Software industry financial_report_1_q16

Q12016
SEG Capital Advisors, L.L.C.
12220 El Camino Real
Suite 320
San Diego, CA 92130
info@softwareequity.com
(858) 509-2800
The Software Industry
Financial Report

SOFTWARE EQUITY GROUP | Q1 2016 SOFTWARE INDUSTRY FINANCIAL REPORT
Copyright © SEG Capital Advisors, LLC, All Rights Reserved 2
About Software Equity Group
Leaders in Software M&A 5
Extensive Global Reach 6
Leading Market Position
Public SaaS Company Financial and Valuation Performance
The SEG SaaS Index 8
The SEG SaaS Index: Financial Performance 9-11
The SEG SaaS Index: Public Market Multiples 12-14
The SEG SaaS Index by Product Category: Financial Performance 15
The SEG SaaS Index by Product Category: Public Market Multiples 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
The SEG Software Index by Product Category: Public Market Multiples 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
The SEG Internet Index by Product Category: Public Market Multiples 36
SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS

SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS
SaaS/Software Industry M&A Market Update
Software/SaaS M&A Deal Volume and Spending 38
SaaS M&A Deal Volume and Exit Multiples 39-40
SaaS M&A by Product Category 41
SaaS M&A 3Q15 Transactions 42-46
Software M&A Exit Multiples 47
Software M&A by Ownership Structure and Size 48
Software M&A by Vertical and Horizontal Markets 49
Software M&A Deal Volume by Product Category 50
Software M&A Exit Multiples by Product Category 51
Appendix
The SEG SaaS Index: Public Market Multiples (Annual) 53
The SEG SaaS Index: Financial Performance (Annual) 54
The SEG Software Index: Public Market Multiples (Annual) 55
The SEG Software Index: Financial Performance (Annual) 56
The SEG Internet Index: Public Market Multiples (Annual) 57
The SEG Internet Index: Financial Performance (Annual) 58
SEG SaaS Index Key Metrics 59-60
SEG SaaS Index Key Metrics by Product Category 61
SEG Software Index Key Metrics 62-65
SEG Software Index Key Metrics by Product Category 66-67
SEG Internet Index Key Metrics 68-70
SEG Internet Index Key Metrics by Product Category 71
3Q15 Select Public Sellers 72
3Q15 Mega Deals 73
3Q15 Most Active Buyers 74
About Software Equity Group 75

Copyright © SEG Capital Advisors, LLC, All Rights Reserved
ABOUT SOFTWARE EQUITY GROUP

• Industry leading boutique investment bank, founded in 1992,
representing public and private software and internet
companies seeking:
• Strategic Mergers & Acquisitions
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category, delivery model and vertical market
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2,000 private and public companies throughout US, Canada,
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operating, legal and engineering experience
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We Do Deals.
LEADERS IN SOFTWARE M&A

SEG Research Distribution
Current Sell-side Representation
Recent Sell-side Representation
• SEG currently represents software companies in the
United States, Canada, France, Germany, Australia &
Saudi Arabia
• In addition to the countries listed above, SEG has
recently represented software companies in the
United Kingdom, France, Netherlands, Israel, and
South Africa
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Equity Reports and Monthly Flash Reports are
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software company CEOs, software entrepreneurs,
private equity managing directors, VCs, high tech
corporate lawyers, public accountants, etc. in 76
countries.
EXTENSIVE GLOBAL REACH

THE SEG SOFTWARE INDUSTRY FINANCIAL REPORT
PUBLIC SaaS COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG SaaS INDEX
• The SEG SaaS Index tracks public companies that primarily offer
hosted, on-demand software under a subscription and/or transaction
based pricing model.
• The SEG SaaS Index is currently comprised of 64 publicly traded,
pure-play SaaS companies,* up from 17 companies in 1Q08 (the
initial quarter in which we published our SEG SaaS Index).
• See appendix for SEG SaaS Index public market multiples and
financial performance on an annual basis
* See appendix for complete list of companies in the SEG SaaS Index
8
SEG - SaaS: Median Metrics
Measure 1Q15 2Q15 3Q15 4Q15 1Q16
EV/Revenue 6.1x 6.8x 4.7x 4.6x 4.0x
EV/EBITDA 41.2x 36.9x 27.0x 26.0x 33.0x
EV/Earnings 65.9x 58.9x 50.1x 46.3x 73.5x
Gross Profit Margin 65.8% 65.9% 65.8% 66.6% 67.2%
EBITDA Margin -13.6% -11.4% -10.5% -7.4% -6.2%
Net Income Margin -21.6% -17.5% -17.5% -16.1% -16.1%
TTM Revenue Growth 32.5% 32.7% 30.2% 27.7% 28.6%
TTM Total Revenue ($M) $139.8 $150.7 $164.0 $180.4 $196.6
TTM EBITDA Growth 24.4% 29.7% 25.3% 27.5% 20.7%
TTM Total EBITDA ($M) -$11.5 -$9.4 -$9.6 -$9.3 -$11.8
Cash & Eq ($M) $103.0 $106.0 $110.6 $112.0 $106.7
Current Ratio 1.8 1.9 1.9 1.8 1.9
Debt / Equity Ratio 1.0% 1.9% 1.8% 1.4% 1.3%

2%
15%
10%
29%
18%
11%
16%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
%ofCompanies
TTM Revenue Growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
$0
$50
$100
$150
$200
$250
1Q15 2Q15 3Q15 4Q15 1Q16
TTMRevenueGrowth
TTMTotalRevenue
TTM Total Revenue ($M) TTM Revenue Growth
THE SEG SaaS INDEX: FINANCIAL PERFORMANCE
• The median TTM revenue growth rate of Public SaaS companies in 1Q16 was 28.6%, slightly higher than 4Q15’s 27.7% mark. The growth rate has trended
down over the past year as the median TTM revenue base has grown larger.
• Median growth rates alone do not capture the standout performances of the most successful SaaS companies. In Q1, over one fourth of public SaaS
companies grew TTM revenue by 40% or more year over year. As further testament to the widespread and ramping adoption of SaaS, these
outperformers come from a variety of product categories including Healthcare, Human Capital Management, Life Sciences, Service Management, Security,
and Business Intelligence/Analytics. Especially noteworthy were: HortonWorks (164.8%); New Relic (67.5%); Castlight Health (65.1%); Zendesk (64.3%);
Workday (47.5%) and FireEye (46.4%).
• The median TTM revenue of public SaaS companies was $196.6M in 1Q16, a significant YoY increase from 1Q15’s $139.8M. In part, the revenue growth is
attributable to wider, and deeper, enterprise adoption of cloud-based solutions; and in part the revenue growth is inorganic, as the group has become
increasingly acquisitive.
• Salesforce continued to lead the SaaS revenue pack by several lengths, reporting 1Q16 TTM revenue of $6.7B, nearly 6.0x greater than the next largest
public SaaS company. Still, many public SaaS companies have amassed significant TTM revenue (>$350 million) as of 1Q16, a feat made more difficult by a
revenue model that requires deferring a significant percentage of booked revenue. SaaS providers with revenues of $350M+ can now be found among a
wide array of product categories and industry sectors, including Workday (HCM/Financial, $1.2B); AthenaHealth (Healthcare, $924.74M); RealPage (Real
Estate, $468.5M); and Service-Now (IT Service Mgmt., $1.0B). SaaS companies currently below this threshold but expected to generate TTM revenue of
$350M or more over the next few quarters include, among others, Cornerstone OnDemand, FleetMatics & RingCentral.
TTM Revenue Growth Rate Distribution– 1Q16
9
Median Revenue Performance – Quarterly

59%
17% 17%
3% 3%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
%ofCompanies
TTM EBITDA Margin
• Over the past year, public SaaS companies have endeavored to
improve EBITDA margin as revenue growth has slowed and macro
economic concerns have investors worrisome of those generating
significant losses.
• Median EBITDA margin in 1Q16 was -6.2% compared to -13.6% in
1Q15.
• However, a good number of public SaaS companies posting GAAP
losses, due to significant levels of deferred revenue, are indeed
generating positive cash flow from operations. As an example, in Q4
2015 Netsuite posted negative $14.3 million EBITDA, while
generating positive $21.1 million in CFO and a positive $8.4 million
net change in cash during the period.
TTM EBITDA Margin Distribution– 1Q16Median EBITDA Margin Performance – Quarterly
10
(13.6%)
(11.4%)
(10.5%)
(7.4%)
(6.2%)
1Q15 2Q15 3Q15 4Q15 1Q16
EBITDAMargin

Median Margin PerformanceMedian Operating Ratios
11
• OpEx: Public SaaS companies continue to spend heavily on sales & marketing in order to drive revenue growth and capture market share.
• In 1Q16, public SaaS companies invested a median 39.6% of total revenue on sales & marketing, almost double their on-premise counterparts. However,
this represents a modest decline from the 43.4% S&M spend in 1Q15.
• R&D spending as a percent of revenue has held relatively flat year over year (19.0% in 1Q16 vs. 19.4% in 1Q15). That being said, public SaaS companies in
1Q16 spent 3.2% more on R&D as a percent of revenue than their on-premise peers, as they endeavored to expand their offerings, enhance their
technology and platforms, and address new markets.
• On a GAAP basis, operating losses of public SaaS companies bottomed out at a -13.6% median EBITDA margin in 1Q15. Since then, EBITDA margin for the
group has steadily rose to -6.2% as these organizations have pulled back slightly on their investments in sales & marketing and R&D.
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
1Q15 2Q15 3Q15 4Q15 1Q16
%Margin
Gross Profit Margin EBITDA Margin Net Income Margin
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1Q15 2Q15 3Q15 4Q15 1Q16
%ofRevenue
S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue)

THE SEG SaaS INDEX: PUBLIC MARKET MULTIPLES
• At the close of 1Q16, the median market multiple of public SaaS companies was 4.0x EV/Revenue, down from last quarter’s median multiple of 4.6x.
• While nearly one-fifth of the companies in the SEG SaaS Index achieved a median EV/Revenue multiple of 9x or higher in 4Q15, only five percent of our
public SaaS index was valued at 9.0x or higher. Public SaaS companies continued to trade at a premium to their on-premise peers (4.0x vs. 2.5x median
EV/Revenue), however, the spread has shrunk considerably in recent quarters as many high growth SaaS companies, generating significant losses, have
fallen out of flavor with investors. As an example, Marketo which traded as high as 7.5x TTM revenue during the fourth quarter of 2015, saw its valuation
drop as low as 2.8x TTM revenue during 1Q16, despite posting TTM revenue growth of 40% in 2015. The culprit, softer than expected forward guidance
and continued operating losses.
• That said, investors continue to place their bets on the next wave of SaaS category leaders that are positioned to displace incumbent on-premise providers
across multiple product categories. Just as Salesforce did to Siebel years ago in the CRM category – Netsuite (6.9x TTM revenue) and Workday (10.5x TTM
revenue) are displacing legacy vendors in ERP, Paycom (8.9x TTM revenue) and Paylocity (8.3x TTM revenue) are displacing legacy vendors in HR,
Atlassian (11.2x TTM revenue) is displacing legacy vendors in the development tools and IT asset management segment, and ServiceNow (9.4x TTM
revenue) is displacing legacy vendors in IT service & systems management.
EV/Revenue Multiple Distribution– 1Q16Median EV/Revenue and EV/EBITDA Multiples – Quarterly
12
6%
14%
11%
17%
14%
13%
3%
11%
5% 5%
<= 1.0x > 1.0x
<= 2.0x
> 2.0x
<= 3.0x
> 3.0x
<= 4.0x
> 4.0x
<= 5.0x
> 5.0x
<= 6.0x
> 6.0x
<= 7.0x
> 7.0x
<= 8.0x
> 8.0x
<= 9.0x
> 9.0x
%ofCompanies
EV/Revenue
6.1x 6.8x
4.7x 4.6x 4.0x
41.2x
46.6x
36.9x
35.0x
33.0x
1Q15 2Q15 3Q15 4Q15 1Q16
EV/Revenue EV/EBITDA

• In 1Q16, investors continued to reward the fastest growing public SaaS companies, but have begun to penalize those sustaining significant losses. Public
SaaS companies that grew TTM revenue in between 40 - 50% were anointed with the highest median EV/Revenue multiple of 8.0x in 1Q16, compared to
a median market multiple of 7.6x in the prior quarter. Those generating revenue growth greater than 50%, yet sustaining higher losses, were viewed less
favorably.
• Select public SaaS companies exceeding 50% revenue growth in the fourth quarter included HortonWorks (164.8% TTM revenue growth), Hubspot
(56.6% TTM revenue growth), New Relic (67.5% TTM revenue growth), and Zendesk (54.3% TTM revenue growth).
• In past years, investors deemed profitability to be an unacceptable tradeoff for accelerated growth. SaaS companies generating high EBITDA margins were
often penalized with much lower median EV/Revenue multiples as compared to their high growth (often unprofitable) peers. This trend has ameliorated
over the past few quarters as investors have taken stock of current macro economic concerns and placed much higher performance on cash generation.
• While a number of high growth SaaS companies generating negative EBITDA continue to be rewarded by investors (ie. Workday – 47.5% TTM revenue
growth, -15.6% TTM EBITDA Margin, 10.5x TTM revenue multiple), many of those recently favored fast growing and significantly EBITDA negative
companies have seen valuation diminish significantly. Marketo (40%, -26.5%) and HortonWorks (164.8%, -143.3%) have seen their multiples drop from
north of 10.0x revenue in recent quarters to 3.4x and 4.0x, respectively, in 1Q16.
EV/Revenue Multiples vs. TTM EBITDA Margins – 1Q16EV/Revenue Multiples vs. TTM Revenue Growth – 1Q16
13
0.5x
1.5x
2.3x
4.1x 4.3x
8.0x
6.3x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
<= 50%
> 50%
MedianEV/Revenue
TTM Revenue Growth
4.0x 4.0x
3.7x
4.7x
5.0x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
MedianEV/Revenue
TTM EBITDA Margin

