The latest edition of our Advertising and Marketing Technology sector overview piece, looking at M&A and financing trends across the AdTech and marketing software sector.

1. Advertising And Marketing Technology
Market overview and update
For more information contact:
Julie Langley
Partner
+44 (0) 20 7514 8247
jlangley@resultsig.com
Mark Williams
Director
+44 (0) 20 7514 8242
mwilliams@resultsig.com
Disclaimer:
February 2014
This document has been produced by Results International Group LLP (“Results”) and is furnished to you solely for your
information and may not be reproduced or redistributed, in whole or in part, to any other person. No representation or
warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or
completeness of the information contained herein and, accordingly, none of Results‟ officers or employees accepts any
liability whatsoever arising directly or indirectly from the use of this document.

2. Contents
01
About Us
02
Market Landscape
03
Public Markets Environment
1

3. Corporate Finance Advisors to the Adtech, Software & Marcoms Sectors
An established team of sector experts…
…with global reach
• Results International is a market-leading M&A advisory
firm founded in 1991
• Entrepreneurial and owner-managed
• 40 person global team with over 250 completed
transactions
• Senior level attention on all transactions
Selected clients and transaction counterparties
Sector specialism
(1)
Adtech
Software
Marketing Services
Digital Media
(1) Some clients were advised by Results International Partners at prior firms
2

4. Selected Team Members- UK
Keith Hunt
Managing Partner
•
Joined Results in 2005 Previously Head of M&A at
Ernst & Young
•
20+ years experience in
corporate finance, including
M&A, fundraising, IPOs, JVs,
MBOs and MBIs
•
Clients include The Group,
Figtree, Monitor Media,
Spannerworks, Flip Media,
Transactis, Punktilio,
Flamingo, Brand X, and AIA
Julia Crawley-Boevey
Director
•
•
Andy Collins
Senior Partner
Joined Results in 2010 having
spent over four years at BDO
where she worked in both
Audit and Corporate
Finance
Clients include The Group,
Blue Rubicon, Virgo Health,
Incite, and Crayon
Joined Results in 2005 and
has completed over 50
transactions, raised £150m
of funding from private
equity and the Capital
Markets and provided
strategic advice to a wide
range of businesses
•
Clients include Abacus,
Retail Eyes, Bridgehead
International, Chemistry
Communications, Latitude,
and Total Healthcare Group
•
Mark Williams
Director
•
•
Joined Results in 2012. He
started his career at KPMG
working in Financial Services
M&A and moved to
Ingenious Corporate
Finance in 2010
Clients include Staffcare,
Moonpig, St Ives, and
Inflexion
Jim Houghton
Partner
Julie Langley
Partner
•
Joined Results in 2010, with
over 10 years of M&A
experience
•
Joined Results in 2012 to
lead the tech and digital
media practice
•
Prior to joining Results Jim led
European M&A activity for
the marketing services
division of Omnicom (DAS)
•
•
Clients include We are
Social, Blue Rubicon, Virgo
Health, Crayon, Iris, and
United News & Media plc
15 years M&A experience at
Broadview then Jefferies,
advising tech and digital
media companies on M&A
and fundraising
•
Advised on transactions with
Oracle, Microsoft, Experian,
Moody‟s, IAC, Axel Springer,
DMGT, and BT, amongst
others
Anthony Harrington
Manager
•
•
Joined Results in 2013, has
experience in healthcare
focused corporate finance
at Bear Stearns, Rothschild
and Investec
Clients include Enteq
Upstream PLC, Arena Leisure
PLC, Busy Bees and
Protherics PLC
James Kesner
Manager
•
Joined Results in 2013 from
Kingston Smith
•
ACA qualified, has
previously worked as a
Finance Director for a
London based brand
consultancy
•
Previous clients include ID
magazine, Not to Scale,
Writtle, Adam and Eve
3

