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Software Equity Group Flash Report

August 2012
Select M&A Transactions
and
Financial and Stock Market Performance
Public Software Companies By Product Category
Public SaaS Companies
Public Internet Companies By Product Category

Software Equity Group, L.L.C.


12220 El Camino Real, #320
San Diego, CA 92130
p: (858) 509-2800
f: (858) 509-2818
info@softwareequity.com

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

ABOUT OUR FIRM


Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private
companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the
NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently
ranked among the top ten investment banks worldwide for application software mergers and acquisitions.
Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain
expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a Service
(Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly
disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate
strategic combinations that enhance shareholder value.
THE SEG SOFTWARE COMPANY MENTORING PROGRAM
As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in
the next few years. We meet with them periodically, invite them to call whenever theyd like our opinion on an operational issue that might have exit implications later on, and we keep
them apprised of M&A activity and financings in their product category. And the best news we dont charge for this mentoring advice. Its complimentary. Its our way of building
value, and relationships.
Were looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone
conversation. Well then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, well
discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. Well assess the strengths and weakness of your financial
performance, how that compares to other software companies your size, and how that relates to buyer expectations. Well discuss your market strategy, sales strategy, sales team
track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road.
Were a terrific sounding board. Well give you an informed, honest and frank opinion thats what were known for. And well offer informed and insightful observations, ideas and
options based on 17 years of working with countless software companies worldwide.
If you run a profitable software company with revenue in excess of $10 million, and youre interested in learning more about SEGs complimentary, no obligation mentoring
program, please contact Kris Beible at kbeible@softwareequity.com or 858-509-2800.
ADDITIONAL RESEARCH
For our complimentary current and archived Quarterly Reports from 1Q03, please visit: http://www.softwareequity.com/research_quarterly_reports.aspx
For our complimentary current and archived Monthly Flash Reports from July 2008, please visit: http://www.softwareequity.com/research_flash_reports.aspx
For our Annual Reports from 2003 through 2010, please visit: http://www.softwareequity.com/research_annual_reports.aspx

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

List of Commonly Used Acronyms


CRM

Customer Relationship Management

EBITDA

Earnings before Interest, Taxes, Depreciation, and Amortization

ERP

Enterprise Resource Planning

EV

Enterprise Value

FCF

Free Cash Flow

FORWARD

Current EV / Next Four Quarters' Consensus Financial Estimates

NASDAQ

National Association of Securities Dealers Automated Quotation System

PLM

Product Lifecycle Management

R&D

Research and Development

S&P

Standard & Poor's

SaaS

Software-as-a-Service

SEG

Software Equity Group

SG&A

Selling, General, & Administrative

SW

Software

TTM

Trailing Twelve Month

YoY

Year-over-Year

YTD

Year-to-date

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

Select Software Industry M&A Transactions


July 2012

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

Select July 2012 Software Industry M&A Transactions


Date
Announced
07/31/2012
07/30/2012
07/30/2012
07/26/2012
07/26/2012
07/26/2012
07/24/2012
07/23/2012
07/23/2012
07/20/2012
07/20/2012
07/20/2012
07/19/2012
07/19/2012
07/18/2012
07/17/2012
07/17/2012
07/17/2012
07/16/2012
07/16/2012
07/16/2012
07/13/2012
07/13/2012
07/13/2012
07/13/2012
07/12/2012
07/12/2012
07/11/2012
07/11/2012
07/11/2012
07/10/2012
07/10/2012
07/10/2012
07/10/2012
07/09/2012
07/09/2012
07/09/2012
07/09/2012
07/09/2012
07/06/2012
07/05/2012
07/03/2012
07/03/2012
07/02/2012
07/02/2012
07/02/2012
07/02/2012
07/02/2012

Acquirer
Allot Communications Ltd. (NasdaqGS:ALLT)
Synopsys Inc. (NasdaqGS:SNPS)
Roper Industries Inc. (NYSE:ROP)
Brightcove, Inc. (NasdaqGM:BCOV)
Mobiquity, Inc.
Thomson Reuters Corporation (TSX:TRI)
SciQuest, Inc. (NasdaqGS:SQI)
Merge Healthcare Incorporated (NasdaqGS:MRGE)
RealPage, Inc. (NasdaqGS:RP)
Facebook, Inc. (NasdaqGS:FB)
Google Inc. (NasdaqGS:GOOG)
Azumio, Inc.
NetScout Systems, Inc. (NasdaqGS:NTCT)
Oracle Corporation (NasdaqGS:ORCL)
AlphaPoint Technology, Inc. (OTCBB:APPO)
Autodesk, Inc. (NasdaqGS:ADSK)
TiVo Inc. (NasdaqGS:TIVO)
PayPal, Inc.
Accuray Incorporated (NasdaqGS:ARAY)
CSG Systems International Inc. (NasdaqGS:CSGS)
Wolters Kluwer Financial Services, Inc.
Cisco Systems, Inc. (NasdaqGS:CSCO)
Intel Corporation (NasdaqGS:INTC)
NLbuzz B.V.
UNICOM Systems, Inc.
Aurora Capital Group
Dentsu Inc. (TSE:4324)
IHS Inc. (NYSE:IHS)
Xerox Corp. (NYSE:XRX)
SNL Financial LC
Oracle Corporation (NasdaqGS:ORCL)
Environmental Systems Research Institute, Inc.
KANA Software, Inc.
Net@Work, Inc.
salesforce.com, inc (NYSE:CRM)
Aareon AG
ICOA, Inc. (OTCPK:ICOA)
Red Giant Software LLC
Squarefactor, Inc.
TeleCommunication Systems Inc. (NasdaqGS:TSYS)
Asure Software, Inc. (NasdaqCM:ASUR)
Lender Processing Services, Inc. (NYSE:LPS)
Reckon Ltd. (ASX:RKN)
Cadence Design Systems Inc. (NasdaqGS:CDNS)
Meridian Project Systems, Inc.
Numark Industries, LP
Rubik Financial Limited (ASX:RFL)
Xerox Litigation Services

Target
Oversi Networks Ltd.
Ciranova, Inc.
Sunquest Information Systems, Inc.
Zencoder, Inc.
Smartsoft Mobile Solutions, Inc.
MarkMonitor, Inc.
Upside Software, Inc.
Advanced Clinical Software, Inc.
Rent Mine Online Inc.
Acrylic Software
Sparrow SAS
SkyHealth LLC
Accanto Systems Srl, Intelligent Customer
Skire, Inc.
SoftPay Solutions LLC
Socialcam Inc.
TRA, Inc.
Lumber Labs, Inc.
Morphormics Inc.
Ascade AB
Financial Architects nv
Virtuata, Inc.
Whamcloud Incorporated
The Saints BV
DETEC Software Products GmbH
Market Track, LLC
Aegis Group plc (LSE:AGS)
Invention Machine Corporation
Wireless Data Services, Ltd.
SwiftKnowledge, LLC
Involver Inc.
GeoIQ, Inc.
Sword Ciboodle Ltd
Synergy Plus Solutions, Inc.
GoInstant Inc.
1st Touch Limited
Tango Software Corp.
Singular Software Inc.
Intellavia LLC
microDATA GIS, Inc.
PeopleCube, Inc.
LendingSpace Partners, LLC
Lindenhouse Software Limited
Sigrity, Inc.
WinEstimator, Inc.
M-Audio LLC and AIR Software Group
Coin Software Pty Ltd.
Lateral Data, LP

Target TTM Revenue


($mm)
$1.50
$3.67
$1,766.67
$15.00
-

Implied Enterprise
EV/ Revenue
Value ($mm)
$21.00
$1,390.00
$30.00
$22.00
$9.50
6.3x
$60.00
$20.00
$5.70
$19.00
$4,517.03
2.6x
$40.00
$70.00
$37.00
$13.87
$22.63
$78.30
$13.90
$27.37
$30.00
-

SEG Software Index


Category Performance

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index: All Categories


Category Name
SEG Software Index
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 Mgmt & Integration
Supply Chain Management &
Systems Management
Vertical - Finance
Vertical - Other

Market Cap
$1,339.7
$676.3
$1,141.9
$2,024.7
$2,566.7
$5,856.8
$2,046.4
$823.2
$504.8
$149,307.0
$278.0
$2,126.3
$597.1
$8,004.1
$726.8
$10,377.1
$1,915.7
$1,175.9

EV
$1,280.9
$555.1
$933.8
$1,977.7
$2,468.6
$5,665.2
$2,652.8
$719.2
$514.8
$135,504.0
$138.4
$2,155.8
$636.1
$6,166.0
$642.1
$9,558.1
$1,958.7
$1,129.9

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Revenue
$437.0
$500.3
$387.0
$1,006.0
$1,032.5
$2,137.7
$1,394.1
$769.4
$257.5
$73,723.0
$167.5
$889.7
$219.7
$3,476.7
$244.9
$2,174.0
$375.5
$333.4

TTM
Gross
Margin
67.4%
56.0%
78.4%
76.2%
84.0%
71.6%
63.1%
57.8%
63.1%
71.6%
60.9%
68.1%
79.0%
74.6%
61.1%
84.6%
68.9%
56.0%

TTM
EBITDA
Margin
19.6%
19.2%
8.5%
22.1%
21.1%
29.0%
24.4%
9.2%
21.1%
36.1%
6.6%
16.8%
19.9%
22.6%
19.8%
25.8%
36.9%
13.9%

TTM
Revenue
Growth EV/ Revenue
13.0%
2.3x
9.8%
1.3x
15.8%
2.1x
5.4%
2.0x
13.5%
2.5x
10.1%
2.7x
8.6%
2.7x
8.2%
0.7x
21.8%
2.4x
4.2%
2.7x
19.7%
1.5x
17.3%
2.3x
14.4%
2.2x
6.0%
2.4x
16.9%
2.1x
18.1%
5.2x
12.6%
4.6x
24.6%
2.7x

EV/
Forward
EBITDA EV/ Revenue
11.1x
2.2x
6.9x
1.5x
29.2x
1.9x
8.8x
1.9x
11.8x
2.2x
9.0x
2.4x
10.0x
2.6x
8.2x
0.5x
13.9x
2.3x
8.4x
2.5x
14.2x
1.4x
13.0x
2.0x
8.7x
3.3x
8.8x
2.3x
10.6x
2.0x
20.8x
4.5x
11.9x
3.4x
20.6x
2.5x

Forward
EV/
EBITDA
8.7x
6.1x
15.3x
7.4x
8.1x
6.9x
9.2x
3.4x
9.0x
6.9x
8.2x
8.6x
11.7x
7.4x
11.9x
14.2x
9.0x
12.5x

YoY Stock
Market
Return
-3.4%
-19.6%
-22.0%
-3.4%
18.5%
2.7%
12.7%
-26.5%
-23.6%
2.7%
-37.6%
-8.4%
-5.3%
0.0%
22.4%
8.7%
18.5%
-3.6%

SEG SW Index Software Stock Market Return: Jan - Jul 2012

13.0%
10.9%
13.3%
67.4%
19.6%
10.8%
36.8%
14.6%

25%

2.0
1.8
17.3%
66
37
0.5x

10%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

5%

0%
Cash Flow Statement Analysis (Median)
Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

15.3%
15.0%
-53.2%
-24.6%
16.0%

-5%
DOW

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Billing and Service Management


Company Name
Amdocs Limited
AsiaInfo Holdings, Inc.
CSG Systems International, Inc.
Evolving Systems, Inc.
MIND C.T.I. Ltd.
NeuStar, Inc
Synchronoss Technologies, Inc.

