Formatting Guide: Colors & Fonts

SAAS & CLOUD M&A AND VALUATION UPDATE Q1 2016

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

Section Page

Introduction . Research Coverage: SaaS & Cloud 3 . Key Takeaways 4-5 M&A Activity & Multiples . M&A Dollar Volume 7 . M&A Transaction Volume 8-10 . LTM Revenue Multiples 11-12 . Revenue Multiples by Segment 13 . Highest Revenue Multiple Transaction for LTM 14 . Notable M&A Transactions 15 . Most Active Buyers 16-17 Public Company Valuation & Operating Metrics . SaaS & Cloud 125 Public Company Universe 19-20 . Recent IPOs 21 . Stock Price Performance 22 . LTM Revenue, EBITDA & P/E Multiples 23-25 . Revenue, EBITDA & EPS Growth 26-28 . Margin Analysis 29-30 . Best / Worst Performers 31-32 Notable Transaction Profiles 34-43

Public Company Trading & Operating Metrics 45-50

Technology & Telecom Team 52

1 INTRODUCTION RESEARCH COVERAGE: SAAS & CLOUD

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

ENTERPRISE SAAS & MOBILE & WIRELESS CONSUMER INTERNET CLOUD

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

3 KEY TAKEAWAYS – M&A ACTIVITY & MULTIPLES

 LTM M&A dollar volume continued to increase in Q1’16, representing a very healthy dollar volume of $59.3B, setting a new five-year high » Q1’16 saw $9.6B in M&A dollar volume, representing a 40% growth over the prior year quarter  LTM transaction volume of 1,053 deals reached a new five-year high » Q1’16 saw 248 deals as strong deal momentum continues, though slightly below the 250-280 deals per quarter in Q2-Q4’15  LTM transaction volume for private targets reached 1,028 deals, representing an 11% increase over LTM 3/31/15  LTM public transaction volume came in at 25 deals, representing a 56% increase  Median LTM revenue multiple paid for private companies dropped to 3.3x, but remains relatively healthy  Notable M&A transactions in Q1’16 . IBM / Truven Health Analytics ($2.6B) . GTCR / Lytx ($500M) . Cisco / Jasper Technologies ($1.4B) . Wipro / Health Plan Holdings ($460M) . Resmed / Brightree ($800M) . Microsoft / Xamarin ($400M) . Insight Venture Partners / Diligent ($624M) . FireEye / iSight Security ($275M) . Micro Focus / Serena Software ($540M) . Cisco / CliQr Technologies ($260M)  The most active buyers included IBM, Alphabet, J2 Global, Microsoft, Vista Equity Partners, Cisco, Trimble Navigation, Intuit and Oracle (sorted by most active)  Capstone expects robust M&A activity and attractive exit valuations to continue in the SaaS & Cloud segment for the remainder of 2016 » In the longer term, there is increasing risk that a market correction could negatively impact activity levels and valuation multiples

4 KEY TAKEAWAYS – PUBLIC COMPANY METRICS

 1 recent IPO company was added and 6 were removed from the SaaS & Cloud 125 » Quick Heal’s post IPO performance was subpar  Q1’16 stock performance posted losses of (7.6)% and (2.7)% for SaaS & Cloud 125 and NASDAQ, respectively » All sectors aside from Software Conglomerates and Content Creation & Management posted losses in their median share price performance  Median LTM revenue multiple continued to decrease in Q1’16, retreating to 4.2x which remains relatively healthy  Median LTM EBITDA multiple continued to decrease in Q1’16, currently standing at 16.7x  Poor stock performance has led to a decrease in P/E multiples which now stands at 30.6x » Public markets demonstrate a strong preference for companies growing quickly and investing to solidify market leadership status and are willing to bet that future profits will come with scale  Median revenue growth has rebounded in Q1’16 and currently stands at 20.9%  Median EBITDA growth rates continue to recover back to healthy levels and currently stands at 20.5%  Median EPS growth jumped to 21.7% in Q1’16, up from 17.2% in 2015  Median Gross Margins have remained constant for the past five years and currently stand at 67.8% » Content Creation & Management and Cloud & IT Infrastructure segments commanded the highest gross margins as most of their expenses are operational  The Median EBITDA margin continued to increase in Q1’16 as companies increased scale or focused more sharply on profitability

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

 LTM M&A dollar volume continued to increase in Q1’16 reaching $59.3B LTM, setting a new five-year high  Q1’16 posted $9.6B in M&A dollar volume, representing a 40% growth over the prior year quarter » However, Q1’16 represents a steep drop from the $15-18B quarterly dollar volume seen in Q2-Q4’15

$70,000

$60,000

$50,000 $25,270 $28,619 $40,000 $20,136 $24,028 $20,849 $30,000 $20,534

Total Transaction Value Transaction Total $20,000 $33,994 $27,907 $26,308 $24,398 $10,000 $21,183 $22,968

$0 2011 2012 2013 2014 2015 LTM

Total Private $ Total Public $

7 LTM M&A TRANSACTION VOLUME BY SEGMENT

 LTM transaction volume of 1,053 deals reached a new five-year high » Q1’16 saw 248 deals as strong deal momentum continues, though slightly below the 250-280 deals per quarter in Q2-Q4’15  Vertical Market transaction volume represented 40% of the aggregate transaction volume

1200

1000

422 421 800 295

600 232 112 108 257 224 98 40 44 60 24 23 61 Transactions 80 52 14 57 400 75 52 50 23 40 42 50 19 27 36 44 26 40 37 41 21 40 25 58 59 40 37 54 20 31 36 36 200 31 44 17 50 42 25 83 41 32 136 133 98 101 83 117 32 77 84 0 39 52 2011 2012 2013 2014 2015 LTM Analytics / Business Intelligence Cloud & IT Infrastructure Cloud Computing / Storage Communication & Collaboration Content Creation & Management CRM & Customer Service ERP, Supply Chain & Commerce Finance & Administration Human Resources Marketing & Advertising Vertical Market

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

 LTM transaction volume for private targets reached 1,028 deals, representing an 11% increase over LTM 3/31/15

 Median transaction size for private targets increased slightly to $43M

100% 7 8 3 8 11 2 14 2 1 15 6 10 18 90% 10 7 12 16 28 18 18 80% 23 28 22 36 70% 29 31 14 16 30 60% 30 20 26 23 20 50% 39 28 24 53 40% 33 49 30% 40 37

20% 80 78 46 10% 42 44 42

0% 2011 2012 2013 2014 2015 LTM Total Deals 661 682 642 866 1018 1028 Deals w/ Value 243 213 164 183 201 195 Median ($M) $20 $18 $25 $25 $40 $43 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

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

 LTM public transaction volume came in at 25 deals, representing a 56% increase

 LTM public transactions saw an evenly balanced range of transaction values, half of the deals transacted below $250M and half over $250M

100%

90% 7 5 6 7 7 80% 5 3 70% 4 5 1 4 60% 8 4 2 4 1 50% 4

40% 2 3 2 5 5 1 4 1 1 30% 1 2 3 2 2 2 20% 3 4 1 5 5 10% 6 3 2 1 0% 1 1 1 2011 2012 2013 2014 2015 LTM Total Deals 33 26 23 12 27 25 Median ($M) $305 $329 $265 $706 $274 $248 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

10 MEDIAN LTM REVENUE MULTIPLES – PRIVATE TARGETS

 Median LTM revenue multiple paid for private companies dropped to 3.3x but remains relatively healthy » Median LTM revenue multiple paid for private companies in Q1’16 also came in at 3.3x » The drop in multiples mirrors the recent decline in public SaaS multiples

4.5x

4.0x 3.9x 3.8x 3.6x 3.5x 3.3x 3.1x 3.0x 2.8x

2.5x

2.0x

1.5x

Median Revenue Revenue Median Multiple 1.0x

0.5x

0.0x 2011 2012 2013 2014 2015 LTM 25th % 1.7x 1.4x 2.4x 2.2x 1.9x 1.9x 75th % 6.2x 4.3x 6.0x 6.0x 6.0x 6.3x

11 MEDIAN LTM REVENUE MULTIPLES – PUBLIC TARGETS

 Median LTM revenue multiple paid for public companies remained constant at 2.6x

 Median LTM Revenue Multiple for $100M+ public deals jumped to 4.3x, though with a relatively small sample set a few deals can cause large movements

4.5x 4.3x

4.0x

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

2.0x

1.5x

1.0x Median Revenue Revenue Median Multiple 0.5x

0.0x 2011 2012 2013 2014 2015 LTM 25th % 1.5x 1.0x 1.3x 2.2x 0.8x 0.8x 75th % 4.3x 3.4x 4.6x 5.8x 4.5x 5.0x All Deals $100M+ Deals

12 MEDIAN LTM REVENUE MULTIPLES BY SEGMENT – LAST 5 YEARS

 Median LTM revenue multiples for SaaS segments ranged from 1.8x to 4.9x » Cloud & IT Infrastructure achieved a median multiple of 4.9x as these companies are often acquired earlier in their revenue curve at strong multiples » More commoditized segments like Cloud Computing/Storage and Communication & Collaboration typically garner lower multiples

6.0x 4.9x 5.0x 4.4x 4.4x

4.0x 3.2x 3.1x 3.0x 3.0x 2.7x 2.7x 2.5x 2.3x 1.8x 2.0x

1.0x Median Revenue Multiple Median Revenue 0.0x

13 HIGHEST REVENUE MULTIPLE TRANSACTIONS FOR LTM

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

Cloud & IT 11/9/15 Provides enterprise cloud application control (CAC) SaaS. $280M 56.0x 7.7x NA Infrastructure

Provides enterprise cloud brokerage platform-as-a-service (PaaS) for 11/3/15 Cloud Computing $95M 47.5x 2.4x NA businesses.

Cloud & IT Provides cloud data encryption SaaS app support software for enterprises 7/30/15 $105M 15.0x 5.3x NA Infrastructure worldwide.

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

Vertical Market – Provides an online over-the-counter (OTC) FX money-market and derivatives 7/26/15 $796M 14.5x NA NA Financial Services trading exchange, as well as transaction processing and EDI services, for investors, financial institutions and businesses globally.

Cloud & IT Provides public and private cloud management and IT and security 5/26/15 $1.2B 12.0x 9.3x NA Infrastructure compliance monitoring PaaS and IaaS.

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

Provides Visual Studio enterprise mobile application development software- Cloud & IT 2/24/16 as-a-service (SaaS), add-on tools and extensions for software developers $400M 10.7x 4.9x NA Infrastructure and businesses. Provides data analytics and integration SaaS focusing on retailers, 8/3/15 Analytics telecommunications service providers, financial institutions, manufacturers $500M 10.0x 14.3x NA and casinos globally.

Vertical Market – Provides online, video-based educational courses for businesses and 4/9/15 $1.5B 10.0x 5.2x NA Education consumers through www.lynda.com.

Excludes deals with Target company revenue less than $2M

14 NOTABLE M&A TRANSACTIONS FOR Q1’16

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

Provides data analytics and corporate performance management SaaS and Vertical Market – 2/18/16 services for healthcare providers, employers and health plans, government $2.6B 4.3x NA NA Healthcare entities and life sciences businesses.