Company Ticker EV (Median)
TTM
Revenue
TTM
Revenue
Growth
EV/
Revenue
TTM
EBITDA
EBITDA
Margin
EV/
EBITDA
Atlassian Corp TEAM $4,330.5 $387.3 - 11.2x $15.7 4.1% 275.0x
Workday WDAY $12,149.1 $1,162.3 47.5% 10.5x -181.72 -15.6% -
Service-now.com NOW $9,489.3 $1,005.5 47.3% 9.4x -$106.0 -10.5% -
Ellie Mae ELLI $2,252.2 $253.9 57.2% 8.9x $48.0 18.9% 46.9x
Paycom Software PAYC $1,857.6 $224.7 48.8% 8.3x $42.1 18.7% 44.2x
Paylocity Holding PCTY $1,506.7 $187.6 46.7% 8.0x -$0.4 -0.2% -
The Ultimate Software Group ULTI $4,912.1 $618.1 22.2% 7.9x $64.0 10.3% 76.8x
HubSpot HUBS $1,428.3 $181.9 57.0% 7.9x -$43.7 -24.0% -
Shopify SHOP $1,607.0 $205.2 95.4% 7.8x -$12.0 -5.9% -
Salesforce.com CRM $47,717.1 $6,667.2 24.1% 7.2x $465.8 7.0% 102.5x
Veeva Systems VEEV $2,918.8 $409.2 30.6% 7.1x $88.6 21.6% 33.0x
New Relic NEWR $1,152.2 $162.2 67.5% 7.1x -$52.7 -32.5% -
Netsuite N $5,129.9 $741.1 33.2% 6.9x -$61.7 -8.3% -
Q2 Holdings QTWO $720.9 $108.9 37.6% 6.6x -$16.2 -14.8% -
Athenahealth ATHN $5,459.1 $924.7 22.9% 5.9x $60.9 6.6% 89.7x
Instructure INST $400.1 $73.2 65.0% 5.5x -$49.7 -67.9% -
2U TWOU $804.0 $150.2 36.2% 5.4x -$25.0 -16.6% -
AppFolio APPF $394.3 $75.0 57.3% 5.3x -$12.1 -16.1% -
J2 Global JCOM $3,760.2 $720.8 20.3% 5.2x $292.6 40.6% 12.9x
Medidata Solutions MDSO $2,047.5 $392.5 17.1% 5.2x $40.1 10.2% 51.1x
Demandware DWRE $1,226.0 $237.3 47.8% 5.2x -$34.2 -14.4% -
Fleetmatics FLTX $1,429.9 $284.8 23.0% 5.0x $68.2 24.0% 21.0x
Cornerstone OnDemand CSOD $1,687.6 $339.7 28.9% 5.0x -$60.3 -17.8% -
Ebix EBIX $1,284.4 $265.5 23.9% 4.8x $97.8 36.8% 13.1x
Benefitfocus BNFT $857.5 $185.1 34.7% 4.6x -$45.2 -24.4% -
Qualys QLYS $707.3 $164.3 23.0% 4.3x $39.2 23.8% 18.1x
Textura TXTR $373.1 $86.7 37.7% 4.3x -$7.9 -9.1% -
Callidus Software CALD $732.8 $173.1 26.7% 4.2x $0.4 0.2% 1975.1x
RingCentral RNG $1,211.0 $296.2 34.7% 4.1x -$16.4 -5.5% -
Box BOX $1,235.7 $302.7 39.9% 4.1x -$164.5 -54.3% -
HortonWorks HDP $493.0 $121.9 164.8% 4.0x -$174.7 -143.3% -
MINDBODY MB $406.0 $101.4 44.8% 4.0x -$28.7 -28.3% -
Cvent CVT $745.1 $187.7 32.0% 4.0x $0.9 0.5% 797.8x
SPS Commerce SPSC $622.2 $158.5 23.9% 3.9x $16.6 10.5% 37.5x
Tableau Software DATA $2,490.4 $653.6 58.4% 3.8x -$28.4 -4.3% -
FireEye FEYE $2,209.0 $623.0 46.4% 3.5x -$395.7 -63.5% -
RealPage RP $1,610.6 $468.5 15.8% 3.4x $52.8 11.3% 30.5x
DealerTrack TRAK $107.4 $31.9 39.7% 3.4x $4.4 13.7% 24.5x
Marketo MKTO $703.4 $209.9 40.0% 3.4x -$55.7 -26.5% -
Mimecast MIME $452.1 $135.7 - 3.3x $13.7 10.1% 33.0x
Alarm.com ALRM $633.0 $208.9 24.8% 3.0x $30.2 14.4% 21.0x
Workiva WK $439.2 $145.3 28.9% 3.0x -$39 -27.0% -
HealthStream HSTM $502.4 $209.0 22.4% 2.4x $25.3 12.1% 19.8x
Castlight Health CSLT $179.6 $75.3 65.1% 2.4x -$78.2 -103.8% -
OPOWER OPWR $351.2 $148.7 15.8% 2.4x -$40.3 -27.1% -
inContact SAAS $523.7 $222.0 29.2% 2.4x -$1.5 -0.7% -
ChannelAdvisors ECOM $230.9 $100.6 18.5% 2.3x -$11.5 -11.5% -
Xactly XTLY $155.0 $76.0 24.3% 2.0x -$17 -22.7% -
SciQuest SQI $214.1 $105.4 3.4% 2.0x $8.1 7.7% 26.6x
Apigee Corporation NasdaqGS:APIC $157.7 $79.4 28.3% 2.0x -$42.4 -53.3% -
Amber Road AMBR $119.3 $67.1 3.5% 1.8x -$22.6 -33.6% -
IntraLinks Holdings IL $485.5 $276.2 7.9% 1.8x $8.3 3.0% 58.2x
TrueCar NasdaqGS: TRUE$403.3 $259.8 25.7% 1.6x -$37.1 -14.3% -
Upland Software UPLD $104.9 $69.9 8.3% 1.5x $0.7 1.0% 153.6x
Tangoe TNGO $279.2 $219.4 5.7% 1.3x $9.6 4.4% 29.0x
LivePerson LPSN $274.9 $239.0 13.9% 1.2x $17.0 7.1% 16.2x
Bazaarvoice BV $224.6 $197.4 6.1% 1.1x -$18.2 -9.2% -
Halogen Software TSX:HGN $72.4 $65.7 15.9% 1.1x -$4.0 -6.0% -
Jive Software JIVE $162.1 $195.8 9.6% 0.8x -$21.0 -10.7% -
Marin Software MRIN $82.7 $108.5 9.2% 0.8x -$21.1 -19.4% -
Medical Transcript MTBC $14.2 $23.1 26.1% 0.6x -$1.5 -6.5% -
Covisint COVS $43.2 $79.5 -11.2% 0.5x -$19.8 -24.9% -
Top 25%
Bottom 25%
• When the SEG SaaS Index is segmented on
the basis of median EV/Revenue multiple,
the top 25% boasted an impressive median
7.9x in 1Q16, albeit down from 4Q15’s 9.8x
multiple.
• These SaaS high flyers are market leaders in
a wide array of SaaS categories including
development tools (Atlassian); ERP
(Workday); Service Management
(ServiceNow); Human Capital Management
(Paycom); Marketing Automation
(Hubspot); eCommerce (Shopify); and
Analytics (New Relic).
• The median TTM revenue growth rate of
those in the top 25% percentile was 47%.
Seven companies in the top rank generated
positive EBITDA margin in 1Q16 (Atlassian,
Ellie Mae, Paycom, Ultimate Software,
Salesforce, Veeva Systems & AthenaHealth).
• In contrast, the median TTM revenue
growth rate of those comprising the bottom
25% of EV/Revenue multiples was 9.2%. In
addition to lagging revenue growth, the
bottom quartile posted median TTM
revenue of $105.4M, roughly one fourth that
of the top quartile ($387.3). Clearly, growth
and size remain key inputs to public SaaS
valuations.
14

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
FINANCIAL PERFORMANCE (YOY COMPARISON)
1Q16 Median TTM Revenue Growth
1Q16 Median TTM EBITDA Margin
15
28.0%
23.9%
33.4%
27.8%
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
(14.3%)
(8.3%)
0.1%
(3.1%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
28.5%
27.0%
39.1%
31.2%
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Workforce
Management
(12.1%)
(2.1%)
7.2%
(7.3%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Workforce
Management

THE SEG SaaS INDEX BY PRODUCT CATEGORY:
PUBLIC MARKET MULTIPLES
• As the SaaS delivery model matures, investors are favoring newer, vertically oriented, best of breed providers that are rapidly gaining share in large
vertical markets, often at the expense of larger, slower and less vertically focused SaaS and on-premise providers. Public SaaS companies comprising
Vertically Focused category posted the highest median public market multiple (5.0x EV/Revenue) of our four SaaS tracking categories in 1Q16. The
category was led by Ellie Mae (8.9x EV/Revenue multiple) and Veeva Systems (7.1x EV/Revenue).
• The market success of Vertically Focused SaaS companies was largely attributable to their ability to post strong revenue growth and avoid posting
significant losses. It was the only category not to post negative median EBITDA margin in 1Q16, albeit generating close to break-even 0.1% median
EBITDA Margin. The category was buoyed by standouts such as Veeva Systems (30.6% revenue growth, 21.6% EBITDA Margin), Ellie Mae (57.2%
revenue growth, 18.9% EBITDA Margin), EBIX (23.9% revenue growth, 36.8% EBITDA margin), and DealerTrack (39.7% revenue growth, 13.7% EBITDA
Margin).
1Q16 YoY Change in Median EV/Revenue1Q16 Median EV/Revenue Multiple
16
3.7x
3.9x
5.0x
4.8x
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management
(54.6%)
(46.3%)
(26.1%)
(25.9%)
CRM &
Marketing
ERP &
Supply Chain
Vertically
Focused
Human
Capital
Management

THE SEG SOFTWARE INDEX
PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG SOFTWARE INDEX
• The SEG Software Index tracks public software companies that
primarily offer on-premise software under a perpetual license with
annual M&S.
• The SEG Software Index is currently comprised of 127 public
software companies*, down from 218 in 1Q08 (the quarter in which
we began publishing individual Software, SaaS and Internet indices.
• The number of public companies comprising the SEG Software Index
has declined steadily over the past ten years, as many on premise
providers have been acquired, taken private or migrated to a SaaS
business model.
• See appendix for SEG Software Index public market multiples and
* 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
SEG - Software: Median Metrics
Measure 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 16.3x 15.9x 14.8x 15.2x 14.4x
EBITDA Margin 17.9% 17.9% 17.9% 17.8% 17.7%
Net Income Margin 8.0% 7.9% 8.6% 7.5% 8.2%
TTM Total EBITDA ($M) $99.3 $93.1 $95.5 $95.2 $99.2
Cash & Eq ($M) $225.3 $225.3 $244.7 $251.3 $258.2
Current Ratio 1.9 1.9 1.9 1.9 1.9

THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE
• After falling sharply in 4Q15, the median TTM revenue growth rate of
public on-premise software companies rose to 7.6% in 1Q16.
• Nearly one in five of the public on-premise software companies
comprising the SEG Software Index reported negative revenue growth
in Q1; more than half grew revenue by a meager 10% or less.
However, a portion of this revenue growth can be attributed to a
conversation to SaaS pricing and the significant accompanying
deferred revenue. It is rumored that Oracle, SAP and Microsoft now
have $1B+ SaaS businesses.
• Predictably, the few public on-premise software companies growing
revenue 30%+ were focused on two of IT’s hottest product categories:
security (Palo Alto Networks, 55.6%) and mobility (Momo, 199.4%).
TTM Revenue Growth Rate Distribution – 1Q16Median Revenue Performance – Quarterly
19
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
$0
$100
$200
$300
$400
$500
$600
$700
$800
1Q15 2Q15 3Q15 4Q15 1Q16
TTMRevenueGrowth
TTMTotalRevenue
23%
33%
21%
6% 6%
10%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM Revenue Growth

• Slowed growth has prompted most on-premise companies to maintain a
keen eye on expenses. The median EBITDA margin of public on-premise
software companies has remained steady (at or above 17%) the past six
quarters.
• Nearly 45% of public on-premise software companies achieved EBITDA
margins of 20% or better in the fourth quarter.
• Check Point Software, a security software provider, lead the pack once
again in 1Q16 with an EBITDA margin of 52.3%. Check Point’s
extraordinary profitability can be attributed in part to a strong, well-
performing channel that reduces its cost of sales.
TTM EBITDA Margin Distribution – 1Q16Median EBITDA Margin Performance – Quarterly
20
17.9% 17.9% 17.9% 17.8% 17.7%
1Q15 2Q15 3Q15 4Q15 1Q16
EBITDAMargin
18%
15%
24%
26%
12%
6%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM EBITDA Margin

21
• OpEx: Median spending on operations by public on-premise software companies in 1Q16 was consistent with historic norms: 15.8% for Research &
Development, 23.1% for Sales & Marketing, and 10.7% for General & Administrative.
• Over the past year, median S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat.
• Median S&M spending as a percent of total revenue by on-premise public software companies lagged far behind their SaaS counterparts, which
continued to place significant bets on new customer acquisition (23.1% for on-premise vs. 39.6% for SaaS).
66.7% 65.1% 64.7% 64.8% 64.0%
17.9% 17.9% 17.9% 17.8% 17.7%
8.0% 7.9% 8.6% 7.5% 8.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
1Q15 2Q15 3Q15 4Q15 1Q16
%Margin
0%
5%
10%
15%
20%
25%
1Q15 2Q15 3Q15 4Q15 1Q16
%ofRevenue