Ticker
DOX
ASIA
CSGS
EVOL
MNDO
NSR
SNCR
Median:

Market Cap
$4,992.3
$754.8
$568.0
$64.6
$31.5
$2,368.9
$676.3
$676.3

EV
$4,096.8
$501.1
$684.6
$50.9
$14.7
$2,725.2
$555.1
$555.1

TTM
Revenue
$3,237.0
$500.3
$739.2
$21.8
$20.4
$732.7
$252.9
$500.3

TTM
Gross
Margin
35.7%
40.7%
50.4%
64.8%
59.9%
77.3%
56.0%
56.0%

TTM
EBITDA
Margin
18.4%
15.2%
22.3%
10.7%
21.1%
42.0%
19.2%
19.2%

TTM
Revenue
Growth EV/ Revenue
3.5%
1.3x
9.8%
1.0x
13.3%
0.9x
6.0%
2.3x
7.3%
0.7x
30.8%
3.7x
25.6%
2.2x
9.8%
1.3x

EV/
Forward
EBITDA EV/ Revenue
6.9x
1.2x
6.6x
0.9x
4.2x
0.9x
22.0x
2.0x
3.4x
n/a
8.9x
3.2x
11.4x
1.9x
6.9x
1.5x

Forward
EV/
EBITDA
5.9x
5.6x
4.2x
12.0x
n/a
6.5x
6.3x
6.1x

YoY Stock
Market
Return
-6.2%
-31.9%
-0.3%
-19.6%
-34.4%
37.0%
-39.6%
-19.6%

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

9.8%
15.1%
7.5%
56.0%
19.2%
11.8%
18.0%
14.9%

Billing and Service Management Software Stock Market Return: Jan - Jul 2012
25%
20%
15%
10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

2.6x
2.3x
17.9%
73.6
29.3
0.6x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

5%
0%
-5%
-10%

15.6%
17.9%
-98.6%
10.8%
42.2%

-15%
Billing & Service Management

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Business Intelligence


Company Name
Actuate Corporation
MicroStrategy Incorporated
Pegasystems Inc.
Progress Software Corporation
PROS Holdings
Qlik Technologies

Ticker
BIRT
MSTR
PEGA
PRGS
PRO
QLIK
Median:

Market Cap
$314.9
$1,299.8
$1,039.4
$1,244.4
$381.4
$1,714.9
$1,141.9

EV
$247.2
$1,104.3
$951.4
$916.2
$310.5
$1,519.7
$933.8

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

15.8%
6.2%
66.8%
78.4%
8.5%
4.4%
48.3%
16.4%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Gross
Margin
84.3%
74.5%
60.9%
82.3%
72.7%
89.5%
78.4%

TTM
EBITDA
Margin
22.4%
6.1%
6.5%
18.8%
10.5%
6.5%
8.5%

TTM
Revenue
Growth EV/ Revenue
1.6%
1.8x
14.6%
1.9x
16.9%
2.2x
-7.2%
1.8x
31.5%
2.9x
29.7%
4.4x
15.8%
2.1x

EV/
Forward
EBITDA EV/ Revenue
7.9x
1.7x
30.7x
1.6x
34.6x
1.9x
9.7x
1.9x
27.8x
2.6x
67.5x
3.7x
29.2x
1.9x

Forward
EV/
EBITDA
5.8x
15.3x
17.1x
8.0x
15.3x
25.4x
15.3x

YoY Stock
Market
Return
5.3%
-25.4%
-32.0%
-18.5%
-14.5%
-33.7%
-22.0%

Business Intelligence Software Stock Market Return: Jan - Jul 2012


35%
30%
25%
20%
15%

2.0x
1.8x
16.9%
78.4
35.2
0.5x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Revenue
$140.2
$588.9
$425.5
$503.7
$106.6
$348.5
$387.0

5.9%
71.2%
-121.7%
-19.3%
35.1%

10%
5%
0%
-5%
-10%
Business Intelligence

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Development Platforms


Company Name
Actuate Corporation
Adobe Systems Incorporated
BSQUARE Corporation
Compuware Corporation
GeekNet
Magic Software Enterprises Ltd.
Microsoft Corporation
Oracle Corporation
Progress Software Corporation
Red Hat, Inc.
Software AG

Ticker
BIRT
ADBE
BSQR
CPWR
GKNT
MGIC
MSFT
ORCL
PRGS
RHT
XTRA:SOW
Median:

Market Cap
$314.9
$15,249.6
$33.8
$2,024.7
$126.9
$159.5
$248,483.9
$149,307.0
$1,244.4
$10,377.1
$2,835.4
$2,024.7

EV
$247.2
$13,761.5
$17.0
$1,977.7
$94.4
$119.6
$199,214.9
$135,504.0
$916.2
$9,558.1
$2,853.5
$1,977.7

TTM
Revenue
$140.2
$4,335.0
$96.4
$1,006.0
$124.8
$118.5
$73,723.0
$37,121.0
$503.7
$1,183.1
$1,371.4
$1,006.0

TTM
Gross
Margin
84.3%
89.4%
20.3%
66.2%
26.8%
42.0%
76.2%
78.8%
82.3%
84.6%
61.6%
76.2%

TTM
EBITDA
Margin
22.4%
34.4%
-0.1%
17.5%
1.0%
18.1%
41.7%
43.2%
18.8%
22.1%
27.8%
22.1%

TTM
Revenue
Growth EV/ Revenue
1.6%
1.8x
7.1%
3.2x
-8.9%
0.2x
5.6%
2.0x
19.3%
0.8x
18.2%
1.0x
5.4%
2.7x
4.2%
3.7x
-7.2%
1.8x
22.6%
8.1x
-4.4%
2.1x
5.4%
2.0x

EV/
Forward
EBITDA EV/ Revenue
7.9x
1.7x
9.2x
3.0x
n/a
n/a
11.2x
1.9x
75.1x
0.7x
5.6x
0.9x
6.5x
2.5x
8.4x
3.5x
9.7x
1.9x
36.5x
6.9x
7.5x
n/a
8.8x
1.9x

Forward
EV/
EBITDA
5.8x
6.8x
n/a
8.2x
13.6x
n/a
5.8x
6.9x
8.0x
24.2x
n/a
7.4x

YoY Stock
Market
Return
5.3%
11.9%
-50.5%
-3.4%
-19.8%
-16.0%
8.2%
0.0%
-18.5%
27.8%
-33.3%
-3.4%

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

5.4%
3.4%
-19.2%
76.2%
22.1%
13.7%
29.3%
12.2%

Development Platforms Software Stock Market Return: Jan - Jul 2012


25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

2.3x
2.2x
25.0%
71.0
26.1
0.5x

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%

19.2%
18.4%
-69.6%
-23.4%
18.9%

-5%
Development Platforms

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Engineering & PLM


Company Name
ANSYS, Inc.
Autodesk, Inc.
Cadence Design Systems, Inc
Cimatron Ltd.
Dassault Systmes
GSE Systems Inc.
Mentor Graphics Corp
Parametric Technology Corporation
PDF Solutions Inc
Stratasys, Inc.
Synopsys Inc

Ticker
ANSS
ADSK
CDNS
CIMT
DSY
GVP
MENT
PMTC
PDFS
SSYS
SNPS
Median:

Market Cap
$5,641.0
$7,840.8
$3,364.7
$35.0
$12,129.7
$42.3
$1,704.2
$2,566.7
$275.8
$1,328.3
$4,517.1
$2,566.7

EV
$5,199.4
$6,328.8
$3,088.0
$20.7
$10,487.1
$25.1
$1,802.9
$2,468.6
$230.3
$1,286.2
$3,970.5
$2,468.6

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

13.5%
27.7%
20.7%
84.0%
21.1%
10.8%
35.3%
17.6%

1.8x
1.8x
17.6%
89.0
48.7
0.5x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
87.4%
89.7%
84.3%
87.9%
86.6%
32.2%
84.0%
69.9%
57.4%
52.6%
81.9%
84.0%

TTM
EBITDA
Margin
47.3%
21.5%
21.1%
16.0%
31.3%
7.0%
17.9%
17.4%
18.4%
22.3%
22.6%
21.1%

TTM
Revenue
Growth EV/ Revenue
19.9%
6.9x
13.5%
2.8x
19.9%
2.5x
9.6%
0.5x
12.1%
4.3x
8.0%
0.5x
7.1%
1.7x
15.9%
1.9x
22.9%
3.0x
29.9%
7.2x
11.2%
2.4x
13.5%
2.5x

EV/
Forward
EBITDA EV/ Revenue
14.6x
n/a
12.9x
2.5x
11.8x
2.3x
3.1x
n/a
13.8x
n/a
6.9x
0.5x
9.7x
1.6x
11.2x
1.9x
16.1x
2.6x
32.4x
6.7x
10.8x
2.2x
11.8x
2.2x

Forward
EV/
EBITDA
12.1x
8.8x
7.8x
n/a
n/a
n/a
7.3x
7.8x
8.3x
22.8x
7.7x
8.1x

YoY Stock
Market
Return
19.7%
-0.8%
18.5%
10.3%
10.9%
4.5%
35.9%
4.0%
61.0%
144.2%
28.1%
18.5%

Engineering & PLM Software Stock Market Return: Jan - Jul 2012
30%

25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$751.5
$2,275.9
$1,242.8
$42.3
$2,421.6
$52.2
$1,032.5
$1,269.8
$77.7
$177.9
$1,635.4
$1,032.5

10%

5%

0%
16.8%
30.2%
-12.0%
-450.0%
20.6%

-5%
Engineering, PLM & CAD/CAM

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Enterprise Resource Planning


Company Name
American Software, Inc.
Oracle Corporation
QAD Inc.
Sage Group plc
SAP

Ticker
AMSW.A
ORCL
QADA
LSE:SGE
SAP
Median:

Market Cap
$220.5
$149,307.0
$217.8
$5,856.8
$76,412.4
$5,856.8

EV
$161.1
$135,504.0
$155.5
$5,665.2
$76,887.6
$5,665.2

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

10.1%
10.4%
54.0%
71.6%
29.0%
18.4%
31.0%
12.8%

TTM
Revenue
$102.6
$37,121.0
$251.6
$2,137.7
$19,214.0
$2,137.7

TTM
Gross
Margin
55.3%
78.8%
57.9%
93.7%
71.6%
71.6%

TTM
EBITDA
Margin
17.5%
43.2%
9.4%
29.0%
36.1%
29.0%

TTM
Revenue
Growth EV/ Revenue
19.9%
1.6x
4.2%
3.7x
10.1%
0.6x
8.8%
2.7x
13.2%
4.0x
10.1%
2.7x

EV/
Forward
EBITDA EV/ Revenue
9.0x
1.4x
8.4x
3.5x
6.6x
0.6x
9.1x
n/a
11.1x
3.7x
9.0x
2.4x

Forward
EV/
EBITDA
n/a
6.9x
5.2x
n/a
9.9x
6.9x

YoY Stock
Market
Return
-5.0%
0.0%
28.2%
3.8%
2.7%
2.7%

Enterprise Resource Planning Software Stock Market Return: Jan - Jul 2012
25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.2x
1.0x
20.5%
68.4
23.3
0.1x

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%

15.3%
15.2%
-37.8%
-226.0%
-8.5%

-5%
Enterprise Resource Planning

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Financial & Accounting


Company Name
ACI Worldwide, Inc.
Bottomline Technologies
DST Systems, Inc.
Fair Isaac Corporation
Fiserv
Intuit Inc
NetSol Technologies Inc.
Sage Group plc