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

Vertical Market – Provides home medical equipment billing and claims processing software as 2/22/16 $800M 7.1x NA NA Healthcare a service (SaaS) for the medical sector.

Provides secure confidential documents and information electronic Communication & 2/14/16 production, file sharing and collaboration SaaS that enables corporate $624M 6.6x NA 20.4% Collaboration governance for corporate boards and senior executive leadership teams.

Cloud & IT Provides enterprise application lifecycle management, business process 3/22/16 $540M 3.3x 1.2x NA Infrastructure management, automation and Web content management software.

Vertical Market – Provides in-vehicle driver behavior video recording systems, as well as 2/18/16 Auto & related driver behavior coaching, fleet tracking and fuel management SaaS, $500M 3.8x 7.2x NA Transportation for commercial and public sector transportation fleet operators.

Vertical Market – Provides insurance carriers with online healthcare exchange data 2/11/16 $460M 2.1x NA NA Financial Services management SaaS.

Cloud & IT Provides cybersecurity threat intelligence, detection and management SaaS 1/20/16 $275M 5.0x 7.0x NA Infrastructure for global enterprises and infrastructure providers.

Provides hybrid cloud application management software to enable Cloud & IT 3/1/16 migration, governance and management of applications from on-premises, $260M NA 6.8x NA Infrastructure cloud or hybrid cloud (public and private) environments for businesses.

15 MOST ACTIVE SAAS/CLOUD BUYERS – LAST 2 YEARS

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 3/31/16 Bluewolf Group $240M 8/17/15 Appcore (cloud automation) NA 3/18/16 Optevia NA 7/23/15 Compose NA 2/29/16 Resilient Systems $145M 6/3/15 Blue Blox NA 2/18/16 Truven Health Analytics $2.6B 4/13/15 Explorys NA 1/21/16 Ustream $130M 4/13/15 Phytel NA 19 33 12/8/15 Clearleap $200M 3/4/15 AlchemyAPI NA 11/3/15 Gravitant $95M 8/11/14 Lighthouse Security Group NA 10/5/15 Cleversafe $1.3B 7/31/14 CrossIdeas NA 9/24/15 Advanced Application $13M 4/10/14 Silverpop Systems NA 9/10/15 StrongLoop NA

11/19/15 Bebop Technologies $380M 6/25/14 Appurify NA 9/30/15 Jibe Mobile NA 6/20/14 Dropcam $555M 7/21/15 Pixate NA 6/19/14 mDialog NA 14 56 5/28/15 Pulse.io NA 5/7/14 Appetas NA 2/24/15 Red Hot Labs NA 5/7/14 Stackdriver NA 12/18/14 Vidmaker NA 5/6/14 Adometry $150M 8/26/14 ZYNC NA 5/5/14 Rangespan NA

3/21/16 Callstream NA 1/5/15 Newrise NA 1/14/16 MX Toolbox NA 1/5/15 Stay Secure NA 10/5/15 Salesify NA 1/5/15 TestudoData NA 14 25 2/19/15 EmailDirect.com (assets) NA 10/1/14 Excel Micro NA 2/17/15 Nuvotera (assets) NA 8/6/14 MXSweep (assets) NA 2/11/15 Firstway Digital NA 7/30/14 Contactology NA 1/5/15 Arion IT Solutions NA 4/3/14 Critical Software NA

2/24/16 Xamarin $400M 3/26/15 LiveLoop NA 1/13/16 Event Zero NA 1/20/15 Equivio NA 9/29/15 Sensei Project Solutions NA 12/11/14 Bit Stadium NA 13 33 9/28/15 Adxstudio NA 11/13/14 Aorato $200M 9/8/15 Adallom $250M 7/11/14 InMage Systems NA 8/3/15 Incent Games NA 5/1/14 GreenButton NA 7/16/15 FieldOne Systems NA

16 MOST ACTIVE SAAS/CLOUD BUYERS – LAST 2 YEARS

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 1/14/16 Fiverun NA 11/25/14 Advanced Computer SW $1.1B 1/14/16 Telarix NA 10/14/14 NAVEX Global $550M 11/25/15 MarketLive NA 9/29/14 TIBCO Software $4.2B 14 17 11/25/15 Shopatron NA 7/22/14 AGDATA NA 9/14/15 Solera Holdings $6.3B 7/8/14 Social Solutions $125M 9/2/15 Trintech NA 6/9/14 Autotask NA 6/29/15 Mediaocean $720M 5/13/14 DealerSocket NA

3/8/16 Synata NA 12/10/14 Neohapsis NA 3/1/16 CliQr Technologies $260M 6/27/14 Assemblage NA 2/3/16 Jasper Technologies $1.4B 5/21/14 ThreatGRID $55M 13 21 10/28/15 1 Mainstream NA 6/3/15 Piston Cloud Computing NA 7/7/15 MaintenanceNet $139M 5/7/15 Tropo NA 6/30/15 OpenDNS $635M 9/17/14 Metacloud $149M 6/3/15 Piston Cloud Computing NA

2/8/16 Sefaira NA 12/23/14 IRON Solutions NA 10/14/15 PocketMobile Communications NA 12/1/14 Nexala NA 10 21 5/26/15 Cadec Global (assets) NA 11/11/14 Amtech Group NA 4/22/15 HarvestMark NA 9/8/14 Gehry Technologies NA 3/10/15 Fifth Element NA 8/19/14 Manhattan Software NA 3/24/15 Playbook HR NA 8/7/14 PaySuite NA 2/5/15 Porticor NA 7/30/14 KDK Softwares India NA 8 11 12/10/14 Acrede NA 5/14/14 Invitco NA 8/13/14 Itrios NA 5/8/14 Lettuce $30M 2/22/16 Ravello Systems 12/22/14 Datalogix $1.1B 1/5/16 AddThis 7/31/14 TOA Technologies $550M 8 10 NA 12/18/15 StackEngine 6/23/14 MICROS Systems $5.3B NA 8/20/15 Maxymiser 6/20/14 LiveLOOK NA

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

Analytics / Business Intelligence

Cloud & IT Infrastructure

Cloud Computing / Storage

Communication & Collaboration

Content Creation & Management

CRM & Customer Service

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

ERP, Supply Chain & Commerce

Finance & Administration

Human Resources

Software Conglomerates

Marketing & Advertising

Vertical Markets

20 RECENT IPOS – QUICK HEAL

IPO Details Business Description Offering Date: 2/13/16 Market Cap: $330.0M Provides IT security solutions in India. Its Quick Heal product Offering Price: $4.71 Offering Size: $66.2M family is installed in corporate, small businesses and consumer homes, protecting their computers from viruses and malicious Original Range: $4.56-$4.71 % of Company: 20.1% threats.

IPO Performance HQ: Maharashtra, India Ticker: BSE: 539678 Open: $4.45 3/31 $/share: $3.28 % Change to Offer: (5.4)% % Change to Offer: (30.3)% Stock Performance thru End of Q1’16 Close: $3.72 % Change to Open: (26.3)% $5.00 % Change to Offer: (21.1)% % Change to Open: (16.6)% $4.50

Financial & Valuation Metrics $4.00 LTM Revenue: $51.0M LTM Rev Growth: 18.2% LTM EBITDA: $14.9M Gross Margin: 95.0% $3.50 LTM Net Income: $8.8M EBITDA Margin: 29.3% Mkt Cap / $ Invested: 25.6x Rev Multiple: 4.9x $3.00

Investors $2.50 Sequoia Capital India $2.00

IPO

2/19/16

2/23/16

2/25/16

2/29/16

3/11/16

3/15/16

3/17/16

3/21/16

3/23/16

3/29/16

3/31/16

3/2/16

3/4/16

3/9/16

Offer Range Price-Open Gap $/Share

21 MEDIAN STOCK PERFORMANCE – SAAS & CLOUD 125

 Q1’16 stock performance posted losses of (7.6)% and (2.7)% for SaaS & Cloud 125 and NASDAQ, respectively » Q1’16 was a roller coaster with the NASDAQ dropping nearly 15% during the first half of the quarter before regaining some of those losses in the second half » All sectors aside from Software Conglomerates and Content Creation & Management posted median losses

Stock Performance Stock Performance - 12/31-3/31

80% 75.1% Software Conglomerates 5.4% 70% 65.1% Content Creation & Management 0.3% 60% Cloud Computing / Storage (1.2)% 49.0% 50% Finance & Administration (1.7)% Human Resources (5.1)% 40% 30.0% Marketing & Advertising (5.3)% 30% CRM & Customer Service (7.4)% 20% SaaS & Cloud 125 (7.6)%

10% Vertical Market (8.8)% Cloud & IT Infrastructure (11.5)% 0% Communication & Collaboration (12.1)% (0.6)% (2.7)% (10)% (6.4)% (7.6)% ERP, Supply Chain & Commerce (18.8)% (20)% Analytics / Business Intelligence (25.6)% Last 5 Years Last 3 Years LTM 12/31-3/31 (40)% (20)% 0% 20% SaaS & Cloud 125 NASDAQ

22 MEDIAN LTM REVENUE MULTIPLES – SAAS & CLOUD 125

 Median LTM revenue multiple continued to decrease in Q1’16, falling to 4.2x, still a healthy revenue multiple » Highest trading LTM revenue multiple segments include Finance & Administration, Vertical Market and Human Resources » 4 out of the 6 companies in the Finance & Administration trade at revenue multiples of 6.0x or higher

LTM Enterprise Value / Revenue LTM Enterprise Value / Revenue

7.0x Finance & Administration 6.7 x Vertical Market 5.1 x 6.0x 5.8x Human Resources 5.1 x 5.1x Analytics / Business Intelligence 4.9 x 5.0x 4.7x 4.2x Software Conglomerates 4.3 x 3.8x 4.0x Marketing & Advertising 4.3 x 3.5x SaaS & Cloud 125 4.2 x 3.0x Cloud & IT Infrastructure 4.1 x Content Creation & Management 4.1 x 2.0x ERP, Supply Chain & Commerce 3.7 x CRM & Customer Service 3.4 x 1.0x Cloud Computing / Storage 3.4 x Communication & Collaboration 3.4 x 0.0x 2011 2012 2013 2014 2015 3/31/16 0x 2x 4x 6x 8x Based on data available as of 3/31/16 Based on data available as of 3/31/16 MEDIAN LTM EBITDA MULTIPLES – SAAS & CLOUD 125

 Median LTM EBITDA multiple continued to decrease in Q1’16, currently standing at 16.7x

 The top 3 segments below have posted near 25.0x+ EBITDA multiples for the past several quarters » With only one EBITDA positive company in ERP, Supply Chain & Commerce segment the segment multiple is not very meaningful