• The EV/Revenue multiples of smaller public on-premise software
companies – those with revenues <$100 million – lagged well behind
their larger counterparts.
• During 1Q16, the EV/Revenue median public market multiples fell for
all but the largest companies (those with $1 billion of revenue or
greater), another indication that investors are comforted by size and
incumbency and willing to ignore slowed growth amidst economic
uncertainty.
THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES
• The median EV/Revenue market multiple for public on-premise
software providers was 2.5x in 1Q16.
• The 2.5-3.0x median EV/Revenue multiple that’s prevailed over the
past five quarters, despite lackluster growth, reflects the importance
of stability and profitability to investors in the current market.
• The higher EV/Rev multiple premium enjoyed by companies with
revenue over $1 billion expanded in the first quarter as investors
have found safety in less risky assets.
• We believe investors will continue to find comfort in large cap on-
premise software companies in 2Q16 as a hedge against global
economic concerns and slower projected IT spend and software
companies revenue growth.
EV/Revenue Multiples by Size (TTM Revenue) – QuarterlyMedian EV/Revenue and EV/EBITDA Multiples – Quarterly
22
2.9x 2.9x 2.6x 2.8x 2.5x
16.3x 15.9x
14.8x 15.2x
14.4x
1Q15 2Q15 3Q15 4Q15 1Q16
MedianMultipe
EV/Revenue EV/EBITDA
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
1Q15 2Q15 3Q15 4Q15 1Q16
MedianEV/Revenue
Revenue Greater Than $1 billion
Revenue Between $500 million & $1 billion
Revenue Between $100 million & $500 million
Revenue Less Than $100 million

THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES
• While market performance of on-premise public software companies
remains closely correlated with their ability to sustainably drive
profits, a select group of companies able to generate significant
revenue growth in Q1 were rewarded by the street with a median
5.9x EV/Revenue multiple.
• Members of Q1’s 30%+ growth club that rewarded investors
handsomely during the quarter came from a number of product
categories, including Business Intelligence and Security: Splunk
(48.3% TTM revenue growth, 7.6x EV/Revenue), Palo Alto Networks
(55.6% TTM revenue growth, 11.0x EV/Revenue), and Proofpoint
(35.7% TTM revenue growth, 7.7x EV/Revenue).
• As in quarters past, the median market multiples of on-premise
software companies generally reflected their median operating
margins.
• On premise providers with a median EBITDA margin >40% received
an EV/Revenue multiple more than four times higher than those
generating EBITDA margins less than 10%.
• On-premise providers with EBITDA margins greater than 40%
included: Check Point Software (52.3% EBITDA margin, 8.2x
EV/Revenue multiple); Aspen Technology (44.4%, 5.7x EV/Revenue);
MSCI (44.8%, 7.1x EV/Revenue); and Evertec (45.0%, 4.5x
EV/Revenue).
23
2.0x
2.9x
2.3x
2.0x
3.9x
5.9x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM Revenue Growth
1.2x
1.8x 2.0x
3.0x
4.0x
7.1x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM EBITDA Margin

THE SOFTWARE INDEX BY PRODUCT CATEGORY
• 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. For example, Financial and Accounting providers saw median EV/Revenue decrease from 4.0x in
4Q15 to 3.3x in 1Q16, despite posting higher median revenue growth and EBITDA margin over the same period.
• See Appendix for the complete list of companies within each product category.
SEG Software Index
Category
EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin
1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16
Billing & Service Management 1.8x 2.0x 2.1x 2.1x 2.0x 10.3x 10.4x 9.3x 9.7x 8.8x 18.3% 7.6% 3.1% -0.4% 0.2% 26.6% 27.1% 27.2% 23.9% 21.2%
Business Intelligence 3.3x 3.3x 3.2x 3.1x 2.8x 19.2x 19.0x 17.4x 16.9x 14.9x 9.5% 10.3% 11.4% 10.1% 10.0% 12.8% 12.4% 18.5% 17.2% 14.9%
Development Platforms 2.2x 2.8x 3.0x 2.9x 2.7x 12.5x 10.9x 11.0x 10.2x 9.1x 4.5% 7.2% 10.6% 11.5% 11.1% 18.5% 18.9% 19.0% 18.6% 17.7%
Engineering & PLM 3.2x 3.0x 3.2x 3.3x 3.3x 16.9x 15.0x 16.5x 16.5x 15.6x 8.3% 8.7% 8.4% 7.5% 0.7% 20.8% 21.4% 22.9% 22.4% 19.3%
Enterprise Resource Planning 3.8x 3.8x 4.2x 4.2x 3.9x 16.5x 16.8x 14.2x 13.2x 15.3x 2.5% 2.3% 4.8% 6.1% 6.1% 28.3% 28.3% 27.2% 27.1% 27.1%
Financial & Accounting 4.2x 3.9x 4.4x 4.0x 3.3x 16.6x 16.5x 15.8x 16.6x 15.9x 3.4% 4.2% 5.4% 4.7% 6.1% 23.3% 22.3% 22.3% 22.6% 24.9%
Gaming 2.2x 2.1x 2.4x 2.5x 2.1x 17.6x 16.3x 19.3x 16.2x 18.0x -2.2% 2.6% 6.0% 4.4% 8.4% 19.0% 13.0% 9.2% 9.1% 10.8%
Healthcare 2.2x 2.1x 2.1x 2.1x 2.0x 16.4x 14.5x 15.4x 15.2x 14.8x 5.1% 8.0% 10.0% 9.9% 6.6% 12.1% 12.7% 12.4% 12.8% 12.5%
IT Conglomerates 3.8x 3.8x 4.0x 4.2x 3.9x 8.9x 8.9x 10.1x 10.4x 9.6x 2.5% -0.1% -1.1% -3.5% -4.3% 31.0% 30.0% 29.3% 29.3% 27.5%
Mobile Solutions/Content 1.9x 2.1x 2.0x 2.0x 1.7x 17.5x 14.8x 16.8x 19.1x 25.4x 31.0% 30.4% 25.5% 19.4% 17.3% 1.7% 1.0% -3.7% 1.3% 1.3%
Networking & Network
Performance Management
2.5x 1.8x 2.1x 2.1x 1.9x 14.0x 10.3x 9.2x 9.5x 9.5x 17.5% 14.7% 4.3% 4.9% 5.0% 17.7% 18.4% 19.5% 18.0% 12.7%
Security 3.8x 3.5x 3.2x 3.1x 3.2x 16.8x 16.3x 14.3x 9.9x 12.3x 18.9% 12.6% 8.8% 16.2% 25.4% 4.8% 4.7% 4.7% 3.8% 3.3%
Storage, Data Management &
Integration
2.2x 2.0x 2.1x 2.1x 2.0x 8.2x 8.6x 9.3x 9.7x 9.5x 1.1% 3.1% 1.5% 2.8% 1.7% 16.0% 14.3% 12.1% 11.3% 10.7%
Systems Management 3.9x 3.6x 4.0x 3.5x 2.9x 18.1x 15.9x 17.3x 15.9x 13.2x 15.9% 14.4% 5.6% 11.4% 10.1% 24.6% 25.1% 25.7% 24.7% 25.9%
Vertical - Finance 5.0x 5.2x 5.3x 5.3x 5.0x 14.9x 15.1x 15.3x 15.8x 14.5x 7.7% 8.6% 7.1% 6.6% 7.4% 33.7% 34.4% 34.8% 32.7% 32.9%
Vertical - Other 5.4x 4.9x 5.1x 5.0x 4.5x 35.2x 30.8x 31.0x 28.0x 19.3x 16.3% 13.3% 14.1% 12.5% 13.9% 11.9% 12.9% 13.9% 14.9% 16.4%
Median 2.9x 2.9x 2.6x 2.8x 2.5x 16.3x 15.9x 14.8x 15.2x 14.4x 8.4% 8.6% 8.0% 6.9% 7.6% 17.9% 17.9% 17.9% 17.8% 17.7%

THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
FINANCIAL PERFORMANCE (YoY COMPARISON)
0.2%
10.0%
11.1%
0.7%
6.1%
6.1%
8.4%
6.6%
(4.3%)
17.3%
5.0% 25.4%
1.7%
10.1%
7.4%
13.9%
Billing & Service Management
Business Intelligence
Development Platforms
Engineering & PLM
Enterprise Resource Planning
Financial & Accounting
Gaming
Healthcare
IT Conglomerates
Mobile Solutions/Content
Networking & Network Performance…
Security
Storage, Data Management & Integration
Systems Management
Vertical - Finance
Vertical - Other
21.2%
14.9%
17.7%
19.3%
27.1%
24.9%
10.8%
12.5%
27.5%
1.3%
12.7%
3.3%
10.7%
25.9%
32.9%16.4%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
18.3%
10.0%
4.5%
8.3%
2.5%
5.2%
(3.2%)
3.9%
2.5% 22.9%
17.5%
18.7%
3.2%
16.3%
5.6%
16.3%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
26.6%
15.7%
18.7%
20.9%
28.4%
23.3%
18.5%
16.0%
34.2%
3.8%
9.9%
6.7%
17.3%
25.4%
30.3%
11.9%
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Networking & Network…
Security
Storage, Data Management &…
Systems Management
Vertical - Finance
Vertical - Other

• In 1Q16, ten product categories achieved median EV/Revenue multiples above the SEG Software Index median of 2.5x, led by Vertical Finance (5.0x), and
Vertical Other (4.5x), and Enterprise Resource Planning (3.9x). Select providers comprising the Vertical Finance category include MSCI, SS&C, Fidessa,
and Broadridge Financial.
• Six product categories posted median TTM growth rates of 10% or higher in 1Q16 – Business Intelligence, Development Platforms, Mobile, Security,
Systems Management and Vertical-Other. In comparison, each public SaaS category posted median TTM revenue growth in excess of 23%. The IT
conglomerates category was the only category to post negative TTM revenue growth (-4.3%) in Q1, as these massive software companies have struggled
to compete against new cloud and mobility providers.
THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY:
Median 1Q16 YoY Change in EV/Revenue1Q16 Median EV/Revenue Multiples
2.0x
2.8x
2.7x
3.3x
3.9x
3.3x
2.1x
2.0x
3.9x
1.7x
1.9x
3.2x
2.0x
2.9x
5.0x
4.5x
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other
8.6%
(15.1%)
26.2%1.2%
0.4%
(21.9%)
(1.8%)
(10.9%)
0.4%
(11.4%)
(25.1%)
(14.7%)
(8.9%)
(25.2%)
(1.2%)
(17.0%)
Engineering & PLM
Gaming
Healthcare
IT Conglomerates
Security
Systems Management
Vertical - Finance
Vertical - Other

THE SEG INTERNET INDEX
PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE AND MARKET MULTIPLE TRENDS

THE SEG INTERNET INDEX
• The SEG Internet Index tracks public companies that primarily offer
B2C and B2B solutions over the Internet using a wide array of pricing
models.
• The SEG Internet Index is currently comprised of 98 public Internet
companies*.
• See appendix for SEG Internet Index public market multiples and
* See appendix for complete list of companies in the SEG Internet Index
28
SEG - Internet: Median Metrics
Measure 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 17.2x 20.2x 16.9x 18.6x 18.2x
EBITDA Margin 7.8% 7.9% 6.7% 6.9% 7.4%
Net Income Margin 0.0% 0.2% 0.0% -0.3% -0.4%
TTM Total EBITDA ($M) $24.6 $27.4 $26.7 $22.9 $30.3
Cash & Eq ($M) $184.8 $187.5 $185.4 $162.0 $208.3
Current Ratio 2.2 2.3 2.4 2.3 2.3

THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE
• Approximately 60% of the companies comprising the SEG Internet
Index offer online services and solutions primarily or exclusively to
consumers; their revenue growth typically lags a quarter behind the
performance of the U.S. economy.
• After rising from 18.3% growth in 1Q15 to 18.4% in 2Q15 median
TTM revenue growth of the SEG Internet Index is down considerably
over the past three quarters.
• Once again demonstrating the Internet is an ecosystem of unequals,
20% of public Internet providers far outpaced the pack, posting TTM
revenue growth greater than 40% in 1Q16. These high flyers
included 58.com (169.8%), BitAuto Holdings (63.1%), and YY
(60.3%).
• Conversely, 40% of public Internet companies struggled to advance,
reporting TTM revenue growth of 10% or less in 1Q16. The slow
growers included Priceline, Yahoo!, Limelight Networks, Brightcove,
and Monster Worldwide.
TTM Revenue Growth Rate Distribution – 1Q16Median Revenue Performance – Quarterly
29
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
$400
$420
$440
$460
$480
$500
$520
$540
1Q15 2Q15 3Q15 4Q15 1Q16
TTMRevenueGrowth
TTMTotalRevenue
19%
21% 21%
11%
6%
20%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM Revenue Growth

• After declining from 7.9% in 2Q15 to 6.7% in 3Q15, the median
EBITDA margin of the SEG internet Index has risen slowly over the
last two quarters and roughly 30% of SEG Internet Index companies
were unprofitable in 1Q16.
• At the other end of the spectrum, 3% of public Internet companies,
mostly those with significant transaction or advertising revenue,
achieved EBITDA margins above 40%, led by VeriSign (63.0%),
Facebook (46.0%) and Tencent Holdings (41.8%).
• With few exceptions, many of the most profitable public Internet
companies reported stellar TTM revenue growth. Among them were
Tencent Holdings (41.8% EBITDA margin, 30.3% revenue growth);
Facebook (46.0% EBITDA margin, 43.8% revenue growth) and
Baidu.com (23.6% EBITDA margin, 35.3% revenue growth).
TTM EBITDA Margin Distribution – 1Q16Median EBITDA Margin Performance – Quarterly
30
7.8% 7.9%
6.7% 6.9%
7.4%
1Q15 2Q15 3Q15 4Q15 1Q16
EBITDAMargin
28%
30%
16%
11% 11%
3%
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
%ofCompanies
TTM EBITDA Margin

