INVESTMENT BANKING AUGUST 2021 IN THIS ISSUE HUMAN CAPITAL INSIGHT HCM Introduction 2 Human Capital Market Update 4 MERGERS AND ACQUISITIONS, PUBLIC AND PRIVATE FINANCINGS About Us 21 & FINANCIAL ADVISORY SERVICES For Institutional Use Only HUMAN CAPITAL INSIGHT AUGUST 2021 Premier HCM Investment Banking Team CHIP KELSO JON STEELE ZACH SAYERS Managing Director Group Co-Head Vice President [email protected] [email protected] [email protected] +1.404.312.0786 +1.617.519.7114 +1.678.464.8335 EXPERIENCE EXPERIENCE EXPERIENCE EDUCATION EDUCATION EDUCATION PHILIP STEIN EMANUEL BISCHOFBERGER Managing Director, Director, Raymond James Europe Raymond James Europe [email protected] [email protected] +49.89.23.23.77.50 +49.89.23.23.77.47 EXPERIENCE EXPERIENCE EDUCATION EDUCATION RAYMOND JAMES INVESTMENT BANKING 2 HUMAN CAPITAL INSIGHT AUGUST 2021 Representative Transactions Private Equity Transactions Strategic Buyer Transactions August 2021 June 2021 July 2021 March 2021 April 2021 April 2021 December 2020 July 2020 Payroll February 2021 January 2021 April 2020 September 2019 September 2020 June 2020 February 2019 June 2018 February 2020 October 2019 June 2018 October 2017 August 2019 September 2019 October 2017 June 2017 HUMAN CAPITAL INSIGHT HUMAN CAPITAL MARKET UPDATE HUMAN CAPITAL INSIGHT AUGUST 2021 Human Capital Market Update Trading Multiples as of 8/31/2021 TEV / 2021E Revenue TEV / 2021E EBITDA P/E 2021E 22.9x 40x 36.8x 9x 24x 7.7x 35x 8x 18.9x 6.7x 20x 7x 30x 27.1x 24.6x 6x 16x 25x 5x 12.6x 20x 17.2x 12x 9.6x 4x 2.9x 15x 3x 8x 2x 10x 0.5x 1x 4x 5x 0x 0x 0x Software / Outsourcing Transaction Staffing / Software / Outsourcing Transaction Staffing / Software / Outsourcing Transaction Staffing / Internet Services / Data Recruiting Internet Services / Data Recruiting Internet Services / Data Recruiting Processing Services Processing Services Processing Services 1-Year Historical Composite Stock Performance (%) as of 8/31/2021 Staffing / Recruiting Services 55.9% HCM Transaction / Data Processing 46.0% HCM Outsourcing Services 41.2% Staffing / Recruiting Services HCM Software / Internet 31.0% Euro Stoxx 30.4% HCM Transaction / Data Nasdaq 29.6% Processing S&P 500 29.2% Indexed to 100 as of 8/31/2021 HCM Outsourcing Services HCM Software / Internet EuroStoxx Nasdaq S&P 500 Source: CapitalIQ RAYMOND JAMES INVESTMENT BANKING 5 HUMAN CAPITAL INSIGHT AUGUST 2021 Human Capital Market Update Operating / Trading Statistics as of 8/31/2021 Software / Outsourcing Transaction / Staffing / Internet Services Data Processing Recruiting Services 2021E Revenue Growth 5.7% 7.2% 7.5% 10.7% 2022E Revenue Growth 8.4% 5.3% 6.1% 6.5% 2021E EBITDA