LTM Enterprise Value / EBITDA LTM Enterprise Value / EBITDA

25x Human Resources 36.8 x CRM & Customer Service 27.5 x 19.4x ERP, Supply Chain & Commerce 26.3 x 20x 18.6x 17.4x Marketing & Advertising 24.0 x 16.7x Finance & Administration 22.2 x 15x 13.3x Vertical Market 19.4 x 11.6x Analytics / Business Intelligence 18.9 x SaaS & Cloud 125 10x 16.7 x Cloud & IT Infrastructure 14.4 x Communication & Collaboration 13.1 x 5x Content Creation & Management 11.6 x Software Conglomerates 10.9 x Cloud Computing / Storage 9.4 x 0x 2011 2012 2013 2014 2015 3/31/16 0x 10x 20x 30x 40x Based on data available as of 3/31/16 Based on data available as of 3/31/16 Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA

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

 Poor stock performance has led to a decrease in P/E multiples, now standing at 30.6x

 Public markets demonstrate a strong preference for companies growing quickly and investing to solidify market leadership status, confident that future profits will come with scale

LTM P/E LTM P/E

35x 33.0x 32.1x Human Resources 72.7 x 30.6x 29.4x CRM & Customer Service 66.4 x 30x ERP, Supply Chain & Commerce 51.1 x Marketing & Advertising 40.8 x 25x 23.8x Vertical Market 35.2 x 20.5x 20x Communication & Collaboration 34.4 x Analytics / Business Intelligence 30.7 x 15x SaaS & Cloud 125 30.6 x Cloud & IT Infrastructure 25.0 x 10x Content Creation & Management 24.1 x Finance & Administration 22.5 x 5x Cloud Computing / Storage 18.2 x Software Conglomerates 17.7 x 0x 2011 2012 2013 2014 2015 3/31/16 0x 10x 20x 30x 40x 50x 60x 70x 80x Based on data available as of 3/31/16 Based on data available as of 3/31/16 Companies with Net Margin <5.0% and P/E above 40x deemed NA Companies with Net Margin <5.0% and P/E above 40x deemed NA

25 MEDIAN REVENUE GROWTH – SAAS & CLOUD 125

 Median revenue growth has rebounded in Q1’16, currently stands at 20.9% » Revenue growth is expected to slightly weaken to 19.7% over the next twelve months

Revenue Growth vs Prior 12 Mos NTM / LTM Revenue Growth Projection

30% Analytics / Business Intelligence 25.2%

24.9% 24.8% Human Resources 24.9% 25% 22.5% ERP, Supply Chain & Commerce 21.4% 21.8% 20.9% Vertical Market 19.9% 19.7% 21.1% 20% SaaS & Cloud 125 19.7% Marketing & Advertising 19.0% 15% Cloud & IT Infrastructure 16.8% CRM & Customer Service 16.5% 10% Content Creation & Management 14.3% Communication & Collaboration 12.5%

5% Finance & Administration 11.0% Cloud Computing / Storage 6.8%

0% Software Conglomerates 4.3% 2011 2012 2013 2014 2015 LTM NTM 0% 10% 20% 30% 3/31/16 3/31/16 Based on data available as of 3/31/16 Based on data available as of 3/31/16

26 MEDIAN EBITDA GROWTH – SAAS & CLOUD 125

 Median EBITDA growth rates continue to recover back to healthy levels, currently standing at 20.5% » EBITDA growth rates are expected remain at healthy levels over the next twelve months

EBITDA Growth vs Prior 12 Mos NTM / LTM EBITDA Growth Projection

25% Finance & Administration 55.7% 22.1% 20.5% 20.5% CRM & Customer Service 44.5% 20% Human Resources 30.7% Vertical Market 25.5% 16.3% Analytics / Business Intelligence 23.7% 15% 14.0% ERP, Supply Chain & Commerce 23.6% Marketing & Advertising 23.3% 9.7% 10% SaaS & Cloud 125 20.5% Content Creation & Management 20.3% Cloud & IT Infrastructure 14.5% 5% 3.1% Cloud Computing / Storage 12.6% Communication & Collaboration 11.8% Software Conglomerates 0% 2.7% 2011 2012 2013 2014 2015 LTM NTM 0% 25% 50% 75% 3/31/16 3/31/16 Based on data available as of 3/31/16 Based on data available as of 3/31/16 Companies with EBITDA Margin between -5.0% and 5.0% deemed NA Companies with EBITDA Margin between -5.0% and 5.0% deemed NA

27 MEDIAN EPS GROWTH – SAAS & CLOUD 125

 Median EPS growth jumped to 21.7% in Q1’16, up from 17.2% in 2015

 Established leaders with scale are able to drive increased profitability as cost factors normalize after periods of heavy investments to sustain growth

EPS Growth vs Prior 12 Mos NTM / LTM EPS Growth Projection

25% Human Resources 37.0% 21.7% 20.5% Content Creation & Management 31.2% 20% CRM & Customer Service 30.7% 17.6% 17.2% Vertical Market 28.7% Marketing & Advertising 27.1% 15% 13.5% Cloud & IT Infrastructure 20.2%

10.5% 10.4% SaaS & Cloud 125 17.6% 10% Analytics / Business Intelligence 17.2% Finance & Administration 13.6% Communication & Collaboration 12.3% 5% ERP, Supply Chain & Commerce 11.6% Software Conglomerates 6.1% 0% Cloud Computing / Storage 5.1% 2011 2012 2013 2014 2015 LTM NTM 3/31/16 3/31/16 0% 10% 20% 30% 40% Based on data available as of 3/31/16 Based on data available as of 3/31/16 Companies with Net Margin between -5.0% and 5.0% deemed NA Companies with Net Margin between -5.0% and 5.0% deemed NA

28 MEDIAN GROSS MARGIN TRENDS – SAAS & CLOUD 125

 Median Gross Margins have remained constant for the past five years and currently stand at 67.8% » Content Creation & Management & Cloud & IT Infrastructure commanded the highest gross margins as most of their expenses are operational

 More mature segments such as Cloud Computing / Storage and Software Conglomerates tend to have lower gross margins due to a higher degree of price competition

Gross Margins Gross Margins by Segment

80% Content Creation & Management 76.1% 68.4% 70% 67.9% 67.6% 67.8% 67.7% 67.8% Cloud & IT Infrastructure 73.5% Communication & Collaboration 70.6% 60% Analytics / Business Intelligence 70.4%

ERP, Supply Chain & Commerce 50% 68.4% CRM & Customer Service 67.8% 40% SaaS & Cloud 125 67.8% Marketing & Advertising 66.7% 30% Human Resources 65.0% 20% Finance & Administration 64.0% Vertical Market 63.3% 10% Software Conglomerates 61.3%

Cloud Computing / Storage 0% 61.3% 2011 2012 2013 2014 2015 LTM 0% 25% 50% 75% 100% 3/31/16 Based on data available as of 3/31/16 Based on data available as of 3/31/16

29 MEDIAN EBITDA MARGIN TRENDS – SAAS & CLOUD 125

 The Median EBITDA margin continued to increase in Q1’16 as companies increased scale or focused their efforts on profitability

 The majority of companies in CRM & Customer Service, ERP, Supply Chain & Commerce and HR continue to invest heavily in sales and marketing, delaying profitability in favor of scale and market share

 The Software Conglomerates and other more mature segments already have operating leverage

EBITDA Margins EBITDA Margins by Segment

25% Software Conglomerates 33.1% Cloud Computing / Storage 31.6% 20% 19.2% Vertical Market 22.7% Content Creation & Management 20.4% 15.7% 15.2% Marketing & Advertising 15.4% 14.4% 15% 12.9% 13.4% SaaS & Cloud 125 14.4% Cloud & IT Infrastructure 12.2%

10% Communication & Collaboration 11.0% Finance & Administration 10.9% Analytics / Business Intelligence 9.9% 5% CRM & Customer Service 3.2% ERP, Supply Chain & Commerce 1.4%

0% Human Resources 1.0% 2011 2012 2013 2014 2015 LTM 0% 10% 20% 30% 40% 3/31/16 Based on data available as of 3/31/16 Based on data available as of 3/31/16

30 BEST & WORST PERFORMERS – SAAS & CLOUD 125

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

35x 350% 320.5 29.8 30x 300% 250% 25x 22.1 200% 20x 150% 14.2 100% 64.0 61.2 60.1 54.4 12.0 15x 11.6 50% 19.7 10x 0% 4.2 (50)% 5x (3.8) (4.7) 1.2 1.2 1.0 1.0 0.7 (100)% (28.7) (41.4) (46.8) 0x

Based on data available as of 3/31/16 Based on data available as of 3/31/16

High/Low LTM EV/EBITDA Multiples High/Low EBITDA Growth 150.0x 134.4 500% 427.6 111.8 400% 300% 100.0x 200% 119.7 100.5 99.3 97.9 100% 20.5 61.6 57.1 51.2 0% 50.0x (100)% (20.8) (29.0) (34.4) (50.4) 16.7 (200)% 7.0 6.9 6.7 5.4 4.4 (300)% 0.0x (400)% (316.8)

Based on dat a available as of 3/31/16 Based on data available as of 3/31/16 Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA Companies with EBITDA Margin between -5.0% and 5.0% deemed NA

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

High/Low LTM P/E Multiples High/Low EPS Growth 300x 245.3 300% 239.8 250x 192.9 200% 156.8 200x 101.7 156.9 98.3 96.5 100% 150x 21.7 101.3 99.9 0% 100x 30.6 (100)% 50x (63.9) (69.2) (76.8) 12.4 12.0 12.0 11.8 10.1 (100.6) 0x (200)% (146.1)

Based on data available as of 3/31/16 Based on data available as of 3/31/16 Companies with Net Margin <5.0% and P/E above 40x deemed NA Companies with Net Margin between -5.0% and 5.0% deemed NA

Stock Performance - 12/31-3/31 High/Low EBITDA Margin

120% 108.4 100% 46.2 45.3 44.1 40.9 40.8 14.4 90% 0% 50.5 60% 42.1 42.0 36.4 30% (100)% (47.4) (67.9) (70.0) (83.0) 0% (200)% (30)% (7.6) (38.7) (38.8) (38.9) (300)% (260.5) (60)% (41.4) (48.4)

32 NOTABLE TRANSACTION PROFILES M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Truven provides data analytics and corporate performance management SaaS and services for healthcare providers, employers and health plans, government entities and life sciences Deal Summary businesses. Truven was formerly the healthcare business division Date: 2/16/2016 of Thomson Reuters and was acquired by Veritas Capital in April of Transaction Value: $2.6B 2012. Enterprise Value: $2.6B This marks the fourth major acquisition for Watson Health since % Sought: 100% the unit was established in early 2014. Watson Health was formed Consideration: Cash through the acquisitions of Phytel and Explorys, eventually combining with Merge Healthcare in August to round out data- driven capabilities. With the acquisition of Truven, IBM will have access to a vast cloud-based data repository directly beneficial to Valuation Metrics the Watson platform, 2,500 employees and 8,500 clients, including LTM Revenue Multiple: 4.3 x U.S. federal and state government agencies, employers, health LTM EBITDA Multiple: 20.4 x plans, hospitals, clinicians and life sciences companies. Anil Jain, VP of Watson Health commented, “Think of the Watson Health Multiple on $ Invested: NA Platform — the cloud, the core technology being available for solutions being built for our client base. In some cases, we will build those solutions, in other cases they will be built by our partners.” Investors Veritas Capital This is IBM’s largest acquisition in the last three years since Ginni Rometty was hired as CEO. The transaction is valued at 4.3 times trailing twelve month revenue and 20.4 times EBITDA for the same period.