31
• OpEx: Median spending on operations by public Internet companies in 1Q16 was consistent with historic norms: 13.8% for Research & Development,
25.1% for Sales & Marketing, and 12.5% for General & Administrative.
• Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained relatively flat.
• The median R&D spend as a percent of total revenue was the lowest among our three tracking indices.
• Public internet companies have kept their cost structures in line, resulting in a median EBITDA margin of 7.4% in 1Q16. For the past year, median
EBITDA margin for the Internet Index has hovered around 7-8%.
0%
5%
10%
15%
20%
25%
30%
1Q15 2Q15 3Q15 4Q15 1Q16
%ofRevenue
0%
10%
20%
30%
40%
50%
60%
70%
1Q15 2Q15 3Q15 4Q15 1Q16
%Margin

THE SEG INTERNET INDEX: PUBLIC MARKET MULTIPLES
• The median public market EV/Revenue multiple of public Internet providers closed 1Q16 at 1.9x, on par with 4Q15 and slightly lower than the third
quarter. Roughly 51% of public Internet companies closed Q1 with an EV/Revenue multiple of 2.0x or less.
• That said, investors in Q1 continued to richly reward the most rapidly growing and most promising Internet providers, especially those that generated
significant revenue from online advertising and ecommerce. 11% of companies closed the quarter with a market multiple of 7.0x EV/Revenue or higher,
including Wowo Limited (19.3x EV/Rev), Facebook (16.3x EV/Rev) , 58.com (10.8x EV/Rev) and RenRen (16.6x EV/Rev).
Median EV/Revenue Multiple Distribution – 1Q16Median EV/Revenue and EV/EBITDA Multiples – Quarterly
32
2.0x 2.2x 2.0x 1.9x 1.9x
17.2x
20.2x
16.9x
18.2x 18.2x
1Q15 2Q15 3Q15 4Q15 1Q16
EV/Revenue EV/EBITDA 31%
20%
10%
8%
11%
4%
3%
2% 2%
7%
<= 1.0x > 1.0x
<= 2.0x
> 2.0x
<= 3.0x
> 3.0x
<= 4.0x
> 4.0x
<= 5.0x
> 5.0x
<= 6.0x
> 6.0x
<= 7.0x
> 7.0x
<= 8.0x
> 8.0x
<= 9.0x
>= 9.0x
%ofCompanies
EV/Revenue

THE SEG INTERNET INDEX: PUBLIC MARKET MULTIPLES
• Here, too, investors favored growth, albeit not to the extend of software and SaaS vendors. Public Internet companies with TTM revenue growth of 40% or
higher had a median EV/Revenue multiple of 4.8x in Q1, compared to less than 1.7x for their slower growing (<20%) peers. The outperformers included
GrubHub (42.5%, 4.4x EV/Revenue); Twitter (58.1%, 4.5 x EV/Revenue); 58.com (169.8%, 10.8x EV/Revenue); and Facebook (43.8%, 16.3x
EV/Revenue).
• Investors in public Internet companies kept a keen eye on margins, and rewarded more profitable performers with significantly higher public market
multiples. Public Internet companies with EBITDA margins above 40% posted a median EV/Revenue multiple of 6.8x in 1Q16, over 3.5x higher than the
overall Index median.
• When valuing Internet vs. SaaS stocks, investors have clearly taken into consideration the likely longevity of the customer relationship and associated
recurring revenue, and the nature and extent of switching costs. By those measures, the likely lifetime value of a SaaS customer appears to greatly
outweigh the perceived value of an online consumer.
33
0.9x
1.2x
1.9x 1.7x
4.9x 4.8x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM Revenue Growth
1.1x
1.4x 1.5x
4.0x
4.7x
6.8x
<= 0% > 0%
<= 10%
> 10%
<= 20%
> 20%
<= 30%
> 30%
<= 40%
> 40%
MedianEV/Revenue
TTM EBITDA Margin

Ad Tech Commerce Content & Media Gaming
Infrastructure Services Social Travel
• 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.
THE SEG INTERNET INDEX BY PRODUCT CATEGORY
34
Search

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
FINANCIAL PERFORMANCE
35
14.7%
17.1%
10.2%
13.3%
4.9%
15.7%
19.2%
39.3%
12.5%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
4.0%
2.1%
7.1%
32.2%
8.1%
25.9%
7.7%
14.8%
8.9%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
21.0%
17.8%
12.1%
22.7%
5.3%
23.7%
28.2%
58.4%
22.5%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
3.3%
7.8%
12.2%
13.1%
6.0%
33.4%
6.5%
10.5%
13.8%
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel

THE SEG INTERNET INDEX BY PRODUCT CATEGORY:
• Public Internet companies comprising the Social product category closed Q1 with a median revenue growth rate of 39.3%, roughly 2.7x the overall
Internet median growth rate of 14.2%. Conversely, the Infrastructure category posted median growth of 4.9%, roughly one third the index median.
• Public Internet companies comprising the Search category closed 1Q16 with the highest median EV/Revenue multiple, 5.1x, led by Google (5.8x) and
Yandex (4.9x).
• The success social media Internet providers have had monetizing their services, largely through advertising, has come at the expense of many in the Ad
Tech space, with marketers clearly favoring the scalability and ROI of advertising on larger platforms.
• Companies within the Search and Gaming product categories continued to be very profitable in Q1, posting median EBITDA margin of 25.9% and 32.2%,
respectively.
• Eight of nine product categories experienced a decline in YoY EV/Rev multiples.
Median 1Q16 YoY Change in EV/Revenue1Q16 Median EV/Revenue Multiples
36
1.1x
1.1x
2.1x
2.8x
1.2x
5.1x
1.6x
4.5x
4.4x
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel
(29.6%)
(9.3%)
(24.5%)
2.1%
(16.7%)
(17.8%)
(19.6%)
(54.4%)
(20.1%)
Ad Tech
Commerce
Content & Media
Gaming
Infrastructure
Search
Services
Social
Travel

SOFTWARE INDUSTRY M&A MARKET UPDATE

Average On-Premise Software Deal SizeU.S. Software Mergers & Acquisitions Activity
• There were 533 reported software M&A transactions in 1Q16, a modest decline from 3Q15’s 547 software M&A transactions. However, the first quarter
tally will likely increase by approximately 15 – 20 transactions as unpublicized deals are added. The fourth quarter also marks the fifth consecutive
quarter in which transaction volume has eclipsed 500 deals, a sign of the continued bull market in software M&A.
• Software M&A spending in 1Q16 totaled $43.4 billion, up from Q4 2015’s $34.0 billion aggregate price tag, and equaled the prior Q4’s twelve mega deals
(EV>500M). The largest announced M&A transaction in the quarter was private equity firm Veritas Capitali’s exit of healthcare analytics portfolio
company Truven Holdings to IBM’s Watson division ($3.6 billion EV, 5.8x TTM revenue). Other notable megadeals in Q1 included Cisco’s acquisition of
cloud IOT provider, Jasper Technologies ($1.4 billion), private equity firm Golden Brick’s acquisition of mobile infrastructure software provider, Opera
Software ($1.3 billion, 2.0x TTM revenue), and Siemens’ acquisition of engineering and simulation software provider, CD-adapco ($970 million, 4.9x TTM
revenue).
• We see the robust volume of mega-deals and increasing average deal size ($70 million in 1Q16) as a sign of continued bullishness amongst software
industry buyers.
1Q16 SOFTWARE / SAAS M&A DEAL VOLUME AND SPENDING
38
*Note – total deal value reported for transactions with publicly disclosed financial metrics
$36 $35
$40
$43
$53 $54
$65
$60
$52 $54 $53
$59
$70
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
TTMAverageDealValue(Millions)
394
431
444 455
460
517
488
505 513
587
570 556
533
$9.9
$20.8 $20.2
$22.8
$31.4
$26.6
$43.5
$17.7
$17.7
$34.8
$45.5
$34.0
$43.4
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
0
100
200
300
400
500
600
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Value(BIllions)
NumberofDeals
Deals Value

Median SaaS EV/Revenue Exit MultiplesSaaS M&A Volume
• There were 180 SaaS M&A transactions in 1Q16, the most on record for any quarter. Since 3Q13, each quarter has set a new high for SaaS M&A transaction
activity.
• The median TTM EV/Revenue multiple for SaaS companies was 4.6x in 1Q16, up from 3.4x in 1Q15. With public SaaS company median EV/Revenue
declining from 6.1x to 4.0x over the same time period, we would not be surprised to see a pull back in M&A activity and valuations in the near future as the
private markets historically take cue from the public markets, often lagging by six to nine months.
• Select TTM SaaS transactions posting exit multiples well above the median included Visma’s 1Q16 purchase of FortNox AB for $163 million (~9.4x TTM
revenue); Decision Resources’ 1Q16 acquisition of Adaptive Software for $24.5 million (7.7x TTM revenue), Neustar’s 4Q15 acquisition of MarketShare
Partners for $450 million (7.9x TTM revenue), Thales eSecurity’s 4Q15 acquisition of Vormetric for $400 million (7.5x TTM revenue), Pandora’s 4Q15
acquisition of Ticketfly for $480 million ($8.7 million), and Zillow’s 3Q15 acquisition of DotLoop for $108 million (7.2x TTM revenue).
SaaS M&A: DEAL VOLUME AND MEDIAN EXIT MULTIPLES
39
86
104 97 103 104 108
118
132 134
150157160
180
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
20
40
60
80
100
120
140
160
180
200
SaaSM&ADealsasa%ofTotal
SoftwareM&ADeals
#ofSaaSM&ADeals
SaaS M&A Deals SaaS as % of Software
3.4x
3.7x 3.7x
4.2x
4.6x
1Q15 2Q15 3Q15 4Q15 1Q16

EV/Revenue By Seller Size (Last 3 Years)
SaaS M&A: MEDIAN EXIT MULTIPLES
40
2.7x
3.6x
3.8x
4.5x 4.7x 4.6x
<5M 5M-10M 10M-20M 20M-50M 50M-100M 100M+
6.0% 5.1%
20.5%
18.8%
17.1%
9.4%
23.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
<= 1.0x > 1.0x &
<= 2.0x
> 2.0x &
<= 3.0x
> 3.0x &
<= 4.0x
> 4.0x &
<= 5.0x
> 5.0x &
<= 6.0x
> 6.0x
TTM Revenue Exit Multiple Bins
%ofDeals-Last3Years
Median EV/Revenue Exit Multiple Distribution
Seller Revenue ($)
EV/Revenue
• Over the past three years, 11.1% of all SaaS targets were acquired for
2.0x TTM or less, and 31.6% for 3.0x or less. In comparison, over 60%
of TTM on-premise software transactions received valuations of 3.0x
TTM revenue or less.
• 23.1% of SaaS targets were acquired for 6.0x or more, when analyzing
SaaS transactions over the past three years.
• While 1Q16’s 4.6x median multiple impressed, it is important to
assess SaaS multiples on the basis of seller size.
• When analyzing SaaS transactions over the past three years, those
companies exhibting scale fetched much high price tags than those
less proven. Companies generating revenue of less than five million
received a median multiple of 2.7x TTM revenue, while those larger
than $20M fetched a median multiple of 4.5x TTM revenue or greater.
•
*Note – Analyzed last three years SaaS transactions in order to generate meaningful sample size

BI, Risk & Compliance
5.6%
Content & Document
Mgmt
1.1%
CRM, Marketing & Sales
18.3%
Data Mgmt/Integration
0.6%
Dev. Tools & IT Asset
Mgmt
2.8%
eCommerce
3.9%
Engineering & PLM
1.1%
ERP
0.6%
HR & Workforce Mgmt
10.6%
Messaging, Conferencing
& Communications
7.8%
Multimedia, Graphics &
Communications
2.2%
Network Performance
Mgmt
2.2%
Security
0.6%Systems Mgmt
5.0%
Supply Chain Mgmt &
Logistics
2.2%
Education
2.8%
Financial Services
3.9%
Healthcare
2.2%
Hospitality
1.1%
Insurance
1.1%
Legal
1.1%
Manufacturing
1.1%
Non-Profit
1.7% Oil&Gas
1.1%
Other Verticals
8.3%
Public Sector
1.1%
Real Estate
3.9%
Retail
1.7%
Accounting & Finance
2.2%
Asset Management
1.1% Billing & Service
Provisioning
1.1%
• As has been the trend for years, the
CRM, Marketing & Sales product
category led all others in terms of SaaS
transaction volume (18.3%) in 1Q16.
• The HR and Workforce Management
product category accounted for the
second most announced SaaS M&A
transactions in 1Q16 as
unemployment remains near historic
lows. The category accounted for
10.6% of activity during the quarters.
• Other notable product category
contributors included those
historically laggard to deliver solutions
via a SaaS delivery model - Bi, Risk &
Compliance (5.6%) and Systems
Management (5.0%)
• Notable vertical categories included
Financial Services (3.9%), Education
(2.8%) and Real Estate (3.9%). In
particular, the strong real estate
market remains a healthy driver of
SaaS M&A activity in the multi-family,
commercial and for-sale markets.
SaaS M&A BY PRODUCT CATEGORY – 1Q16
41
Vertical

