The Software Industry Financial Report

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(858) (858) 509 [email protected] 92130 San CA Diego, 320 Suite 12220 El Real Camino L.L.C. SEG Capital Advisors, - 2800 Q3 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 3Q16 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 3Q16 Select Public Sellers 74 3Q16 Mega Deals 75 3Q16 Most Active Buyers 76

SOFTWARE EQUITY GROUP | Q3 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.

2016 Transaction YTD: Very Active Market

Oct 2016 Jun 2016 Jun 2016 May 2016 Feb 2016

SOFTWARE EQUITY GROUP | CONFIDENTIAL 6 SEG: Leading Software Industry M&A Advisor

PUBLIC SaaS COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - SaaS: Median Metrics Measure 3Q15 4Q15 1Q16 2Q16 3Q16 • The SEG SaaS Index tracks public companies that primarily offer EV/TTM Revenue 6.2x 5.8x 3.9x 4.3x 5.1x hosted, on-demand software under a subscription and/or transaction EV/NTM Revenue 4.4x 4.6x 3.4x 3.8x 4.2x based pricing model. It is currently comprised of 66 publicly traded EV/TTM EBITDA 44.0x 34.6x 30.3x 38.9x 41.2x pure-play SaaS companies. EV/TTM CFO 39.6x 42.7x 25.5x 33.6x 35.6x • Three companies in SEG’s SaaS Index announced an intent to be Gross Profit Margin 64.6% 65.8% 66.3% 66.0% 66.2% acquired during the third quarter, while five new companies entered EBITDA Margin -9.1% -7.9% -6.0% -6.7% -5.4% our index due to IPO. Net Income Margin -17.0% -14.9% -16.8% -15.1% -13.2% TTM Revenue Growth 29.0% 27.2% 28.9% 29.2% 29.0% • See appendix for SEG SaaS Index public market multiples and financial performance on an annual basis. TTM Total Revenue ($M) $159.8 $171.0 $187.7 $199.8 $212.4 TTM EBITDA Growth 18.5% 29.9% 22.4% 24.2% 24.4% TTM Total EBITDA ($M) -$8.6 -$8.6 -$11.5 -$9.8 -$8.4 Cash & Eq ($M) $103.1 $110.0 $104.6 $100.6 $95.6

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

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution

TTM Total Revenue ($M) TTM Revenue Growth 25% 24% $250 35.0% $212.4 $187.7 $199.8 20% $171.0 30.0% 18% $200 17% 17% 17% $159.8 25.0% 14% $150 20.0% 12% 12% 10% 3Q15 15.0%

% of Companies of % 8% $100 3Q16 10.0%

TTM Total Revenue Total TTM 3% $50 Growth Revenue TTM 5.0% 2%

$0 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 <= 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 3Q16 was 29.0%, on par with 3Q15, and roughly equivalent to the past two quarters. Median TTM revenue of public SaaS companies was $212.4 million in 3Q16, a 32.9% YOY increase when compared to 3Q15’s $159.8 million median TTM revenue figure. • Median growth rates alone do not capture the standout performances of the most successful SaaS companies. In 3Q16, 29.0% of public SaaS companies grew TTM revenue by 40% or more year over year, compared with only 10% 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 eCommerce, Business Intelligence / Analytics, Customer Support / Helpdesk and Human Capital Management.

Median EBITDA Margin Performance - Quarterly TTM EBITDA Margin Distribution

61% 3Q15 4Q15 1Q16 2Q16 3Q16 53%

(5.4%) 22% 3Q15

% of Companies of % 3Q16 (6.0%) (6.7%) 14% 12%14% EBITDA Margin EBITDA (7.9%) 9% (9.1%) 5% 4% 5%

<= 0% > 0% > 10% > 20% > 30% <= 10% <= 20% <= 30% TTM EBITDA Margin • The median EBITDA margin for public SaaS companies was -5.4% in 3Q16 and has been generally trending toward positive territory since 4Q14. • While the majority of public SaaS companies continue to post GAAP losses (53% of our index in Q3) due to significant levels of deferred revenue, more than two thirds of public SaaS companies generated positive cash flow from operations in Q3. • Select Public SaaS companies posting negative EBITDA Margin while generating positive cash flow from operations during Q3 include: Hubspot (-18.1% EBITDA Margin, $10.6M CFO); Tableau (-11.3% EBITDA Margin, $142.2M CFO); Shopify (-7.4% EBITDA Margin, $11.3M CFO); Workday (-15.5% EBITDA Margin, $318.9M CFO); Zendesk (-29.8% EBITDA Margin, $14.7M 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

66.3% 64.6% 65.8% 66.0% 66.2% 39.4% 38.4% 37.7% 37.8% 36.9%

18.6% 18.7% 18.7% 18.6% 18.4% 18.0% 18.3% 17.9%

17.9% 16.9% % Margin % of Revenue % of

3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 -6.0% -6.7% -5.4% -9.1% -7.9% -13.2% -17.0% -14.9% -16.8% -15.1%

• Public SaaS companies continue to spend heavily on sales & marketing in order to drive revenue growth and capture market share. In 3Q16, public SaaS companies invested a median 36.9% of total revenue on sales & marketing, almost double their on-premise counterparts. Sales and marketing spend as a percent of revenue has remained in the high 30% range since dipping below 40% in 3Q15. R&D spend as a percent of revenue held relatively flat year over year (18.6% in 3Q16 vs. 18.4% in 3Q15). • Median EBITDA and Net Income margins have generally trended toward positive territory over the past year, along with a slight rise in median gross profit margin (66.2% in 3Q16).

Median EV/Revenue and EV/EBITDA - Quarterly EV/Revenue Multiple Distribution

EV/TTM Revenue EV/EBITDA 25.0% 44.0x 41.2x 38.9x 20% 34.6x 30.3x

12% 12% 13% 12% 12% 11% 11% 3Q15 9% 9%

% of Companies of % 8% 8% 6% 6% 3Q16 6% 5% 5% 5% 5% 6.2x 5.8x 3.9x 4.3x 5.1x

3Q15 4Q15 1Q16 2Q16 3Q16 <= 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 3Q16, the median market multiple of public SaaS companies was 5.1x EV/Revenue, a healthy uptick from the prior two quarters, but down 17% when compared to 3Q15’s 6.2x median EV/Revenue. • In 3Q16, 20% of public SaaS companies achieved a median EV/Revenue multiple of 9x or higher, down from 25% YoY, but significantly higher than 2Q16 and 1Q16, when only 11% and 5% of the public SaaS index was valued at 9.0x or higher, respectively. Investor sentiment towards these public SaaS company “high fliers” has clearly turned more bullish as the markets have rebounded from 1Q16’s precipitous drop. • Investors and larger strategic buyers have taken note of softer public SaaS valuations when compared to recent years past. Following Q2’s record seven public SaaS companies announcing an intent to be acquired by either strategic buyers or private equity firms, another four public SaaS companies were the targets of acquisition during Q3. The list includes: Netsuite’s intended purchase by Oracle; Apigee’s purchase by Google; Fleetmatic’s purchase by Verizon; and QHR’s purchase by Loblaw. Please reference slides 39-42 for additional SaaS M&A transaction detail.

EV/Revenue Multiples vs. TTM Revenue Growth EV/Revenue Multiples vs. TTM EBITDA Margins

8.2x

11.1x 7.0x 7.0x 10.2x 9.9x 6.2x 5.5x 5.0x 4.4x 4.5x 6.5x 6.3x 4.1x 5.8x 3Q15 5.2x 5.3x 3.0x 3Q15 3Q16 3.3x 3Q16 EV/Revenue Median

2.2x 2.2x Median EV/Revenue Median 1.5x 0.6x 0.0x

<= 0% > 0% > 10% > 20% > 30% > 40% > 50% <= 0% > 0% > 10% > 20% > 30% <= 10% <= 20% <= 30% <= 40% <= 50% <= 10% <= 20% <= 30% TTM Revenue Growth TTM EBITDA Margin

• The highest growth SaaS companies received a median 9.9x EV/Revenue multiple in 3Q16, a healthy increase over 2Q16’s 7.2x median multiple, but still down when compared to 3Q15’s 11.1x median EV/Revenue multiples. • The 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. This trend has abated somewhat in the third quarter as SaaS valuations overall have improved. • 2) Those companies posting significant growth at any cost have fallen out of favor with investors. As an example, Hortonworks posted a median 11.9x TTM revenue multiple in 3Q15 on the back of 106.4% revenue growth, but negative 266.4% EBITDA margin and negative $108.6 million CFO. During 3Q16, the company grew revenue 99%, generated negative 140.9% EBITDA margin and negative $98.4 million CFO, and posted median 2.7x EV/Revenue. • 3) 50%+ growth SaaS businesses from 3Q15 that have seen revenue growth fall under 50% in 3Q16 were due, predominantly, to either size or increased competitive pressure. Tableau has seen its revenue growth and multiple fall from 71.4% and 12.4x EV/Revenue in 3Q15, respectively, to 41.0% and 4.4x EV/Revenue, in 3Q16 respectively, as competitive pressures across business intelligence, analytics, and big data heat up. • The most profitable SaaS companies posted a median 7.0x EV/Revenue multiple during 3Q16, a roughly 40% premium over the Index median 5.1x EV/Revenue. In comparison, the same cohort received a 5.0x EV/Revenue multiple in 3Q15, which equated to a ten percent discount to that quarters 6.2x Index median.

TTM EV TTM Revenue EV/ TTM EBITDA EV/ Company Ticker (Median) Revenue Growth Revenue EBITDA Margin EBITDA Twilio, Inc. TWLO $4,258.4 $219.5 79.1% 19.4x -$30.5 -13.9% - NantHealth, Inc. NH $1,565.5 $85.8 97.8% 18.3x -$123.3 -143.8% - • When the SEG SaaS Index is segmented on the basis of Atlassian Corp TEAM $5,636.2 $457.1 43.0% 12.3x $8.6 1.9% 652.3x median EV/Revenue multiple, the top 25% boasted an Nutanix, Inc NTNX $5,255.0 $444.9 84.3% 11.8x -$138.6 -31.2% - impressive median 10.2x in 3Q16, up from 2Q16’s 8.8x Shopify SHOP $3,146.9 $282.3 95.0% 11.1x -$20.8 -7.4% - multiple, yet down slightly from 3Q15’s 11.5x mark. Workday WDAY $14,798.8 $1,351.8 38.7% 10.9x -$208.9 -15.5% - Ellie Mae ELLI $3,110.1 $297.5 42.0% 10.5x $53.7 18.1% 57.9x • These SaaS high flyers are market leaders in a wide Netsuite N $8,682.4 $846.4 31.5% 10.3x -$59.1 -7.0% - Top 25% Paycom Software PAYC $2,904.4 $284.5 53.9% 10.2x $67.1 23.6% 43.3x array of SaaS categories including Healthcare Veeva Systems VEEV $4,776.1 $472.3 31.6% 10.1x $91.4 19.4% 52.2x (NantHealth); Communications (Twilio); Development Zendesk ZEN $2,587.2 $261.0 60.2% 9.9x -$77.8 -29.8% - Tools (Atlassian); ERP (Workday); Service Service-now.com NOW $11,789.7 $1,194.0 42.9% 9.9x -$91.5 -7.7% - Management (ServiceNow); Human Capital Paylocity Holding PCTY $2,190.0 $230.7 51.1% 9.5x $4.9 2.1% 449.0x Management (Paycom); Marketing Automation The Ultimate Software (Hubspot); eCommerce (Shopify); and CRM & Group ULTI $6,006.6 $699.7 26.1% 8.6x $66.3 9.5% 90.5x Marketing (HubSpot). 2U TWOU $1,452.8 $176.9 37.1% 8.2x -$21.5 -12.2% - The Trade Desk TTD $1,223.3 $149.0 - 8.2x $47.1 31.6% 26.0x • The median TTM revenue growth rate of those in the HubSpot HUBS $1,844.5 $224.8 54.3% 8.2x -$40.8 -18.1% - top 25% percentile was 47.1%. Additionally, while

Zix ZIXI $195.0 $57.6 10.9% 3.4x $10.6 18.5% 18.3x only seven companies in the top rank generated HealthStream HSTM $689.0 $218.6 15.5% 3.2x $24.5 11.2% 28.1x positive EBITDA margin in 3Q16, 14 of the 17 HortonWorks HDP $413.1 $154.7 99.0% 2.7x -$218.0 -140.9% - companies generated positive cash flow from TrueCar TRUE $698.2 $264.3 12.0% 2.6x -$34.1 -12.9% - operations. Only NantHealth. 2U, and Twilio posted DealerTrack TRAK $91.9 $36.9 43.7% 2.5x $5.9 16.1% 15.5x negative CFO. ChannelAdvisors ECOM $266.7 $107.3 17.1% 2.5x -$7.4 -6.9% - Upland Software UPLD $174.1 $70.9 4.3% 2.5x $3.3 4.6% 53.0x • In contrast, the median TTM revenue growth rate of Bottom 25% IntraLinks Holdings IL $562.6 $284.5 6.1% 2.0x $14.4 5.1% 39.1x those comprising the bottom 25% of EV/Revenue Halogen Software TSX:HGN $120.6 $69.4 12.8% 1.7x $0.3 0.5% 361.0x multiples was 6.2%. In addition to lagging revenue LivePerson LPSN $387.7 $232.1 0.8% 1.7x $15.5 6.7% 25.0x growth, the bottom quartile posted median EBITDA Bazaarvoice BV $293.3 $201.0 3.6% 1.5x -$9.8 -4.9% - margin of .5% and only 11 of 17 companies generated Tangoe TNGO $297.5 $219.4 5.7% 1.4x $9.6 4.4% 30.9x positive CFO. Median EV/Revenue for the group was Jive Software JIVE $212.6 $201.7 6.2% 1.1x -$13.7 -6.8% - 3.4x in 3Q16. Covisint COVS $47.9 $75.0 -12.2% 0.6x -$9.8 -13.0% - Medical Transcript MTBC $12.2 $21.3 -15.6% 0.6x -$1.1 -5.4% - Marin Software MRIN $61.1 $108.3 2.3% 0.6x -$8.4 -7.7% -

SOFTWARE EQUITY GROUP | Q3 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)

Median TTM Revenue Growth Median TTM EBITDA Margin

36.4% 35.9% 9.7% 33.6% 8.0% 29.5% 27.0% 25.3% 25.1% 22.2% 0.2%

(4.9%) (7.0%) (9.6%) (9.1%) (10.5%)

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

Median EV/Revenue Multiples Median EV/EBITDA Multiples

7.4x 149.4x

6.6x 6.6x 6.4x 6.0x 5.6x 5.4x 5.7x 96.2x 90.5x

52.6x 40.8x 34.2x 32.7x 24.3x

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 3Q15 4Q15 1Q16 2Q16 3Q16 • The SEG Software Index tracks public software companies that EV/TTM Revenue 3.3x 2.9x 2.5x 2.7x 3.0x primarily offer on-premise software under a perpetual license with EV/NTM Revenue 2.6x 2.7x 2.7x 2.5x 2.9x annual M&S. EV/TTM EBITDA 15.8x 15.0x 14.2x 15.5x 16.1x • The SEG Software Index is currently comprised of 126 public EV/TTM CFO 15.6x 15.9x 15.6x 16.4x 17.8x software companies*, down from 218 in 1Q08 (the quarter in which Gross Profit Margin 65.5% 65.2% 64.8% 64.4% 64.3% we began publishing individual Software, SaaS and Internet indices). EBITDA Margin 17.8% 17.5% 17.9% 16.9% 16.5% Net Income Margin 7.7% 6.8% 8.2% 6.9% 7.6% • The number of public companies comprising the SEG Software Index TTM Revenue Growth 8.0% 6.6% 7.6% 7.7% 7.8% has declined steadily over the past ten years, as many on premise TTM Total Revenue ($M) $597.3 $609.5 $668.4 $680.1 $682.5 providers have been acquired, taken private or migrated to a SaaS TTM EBITDA Growth 6.2% 7.3% 5.3% 4.4% 4.6% business model. TTM Total EBITDA ($M) $89.3 $80.1 $93.4 $93.5 $103.3 • See appendix for SEG Software Index public market multiples and Cash & Eq ($M) $231.3 $244.5 $246.2 $227.0 $251.3 financial performance on an annual basis

* 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

TTM Total Revenue ($M) TTM Revenue Growth

$800 8.5% 35% $680.1 $682.5 $700 $668.4 $597.3 $609.5 8.0% 27% 27% $600 24% 22% 21% $500 7.5% 3Q15 $400 3Q16 $300 7.0%

% of Companies of % 9% 10% 7% 7% TTM Total Revenue Total TTM $200 6% 6.5% Growth Revenue TTM 4% $100 $0 6.0% 3Q15 4Q15 1Q16 2Q16 3Q16 <= 0% > 0% > 10% > 20% >30% >40% <= 10% <= 20% <= 30% <=40% • The median TTM revenue growth rate of public on-premise software TTM Revenue Growth companies was 7.8% in 3Q16 and is approaching 3Q15’s 8.0% mark, after falling to 6.6% in the fourth quarter of last year. With 54% of public on-premise software providers posting revenue growth of less than 10% in 3Q16, SEG’s Software Index has now experienced single digit median TTM revenue growth since 3Q13. • The few public on-premise software companies growing revenue at 30%+ were focused on two of IT’s hottest product categories: security (Palo Alto Networks, 48.5% and Rapid7, 45.4%) and data management (Splunk, 47.6%). • Median TTM revenue for the publicly traded on-premise software providers was $682.5 million in 3Q16, an increase of 14.2% from 3Q15’s $597.3 million. In comparison, median TTM revenue for our SaaS Index grew 32.9% over the same period ($212.4 million in 3Q16 vs. 159.8 million in 3Q15).

Median EBITDA Performance - Quarterly TTM EBITDA Margin Distribution

17.8% 17.5% 17.9% 16.9% 16.5% 29% 26% 24% 23% 20%

16% 3Q15

13% 13% 13% 13% 3Q16

% of Companies of % EBITDA Margin EBITDA

5% 5%

3Q15 4Q15 1Q16 2Q16 3Q16 <= 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. • For example, Microstrategy, a provider of on-premise business intelligence software, posted negative 7.5% revenue growth in 3Q16 while maintaining 25.0% 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. SOFTWARE EQUITY GROUP | Q3 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 20 THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE

Median Operating Ratios Median Margin Performance

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

65.5% 65.2% 64.8% 64.4% 64.3% 24.4% 23.5% 23.9% 23.8% 24.0%

16.0% 16.1% 15.8% 15.8% 15.8%

10.9% 10.7% 10.9% 10.7% 10.9%

% % Margin % of Revenue of %

17.8% 17.5% 17.9% 16.9% 16.5%

8.2% 7.7% 6.8% 6.9% 7.6%

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

• As a percent of revenue, on-premise software companies spent a median 24.4% of revenue on sales and marketing activities, 16.1% on research and development and 10.9% on general and administrative functions in 3Q16. Expense contributions for on-premise software providers have remained virtually unchanged each of the past five quarters. • In aggregate, median operating expenses totaled 51.4% of revenue during 3Q16 for publicly traded on-premise software providers. In comparison, publicly traded SaaS companies spent 75.8% of revenue on operations during the quarter.