Ticker
ACIW
EPAY
DST
FICO
FISV
INTU
NTWK
LSE:SGE
Median:

Market Cap
$1,716.5
$703.0
$2,376.3
$1,458.6
$9,860.9
$17,182.6
$36.4
$5,856.8
$2,046.4

EV
$1,930.6
$584.6
$3,375.0
$1,811.9
$12,973.9
$16,159.6
$50.9
$5,665.2
$2,652.8

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

8.6%
7.8%
6.4%
63.1%
24.4%
13.7%
32.4%
13.6%

TTM
Revenue
$534.6
$217.1
$2,500.8
$650.6
$4,432.0
$4,151.0
$32.3
$2,137.7
$1,394.1

TTM
Gross
Margin
67.7%
54.4%
17.3%
70.6%
41.6%
82.4%
58.4%
93.7%
63.1%

TTM
EBITDA
Margin
19.8%
16.0%
14.3%
29.0%
30.2%
34.3%
15.3%
29.0%
24.4%

TTM
Revenue
Growth EV/ Revenue
17.2%
3.6x
22.9%
2.7x
8.4%
1.3x
5.9%
2.8x
5.1%
2.9x
9.4%
3.9x
-19.9%
1.6x
8.8%
2.7x
8.6%
2.7x

EV/
Forward
EBITDA EV/ Revenue
18.3x
2.6x
16.9x
2.4x
9.5x
1.6x
9.6x
2.7x
9.7x
2.8x
11.4x
3.5x
10.3x
1.2x
9.1x
n/a
10.0x
2.6x

Forward
EV/
EBITDA
9.7x
14.6x
7.9x
9.2x
8.7x
9.2x
4.4x
n/a
9.2x

YoY Stock
Market
Return
21.1%
-17.9%
5.7%
44.9%
19.7%
25.3%
-44.9%
3.8%
12.7%

Financial & Accounting Software Stock Market Return: Jan - Jul 2012
25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.5x
1.1x
9.6%
65.7
40.7
0.2x

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%

15.0%
-2.1%
-24.3%
-4.4%
-8.4%

-5%
Financial & Accounting

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Gaming


Company Name
Activision Blizzard
Electronic Arts Inc.
GameLoft SA
Konami Corporation
Majesco Entertainment Company
TakeTwo Interactive
THQ Inc.

Ticker
ATVI
EA
ENXTPA:GF
TSE: 9766
COOL
TTWO
THQI
Median:

Market Cap
$13,373.9
$3,569.7
$447.1
$2,878.6
$74.4
$823.2
$34.7
$823.2

EV
$9,897.9
$2,259.7
$401.8
$2,410.0
$42.7
$719.2
$58.8
$719.2

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

8.2%
-8.1%
24.4%
57.8%
9.2%
6.0%
25.3%
11.9%

TTM
Gross
Margin
61.8%
62.2%
88.9%
34.6%
35.5%
29.7%
57.8%
57.8%

TTM
EBITDA
Margin
24.6%
6.7%
14.8%
18.9%
9.2%
-23.2%
-5.0%
9.2%

TTM
Revenue
Growth EV/ Revenue
-7.6%
2.2x
8.6%
0.6x
14.1%
1.8x
0.1%
0.7x
21.6%
0.3x
-34.5%
1.0x
8.2%
0.1x
8.2%
0.7x

EV/
Forward
EBITDA EV/ Revenue
9.1x
2.1x
8.2x
0.5x
12.1x
n/a
3.9x
0.7x
3.3x
0.3x
n/a
0.4x
n/a
0.1x
8.2x
0.5x

Forward
EV/
EBITDA
5.9x
3.4x
n/a
3.4x
2.5x
2.5x
n/a
3.4x

YoY Stock
Market
Return
1.6%
-49.5%
-17.0%
-20.8%
-26.5%
-32.3%
-81.0%
-26.5%

Gaming Software Stock Market Return: Jan - Jul 2012


30%

20%

10%

0%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$4,407.0
$4,099.0
$223.9
$3,252.5
$141.3
$717.6
$769.4
$769.4

2.8x
1.7x
40.3%
39.1
34.0
0.4x

-10%

-20%

-30%
Cash Flow Statement Analysis (Median)
Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

15.8%
58.2%
-21.4%
21.5%
80.5%

-40%
Gaming

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Healthcare


Company Name
Accelrys Inc.
Allscripts Healthcare Solutions Inc.
Cerner Corporation
Computer Programs and Sys, Inc.
Epocrates
Greenway Medical Technologies, Inc
MedAssets
Merge Healthcare
Nuance Communications, Inc.
Omnicell, Inc.
Quality Systems, Inc.
Simulations Plus, Inc.

Ticker
ACCL
MDRX
CERN
CPSI
EPOC
GWAY
MDAS
MRGE
NUAN
OMCL
QSII
SLP
Median:

Market Cap
$449.7
$1,769.2
$12,638.1
$559.9
$189.0
$410.3
$769.8
$281.3
$6,332.2
$439.3
$950.7
$66.7
$504.8

EV
$304.3
$1,939.2
$11,834.3
$537.1
$107.3
$373.9
$1,741.9
$492.5
$6,763.9
$229.7
$815.8
$53.8
$514.8

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

21.8%
17.0%
19.7%
63.1%
21.1%
4.8%
37.9%
11.6%

2.1x
1.7x
10.6%
70.3
42.6
0.3x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
75.5%
43.8%
79.0%
44.4%
60.4%
54.3%
79.3%
63.0%
67.0%
54.5%
63.2%
76.9%
63.1%

TTM
EBITDA
Margin
9.9%
15.8%
27.2%
24.1%
0.3%
7.7%
29.7%
19.6%
22.7%
9.5%
27.3%
29.2%
21.1%

TTM
Revenue
Growth EV/ Revenue
19.5%
2.0x
19.9%
1.3x
24.5%
4.9x
0.7%
3.1x
-0.7%
1.0x
45.3%
3.2x
27.6%
2.8x
24.2%
2.0x
22.9%
4.4x
15.2%
0.9x
20.7%
1.8x
28.4%
4.4x
21.8%
2.4x

EV/
Forward
EBITDA EV/ Revenue
19.9x
1.8x
8.3x
1.3x
18.0x
4.3x
12.8x
2.6x
282.4x
1.0x
41.2x
2.6x
9.6x
2.8x
10.2x
2.0x
19.3x
3.5x
9.1x
0.7x
6.7x
1.6x
15.1x
5.1x
13.9x
2.3x

Forward
EV/
EBITDA
8.7x
5.4x
13.5x
9.6x
9.1x
19.6x
8.9x
9.8x
8.7x
4.6x
6.1x
9.7x
9.0x

YoY Stock
Market
Return
11.4%
-48.9%
11.0%
-31.1%
-53.3%
n/a
4.2%
-40.0%
3.2%
-23.6%
-64.9%
25.8%
-23.6%

Healthcare Software Stock Market Return: Jan - Jul 2012


25%

20%

15%

10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$153.8
$1,486.7
$2,415.7
$174.5
$110.7
$117.0
$613.2
$248.0
$1,549.8
$266.9
$447.7
$12.2
$257.5

5%

0%

-5%
9.4%
10.1%
-84.5%
-15.5%
8.7%

-10%
Healthcare

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: IT Conglomerates


Company Name
Hewlett Packard
IBM
Microsoft Corporation
Oracle Corporation
SAP AG

Ticker
HPQ
IBM
MSFT
ORCL
SAP
Median:

Market Cap
$36,005.7
$224,215.2
$248,483.9
$149,307.0
$76,412.4
$149,307.0

EV
$58,190.7
$245,555.2
$199,214.9
$135,504.0
$76,887.6
$135,504.0

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

4.2%
3.4%
0.0%
71.6%
36.1%
23.0%
22.2%
12.2%

TTM
Revenue
$124,040.0
$106,099.0
$73,723.0
$37,121.0
$19,214.0
$73,723.0

TTM
Gross
Margin
22.9%
47.4%
76.2%
78.8%
71.6%
71.6%

TTM
EBITDA
Margin
11.9%
25.3%
41.7%
43.2%
36.1%
36.1%

TTM
Revenue
Growth EV/ Revenue
-3.0%
0.5x
1.5%
2.3x
5.4%
2.7x
4.2%
3.7x
13.2%
4.0x
4.2%
2.7x

EV/
Forward
EBITDA EV/ Revenue
3.9x
0.5x
9.2x
2.3x
6.5x
2.5x
8.4x
3.5x
11.1x
3.7x
8.4x
2.5x

Forward
EV/
EBITDA
3.6x
8.5x
5.8x
6.9x
9.9x
6.9x

YoY Stock
Market
Return
-48.1%
8.2%
8.2%
0.0%
2.7%
2.7%

IT Conglomerates Software Stock Market Return: Jan - Jul 2012


25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.2x
1.0x
20.5%
64.1
51.8
0.1x

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%

24.3%
5.6%
-38.2%
-12.3%
-6.7%

-5%
IT Conglomerates

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Mobile Solutions/Content


Company Name
Access
Epocrates
Glu Mobile, Inc.
Google Inc
Gree
Millennial Media Inc
Motricity
Myriad Group AG
Nuance Communications, Inc.
Opera
Qihoo 360 Technology Co. Ltd
RealNetworks Inc
Sky-mobi Limited
Smith Micro Software, Inc.
SoundBite Communications, Inc.
Synchronoss Technologies, Inc.
TeleNav
Trunkbow International Holdings
Unwired Planet, Inc
Velti Plc
Zynga, Inc

Ticker
TSE:4813
EPOC
GLUU
GOOG
TSE:3632
MM
MOTR
MYRN
NUAN
OB:OPERA
QIHU
RNWK
MOBI
SMSI
SDBT
SNCR
TNAV
TBOW
UPIP
VELT
ZNGA
Median:

Market Cap
$270.9
$189.0
$297.4
$206,783.2
$3,599.0
$782.9
$24.4
$158.1
$6,332.2
$807.7
$1,770.0
$278.0
$60.8
$60.7
$38.6
$676.3
$239.4
$42.3
$179.4
$335.8
$2,286.5
$278.0

EV
-$24.1
$107.3
$268.4
$173,182.2
$2,939.5
$851.8
$28.2
$138.4
$6,763.9
$747.6
$1,408.2
$111.0
-$31.6
$23.1
$14.0
$555.1
$40.0
$46.2
$117.8
$304.5
$1,169.5
$138.4

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

19.7%
20.9%
23.2%
60.9%
6.6%
-3.5%
37.8%
22.1%

2.2x
2.1x
20.5%
68.2
49.2
0.6x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
68.4%
60.4%
86.3%
63.2%
92.4%
39.2%
60.9%
43.5%
67.0%
49.0%
88.9%
53.8%
31.3%
76.4%
59.4%
56.0%
78.3%
77.5%
57.7%
60.7%
71.0%
60.9%

TTM
EBITDA
Margin
15.2%
0.3%
-23.1%
35.8%
53.0%
-2.4%
-11.7%
6.6%
22.7%
29.5%
27.3%
-14.5%
6.6%
-75.0%
1.9%
19.2%
24.3%
40.9%
-9.2%
10.8%
-36.0%
6.6%