5. Selected Team Members - International
US Team
Pierre-Georges Roy
Partner
Maurice Watkins
Partner
•
Co-founded GroupArgent in
2005. Closed $4.0 billion in
cross-border transactions
including several Canada-US
•
Co-founded GroupArgent in
2005 and has closed over 35
transactions totaling $0.75
billion
•
Experience includes advising
Hunt Mobile Advertising on
its transaction with Opera
Mediaworks, Telesystem
International Wireless
(NASDAQ: TIWI) sold to
Vodafone, and buyout and
exit representation for
Canadian firms Caisse de
Dépôt and Wynnchurch
•
Experience includes advising
Hunt Mobile Advertising on
its transaction with Opera
Mediaworks
•
Prior to GroupArgent,
Maurice worked at the
Zanett Group, Morgan
Stanley and IBM
Hemavli Bali
Executive Director
•
Joined Results in 2008 and
has 13 years working in
financial services, with over 8
years of experience as a
corporate finance specialist
•
Previously worked at
Nomura, Royal Bank of
Canada and Ernst & Young
•
Clients include Abacus, Total
Healthcare Group, Synergy,
D2D and Retail Eyes
Asia Team
Andrew Kefford
Managing Partner –
Asia Pacific & MENA
•
Long career in marketing
sector (Ogilvy & Mather, The
Ball Partnership)
•
Managed the acquisition of
SMART to McCann
Worldgroup, CCG by
Publicis Group to establish
Digitas China, CIC by Kantar
Media and The Upper Storey
by Isobar
Imad Kublawi
Regional Partner –
MENA
•
•
27 years experience in the
advertising sector, including
as COO of JWT's Middle East
Network
Joined Results International
in 2008 and has since been
engaged in a number of
buy and sell mandates
Chris Beaumont
Managing Partner –
North Asia
•
16 years of experience
consulting in Asia
•
For 10 years Chris was with
McCann-Erickson in Asia; he
was both Vice-Chairman of
its operations in Tokyo and
Chief Strategy Officer for
WorldGroup across Asia
Sunil Gupta
Area Liaison –
South Asia
•
Spent 24 years at Hindustan
Thompson (part of JWT), the
largest ad agency in India
•
Other roles include COO at
RK Swamy/BBDO and as
advisor to companies in
India, Pakistan & Dubai
4

6. Selected Transactions Across Technology, Marcoms & Digital Media
has been acquired
by
is joining
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has invested in
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has been acquired
by
has completed a joint
venture with
NOTE: Certain transactions were advised on by RI’s Partners at previous firms.
5

7. Content
01
About Us
02
Market Landscape
03
Public Markets Environment
6

8. Marketing Technology Landscape – Illustrative Companies
Marketing Automation
Social CRM /
Social Software / Data
eCommerce Tech
Advertising Platforms
Mobile
Video
Measurement & Optimisation
Subsegments
•
•
•
•
Omnichannel Campaign
Management
Marketing Automation
Lead Management
Email Marketing
•
•
•
•
•
eCommerce Platforms
Recommendation Software
Personalisation Software
eCommerce Logistics
Content Management
•
•
•
•
•
•
Social Media Tools
Ratings & Reviews
Monitoring & Intelligence
Analytics
Customer Service Solutions
Enterprise social networking
•
•
•
•
•
•
Ad Network and Exchanges
DSPs/SSPs/DMPs
Programmatic Trading Space
Targeting/Retargeting
Tracking, Tag Management
Attribution
Optimisation
•
•
•
•
•
Mobile Marketing
Mobile App Platforms
Mobile DSPs
Mobile Ad Management/Ad
Serving
mCommerce
•
•
•
•
•
•
OVP‟s
Video Sharing
Video Commerce/
Marketing
Video Creation Tools
Video Ad Networks
Video Search Engines
Diversified
Vendors
Selected Representative Companies
7

9. Advertising Platforms Landscape – Illustrative Companies
Supply side
platforms (SSPs)
Ad Exchanges & Ad
Servers
Ad Networks
Data Management
Platforms (DMPs)
Demand side
platforms (DSPs)
Supply side
Agency buying
desks
Demand side
RTB
Focus
Commonly known as
yield managers/optimisers
Technology /
marketplaces to
connect publishers
and advertisers and
advertisements on
websites
Enable the publishers
of the website they
Represent to sell more
Inventory
Data providers and
data management
Platforms (DMP)
Technology for media
buyers
aggregate, bid on and
optimize digital
inventory
across multiple sources
Specialised entities of
media buying
agencies focusing on
media trading and
RTB
8