Margin 22.7% 25.1% 34.1% 5.5% 2022E EBITDA Margin 26.5% 25.8% 37.1% 5.8% % 52 Week High 96.1% 96.8% 96.0% 92.2% Debt / 2021E EBITDA 1.5x 1.4x 2.6x 1.1x Top 3 Performers, by Stock Performance as of 8/31/2021 Software / Outsourcing Transaction / Staffing / Internet Services Data Processing Recruiting Services Last Month Paycor HCM, Inc. 34.4% Alight Inc. 16.8% Gartner, Inc. 16.6% Cross Country Healthcare, Inc. 32.5% Paylocity Holding Corporation 29.8% Insperity, Inc. 11.4% First Advantage Corporation 15.7% RCM Technologies, Inc. 22.4% Docebo Inc. 26.0% TriNet Group, Inc. 11.0% Verisk Analytics, Inc. 6.2% Pasona Group Inc. 20.2% Last 3 Months Docebo Inc. 59.5% TriNet Group, Inc. 22.2% Gartner, Inc. 33.2% Pasona Group Inc. 39.9% Paylocity Holding Corporation 58.5% Insperity, Inc. 19.7% Verisk Analytics, Inc. 16.7% Cross Country Healthcare, Inc. 39.0% Paycom Software, Inc. 48.3% Aon plc 13.2% Equifax Inc. 15.8% RCM Technologies, Inc. 35.3% Last 12 Months Docebo Inc. 121.4% Insperity, Inc. 63.8% Gartner, Inc. 137.8% Gattaca plc 319.2% DHI Group, Inc. 85.6% Automatic Data Processing, Inc. 50.3% Equifax Inc. 61.8% Volt Information Sciences, Inc. 267.5% Paylocity Holding Corporation 82.8% Paychex, Inc. 49.7% Automatic Data Processing, Inc. 50.3% Cross Country Healthcare, Inc. 240.4% Source: CapitalIQ RAYMOND JAMES INVESTMENT BANKING 6 HUMAN CAPITAL INSIGHT AUGUST 2021 HCM Software / Internet: Detailed Valuation Multiples & Metrics Current Balance Sheet Total TEV TEV Price % of 52 Market Enterprise 2021E 2022E 2021E 2022E Market Price 2021E P/E Company 8/31/2021 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2021E EPS 2022E EPS Growth Rate Oracle Corporation $ 89.13 97.1 % $ 248,851.0 $ 290,035.0 7.0 x 6.7 x 14.3 x 14.2 x 18.7 x 18.4 x 6.2 SAP SE 150.14 88.7 177,466.0 187,000.0 5.8 5.5 16.6 16.2 20.7 23.5 NA Intuit Inc. 566.11 97.1 154,694.8 153,304.8 14.1 13.2 NM NM NM 48.7 3.3 Workday, Inc. 273.16 96.6 67,743.7 66,583.6 13.0 11.0 NM NM NM NM 2.9 Wolters Kluwer N.V. 114.99 98.6 29,880.1 32,745.9 5.9 5.7 19.0 17.9 29.9 28.3 5.0 Paycom Software, Inc. 488.90 99.5 28,315.8 28,214.2 27.1 21.8 NM NM NM NM 3.8 Ceridian HCM Holding Inc. 112.35 99.5 16,837.0 17,680.0 17.4 14.9 NM NM NM NM NA Xero Limited 110.93 96.1 16,463.5 16,352.0 23.9 18.1 NM NM NM NM NA Paylocity Holding Corporation 269.20 99.7 14,698.7 14,566.7 20.5 16.7 NM NM NM NM 5.8 The Sage Group plc 10.21 98.3 10,761.4 10,918.4 4.3 4.0 18.9 17.6 32.0 28.7 NM SEEK Limited 23.78 95.3 8,408.9 9,105.1 10.1 12.0 30.6 28.3 NM NM 2.0 Paycor HCM, Inc. 36.95 93.1 6,432.2 6,989.8 20.0 17.9 81.3 82.2 NM NM NM 51job, Inc. 76.80 95.4 5,799.9 4,262.4 6.7 6.2 20.6 18.3 24.3 22.1 NA