Clare Capital Tech Updates #1-17 Table of Contents # Title Date 1 NZ Tech EVAR v 1Y% v EV 22 July 2016 2 NZ Tech EVAR Over Time 29 July 2016 3 NZ v AU v US Tech Sector 05 August 2016 4 SaaS Gross Margin 12 August 2016 5 NZ Tech Value Shares Traded 19 August 2016 6 SaaS Revenue per Employee 26 August 2016 7 SaaS EBITDA Margins 02 September 2016 8 Rem. vs Performance 09 September 2016 9 Capital Used vs Recurring Revenue 16 September 2016 10 NZX Sectors Over Time 23 September 2016 11 ARR & Net ARR Over Time 30 September 2016 12 Company Spotlight 07 October 2016 13 SaaS Spotlight 14 October 2016 14 40% Rule 20 October 2016 15 Cash Burn & Runway 28 October 2016 15B Cash Burn & Runway 28 October 2016 16 Accounting Giants 04 November 2016 17 NZX vs ASX Valuation Multiples 11 November 2016 www.clarecapital.co.nz l +6444985104 l Level 18, 125 The Terrace, PO Box 10269, Wellington 6143, New Zealand Page 3 of 41 NZ LISTED TECH UPDATE Source: Clare Capital Data: Factset and Company Reports If you want to be added to the distribution list, please email Mark Clare at [email protected] or call on +64-21-470227 Overview Clare Capital - NZ Listed Tech Update 1 - NZ Tech EVAR v 1Y% v EV - 20160722 The chart compares EV/Annualised Revenue v 1-year annualised revenue growth with the bubble showing Enterprise Value. The entities in light green are specific Software-as-a- Service companies, while the dark green bubbles show other publicly-listed NZ technology companies with a market capitalisation of greater than NZD$10M. Share Price Movements as at 22 July 2016 Valuation Chart as at 22 July 2016 Name ∆ Price 1Week∆ 1Year∆ Vol. '000s Val. '000s 16 EROAD 2.05 (4%) (44%) 114 244 Size of the bubble Finzsoft 2.30 - (32%) - - represents Enterprise Value. Gentrack 2.97 (1%) 33% 156 654 14 GeoOp 0.28 (10%) (40%) 58 17 Pushpay ikeGPS 0.65 14% (4%) 170 103 Orion Health 4.82 (1%) 23% 1,136 5,523 12 Plexure 0.34 - (11%) 199 67 Pushpay 2.30 (6%) 100% 172 417 Trade Me Rakon 0.23 - (37%) 1,237 284 10 Serko 0.75 7% (14%) 42 30 Xero SLI Systems 0.80 (1%) (2%) 2,479 1,990 SmartPay 0.23 41% 32% 16 3 8 Trade Me 5.23 6% 56% 4,744 24,129 Vista 6.05 1% 8% 200 1,201 Wynyard 0.62 - (59%) 163 100 6 Vista Plexure Xero 19.14 6% 7% 550 10,177 EV/Annualised Revenue Total 11,437 44,752 Gentrack EROAD Average 3% 1% 4 ikeGPS Weighted Ave 4% 28% Wynyard Orion Health GeoOp Serko SmartPay Definitions 2 Price = Share Price 1Week∆ = 1 Week Share Price Change Finzsoft SLI Systems Rakon 1Year∆ = 1 Year Share Price Change - Vol. '000s = Volume of Shares Traded in the Last Week ('000s) (50%) - 50% 100% 150% 200% 250% 300% 350% 400% Val. '000s = Value of Shares Traded in the Last Week (NZD '000s) 1Yr Annualised Revenue Growth Notes This report outlines company and valuation metrics for NZ-listed technology companies. The report looks at share price movements, current market valuations relative to growth rates and some high-level company specific data. Also included is some international company comparator data. Email us if there is anything you would like to see. www.clarecapital.co.nz l +6444985104 l Level 18, 125 The Terrace, PO Box 10269, Wellington 6143, New Zealand Page 4 of 41 NZ LISTED TECH UPDATE Source: Clare Capital Data: Factset and Company Reports If you want to be added to the distribution list, please email Mark Clare at [email protected] or call on +64-21-470227 NZ Publicly-Listed Technology Companies (all in NZD millions) as at 22 July 2016 Definitions Name Mkt Cap EV AR EV/AR Yr∆ AR GM% CFY Rev EV/CFY Yr∆ CFY Mkt Cap = Market Capitalisation EROAD 124 111 28 4.0 44% n/a 34 3.3 34% EV = Enterprise Value Finzsoft 20 21 14 1.5 (12%) n/a n/a n/a n/a AR = Annualised Revenue Gentrack 216 204 47 4.4 14% n/a n/a n/a n/a EV/AR = EV/Annualised Revenue multiple GeoOp 14 11 4 2.6 204% 80% n/a n/a n/a Yr∆ AR = Annualised Revenue Growth ikeGPS 33 27 9 3.2 118% 65% 16 1.7 n/a GM% = Gross Margin % Orion Health 771 713 211 3.4 26% 78% 260 2.7 26% CFY Rev = Current Financial Year Revenue