10. Strength Of The Global M&A Ad Tech Market
100
90
80
(# Deals)
70
60
50
40
78
61
30
20
49
43
36
32
34
Q3
2008
Q4
2008
10
26
34
55
43
78
89
88
65
48
Q4
2010
77
68
59
49
45
Q3
2010
64
73
70
0
Q1
2008
Q2
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Sources: Press releases, CapitalIQ, Corpfin, and Results’ Analysis
 Adtech consolidation continues at pace – however there is substantial VC funding going into the sector and the number of new start-ups is outpacing the
number of acquisitions (Source: Luma Partners)
 Key M&A drivers:
-
Established players have been acquiring new capabilities/ technologies to extend their existing product suites
-
Large internet conglomerates and technology companies continue to compete to remain „on top‟ of new tech innovations and are
competitively scouring the market for the best start-ups and talent
-
Yahoo, in particular, was a prolific acquirer in 2013 making over 30 acquisitions
 The IPO market has recently opened for adtech including RocketFuel, Criteo and YuMe, however these parties have yet to use their currency to pursue
acquisitions
-
As many of the recently IPO‟d companies have large operating losses and without profitability in sight, these companies are unlikely to make
significant acquisitions unless a deal is highly strategic
9

11. Selected Recent Deal Activity
Marketing Automation
Social CRM / Social Software
EV
($m)
EV/REV
Description
Nov-13
n.a.
n.a.
Social analytics platform
CRM and marketing
automation solutions
Oct-13
35
n.a.
Social advertising and analytics
platform
7.5x
Content marketing start-up
Oct-13
n.a.
n.a.
"Billboard", social ads to
promote products
n.a.
n.a.
Marketing automation &
demand generation
Jul-13
n.a.
n.a.
Social media monitoring
company
Jun-13
600
10.3x
Cross-channel campaign
management
Jun-13
n.a.
n.a.
Platform for conducting social
media analysis
Jun-13
2,562
8.1x
Cloud-based marketing
automation
May-13
n.a.
n.a.
Social commerce platform
May-13
344
7.2x
Lead generation and
conversion software
Apr-13
n.a.
n.a.
Social media listening and
compliance
n.a.
n.a.
App for SMEs to create email &
mobile marketing campaigns
Feb-13
c.75
n.a.
Social media monitoring for TV
shows & commercials
May-13
n.a.
n.a.
Web-based email marketing
system
Jan-13
n.a.
n.a.
Social media marketing suite
for SMBs
Dec-12
871
9.2x(1)
Cloud-based marketing
automation
Aug-12
40
n.a.
Social media advertising
services
Sep-12
n.a.
n.a.
Behavioural targeting &
predictive analytics
Jul-12
350
n.a.
Social media marketing
software
Oct-12
96
8.6x
SaaS marketing automation
platform
Jun-12
1,200
n.a.
Enterprise social networking
Oct-12
n.a.
n.a.
Marketing automation
software
Jun-12
n.a.
n.a.
Social media monitoring
Intelligence
May-12
150
4.3x
Digital messaging platform
Jun-12
745
c. 19x(2)
Social media marketing suite
Mar-12
n.a.
n.a.
Marketing automation solution
for Microsoft
May-12
166
13.9x
Rating and reviews software
EV
($m)
EV/REV
Description
Date
1,497
7.7x
Software to orchestrate
marketing interactions
n.a.
n.a.
Oct-13
15
Aug-13
Date
Buyer
Target
Dec-13
Oct-13
May-13
(1)
(2)
Ellie Mae
Swisscom
MortgageCE
O
Tweasy
Buyer
Target
Eloqua was on a revenue run rate of approx. $95m, 9.2x is the run rate revenue multiple
BuddyMedia generated approx. $25 million revenue in CY2011 (up 250% year-on-year). Based on Salesforce.com’s statements, the TTM revenue at the time of the deal was approx. $40 million
10

