The Software Industry Financial Report

(858) (858) 509 [email protected] 92130 San CA Diego, 320 Suite 12220 El Real Camino L.L.C. SEG Capital Advisors, - 2800 Q2 2016 The Software Industry Financial Financial Report SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS

About Software Equity Group About SEG 5 SEG’s 2016 Transaction Announcements 6 Leaders in Software M&A 7 Public SaaS Company Financial and Valuation Performance The SEG SaaS Index 9 The SEG SaaS Index: Financial Performance 10-12 The SEG SaaS Index: Public Market Multiples 13-15 The SEG SaaS Index by Product Category: Financial Performance 16 Public Software Financial and Valuation Performance The SEG Software Index 18 The SEG Software Index: Financial Performance 19-21 The SEG Software Index: Public Market Multiples 22-23 The SEG Software Index by Product Category 24 The SEG Software Index by Product Category: Financial Performance 25-26 Public Internet Company Financial and Valuation Performance The SEG Internet Index 28 The SEG Internet Index: Financial Performance 29-31 The SEG Internet Index: Public Market Multiples 32-33 The SEG Internet Index by Product Category 34 The SEG Internet Index by Product Category: Financial Performance 35-36

SaaS/Software Industry M&A Market Update Software/SaaS M&A Deal Volume and Spending 38 SaaS M&A Deal Volume and Exit Multiples 39-41 SaaS M&A by Product Category 42 SaaS M&A 2Q16 Transactions 43-47 Software M&A Exit Multiples 48 Software M&A by Ownership Structure and Size 49 Software M&A by Vertical and Horizontal Markets 50 Software M&A Deal Volume by Product Category 51 Software M&A Exit Multiples by Product Category 52 About Software Equity Group 53

Appendix The SEG SaaS Index: Public Market Multiples (Annual) 55 The SEG SaaS Index: Financial Performance (Annual) 56 The SEG Software Index: Public Market Multiples (Annual) 57 The SEG Software Index: Financial Performance (Annual) 58 The SEG Internet Index: Public Market Multiples (Annual) 59 The SEG Internet Index: Financial Performance (Annual) 60 SEG SaaS Index Key Metrics 61-62 SEG SaaS Index Key Metrics by Product Category 63 SEG Software Index Key Metrics 64-67 SEG Software Index Key Metrics by Product Category 68-69 SEG Internet Index Key Metrics 70-72 SEG Internet Index Key Metrics by Product Category 73 2Q16 Select Public Sellers 74 2Q16 Mega Deals 75 2Q16 Most Active Buyers 76

SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved About SEG • Twenty-four year, exclusive focus on advisory services to B2B enterprise software companies in the lower middle Focus on market Advice • Advisory services encompass: • Strategic exit • Growth capital • Buyout Advisory • Inorganic growth via acquisition Boutiques • Fairness opinions and valuations • Board advisory services Multi- • Clients span virtually every technology, product Focus on Industry category, delivery model and financial profile Software • Global presence providing advice and guidance to more than 2,000 private and public companies throughout US, Bulge Bracket IB Boutiques Canada, Europe, Asia-Pacific, Africa and Israel Firms • Strong and highly collaborative cross-functional team leveraging transaction, operating, legal and engineering experience • Unparalleled software industry reputation, track record Multi-service and industry research • Highly referenceable base of past clients and buyers / investors Billions of dollars of lower market software deals, endless buyer and seller references, industry leading close rates, upper decile valuation results.

PUBLIC SaaS COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - SaaS: Median Metrics Measure 2Q15 3Q15 4Q15 1Q16 2Q16 • The SEG SaaS Index tracks public companies that primarily offer EV/TTM Revenue 6.3x 6.3x 5.9x 4.0x 4.4x hosted, on-demand software under a subscription and/or transaction EV/NTM Revenue 4.8x 4.5x 4.6x 3.4x 3.9x based pricing model. It is currently comprised of 65 publicly traded EV/TTM EBITDA 51.0x 38.5x 30.5x 32.7x 38.9x pure-play SaaS companies. EV/TTM CFO 48.1x 39.3x 38.5x 29.6x 33.6x • During 2Q16, seven companies in SEG’s SaaS Index announced an Gross Profit Margin 64.4% 65.4% 66.2% 67.1% 66.6% intent to be acquired. This, combined with a weak IPO market and EBITDA Margin -11.9% -10.5% -8.1% -6.2% -6.8% additional acquisition of our index companies, will lead to a smaller Net Income Margin -18.0% -17.9% -17.6% -16.8% -15.9% index by year-end 2016. TTM Revenue Growth 31.2% 29.0% 27.7% 28.9% 28.5% • See appendix for SEG SaaS Index public market multiples and TTM Total Revenue ($M) $149.4 $162.9 $176.1 $195.8 $202.7 financial performance on an annual basis. TTM EBITDA Growth 12.3% 25.8% 29.5% 20.7% 24.1% TTM Total EBITDA ($M) -$9.4 -$10.4 -$11.6 -$12.1 -$11.6 Cash & Eq ($M) $105.2 $110.4 $112.9 $107.2 $103.3 Debt / Equity Ratio 2.2% 2.2% 1.8% 1.7% 1.5%

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

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution– 2Q16

23% TTM Total Revenue ($M) TTM Revenue Growth

$250 35.0% 19% 19% $202.7 17% $195.8 30.0% TTM Revenue Growth $200 $176.1 $162.9 25.0% $149.4 13% $150 20.0% 8%

$100 15.0% % of Companies of % 10.0%

TTM Total Revenue Total TTM $50 5.0% 2% $0 0.0% 2Q15 3Q15 4Q15 1Q16 2Q16 <= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 10% <= 20% <= 30% <= 40% <= 50% TTM Revenue Growth • The median TTM revenue growth rate of Public SaaS companies in 2Q16 was 28.5%, down modestly from 31.2% YOY, but roughly equivalent to 1Q16’s 28.9% median mark. While median TTM revenue growth has slowed YOY, the quarter’s median growth rate remains impressive when considering Q2’s larger revenue base. Median TTM revenue of public SaaS companies was $202.7 million in 2Q16, compared to $149.4 million in 2Q15. • Median growth rates alone do not capture the standout performances of the most successful SaaS companies. In Q2, 30% of public SaaS companies grew TTM revenue by 40% or more year over year, compared with only eight percent of public on-premise software providers achieving growth of 40% or greater. As further testament to the widespread and ramping adoption of SaaS, these outperformers come from a variety of product categories including Healthcare, Human Capital Management, Life Sciences, Service Management, Security, CRM & Marketing, and Business Intelligence/Analytics.

Median EBITDA Margin Performance - Quarterly TTM EBITDA Margin Distribution– 2Q16

58%

2Q15 3Q15 4Q15 1Q16 2Q16

21% % of Companies of % (6.2%) (6.8%) 12%

EBITDA Margin EBITDA 5% (8.1%) 4% (10.5%) <= 0% > 0% > 10% > 20% > 30% (11.9%) <= 10% <= 20% <= 30% TTM EBITDA Margin • The median EBITDA margin in 2Q16 was -6.8%, roughly equivalent with 1Q16 (-6.2%) and has been steadily trending toward positive territory since 4Q14. • While the majority of public SaaS companies continue to post GAAP losses (58% of our index in Q2), due to significant levels of deferred revenue, approximately two thirds of public SaaS companies generated positive cash flow from operations in Q2. • Select Public SaaS companies posting negative EBITDA Margin while generating positive cash flow from operations during Q2 include: Hubspot (-20.6% EBITDA Margin, $3.6M CFO); New Relic (-32.4% EBITDA Margin, $4.0M CFO); Q2 Holdings (-15.7% EBITDA Margin, $8.2M CFO); Shopify (-6.9% EBITDA Margin, $12.5M CFO); Workday (-15.5% EBITDA Margin, $327.9M CFO) and Zendesk (-31.6% EBITDA Margin, $15.1M CFO).

Median Operating Ratios Median Margin Performance

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

67.1% 45% 70% 64.4% 65.4% 66.2% 66.6%

40% 60%

35% 50%

30% 40%

25% 30%

20% 20% % Margin%

% of Revenue of % 15% 10%

10% 0% 2Q15 3Q15 4Q15 1Q16 2Q16 -10% 5% -8.1% -6.2% -6.8% -10.5% -20% -11.9% 0% -18.0% -17.9% -17.6% -16.8% -15.9% 2Q15 3Q15 4Q15 1Q16 2Q16

• Public SaaS companies continue to spend heavily on sales & marketing in order to drive revenue growth and capture market share. In 2Q16, public SaaS companies invested a median 38.3% of total revenue on sales & marketing, almost double their on-premise counterparts. However, this represents a modest decline from the 40.6% S&M spend in 2Q15. R&D spend as a percent of revenue held relatively flat year over year (19.2% in 2Q16 vs. 19.7% in 2Q15). • Median EBITDA and Net Income margins have trended in a positive direction over the past year, along with a hike in median gross profit margin (66.6% in 2Q16). • I.e. - As the average company size in our Public SaaS Index grows larger ($202.7M in 2Q16 vs. $149.4M in 2Q15), some are beginning to see the benefits of scale. A key example being Hubspot. Over the past three years, Hubspot has seen its gross profit margin increase from 62% in 1Q13 to 76% today. While the company’s professional services related COGS (ie. cost to implement & train new customers) has stayed relatively flat as a percent of revenue (largely floating between 8-10%), its subscription support related COGS (ie. hosting and customer support costs) has declined from nearly 30% of revenue in 1Q13 to approximately 15% today. Over the same time period, Hubspot has accelerated growth (greater than 50% YOY each of the past 7 quarters) while materially reducing its aggregate operational expenditures from 107% of revenue in 1Q13 to 93% today. These economies of scale allowed Hubspot to generate positive cash flow from operations for the first time this past quarter.

Median EV/Revenue and EV/EBITDA - Quarterly EV/Revenue Multiple Distribution– 2Q16

EV/TTM Revenue EV/EBITDA 13% 13% 51.0x 11% 11% 11% 11%

38.9x 38.5x 8% 8% 32.7x

30.5x 6% 6% % of Companies of % 6.3x 6.3x 5.9x 4.0x 4.4x

2Q15 3Q15 4Q15 1Q16 2Q16 <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x > 9.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x <= 7.0x <= 8.0x <= 9.0x EV/Revenue • At the close of 2Q16, the median market multiple of public SaaS companies was 4.4x EV/Revenue, up from last quarter’s median multiple of 4.0x, but still significantly below recent years past. • In 2Q16, 11% of public SaaS companies achieved a median EV/Revenue multiple of 9x or higher, significantly higher than 1Q16 when only five percent of our public SaaS index was valued at 9.0x or higher. The markets have rebounded from Q1’s precipitous drop, but Public SaaS company “high fliers” are few and far between compared with our 2Q15 and 2Q14 Quarterly Reports, when 36% and 25% of our Public SaaS Index traded at 9.0x EV/Revenue or higher, respectively. • Investors and larger strategic buyers have clearly taken note of softening valuations for public SaaS companies. During Q2, seven public SaaS companies (over 10 percent of our index) announced an intent to be acquired by either private equity firms or strategic buyers. The list includes: Demandware’s acquisition by Salesforce; OPOWER & Textura each being acquired by Oracle; InContact’s acquisition by Nice Systems; Cvent & Marketo each being taken private by Vista Equity Partners and Sciquest being taken private by Accel-KKR. Please reference slides 39-42 for additional SaaS M&A transaction detail.

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q16 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q16

7.3x 7.2x

5.3x

5.4x 4.6x 4.2x 4.0x 4.0x 4.4x

2.5x Median EV/Revenue Median

1.3x Median EV/Revenue Median 0.5x

<= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 0% > 0% > 10% > 20% > 30% <= 10% <= 20% <= 30% <= 40% <= 50% <= 10% <= 20% <= 30% TTM Revenue Growth TTM EBITDA Margin • The highest growth SaaS companies received a median 7.2x EV/Revenue multiple in 2Q16, a healthy increase over 1Q16’s 6.3x median multiple and a 63% premium over SEG’s 2Q16 median EV/Revenue multiple of 4.4x for all publicly traded SaaS companies. In comparison, those generating revenue growth greater than 50% in 2Q15 received a median 11.9x EV/Revenue multiple and 98% premium to 2Q15’s 6.0x EV/Revenue median multiple across all public SaaS companies. • The steep YOY decline in median EV/Revenue for this high growth cohort can be attributed to: • 1) A general decline in public SaaS valuations year over year as macro economic concerns and an election year have some investors fleeing high growth small cap SaaS stocks; • 2) Those companies posting significant growth at any cost have fallen out of favor with investors. As an example, Hortonworks posted a median 14.1x TTM revenue multiple in 2Q15 on the back of 95% revenue growth, but negative 314% EBITDA margin and negative $104 million CFO. During 2Q16, the company grew revenue 136%, generated negative 140% EBITDA margin and negative $106 million CFO, and posted median 3.8x EV/Revenue. • 3) 50%+ growth SaaS businesses from 2Q15 that have seen revenue growth fall under 50% in 2Q16 due, predominantly, to either size (Workday & ServiceNow) or increased competitive pressure. Tableau has seen its revenue growth and multiple fall from 75% and 15.5x EV/Revenue in 2Q15, respectively, to 48% and 4.1x EV/Revenue, in 2Q16 respectively, as competitive pressures across business intelligence, analytics and big data heat up. • The most profitable SaaS companies posted a median 5.3x EV/Revenue multiple during 2Q16, a 20% premium over the Index median 4.4x EV/Revenue. In comparison, the same cohort received a 5.5x EV/Revenue multiple in 2Q15, which equated to an eight percent discount to that quarters 6.0x Index median.

TTM EV TTM Revenue EV/ TTM EBITDA EV/ Company Ticker (Median) Revenue Growth Revenue EBITDA Margin EBITDA NantHealth, Inc. NH $1,823.3 $66.0 70.9% 27.6x -$81.9 -124.0% - • When the SEG SaaS Index is segmented on the basis of Twilio, Inc. TWLO $2,549.6 $192.9 86.6% 13.2x -$30.5 -15.8% - median EV/Revenue multiple, the top 25% boasted an Workday WDAY $13,536.4 $1,256.8 43.0% 10.8x -$194.4 -15.5% - impressive median 8.8x in 2Q16, up from 1Q16’s 7.9x Atlassian Corp TEAM $4,322.0 $421.3 - 10.3x $13.8 3.3% 313.6x multiple, but down significantly year over year when Service-now.com NOW $11,003.9 $1,099.4 45.5% 10.0x -$102.3 -9.3% - compared to 2Q15’s 12.0x mark. Shopify SHOP $2,221.3 $240.6 94.7% 9.2x -$16.7 -6.9% - Ellie Mae ELLI $2,482.4 $273.4 48.9% 9.1x $47.4 17.3% 52.4x Top 25% • These SaaS high flyers are market leaders in a wide Paycom Software PAYC $2,327.2 $259.6 53.4% 9.0x $61.0 23.5% 38.2x array of SaaS categories including Healthcare Paylocity Holding PCTY $1,838.5 $210.9 49.2% 8.7x $4.9 2.3% 374.4x (NantHealth); Communications (Twilio); Development Ultimate Software Group ULTI $5,567.4 $660.4 24.7% 8.4x $64.4 9.7% 86.5x Tools (Atlassian); ERP (Workday); Service Zendesk ZEN $1,920.9 $235.0 63.0% 8.2x -$74.2 -31.6% - Management (ServiceNow); Human Capital Veeva Systems VEEV $3,399.3 $439.1 30.5% 7.7x $87.4 19.9% 38.9x Management (Paycom); Marketing Automation Netsuite N $6,130.5 $792.9 32.6% 7.7x -$62.9 -7.9% - (Hubspot); eCommerce (Shopify); and CRM & Salesforce.com CRM $52,960.0 $7,072.7 25.0% 7.5x $522.3 7.4% 101.4x Marketing (HubSpot). HubSpot HUBS $1,455.0 $202.7 56.1% 7.2x -$41.9 -20.6% - Q2 Holdings QTWO $847.6 $118.5 37.0% 7.2x -$18.6 -15.7% - • The median TTM revenue growth rate of those in the top 25% percentile was 48.9%. Additionally, while inContact SAAS $608.7 $233.0 25.2% 2.6x $1.5 0.6% 403.9x only seven companies in the top rank generated Mimecast MIME $367.9 $141.8 22.2% 2.6x $8.0 5.6% 46.3x positive EBITDA margin in 2Q16, 14 of the 16 ChannelAdvisors ECOM $261.3 $104.3 18.4% 2.5x -$7.0 -6.7% - companies generated positive cash flow from SciQuest SQI $255.5 $106.3 3.7% 2.4x $9.4 8.9% 27.1x operations. Only NantHealth and Twilio, which both Amber Road AMBR $144.5 $68.9 5.9% 2.1x -$20.6 -30.0% - IPO’d during the quarter, posted negative CFO. Upland Software UPLD $138.0 $70.0 5.2% 2.0x $1.7 2.4% 81.8x TrueCar TRUE $477.5 $263.1 18.9% 1.8x -$38.0 -14.4% - Bottom 25% • In contrast, the median TTM revenue growth rate of IntraLinks Holdings IL $485.3 $280.6 6.7% 1.7x $11.1 4.0% 43.7x those comprising the bottom 25% of EV/Revenue Halogen Software TSX:HGN $110.2 $67.4 14.2% 1.6x -$3.0 -4.4% - multiples was a meager 6.0%. In addition to lagging LivePerson LPSN $309.8 $234.7 5.8% 1.3x $16.4 7.0% 18.9x revenue growth, the bottom quartile posted median Tangoe TNGO $279.8 $219.4 5.7% 1.3x $9.6 4.4% 29.0x EBITDA margin of negative 5.1% and only eight of 16 Bazaarvoice BV $230.4 $199.8 4.5% 1.2x -$15.0 -7.5% - companies generated positive CFO. Median Jive Software JIVE $191.3 $199.3 7.9% 1.0x -$19.1 -9.6% - EV/Revenue for the group was 1.7x in 2Q16. Marin Software MRIN $58.8 $109.3 6.2% 0.5x -$15.7 -14.4% - Medical Transcript MTBC $11.4 $22.1 0.8% 0.5x -$1.3 -5.9% - Covisint COVS $36.8 $76.0 -14.1% 0.5x -$11.3 -14.9% - SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 15 THE SEG SaaS INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE (YOY COMPARISON)

2Q16 vs. 2Q15 Median TTM Revenue Growth 2Q16 vs. 2Q15 Median TTM EBITDA Margin

36.3%37.0% 6.6%7.8% 33.9%

29.1% 28.5%28.0% 26.3% 22.9% (2.2%) 2Q16 2Q16 2Q15 (8.3%)(7.9%) 2Q15 (11.3%) (11.0%)

(18.8%) Human Capital Vertically Focused ERP & Supply Chain CRM & Marketing Management Human Capital Vertically Focused ERP & Supply CRM & Marketing Management Chain

2Q16 vs. 2Q15 Median EV/Revenue Multiples 2Q16 vs. 2Q15 Median EV/EBITDA Multiples

8.2x

7.2x 195.5x 6.7x 6.3x 5.8x 5.4x 5.5x 4.6x 2Q16 101.4x 2Q15 2Q15 2Q16 65.7x 62.3x 55.7x 45.8x 34.3x 27.1x

Human Capital Vertically Focused ERP & Supply CRM & Marketing Human Capital Vertically Focused ERP & Supply CRM & Marketing Management Chain Management Chain

PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - Software: Median Metrics Measure 2Q15 3Q15 4Q15 1Q16 2Q16 • The SEG Software Index tracks public software companies that EV/TTM Revenue 3.3x 3.2x 2.8x 2.5x 2.7x primarily offer on-premise software under a perpetual license with EV/NTM Revenue 3.1x 2.6x 2.7x 2.7x 2.5x annual M&S. EV/TTM EBITDA 16.7x 15.6x 15.0x 14.4x 15.7x • The SEG Software Index is currently comprised of 128 public EV/TTM CFO 17.0x 15.6x 16.0x 15.7x 16.7x software companies*, down from 218 in 1Q08 (the quarter in which Gross Profit Margin 64.6% 63.5% 63.8% 63.4% 63.7% we began publishing individual Software, SaaS and Internet indices). EBITDA Margin 16.6% 17.4% 17.2% 17.3% 16.8% Net Income Margin 7.3% 7.7% 6.8% 7.5% 6.1% • The number of public companies comprising the SEG Software Index TTM Revenue Growth 8.6% 8.0% 7.4% 7.6% 7.3% has declined steadily over the past ten years, as many on premise TTM Total Revenue ($M) $593.6 $597.3 $609.5 $668.4 $680.1 providers have been acquired, taken private or migrated to a SaaS TTM EBITDA Growth 4.8% 6.0% 6.9% 6.4% 6.4% business model. TTM Total EBITDA ($M) $80.9 $86.8 $87.1 $93.4 $90.2 • See appendix for SEG Software Index public market multiples and Cash & Eq ($M) $220.6 $243.3 $250.5 $255.4 $227.0 financial performance on an annual basis Debt / Equity Ratio 7.3% 6.4% 10.2% 10.4% 16.9%

* A number of on-premise software companies are transitioning to subscription based delivery and pricing models; however their SaaS revenue contribution is insufficient for them to be deemed primarily SaaS. ** See appendix for a complete list of companies in The SEG Software Index and detailed financial and trading metrics

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution - 2Q16

TTM Total Revenue ($M) TTM Revenue Growth 30% $800 9.0% 27% $700 8.5% $600 22% 8.0% $500 $400 7.5% $300 7.0% Companies of % 8% 8%

TTM Total Revenue Total TTM $200

TTM Revenue Growth Revenue TTM 5% 6.5% $100 $0 6.0% 2Q15 3Q15 4Q15 1Q16 2Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • The median TTM revenue growth rate of public on-premise software companies decreased modestly to 7.3% in 2Q16 from 7.6% in 1Q16 TTM Revenue Growth and 8% in 2Q15. With 57% of public on-premise software providers posting revenue growth of less than 10% in 2Q16, SEG’s Software Index has now experienced single digit median TTM revenue growth since 3Q13. • The few public on-premise software companies growing revenue 30%+ were focused on two of IT’s hottest product categories: security (Palo Alto Networks, 53.4% and CyberArk, 47.5%) and mobility (Momo, 141.6%). • Median TTM revenue for the publicly traded on-premise software providers was $680.1 million in 2Q16, an increase of 14.6% from 2Q15’s $593.6 million. In comparison, median TTM revenue for our SaaS Index grew 35.7% over the same period ($202.7 million in 2Q16 vs. 149.4 million in 2Q15).

Median EBITDA Performance - Quarterly TTM EBITDA Margin Distribution - 2Q16

17.4% 17.2% 17.3% 25% 16.6% 16.8% 23%

18% 17%

12%

EBITDA Margin EBITDA % of Companies of %

2Q15 3Q15 4Q15 1Q16 2Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% • Median TTM EBITDA margin for the SEG Software Index has hovered TTM EBITDA Margin around 17% for the past five quarters. Buoyed by high margin maintenance and support streams from long tenured customers, many on- premise providers have been able to maintain healthy profits while attempting to fend off cloud competition. • As an example, Microstrategy, a provider of on-premise business intelligence software, posted negative 7.2% growth in 2Q16 while maintaining 27.4% EBITDA margin, as it counts over 50% of its revenue from highly profitable maintenance and support contracts. Over its three most recent fiscal years, Microstrategy has seen net revenue from license sales decline by $28 million to reach $119 million, net revenue from subscription sales increase by $16 million to reach $28 million, net revenue from services decrease $37 million to reach $101 million and net revenue from maintenance contracts increase $4 million to reach $282 million. Microstrategy has a tough road ahead as the market has been flooded with new cloud BI and analytics vendors in recent years.