34 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2004 and based in Santa Clara, CA, Jasper provides a cloud-based internet of things (IoT) service platform to enterprises and service providers. Jasper’s Control Center platform is a SaaS- Deal Summary based solution, enabling users to analyze data, track performance, Date: 2/3/2016 gain new insights, and improve time to launch of innovative new Transaction Value: $1.4B IoT products and services. Enterprise Value: $1.4B Jasper grew dramatically over the past year, from 1,900 enterprise % Sought: 100% customers in March 2015 to more than 3,500 enterprises in early Consideration: Cash 2016. Cisco will likely build upon Jasper's IoT service platform and add new services including advanced IoT security, support for additional IoT connectivity protocols as well as analytics solutions. On a combined basis, Cisco will use Jasper’s technology to bring Valuation Metrics together a company’s connected devices and provide additional LTM Revenue Multiple: 11.7 x network management and data analytics services to complement LTM EBITDA Multiple: NA the feature set. A press release from Cisco noted, “together, Cisco and Jasper will make it easier for companies to enter the IoT Multiple on $ Invested: 6.7 x market, accelerate growth, and enable service providers to help their enterprise customers transform to IoT businesses in the next decade.”

Investors Jasper Founder and CEO Jahangir Mohammed will assume a Alliance Bernstein; Temasek general manager role within the newly-formed IoT Cloud Business Unit at Cisco. With a deal value of $1.4 billion, the transaction is valued at 11.7 times trailing twelve month revenue.

35 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Atlanta, GA-based Brightree is a leader in business management and clinical software applications for the post-acute care market. With more than 2,500 organizational customers, Brightree Deal Summary develops SaaS software for home or durable medical equipment Date: 2/22/2016 for home health and hospice care, with aims of improving the Transaction Value: $800M quality and effectiveness of the post-acute care industry. Enterprise Value: $800M ResMed makes continuous positive airway pressure (CPAP) masks % Sought: 100% and ventilation devices for the treatment of sleep apnea and Consideration: Cash chronic obstructive pulmonary disease (COPD). ResMed already has existing connected health programs called ResMed Air Solutions and U-Sleep, which pull data from medical devices to a cloud-based system. Within the last 18 months, ResMed has Valuation Metrics placed cellular chips to connect all their devices to the cloud. The LTM Revenue Multiple: 7.1 x Brightree deal opens up even more opportunities, particularly in LTM EBITDA Multiple: 18.6 x the post-acute care segment. Dave Cormack, President and CEO of Brightree commented, “the Brightree team is very excited to Multiple on $ Invested: NA join forces with ResMed to help post-acute care providers navigate the inherent complexities of the healthcare system and ensure that patients get the care they need.”

Investors Under the agreement, ResMed will pay $800 million in cash for Battery Ventures Brightree, funded primarily through debt, according to a press release. The transaction is expected to be accretive to gross margin and non-GAAP diluted earnings per share after close, and Brightree will continue to operate as a separate entity.

36 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Diligent is a leading provider of secure corporate governance and collaboration solutions for boards and senior executives. With more than 3,500 customers in more than 60 countries worldwide, Deal Summary Diligent provides secure, intuitive access to time-sensitive and Date: 2/14/2016 confidential information, ultimately helping customers make Transaction Value: $624M better decisions. Diligent’s solution simplifies how board materials are produced, delivered and collaborated, abating the security Enterprise Value: $624M concerns of utilizing couriers, email and cloud-file sharing. % Sought: 100% Consideration: Cash Most recently, Diligent acquired digital meeting portal provider BoardLink from Thomson Reuters for $10M. Insight Venture Partners is a global venture capital and private equity firm investing in high-growth software, internet and data services Valuation Metrics companies. Brian Stafford, Diligent CEO commented, “our game plan will not change as a private company — to be the leading LTM Revenue Multiple: 6.6 x provider of collaboration software for boards, committees, and LTM EBITDA Multiple: 36.4 x leadership teams. Insight will be a great partner to the Diligent LTM P/E Multiple: 62.5 x team as we continue to help leading organizations around the world collaborate securely.” Premium versus: 1 day prior: 30.7% The transaction is valued at 6.6 times trailing twelve month 1 week prior: 24.9% revenue and 36.4 times EBITDA for the same period. 1 month prior: 20.4%

Note: LTM and Premiums as of quarter prior to transaction announcement date.

37 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

San Mateo, CA based Serena Software was founded in 1980 and specializes in application lifecycle management (ALM) which manages the development, deployment throughout the lifecycle Deal Summary of the product. The company also offers DevOps solutions Date: 3/22/2016 fostering collaboration between the software development and Transaction Value: $288M operational teams. Enterprise Value: $540M Based in Berkshire UK, Micro Focus provides software and % Sought: 100% consultancy services to firms worldwide seeking to upgrade legacy Consideration: Cash systems to more modern platforms. Private equity firm Silver Lake acquired Serena in 2006 for an estimated $1.2B. Since selling to PE firm HGGC two years ago for an estimated $450 million, Serena's customer count has since been flat and its revenue has dropped Valuation Metrics 12% to $162 million. Micro Focus CEO Stephen Murdoch LTM Revenue Multiple: 3.3 x commented, “today's announcement marks another significant LTM EBITDA Multiple: NA milestone for Micro Focus, bringing together two highly complementary solution sets that enable customers to build better Multiple on $ Invested: 1.2 x applications, adapt to changing business conditions more rapidly and maximize the value of existing investments to drive further innovation within their business.”

Investors Under the terms of the agreement, Micro Focus will repay Serena’s HGGC net debt of $252 million and purchase the equity from HGCC for approximately $288 million. The transaction will be funded in part through $216 million underwritten by Numis Securities.

38 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

San Diego, CA based Lytx was formerly known as DriveCam before changing its name in 2013. Lytx provides video telematics and safety services for the commercial and public sector transportation Deal Summary industries. The company's DriveCam program is a subscription Date: 2/18/2016 service which intelligently combines the video capture of driving Transaction Value: $500M events, personalized data backed coaching insights, fleet tracking and fuel management to help improve driver safety and behavior Enterprise Value: $500M for more than 300,000 subscribers, with customers among the % Sought: 100% likes of Land O’ Lakes, Swift Transportation, YRC, Vulcan Materials Consideration: Cash and the city of Atlanta. Chicago, IL based GTCR has invested $12 billion in more than 200 companies since its inception in 1980. GTCR focuses on companies Valuation Metrics in the financial services, health care, technology, telecom and LTM Revenue Multiple: 3.8 x business services sectors. GTCR Managing Director Phil Canfield LTM EBITDA Multiple: NA commented, “Lytx is already driving its strong vision of expanding the video telematics category, and their clear market leadership is Multiple on $ Invested: 7.2 x proof the team can continue to record stellar results.” San Diego also is home to SmartDrive, another video telematics company that competes with Lytx. SmartDrive raised $50 million in venture capital in 2015. Investors Menlo Ventures, JMI Equity, Insight Venture Partners, Under the terms of the agreement, existing Lytx executives, Triangle Peak Partners, Welsh, Carson, Anderson & Stowe, including Nixon, will remain in their current roles, and Lytx’s Volvo Group Venture Capital, Delta-v Capital approximately 400 employees will remain headquartered in San Diego, CA.

39 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 1970, Tampa, FL based HealthPlan provides technology and Business Process as a Service (BPaaS) on a subscription basis to the health insurance sector. HealthPlan Deal Summary employs approximately 2,000 people with three offices in Florida Date: 2/11/2016 two offices in Ohio. It currently generates annual revenue in excess Transaction Value: $460M of $223 million, representing a year over year growth rate of 19%. Enterprise Value: $460M The healthcare vertical accounted for 12% of Wipro’s revenue at % Sought: 100% the end of the December quarter. This vertical recorded a Consideration: Cash sequential growth rate of 5.2% and annual growth of 4.9% for 2015. Wipro CEO Abidali Neemuchwala had recently indicated a target for Wipro of $15 billion in revenue by 2020 with an operating margin of 23%. The acquisition of HealthPlan Services Valuation Metrics will allow Wipro to move away from legacy systems and sourcing LTM Revenue Multiple: 2.1 x to deliver around the BPaaS model. Jeffrey Heenan Jalil, Wipro LTM EBITDA Multiple: NA Senior Vice President & Head of Healthcare Life Sciences and Services commented, “the partnership with HealthPlan Services Multiple on $ Invested: NA positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model.”

The acquisition further expands Wipro’s suite with sales and Investors marketing capability for health insurance carriers to attract Water Street Healthcare Partners consumers with a more familiar method to purchase in the same way they would shop for and purchase other services online. HealthPlan also offers support for analytics to enhance customer satisfaction and loyalty.

40 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2011, San Francisco based Xamarin provides developer tools to build fully native apps for iOS, Android, Windows and Mac from a single shared code base using Microsoft’s programming Deal Summary language. Xamarin was developed from a product called Mono, an Date: 2/24/2016 open source clone of .NET that enabled developers to code in C# Transaction Value: $400M on non-Windows operating systems such as Linux or Android. After Novell acquired Mono’s creator Ximian in 2003 and Novell Enterprise Value: $400M itself was acquired in 2011 by Attachmate, the same team later % Sought: 100% spun out to create Xamarin. Consideration: Cash Microsoft’s interest in Xamarin has been well covered in the tech world, with Microsoft having announced an expanded partnership with Xamarin in November of 2014. This deal marks a shift in Valuation Metrics Microsoft’s traditional approach to only support its own LTM Revenue Multiple: 10.7 x programming languages and tools on its own operating systems. LTM EBITDA Multiple: NA With Xamarin, Microsoft bolsters their development platform with cross-platform UI tooling capabilities and brings in-house the Multiple on $ Invested: 4.9 x corresponding compilers needed to run native code on mobile devices. Scott Guthrie, Corporate VP at Microsoft commented, “the combination of Xamarin, Visual Studio, Visual Studio Team Services, and Azure provides a complete mobile app dev solution Investors that provides everything you need to develop, test, deliver and Water Street Healthcare Partners instrument mobile apps for every device.”

Xamarin has more than 15,000 customers, including over 20% of Fortune 500 companies, and boasts more than 1.3 million developers on the platform.