12. Selected Recent Deal Activity
Mobile Technology
Video Technology
EV
($m)
EV/REV
Description
Jan-14
49(3)
9.8x
Video advertising technology
Technology to target display
ads to audiences & locations
Dec-13
55(4)
2.2x
Mobile video advertising
technology platform
n.a.
Mobile data analytics platform
Oct-13
n.a.
n.a.
Social artery for video news,
inspiration and leading voices
15
n.a.
Mobile personalisation and
native advertising technology
Sep-13
n.a.
n.a.
Online video demand side
platform
Oct-13
n.a.
n.a.
Cloud-based mobile
messaging tools
Aug-13
490(5)
n.a.
TV advertising distribution unit
of Digital Generation
Sep-13
350
n.a.
Ad inventory management
platform for mobile publishers
Aug-13
405
n.a.
Video advertising platform
Sep-13
n.a.
n.a.
Real-time bidding platform for
mobile ads
Aug-13
n.a.
n.a.
Video content syndication and
advertising platform
Aug-13
209(2)
n.a.
Mobile ad network - targeted
advertising
May-13
n.a.
n.a.
Platform for social video
advertising
Aug-13
n.a.
n.a.
US assets of mobile marketing
and software company
Apr-13
n.a.
n.a.
Video advertising network
Jul-13
n.a.
n.a.
Mobile marketing technology
and services
Mar-13
n.a.
n.a.
Video advertising network
Jul-13
n.a.
n.a.
Personalized, hyper-local
targeted offers on mobile
Jan-13
n.a.
n.a.
In-stream video advertising
optimization
Jul-13
n.a.
n.a.
Mobile advertising targeting
Dec-12
n.a.
n.a.
Video and mobile ad
technology provider
Jul-13
n.a.
n.a.
Monitors advertising
performance on apps
Oct-12
n.a.
n.a.
Video advertising network
Jun-13
n.a.
n.a.
Mobile app focused on
location and check-in space
Mar-12
13
1.4x
Video advertising network
May-13
3
n.a.
Platform that operates in
mobile local search & ads
Jan-12
n.a.
n.a.
„InPlay‟ Video analytics
solutions from TubeMogul
EV
($m)
EV/REV
Description
Date
Jan-14
n.a.
n.a.
Mobile marketing business in
India, UK and US
Jan-14
n.a.
n.a.
Oct-13
200(1)
Oct-13
Date
(1)
(2)
(3)
Buyer
Target
Total deal size is reportedly between $100-200m
Jumptap shareholders received 24.6m of Millennial Media shares, this EV is based in August 14 th share
price of $8.5
Consideration consists of 3m of Brightcove stock and $9m in cash
(4)
(5)
Buyer
Target
A further $10m of consideration is payable to employees and management as incentive and retention
payments payable over 12 months
EV includes extra consideration of $5m which is contingent on further investment not being required for
the new company post acquisition
11

13. Selected Recent Deal Activity
Ecommerce Technology
Advertising Platforms
EV
($m)
EV/REV
Description
Date
EV
($m)
EV/REV
Description
Nov-13
n.a.
n.a.
CXM platform with integrated
e-commerce engine
Dec-13
3
n.a.(1)
Advertising solutions to match
advertisements to content
Oct-13
n.a.
n.a.
SaaS logistics and supply chain
management for eCommerce
Nov-13
n.a.
n.a.
RTB buy side platform
Oct-13
n.a.
n.a.
Customer-centric eCommerce
solution
Nov-13
n.a.
n.a.
Technology in programmatic,
desktop RTB trading
Oct-13
n.a.
n.a.
eCommerce personalisation
technology
Nov-13
40
n.a.
Demand side platform
Aug-13
n.a.
n.a.
eCommerce solutions provider
Oct-13
119
n.a.
Data management platform
Aug-13
1
0.7x
eCommerce solutions provider
Oct-13
1(2)
n.a.
Ad platform for rich media
advertisements
Jul-13
n.a.
n.a.
Tag management technology
Oct-13
n.a.
n.a.
Self-serve advertising platform
and dynamic creative vendor
Jul-13
n.a.
n.a.
eCommerce app platform
Sep-13
n.a.
n.a.
Advertising platform
Jun-13
n.a.
n.a.
eCommerce platform that
places promotions (Buy Now)
Aug-13
n.a.
n.a.
Digital advertising distribution
technology
Jun-13
n.a.
n.a.
eCommerce fulfilment
technology
Aug-13
13(3)
n.a.
Demand side platform
Jun-13
1,351
10.8x
eCommerce software
Jul-13
n.a.
n.a.
Native advertising platform
Jun-13
n.a.
n.a.
Commerce and order
management platform
Jul-13
n.a.
n.a.
Online ad network active in
programmatic buying space
May-13
n.a.
n.a.
Big data company for
optimisation of online discounts
Jul-13
2
n.a.
Supply side platform
May-13
284
2.0x
Digital marketing and
eCommerce company
Jun-13
n.a.
n.a.
Certain IP assets of adBrite‟s ad
exchange
May-13
n.a.
n.a.
Recommendation engine and
online personalisation
Jun-13
n.a.
n.a.
Premium advertising platform
Date
(1)
(2)
(3)
Buyer
Target
Buyer
Target
EV / TTM EBIT multiple of 2.2x
Further consideration of up to $13.1m is available based on Republic Project reaching revenue and adjusted EBITDA performance targets in 2014 and 2015
Valuation reportedly ranges from $10-15m
12