Median Operating Ratios Median Margin Performance

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

25% 70% 64.6% 63.5% 63.8% 63.4% 63.7%

60% 20%

50%

15% 40%

30%

10% Margin% % of Revenue of %

20% 16.6% 17.4% 17.2% 17.3% 16.8%

5% 7.7% 10% 7.3% 6.8% 7.5% 6.1%

0% 0% 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16

• As a percent of revenue, on-premise software companies spent a median 22.8% on sales and marketing activities, 15.8% on research and development and 10.5% on general and administrative functions in 2Q16. This represents a slight year over year increase from 2Q15’s 21.7%, 15.4% and 10.4% expense contributions, respectively. • In aggregate, median operating expenses totaled 49.1% during 2Q16, a modest increase over 2Q15’s 47.5% aggregate number. Comparatively, publicly traded SaaS companies spent 75.8% of revenue on operational expenses in 2Q16, a modest decline from 2Q15’s 78.9% aggregate spend.

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

Revenue Greater Than $1 billion Revenue Between $500 million & $1 billion EV/TTM Revenue EV/EBITDA Revenue Between $100 million & $500 million Revenue Less Than $100 million 16.7x 15.7x 4.5x 15.6x 15.0x 14.4x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x Median Multipe Median 3.3x 3.2x 2.8x 2.5x 2.7x EV/Revenue Median 1.0x 0.5x 0.0x 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16

• The median EV/Revenue market multiple for public on-premise • During 2Q16, the median EV/Revenue multiple for on-premise software providers was 2.7x in 2Q16. software providers increased across all size cohorts as the software industry rebounded from Q1’s stock market turmoil. As in quarters • The 2.5-3.5x median EV/Revenue multiple that’s prevailed over the past, however, scale and profitability played a significant role in past five quarters, despite lackluster growth, reflects the importance ascribing value to slower growth software companies: of stability and profitability to investors in the current market. • $1 billion+ TTM revenue companies received a median 3.3x • For the remainder of 2016, we believe investors will continue to find TTM revenue and posted median 24.3% EBITDA margin; comfort in the many profitable and large companies comprising SEG’s Software Index as a hedge against global economic concerns, slower • $500-$1 billion revenue companies were valued at median projected IT spend and an election year. 2.8x TTM revenue and posted median 15.8% EBITDA margin; • Over 80% of companies in SEG’s Software Index generated • $100-$500 million revenue companies were valued at positive EBITDA margin in Q2, along with nearly half of median 2.5x TTM revenue and posted median 8.4% EBITDA companies in the index generating revenue greater than one margin billion dollars. • Companies generating revenue of less than $100 million were valued at median 2.2x TTM revenue and posted median 2.7% EBITDA margin SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 22 THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q16 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q16

7.3x 4.3x

3.3x 3.0x 4.4x 2.5x 2.2x 3.0x

1.5x 2.2x Median EV/Revenue Median Median EV/Revenue Median 1.9x 1.3x

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

• While market performance of on-premise public software companies • As in quarters past, the median market multiples of on-premise remains closely correlated with their ability to sustainably drive software companies generally reflected their median operating profits, a select group of companies able to generate significant margins. revenue growth in Q2 were rewarded by the street with a median • On-premise providers with EBITDA margins greater than 40% can be 4.3x EV/Revenue multiple. found in product categories requiring high technical barriers to entry • Members of Q2’s 30%+ growth club that rewarded investors or provide products difficult to deploy via the cloud. handsomely during the quarter came from a number of product • As an example, engineering simulation and optimization categories, including Business Intelligence, Security and Network solutions developed by Aspen Technology are highly Performance Management: Splunk (48.5% TTM revenue growth, 8.0x technical and not easily deployed through a browser. The EV/Revenue), Palo Alto Networks (53.4% TTM revenue growth, 9.5x company has consistently maintained double digit revenue EV/Revenue), and Proofpoint (36.1% TTM revenue growth, 8.0x growth and 40%+ EBITDA margin each of the last 5 quarters, EV/Revenue). posting 10.5% growth and 46.4% EBITDA margin in 2Q16.

SEG Software Index

EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin Category 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16

Billing & Service Management 2.0x 1.8x 1.7x 2.0x 2.0x 9.1x 10.0x 9.6x 8.8x 10.9x 7.6% 3.1% -0.4% 0.2% 0.6% 27.1% 27.2% 23.9% 21.2% 22.1%

Business Intelligence 3.8x 3.1x 3.3x 2.8x 3.0x 18.9x 16.9x 16.5x 14.9x 14.3x 9.7% 11.4% 10.1% 10.0% 11.4% 12.4% 18.5% 17.2% 14.9% 15.2%

Development Platforms 2.5x 2.4x 2.3x 2.7x 2.8x 9.6x 9.3x 8.2x 9.1x 9.1x 7.2% 10.6% 11.5% 11.1% 10.2% 18.9% 19.0% 18.6% 18.0% 17.5%

Engineering & PLM 3.3x 3.4x 3.5x 3.3x 3.9x 16.4x 17.0x 16.3x 15.6x 17.0x 8.7% 8.4% 7.5% 0.7% 1.3% 21.5% 22.9% 22.4% 19.3% 17.6%

Enterprise Resource Planning 4.1x 3.9x 3.9x 3.9x 4.1x 16.3x 15.8x 15.3x 16.0x 14.8x 6.8% 4.8% 6.1% 4.8% 3.6% 26.9% 26.7% 27.1% 26.9% 26.7%

Financial & Accounting 4.1x 4.1x 4.1x 3.3x 3.0x 16.4x 16.1x 15.6x 15.9x 16.6x 5.5% 5.4% 4.7% 4.8% 4.0% 22.2% 22.3% 22.6% 24.9% 24.2%

Gaming 1.6x 2.0x 2.2x 2.1x 2.4x 14.4x 18.6x 17.3x 17.9x 18.8x 2.6% 5.9% 4.4% 8.4% 9.3% 13.0% 9.2% 9.8% 16.7% 25.6%

Healthcare 2.4x 2.3x 2.4x 2.0x 2.3x 15.2x 14.9x 15.3x 14.8x 17.0x 8.0% 10.0% 9.9% 6.6% 8.2% 12.9% 12.6% 13.0% 12.5% 11.8%

IT Conglomerates 3.1x 3.9x 3.9x 3.9x 4.0x 8.8x 9.5x 9.5x 9.6x 10.5x -0.1% -1.1% -3.5% -4.3% -3.1% 30.8% 30.2% 30.1% 27.5% 27.7%

Mobile Solutions/Content 1.9x 1.7x 1.9x 1.7x 1.8x 18.5x 19.7x 16.2x 20.7x 17.1x 30.4% 25.5% 19.4% 21.7% 14.4% 1.0% -3.7% 1.3% 2.5% -0.5%

Networking & Network 2.2x 2.5x 2.3x 1.9x 1.8x 13.1x 12.6x 10.9x 9.8x 10.9x 14.7% 4.3% 4.9% 5.0% 6.4% 18.4% 19.5% 18.0% 14.2% 9.3% Performance Management

Security 4.1x 3.6x 3.6x 3.3x 3.0x 16.0x 12.7x 13.1x 12.4x 13.3x 12.6% 8.8% 16.2% 29.5% 17.4% 2.2% 1.6% 1.1% 2.6% 2.6%

Storage, Data Management & 2.1x 2.1x 2.1x 2.0x 2.1x 8.3x 8.4x 9.0x 9.5x 8.6x 3.1% 1.5% 2.8% 1.7% 0.0% 15.7% 12.1% 11.3% 10.7% 11.4% Integration

Systems Management 4.8x 3.9x 3.7x 2.9x 3.1x 19.0x 16.7x 16.4x 13.3x 13.9x 14.4% 5.6% 11.4% 10.1% 8.7% 24.9% 23.7% 22.7% 25.9% 26.1%

Vertical - Finance 4.5x 4.9x 4.9x 4.9x 5.0x 14.2x 14.0x 13.8x 14.1x 16.0x 8.6% 7.1% 6.6% 7.4% 7.4% 34.4% 34.8% 32.7% 32.9% 32.7%

Vertical - Other 5.0x 5.2x 5.1x 4.5x 4.5x 32.3x 31.3x 28.8x 19.4x 19.4x 13.3% 14.1% 12.5% 13.9% 18.2% 12.9% 13.8% 14.9% 16.4% 15.2%

Median 3.3x 3.2x 2.8x 2.5x 2.7x 16.7x 15.6x 15.0x 14.4x 15.7x 8.6% 8.0% 7.4% 7.6% 7.3% 16.6% 17.4% 17.2% 17.3% 16.8%

*The SEG Software Index is segmented into 16 product categories. *Among these product categories, market multiples, TTM growth rates and EBITDA margins fluctuate considerably from quarter to quarter due to public market conditions and investor sentiment. *See Appendix for the complete list of companies within each product category.

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2Q16 vs. 2Q15 Median TTM Revenue Growth

30.4%

2Q16 17.4% 18.2% 14.4% 14.7% 14.4% 2Q15 12.6% 13.3% 11.4% 9.7% 10.2% 9.3% 8.7% 8.2%8.0% 8.7% 8.6% 7.6% 7.2% 6.8% 7.4% 5.5% 6.4% 3.6% 4.0% 2.6% 3.1% 0.6% 1.3%

(3.1%) (0.1%) 0.0% Billing & Service Business Development Engineering & Enterprise Financial & Gaming Healthcare IT Conglomerates Mobile Networking & Security Storage, Data Systems Vertical - Finance Vertical - Other Management Intelligence Platforms PLM Resource Planning Accounting Solutions/Content Network Management & Management Performance Integration Management

2Q16 vs. 2Q15 Median EV/Revenue Multiples

5.0x 5.0x 4.8x 4.5x 4.5x 4.1x 4.1x 4.0x 4.1x 3.8x 3.9x 4.1x 3.3x 3.1x 3.0x 3.0x 3.0x 3.1x 2Q16 2.8x 2.5x 2.4x 2.4x 2.3x 2.2x 2.1x 2.1x 2.0x 2.0x 1.9x 1.8x 2Q15 1.6x 1.8x

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2Q16 vs. 2Q15 Median TTM EBITDA Margin

34.4% 32.7% 30.8% 27.7% 27.1% 26.7%26.9% 25.6% 26.1% 24.2% 24.9% 22.1% 21.5% 22.2% 18.9% 17.5% 17.6% 18.4% 15.2% 15.7% 15.2% 2Q16 12.4% 13.0% 12.9% 12.9% 11.8% 11.4% 2Q15 9.3%

2.6%2.2% 1.0%

(0.5%) Billing & Service Business Development Engineering & Enterprise Financial & Gaming Healthcare IT Conglomerates Mobile Networking & Security Storage, Data Systems Vertical - Finance Vertical - Other Management Intelligence Platforms PLM Resource Accounting Solutions/Content Network Management & Management Planning Performance Integration Management

2Q16 vs. 2Q15 Median EV/EBITDA

32.3x

19.4x 18.9x 18.8x 18.5x 19.0x 17.0x 17.0x 17.1x 16.4x 16.3x 16.4x16.6x 16.0x 16.0x 14.8x 15.2x 14.3x 14.4x 13.9x 14.2x 2Q15 13.1x 13.3x 10.9x 10.5x 10.9x 2Q16 9.1x 9.6x 9.1x 8.8x 8.3x8.6x

Billing & Service Business Development Engineering & Enterprise Financial & Gaming Healthcare IT Conglomerates Mobile Networking & Security Storage, Data Systems Vertical - Finance Vertical - Other Management Intelligence Platforms PLM Resource Accounting Solutions/Content Network Management & Management Planning Performance Integration Management SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 26 THE SEG INTERNET INDEX

PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - Internet: Median Metrics Measure 2Q15 3Q15 4Q15 1Q16 2Q16 • The SEG Internet Index tracks public companies that primarily offer EV/TTM Revenue 2.3x 2.0x 1.9x 1.9x 2.0x B2C services or predominantly generate revenue via advertising over EV/NTM Revenue 2.2x 1.7x 1.8x 1.7x 1.8x the internet. EV/TTM EBITDA 20.4x 18.2x 19.6x 17.9x 18.2x • The SEG Internet Index is currently comprised of 95 public Internet EV/TTM CFO 18.8x 17.6x 18.5x 17.0x 17.2x companies*. Gross Profit Margin 62.7% 62.4% 62.5% 61.9% 61.8% • See appendix for SEG Internet Index public market multiples and EBITDA Margin 7.1% 6.6% 6.9% 7.3% 7.1% financial performance on an annual basis Net Income Margin 0.5% 0.1% -0.2% 0.1% 0.8% TTM Revenue Growth 17.7% 17.2% 15.9% 13.9% 14.5% TTM Total Revenue ($M) $452.7 $479.5 $510.9 $527.1 $518.9 TTM EBITDA Growth 12.0% 12.6% 9.4% 7.8% 11.6% TTM Total EBITDA ($M) $27.8 $27.1 $25.6 $30.6 $28.4 Cash & Eq ($M) $197.9 $189.8 $174.9 $207.3 $183.3 Debt / Equity Ratio 3.5% 5.3% 8.6% 7.0% 7.7%

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

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution - 2Q16

TTM Total Revenue ($M) TTM Revenue Growth 28%

$540 19.0% 18.0%

$520 TTM TTM Revenue Growth 17.0% 18% $500 16% 16% 16.0% 15% $480 15.0%

$460 14.0% 13.0% Companies of % 7% $440

12.0% Median TTM Revenue TTM Median $420 11.0% $400 10.0% 2Q15 3Q15 4Q15 1Q16 2Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM Revenue Growth • After declining considerably from 17.7% in 2Q15 to 13.9% in 1Q16, the median TTM revenue growth of the SEG Internet Index rose slightly in 2Q16 to 14.5%. • Once again demonstrating the Internet is an ecosystem of unequals, 16% of public Internet providers far outpaced the pack, posting TTM revenue growth greater than 40% in 2Q16. These high flyers included 58.com (182.7%), Netease (108.0%), and YY (53.7%). • Conversely, 43% of public Internet companies struggled to advance, reporting TTM revenue growth of 10% or less in 2Q16. The slow growers included Synacor, Yahoo!, Limelight Networks, Brightcove, and Monster Worldwide.

Median EBITDA Performance - Quarterly TTM EBITDA Margin Distribution - 2Q16

7.3% 32% 7.1% 6.9% 7.1% 6.6% 25%

18% % of Companies of % 12%

10% EBITDA Margin EBITDA

2Q15 3Q15 4Q15 1Q16 2Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM EBITDA Margin • After rising from 6.9% in 4Q15 to 7.3% in 1Q16, the median EBITDA margin of the SEG Internet Index declined to 7.1% in 2Q16. Additionally, roughly 30% of SEG Internet Index companies were unprofitable during the quarter. • At the other end of the spectrum, 3% of public Internet companies, mostly those with significant transaction or advertising revenue, achieved EBITDA margins above 40%, led by VeriSign (63.6%), Facebook (47.7%) and Tencent Holdings (42.1%). • With few exceptions, many of the most profitable public Internet companies reported stellar TTM revenue growth. Among them were Tencent Holdings (42.1% EBITDA margin, 35.6% revenue growth); Facebook (47.7% EBITDA margin, 46.3% revenue growth) and Baidu.com (25.6% EBITDA margin, 32.9% revenue growth).

Median Operating Ratios Median Margin Performance

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

30% 70% 62.7% 62.4% 62.5% 61.9% 61.8%

25% 60%

50% 20%

40% 15%

30%

% Margin% % of Revenue of % 10% 20%

5% 10% 7.1% 6.6% 6.9% 7.3% 7.1%

0.5% 0.8% 0% 0.1% 0.1% 0% 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16

• Median spending on operations by public Internet companies in 2Q16 was consistent with historic norms: 13.3% for research & development, 24.9% for sales & marketing, and 12.7% for general & administrative. • Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat. • The median R&D spend as a percent of total revenue was the lowest among our three tracking indices. • Public Internet companies have kept their cost structures in line, resulting in a median EBITDA margin of 7.1% in 2Q16. For the past year, median EBITDA margin for the Internet Index has hovered around 6-7%.

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

EV/TTM Revenue EV/EBITDA 30%

20.4x 19.6x 18.2x 17.9x 18.2x 21%

13%

10% % of Companies of %

5% 5% 5% 4% 4% 2.3x 2.0x 1.9x 1.9x 2.0x 1%

2Q15 3Q15 4Q15 1Q16 2Q16 <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x >= 9.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x <= 7.0x <= 8.0x <= 9.0x EV/Revenue

• The median public market EV/Revenue multiple of Internet providers closed 2Q16 at 2.0x, slightly higher than 1Q16 and 4Q15. Roughly 51% of public Internet companies closed Q2 with an EV/Revenue multiple of 2.0x or less. • That said, investors in Q1 continued to richly reward the most rapidly growing and most promising Internet providers, especially those that generated significant revenue from online advertising and ecommerce. 10% of companies closed the quarter with a market multiple of 7.0x EV/Revenue or higher, including Alibaba (12.2x EV/Rev), Facebook (15.9x EV/Rev), 58.com (8.3x EV/Rev) and RenRen (20.5x EV/Rev).

EV/Revenue Multiples vs. TTM Revenue Growth – 2Q16 EV/Revenue Multiples vs. TTM EBITDA Margins – 2Q16

5.1x 6.8x 4.8x

4.9x 4.6x

2.8x

2.2x Median EV/Revenue Median Median EV/Revenue Median 1.7x 0.9x 1.3x 1.2x 0.6x

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

• Here, too, investors favored growth, albeit not to the extent of software and SaaS vendors. Public Internet companies with TTM revenue growth of 40% or higher had a median EV/Revenue multiple of 4.8x in Q2. The outperformers included GrubHub (36.1%, 4.9x EV/Revenue); Twitter (49.6%, 3.6 x EV/Revenue); 58.com (182.7%, 8.3x EV/Revenue); and Facebook (46.3%, 15.9x EV/Revenue). • Investors in public Internet companies kept a keen eye on margins, and rewarded more profitable performers with significantly higher public market multiples. Public Internet companies with EBITDA margins above 40% posted a median EV/Revenue multiple of 6.8x in 2Q16, over 4.5x higher than the overall Index median.

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

Ad Tech Commerce Content and Media Gaming

Infrastructure Search Services Social Travel

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2Q16 vs. 2Q15 Median TTM Revenue Growth

51.5%

39.0%

2Q16 22.7% 22.1% 21.1% 20.1% 20.4% 2Q15 17.5% 17.0% 18.7% 14.6% 11.8% 11.1% 10.0% 8.0% 5.2% 6.2%5.2%

Ad Tech Commerce Content & Media Gaming Infrastructure Search Services Social Travel

2Q16 vs. 2Q15 Median EV/Revenue Multiples

9.8x

2Q16 5.3x 5.0x 5.1x 4.4x 4.3x 2Q15 3.0x 2.5x 2.8x 2.1x 2.1x 1.6x 1.7x 1.0x 1.3x 1.2x 1.3x 1.3x

Ad Tech Commerce Content & Media Gaming Infrastructure Search Services Social Travel

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2Q16 vs. 2Q15 Median TTM EBITDA Margin

32.7% 32.3% 28.9% 27.5%

17.9% 15.6% 12.6% 2Q16 9.2% 9.1%9.1% 2Q15 6.6%6.8% 6.4% 6.2% 5.1% 2.0% 2.5%

(0.4%)

Ad Tech Commerce Content & Media Gaming Infrastructure Search Services Social Travel

2Q16 vs. 2Q15 Median EV/EBITDA Multiples

39.6x

33.7x

22.9x 20.2x 20.8x 2Q15 18.9x19.5x 18.9x 20.8x 17.7x17.6x 18.0x 18.5x 16.1x 16.1x 2Q16 12.4x 13.7x 10.2x

Ad Tech Commerce Content & Media Gaming Infrastructure Search Services Social Travel

U.S. Software Mergers & Acquisitions Activity TTM Average Quarterly Deal Volume

575 600 $80 600 536 $70 500 500 $68 $60

400 Value (BIllions) 400 $46 $44 $50

$35 300 $43 $40 300 $31 $34 $30

Number of Deals of Number 200 200 $21 $27 $23 $20 $20 100 $18 $18 100 $10

0 $0 0 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Deals Value

• Software industry M&A transaction volume continued to impress in 2Q16, with the quarter tallying 536 deals. We’d expect the second quarter tally will likely increase by approximately 15 – 20 transactions as unpublicized deals are added. 2Q16 marks the seventh consecutive quarter in which transaction volume has surpassed 500 deals. • On a TTM basis, average quarterly deal volume reached 575 transactions in 2Q16, representing an 18% increase in transaction activity over this past decade’s pre-recession high in 2Q08 (487 TTM quarterly average). Even more impressive, TTM average quarterly deal volume has increased every quarter since 3Q13 and has posted quarter over quarter increases in 20 of 26 quarters since bottoming out at 325 deals in 4Q09 (325 TTM quarterly average). • Software M&A spending in 2Q16 totaled $68 billion, a significant increase from Q1’s $43 billion aggregate price tag. The substantial increase was driven, in large part, by Microsoft’s announced acquisition of LinkedIn ($26.1 billion EV, 8.2x TTM revenue). In addition to Microsoft’s massive acquisition, there were 19 additional mega deals (EV > $500 million). In comparison, twelve mega deals were announced in both 1Q16 and the same quarter last year.

Quarterly SaaS M&A Volume Annual SaaS M&A Volume

SaaS M&A Deals SaaS as % of Software

200 40% SaaS M&A Deals as a of % Total Software 800 190 740 180 180 35% 700 160 160 150 157 601 134 30% 600 140 132

118 M&A Deals 500 462 120 25% 104 103 104 108 97 390 100 20% 400 312 80 15% 300

60 200 # of SaaS M&A Deals M&ASaaS of # # of SaaS M&A Deals M&ASaaS of # 10% 200 40 105 20 5% 100 50

0 0% 0 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

• 2Q16’s 190 SaaS M&A transactions marks the 11th consecutive quarter of ramping deal volume and represents a 5% quarter over quarter increase over 1Q16’s 180 transactions and 27% year over year increase when compared to 2Q15’s 150 transactions. • On an annual basis, SEG is projecting 740 SaaS M&A transactions during 2016, a 23% increase over 2015’s 601 deals and nearly double the 390 transactions announced just three years ago. • Multiple tailwinds continue to drive strong SaaS deal volume growth: • A secular shift toward cloud computing applications and a need for legacy on-premise vendors to acquire cloud computing expertise. • An extremely active private equity market that continues to be attracted to high margin subscription-based software business models. • Cheap credit available for transaction financing.