TTM
Revenue
Growth EV/ Revenue
-32.2%
n/a
-0.7%
1.0x
18.5%
3.5x
29.5%
4.0x
157.7%
1.7x
n/a
7.4x
-12.2%
0.2x
-39.6%
2.3x
22.9%
4.4x
24.6%
4.5x
202.1%
6.6x
-16.4%
0.4x
1.5%
n/a
-57.2%
0.5x
16.6%
0.3x
25.6%
2.2x
3.8%
0.2x
20.9%
1.5x
249.8%
0.7x
63.2%
1.4x
43.1%
0.9x
19.7%
1.5x

EV/
Forward
EBITDA EV/ Revenue
n/a
n/a
282.4x
1.0x
n/a
2.5x
11.2x
3.0x
3.3x
n/a
n/a
4.4x
n/a
n/a
34.3x
n/a
19.3x
3.5x
15.1x
n/a
24.1x
4.2x
n/a
0.4x
n/a
n/a
n/a
0.4x
16.1x
n/a
11.4x
1.9x
0.8x
0.2x
3.7x
n/a
n/a
n/a
13.3x
1.0x
n/a
1.0x
14.2x
1.4x

Forward
EV/
EBITDA
n/a
9.1x
56.8x
8.2x
n/a
n/a
n/a
n/a
8.7x
n/a
11.3x
n/a
n/a
n/a
n/a
6.3x
2.4x
n/a
n/a
3.5x
6.7x
8.2x

YoY Stock
Market
Return
-9.6%
-53.3%
-8.2%
4.7%
-32.8%
n/a
-91.1%
-35.2%
3.2%
5.3%
-35.7%
-40.8%
-75.3%
-52.8%
n/a
-39.6%
-42.3%
-65.6%
-6.7%
-67.6%
n/a
-37.6%

Mobile Solutions/Content Software Stock Market Return: Jan - Jul 2012


40%

30%

20%

10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$175.8
$110.7
$77.2
$43,162.0
$1,689.6
$115.1
$116.6
$61.0
$1,549.8
$167.5
$214.2
$297.1
$108.8
$44.2
$45.0
$252.9
$218.5
$30.8
$166.6
$211.4
$1,271.5
$167.5

0%

-10%

-20%
5.3%
15.2%
-109.0%
-43.8%
-26.3%

-30%
Mobile Solutions/Content

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Networking/Network Performance Mgmt


Company Name
Allot Communications Ltd.
Aruba Networks, Inc.
Brocade Communications Systems,
Cisco Systems, Inc.
Compuware Corporation
F5 Networks, Inc.
Juniper Networks, Inc.
Keynote Systems, Inc.
Radware Ltd.
Riverbed Technology, Inc.

Ticker
ALLT
ARUN
BRCD
CSCO
CPWR
FFIV
JNPR
KEYN
RDWR
RVBD
Median:

Market Cap
$781.3
$1,592.1
$2,227.8
$85,013.7
$2,024.7
$7,528.4
$9,293.6
$241.5
$670.4
$2,761.5
$2,126.3

EV
$615.8
$1,275.6
$2,352.4
$52,991.7
$1,977.7
$7,008.7
$6,853.9
$197.9
$534.6
$2,334.0
$2,155.8

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

17.3%
15.8%
25.4%
68.1%
16.8%
12.6%
40.6%
17.0%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$92.7
$491.3
$2,157.4
$45,566.0
$1,006.0
$1,329.3
$4,332.8
$121.5
$179.1
$773.5
$889.7

TTM
Gross
Margin
71.2%
70.0%
61.0%
61.4%
66.2%
82.7%
62.5%
50.1%
80.7%
75.2%
68.1%

TTM
EBITDA
Margin
16.2%
4.9%
19.6%
28.2%
17.5%
33.5%
14.3%
15.3%
20.1%
15.6%
16.8%

TTM
Revenue
Growth EV/ Revenue
39.4%
6.6x
36.4%
2.6x
0.5%
1.1x
6.3%
1.2x
5.6%
2.0x
21.8%
5.3x
-2.1%
1.6x
26.5%
1.6x
15.1%
3.0x
19.5%
3.0x
17.3%
2.3x

EV/
Forward
EBITDA EV/ Revenue
41.1x
5.6x
52.7x
2.2x
5.6x
1.0x
4.1x
1.1x
11.2x
1.9x
15.8x
4.6x
11.1x
1.5x
10.6x
1.5x
14.9x
2.7x
19.3x
2.6x
13.0x
2.0x

Forward
EV/
EBITDA
24.0x
9.4x
4.6x
3.6x
8.2x
11.3x
7.2x
8.1x
11.4x
9.0x
8.6x

YoY Stock
Market
Return
66.5%
-38.2%
-9.7%
-0.6%
-3.4%
1.9%
-25.0%
-42.4%
-7.1%
-37.5%
-8.4%

Networking/Network Performance Mgmt Software Stock Market Return: Jan - Jul 2012
25%
20%
15%
10%
5%

2.7x
2.4x
20.1%
48.1
51.8
0.6x

0%
-5%
-10%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

18.9%
22.7%
-112.6%
-56.7%
26.1%

-15%
-20%
Networking & Network Performance Management

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Security


Company Name
AVG Technologies N.V.
Check Point Software Tech Ltd.
Commtouch Software Ltd.
Fortinet Inc.
Guidance Software, Inc.
Imperva
Palo Alto Networks, Inc.
Proofpoint, Inc.
Sourcefire, Inc.
Symantec Corporation
Trend Micro
VASCO Data Security International
Websense, Inc.

Ticker
AVG
CHKP
CTCH
FTNT
GUID
IMPV
PANW
PFPT
FIRE
SYMC
TSE:4704
VDSI
WBSN
Median:

Market Cap
$541.1
$9,895.9
$65.3
$3,871.7
$237.9
$597.1
$3,663.1
$449.6
$1,457.1
$11,149.9
$3,906.9
$349.0
$565.3
$597.1

EV
$636.1
$8,524.2
$43.3
$3,470.1
$212.7
$495.8
$3,572.8
$551.3
$1,307.0
$10,166.9
$2,550.8
$263.8
$573.0
$636.1

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

14.4%
19.1%
10.5%
79.0%
19.9%
8.1%
49.2%
16.0%

1.6x
1.5x
12.8%
65.8
46.3
0.4x

TTM
EBITDA
Margin
26.8%
56.6%
21.3%
21.0%
5.7%
-10.1%
3.6%
-12.5%
9.3%
26.5%
34.6%
18.3%
19.9%
19.9%

TTM
Revenue
Growth EV/ Revenue
n/a
2.0x
11.4%
6.5x
10.3%
1.9x
29.0%
7.2x
17.4%
1.9x
37.9%
5.9x
n/a
16.3x
n/a
6.3x
38.2%
6.7x
5.2%
1.5x
-0.6%
2.2x
22.8%
1.6x
3.9%
1.6x
14.4%
2.2x

EV/
Forward
EBITDA EV/ Revenue
7.6x
1.9x
11.5x
6.0x
8.7x
1.6x
34.2x
6.0x
32.9x
1.6x
n/a
4.8x
446.3x
10.0x
n/a
5.3x
72.0x
6.0x
5.7x
1.5x
6.4x
n/a
8.5x
1.5x
7.9x
1.6x
8.7x
3.3x

Forward
EV/
EBITDA
6.4x
10.4x
7.7x
22.5x
13.1x
199.1x
144.2x
n/a
29.6x
4.8x
n/a
n/a
6.2x
11.7x

YoY Stock
Market
Return
n/a
-16.2%
-27.2%
21.1%
27.3%
n/a
n/a
n/a
101.4%
-18.8%
-5.3%
-4.3%
-33.0%
-5.3%

Security Software Stock Market Return: Jan - Jul 2012


25%

20%

15%

5%

0%

-5%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
86.8%
88.4%
82.0%
72.7%
73.2%
79.0%
72.5%
65.0%
77.0%
84.9%
81.5%
65.8%
83.9%
79.0%

10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$311.0
$1,306.8
$23.4
$483.5
$114.2
$83.4
$219.7
$87.7
$195.3
$6,745.0
$1,153.3
$168.8
$364.2
$219.7

18.0%
11.3%
-25.2%
100.6%
17.9%

-10%
Security

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Storage, Data Management & Integration


Company Name
Brocade Communications Systems,
CA, Inc.
Cisco Systems, Inc.
CommVault Systems, Inc.
EMC
FalconStor Software, Inc.
IBM
Informatica Corporation
Microsoft Corporation
NetApp, Inc.
Oracle Corporation
Pervasive Software Inc.
Splunk, Inc.
TIBCO Software Inc.

Ticker
BRCD
CA
CSCO
CVLT
EMC
FALC
IBM
INFA
MSFT
NTAP
ORCL
PVSW
SPLK
TIBX
Median:

Market Cap
$2,227.8
$11,374.2
$85,013.7
$2,037.2
$55,217.3
$102.5
$224,215.2
$3,232.5
$248,483.9
$11,923.8
$149,307.0
$110.2
$2,779.9
$4,634.0
$8,004.1

EV
$2,352.4
$10,120.2
$52,991.7
$1,736.9
$52,376.3
$65.5
$245,555.2
$2,667.2
$199,214.9
$7,790.2
$135,504.0
$67.5
$2,513.8
$4,541.7
$6,166.0

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Gross
Margin
61.0%
86.7%
61.4%
86.7%
62.3%
72.5%
47.4%
84.1%
76.2%
59.6%
78.8%
84.7%
89.9%
73.0%
74.6%

TTM
EBITDA
Margin
19.6%
35.8%
28.2%
14.1%
23.9%
-10.9%
25.3%
22.4%
41.7%
15.1%
43.2%
7.3%
-7.6%
22.7%
22.6%

TTM
Revenue
Growth EV/ Revenue
0.5%
1.1x
6.0%
2.1x
6.3%
1.2x
25.4%
4.1x
13.0%
2.5x
-4.7%
0.8x
1.5%
2.3x
12.4%
3.3x
5.4%
2.7x
21.7%
1.2x
4.2%
3.7x
1.6%
1.4x
n/a
18.3x
19.8%
4.6x
6.0%
2.4x

EV/
Forward
EBITDA EV/ Revenue
5.6x
1.0x
5.9x
2.1x
4.1x
1.1x
28.8x
3.7x
10.4x
2.3x
n/a
0.7x
9.2x
2.3x
14.7x
3.1x
6.5x
2.5x
8.3x
1.2x
8.4x
3.5x
18.7x
1.3x
n/a
13.3x
20.2x
4.0x
8.8x
2.3x

Forward
EV/
EBITDA
4.6x
5.6x
3.6x
18.2x
8.0x
n/a
8.5x
10.4x
5.8x
6.8x
6.9x
10.5x
n/a
13.3x
7.4x

YoY Stock
Market
Return
-9.7%
8.7%
-0.6%
17.2%
0.9%
-49.8%
8.2%
-41.6%
8.2%
-31.6%
0.0%
-8.4%
n/a
9.8%
0.0%

Storage, Data Management & Integration Software Stock Market Return: Jan - Jul 2012
6.0%
9.3%
8.1%
74.6%
22.6%
12.6%
35.8%
13.3%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$2,157.4
$4,796.0
$45,566.0
$426.4
$20,960.4
$80.1
$106,099.0
$809.5
$73,723.0
$6,233.2
$37,121.0
$49.2
$137.5
$991.5
$3,476.7

40%
35%
30%
25%
20%

2.3x
2.2x
21.5%
63.9
43.0
0.6x

15%
10%
5%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

19.8%
13.4%
-69.6%
-94.0%
17.9%

0%
-5%
Storage, Data Management & Integration

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Supply Chain Management & Logistics


Company Name
American Software, Inc.
Aspen Technology, Inc.
JDA Software Group
Manhattan Associates, Inc.
Retalix Ltd.
The Descartes Systems Group Inc.