14. Content
01
About Us
02
Market Landscape
03
Public Markets Environment
13

15. Valuation Benchmarks
Revenue growth (13-14E)
EV/REV 2014E
7.0x
38%
40%
6.4x
35%
6.0x
30%
5.0x
4.0x
21%
20%
4.2x
4.0x
25%
17%
3.4x
18%
3.0x
15%
2.5x
15%
9%
10%
1.4x
1.0x
4%
5%
1.9x
2.0x
0.0x
0%
Diversified
Internet
Marketing
Technology
Video
Mobile
Social CRM
Diversified
Agencies
Diversified
Internet
Enterprise
Software
Marketing
Technology
EBITDA Margins 2014E
Mobile
Social CRM
Diversified
Agencies
Enterprise
Software
EV/EBITDA 2014E
35%
30%
Video
20.0x
30%
28%
18.6x
18.0x
16.0x
26%
25%
14.3x
14.0x
12.9x
12.3x
11.5x
12.0x
20%
9.2x
10.0x
16%
15%
8.0x
12%
6.0x
10%
4.0x
5%
3%
2.0x
N/A
0%
0%
n.a.
0.0x
Diversified
Internet
Marketing
Technology
Video
Mobile
Social CRM
Diversified
Agencies
Enterprise
Software
Diversified
Internet
Marketing
Technology
Video
Mobile
Social CRM
Diversified
Agencies
Enterprise
Software
Notes: EV = Enterprise Value; Calendarised to December year end
Source: Capital IQ and Analyst Reports
Note – see appendix for details of companies included in each category
14

16. IPO Case Studies
IPO
Company
Current Trading
IPO Date
IPO Share
Price
Valuation
Current
Share Price
% Change
Since IPO
High Since
Trading
Low Since
Trading
Current EV
EV/Rev
2014E
EV/EBITDA
2014E
November
2013
0.96
1.22
28%
1.50
0.68
168
n.a.
n.a.
October 2013
31.00
46.84
51%
47.16
28.27
2,357
9.5x
n.m.
September
2013
29.00
53.25
84%
71.89
37.81
1,779
7.5x
n.m.
August 2013
9.00
6.95
(23%)
12.08
5.86
172
1.8x
17.0x
June 2013
10.00
4.29
(57%)
11.09
3.59
120
1.9x
n.m.
May 2013
13.00
39.87
207%
45.00
17.20
1,444
10.7x
n.m.
March 2013
14.00
11.56
(17%)
19.95
8.50
279
2.9x
n.m.
AIM
Nasdaq
Nasdaq
NYSE
NYSE
Nasdaq
NYSE
$ millions, except share price data
Source – Capital IQ, Market Data as of 24th February 2014; Note – Calendarised to December year end
15

17. Contact Us
Julie Langley
Mark Williams
Partner
Director
Di: +44 (0) 20 7514 8247
E: jlangley@resultsig.com
Di: +44 (0) 20 7514 8242
E: mwilliams@resultsig.com
27 Soho Square, London, W1D 3AY
t +44 20 7629 7575 | f +44 20 7629 2233
www.resultsig.com
16