Median SaaS EV/Revenue Exit Multiples Q2 Public SaaS Sellers

4.6x 4.5x 10.5x 4.2x 3.7x 3.7x 7.5x 7.1x 6.5x

3.8x

3.6x 3.2x

EV/Revenue EV/Revenue

2Q15 3Q15 4Q15 1Q16 2Q16

Textura

Cvent, Inc. Cvent,

(NYSE:CVT)

Corporation

SciQuest, Inc. SciQuest,

(Nasdaq:SQI)

(NYSE:TXTR)

OPOWER, Inc. OPOWER,

(NYSE:OPWR)

Marketo, Inc. Marketo,

inContact, Inc. inContact,

(Nasdaq:SAAS)

(Nasdaq:MKTO)

(NYSE:DWRE) Demandware, Inc. Demandware,

• For the 12 months ending June 2016, SaaS companies were purchased • Led by Salesforce’s strategic acquisition of enterprise eCommerce for a median 4.5x TTM revenue, on par with recent quarters. After vendor, Demandware ($2.6 billion EV, 10.5x TTM Revenue), seven dipping below 4.0x TTM revenue from 4Q14 through 3Q15, the publicly traded SaaS companies announced an intent to be acquired median exit multiple for SaaS businesses has held firmly above 4.0x during the second quarter. The tally represents over 10% of all for the past three quarters. publicly traded SaaS providers. • Select 2Q TTM SaaS transactions posting exit multiples well above the • Growth, more so than buyer type, was a key determinant to each median included Wolters Kluwer’s 2Q16 acquisition of Enablon ($364 target’s revenue multiple: million, 5.6x TTM revenue); Visma’s 1Q16 acquisition of Fortnox • Demandware’s (42.5% TTM revenue growth) strategic ($163 million, 9.4x TTM revenue); PTC’s 4Q15 acquisition of Kepware purchase by Salesforce; Marketo (38.1%) and Cvent Technologies ($118 million, 5.9x TTM revenue) and Blackbaud’s 3Q15 (30.9%) both purchased by private equity firm Vista Equity acquisition of Smart Tuition ($190 million, 5.9x TTM revenue). Partners; Textura’s (34.8%) strategic purchase by Oracle; • In addition, a number of publicly traded SaaS companies were inContact’s (25.2%) strategic sale to Nice Systems; acquisition targets in Q2, with several of those receiving offers SciQuest’s (3.7%) purchase by private equity firm Accel- materially higher than our median exit multiple. KKR and OPOWER’s (14.0%) strategic sale to Oracle.

EV/Revenue by Seller Size (Last 3 Years) Median EV/Revenue Exit Multiple Distribution (Last 3 Years)

4.7x 4.5x 4.4x 25.0% 22.7% 20.2% 20.2% 3.7x 3.5x 20.0% 16.8% 2.9x 15.0%

10.1% % of Deals of %

EV/Revenue 10.0%

5.0% 5.0% 5.0%

0.0% < 5M 5M-10M 10M-20M 20M-50M 50M-100M 100M+ <= 1.0x > 1.0x & > 2.0x & <=> 3.0x & <=> 4.0x & <=> 5.0x & <= > 6.0x <= 2.0x 3.0x 4.0x 5.0x 6.0x Seller Revenue ($) TTM Revenue Exit Multiple Bins

• To calculate exit multiples by seller size, we analyzed the past three • Over the past three years, approximately one third of all SaaS targets years worth of SaaS deals to drive a meaningful data set. were acquired for 5.0x TTM or greater. • Those sellers with revenue greater than $100M were acquired for a o Many of these targets were growing quickly, served large median 4.7x TTM revenue over the time period, while those markets and attracted deep pocketed buyers (ie. Zillow’s generating revenues of less than $5M received a median 2.9x TTM acquisition of real estate software provider, Dotloop, which was revenue multiple. Buyers continue to reward those SaaS businesses rumored to growing revenue north of 100% at the time of sale exhibiting significant scale. and sold for approximately 7.2x TTM revenue). • While target size remains an important driver of value, buyers assess • Conversely, approximately 30% of all SaaS targets were acquired for a great many factors in assessing what they will pay for an acquisition 3.0x revenue or less. target, including historical and projected growth, recurring revenue o Many of these targets showed modest growth and operated in contribution, customer and revenue retention rates, organizational commoditized markets with little product differentiation (ie. scalability, customer acquisition cost vs. customer lifetime value, total Endurance International Group’s purchase of SaaS email addressable market, product differentiation and a host of additional marketing provider Constant Contact for 2.6x TTM revenue company attributes. (10.8% TTM revenue growth) SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 41 SaaS M&A BY PRODUCT CATEGORY – 2Q16

Asset Management 1.6% BI, Risk & Compliance • As has been the trend for years, the CRM, Accounting & Finance Billing & Service 9.0% 2.1% Provisioning Marketing & Sales product category led 1.1% Content & Document all others in terms of SaaS transaction Real Estate Mgmt volume (15.4%) in 2Q16. 6.4% 1.1% • The HR and Workforce Management Public Sector 1.6% product category tied with BI, Risk & Compliance for the second most SaaS Other Verticals CRM, Marketing & Sales M&A transactions in 2Q16, each 8.5% 15.4% accounting for 9.0% of total deal volume. • Other notable product category Insurance contributors included Messaging 1.6%

Vertical Conferencing & Communications (7.4%) Hospitality and Real Estate (6.4%). 2.1% Data Mgmt/Integration Healthcare 0.5% • The most notable quarter over quarter 2.7% category increases included: Dev. Tools & IT Asset Financial Services Mgmt 1.1% • eCommerce increasing from 3.2% Education 3.9% of SaaS transaction 3.7% volume in 1Q16 to 5.3% of Supply Chain Mgmt & eCommerce deal volume in 2Q16. Logistics 5.3% 2.7% • Multimedia, Graphics & Systems Mgmt ERP Communications increasing 4.3% Security 1.1% from 2.2% in 1Q16 to 4.3% in 3.2% HR & Workforce Mgmt 2Q16. Network Performance Messaging, 9.0% Mgmt Conferencing & • Security increasing from 0.6% 1.1% Communications Multimedia, in 1Q16 to 3.2% in 2Q16. 7.4% Graphics & Communications 4.3%

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 06/28/16 Global Scanning A/S Real Awesomesauce S.A. $3.0 - - 06/28/16 Cisco Systems, Inc. (NasdaqGS:CSCO) CloudLock, Inc. - - - 06/27/16 SEB Asset Management S.A. Accedo Broadband AB - - - 06/24/16 Callidus Software Inc. (NasdaqGM:CALD) Badgeville, Inc. $7.5 - - 06/23/16 SnagAJob.com, Inc. PMW Technologies Inc. - - - 06/23/16 Real Capital Analytics, Inc. SiiLA Investors, LLC - - - 06/22/16 Mitratech Holdings, Inc. CMO Software Limited - - - 06/22/16 Purch, Inc. Business.com Media, Inc. - - - 06/22/16 Red Hat, Inc. (NYSE:RHT) 3Scale Networks, S.L. - - - 06/22/16 Santander UK plc, Investment Arm Socure Inc. - - - 06/21/16 Space Time Insight, Inc. GOFACTORY Inc. - - - 06/21/16 Verizon Communications Inc. (NYSE:VZ) Telogis, Inc. - - - 06/21/16 Koninklijke Philips N.V (ENXTAM:PHIA) PathXL Ltd. - - - 06/16/16 Stamps.com Inc. (NasdaqGS:STMP) ShippingEasy, Inc. $55.0 - - 06/20/16 Next Gear Solutions, Inc. ClientRunner Software, Inc. - - - 06/20/16 Enviance, Inc. Actio Software Corporation - - - 06/20/16 Bayerische Motoren Werke Aktiengesellschaft (DB:BMW) Parkmobile Group B.V. - - - 06/17/16 TeamSystem Holding S.p.A. e-conomic international a/s - - - 06/17/16 McorpCX, Inc. (OTCPK:MCCX) PersonaDrive Inc. - - - 06/17/16 Ricoh Innovations Corporation Eye-Fi, Inc, Eyefi Cloud - - - 06/16/16 Sare S.A. (WSE:SAR) MailPro sp. z o.o. - - - 06/16/16 GTCR, LLC Optimal Blue LLC - - - 06/15/16 Bain Capital Private Equity Navicure, Inc. - - - 06/15/16 GCI Network Solutions Limited Outsourcery Hosting Limited - - - 06/14/16 EXEM Co., Ltd. (KOSDAQ:A205100) Cloudine Co., Ltd. - - - 06/14/16 Impact Radius, Inc. Forensiq LLC - - - 06/14/16 CenturyLink, Inc. (NYSE:CTL) ElasticBox Inc. - - - 06/13/16 Rise Art Limited Artfetch - - - 06/13/16 OneLogin, Inc. Portadi, Inc. - - - 06/12/16 Gaia Smart Cities Solutions Private Limited netCORE Solutions Pvt. Ltd, Internet of Things Business - - - 06/12/16 HiT-Health in Technology GmbH COURSIKA UG - - - 06/10/16 Digital Tomorrow Today Ltd Tweetchup.com - - - 06/09/16 WorkForce Software, LLC WorkPlace Systems International plc - - - 06/09/16 Scaleworks Associates FollowUp.cc - - - 06/08/16 Sovos Compliance, LLC Invoiceware International LLC - - - 06/08/16 HR Path SAS Cinéthic, SAS - - - 06/07/16 Connecture, Inc. (NasdaqGM:CNXR) ConnectedHealth, LLC $6.6 - - 06/07/16 MercadoLivre.com Atividades de Internet ltda. Axado, Informação e Tecnologia S/A $7.5 - - 06/07/16 Institut für Fußballmanagement nextsocial GmbH - - - 06/07/16 Elsevier Ltd. SHAZINO SAS, Hivebench - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 06/07/16 Wasserstein & Co.; John Hancock Advisers, LLC Northstar Travel Group, LLC - - - 06/06/16 PowerSchool Group LLC Haiku Learning Systems, Inc. - - - 06/06/16 Cameo Global, Inc. InfoReach, Inc. - - - 06/03/16 NeuLion, Limited Saffron Digital Ltd. - - - 06/03/16 Helios and Matheson Analytics Inc. (NasdaqCM:HMNY) Zone Technologies, Inc. - - - 06/01/16 Condeco Software Inc. Interactive Ideas LLC - - - 06/03/16 MRI Software LLC Integratec Services LLC - - - 06/02/16 Open Text Corporation (NasdaqGS:OTEX) Recommind, Inc. $163.0 - - 06/02/16 CopperHill Consulting, LLC Omega Data, LLC - - - 06/02/16 Surface Ink Ltd. GPIO Inc. - - - 06/02/16 A Medium Corporation Superfeedr - - - 06/02/16 Market Track, LLC OnRamp Technologies LLC - - - 06/02/16 Augeo Affinity Marketing Inc. Incentive Logic, Inc. - - - 05/31/16 salesforce.com, inc. (NYSE:CRM) Demandware, Inc. (NYSE:DWRE) $2,661.9 $254.0 10.5x 06/01/16 Tax Compliance, Inc. Appealtrack, LLC - - - 06/01/16 Tyler Technologies, Inc. (NYSE:TYL) ExecuTime Software, LLC - - - 06/01/16 eTouches, Inc. Zentila, Inc. - - - 05/27/16 Vista Equity Partners Ping Identity Corporation - - - 06/01/16 SolarWinds Worldwide, LLC LogicNow Limited - - - 06/01/16 eFolder, Inc. Replibit LLC - - - 06/01/16 Apax Partners LLP Agencyport Software Ltd. - - - 05/30/16 Accel-KKR LLC SciQuest, Inc. (NasdaqGS:SQI) $378.0 $106.2 3.6x 05/31/16 Wolters Kluwer Law & Business Group Enablon SA $363.9 $65.5 5.6x 05/27/16 Vista Equity Partners Marketo, Inc. (NasdaqGS:MKTO) $1,700.4 $226.1 7.5x 05/31/16 The Carlyle Group LP (NasdaqGS:CG) Ion Investment Group Limited - - - 05/31/16 BroadSoft, Inc. (NasdaqGS:BSFT) Intellinote, Inc. - - - 05/31/16 Pragma Capital Sarl PROPRIETES-PRIVEES - - - 05/27/16 Enghouse Systems Limited (TSX:ESL) NetBoss Technologies, Inc. $7.2 - - 05/24/16 PT Muara Anugerah Abadi PT Solusi Integrasi Transportasi Utama $0.0 - - 05/26/16 TERN plc (AIM:TERN) Flexiant Limited $4.8 - - 05/26/16 MGT Cybersecurity, Inc. Demonsaw, LLC $44.8 - - 05/26/16 Qualtrics, LLC Statwing, Inc. - - - 05/26/16 EdCast, Incorporated Sales-University - - - 05/26/16 Envysion, Inc. Next Wave - - - 05/25/16 LDC (Managers) Limited Giacom World Networks Limited - - - 05/24/16 PeopleAdmin, Inc. TeacherMatch LLC - - - 05/24/16 LDC (Managers) Limited Computers In Personnel Ltd. - - - 05/24/16 Bravo Store Systems, LLC Vertical Computer Systems, Inc. - - - 05/24/16 Brasil/CT - Comercio e Turismo S.A. Unico Sistemas e Consultoria Ltda. - - - 05/20/16 Genstar Capital, LLC IHS Inc., Operational Excellence & Risk Management Business - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 05/20/16 The Ultimate Software Group, Inc. (NasdaqGS:ULTI) Vestrics, Inc. - - - 05/19/16 Mediaocean LLC ColSpace Corporation - - - 05/19/16 CIMA Group, Inc. Knetik Media, LLC - - - 05/19/16 Trans Cosmos, Inc. (TSE:9715) SOCIAL GEAR PTE LTD - - - 05/19/16 Smartling, Inc. VerbalizeIt, Inc. - - - 05/17/16 NICE Ltd. (TASE:NICE) inContact, Inc. (NasdaqCM:SAAS) $881.2 $233.1 3.8x 05/18/16 Shapiro + Raj MutualMind Inc. - - - 05/18/16 Awesome Commerce, LLC LaGarde Incorporated - - - 05/18/16 Easypark AB Parko Tlv, Ltd. - - - 05/18/16 Genstar Capital, LLC Accruent, LLC - - - 05/17/16 RealPage, Inc. (NasdaqGS:RP) Portfolio Asset Management $4.8 - - 05/16/16 Black Knight Financial Services, Inc. (NYSE:BKFS) eLynx, Ltd. $115.0 - - 05/16/16 First Line Software Inc. Solaris Development, Inc. - - - 05/16/16 AT&T, Inc. (NYSE:T) QuickPlay Media Inc. - - - 05/16/16 Blue Star Sports GOALLINE Sports Administration Systems - - - 05/13/16 VigLink, Inc. Prosperent, Inc. - - - 05/12/16 Optiv Security Inc. Evantix GRC, LLC - - - 05/06/16 American Leisure Holdings, Inc. (OTCPK:AMLH) Digital Airo Inc. - - - 05/12/16 Output Services Group, Inc. ClickSpark LLC - - - 05/12/16 salesforce.com, inc. (NYSE:CRM) Implisit Insights Ltd. - - - 05/12/16 TrackMaven, Inc. 10Stories, Inc. - - - 05/12/16 Zalando SE (XTRA:ZAL) Tradebyte Software GmbH - - - 05/12/16 Nielsen Holdings plc (NYSE:NLSN) Repucom Pty. Ltd. - - - 05/10/16 Confirmation.com India Private Limited VeriFirm Services Private Limited - - - 05/10/16 Indiegogo, Inc. Airbrite, Inc. - - - 05/06/16 FreeWheel Media, Inc. StickyADStv SAS $114.0 - - 05/08/16 Mercer (Australia) Pty Ltd. InterTextual Pty Ltd, ExtraTextual - - - 05/09/16 Knowlarity Communications Pvt. Ltd. Smartwards Services Pvt. Ltd. - - - 05/09/16 Upserve, Inc. Pospitality LLC - - - 05/05/16 Vonage Holdings Corporation (NYSE:VG) Nexmo Inc. $249.5 $99.8 2.5x 05/05/16 eBay Inc. (NasdaqGS:EBAY) Expertmaker AB - - - 05/05/16 Jasper Infotech Private Limited Insightful Labs Pvt. Ltd. - - - 05/04/16 BGH TechPartner Latinware S.A. - - - 05/04/16 Blue Software, LLC Kodak Design2Launch Solutions - - - 05/04/16 Adloop Media, Inc. MerchantAtlas, Inc. - - - 05/04/16 Wayin, Inc. Engage Software Limited - - - 05/04/16 Warburg Pincus LLC DocuTAP, Inc. - - - 05/04/16 Airtime Media, Inc. vline, inc. - - - 05/03/16 Adobe Systems Incorporated (NasdaqGS:ADBE) Livefyre, Inc. - - - 05/03/16 SISTRIX GmbH SEOlytics GmbH - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 05/03/16 SmartBear Software Inc. CrossBrowserTesting.com, LLC - - - 05/03/16 Microsoft Corporation (NasdaqGS:MSFT) Solair Srl - - - 05/01/16 Oracle Corporation (NYSE:ORCL) OPOWER, Inc. $490.8 - 3.2x 05/02/16 Kewill plc LeanLogistics, Inc. $115.0 - - 05/02/16 Kompass Incubateur, SAS ByPath SAS - - - 05/02/16 infoWAN Datenkommunikation GmbH DrVis Software GmbH - - - 05/02/16 Vimeo, LLC VHX Corporation - - - 05/02/16 Vista Equity Partners; Bain Capital Private Equity Vertafore, Inc. - - - 04/28/16 Rovi Corporation (NasdaqGS:ROVI) TiVo Inc. (NasdaqGS:TIVO) $1,235.3 $490.2 2.5x 04/29/16 The Descartes Systems Group Inc (TSX:DSG) pixi* Software GmbH $10.5 - - 04/29/16 You & Mr Jones Inc Reach Labs, Inc. - - - 04/29/16 STEMhero, LLC MPSP, LLC - - - 04/28/16 Oracle Corporation (NYSE:ORCL) Textura Corporation $600.3 $92.2 6.5x 04/28/16 Goyo Intex Co., Ltd. (JASDAQ:7519) ReCI Inc $1.2 - - 04/28/16 Girnar Software Pvt. Ltd. ThoughtFabrics Solutions Private Limited - - - 04/04/16 - Petrichor Corp. (OTCPK:PTRR) $0.4 - - 04/26/16 crealytics GmbH Deltamethod GmbH - - - 04/26/16 Cranberry News Marketing, LLC Cranberry Radio - - - 04/26/16 HGGC, LLC FPX, LLC - - - 04/26/16 OnlineFaxes.com Solidfax.com - - - 04/25/16 CRYPTAS IT-Security GmbH PrimeSign GmbH - - - 04/21/16 Pocket Games, Inc. (OTCPK:PKGM) Receivd, Inc. - - - 04/22/16 Brandspots We Are Pop Up $0.2 - - 04/21/16 PayScale, Inc. MarketPay Associates, LLC - - - 04/20/16 - Qwikon, Inc. - - - 04/19/16 Zoopla Property Group Plc (LSE:ZPLA) The Property Software Group $108.0 $22.9 4.7x 04/19/16 Cascade Human Resources Limited Beaumont Solutions Limited - - - 04/19/16 CallTower Inc. ConnectSolutions LLC, Skype For Business Assets - - - 04/19/16 Placester, Inc. The WebMart Network Pty Limited - - - 04/17/16 Vista Equity Partners Cvent, Inc. (NYSE:CVT) $1,413.6 $198.8 7.1x 04/18/16 i3 Verticals, LLC Bill & Pay and Esber Cash Register - - - 04/18/16 IndiQus Technologies Private Limited Amicus Technologies Pvt. Ltd. - - - 04/18/16 24/7 Inc. EngageClick, Inc. - - - 04/18/16 SuperCom Ltd. (NasdaqCM:SPCB) Powa Technologies Limited - - - 04/18/16 Broadcast Pix, Inc. ioGates ApS - - - 04/18/16 Gary Jonas Computing Ltd. Multi-Systems, Inc. - - - 04/16/16 Blue Diamond Solutions, Inc. SKYLINE Cloud Services, Inc. - - - 04/15/16 F24 AG (DB:F2Y) Dolphin Systems AG - - - 04/14/16 BuildingIQ, Inc. (ASX:BIQ) NorthWrite Incorporated, Energy WorkSite and Facility WorkSite $3.0 - - Software Applications 04/14/16 XING AG (XTRA:O1BC) BuddyBroker AG $8.3 - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 04/14/16 ShopAdvisor, Inc. Retailigence Corporation - - - 04/14/16 Navihealth, Inc. Curaspan Health Group, Inc. - - - 04/13/16 Shopify Inc. (NYSE:SHOP) Kit CRM Inc. $0.0 - - 04/13/16 OpenGov, Inc. Ontodia, Inc. - - - 04/13/16 Freshdesk Inc. MemeticLabs Technologies Pvt. Ltd. - - - 04/13/16 Intergraph Process, Power & Marine, Inc. HostSure Ltd. - - - 04/13/16 USA Foods, Inc. Food Genius, Inc. - - - 04/11/16 Pegasystems Inc. (NasdaqGS:PEGA) OpenSpan, Inc. $52.3 - - 04/12/16 bmp Holding AG (DB:BTBA) sleepz GmbH - - - 04/01/16 Fortum Oyj (HLSE:FUM1V) Info24 AB - - - 04/12/16 OneMove Technologies Inc. Easy Convey Ltd. - - - 04/11/16 TIVIT Terceirização de Tecnologia e Serviços S/A One Cloud Tecnologia Ltda - - - 04/11/16 Black Box Corporation (NasdaqGS:BBOX) Cloudium Systems Ltd. - - - 04/11/16 NetPlus Inc. Amtel, Inc. - - - 04/10/16 Six Degrees Technology Group Ltd Carrenza Limited - - - 04/07/16 Callidus Software Inc. (NasdaqGM:CALD) ViewCentral, LLC $4.0 - - 04/06/16 CrownPeak Technology, Inc. Magus Research Ltd. - - - 04/06/16 Macmillan Learning KEYS2Engage, WriterKEY - - - 04/06/16 AGDATA LP Focus Technology Group, Inc. - - - 04/05/16 CPX Interactive Holdings LLC Sweigh, Inc. - - - 04/05/16 Experticity, Inc. Social Yantra, Inc. - - - 04/05/16 ServiceNow, Inc. (NYSE:NOW) ITapp Inc. - - - 04/05/16 Reward Gateway (UK) Ltd. Perkz Limited - - - 04/04/16 NYX Gaming Group Limited (TSXV:NYX) OpenBet Technologies Limited $385.4 - 4.2x 04/04/16 salesforce.com, inc. (NYSE:CRM) MetaMind Inc. $48.0 - - 04/04/16 Dimension Data Holdings plc Ceryx Inc. - - - 04/04/16 Ingram Micro Inc. (NYSE:IM) Ensim Corporation - - - 04/04/16 Uniguest Inc. Ascension Software, Inc. - - - 04/01/16 EQT Partners AB Sitecore A/S $1,136.3 $227.3 5.0x

Median Exit Multiples Median EV/Revenue Exit Multiple Distribution

30.0x EV/Revenue

24.7x 30.0% 25.0x 23.2x 26.0% 26.0% 25.0% 20.0x 17.3x 18.1x 19.8% 15.0x 20.0%

15.0x TTM 2Q16 - 15.0% 11.5% 10.0x 10.0% 7.3% 6.3%

5.0x Deals of % 3.1% 2.5x 2.5x 2.6x 2.2x 2.1x 5.0%

0.0x 0.0% 2Q15 3Q15 4Q15 1Q16 2Q16 <= 1.0x > 1.0x & <=> 2.0x & <=> 3.0x & <=> 4.0x & <=> 5.0x & <= > 6.0x 2.0x 3.0x 4.0x 5.0x 6.0x TTM Revenue Exit Multiple Bins

• In 2Q16, on-premise software providers posted a median 2.1x TTM • On a TTM basis, 52.0% of all on-premise software targets in 2Q16 revenue multiple, less than half the median 4.5x TTM multiple posted were acquired for 2.0x TTM or less, and 71.8% for 3.0x or less. In by SaaS sellers in 2Q16. comparison, 46.9% were acquired for 2.0x TTM revenue or less and 63.7% for 3.0x or less in 1Q16. • With the exception of 4Q15’s 2.6x TTM revenue, median exit multiples have floated between 2.0x and 2.5x TTM revenue since 3Q13 for on- • Notable on-premise software transactions significantly exceeding premise software providers. median exit multiples include Symantec’s acquisition of networking and security software provider, Blue Coat Systems, for $4.7 billion • The median EV/EBITDA exit multiple for public on-premise software (7.9x TTM revenue) and private equity firm Thoma Bravo’s companies was 15.0x TTM EBITDA in 2Q16, decreasing by 54% from acquisition of business intelligence and analytics provider, Qlik the prior quarter. Technologies, for $2.6 billion (4.2x TTM revenue).