Ticker
AMSW.A
AZPN
JDAS
MANH
RTLX
TSX:DSG
Median:

Market Cap
$220.5
$2,192.4
$1,263.3
$926.1
$512.4
$527.6
$726.8

EV
$161.1
$2,043.5
$1,251.0
$825.2
$391.0
$459.1
$642.1

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

16.9%
32.3%
40.6%
61.1%
19.8%
10.9%
25.7%
12.9%

2.5x
2.3x
20.1%
64.7
20.6
0.6x

TTM
EBITDA
Margin
17.5%
-11.2%
23.6%
22.1%
8.3%
28.1%
19.8%

TTM
Revenue
Growth EV/ Revenue
19.9%
1.6x
26.1%
8.8x
3.1%
1.9x
15.9%
2.3x
18.0%
1.5x
11.3%
3.9x
16.9%
2.1x

EV/
Forward
EBITDA EV/ Revenue
9.0x
1.4x
n/a
7.5x
7.9x
1.7x
10.6x
2.2x
18.3x
1.5x
14.0x
3.5x
10.6x
2.0x

Forward
EV/
EBITDA
n/a
239.1x
6.4x
8.9x
14.1x
11.9x
11.9x

YoY Stock
Market
Return
-5.0%
51.2%
6.2%
24.0%
n/a
22.4%
22.4%

Supply Chain Management & Logistics Software Stock Market Return: Jan - Jul 2012
30%

25%

20%

10%

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
55.3%
76.6%
64.0%
58.2%
41.3%
65.8%
61.1%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$102.6
$231.8
$669.5
$354.2
$258.0
$116.8
$244.9

13.8%
15.0%
25.2%
12.6%
56.2%

-5%
Supply Chain Management & Logistics

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Systems Management


Company Name
BMC Software Inc.
CA Technologies
Citrix Systems, Inc.
Netscout Systems, Inc.
Red Hat, Inc.
SolarWinds, Inc.
VMWare, Inc.

Ticker
BMC
CA
CTXS
NTCT
RHT
SWI
VMW
Median:

Market Cap
$6,290.0
$11,374.2
$13,638.5
$974.3
$10,377.1
$3,959.0
$39,466.4
$10,377.1

EV
$5,550.8
$10,120.2
$12,340.7
$826.8
$9,558.1
$3,775.8
$34,569.5
$9,558.1

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

18.1%
19.0%
11.6%
84.6%
25.8%
16.5%
43.0%
15.7%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Gross
Margin
73.0%
86.7%
88.8%
78.7%
84.6%
93.4%
84.0%
84.6%

TTM
EBITDA
Margin
29.4%
35.8%
24.8%
24.0%
22.1%
48.5%
25.8%
25.8%

TTM
Revenue
Growth EV/ Revenue
3.2%
2.6x
6.0%
2.1x
18.1%
5.2x
12.1%
2.6x
22.6%
8.1x
36.1%
16.2x
26.1%
8.3x
18.1%
5.2x

EV/
Forward
EBITDA EV/ Revenue
8.7x
2.4x
5.9x
2.1x
20.8x
4.5x
10.7x
2.3x
36.5x
6.9x
33.4x
13.0x
32.0x
6.9x
20.8x
4.5x

Forward
EV/
EBITDA
6.0x
5.6x
14.2x
8.6x
24.2x
25.4x
18.7x
14.2x

YoY Stock
Market
Return
-8.6%
8.7%
1.7%
53.2%
27.8%
148.3%
-7.9%
8.7%

Systems Management Software Stock Market Return: Jan - Jul 2012


40%
35%
30%
25%
20%

1.7x
1.5x
13.5%
71.0
48.6
0.4x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Revenue
$2,174.0
$4,796.0
$2,389.4
$321.7
$1,183.1
$233.3
$4,180.4
$2,174.0

23.8%
33.0%
14.1%
-94.0%
27.5%

15%
10%
5%
0%
-5%
Systems Management

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Vertical - Finance


Company Name
Advent Software, Inc.
FX Alliance Inc
Jack Henry & Associates, Inc.
MSCI, Inc.
SS&C Corporation

Ticker
ADVS
FX
JKHY
MSCI
SSNC
Median:

Market Cap
$1,372.9
$626.9
$3,042.7
$4,040.2
$1,915.7
$1,915.7

EV
$1,289.7
$570.9
$3,094.0
$4,656.8
$1,958.7
$1,958.7

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

12.6%
12.8%
20.1%
68.9%
36.9%
15.7%
24.4%
8.0%

TTM
Revenue
$347.5
$122.9
$1,009.8
$918.8
$375.5
$375.5

TTM
Gross
Margin
69.3%
100.0%
41.5%
68.9%
50.3%
68.9%

TTM
EBITDA
Margin
20.6%
38.9%
32.3%
44.5%
36.9%
36.9%

TTM
Revenue
Growth EV/ Revenue
14.7%
3.7x
15.6%
4.6x
6.8%
3.1x
n/a
5.1x
10.5%
5.2x
12.6%
4.6x

EV/
Forward
EBITDA EV/ Revenue
18.0x
3.4x
11.9x
4.3x
9.5x
2.9x
11.4x
4.8x
14.1x
3.1x
11.9x
3.4x

Forward
EV/
EBITDA
10.6x
8.9x
8.8x
10.4x
9.0x
9.0x

YoY Stock
Market
Return
16.7%
n/a
20.4%
-6.3%
32.6%
18.5%

Vertical - Finance Software Stock Market Return: Jan - Jul 2012


25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.3x
1.1x
9.5%
62.7
8.4
0.1x

10%

5%

0%
Cash Flow Statement Analysis (Median)
Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

17.6%
0.4%
33.5%
-183.8%
1.0%

-5%
Vertical - Finance

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index Category: Vertical - Other


Company Name
Blackbaud, Inc.
Constellation
EPIQ Systems, Inc.
Guidewire Software, Inc.
Micros Systems
PROS Holdings
Sapiens International
The Active Network, Inc.
Tyler Technologies, Inc.

Ticker
BLKB
TSX:CSU
EPIQ
GWRE
MCRS
PRO
SPNS
ACTV
TYL
Median:

Market Cap
$1,175.9
$1,952.5
$418.0
$1,351.1
$3,771.2
$381.4
$142.5
$857.6
$1,194.0
$1,175.9

EV
$1,129.9
$1,891.9
$671.4
$1,149.3
$2,958.9
$310.5
$127.0
$776.0
$1,259.4
$1,129.9

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

24.6%
14.6%
-0.8%
56.0%
13.9%
5.9%
29.2%
13.2%

1.3x
1.2x
12.6%
60.6
32.7
0.2x

TTM
EBITDA
Margin
13.9%
23.1%
22.9%
12.4%
22.7%
10.5%
13.5%
2.5%
18.3%
13.9%

TTM
Revenue
Growth EV/ Revenue
13.1%
2.9x
13.6%
2.4x
32.2%
2.2x
28.8%
5.3x
9.9%
2.7x
31.5%
2.9x
54.0%
1.5x
24.6%
2.0x
12.5%
3.8x
24.6%
2.7x

EV/
Forward
EBITDA EV/ Revenue
20.6x
2.5x
10.2x
2.2x
9.4x
1.7x
43.1x
4.4x
12.1x
2.4x
27.8x
2.6x
11.4x
n/a
82.5x
1.7x
20.7x
3.3x
20.6x
2.5x

Forward
EV/
EBITDA
11.2x
10.0x
6.3x
39.4x
10.1x
15.3x
n/a
13.9x
16.0x
12.5x

YoY Stock
Market
Return
5.6%
19.7%
-10.2%
n/a
-4.1%
-14.5%
-3.0%
-19.2%
54.6%
-3.6%

Vertical - Other Software Stock Market Return: Jan - Jul 2012


30%

25%

20%

10%

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
56.2%
33.6%
60.8%
61.5%
56.0%
72.7%
41.8%
53.8%
46.0%
56.0%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$395.4
$804.9
$311.0
$215.5
$1,079.1
$106.6
$82.6
$381.7
$333.4
$333.4

12.7%
-9.8%
-114.5%
-83.5%
-12.8%

-5%
Vertical - Other

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index


Category Performance

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Software Index: All Categories


Category Name
SEG SaaS Index
CRM & Marketing
ERP & Supply Chain
Vertically Focused
Workforce Management

Market Cap
$830.1
$775.0
$401.1
$1,426.2
$915.4

EV
$806.0
$683.1
$365.6
$1,373.5
$849.5

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

27.3%
6.2%
-21.3%
69.8%
9.1%
-0.5%
47.0%
13.4%

TTM
Revenue
$169.0
$188.1
$65.7
$333.5
$193.7

TTM
Gross
Margin
69.8%
74.3%
69.8%
60.4%
58.2%

TTM
EBITDA
Margin
9.1%
7.4%
8.1%
14.2%
-1.2%

TTM
Revenue
Growth EV/ Revenue
27.3%
5.6x
27.2%
4.6x
26.8%
5.6x
30.3%
5.0x
26.6%
5.0x

EV/
Forward
EBITDA EV/ Revenue
40.0x
4.7x
37.9x
3.7x
81.4x
5.8x
31.1x
4.4x
49.5x
4.3x

Forward
EV/
EBITDA
23.2x
21.2x
30.5x
15.9x
35.0x

YoY Stock
Market
Return
18.2%
-13.0%
39.1%
18.2%
19.0%

SEG SaaS Index Software Stock Market Return: Jan - Jul 2012
35%
30%
25%
20%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.8x
1.7x
8.9%
57.6
27.0
0.5x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

15%
10%
5%
0%

13.0%
46.1%
-32.4%
-43.5%
55.4%

-5%
DOW

S&P

NASDAQ

SEG SaaS

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index Category: CRM & Marketing


Company Name
Constant Contact
ExactTarget, Inc.
LivePerson
Responsys
Salesforce.com
Vocus

Ticker
CTCT
ET
LPSN
MKTG
CRM
VOCS
Median:

Market Cap
$511.1
$1,546.8
$1,003.7
$546.3
$17,370.1
$418.8
$775.0

EV
$430.0
$1,335.3
$895.8
$450.6
$17,209.8
$470.4
$683.1

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

27.2%
-4.4%
-166.8%
74.3%
7.4%
-1.3%
55.8%
13.2%

TTM
Revenue
$233.9
$227.5
$146.1
$148.7
$2,457.6
$137.9
$188.1

TTM
Gross
Margin
71.1%
65.1%
77.5%
52.9%
78.1%
80.4%
74.3%

TTM
EBITDA
Margin
10.4%
-2.1%
16.2%
13.1%
4.3%
0.8%
7.4%

TTM
Revenue
Growth EV/ Revenue
20.0%
1.8x
n/a
5.9x
21.4%
6.1x
27.2%
3.0x
37.7%
7.0x
29.9%
3.4x
27.2%
4.6x

EV/
Forward
EBITDA EV/ Revenue
17.7x
1.6x
n/a
4.7x
37.9x
5.3x
23.2x
2.6x
162.5x
5.4x
421.1x
2.4x
37.9x
3.7x

Forward
EV/
EBITDA
10.6x
264.2x
21.5x
15.6x
30.0x
21.0x
21.2x

YoY Stock
Market
Return
-6.5%
n/a
48.2%
-22.0%
-13.0%
-37.8%
-13.0%

CRM & Marketing SaaS Stock Market Return: Jan - Jul 2012
40%
35%
30%
25%
20%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