1Q16 SaaS M&A TRANSACTIONS
42
Date Buyer Seller Enterprise Value (mm)
TTM Revenue
(mm) EV/Rev
04/05/16 Toptal, LLC Skillbridge, Inc. - - -
04/01/16 Modica Group Papillon Technology Limited $3.1 - -
03/31/16 Golden River Resources Corp. (OTCPK:GORV) GlobeKeeper LLC - - -
03/31/16 TDC A/S (CPSE:TDC) Cirque A/S - - -
03/31/16 BasWare Oyj (HLSE:BAS1V) Verian Technologies, Inc. $36.2 $10.6 3.4x
03/30/16 Lendified Inc. Mentio Technologies Inc. - - -
03/30/16 Follett Corporation Wobo, Inc. - - -
03/30/16 IPFone, Inc. IntelaCloud, LLC - - -
03/30/16 Comture Corporation (TSE:3844) JMode Enterprise Co.,LTD. $2.1 - -
03/29/16 Tinder, Inc. Humin, Inc. - - -
03/29/16 MedStreaming, LLC M2S, Inc. - - -
03/29/16 Beamr Ltd. Vanguard Video, LLC - - -
03/29/16 Load DynamiX, Inc. Virtual Instruments Corporation - - -
03/29/16 Guidewire Software, Inc. (NYSE:GWRE) EagleEye Analytics, Inc. $42.0 - -
03/25/16 Cloudera, Inc. Sense, Inc. - - -
03/24/16 AppDirect, Inc. Xendo, Inc. - - -
03/24/16 HgCapital Raet B.V. - - -
03/23/16 IntraLinks Holdings, Inc. (NYSE:IL) Verilume, Inc. - - -
03/23/16 Olapic Inc. Piqora Inc. - - -
03/23/16 Morizon Spolka Akcyjna (WSE:MZN) FinPack Sp. z o.o. - - -
03/22/16 Propel Business Services, Inc. Conversion Innovations, Inc. $11.8 - -
03/22/16 Practice Unite LLC Uniphy Health Holdings LLC - - -
03/21/16 gShift Labs Inc. InNetwork Inc. - - -
03/21/16 Jupai Holdings Limited (NYSE:JP) Shanghai Runju Financial Information Services Co. Ltd. $13.9 - -
03/21/16 Asure Software, Inc. (NasdaqCM:ASUR) Mangrove Software, Inc. $18.4 - -
03/21/16 Nasdaq, Inc. (NasdaqGS:NDAQ) BoardVantage, Inc. $200.0 - -
03/21/16 j2 Global, Inc. (NasdaqGS:JCOM) Callstream Ltd - - -
03/21/16 Mediengruppe RTL Deutschland GmbH smartclip Holding AG $52.8 - -
03/18/16 International Business Machines Corporation (NYSE:IBM) Optevia Ltd. - - -
03/18/16 Indus Net Technologies Pvt. Ltd. Influx ERP Solutions Pvt. Ltd. - - -
03/17/16 Voxtel BV XL Internet Services BV - - -
03/17/16 Aconex Limited (ASX:ACX) CONJECT Holding GmbH $73.6 $27.8 2.7x
03/17/16 SiteOrganic, LLC Active Network, LLC, Faith Division - - -
03/17/16 The Riverside Company Guestline Ltd - - -
03/16/16 Verizon Digital Media Services, Inc. Volicon, Inc. - - -
03/15/16 Etteplan Oyj (HLSE:ETT1V) Soikea Solutions Oy - - -
03/14/16 Visma AS Fortnox AB (NGM:FNOX MTF) $168.6 $18.0 9.4x
03/14/16 Scribble Technologies Inc. Scompler GmbH - - -
03/14/16 Persistent Systems Limited (BSE:533179) PRM Cloud Solutions Pty Ltd. $0.6 - -
03/11/16 GeoOP Limited (NZSE:GEO) InterfaceIT Pty Ltd. $6.1 - -

1Q16 SaaS M&A TRANSACTIONS (CON’T)
43
TTM Revenue
(mm) EV/Rev
03/11/16 T Brand Studio HelloSociety, LLC - - -
03/10/16 Bigtree Entertainment Pvt. Ltd. Fantain Sports private Limited - - -
03/10/16 WebLinc LLC Orderbot Software, Inc. - - -
03/10/16 DigitalTown, Inc. (OTCPK:DGTW) Cloud.Market - - -
03/09/16 KORE Wireless Group Inc. Wyless Inc. - - -
03/09/16 Mitratech Holdings, Inc. Viewabill - - -
03/08/16 V.i. Laboratories, Inc. Trackerbird Limited - - -
03/08/16 Booker Software, Inc. Frederick Labs, Inc. - - -
03/08/16 UserZoom Technologies SL Youeye, Inc. - - -
03/08/16 Barnes & Noble Education, Inc. (NYSE:BNED) LoudCloud Systems, Inc. $0.0 - -
03/08/16 HgCapital Trace One sa - - -
03/08/16 Reward Gateway (UK) Ltd. Yomp - - -
03/08/16 Cisco Systems, Inc. (NasdaqGS:CSCO) Synata, Inc - - -
03/08/16 PledgeMusic.com Limited Set.fm, Inc. - - -
03/07/16 Consolidated Gems, Inc. (OTCPK:CGEM) Byondata Ltd $4.7 - -
03/07/16 Softfront (JASDAQ:2321) Fudemame Co.,Ltd. $6.0 $10.7 0.6x
03/04/16 Solvy Tech Solutions Pvt. Ltd. Upsilon Consulting Private Limited $0.5 - -
03/03/16 Blenheim Chalcot Management Limited iJento Limited - - -
03/03/16 Callcredit Information Group Limited Smart Analytics Limited - - -
03/03/16 Hexatom SARL Serveur Express SAS - - -
03/03/16 Greenlight Marketing Limited Powa Technologies Limited, PowaWeb Business - - -
03/03/16 Nexonia Inc. ExpenseWatch, Inc. - - -
03/02/16 Interviewing Service Of America, LLC Sentient Services, LP - - -
03/02/16 RO Innovation, Inc. Boulder Logic, LLC - - -
03/02/16 Publicis.Sapient Vertiba, Inc. - - -
03/02/16 SugarCRM Inc Contastic Inc. - - -
03/02/16 AMP New Ventures MoneyBrilliant Pty Ltd - - -
03/02/16 Symphony Technology Group Innovantage - - -
03/02/16 NetSuite Inc. (NYSE:N) IQity Solutions, LLC - - -
03/02/16 RAC Ltd Nebula Systems Ltd - - -
03/01/16 Postmedia Network Inc. Start23 Inc., Ampifii Technology Platform - - -
03/01/16 FI Navigator Corporation AppData, LLC - - -
03/01/16 Insieme Networks, Inc. CliQr Technologies, Inc. $260.0 - -
03/01/16 NCR Corporation (NYSE:NCR) CimpleBox, Inc. - - -
02/29/16 Decision Resources, Inc. Adaptive Software LLC $24.5 $3.2 7.7x
02/29/16 VelocityEHS Ergoweb, Inc. - - -
02/29/16 j2 Global, Inc. (NasdaqGS:JCOM) Yotta280, Inc. - - -
02/29/16 Vertafore, Inc. Keal Technology Inc. - - -
02/26/16 IVR Technology Group, LLC Phonologies (India) Private Limited - - -
02/26/16 LogicNow Limited iScan Online, Inc. - - -

44
Date Buyer Seller
Enterprise Value
(mm)
TTM Revenue
(mm) EV/Rev
02/26/16 Global ICT (Thailand) Co., Ltd. Demeter ICT Company Limited $0.2 - -
02/25/16 BEUTiFi Ltd SalonAddict Limited - - -
02/25/16 ABILITY Network Inc. G4 Health Systems, Inc. - - -
02/25/16 Selected Team Limited Gold Carpet (Beijing) Culture Media Limited $30.3 - -
02/24/16 WebQA, Inc. Intelligent Services, Inc. - - -
02/24/16 Data Intensity, LLC Inatech Solutions Limited - - -
02/24/16 Sopra Banking Software SA Cassiopae SAS - - -
02/23/16 First Fellow Oy QuestBack AS - - -
02/23/16 Hodes, LLC QUEsocial, LLC - - -
02/22/16 Resco, sro CWR Mobility BV, Mobile CRM - - -
02/22/16 Advantix Solutions Group Inc. BlueKloud - - -
02/22/16 Verint Systems Inc. (NasdaqGS:VRNT) Contact Solutions, Inc. - - -
02/22/16 Oracle Corporation (NYSE:ORCL) Ravello Systems Inc. - - -
02/22/16 Pandell Technology Corporation Jobutrax Services Ltd. - - -
02/19/16 Tangicloud Technologies, Inc. OneCloudCo Limited, Certain Assets - - -
02/19/16 United Capital Financial Advisers LLC FlexScore, Inc. - - -
02/19/16 Gust, LLC Fundacity, Inc. - - -
02/19/16 - Powa Technologies Limited - - -
02/18/16 GTCR, LLC Lytx, Inc. $500.0 - -
02/18/16 Contently Inc. Docalytics Inc. - - -
02/18/16 Broadridge Financial Solutions, Inc. (NYSE:BR) AMA Partners BV - - -
02/17/16 Invoice Cloud, Inc. Metropolitan Communications, LLC - - -
02/16/16 Credo Resources Limited (ASX:CRQ) Vault GRC Ltd. $4.4 - -
02/16/16 New Harbor Capital Management LLC Certica Solutions, Inc. - - -
02/16/16 Amazon Seller Services Private Limited EMVANTAGE Payments Private Limited - - -
02/16/16 HubLogix, Inc. OrderPigeon - - -
02/15/16 Palantir Technologies Inc. Kimonolabs, Inc. - - -
02/15/16 Insight Venture Partners Diligent Corporation (NZSE:DIL) $434.3 $99.4 4.4x
02/11/16 Time Inc. (NYSE:TIME) Viant Technology Inc. - - -
02/11/16 Eventbrite, Inc. Queue Ticketing, LLC - - -
02/11/16 News Corp Australia Pty Limited DIAKRIT International Ltd. - - -
02/10/16 Artilium plc (AIM:ARTA) Livecom International B.V. $0.6 $1.0 0.6x
02/10/16 - 0969607 B.C. Ltd. $0.1 - -
02/10/16 Golden Brick Silk Road Fund Management (Shenzhen) LLP Opera Software ASA (OB:OPERA) $1,267.6 $615.3 2.1x
02/09/16 - Commerce Guys SAS - - -
02/09/16 PSI Services LLC EnlightKS Limited - - -
02/09/16 Dialogic, Inc. APEX Communications, Inc. - - -
02/09/16 Heartland Payment Systems, Inc. (NYSE:HPY) Beanstalk Data, LLC - - -
02/08/16 BluePay, Inc. Billhighway Inc. - - -
02/08/16 Lyra Network SAS Pure Machine, SL - - -

45
Date Buyer Seller
Enterprise Value
(mm)
TTM Revenue
(mm) EV/Rev
02/08/16 BroadSoft, Inc. (NasdaqGS:BSFT) Transera Communications Inc. - - -
02/08/16 SketchUp Sefaira Limited - - -
02/05/16 ASUKA Co., Ltd. Ktk Inc., Solution Business $0.2 - -
02/04/16 Halo Business Intelligence, Inc. Mental Desk Ltd. - - -
02/04/16 LinkedIn Corporation (NYSE:LNKD) Connectifier, Inc. $100.0 - -
02/03/16 EtQ, Inc. VERSE Solutions, Inc. - - -
02/03/16 Amdocs Limited (NasdaqGS:DOX) cVidya Networks Inc. - - -
02/03/16 PowerSchool Group LLC Interactive Achievement, Inc. - - -
02/03/16 Cisco Systems, Inc. (NasdaqGS:CSCO) Jasper Technologies, Inc. $1,400.0 - -
02/03/16 PROACTIS Holdings PLC (AIM:PHD) Due North Limited $6.6 $2.6 2.5x
02/03/16 ServiceChannel, Inc. Big Sky Technologies, Inc. - - -
02/02/16 Societe Reseau France Billet Eazieer SAS - - -
02/01/16 Telenor ASA (OB:TEL) Tapad, INC. $379.0 - -
02/01/16 PrismHR Summit Software, Inc. - - -
02/01/16 Centre Technologies, Inc. Tradentrix, LLC - - -
02/01/16 YourCause, LLC Orange Leap, LLC - - -
01/29/16 Learning Technologies Group plc (AIM:LTG) Rustici Software LLC $36.5 $6.6 5.5x
01/28/16 Nordian Capital Partners Open Line B.V. - - -
01/27/16 Survey Sampling International, LLC Instantly, Inc. - - -
01/27/16 Excalibur Mining Corporation Limited (ASX:EXM) Dropsuite Pte Ltd $1.4 - -
01/26/16 Launchmetrics Augure SA - - -
01/26/16 Juniper Networks, Inc. (NYSE:JNPR) BTI Systems Inc. - - -
01/22/16 StatPro Group plc (AIM:SOG) Investor Analytics, LLC $16.0 $5.0 3.2x
01/22/16 Mobivity Holdings Corp. (OTCPK:MFON) Livelenz, Inc. $0.7 - -
01/22/16 Intapp, Inc. Rekoop Limited - - -
01/21/16 Dev Digital LLC. Sum Effect Software, Inc. - - -
01/21/16 International Business Machines Corporation (NYSE:IBM) Ustream, Inc. - - -
01/20/16 Sparta Systems, Inc. 123Compliance Corporation - - -
01/20/16 Civitas Learning, Inc. College Scheduler, LLC - - -
01/20/16 Nucleus Software Exports Limited (BSE:531209) Avon Mobility Solutions Pvt. Ltd. - - -
01/19/16 FocusVision Worldwide, Inc. KinesisPanel - - -
01/18/16 HgCapital Sovos Compliance, LLC - - -
01/18/16 Visma Software AB Trimma AB - - -
01/18/16 Open Systems, Inc. Blaschko Computers, Inc. - - -
01/15/16 Reckon Ltd. (ASX:RKN) SmartVault Corporation - - -
01/15/16 Internet Brands, Inc. Demandforce, Inc. - - -
01/15/16 ForeFlight, LLC Aviation Logistics, LLC - - -
01/14/16 Kronos Incorporated Empower Software Solutions, Inc. - - -
01/14/16 Vista Equity Partners Telarix, Inc. - - -
01/13/16 IMCap Partners AG Attensity Europe GmbH - - -