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

Revenue Greater Than $1 billion EV/TTM Revenue EV/EBITDA Revenue Between $500 million & $1 billion Revenue Between $100 million & $500 million 5.0x Revenue Less Than $100 million 15.8x 16.1x 15.0x 15.5x 14.2x 4.0x

3.0x

2.0x Median Multipe Median 3.3x 2.9x 3.0x 2.5x 2.7x EV/Revenue Median 1.0x

0.0x 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16

• The median EV/Revenue market multiple for public on-premise • During 3Q16, the median EV/Revenue multiple for on-premise software providers was 3.0x in 3Q16. software providers increased across most size cohorts as the software industry continued to rebound from Q1’s stock market turmoil. As in • The 2.5-3.5x median EV/Revenue multiple that’s prevailed over the quarters past, however, scale and profitability played a significant past five quarters, despite lackluster growth, reflects the importance role in 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 3.7x • For the remainder of 2016, we believe investors will continue to find TTM revenue and posted median 23.5% 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. 3.0x TTM revenue and posted median 18.5% EBITDA margin; • Over 80% of companies in SEG’s Software Index generated • $100-$500 million revenue companies were valued at positive EBITDA margin in Q3, along with nearly half of median 2.7x TTM revenue and posted median 10.2% 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 1.7x TTM revenue and posted median negative 0.5% EBITDA margin. SOFTWARE EQUITY GROUP | Q3 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 EV/Revenue Multiples vs. TTM EBITDA Margins

9.4x 7.2x 7.2x

4.6x 4.8x 3.9x 3.5x 4.1x 4.3x 3.5x 3Q15 3Q15 3.2x 3.1x 2.6x 2.9x 3Q16

2.5x 1.9x 2.0x 3Q16 Median EV/Revenue Median 2.2x 2.2x EV/Revenue Median 1.6x 1.6x 1.0x

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

• The market performance of on-premise public software companies • As in past quarters, the median market multiples of on-premise remains closely correlated with their ability to sustainably drive software companies generally reflected their median operating profits, as a select group of companies able to generate significant margins. The most profitable companies posted a 7.2x EV/Revenue revenue growth in Q3 were only modestly rewarded (4.8x multiple in 3Q16, on par with 3Q15 and 140% above Q3’s 3.0x EV/Revenue) when compared with the same cohort in 3Q15 (9.4x median EV/Revenue multiple for all on-premise software vendors. EV/Revenue. • On-premise providers with EBITDA margins greater than 40% can be • Members of Q3’s 30%+ growth club that rewarded investors found in product categories requiring high technical barriers to entry handsomely during the quarter came from a number of product or provide products difficult to deploy via the cloud. categories, including Business Intelligence, Security and Network • As an example, engineering simulation and optimization Performance Management: Splunk (47.6% TTM revenue growth, 9.7x solutions developed by Aspen Technology are highly EV/Revenue), Palo Alto Networks (48.5% TTM revenue growth, 10.5x technical and not easily deployed through a browser. The EV/Revenue), and Proofpoint (37.5% TTM revenue growth, 7.5x company has consistently maintained double digit revenue EV/Revenue). growth and 40%+ EBITDA margin each of the last 5 quarters, posting 20.5% growth and 47.0% EBITDA margin in 3Q16. SOFTWARE EQUITY GROUP | Q3 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 23 THE SOFTWARE INDEX BY PRODUCT CATEGORY

SEG Software Index

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

Billing & Service Management 1.9x 1.7x 2.0x 2.0x 1.9x 9.2x 9.8x 8.8x 10.9x 9.7x 3.1% -0.4% 0.2% 0.6% 1.8% 27.2% 23.9% 21.2% 22.1% 21.8%

Business Intelligence 3.5x 3.0x 2.8x 3.0x 3.5x 18.2x 15.5x 13.5x 12.3x 14.4x 10.3% 7.0% 13.6% 13.1% 10.4% 18.5% 17.2% 14.9% 15.2% 15.3%

Development Platforms 2.4x 2.3x 2.7x 2.8x 2.3x 8.9x 8.4x 9.1x 9.1x 12.8x 10.6% 11.5% 11.1% 10.2% 10.4% 19.0% 18.6% 18.0% 17.5% 17.1%

Engineering & PLM 3.4x 3.5x 3.3x 3.9x 3.2x 17.1x 16.9x 15.6x 17.0x 16.8x 8.4% 7.5% 0.7% 1.3% 2.1% 22.9% 22.4% 19.3% 17.6% 17.6%

Enterprise Resource Planning 4.1x 4.0x 3.9x 4.1x 3.8x 15.1x 15.1x 16.0x 14.8x 15.5x 4.8% 6.1% 4.8% 3.6% 3.6% 26.7% 27.1% 26.9% 26.7% 26.7%

Financial & Accounting 4.1x 3.9x 3.3x 3.0x 3.8x 15.3x 15.9x 15.9x 16.6x 15.6x 5.4% 4.7% 4.8% 4.1% 6.1% 22.3% 22.6% 24.9% 24.2% 24.2%

Gaming 1.5x 2.5x 2.3x 2.4x 1.3x 14.7x 16.4x 14.3x 18.2x 13.3x 8.4% 4.0% 5.8% 5.8% 12.4% 14.8% 15.6% 21.7% 21.5% 22.5%

Healthcare 2.4x 2.2x 2.0x 2.3x 2.1x 18.5x 14.9x 15.4x 17.2x 15.5x 4.6% 3.8% 2.0% 10.9% 18.9% 12.3% 12.7% 12.5% 14.6% 13.5%

IT Conglomerates 3.2x 4.0x 3.9x 4.0x 3.5x 8.8x 9.8x 9.6x 10.5x 10.8x -1.1% -3.5% -4.3% -3.1% -2.3% 31.1% 31.0% 27.5% 27.7% 28.2%

Mobile Solutions/Content 1.8x 1.6x 1.5x 1.8x 1.8x 15.8x 18.2x 25.2x 19.7x 20.8x 25.5% 19.4% 17.3% 13.1% 13.3% -3.5% 0.4% -0.2% -1.5% -0.8%

Networking & Network 2.2x 2.5x 1.9x 1.8x 2.1x 13.1x 11.7x 9.8x 10.9x 13.3x 4.3% 4.9% 5.0% 6.4% 4.6% 19.6% 18.0% 14.2% 9.3% 10.2% Performance Management

Security 4.2x 3.5x 3.3x 3.0x 3.7x 15.8x 12.4x 12.4x 13.3x 15.3x 8.8% 16.2% 29.5% 17.4% 21.2% 1.6% 1.1% 2.6% 5.0% 4.7%

Storage, Data Management & 2.2x 2.3x 2.1x 2.4x 2.1x 8.0x 8.4x 8.1x 7.1x 7.8x 1.5% 3.8% 3.1% -0.9% 0.9% 4.7% 2.3% 1.4% 2.2% 2.7% Integration

Systems Management 4.7x 3.8x 2.9x 3.1x 3.4x 19.1x 17.1x 13.2x 13.9x 16.1x 5.6% 11.5% 10.1% 8.7% 7.8% 23.8% 22.1% 25.9% 26.1% 26.9%

Vertical - Finance 4.4x 4.8x 5.0x 5.0x 4.1x 13.3x 13.7x 14.5x 16.0x 13.6x 7.1% 6.6% 7.4% 7.6% 7.8% 34.2% 32.7% 32.9% 32.7% 31.7%

Vertical - Other 4.9x 5.1x 4.5x 4.5x 4.3x 30.5x 29.3x 19.3x 19.4x 19.7x 14.1% 12.5% 13.9% 18.2% 17.5% 13.8% 14.9% 16.4% 15.2% 16.6%

Median 3.3x 2.8x 2.5x 2.7x 3.0x 15.8x 15.0x 14.2x 15.3x 15.9x 8.0% 6.6% 7.6% 7.7% 7.8% 17.8% 17.5% 17.9% 16.9% 16.5%

*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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Median TTM Revenue Growth

25.5%

21.2% 18.9% 17.5%

14.1% 12.4% 13.3% 10.6% 3Q15 10.3%10.4% 10.4% 8.4% 8.4% 8.8% 3Q16 7.8% 7.1%7.8% 5.4%6.1% 5.6% 4.8% 4.6% 4.3%4.6% 3.1% 3.6% 1.8% 2.1% 1.5%0.9%

Billing & Service Business Intelligence Development Engineering & PLM Enterprise Resource Financial & Gaming Healthcare IT Conglomerates Mobile Networking & Security Storage, Data Systems Management Vertical - Finance Vertical - Other Management Platforms Planning Accounting -1.1% Solutions/Content Network Performance Management & -2.3% Management Integration

4.9x 4.7x 4.4x 4.1x 4.1x 4.2x 4.1x 4.3x 3.8x 3.8x 3.7x 3.5x 3.5x 3.4x 3.5x 3.4x 3.2x 3.2x 3Q15 2.4x 2.4x 2.3x 2.2x 2.2x 3Q16 1.9x 1.9x 2.1x 2.1x 2.1x 1.8x 1.8x 1.5x 1.3x

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

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Median TTM EBITDA Margin

34.2% 31.1% 31.7% 27.2% 28.2% 26.9% 26.7% 26.7% 24.2% 23.8% 21.8% 22.9% 22.3% 22.5% 18.5% 19.0% 19.6% 17.1% 17.6% 16.6% 15.3% 14.8% 13.8% 12.3% 13.5% 10.2% 3Q15 4.7% 4.7% 1.6% 2.7% 3Q16

-0.8% -3.5%

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

Median EV/EBITDA

30.5x

20.8x 19.7x 18.2x 15.5x 15.6x 18.5x 19.1x 17.1x 16.8x 15.3x 15.8x 15.8x 16.1x 14.4x 15.1x 14.7x 15.5x 13.3x 15.3x 3Q15 12.8x 13.3x 13.1x 13.3x 13.6x 10.8x 9.2x 9.7x 3Q16 8.9x 8.8x 8.0x 7.8x

PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

SEG - Internet: Median Metrics Measure 3Q15 4Q15 1Q16 2Q16 3Q16 • The SEG Internet Index tracks public companies that primarily offer EV/TTM Revenue 2.1x 2.0x 2.0x 2.0x 2.3x B2C services or predominantly generate revenue via advertising over EV/NTM Revenue 1.7x 1.8x 1.7x 1.8x 2.1x the internet. EV/TTM EBITDA 18.2x 20.8x 18.4x 19.0x 19.8x • The SEG Internet Index is currently comprised of 99 public Internet EV/TTM CFO 17.8x 18.9x 17.0x 17.0x 18.4x companies*. Gross Profit Margin 62.4% 62.6% 61.9% 62.1% 62.0% • See appendix for SEG Internet Index public market multiples and EBITDA Margin 6.7% 6.9% 7.3% 7.5% 9.1% financial performance on an annual basis Net Income Margin 0.5% 0.2% 0.1% 0.8% -1.3% TTM Revenue Growth 17.2% 15.9% 14.5% 14.5% 13.4% TTM Total Revenue ($M) $466.0 $505.9 $527.1 $570.0 $604.2 TTM EBITDA Growth 12.3% 8.9% 6.7% 11.6% 13.7% TTM Total EBITDA ($M) $27.9 $28.4 $31.6 $31.5 $36.3 Cash & Eq ($M) $169.0 $162.0 $207.0 $174.2 $167.1

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

Median Revenue Performance - Quarterly TTM Revenue Growth Rate Distribution

TTM Total Revenue ($M) TTM Revenue Growth

$700 20.0% 24% 24% $604.2 22% 18.0% $600 $570.0 20% $505.9 $527.1 16.0% 18% $466.0 17% 17% $500 14.0% 16% 16% 12.0% $400 12% 10.0% $300 8.0% Companies of % 8% 3Q15 6%

$200 6.0% 3Q16 TTM Total Revenue Total TTM

4.0% Growth Revenue TTM $100 2.0% $0 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM Revenue Growth

• Median TTM revenue for public companies in the SEG Internet Index was $604.2 million in 3Q16, a 29% YoY increase from 3Q15’s $466 million figure. Conversely, this median TTM revenue growth for this cohort has seen median TTM revenue growth slow to 13.4% in 3Q16 from 17.2% one year prior as law of large numbers comes in to effect. • Once again demonstrating the Internet is an ecosystem of unequals, 17% of public Internet providers far outpaced the pack, posting TTM revenue growth greater than 40% in 3Q16. These high flyers included 58.com (150.1%), Netease (112.3%), and The Rubicon Project (81.5%). • Conversely, 41% of public Internet companies struggled to advance, reporting TTM revenue growth of 10% or less in 3Q16. The slow growers included TripAdvisor (4.0%), Yahoo! (0.5%), Limelight Networks (2.4%), Zynga (-0.3%), and 1-800-FLOWERS (4.6%).

Median EBITDA Performance - Quarterly TTM EBITDA Margin Distribution

9.1% 30% 29%28% 27% 7.3% 7.5% 6.7% 6.9% 21% 18%

12%

11% % of Companies of % EBITDA Margin EBITDA 9% 3Q15 7% 3Q16 4% 3%

3Q15 4Q15 1Q16 2Q16 3Q16 <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 40% TTM EBITDA Margin • Median EBITDA margin rose considerably in 3Q16, following three consecutive quarters of modest improvement. However, 28% of the companies were unprofitable during the quarter, compared to 53% and 20% of publicly traded SaaS and on-premise software vendors, respectively. • At the other end of the spectrum, 15% of public Internet companies, mostly those with significant transaction or advertising revenue, achieved EBITDA margins above 30%, led by VeriSign (64.6%), Facebook (50.0%) and Tencent Holdings (43.1%). • With few exceptions, many of the most profitable public Internet companies reported stellar TTM revenue growth. Among them were Netease (33.9% EBITDA margin, 112.3% TTM revenue growth); Stamps.com (34.7% EBITDA margin, 67.0% TTM revenue growth) and Alibaba (36.1% EBITDA margin, 40.1% TTM 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

25.1% 62.4% 62.6% 61.9% 62.1% 62.0% 24.8% 24.6% 24.8% 24.3%

12.6% 12.7% 12.6% 12.7% 12.8% 12.7%

12.3% 12.5% 12.3% 12.5%

% of Revenue % of % % Margin

9.1% 6.7% 6.9% 7.3% 7.5% 0.5% 0.2% 0.1% 0.8%

3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 -1.3%

• Median spending on operations by public Internet companies in 3Q16 was consistent with historic norms: 24.3% for sales & marketing, 12.7% for research & development, and 12.5% for general & administrative. In aggregate, the median operational expenditures for the Internet Index totaled 49.5% of revenue in 3Q16, versus 51.4% and 75.8% for our on-premise and SaaS indices, respectively. • Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat. • Median Gross profit margin and R&D spend as a percent of total revenue has on average been the lowest among our three tracking indices, as Internet companies are comparatively less technical than pure-play SaaS and on-premise software vendors.

Median EV/Revenue and EV/EBITDA Multiples- Quarterly EV/Revenue Multiple Distribution

EV/TTM Revenue EV/EBITDA 35%

20.8x 19.8x 26% 18.2x 18.4x 19.0x 22%

16% 18% 3Q15

14% 3Q16 % of Companies of % 8% 8% 7% 7% 6% 6% 6% 6% 4% 4% 3% 3% 2.1x 2.0x 2.0x 2.0x 2.3x 2% 1%

3Q15 4Q15 1Q16 2Q16 3Q16 <= 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 EV/Revenue multiple for SEG’s Internet Index rose to 2.3x in 3Q16, from 2.0x the prior three quarters, following the positive trend in our SaaS and on-premise indices as the markets have generally rebounded from a dismal first quarter. • That said, investors in Q3 continued to richly reward the most rapidly growing and most promising Internet providers, especially those that generated significant revenue from online advertising and ecommerce. Seven percent of companies closed the quarter with a market multiple of 9.0x EV/Revenue or higher, including Alibaba (14.1x EV/Rev), Facebook (15.1x EV/Rev), Ctrip (10.7x EV/Rev) and RenRen (13.7x EV/Rev).

EV/Revenue Multiples vs. TTM Revenue Growth EV/Revenue Multiples vs. TTM EBITDA Margins

6.0x 12.4x

4.6x

3Q15 3.4x 6.8x 3.1x 3Q16 2.6x 5.5x 3Q15 4.9x4.8x 1.8x 1.8x 3Q16 Median EV/Revenue Median 3.5x 1.5x EV/Revenue Median 1.2x 2.2x 1.9x 1.7x 1.7x 0.6x 1.2x 1.4x

<= 0% > 0% > 10% > 20% >30% <= 0% > 0% > 10% > 20% > 30% > 40% <= 10% <= 20% <= 30% <= 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 30% or higher received a median EV/Revenue multiple of 4.6x in Q3. The outperformers included Stamps.com (67.0%, 5.4x EV/Revenue); Zillow (54.4%, 8.3x EV/Revenue); Facebook (51.4%, 15.1x EV/Revenue) and Alibaba (40.1%, 14.1x 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 12.4x in 3Q16, over 10.1x 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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Median TTM Revenue Growth

46.2%

34.8%

23.6% 3Q15 22.2% 21.3% 20.5% 3Q16 17.2% 16.3% 16.7% 16.2% 16.6%

10.4% 10.7% 9.0% 8.4% 7.6% 3.9% 3.5%

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

Median EV/Revenue Multiples

9.1x

5.4x 5.5x 4.8x 4.5x 3Q15 4.1x 3.6x 3Q16 2.8x 2.8x 2.2x 2.1x 2.1x 2.1x 1.8x 2.0x 1.5x 1.5x 0.9x

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

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Median TTM EBITDA Margin

31.9% 33.1% 31.3%

27.3%

17.3% 15.8% 3Q15 3Q16 11.1% 9.5% 9.5% 7.8% 6.2% 6.4% 5.6% 5.1% 4.1% 4.3% 3.1% 1.2%

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

Median EV/EBITDA Multiples

39.1x 36.6x

27.0x

21.7x 20.2x 21.4x 21.1x 3Q15 18.7x 18.3x 18.7x 18.5x 19.0x 17.4x 17.8x 16.4x 14.7x 15.8x 3Q16 10.3x

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

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

587 578 584 600 574 600 565 570 $80 539 517 505 513 $67.3 488 $70 500 500 460 444 455 $60 400

400 $50.1 Value (BIllions) $46.1 $45.2 $50 $43.5

300 300 $34.8 $34.4 $40 $31.4 $26.6

$30 Deals of Number Number of Deals of Number 200 $22.8 200 $20.2 $17.7 $17.7 $20 100 100 $10

0 $0 0 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 1Q07 4Q07 3Q08 2Q09 1Q10 4Q10 3Q11 2Q12 1Q13 4Q13 3Q14 2Q15 1Q16 Deals Value

• There were 539 reported software M&A transactions in 3Q16, a modest decline from 2Q16’s 584, However, we expect that the third quarter tally will likely increase by approximately 15 – 20 transactions as unpublicized deals are added. 3Q16 marks the eighth consecutive quarter in which transaction volume has surpassed 500 deals. • On a TTM basis, average quarterly deal volume reached 574 transactions in 3Q16, 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 posted quarter over quarter increases in 21 of 27 quarters since bottoming out in 4Q09 (326 TTM quarterly average). • Software M&A spending in 3Q16 totaled $50.1 billion, down from Q2’s $67.3 billion aggregate price tag, which included Microsoft’s acquisition of LinkedIn ($26.1 billion EV, 8.2x TTM revenue). Led by Oracle’s pending acquisition of NetSuite for $8.7 billion (10.3x TTM revenue) and Micro Focus’ purchase of Hewlett Packard’s enterprise software division for $8.7 billion (2.8x TTM revenue), there were 16 mega deals (EV > $500 million) announced during the quarter, a positive sign for continued M&A activity in the quarters ahead.

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

SaaS M&A Deals SaaS as % of Software 250 50% 800 753 45% 700 200 195 40% 601 180190 600 157 35% 150 160 462 150 132 134 30% 500 118 390 108 25% 400 97 103 104 312 100 20% 300 15% 200

200

# of SaaS of # SaaS M&A Deals # of SaaS of # SaaS M&A Deals 50 10% Software M&A Deals 105 5% 100 0 0% SaaS a M&A %Deals as Total of 0 2010 2011 2012 2013 2014 2015 2016

• 3Q16’s 195 SaaS M&A transactions marks the 12th consecutive quarter of ramping deal volume and 24% year over year increase when compared to 3Q15’s 157 transactions. • On an annual basis, SEG is projecting 753 SaaS M&A transactions during 2016, a 25% 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 growth subscription-based software business models. • Cheap credit available for transaction financing.

Median TTM SaaS EV/ Revenue Exit Multiples Q3 Public SaaS Sellers

4.6x 4.5x 4.5x 4.2x 10.3x 3.7x

7.0x

5.3x 5.1x

EV/Revenue EV/Revenue

NetSuite Inc. Fleetmatics Group Apigee QHR Corporation 3Q15 4Q15 1Q16 2Q16 3Q16 (NYSE:N) PLC (NYSE:FLTX) Corporation (TSXV:QHR) (NasdaqGS:APIC)

• For the 12 months ending September 2016, SaaS companies were • Led by Oracle’s intended acquisition of SaaS ERP vendor, Netsuite purchased for a median 4.5x TTM revenue, on par with recent ($8.7 billion EV, 10.3x TTM Revenue), four publicly traded SaaS quarters. After dipping below 4.0x TTM revenue from 4Q14 through companies announced an intent to be acquired during the third 3Q15, the median exit multiple for SaaS businesses has held firmly quarter. This follows the 2Q16 in which seven publicly traded SaaS above 4.0x for the past four quarters. providers were acquired. • Select 3Q TTM SaaS transactions posting exit multiples well above the • Size and scale was a key determinant to each target’s revenue median included Verizon’s 3Q16 acquisition of Fleetmatics ($2.4 multiple: billion, 7.0x TTM revenue); Wolters Kluwer’s 2Q16 acquisition of • Netsuite’s ($846.4 million revenue) purchase by Oracle; Enablon ($364 million, 5.6x TTM revenue); Visma’s 1Q16 acquisition Fleetmatics’ $310.7 million revenue) purchase by Verizon; of Fortnox ($163 million, 9.4x TTM revenue) and PTC’s 4Q15 Apigee’s ($92.0 million revenue) purchase by Google; and acquisition of Kepware Technologies ($118 million, 5.9x TTM QHR’s ($23.5 million revenue) purchase by Loblaw. revenue) • In addition, four publicly traded SaaS companies announced an intent to be acquired during Q3, with a couple of those receiving offers materially higher than our median exit multiple.

