.2x 3.3x NM NM Ebix Inc. EBIX $1,521 $1,372 97.5% 36.6% 154.5% 23.9% 6.0% 36.8% 5.7x 5.4x 4.4x 15.7x 17.3x Marketing LogMeIn, Inc. LOGM $1,118 $1,267 66.9% (9.9%) 172.8% 22.4% 19.7% 12.8% 4.1x 3.4x 3.0x 16.4x 87.0x CyberArk Software, Ltd. CYBR $1,182 $1,420 55.8% (23.1%) NA 56.1% 28.8% 21.8% 7.3x 5.7x 4.7x 30.5x 55.1x PLM & Engineering RingCentral, Inc. RNG $1,016 $1,134 61.4% 2.6% NA 34.7% 19.0% NM 3.4x 2.9x 2.4x NM NM Alarm.Com Holdings, Inc. ALRM $960 $1,082 97.9% NA NA 24.8% 14.0% 14.4% 4.6x 4.0x 3.5x 34.5x 91.9x SCM & Logistics Benefitfocus, Inc. BNFT $951 $974 70.2% (7.0%) NA 34.7% 26.5% NM 5.1x 4.1x 3.3x NM NM Cv ent, Inc. CVT $754 $900 57.4% (23.0%) NA 32.0% 22.5% 0.5% 4.0x 3.3x 2.7x 32.6x NM Energy Qualys, Inc. QLYS $693 $871 45.6% (46.2%) 108.1% 23.0% 20.1% 23.8% 4.2x 3.5x 2.9x 12.8x 54.9x Q2 Holdings, Inc. QTWO $826 $937 79.0% 13.1% NA 37.6% 34.1% NM 7.6x 5.7x 4.4x NM NM Marketo, Inc. MKTO $769 $869 57.6% (22.5%) NA 40.0% 30.0% NM 3.7x 2.8x 2.2x NM NM Financial Callidus Software Inc. CALD $841 $939 77.1% 34.2% 271.5% 26.7% 22.6% 0.2% 4.9x 4.0x 3.3x 46.4x NM SPS Commerce, Inc. SPSC $594 $723 54.8% (35.5%) (1.2%) 23.9% 21.4% 10.5% 3.7x 3.1x 2.6x 27.2x 155.9x HCIT inContact, Inc. SAAS $530 $552 76.9% (19.1%) 14.6% 29.2% 17.4% NM 2.4x 2.0x 1.7x NM NM MINDBODY, Inc. MB $451 $529 72.5% NA NA 44.8% 33.0% NM 4.5x 3.3x 2.6x NM NM Public Sector / Non-Profit IntraLinks Holdings, Inc. IL $479 $456 61.6% (23.5%) 27.1% 7.9% 8.6% 3.0% 1.7x 1.6x 1.5x 12.1x NM Workiv a Inc. WK $424 $477 62.0% (17.2%) NA 28.9% 23.0% NM 2.9x 2.4x 2.0x NM NM Large-Cap SaaS Textura Corporation TXTR $409 $488 59.7% (30.7%) NA 37.7% 24.4% NM 4.7x 3.8x 3.1x NM NM Instructure, Inc. INST $400 $491 75.9% NA NA 65.0% 47.4% NM 5.5x 3.7x 2.6x NM NM Small-Cap Fiv e9, Inc. FIVN $444 $456 90.3% 62.5% NA 25.0% 16.5% NM 3.4x 3.0x 2.5x NM NM SaaS AppFolio, Inc. APPF $389 $411 61.4% NA NA 57.3% 36.7% NM 5.2x 3.8x 2.9x NM NM Data & SciQuest, Inc. SQI $244 $387 83.8% (14.6%) (42.3%) 3.4% 4.7% 7.7% 2.3x 2.2x 2.0x 12.4x 207.6x Analytics OPOWER, Inc. OPWR $302 $362 52.5% (33.5%) NA 15.8% 8.3% NM 2.0x 1.9x 1.7x NM NM Castlight Health, Inc. CSLT $201 $322 32.1% (55.6%) NA 65.1% 33.5% NM 2.7x 2.0x 1.5x NM NM IT Operations Model N, Inc. MODN $221 $291 84.8% (11.2%) (46.4%) 16.8% 14.3% NM 2.3x 2.0x 1.6x NM NM Bazaarv oice, Inc. BV $204 $256 48.0% (45.7%) (56.3%) 6.1% 3.6% NM 1.0x 1.0x 0.9x NM NM Data Storage Xactly Corporation XTLY $170 $202 64.2% NA NA 24.3% 24.8% NM 2.2x 1.8x 1.4x NM NM