18. Content
Appendix
17

19. Selected Publicly Traded Companies
usd millions, except per share
data
Company
Price
(24-Feb-14)
Market
Cap
Net
Debt
Enterprise
Value
1,212.51
37.42
43.70
70.78
199.59
351.78
56.30
407,465
37,960
3,615
180,471
24,057
161,560
73,260
(50,915)
(2,125)
(85)
(10,973)
(2,324)
(6,311)
(4,902)
356,550
35,835
3,529
169,498
21,732
155,249
68,358
Revenue
CY2014
CY2015
Valuation Metrics
EBITDA
CY2014
CY2015
Operating Metrics
Revenue Growth
CY13-14
CY14-15
EBITDA Margin
CY2014
CY2015
Diversified Internet
Google Inc.
Yahoo! Inc.
AOL Inc.
Facebook, Inc.
LinkedIn Corporation
Amazon.com Inc.
eBay Inc.
5.5 x
7.7 x
1.9 x
11.5 x
7.7 x
1.4 x
3.3 x
14.7 x
32.0 x
6.7 x
25.1 x
n.m.
22.5 x
11.4 x
11.6 x
n.m.
6.4 x
19.1 x
28.5 x
17.0 x
10.1 x
17.4%
2.6%
2.2%
43.6%
38.5%
20.6%
13.8%
16.8%
2.1%
0.5%
30.8%
33.8%
19.8%
14.5%
43.4%
24.7%
27.9%
59.7%
24.5%
7.7%
32.8%
46.9%
2.7%
29.1%
60.1%
26.9%
8.5%
32.4%
2.8 x
6.4 x
9.1 x
25th percentile
Median
75th percentile
6.4 x
7.9 x
1.9 x
15.0 x
10.3 x
1.7 x
3.7 x
2.6 x
5.5 x
7.7 x
12.2 x
18.6 x
24.5 x
10.5 x
14.3 x
18.5 x
8.2%
17.4%
29.6%
8.3%
16.8%
25.3%
24.6%
27.9%
38.1%
17.7%
29.1%
39.7%
Marketing Technology
Experian plc
Marin Software Incorporated
18.49
11.56
17,984
377
3,314
(98)
21,298
279
4.1 x
2.9 x
3.8 x
2.4 x
12.0 x
n.m.
11.0 x
n.m.
7.1%
23.8%
7.3%
19.8%
34.2%
(24.5%)
34.6%
(15.4%)
LivePerson Inc.
Demandware, Inc.
Vocus Inc.
Digital River Inc.
Interactive Intelligence Group Inc.
Constant Contact, Inc.
Marketo, Inc.
Rocket Fuel Inc.
Criteo SA
PROS Holdings, Inc.
13.65
73.88
13.23
18.06
76.45
27.53
39.87
53.25
46.84
39.11
739
2,556
280
591
1,546
844
1,565
1,866
2,663
1,164
(92)
(275)
44
(304)
(98)
(123)
(121)
(86)
(306)
(91)
647
2,281
324
288
1,448
721
1,444
1,779
2,357
1,073
3.2 x
15.8 x
1.8 x
0.8 x
4.0 x
2.2 x
10.7 x
7.5 x
9.5 x
6.1 x
2.8 x
11.1 x
1.7 x
0.7 x
3.4 x
2.0 x
8.1 x
4.7 x
7.2 x
5.1 x
29.8 x
n.m.
14.3 x
5.7 x
n.m.
12.3 x
n.m.
n.m.
n.m.
n.m.
23.6 x
n.m.
12.1 x
5.2 x
n.m.
10.1 x
n.m.
n.m.
26.5 x
30.0 x
13.5%
39.1%
(2.2%)
(4.0%)
15.2%
13.2%
40.2%
74.3%
38.8%
21.4%
14.3%
42.8%
3.1%
3.4%
17.1%
12.7%
32.1%
59.2%
31.2%
20.3%
10.8%
2.8%
12.4%
13.4%
5.9%
18.2%
(28.0%)
1.8%
19.8%
16.3%
11.9%
6.8%
14.1%
14.3%
5.3%
19.7%
(14.3%)
10.3%
27.3%
16.9%
2.7 x
4.0 x
8.0 x
2.3 x
3.6 x
5.6 x
12.0 x
12.3 x
14.3 x
10.5 x
12.1 x
25.0 x
11.7%
18.3%
38.8%
11.4%
18.5%
31.4%
2.5%
11.6%
16.8%
6.5%
13.0%
17.6%
1.8 x
n.a.
4.6 x
1.9 x
1.8 x
1.6 x
n.a.
n.a.
1.4 x
1.4 x
n.m.
n.a.
11.6 x
n.m.
17.0 x
n.m.
n.a.
n.a.
13.7 x
8.3 x
16.9%
n.a.
21.3%
20.6%
28.3%
16.3%
n.a.
n.a.
33.1%
30.3%
(5.3%)
n.a.
39.7%
(11.6%)
10.9%
0.0%
n.a.
n.a.
10.2%
17.1%
1.8 x
1.9 x
2.5 x
1.4 x
1.4 x
1.5 x
12.9 x
14.3 x
15.6 x
9.6 x
11.0 x
12.3 x
19.7%
21.0%
23.1%
23.3%
30.3%
31.7%
(6.9%)
2.8%
18.1%
5.1%
10.2%
13.6%
25th percentile
Median
75th percentile
Video
Brightcove, Inc.
Rightster Group Plc
Blinkx plc
Tremor Video, Inc.
YuMe, Inc.
25th percentile
Median
75th percentile
See Slide 20 for sources and notes
9.38
1.22
1.76
4.29
6.95
270
142
721
213
235
(36)
25
(69)
(93)
(63)
234
168
652
120
172
18