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

5.0x 24.6% 4.4x 4.3x 3.7x 3.6x 19.0% 19.0% 2.9x

14.3% Last 3 Years3 Last

- 11.1% EV/Revenue

5.6% 6.3% % of Deals of %

<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, over one third of all SaaS targets were years worth of SaaS deals to drive a meaningful data set. acquired for 5.0x TTM or greater. • Buyers continue to reward those SaaS businesses exhibiting o Many of these targets were growing quickly, served large significant scale. Sellers with revenue between $20-50 million have markets and attracted deep pocketed buyers (ie. Zillow’s achieved a median 5.0x TTM revenue over the time period, while acquisition of real estate software provider, Dotloop, which was those with revenue greater than $50 million received a slight rumored to growing revenue north of 100% at the time of sale discount. This is due to the prevalence of private equity buyers and sold for approximately 7.2x TTM revenue). seeking larger assets. Approximately 25% of the deals in our $100M+ • Conversely, approximately 30% of all SaaS targets were acquired for seller revenue bucket included a private equity sponsor compared to 3.0x revenue or less. 13% and 0% for our $50-100M and $20-50M seller revenue buckets, respectively. o Many of these targets showed modest growth and operated in commoditized markets with little product differentiation (ie. • Those generating revenues of less than $5M received a median 2.9x Endurance International Group’s purchase of SaaS email TTM revenue multiple. marketing provider Constant Contact for 2.6x TTM revenue (10.8% TTM revenue growth) SOFTWARE EQUITY GROUP | Q3 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 41 SaaS M&A BY PRODUCT CATEGORY – 3Q16

Vertical Product Categories

10.3%

7.0% 6.4% 6.4% 5.7% 3Q15 4.6% 4.6% 4.6% 4.5% 3Q16 3.2% 3.1% 2.6% 1.9% 1.5% 1.3% 1.5%

Education Financial Services Healthcare Hospitality Insurance Other Verticals Real Estate Retail

Horizontal Product Categories

15.3%

9.6%9.2% 8.2% 3Q15 7.2% 6.4% 3Q16 5.1% 4.5% 4.6% 4.6% 4.1% 3.8% 4.1% 3.8% 4.1% 3.2% 2.6% 2.5% 2.5%2.6% 2.5% 1.9% 1.9% 1.3% 1.3%1.5% 1.5% 1.5% 0.6%1.0%

BI, Risk & Content & CRM, Marketing Dev. Tools & IT eCommerce Engineering & HR & Workforce Messaging, Multimedia, Security Systems Mgmt Supply Chain Accounting & Asset Billing & Service Compliance Document Mgmt & Sales Asset Mgmt PLM Mgmt Conferencing & Graphics & Mgmt & Logistics Finance Management Provisioning Communications Communications

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 09/30/16 The Ultimate Software Group, Inc. (NasdaqGS:ULTI) Kanjoya, Inc. - - - 09/29/16 VelocityEHS e3 Solutions Inc. - - - 09/29/16 Falfurrias Capital Partners Marquis Software Solutions, Inc. - - - 09/29/16 Thoma Bravo, LLC T2 Systems, Inc. - - - 09/28/16 SAP SE (DB:SAP) PLAT.ONE INC. - - - 09/27/16 Cengage Learning Holdings II, Inc. (OTCPK:CNGO) Advanced Instructional Systems, Inc. - - - 09/26/16 - BlindSpot $28.0 - - 09/26/16 Xingmin Intelligent Transportation Systems (Group) Co., Ltd. Yes Way $63.4 - - 09/22/16 Accruent, LLC VERISAE, INC. - - - 09/22/16 Emakina Group SA (ENXTBR:ALEMK) k.section business solutions gmbh - - - 09/22/16 Airware, Inc Redbird SAS - - - 09/22/16 Welcome Italia spa Qboxmail S.r.l. - - - 09/22/16 PTV Planung Transport Verkehr AG DPS International Ltd. - - - 09/21/16 Evatic AS Cranbox Limited - - - 09/21/16 Newgen KnowledgeWorks (P) Ltd Exult InfoSolutions Pvt. Ltd. - - - 09/21/16 Liaison Financial Services Limited Activ8 Intelligence Limited - - - 09/20/16 Vista Equity Partners III LLC GovDelivery, Inc. $153.0 - - 09/20/16 Secunet Security Networks AG (XTRA:YSN) HJP Consulting GmbH, eID Testing Business Unit - - - 09/20/16 CA, Inc. (NasdaqGS:CA) BlazeMeter LLC - - - 09/20/16 JPMorgan Chase & Co. (NYSE:JPM) InvestCloud, LLC - - - 09/19/16 - P&I Personal & Informatik Aktiengesellschaft - - - 09/18/16 Oracle Corporation (NYSE:ORCL) Palerra, Inc. - - - 09/16/16 Dentsu Aegis Network Ltd. Avid Media Ltd - - - 09/16/16 CashFlows iCheque Network Limited - - - 09/15/16 Grey Cloak Tech Inc. (OTCPK:GRCK) ShareRails - - - 09/15/16 Mirantis, Inc. tcp cloud, a.s. - - - 09/15/16 Event Farm, Inc. Attend, Inc. - - - 09/14/16 General Electric Company (NYSE:GE) Meridium, Inc. - - - 09/14/16 Amdocs Limited (NasdaqGS:DOX) Pontis, Inc. and Vindicia, Inc. - - - 09/14/16 LogoMix Inc. LogoMaker Inc. - - - 09/14/16 Generix SA (ENXTPA:GENX) Sologlobe Logistique, Inc. - - - 09/13/16 Stripe, Inc. Runkit - - - 09/12/16 Accel-KKR LLC Smart Communications - - - 09/12/16 Quad Analytix, LLC Wise Commerce, Inc. - - - 09/09/16 Argyle Executive Forum, LLC Proformative, Inc. - - - 09/08/16 Bridge Growth Partners, LLC Active Internet Technologies, LLC - - - 09/08/16 Citrix Systems, Inc. (NasdaqGS:CTXS) VirtuAll Solutions Ltd. - - - 09/08/16 Dealer Product Services Inc. TimeHighway.com, Inc. - - - 09/08/16 IVR Technology Group, LLC DemandVoice, LLC - - - 09/07/16 Alphabet Inc. (NasdaqGS:GOOGL) Apigee Corporation (NasdaqGS:APIC) $516.3 $92.0 5.6x

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 09/07/16 Sodexo Benefits and Rewards Services Inspirus, LLC - - - 09/07/16 Arkadin SAS Applicable Limited - - - 09/07/16 salesforce.com, inc. (NYSE:CRM) HeyWire, Inc. - - - 09/06/16 McKinsey & Company, Inc. PriceMetrix, Inc. - - - 09/06/16 HCA Holdings, Inc. (NYSE:HCA) Mobile Heartbeat, LLC - - - 09/06/16 Grote Molen, Inc. BlackRidge Technology Holdings, Inc. - - - 09/06/16 GI Partners, LLC DAXKO LLC - - - 09/06/16 MINDBODY, Inc. (NasdaqGM:MB) HealCode, LLC - - - 09/06/16 iZettle AB Intelligent Point Of Sale (Sales) Limited - - - 09/05/16 IT2 Solutions AG LBU Systemhaus AG - - - 09/05/16 Telestream, Inc. Vidcheck Ltd - - - 09/02/16 Navent Group Ltd. Hiring Room - - - 09/01/16 Fleetmatics Group PLC (NYSE:FLTX) Inosat - Consultoria Informatica, S.A. - - - 09/01/16 Tieto Oyj (HLSE:TIE1V) Emric AB - - - 09/01/16 ALA Services LLC Adaptive Computing Enterprises, Inc. - - - 08/31/16 Tradeos Limited Webcargo, SL - - - 08/30/16 LG Informática S.A. E-Guru Serviços de Informática Ltda. - - - 08/30/16 One More Co Inc. KWAGA SAS - - - 08/30/16 Cisco Systems, Inc. (NasdaqGS:CSCO) ContainerX, Inc. - - - 08/30/16 GE Transportation ShipXpress, A GE Transportation Company - - - 08/29/16 Wood Mackenzie Ltd Quest Offshore Resources, Inc., Data and Subscriptions Business - - - 08/26/16 KKR & Co. L.P. (NYSE:KKR) Calabrio, Inc. - - - 08/25/16 Clavister Holding AB (publ) (OM:CLAV) PhenixID AB $11.5 $1.1 10.4x 08/24/16 Proofpoint, Inc. (NasdaqGM:PFPT) Return Path, Inc., Email Fraud Protection Division $18.0 - - 08/24/16 gamigo AG HoneyTracks GmbH - - - 08/24/16 GBT III B.V. Klee Data System SA - - - 08/24/16 - Cardlay A/S - - - 08/22/16 iGAMBIT, Inc. (OTCPK:IGMB) HubCentrix Inc. $0.5 - - 08/21/16 Loblaw Companies Limited (TSX:L) QHR Corporation (TSXV:QHR) $119.8 $23.6 5.1x 08/18/16 John Wiley & Sons Inc. (NYSE:JW.A) Atypon Systems Incorporated $120.0 $31.0 3.9x 08/18/16 Rakuten, Inc. (TSE:4755) Bitnet Technologies Ltd. - - - 08/18/16 REAN Cloud LLC Opex Software LLP. - - - 08/18/16 Vista Equity Partners Granicus Inc. - - - 08/17/16 SAI Global Limited (ASX:SAI) Modulo Security, LLC $5.2 - - 08/17/16 ASRC Federal Holding Company, LLC Vistronix Intelligence & Technology Solutions, LLC - - - 08/17/16 FullContact Inc. Aireum Inc. - - - 08/17/16 Institutional Shareholder Services Inc. iiWisdom, LLC - - - 08/17/16 Speridian Technologies, LLC Sesame Software Solutions Pvt. Ltd. - - - 08/15/16 Briggs Medical Service Company SimpleLTC, Inc. - - - 08/15/16 MediSolution Ltd. Artemis, Inc. - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 08/15/16 salesforce.com, inc. (NYSE:CRM) BeyondCore, Inc. - - - 08/15/16 Blue Star Sports SDI Camps & Races, LLC - - - 08/12/16 Monterro Holdings AB Outpost24 AB - - - 08/11/16 Breezeworks Corporation Prompt.ly, Inc. - - - 08/11/16 CMLS Financial Ltd. Delta 360, Inc. - - - 08/10/16 boomtrain, Inc. Nudgespot Technologies Pvt. Ltd. - - - 08/10/16 Rodan Energy Solutions Inc. Sygration Inc. - - - 08/09/16 Plex Systems, Inc. Cadent Resources, Inc. - - - 08/09/16 Bidpath Ltd. Pacts Auction Systems Limited - - - 08/08/16 BrandMuscle Inc. Saepio Technologies, Inc. - - - 08/05/16 LDC (Managers) Limited ByBox Holdings Limited $137.3 $95.3 1.4x 08/05/16 Google Inc. Orbitera Inc. - - - 08/05/16 Apple Inc. (NasdaqGS:AAPL) Turi Inc. - - - 08/04/16 - TeleMessage Ltd. $0.7 - - 08/04/16 Cuddle Clones LLC Cartoonize My Pet LLC - - - 08/04/16 Benefit Express Services, LLC Transcend Technologies Group, Inc. - - - 08/04/16 Virtus Nutrition, LLC FARMERON d.o.o. - - - 08/03/16 Beijing Shiji Information Technology, Co., Ltd. (SZSE:002153) hetras Deutschland GmbH - - - 08/03/16 Renovate America, Inc. CakeSystems, Inc. - - - 08/02/16 Defenx Plc (AIM:DFX) Memopal s.r.l. $2.7 $0.9 2.9x 08/02/16 Truno Retail Technology Solutions, Inc. Resolution Systems, Inc. - - - 08/02/16 Zillow Group, Inc. (NasdaqGS:ZG) Bridge Interactive Group, LLC - - - 08/01/16 MYOB Group Limited (ASX:MYO) Greentree International Limited $20.5 - - 08/01/16 whiteclouds inc. Sandboxr, Inc. - - - 08/01/16 Manalto Limited (ASX:MTL) Marketing Technologies Group Pty Ltd - - - 08/01/16 Magento, Inc. RJMetrics Inc. - - - 08/01/16 Edgenuity, Inc. CompassLearning, Inc. - - - 08/01/16 Planview, Inc. Innotas, Inc. - - - 08/01/16 Neverfail Neverfail Workspaces - - - 08/01/16 Dominion Payroll Services Tennessee, LLC Avintus Employer Services - - - 08/01/16 Specialist Computer Services Limited Pyramid Human Resources Limited - - - 08/01/16 Emergency Communications Network, LLC MIR3, Inc. - - - 08/01/16 - Market6, Inc. - - - 07/31/16 Jobookit Holdings Ltd. (TASE:JBKT) Homeez Ltd. - - - 07/30/16 Verizon Communications Inc. (NYSE:VZ) Fleetmatics Group PLC (NYSE:FLTX) $2,183.5 $310.6 7.0x 07/30/16 salesforce.com, inc. (NYSE:CRM) Quip, Inc. $582.0 - - 07/29/16 H.I.G. Capital, LLC Symplicity Corporation - - - 07/28/16 CYBERLINKS co.,LTD. (TSE:3683) Cloud Land Ltd. $1.0 $3.6 0.3x 07/28/16 Oracle Corporation (NYSE:ORCL) NetSuite Inc. (NYSE:N) $8,698.9 $846.2 10.3x 07/28/16 AVL LIST GmbH Dacolt International BV - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 07/28/16 Riverbed Technology, Inc. Aternity, Inc. - - - 07/28/16 viihealth inc. Argolife SAS And Argonautes Tunisia, SARL - - - 07/27/16 Endurance International Group Holdings, Inc. (NasdaqGS:EIGI) AppMachine B.V. $26.2 - - 07/27/16 Main Capital Partners B.V. Substantial Stake In Obi4wan And Obilytics - - - 07/27/16 Pepperjam, LLC Pepperjam Performance Marketing - - - 07/26/16 IDOX plc (AIM:IDOX) Open Objects Software Ltd. $6.9 $3.8 1.8x 07/26/16 A10 Networks, Inc. (NYSE:ATEN) Appcito, Inc. $6.5 - - 07/26/16 LinkedIn Corporation (NYSE:LNKD) PointDrive LLC - - - 07/26/16 Yahoo Japan Corporation (TSE:4689) Commerce21 Corporation - - - 07/26/16 - Talent On View Limited - - - 07/26/16 Fidelity National Financial, Inc. (NYSE:FNF) Commissions Inc. - - - 07/25/16 Sandler Partners Inc. X4 Solutions Inc. - - - 07/25/16 Falcon Acquisitions Limited (LSE:FAL) Quiptel Hong Kong Limited - - - 07/25/16 A Plus Finance SA; Edmond de Rothschild Investment Partners Travelsoft SAS - - - 07/25/16 SportsEngine Beyond the Scores, LLC - - - 07/25/16 Dynamis, Inc. Emergency & Security Management Solutions - - - 07/25/16 Nayax Ltd. VendSys - - - 07/24/16 HyperGrid Inc DCHQ Inc. - - - 07/21/16 Net Element, Inc. (NasdaqCM:NETE) 51% Stake in PayStar, Inc. and Nexcharge, Inc. $3.4 - - 07/21/16 Workday, Inc. (NYSE:WDAY) Platfora, Inc. - - - 07/21/16 GoHealth, LLC 1SourceAdmin LLC - - - 07/21/16 salesforce.com, inc. (NYSE:CRM) Coolan, Inc. - - - 07/21/16 REZ-1, Inc. International Asset Systems USA Limited - - - 07/21/16 SportsEngine Sioux Falls Swim Team, Inc. - - - 07/20/16 Eckoh Plc (AIM:ECK) Klick2Contact EU LTD $8.8 $1.0 9.1x 07/20/16 Nuance Communications, Inc. (NasdaqGS:NUAN) TouchCommerce, Inc. $215.1 - - 07/20/16 AFN, LLC HA Advantage, Inc. - - - 07/20/16 Marlin Equity Partners, LLC Revenew, Inc. - - - 07/20/16 GreatSchools, Inc. Schoolie, Inc. - - - 07/20/16 3PL Central, LLC TS Traker Systems Inc. - - - 07/19/16 Volaris Group Inc. The Alpha School System PTY LTD - - - 07/19/16 Utility Telephone, Inc. Prestige Voice Mail Service, Inc. - - - 07/19/16 Virtual Hold Technology, LLC CallPromise, LLC - - - 07/19/16 Carbon Black, Inc. Confer Technologies, Inc. - - - 07/19/16 Apax Partners LLP Dominion Marine Media, LLC - - - 07/19/16 SportsEngine Trackwrestling.com, LLC - - - 07/18/16 Solera Holdings Inc. Enservio, Inc. - - - 07/15/16 Harris School Solutions Media-X Systems Inc. - - - 07/14/16 Amazon Web Services, Inc. Cloud9 IDE, Inc. - - - 07/14/16 Mobvista International Technology Limited Game Analytics ApS - - -

Enterprise Value Date Buyer Seller (mm) TTM Revenue EV/Rev 07/14/16 Matterport, Inc. Inspired Labs Ltd - - - 07/13/16 Thoma Bravo, LLC Imprivata, Inc. $488.5 $131.3 3.7x 07/13/16 Catapult Group International Ltd. (ASX:CAT) XOS Digital, Inc. $60.0 - - 07/13/16 Independent Publishers Group INscribe Digital - - - 07/12/16 INTCAS (UK) Ltd. FundsV.com, LLC - - - 07/12/16 Five Pack Creative, Inc. Hours, LLC - - - 07/12/16 Casio Computer Co., Ltd. (TSE:6952) Ripplex Inc. - - - 07/12/16 Foxit Software Incorporated Sumilux Technologies, Inc. - - - 07/12/16 Fort Point Capital WolfePak Software, LLC - - - 07/11/16 MI9 Business Intelligence Systems, Inc. Upshot Commerce - - - 07/11/16 Blackbaud Inc. (NasdaqGS:BLKB) Good + Geek Inc. - - - 07/11/16 eBay Inc. (NasdaqGS:EBAY) SalesPredict Ltd. - - - 07/11/16 Myntra Designs Private Limited Grid Ant Technologies Private Limited - - - 07/11/16 DABERO Service Group GmbH Wassermann AG - - - 07/11/16 Infor, Inc. Starmount Inc. - - - 07/08/16 IP-Only AB Arkena Nordics - - - 07/08/16 Integral Ad Science, Inc. Swarm Enterprises Inc. - - - 07/08/16 Caretta Partners, LLC cSuite Technologies Inc. - - - 07/08/16 Nordstrom Inc. (NYSE:JWN) DS Co. - - - 07/08/16 TrustYou GmbH Checkmate, Inc. - - - 07/07/16 Avenue 81, Inc. Drip, Inc. - - - 07/07/16 Develus Systems Inc. Suncoast Solutions, Inc. - - - 07/07/16 Alphabet Inc. (NasdaqGS:GOOGL) Anvato Inc. - - - 07/07/16 PRA Group, Inc. (NasdaqGS:PRAA) RamWare LLC - - - 07/07/16 Acuity Brands, Inc. (NYSE:AYI) DGlogik, Inc. - - - 07/06/16 AVAST Software s.r.o. AVG Technologies N.V. (NYSE:AVG) $1,463.0 $430.3 3.4x 07/06/16 Exlservice Holdings, Inc. (NasdaqGS:EXLS) Liss Systems Ltd. - - - 07/05/16 Point of Rental Software, Inc. Higher Concept Software Limited - - - 07/05/16 gamigo AG highdigit GmbH - - - 07/04/16 DIMO Software S.A.S. CashOnTime Inc. - - - 07/04/16 Rision Limited (ASX:RNL) Online Rostering Pty Ltd - - - 07/01/16 BigAir Group Limited (ASX:BGL) CyberHound Pty Ltd. $5.3 - - 07/01/16 Telstra Corporation Limited (ASX:TLS) Readify Limited - - - 07/01/16 NBC Sports, Inc. SportsEngine - - - 07/01/16 Northshore Management Company, LLC Fiveworx, Inc. - - -

Median Exit Multiples Median EV/Revenue Exit Multiple Distribution

30.0x EV/Revenue EV/EBITDA 27.6% 24.7x 25.0x 23.2x 23.8%

20.0x 18.1x

15.0x 3Q16TTM

14.6x – 14.3% 15.0x 13.3% 10.5% 10.0x

% of Deals of % 6.7%

5.0x 3.8% 2.5x 2.6x 2.2x 2.1x 2.0x

0.0x 3Q15 4Q15 1Q16 2Q16 3Q16 <= 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 3Q16, on-premise software providers posted a median 2.0x TTM • On a TTM basis, approximately 51% of all on-premise software revenue multiple, less than half the median 4.5x TTM multiple posted targets in 3Q16 were acquired for 2.0x TTM or less, and 65% for 3.0x by SaaS sellers in 3Q16. or less. In comparison, 52% were acquired for 2.0x TTM revenue or • With the exception of 4Q15’s 2.6x TTM revenue, median exit multiples less and 72% for 3.0x or less in 2Q16. 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 EQT Partners’ acquisition of health care • The median EV/EBITDA exit multiple for public on-premise software software provider, Press Ganey, for $2.4 billion (6.9x TTM revenue) companies was 14.6x TTM EBITDA in 3Q16, roughly in line with the and Mastercard’s acquisition of payments technology provider, prior quarter. VocaLink, for $1.2 billion (5.0x TTM revenue). • The multiple for on-premise vendors has begun to soften in 2016 and is at its lowest point since 2Q13’s median 1.8x 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 2.6x Median Multiple 1.6x Median Multiple

48% 52%

Seller Greater Seller Greater Than $20 Than $20 million: 0.8x2.6x million: 1.5x1.7x

Seller Less Seller Less Than $20 Than $20 million: 2.6x million: 2.4x1.6x

• Of the TTM deals announced with an ascertainable EV/Rev exit • Buyers with revenue greater than $200 million paid a median 2.6x multiple, approximately 80% of software M&A transactions featured TTM revenue for their targets, compared to a median 1.6x TTM privately-held targets. revenue paid by sub-$200 million revenue buyers. • The median TTM exit multiple was significantly higher for public on- • While the highest exit multiples have historically featured a large premise software sellers (3.0x TTM revenue) than for their private public or private buyer (greater than $200 million in revenue) counterparts (1.8x TTM revenue). acquiring a small target (less than $20 million), this was not the case in 3Q16. For the last 12 months, large buyers paid a median 2.6x TTM • Over the last 12 months, public buyers paid a median 1.8x TTM revenue for acquisition targets small and large. revenue for their targets, compared to a median of 2.4x paid by private buyers.

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

2.5x 2.4x 2.4x 2.4x 2.3x 2.2x 2.1x 2.1x 2.1x 2.1x 66% 64% 69% 65% 65%

34% 36% 31% 35% 35%

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

Vertical Horizontal Vertical Horizontal

• The median exit valuation of horizontal software companies was 2.1x TTM revenue in 3Q16, on par with recent quarters. Representative Q3 horizontal transactions included EQT Partners’ acquisition of healthcare service provider, Press Ganey, for $2.4 billion (6.9x TTM revenue); MasterCard’s acquisition of payments provider, VocaLink, for $1.1 billion (5x TTM revenue); DTI’s acquisition of legal software company, Epiq Systems, for $1.0 billion (1.9x TTM revenue). • The median exit valuation of vertical software companies was 2.4x TTM revenue in 3Q16, also on par with 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. • Q3’s more noteworthy vertical on-premise software deals included Micro Focus’ acquisition of Hewlett Packards enterprise software division for $8.7 billion (2.7x TTM revenue); LogMeIn’s acquisition of Citrix’s GoTo family of products for $1.8 billion; Genesys Telecom’s acquisition of Interactive Intelligence for $1.5 billion (3.4x TTM revenue); and Open Text’s acquisition of Dell’s enterprise content management business for $1.6 billion (2.7x TTM revenue).