3.7x
3.6x
10.0%
62.4
16.6
0.8x

15%
10%
5%
0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

21.4%
13.8%
-79.0%
952.1%
143.4%

-5%
-10%
CRM & Marketing

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index Category: ERP & Supply Chain


Company Name
Ariba, Inc.
E2open, Inc.
Netsuite
SciQuest
SPS Commerce

Ticker
ARBA
EOPN
N
SQI
SPSC
Median:

Market Cap
$4,270.0
$316.8
$3,946.8
$372.4
$401.1
$401.1

EV
$4,052.4
$319.0
$3,782.3
$312.6
$365.6
$365.6

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

26.8%
9.6%
-4.2%
69.8%
8.1%
0.9%
47.0%
17.7%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Gross
Margin
66.1%
65.3%
69.8%
72.3%
73.2%
69.8%

TTM
EBITDA
Margin
8.1%
1.6%
-5.6%
11.6%
8.4%
8.1%

TTM
Revenue
Growth EV/ Revenue
27.3%
7.8x
n/a
5.0x
26.3%
14.1x
22.0%
5.4x
31.5%
5.6x
26.8%
5.6x

EV/
Forward
EBITDA EV/ Revenue
96.4x
6.9x
303.6x
n/a
n/a
11.2x
46.9x
4.3x
66.4x
4.7x
81.4x
5.8x

Forward
EV/
EBITDA
26.1x
n/a
108.4x
25.0x
34.9x
30.5x

YoY Stock
Market
Return
34.7%
n/a
43.4%
-1.1%
76.3%
39.1%

ERP & Supply Chain SaaS Stock Market Return: Jan - Jul 2012
35%
30%
25%
20%
15%

1.5x
1.3x
5.1%
51.2
27.0
0.3x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Revenue
$516.8
$63.9
$269.1
$57.6
$65.7
$65.7

15.7%
97.9%
-69.8%
40.7%
29.5%

10%
5%
0%
-5%
-10%
ERP & Supply Chain

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index Category: Vertically Focused


Company Name
Athenahealth, Inc
DealerTrack
Ebix Inc.
RealPage

Ticker
ATHN
TRAK
EBIX
RP
Median:

Market Cap
$3,331.7
$1,238.4
$793.6
$1,614.0
$1,426.2

EV
$3,176.3
$1,137.7
$806.0
$1,609.4
$1,373.5

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

30.3%
22.2%
-7.9%
60.4%
14.2%
10.4%
37.3%
9.4%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Gross
Margin
61.1%
43.4%
80.0%
59.7%
60.4%

TTM
EBITDA
Margin
13.4%
15.1%
42.4%
13.1%
14.2%

TTM
Revenue
Growth EV/ Revenue
34.2%
8.4x
28.7%
3.0x
18.2%
4.5x
32.0%
5.5x
30.3%
5.0x

EV/
Forward
EBITDA EV/ Revenue
63.1x
6.5x
20.1x
2.9x
10.7x
4.1x
42.0x
4.7x
31.1x
4.4x

Forward
EV/
EBITDA
32.1x
11.2x
9.6x
20.7x
15.9x

YoY Stock
Market
Return
57.4%
25.8%
10.5%
-8.6%
18.2%

Vertically Focused SaaS Stock Market Return: Jan - Jul 2012


25%
20%
15%
10%
5%

2.7x
2.4x
4.0%
50.2
31.7
0.3x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Revenue
$376.3
$375.1
$178.2
$292.0
$333.5

12.4%
49.0%
-21.7%
140.5%
39.2%

0%
-5%
-10%
-15%
-20%
Vertically Focused

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index Category: Workforce Management


Company Name
Callidus Software Inc.
Cornerstone OnDemand
Kenexa
The Ultimate Software Group, Inc.

Ticker
CALD
CSOD
KNXA
ULTI
Median:

Market Cap
$153.9
$1,164.7
$666.2
$2,459.8
$915.4

EV
$174.8
$1,082.1
$617.0
$2,399.6
$849.5

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

26.6%
16.2%
57.8%
58.2%
-1.2%
-13.0%
44.4%
15.0%

1.2x
1.1x
10.5%
91.9
27.6
0.1x

TTM
EBITDA
Margin
-11.5%
-25.5%
9.1%
10.4%
-1.2%

TTM
Revenue
Growth EV/ Revenue
15.0%
2.0x
63.2%
13.3x
32.1%
1.9x
21.0%
8.1x
26.6%
5.0x

EV/
Forward
EBITDA EV/ Revenue
n/a
1.8x
n/a
8.5x
21.4x
1.6x
77.5x
6.9x
49.5x
4.3x

Forward
EV/
EBITDA
37.7x
n/a
9.7x
35.0x
35.0x

YoY Stock
Market
Return
-13.6%
42.7%
-4.7%
69.9%
19.0%

Workforce Management SaaS Stock Market Return: Jan - Jul 2012


30%

25%

20%

10%

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
44.7%
71.0%
60.0%
56.5%
58.2%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$89.4
$81.3
$318.0
$297.9
$193.7

7.0%
76.0%
82.7%
-107.1%
16.6%

-5%
Workforce Management

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG SaaS Index Category: Other Public SaaS Companies


Company Name
Bazaarvoice, Inc
Concur
Demandware, Inc.
Ellie Mae
IntraLinks Holdings
Medidata Solutions
OpenTable, Inc.
Service-now.com
Zix Corporation

Ticker
BV
CNQR
DWRE
ELLI
IL
MDSO
OPEN
NOW
ZIXI
Median:

Market Cap
$958.3
$3,718.9
$728.8
$514.8
$233.4
$786.3
$830.1
$3,054.2
$148.8
$786.3

EV
$833.1
$3,489.0
$624.3
$485.2
$248.1
$675.3
$772.3
$3,027.0
$130.0
$675.3

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

23.9%
-8.1%
-48.6%
71.5%
11.9%
-3.1%
54.8%
13.9%

TTM
Revenue
$106.1
$417.1
$66.5
$77.9
$211.7
$197.4
$150.4
$169.0
$40.1
$150.4

TTM
Gross
Margin
65.7%
71.7%
66.7%
75.0%
71.5%
71.5%
72.7%
59.8%
81.8%
71.5%

TTM
EBITDA
Margin
-19.4%
11.9%
-3.5%
20.6%
6.5%
17.9%
28.5%
-6.7%
31.5%
11.9%

TTM
Revenue
Growth EV/ Revenue
64.6%
7.8x
25.7%
8.4x
45.0%
9.4x
67.0%
6.2x
2.9%
1.2x
10.0%
3.4x
22.0%
5.1x
n/a
17.9x
11.1%
3.2x
23.9%
6.2x

EV/
Forward
EBITDA EV/ Revenue
n/a
5.9x
70.2x
7.1x
n/a
8.0x
30.2x
6.0x
18.0x
1.2x
19.1x
3.1x
18.0x
4.6x
n/a
11.7x
10.3x
2.8x
18.6x
5.9x

Forward
EV/
EBITDA
n/a
30.3x
n/a
38.8x
7.9x
11.6x
10.9x
n/a
11.3x
11.5x

YoY Stock
Market
Return
n/a
49.4%
n/a
262.6%
-71.9%
52.6%
-48.1%
n/a
-36.5%
6.5%

Other Public SaaS Companies SaaS Stock Market Return: Jan - Jul 2012
50%

40%

30%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

2.6x
2.4x
12.9%
55.0
30.6
0.5x

10%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

20%

14.1%
36.0%
-331.1%
-58.4%
75.3%

-10%
Other SaaS

S&P

NASDAQ

SEG SaaS

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index


Category Performance

Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index: All Categories


Category Name
SEG Internet Index
Ad Tech & Lead Generation
Commerce
Content & Media
Gaming
Infrastructure
Services
Social
Travel

Market Cap
$1,033.6
$1,324.1
$347.8
$1,595.5
$1,805.27
$428.47
$1,145.63
$1,464.76
$1,812.04

EV
$748.0
$1,287.6
$254.7
$1,366.9
$970.3
$335.0
$1,063.4
$1,130.0
$1,221.5

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

27.9%
20.3%
3.8%
68.2%
13.2%
4.3%
38.2%
13.5%

TTM
Revenue
$400.7
$488.8
$381.0
$345.2
$998.6
$232.1
$324.6
$328.9
$595.4

TTM
Gross
Margin
68.2%
68.7%
37.0%
51.9%
73.0%
66.6%
70.1%
74.0%
82.0%

TTM
EBITDA
Margin
13.2%
14.4%
8.1%
12.9%
45.5%
9.6%
10.6%
12.6%
18.8%

TTM
Revenue
Growth EV/ Revenue
27.9%
2.0x
34.5%
2.0x
14.8%
0.7x
12.3%
1.6x
39.2%
1.8x
13.6%
1.4x
41.9%
2.6x
70.3%
10.5x
24.0%
2.5x

EV/
Forward
EBITDA EV/ Revenue
13.3x
1.7x
13.8x
1.5x
14.3x
0.7x
11.2x
1.3x
2.9x
1.0x
14.2x
1.1x
13.3x
2.2x
33.9x
7.2x
16.8x
4.0x

Forward
EV/
EBITDA
9.0x
8.7x
9.4x
7.4x
3.7x
9.3x
9.9x
31.0x
13.3x

YoY Stock
Market
Return
-24.3%
-22.8%
-11.9%
-21.0%
-41.9%
-31.4%
-6.6%
-40.7%
-27.4%

SEG Internet Index Software Stock Market Return: Jan - Jul 2012
25%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

2.5x
2.2x
20.3%
35.4
48.0
0.4x

5%

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%

10.2%
20.0%
-22.8%
-22.0%
3.0%

-5%
SEG Internet Index

S&P

NASDAQ

SEG SW Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Ad Tech and Lead Generation


Company Name
Angie's List, Inc.
Baidu.com, Inc.
Bankrate, Inc.
Digital Generation, Inc.
eHealth, Inc.
Google Inc.
Groupon
InterActiveCorp
LinkedIn
Marchex Inc.
QuinStreet
ReachLocal, Inc.
SINA Corporation
Sohu.com Inc.
Tree.Com, Inc.
ValueClick, Inc.
Yandex

Ticker
ANGI
BIDU
RATE
DGIT
EHTH
GOOG
GRPN
IACI
LNKD
MCHX
QNST
RLOC
SINA
SOHU
TREE
VCLK
YNDX
Median:

Market Cap
$761.3
$42,378.6
$1,727.7
$298.3
$360.4
$206,783.2
$4,456.0
$4,664.7
$10,761.9
$130.6
$417.4
$344.8
$3,201.9
$1,324.1
$151.6
$1,290.3
$6,781.1
$1,324.1

EV
$699.6
$40,115.0
$1,856.9
$695.5
$238.4
$173,182.2
$3,299.2
$3,920.6
$10,141.1
$89.3
$410.2
$253.9
$2,565.5
$748.0
$92.6
$1,287.6
$6,431.9
$1,287.6

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

34.5%
28.7%
19.9%
68.7%
14.4%
4.3%
35.8%
9.7%

2.7x
2.4x
20.2%
32.9
44.8
0.4x

TTM
EBITDA
Margin
-45.5%
57.3%
29.4%
33.7%
11.1%
35.8%
-2.4%
14.4%
12.6%
4.0%
16.1%
1.4%
5.8%
38.2%
-23.2%
28.2%
43.7%
14.4%