20. Selected Publicly Traded Companies
usd millions, except per share
data
Company
Price
(24-Feb-14)
Market
Cap
Net
Debt
Enterprise
Value
6.08
13.39
646
1,771
(99)
(163)
547
1,607
Revenue
CY2014
CY2015
Valuation Metrics
EBITDA
CY2014
CY2015
Operating Metrics
Revenue Growth
CY13-14
CY14-15
EBITDA Margin
CY2014
CY2015
Mobile
Millennial Media Inc.
Opera Software ASA
2.1 x
3.1 x
12.2 x
13.6 x
6.5 x
10.4 x
40.4%
36.4%
36.5%
26.3%
23.7%
28.9%
32.7%
30.0%
3.1 x
3.4 x
3.7 x
2.4 x
2.6 x
2.9 x
12.5 x
12.9 x
13.2 x
7.4 x
8.4 x
9.4 x
37.4%
38.4%
39.4%
28.8%
31.4%
33.9%
25.0%
26.3%
27.6%
30.6%
31.3%
32.0%
2.4 x
2.7 x
2.1 x
2.3 x
n.m.
n.m.
n.m.
n.m.
12.3%
18.4%
13.8%
18.3%
(3.5%)
(8.2%)
4.3%
(1.5%)
2.5 x
2.5 x
2.6 x
25th percentile
Median
75th percentile
2.9 x
3.9 x
2.2 x
2.2 x
2.2 x
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
13.8%
15.4%
16.9%
14.9%
16.0%
17.2%
(7.0%)
(5.8%)
(4.7%)
(0.0%)
1.4%
2.8%
0.5 x
1.3 x
1.1 x
1.4 x
1.9 x
1.9 x
0.5 x
1.3 x
1.1 x
1.4 x
1.8 x
1.8 x
8.8 x
7.9 x
8.8 x
9.7 x
10.1 x
10.6 x
8.5 x
7.5 x
7.6 x
8.5 x
9.4 x
9.8 x
7.3%
2.7%
4.2%
3.9%
5.1%
4.4%
3.5%
3.4%
4.4%
4.6%
5.8%
5.4%
5.6%
16.4%
13.0%
14.8%
18.5%
17.5%
5.6%
16.9%
14.2%
16.1%
18.9%
17.9%
1.2 x
1.4 x
1.7 x
1.1 x
1.3 x
1.7 x
8.8 x
9.2 x
10.0 x
7.8 x
8.5 x
9.2 x
4.0%
4.3%
4.9%
3.7%
4.5%
5.2%
13.4%
15.6%
17.2%
14.7%
16.5%
17.7%
Social CRM / Social Software
Bazaarvoice, Inc.
Jive Software, Inc.
7.34
8.15
546
564
(75)
(100)
472
464
25th percentile
Median
75th percentile
Diversified Agencies
Dentsu Inc.
38.31
Havas
8.55
The Interpublic Group of Companies, Inc.
17.17
Omnicom Group Inc.
75.85
Publicis Groupe SA
94.67
WPP plc
22.46
25th percentile
Median
75th percentile
See Slide 20 for sources and notes
11,047
3,513
7,281
19,716
19,558
30,770
241
(236)
1,147
1,999
(748)
4,966
11,288
3,277
8,428
21,714
18,810
35,736
19