Vertical Product Categories

13.1%

8.0% 8.0% 3Q15 5.5% 5.3% 5.0% 3Q16 3.9% 2.8% 2.1% 2.5% 2.2% 1.4% 1.7% 1.4% 1.7%1.8% 1.1% 0.8% 0.8%1.1%

Education Financial Services Healthcare Insurance Other Verticals Public Sector Retail Real Estate Legal Automotive

Horizontal Product Categories

7.4%

6.0% 5.2% 5.2% 4.9% 4.7% 4.1% 3Q15 2.8% 3Q16 2.1% 2.1% 2.2% 2.2% 1.8% 1.7%1.8% 1.8% 1.8% 1.4%1.4% 1.4% 1.4% 1.1% 1.1% 1.1% 1.1% 0.6% 0.8% 0.7% 0.8% 0.8% 0.4% 0.0%

BI, Risk & Content & CRM, Marketing & Data Dev. Tools & IT eCommerce EDA Engineering & ERP Entertainment HR & Workforce Messaging, Multimedia, Network Security Billing & Service Compliance Document Mgmt Sales Mgmt/Integration Asset Mgmt PLM Mgmt Conferencing & Graphics & Performance Provisioning Communications Communications Mgmt

Median EV/Revenue Exit Multiples by Software Product Category

4.2x 3.8x 3.2x 2.4x 1.8x 1.7x 1.7x 1.2x 1.2x

1.0x 0.8x

Mobile

Security

Education

Mgmt

BI,Risk &

Healthcare

Compliance

Messaging,

Entertainment

HumanCapital

OtherVerticals

Conferencing&

Communications

CRM & Marketing FinancialServices

• 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 3Q16. • On a TTM basis, the Financial Services category was rewarded with the highest median exit multiple (4.2x TTM revenue), followed by Healthcare with a median exit multiple of 3.8x TTM revenue. • Notable Healthcare transactions include IBM’s 1Q16 acquisition of healthcare analytics provider, Truven Holding ($3.6 billion, 5.8x TTM revenue); Echo’s 3Q16 acquisition of Morrisey ($48 million, 3.8x TTM revenue) and Progenics Pharmaceuticals’ 4Q15 acquisition of EXINI Diagnostics AB ($7.1 million, 6.3x TTM revenue). • Notable Financial Services software transactions included Mastercard’s 3Q16 acquisition of VocaLink ($1.1 billion, 5.1x 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 & Marketing and Human Capital Management exit multiples lagged far behind all other product categories on a TTM basis – posting a meager 1.0x and 0.8x median TTM revenue multiple in 3Q16, respectively.

SOFTWARE EQUITY GROUP | Q3 2016 SOFTWARE INDUSTRY FINANCIAL REPORT Copyright © SEG Capital Advisors, LLC, All Rights Reserved 52 ABOUT SOFTWARE EQUITY GROUP Software Equity Group (SEG) is a boutique investment bank and M&A advisory serving emerging and middle market software companies. For more than twenty years, SEG has worked alongside its software industry clients to drive extraordinary outcomes for the client's shareholders, employees and customers. Over this time period, SEG has managed hundreds of sell-side M&A transactions, representing billions of dollars of aggregate transaction value. SEG's unwavering commitment to the software industry equates to unmatched expertise across software industry product categories, delivery models, technology and end market verticals; and unrivaled access to key decision makers among strategic and private equity buyers. 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. 12220 El Camino Real, Suite 320 San Diego, CA 92130 www.softwareequity.com p: (858) 509-2800

The information contained in this Report is obtained from sources that SEG Capital Advisors LLC (“SEG”) believes to be reliable. However, SEG makes no representations or warranties, express or implied, about the accuracy, completeness or fairness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Any person or entity reviewing this report (a) should conduct its own diligence and reach its own conclusions regarding its business transactions, (b) should not rely upon any conclusions reached by SEG, and (c) should consult its own advisors regarding its tax, accounting, financial and/or business decisions. SEG or its affiliates may have an interest in one or more of the securities or companies discussed herein. Financial data was provided by Capital IQ.

This Report may not be reproduced in whole or in part without the expressed prior written authorization of SEG. SEG or one of its affiliate Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. SOFTWARE EQUITY GROUP | Q3 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 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 2U 10.5x 7.1x 4.7x 6.7x 8.2x - - - - - 33.9% 32.0% 36.2% 37.6% 37.1% -20.0% -18.6% -16.6% -14.0% -12.2% Alarm.com 4.4x 3.6x 3.3x 4.0x 4.9x 30.0x 22.6x 22.9x 27.3x 30.8x 25.4% 26.1% 24.8% 25.8% 25.8% 14.5% 15.9% 14.4% 14.8% 15.9% Amber Road 1.9x 1.8x 10.4x 2.1x 3.7x - - - - - 11.4% 7.5% 3.5% 5.9% 4.6% -19.8% -27.6% -33.6% -30.0% -24.9% Apigee Corporation 2.4x 2.4x 9.1x 2.9x 3.9x - - - - - 30.2% 26.6% 28.3% 32.1% 34.1% -68.6% -60.6% -53.3% -48.8% -41.8% AppFolio 8.3x 7.5x 9.8x 5.1x 6.6x ------57.3% 53.4% 48.9% -17.1% -19.3% -16.1% -14.4% -11.9% Appito, Inc - - 5.9x - 6.4x ------21.2% 21.2% 20.5% -24.7% -26.5% -25.9% -22.7% -21.0% Athenahealth 6.5x 7.2x 0.8x 5.5x 5.0x 76.9x 92.5x 12.6x 67.5x 59.2x 24.2% 23.8% 22.9% 22.4% 21.2% 8.4% 7.8% 6.6% 8.1% 8.4% Atlassian Corp - 16.0x 1.9x 10.3x 12.3x - 381.7x 46.9x 313.6x 652.3x 48.5% - - - 43.0% 3.4% 4.2% 4.1% 3.3% 1.9% Bazaarvoice 2.0x 1.6x 3.6x 1.2x 1.5x - - - - - 11.7% 9.3% 6.1% 4.5% 3.6% -10.5% -9.1% -9.1% -7.5% -4.9% Benefitfocus 6.5x 6.0x 4.0x 5.3x 5.7x - - - - - 33.6% 34.1% 34.7% 32.0% 33.0% -31.6% -27.5% -24.4% -22.3% -17.1% Box 5.8x 4.9x 2.4x 4.1x 4.3x ------45.5% 39.9% 38.2% 35.1% -58.1% -56.3% -54.3% -47.6% -41.0% Callidus Software 5.2x 5.9x 4.0x 5.0x 5.5x - - 1889.4x - - 24.2% 27.8% 26.7% 25.0% 22.9% -3.3% -3.1% 0.2% 0.0% -0.1% Castlight Health 6.8x 3.6x 9.3x 3.1x 3.4x - - - - - 121.2% 88.9% 65.1% 54.3% 42.5% -125.5% -115.4% -103.8% -93.6% -82.4% ChannelAdvisors 2.4x 2.9x 7.2x 2.5x 2.5x - - - - - 18.6% 16.5% 18.5% 18.4% 17.1% -25.4% -19.6% -11.5% -6.7% -6.9% Cornerstone OnDemand 6.5x 6.0x 2.2x 5.4x 6.3x - - - - - 35.7% 32.3% 28.9% 30.3% 29.3% -17.5% -18.5% -17.8% -16.1% -13.9% Covisint 0.7x 0.5x 9.1x 0.5x 0.6x ------9.7% -10.6% -11.2% -14.1% -12.2% -26.8% -25.8% -24.9% -14.9% -13.0% Cvent 7.0x 7.1x 4.0x 6.7x 5.7x 1950.4x 640.8x 657.1x 212.4x 144.7x 31.7% 31.8% 32.0% 30.9% 27.9% 0.4% 1.1% 0.6% 3.2% 3.9% DealerTrack 2.6x 3.9x 21.6x 3.5x 2.5x 20.0x 28.2x 143.9x 21.5x 15.5x 60.3% 39.7% 41.8% 43.7% 43.7% 12.9% 13.7% 15.0% 16.1% 16.1% Ebix 4.8x 4.9x 3.2x 6.2x 7.0x 13.5x 13.9x 8.6x 16.6x 18.6x 17.6% 25.1% 23.9% 20.3% 17.0% 35.5% 35.1% 36.8% 37.3% 37.4% Ellie Mae 9.9x 7.8x 2.9x 9.1x 10.5x 45.2x 37.5x 15.5x 52.4x 57.9x 54.6% 62.2% 57.2% 48.9% 42.0% 21.9% 20.7% 18.9% 17.3% 18.1% Everbridge, Inc - - 12.1x - 6.8x ------38.4% 35.5% 33.4% -3.0% -9.4% -14.0% -15.4% -16.1% FireEye 12.0x 5.6x 1.1x 3.7x 3.4x - - - - - 97.4% 71.0% 46.4% 39.5% 30.9% -74.8% -67.1% -63.5% -61.7% -57.9% Fleetmatics 6.5x 7.2x 2.4x 4.6x 7.0x 24.8x 28.9x 10.0x 20.2x 32.7x 27.0% 24.7% 23.0% 21.7% 20.2% 26.3% 24.9% 24.0% 22.8% 21.4% Halogen Software 2.0x 1.4x 9.5x 1.6x 1.7x - - - - 361.0x 18.0% 17.4% 15.9% 14.2% 12.8% -13.9% -9.7% -6.0% -4.4% 0.5% HealthStream 3.6x 3.0x 3.3x 2.7x 3.2x 25.3x 18.3x 26.9x 24.0x 28.1x 24.8% 22.2% 22.4% 20.3% 15.5% 14.1% 16.3% 12.1% 11.1% 11.2% HortonWorks 11.9x 7.9x 5.8x 3.8x 2.7x - - - - - 106.4% 121.4% 164.8% 135.6% 99.0% -266.4% -221.4% -143.3% -140.1% -140.9% HubSpot 10.4x 10.4x 4.1x 7.2x 8.2x - - - - - 55.3% 56.6% 57.0% 56.1% 54.3% -35.5% -33.2% -24.0% -20.6% -18.1% inContact 2.3x 2.7x 3.2x 2.6x 3.5x - - - 403.9x 207.1x 36.1% 33.3% 29.2% 25.2% 23.1% -4.2% -2.5% -0.7% 0.6% 1.7% Instructure - 8.6x 10.1x 5.2x 6.6x ------65.0% 62.5% 62.1% -92.5% -85.3% -67.9% -56.8% -51.7% IntraLinks Holdings 2.5x 2.0x 3.0x 1.7x 2.0x 54.4x 51.3x 100.6x 43.7x 39.1x 9.7% 8.5% 7.9% 6.7% 6.1% 4.5% 3.9% 3.0% 4.0% 5.1% J2 Global 5.3x 5.9x 1.3x 4.4x 4.4x 12.9x 14.2x 3.3x 10.8x 10.5x 20.7% 19.9% 20.3% 21.4% 21.0% 40.8% 41.4% 40.6% 41.1% 41.7% Jive Software 1.3x 1.3x 4.3x 1.0x 1.1x - - - - - 18.0% 13.5% 9.6% 7.9% 6.2% -13.8% -11.8% -10.7% -9.6% -6.8% LivePerson 2.1x 1.7x 4.0x 1.3x 1.7x 59.4x 26.8x 56.3x 18.9x 25.0x 20.5% 19.9% 13.9% 5.8% 0.8% 3.6% 6.2% 7.1% 7.0% 6.7% Marin Software 1.0x 1.0x 9.6x 0.5x 0.6x - - - - - 19.5% 13.1% 9.2% 6.2% 2.3% -27.3% -25.2% -19.4% -14.4% -7.7% Medical Transcript 1.0x 0.8x 50.2x 0.5x 0.6x - - - - - 126.9% 75.0% 26.1% 0.8% -15.6% -13.5% -7.0% -6.5% -5.9% -5.4% Medidata Solutions 7.8x 6.3x 3.2x 6.0x 7.2x 76.2x 59.7x 31.0x 55.3x 59.1x 19.8% 19.5% 17.1% 15.2% 15.1% 10.2% 10.5% 10.2% 10.9% 12.2% Mimecast - 4.5x 8.5x 2.6x 4.7x - 31.1x 84.4x 46.3x 225.8x - - - 22.2% 22.5% 10.9% 14.4% 10.1% 5.6% 2.1%

SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 MINDBODY 6.2x 5.8x 12.2x 4.3x 5.1x ------44.8% 45.0% 41.4% -29.8% -27.4% -28.3% -24.1% -20.0% NantHealth, Inc. - - 23.0x 27.6x 18.3x ------71.9% 70.9% 97.8% -145.7% -133.5% -109.1% -120.3% -143.8% Netsuite 11.0x 9.6x 1.8x 7.7x 10.3x - - - - - 35.0% 34.9% 33.2% 32.6% 31.5% -9.1% -8.4% -8.3% -7.9% -7.0% New Relic 11.7x 11.3x 7.6x 6.1x 8.0x - - - - - 73.2% 68.8% 67.5% 64.2% 60.2% -38.3% -36.2% -32.5% -32.4% -30.1% Nutanix, Inc - - 4.0x - 11.8x - - - - - 89.9% - - 83.7% 84.3% -42.3% -39.1% -35.8% -33.7% -31.2% Paycom Software 11.4x 11.3x 5.9x 9.0x 10.2x 55.4x 56.4x 31.3x 38.2x 43.3x 46.2% 48.4% 48.8% 53.4% 53.9% 20.6% 20.1% 18.7% 23.5% 23.6% Paylocity Holding 10.8x 11.9x 6.2x 8.7x 9.5x - - - 374.4x 449.0x 40.5% 42.0% 46.7% 49.2% 51.1% -5.2% -3.6% -0.2% 2.3% 2.1% Q2 Holdings 9.7x 9.0x 8.8x 7.2x 8.0x - - - - - 41.8% 38.5% 37.6% 37.0% 37.0% -15.1% -14.9% -14.8% -15.7% -16.4% Qualys 6.5x 6.6x 7.1x 4.3x 5.2x 31.5x 29.8x 29.7x 17.6x 21.4x 24.1% 24.1% 23.0% 23.0% 22.5% 20.7% 22.3% 23.8% 24.6% 24.3% RealPage 3.5x 3.7x 2.9x 3.7x 4.1x 44.0x 39.2x 25.6x 29.4x 30.5x 11.6% 14.1% 15.8% 17.4% 18.5% 7.9% 9.4% 11.3% 12.5% 13.3% RingCentral 4.5x 5.2x 3.9x 3.9x 4.5x - - - - - 35.3% 35.1% 34.7% 34.0% 32.9% -10.6% -7.9% -5.5% -4.0% -2.7% Salesforce.com 8.0x 8.3x 0.2x 7.5x 7.2x 150.8x 130.8x 2.2x 101.4x 96.2x 25.3% 24.2% 24.1% 25.0% 25.1% 5.3% 6.3% 7.0% 7.4% 7.5% Service-now.com 13.6x 14.3x 1.0x 10.0x 9.9x - - - - - 54.0% 50.5% 47.3% 45.5% 42.9% -14.9% -12.5% -10.5% -9.3% -7.7% Shopify 16.5x 11.6x 3.0x 9.2x 11.1x ------95.4% 94.7% 95.0% -7.2% -5.9% -5.9% -6.9% -7.4% SPS Commerce 7.2x 7.2x 3.6x 4.6x 5.6x 72.9x 70.8x 34.3x 44.0x 55.9x 25.0% 25.8% 23.9% 22.9% 22.2% 9.8% 10.1% 10.5% 10.4% 10.1% Tableau Software 12.4x 9.8x 0.7x 4.1x 4.4x - - - - - 71.4% 69.1% 58.4% 48.5% 41.0% -0.3% -1.4% -4.3% -8.4% -11.3% Tabula Rasa Healthcare - - 6.1x - 3.7x - - 60.2x - 34.0x - - 44.6% 40.7% 35.9% 8.1% 9.1% 10.1% 10.6% 11.0% Tangoe 1.3x 1.3x 1.9x 1.3x 1.4x 19.2x 30.5x 44.0x 29.0x 30.9x 8.3% 5.7% 5.7% 5.7% 5.7% 6.7% 4.4% 4.4% 4.4% 4.4% The Trade Desk - - 4.3x - 8.2x - - 12.6x - 26.0x - - 155.5% - - 2.1% 2.1% 33.8% 30.7% 31.6% The Ultimate Software Group 9.0x 9.4x 0.8x 8.4x 8.6x 74.2x 83.5x 7.6x 86.5x 90.5x 21.1% 20.8% 22.2% 24.7% 26.1% 12.2% 11.3% 10.3% 9.7% 9.5% TrueCar 1.7x 2.0x 1.6x 1.8x 2.6x - - - - - 37.2% 31.6% 25.7% 18.9% 12.0% -16.1% -13.7% -14.3% -14.4% -12.9% Twilio, Inc. - - 2.6x 13.2x 19.4x ------87.9% 86.6% 79.1% -24.8% -23.2% -19.9% -15.8% -13.9% Upland Software 1.8x 1.7x 6.3x 2.0x 2.5x 556.4x 359.1x 643.0x 81.8x 53.0x 25.0% 14.2% 8.3% 5.2% 4.3% 0.3% 0.5% 1.0% 2.4% 4.6% Veeva Systems 8.3x 8.2x 2.0x 7.7x 10.1x 34.2x 34.6x 9.3x 38.9x 52.2x 37.9% 32.2% 30.6% 30.5% 31.6% 24.4% 23.8% 21.6% 19.9% 19.4% Workday 13.6x 13.2x 0.4x 10.8x 10.9x - - - - - 58.2% 51.4% 47.5% 43.0% 38.7% -15.8% -15.6% -15.6% -15.5% -15.5% Workiva 4.1x 4.8x 2.2x 3.0x 4.0x - - - - - 27.8% 27.7% 28.9% 29.2% 28.7% -29.3% -28.8% -27.0% -28.8% -27.8% Xactly 3.1x 3.2x 2.7x 2.6x 4.3x ------20.9% 24.3% 27.9% 29.7% -19.8% -20.2% -21.5% -21.0% -18.4%

CRM & Marketing 3Q15 4Q15 1Q16 2Q16 3Q16 Other SaaS 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 5.4x 6.6x 6.7x 3.7x 5.7x EV/TTM Revenue 5.2x 4.7x 4.8x 3.5x 4.4x EV/NTM Revenue 6.0x 6.0x 3.3x 5.2x 4.5x EV/NTM Revenue 3.7x 4.1x 2.8x 2.9x 3.3x EV/TTM EBITDA 149.4x 119.1x 112.3x 91.4x 96.2x EV/TTM EBITDA 35.2x 28.3x 36.2x 43.8x 35.0x EV/TTM CFO 31.3x 43.5x 32.4x 19.8x 25.8x EV/TTM CFO 31.1x 37.0x 42.2x 28.7x 33.8x Gross Profit Margin 67.9% 67.9% 68.2% 70.0% 70.1% Gross Profit Margin 68.3% 68.4% 68.9% 69.3% 69.8% EBITDA Margin -10.5% -9.1% -9.1% -7.5% -4.9% EBITDA Margin -12.2% -10.6% -10.6% -8.8% -7.5% Net Income Margin -17.1% -14.3% -13.7% -12.7% -12.7% Net Income Margin -19.5% -18.2% -19.0% -17.2% -16.8% TTM Revenue Growth (YoY) 25.3% 24.2% 24.1% 25.0% 25.1% TTM Revenue Growth (YoY) 31.6% 27.7% 29.2% 27.2% 28.7% TTM EBITDA Growth (YoY) -10.5% 0.3% 22.3% 50.5% 71.1% TTM EBITDA Growth (YoY) -4.8% -3.6% 4.1% 0.1% 4.8% TTM Earnings Growth (YoY) 26.9% 14.3% -4.5% -8.6% -14.6% TTM Earnings Growth (YoY) -49.5% 15.5% 14.4% 19.6% -12.0% Cash as Percent of Market Cap 12.6% 12.3% 14.2% 12.6% 11.9% Cash as Percent of Market Cap 12.2% 12.1% 15.1% 13.8% 10.9% Enterprise Value Growth (YoY) -3.5% 11.9% -12.3% 7.3% 10.6% Enterprise Value Growth (YoY) 30.8% -0.3% -26.7% -20.1% 0.6%

ERP & Supply Chain 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 6.4x 6.2x 6.9x 3.7x 5.6x EV/NTM Revenue 5.5x 5.5x 3.0x 4.2x 5.3x EV/TTM EBITDA 24.3x 25.0x 28.7x 21.0x 32.7x EV/TTM CFO 78.9x 70.5x 65.6x 37.1x 46.4x Gross Profit Margin 67.7% 67.1% 67.8% 67.8% 67.6% EBITDA Margin -9.1% -8.4% -8.3% -7.9% -7.0% Net Income Margin -17.0% -17.0% -16.8% -16.6% -16.2% TTM Revenue Growth (YoY) 27.0% 25.8% 23.9% 22.9% 22.2% TTM EBITDA Growth (YoY) 16.9% 16.2% 7.6% -0.1% -1.0% TTM Earnings Growth (YoY) 31.7% 22.7% 41.2% 61.7% 63.8% Cash as Percent of Market Cap 12.4% 10.4% 14.4% 12.5% 9.1% Enterprise Value Growth (YoY) 20.1% 16.4% -21.1% -15.7% 17.8%

Vertically Focused 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 7.4x 6.1x 6.3x 4.8x 6.6x EV/NTM Revenue 5.1x 4.7x 4.5x 4.8x 5.2x EV/TTM EBITDA 40.8x 34.1x 33.6x 29.9x 34.0x EV/TTM CFO 31.6x 26.3x 26.0x 20.7x 32.3x Gross Profit Margin 60.2% 60.1% 59.4% 59.0% 59.2% EBITDA Margin 8.0% 8.4% 8.3% 9.4% 9.7% Net Income Margin -2.3% -5.2% -3.0% -1.8% -1.3% TTM Revenue Growth (YoY) 35.9% 32.1% 36.9% 37.3% 36.4% TTM EBITDA Growth (YoY) 6.1% 12.3% 12.3% 15.3% 19.6% TTM Earnings Growth (YoY) 82.9% 70.1% 42.5% 22.8% 21.4% Cash as Percent of Market Cap 7.5% 11.3% 12.9% 9.8% 7.5% Enterprise Value Growth (YoY) 15.5% 26.3% 6.2% 14.0% 13.2%