TTM
Revenue
Growth EV/ Revenue
69.7%
5.9x
74.0%
13.9x
37.2%
3.9x
40.0%
2.0x
-7.0%
1.6x
29.5%
4.0x
232.2%
1.8x
34.5%
1.6x
101.9%
14.0x
23.6%
0.6x
-8.1%
1.1x
24.0%
0.6x
17.0%
5.2x
35.3%
0.8x
-7.3%
1.7x
32.6%
2.0x
54.7%
8.6x
34.5%
2.0x

EV/
Forward
EBITDA EV/ Revenue
n/a
3.7x
24.2x
9.4x
13.3x
3.3x
5.8x
1.6x
14.2x
1.5x
11.2x
3.0x
n/a
1.3x
11.2x
1.3x
111.3x
n/a
14.9x
0.6x
6.9x
1.1x
43.6x
0.5x
90.0x
4.4x
2.0x
0.7x
n/a
1.1x
7.2x
1.8x
19.7x
6.4x
13.8x
1.5x

Forward
EV/
EBITDA
n/a
17.1x
10.7x
4.6x
9.2x
8.2x
7.5x
7.3x
48.8x
4.3x
5.7x
11.7x
55.9x
3.6x
9.3x
5.8x
14.5x
8.7x

YoY Stock
Market
Return
n/a
-22.8%
-5.5%
-61.7%
42.1%
4.7%
n/a
28.7%
3.1%
-59.5%
-24.3%
-33.5%
-55.3%
-61.3%
141.5%
-11.4%
-40.5%
-22.8%

Internet Ad Tech and Lead Generation Software Stock Market Return: Jan - Jul 2012
25%

20%

15%

5%

0%

-5%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
71.4%
79.5%
68.7%
67.1%
82.2%
63.2%
81.9%
64.4%
85.9%
44.3%
23.5%
50.1%
53.8%
68.7%
94.1%
59.3%
75.1%
68.7%

10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$119.1
$2,889.9
$473.8
$353.6
$150.5
$43,162.0
$1,874.2
$2,435.0
$723.9
$148.4
$370.5
$414.6
$488.8
$961.3
$54.0
$632.4
$748.3
$488.8

11.8%
20.7%
12.3%
-41.6%
-34.9%

-10%
Ad Tech & Lead Generation

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Commerce


Company Name
1-800-FLOWERS.COM, Inc.
Amazon.com, Inc.
Bitauto Holdings Limited
Bluefly, Inc.
BlueNile
DangDang
Digital River Inc.
eBay Inc.
Liquidity Services, Inc.
Mecox Lane Limited
Mercadolibre, Inc.
Overstock.com, Inc.
PetMed Express, Inc.
Stamps.com

Ticker
FLWS
AMZN
BITA
BFLY
NILE
DANG
DRIV
EBAY
LQDT
MCOX
MELI
OSTK
PETS
STMP
Median:

Market Cap
$221.6
$106,728.0
$168.0
$34.3
$349.9
$399.5
$645.5
$58,763.4
$1,371.6
$56.9
$3,090.3
$185.9
$197.0
$345.7
$347.8

EV
$229.8
$101,758.0
$80.5
$31.8
$289.4
$178.4
$298.3
$55,091.4
$1,307.9
$4.0
$2,935.9
$142.9
$129.2
$279.6
$254.7

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Revenue
$737.0
$54,326.0
$117.2
$98.9
$361.4
$637.2
$400.7
$13,020.7
$432.2
$206.9
$340.7
$1,055.7
$233.6
$108.7
$381.0

TTM
Gross
Margin
40.3%
23.3%
70.6%
24.1%
19.5%
13.0%
84.0%
69.9%
45.9%
33.8%
74.8%
17.0%
33.5%
75.0%
37.0%

TTM
EBITDA
Margin
5.1%
3.6%
13.7%
-16.7%
3.7%
-9.1%
14.4%
28.9%
21.1%
-14.3%
36.3%
0.8%
11.2%
18.7%
8.1%

TTM
Revenue
Growth EV/ Revenue
12.5%
0.3x
34.9%
1.9x
48.3%
0.7x
9.8%
0.3x
5.4%
0.8x
59.3%
0.3x
7.3%
0.7x
29.5%
4.2x
40.6%
3.0x
-8.6%
0.0x
36.8%
8.6x
-3.6%
0.1x
1.2%
0.6x
17.1%
2.6x
14.8%
0.7x

EV/
Forward
EBITDA EV/ Revenue
6.1x
0.3x
52.5x
1.4x
5.0x
0.5x
n/a
n/a
21.8x
0.7x
n/a
0.2x
5.2x
0.7x
14.7x
3.7x
14.3x
2.6x
n/a
0.0x
23.7x
7.2x
16.5x
0.1x
5.0x
0.6x
13.8x
2.3x
14.3x
0.7x

Forward
EV/
EBITDA
5.0x
26.8x
3.3x
n/a
12.2x
n/a
3.4x
11.1x
11.3x
n/a
19.6x
5.5x
5.1x
9.4x
9.4x

YoY Stock
Market
Return
13.6%
6.1%
-39.4%
n/a
-40.3%
-55.8%
-31.4%
39.2%
81.8%
-66.8%
-11.9%
-37.5%
-10.8%
25.4%
-11.9%

Internet Commerce Software Stock Market Return: Jan - Jul 2012


14.8%
10.8%
-8.2%
37.0%
8.1%
1.6%
42.4%
19.2%

30%
25%
20%
15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

3.1x
2.7x
34.2%
60.3
55.4
0.5x

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

10%
5%
0%
-5%

6.4%
17.1%
-30.3%
-39.1%
-11.1%

-10%
Commerce

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Content & Media


Company Name
AOL, Inc.
DemandMedia
InterActiveCorp
Netflix
Pandora
TheStreet.com, Inc.
Tudou Holdings Limited
WebMD Health Corp.
XO Group
Yahoo! Inc.
Youku

Ticker
AOL
DMD
IACI
NFLX
P
TST
TUDO
WBMD
XOXO
YHOO
YOKU
Median:

Market Cap
$2,951.3
$853.8
$4,664.7
$3,207.1
$1,595.5
$48.8
$765.9
$842.7
$220.1
$19,540.3
$1,940.1
$1,595.5

EV
$1,605.2
$758.2
$3,920.6
$2,793.8
$1,515.0
$13.6
$668.7
$500.7
$151.9
$17,803.3
$1,366.9
$1,366.9

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Revenue
$2,169.0
$345.2
$2,435.0
$3,456.4
$304.1
$53.9
$98.8
$505.4
$127.2
$4,979.8
$193.4
$345.2

TTM
Gross
Margin
27.8%
51.9%
64.4%
31.2%
34.0%
53.9%
-0.6%
58.5%
81.4%
69.2%
25.6%
51.9%

TTM
EBITDA
Margin
20.6%
18.3%
14.4%
6.6%
-6.8%
-6.0%
-52.6%
12.9%
13.2%
26.2%
-0.9%
12.9%

TTM
Revenue
Growth EV/ Revenue
-3.8%
0.7x
15.9%
2.2x
34.5%
1.6x
30.1%
0.8x
81.9%
5.0x
-7.3%
0.3x
n/a
6.8x
-12.4%
1.0x
8.7%
1.2x
-10.6%
3.6x
107.3%
7.1x
12.3%
1.6x

EV/
Forward
EBITDA EV/ Revenue
3.6x
0.7x
12.0x
2.0x
11.2x
1.3x
12.3x
0.7x
n/a
3.3x
n/a
n/a
n/a
4.0x
7.7x
1.1x
9.1x
1.1x
13.6x
4.0x
n/a
n/a
11.2x
1.3x

Forward
EV/
EBITDA
4.3x
n/a
7.3x
15.4x
n/a
n/a
n/a
7.4x
5.8x
10.5x
n/a
7.4x

YoY Stock
Market
Return
82.9%
8.2%
28.7%
-78.3%
-36.4%
-47.3%
n/a
-57.2%
-5.5%
22.0%
-54.2%
-21.0%

Internet Content & Media Software Stock Market Return: Jan - Jul 2012

12.3%
-9.2%
-29.6%
51.9%
12.9%
2.9%
37.7%
9.1%

25%

2.1x
2.0x
25.4%
62.9
30.9
0.4x

10%

20%

15%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

0%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

5%

13.5%
0.8%
-76.3%
-11.6%
90.8%

-5%
Content & Media

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Gaming


Company Name
ChangYou.com
Giant Interactive
Netease
NCSoft
Perfect World
Sohu.com Inc.
Tencent Holdings
Zynga, Inc.

Ticker
CYOU
GA
NTES
KOSE:A036
PWRD
SOHU
SEHK:700
ZNGA
Median:

Market Cap
$958.8
$1,056.7
$6,957.8
$3,922.0
$451.5
$1,324.1
$54,257.1
$2,286.5
$1,805.3

EV
$620.5
$771.1
$4,745.9
$3,475.5
$304.5
$748.0
$51,201.6
$1,169.5
$970.3

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
EBITDA
Margin
64.7%
65.2%
49.9%
n/a
38.8%
38.2%
45.5%
-36.0%
45.5%

TTM
Revenue
Growth EV/ Revenue
47.2%
1.1x
28.7%
2.5x
32.7%
3.9x
85.8%
3.4x
20.4%
0.6x
35.3%
0.8x
46.2%
10.1x
43.1%
0.9x
39.2%
1.8x

EV/
Forward
EBITDA EV/ Revenue
1.7x
1.0x
3.8x
2.2x
7.7x
3.3x
n/a
n/a
1.7x
0.6x
2.0x
0.7x
22.3x
n/a
n/a
1.0x
2.9x
1.0x

Forward
EV/
EBITDA
2.0x
3.9x
6.6x
n/a
2.0x
3.6x
n/a
6.7x
3.7x

YoY Stock
Market
Return
-64.9%
-41.9%
5.2%
-35.9%
-51.9%
-61.3%
14.2%
n/a
-41.9%

40%

30%

20%

10%
2.4x
2.2x
40.1%
21.3
47.5
0.9x

0%

-10%

-20%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

TTM
Gross
Margin
84.6%
90.3%
67.9%
75.0%
83.3%
68.7%
63.6%
71.0%
73.0%

Internet Gaming Software Stock Market Return: Jan - Jul 2012


39.2%
23.8%
7.0%
73.0%
45.5%
31.8%
26.1%
13.7%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$558.7
$313.0
$1,231.0
$1,035.9
$473.5
$961.3
$5,047.7
$1,271.5
$998.6

28.0%
16.4%
-15.3%
28.8%
42.7%

-30%
Gaming

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Infrastructure


Company Name
8x8, Inc.
Acme Packet, Inc.
Akamai Technologies, Inc.
Brightcove Inc.
BroadSoft, Inc.
Digital River Inc.
Envivio, Inc.
Harmonic Inc
Interactive Intelligence, Inc.
KIT digital, Inc.
Limelight Networks, Inc.
Mitel Networks Corp.
Polycom, Inc.
Rovi Corporation
SeaChange International Inc.
ShoreTel, Inc.
Sonus Networks, Inc
Synacor, Inc
Tucows Inc.
VeriSign

Ticker
EGHT
APKT
AKAM
BCOV
BSFT
DRIV
ENVI
HLIT
ININ
KITD
LLNW
MITL
PLCM
ROVI
SEAC
SHOR
SONS
SYNC
TCX
VRSN
Median:

Market Cap
$387.4
$1,033.6
$6,376.0
$406.3
$645.0
$645.5
$166.1
$498.6
$500.0
$190.2
$287.7
$236.4
$1,542.2
$1,424.7
$246.1
$262.7
$450.6
$273.1
$58.0
$7,117.5
$428.5

