Piper Jaffray Cybersecurity Earnings Update Third Quarter 2017 Marc Steifman Greg Klancher Co-Head of Technology Principal Investment Banking Piper Jaffray & Co. Piper Jaffray & Co. MINNEAPOLIS | BOSTON | CHICAGO | HOUSTON | LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO | ZÜRICH Piper Jaffray Companies (NYSE: PJC) is an investment bank and asset management firm headquartered in Minneapolis with offices across the U.S. and in London, Zurich and Hong Kong. Securities brokerage and investment banking services are offered in the United States through Piper Jaffray & Co., member NYSE and SIPC, in Europe through Piper Jaffray Ltd., authorized and regulated by the Financial Conduct Authority, and in Hong Kong through Piper Jaffray Hong Kong, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through three separate investment advisory affiliates registered with the U.S. Securities and Exchange Commission: Advisory Research Inc., Piper Jaffray Investment Management LLC and PJC Capital Partners LLC. Piper Jaffray & Co., Member SIPC and FINRA 11/17 Piper Jaffray Case Study: Vista Equity Partners acquires majority stake in Jamf Vista Equity Partners: Undisclosed . Vista Equity Partners is a U.S.-based investment firm with more than $30 billion in cumulative capital commitments, currently invests in software, data and technology-enabled organizations. The firm invests in middle market management and leveraged buyouts, growth and acquisition Has purchased a majority financing, recapitalizations, private transactions, spin-outs and corporate divestitures. stake in . The firm was founded in 2000 and is headquartered in Austin, Texas. Jamf: . Jamf focuses on helping businesses, education and government organizations succeed with November 2017 Apple through its Jamf Pro and Jamf Now solutions. Jamf Pro (formerly Casper Suite) is the only Mac and iOS management software developed exclusively for the Apple platform. Jamf Pro offers the breadth and depth of functionality in package building, inventory, image management, remote imaging, remote updates, iOS mobile device management and a powerful framework for automated support. Today, more than 13,000 global customers rely on Jamf to manage over eight million Apple devices. Jamf was founded in 2002 and is headquartered in Minneapolis, Minnesota. Piper Jaffray Role: . Piper Jaffray was an advisor to Vista Equity Partners on the transaction. Piper Jaffray had a long-standing relationship with Jamf management and strong knowledge of the company and space. PIPER JAFFRAY 1 Revenue Growth Accelerated in Q3; Revenue Guidance for Q4 Mostly In-Line with Expectations Year-over-Year Revenue Growth in Q3 accelerated to the highest level in the past 7 quarters Year-over-Year Revenue Growth – Post Q3 2017 Earnings Quarter-over-Quarter Revenue Growth – Post Q3 2017 Earnings 20.0% 10.0% 9.0% 18.1% 18.0% 17.3% 16.0% 16.5% 8.0% 16.0% 6.0% 14.0% 6.0% 5.0% 5.1% 13.2% 14.0% 3.9% 4.1% 11.9% 4.0% 12.0% 10.9% 10.0% 2.0% 8.0% 0.0% 6.0% (2.0%) 4.0% (4.0%) (3.3%) 2.0% (4.0%) 0.0% (6.0%) C1Q16 A / C2Q16 A / C3Q16 A / C4Q16 A / C1Q17 A / C2Q17 A / C3Q17 A / 4Q 17 C1Q16A / C2Q16A / C3Q16A / C4Q16A / C1Q17A / C2Q17A / C3Q17A / 4Q 17 C1Q15A C2Q15A C3Q15A C4Q15A C1Q16A C2Q16A C3Q16A Guidance C4Q15A C1Q16A C2Q16A C3Q16A C4Q16A C1Q17A C3Q17A Guidance vs. 4Q 16 vs. 3Q 17 Actual Actual Quarterly Revenue vs. Street T+1 Share Price Reaction Post Q3 2017 Announcement 2.0% 0.0% 1.8% 1.7% (0.2%) 1.6% (0.4%) 1.4% (0.4%) (0.6%) 1.2% 1.0% (0.8%) 0.8% (1.0%) 0.6% 0.6% (1.2%) 0.4% (1.4%) 0.2% (1.6%) (1.6%) 0.0% Q3 '17A vs Q3 '17 Street Q4 '17 Guidance vs Q4 '17 Street (1.8%) Mean Median Source: Company filings, S&P Capital IQ and FactSet; median of companies listed on page 3 PIPER JAFFRAY 2 Q3 Revenues Were Largely Better Than Street Expectations; Q4 Guidance was Mostly In-Line with Street Expectations • Four