41 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2007, Dallas based iSIGHT Partners has 350 employees, with 250 experts in 17 countries tracking about 16,000 adversaries in 29 languages. iSIGHT had $40 million in revenue and $50 million Deal Summary in bookings, indicating strong run-rate momentum based on Date: 1/20/2016 long-term subscriptions. Transaction Value: $275M While the deal will undoubtedly help FireEye expand further into Enterprise Value: $275M threat intelligence, the $275 million valuation for iSIGHT is far % Sought: 100% below their vision for path to a $1 billion IPO. In the past few years Consideration: Cash with several high-profile attacks on corporate companies, investors have become increasingly bearish on cybersecurity companies. As an example of the combined capabilities of the two companies, taking the 2013 attack on Target Corporation as an Valuation Metrics example, FireEye would come in after the attack to deduce its LTM Revenue Multiple: 5.0 x origins while iSIGHT had predicted in advance that Eastern LTM EBITDA Multiple: NA European groups were targeting retail chains for attacks. David DeWalt, FireEye CEO commented, “as the cyber operations Multiple on $ Invested: 7.0 x become integrated with physical, geopolitical and competitive conflict, an intelligence-led approach to security will be key in detecting the most sophisticated threats and responding to them quickly and effectively.” Investors The Blackstone Group (NYSE:BX), Bessemer Venture The $275M deal value includes a potential earn-out of up to $75 Partners million based upon the achievement of unspecified bookings targets. FireEye expects the deal to be accretive to its 2016 operating income and cash flow.

42 M&A TRANSACTION SPOTLIGHT

Acquiror Target Deal Rationale/Commentary

Founded in 2010 by former Vmware engineers, Santa Clara, CA based CliQr Technologies offers cloud-management software for companies on the hybrid cloud, a term more common as Deal Summary companies seek to optimize data and apps across private and Date: 3/1/2016 public cloud infrastructure. CliQr’s technology essentially functions Transaction Value: $260M as a benchmarking service to enable IT organizations to evaluate pricing and features of cloud providers, and then determine the Enterprise Value: $260M optimal method for deploying on and managing those % Sought: 100% environments through a single view. Consideration: Cash The deal comes for Cisco as many of its customers are gravitating toward cloud technologies which enable rapid deployments and lower maintenance costs. Cisco as of late has adopted a strategy Valuation Metrics of acting as an intermediary between these companies and LTM Revenue Multiple: NA providers of cloud services. Cisco’s move into what is referred to LTM EBITDA Multiple: NA as hyper-converged architecture combines computing and storage into a single piece of hardware, and according to Cisco Multiple on $ Invested: 6.8 x CEO Chuck Robbins, “this is a higher-level orchestration capability.” CliQr neatly fits with this trajectory by optimizing the infrastructure options across private and public cloud environments. The CliQr acquisition comes less than a month after Investors rival Oracle’s purchase of Ravello, whose virtualization also makes GV (Alphabet), Foundation Capital, Polaris Partners, applications work with multiple cloud providers or platforms. TransLink Capital, Sood Ventures, NTT Docomo Ventures In addition to $260 million in cash, Cisco will also provide unspecified retention based incentives. The acquisition is expected to close in the third quarter of 2016.

43 PUBLIC COMPANY TRADING & OPERATING METRICS TRADING & OPERATING METRICS

($ in millions, except per share data) $/Share Market Enterprise % Change Ent. Value/Rev. Ent. Value/EBITDA Price/EPS NTM / LTM Growth LTM Margin Company Name 3/31/16 Cap Value Cash Debt LTM LQ LTM NTM LTM NTM LTM NTM Revenue EBITDA EPS Gross EBITDA Net

SaaS & Cloud 125 Mean 19,474 19,299 2,939 2,763 (5.8)% (6.2)% 5.0 x 3.8 x 23.1 x 19.6 x 44.2 x 31.9 x 21.4% 27.1% 23.3% 66.5 % 8.6 % (1.4)% SaaS & Cloud 125 Median 1,267 1,191 126 23 (6.4)% (7.6)% 4.2 x 3.4 x 16.7 x 13.9 x 31.2 x 26.7 x 19.7% 20.3% 17.5% 67.8 % 14.4 % 6.2 %

Analytics / Business Intelligence Adobe 93.80 46,920 44,739 4,098 1,917 26.9 % (0.1)% 8.8 x 7.4 x 26.1 x 19.4 x 40.8 x 31.1 x 20.0% 34.9% 31.2% 84.7 % 33.8 % 23.0 % Alphabet 762.90 518,917 454,639 71,926 7,648 37.5 % (1.9)% 6.1 x 5.2 x 15.3 x 12.8 x 25.8 x 22.0 x 16.3% 20.1% 17.2% 62.4 % 39.5 % 27.3 % Bazaarvoice 3.15 256 204 109 57 (44.2)% (28.1)% 1.0 x 1.0 x NA NA NA NA 3.8% NA NA 61.6 % (1.3)% (4.1)% comScore 30.04 1,702 1,588 147 33 (41.3)% (27.0)% 4.3 x 3.0 x 16.7 x 12.7 x 16.5 x 19.3 x 41.5% 31.4% (14.3)% 68.5 % 25.7 % 18.7 % Hottolink 5.39 59 77 5 23 (37.0)% 17.0 % 3.8 x NA 18.9 x NA NA NA NA NA NA 51.2 % 20.0 % 0.7 % iSentia 2.67 533 569 6 41 (4.5)% (24.2)% 5.5 x 4.4 x 22.1 x 13.5 x 35.6 x 20.2 x 25.2% 64.1% 76.4% 39.6 % 25.0 % 14.6 % Mattersight 4.01 107 95 15 3 (35.3)% (38.9)% 2.4 x 1.8 x NA NA NA NA 33.0% 119.7% 38.9% 73.3 % (11.8)% (38.2)% New Relic 26.08 1,292 1,101 191 0 (24.8)% (28.4)% 6.8 x 4.9 x NA NA NA NA 40.0% 6.6% 6.8% 79.4 % (15.7)% (24.1)% Splunk 48.93 6,477 5,468 1,009 0 (17.3)% (16.8)% 8.2 x 6.2 x NA 70.9 x NA NA 32.0% NA NA 82.9 % (0.3)% 3.4 % Workiva 11.65 477 424 76 23 (19.1)% (33.7)% 2.9 x 2.4 x NA NA NA NA 23.0% (50.4)% (46.6)% 72.3 % (19.5)% (22.2)% Mean 57,674 50,890 7,758 975 (15.9)% (18.2)% 5.0 x 4.0 x 19.9 x 25.9 x 29.7 x 23.1 x 26.1% 32.3% 15.7% 67.6 % 9.6 % (0.1)% Median 913 835 128 28 (22.0)% (25.6)% 4.9 x 4.4 x 18.9 x 13.5 x 30.7 x 21.1 x 25.2% 31.4% 17.2% 70.4 % 9.9 % 2.1 %

Cloud & IT Infrastructure Alarm.com 23.70 1,082 960 128 7 NA 42.1 % 4.6 x 4.0 x 31.8 x 23.4 x NA 50.6 x 14.0% 36.1% NA 63.0 % 14.4 % 4.7 % Apigee 8.31 248 176 74 3 NA 3.5 % 2.2 x 1.7 x NA NA NA NA 32.2% 17.5% 32.6% 68.0 % (45.5)% (41.6)% Citrix 78.58 12,100 12,553 871 1,325 23.0 % 3.9 % 3.8 x 3.8 x 12.2 x 11.7 x 18.1 x 16.7 x 1.4% 4.7% 8.2% 85.2 % 31.4 % 21.3 % FireEye 17.99 2,985 2,522 1,170 706 (54.2)% (13.3)% 4.0 x 3.0 x NA NA NA NA 33.0% 32.6% 22.8% 62.7 % (27.6)% (40.1)% Hortonworks 11.30 617 522 94 0 (52.6)% (48.4)% 4.3 x 2.8 x NA NA NA NA 54.4% 23.5% 17.6% 54.8 % (70.0)% (107.6)% LogMeIn 50.46 1,267 1,118 208 60 (9.9)% (24.8)% 4.1 x 3.4 x 16.6 x 14.5 x 30.6 x 29.1 x 19.7% 14.5% 5.2% 86.9 % 24.9 % 15.7 % Metaps 16.20 205 141 64 0 NA (34.0)% 4.1 x NA NA NA NA NA NA NA NA 15.0 % (6.2)% (9.5)% Mimecast 9.73 526 429 106 8 NA 1.4 % 3.2 x 2.7 x 31.3 x NA NA NA 15.8% (34.4)% NA 70.6 % 10.1 % 3.8 % Proofpoint 53.78 2,214 2,153 406 346 (9.2)% (17.3)% 8.1 x 6.2 x NA NA NA NA 31.1% NA 34.9% 68.3 % 1.7 % (5.2)% Qualys 25.31 871 693 179 0 (45.5)% (23.5)% 4.2 x 3.5 x 12.2 x 10.9 x 35.6 x 32.8 x 20.1% 11.7% 8.7% 79.4 % 34.5 % 16.5 % Quick Heal 3.28 230 207 23 0 NA NA 4.5 x NA 12.1 x NA 20.4 x NA NA NA NA 90.1 % 37.4 % 21.8 % Rapid7 13.07 544 457 87 0 NA (13.6)% 4.1 x 3.1 x NA NA NA NA 35.3% 16.1% 68.6% 73.5 % (35.6)% (65.6)% Red Hat 74.51 13,607 13,122 1,209 724 (1.6)% (10.0)% 6.4 x 5.5 x 24.6 x 20.8 x 39.0 x 33.2 x 16.7% 18.4% 17.4% 84.9 % 26.0 % 17.3 % ServiceNow 61.18 9,837 9,510 801 475 (22.3)% (29.3)% 9.5 x 7.0 x 61.6 x 37.7 x 156.9 x 96.2 x 35.3% 63.4% 63.1% 67.2 % 15.3 % 6.0 % Sophos 3.14 1,419 1,650 68 299 NA (18.7)% 3.5 x 3.2 x 29.1 x 21.5 x NA 42.1 x 10.5% 35.3% 162.5% 78.9 % 12.2 % (9.3)% Splunk 48.93 6,477 5,468 1,009 0 (17.3)% (16.8)% 8.2 x 6.2 x NA 70.9 x NA NA 32.0% NA NA 82.9 % (0.3)% 3.4 % Symantec 18.38 11,988 11,459 2,269 1,740 (21.3)% (12.5)% 1.9 x 3.2 x 6.7 x 9.4 x 12.0 x 17.1 x (41.4)% (29.0)% (29.6)% 83.5 % 27.7 % 17.0 % Trend Micro 36.67 5,023 3,810 1,213 0 11.1 % (10.6)% 3.7 x 3.1 x 11.7 x 10.4 x 28.0 x NA 19.1% 12.8% NA 82.9 % 31.6 % 17.4 % VMware 52.31 22,158 16,149 7,509 1,500 (36.2)% (7.5)% 2.4 x 2.3 x 6.9 x 6.6 x 12.9 x 12.7 x 3.4% 4.5% 1.0% 84.7 % 35.2 % 26.1 % WANdisco 2.64 78 76 3 0 (32.2)% 108.4 % 6.9 x 6.8 x NA NA NA NA 1.0% 67.0% 39.0% 93.2 % (260.5)% (273.5)% Mean 4,674 4,159 875 360 (20.6)% (6.4)% 4.7 x 4.0 x 21.4 x 21.6 x 39.3 x 36.7 x 18.5% 18.4% 32.3% 73.8 % (7.2)% (19.1)% Median 1,343 1,384 194 8 (21.3)% (13.3)% 4.1 x 3.3 x 14.4 x 14.5 x 28.0 x 32.8 x 19.4% 16.8% 20.2% 79.1 % 13.3 % 4.3 %