Plexure 31 28 5 5.3 70% n/a n/a n/a n/a EV/CFY = EV/CFY Revenue multiple Pushpay 532 520 39 13.4 330% 55% n/a n/a n/a Yr∆ CFY = CFY Revenue Growth Rakon 44 56 109 0.5 (22%) n/a n/a n/a n/a Serko 55 48 13 3.6 20% n/a n/a n/a n/a Disclaimer SLI Systems 50 44 36 1.2 23% 77% 35 1.3 25% The information provided in this report has been solely SmartPay 39 63 21 3.0 - n/a 24 2.6 18% sourced from Factset. Clare Capital holds no Trade Me 2,077 2,195 211 10.4 9% 94% 219 10.0 9% responsibility over the actual and forecast numbers Vista 486 463 76 6.1 28% n/a 93 5.0 43% presented in this report. The forecasts are an average of Wynyard 111 96 25 3.9 (20%) 64% n/a n/a n/a broker forecasts complied by Factset. Xero 2,623 2,438 258 9.5 62% 75% 312 7.8 n/a Total & Average 7,224 7,038 1,106 6.4 Global SaaS company data has been converted to USD and will move with exchange rate changes. Clare Capital Selected Global Publicly-Listed SaaS Companies (all in USD millions) as at 22 July 2016 is not an Authorised Financial Adviser. Name Mkt Cap EV AR EV/AR Yr∆ AR GM% CFY Rev EV/CFY Yr∆ CFY athenahealth 4,915 5,075 1,048 4.8 17% 50% 1,103 4.6 19% This document is intended as analysis – not financial Box 519 391 361 1.1 37% 64% 394 1.0 30% advice. If you are making investment decisions you Salesforce.com 55,928 55,962 7,666 7.3 27% 73% 8,300 6.7 24% should seek appropriate personalised financial advice HubSpot 1,836 1,729 236 7.3 54% 75% 258 6.7 42% from a qualified professional to suit your circumstances. Lifelock 1,541 1,339 637 2.1 18% 75% 667 2.0 13% LogMeIn 1,612 1,438 319 4.5 30% 86% 331 4.3 22% Contact Details Marketo 1,581 1,489 249 6.0 35% 66% 272 5.5 30% Mark Clare Managing Partner New Relic 1,718 1,526 210 7.3 57% 79% 252 6.1 39% +64-21-470227 [email protected] ServiceNow 11,841 11,423 1,224 9.3 44% 68% 1,368 8.4 36% NetSuite 6,815 6,715 866 7.8 31% 67% 966 7.0 30% Clare Capital is a corporate finance advisory firm built on RealPage 2,008 1,989 514 3.9 16% 53% 570 3.5 22% a base of structured fundamental analysis. We provide Shopify 2,226 2,036 289 7.1 93% 52% 345 5.9 69% creative solutions for both origination and analysis Splunk 7,893 6,871 744 9.2 48% 82% 895 7.7 34% mandates. We have a strong track record for the Workday 9,516 7,950 1,381 5.8 38% 68% 1,553 5.1 34% successful execution of commercial transactions. www.clarecapital.co.nz l +6444985104 l Level 18, 125 The Terrace, PO Box 10269, Wellington 6143, New Zealand Page 5 of 41 NZ LISTED TECH UPDATE Source: Clare Capital Data: Factset and Company Reports If you want to be added to the distribution list, please email Mark Clare at [email protected] or call on +64-21-470227 Overview Clare Capital - NZ Listed Tech Update 2 - NZ Tech EVAR Over Time - 20160729 The chart compares the EV/Annualised Revenue multiple for Pushpay (NZX:PAY), Trade Me (NZX:TME) and Xero (NZX:XRO) at the end of their financial years since their IPO. Clare Capital has included semi-annual information for Pushpay as the company has only been listed since 2013. Share Price Movements as at 29 July 2016 Valuation Chart as at 29 July 2016 Name ∆ Price 1Week∆ 1Year∆ Vol. '000s Val. '000s EROAD 2.10 2% (42%) 134 279 Size of the bubble Finzsoft 2.30 - (32%) 0 0 120 represents Enterprise Value. Gentrack 2.99 1% 36% 178 529 GeoOp 0.29 2% (43%) 33 9 Trade Me Pushpay Xero ikeGPS 0.71 9% 8% 377 263 100 Orion Health 4.85 1% 23% 316 1,528 Plexure 0.32 (6%) (17%) 167 55 80 Pushpay 2.58 12% 121% 666 1,676 Rakon 0.23 (2%) (38%) 688 156 Serko 0.67 (11%) (23%) 47 34 60 SLI Systems 0.79 (1%) (1%) 78 62 SmartPay 0.23 - 32% - - Trade Me 5.12 (2%) 53% 3,625 18,951 EV/Annualised Revenue 40 Vista 6.25 3% 11% 451 2,810 Wynyard 0.59 (5%) (61%) 364 218 Xero 19.79 3% 10% 566 11,216 20 Total 7,691 37,785 Average 0% 2% Weighted Ave 2% 17% - - 1 2 3 4 5 6 7 8 9 10 Definitions Financial Years since IPO Price = Share Price Annualised Revenue Growth Rate 1Week∆ = 1 Week Share Price Change 15% 7% 13% 9% 1Year∆ = 1 Year Share Price Change Trade Me Vol.