46
TTM Revenue
(mm) EV/Rev
01/13/16 TTI Success Insights France SAS TakewInc - -
01/13/16 MNJ Technologies Direct, Inc. Equivoice,LLC - - -
01/12/16 Blue Software, LLC Viki Solutions Inc. - - -
01/12/16 LMC s.r.o. Jobote s.r.o - - -
01/12/16 Argos Soditic Talentia Software - - -
01/12/16 Pitney Bowes Inc. (NYSE:PBI) Enroute Systems Corporation - - -
01/12/16 Preferred Systems Solutions, Inc. Tetra Concepts, LLC - - -
01/11/16 Jiangsu Fengdong Thermal Technology Co.,Ltd. (SZSE:002530) Foresee Science & Technology Co., Ltd. $273.9 $39.3 7.0x
01/11/16 Accelerite Citrix Systems International GmbH, Cloudplatform And Cloudportal Business
Manager Product Lines
- - -
01/11/16 Nordic Capital Cint AB - - -
01/07/16 H.I.G. Capital, LLC; Prudential Capital Group, L.P. Salary.com, Inc. - - -
01/07/16 Quikr India Private Limited maxHeap Technologies Private Limited $200.0 $7.3 27.4x
01/06/16 Sterling Infosystems, Inc. TalentWise, Inc. - - -
01/06/16 Alphabet Inc. (NasdaqGS:GOOGL) Circus Ponies Software, Inc. - - -
01/06/16 The TEAM Companies Inc. Lightspeed EPS, Inc. - - -
01/05/16 Thoma Bravo, LLC Infogix, Inc. - - -
01/05/16 Oracle Corporation (NYSE:ORCL) AddThis $175.0 - -
01/05/16 Viabl, LLC Halupi LLC - - -
01/05/16 MiTek Industries, Inc. Sales Simplicity Software, Inc. - - -
01/04/16 TomTom Telematics BV Finder Sp. z o.o. - - -

• The median EV/Rev exit multiple for on-premise software providers
was 2.2x in 1Q16, down from 2.6x in 4Q15. 1Q16’s 2.2x median fell
below 2.3x for the first time since 2Q13’s 1.8x TTM revenue median
multiple.
• The median EV/EBITDA exit multiple for public on-premise software
companies was 23.2x TTM EBITDA in 1Q16, down slightly from the
prior quarter.
ON-PREMISE SOFTWARE M&A EXIT MULTIPLES
• On a TTM basis, 46.9% of all on-premise software targets in 1Q16
were acquired for 2.0x TTM or less, and 63.7% for 3.0x or less. In
comparison, 36.1% were acquired for 2.0x TTM revenue or less and
56.5% for 3.0x or less in 4Q15.
• 14.2% of TTM on-premise targets were acquired for 6.0x or more in
1Q16 versus 18.5% the quarter prior.
• Notable on-premise transactions significantly exceeding median
multiples included IBM’s acquisition of healthcare analytics provider,
Truven Holding ($3.6 billion, 5.8x TTM revenue) and Siemens’
acquisition of engineering and simulation software provider CD-
adapco ($970 million, 4.9x TTM revenue).
Median EV/Revenue Exit Multiple DistributionMedian Exit Multiples
47
*Note - EV/EBITDA multiples comprised public sellers only
2.5x 2.5x 2.5x 2.6x 2.2x
17.5x 17.3x
18.1x
24.7x
23.2x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
1Q15 2Q15 3Q15 4Q15 1Q16
EV/Revenue
EV/EBITDA
22.1%
24.8%
16.8%
12.4%
7.1%
2.7%
14.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
<= 1.0x > 1.0x & <=
2.0x
> 2.0x & <=
3.0x
> 3.0x & <=
4.0x
> 4.0x & <=
5.0x
> 5.0x & <=
6.0x
> 6.0x
TTM Revenue Exit Multiple Bins
%ofDeals-1Q16TTM

Large Vs. Smaller BuyerPublic vs. Private Target
ON-PREMISE SOFTWARE M&A: BY OWNERSHIP STRUCTURE AND SIZE
• Of the TTM deals announced with an ascertainable EV/Rev exit
multiple, nearly four out of five software M&A transactions featured
privately-held targets.
• The median TTM exit multiple was significantly higher for public on-
premise software sellers (3.0x TTM revenue) than for their private
counterparts (2.0x TTM revenue).
• Over the last 12 months, public buyers paid a median 2.0x TTM
revenue for their targets, compared to a median of 2.7x paid by
private buyers.
• Buyers with revenue greater than $200 million paid a median 2.4x
TTM revenue for their targets, compared to a median 1.9x TTM
revenue paid by sub-$200 million revenue buyers.
• On a TTM basis, software M&A transactions with the highest exit
multiples featured a large public or private buyer (greater than $200
million in revenue) acquiring a small target (less than $20 million).
For the last 12 months, this match-up produced a median 2.8x
EV/Revenue exit multiple.
48
Seller Less
Than $20
million: 2.4x
Seller Less
Than $20
million: 1.8x
Seller Greater
Than $20
million: 1.5x
Seller Greater
Than $20
million: 0.8x
Seller Less
Than $20
million: 2.8x
Seller Less
Than $20
million
Seller Greater
Than $20
million: 2.4x
Seller Greater
Than $20
million: 2.6x
Buyer Less Than $200
million
1.9x Median Multiple
Buyer Greater Than
$200 million
2.4x Median Multiple

ON-PREMISE SOFTWARE M&A: BY VERTICAL AND HORIZONTAL MARKETS
Horizontal & Vertical M&A Median EV/Revenue Exit MultiplesHorizontal & Vertical M&A Volume
• The median exit valuation of horizontal software companies was 2.1x TTM revenue in 1Q16, equivalent to that of the prior two quarters. Representative
Q1 horizontal transactions included IFS’ acquisition of enterprise asset management provider, MainIOT ($8.0 million, 1.5x TTM revenue) and private
equity firm Silverlake’s sales of application lifecycle software portfolio company, Serena Software ($540 million, 3.3x TTM revenue), to Micro Focus.
• The median exit valuation of vertical software companies was 2.5x TTM revenue in 1Q16, 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 seven 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.
• Q1’s more noteworthy vertical software deals included IBM’s acquisition of healthcare analytics provider, Truven Holding ($3.6 billion, 5.8x TTM
revenue); CI:z’s acquisition of automotive navigation systems provider, C’s Lab Co. ($48.3 million, 2.6x TTM revenue); and Servelec’s acquisition of public
sector software provider Synergy Business ($27.8 million, 3.2x TTM revenue).
49
33% 35% 34% 36% 31%
67% 65% 66% 64% 69%
0%
20%
40%
60%
80%
100%
1Q15 2Q15 3Q15 4Q15 1Q16
Vertical Horizontal
2.4x
2.5x
2.4x
2.5x 2.5x
2.3x 2.3x
2.1x 2.1x 2.1x
1Q15 2Q15 3Q15 4Q15 1Q16
Vertical Horizontal

Content & Document
Mgmt
2.7% CRM, Marketing & Sales
4.2%
Data Mgmt/Integration
1.0%
Dev. Tools & IT Asset
Mgmt
2.0%
eCommerce
0.7% EDA
0.7%
Engineering & PLM
4.7%
ERP
1.2%
Entertainment
1.7%
HR & Workforce Mgmt
2.7%
Messaging, Conferencing &
Communications
4.2%
Multimedia, Graphics &
Communications
2.0%
Network Performance
Mgmt
1.0%
Security
5.1%
Systems Mgmt
2.5%
Supply Chain Mgmt &
Logistics
2.2%
Mobile
21.8%
Automotive
1.5%
Education
3.2%
Financial Services
6.6%
Healthcare
4.2%
Hospitality
0.7%
Insurance
1.2%
Legal
0.7%
Other Verticals
7.6%
Public Sector
0.7%
Real Estate
2.9%
Retail
0.5%
Utilities
1.2%
Accounting &
Finance
1.5%
Asset Management
2.5%
Billing & Service
Provisioning
0.2% BI, Risk & Compliance
4.4%
ON-PREMISE SOFTWARE M&A ACTIVITY BY PRODUCT CATEGORY
• Mobile was the most active product
category by far in the fourth quarter,
accounting for 21.8% of all software M&A
transactions. Distant runner-ups were
Financial Services (6.6%), Security (5.1%),
Engineering & PLM (4.7%), and BI, Risk &
Compliance (4.4%)
• Historically, deal activity in any given
product category varies widely from year
to year, based upon evolving market
adoption, changing technology platforms,
economic cycles, etc. Examples include:
• CRM, Marketing & Sales transactions
accounted for 4.2% of all software M&A
activity in 1Q16, compared with 0.8%
in 1Q15.
• Asset Management deals represented
2.5% of all software M&A activity in
1Q16, compared with only 0.5% in
1Q15.
• Supply Chain Mgmt & Logistics deals
were 2.2% of software M&A activity in
1Q16, compared with 0.8% in 1Q15.
• Mobile accounted for 21.8% of all
software M&A activity in 1Q16,
compared with only 27.4% in 1Q15.
50
Vertical

ON-PREMISE SOFTWARE M&A EXIT VALUATIONS BY PRODUCT CATEGORY
Median EV/Revenue Exit Multiples by Software Product Category
• Among the 36 on-premise software product categories we track, ten had both sufficient deal activity and deal data to ascertain a category TTM revenue
multiple in 1Q16.
• On a TTM basis, the Healthcare category was rewarded with the highest median exit multiple (4.3x), followed by Financial Services with a median exit
multiple of 2.8x.
• Notable Healthcare transactions include IBM’s 1Q16 acquisition of healthcare analytics provider, Truven Holding ($3.6 billion, 5.8x TTM revenue); IBM’s
3Q15 acquisition of Merge Healthcare (4.3x TTM revenue) and Progenics Pharmaceuticals’ 4Q15 acquisition of EXINI Diagnostics AB ($7.1 million, 6.3x
TTM revenue).
• Notable Financial Services software transactions included Deutsche Boerse’s 3Q15 acquisition of 360 Treasury Systems ($796 million, 14.5x TTM
revenue) and Intercontinental Exchange’s 4Q15 acquisition of Trayport ($860 million, 11.0x TTM revenue).
• On-premise CRM and Marketing exit multiples lagged far behind most other product categories on a TTM basis – posting a meager 0.9x median TTM
revenue multiple in 1Q16.
51
4.3x
2.8x 2.8x
2.3x 2.3x
1.9x 1.8x 1.6x 1.6x
0.9x
Healthcare
FinancialServices
Mobile
OtherVerticals
Content,
Document&BPM
Multimedia,
Graphics&Digital
Media
Entertainment
Messaging,
Conferencing&
Communications
Security
CRM&Marketing

APPENDIX

THE SEG SaaS INDEX: PUBLIC MARKET MULTIPLES (ANNUAL)
53
Median EV/EBITDA – AnnualMedian EV/Revenue – Annual
31.4x 32.2x
35.2x 35.2x
42.4x
56.8x
33.9x
2009 2010 2011 2012 2013 2014 2015
MedianEV/EBITDAMultiple
2.6x
3.6x
4.5x
5.0x
6.7x
5.7x 5.8x
2009 2010 2011 2012 2013 2014 2015
MedianEV/RevenueMultiple

Median Revenue Growth - Annual Median TTM Total Revenue ($M) - Annual
$123.7
$104.7
$155.4
$169.0 $163.5
$128.7
$164.1
2009 2010 2011 2012 2013 2014 2015
TTMTotalRevenue
Median Gross Profit Margin – Annual Median EBITDA Margin – Annual
68.3% 68.6%
63.4%
70.9%
70.0%
66.1% 66.0%
2009 2010 2011 2012 2013 2014 2015
GrossProfitMargin
THE SEG SaaS INDEX: FINANCIAL PERFORMANCE (ANNUAL)
26.0%
14.2%
26.9%
25.5% 26.0%
28.4%
27.1%
2009 2010 2011 2012 2013 2014 2015
TTMRevenueGrowth
6.7%
9.6%
8.8%
8.1%
1.0%
-8.9% -9.4%
2009 2010 2011 2012 2013 2014 2015
EBITDAMargin

THE SEG SOFTWARE INDEX: PUBLIC MARKET MULTIPLES (ANNUAL)
1.5x
2.3x
2.7x 2.7x
3.0x 3.0x
2.8x
2009 2010 2011 2012 2013 2014 2015
EV/RevenueMultiple
10.0x
12.4x 12.3x 11.9x
14.0x
15.0x
14.0x
2009 2010 2011 2012 2013 2014 2015
EV/EBITDAMultiple

THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE (ANNUAL)
$239.80
$387.90 $381.40
$470.50
$535.80
$743.10
2010 2011 2012 2013 2014 2015
TTMTotalRevenue
4.2% 4.5%
16.1%
13.3%
9.3%
8.0% 7.5%
2009 2010 2011 2012 2013 2014 2015
TTMRevenueGrowth
66.6%
68.6%
65.8%
66.1%
66.5%
66.0%
65.7%
2009 2010 2011 2012 2013 2014 2015
GrossProfitMargin
15.3%
17.4%
18.9%
17.9%
17.5% 17.6%
18.5%
2009 2010 2011 2012 2013 2014 2015
EBITDAMargin

THE SEG INTERNET INDEX: PUBLIC MARKET MULTIPLES (ANNUAL)
1.2x
1.6x
2.9x
2.1x
2.6x
2.5x
1.8x
2009 2010 2011 2012 2013 2014 2015
MedianEV/REvenueMultiple
10.0x
11.8x
15.2x
13.9x
20.8x
24.6x
17.0x
2009 2010 2011 2012 2013 2014 2015
MedianEV/EBITDAMultiple

THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE (ANNUAL)
$216.2
$278.1
$333.0
$392.8
$440.2
$411.2
$492.9
2009 2010 2011 2012 2013 2014 2015
TTMTotalRevenue
2.9% 3.4%
26.4%
23.9%
18.7%
20.6%
17.5%
2009 2010 2011 2012 2013 2014 2015
TTMRevenueGrowth
60.1%
60.9%
66.2%
65.0% 64.7%
63.8%
63.2%
2009 2010 2011 2012 2013 2014 2015
GrossProfitMargin
10.2%
12.2%
13.1%
10.6%
8.9%
8.3%
7.3%
2009 2010 2011 2012 2013 2014 2015
EBITDAMargin