*Note - EV/EBITDA multiples comprised public sellers only

Public vs. Private Target Large vs. Smaller Buyer

Buyer Greater Than Buyer Less Than $200 $200 million million 2.3x Median Multiple 1.7x Median Multiple

Seller Greater Seller Greater Than $20 Than $20 million: 0.8x2.3x million: 1.5x1.7x

Seller Less Seller Less Than $20 Than $20 million: 2.8x million: 2.4x1.7x

• Of the TTM deals announced with an ascertainable EV/Rev exit • Buyers with revenue greater than $200 million paid a median 2.3x multiple, approximately 70% of software M&A transactions featured TTM revenue for their targets, compared to a median 1.7x TTM privately-held targets. revenue paid by sub-$200 million revenue buyers. • The median TTM exit multiple was significantly higher for public on- • On a TTM basis, software M&A transactions with the highest exit premise software sellers (2.6x TTM revenue) than for their private multiples featured a large public or private buyer (greater than $200 counterparts (1.8x TTM revenue). million in revenue) acquiring a small target (less than $20 million). For the last 12 months, this match-up produced a median 2.8x • Over the last 12 months, public buyers paid a median 1.9x TTM EV/Revenue exit multiple. revenue for their targets, compared to a median of 2.5x paid by private buyers.

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

2.5x 2.5x 2.4x 2.4x 2.3x 2.3x 2.2x 2.1x 2.1x 2.1x

65% 66% 64% 69% 65%

35% 34% 36% 31% 35%

2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16

Vertical Horizontal Vertical Horizontal

• The median exit valuation of horizontal software companies was 2.2x TTM revenue in 2Q16, a slight increase from the 2.1x TTM revenue mark the prior three consecutive quarters. Representative Q2 horizontal transactions included private equity firm Thoma Bravo’s acquisition business intelligence and analytics provider, Qlik Technologies, for $2.6 billion (4.2x TTM revenue); private equity firm SliverLake’s acquisition of European-based ERP provider, Cegid Group, for $714 million (2.3x TTM revenue) and private equity firm Siris Capital’s acquisition of digital communications solutions provider, Xura, for $691 million (2.6x TTM revenue). • The median exit valuation of vertical software companies was 2.3x TTM revenue in 2Q16, a slight decrease from the oscillation between 2.4x and 2.5x TTM in recent quarters. Vertical software targets have fetched a higher median EV/Revenue exit multiple than their horizontal software counterparts for the past eight quarters. That represents a marked turnaround for vertical software median exit valuations after a dismal 2012 and 2013 (1.5x). The vertical exit recovery began in 2014 when the median multiple advanced to 2.2x. • Q2’s more noteworthy vertical software deals included Broadridge Financial Solutions’ acquisition of 4Sight Financial Software, a provider of securities financing and collateral management solutions, for $40 million (3.3x TTM revenue) and private equity firm, Francisco Partners acquisition of SintecMedia, a provider of broadcast and media asset management tools, for $400 million.

Content & Document Data Mgmt/Integration Mgmt 2.3% Dev. Tools & IT Asset 2.0% BI, Risk & Compliance Mgmt • Mobile was the most active product 3.1% 2.0% CRM, Marketing & Sales category by far in the second quarter, 1.4% Billing & Service eCommerce EDA accounting for 23.6% of all software Provisioning 0.3% 0.9% M&A transactions. Distant runner-ups 0.3% Engineering & PLM were Financial Services (8.3%), Asset Management 3.1% 2.3% Security (6.6%), Healthcare (5.7%), Middleware ERP and Multimedia, Graphics & 0.3% Accounting & Finance 2.0% Communications (5.1%). 0.6% Retail Entertainment • Historically, deal activity in any given 2.3% 2.8% HR & Workforce Mgmt product category varies widely from Public Sector 1.7% year to year, based upon evolving 1.4% market adoption, changing technology Other Verticals Messaging, Conferencing platforms, economic cycles, etc. 9.1% & Communications Examples include: Mining, Oil & Gas 2.3% 1.1% • Enterprise Resource Planning deals Multimedia, Graphics & Manufacturing Communications accounted for 2.0% of all software

1.1% 5.1% M&A activity in 2Q16 compared Vertical with 0.7% in 2Q15. Insurance Network Performance 1.1% Mgmt • Asset Management deals 0.9% represented 2.3% of all software Healthcare M&A activity in 2Q16, compared 5.7% Security Systems Mgmt 6.6% with only 0.7% in 2Q15. Financial Services 1.1% 8.3% Education • Entertainment deals were 2.8% of 3.7% Mobile Supply Chain Mgmt & software M&A activity in 2Q16, 23.6% Logistics compared with 1.0% in 2Q15. 1.4%

Median EV/Revenue Exit Multiples by Software Product Category

4.0x 3.2x 2.9x 2.5x 2.2x 1.8x 1.7x 1.7x 1.3x 1.2x

1.0x

ERP

Mobile

Security

Healthcare

Messaging,

Mgmt.

Entertainment

Other Verticals Other

Conferencing & Conferencing

Communications

CRM & Marketing & CRM

Financial Services Financial

Dev. Tools & IT Asset IT & Tools Dev. BI, Risk & Compliance & Risk BI,

• Among the 36 on-premise software product categories we track, eleven had both sufficient deal activity and deal data to ascertain a category TTM revenue multiple in 2Q16. • On a TTM basis, the Healthcare category was rewarded with the highest median exit multiple (4.0x TTM revenue), followed by Financial Services with a median exit multiple of 3.2x TTM revenue. • Notable Healthcare transactions include IBM’s 1Q16 acquisition of healthcare analytics provider, Truven Holding ($3.6 billion, 5.8x TTM revenue); IBM’s 3Q15 acquisition of Merge Healthcare ($1.0 billion, 4.3x TTM revenue) and Progenics Pharmaceuticals’ 4Q15 acquisition of EXINI Diagnostics AB ($7.1 million, 6.3x TTM revenue). • Notable Financial Services software transactions included Deutsche Boerse’s 3Q15 acquisition of 360 Treasury Systems ($796 million, 14.5x TTM revenue); Intercontinental Exchange’s 4Q15 acquisition of Trayport ($860 million, 11.0x TTM revenue); and Broadridge Financial Solutions’ 2Q16 acquisition of 4Sight Financial Software Limited ($40 million, 3.3x TTM revenue). • On-premise CRM and Marketing exit multiples lagged far behind all other product categories on a TTM basis – posting a meager 1.0x median TTM revenue multiple in 2Q16.

SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 52 ABOUT SOFTWARE EQUITY GROUP Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for .application software mergers and acquisitions Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance .shareholder value Perhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, .Softletter, Software Success, Software CEO Online and Software Business Magazine .To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without . obligation, please contact Kris Beible, Vice President (858) 509-2800, [email protected] :CONTACT INFORMATION .SEG Capital Advisors, L.L.C El Camino Real, Suite 320 12220 San Diego, CA 92130 www.softwareequity.com p: (858) 509-2800

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This Report may not be reproduced in whole or in part without the expressed prior written authorization of SEG. SEG or one of its affiliteSoftware Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. SOFTWARE EQUITY GROUP | Q2 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 53 APPENDIX

Median EV/Revenue – Annual Median EV/EBITDA – Annual

56.8x

6.7x 42.4x 5.7x 5.8x 5.0x 35.2x 35.2x 32.2x 33.9x 4.5x 31.4x

3.6x

2.6x

Median EV/EBITDA Multiple EV/EBITDA Median Median EV/Revenue Multiple EV/Revenue Median

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median Revenue Growth - Annual Median TTM Total Revenue ($M) - Annual

28.4% $169.0 $163.5 $164.1 26.9% 27.1% $155.4 26.0% 25.5% 26.0%

$123.7 $128.7 $104.7

14.2%

TTM Total Revenue Total TTM TTM Revenue Growth Revenue TTM

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median Gross Profit Margin - Annual Median EBITDA Margin - Annual

70.9% 9.6% 8.8% 70.0% 8.1% 6.7% 68.3% 68.6%

66.1% 66.0% 1.0%

63.4% 2009 2010 2011 2012 2013 2014 2015

EBITDA Margin EBITDA Gross Profit Margin Profit Gross

2009 2010 2011 2012 2013 2014 2015 -8.9% -9.4%

Median EV/Revenue – Annual Median EV/EBITDA – Annual

15.0x 3.0x 3.0x 14.0x 14.0x 2.8x 12.4x 2.7x 2.7x 12.3x 11.9x

10.0x

2.3x EV/Revenue Multiple EV/Revenue

1.5x EV/EBITDA Multiple EV/EBITDA

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median Revenue Growth - Annual Median TTM Total Revenue ($M) - Annual

$743.10 16.1%

13.3% $535.80 $470.50 9.3% $387.90 $381.40 8.0% 7.5% $239.80

4.2% 4.5%

TTM Total Revenue Total TTM TTM Revenue Growth Revenue TTM

2009 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

Median Gross Profit Margin - Annual Median EBITDA Margin - Annual

18.9% 68.6% 18.5% 17.9% 17.4% 17.5% 17.6% 66.6% 66.5% 66.1% 66.0% 65.8% 65.7%

15.3%

EBITDA Margin EBITDA Gross Profit Margin Profit Gross

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median EV/Revenue – Annual Median EV/EBITDA – Annual

2.9x 24.6x

2.6x 20.8x 2.5x 17.0x 2.1x 15.2x 13.9x 11.8x 1.8x 10.0x 1.6x

1.2x

Median EV/EBITDA Multiple EV/EBITDA Median Median EV/REvenue Multiple EV/REvenue Median

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median Revenue Growth - Annual Median TTM Total Revenue ($M) - Annual

$492.9 26.4% 23.9% $440.2 $411.2 $392.8 20.6% 18.7% $333.0 17.5% $278.1

$216.2 TTM Total Revenue Total TTM TTM Revenue Growth Revenue TTM 2.9% 3.4%

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

Median Gross Profit Margin - Annual Median EBITDA Margin - Annual

66.2% 65.0% 64.7% 13.1% 63.8% 63.2% 12.2%

60.9% 10.6% 60.1% 10.2%

8.9% 8.3%

EBITDA Margin EBITDA 7.3% Gross Profit Margin Profit Gross

2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2U 8.8x 10.5x 7.1x 5.4x 6.7x - - - - - 31.2% 33.9% 32.0% 36.2% 37.6% -22.3% -19.4% -18.6% -16.6% -14.0% Alarm.com 3.8x 4.4x 3.6x 3.0x 4.0x 27.6x 30.7x 23.0x 21.0x 27.3x 26.9% 25.4% 26.1% 24.8% 25.8% 13.9% 14.2% 15.6% 14.4% 14.8% Amber Road 2.9x 1.9x 1.8x 1.8x 2.1x - - - - - 16.3% 11.4% 7.5% 3.5% 5.9% -11.9% -19.6% -27.4% -33.6% -30.0% Apigee Corporation 5.9x 2.4x 2.4x 2.0x 2.9x ------30.2% 26.6% 28.3% 32.1% -78.0% -68.6% -60.6% -53.3% -48.8% AppFolio 8.4x 8.3x 7.5x 5.3x 5.1x ------57.3% 53.4% -16.4% -17.1% -19.3% -16.1% -14.4% Athenahealth 6.0x 6.5x 7.2x 5.9x 5.5x 71.8x 87.4x 92.5x 89.7x 70.7x 25.9% 24.2% 23.8% 22.9% 22.4% 8.3% 7.4% 7.8% 6.6% 7.8% Atlassian Corp - - 1.2x 11.2x 10.3x - - 6.6x 275.0x 313.6x 44.8% 48.5% - - - 12.7% 3.0% 4.2% 4.1% 3.3% Bazaarvoice 2.2x 2.0x 1.6x 1.1x 1.2x - - - - - 13.7% 11.7% 9.3% 6.1% 4.5% -11.3% -10.5% -9.1% -9.2% -7.5% Benefitfocus 6.9x 6.5x 6.0x 4.6x 5.3x - - - - - 33.9% 33.6% 34.1% 34.7% 32.0% -34.7% -31.6% -27.5% -24.4% -22.3% Box 7.6x 5.8x 4.9x 4.1x 4.1x - - - - - 62.0% - 45.5% 39.9% 38.2% -60.2% -57.7% -56.3% -54.3% -47.6% Callidus Software 5.0x 5.2x 5.9x 4.2x 5.0x - - - 1975.1x - 23.4% 24.2% 27.8% 26.7% 25.0% -2.5% -3.3% -3.1% 0.2% 0.0% Castlight Health 11.0x 6.8x 3.6x 2.4x 3.1x - - - - - 173.5% 121.2% 88.9% 65.1% 54.3% -145.6% -129.8% -115.4% -103.8% -93.6% ChannelAdvisors 2.5x 2.4x 2.9x 2.3x 2.5x - - - - - 21.7% 18.6% 16.5% 18.5% 18.4% -30.8% -24.9% -19.1% -11.5% -6.7% Cornerstone OnDemand 6.0x 6.5x 6.0x 5.0x 5.4x - - - - - 36.7% 35.7% 32.3% 28.9% 30.3% -16.9% -17.5% -18.5% -17.8% -16.1% Covisint 0.5x 0.7x 0.5x 0.5x 0.5x ------8.9% -9.7% -10.6% -11.2% -14.1% -30.4% -26.8% -25.8% -24.9% -14.9% Cvent 6.3x 7.0x 376.8x 4.0x 6.7x 311.7x - - 657.1x 212.4x 28.6% 31.7% 31.8% 32.0% 30.9% 2.0% -0.3% 0.5% 0.6% 3.2% DealerTrack 2.4x 2.6x 3.9x 3.4x 3.5x 20.2x 20.0x 28.2x 24.5x 19.3x 94.2% 60.3% 39.7% 39.7% 43.7% 11.9% 12.9% 13.7% 13.7% 18.0% Demandware 12.0x 10.6x 8.4x 5.2x 5.8x - - - - - 50.2% 47.8% 46.3% 47.8% 42.5% -12.7% -15.8% -15.7% -14.4% -13.3% Ebix 5.5x 4.8x 4.9x 4.8x 6.2x 15.3x 13.5x 13.9x 13.1x 16.6x 11.4% 17.6% 25.1% 23.9% 20.3% 36.2% 35.5% 35.1% 36.8% 37.3% Ellie Mae 9.6x 9.9x 7.8x 8.9x 9.1x 46.1x 45.2x 37.5x 46.9x 52.4x 41.4% 54.6% 62.2% 57.2% 48.9% 20.9% 21.9% 20.7% 18.9% 17.3% FireEye 13.4x 12.0x 5.6x 3.5x 3.7x - - - - - 130.3% 97.4% 71.0% 46.4% 39.5% -83.8% -74.8% -66.9% -63.5% -61.7% Fleetmatics 6.3x 6.5x 7.2x 5.0x 4.6x 24.3x 24.8x 28.9x 21.0x 20.2x 28.5% 27.0% 24.7% 23.0% 21.7% 25.9% 26.3% 24.9% 24.0% 22.8% Halogen Software 2.3x 2.0x 1.4x 1.1x 1.6x - - - - - 18.2% 18.0% 17.4% 15.9% 14.2% -16.0% -13.9% -9.7% -6.0% -4.4% HealthStream 4.4x 3.6x 3.0x 2.4x 2.7x 29.9x 21.8x 18.3x 19.8x 24.0x 27.3% 24.8% 22.2% 22.4% 20.3% 14.9% 16.4% 16.3% 12.1% 11.1% HortonWorks 14.1x 11.8x 7.9x 4.0x 3.8x - - - - - 95.1% 108.3% 123.1% 164.8% 135.6% -314.4% -263.0% -219.1% -143.3% -140.1% HubSpot 11.4x 10.4x 10.4x 7.9x 7.2x - - - - - 52.7% 55.3% 56.6% 57.0% 56.1% -37.5% -35.5% -33.2% -24.0% -20.6% inContact 3.3x 2.3x 2.7x 2.4x 2.6x - - - - 403.9x 37.4% 36.1% 33.3% 29.2% 25.2% -4.8% -4.3% -2.5% -0.7% 0.6% Instructure - - 8.6x 5.5x 5.2x ------65.0% 62.5% -94.5% -92.5% -85.3% -67.9% -56.8% IntraLinks Holdings 2.3x 2.5x 2.0x 1.8x 1.7x 50.2x 54.4x 51.3x 58.2x 43.7x 10.1% 9.7% 8.5% 7.9% 6.7% 4.6% 4.5% 3.9% 3.0% 4.0% J2 Global 5.4x 5.3x 5.9x 5.2x 4.4x 13.1x 12.9x 14.2x 12.9x 10.8x 15.7% 20.7% 19.9% 20.3% 21.4% 40.9% 40.8% 41.4% 40.6% 41.1% Jive Software 1.7x 1.3x 1.3x 0.8x 1.0x - - - - - 20.8% 18.0% 13.5% 9.6% 7.9% -17.2% -13.8% -11.8% -10.7% -9.6% Liquid Holdings Group ------1.3% 1.3% 1.3% 1.3% 1.3% n/a n/a n/a n/a n/a LivePerson 2.3x 2.1x 1.7x 1.2x 1.3x 51.7x 52.3x 23.9x 16.2x 18.9x 21.2% 20.5% 19.9% 13.9% 5.8% 4.5% 4.0% 7.0% 7.1% 7.0% Marin Software 1.7x 1.0x 1.0x 0.8x 0.5x - - - - - 24.1% 19.5% 13.1% 9.2% 6.2% -26.4% -27.8% -25.7% -19.4% -14.4% Marketo 6.8x 6.3x 6.0x 3.4x 4.9x - - - - - 50.9% 46.2% 42.8% 40.0% 38.1% -31.9% -31.0% -29.5% -26.5% -23.8% Medical Transcript 1.1x 1.0x 0.8x 0.6x 0.5x - - - - - 102.3% 126.9% 75.0% 26.1% 0.8% -14.5% -11.1% -7.0% -6.5% -5.9% Medidata Solutions 8.5x 7.8x 6.3x 5.2x 6.0x 75.2x 76.2x 59.7x 51.1x 55.3x 20.9% 19.8% 19.5% 17.1% 15.2% 11.3% 10.2% 10.5% 10.2% 10.9%

SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 Mimecast - - 4.5x 3.3x 2.6x - - 31.1x 32.5x 46.3x 31.4% - - - 22.2% 7.6% 10.9% 14.4% 10.1% 5.6% MINDBODY 9.2x 6.2x - 4.0x 4.3x ------44.8% 45.0% -30.3% -29.8% -27.4% -28.3% -24.1% NantHealth, Inc. - - - - 27.6x ------71.9% 70.9% -151.2% -159.3% -123.7% -109.1% -124.0% Netsuite 12.1x 11.0x 9.6x 6.9x 7.7x - - - - - 34.2% 35.0% 34.9% 33.2% 32.6% -8.3% -9.7% -8.3% -8.3% -7.9% New Relic 12.0x 11.7x 11.3x 7.1x 6.1x - - - - - 74.7% 73.2% 68.8% 67.5% 64.2% -40.9% -38.2% -36.2% -32.5% -32.4% Paycom Software 12.1x 11.4x 11.3x 8.3x 9.0x 68.7x 55.4x 56.4x 44.2x 38.2x 44.6% 46.2% 48.4% 48.8% 53.4% 17.6% 20.6% 20.1% 18.7% 23.5% Paylocity Holding 11.1x 10.8x 11.9x 8.0x 8.7x - - - - 374.4x 40.9% 40.5% 42.0% 46.7% 49.2% -6.7% -5.2% -3.6% -0.2% 2.3% Q2 Holdings 9.2x 9.7x 9.0x 6.6x 7.2x - - - - - 42.0% 41.8% 38.5% 37.6% 37.0% -16.2% -15.1% -14.9% -14.8% -15.7% Qualys 9.4x 6.5x 6.6x 4.3x 4.3x 49.3x 31.5x 29.8x 18.1x 17.6x 24.0% 24.1% 24.1% 23.0% 23.0% 19.0% 20.7% 22.3% 23.8% 24.6% RealPage 3.7x 3.5x 3.7x 3.4x 3.7x 55.8x 44.2x 39.4x 30.5x 29.7x 6.7% 11.6% 14.1% 15.8% 17.4% 6.6% 7.8% 9.4% 11.3% 12.4% RingCentral 4.5x 4.5x 5.2x 4.1x 3.9x - - - - - 36.8% 35.3% 35.1% 34.7% 34.0% -13.1% -10.6% -7.9% -5.5% -4.0% Salesforce.com 8.6x 8.0x 8.3x 7.2x 7.5x 200.7x 150.8x 130.8x 102.5x 101.4x 28.4% 25.3% 24.2% 24.1% 25.0% 4.3% 5.3% 6.3% 7.0% 7.4% SciQuest 3.0x 2.0x 1.9x 2.0x 2.4x 64.6x 38.5x 28.6x 26.6x 27.1x 7.9% 4.7% 2.0% 3.4% 3.7% 4.6% 5.1% 6.8% 7.7% 8.9% Service-now.com 15.1x 13.6x 14.3x 9.4x 10.0x - - - - - 58.1% 54.0% 50.5% 47.3% 45.5% -16.1% -14.9% -12.5% -10.5% -9.3% Shopify 18.6x 16.5x 11.6x 7.9x 9.2x ------95.4% 94.7% -11.9% -7.2% -5.9% -5.9% -6.9% SPS Commerce 7.2x 7.2x 7.2x 3.9x 4.6x 70.3x 72.9x 70.8x 37.5x 43.8x 24.1% 25.0% 25.8% 23.9% 22.9% 10.2% 9.8% 10.1% 10.5% 10.5% Tableau Software 15.5x 12.4x 9.8x 3.8x 4.1x 711.2x - - - - 75.4% 71.4% 69.1% 58.4% 48.5% 2.2% -0.3% -1.4% -4.3% -8.4% Tangoe 2.2x 1.3x 1.3x 1.3x 1.3x 28.5x 19.2x 30.5x 29.0x 29.0x 10.9% 8.3% 5.7% 5.7% 5.7% 7.7% 6.7% 4.4% 4.4% 4.4% The Ultimate Software Group 8.8x 9.0x 9.4x 7.9x 8.4x 65.7x 74.2x 83.5x 76.8x 86.5x 22.2% 21.1% 20.8% 22.2% 24.7% 13.4% 12.2% 11.3% 10.3% 9.7% TrueCar 4.7x 1.7x 2.0x 1.6x 1.8x - - - - - 44.8% 37.2% 31.6% 25.7% 18.9% -18.2% -16.1% -13.7% -14.3% -14.4% Twilio, Inc. - - - - 13.2x ------87.9% 86.6% -27.4% -24.7% -23.2% -19.9% -15.8% Upland Software 1.7x 1.8x 1.7x 1.5x 2.0x 95.1x - - 153.6x 81.8x 38.1% 25.0% 14.2% 8.3% 5.2% 1.8% -0.2% -0.1% 1.0% 2.4% Veeva Systems 9.4x 8.3x 8.2x 7.1x 7.7x 38.6x 34.1x 34.5x 33.0x 38.9x 43.7% 37.9% 32.2% 30.6% 30.5% 24.4% 24.5% 23.9% 21.6% 19.9% Workday 17.1x 13.6x 13.2x 10.5x 10.8x - - - - - 63.7% 58.2% 51.4% 47.5% 43.0% -17.4% -15.7% -15.5% -15.6% -15.5% Workiva 4.1x 4.1x 4.8x 3.0x 3.0x - - - - - 28.6% 27.8% 27.7% 28.9% 29.2% -30.9% -29.3% -28.8% -27.0% -28.8% Xactly 3.9x 3.1x 3.2x 2.0x 2.6x ------20.9% 24.3% 27.9% -19.8% -20.4% -20.7% -21.5% -21.0% Zendesk 11.8x 9.4x 9.9x 7.5x 8.2x - - - - - 73.3% 69.1% 66.3% 64.3% 63.0% -46.5% -40.4% -35.3% -32.8% -31.6% Zix 4.7x 4.8x 5.0x 3.7x 3.4x 27.6x 27.8x 25.7x 20.2x 17.8x 5.6% 5.3% 6.9% 8.7% 9.2% 16.9% 17.3% 19.5% 18.4% 19.2%