companies (OKTA, MIME, PFPT, VRNS) reported YoY revenue growth in excess of 30% in Q3 • Ten companies missed street expectations with Q4 and/or CY 17 guidance – those companies traded down 8% on average in the day post-announcement T+1 Percent 3Q17 Q/Q Revenue 3Q17 Y/Y Revenue 3Q17 Actual vs. CQ4E QoQ Growth CQ4E YoY Growth CQ4E Guidance vs. CY17 YoY Growth CY17 Guidance vs. Reaction 1Q17 Ticker Company 3Q17 Earnings Date growth growth Street (Guidance) (Guidance) Street (Guidance) Street Announcement Security OKTA Okta, Inc. 12/06/17 11.8% 61.3% 8.6% 3.4% 44.4% 3.8% 57.5% 3.2% 2.5% PANW Palo Alto Networks, Inc. 11/20/17 (0.7%) 27.0% 3.4% 3.5% 23.8% 0.7% 38.1% 0.7% 4.8% SPLK Splunk Inc. 11/16/17 17.4% 34.3% 6.3% 18.4% 26.9% 1.4% 28.4% (1.6%) 17.9% TSX:ABT Absolute Software Corporation 11/13/17 (0.8%) 2.3% (3.1%) NA NA NA 7.2% (3.7%) (12.9%) TSE:4704 Trend Micro Incorporated 11/09/17 (13.7%) 18.6% NA NA NA NA NA NA (2.6%) MIME Mimecast Limited 11/08/17 8.4% 42.2% 5.1% 2.3% 33.4% 1.9% NA NA (2.8%) LSE:SOPH Sophos Group plc 11/08/17 10.2% 21.7% 4.0% NA NA NA NA NA (1.6%) IMPV Imperva, Inc. 11/08/17 12.7% 22.6% 0.1% 8.1% 15.7% (1.9%) 21.5% (0.4%) (4.5%) RPD Rapid7, Inc. 11/07/17 6.5% 25.2% 1.3% 8.1% 21.2% 0.6% 25.6% 0.5% 9.4% VRNS Varonis Systems, Inc. 11/02/17 6.8% 30.9% 6.2% 23.6% 21.8% 2.1% 27.8% 2.0% 16.0% CYBR CyberArk Software Ltd. 11/02/17 12.8% 17.9% 3.5% 16.5% 17.3% 0.0% 18.6% 0.8% (3.2%) SYMC Symantec Corporation(1) 11/01/17 5.5% 26.7% (2.5%) 2.0% 29.2% (4.9%) 33.7% (2.7%) (8.6%) RDWR Radware Ltd. 11/01/17 4.1% 13.2% 1.9% 5.6% 8.3% 1.4% NA NA 0.0% FEYE FireEye, Inc. 11/01/17 2.2% 1.7% 1.7% 1.8% 4.5% (1.4%) NA NA (10.3%) QLYS Qualys, Inc. 10/31/17 7.6% 16.7% 1.5% 4.1% 18.6% 2.4% 16.1% 1.0% 5.4% MOBL MobileIron, Inc. 10/31/17 0.2% 2.8% 0.1% 10.0% 3.4% 0.6% NA NA 0.0% CHKP Check Point Software Technologies Ltd. 10/31/17 (0.9%) 6.3% 1.0% 11.1% 3.8% (4.6%) NA NA (12.5%) VDSI VASCO Data Security International, Inc. 10/26/17 11.9% 17.1% 6.1% NA NA NA (2.5%) (0.1%) 11.2% FTNT Fortinet, Inc. 10/26/17 3.0% 18.2% 1.0% 9.0% 12.4% (2.2%) 16.5% NA (3.4%) ZIXI Zix Corporation 10/24/17 1.3% 8.4% (1.4%) 0.7% 7.2% (3.5%) 9.1% (1.2%) (7.3%) AKAM Akamai Technologies, Inc. 10/24/17 2.1% 6.4% 1.8% 4.1% 5.0% 0.9% NA NA 4.0% PFPT Proofpoint, Inc. 10/19/17 9.8% 34.6% 2.0% 3.5% 30.1% 0.4% 35.6% NA 1.1% CUDA Barracuda Networks, Inc. 10/10/17 0.2% 7.3% 1.0% (0.9%) 5.3% (1.0%) 8.0% (0.7%) (12.0%) Mean 5.1% 20.1% 2.3% 7.1% 17.5% (0.2%) 22.8% (0.2%) (0.4%) Median 5.5% 18.2% 1.7% 4.1% 17.3% 0.6% 21.5% (0.1%) (1.6%) (1) Symantec Corporation revenue growth includes acquisitions Source: Company filings, S&P Capital IQ and FactSet PIPER JAFFRAY 3 Top Performing Security Stocks in 2017 Year to Date Stock Price Change % of 52-Week High SOPH 105.3% CUDA 99.4% VRNS 79.7% RDWR 98.6% QLYS 78.2% FTNT 96.7% OKTA 66.8% VRSN 95.1% MIME 56.6% SPLK 91.9% SPLK 52.5% RPD 90.7% RPD 50.9% PANW 90.6% VRSN 47.8% QLYS 90.5% RDWR 40.5% VRNS 89.8% FTNT 36.5% MIME 87.6% CUDA 28.7% CHKP 86.9% CHKP 22.6% PFPT 85.9% PFPT 19.0% OKTA 84.3% FEYE 15.6% SOPH 82.1% SYMC 14.9% VDSI 81.8% PANW 14.2% SYMC 80.2% IMPV 5.6% CYBR 80.0% MOBL 5.3% AKAM 78.8% ABT 4.9% IMPV 77.4% CYBR (2.2%) FEYE 76.4% VDSI (4.4%) ABT 75.9% ZIXI (14.4%) ZIXI 63.4% AKAM (15.4%) MOBL 58.3% (80.0%) (40.0%) 0.0% 40.0% 80.0% 120.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% YTD % Change % of 52-week high Source: S&P Capital IQ, as of 12/5/2017 Note: OKTA stock price change from IPO pricing of $17.00 on 4/7/2017 PIPER JAFFRAY 4 Q4 Cybersecurity IPO Activity ForeScout Technologies, Inc. (NasdaqGM: FSCT) SailPoint Technologies Holdings, Inc. (NYSE: SAIL) $116 M $240 M 10/26/2017 11/16/2017 Company Description: ForeScout offers a network security platform Company Description: SailPoint is the leading provider of enterprise that provides enterprises and government identity governance solutions.