45 TRADING & OPERATING METRICS

Cloud Computing / Storage Alphabet 762.90 518,917 454,639 71,926 7,648 37.5 % (1.9)% 6.1 x 5.2 x 15.3 x 12.8 x 25.8 x 22.0 x 16.3% 20.1% 17.2% 62.4 % 39.5 % 27.3 % Amazon 593.64 279,511 277,250 19,808 17,547 59.5 % (12.2)% 2.6 x 2.1 x 25.7 x 19.4 x NA NA 21.6% 32.0% NA 33.0 % 10.1 % 0.6 % Box 12.26 1,484 1,343 193 52 (37.9)% (12.2)% 4.4 x 3.4 x NA NA NA NA 29.9% 62.3% 27.4% 71.2 % (54.3)% (46.3)% CenturyLink 31.96 17,382 37,481 126 20,225 (7.5)% 27.0 % 2.1 x 2.1 x 5.4 x 5.6 x 11.8 x 12.3 x (1.3)% (3.8)% (4.3)% 59.2 % 38.9 % 8.4 % IBM 151.45 145,525 177,223 8,194 39,892 (5.6)% 10.0 % 2.2 x 2.3 x 8.8 x 8.9 x 10.1 x 11.2 x (4.7)% (1.4)% (9.7)% 49.8 % 24.6 % 17.9 % Microsoft 55.23 436,831 379,385 102,314 44,868 35.9 % (0.5)% 4.3 x 4.0 x 14.8 x 11.1 x 20.5 x 19.5 x 7.4% 33.3% 5.1% 64.0 % 29.0 % 24.8 % Oracle 40.91 169,771 159,110 50,767 40,106 (5.2)% 12.0 % 4.3 x 4.2 x 9.4 x 9.1 x 15.9 x 14.8 x 1.1% 3.5% 7.1% 58.6 % 45.3 % 30.3 % Rackspace 21.59 2,809 2,983 485 659 (58.2)% (14.7)% 1.5 x 1.4 x 4.4 x 4.2 x 24.0 x 22.9 x 6.1% 5.0% 4.8% 66.2 % 34.2 % 6.3 % salesforce.com 73.83 49,533 50,248 1,341 2,056 10.5 % (5.8)% 7.5 x 6.2 x 42.0 x 29.0 x 98.4 x 72.9 x 21.8% 44.5% 35.0% 75.2 % 18.0 % 7.4 % Verizon 54.08 220,646 325,813 5,070 110,237 11.2 % 17.0 % 2.5 x 2.5 x 7.0 x 7.0 x 13.6 x 13.6 x (0.2)% (0.4)% (0.4)% 60.1 % 35.4 % 12.4 % Mean 184,241 186,547 26,022 28,329 4.0 % 1.9 % 3.7 x 3.3 x 14.8 x 11.9 x 27.5 x 23.7 x 9.8% 19.5% 9.1% 60.0 % 22.1 % 8.9 % Median 157,648 168,167 6,632 18,886 2.7 % (1.2)% 3.4 x 2.9 x 9.4 x 9.1 x 18.2 x 17.2 x 6.8% 12.5% 5.1% 61.3 % 31.6 % 10.4 %

Communication & Collaboration 8x8 10.06 890 735 155 0 19.8 % (12.1)% 3.8 x 3.1 x 34.2 x 34.1 x 55.9 x 60.6 x 19.9% 0.3% (7.8)% 73.0 % 11.0 % 8.2 % Atlassian 25.15 5,342 4,660 682 0 NA (16.4)% 12.0 x 9.2 x NA 50.7 x 192.9 x 103.3 x 30.8% NA 86.7% 83.6 % 4.1 % 5.1 % Cisco 28.47 143,264 107,488 60,375 24,599 3.4 % 4.8 % 2.2 x 2.2 x 7.3 x 7.0 x 12.4 x 12.4 x (1.0)% 3.7% 0.6% 61.2 % 29.7 % 23.6 % Citrix 78.58 12,100 12,553 871 1,325 23.0 % 3.9 % 3.8 x 3.8 x 12.2 x 11.7 x 18.1 x 16.7 x 1.4% 4.7% 8.2% 85.2 % 31.4 % 21.3 % CLX Communications 8.76 284 285 7 8 NA (18.3)% 2.5 x 2.0 x NA 20.6 x 38.5 x 28.4 x 22.9% 66.3% 35.5% 16.4 % 7.2 % 6.2 % Cybozu 3.04 140 120 20 0 10.0 % 14.3 % 2.0 x NA NA NA NA NA NA NA NA 92.2 % 1.2 % (3.1)% Interactive Intel. 36.42 802 761 159 118 (11.6)% 15.9 % 1.9 x 1.7 x NA NA NA NA 12.5% (18.7)% NA 60.7 % 6.9 % 0.2 % IntraLinks 7.88 456 479 60 83 (23.8)% (13.1)% 1.7 x 1.6 x 12.3 x 10.0 x NA NA 8.6% 23.1% NA 72.5 % 14.1 % 1.2 % j2 Global 61.58 2,997 3,264 335 602 (6.2)% (25.2)% 4.5 x 3.9 x 9.8 x 8.2 x 14.8 x 12.7 x 17.3% 18.8% 16.5% 82.9 % 46.2 % 27.8 % Jive Software 3.78 289 187 106 4 (26.3)% (7.4)% 1.0 x 0.9 x NA NA NA NA 3.9% NA NA 63.1 % 3.2 % (5.0)% LivePerson 5.85 336 287 49 0 (42.8)% (13.3)% 1.2 x 1.2 x 13.1 x 12.7 x 34.4 x NA (2.8)% 3.4% NA 70.6 % 9.2 % 4.0 % Microsoft 55.23 436,831 379,385 102,314 44,868 35.9 % (0.5)% 4.3 x 4.0 x 14.8 x 11.1 x 20.5 x 19.5 x 7.4% 33.3% 5.1% 64.0 % 29.0 % 24.8 % RingCentral 15.75 1,134 1,016 138 19 2.7 % (33.2)% 3.4 x 2.9 x NA NA NA NA 19.0% NA NA 70.5 % 2.2 % (3.1)% Textura 18.63 488 409 79 0 (31.5)% (13.7)% 4.7 x 3.8 x 40.2 x 21.0 x 88.7 x 44.8 x 24.4% 91.4% 98.2% 82.4 % 11.7 % 6.3 % V-cube 11.52 217 235 17 35 72.3 % 36.4 % 4.6 x NA 23.8 x NA NA NA NA NA NA 55.1 % 19.5 % (0.0)% Mean 40,371 34,124 11,024 4,777 1.9 % (5.2)% 3.6 x 3.1 x 18.6 x 18.7 x 52.9 x 37.3 x 12.6% 22.6% 30.4% 68.9 % 15.1 % 7.8 % Median 802 735 138 19 2.7 % (12.1)% 3.4 x 2.9 x 13.1 x 12.2 x 34.4 x 24.0 x 12.5% 11.8% 12.3% 70.6 % 11.0 % 5.1 %

46 TRADING & OPERATING METRICS

Content Creation & Management Adobe 93.80 46,920 44,739 4,098 1,917 26.9 % (0.1)% 8.8 x 7.4 x 26.1 x 19.4 x 40.8 x 31.1 x 20.0% 34.9% 31.2% 84.7 % 33.8 % 23.0 % GoDaddy 32.33 2,195 2,919 353 1,076 NA 0.8 % 1.8 x 1.6 x 8.7 x 7.2 x 24.1 x 20.6 x 14.3% 20.3% NA 64.8 % 21.0 % 4.9 % Kudelski 17.11 928 1,125 137 334 39.0 % 18.6 % 1.2 x 1.1 x 9.8 x 8.4 x 22.8 x 16.2 x 11.5% 15.9% NA 69.5 % 12.3 % 4.3 % Rovi 20.51 1,708 2,492 210 993 12.6 % 23.1 % 4.7 x 4.9 x 11.6 x 11.6 x 12.0 x 10.4 x (3.4)% (0.1)% 15.5% 80.4 % 40.9 % 27.3 % Sumavision 1.59 2,190 1,954 237 0 3.8 % (14.8)% 22.1 x NA 111.8 x NA 245.3 x NA NA NA NA 71.8 % 19.8 % 10.2 % Wix 20.27 805 695 110 0 5.8 % (10.9)% 3.4 x 2.5 x NA 23.7 x NA NA 34.0% 99.3% 36.0% 82.8 % 7.2 % (15.3)% Mean 9,124 8,987 857 720 17.6 % 2.8 % 7.0 x 3.5 x 33.6 x 14.1 x 69.0 x 19.6 x 15.3% 34.1% 27.6% 75.7 % 22.5 % 9.1 % Median 1,949 2,223 223 663 12.6 % 0.3 % 4.1 x 2.5 x 11.6 x 11.6 x 24.1 x 18.4 x 14.3% 20.3% 31.2% 76.1 % 20.4 % 7.6 %

Content Delivery Services Akamai 55.57 9,822 9,697 750 624 (21.8)% 5.6 % 4.4 x 4.1 x 10.8 x 10.1 x 22.1 x 20.5 x 8.7% 6.6% 7.5% 67.0 % 40.8 % 20.7 % Brightcove 6.24 204 178 28 1 (14.9)% 0.6 % 1.3 x 1.2 x NA NA NA NA 8.4% 10.3% NA 65.5 % 5.9 % 0.5 % Limelight 1.81 185 114 73 2 (50.1)% 24.0 % 0.7 x 0.6 x 16.5 x 6.0 x NA NA 9.8% NA 91.7% 50.4 % 4.0 % (5.9)% Mean 3,404 3,329 283 209 (28.9)% 10.1 % 2.1 x 2.0 x 13.7 x 8.1 x 22.1 x 20.5 x 9.0% 8.4% 49.6% 60.9 % 16.9 % 5.1 % Median 204 178 73 2 (21.8)% 5.6 % 1.3 x 1.2 x 13.7 x 8.1 x 22.1 x 20.5 x 8.7% 8.4% 49.6% 65.5 % 5.9 % 0.5 %

CRM & Customer Service Five9 8.89 456 444 58 47 59.9 % 2.2 % 3.4 x 3.0 x NA NA NA NA 16.5% 100.5% 30.7% 53.8 % (10.7)% (12.8)% Jive Software 3.78 289 187 106 4 (26.3)% (7.4)% 1.0 x 0.9 x NA NA NA NA 3.9% NA NA 63.1 % 3.2 % (5.0)% LivePerson 5.85 336 287 49 0 (42.8)% (13.3)% 1.2 x 1.2 x 13.1 x 12.7 x 34.4 x NA (2.8)% 3.4% NA 70.6 % 9.2 % 4.0 % salesforce.com 73.83 49,533 50,248 1,341 2,056 10.5 % (5.8)% 7.5 x 6.2 x 42.0 x 29.0 x 98.4 x 72.9 x 21.8% 44.5% 35.0% 75.2 % 18.0 % 7.4 % Zendesk 20.93 1,894 1,649 246 0 (7.8)% (20.8)% 7.9 x 5.5 x NA NA NA NA 42.4% NA (8.7)% 67.8 % (2.7)% (12.2)% Mean 10,501 10,563 360 421 (1.3)% (9.0)% 4.2 x 3.4 x 27.5 x 20.9 x 66.4 x 72.9 x 16.4% 49.5% 19.0% 66.1 % 3.4 % (3.7)% Median 456 444 106 4 (7.8)% (7.4)% 3.4 x 3.0 x 27.5 x 20.9 x 66.4 x 72.9 x 16.5% 44.5% 30.7% 67.8 % 3.2 % (5.0)%