CRM & Marketing 2Q15 3Q15 4Q15 1Q16 2Q16 Other SaaS 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 6.3x 6.7x 6.5x 6.2x 5.8x EV/TTM Revenue 5.3x 5.0x 5.1x 4.9x 3.8x EV/NTM Revenue 4.7x 5.3x 5.2x 3.1x 5.1x EV/NTM Revenue 4.2x 3.8x 4.1x 2.9x 3.0x EV/TTM EBITDA 195.5x 101.6x 130.7x 113.8x 101.4x EV/TTM EBITDA 43.7x 27.8x 30.4x 35.9x 43.7x EV/TTM CFO 46.5x 36.0x 48.4x 40.5x 27.5x EV/TTM CFO 65.2x 40.3x 50.0x 44.6x 33.6x Gross Profit Margin 67.2% 66.9% 67.4% 68.0% 69.2% Gross Profit Margin 67.4% 68.6% 69.5% 70.6% 70.3% EBITDA Margin -18.8% -19.1% -17.4% -14.3% -11.0% EBITDA Margin -13.1% -13.8% -11.8% -10.5% -8.4% Net Income Margin -25.8% -26.6% -24.2% -19.5% -17.5% Net Income Margin -21.0% -19.6% -19.0% -18.7% -17.1% TTM Revenue Growth (YoY) 28.5% 28.5% 28.0% 28.0% 28.0% TTM Revenue Growth (YoY) 36.8% 27.8% 27.7% 29.1% 25.2% TTM EBITDA Growth (YoY) -11.8% -16.7% -5.6% 16.3% 36.2% TTM EBITDA Growth (YoY) -5.3% -5.1% -2.3% 7.1% -5.0% TTM Earnings Growth (YoY) 17.2% 26.9% 14.7% -2.0% 5.5% TTM Earnings Growth (YoY) 0.6% -49.5% 15.5% 6.6% 19.6% Cash as Percent of Market Cap 11.8% 10.5% 10.8% 14.1% 11.8% Cash as Percent of Market Cap 11.0% 13.0% 11.4% 14.3% 13.2% Enterprise Value Growth (YoY) 11.1% 2.0% 5.5% -24.0% 5.1% Enterprise Value Growth (YoY) 28.0% 29.4% 0.4% -29.2% -17.9%

ERP & Supply Chain 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 6.7x 6.5x 7.2x 6.3x 4.6x EV/NTM Revenue 5.5x 5.5x 5.5x 3.0x 4.2x EV/TTM EBITDA 55.7x 38.4x 29.1x 28.3x 27.1x EV/TTM CFO 59.6x 67.3x 66.3x 54.6x 41.3x Gross Profit Margin 68.2% 68.0% 67.8% 68.0% 68.1% EBITDA Margin -8.3% -9.7% -8.3% -8.3% -7.9% Net Income Margin -16.8% -17.0% -17.0% -16.8% -16.6% TTM Revenue Growth (YoY) 26.3% 27.0% 25.8% 23.9% 22.9% TTM EBITDA Growth (YoY) 18.3% 25.2% 16.2% 7.6% 7.1% TTM Earnings Growth (YoY) 76.2% 58.8% 39.7% 56.4% 33.2% Cash as Percent of Market Cap 10.9% 12.6% 12.1% 14.5% 13.8% Enterprise Value Growth (YoY) -5.7% -7.3% 16.9% 3.2% -8.8%

Vertically Focused 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 8.2x 6.7x 6.6x 6.4x 5.5x EV/NTM Revenue 6.8x 5.1x 6.1x 4.4x 5.0x EV/TTM EBITDA 45.8x 39.0x 36.0x 36.5x 34.3x EV/TTM CFO 35.1x 32.4x 29.0x 31.3x 29.4x Gross Profit Margin 60.3% 60.5% 60.7% 60.4% 60.2% EBITDA Margin 6.6% 7.4% 7.8% 6.6% 7.8% Net Income Margin -2.7% -1.9% -2.9% -2.0% -0.9% TTM Revenue Growth (YoY) 36.3% 35.9% 32.1% 36.2% 37.0% TTM EBITDA Growth (YoY) 7.9% 10.5% 11.0% 5.3% 13.5% TTM Earnings Growth (YoY) 75.3% 82.9% 70.1% 42.5% 22.8% Cash as Percent of Market Cap 5.1% 9.6% 11.0% 12.9% 10.7% Enterprise Value Growth (YoY) 51.6% 15.5% 26.3% 6.2% 14.0%

Human Capital Management 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 7.2x 6.5x 6.0x 5.6x 5.4x EV/NTM Revenue 6.2x 4.6x 4.9x 4.1x 4.5x EV/TTM EBITDA 65.7x 55.4x 56.5x 69.6x 62.3x EV/TTM CFO 65.4x 60.4x 54.4x 49.8x 41.3x Gross Profit Margin 59.8% 60.3% 60.9% 61.5% 61.9% EBITDA Margin -11.3% -9.6% -6.7% -3.1% -2.2% Net Income Margin -18.7% -18.7% -16.9% -14.1% -10.3% TTM Revenue Growth (YoY) 33.9% 33.6% 30.0% 27.8% 29.1% TTM EBITDA Growth (YoY) -20.8% -22.4% -24.6% 12.9% 3.0% TTM Earnings Growth (YoY) 41.6% 28.4% -0.5% -17.1% -33.7% Cash as Percent of Market Cap 11.3% 10.0% 8.9% 10.3% 11.7% Enterprise Value Growth (YoY) 34.1% 22.3% 36.8% 4.7% 8.1%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 A10 Networks 1.4x 1.7x 1.7x 1.4x 1.4x - - - - - 12.6% 4.2% 6.2% 10.8% 17.4% -18.8% -19.7% -18.0% -13.8% -10.8% Accretive Health 0.5x 0.4x 0.4x 0.5x 0.4x 8.1x 7.3x 7.5x 7.8x 7.3x 5.8% 10.8% 13.3% 16.6% 13.0% 6.1% 6.1% 6.0% 6.0% 6.1% ACI Worldwide 3.5x 3.3x 3.4x 2.9x 3.0x 17.2x 16.4x 17.4x 17.2x 20.5x 11.2% 6.7% 1.8% 2.9% 1.1% 20.2% 20.2% 19.4% 16.7% 14.6% Activision Blizzard 3.8x 4.3x 5.4x 5.4x 6.3x 12.5x 14.3x 16.4x 17.9x 19.3x 4.7% 8.4% 12.3% 5.8% 5.8% 30.6% 30.4% 32.8% 30.4% 32.9% Allot Communications 1.2x 0.5x 0.6x 0.4x 0.5x 33.8x - - - - 17.6% 3.9% -7.6% -14.7% -21.2% 3.5% -0.8% -3.3% -4.3% -9.6% Allscripts Healthcare Solutions 2.2x 2.3x 2.4x 2.1x 2.2x 43.9x 39.4x 35.2x 26.3x 24.1x 0.4% 0.0% -0.5% 0.6% 1.8% 5.0% 5.8% 6.9% 8.1% 8.9% Amdocs Limited 2.0x 2.1x 2.1x 2.0x 2.0x 10.3x 10.6x 10.7x 10.6x 10.9x 4.8% 3.1% 2.2% 1.5% 2.0% 19.4% 19.4% 19.3% 18.9% 18.6% American Software 2.1x 1.9x 2.1x 1.8x 1.7x 17.9x 15.1x 15.1x 13.5x 10.4x 2.3% 4.6% 11.6% 11.3% 10.7% 11.5% 12.5% 13.7% 13.5% 16.8% ANSYS 7.7x 7.9x 7.9x 7.3x 7.3x 16.7x 17.3x 17.3x 15.9x 15.9x 6.8% 5.1% 3.0% 0.7% 1.3% 46.0% 46.0% 45.6% 45.8% 45.7% Aspen Technology 8.1x 7.2x 7.2x 5.7x 6.6x 20.0x 17.2x 16.6x 12.8x 14.2x 14.6% 12.5% 10.4% 10.7% 10.5% 40.7% 41.9% 43.1% 44.4% 46.4% Autodesk 4.6x 4.1x 5.1x 4.4x 5.2x 47.3x 52.2x 75.7x 74.7x 546.1x 11.8% 7.1% 3.5% -0.3% -7.7% 9.7% 7.9% 6.8% 5.9% 0.9% AVG Technologies 3.6x 3.6x 2.8x 2.6x 2.5x 11.4x 11.6x 9.5x 8.6x 8.5x -3.2% 5.1% 11.5% 14.5% 13.1% 31.5% 30.7% 29.5% 30.4% 29.6% Bango PLC 11.1x 12.3x 13.5x 11.0x 5.9x ------44.9% -48.3% -43.7% -37.2% -37.2% -110.0% -129.3% -135.2% -142.1% -142.1% Barracuda Networks 6.8x 4.2x 2.5x 1.6x 2.1x 308.2x 256.7x 222.6x 60.3x 81.6x 18.7% 17.4% 16.2% 15.4% 15.4% 2.2% 1.6% 1.1% 2.6% 2.6% Blackbaud 4.6x 4.9x 5.1x 4.7x 5.0x 27.9x 30.1x 31.4x 28.8x 30.0x 13.2% 13.4% 12.5% 13.0% 13.1% 16.4% 16.3% 16.1% 16.4% 16.7% Bottomline Technologies 3.1x 3.2x 3.3x 3.3x 3.0x 26.0x 24.1x 25.7x 26.0x 22.8x 15.2% 10.1% 5.6% 3.9% 4.1% 12.1% 13.2% 13.0% 12.8% 13.3% Broadridge Financial 2.5x 2.5x 2.6x 2.5x 2.7x 13.0x 11.7x 12.1x 11.9x 12.8x 4.5% 5.3% 6.4% 6.7% 7.6% 19.6% 21.4% 21.2% 21.2% 21.3% Brocade Communications Systems 2.1x 1.7x 1.6x 1.4x 1.5x 8.0x 6.4x 6.3x 5.5x 6.1x 1.6% 1.5% 2.4% 1.7% 0.3% 26.0% 26.2% 25.7% 25.0% 24.1% BSQUARE 0.4x 0.5x 0.5x 0.4x 0.4x 7.4x 7.7x 8.4x 5.5x 7.0x 5.8% 10.6% 11.5% 11.1% 6.4% 5.2% 6.1% 6.6% 6.6% 5.5% CA 2.9x 2.7x 2.8x 2.9x 3.1x 9.1x 8.5x 8.9x 9.5x 9.9x -3.4% -4.9% -6.1% -6.6% -5.6% 32.1% 32.2% 30.9% 30.5% 31.2% CA Technologies 2.9x 2.7x 2.8x 2.9x 3.1x 9.1x 8.5x 8.9x 9.5x 9.9x -3.4% -4.9% -6.1% -6.6% -5.6% 32.1% 32.2% 30.9% 30.5% 31.2% Cadence Design Systems 3.3x 3.4x 3.6x 3.4x 4.0x 15.4x 14.4x 15.0x 14.4x 16.1x 8.7% 10.0% 9.7% 7.7% 7.7% 21.5% 23.5% 23.7% 24.0% 24.7% Cerner 6.7x 5.8x 5.1x 4.3x 4.2x 23.3x 20.4x 18.2x 15.4x 15.0x 20.0% 24.0% 29.0% 31.4% 27.4% 28.6% 28.3% 27.8% 27.7% 27.9% Check Point Software Tech 9.3x 8.5x 8.6x 8.2x 7.9x 17.1x 15.8x 16.2x 15.8x 15.3x 8.0% 8.6% 8.9% 9.0% 8.9% 54.0% 53.5% 52.9% 52.3% 51.6% Cisco Systems 2.3x 2.1x 2.1x 2.0x 2.1x 8.6x 7.9x 7.7x 6.8x 7.4x 3.1% 4.3% 4.9% 3.1% 1.6% 27.2% 27.2% 27.6% 28.8% 29.2% Citrix Systems 3.5x 3.7x 3.8x 3.4x 3.9x 16.3x 15.9x 16.7x 13.2x 13.9x 5.2% 4.0% 4.2% 4.2% 6.0% 21.4% 23.1% 22.7% 25.9% 27.9% CommVault Systems 2.7x 2.2x 2.4x 2.2x 2.6x 32.3x 46.1x 104.4x 154.7x 121.7x 3.6% -1.7% -4.9% -4.5% -2.0% 8.4% 4.7% 2.3% 1.4% 2.2% Computer Programs and Sys 2.9x 2.5x 2.5x 3.3x 3.3x 11.6x 11.1x 13.1x 18.2x 18.9x -2.2% -5.1% -12.2% -11.0% 3.4% 24.7% 22.5% 19.1% 18.3% 17.6% Constellation 5.2x 5.3x 5.2x 4.5x 4.5x 32.3x 30.9x 29.2x 19.3x 19.4x 25.8% 17.6% 12.5% 10.1% 12.1% 16.0% 17.2% 17.8% 23.2% 23.2% CSG Systems International 1.5x 1.5x 1.6x 1.7x 2.0x 9.4x 9.2x 9.3x 8.7x 9.7x -0.8% -0.8% -0.4% 0.2% 0.6% 16.3% 16.3% 17.5% 19.4% 20.8% Cyberark Software 14.9x 11.7x 8.1x 6.5x 6.7x 62.0x 48.8x 35.9x 29.7x 33.3x 67.4% 76.5% 67.9% 56.1% 47.5% 24.1% 24.0% 22.7% 21.8% 20.1% Cyren 2.9x 2.2x 2.2x 1.7x 2.2x ------4.9% -10.2% -11.9% -13.0% -8.6% -12.5% -9.4% -10.4% -5.9% -5.5% Dassault Systèmes 6.9x 6.0x 6.2x 5.8x 5.6x 27.1x 24.5x 23.4x 21.4x 20.4x 17.3% 22.9% 24.2% 23.8% 17.8% 25.4% 24.4% 26.5% 27.2% 27.3% DST Systems 1.7x 1.5x 1.7x 1.5x 1.6x 10.9x 9.8x 11.5x 10.2x 11.5x 4.1% 3.7% 3.6% 2.8% 3.6% 15.7% 15.5% 14.6% 14.3% 14.0% Electronic Arts 3.8x 4.4x 4.5x 4.0x 4.5x 14.9x 15.3x 17.2x 18.2x 18.2x 26.3% 17.3% 4.7% -4.0% -2.6% 25.2% 28.5% 26.3% 22.0% 24.5% EMC 2.1x 2.0x 2.1x 2.0x 2.1x 9.3x 9.1x 9.9x 10.1x 10.7x 5.4% 4.7% 2.8% 1.1% 0.0% 22.9% 21.9% 21.0% 19.7% 19.5% EPIQ Systems 2.1x 2.0x 1.9x 1.7x 1.8x 16.3x 14.8x 14.3x 11.0x 11.8x -3.6% -2.5% 4.7% 13.9% 21.6% 12.9% 13.5% 13.2% 15.5% 14.9%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 Evertec 6.5x 5.7x 5.2x 4.5x 4.5x 15.6x 13.6x 12.5x 11.3x 11.5x 2.2% 2.1% 2.7% 3.2% 3.2% 41.6% 41.9% 41.5% 39.7% 39.1% Evolving Systems 3.1x 2.3x 2.4x 2.4x 2.6x 10.1x 8.4x 10.2x 11.5x 11.8x 19.0% 2.7% -8.9% -13.8% -14.7% 31.1% 27.2% 23.9% 21.2% 22.1% F5 Networks 4.5x 4.2x 3.4x 3.0x 3.3x 14.3x 13.1x 11.1x 9.8x 10.9x 15.6% 13.3% 10.8% 8.8% 6.4% 31.5% 31.7% 31.0% 30.5% 29.9% Fair Isaac 4.1x 4.1x 4.0x 4.2x 4.6x 18.3x 18.2x 17.8x 18.1x 19.8x 9.7% 9.2% 6.3% 6.9% 4.0% 22.2% 22.3% 22.6% 23.0% 23.3% FalconStor Software 0.9x 1.1x 1.4x 1.2x 1.4x 238.3x 253.3x 26527.6x 159.3x - -2.1% -0.4% 3.8% 5.0% -33.5% 0.4% 0.4% 0.0% 0.7% -29.1% Fidessa 2.9x 2.4x 2.3x 2.5x 2.7x 16.3x 13.5x 13.5x 14.5x 16.0x 0.5% 2.5% 5.0% 7.4% 7.4% 17.8% 17.5% 17.2% 17.0% 17.0% First Data Corp - - 5.0x 4.4x 4.3x - - 14.9x 14.4x 14.2x 3.9% 3.4% 3.5% 2.9% 2.7% 32.7% 33.0% 33.6% 30.6% 30.0% Fiserv 4.4x 4.7x 4.9x 4.9x 5.1x 14.6x 15.3x 15.9x 15.9x 16.6x 4.3% 4.1% 3.8% 3.7% 4.0% 30.3% 30.5% 30.8% 30.5% 30.8% Fortinet 7.1x 7.7x 5.4x 3.9x 4.3x 80.5x 98.7x 82.0x 70.8x 86.1x 25.6% 27.0% 29.4% 31.0% 32.7% 8.8% 7.8% 6.6% 5.5% 5.0% GameLoft SA 1.5x 1.1x 1.6x 1.8x 2.5x 37.6x 39.6x 40.2x 32.4x 45.0x 0.5% 3.5% 8.0% 12.7% 12.7% 3.9% 2.8% 4.1% 5.6% 5.6% Gigamon 4.5x 3.3x 3.3x 2.9x 3.6x 161.6x 54.5x 42.6x 38.0x 41.4x 27.0% 38.4% 41.3% 41.3% 40.7% 2.8% 6.1% 7.7% 7.7% 8.7% Glu Mobile 2.9x 1.6x 1.0x 0.8x 0.7x 43.2x 34.2x 18.2x 31.9x - 97.5% 85.3% 41.4% 12.0% -5.3% 6.7% 4.7% 5.3% 2.5% -2.4% Gree 1.1x 0.8x 0.7x 0.7x 0.9x 3.5x 3.0x 2.7x 2.8x 3.6x -27.9% -26.4% -25.4% -25.0% -23.4% 30.3% 27.3% 26.3% 24.8% 26.3% GSE Systems 0.4x 0.3x 0.3x 0.5x 0.5x - - - 25.8x 20.0x -2.5% 17.1% 49.2% 51.3% 30.2% -7.8% -5.2% -1.5% 1.8% 2.7% Guidance Software 1.6x 2.2x 1.5x 1.2x 1.4x ------0.6% -0.2% -0.7% -1.5% -0.4% -2.6% -3.4% -4.3% -7.2% -8.9% Guidewire Software 8.2x 8.8x 9.5x 8.2x 8.7x 121.3x 147.5x 209.7x 151.4x 156.0x 13.3% 8.6% 5.4% 7.1% 9.8% 6.8% 5.9% 4.5% 5.4% 5.5% Hewlett Packard 0.8x 0.7x 0.3x 0.2x 0.2x 6.1x 5.5x 2.8x 2.2x 2.4x -25.9% -28.2% -7.3% 4.7% 21.2% 13.2% 13.3% 11.8% 10.9% 10.1% IBM 2.2x 2.1x 2.0x 2.0x 2.2x 8.3x 8.1x 7.7x 7.9x 9.2x -7.3% -10.4% -12.8% -11.9% -10.3% 26.2% 25.7% 25.6% 24.6% 23.5% iDream Sky Technologies 1.4x 1.7x 1.9x 2.0x 2.2x 74.3x 130.1x 146.1x 16.2x 17.1x 196.5% - - 66.5% 66.5% 1.9% 1.3% 1.3% 12.6% 12.6% Imperva 8.4x 9.4x 8.8x 5.4x 4.3x - - - - - 26.0% 30.1% 37.1% 42.9% 40.7% -31.4% -29.3% -22.5% -18.5% -19.1% Intuit 6.9x 6.4x 6.0x 5.8x 5.9x 24.5x 24.8x 22.2x 19.8x 19.2x -10.8% -1.2% 1.4% 6.4% 17.5% 28.1% 25.9% 27.2% 29.1% 30.5% Jack Henry & Associates 4.3x 4.4x 4.8x 5.0x 5.0x 12.6x 12.7x 13.7x 14.1x 14.4x 9.1% 7.1% 6.6% 6.4% 6.8% 34.4% 34.8% 35.1% 35.0% 34.8% Juniper Networks 2.3x 2.2x 2.5x 2.0x 1.8x 12.6x 11.4x 11.8x 9.0x 8.1x -5.3% -7.0% -3.3% 5.0% 8.0% 18.4% 19.5% 21.0% 22.2% 22.4% Konami 1.3x 1.4x 1.5x 1.4x 1.8x 9.9x 9.6x 9.8x 7.4x 6.7x 0.3% 0.1% 4.0% 11.0% 14.6% 13.3% 14.8% 15.6% 18.6% 26.8% Magic Software Enterprises 1.3x 1.2x 1.0x 1.2x 1.3x 6.8x 6.7x 5.9x 6.5x 7.3x 7.3% 4.5% 4.7% 7.1% 10.2% 18.9% 17.9% 17.2% 18.0% 17.4% Manhattan Associates 7.7x 8.4x 9.4x 7.1x 7.7x 28.1x 29.8x 32.5x 23.5x 25.0x 18.7% 17.1% 16.2% 13.1% 11.8% 27.5% 28.4% 29.0% 30.4% 30.7% Mentor Graphics 2.3x 2.3x 2.3x 1.7x 1.9x 10.7x 10.1x 10.3x 9.2x 11.6x 6.9% 8.1% 6.4% -5.1% -10.1% 21.6% 22.9% 22.4% 18.9% 16.3% Microsoft 3.3x 3.2x 4.1x 4.0x 4.0x 9.3x 8.8x 11.4x 11.7x 11.9x 13.7% 7.8% -0.8% -5.7% -8.3% 35.6% 35.9% 35.7% 34.6% 33.5% MicroStrategy 2.9x 3.3x 2.9x 2.7x 3.0x 23.2x 16.0x 11.1x 9.5x 11.0x -3.1% -5.2% -10.3% -8.6% -7.2% 12.4% 20.8% 26.2% 28.0% 27.4% MIND C.T.I. 1.5x 1.5x 1.5x 1.4x 1.3x 4.6x 4.5x 4.5x 4.3x 4.2x 26.8% 10.7% -4.1% -16.4% -20.9% 32.3% 34.2% 34.1% 31.5% 31.1% MobileIron 2.7x 1.8x 1.5x 1.3x 1.2x - - - - - 27.4% 23.3% 17.3% 12.9% 11.8% -47.2% -52.2% -56.3% -46.2% -43.9% Model N 2.5x 2.0x 2.0x 2.1x 2.3x ------13.3% -0.6% 14.7% 16.8% 18.0% -20.3% -18.2% -16.1% -18.5% -22.2% Momo 26.3x 22.1x 14.9x 11.1x 11.2x - - 354.6x 120.9x 137.3x 665.4% 416.7% 296.5% 199.4% 141.6% -24.6% -9.7% 4.2% 9.2% 8.2% Monotype Imaging Holdings 5.2x 4.5x 4.7x 4.3x 4.2x 17.7x 16.3x 17.8x 15.5x 15.7x 8.1% 6.5% 3.9% 4.3% 6.4% 29.2% 27.5% 26.5% 27.5% 26.7% MSCI 7.1x 7.0x 7.3x 7.1x 7.7x 17.2x 16.8x 16.8x 15.9x 16.5x 9.2% 8.0% 7.2% 7.9% 7.0% 41.2% 41.7% 43.6% 44.8% 46.5% Myriad Group AG 17.7x 13.8x 9.0x 10.9x 10.8x 1740.0x - - - - -12.1% -17.3% -24.4% -32.1% -32.1% 1.0% -6.0% -27.2% -55.1% -55.1% NetApp 1.2x 0.9x 1.0x 0.6x 0.7x 7.5x 7.8x 8.8x 6.0x 6.2x -3.2% -5.2% -6.7% -8.4% -9.4% 15.7% 12.1% 11.3% 10.7% 11.4%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 Netscout Systems 3.2x 7.9x 5.4x 2.5x 2.3x 12.9x 33.4x 33.8x 23.9x 30.8x 14.4% 5.6% 39.1% 76.6% 110.6% 24.9% 23.7% 16.0% 10.4% 7.3% NetSol Technologies 1.2x 1.5x 1.4x 1.6x 1.5x 85.3x 9.0x 7.0x 6.3x 6.1x 16.6% 41.3% 51.2% 49.7% 35.4% 1.4% 16.9% 19.3% 24.9% 24.2% NeuStar 2.1x 1.9x 1.7x 2.1x 2.1x 5.3x 5.0x 4.4x 5.6x 5.8x 7.6% 7.7% 7.7% 9.0% 10.2% 38.6% 39.1% 39.8% 38.1% 36.5% NICE Systems Ltd 3.4x 3.4x 3.0x 3.5x 3.7x 17.3x 17.1x 14.5x 14.4x 14.9x 7.9% 7.4% 6.5% 6.3% -9.0% 19.5% 19.7% 20.8% 24.1% 24.7% NQ Mobile 1.1x 0.9x 1.0x 0.9x 1.1x - - - - - 40.5% 27.7% 18.8% 22.4% 14.4% -18.0% -9.7% -4.0% -2.9% -0.5% Nuance Communications, Inc. 3.6x 3.6x 3.7x 3.8x 3.4x 34.1x 30.3x 29.0x 24.7x 21.8x 2.1% 1.9% 0.4% 0.8% 1.0% 10.5% 11.9% 12.8% 15.3% 15.7% Omnicell 2.6x 2.6x 2.1x 1.9x 2.4x 16.8x 17.7x 14.3x 13.9x 20.2x 15.2% 13.9% 11.9% 9.9% 18.4% 15.3% 14.6% 14.5% 13.4% 12.0% Open Text Corp 3.7x 3.5x 3.6x 3.7x 4.1x 12.8x 12.3x 13.0x 12.8x 13.5x 26.1% 14.0% 4.5% -1.5% -2.1% 28.9% 28.1% 27.8% 28.8% 30.5% Opera 2.4x 1.7x 1.6x 1.9x 1.9x 12.6x 10.3x 9.9x 13.5x 14.4x 60.1% 60.6% 38.7% 28.1% 25.4% 19.3% 16.9% 16.1% 14.3% 13.5% Oracle 4.7x 4.1x 4.0x 3.9x 4.2x 11.2x 10.0x 9.8x 9.6x 10.5x -0.1% -1.1% -3.5% -4.3% -3.1% 42.0% 41.4% 40.6% 40.1% 39.8% Palo Alto Networks 15.2x 15.6x 13.9x 11.0x 9.5x - - - - - 54.5% 55.1% 56.0% 55.6% 53.4% -11.7% -11.3% -10.5% -10.6% -11.1% Pandora Media 3.5x 3.3x 2.3x 1.7x 1.8x - - - - - 30.4% 28.0% 26.0% 26.4% 28.6% -3.6% -3.7% -3.4% -5.8% -9.1% Parametric Technology 3.6x 3.4x 3.5x 3.3x 3.9x 17.5x 17.1x 17.3x 16.9x 23.1x 2.2% -1.9% -7.5% -10.1% -12.2% 20.4% 20.0% 20.2% 19.3% 16.8% PDF Solutions 3.9x 2.8x 2.2x 2.0x 3.0x 13.0x 10.4x 7.9x 8.6x 16.8x -4.3% -5.5% -1.2% -2.2% -3.7% 30.1% 26.6% 27.3% 23.9% 18.2% Pegasystems 2.4x 2.7x 3.0x 2.4x 2.5x 20.1x 21.9x 23.5x 18.6x 19.7x 13.2% 11.4% 12.7% 15.7% 17.3% 12.0% 12.1% 12.6% 12.9% 12.9% Progress Software 3.7x 3.9x 3.0x 3.0x 3.0x 16.7x 19.2x 15.5x 13.5x 12.3x 7.2% 11.4% 13.5% 13.6% 13.1% 22.1% 20.1% 19.2% 22.2% 24.4% Proofpoint 10.8x 10.8x 10.6x 7.7x 8.0x - - - - - 40.6% 38.5% 36.8% 35.7% 36.1% -16.8% -18.8% -19.7% -20.9% -21.4% PROS Holdings 3.1x 3.2x 3.6x 1.8x 2.0x - - - - - 24.0% 15.5% 5.4% -9.5% -13.8% -5.3% -9.6% -16.6% -25.1% -29.8% QAD 1.2x 1.2x 1.2x 0.9x 0.9x 16.6x 15.8x 17.7x 16.4x 19.3x 8.4% 4.8% -0.3% -5.8% -7.4% 7.1% 7.6% 6.9% 5.3% 4.4% Qihoo 360 Technology 5.1x 4.9x 4.9x 5.3x 5.3x 19.6x 18.0x 19.7x 25.2x 25.0x 82.7% 64.2% 47.7% 29.8% 29.8% 25.9% 27.0% 25.1% 21.1% 21.1% Qiwi 5.2x 4.5x 3.2x 2.1x 2.1x 16.5x 14.1x 10.8x 7.0x 7.3x 24.5% 24.1% 22.8% 20.4% 16.0% 31.4% 32.1% 29.9% 30.2% 29.3% Qlik Technologies 5.3x 5.7x 4.5x 3.4x 3.9x 987.4x 2792.8x 984.3x 569.5x 641.3x 16.7% 14.1% 10.1% 10.0% 11.4% 0.5% 0.2% 0.5% 0.6% 0.6% Quality Systems 1.7x 1.4x 1.6x 1.6x 1.6x 16.3x 13.0x 13.9x 14.1x 13.7x 10.2% 9.2% 8.0% 3.3% 0.5% 10.4% 10.5% 11.5% 11.6% 11.6% Radware 4.4x 3.5x 2.7x 1.9x 1.6x 23.0x 16.9x 15.0x 13.1x 17.1x 14.7% 12.7% 4.0% -2.4% -8.9% 19.1% 20.4% 18.0% 14.2% 9.3% Rapid7 - 11.3x 7.3x 4.1x 3.6x ------43.8% 45.4% -28.1% -26.4% -27.5% -35.6% -39.3% Red Hat 7.3x 7.2x 7.2x 6.1x 6.1x 38.7x 37.8x 38.5x 33.8x 35.0x 15.8% 14.3% 14.3% 14.7% 15.8% 18.9% 19.0% 18.6% 17.9% 17.5% Redknee Solutions 1.5x 1.2x 1.1x 0.9x 0.9x 22.2x 11.3x 9.8x 9.7x 25.6x -3.1% -11.9% -13.6% -19.1% -18.6% 6.7% 10.9% 11.4% 9.3% 3.5% Sage Group 4.6x 4.1x 4.5x 4.5x 4.7x 17.0x 15.3x 16.4x 16.7x 17.6x 6.8% 9.0% 6.1% 4.8% 3.6% 26.9% 26.7% 27.1% 26.9% 26.7% SAP 4.8x 4.2x 4.5x 4.4x 4.1x 15.7x 13.9x 14.9x 16.0x 14.8x 8.6% 12.8% 15.7% 18.4% 14.5% 30.8% 30.2% 30.1% 27.5% 27.7% SAP AG 4.8x 4.2x 4.5x 4.4x 4.1x 15.7x 13.9x 14.9x 16.0x 14.8x 8.6% 12.8% 15.7% 18.4% 14.5% 30.8% 30.2% 30.1% 27.5% 27.7% Sapiens International 2.3x 3.0x 2.7x 2.6x 2.7x 18.4x 21.7x 18.1x 16.6x 17.6x 15.2% 14.1% 17.7% 17.9% 18.2% 12.7% 13.8% 14.9% 15.4% 15.2% Secureworks Corp - - - - 3.0x ------29.5% 29.8% -9.4% -13.7% -16.3% -17.8% -15.8% Silver Spring Networks 1.8x 1.5x 1.6x 1.0x 1.4x - - 20.2x 5.1x 12.0x -8.4% 27.7% 74.2% 155.9% 35.7% -6.1% -2.6% 7.9% 20.1% 11.5% Software AG 2.5x 2.4x 2.3x 2.7x 2.8x 9.5x 8.9x 8.1x 9.1x 9.1x -11.9% -6.8% -2.2% 1.8% 5.0% 26.1% 26.9% 28.6% 29.8% 30.9% Sourcefire 1.0x 0.9x 1.2x 1.2x 1.2x 13.7x 8.4x 7.9x 7.9x 7.9x 2.2% 5.6% 27.2% 33.9% 37.6% 7.1% 10.9% 15.5% 15.7% 14.7% Splunk 15.5x 14.3x 10.9x 7.6x 8.0x - - - - - 48.1% 46.8% 47.7% 48.3% 48.5% -45.5% -42.0% -41.5% -39.9% -39.9% Square - - 3.9x 2.9x 2.0x ------49.0% 52.6% -11.3% -8.3% -8.1% -7.5% -7.2%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 SS&C 7.2x 8.0x 10.2x 8.4x 7.6x 19.1x 20.9x 31.2x 25.6x 23.3x 8.6% 10.2% 20.1% 30.3% 42.0% 37.5% 38.2% 32.7% 32.9% 32.7% Stratasys 2.0x 1.6x 1.4x 1.1x 1.3x 19.4x 22.8x 29.7x - 277.0x 43.4% 27.2% 7.5% -7.2% -10.5% 10.2% 7.0% 4.8% -1.6% 0.5% Symantec 3.8x 2.1x 1.9x 1.9x 2.5x 22.2x 7.2x 6.5x 6.0x 10.0x -5.4% -6.4% 15.2% 32.0% -9.0% 16.9% 28.8% 29.7% 31.5% 24.8% Synchronoss Technologies 4.2x 3.8x 3.0x 2.4x 2.9x 15.4x 13.6x 10.4x 8.8x 11.9x 33.2% 35.3% 30.1% 26.6% 19.7% 27.1% 28.0% 28.5% 27.2% 24.5% Synopsys 3.1x 3.2x 2.9x 2.7x 3.0x 16.3x 16.7x 16.0x 15.3x 17.0x 8.8% 8.4% 9.0% 7.0% 7.2% 19.3% 18.8% 18.4% 17.7% 17.6% Take-Two Interactive 1.5x 1.5x 1.6x 1.7x 1.7x - - - - 26.6x -53.9% -47.2% -37.1% 36.7% 30.5% -21.9% -21.3% -10.0% -15.8% 6.3% Tangoe 2.2x 1.3x 1.3x 1.3x 1.3x 28.5x 19.2x 30.5x 29.0x 29.0x 10.9% 8.3% 5.7% 5.7% 5.7% 7.7% 6.7% 4.4% 4.4% 4.4% TeleNav 1.5x 1.0x 1.0x 0.7x 0.6x ------7.1% 6.6% 20.1% 21.7% 18.1% -22.7% -20.0% -19.3% -18.3% -18.4% Teradata 2.1x 1.5x 1.4x 1.3x 1.3x 10.5x 8.2x 8.3x 8.6x 8.6x -1.7% -3.9% -6.1% -7.4% -7.2% 20.1% 18.5% 17.2% 14.9% 15.2% The Descartes Systems Group 6.0x 6.5x 7.7x 6.9x 7.5x 20.0x 21.4x 24.5x 21.6x 23.0x 10.3% 8.8% 8.6% 8.3% 8.6% 30.0% 30.6% 31.3% 32.0% 32.5% Trend Micro 3.8x 3.9x 4.2x 3.9x 3.4x 11.0x 11.3x 12.4x 12.3x 10.8x 6.8% 8.8% 9.3% 7.9% 5.7% 34.4% 34.3% 33.9% 31.6% 31.9% Tyler Technologies 7.7x 8.4x 10.0x 7.9x 8.5x 34.6x 37.4x 44.4x 36.3x 40.5x 18.9% 18.2% 17.5% 19.9% 23.3% 22.3% 22.5% 22.6% 21.8% 21.0% Ubisoft Entertainment 1.1x 1.3x 2.5x 2.3x 2.4x 9.1x 35.9x - 15.6x 5.4x 45.3% 20.2% -0.9% -3.0% -4.8% 12.6% 3.5% -7.7% 14.8% 44.4% Varonis Systems 4.3x 3.7x 2.7x 2.8x 3.5x - - - - - 34.5% 29.1% 25.5% 25.5% 26.0% -18.3% -19.3% -17.8% -13.7% -12.3% VASCO Data Security International 3.9x 2.4x 2.2x 1.8x 2.4x 17.2x 9.9x 9.7x 8.0x 13.3x 43.7% 45.4% 38.7% 19.8% -2.1% 22.9% 23.7% 22.4% 22.6% 18.2% Verint Systems Inc 3.7x 3.3x 2.8x 2.3x 2.2x 26.2x 23.6x 20.0x 18.7x 20.3x 18.8% 14.3% 8.3% 0.2% -3.0% 14.3% 14.2% 13.8% 12.3% 10.9% Verisk 7.7x 8.7x 8.4x 7.4x 7.4x 16.4x 18.3x 17.3x 16.3x 16.2x 5.7% 8.0% 11.7% 18.4% 26.4% 46.9% 47.4% 48.6% 45.7% 45.6% VMWare 5.1x 4.7x 3.0x 2.3x 2.7x 20.2x 18.2x 11.4x 8.5x 10.2x 15.1% 13.2% 11.4% 10.1% 8.7% 25.1% 25.7% 26.2% 26.7% 26.1% Zynga 2.4x 1.8x 1.7x 1.2x 1.8x ------9.3% 7.5% 14.4% 10.8% 8.9% -17.1% -13.6% -8.6% -6.4% -3.4%