Amber Road, Inc. AMBR $148 $142 55.8% (40.2%) NA 3.5% 9.5% NM 2.2x 2.0x 1.8x NM NM IT Security Median $754 $871 64.8% (15.9%) 15.9% 28.9% 22.6% 12.8% 4.2x 3.4x 2.7x 18.3x 87.0x

PAGE | 23 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

DATA & ANALYTICS Software Bellwethers Splunk, Inc. SPLK $5,468 $6,477 63.7% (15.4%) 22.3% 48.3% 32.0% NM 8.2x 6.2x 4.8x NM NM Teradata Corporation TDC 3,324 3,383 56.7% (40.4%) (54.0%) (7.4%) (9.3%) 14.9% 1.3x 1.4x 1.5x 5.7x NM Communication Tableau Software, Inc. DATA 2,615 3,411 34.9% (49.6%) NA 58.4% 28.5% NM 4.0x 3.1x 2.4x NM NM Inov alon Holdings, Inc. INOV 2,363 2,810 62.7% (36.2%) NA 20.9% 17.6% 32.1% 5.4x 4.6x 3.9x 15.4x 42.5x Enterprise Qlik Technologies, Inc. QLIK 2,390 2,710 67.4% (7.4%) 14.9% 10.0% 14.2% 0.6% 3.9x 3.4x 3.0x 41.0x NM Verint Systems Inc. VRNT 2,416 2,078 50.2% (46.4%) (7.0%) 0.2% (0.5%) 12.3% 2.1x 2.1x 2.0x 8.5x 117.8x MicroStrategy Inc. MSTR 1,564 2,050 79.4% 6.2% 74.4% (8.6%) 5.3% 28.0% 3.0x 2.8x 2.6x 10.0x 19.3x HCM Pegasystems Inc. PEGA 1,717 1,936 84.0% 17.5% 81.4% 15.7% 14.3% 12.9% 2.5x 2.2x 2.0x 15.4x 53.3x Hortonworks, Inc. HDP 522 617 39.1% (53.2%) NA 164.8% 54.4% NM 4.3x 2.8x 1.9x NM NM Marketing PROS Holdings, Inc. PRO 310 357 43.3% (52.5%) (56.5%) (9.5%) (10.0%) NM 1.8x 2.0x 1.9x NM NM Median $2,377 $2,394 59.7% (38.3%) 14.9% 12.9% 14.2% 13.9% 3.4x 2.8x 2.2x 12.7x 47.9x PLM & Engineering IT OPERATIONS MANAGEMENT SCM & Logistics VMware, Inc. VMW $16,153 $22,158 56.0% (36.3%) (33.0%) 10.1% 3.4% 26.7% 2.4x 2.3x 2.2x 6.8x 22.2x Red Hat, Inc. RHT 13,122 13,607 88.2% (1.2%) 54.2% 14.7% 16.7% 17.7% 6.4x 5.7x 5.0x 25.2x 68.3x Energy CA, Inc. CA 12,582 12,832 94.5% (4.2%) 23.9% (6.6%) (6.1%) 30.5% 3.1x 3.1x 3.1x 8.3x 16.9x Citrix Systems, Inc. CTXS 12,553 12,100 93.4% 25.0% 10.0% 4.2% 1.4% 25.9% 3.8x 3.8x 3.7x 12.1x 37.9x Serv iceNow, Inc. NOW 9,510 9,837 67.0% (19.1%) 73.7% 47.3% 35.3% NM 9.5x 7.0x 5.4x NM NM Financial F5 Networks, Inc. FFIV 5,630 6,422 78.3% (7.4%) 20.4% 8.8% 4.6% 30.5% 2.9x 2.8x 2.6x 7.3x 17.6x Micro Focus International plc LSE:MCRO 6,525 5,169 96.8% 31.2% 85.6% 183.7% 47.6% 37.4% 5.3x 5.1x 5.0x 13.3x 37.3x HCIT Arista Networks, Inc. ANET 3,663 4,308 71.3% (9.4%) NA 43.4% 27.4% 19.5% 4.4x 3.4x 2.9x 15.2x 35.6x Software AG XTRA:SOW 2,794 2,777 98.0% 46.7% 0.9% 1.8% 1.3% 29.8% 2.8x 2.8x 2.7x 9.7x 18.3x Public Sector / Non-Profit NetScout Systems, Inc. NTCT 2,156 2,264 50.5% (46.9%) (4.4%) 76.6% 118.5% 12.0% 2.7x 1.8x 1.6x 8.4x NM Pegasystems Inc. PEGA 1,717 1,936 84.0% 17.5% 81.4% 15.7% 14.3% 12.9% 2.5x 2.2x 2.0x 15.4x 53.3x Large-Cap New Relic, Inc. NEWR 1,101 1,292 65.0% (20.0%) NA 67.5% 62.6% NM 6.8x 4.9x 3.7x NM NM SaaS Progress Software Corporation PRGS 1,104 1,215 78.9% (10.6%) 8.0% 13.6% 0.5% 22.2% 2.9x 2.7x 2.6x 8.3x NM Small-Cap Infoblox Inc. BLOX 662 989 61.0% (27.6%) (19.4%) 33.0% 22.9% 0.6% 1.9x 1.7x 1.4x 12.9x NM SaaS Radware Ltd. RDWR 405 536 47.5% (42.8%) (36.5%) (2.4%) (0.8%) 12.7% 1.9x 1.9x 1.7x 9.5x 28.9x Data & Median $3,663 $4,308 78.3% (9.4%) 10.0% 14.7% 14.3% 22.2% 2.9x 2.8x 2.7x 9.7x 32.2x Analytics