Human Capital Management 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 6.6x 6.1x 5.6x 4.5x 6.0x EV/NTM Revenue 4.6x 4.9x 4.1x 4.5x 5.0x EV/TTM EBITDA 52.6x 51.6x 70.2x 53.4x 90.5x EV/TTM CFO 56.9x 54.6x 49.5x 37.1x 48.3x Gross Profit Margin 60.3% 60.9% 61.5% 61.9% 62.1% EBITDA Margin -9.6% -6.7% -3.1% -2.2% 0.2% Net Income Margin -18.7% -16.9% -14.1% -10.3% -8.3% TTM Revenue Growth (YoY) 33.6% 30.0% 27.8% 29.1% 29.5% TTM EBITDA Growth (YoY) -15.6% -24.6% 12.9% 12.9% 13.0% TTM Earnings Growth (YoY) 28.4% -0.5% -17.1% -33.7% -28.7% Cash as Percent of Market Cap 10.7% 7.8% 10.3% 11.0% 9.6% Enterprise Value Growth (YoY) 22.3% 36.8% 4.7% 8.1% 20.8%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 A10 Networks 1.7x 1.7x 1.4x 1.4x 2.1x - - - - - 4.2% 6.2% 10.8% 17.4% 21.2% -19.7% -18.0% -13.8% -10.8% -9.2% Accretive Health ------1.7% -60.9% -44.2% 120.3% 159.9% -17.9% -154.3% -100.9% 46.1% 44.7% ACI Worldwide 3.3x 3.4x 2.9x 3.0x 2.9x 16.4x 17.5x 17.2x 20.5x 28.0x 6.7% 1.8% 2.9% 1.1% -4.3% 20.2% 19.3% 16.7% 14.6% 10.5% Activision Blizzard 4.3x 5.4x 5.4x 6.3x 6.2x 14.1x 16.4x 17.9x 19.3x 22.1x 8.4% 12.3% 5.8% 5.8% 15.4% 30.7% 32.8% 30.4% 32.9% 28.3% Allot Communications 0.5x 0.6x 0.4x 0.5x 0.5x - - - - - 3.9% -7.6% -14.7% -21.2% -15.3% -0.8% -3.3% -4.3% -9.6% -4.9% Allscripts Healthcare Solutions 2.3x 2.4x 2.1x 2.2x 2.7x 37.1x 35.2x 26.3x 24.1x 29.1x 0.0% -0.5% 0.6% 1.8% 4.3% 6.2% 6.9% 8.1% 8.9% 9.3% Amdocs Limited 2.1x 2.1x 2.0x 2.0x 2.1x 10.6x 10.7x 10.6x 10.9x 10.5x 3.1% 2.2% 1.5% 2.0% 2.4% 19.4% 19.3% 18.9% 18.6% 19.5% American Software 1.9x 2.1x 1.8x 1.7x 2.2x 15.1x 15.1x 13.5x 13.1x 18.9x 4.6% 11.6% 11.3% 10.7% 5.2% 12.5% 13.7% 13.5% 13.4% 11.6% ANSYS 7.9x 7.9x 7.3x 7.3x 7.5x 17.3x 17.3x 15.9x 15.9x 16.4x 5.1% 3.0% 0.7% 1.3% 2.1% 46.0% 45.6% 45.8% 45.7% 45.8% Aspen Technology 7.2x 7.2x 5.7x 6.6x 7.3x 17.2x 16.6x 12.8x 14.2x 15.6x 12.5% 10.4% 10.7% 10.5% 7.3% 41.9% 43.1% 44.4% 46.4% 47.0% Autodesk 4.1x 5.1x 4.4x 5.2x 5.8x 52.2x 75.7x 74.7x 442.0x - 7.1% 3.5% -0.3% -7.7% -9.0% 7.9% 6.8% 5.9% 1.2% -1.2% AVG Technologies 3.6x 2.8x 2.6x 2.5x 3.2x 11.8x 9.7x 8.6x 8.5x 11.0x 5.1% 11.5% 14.5% 13.1% 6.8% 30.1% 29.0% 30.4% 29.6% 29.0% Bango PLC 17.3x 19.7x 11.0x 5.8x 12.9x ------63.3% -61.4% -37.2% -14.6% 28.5% -182.0% -196.9% -142.1% -143.6% -144.9% Barracuda Networks 4.2x 2.5x 1.6x 2.1x 3.0x 256.7x 222.6x 60.3x 41.8x 60.1x 17.4% 16.2% 15.4% 13.7% 13.7% 1.6% 1.1% 2.6% 5.0% 5.0% Blackbaud 4.9x 5.1x 4.7x 5.0x 5.2x 30.1x 31.7x 28.8x 30.0x 31.0x 13.4% 12.5% 13.0% 13.1% 13.9% 16.3% 16.0% 16.4% 16.7% 16.6% Bottomline Technologies 3.2x 3.3x 3.3x 3.0x 2.6x 26.1x 27.0x 27.3x 23.9x 22.6x 10.1% 5.6% 3.9% 4.1% 3.7% 12.1% 12.4% 12.1% 12.7% 11.6% Broadridge Financial 2.5x 2.6x 2.5x 2.7x 2.9x 11.7x 12.1x 11.9x 12.8x 13.8x 5.3% 6.4% 6.7% 7.6% 7.5% 21.3% 21.2% 21.2% 21.3% 21.1% Brocade Communications Systems 1.7x 1.6x 1.4x 1.5x 1.7x 6.4x 6.3x 5.5x 6.1x 8.0x 1.5% 2.4% 1.7% 0.3% 1.7% 26.2% 25.7% 25.0% 24.1% 21.5% BSQUARE 0.5x 0.5x 0.4x 0.4x 0.3x 7.8x 8.4x 5.5x 7.0x 9.0x 10.6% 11.5% 11.1% 6.4% -5.3% 6.0% 6.6% 6.6% 5.5% 3.9% CA 2.7x 2.8x 2.9x 3.1x 3.4x 8.5x 8.9x 9.5x 9.9x 10.9x -4.9% -6.1% -6.6% -5.6% -2.9% 32.0% 30.9% 30.5% 31.2% 30.6% Cadence Design Systems 3.4x 3.6x 3.4x 4.0x 4.1x 14.4x 15.0x 14.4x 16.1x 17.3x 10.0% 9.7% 7.7% 7.7% 7.6% 23.6% 23.7% 24.0% 24.7% 23.8% Cerner 5.8x 5.1x 4.3x 4.2x 4.6x 20.2x 18.1x 15.4x 15.0x 16.6x 24.0% 29.0% 31.4% 27.4% 20.1% 28.5% 28.0% 27.7% 27.9% 27.7% Check Point Software Tech 8.5x 8.6x 8.2x 7.9x 7.0x 15.8x 16.2x 15.8x 15.3x 13.7x 8.6% 8.9% 9.0% 8.9% 8.3% 53.5% 52.9% 52.3% 51.6% 51.0% Cisco Systems 2.1x 2.1x 2.0x 2.1x 2.4x 7.5x 7.4x 6.6x 7.1x 8.1x 4.3% 4.9% 3.1% 1.6% 0.2% 28.6% 28.6% 29.9% 30.2% 30.1% Citrix Systems 3.7x 3.8x 3.4x 3.9x 3.9x 16.3x 17.1x 13.2x 13.9x 13.8x 4.0% 4.2% 4.2% 6.0% 6.9% 22.6% 22.1% 25.9% 27.9% 28.5% CommVault Systems 2.2x 2.4x 2.2x 2.6x 3.1x 46.1x 104.4x 154.7x 121.7x 115.4x -1.7% -4.9% -4.5% -2.0% 2.4% 4.7% 2.3% 1.4% 2.2% 2.7% Computer Programs and Sys 2.5x 2.5x 3.3x 3.3x 2.2x 11.1x 13.1x 18.2x 19.3x 14.7x -5.1% -12.2% -11.0% 3.4% 17.6% 22.5% 19.1% 18.3% 17.2% 15.2% Constellation 5.3x 5.2x 4.5x 4.5x 4.5x 31.0x 29.3x 19.3x 19.4x 19.3x 17.6% 12.5% 10.1% 12.1% 15.2% 17.2% 17.7% 23.2% 23.2% 23.5% CSG Systems International 1.5x 1.6x 1.7x 2.0x 2.0x 9.2x 9.3x 8.7x 9.7x 9.2x -0.8% -0.4% 0.2% 0.6% 1.8% 16.3% 17.5% 19.4% 20.8% 21.6% Cyberark Software 11.7x 8.1x 6.5x 6.7x 8.2x 48.8x 35.9x 29.7x 33.3x 40.3x 76.5% 67.9% 56.1% 47.5% 41.4% 24.0% 22.7% 21.8% 20.1% 20.3% Cyren 2.2x 2.2x 1.7x 2.2x 2.7x ------10.2% -11.9% -13.0% -8.6% -1.0% -7.3% -10.4% -5.9% -5.5% -6.3% Dassault Systèmes 6.0x 6.2x 5.8x 5.6x 6.0x 23.2x 23.4x 21.4x 20.4x 23.3x 22.9% 24.2% 23.8% 17.8% 12.1% 25.8% 26.5% 27.2% 27.3% 26.0% DST Systems 2.0x 2.2x 1.5x 1.6x 1.6x 11.3x 13.3x 10.2x 11.5x 11.2x -21.5% -21.4% 2.8% 17.7% 36.7% 17.8% 16.7% 14.3% 14.0% 14.4% Electronic Arts 4.4x 4.5x 4.0x 4.5x 4.9x 15.3x 17.2x 18.2x 18.2x 19.3x 17.3% 4.7% -4.0% -2.6% -0.9% 28.5% 26.3% 22.0% 24.5% 25.2% EPIQ Systems 2.0x 1.9x 1.7x 1.8x 1.9x 15.1x 14.6x 11.0x 11.8x 11.5x -2.5% 4.7% 13.9% 21.6% 17.5% 13.2% 12.9% 15.5% 14.9% 16.5% Evertec 5.7x 5.2x 4.5x 4.5x 4.9x 13.6x 12.5x 11.3x 11.5x 13.0x 2.1% 2.8% 3.2% 3.2% 3.8% 41.8% 41.5% 39.7% 39.1% 38.1% Evolving Systems 2.3x 2.4x 2.4x 2.6x 2.0x 8.4x 10.2x 11.5x 11.8x 7.9x 2.7% -8.9% -13.8% -14.7% -8.9% 27.2% 23.9% 21.2% 22.1% 25.6%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 F5 Networks 4.2x 3.4x 3.0x 3.3x 3.7x 13.1x 11.1x 9.8x 10.9x 12.5x 13.3% 10.8% 8.8% 6.4% 4.6% 31.6% 31.0% 30.5% 29.9% 29.7% Fair Isaac 4.1x 4.0x 4.2x 4.6x 5.0x 18.2x 17.8x 18.1x 19.8x 20.7x 9.2% 6.3% 6.9% 4.0% 6.1% 22.3% 22.6% 23.0% 23.3% 24.2% FalconStor Software 1.1x 1.4x 1.2x 1.4x 1.2x 224.4x 26527.6x 159.3x - - -0.4% 3.8% 5.0% -33.5% -34.1% 0.5% 0.0% 0.7% -29.1% -32.0% Fidessa 2.4x 2.3x 2.5x 2.7x 2.8x 13.3x 13.4x 14.5x 16.0x 16.6x 2.5% 5.0% 7.4% 8.0% 8.5% 17.7% 17.5% 17.0% 17.0% 17.0% First Data Corp - 5.0x 4.4x 4.3x 4.3x - 14.9x 14.4x 14.1x 14.2x 3.4% 3.5% 2.9% 2.7% 2.6% 33.0% 33.7% 30.6% 30.2% 30.3% Fiserv 4.7x 4.9x 4.9x 5.1x 5.0x 15.3x 15.9x 15.9x 16.6x 16.2x 4.1% 3.8% 3.7% 4.0% 4.3% 30.5% 30.8% 30.5% 30.8% 31.1% Fortinet 7.7x 5.4x 3.9x 4.3x 4.4x 102.4x 85.6x 70.8x 83.0x 95.2x 27.0% 29.4% 31.0% 32.7% 32.5% 7.5% 6.3% 5.5% 5.2% 4.7% Gigamon 3.3x 3.3x 2.9x 3.6x 5.1x 54.5x 42.6x 38.0x 41.4x 50.1x 38.4% 41.3% 41.3% 40.7% 40.9% 6.1% 7.7% 7.7% 8.7% 10.2% Glu Mobile 1.6x 1.0x 0.8x 0.7x 0.6x 34.2x 18.2x 31.9x - - 85.3% 41.4% 12.0% -5.3% -13.7% 4.7% 5.3% 2.5% -2.4% -4.8% Gree 0.8x 0.7x 0.7x 0.9x 0.6x 3.0x 2.7x 2.8x 3.6x 2.7x -26.4% -25.4% -25.0% -23.4% -24.4% 27.3% 26.3% 24.8% 26.3% 22.8% Gridsum Holding Inc. - - - - 12.0x ------88.6% 83.2% 79.2% -18.2% -15.7% -13.9% -11.4% -9.4% GSE Systems 0.3x 0.3x 0.5x 0.5x 0.6x - - 25.8x 20.0x 11.6x 17.2% 49.2% 51.3% 30.2% 13.1% -5.3% -1.6% 1.8% 2.7% 5.5% Guidance Software 2.2x 1.5x 1.2x 1.4x 1.6x ------0.2% -0.7% -1.5% -0.4% -0.8% -3.4% -4.3% -7.2% -8.9% -11.2% Guidewire Software 8.8x 9.5x 8.2x 8.7x 9.2x 147.5x 209.7x 151.4x 156.0x 157.5x 8.6% 5.4% 7.1% 9.8% 11.5% 5.9% 4.5% 5.4% 5.5% 5.8% Hewlett Packard 0.9x 0.3x 0.2x 0.2x 0.3x 6.1x 2.8x 2.2x 2.4x 2.8x -39.7% -7.3% 4.7% 21.2% 47.8% 14.4% 11.8% 10.9% 10.1% 9.4% IBM 2.1x 2.0x 2.0x 2.2x 2.3x 8.1x 7.7x 7.9x 9.2x 10.4x -10.4% -12.8% -11.9% -10.3% -7.7% 25.7% 25.6% 24.6% 23.5% 22.4% Imperva 9.4x 8.8x 5.4x 4.3x 4.9x - - - - - 30.1% 37.1% 42.9% 40.7% 31.9% -29.3% -22.5% -18.5% -19.1% -21.1% Intuit 6.4x 6.0x 5.8x 5.9x 6.0x 24.8x 22.2x 19.8x 19.2x 19.4x -1.2% 1.4% 6.4% 17.5% 12.0% 25.9% 27.2% 29.1% 30.5% 31.1% Jack Henry & Associates 4.4x 4.8x 5.0x 5.0x 5.1x 12.9x 13.7x 14.1x 14.4x 14.7x 7.1% 6.6% 6.4% 6.8% 7.8% 34.2% 35.1% 35.0% 34.8% 34.8% Juniper Networks 2.2x 2.5x 2.0x 1.8x 1.8x 11.4x 11.7x 9.0x 8.1x 8.2x -7.0% -3.3% 5.0% 8.0% 8.2% 19.6% 21.1% 22.2% 22.4% 21.8% Konami 1.4x 1.5x 1.4x 1.8x 1.8x 9.6x 9.8x 7.4x 8.3x 8.1x 0.1% 4.0% 11.0% 14.6% 12.4% 14.8% 15.6% 18.6% 21.5% 22.5% Magic Software Enterprises 1.2x 1.0x 1.2x 1.3x 1.4x 6.7x 5.9x 6.5x 7.3x 8.2x 4.5% 4.7% 7.1% 10.2% 11.9% 17.9% 17.2% 18.0% 17.4% 17.1% Manhattan Associates 8.4x 9.4x 7.1x 7.7x 7.1x 29.8x 32.5x 23.5x 25.0x 22.2x 17.1% 16.2% 13.1% 11.8% 11.3% 28.4% 29.0% 30.4% 30.7% 31.8% Mentor Graphics 2.3x 2.3x 1.7x 1.9x 2.2x 10.1x 10.3x 9.2x 11.6x 15.8x 8.1% 6.4% -5.1% -10.1% -13.6% 22.9% 22.4% 18.9% 16.3% 13.6% Microsoft 3.2x 4.1x 4.0x 4.0x 4.5x 8.8x 11.4x 11.7x 11.9x 14.3x 7.8% -0.8% -5.7% -8.3% -8.8% 35.9% 35.7% 34.6% 33.5% 31.8% MicroStrategy 3.3x 2.9x 2.7x 3.0x 2.7x 16.0x 11.1x 9.5x 11.0x 10.7x -5.2% -10.3% -8.6% -7.2% -7.5% 20.8% 26.2% 28.0% 27.4% 25.0% MIND C.T.I. 1.5x 1.5x 1.4x 1.3x 1.4x 4.5x 4.5x 4.3x 4.2x 4.9x 10.7% -4.1% -16.4% -20.9% -20.9% 34.2% 34.1% 31.5% 31.1% 28.6% MobileIron 1.8x 1.5x 1.3x 1.2x 1.1x - - - - - 23.3% 17.3% 12.9% 11.8% 12.1% -52.2% -56.3% -46.2% -43.9% -41.3% Model N 2.0x 2.0x 2.1x 2.3x 2.2x ------0.6% 14.7% 16.8% 18.0% 17.1% -16.9% -16.1% -18.5% -22.2% -24.4% Momo 22.1x 14.9x 11.1x 11.2x 10.3x - 354.6x 120.9x 137.3x 83.8x 416.7% 296.5% 199.4% 141.6% 158.0% -9.7% 4.2% 9.2% 8.2% 12.3% Monotype Imaging Holdings 4.5x 4.7x 4.3x 4.2x 3.6x 16.3x 17.8x 15.5x 15.7x 13.6x 6.5% 3.9% 4.3% 6.4% 6.8% 27.5% 26.5% 27.5% 26.7% 26.7% MSCI 7.0x 7.3x 7.1x 7.7x 8.3x 16.8x 16.8x 15.9x 16.5x 17.3x 8.0% 7.2% 7.9% 7.0% 7.2% 41.7% 43.6% 44.8% 46.5% 48.1% Myriad Group AG 13.8x 9.0x 10.9x 13.2x 16.8x ------17.3% -24.4% -32.1% -41.3% -51.6% -3.4% -27.2% -55.1% -88.7% -141.3% NetApp 0.9x 1.0x 0.6x 0.7x 0.9x 7.1x 7.9x 5.3x 6.2x 7.1x -5.2% -6.7% -8.4% -9.4% -7.8% 13.3% 12.5% 12.1% 11.4% 13.1% Netscout Systems 7.9x 5.4x 2.5x 2.3x 2.3x 33.3x 41.4x 23.8x 30.8x 30.6x 5.6% 39.1% 76.6% 110.6% 151.6% 23.8% 13.0% 10.5% 7.3% 7.6% NetSol Technologies 1.5x 1.4x 1.6x 1.5x 1.3x 9.0x 7.0x 6.3x 6.1x 6.9x 41.3% 51.2% 49.7% 35.4% 22.8% 16.9% 19.3% 24.9% 24.2% 19.3% NeuStar 1.9x 1.7x 2.1x 2.1x 2.1x 5.0x 4.4x 5.6x 5.8x 5.6x 7.7% 7.7% 9.0% 10.2% 12.2% 39.1% 39.8% 38.1% 36.5% 36.3%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 NICE Systems Ltd 3.4x 3.0x 3.5x 3.7x 3.8x 17.1x 14.5x 14.4x 14.9x 15.9x 7.4% 6.5% 6.3% -9.0% -8.7% 19.7% 20.8% 24.1% 24.7% 24.1% NQ Mobile 0.9x 1.0x 0.9x 1.1x 1.1x - - - - 103.8x 27.7% 18.8% 22.4% 14.4% 2.9% -9.7% -4.0% -2.9% -0.5% 1.0% Nuance Communications, Inc. 3.6x 3.7x 3.8x 3.4x 3.1x 30.3x 29.0x 24.7x 21.8x 18.9x 1.9% 0.4% 0.8% 1.0% 0.9% 11.9% 12.8% 15.3% 15.7% 16.3% Omnicell 2.6x 2.1x 1.9x 2.4x 2.6x 18.5x 14.9x 13.9x 20.2x 21.9x 13.9% 11.9% 9.9% 18.4% 29.4% 14.0% 13.9% 13.4% 12.0% 11.7% Open Text Corp 3.5x 3.6x 3.7x 4.1x 4.6x 12.3x 13.0x 12.8x 13.5x 14.8x 14.0% 4.5% -1.5% -2.1% -1.5% 28.1% 27.8% 28.8% 30.5% 31.3% Opera 1.7x 1.6x 1.9x 1.9x 1.7x 9.5x 9.9x 13.5x 14.4x 14.6x 60.6% 38.7% 28.1% 25.4% 18.2% 18.1% 16.1% 14.3% 13.5% 11.7% Oracle 4.1x 4.0x 3.9x 4.2x 4.2x 10.0x 9.8x 9.6x 10.5x 10.8x -1.1% -3.5% -4.3% -3.1% -2.3% 41.5% 40.7% 40.2% 39.8% 39.3% Palo Alto Networks 15.6x 13.9x 11.0x 9.5x 8.3x - - - - - 55.1% 56.0% 55.6% 53.4% 48.5% -11.3% -10.5% -10.6% -11.1% -10.7% Pandora Media 3.3x 2.3x 1.7x 1.8x 2.4x - - - - - 28.0% 26.0% 26.4% 28.6% 25.8% -3.7% -3.4% -5.8% -9.1% -12.3% Parametric Technology 3.4x 3.5x 3.3x 3.9x 4.5x 17.1x 17.3x 16.9x 23.1x 31.6x -1.9% -7.5% -10.1% -12.2% -11.0% 20.0% 20.2% 19.3% 16.8% 14.3% PDF Solutions 2.8x 2.2x 2.0x 3.0x 4.0x 10.4x 7.9x 8.6x 16.8x 22.2x -5.5% -1.2% -2.2% -3.7% 1.2% 26.6% 27.3% 23.9% 18.2% 18.0% Pegasystems 2.7x 3.0x 2.4x 2.5x 2.6x 21.9x 23.5x 18.6x 19.7x 20.2x 11.4% 12.7% 15.7% 17.3% 18.0% 12.1% 12.6% 12.9% 12.9% 12.8% Progress Software 3.9x 3.0x 3.0x 3.0x 3.3x 19.2x 15.5x 13.5x 12.3x 12.7x 11.4% 13.5% 13.6% 13.1% 10.4% 20.1% 19.2% 22.2% 24.4% 25.6% Proofpoint 10.8x 10.6x 7.7x 8.0x 9.9x - - - - - 38.5% 36.8% 35.7% 36.1% 37.4% -17.8% -18.8% -20.9% -21.4% -19.1% PROS Holdings 3.2x 3.6x 1.8x 2.0x 3.4x - - - - - 15.5% 5.4% -9.5% -13.8% -15.1% -9.6% -16.6% -25.1% -29.8% -33.9% QAD 1.2x 1.2x 0.9x 0.9x 0.9x 16.4x 18.5x 16.4x 20.8x 28.0x 4.8% -0.3% -5.8% -7.4% -7.4% 7.3% 6.6% 5.3% 4.1% 3.2% Qihoo 360 Technology 4.9x 4.9x 5.3x 5.3x 5.2x 18.0x 19.7x 25.2x 25.0x 24.7x 64.2% 47.7% 29.8% 29.8% 29.8% 27.0% 25.1% 21.1% 21.1% 21.1% Qiwi 4.5x 3.2x 2.1x 2.1x 2.0x 14.1x 10.8x 7.0x 7.3x 6.6x 24.1% 22.8% 20.4% 16.0% 12.3% 32.1% 29.9% 30.2% 29.3% 29.9% Quality Systems 1.4x 1.6x 1.6x 1.6x 1.6x 13.0x 13.9x 14.1x 13.7x 14.2x 9.2% 8.0% 3.3% 0.5% -0.4% 10.5% 11.5% 11.6% 11.6% 11.5% Radware 3.5x 2.7x 1.9x 1.6x 1.8x 16.9x 15.0x 13.1x 17.1x 37.2x 12.7% 4.0% -2.4% -8.9% -12.9% 20.4% 18.0% 14.2% 9.3% 4.9% Rapid7 11.3x 7.3x 4.1x 3.6x 4.5x ------43.8% 45.4% 45.4% -26.4% -27.5% -35.6% -39.3% -39.4% Red Hat 7.2x 7.2x 6.1x 6.1x 5.7x 37.8x 38.5x 33.8x 35.0x 33.1x 14.3% 14.3% 14.7% 15.8% 17.3% 19.0% 18.6% 17.9% 17.5% 17.1% Redknee Solutions 1.2x 1.1x 0.9x 0.9x 1.0x 11.3x 9.8x 9.7x 25.6x 609.8x -11.9% -13.6% -19.1% -18.6% -15.1% 10.9% 11.4% 9.3% 3.5% 0.2% Sage Group 4.1x 4.5x 4.5x 4.7x 5.0x 15.3x 16.4x 16.7x 17.6x 18.9x 9.0% 6.1% 4.8% 3.6% 3.6% 26.7% 27.1% 26.9% 26.7% 26.7% SAP 4.2x 4.5x 4.4x 4.1x 4.6x 13.5x 14.5x 16.0x 14.8x 16.4x 12.8% 15.7% 18.4% 14.5% 11.0% 31.1% 31.0% 27.5% 27.7% 28.2% Sapiens International 3.0x 2.7x 2.6x 2.7x 2.8x 21.7x 18.1x 16.6x 17.6x 18.7x 14.1% 17.7% 17.9% 18.2% 19.0% 13.8% 14.9% 15.4% 15.2% 14.9% SecureWorks - - - 3.0x 2.6x ------29.5% 29.8% 30.6% -15.4% -17.8% -17.8% -15.8% -10.9% Silver Spring Networks 1.5x 1.6x 1.0x 1.4x 1.3x - 20.2x 5.1x 12.0x 6.6x 27.7% 74.2% 155.9% 35.7% 34.7% -2.4% 7.9% 20.1% 11.5% 20.0% Software AG 2.4x 2.3x 2.7x 2.8x 3.1x 8.9x 8.1x 9.1x 9.1x 9.8x -6.8% -2.2% 1.8% 5.0% 3.6% 26.9% 28.6% 29.8% 30.9% 31.3% Sourcefire 0.9x 1.2x 1.2x 1.2x 1.2x 8.4x 7.9x 7.9x 7.9x 9.1x 5.6% 27.2% 33.9% 37.6% 31.2% 10.9% 15.5% 15.7% 14.7% 12.8% Splunk 14.3x 10.9x 7.6x 8.0x 8.7x - - - - - 46.8% 47.7% 48.3% 48.5% 47.6% -41.9% -41.5% -39.9% -39.9% -38.7% Square - 3.9x 2.9x 2.0x 2.3x ------49.0% 52.6% 46.7% -8.2% -8.0% -7.5% -7.2% -6.0% SS&C 8.0x 10.2x 8.4x 7.6x 7.0x 20.9x 31.2x 25.6x 23.3x 21.9x 10.2% 20.1% 30.3% 42.0% 57.5% 38.2% 32.7% 32.9% 32.7% 31.7% Stratasys 1.6x 1.4x 1.1x 1.3x 1.3x 25.7x 35.9x - 277.0x 35.5x 27.2% 7.5% -7.2% -10.5% -12.2% 6.2% 4.0% -1.6% 0.5% 3.7% Symantec 4.1x 1.9x 1.9x 2.5x 3.1x 32.0x 6.5x 6.0x 10.0x 12.0x -53.3% 15.2% 32.0% -9.0% 14.0% 13.0% 29.7% 31.5% 24.8% 26.1% Synchronoss Technologies 3.8x 3.0x 2.4x 2.9x 3.3x 13.6x 10.4x 8.8x 11.9x 15.1x 35.3% 30.1% 26.6% 19.7% 15.6% 28.0% 28.5% 27.2% 24.5% 21.8% Synopsys 3.2x 2.9x 2.7x 3.0x 3.3x 16.7x 16.0x 15.3x 17.0x 18.6x 8.4% 9.0% 7.0% 7.2% 8.3% 18.8% 18.4% 17.7% 17.6% 17.6%

SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 Take-Two Interactive 1.5x 1.6x 1.7x 1.7x 2.0x - - - 26.6x 23.7x -47.2% -37.1% 36.7% 30.5% 17.6% -21.3% -10.0% -15.8% 6.3% 8.4% Talend - - - - 8.2x - - - - - 17.9% 17.9% 21.4% - n/a -34.9% -34.9% -26.7% -24.6% -26.7% Tangoe 1.3x 1.3x 1.3x 1.3x 1.4x 19.2x 30.5x 29.0x 29.0x 30.9x 8.3% 5.7% 5.7% 5.7% 5.7% 6.7% 4.4% 4.4% 4.4% 4.4% TeleNav 1.0x 1.0x 0.7x 0.6x 0.7x - - - - - 6.6% 20.1% 21.7% 18.1% 14.4% -20.0% -19.3% -18.3% -18.4% -14.9% Teradata 1.5x 1.4x 1.3x 1.3x 1.5x 8.2x 8.3x 8.6x 8.6x 9.6x -3.9% -6.1% -7.4% -7.2% -6.2% 18.5% 17.2% 14.9% 15.2% 15.3% The Descartes Systems Group 6.5x 7.7x 6.9x 7.5x 7.7x 21.4x 24.5x 21.6x 23.0x 23.6x 8.8% 8.6% 8.3% 8.6% 10.1% 30.6% 31.3% 32.0% 32.5% 32.7% Trend Micro 3.9x 4.2x 3.9x 3.4x 3.0x 11.3x 12.4x 12.3x 10.8x 9.8x 8.8% 9.3% 7.9% 5.7% 3.3% 34.3% 33.9% 31.6% 31.9% 31.1% Tyler Technologies 8.4x 10.0x 7.9x 8.5x 9.0x 37.4x 44.4x 36.3x 40.5x 44.2x 18.2% 17.5% 19.9% 23.3% 26.2% 22.5% 22.6% 21.8% 21.0% 20.4% Ubisoft Entertainment 1.3x 2.5x 2.3x 2.4x 2.7x 35.9x - 10.6x 17.9x 20.6x 20.2% -0.9% -3.0% -4.8% -4.8% 3.5% -7.7% 21.7% 13.3% 13.3% Varonis Systems 3.7x 2.7x 2.8x 3.5x 4.3x - - - - - 29.1% 25.5% 25.5% 26.0% 29.4% -19.3% -17.8% -13.7% -12.3% -10.7% VASCO Data Security International 2.4x 2.2x 1.8x 2.4x 2.7x 9.6x 9.7x 8.0x 13.3x 20.7x 45.4% 38.7% 19.8% -2.1% -13.7% 24.5% 22.4% 22.6% 18.2% 12.9% Verint Systems Inc 3.3x 2.8x 2.3x 2.2x 2.4x 23.4x 19.7x 18.7x 20.3x 22.0x 14.3% 8.3% 0.2% -3.0% -7.5% 14.3% 14.0% 12.3% 10.9% 10.9% Verisk 9.0x 8.7x 7.4x 7.4x 7.2x 18.7x 17.7x 16.3x 16.2x 15.8x 3.9% 7.6% 18.4% 26.4% 30.1% 48.1% 49.3% 45.7% 45.6% 45.3% VMWare 4.7x 3.0x 2.3x 2.7x 3.5x 19.1x 11.9x 8.5x 10.2x 12.9x 13.2% 11.5% 10.1% 8.7% 7.8% 24.4% 24.9% 26.7% 26.1% 26.9% Zynga 1.8x 1.7x 1.2x 1.8x 2.1x - - - - - 7.5% 14.4% 10.8% 8.9% -0.3% -13.6% -8.6% -6.4% -4.7% -2.7%

Billing & Service Management 3Q15 4Q15 1Q16 2Q16 3Q16 Enterprise Resource Planning 3Q15 4Q15 1Q16 2Q16 3Q16 IT Conglomerates 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 1.9x 1.7x 2.0x 2.0x 1.9x EV/TTM Revenue 4.1x 4.0x 3.9x 4.1x 3.8x EV/TTM Revenue 3.2x 4.0x 3.9x 4.0x 3.5x EV/NTM Revenue 1.8x 1.8x 2.0x 1.9x 1.9x EV/NTM Revenue 3.5x 3.8x 4.1x 3.8x 3.9x EV/NTM Revenue 3.1x 3.8x 4.0x 3.6x 3.9x EV/TTM EBITDA 9.2x 9.8x 8.8x 10.9x 9.7x EV/TTM EBITDA 15.1x 15.1x 16.0x 14.8x 15.5x EV/TTM EBITDA 8.8x 9.8x 9.6x 10.5x 10.8x EV/TTM CFO 9.8x 9.5x 9.6x 10.0x 9.8x EV/TTM CFO 14.3x 15.7x 14.9x 11.7x 21.3x EV/TTM CFO 10.4x 11.5x 10.2x 11.1x 11.6x Gross Profit Margin 59.7% 59.3% 58.8% 57.2% 55.6% Gross Profit Margin 59.6% 58.9% 58.6% 58.5% 58.4% Gross Profit Margin 59.6% 58.9% 58.6% 58.5% 58.4% EBITDA Margin 27.2% 23.9% 21.2% 22.1% 21.8% EBITDA Margin 26.7% 27.1% 26.9% 26.7% 26.7% EBITDA Margin 31.1% 31.0% 27.5% 27.7% 28.2% Net Income Margin 12.6% 12.2% 11.4% 11.1% 10.9% Net Income Margin 13.5% 13.5% 12.8% 12.0% 12.0% Net Income Margin 13.0% 15.5% 14.7% 15.3% 16.8% TTM Revenue Growth (YoY) 3.1% -0.4% 0.2% 0.6% 1.8% TTM Revenue Growth (YoY) 4.8% 6.1% 4.8% 3.6% 3.6% TTM Revenue Growth (YoY) -1.1% -3.5% -4.3% -3.1% -2.3% TTM EBITDA Growth (YoY) 6.5% 11.2% 5.4% -2.2% -9.8% TTM EBITDA Growth (YoY) -0.6% -2.7% -4.4% -0.4% -6.4% TTM EBITDA Growth (YoY) -5.4% -7.2% -8.4% -12.9% -7.6% TTM Earnings Growth (YoY) 21.2% 20.4% -1.7% -10.4% -15.9% TTM Earnings Growth (YoY) -8.8% 3.4% -6.6% -10.4% -5.4% TTM Earnings Growth (YoY) -13.2% -9.2% -18.3% -10.4% 5.8% Cash as Percent of Market Cap 19.7% 13.5% 14.1% 13.4% 12.9% Cash as Percent of Market Cap 15.2% 22.4% 24.6% 22.5% 22.8% Cash as Percent of Market Cap 26.3% 11.3% 19.6% 21.5% 23.1% Enterprise Value Growth (YoY) 4.1% -10.2% -25.2% -20.1% 2.3% Enterprise Value Growth (YoY) 3.8% 17.8% -0.3% -3.7% 12.9% Enterprise Value Growth (YoY) -6.9% -8.0% -15.5% -11.0% 2.1%

Business Intelligence 3Q15 4Q15 1Q16 2Q16 3Q16 Financial & Accounting 3Q15 4Q15 1Q16 2Q16 3Q16 Mobile Solutions/Content 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 3.5x 3.0x 2.8x 3.0x 3.5x EV/TTM Revenue 4.1x 3.9x 3.3x 3.0x 3.8x EV/TTM Revenue 1.8x 1.6x 1.5x 1.8x 1.8x EV/NTM Revenue 3.0x 2.8x 2.8x 2.9x 3.5x EV/NTM Revenue 3.5x 4.0x 3.6x 3.3x 3.5x EV/NTM Revenue 1.2x 1.4x 1.5x 1.6x 1.6x EV/TTM EBITDA 18.2x 15.5x 13.5x 12.3x 14.4x EV/TTM EBITDA 15.3x 15.9x 15.9x 16.6x 15.6x EV/TTM EBITDA 15.8x 18.2x 25.2x 19.7x 20.8x EV/TTM CFO 21.3x 25.3x 19.6x 23.3x 20.1x EV/TTM CFO 18.6x 19.9x 19.0x 21.7x 16.8x EV/TTM CFO 18.6x 31.5x 17.4x 15.1x 16.3x Gross Profit Margin 74.9% 75.4% 75.7% 75.9% 75.8% Gross Profit Margin 56.1% 55.7% 54.8% 54.6% 53.6% Gross Profit Margin 60.3% 58.1% 56.4% 55.5% 54.8% EBITDA Margin 18.5% 17.2% 14.9% 15.2% 15.3% EBITDA Margin 22.3% 22.6% 24.9% 24.2% 24.2% EBITDA Margin -3.5% 0.4% -0.2% -1.5% -0.8% Net Income Margin 4.2% -1.8% -1.2% -0.8% 2.1% Net Income Margin 8.7% 9.7% 10.8% 11.3% 12.0% Net Income Margin -10.6% -12.9% -5.6% -6.8% -8.7% TTM Revenue Growth (YoY) 10.3% 7.0% 13.6% 13.1% 10.4% TTM Revenue Growth (YoY) 5.4% 4.7% 4.8% 4.1% 6.1% TTM Revenue Growth (YoY) 25.5% 19.4% 17.3% 13.1% 13.3% TTM EBITDA Growth (YoY) -7.2% -4.6% 5.6% 19.4% 15.3% TTM EBITDA Growth (YoY) 2.7% 2.9% -1.8% -0.4% -5.6% TTM EBITDA Growth (YoY) -7.6% -9.6% -4.6% -7.7% -11.7% TTM Earnings Growth (YoY) 4.3% 21.3% 26.4% 33.9% 29.8% TTM Earnings Growth (YoY) 2.5% -2.7% -2.4% 6.7% 24.2% TTM Earnings Growth (YoY) 37.4% 51.0% 21.1% -3.9% -28.5% Cash as Percent of Market Cap 16.2% 20.8% 19.3% 17.9% 15.0% Cash as Percent of Market Cap 4.8% 3.5% 3.5% 3.3% 3.8% Cash as Percent of Market Cap 21.4% 25.4% 27.6% 25.0% 14.9% Enterprise Value Growth (YoY) 25.9% 6.5% -1.8% -1.8% 1.3% Enterprise Value Growth (YoY) 20.5% 16.9% 4.3% 0.3% 7.4% Enterprise Value Growth (YoY) -30.0% -23.6% -30.5% -31.4% -7.3%

Development Platforms 3Q15 4Q15 1Q16 2Q16 3Q16 Gaming 3Q15 4Q15 1Q16 2Q16 3Q16 Networking & Network Perf Mgmt 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 2.4x 2.3x 2.7x 2.8x 2.3x EV/TTM Revenue 1.5x 2.5x 2.3x 2.4x 1.3x EV/TTM Revenue 2.2x 2.5x 1.9x 1.8x 2.1x EV/NTM Revenue 2.5x 2.5x 2.8x 2.6x 3.0x EV/NTM Revenue 1.3x 2.0x 2.0x 2.1x 2.2x EV/NTM Revenue 2.0x 2.1x 1.9x 1.7x 2.3x EV/TTM EBITDA 8.9x 8.4x 9.1x 9.1x 12.8x EV/TTM EBITDA 14.7x 16.4x 14.3x 18.2x 13.3x EV/TTM EBITDA 13.1x 11.7x 9.8x 10.9x 13.3x EV/TTM CFO 11.6x 13.0x 12.8x 15.6x 14.5x EV/TTM CFO 6.3x 8.1x 8.4x 9.7x 12.3x EV/TTM CFO 11.7x 10.2x 10.3x 10.4x 14.4x Gross Profit Margin 74.9% 75.4% 75.7% 75.9% 75.8% Gross Profit Margin 65.7% 65.7% 66.0% 65.6% 63.4% Gross Profit Margin 75.1% 75.5% 75.5% 75.5% 75.4% EBITDA Margin 19.0% 18.6% 18.0% 17.5% 17.1% EBITDA Margin 14.8% 15.6% 21.7% 21.5% 22.5% EBITDA Margin 19.6% 18.0% 14.2% 9.3% 10.2% Net Income Margin 9.4% 9.1% 9.2% 8.7% 8.4% Net Income Margin 5.8% 6.1% 3.6% 6.7% 6.7% Net Income Margin 3.2% 2.8% 8.6% 4.5% 10.2% TTM Revenue Growth (YoY) 10.6% 11.5% 11.1% 10.2% 10.4% TTM Revenue Growth (YoY) 8.4% 4.0% 5.8% 5.8% 12.4% TTM Revenue Growth (YoY) 4.3% 4.9% 5.0% 6.4% 4.6% TTM EBITDA Growth (YoY) -3.0% 4.5% 19.7% 20.2% 6.9% TTM EBITDA Growth (YoY) 10.8% 24.6% 1.2% 11.8% 102.7% TTM EBITDA Growth (YoY) 8.5% 7.0% 10.5% 9.3% 5.4% TTM Earnings Growth (YoY) -2.2% 14.1% 18.5% 8.0% 0.4% TTM Earnings Growth (YoY) 201.3% 111.3% 1.9% 6.8% 0.7% TTM Earnings Growth (YoY) 39.3% 21.0% 14.7% -2.3% -17.0% Cash as Percent of Market Cap 17.0% 21.0% 20.2% 18.0% 16.9% Cash as Percent of Market Cap 22.3% 13.2% 14.6% 12.0% 14.2% Cash as Percent of Market Cap 21.3% 24.6% 29.7% 27.9% 26.4% Enterprise Value Growth (YoY) 30.6% 7.9% 8.9% -0.8% -4.0% Enterprise Value Growth (YoY) 17.3% 65.8% 22.5% 68.2% 70.4% Enterprise Value Growth (YoY) 4.2% -14.7% -26.1% -21.1% -6.7%

Engineering & PLM 3Q15 4Q15 1Q16 2Q16 3Q16 Healthcare 3Q15 4Q15 1Q16 2Q16 3Q16 Security 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 3.4x 3.5x 3.3x 3.9x 3.2x EV/TTM Revenue 2.5x 2.4x 2.1x 2.4x 2.1x EV/TTM Revenue 4.2x 3.5x 3.2x 3.0x 3.7x EV/NTM Revenue 3.2x 3.5x 3.6x 3.9x 4.4x EV/NTM Revenue 1.9x 2.2x 1.8x 1.8x 1.9x EV/NTM Revenue 3.5x 3.8x 3.1x 2.5x 3.3x EV/TTM EBITDA 17.1x 16.9x 15.6x 17.0x 16.8x EV/TTM EBITDA 18.5x 14.9x 15.4x 19.3x 17.1x EV/TTM EBITDA 15.8x 12.4x 12.3x 13.3x 15.3x EV/TTM CFO 15.9x 17.2x 17.1x 19.1x 20.6x EV/TTM CFO 20.5x 18.6x 19.6x 19.2x 18.2x EV/TTM CFO 20.2x 18.3x 15.0x 14.3x 22.0x Gross Profit Margin 84.1% 84.1% 84.6% 84.3% 83.8% Gross Profit Margin 50.4% 49.3% 49.5% 51.8% 51.6% Gross Profit Margin 74.2% 73.9% 73.5% 74.2% 74.5% EBITDA Margin 22.9% 22.4% 19.3% 17.6% 17.6% EBITDA Margin 12.3% 12.7% 12.5% 14.6% 13.5% EBITDA Margin 1.6% 1.1% 2.6% 5.0% 4.7% Net Income Margin 11.9% 11.7% 9.7% 8.8% 8.6% Net Income Margin 6.3% 6.6% 6.5% 4.9% 2.8% Net Income Margin -12.0% -12.9% -1.4% 0.7% 0.6% TTM Revenue Growth (YoY) 8.4% 7.5% 0.7% 1.3% 2.1% TTM Revenue Growth (YoY) 4.6% 3.8% 2.0% 10.9% 18.9% TTM Revenue Growth (YoY) 8.8% 16.2% 29.5% 17.4% 21.2% TTM EBITDA Growth (YoY) 7.5% 11.7% 0.1% -2.0% 1.3% TTM EBITDA Growth (YoY) 5.1% -3.1% 2.8% 25.1% 12.7% TTM EBITDA Growth (YoY) -1.2% 1.1% 3.8% 3.6% 4.7% TTM Earnings Growth (YoY) 2.8% 3.1% -0.9% -0.6% 2.6% TTM Earnings Growth (YoY) 14.6% 17.1% 1.7% -42.5% -55.2% TTM Earnings Growth (YoY) 3.2% 5.0% 0.0% 1.7% 5.7% Cash as Percent of Market Cap 12.0% 13.9% 14.4% 13.3% 12.7% Cash as Percent of Market Cap 5.8% 4.4% 4.8% 3.7% 3.3% Cash as Percent of Market Cap 13.3% 15.3% 19.4% 17.4% 13.3% Enterprise Value Growth (YoY) 12.9% 7.4% -8.3% -3.6% 15.6% Enterprise Value Growth (YoY) -7.0% 0.6% -10.4% -1.9% 12.8% Enterprise Value Growth (YoY) 12.3% 35.1% -5.0% -19.1% -11.6%