Billing & Service Management 2Q15 3Q15 4Q15 1Q16 2Q16 Enterprise Resource Planning 2Q15 3Q15 4Q15 1Q16 2Q16 IT Conglomerates 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 2.0x 1.8x 1.7x 2.0x 2.0x EV/TTM Revenue 4.1x 3.9x 3.9x 3.9x 4.1x EV/TTM Revenue 3.1x 3.9x 3.9x 3.9x 4.0x EV/NTM Revenue 2.0x 1.8x 1.8x 2.0x 1.9x EV/NTM Revenue 3.9x 3.5x 3.8x 4.1x 3.8x EV/NTM Revenue 3.1x 3.1x 3.8x 4.0x 3.6x EV/TTM EBITDA 9.1x 10.0x 9.6x 8.8x 10.9x EV/TTM EBITDA 16.3x 15.8x 15.3x 16.0x 14.8x EV/TTM EBITDA 8.8x 9.5x 9.5x 9.6x 10.5x EV/TTM CFO 10.1x 10.0x 9.4x 9.5x 10.0x EV/TTM CFO 20.1x 16.2x 16.0x 14.9x 11.7x EV/TTM CFO 10.6x 11.1x 11.2x 10.2x 11.1x Gross Profit Margin 59.7% 59.7% 59.3% 58.8% 57.2% Gross Profit Margin 60.3% 59.6% 59.0% 58.6% 58.5% Gross Profit Margin 60.3% 59.6% 59.0% 58.6% 58.5% EBITDA Margin 27.1% 27.2% 23.9% 21.2% 22.1% EBITDA Margin 26.9% 26.7% 27.1% 26.9% 26.7% EBITDA Margin 30.8% 30.2% 30.1% 27.5% 27.7% Net Income Margin 12.7% 12.6% 12.2% 11.4% 11.1% Net Income Margin 13.9% 13.5% 13.5% 12.8% 12.0% Net Income Margin 17.2% 13.0% 15.5% 14.7% 15.3% TTM Revenue Growth (YoY) 7.6% 3.1% -0.4% 0.2% 0.6% TTM Revenue Growth (YoY) 6.8% 4.8% 6.1% 4.8% 3.6% TTM Revenue Growth (YoY) -0.1% -1.1% -3.5% -4.3% -3.1% TTM EBITDA Growth (YoY) 20.0% 14.3% 11.2% 5.4% -2.2% TTM EBITDA Growth (YoY) -4.6% -4.5% -2.7% -4.4% -0.4% TTM EBITDA Growth (YoY) -4.6% -4.5% -7.2% -8.4% -8.2% TTM Earnings Growth (YoY) 24.2% 21.2% 20.4% -1.7% -10.4% TTM Earnings Growth (YoY) -9.3% -8.8% 3.4% -6.6% -10.4% TTM Earnings Growth (YoY) -10.8% -13.2% -9.2% -18.3% -10.4% Cash as Percent of Market Cap 18.7% 15.4% 15.4% 14.1% 13.4% Cash as Percent of Market Cap 16.6% 23.4% 21.2% 24.6% 25.8% Cash as Percent of Market Cap 23.6% 26.7% 22.9% 19.6% 21.5% Enterprise Value Growth (YoY) 13.8% 4.1% -10.2% -25.2% -20.1% Enterprise Value Growth (YoY) 5.2% 3.8% 17.8% -0.3% -3.7% Enterprise Value Growth (YoY) 3.0% -6.9% -8.0% -15.5% -11.0%

Business Intelligence 2Q15 3Q15 4Q15 1Q16 2Q16 Financial & Accounting 2Q15 3Q15 4Q15 1Q16 2Q16 Mobile Solutions/Content 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 3.8x 3.1x 3.3x 2.8x 3.0x EV/TTM Revenue 4.1x 4.1x 4.1x 3.3x 3.0x EV/TTM Revenue 1.9x 1.7x 1.9x 1.7x 1.8x EV/NTM Revenue 3.2x 3.2x 2.9x 2.8x 3.1x EV/NTM Revenue 4.1x 3.5x 3.9x 4.0x 3.6x EV/NTM Revenue 2.2x 1.2x 1.4x 1.5x 1.6x EV/TTM EBITDA 18.9x 16.9x 16.5x 14.9x 14.3x EV/TTM EBITDA 16.4x 16.1x 15.6x 15.9x 16.6x EV/TTM EBITDA 18.5x 19.7x 16.2x 20.7x 17.1x EV/TTM CFO 29.5x 24.9x 25.8x 20.1x 23.3x EV/TTM CFO 17.2x 20.0x 20.1x 19.0x 21.7x EV/TTM CFO 24.2x 17.4x 23.2x 21.2x 18.5x Gross Profit Margin 73.5% 74.9% 75.4% 75.7% 75.9% Gross Profit Margin 56.0% 56.1% 55.7% 54.8% 54.6% Gross Profit Margin 59.7% 59.8% 57.0% 54.1% 54.1% EBITDA Margin 12.4% 18.5% 17.2% 14.9% 15.2% EBITDA Margin 22.2% 22.3% 22.6% 24.9% 24.2% EBITDA Margin 1.0% -3.7% 1.3% 2.5% -0.5% Net Income Margin 5.7% 4.2% -1.8% -1.2% -0.8% Net Income Margin 8.2% 8.7% 9.7% 10.8% 11.3% Net Income Margin -5.2% -9.9% -12.6% -2.9% -6.5% TTM Revenue Growth (YoY) 9.7% 11.4% 10.1% 10.0% 11.4% TTM Revenue Growth (YoY) 5.5% 5.4% 4.7% 4.8% 4.0% TTM Revenue Growth (YoY) 30.4% 25.5% 19.4% 21.7% 14.4% TTM EBITDA Growth (YoY) -15.1% -23.6% -6.2% 10.7% 23.0% TTM EBITDA Growth (YoY) -4.5% 1.2% 3.0% -2.0% -0.4% TTM EBITDA Growth (YoY) -1.1% 1.7% -6.3% -2.5% -2.5% TTM Earnings Growth (YoY) -11.8% 4.3% 21.3% 26.4% 33.9% TTM Earnings Growth (YoY) 9.3% 2.5% -2.7% -2.4% 6.7% TTM Earnings Growth (YoY) 17.1% 37.4% 51.0% 21.1% -3.9% Cash as Percent of Market Cap 14.8% 15.0% 15.2% 18.3% 16.4% Cash as Percent of Market Cap 4.6% 4.6% 4.4% 3.5% 5.4% Cash as Percent of Market Cap 19.7% 21.6% 22.0% 36.6% 20.0% Enterprise Value Growth (YoY) 21.7% 35.0% 7.9% -12.5% -2.1% Enterprise Value Growth (YoY) 15.1% 20.5% 16.9% 4.3% 0.3% Enterprise Value Growth (YoY) -14.6% -31.0% -25.5% -28.7% -30.7%

Development Platforms 2Q15 3Q15 4Q15 1Q16 2Q16 Gaming 2Q15 3Q15 4Q15 1Q16 2Q16 Networking & Network Perf Mgmt 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 2.5x 2.4x 2.3x 2.7x 2.8x EV/TTM Revenue 1.6x 2.0x 2.2x 2.1x 2.4x EV/TTM Revenue 2.2x 2.5x 2.3x 1.9x 1.8x EV/NTM Revenue 2.7x 2.5x 2.5x 2.8x 2.6x EV/NTM Revenue 1.2x 1.2x 1.9x 2.1x 2.3x EV/NTM Revenue 2.2x 2.0x 2.1x 1.9x 1.7x EV/TTM EBITDA 9.6x 9.3x 8.2x 9.1x 9.1x EV/TTM EBITDA 14.4x 18.6x 17.3x 17.9x 18.8x EV/TTM EBITDA 13.1x 12.6x 10.9x 9.8x 10.9x EV/TTM CFO 13.6x 11.1x 11.2x 12.8x 15.6x EV/TTM CFO 11.7x 7.2x 8.4x 12.6x 12.9x EV/TTM CFO 11.7x 9.8x 9.5x 10.4x 10.4x Gross Profit Margin 73.5% 74.9% 75.4% 75.7% 75.9% Gross Profit Margin 66.7% 69.2% 68.8% 67.1% 67.4% Gross Profit Margin 75.4% 75.1% 75.5% 75.5% 75.5% EBITDA Margin 18.9% 19.0% 18.6% 18.0% 17.5% EBITDA Margin 13.0% 9.2% 9.8% 16.7% 25.6% EBITDA Margin 18.4% 19.5% 18.0% 14.2% 9.3% Net Income Margin 9.3% 9.4% 9.1% 9.2% 8.7% Net Income Margin 5.2% 4.5% 3.0% 3.6% 5.5% Net Income Margin -0.4% 3.2% 2.8% 8.6% 4.5% TTM Revenue Growth (YoY) 7.2% 10.6% 11.5% 11.1% 10.2% TTM Revenue Growth (YoY) 2.6% 5.9% 4.4% 8.4% 9.3% TTM Revenue Growth (YoY) 14.7% 4.3% 4.9% 5.0% 6.4% TTM EBITDA Growth (YoY) -1.5% -4.9% 4.5% 19.7% 12.0% TTM EBITDA Growth (YoY) -29.7% -28.8% 2.8% 24.2% 98.0% TTM EBITDA Growth (YoY) 0.9% 2.1% 8.2% 11.6% 8.9% TTM Earnings Growth (YoY) -10.5% -2.2% 14.1% 18.5% 8.0% TTM Earnings Growth (YoY) 122.1% 201.3% 111.3% 1.5% 6.7% TTM Earnings Growth (YoY) 28.7% 39.3% 21.0% 14.7% -2.3% Cash as Percent of Market Cap 22.4% 17.0% 20.1% 20.2% 17.7% Cash as Percent of Market Cap 15.3% 16.3% 15.4% 14.6% 16.0% Cash as Percent of Market Cap 18.3% 24.0% 22.5% 29.7% 26.4% Enterprise Value Growth (YoY) 47.1% 30.6% 7.9% 8.9% -0.8% Enterprise Value Growth (YoY) -2.8% 9.8% 46.7% 38.2% 70.7% Enterprise Value Growth (YoY) 22.0% 4.2% -14.7% -26.1% -21.1%