EV
$349.2
$666.9
$5,879.4
$354.0
$552.0
$298.3
$91.8
$320.8
$435.3
$179.9
$154.5
$469.5
$970.1
$1,992.5
$159.9
$226.4
$130.2
$243.2
$56.0
$6,377.4
$335.0

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Gross
Margin
67.4%
81.3%
72.6%
69.1%
82.3%
84.0%
63.8%
44.6%
67.6%
71.7%
53.8%
53.8%
59.0%
82.7%
49.5%
65.8%
62.5%
45.6%
25.0%
79.5%
66.6%

TTM
EBITDA
Margin
11.7%
16.0%
39.9%
-14.0%
21.0%
14.4%
2.7%
8.1%
8.2%
3.8%
1.0%
13.3%
13.9%
31.4%
10.7%
-2.8%
0.3%
8.4%
6.7%
54.6%
9.6%

TTM
Revenue
Growth EV/ Revenue
28.8%
3.8x
4.1%
2.3x
15.1%
4.7x
48.3%
4.6x
29.4%
3.6x
7.3%
0.7x
56.2%
1.7x
6.5%
0.6x
13.1%
2.0x
93.6%
0.8x
-9.2%
0.9x
3.8%
0.8x
17.6%
0.6x
13.5%
2.9x
3.7%
0.8x
20.9%
1.0x
7.3%
0.5x
n/a
2.1x
17.7%
0.5x
13.6%
7.8x
13.6%
1.4x

EV/
Forward
EBITDA EV/ Revenue
32.3x
3.1x
14.2x
2.4x
11.7x
4.0x
n/a
3.8x
16.9x
3.3x
5.2x
0.7x
62.2x
1.1x
7.3x
0.6x
24.4x
1.8x
19.5x
0.7x
84.1x
0.8x
5.8x
0.7x
4.5x
0.7x
9.2x
3.0x
7.7x
1.0x
n/a
0.7x
194.0x
0.5x
25.3x
1.7x
8.2x
n/a
14.2x
6.9x
14.2x
1.1x

Forward
EV/
EBITDA
20.3x
11.5x
9.3x
n/a
12.7x
3.4x
12.6x
4.2x
22.7x
n/a
8.5x
5.0x
5.8x
7.3x
6.3x
n/a
n/a
14.1x
n/a
11.3x
9.3x

YoY Stock
Market
Return
39.7%
-74.3%
47.9%
n/a
-19.7%
-31.4%
n/a
-21.9%
-31.5%
-71.2%
-33.0%
-0.9%
-68.0%
-74.9%
-21.5%
-46.6%
-45.6%
n/a
56.9%
45.8%
-31.4%

Internet Infrastructure Software Stock Market Return: Jan - Jul 2012


13.6%
15.2%
-8.2%
66.6%
9.6%
3.4%
41.4%
18.5%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$92.5
$292.0
$1,256.4
$76.8
$155.1
$400.7
$54.2
$542.9
$217.4
$239.5
$177.1
$611.8
$1,539.3
$692.4
$194.2
$224.7
$262.6
$114.4
$102.0
$820.5
$232.1

30%
25%
20%
15%
10%

3.1x
2.7x
30.1%
60.3
55.4
0.5x

5%
0%
-5%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

6.4%
31.4%
-30.3%
-39.1%
-13.0%

-10%
-15%
Infrastructure

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Services


Company Name
Ancestory.com
Angie's List, Inc.
Bankrate
Carbonite, Inc.
Monster Worldwide, Inc.
Qihoo
Shutterfly
Tree.Com, Inc.
VistaPrint
Zillow

Ticker
ACOM
ANGI
RATE
CARB
MWW
QIHU
SFLY
TREE
VPRT
Z
Median:

Market Cap
$1,400.0
$761.3
$1,727.7
$227.7
$859.7
$1,770.0
$1,200.3
$151.6
$1,163.5
$1,127.8
$1,145.6

EV
$1,330.4
$699.6
$1,856.9
$159.6
$820.7
$1,408.2
$1,082.2
$92.6
$1,330.3
$1,044.7
$1,063.4

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Revenue
$434.9
$119.1
$473.8
$72.1
$992.1
$214.2
$530.6
$54.0
$1,020.3
$89.5
$324.6

TTM
Gross
Margin
83.0%
71.4%
68.7%
63.0%
52.1%
88.9%
52.7%
94.1%
65.2%
85.9%
70.1%

TTM
EBITDA
Margin
32.7%
-45.5%
29.4%
-22.7%
13.8%
27.3%
9.6%
-23.2%
11.2%
10.0%
10.6%

TTM
Revenue
Growth EV/ Revenue
22.7%
3.1x
69.7%
5.9x
37.2%
3.9x
46.7%
2.2x
-2.3%
0.8x
202.1%
6.6x
52.4%
2.0x
-7.3%
1.7x
24.9%
1.3x
99.4%
11.7x
41.9%
2.6x

EV/
Forward
EBITDA EV/ Revenue
9.3x
2.6x
n/a
3.7x
13.3x
3.3x
n/a
1.8x
6.0x
0.8x
24.1x
4.2x
21.1x
1.7x
n/a
1.1x
11.6x
1.1x
116.3x
8.7x
13.3x
2.2x

Forward
EV/
EBITDA
7.0x
n/a
10.7x
n/a
5.2x
11.3x
10.5x
9.3x
8.9x
50.4x
9.9x

YoY Stock
Market
Return
-7.8%
n/a
-5.5%
n/a
-39.6%
-35.7%
-38.6%
141.5%
27.7%
21.4%
-6.6%

Internet Services Software Stock Market Return: Jan - Jul 2012


41.9%
24.7%
111.9%
70.1%
10.6%
4.7%
46.3%
14.6%

45%
40%
35%
30%
25%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

1.7x
1.3x
9.9%
20.0
38.5
0.2x

20%
15%
10%
5%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

9.4%
16.9%
-88.2%
-36.7%
-0.2%

0%
-5%
Services

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Social


Company Name
Facebook
FriendFinder Networks Inc
Jive Software, Inc
LinkedIn
Mail.ru Group
Renren Inc
Yelp, Inc.

Ticker
FB
FFN
JIVE
LNKD
LSE:MAIL
RENN
YELP
Median:

Market Cap
$49,496.7
$27.7
$1,254.2
$10,761.9
$6,286.9
$1,464.8
$1,260.7
$1,464.8

EV
$40,014.7
$479.5
$1,100.8
$10,141.1
$6,135.1
$414.1
$1,130.0
$1,130.0

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Gross
Margin
74.0%
65.4%
57.4%
85.9%
75.2%
68.2%
92.7%
74.0%

TTM
EBITDA
Margin
24.2%
22.1%
-36.6%
12.6%
41.0%
-39.4%
-12.6%
12.6%

TTM
Revenue
Growth EV/ Revenue
n/a
9.2x
-4.2%
1.5x
56.8%
11.5x
101.9%
14.0x
83.8%
12.1x
n/a
2.9x
n/a
10.5x
70.3%
10.5x

EV/
Forward
EBITDA EV/ Revenue
38.2x
7.2x
6.6x
n/a
n/a
n/a
111.3x
n/a
29.6x
n/a
n/a
2.1x
n/a
7.8x
33.9x
7.2x

Forward
EV/
EBITDA
13.3x
n/a
n/a
48.8x
n/a
n/a
n/a
31.0x

YoY Stock
Market
Return
n/a
-79.1%
n/a
3.1%
-15.8%
-65.7%
n/a
-40.7%

Internet Social Software Stock Market Return: Jan - Jul 2012


70.3%
-12.8%
-7.7%
74.0%
12.6%
1.8%
47.2%
25.2%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio

TTM
Revenue
$4,327.0
$328.9
$95.6
$723.9
$505.9
$143.9
$107.2
$328.9

80%
70%
60%
50%
40%

2.7x
2.5x
12.5%
45.2
47.9
0.7x

30%
20%
10%

Cash Flow Statement Analysis (Median)


Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

5.3%
95.6%
-175.0%
77.9%
121.3%

0%
-10%
Social

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

SEG Internet Index Category: Travel


Company Name
Ctrip
Expedia
HomeAway
Kayak Software Corp
MakeMyTrip
Orbitz
Priceline
Travelzoo
TripAdvisor Inc

Ticker
CTRP
EXPE
AWAY
KYAK
MMYT
OWW
PCLN
TZOO
TRIP
Median:

Market Cap
$1,812.0
$7,617.8
$1,947.3
$1,264.3
$599.4
$456.0
$33,985.7
$350.2
$5,125.4
$1,812.0

EV
$1,177.5
$6,581.0
$1,726.1
$1,221.5
$512.3
$708.8
$31,991.9
$295.7
$5,061.5
$1,221.5

Income Statement Analysis (Median)


TTM Revenue Growth
TTM EBITDA Growth
TTM Earnings Growth
Gross Profit Margin
EBITDA Margin
Net Income Margin
SG&A Expenses as a % of Total Revenue
R&D Expenses as a % of Total Revenue

TTM
Revenue
$595.4
$3,664.1
$255.3
$245.2
$208.7
$770.8
$4,807.6
$152.5
$699.5
$595.4

TTM
Gross
Margin
75.8%
77.6%
84.7%
92.3%
28.7%
82.0%
74.3%
89.8%
98.3%
82.0%

TTM
EBITDA
Margin
25.8%
18.8%
18.1%
17.1%
2.1%
13.8%
34.9%
25.9%
43.0%
18.8%

TTM
Revenue
Growth EV/ Revenue
18.4%
2.0x
17.3%
1.8x
27.2%
6.8x
31.4%
5.0x
45.9%
2.5x
0.9%
0.9x
31.9%
6.7x
16.7%
1.9x
24.0%
7.2x
24.0%
2.5x

EV/
Forward
EBITDA EV/ Revenue
7.7x
1.7x
9.6x
1.6x
37.4x
5.6x
29.1x
4.0x
115.3x
4.9x
6.6x
0.9x
19.1x
5.6x
7.5x
1.8x
16.8x
6.1x
16.8x
4.0x

Forward
EV/
EBITDA
6.0x
8.1x
18.6x
17.1x
28.6x
4.8x
15.2x
9.1x
13.3x
13.3x

YoY Stock
Market
Return
-72.7%
-11.5%
-39.7%
n/a
-27.4%
34.4%
26.9%
-58.4%
n/a
-27.4%

Internet Travel Software Stock Market Return: Jan - Jul 2012


24.0%
26.2%
37.0%
82.0%
18.8%
9.4%
53.0%
14.6%

25%

2.1x
1.8x
16.0%
32.5
188.8
0.4x

5%

20%

15%

10%

Balance Sheet Analysis (Median)


Current Ratio
Quick Ratio
Cash as Percent of Market Cap
Avg Days Outstanding: Accounts Receivable
Avg Days Outstanding: Accounts Payable
Working Capital to TTM Operating Expense Ratio
Cash Flow Statement Analysis (Median)
Levered FCF Margin
Cash from Operations Growth (YoY)
Cash from Investing Growth (YoY)
Cash from Financing Growth (YoY)
Levered FCF Growth (YoY)

0%

-5%

-10%
19.2%
35.8%
8.0%
-21.5%
-0.6%

-15%
Travel

S&P

NASDAQ

SEG Internet Index

August 2012 Monthly Flash Report


Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved

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Copyright 2012 by Software Equity Group, L.L.C., All Rights Reserved