Storage, Data Mgmt & Integration 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 2.2x 2.3x 2.1x 2.4x 2.1x EV/NTM Revenue 1.9x 2.3x 2.4x 2.4x 3.0x EV/TTM EBITDA 8.0x 8.4x 8.1x 7.1x 7.8x EV/TTM CFO 10.1x 9.7x 9.1x 12.2x 11.5x Gross Profit Margin 80.3% 80.1% 80.1% 76.5% 76.2% EBITDA Margin 4.7% 2.3% 1.4% 2.2% 2.7% Net Income Margin 2.0% -0.7% -0.4% 0.0% -0.1% TTM Revenue Growth (YoY) 1.5% 3.8% 3.1% -0.9% 0.9% TTM EBITDA Growth (YoY) -6.1% -10.8% -6.3% -23.6% -9.0% TTM Earnings Growth (YoY) 5.7% 9.1% 7.1% -7.4% -17.7% Cash as Percent of Market Cap 22.4% 24.7% 24.5% 19.6% 19.6% Enterprise Value Growth (YoY) 1.5% -9.0% -25.3% -5.9% 9.5%

Systems Management 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 4.7x 3.8x 2.9x 3.1x 3.4x EV/NTM Revenue 3.4x 2.8x 3.1x 3.2x 3.3x EV/TTM EBITDA 19.1x 17.1x 13.2x 13.9x 16.1x EV/TTM CFO 14.6x 12.9x 11.2x 12.2x 13.4x Gross Profit Margin 84.8% 84.9% 84.9% 84.9% 85.0% EBITDA Margin 23.8% 22.1% 25.9% 26.1% 26.9% Net Income Margin 12.9% 9.8% 9.7% 11.2% 11.6% TTM Revenue Growth (YoY) 5.6% 11.5% 10.1% 8.7% 7.8% TTM EBITDA Growth (YoY) 6.0% 5.6% 14.3% 13.6% 6.0% TTM Earnings Growth (YoY) 3.7% -4.0% 11.6% 10.2% 15.7% Cash as Percent of Market Cap 9.3% 9.6% 10.6% 14.2% 12.6% Enterprise Value Growth (YoY) 4.7% 11.7% 3.7% 1.5% -4.0%

Vertical - Finance 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 4.4x 4.8x 5.0x 5.0x 4.1x EV/NTM Revenue 4.1x 4.6x 5.0x 4.8x 4.7x EV/TTM EBITDA 13.3x 13.7x 14.5x 16.0x 13.6x EV/TTM CFO 15.6x 18.0x 17.4x 17.9x 15.4x Gross Profit Margin 42.7% 42.9% 43.0% 42.8% 42.9% EBITDA Margin 34.2% 32.7% 32.9% 32.7% 31.7% Net Income Margin 16.8% 10.5% 10.5% 10.6% 10.6% TTM Revenue Growth (YoY) 7.1% 6.6% 7.4% 7.6% 7.8% TTM EBITDA Growth (YoY) 5.0% 11.5% 13.1% 17.4% 9.7% TTM Earnings Growth (YoY) 9.2% -3.3% 1.3% 4.0% 7.1% Cash as Percent of Market Cap 7.7% 4.3% 4.4% 4.2% 5.0% Enterprise Value Growth (YoY) 28.9% 29.9% 13.5% 16.7% 25.2%

Vertical - Other 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 4.9x 5.1x 4.5x 4.5x 4.3x EV/NTM Revenue 4.3x 4.5x 4.3x 4.3x 4.4x EV/TTM EBITDA 30.5x 29.3x 19.3x 19.4x 19.7x EV/TTM CFO 28.1x 24.2x 25.6x 25.3x 27.5x Gross Profit Margin 47.3% 47.3% 46.9% 46.5% 49.2% EBITDA Margin 13.8% 14.9% 16.4% 15.2% 16.6% Net Income Margin 4.4% 5.1% 9.6% 6.7% 9.3% TTM Revenue Growth (YoY) 14.1% 12.5% 13.9% 18.2% 17.5% TTM EBITDA Growth (YoY) 13.9% 17.7% 38.6% 26.5% 28.2% TTM Earnings Growth (YoY) 37.7% 32.2% 10.1% 0.5% 21.5% Cash as Percent of Market Cap 5.2% 4.0% 4.2% 3.1% 2.9% Enterprise Value Growth (YoY) 58.2% 53.0% 32.3% 16.5% 13.2%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 1-800-FLOWERS.COM 0.6x 0.6x 0.5x 0.5x 0.6x 10.4x 9.5x 6.3x 6.6x 8.8x 51.4% 13.3% 8.0% 8.0% 4.6% 6.0% 6.8% 7.3% 7.3% 6.6% 58.com 14.7x 12.8x 10.8x 8.3x 6.8x - - - - - 99.7% 134.6% 169.8% 182.7% 150.1% -18.8% -33.0% -30.6% -23.9% -12.7% 8x8 3.3x 4.5x 4.2x 4.2x 5.0x 68.1x 135.0x 191.5x 287.5x 369.1x 25.6% 25.8% 26.4% 28.9% 28.5% 4.9% 3.4% 2.2% 1.5% 1.3% Akamai Technologies 6.1x 4.9x 4.2x 4.0x 4.0x 18.5x 15.0x 13.5x 12.9x 12.7x 19.3% 15.6% 11.9% 9.9% 8.0% 33.1% 32.4% 31.5% 31.2% 31.2% Alibaba 13.6x 14.9x 11.9x 12.2x 14.1x 40.2x 44.7x 35.0x 34.1x 39.1x 40.3% 35.7% 33.3% 32.7% 40.1% 33.7% 33.2% 34.1% 35.8% 36.1% Amazon.com 2.6x 3.1x 2.5x 2.9x 3.0x 43.0x 44.6x 34.0x 36.5x 35.3x 17.2% 18.0% 20.2% 23.3% 25.9% 6.0% 7.0% 7.4% 8.0% 8.5% Angie's List 0.9x 1.6x 1.4x 1.4x 1.5x 19.7x 27.4x 22.9x 30.1x 15.2x 17.0% 12.7% 9.2% 5.7% 1.7% 4.3% 5.7% 6.3% 4.8% 9.7% Baidu.com 5.6x 6.4x 5.3x 5.1x 5.1x 18.7x 24.8x 20.2x 20.1x 20.9x 42.5% 38.6% 35.3% 32.9% 25.1% 30.1% 26.0% 26.4% 25.6% 24.5% Bankrate 4.6x 5.7x 3.4x 2.4x 2.3x 12.4x 13.3x 11.7x 8.6x 9.8x -48.5% -50.7% 5.8% 23.7% 46.3% 37.1% 43.2% 29.1% 27.4% 23.1% Baozun 1.0x 0.7x 0.4x 0.4x 0.8x - 50.8x 34.5x 35.6x 41.5x - 68.2% 64.0% 55.6% 45.0% -1.8% 1.4% 1.2% 1.2% 2.0% Bitauto Holdings 1.9x 1.9x 1.2x 1.6x 2.1x 17.8x 51.3x 14.5x 16.2x 17.3x 89.3% 90.5% 63.1% 62.0% 45.3% 10.6% 3.8% 8.4% 9.7% 12.1% BlueNile 0.7x 0.8x 0.5x 0.6x 0.7x 20.8x 22.7x 13.0x 15.8x 18.8x 6.2% 5.5% 1.4% 0.1% -1.4% 3.4% 3.5% 3.6% 3.5% 3.6% Brightcove 1.2x 1.4x 1.2x 1.3x 2.6x - - 111.8x 84.2x 141.6x 6.9% 6.1% 7.8% 8.9% 10.6% -1.9% -0.8% 1.1% 1.5% 1.8% BroadSoft 3.7x 3.7x 3.2x 3.9x 4.0x 39.9x 49.1x 29.3x 35.3x 33.1x 25.8% 25.7% 28.6% 29.6% 30.3% 9.4% 7.6% 10.9% 10.9% 12.2% Carbonite 1.9x 1.6x 1.1x 1.3x 1.8x - - - - 191.5x 12.3% 11.7% 11.4% 19.9% 31.5% -1.4% -4.9% -5.7% -3.1% 1.0% Care.com 1.0x 1.0x 0.9x 1.3x 1.7x - - - - - 24.3% 25.3% 24.2% 21.4% 21.4% -9.0% -7.3% -2.4% -0.1% -0.1% ChangYou.com 1.1x 1.0x 0.9x 0.5x 0.7x 4.1x 2.8x 2.9x 1.7x 2.3x 9.7% 11.1% 0.8% -12.8% -24.5% 27.5% 36.0% 31.9% 32.0% 32.3% Chegg 1.9x 1.7x 1.1x 1.2x 2.1x 29.4x 22.3x 124.8x 107.6x - 14.5% 6.8% -1.1% -10.2% -15.3% 6.6% 7.6% 0.9% 1.1% -4.2% Cimpress 2.0x 2.2x 2.1x 2.2x 2.2x 14.7x 16.7x 16.0x 16.3x 16.9x 17.6% 15.6% 13.9% 16.4% 19.7% 13.6% 13.0% 13.1% 13.7% 12.9% Coupons.com 2.7x 1.8x 2.3x 3.2x 3.7x - - - - - 17.6% 6.3% 7.0% 9.7% 12.7% -6.8% -10.0% -9.4% -8.5% -6.4% Criteo SA 2.1x 1.8x 1.5x 1.6x 1.4x 25.4x 21.6x 17.3x 18.2x 14.7x 94.2% 64.2% 33.9% 27.9% 25.3% 8.2% 8.5% 8.6% 9.0% 9.2% Ctrip 7.2x 13.0x 11.9x 12.2x 10.7x - 643.3x 185.9x - - 41.4% 44.6% 48.3% 57.9% 64.8% -1.9% 2.0% 6.4% -7.2% -8.2% DemandMedia 0.4x 0.5x 0.5x 0.7x 0.5x ------22.5% -25.6% -26.9% -25.4% -22.3% -4.4% -11.7% -13.3% -18.7% -21.6% eBay 3.6x 4.2x 3.4x 3.3x 4.1x 11.3x 13.3x 9.8x 9.6x 11.8x -32.1% -21.9% -2.3% 26.5% 1.7% 31.8% 31.5% 34.3% 34.4% 35.0% eHealth 1.1x 0.9x 0.6x 0.9x 0.7x 34.7x 31.8x 21.1x 6.7x 7.7x -1.3% -2.4% 5.5% 6.4% 6.5% 3.2% 2.7% 3.0% 13.0% 9.2% Everyday Health 2.1x 1.4x 1.0x 1.2x 1.4x 29.8x 21.3x 9.6x 12.6x 15.5x 20.5% 22.4% 25.9% 30.9% 23.6% 6.9% 6.5% 10.4% 9.2% 9.0% Expedia 2.6x 2.8x 2.8x 2.6x 2.4x 22.9x 24.5x 25.3x 22.9x 22.6x 16.3% 13.9% 15.8% 21.3% 26.7% 11.3% 11.5% 11.0% 11.2% 10.8% Facebook 16.9x 17.6x 16.3x 15.9x 15.1x 39.1x 42.4x 35.5x 33.2x 30.2x 46.2% 42.3% 43.8% 46.3% 51.4% 43.3% 41.5% 46.0% 47.7% 50.0% GoDaddy 1.8x 2.0x 1.9x 2.0x 2.0x 23.7x 22.6x 22.8x 21.9x 20.7x 19.9% 17.6% 15.9% 15.3% 15.1% 7.7% 8.6% 8.1% 9.3% 9.8% Google 5.0x 6.3x 5.8x 5.5x 5.7x 15.3x 19.3x 17.8x 16.9x 17.4x 14.4% 12.8% 13.6% 15.0% 17.5% 32.5% 32.5% 32.6% 32.7% 32.9% Groupon 0.6x 0.4x 0.5x 0.4x 0.8x 15.7x 11.8x 22.5x 44.9x 371.5x 9.9% 5.4% 2.5% 1.2% 1.1% 3.6% 3.3% 2.1% 1.0% 0.2% GrubHub 7.0x 5.5x 4.4x 4.9x 7.2x 24.3x 20.8x 17.9x 20.9x 32.0x 53.3% 46.0% 42.5% 36.1% 34.2% 28.8% 26.5% 24.7% 23.2% 22.6% Harmonic 1.0x 1.0x 0.5x 0.7x 1.1x 18.2x 25.9x 23.6x - - -8.2% -10.7% -13.0% -17.4% -14.6% 5.4% 3.8% 2.2% -1.7% -3.8% Interactive Intelligence 2.2x 1.8x 1.5x 2.0x 3.0x 86.1x 74.0x 159.6x - - 12.1% 10.7% 14.5% 14.0% 12.3% 2.5% 2.4% 0.9% -0.1% -0.5% InterActiveCorp 2.1x 1.8x 1.4x 1.4x 1.6x 16.4x 14.4x 12.0x 12.2x 13.5x 6.0% 7.0% 3.9% 4.3% 3.0% 12.7% 12.4% 11.9% 11.7% 11.7% LendingClub ------104.5% 105.4% 103.6% 97.5% 67.9% - - - - - LifeLock 0.9x 1.8x 1.4x 1.6x 2.2x 13.4x 25.0x 18.4x 22.4x 36.0x 26.3% 25.0% 23.4% 21.8% 18.7% 6.8% 7.3% 7.7% 7.0% 6.0%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 Limelight Networks 1.2x 0.7x 0.4x 0.8x 1.0x - - - - 45.3x -0.9% 3.2% 5.3% 4.0% 2.4% -5.0% -5.9% -2.8% -1.0% 2.1% LINE Corporation - - - - 7.2x - - - - 58.8x 68.6% 68.6% 39.4% 28.5% 24.4% 3.8% 3.8% 4.7% 7.8% 12.3% LinkedIn 9.1x 10.2x 4.5x 4.7x 6.9x 124.9x 141.5x 54.7x 57.0x 60.0x 38.6% 37.1% 34.8% 34.9% 34.1% 7.3% 7.2% 8.3% 8.3% 11.5% Liquidity Services 0.3x 0.4x 0.2x 0.3x 0.5x 5.0x 6.9x - - - -13.8% -19.9% -32.3% -32.0% -27.3% 6.5% 5.1% -0.2% -1.7% -1.8% Mail.ru Group 6.3x 8.0x 8.4x 7.5x 6.5x 14.2x 20.2x 23.7x 21.6x 19.0x 19.9% 18.8% 17.9% 13.3% 9.2% 44.0% 39.5% 35.4% 34.6% 33.9% MakeMyTrip 1.6x 1.9x 2.2x 1.9x 2.2x - - - - - 9.3% 5.0% 5.1% 12.1% 21.8% -4.4% -6.2% -10.6% -17.8% -22.4% Marchex 0.5x 0.5x 0.4x 0.3x 0.1x 38.3x 41.5x 28.5x - - -14.6% -23.5% -17.6% -11.4% -5.1% 1.2% 1.2% 1.3% -1.0% -3.8% Match Group - 3.4x 3.7x 4.2x 4.5x - 13.7x 15.2x 16.9x 17.4x - - 14.9% 17.2% 18.1% 24.2% 25.0% 24.0% 24.6% 25.7% MaxPoint Interactive 0.9x 0.2x 0.1x 0.3x 0.4x - - - - - 60.4% 49.5% 31.6% 17.6% 10.4% -9.9% -9.6% -11.9% -13.9% -15.0% Mercadolibre 8.6x 7.9x 6.8x 8.6x 10.3x 27.7x 26.5x 24.8x 33.7x 40.3x 21.2% 19.4% 17.1% 12.2% 15.5% 30.9% 29.8% 27.4% 25.5% 25.6% Mitel Networks 1.3x 1.4x 1.2x 1.2x 1.2x 10.0x 11.0x 9.9x 10.2x 9.6x 41.5% 22.2% 4.9% 6.8% 10.7% 12.9% 12.5% 12.4% 11.5% 12.2% MOL Global 0.9x 0.6x 0.5x ------11.2% 23.9% 22.6% 19.6% 20.5% -45.7% -43.0% -33.4% -25.5% -1.3% Monster Worldwide 1.1x 1.0x 0.5x 0.5x 0.6x 11.3x 7.7x 3.5x 3.2x 5.2x -9.2% -2.9% -8.1% -6.9% -8.7% 9.8% 13.1% 14.1% 14.2% 11.8% NCSoft 3.8x 4.0x 4.4x 4.6x 5.5x 10.3x 11.7x 13.5x 13.4x 15.5x 10.5% 2.8% -0.1% 5.0% 7.2% 37.0% 34.0% 32.5% 34.0% 35.2% Netease 5.5x 5.6x 4.6x 4.2x 5.0x 15.0x 16.4x 14.0x 12.4x 14.7x 49.4% 72.1% 94.7% 108.0% 112.3% 36.4% 34.3% 32.7% 33.4% 33.9% Netflix 7.2x 7.5x 6.2x 5.7x 5.5x 108.7x 130.5x 114.0x 127.1x 132.8x 24.9% 24.0% 23.2% 23.4% 24.7% 6.7% 5.8% 5.4% 4.5% 4.1% Overstock.com 0.2x 0.2x 0.1x 0.2x 0.2x 16.3x 12.7x 18.2x 35.8x 181.0x 17.3% 15.7% 10.7% 7.7% 5.8% 1.5% 1.2% 0.7% 0.5% 0.1% Pandora 3.3x 2.3x 1.7x 1.8x 2.4x - - - - - 28.0% 26.0% 26.4% 28.6% 25.8% -3.7% -3.4% -5.8% -9.1% -12.3% PetMed Express 1.2x 1.2x 1.2x 1.4x 1.6x 8.9x 8.7x 8.8x 10.0x 10.6x -1.4% -0.5% 0.5% 2.3% 3.1% 13.7% 14.2% 14.1% 14.1% 14.6% Priceline 7.4x 7.4x 7.0x 7.1x 7.4x 20.0x 19.6x 18.5x 18.5x 19.6x 16.1% 11.3% 9.3% 10.3% 11.5% 37.1% 37.9% 38.0% 38.3% 37.9% Qihoo 4.9x 4.9x 5.3x 5.3x 5.2x 18.0x 19.7x 25.2x 25.0x 24.7x 64.2% 47.7% 29.8% 29.8% 29.8% 27.0% 25.1% 21.1% 21.1% 21.1% QuinStreet 0.8x 0.6x 0.4x 0.4x 0.4x ------0.1% 3.8% 3.0% 3.8% 5.5% -1.0% -0.8% -1.4% -1.7% -2.1% Renren 12.4x 17.4x 22.1x 20.5x 13.7x ------45.0% -31.6% -11.9% 37.4% -25.1% -136.4% -138.8% -238.1% -208.2% -180.2% Rocket Fuel 0.6x 0.3x 0.3x 0.3x 0.3x - - - - - 47.9% 34.1% 13.0% 5.4% -1.5% -11.3% -11.3% -7.3% -4.5% -3.6% Rovi 2.8x 2.9x 2.9x 2.9x 2.6x 19.2x 22.8x 22.7x 20.0x 18.1x 8.3% 4.9% 3.3% 2.0% 4.4% 14.4% 12.7% 12.9% 14.4% 14.5% SeaChange International 1.3x 1.5x 1.2x 0.6x 0.6x ------12.0% -7.3% -7.3% -7.8% -14.5% -10.7% -9.2% -7.2% -6.8% -13.9% ShoreTel 1.0x 1.4x 1.1x 0.9x 1.2x 14.2x 18.0x 12.5x 14.0x 21.7x 6.3% 4.2% 2.4% 1.9% 0.2% 7.4% 7.9% 8.6% 6.6% 5.5% Shutterfly 1.7x 1.8x 1.6x 1.7x 1.8x 18.5x 19.5x 14.5x 15.0x 15.1x 16.8% 17.2% 15.0% 14.5% 13.6% 9.2% 9.3% 10.8% 11.2% 11.7% Shutterstock 2.5x 2.3x 2.1x 2.6x 3.8x 18.2x 17.7x 16.1x 19.4x 28.9x 34.3% 31.4% 29.6% 26.0% 23.2% 13.6% 12.8% 13.0% 13.5% 13.2% SINA 1.7x 2.8x 2.5x 2.6x 4.3x 123.3x 58.5x 45.4x 37.3x 44.4x 9.2% 10.8% 14.6% 14.5% 14.5% 1.4% 4.7% 5.6% 7.1% 9.6% Sohu.com 0.7x 0.6x 0.6x 0.4x 0.4x 5.6x 3.3x 3.2x 2.3x 2.7x 22.2% 23.2% 15.8% 7.2% -2.2% 13.0% 18.6% 18.6% 18.2% 15.7% Sonus Networks 0.9x 0.9x 1.0x 1.3x 1.3x - - - - 42.4x -15.6% -15.6% -16.0% -6.4% 3.7% -7.2% -7.2% -6.0% -0.2% 3.0% Stamps.com 6.9x 8.2x 7.4x 6.5x 5.4x 28.6x 32.6x 24.7x 20.2x 15.6x 31.2% 34.9% 45.3% 59.3% 67.0% 24.3% 25.3% 30.0% 32.1% 34.7% Synacor 0.2x 0.3x 0.4x 0.7x 0.7x 4.5x 5.1x 9.6x 17.6x 21.9x 3.0% 3.5% 3.4% 5.3% 10.1% 3.8% 6.3% 4.0% 4.1% 3.1% Tencent Holdings 11.8x 12.1x 10.7x 11.1x 12.4x 28.2x 29.3x 25.6x 26.4x 28.8x 22.6% 24.7% 30.3% 35.6% 44.0% 41.9% 41.5% 41.7% 42.1% 43.1% The Rubicon Project 3.3x 3.0x 2.4x 2.0x 0.9x - - 31.3x 19.5x 6.3x 65.1% 75.9% 98.3% 101.2% 81.5% -2.8% -0.3% 7.7% 10.1% 14.0% TheStreet.com 0.4x 0.4x 0.2x 0.2x 0.2x 13.2x 28.2x 7.3x 15.3x 48.7x 14.6% 16.0% 10.8% 5.2% 0.1% 3.4% 1.5% 2.7% 1.1% 0.4%

SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 3Q15 4Q15 1Q16 2Q16 3Q16 Travelzoo 0.5x 0.6x 0.6x 0.6x 1.0x 12.0x 11.7x 8.8x 8.7x 12.2x -6.9% -8.0% -7.5% -9.7% -8.1% 4.3% 5.3% 6.8% 7.0% 8.2% Tree.Com 5.8x 5.0x 3.2x 2.7x 3.0x 61.3x 46.9x 27.9x 23.3x 23.5x 22.6% 37.4% 51.9% 67.2% 76.3% 9.4% 10.6% 11.4% 11.8% 12.6% Tremor 0.3x 0.2x 0.2x 0.2x 0.3x - - - - - 7.5% 11.5% 9.0% 4.7% 2.3% -9.6% -8.8% -6.3% -6.9% -7.9% TripAdvisor 7.1x 7.9x 6.1x 6.0x 5.7x 28.2x 31.7x 32.5x 38.1x 40.6x 31.5% 25.6% 19.7% 11.5% 4.0% 25.2% 24.8% 18.8% 15.7% 14.0% TubeMogul 2.3x 2.2x 1.9x 1.9x 1.4x - - - - - 62.4% 58.0% 58.2% 57.1% 45.4% -6.5% -7.1% -5.1% -6.2% -6.6% Tucows 1.7x 1.5x 1.3x 1.4x 1.6x 16.4x 13.8x 10.7x 11.5x 11.8x 16.0% 17.4% 17.1% 15.8% 13.4% 10.4% 11.1% 12.0% 12.5% 13.6% Twitter 9.5x 7.9x 4.5x 3.6x 4.4x - - - - - 82.6% 70.3% 58.1% 49.6% 39.2% -16.1% -10.5% -7.9% -2.8% -0.2% VeriSign 7.6x 8.8x 8.5x 8.5x 7.6x 12.2x 14.1x 13.5x 13.4x 11.8x 4.4% 4.3% 4.9% 6.2% 7.3% 61.8% 62.6% 63.0% 63.6% 64.6% WebMD Health 2.9x 3.0x 3.3x 3.7x 3.0x 14.3x 14.0x 14.4x 15.8x 12.2x 8.4% 7.6% 9.6% 10.4% 12.2% 20.4% 21.2% 23.0% 23.6% 24.3% Wix.com 4.4x 4.3x 3.4x 4.2x 6.2x - - - - - 57.8% 50.3% 43.5% 40.0% 39.8% -30.0% -25.2% -21.4% -20.7% -18.9% XO Group 2.1x 2.3x 2.0x 2.3x 2.5x 14.4x 16.1x 14.3x 15.7x 17.0x 3.2% 1.0% -1.4% 0.6% 3.9% 14.4% 14.2% 14.2% 14.8% 14.9% Xunlei 1.0x 0.3x - - - 6.1x 1.7x - - - -5.8% -3.4% -3.2% 4.3% -11.8% 16.8% 18.1% 4.1% -5.8% -11.4% Yahoo! 6.0x 5.4x 4.9x 6.3x 7.2x 53.8x 56.3x 73.7x 123.9x 232.6x 5.4% 6.8% 7.6% 2.5% 0.5% 11.1% 9.6% 6.7% 5.1% 3.1% Yandex 4.1x 5.5x 4.9x 6.1x 6.1x 12.5x 17.9x 17.5x 21.0x 20.1x 19.0% 17.0% 17.8% 22.4% 26.1% 32.5% 30.7% 28.2% 29.3% 30.1% Yelp 3.3x 3.2x 2.2x 2.6x 3.9x 54.0x 100.6x 14853.8x - - 56.5% 49.5% 45.6% 40.6% 35.4% 6.1% 3.2% 0.0% -1.5% -1.4% YuMe 0.4x 0.3x 0.4x 0.4x 0.3x - - - - - 7.6% 1.0% -2.5% -4.6% -4.4% -4.7% -6.5% -6.8% -5.5% -3.0% YY 3.9x 3.8x 3.6x 2.5x 2.3x 14.3x 16.6x 14.9x 10.8x 10.1x 79.5% 65.6% 60.3% 53.7% 50.0% 27.3% 23.1% 24.1% 22.9% 23.2% Zillow 9.0x 7.4x 5.6x 6.7x 8.2x - - - - 848.5x 86.9% 94.5% 97.8% 81.8% 54.4% -4.1% -4.5% -0.7% -1.5% 1.0% Zynga 1.8x 1.7x 1.2x 1.8x 2.1x - - - - - 7.5% 14.4% 10.8% 8.9% -0.3% -13.6% -8.6% -6.4% -4.7% -2.7%

Ad Tech 3Q15 4Q15 1Q16 2Q16 3Q16 Infrastructure 3Q15 4Q15 1Q16 2Q16 3Q16 Travel 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 2.1x 1.8x 1.5x 1.6x 0.9x EV/TTM Revenue 1.5x 1.5x 1.3x 1.4x 1.8x EV/TTM Revenue 4.8x 5.1x 4.5x 4.3x 4.1x EV/NTM Revenue 1.4x 1.9x 1.6x 1.4x 0.8x EV/NTM Revenue 1.3x 1.4x 1.3x 1.5x 1.8x EV/NTM Revenue 3.7x 5.3x 5.0x 4.2x 4.7x EV/TTM EBITDA 18.7x 21.6x 19.1x 19.5x 17.4x EV/TTM EBITDA 18.3x 20.3x 22.7x 17.6x 21.7x EV/TTM EBITDA 21.4x 24.5x 25.3x 20.7x 21.1x EV/TTM CFO 13.4x 17.2x 14.8x 16.0x 11.0x EV/TTM CFO 19.4x 20.1x 16.6x 14.3x 15.2x EV/TTM CFO 23.0x 31.4x 21.2x 20.2x 18.9x Gross Profit Margin 55.8% 56.2% 55.7% 56.1% 51.8% Gross Profit Margin 60.8% 61.3% 61.8% 61.8% 62.3% Gross Profit Margin 83.4% 83.4% 83.5% 83.7% 84.3% EBITDA Margin 1.2% 1.2% 6.7% 5.1% 3.1% EBITDA Margin 6.4% 6.9% 6.1% 5.4% 4.3% EBITDA Margin 7.8% 8.4% 8.9% 9.1% 9.5% Net Income Margin -5.7% -2.0% -2.6% -2.1% -6.4% Net Income Margin -1.5% -2.6% -2.6% -3.0% -2.1% Net Income Margin 7.8% 14.5% 12.4% 8.7% 6.1% TTM Revenue Growth (YoY) 22.2% 23.2% 15.8% 15.0% 10.4% TTM Revenue Growth (YoY) 7.6% 5.5% 5.1% 6.5% 9.0% TTM Revenue Growth (YoY) 16.2% 12.6% 12.5% 11.8% 16.6% TTM EBITDA Growth (YoY) 1.8% -15.1% -0.9% -0.1% 15.5% TTM EBITDA Growth (YoY) 12.4% 2.9% 8.6% 5.9% 4.8% TTM EBITDA Growth (YoY) -14.1% -2.8% 2.7% -11.3% -14.3% TTM Earnings Growth (YoY) 5.6% 10.0% 5.4% 33.1% 12.3% TTM Earnings Growth (YoY) 14.6% 12.6% 23.2% 17.8% 25.5% TTM Earnings Growth (YoY) 9.0% -5.1% -3.8% -6.0% 14.0% Cash as Percent of Market Cap 10.1% 14.2% 14.2% 13.0% 12.5% Cash as Percent of Market Cap 19.7% 23.2% 22.7% 24.1% 36.1% Cash as Percent of Market Cap 18.9% 17.0% 21.0% 19.6% 17.9% Enterprise Value Growth (YoY) -7.4% 13.2% 1.1% -2.3% 37.3% Enterprise Value Growth (YoY) -24.0% -24.9% -28.7% -16.7% -20.0% Enterprise Value Growth (YoY) 10.5% 25.6% 3.8% -0.6% 10.8%

Commerce 3Q15 4Q15 1Q16 2Q16 3Q16 Search 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 1.5x 1.5x 1.2x 1.4x 2.1x EV/TTM Revenue 4.5x 5.9x 5.2x 5.3x 5.4x EV/NTM Revenue 1.2x 1.6x 1.3x 1.5x 2.0x EV/NTM Revenue 3.5x 5.1x 4.8x 4.4x 4.9x EV/TTM EBITDA 17.8x 22.5x 20.5x 33.7x 27.0x EV/TTM EBITDA 15.8x 18.6x 17.7x 18.5x 18.7x EV/TTM CFO 17.3x 19.0x 19.9x 15.7x 20.8x EV/TTM CFO 13.4x 17.4x 15.9x 16.0x 15.8x Gross Profit Margin 41.4% 42.5% 41.4% 43.8% 44.1% Gross Profit Margin 69.9% 69.3% 68.8% 68.3% 67.6% EBITDA Margin 6.2% 6.0% 5.4% 5.4% 5.1% EBITDA Margin 31.3% 28.3% 27.3% 27.5% 27.3% Net Income Margin 1.9% 1.4% 0.6% 1.0% 1.2% Net Income Margin 22.3% 21.1% 19.0% 17.7% 18.5% TTM Revenue Growth (YoY) 17.2% 16.8% 13.9% 15.9% 10.7% TTM Revenue Growth (YoY) 16.7% 14.9% 15.7% 18.7% 21.3% TTM EBITDA Growth (YoY) -0.4% 0.6% -1.8% 5.4% 11.0% TTM EBITDA Growth (YoY) 2.1% -10.9% -7.0% -2.2% -1.7% TTM Earnings Growth (YoY) -4.8% 5.0% 18.0% 12.9% 30.2% TTM Earnings Growth (YoY) 12.3% 4.1% -13.7% -14.2% 21.0% Cash as Percent of Market Cap 13.9% 13.5% 15.3% 18.3% 10.4% Cash as Percent of Market Cap 15.9% 18.1% 19.7% 17.2% 16.8% Enterprise Value Growth (YoY) 18.6% -11.4% -20.4% -27.9% 14.6% Enterprise Value Growth (YoY) -8.9% -6.6% -16.7% -8.5% 20.6%

Content & Media 3Q15 4Q15 1Q16 2Q16 3Q16 Services 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 2.1x 2.3x 2.1x 2.5x 2.8x EV/TTM Revenue 2.0x 1.8x 1.6x 1.7x 2.2x EV/NTM Revenue 1.8x 1.8x 2.0x 2.2x 2.5x EV/NTM Revenue 1.3x 1.6x 1.4x 1.5x 1.8x EV/TTM EBITDA 16.4x 17.7x 15.2x 17.6x 36.6x EV/TTM EBITDA 18.5x 20.8x 18.0x 16.3x 20.2x EV/TTM CFO 13.0x 18.3x 13.6x 13.4x 15.5x EV/TTM CFO 21.8x 16.6x 20.4x 24.0x 25.0x Gross Profit Margin 59.9% 59.5% 58.2% 56.1% 51.8% Gross Profit Margin 72.6% 72.1% 71.6% 71.3% 71.0% EBITDA Margin 11.1% 9.6% 5.6% 5.1% 4.1% EBITDA Margin 5.6% 6.1% 7.0% 8.5% 9.5% Net Income Margin 3.2% 2.6% 1.8% 1.8% -4.7% Net Income Margin -3.6% -5.1% -3.6% -4.6% -8.2% TTM Revenue Growth (YoY) 8.4% 7.6% 9.6% 5.2% 3.9% TTM Revenue Growth (YoY) 20.5% 22.4% 23.4% 21.8% 23.6% TTM EBITDA Growth (YoY) -17.4% -18.1% -13.1% -21.5% -22.9% TTM EBITDA Growth (YoY) 10.6% 10.5% 18.0% 15.7% 28.8% TTM Earnings Growth (YoY) 64.7% -29.8% -32.8% -18.4% 16.6% TTM Earnings Growth (YoY) 111.0% 83.0% 47.4% 30.3% 37.8% Cash as Percent of Market Cap 22.9% 25.3% 30.5% 31.8% 28.2% Cash as Percent of Market Cap 14.1% 15.1% 18.4% 15.2% 12.6% Enterprise Value Growth (YoY) -21.7% 5.0% -20.2% -14.9% 11.9% Enterprise Value Growth (YoY) -21.7% 6.1% -22.7% -7.0% 26.2%

Gaming 3Q15 4Q15 1Q16 2Q16 3Q16 Social 3Q15 4Q15 1Q16 2Q16 3Q16 EV/TTM Revenue 2.8x 2.8x 2.8x 3.0x 3.6x EV/TTM Revenue 9.1x 7.9x 4.5x 4.4x 5.5x EV/NTM Revenue 2.1x 2.6x 2.1x 2.7x 3.3x EV/NTM Revenue 5.9x 6.1x 3.6x 5.9x 5.3x EV/TTM EBITDA 10.3x 11.7x 13.4x 12.4x 14.7x EV/TTM EBITDA 39.1x 31.3x 29.5x 21.6x 19.0x EV/TTM CFO 13.2x 14.6x 13.1x 14.7x 26.4x EV/TTM CFO 33.4x 29.9x 20.8x 19.7x 22.8x Gross Profit Margin 68.9% 66.9% 64.4% 64.3% 63.5% Gross Profit Margin 74.9% 75.0% 75.0% 74.6% 74.4% EBITDA Margin 31.9% 34.2% 32.2% 32.7% 33.1% EBITDA Margin 15.8% 15.2% 16.1% 15.6% 17.3% Net Income Margin 20.2% 22.5% 23.8% 24.8% 26.4% Net Income Margin 11.5% 8.9% 1.1% 2.1% 1.8% TTM Revenue Growth (YoY) 16.3% 18.8% 13.3% 8.0% 3.5% TTM Revenue Growth (YoY) 46.2% 42.3% 39.3% 39.0% 34.8% TTM EBITDA Growth (YoY) 19.6% 36.4% 43.7% 33.8% 27.8% TTM EBITDA Growth (YoY) 10.1% -0.8% 5.9% 12.3% 22.2% TTM Earnings Growth (YoY) 19.6% 24.8% 21.0% 45.2% 53.2% TTM Earnings Growth (YoY) 62.0% 10.4% -10.7% -21.4% -17.0% Cash as Percent of Market Cap 34.0% 29.2% 32.0% 30.4% 25.7% Cash as Percent of Market Cap 12.3% 8.9% 11.8% 13.4% 12.8% Enterprise Value Growth (YoY) -1.6% 6.1% -11.4% -8.6% 30.5% Enterprise Value Growth (YoY) -25.1% 13.0% 3.8% -19.8% -6.1%

TTM Purchase Price Enterprise Revenue Date Buyers Seller (mm) Value (mm) EV/ Rev EV/ EBITDA Growth 07/28/16 Oracle Corporation (NYSE:ORCL) NetSuite Inc. (NYSE:N) $9,106.6 $8,698.9 10.3x - 31.5% 07/30/16 Verizon Communications Inc. (NYSE:VZ) Fleetmatics Group PLC (NYSE:FLTX) $2,377.7 $2,183.5 7.0x 32.9x 20.2% 08/30/16 Genesys Telecommunications Laboratories, Inc. Interactive Intelligence Group Inc. (NasdaqGS:ININ) $1,560.1 $1,394.3 3.4x - 12.3% 07/06/16 AVAST Software s.r.o. AVG Technologies N.V. (NYSE:AVG) $1,559.7 $1,463.0 3.4x 11.7x 6.8% 09/16/16 Vista Equity Partners Infoblox Inc. (NYSE:BLOX) $1,512.4 $1,254.3 3.5x - 17.0% 07/26/16 DTI Epiq Systems, Inc. (NasdaqGS:EPIQ) $1,026.3 $1,009.0 1.9x 11.6x 17.5% 09/07/16 Alphabet Inc. (NasdaqGS:GOOGL) Apigee Corporation (NasdaqGS:APIC) $584.6 $516.3 5.6x - 34.1% 08/08/16 Randstad North America, LP Monster Worldwide, Inc. (NYSE:MWW) $486.1 $382.8 0.6x 5.1x (8.7%) 08/21/16 Loblaw Companies Limited (TSX:L) QHR Corporation (TSXV:QHR) $130.1 $119.8 5.1x 57.7x 17.2%

TTM Purchase Enterprise EV/ Revenue Date Buyers Seller Price (mm) Value (mm) EV/ Rev EBITDA Growth 07/28/16 Oracle Corporation (NYSE:ORCL) NetSuite Inc. (NYSE:N) $9,106.6 $8,698.9 10.3x - 31.5% 09/07/16 Micro Focus International plc (LSE:MCRO) Hewlett Packard Enterprise Company, Software Business $8,730.4 $8,730.4 2.8x 13.3x -3.1% 07/11/16 Onex Corporation (TSX:OCX); Baring Private Equity Asia Thomson Reuters Corporation, Intellectual Property & Science Business $3,550.0 $3,550.0 - - 1.7% 08/09/16 EQT Partners AB Press Ganey Holdings, Inc. (NYSE:PGND) $2,428.6 $2,382.2 6.9x 22.7x 14.7% 07/30/16 Verizon Communications Inc. (NYSE:VZ) Fleetmatics Group PLC (NYSE:FLTX) $2,377.7 $2,183.5 7.0x 32.9x 20.2% 07/26/16 LogMeIn, Inc. (NasdaqGS:LOGM) Citrix Systems, Inc., GoTo Family Of Products $1,802.6 $1,802.6 - - 6.9% 09/12/16 Open Text Corporation (NasdaqGS:OTEX) Dell EMC, Enterprise Content Division $1,620.0 $1,620.0 2.7x - 1.0% 08/30/16 Genesys Telecommunications Laboratories, Inc. Interactive Intelligence Group Inc. (NasdaqGS:ININ) $1,560.1 $1,394.3 3.4x - 12.3% 07/06/16 AVAST Software s.r.o. AVG Technologies N.V. (NYSE:AVG) $1,559.7 $1,463.0 3.4x 11.7x 6.8% 07/26/16 DTI Epiq Systems, Inc. (NasdaqGS:EPIQ) $1,026.3 $1,009.0 1.9x 11.6x 17.5% 07/21/16 Hellman & Friedman LLC Genesys Telecommunications Laboratories, Inc. $900.0 $3,800.0 - - - 09/07/16 Alphabet Inc. (NasdaqGS:GOOGL) Apigee Corporation (NasdaqGS:APIC) $584.6 $516.3 5.6x - 34.1% 07/30/16 salesforce.com, inc. (NYSE:CRM) Quip, Inc. $582.0 $582.0 - - -

Enterprise EV/ Buyers Seller Value (mm) EV/ Rev EBITDA Alphabet Inc. (NasdaqGS:GOOGL) Apigee Corporation (NasdaqGS:APIC) $584.6 5.61x 5.6x Anvato Inc. - - - FortyTwo Inc. - - - Besttone Holding Co.,Ltd. Dazzle Interactive Network Technologies Co., Ltd. $173.6 0.5x 1.7x (SHSE:600640) E-surfing Media Co., Ltd. $291.0 1.5x 1.5x Icartoon Culture & Media Corporation Limited $17.0 2.2x 0.5x Tianyi Reading Culture Dissemination Co., Ltd. $104.7 1.7x 2.2x FullContact Inc. Aireum Inc. - - - Conspire Inc. - - - Profoundis Labs Pvt. Ltd. - - -

Google Inc. Cluster Labs, Inc. - - - Moodstocks SAS - - - Orbitera Inc. - - - salesforce.com, inc. (NYSE:CRM) BeyondCore, Inc. - - - Coolan, Inc. - - - HeyWire, Inc. - - - Quip, Inc. $582.0 - - SportsEngine Beyond the Scores, LLC - - - RallyMe, Inc. - - - Sioux Falls Swim Team, Inc. - - - Trackwrestling.com, LLC - - - Thoma Bravo, LLC Imprivata, Inc. $512.1 3.7x 3.7x T2 Systems, Inc. - - TRADER Corporation $1,220.0 - Verizon Communications Inc. Fleetmatics Group PLC (NYSE:FLTX) $2,377.7 7.0x 7.0x Sensity Systems, Inc. - - Yahoo! Inc., Operating Business $4,825.8 - Vista Equity Partners Infoblox Inc. (NYSE:BLOX) $1,512.4 3.5x 3.5x Granicus Inc. - - GovDelivery, Inc. $153.0 -