ERP, Supply Chain & Commerce Amber Road 5.41 142 148 18 23 (41.5)% 6.3 % 2.2 x 2.0 x NA NA NA NA 9.5% 43.7% 20.5% 45.0 % (15.6)% (28.4)% ChannelAdvisor 11.25 286 230 60 4 16.1 % (18.8)% 2.3 x 2.0 x NA NA NA NA 11.9% NA (10.5)% 79.3 % 1.4 % (7.5)% Demandware 39.10 1,475 1,278 197 0 (35.8)% (27.6)% 5.4 x 4.2 x 57.1 x 53.6 x 99.9 x NA 27.0% 6.5% (54.8)% 71.6 % 9.4 % 5.9 % Freelancer 0.92 423 400 23 0 23.4 % (29.6)% 14.2 x 8.7 x NA NA NA NA 64.0% 54.7% 83.7% 86.7 % (7.9)% (7.4)% SciQuest 13.88 387 244 143 0 (18.0)% 7.0 % 2.3 x 2.2 x 11.5 x 10.4 x 47.9 x 41.6 x 4.7% 11.2% 15.1% 68.1 % 20.1 % 7.7 % Shopify 28.21 2,266 2,075 192 0 NA 9.3 % 10.1 x 6.3 x NA NA NA NA 60.1% 31.2% (34.3)% 54.1 % (5.9)% (5.6)% SPS Commerce 42.94 723 594 129 0 (36.0)% (38.8)% 3.7 x 3.1 x 26.3 x 22.6 x 51.1 x 45.8 x 21.4% 16.0% 11.6% 68.4 % 14.3 % 9.0 % Mean 815 710 109 4 (15.3)% (13.2)% 5.8 x 4.1 x 31.6 x 28.9 x 66.3 x 43.7 x 28.4% 27.2% 4.5% 67.6 % 2.3 % (3.8)% Median 423 400 129 0 (26.9)% (18.8)% 3.7 x 3.1 x 26.3 x 22.6 x 51.1 x 43.7 x 21.4% 23.6% 11.6% 68.4 % 1.4 % (5.6)%

47 TRADING & OPERATING METRICS

Finance & Administration Bottomline 30.49 1,156 1,191 130 166 11.4 % 2.6 % 3.5 x 3.3 x 27.8 x 15.5 x 21.3 x 18.8 x 8.1% 79.2% 13.6% 57.8 % 12.8 % 16.1 % Intuit 104.01 26,712 27,623 334 1,245 7.3 % 7.8 % 6.2 x 5.8 x 18.0 x 15.4 x 33.1 x 28.2 x 5.8% 17.0% 17.4% 84.0 % 34.3 % 19.5 % MYOB 2.51 1,469 1,757 26 315 NA 5.9 % 7.4 x 6.5 x 26.4 x 13.5 x NA 20.1 x 13.8% 95.8% 244.6% 61.1 % 27.9 % (18.3)% NetSuite 68.49 5,478 5,397 365 284 (26.2)% (19.1)% 7.3 x 5.6 x NA 64.5 x NA NA 29.8% 69.7% NA 66.9 % 6.7 % 2.2 % Tangoe 7.89 311 280 37 5 (42.8)% (6.0)% 1.3 x 1.2 x 14.2 x 14.2 x 22.5 x 23.3 x 4.9% 0.2% (3.2)% 54.1 % 9.0 % 6.2 % Xero 10.70 1,450 1,324 126 0 (40.8)% (21.2)% 10.4 x 6.5 x NA NA NA NA 61.2% 47.5% 8.8% 74.8 % (47.4)% (46.9)% Mean 6,096 6,262 170 336 (18.2)% (5.0)% 6.0 x 4.8 x 21.6 x 24.6 x 25.7 x 22.6 x 20.6% 51.6% 56.2% 66.4 % 7.2 % (3.5)% Median 1,459 1,541 128 225 (26.2)% (1.7)% 6.7 x 5.7 x 22.2 x 15.4 x 22.5 x 21.7 x 11.0% 58.6% 13.6% 64.0 % 10.9 % 4.2 %

Human Resources Benefitfocus 33.35 974 951 89 65 (9.4)% (8.4)% 5.1 x 4.1 x NA NA NA NA 26.4% 62.9% 36.9% 44.4 % (17.4)% (27.7)% Callidus 16.68 939 841 97 0 31.5 % (10.2)% 4.9 x 4.0 x 38.0 x 36.1 x 79.4 x 57.9 x 22.7% 5.3% 37.1% 61.6 % 12.8 % 6.6 % Cornerstone 32.77 1,796 1,784 245 233 13.4 % (5.1)% 5.3 x 4.1 x NA 48.3 x NA NA 26.6% NA 105.0% 67.7 % 1.0 % (6.4)% Freelancer 0.92 423 400 23 0 23.4 % (29.6)% 14.2 x 8.7 x NA NA NA NA 64.0% 54.7% 83.7% 86.7 % (7.9)% (7.4)% Halogen 7.32 159 123 36 0 0.9 % 42.0 % 1.9 x 1.7 x NA NA NA NA 11.3% NA 33.6% 73.8 % (4.0)% (10.4)% Instructure 17.94 491 400 91 0 NA (13.8)% 5.5 x 3.7 x NA NA NA NA 47.4% 1.1% 66.2% 67.1 % (67.9)% (69.1)% Paycom 35.60 2,103 2,079 51 26 11.0 % (5.4)% 9.3 x 6.7 x 43.2 x 32.1 x 89.0 x 66.7 x 38.4% 34.6% 33.5% 85.8 % 21.4 % 10.3 % Solium 5.23 257 205 53 0 (6.9)% 3.6 % 3.1 x 2.6 x 15.2 x 12.1 x 31.8 x 28.0 x 20.0% 25.7% 13.8% 43.8 % 20.2 % 12.4 % Ultimate Software 193.50 5,582 5,470 120 9 13.9 % (1.0)% 8.9 x 7.1 x 36.8 x 28.7 x 72.7 x 59.9 x 24.9% 28.5% 21.5% 61.4 % 24.0 % 12.8 % Upland 6.87 115 125 18 28 (2.0)% (2.6)% 1.8 x 1.7 x NA 12.8 x NA 34.8 x 3.9% NA 157.0% 61.9 % 1.0 % (7.4)% WageWorks 50.61 1,835 1,414 501 79 (5.1)% 11.5 % 4.2 x 3.9 x 14.6 x 12.9 x 40.2 x 36.4 x 8.2% 13.9% 10.4% 65.0 % 28.9 % 13.8 % Workday 76.84 14,984 13,522 1,969 507 (9.0)% (3.6)% 11.6 x 8.7 x NA 100.4 x NA NA 33.3% 61.9% NA 67.8 % 7.2 % (0.2)% Xactly 6.85 202 170 48 16 NA (19.7)% 2.2 x 1.8 x NA NA NA NA 24.8% 32.9% 42.5% 58.7 % (21.5)% (25.3)% Mean 2,297 2,114 257 74 5.6 % (3.2)% 6.0 x 4.5 x 29.6 x 35.4 x 62.6 x 47.3 x 27.1% 32.2% 53.4% 65.1 % (0.2)% (7.5)% Median 939 841 89 16 0.9 % (5.1)% 5.1 x 4.0 x 36.8 x 30.4 x 72.7 x 47.1 x 24.9% 30.7% 37.0% 65.0 % 1.0 % (6.4)%

Licensed Software Leaders IBM 151.45 145,525 177,223 8,194 39,892 (5.6)% 10.0 % 2.2 x 2.3 x 8.8 x 8.9 x 10.1 x 11.2 x (4.7)% (1.4)% (9.7)% 49.8 % 24.6 % 17.9 % Microsoft 55.23 436,831 379,385 102,314 44,868 35.9 % (0.5)% 4.3 x 4.0 x 14.8 x 11.1 x 20.5 x 19.5 x 7.4% 33.3% 5.1% 64.0 % 29.0 % 24.8 % Oracle 40.91 169,771 159,110 50,767 40,106 (5.2)% 12.0 % 4.3 x 4.2 x 9.4 x 9.1 x 15.9 x 14.8 x 1.1% 3.5% 7.1% 58.6 % 45.3 % 30.3 % SAP 80.84 96,846 103,098 3,734 9,986 11.8 % 0.7 % 4.6 x 4.1 x 12.3 x 12.1 x 19.6 x 17.6 x 11.1% 1.9% 11.4% 68.1 % 37.1 % 21.9 % Mean 212,243 204,704 41,252 33,713 9.2 % 5.6 % 3.8 x 3.7 x 11.4 x 10.3 x 16.5 x 15.8 x 3.7% 9.3% 3.5% 60.1 % 34.0 % 23.7 % Median 157,648 168,167 29,481 39,999 3.3 % 5.4 % 4.3 x 4.1 x 10.9 x 10.1 x 17.7 x 16.2 x 4.3% 2.7% 6.1% 61.3 % 33.1 % 23.4 %