21. Selected Publicly Traded Companies Cont.
usd millions, except per share
data
Company
Price
(24-Feb-14)
Market
Cap
Net
Debt
Enterprise
Value
7.15
32.67
68.77
126.13
29.31
63.91
38.14
37.69
79.94
77.41
51.46
7,860
1,489
34,435
7,191
2,601
39,657
177,190
312,978
95,405
22,409
6,321
599
141
(1,660)
(191)
(228)
1,754
(12,330)
(59,297)
2,084
(832)
31
8,459
1,630
32,775
6,999
2,374
41,411
164,860
253,681
97,489
21,577
6,351
Revenue
CY2014
CY2015
Valuation Metrics
EBITDA
CY2014
CY2015
Operating Metrics
Revenue Growth
CY13-14
CY14-15
EBITDA Margin
CY2014
CY2015
Enterprise Software
Sage Group plc
Blackbaud Inc.
Adobe Systems Inc.
Concur Technologies, Inc.
Qlik Technologies, Inc.
Salesforce.com, Inc
Oracle Corporation
Microsoft Corporation
SAP AG
Intuit Inc.
Open Text Corporation
25th percentile
Median
75th percentile
3.7 x
2.9 x
7.9 x
9.6 x
4.3 x
8.1 x
4.2 x
2.9 x
4.0 x
4.7 x
3.6 x
3.5 x
2.7 x
6.6 x
7.7 x
3.7 x
6.5 x
4.0 x
2.7 x
3.7 x
4.3 x
3.2 x
12.2 x
15.6 x
29.5 x
n.m.
n.m.
n.m.
8.2 x
7.8 x
11.0 x
11.7 x
11.3 x
11.4 x
12.2 x
18.8 x
n.m.
n.m.
n.m.
7.7 x
7.4 x
10.3 x
10.7 x
9.6 x
0.8%
9.9%
2.2%
25.7%
16.9%
29.5%
4.3%
8.8%
6.1%
7.8%
18.5%
5.2%
7.7%
20.3%
23.7%
17.2%
23.0%
4.5%
6.7%
6.9%
7.9%
13.0%
30.0%
18.9%
26.8%
16.5%
7.7%
16.7%
51.1%
36.8%
36.0%
39.8%
31.8%
30.6%
22.5%
35.0%
17.6%
9.6%
17.0%
51.5%
36.5%
36.2%
40.3%
33.2%
3.6 x
4.2 x
6.3 x
3.3 x
3.7 x
5.4 x
10.3 x
11.5 x
13.1 x
9.1 x
10.5 x
11.6 x
5.2%
8.8%
17.7%
6.8%
7.9%
18.8%
17.8%
30.0%
36.4%
20.0%
33.2%
36.4%
Sources:
Net revenues have been used where appropriate
Yahoo – financials taken from Credit Suisse (January 2014), market data taken from CapitalIQ
Google – financials taken from Credit Suisse (January 2014), market data taken from CapitalIQ
AOL – financials taken from Deutsche Bank (February 2014), market data taken from CapitalIQ
Rocket Fuel – financials taken from Credit Suisse (February 2014), market data taken from CapitalIQ
Criteo – financials taken from Deutsche Bank (February 2014), market data taken from CapitalIQ
Tremor Video – financials taken from Credit Suisse (November 2013), market data taken from CapitalIQ
Millennial Media – financials taken from Morgan Stanley (January 2014), market data taken from CapitalIQ
YuMe – financials taken from Deutsche Bank (November 2013), market data taken from CapitalIQ
Dentsu - financials taken from Morgan Stanley (January 2014), market data taken from CapitalIQ
Blinkx - financials taken from Jefferies (January 2014), market data taken from CpaitalIQ
For all other companies – financials and market data taken from CapitalIQ
Note:
Financials calendarised to December year end, market data as at 24 February 2014
20