THE SEG SaaS INDEX COMPANIES – KEY METRICS
59
SEG SaaS Index
Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin
2U 12.3x 8.1x 6.2x 6.6x 5.4x - - - - - 32.6% 31.2% 33.9% 32.0% 36.2% -24.4% -21.9% -19.4% -18.6% -16.6%
Alarm.com 4.3x 4.1x 3.4x 4.6x 3.0x 28.0x 31.5x 25.5x 30.4x 21.0x 28.5% 26.9% 25.4% 26.1% 24.8% 15.5% 12.9% 13.3% 15.1% 14.4%
Amber Road 1.6x 1.8x 1.8x 2.0x 1.8x - - - - - 23.4% 16.3% 11.4% 7.5% 3.5% -35.2% -10.8% -19.0% -26.8% -33.6%
Apigee Corporation 3.0x 2.7x 2.3x 2.8x 2.0x - - - - - - - 30.2% 26.6% 28.3% -85.2% -76.9% -68.6% -60.6% -53.3%
AppFolio 10.7x 9.6x 6.5x 5.7x 5.3x - - - - - 79.6% - - - 57.3% -14.1% -14.9% -15.6% -17.9% -16.1%
Athenahealth 7.0x 7.9x 6.5x 6.3x 5.9x 85.8x 101.2x 88.4x 80.8x 89.7x 26.5% 25.9% 24.2% 23.8% 22.9% 8.2% 7.8% 7.4% 7.8% 6.6%
Atlassian Corp - 26.3x 13.5x 11.9x 11.2x - 207.9x 454.9x 283.9x 275.0x 44.8% 44.8% 48.5% - - 12.7% 12.7% 3.0% 4.2% 4.1%
Bazaarvoice 1.7x 1.7x 1.2x 1.0x 1.1x - - - - - 20.0% 13.7% 11.7% 9.3% 6.1% -14.5% -11.3% -10.5% -9.1% -9.2%
Benefitfocus 5.9x 6.9x 5.4x 6.1x 4.6x - - - - - 31.2% 33.9% 33.6% 34.1% 34.7% -37.6% -34.7% -31.6% -27.5% -24.4%
Box 5.6x 5.7x 4.8x 4.7x 4.1x - - - - - 74.3% 62.0% - 45.5% 39.9% -63.1% -60.2% -57.7% -56.3% -54.3%
Callidus Software 6.1x 6.8x 4.7x 5.2x 4.2x - - - - 1975.1x 21.6% 23.4% 24.2% 27.8% 26.7% -1.9% -2.5% -3.3% -3.1% 0.2%
Castlight Health 4.7x 4.7x 2.9x 3.1x 2.4x - - - - - 251.5% 173.5% 121.2% 88.9% 65.1% -180.2% -150.6% -129.8% -115.4% -103.8%
ChannelAdvisors 2.1x 3.1x 2.5x 2.5x 2.3x - - - - - 24.8% 21.7% 18.6% 16.5% 18.5% -33.2% -31.1% -25.3% -19.4% -11.5%
Cornerstone OnDemand 6.8x 6.8x 5.6x 5.7x 5.0x - - - - - 42.4% 36.7% 35.7% 32.3% 28.9% -16.1% -16.9% -17.5% -18.5% -17.8%
Covisint 0.4x 0.5x 0.5x 0.4x 0.5x - - - - - -9.1% -8.9% -9.7% -10.6% -11.2% -37.6% -30.4% -26.8% -25.8% -24.9%
Cvent 8.7x 8.2x 4.5x 4.1x 4.0x 199.2x 560.3x 1185.8x 292.9x 797.8x 28.0% 28.6% 31.7% 31.8% 32.0% 4.4% 1.5% 0.4% 1.4% 0.5%
DealerTrack 3.6x 4.6x 3.5x 4.0x 3.4x 29.1x 39.1x 27.1x 28.9x 24.5x 132.4% 94.2% 60.3% 39.7% 39.7% 12.4% 11.9% 12.9% 13.7% 13.7%
Demandware 10.9x 9.9x 6.2x 6.2x 5.2x - - - - - 50.6% 50.2% 47.8% 46.3% 47.8% -13.1% -11.5% -14.7% -14.7% -14.4%
Ebix 4.6x 5.5x 5.4x 5.6x 4.8x 12.4x 15.2x 15.1x 16.0x 13.1x 4.7% 11.4% 17.6% 25.1% 23.9% 36.9% 36.2% 35.5% 35.1% 36.8%
Ellie Mae 11.3x 10.0x 10.7x 11.0x 8.9x 58.0x 47.8x 49.1x 53.0x 46.9x 25.7% 41.4% 54.6% 62.2% 57.2% 19.5% 20.9% 21.9% 20.7% 18.9%
FireEye 11.1x 6.8x 4.2x 4.3x 3.5x - - - - - 163.5% 130.3% 97.4% 71.0% 46.4% -89.3% -83.8% -74.8% -66.9% -63.5%
Fleetmatics 7.3x 8.0x 5.5x 4.9x 5.0x 29.1x 31.0x 21.0x 19.5x 21.0x 30.6% 28.5% 27.0% 24.7% 23.0% 25.1% 25.9% 26.3% 24.9% 24.0%
Halogen Software 1.8x 1.6x 1.2x 1.6x 1.1x - - - - - 18.1% 18.2% 18.0% 17.4% 15.9% -18.0% -16.0% -13.9% -9.7% -6.0%
HealthStream 3.1x 3.3x 2.7x 2.7x 2.4x 22.5x 19.2x 16.2x 16.7x 19.8x 29.0% 27.3% 24.8% 22.2% 22.4% 13.9% 17.3% 16.4% 16.3% 12.1%
HortonWorks 16.9x 12.9x 6.2x 5.3x 4.0x - - - - - 71.8% 96.6% 109.6% 124.1% 164.8% -365.1% -311.3% -260.9% -217.2% -143.3%
HubSpot 12.4x 13.1x 9.8x 8.3x 7.9x - - - - - 49.3% 52.7% 55.3% 56.6% 57.0% -40.4% -37.5% -35.5% -33.2% -24.0%
inContact 2.2x 3.0x 2.6x 2.6x 2.4x - - - - - 32.1% 37.4% 36.1% 33.3% 29.2% -4.0% -4.9% -4.3% -2.5% -0.7%
Instructure - 11.1x 6.9x 5.8x 5.5x - - - - - 70.2% - - - 65.0% -83.1% -94.5% -92.5% -85.3% -67.9%
IntraLinks Holdings 1.9x 2.1x 1.8x 1.8x 1.8x 41.2x 45.3x 40.0x 45.9x 58.2x 9.1% 10.1% 9.7% 8.5% 7.9% 4.7% 4.6% 4.5% 3.9% 3.0%
J2 Global 5.8x 6.4x 5.7x 4.7x 5.2x 13.9x 15.7x 14.0x 11.3x 12.9x 15.0% 15.7% 20.7% 19.9% 20.3% 41.6% 40.9% 40.8% 41.4% 40.6%
Jive Software 1.4x 1.4x 0.8x 1.0x 0.8x - - - - - 22.6% 20.8% 18.0% 13.5% 9.6% -22.2% -17.2% -13.8% -11.8% -10.7%
LivePerson 1.9x 1.8x 1.2x 1.2x 1.2x 41.9x 36.0x 29.6x 16.9x 16.2x 18.1% 21.2% 20.5% 19.9% 13.9% 4.5% 5.0% 4.0% 7.0% 7.1%
Marin Software 0.8x 1.0x 0.8x 0.8x 0.8x - - - - - 28.5% 24.1% 19.5% 13.1% 9.2% -27.1% -26.4% -27.8% -25.7% -19.4%
Marketo 7.4x 7.1x 3.9x 4.0x 3.4x - - - - - 56.3% 50.9% 46.2% 42.8% 40.0% -31.0% -31.9% -31.0% -29.5% -26.5%
Medical Transcript 0.9x 0.9x 0.6x 0.4x 0.6x - - - - - 74.8% 102.3% 126.9% 75.0% 26.1% -12.9% -11.8% -11.1% -7.0% -6.5%
Medidata Solutions 6.8x 6.8x 5.6x 5.8x 5.2x 62.8x 60.4x 54.6x 55.0x 51.1x 21.0% 20.9% 19.8% 19.5% 17.1% 10.8% 11.3% 10.2% 10.5% 10.2%
Mimecast - 5.0x 3.7x 3.3x 3.3x - 65.4x 33.9x 23.2x 33.0x - 31.4% - - - -2.7% 7.6% 10.9% 14.4% 10.1%

THE SEG SaaS INDEX COMPANIES – KEY METRICS
60
SEG SaaS Index
MINDBODY 6.9x 7.1x 4.8x 5.0x 4.0x - - - - - 43.8% - - - 44.8% -30.4% -30.4% -29.8% -27.4% -28.3%
Netsuite 11.9x 11.2x 8.0x 8.0x 6.9x - - - - - 34.2% 34.2% 35.0% 34.9% 33.2% -9.2% -8.3% -9.7% -8.3% -8.3%
New Relic 16.3x 14.7x 9.1x 7.2x 7.1x - - - - - 82.2% 74.7% 73.2% 68.8% 67.5% -40.6% -40.7% -38.2% -36.2% -32.5%
OPOWER 2.7x 3.0x 2.5x 2.2x 2.4x - - - - - 44.8% 35.7% 27.3% 19.6% 15.8% -29.7% -30.4% -26.1% -26.8% -27.1%
Paycom Software 14.0x 13.7x 10.0x 9.8x 8.3x 96.1x 77.6x 48.7x 48.8x 44.2x 40.3% 44.6% 46.2% 48.4% 48.8% 14.6% 17.6% 20.6% 20.1% 18.7%
Paylocity Holding 11.2x 13.8x 9.8x 10.0x 8.0x - - - - - 41.2% 40.9% 40.5% 42.0% 46.7% -7.3% -6.7% -5.2% -3.6% -0.2%
Q2 Holdings 10.0x 10.5x 7.7x 7.7x 6.6x - - - - - 39.1% 42.0% 41.8% 38.5% 37.6% -18.9% -16.2% -15.1% -14.9% -14.8%
Qualys 6.4x 7.4x 4.8x 4.4x 4.3x 40.2x 38.9x 23.1x 19.8x 18.1x 23.7% 24.0% 24.1% 24.1% 23.0% 15.8% 19.0% 20.7% 22.3% 23.8%
RealPage 3.3x 4.0x 3.7x 3.5x 3.4x 43.0x 67.5x 48.9x 39.2x 30.5x 7.3% 6.7% 11.6% 14.1% 15.8% 7.7% 5.9% 7.6% 9.0% 11.3%
RingCentral 5.2x 5.9x 4.8x 3.9x 4.1x - - - - - 37.0% 36.8% 35.3% 35.1% 34.7% -15.8% -13.1% -10.6% -7.9% -5.5%
Salesforce.com 9.1x 9.2x 8.0x 8.1x 7.2x 288.6x 216.5x 150.6x 128.2x 102.5x 32.0% 28.4% 25.3% 24.2% 24.1% 3.1% 4.3% 5.3% 6.3% 7.0%
SciQuest 1.5x 2.0x 2.1x 2.5x 2.0x 29.3x 42.5x 40.4x 36.4x 26.6x 13.0% 7.9% 4.7% 2.0% 3.4% 5.1% 4.6% 5.1% 6.8% 7.7%
Service-now.com 16.0x 17.4x 11.3x 10.9x 9.4x - - - - - 60.7% 58.1% 54.0% 50.5% 47.3% -16.1% -16.1% -14.9% -12.5% -10.5%
Shopify 25.3x 16.3x 11.1x 12.7x 7.8x - - - - - 109.0% - - - 95.4% -16.8% -11.9% -7.2% -5.9% -5.9%
SPS Commerce 7.8x 8.0x 4.3x 3.8x 3.9x 75.8x 78.4x 44.0x 37.9x 37.5x 22.6% 24.1% 25.0% 25.8% 23.9% 10.3% 10.2% 9.8% 10.1% 10.5%
Tableau Software 12.5x 12.2x 4.7x 4.3x 3.8x 260.9x 561.8x - - - 77.5% 75.4% 71.4% 69.1% 58.4% 4.8% 2.2% -0.3% -1.4% -4.3%
Tangoe 1.2x 1.4x 1.3x 1.2x 1.3x 15.1x 17.7x 19.3x 27.7x 29.0x 12.5% 10.9% 8.3% 5.7% 5.7% 7.7% 7.7% 6.7% 4.4% 4.4%
Textura 9.5x 8.2x 4.9x 5.1x 4.3x - - - - - 54.5% 48.6% 44.7% 41.6% 37.7% -27.1% -18.8% -13.1% -5.8% -9.1%
The Ultimate Software Group 10.0x 10.3x 8.8x 9.4x 7.9x 69.3x 77.1x 72.5x 83.1x 76.8x 23.3% 22.2% 21.1% 20.8% 22.2% 14.4% 13.4% 12.2% 11.3% 10.3%
TrueCar 1.5x 2.2x 1.7x 1.4x 1.6x - - - - - 54.3% 44.8% 37.2% 31.6% 25.7% -19.4% -18.2% -16.1% -13.7% -14.3%
Upland Software 1.8x 1.7x 1.5x 1.8x 1.5x - 99.8x - - 153.6x 56.8% 38.1% 25.0% 14.2% 8.3% -13.1% 1.8% -0.2% -0.1% 1.0%
Veeva Systems 8.5x 9.3x 8.1x 8.2x 7.1x 36.4x 38.5x 33.2x 34.5x 33.0x 49.0% 43.7% 37.9% 32.2% 30.6% 23.3% 24.2% 24.5% 23.8% 21.6%
Workday 15.8x 15.9x 12.4x 12.9x 10.5x - - - - - 68.0% 63.7% 58.2% 51.4% 47.5% -20.0% -17.3% -15.6% -15.5% -15.6%
Workiva 5.0x 5.5x 3.5x 3.2x 3.0x - - - - - 32.3% 28.6% 27.8% 27.7% 28.9% -30.8% -30.9% -29.3% -28.8% -27.0%
Xactly 3.3x 3.6x 2.3x 2.5x 2.0x - - - - - 29.4% - - 20.9% 24.3% -20.9% -19.7% -19.8% -20.2% -22.7%
Zendesk 11.7x 12.5x 9.6x 8.9x 7.5x - - - - - 76.3% 73.3% 69.1% 66.3% 64.3% -46.9% -46.5% -40.4% -35.3% -32.8%
Zix 4.3x 5.2x 3.9x 3.5x 3.7x 25.9x 30.7x 22.7x 17.9x 20.2x 4.6% 5.6% 5.3% 6.9% 8.7% 16.6% 16.9% 17.3% 19.5% 18.4%