Engineering & PLM 2Q15 3Q15 4Q15 1Q16 2Q16 Healthcare 2Q15 3Q15 4Q15 1Q16 2Q16 Security 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 3.3x 3.4x 3.5x 3.3x 3.9x EV/TTM Revenue 2.4x 2.3x 2.4x 2.0x 2.3x EV/TTM Revenue 4.1x 3.6x 3.6x 3.3x 3.0x EV/NTM Revenue 3.7x 3.2x 3.5x 3.6x 3.9x EV/NTM Revenue 2.2x 1.9x 2.2x 1.8x 1.8x EV/NTM Revenue 5.0x 3.5x 3.8x 3.1x 2.5x EV/TTM EBITDA 16.4x 17.0x 16.3x 15.6x 17.0x EV/TTM EBITDA 15.2x 14.9x 15.3x 14.8x 17.0x EV/TTM EBITDA 16.0x 12.7x 13.1x 12.4x 13.3x EV/TTM CFO 16.9x 16.2x 16.3x 17.2x 19.1x EV/TTM CFO 14.1x 15.7x 17.9x 17.7x 18.5x EV/TTM CFO 33.3x 17.1x 17.7x 15.0x 14.3x Gross Profit Margin 84.5% 84.1% 84.1% 84.6% 84.3% Gross Profit Margin 50.1% 49.1% 49.3% 49.5% 49.1% Gross Profit Margin 74.8% 74.2% 73.9% 73.5% 74.2% EBITDA Margin 21.5% 22.9% 22.4% 19.3% 17.6% EBITDA Margin 12.9% 12.6% 13.0% 12.5% 11.8% EBITDA Margin 2.2% 1.6% 1.1% 2.6% 2.6% Net Income Margin 11.1% 11.9% 11.7% 9.7% 8.8% Net Income Margin 6.2% 6.3% 6.6% 6.5% 3.4% Net Income Margin -11.5% -12.0% -12.9% -1.4% -1.4% TTM Revenue Growth (YoY) 8.7% 8.4% 7.5% 0.7% 1.3% TTM Revenue Growth (YoY) 8.0% 10.0% 9.9% 6.6% 8.2% TTM Revenue Growth (YoY) 12.6% 8.8% 16.2% 29.5% 17.4% TTM EBITDA Growth (YoY) 2.9% 1.4% 11.7% 0.1% -2.0% TTM EBITDA Growth (YoY) -5.9% -4.5% 2.2% 11.6% 15.1% TTM EBITDA Growth (YoY) -4.7% -2.0% 1.1% 3.8% 4.9% TTM Earnings Growth (YoY) -7.6% 2.8% 3.1% -0.9% -0.6% TTM Earnings Growth (YoY) 19.0% 18.6% 19.1% 2.7% -21.5% TTM Earnings Growth (YoY) -0.4% 3.2% 5.0% 0.0% 1.7% Cash as Percent of Market Cap 13.1% 12.6% 12.8% 14.4% 12.6% Cash as Percent of Market Cap 6.4% 6.5% 7.4% 4.8% 4.2% Cash as Percent of Market Cap 13.3% 12.9% 14.7% 19.4% 17.1% Enterprise Value Growth (YoY) 17.5% 12.9% 7.4% -8.3% -3.6% Enterprise Value Growth (YoY) 11.5% 4.1% 3.8% -1.0% 2.3% Enterprise Value Growth (YoY) 29.6% 12.3% 35.1% -5.0% -19.0%

Storage, Data Mgmt & Integration 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 2.1x 2.1x 2.1x 2.0x 2.1x EV/NTM Revenue 2.3x 1.9x 2.2x 2.3x 2.3x EV/TTM EBITDA 8.3x 8.4x 9.0x 9.5x 8.6x EV/TTM CFO 8.7x 8.6x 8.9x 9.2x 11.0x Gross Profit Margin 80.9% 80.3% 80.1% 80.1% 74.3% EBITDA Margin 15.7% 12.1% 11.3% 10.7% 11.4% Net Income Margin 9.1% 7.4% 6.7% 6.5% 4.1% TTM Revenue Growth (YoY) 3.1% 1.5% 2.8% 1.7% 0.0% TTM EBITDA Growth (YoY) -1.2% -10.9% -10.8% -11.9% -15.0% TTM Earnings Growth (YoY) -6.1% 0.6% -6.5% -5.2% -14.8% Cash as Percent of Market Cap 23.3% 22.2% 23.1% 24.4% 21.0% Enterprise Value Growth (YoY) -0.5% -1.3% -11.5% -25.3% -5.3%

Systems Management 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 4.8x 3.9x 3.7x 2.9x 3.1x EV/NTM Revenue 3.5x 3.4x 2.8x 3.1x 3.2x EV/TTM EBITDA 19.0x 16.7x 16.4x 13.3x 13.9x EV/TTM CFO 14.0x 14.4x 12.7x 11.2x 12.2x Gross Profit Margin 84.8% 84.8% 84.9% 84.9% 84.9% EBITDA Margin 24.9% 23.7% 22.7% 25.9% 26.1% Net Income Margin 13.5% 12.9% 9.8% 9.7% 11.2% TTM Revenue Growth (YoY) 14.4% 5.6% 11.4% 10.1% 8.7% TTM EBITDA Growth (YoY) 6.2% 11.1% 8.4% 14.3% 7.1% TTM Earnings Growth (YoY) -7.4% 3.7% -4.0% 11.6% 10.2% Cash as Percent of Market Cap 10.1% 9.1% 8.7% 10.6% 15.1% Enterprise Value Growth (YoY) 3.4% 4.7% 11.7% 3.7% 1.5%

Vertical - Finance 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 4.5x 4.9x 4.9x 4.9x 5.0x EV/NTM Revenue 4.0x 4.1x 4.6x 5.0x 4.8x EV/TTM EBITDA 14.2x 14.0x 13.8x 14.1x 16.0x EV/TTM CFO 18.9x 16.4x 17.6x 17.3x 17.9x Gross Profit Margin 42.5% 42.7% 42.9% 43.0% 42.8% EBITDA Margin 34.4% 34.8% 32.7% 32.9% 32.7% Net Income Margin 16.4% 16.8% 10.5% 10.5% 10.6% TTM Revenue Growth (YoY) 8.6% 7.1% 6.6% 7.4% 7.4% TTM EBITDA Growth (YoY) 1.9% 5.6% 11.5% 13.1% 17.0% TTM Earnings Growth (YoY) 1.6% 9.2% -3.3% 1.3% 1.3% Cash as Percent of Market Cap 6.5% 6.7% 6.2% 3.0% 4.8% Enterprise Value Growth (YoY) 30.9% 28.9% 29.9% 13.5% 16.7%

Vertical - Other 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 5.0x 5.2x 5.1x 4.5x 4.5x EV/NTM Revenue 4.4x 4.0x 4.4x 4.3x 3.9x EV/TTM EBITDA 32.3x 31.3x 28.8x 19.4x 19.4x EV/TTM CFO 28.8x 29.7x 23.9x 25.8x 25.3x Gross Profit Margin 47.5% 47.3% 47.3% 46.9% 46.5% EBITDA Margin 12.9% 13.8% 14.9% 16.4% 15.2% Net Income Margin 4.9% 4.4% 5.1% 9.6% 6.7% TTM Revenue Growth (YoY) 13.3% 14.1% 12.5% 13.9% 18.2% TTM EBITDA Growth (YoY) 7.3% 17.2% 20.5% 38.6% 40.6% TTM Earnings Growth (YoY) 19.3% 37.7% 32.2% 10.1% 0.5% Cash as Percent of Market Cap 4.9% 5.1% 5.5% 4.2% 3.6% Enterprise Value Growth (YoY) 35.9% 58.2% 53.0% 32.3% 16.5%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 1-800-FLOWERS.COM 0.7x 0.6x 0.6x 0.5x 0.5x 9.1x 10.4x 9.5x 6.3x 6.6x 48.3% 51.4% 13.3% 8.0% 8.0% 7.2% 6.0% 6.8% 7.3% 7.3% 58.com 27.5x 14.7x 12.8x 10.8x 8.3x - - - - - 78.4% 99.7% 134.6% 169.8% 182.7% -15.5% -18.8% -33.0% -30.6% -23.9% 8x8 3.7x 3.3x 4.5x 4.2x 4.2x 68.8x 65.0x 135.0x 191.5x 287.5x 26.3% 25.6% 25.8% 26.4% 28.9% 5.3% 5.1% 3.4% 2.2% 1.5% Akamai Technologies 6.5x 6.1x 4.9x 4.2x 4.0x 19.2x 18.5x 15.0x 13.5x 12.9x 22.5% 19.3% 15.6% 11.9% 9.9% 34.0% 33.1% 32.4% 31.5% 31.2% Alibaba 16.6x 13.6x 14.9x 11.9x 12.2x 45.7x 41.4x 44.7x 35.0x 34.1x 45.1% 40.3% 35.7% 33.3% 32.7% 36.3% 32.7% 33.2% 34.1% 35.8% Amazon.com 2.2x 2.6x 3.1x 2.5x 2.9x 41.5x 43.0x 44.6x 34.0x 36.5x 17.7% 17.2% 18.0% 20.2% 23.3% 5.3% 6.0% 7.0% 7.4% 8.0% Angie's List 1.1x 0.9x 1.6x 1.4x 1.4x 75.3x 18.2x 25.8x 22.9x 30.1x 22.5% 17.0% 12.7% 9.2% 5.7% 1.4% 4.7% 6.0% 6.3% 4.8% Baidu.com 7.9x 5.6x 6.4x 5.3x 5.1x 24.6x 18.7x 24.8x 20.2x 20.1x 47.4% 42.5% 38.6% 35.3% 32.9% 32.3% 30.1% 26.0% 26.4% 25.6% Bankrate 4.6x 3.9x 4.9x 3.4x 2.4x 13.9x 12.3x 13.2x 11.7x 9.2x -37.5% -40.0% -42.5% 5.8% 23.7% 33.2% 32.0% 37.2% 29.1% 25.7% Baozun 1.9x 1.0x 0.7x 0.4x 0.4x - - 50.8x 34.5x 35.6x - - 68.2% 64.0% 55.6% -2.2% -1.8% 1.4% 1.2% 1.2% Bitauto Holdings 6.4x 1.9x 1.9x 1.2x - 34.1x 17.8x 51.3x 14.5x - 80.7% 89.3% 90.5% 63.1% - 18.7% 10.6% 3.8% 8.4% - BlueNile 0.6x 0.7x 0.8x 0.5x 0.6x 17.9x 20.8x 22.7x 13.0x 15.8x 4.3% 6.2% 5.5% 1.4% 0.1% 3.4% 3.4% 3.5% 3.6% 3.5% Brightcove 1.6x 1.2x 1.4x 1.2x 1.3x - - - 111.8x 84.2x 9.0% 6.9% 6.1% 7.8% 8.9% -2.4% -1.9% -0.8% 1.1% 1.5% BroadSoft 4.1x 3.7x 3.7x 3.2x 3.9x 35.0x 47.6x 60.7x 29.3x 35.3x 25.1% 25.8% 25.7% 28.6% 29.6% 11.9% 7.9% 6.1% 10.9% 10.9% Carbonite 1.9x 1.9x 1.6x 1.1x 1.3x - - - - - 13.1% 12.3% 11.7% 11.4% 19.9% -0.2% -1.4% -4.9% -5.7% -3.1% Care.com 1.1x 1.0x 1.0x 0.9x 1.4x - - - - - 33.6% 26.9% 25.3% 24.2% 24.2% -15.3% -9.7% -7.3% -2.4% -2.4% ChangYou.com 2.0x 1.1x 1.0x 0.9x 0.5x 9.7x 4.1x 2.8x 2.9x 1.7x 5.7% 9.7% 11.1% 0.8% -12.8% 20.9% 27.5% 36.0% 31.9% 32.0% Chegg 1.9x 1.9x 1.7x 1.1x 1.2x 30.4x 30.9x 23.3x 124.8x 107.6x 17.2% 14.5% 6.8% -1.1% -10.2% 6.2% 6.3% 7.3% 0.9% 1.1% Cimpress 2.2x 2.0x 2.2x 2.1x 2.2x 14.6x 14.7x 16.7x 16.0x 16.1x 19.8% 17.6% 15.6% 13.9% 16.4% 14.9% 13.6% 13.0% 13.1% 13.9% Coupons.com 3.8x 2.7x 1.8x 2.3x 3.2x - - - - - 23.5% 17.6% 6.3% 7.0% 9.7% -6.3% -6.5% -10.0% -9.4% -8.5% Criteo SA 2.2x 2.4x 1.8x 1.5x 1.6x 26.5x 29.1x 21.6x 17.3x 18.2x 107.6% 69.1% 64.2% 33.9% 27.9% 8.5% 8.2% 8.5% 8.6% 9.0% Ctrip 7.9x 7.2x 13.0x 11.9x 12.2x - - 643.3x 185.9x - 39.1% 41.4% 44.6% 48.3% 57.9% -2.6% -2.5% 2.0% 6.4% -7.2% DangDang 0.4x 0.2x 0.2x 0.2x 0.2x 95.6x - - 13.7x 15.6x 25.4% 22.2% 21.4% 17.0% 17.0% 0.4% -0.2% -0.4% 1.4% 1.4% DemandMedia 0.4x 0.4x 0.5x 0.5x 0.7x 15.7x - - - - 4.4% -22.5% -25.6% -26.9% -25.4% 2.7% -4.2% -11.4% -13.3% -18.7% eBay 10.2x 1.8x 2.0x 3.4x 3.3x 26.9x 6.3x 7.4x 9.8x 9.6x -57.9% 39.4% 61.0% -2.3% 26.5% 37.9% 27.8% 27.6% 34.3% 34.4% eHealth 1.0x 1.1x 0.9x 0.6x 0.9x 27.0x 34.7x 31.8x 21.1x 6.7x 1.7% -1.3% -2.4% 5.5% 6.4% 3.6% 3.2% 2.7% 3.0% 13.0% Everyday Health 2.4x 2.1x 1.4x 1.0x 1.2x 30.4x 22.4x 16.0x 9.6x 12.6x 15.4% 20.5% 22.4% 25.9% 30.9% 8.0% 9.2% 8.6% 10.4% 9.2% Expedia 2.3x 2.6x 2.8x 2.8x 2.6x 18.8x 22.6x 24.3x 25.3x 23.0x 19.7% 16.3% 13.9% 15.8% 21.3% 12.2% 11.4% 11.7% 11.0% 11.1% Facebook 16.0x 16.9x 17.6x 16.3x 15.9x 34.7x 39.0x 42.3x 35.5x 33.2x 51.5% 46.2% 42.3% 43.8% 46.3% 46.3% 43.4% 41.6% 46.0% 47.7% GoDaddy 2.0x 1.8x 2.0x 1.9x 2.0x 29.0x 30.7x 28.1x 22.8x 21.9x 21.5% 19.9% 17.6% 15.9% 15.3% 6.9% 5.9% 6.9% 8.1% 9.3% Google 4.6x 5.5x 6.3x 5.8x 5.5x 14.3x 16.8x 19.3x 17.8x 16.9x 17.0% 14.4% 12.8% 13.6% 15.0% 32.3% 32.5% 32.5% 32.6% 32.7% Groupon 1.1x 0.6x 0.4x 0.5x 0.4x 29.2x 15.7x 11.8x 22.5x 44.9x 13.5% 9.9% 5.4% 2.5% 1.2% 3.9% 3.6% 3.3% 2.1% 1.0% GrubHub 10.9x 7.0x 5.5x 4.4x 4.9x 39.6x 25.1x 20.8x 17.9x 20.9x 66.8% 53.3% 46.0% 42.5% 36.1% 27.4% 27.8% 26.5% 24.7% 23.2% Harmonic 1.2x 1.0x 1.0x 0.5x 0.7x 26.4x 18.2x 25.9x 23.6x - -8.3% -8.2% -10.7% -13.0% -17.4% 4.7% 5.4% 3.8% 2.2% -1.7% Interactive Intelligence 2.6x 2.2x 1.8x 1.5x 2.0x 1016.7x 86.1x 74.0x 159.6x - 8.3% 12.1% 10.7% 14.5% 14.0% 0.3% 2.5% 2.4% 0.9% -0.1% InterActiveCorp 2.0x 2.1x 1.8x 1.4x 1.4x 14.3x 16.4x 14.4x 12.0x 12.2x 4.0% 6.0% 7.0% 3.9% 4.3% 14.1% 12.7% 12.4% 11.9% 11.7% LendingClub ------110.5% 104.5% 105.4% 103.6% 97.5% - - - - -