IT Operations

Data Storage

IT Security

PAGE | 24 TECHNOLOGY, MEDIA, & TELECOM QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2016

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D)

DATA STORAGE Software Bellwethers EMC Corporation EMC $50,967 $51,889 92.6% 4.6% 13.1% 1.1% 0.8% 19.7% 2.1x 2.0x 2.0x 7.7x 26.1x NetApp, Inc. NTAP 4,445 7,978 73.6% (22.6%) (19.9%) (8.4%) (9.0%) 10.7% 0.8x 0.8x 0.8x 4.3x 21.5x Communication Iron Mountain Incorporated IRM 11,909 7,172 88.1% (6.6%) (5.9%) (3.5%) 3.8% 29.7% 6.5x 3.9x 3.8x 13.0x 58.2x Brocade Communications Systems, Inc. BRCD 3,645 4,239 82.1% (10.0%) 86.9% 1.7% 1.4% 25.0% 1.6x 1.6x 1.6x 5.5x 12.2x Enterprise CommVault Systems, Inc. CVLT 1,549 1,950 90.3% (0.7%) (46.6%) (4.5%) (2.5%) 1.4% 2.6x 2.5x 2.3x 23.0x NM Box, Inc. BOX 1,343 1,484 59.5% (34.3%) NA 39.9% 29.9% NM 4.4x 3.4x 2.7x NM NM Barracuda Networks, Inc. CUDA 668 818 32.9% (60.1%) NA 16.2% 14.3% 1.1% 2.2x 2.0x 1.8x 9.2x NM HCM Nimble Storage, Inc. NMBL 399 611 24.4% (65.0%) NA 41.5% 20.5% NM 1.2x 1.0x 0.8x NM NM Carbonite, Inc. CARB 150 215 62.1% (44.0%) (26.2%) 11.4% 30.5% NM 1.1x 0.8x 0.8x NM NM Marketing Median $1,549 $1,950 73.6% (22.6%) (12.9%) 1.7% 3.8% 15.2% 2.1x 2.0x 1.8x 8.5x 23.8x PLM & IT SECURITY Engineering Cisco Systems, Inc. CSCO $107,495 $143,264 95.2% 4.5% 36.7% 3.1% (0.3%) 28.8% 2.2x 2.2x 2.1x 7.6x 13.9x SCM & Logistics Check Point Software Technologies Ltd. CHKP 14,535 15,819 98.8% 6.8% 89.2% 9.0% 8.0% 52.3% 8.9x 8.3x 7.7x 15.6x 23.1x Palo Alto Networks, Inc. PANW 13,950 14,417 81.3% 15.3% 194.8% 55.6% 46.6% NM 12.1x 8.9x 6.9x NM NM Energy Symantec Corporation