48 TRADING & OPERATING METRICS

Marketing & Advertising Adobe 93.80 46,920 44,739 4,098 1,917 26.9 % (0.1)% 8.8 x 7.4 x 26.1 x 19.4 x 40.8 x 31.1 x 20.0% 34.9% 31.2% 84.7 % 33.8 % 23.0 % Alphabet 762.90 518,917 454,639 71,926 7,648 37.5 % (1.9)% 6.1 x 5.2 x 15.3 x 12.8 x 25.8 x 22.0 x 16.3% 20.1% 17.2% 62.4 % 39.5 % 27.3 % Bazaarvoice 3.15 256 204 109 57 (44.2)% (28.1)% 1.0 x 1.0 x NA NA NA NA 3.8% NA NA 61.6 % (1.3)% (4.1)% Callidus 16.68 939 841 97 0 31.5 % (10.2)% 4.9 x 4.0 x 38.0 x 36.1 x 79.4 x 57.9 x 22.7% 5.3% 37.1% 61.6 % 12.8 % 6.6 % Criteo 41.42 2,588 2,245 354 10 4.9 % 4.6 % 1.7 x 3.2 x 15.6 x 11.2 x 30.3 x 23.8 x (46.8)% 39.3% 27.5% 35.7 % 10.9 % 6.7 % Hubspot 43.62 1,514 1,410 105 1 9.3 % (22.5)% 7.8 x 5.6 x NA NA NA NA 37.8% 23.3% 4.1% 73.7 % (9.8)% (13.5)% Jive Software 3.78 289 187 106 4 (26.3)% (7.4)% 1.0 x 0.9 x NA NA NA NA 3.9% NA NA 63.1 % 3.2 % (5.0)% Marketo 19.57 869 764 107 3 (23.6)% (31.8)% 3.6 x 2.8 x NA NA NA NA 30.0% 46.4% 18.0% 65.6 % (7.0)% (12.4)% Nasmedia 42.89 354 337 17 0 46.2 % 0.9 % 29.8 x 7.1 x 134.4 x 25.5 x 67.2 x 32.0 x 320.5% 427.6% 110.0% 99.9 % 22.2 % 17.4 % Rubicon Project 18.28 862 723 140 0 2.0 % 11.1 % 2.9 x 2.5 x 12.2 x 12.4 x 17.7 x 24.7 x 17.9% (2.0)% (28.2)% 76.5 % 23.9 % 18.4 % salesforce.com 73.83 49,533 50,248 1,341 2,056 10.5 % (5.8)% 7.5 x 6.2 x 42.0 x 29.0 x 98.4 x 72.9 x 21.8% 44.5% 35.0% 75.2 % 18.0 % 7.4 % TechTarget 7.42 239 214 25 0 (35.6)% (7.6)% 1.9 x 1.8 x 8.7 x 7.2 x 21.8 x 17.2 x 9.0% 20.7% 27.1% 73.3 % 21.9 % 10.5 % TubeMogul 12.94 460 381 83 5 (6.4)% (4.9)% 2.1 x 1.7 x NA NA NA NA 25.3% NA NA 67.8 % 1.9 % (0.1)% Yahoo! 36.81 34,852 30,262 5,857 1,266 (17.2)% 10.7 % 6.1 x 8.5 x 31.8 x 40.1 x 62.4 x 68.5 x (28.7)% (20.8)% (9.0)% 58.2 % 19.2 % 11.2 % Mean 47,042 41,942 6,026 926 1.1 % (6.6)% 6.1 x 4.1 x 36.0 x 21.5 x 49.3 x 38.9 x 32.4% 58.1% 24.6% 68.5 % 13.5 % 6.7 % Median 904 803 108 4 3.4 % (5.3)% 4.3 x 3.6 x 26.1 x 19.4 x 40.8 x 31.1 x 19.0% 23.3% 27.1% 66.7 % 15.4 % 7.1 %

49 TRADING & OPERATING METRICS

Vertical Market ACI Worldwide 20.79 2,476 3,348 102 975 (4.0)% (2.9)% 3.2 x 3.3 x 12.9 x 12.9 x 25.7 x 40.4 x (3.8)% (0.2)% (36.4)% 54.8 % 24.8 % 9.2 % AppFolio 12.24 411 389 22 0 NA (16.2)% 5.2 x 3.8 x NA NA NA NA 36.7% 61.3% 60.8% 54.8 % (16.1)% (28.3)% Athenahealth 138.78 5,406 5,563 142 298 16.2 % (13.8)% 6.0 x 5.0 x 30.2 x 23.9 x 101.3 x 79.6 x 19.9% 26.5% 27.3% 60.4 % 19.9 % 5.9 % Blackbaud 62.89 2,885 3,279 15 409 32.7 % (4.5)% 5.1 x 4.5 x 20.3 x 18.4 x 42.2 x 32.3 x 15.0% 10.1% 30.6% 52.5 % 25.4 % 10.9 % Castlight Health 3.33 322 201 120 0 (57.1)% (22.0)% 2.7 x 2.0 x NA NA NA NA 33.5% 27.1% 28.7% 55.2 % (83.0)% (85.9)% Cvent 21.40 900 754 145 0 (23.7)% (38.7)% 4.0 x 3.3 x 27.5 x 26.3 x NA NA 22.5% 4.5% NA 68.2 % 14.6 % 4.8 % Descartes 19.49 1,477 1,435 42 0 29.2 % (2.8)% 7.8 x 7.0 x 23.6 x 20.7 x 35.2 x 25.6 x 10.1% 13.7% 37.5% 70.9 % 32.9 % 22.9 % Earthport 0.24 116 69 47 0 (62.8)% (33.4)% 2.3 x 2.1 x NA NA NA NA 9.6% 52.2% 4.3% 77.5 % (38.5)% (31.6)% Ebix 40.79 1,372 1,521 59 207 34.3 % 24.4 % 5.7 x 5.4 x 15.3 x 13.9 x 17.8 x 16.9 x 6.0% 10.4% 5.2% 72.7 % 37.4 % 30.1 % Ellie Mae 90.64 2,689 2,610 83 5 63.9 % 50.5 % 10.3 x 8.1 x 34.9 x 28.0 x 53.3 x 48.4 x 26.2% 24.4% 10.3% 67.1 % 29.4 % 20.6 % Envestnet 27.20 1,143 1,391 52 300 (51.5)% (8.9)% 3.3 x 2.4 x 18.3 x 14.4 x 27.5 x 27.7 x 37.6% 26.8% (1.0)% 28.5 % 18.1 % 9.0 % Fleetmatics 40.71 1,575 1,426 177 28 (9.2)% (19.8)% 5.0 x 4.1 x 14.8 x 12.3 x 25.9 x 23.0 x 20.9% 20.1% 13.0% 74.3 % 33.8 % 21.7 % GrubHub 25.13 2,125 1,815 311 0 (44.6)% 3.8 % 5.0 x 4.0 x 17.3 x 14.3 x 43.4 x 33.0 x 26.0% 20.6% 31.6% 61.3 % 29.0 % 13.7 % IDOX 0.72 258 294 6 42 21.5 % (5.4)% 3.0 x 2.6 x 12.6 x 9.6 x 18.8 x 13.7 x 17.5% 30.7% 37.3% 89.3 % 24.1 % 14.8 % Inovalon 18.52 2,810 2,363 728 282 (38.7)% 8.9 % 5.4 x 4.6 x 15.6 x 13.1 x 36.3 x 31.5 x 17.7% 18.7% 15.3% 66.6 % 34.7 % 17.3 % Instructure 17.94 491 400 91 0 NA (13.8)% 5.5 x 3.7 x NA NA NA NA 47.4% 1.1% 66.2% 67.1 % (67.9)% (69.1)% JUST EAT 5.43 3,672 3,387 284 0 (16.1)% (25.4)% 9.3 x 6.8 x 39.1 x 23.7 x 98.2 x 38.0 x 36.4% 65.2% 158.4% 90.2 % 23.7 % 9.6 % Linx 13.51 636 607 62 32 (7.5)% 20.8 % 5.3 x 4.2 x 17.6 x 16.9 x 35.2 x 26.6 x 27.2% 4.3% 32.3% 71.4 % 30.3 % 15.9 % Medidata Solutions 38.71 2,180 2,163 270 253 (21.1)% (21.5)% 5.5 x 4.7 x 24.3 x 20.2 x 42.5 x 38.5 x 17.3% 20.2% 10.4% 77.1 % 22.7 % 13.1 % MINDBODY 13.33 529 451 93 16 NA (11.9)% 4.5 x 3.3 x NA NA NA NA 33.0% 44.5% 60.8% 63.3 % (28.3)% (41.6)% MYOB 2.51 1,469 1,757 26 315 NA 5.9 % 7.4 x 6.5 x 26.4 x 13.5 x NA 20.1 x 13.8% 95.8% 244.6% 61.1 % 27.9 % (18.3)% NIC 18.03 1,199 1,101 98 0 2.0 % (8.4)% 3.8 x 3.5 x 14.5 x 13.6 x 28.6 x 26.7 x 6.9% 7.0% 7.0% 40.6 % 25.9 % 14.1 % OPOWER 6.81 362 302 61 1 (32.8)% (35.5)% 2.0 x 1.9 x NA NA NA NA 8.3% 4.1% 6.8% 62.3 % (6.4)% (15.2)% Playtech 12.48 4,026 3,590 932 496 8.0 % 1.7 % 5.2 x 4.3 x 14.8 x 10.8 x 25.3 x 15.9 x 21.1% 38.0% 59.2% 100.0 % 35.4 % 22.0 % Q2 Holdings 24.04 937 826 111 0 13.7 % (8.8)% 7.6 x 5.7 x NA NA NA NA 34.1% 46.3% 3.1% 45.7 % (7.5)% (12.8)% RealPage 20.84 1,640 1,649 31 40 3.5 % (7.2)% 3.5 x 2.9 x 17.9 x 13.9 x 38.6 x 29.4 x 21.7% 29.1% 31.3% 57.6 % 19.7 % 8.8 % Sabre 28.92 7,969 11,011 321 3,364 19.0 % 3.4 % 3.7 x 3.2 x 11.7 x 10.1 x 26.3 x 20.0 x 15.3% 15.9% 31.6% 34.3 % 31.8 % 10.4 % SS&C 63.42 6,263 8,580 434 2,751 1.8 % (7.1)% 8.6 x 5.7 x 19.4 x 13.1 x 23.8 x 19.7 x 49.9% 48.6% 21.2% 47.1 % 44.1 % 25.4 % Temenos 54.88 3,709 3,975 195 460 59.0 % 5.8 % 7.3 x 6.5 x 18.1 x 17.0 x 31.2 x 27.2 x 11.9% 6.8% 14.6% 70.8 % 40.5 % 22.7 % Textura 18.63 488 409 79 0 (31.5)% (13.7)% 4.7 x 3.8 x 40.2 x 21.0 x 88.7 x 44.8 x 24.4% 91.4% 98.2% 82.4 % 11.7 % 6.3 % Trakm8 3.71 111 114 2 6 119.0 % (29.4)% 3.7 x 3.0 x 29.1 x 16.6 x 31.6 x 22.4 x 24.6% 75.5% 40.9% 45.6 % 12.9 % 11.8 % TrueCar 5.59 467 381 112 27 (68.7)% (41.4)% 1.5 x 1.4 x NA NA NA NA 4.9% NA NA 90.9 % 2.9 % (4.4)% Urbanise 0.31 78 69 9 0 (55.6)% (32.7)% 9.5 x 6.9 x 51.2 x NA 89.4 x NA 37.7% (316.8)% (475.6)% 51.0 % 18.6 % 12.2 % Mean 1,885 2,037 160 312 (3.5)% (9.1)% 5.2 x 4.3 x 22.7 x 16.6 x 42.9 x 30.5 x 22.2% 19.5% 21.8% 64.0 % 12.9 % 1.4 % Median 1,372 1,426 93 27 (4.0)% (8.8)% 5.1 x 4.0 x 18.3 x 14.4 x 35.2 x 27.2 x 21.1% 22.5% 28.7% 63.3 % 23.7 % 10.4 %

50 TECHNOLOGY & TELECOM TEAM TECHNOLOGY & TELECOM TEAM

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

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

DAVID DESIMONE TEAK MURPHY BRANDON OVERMYER Director Director Associate Technology & Telecom Technology & Telecom Technology & Telecom

Boston Los Angeles Los Angeles

HIROKI HIGASHIHARA Analyst Technology & Telecom

Los Angeles