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 LifeLock 2.3x 0.9x 1.8x 1.4x 1.6x 35.5x 13.4x 25.0x 18.4x 22.4x 27.3% 26.3% 25.0% 23.4% 21.8% 6.4% 6.8% 7.3% 7.7% 7.0% Limelight Networks 2.0x 1.2x 0.7x 0.4x 0.8x ------3.2% -0.9% 3.2% 5.3% 4.0% -4.4% -5.0% -5.9% -2.8% -1.0% LinkedIn 10.4x 9.1x 10.2x 4.5x 4.7x 103.1x 108.1x 123.6x 54.7x 57.0x 42.1% 38.6% 37.1% 34.8% 34.9% 10.1% 8.5% 8.3% 8.3% 8.3% Liquidity Services 0.4x 0.3x 0.4x 0.2x 0.3x 5.2x 5.0x 6.9x - - -6.0% -13.8% -19.9% -32.3% -32.0% 8.6% 6.5% 5.1% -0.2% -1.7% Mail.ru Group 8.2x 6.3x 8.0x 8.4x 8.1x 17.7x 14.2x 20.2x 23.7x 22.9x 19.7% 19.9% 18.8% 17.9% 17.9% 46.2% 44.0% 39.5% 35.4% 35.4% MakeMyTrip 2.4x 1.6x 1.9x 2.2x 1.9x - - - - - 17.3% 9.3% 5.0% 5.1% 12.1% -3.4% -4.4% -6.2% -10.6% -17.8% Marchex 0.7x 0.5x 0.5x 0.4x 0.3x 39.5x 39.3x 42.8x 28.5x - -2.7% -14.6% -23.5% -17.6% -11.4% 1.9% 1.2% 1.1% 1.3% -1.0% Match Group - - 3.4x 3.7x 4.2x - - 14.1x 15.2x 16.9x - - - 14.9% 17.2% 25.7% 23.4% 24.2% 24.0% 24.6% MaxPoint Interactive 1.8x 0.9x 0.2x 0.1x 0.3x - - - - - 70.2% 60.4% 49.5% 31.6% 17.6% -9.7% -9.9% -9.6% -11.9% -13.9% Mercadolibre 10.6x 8.6x 7.9x 6.8x 8.6x 31.9x 27.7x 26.5x 24.8x 33.7x 21.4% 21.2% 19.4% 17.1% 12.2% 33.3% 30.9% 29.8% 27.4% 25.5% Mitel Networks 1.1x 1.3x 1.4x 1.2x 1.2x 8.6x 10.0x 11.0x 9.9x 10.2x 75.1% 41.5% 22.2% 4.9% 6.8% 13.1% 12.9% 12.5% 12.4% 11.5% MOL Global 2.1x 0.9x 0.6x 0.5x ------16.5% 11.2% 23.9% 22.6% 22.6% -13.4% -45.7% -43.0% -33.4% -33.4% Monster Worldwide 1.0x 1.0x 1.0x 0.5x 0.5x 12.9x 9.4x 7.7x 3.5x 3.2x -11.8% -3.4% -2.9% -8.1% -6.9% 8.0% 11.2% 13.1% 14.1% 14.2% NCSoft 3.7x 3.8x 4.0x 4.4x 4.6x 10.1x 10.2x 11.7x 13.5x 13.4x 13.2% 10.5% 2.8% -0.1% 5.0% 36.9% 37.0% 34.0% 32.5% 34.0% Netease 7.0x 5.5x 5.6x 4.6x 4.2x 17.9x 15.0x 16.4x 14.0x 12.4x 38.2% 49.4% 72.1% 94.7% 108.0% 39.3% 36.4% 34.3% 32.7% 33.4% Netflix 6.3x 7.2x 7.5x 6.2x 5.7x 79.7x 108.7x 130.5x 114.0x 127.1x 25.7% 24.9% 24.0% 23.2% 23.4% 7.9% 6.7% 5.8% 5.4% 4.5% Overstock.com 0.3x 0.2x 0.2x 0.1x 0.2x 17.4x 16.3x 12.7x 18.2x 35.8x 16.6% 17.3% 15.7% 10.7% 7.7% 1.5% 1.5% 1.2% 0.7% 0.5% Pandora 3.5x 3.3x 2.3x 1.7x 1.8x - - - - - 30.4% 28.0% 26.0% 26.4% 28.6% -3.6% -3.7% -3.4% -5.8% -9.1% PetMed Express 1.2x 1.2x 1.2x 1.2x 1.4x 9.4x 8.9x 8.7x 8.8x 10.0x -1.7% -1.4% -0.5% 0.5% 2.3% 13.1% 13.7% 14.2% 14.1% 14.1% Polycom 1.0x 0.8x 1.1x 0.8x 0.9x 8.4x 6.5x 8.3x 6.5x 7.8x -0.8% -1.0% -3.3% -5.8% -9.0% 12.3% 12.5% 12.7% 12.8% 12.1% Priceline 7.2x 7.4x 7.4x 7.0x 7.1x 18.8x 20.0x 19.6x 18.5x 18.5x 21.1% 16.1% 11.3% 9.3% 10.3% 38.1% 37.1% 37.9% 38.0% 38.3% Qihoo 5.1x 4.9x 4.9x 5.3x 5.3x 19.6x 18.0x 19.7x 25.2x 25.0x 82.7% 64.2% 47.7% 29.8% 29.8% 25.9% 27.0% 25.1% 21.1% 21.1% QuinStreet 0.8x 0.8x 0.6x 0.4x 0.4x ------4.1% -0.1% 3.8% 3.0% 3.8% -1.4% -1.0% -0.8% -1.4% -1.7% ReachLocal 0.1x 0.2x 0.1x 0.2x 0.2x ------13.0% -17.3% -19.3% -19.4% -19.6% -8.1% -8.1% -7.1% -4.5% -2.5% Renren 19.3x 12.4x 17.4x 22.1x 20.5x ------75.6% -45.0% -31.6% -11.9% 37.4% -332.6% -136.4% -138.8% -238.1% -208.2% Rocket Fuel 0.8x 0.6x 0.3x 0.3x 0.3x - - - - - 58.5% 47.9% 34.1% 13.0% 5.4% -11.8% -11.3% -11.3% -7.3% -4.5% Rovi 4.5x 3.6x 3.5x 4.7x 4.3x 13.7x 11.2x 11.5x 14.8x 13.3x -2.4% -5.5% -8.8% -3.0% -4.4% 33.0% 31.8% 30.4% 31.8% 32.3% SeaChange International 1.2x 1.3x 1.5x 1.2x 0.6x ------15.4% -12.0% -7.3% -7.3% -7.8% -11.5% -11.3% -9.2% -7.2% -6.8% ShoreTel 1.0x 1.0x 1.4x 1.1x 0.9x 15.0x 14.2x 18.0x 12.5x 14.0x 5.2% 6.1% 4.2% 2.4% 1.9% 6.8% 7.4% 7.9% 8.6% 6.6% Shutterfly 1.9x 1.7x 1.8x 1.6x 1.7x 20.4x 18.5x 19.5x 14.5x 15.0x 17.5% 16.8% 17.2% 15.0% 14.5% 9.2% 9.2% 9.3% 10.8% 11.2% Shutterstock 5.8x 2.5x 2.3x 2.1x 2.6x 42.3x 18.2x 17.7x 16.1x 19.4x 37.2% 34.3% 31.4% 29.6% 26.0% 13.8% 13.7% 12.8% 13.0% 13.5% SINA 1.9x 1.7x 2.8x 2.5x 2.6x 299.1x 123.3x 58.5x 45.4x 37.3x 10.0% 9.2% 10.8% 14.6% 14.5% 0.6% 1.4% 4.7% 5.6% 7.1% Sohu.com 1.3x 0.8x 0.8x 0.7x 0.4x 15.3x 6.4x 4.1x 3.6x 2.3x 20.9% 22.2% 23.2% 15.8% 7.2% 8.7% 13.0% 18.6% 18.6% 18.2% Sonus Networks 1.2x 0.9x 0.9x 1.0x 1.3x ------12.3% -15.6% -15.6% -16.0% -6.4% -7.5% -6.6% -6.6% -6.0% -0.2% Stamps.com 6.8x 6.9x 8.2x 7.4x 6.5x 26.6x 28.3x 32.6x 24.7x 20.2x 22.5% 31.2% 34.9% 45.3% 59.3% 25.4% 24.5% 25.3% 30.0% 32.1% Synacor 0.3x 0.2x 0.3x 0.4x 0.7x 21.0x 5.8x 5.1x 9.6x 17.6x 0.1% 3.0% 3.5% 3.4% 5.3% 1.3% 2.9% 6.3% 4.0% 4.1% Tencent Holdings 13.8x 11.7x 12.1x 10.6x 11.0x 33.7x 27.9x 29.0x 25.4x 26.2x 27.0% 22.6% 24.7% 30.3% 35.6% 40.9% 42.0% 41.5% 41.7% 42.1%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 The Rubicon Project 4.3x 3.3x 3.0x 2.4x 2.0x - - - 31.3x 19.5x 54.5% 65.1% 75.9% 98.3% 101.2% -5.7% -6.0% -3.6% 7.7% 10.1% TheStreet.com 0.5x 0.4x 0.4x 0.2x 0.2x 19.0x 39.6x 28.2x 7.3x 15.3x 13.0% 14.6% 16.0% 10.8% 5.2% 2.4% 1.1% 1.5% 2.7% 1.1% Travelzoo 0.8x 0.5x 0.6x 0.6x 0.6x 14.0x 14.0x 13.3x 8.8x 8.7x -2.6% -5.2% -6.3% -7.5% -9.7% 6.0% 3.6% 4.6% 6.8% 7.0% Tree.Com 3.3x 5.8x 5.0x 3.2x 2.7x 38.9x 62.2x 47.4x 27.9x 23.3x 17.9% 22.6% 37.4% 51.9% 67.2% 8.6% 9.3% 10.4% 11.4% 11.8% Tremor 0.4x 0.3x 0.2x 0.2x 0.2x - - - - - 14.6% 9.9% 13.9% 9.0% 4.7% -9.8% -9.2% -8.4% -6.3% -6.9% TripAdvisor 8.6x 7.1x 7.9x 6.1x 6.0x 30.6x 28.1x 31.6x 32.5x 38.1x 33.3% 31.5% 25.6% 19.7% 11.5% 28.1% 25.2% 24.9% 18.8% 15.7% TubeMogul 3.6x 2.3x 2.2x 1.9x 1.9x - - - - - 75.9% 62.4% 58.0% 58.2% 57.1% -5.0% -6.5% -7.1% -5.1% -6.2% Tucows 1.4x 1.7x 1.5x 1.3x 1.4x 13.9x 15.9x 13.4x 10.7x 11.5x 14.4% 16.0% 17.4% 17.1% 15.8% 9.9% 10.7% 11.5% 12.0% 12.5% Twitter 14.0x 9.5x 7.9x 4.5x 3.6x - - - - - 98.3% 82.6% 70.3% 58.1% 49.6% -21.1% -16.1% -10.5% -7.9% -2.8% VeriSign 7.3x 7.6x 8.8x 8.5x 8.5x 11.8x 12.2x 14.1x 13.5x 13.4x 4.3% 4.4% 4.3% 4.9% 6.2% 62.0% 61.8% 62.6% 63.0% 63.6% WebMD Health 3.2x 2.9x 2.9x 3.3x 3.7x 15.8x 14.3x 13.7x 14.1x 15.8x 10.0% 8.4% 7.6% 9.6% 10.4% 20.4% 20.4% 21.2% 23.0% 23.6% Wix.com 5.3x 4.4x 4.3x 3.4x 4.2x - - - - - 67.9% 57.8% 50.3% 43.5% 40.0% -35.0% -30.0% -25.2% -21.4% -20.7% XO Group 2.3x 2.1x 2.3x 2.0x 2.3x 18.4x 16.0x 17.9x 14.3x 15.7x 5.8% 3.2% 1.0% -1.4% 0.6% 12.6% 12.9% 12.8% 14.2% 14.8% Xunlei 1.7x 1.0x 0.3x - - 4.4x 6.1x 1.7x - - -20.7% -5.8% -3.4% -3.2% 4.3% 37.3% 16.8% 18.1% 4.1% -5.8% Yahoo! 7.6x 6.0x 5.4x 4.9x 6.3x 59.9x 53.8x 56.3x 73.7x 123.9x 0.8% 5.4% 6.8% 7.6% 2.5% 12.7% 11.1% 9.6% 6.7% 5.1% Yandex 6.5x 4.1x 5.5x 4.9x 6.1x 17.9x 12.5x 17.9x 17.5x 21.0x 23.2% 19.0% 17.0% 17.8% 22.4% 36.4% 32.5% 30.7% 28.2% 29.3% Yelp 7.5x 3.3x 3.2x 2.2x 2.6x 110.6x 54.0x 100.6x 14853.8x - 59.4% 56.5% 49.5% 45.6% 40.6% 6.8% 6.1% 3.2% 0.0% -1.5% YuMe 0.6x 0.4x 0.3x 0.4x 0.4x - - - - - 11.6% 7.6% 1.0% -2.5% -4.6% -2.7% -4.7% -6.5% -6.8% -5.5% YY 4.9x 3.9x 3.8x 3.6x 2.5x 16.9x 14.3x 16.6x 14.9x 10.8x 91.4% 79.5% 65.6% 60.3% 53.7% 29.0% 27.3% 23.1% 24.1% 22.9% Zillow 13.1x 9.0x 7.8x 5.8x 6.8x - - - - - 72.1% 86.9% 94.5% 97.8% 81.8% -2.9% -3.4% -3.9% -0.7% -1.5% Zynga 2.4x 1.8x 1.7x 1.2x 1.8x ------9.3% 7.5% 14.4% 10.8% 8.9% -17.1% -13.6% -8.6% -6.4% -3.4%

Ad Tech 2Q15 3Q15 4Q15 1Q16 2Q16 Infrastructure 2Q15 3Q15 4Q15 1Q16 2Q16 Travel 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 1.6x 1.4x 1.3x 1.1x 1.0x EV/TTM Revenue 1.3x 1.4x 1.4x 1.2x 1.3x EV/TTM Revenue 5.1x 5.3x 5.3x 4.5x 4.3x EV/NTM Revenue 2.0x 1.1x 1.4x 1.2x 1.0x EV/NTM Revenue 1.7x 1.3x 1.3x 1.2x 1.3x EV/NTM Revenue 4.8x 3.7x 5.3x 5.0x 4.2x EV/TTM EBITDA 18.9x 22.8x 21.6x 19.1x 19.5x EV/TTM EBITDA 18.0x 15.1x 15.0x 14.1x 13.7x EV/TTM EBITDA 20.8x 23.2x 27.7x 25.3x 20.8x EV/TTM CFO 15.8x 16.1x 17.6x 14.8x 16.0x EV/TTM CFO 18.3x 15.5x 15.4x 15.2x 13.9x EV/TTM CFO 24.3x 25.2x 32.5x 21.2x 20.2x Gross Profit Margin 53.2% 52.8% 53.1% 53.3% 53.7% Gross Profit Margin 60.3% 60.9% 62.1% 62.9% 62.9% Gross Profit Margin 83.6% 83.4% 83.5% 83.5% 83.7% EBITDA Margin -0.4% -1.8% -1.2% 4.0% 2.0% EBITDA Margin 6.8% 5.9% 6.3% 8.1% 6.6% EBITDA Margin 9.1% 7.5% 8.1% 8.9% 9.1% Net Income Margin -7.8% -6.4% -5.7% -5.1% -4.9% Net Income Margin -5.8% -2.1% -3.3% -2.0% -2.6% Net Income Margin 6.9% 7.4% 14.5% 12.4% 8.6% TTM Revenue Growth (YoY) 22.1% 20.6% 20.1% 14.7% 11.1% TTM Revenue Growth (YoY) 5.2% 6.1% 4.3% 4.9% 6.2% TTM Revenue Growth (YoY) 20.4% 16.2% 12.6% 12.5% 11.8% TTM EBITDA Growth (YoY) -23.7% -28.8% -10.9% 5.3% 8.9% TTM EBITDA Growth (YoY) 5.4% 6.6% 1.9% 5.5% 8.9% TTM EBITDA Growth (YoY) -3.1% -5.3% -2.2% 2.7% -16.5% TTM Earnings Growth (YoY) 13.6% 5.6% 10.0% 5.4% 31.1% TTM Earnings Growth (YoY) 19.1% 14.6% 12.6% 23.2% 17.8% TTM Earnings Growth (YoY) -4.2% 45.0% 45.2% 5.6% -6.0% Cash as Percent of Market Cap 16.7% 16.3% 15.2% 14.2% 13.6% Cash as Percent of Market Cap 20.4% 22.3% 33.0% 24.2% 21.7% Cash as Percent of Market Cap 17.1% 23.8% 21.9% 21.0% 19.6% Enterprise Value Growth (YoY) -2.6% -7.4% 13.2% 1.1% -2.3% Enterprise Value Growth (YoY) -11.5% -25.7% -23.1% -25.9% -15.8% Enterprise Value Growth (YoY) -3.7% 5.2% 13.8% -8.1% -6.4%

Commerce 2Q15 3Q15 4Q15 1Q16 2Q16 Search 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 1.2x 1.2x 1.3x 1.1x 1.3x EV/TTM Revenue 5.0x 5.7x 5.9x 5.2x 5.3x EV/NTM Revenue 1.9x 1.2x 1.5x 1.3x 1.4x EV/NTM Revenue 4.2x 3.5x 5.1x 4.8x 4.3x EV/TTM EBITDA 18.9x 20.4x 22.6x 20.2x 33.7x EV/TTM EBITDA 16.1x 17.5x 19.2x 17.7x 18.5x EV/TTM CFO 11.0x 16.6x 19.1x 20.1x 18.6x EV/TTM CFO 16.8x 16.1x 17.8x 15.9x 16.0x Gross Profit Margin 37.2% 38.5% 40.5% 38.8% 43.4% Gross Profit Margin 70.1% 69.9% 69.3% 68.8% 68.3% EBITDA Margin 6.2% 6.0% 5.1% 3.6% 2.5% EBITDA Margin 32.3% 31.3% 28.3% 27.3% 27.5% Net Income Margin 0.5% 1.7% 0.7% 0.7% 1.0% Net Income Margin 23.1% 22.3% 21.1% 19.0% 17.7% TTM Revenue Growth (YoY) 17.5% 19.2% 19.4% 17.0% 14.6% TTM Revenue Growth (YoY) 20.1% 16.7% 14.9% 15.7% 18.7% TTM EBITDA Growth (YoY) 2.5% 0.6% 0.4% 5.4% 4.3% TTM EBITDA Growth (YoY) -1.7% -4.8% -10.9% -7.0% -6.0% TTM Earnings Growth (YoY) -7.2% -4.8% 5.0% 13.1% 8.0% TTM Earnings Growth (YoY) 18.7% 12.3% 4.1% -13.7% -14.2% Cash as Percent of Market Cap 14.7% 15.2% 18.4% 12.2% 13.3% Cash as Percent of Market Cap 15.7% 17.4% 15.4% 19.7% 16.5% Enterprise Value Growth (YoY) 42.2% 18.5% -17.4% -27.2% -31.5% Enterprise Value Growth (YoY) 5.1% -9.1% -6.6% -16.7% -8.5%

Content & Media 2Q15 3Q15 4Q15 1Q16 2Q16 Services 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 2.1x 2.4x 2.3x 2.1x 2.5x EV/TTM Revenue 2.1x 1.9x 1.9x 1.6x 1.7x EV/NTM Revenue 2.4x 1.8x 1.8x 2.0x 2.2x EV/NTM Revenue 1.9x 1.5x 1.6x 1.4x 1.6x EV/TTM EBITDA 17.7x 17.9x 17.9x 15.2x 17.6x EV/TTM EBITDA 20.2x 20.2x 19.9x 17.9x 16.1x EV/TTM CFO 13.4x 13.7x 17.8x 13.6x 13.4x EV/TTM CFO 20.4x 19.6x 16.3x 20.4x 29.9x Gross Profit Margin 60.2% 59.9% 59.5% 58.2% 56.1% Gross Profit Margin 72.6% 72.7% 72.5% 72.5% 72.3% EBITDA Margin 12.6% 11.1% 9.6% 5.6% 5.1% EBITDA Margin 6.4% 6.8% 7.3% 7.7% 9.2% Net Income Margin 4.7% 3.2% 2.6% 1.8% 1.8% Net Income Margin -4.0% -4.2% -5.8% -3.1% -2.1% TTM Revenue Growth (YoY) 10.0% 8.4% 7.6% 9.6% 5.2% TTM Revenue Growth (YoY) 21.1% 19.1% 19.8% 19.2% 22.7% TTM EBITDA Growth (YoY) -2.8% -13.8% -18.1% -13.1% -30.4% TTM EBITDA Growth (YoY) 2.0% 20.2% 10.5% 21.0% 17.2% TTM Earnings Growth (YoY) 48.5% 64.7% -29.8% -32.8% -18.4% TTM Earnings Growth (YoY) 162.6% 111.0% 83.0% 47.4% 30.3% Cash as Percent of Market Cap 20.4% 23.9% 26.9% 30.7% 25.8% Cash as Percent of Market Cap 14.9% 19.3% 17.3% 18.4% 16.8% Enterprise Value Growth (YoY) 0.6% -21.7% 5.0% -20.2% -14.9% Enterprise Value Growth (YoY) 0.4% -21.7% 6.1% -22.7% -5.5%

Gaming 2Q15 3Q15 4Q15 1Q16 2Q16 Social 2Q15 3Q15 4Q15 1Q16 2Q16 EV/TTM Revenue 2.8x 2.7x 2.9x 2.8x 3.0x EV/TTM Revenue 9.8x 8.0x 7.8x 4.5x 4.4x EV/NTM Revenue 2.9x 2.1x 2.6x 2.1x 2.7x EV/NTM Revenue 7.5x 5.9x 4.6x 3.4x 6.0x EV/TTM EBITDA 10.2x 10.0x 11.7x 13.5x 12.4x EV/TTM EBITDA 39.6x 30.0x 32.5x 29.6x 22.9x EV/TTM CFO 12.7x 14.8x 16.4x 13.1x 14.7x EV/TTM CFO 38.7x 30.4x 30.6x 20.8x 20.5x Gross Profit Margin 70.0% 68.9% 66.9% 64.4% 64.3% Gross Profit Margin 75.2% 75.1% 75.1% 75.0% 74.6% EBITDA Margin 28.9% 31.9% 34.2% 32.2% 32.7% EBITDA Margin 17.9% 15.9% 15.7% 16.1% 15.6% Net Income Margin 17.6% 20.2% 22.5% 23.8% 24.8% Net Income Margin 15.4% 11.5% 8.9% 1.1% 1.2% TTM Revenue Growth (YoY) 17.0% 16.3% 18.8% 13.3% 8.0% TTM Revenue Growth (YoY) 51.5% 46.2% 42.3% 39.3% 39.0% TTM EBITDA Growth (YoY) 13.6% 20.8% 36.4% 43.7% 51.9% TTM EBITDA Growth (YoY) 6.1% 4.4% -0.4% 5.9% 13.1% TTM Earnings Growth (YoY) 22.0% 19.6% 24.8% 21.0% 45.2% TTM Earnings Growth (YoY) 65.8% 62.0% 10.4% -10.7% -21.4% Cash as Percent of Market Cap 28.4% 32.7% 32.5% 32.0% 30.0% Cash as Percent of Market Cap 10.8% 12.2% 8.4% 16.4% 13.0% Enterprise Value Growth (YoY) 25.0% -0.8% 10.3% -9.6% -8.6% Enterprise Value Growth (YoY) 21.5% -25.1% 13.0% 3.8% -19.8%

Purchase Price Enterprise TTM Revenue Date Buyers Seller (mm) Value (mm) EV/ Rev EV/ EBITDA Growth 06/13/16 Microsoft Corporation (NasdaqGS:MSFT) LinkedIn Corporation (NYSE:LNKD) $29,350.6 $26,190.9 8.2x 98.4x 34.9% 06/01/16 salesforce.com, inc. (NYSE:CRM) Demandware, Inc. (NYSE:DWRE) $2,857.7 $2,661.9 10.5x - 42.5% 06/02/16 Thoma Bravo, LLC Qlik Technologies, Inc. (NasdaqGS:QLIK) $2,984.8 $2,614.9 4.2x - 11.4% 05/31/16 Vista Equity Partners Marketo, Inc. (NasdaqGS:MKTO) $1,795.1 $1,700.4 7.5x - 38.1% 04/18/16 Vista Equity Partners Cvent, Inc. (NYSE:CVT) $1,590.8 $1,413.6 7.1x 225.3x 30.9% 04/29/16 Rovi Corporation (NasdaqGS:ROVI) TiVo Inc. (NasdaqGS:TIVO) $1,881.3 $1,235.3 2.5x 14.5x - 05/18/16 NICE Ltd. (TASE:NICE) inContact, Inc. (NasdaqCM:SAAS) $967.5 $881.2 3.8x - 25.2% 04/18/16 Silver Lake; AltaOne Capital Cegid Group SA (ENXTPA:CGD) $481.1 $714.1 2.2x 14.6x 5.8% 05/23/16 Siris Capital Group, LLC Xura, Inc. (NasdaqGM:MESG) $806.6 $691.1 2.6x - 17.3% 02/18/16 Vivendi SA (ENXTPA:VIV) GameLoft S.E. (ENXTPA:GFT) $467.2 $627.4 2.4x 82.2x 12.7% 04/28/16 Oracle Corporation (NYSE:ORCL) Textura Corporation $682.6 $600.3 6.5x - 34.8% 05/02/16 Oracle Corporation (NYSE:ORCL) OPOWER, Inc. $551.6 $490.8 3.2x - 14.0% 05/31/16 Accel-KKR LLC SciQuest, Inc. (NasdaqGS:SQI) $489.3 $378.0 3.6x 40.1x 3.7%

Purchase Price Enterprise Value TTM Rev Date Buyer Seller (mm) (mm) EV/Rev EV/EBITDA Growth 06/13/16 Microsoft Corporation (NasdaqGS:MSFT) LinkedIn Corporation (NYSE:LNKD) $29,350.6 $26,190.9 8.2x 98.4x 34.9% 06/12/16 Symantec Corporation (NasdaqGS:SYMC) Blue Coat, Inc. $4,858.8 $4,722.3 7.9x - -5.2% 06/01/16 salesforce.com, inc. (NYSE:CRM) Demandware, Inc. (NYSE:DWRE) $2,857.7 $2,661.9 10.5x - 42.5% 06/02/16 Thoma Bravo, LLC Qlik Technologies, Inc. (NasdaqGS:QLIK) $2,984.8 $2,614.9 4.2x - 11.4% 05/31/16 Vista Equity Partners Marketo, Inc. (NasdaqGS:MKTO) $1,795.1 $1,700.4 7.5x - 38.1% 04/18/16 Vista Equity Partners Cvent, Inc. (NYSE:CVT) $1,590.8 $1,413.6 7.1x 225.3x 30.9% 04/29/16 Rovi Corporation (NasdaqGS:ROVI) TiVo Inc. (NasdaqGS:TIVO) $1,881.3 $1,235.3 2.5x 14.5x 5.0% 04/18/16 Silver Lake; AltaOne Capital Cegid Group SA (ENXTPA:CGD) $481.1 $714.1 2.2x 14.6x 5.8% 04/28/16 Oracle Corporation (NYSE:ORCL) Textura Corporation $682.6 $600.3 6.5x - 34.8%

Enterprise Value Buyer Seller (mm) EV/Rev EV/EBITDA - - - Blue Star Sports Bonzi Technology, Inc. - - - GOALLINE Sports Administration Systems ------Pointstreak Sports Technologies Inc. - - - Dentsu Aegis Network Ltd. Consider Digital Sdn. Bhd. - - - Liveposter Ltd ------Magnetix A/S - - - Merdeka LHS Sdn. Bhd. ------Scorch Pty Ltd 26,190 8.2 98.4 Microsoft Corporation (NasdaqGS:MSFT) LinkedIn Corporation (NYSE:LNKD) - - - Solair Srl - - - - Wand Labs, Inc. - - Crosswise, Ltd. - - - Oracle Corporation (NYSE:ORCL) OPOWER, Inc. - - - Textura Corporation $600.0 6.5x - - - - salesforce.com, inc. (NYSE:CRM) Demandware, Inc. (NYSE:DWRE) - - - Implisit Insights Ltd. - - - - - MetaMind Inc. $48.0 - - - - - Thoma Bravo, LLC Bomgar Corporation - - - Elemica, Inc. - - - Qlik Technologies, Inc. (NasdaqGS:QLIK) $2,614.0 4.2x - Vista Equity Partners Cvent, Inc. (NYSE:CVT) $1,413.0 7.1x 225.3x Marketo, Inc. (NasdaqGS:MKTO) $1,700.0 7.5x - Ping Identity Corporation ------Vertafore, Inc. - - -