SYMC 11,459 11,988 70.3% (21.2%) (24.9%) 32.0% (29.2%) 31.5% 1.9x 3.2x 3.1x 6.5x 19.4x VeriSign, Inc. VRSN 9,647 9,692 94.3% 33.0% 87.2% 4.9% 4.6% 63.0% 9.1x 8.5x 8.3x 13.5x 25.8x Gemalto NV GTO 6,908 6,519 76.1% (9.3%) (15.5%) 26.6% 5.3% 14.9% 1.9x 1.8x 1.7x 11.2x 44.8x Financial Trend Micro Inc. TSE: 4704 3,708 5,005 75.6% 11.0% 28.5% 7.9% 11.4% 31.6% 3.2x 2.9x 2.7x 9.8x 28.1x Fortinet Inc. FTNT 4,365 5,256 60.9% (10.1%) 33.3% 31.0% 24.2% 5.5% 4.3x 3.5x 2.9x 26.8x NM HCIT FireEye, Inc. FEYE 2,522 2,985 32.5% (52.8%) NA 46.4% 33.0% NM 4.0x 3.0x 2.4x NM NM Cheetah Mobile Inc. CMCM 2,085 2,325 44.6% (6.5%) NA 108.9% 59.4% 9.1% 3.7x 2.3x 1.6x 23.7x 85.5x Public Sector / Non-Profit Proofpoint, Inc. PFPT 2,153 2,214 71.3% (6.8%) 221.1% 35.7% 31.1% NM 8.1x 6.2x 4.8x NM NM Imperv a Inc. IMPV 1,364 1,629 64.8% 22.0% 32.8% 42.9% 30.3% NM 5.8x 4.5x 3.6x NM NM Large-Cap CyberArk Software, Ltd. CYBR 1,182 1,420 55.8% (23.1%) NA 56.1% 28.8% 21.8% 7.3x 5.7x 4.7x 30.5x 55.1x SaaS

AVG Technologies N.V. AVG 1,202 1,086 71.2% (4.0%) 48.4% 14.5% 4.0% 29.0% 2.8x 2.7x 2.5x 7.8x 22.2x Small-Cap Qualys, Inc. QLYS 693 871 45.6% (46.2%) 108.1% 23.0% 20.1% 23.8% 4.2x 3.5x 2.9x 12.8x 54.9x SaaS Rapid7, Inc. RPD 457 544 47.6% NA NA 43.8% 35.3% NM 4.1x 3.1x 2.4x NM NM Data & Mimecast Limited MIME 429 526 87.7% NA NA NA NA 10.1% 3.2x 2.7x 2.2x NM 221.7x Analytics Varonis Systems, Inc. VRNS 371 477 61.0% (26.1%) NA 25.5% 21.7% NM 2.9x 2.4x 2.0x NM NM Median $2,338 $2,655 70.7% (6.7%) 42.6% 31.0% 21.7% 26.3% 4.1x 3.1x 2.8x 12.8x 28.1x IT Operations

Data Storage

IT Security

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