ZipRecruiter, Inc. 25.19 78.7 2,899.6 2,772.8 4.1 3.5 NM 33.0 NM NM NA Docebo Inc. 83.85 99.8 2,743.9 2,531.2 24.7 17.9 NM NM NM NM NA ATOSS Software AG 214.59 89.6 1,706.7 1,678.5 14.7 13.0 NM NM NM NM 7.1 New Work SE 289.78 83.8 1,628.7 1,601.4 4.8 4.3 14.3 12.8 34.4 31.5 1.7 HealthStream, Inc. 30.39 97.7 958.9 930.7 3.6 3.4 18.8 18.5 NA NM 19.6 Benefitfocus, Inc. 12.07 68.7 402.5 564.4 2.2 2.2 12.5 13.1 NM NM NA Castlight Health, Inc. 1.81 66.8 290.1 240.3 1.7 1.7 NM 27.7 NM NM NM DHI Group, Inc. 4.51 99.3 210.9 227.3 2.0 1.8 9.2 8.1 NM 41.0 3.4 Asure Software, Inc. 9.05 92.8 173.5 172.6 2.4 2.2 26.5 22.1 NM NM 4.9 Limeade, Inc. 0.56 35.4 141.0 114.5 2.2 2.0 NM NM NM NM NA Mean 10.4 x 9.0 x 23.6 x 23.6 x 26.7 x 30.3 x 5.5 Median 6.7 6.2 18.9 18.1 27.1 28.5 4.3 1-Year Historical Stock Performance as of 8/31/2021 HCM Software / Internet 31.0% Euro Stoxx 30.4% Nasdaq 29.6% HCM Software / Internet S&P 500 29.2% Euro Stoxx Indexed to 100 as of 8/31/2021 NASDAQ S&P 500 Source: CapitalIQ RAYMOND JAMES INVESTMENT BANKING 7 HCM Software / Internet Composite: ASUR, ASX:SEK, ASX:LME, BNFT, CSLT, DCBO, DHX, HSTM,INTU, JOBS, LSE:SGE, NZSE:XRO, ORCL, PAYC, PCTY, PYCR, SAP, WDAY, WKL, ETR:AOF, CDAY, ETR:NOW, ZIP HUMAN CAPITAL INSIGHT AUGUST 2021 HCM Software / Internet Sector Growth and Trading Multiples as of 6/30/2021 Quarterly Revenue Growth Historical TEV / LTM Revenue Multiples 5-Year Median = 5.3x Historical TEV / LTM EBITDA Multiples Historical LTM P/E Multiples 5-Year Median = 21.0x 5-Year Median = 37.1x Source: CapitalIQ RAYMOND JAMES INVESTMENT BANKING 8 HCM Software / Internet Composite: ASUR, ASX:SEK, ASX:LME, BNFT, CSLT, CSOD, DCBO, DHX, HSTM, INTU, JOBS, LSE:SGE, NZSE:XRO, ORCL, PAYC, PCTY, SAP, WDAY, WKL, ETR:AOF, CDAY, ETR:NOW, ZIP HUMAN CAPITAL INSIGHT AUGUST 2021 Software / Internet: Selected M&A and Capital Markets Activity DATE TRANSACTION TEV / TYPE ACQUIRER / INVESTOR TARGET / ISSUER ANNOUNCED VALUE ($MM) REVENUE EBITDA 8/31/2021 PP Golub Capital Harri $30 NA NA 8/30/2021 PP Spark Capital Zeal 13 NA NA 8/26/2021 PP BOND and Coatue Workstream 48 NA NA 8/25/2021 PP NextPhase Capital Selerix Systems ND NA NA 8/25/2021 PP Two Sigma Ventures Sora 14 NA NA 8/25/2021 PP Silverton Partners AllVoices 10 NA NA 8/24/2021 PP Wing Venture Capital Tango 6 NA NA 8/23/2021 M&A Paradox Traitify ND NA NA 8/20/2021 PP Level Structured Capital WeSpire 13 NA NA 8/20/2021 PP PSG Vault Verify ND NA NA 8/18/2021 PP Animo Ventures, Bonfire Ventures Prospr 3 NA NA 8/16/2021 PP Square Peg, Hetz Ventures, TechAviv retrain.ai 7 NA NA 8/12/2021 PP Rethink Education Anthill 3 NA NA 8/11/2021 M&A XpertHR Gapsquare ND NA NA 8/10/2021 PP T.