CRM & Marketing 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 199.2x 216.8x 151.1x 128.2x 102.5x
EV/Earnings 687.5x - - - -
EBITDA Margin -20.8% -18.8% -19.1% -17.4% -14.3%
TTM Revenue Growth (YoY) 30.3% 28.5% 28.5% 28.0% 28.0%
TTM EBITDA Growth(YoY) 0.2% -11.9% -16.7% -5.6% 14.0%
TTM Earnings Growth (YoY) 13.9% 17.2% 26.9% 14.7% -2.0%
Current Ratio 1.8 2.0 1.9 1.8 1.7
Cash as Percent of Market Cap 13.5% 11.7% 11.0% 10.8% 14.1%
Enterprise Value Growth (YoY) -17.3% 11.1% 2.0% 5.5% -24.0%
ERP & Supply Chain 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 29.3x 42.8x 40.5x 36.4x 26.6x
EBITDA Margin -9.2% -8.3% -9.7% -8.3% -8.3%
TTM EBITDA Growth(YoY) 12.6% 33.5% 25.2% 16.2% 17.3%
TTM Earnings Growth (YoY) 73.7% 76.2% 58.8% 39.7% 56.4%
Current Ratio 2.1 2.7 2.4 2.2 2.2
Enterprise Value Growth (YoY) -5.7% -7.3% 16.9% 3.2% -8.8%
Vertically Focused 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 39.7x 43.5x 39.9x 36.9x 31.7x
EBITDA Margin -2.6% -2.9% -1.9% 1.0% 0.1%
TTM EBITDA Growth(YoY) 4.8% 9.4% 8.1% 12.3% 13.4%
TTM Earnings Growth (YoY) 41.2% 75.3% 82.9% 70.1% 42.5%
Current Ratio 1.9 1.7 1.9 2.2 1.9
Enterprise Value Growth (YoY) 2.5% 41.4% 12.0% 3.8% 0.8%
Human Capital Management 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 69.3x 77.2x 48.8x 48.8x 60.5x
EBITDA Margin -11.7% -11.3% -9.6% -6.7% -3.1%
TTM EBITDA Growth(YoY) -40.3% -40.9% -22.4% -24.6% 9.5%
TTM Earnings Growth (YoY) 75.2% 41.6% 28.4% -0.5% -17.1%
Current Ratio 1.3 1.4 1.5 1.3 1.2
Enterprise Value Growth (YoY) -10.1% 34.1% 22.3% 36.8% 4.7%
THE SEG SaaS INDEX METRICS BY PRODUCT CATEGORY
61
Other SaaS 1Q15 2Q15 3Q15 4Q15 1Q16
EV/EBITDA 33.1x 45.3x 23.2x 23.2x 31.0x
EBITDA Margin -16.0% -12.5% -12.2% -9.8% -8.2%
TTM EBITDA Growth(YoY) -22.9% -29.4% -5.1% 5.6% 5.5%
TTM Earnings Growth (YoY) -0.2% 0.6% -49.5% 15.5% 6.6%
Current Ratio 2.3 2.1 2.0 2.1 2.3
Enterprise Value Growth (YoY) -18.8% 28.0% 29.4% 0.4% -29.2%

THE SEG SOFTWARE INDEX COMPANIES – KEY METRICS
62
SEG Software Index
A10 Networks 1.8x 1.6x 1.6x 1.5x 1.4x - - - - - 26.6% 12.6% 4.2% 6.2% 10.8% -12.8% -18.8% -19.7% -18.0% -13.8%
Accretive Health 0.5x 0.5x 0.5x - 0.5x 7.3x 8.5x 8.3x - 7.8x 0.5% 5.8% 10.8% 13.3% 16.6% 6.3% 6.1% 6.1% 6.1% 6.0%
ACI Worldwide 3.4x 2.9x - 3.1x 2.9x 16.7x 14.2x - 16.3x 17.2x 17.5% 11.2% 6.7% 1.8% 2.9% 20.5% 20.5% 20.2% 19.3% 16.7%
Activision Blizzard 5.8x - 5.8x - 5.4x 20.0x - 19.0x - 17.9x -3.8% 4.7% 8.4% 12.3% 5.8% 29.2% 30.4% 30.4% 32.8% 30.4%
Allot Communications - 0.4x - 0.4x 0.4x - 10.6x - - - 21.4% 17.6% 3.9% -7.6% -14.7% 2.7% 3.5% -0.8% -3.3% -4.3%
Allscripts Healthcare Solutions 2.4x - 2.2x 2.3x 2.1x 53.9x - 36.9x 33.0x 26.3x 0.4% 0.4% 0.0% -0.5% 0.6% 4.5% 4.6% 5.8% 6.9% 8.1%
Amdocs Limited - 2.1x 2.0x 2.1x 2.0x - 10.8x 10.4x 10.7x 10.6x 6.6% 4.8% 3.1% 2.2% 1.5% 18.9% 19.4% 19.4% 19.3% 18.9%
American Software 2.0x 2.2x 1.9x 1.7x 1.8x 18.2x 19.4x 15.3x 12.3x 13.5x 1.3% 2.3% 4.6% 11.6% 11.3% 11.0% 11.5% 12.5% 13.7% 13.5%
ANSYS 7.5x 7.9x 7.3x 7.3x 7.3x 16.3x 17.2x 15.8x 16.0x 15.9x 8.7% 6.8% 5.1% 3.0% 0.7% 46.0% 46.0% 46.0% 45.6% 45.8%
Aspen Technology 7.1x 7.6x 6.0x 6.0x 5.7x 18.1x 18.6x 14.3x 13.8x 12.8x 20.4% 14.6% 12.5% 10.4% 10.7% 38.9% 40.7% 41.9% 43.1% 44.4%
Autodesk 3.5x 5.0x 4.3x 4.7x 4.4x 32.8x 51.9x 54.0x 69.7x 74.7x 10.5% 11.8% 7.1% 3.5% -0.3% 10.7% 9.7% 7.9% 6.8% 5.9%
AVG Technologies 3.4x 3.1x 2.8x 2.8x 2.6x 10.6x 9.9x 9.1x 9.7x 9.0x -8.1% -3.2% 5.1% 11.5% 14.5% 32.4% 31.0% 30.3% 29.1% 29.0%
Bango PLC 7.9x 10.8x 8.8x 4.2x 11.0x - - - - - -42.0% -44.9% -48.3% -43.7% -37.2% -95.7% -110.0% -129.3% -135.2% -142.1%
Barracuda Networks 2.3x 2.7x 1.7x 2.1x 1.6x 80.2x 123.3x 103.4x 182.3x 143.3x 18.7% 18.7% 17.4% 16.2% 16.2% 2.8% 2.2% 1.6% 1.1% 1.1%
Blackbaud 4.9x 5.2x 4.9x 5.1x 4.6x 30.0x 32.2x 30.2x 32.1x 28.3x 12.0% 13.2% 13.4% 12.5% 13.0% 16.5% 16.2% 16.3% 15.9% 16.4%
Bottomline Technologies 2.9x 3.4x 3.4x 3.6x 3.3x 24.1x 27.4x 25.6x 27.4x 26.0x 19.8% 15.2% 10.1% 5.6% 3.9% 12.2% 12.4% 13.2% 13.0% 12.8%
Broadridge Financial 2.6x 2.7x 2.6x 2.7x 2.5x 13.3x 13.6x 12.2x 12.8x 11.9x 4.6% 4.5% 5.3% 6.4% 6.7% 19.6% 19.6% 21.4% 21.2% 21.2%
Brocade Communications Systems 1.6x 1.6x 1.3x 1.5x 1.4x 6.4x 6.3x 5.1x 5.8x 5.5x 1.1% 1.6% 1.5% 2.4% 1.7% 25.6% 26.0% 26.2% 25.7% 25.0%
BSQUARE 0.5x 0.6x 0.4x 0.4x 0.4x 16.3x 11.4x 6.0x 5.9x 5.5x 4.1% 5.8% 10.6% 11.5% 11.1% 3.2% 5.2% 6.1% 6.6% 6.6%
CA 2.5x 2.6x 2.8x 3.0x 2.9x 7.9x 8.2x 8.8x 9.7x 9.5x -2.8% -3.4% -4.9% -6.1% -6.6% 31.3% 32.3% 32.2% 30.9% 30.5%
Cadence Design Systems 3.5x 3.7x 3.6x 4.0x 3.4x 16.8x 17.5x 15.1x 16.7x 14.4x 8.3% 8.7% 10.0% 9.7% 7.7% 21.0% 21.4% 23.5% 23.7% 24.0%
Cerner 6.3x 5.9x 4.9x 4.7x 4.3x 21.3x 20.8x 17.3x 16.9x 15.4x 16.6% 20.0% 24.0% 29.0% 31.4% 29.5% 28.4% 28.1% 27.6% 27.7%
Check Point Software Tech 8.8x 8.9x 8.6x 8.9x 8.2x 16.3x 16.5x 16.1x 16.9x 15.8x 7.3% 8.0% 8.6% 8.9% 9.0% 54.3% 54.0% 53.5% 52.9% 52.3%
Cisco Systems 2.0x 2.2x 2.0x 2.1x 2.0x 7.3x 7.8x 7.2x 7.5x 6.8x 0.4% 3.1% 4.3% 4.9% 3.1% 27.3% 27.6% 27.2% 27.6% 28.8%
Citrix Systems 3.7x 3.9x 3.5x 3.8x 3.4x 17.4x 18.2x 15.2x 15.5x 13.2x 7.7% 5.2% 4.0% 4.2% 4.2% 21.4% 21.4% 23.1% 24.7% 25.9%
CommVault Systems 1.9x 2.3x 2.2x 2.5x 2.2x 16.5x 27.4x 46.4x 108.9x 154.7x 8.1% 3.6% -1.7% -4.9% -4.5% 11.5% 8.4% 4.7% 2.3% 1.4%
Computer Programs and Sys 2.1x 2.3x 3.1x 3.7x 3.3x 8.3x 9.4x 14.0x 19.2x 18.2x 1.9% -2.2% -5.1% -12.2% -11.0% 26.0% 24.7% 22.5% 19.1% 18.3%
Constellation 5.7x 5.4x 4.8x 4.9x 4.5x 38.9x 33.6x 27.6x 27.7x 19.3x 37.9% 25.8% 17.6% 12.5% 10.1% 14.6% 16.1% 17.3% 17.8% 23.2%
CSG Systems International 1.5x 1.6x 1.7x 2.0x 1.7x 9.4x 9.9x 10.4x 11.6x 8.7x 0.5% -0.8% -0.8% -0.4% 0.2% 15.7% 16.3% 16.3% 17.5% 19.4%
Cyberark Software 13.0x 10.0x 7.7x 7.7x 6.5x 63.0x 41.6x 31.9x 33.8x 29.7x 55.7% 67.4% 76.5% 67.9% 56.1% 20.6% 24.1% 24.0% 22.7% 21.8%
Cyren 2.0x 2.0x 1.6x 2.0x 1.7x - - - - - -1.0% -4.9% -10.2% -11.9% -13.0% -13.3% -12.5% -9.4% -10.4% -5.9%
Dassault Systèmes 6.3x 7.1x 6.2x 6.2x 5.8x 25.0x 28.1x 25.4x 23.3x 21.4x 11.0% 17.3% 22.9% 24.2% 23.8% 25.1% 25.4% 24.4% 26.5% 27.2%
DST Systems 1.5x 1.7x 1.5x 1.5x 1.5x 9.8x 10.9x 9.6x 10.3x 10.2x 3.4% 4.1% 3.7% 3.6% 2.8% 15.5% 15.7% 15.5% 14.6% 14.3%
Electronic Arts 4.2x 4.3x 3.8x 3.9x 4.0x 16.8x 17.2x 13.3x 14.9x 18.2x 21.6% 26.3% 17.3% 4.7% -4.0% 24.9% 25.2% 28.5% 26.3% 22.0%
EMC 2.0x 2.1x 2.0x 2.0x 2.0x 8.2x 9.1x 9.1x 9.6x 10.1x 5.2% 5.4% 4.7% 2.8% 1.1% 23.9% 22.9% 21.9% 21.0% 19.7%
EPIQ Systems 1.9x 2.1x 1.9x 1.9x 1.7x 16.5x 16.1x 13.7x 14.1x 11.0x 1.2% -3.6% -2.5% 4.7% 13.9% 11.8% 12.9% 13.9% 13.2% 15.5%
Evertec 5.7x 5.3x 4.5x 4.4x 4.5x 13.5x 12.6x 10.7x 10.6x 10.0x 0.9% 1.9% 1.9% 2.5% 3.3% 41.9% 42.1% 42.4% 42.0% 45.0%

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