Int PDF

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX | CF.
: LSE)
The recommendations and opinions expressed in this research report accurately reflect the Investment Analysts personal, independent
and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important information,
please see the Important Disclosures section in the appendix of this document or visit Canaccord Genuitys Online
Disclosure Database.

Michael Graham, CFA
Canaccord Genuity Inc. (US)
1.212.849.3924
mgraham@canaccordgenuity.com

Maria Ripps, CFA

1.212.849.3957
mripps@canaccordgenuity.com

Austin Moldow

1.212.849.3931
amoldow@canaccordgenuity.com

Technology -- Internet
Monthly Internet Dashboard
October 2014
Monthly analysis of sector milestones, company operating metrics, quantitative
factors, and stock sentiment
Summary of findings for covered stocks:
Most positive reads: GRUB, W, YNDX, Z
Most negative read: EBAY, ZNGA
Biggest changes from last month: AMZN, ZNGA
Company Ticker Quant Metrics Sentiment Overall Last Month
Amazon.com AMZN - = - -- =
Borderfree BRDR + = - = =
eBay EBAY - - = -- -
Facebook FB + = = + ++
Glu Mobile GLUU + + - + ++
Google GOOG - = = - -
GrubHub GRUB + = + ++ +
HomeAway AWAY = + = + =
LinkedIn LNKD + + - + =
Millennial Media MM + = - = =
Pandora P + = - = +
Spark Networks LOV + - - - --
Tremor Video TRMR + = - = =
Trupanion TRUP + = - = =
Twitter TWTR = = - - +
Wayfair W = + + ++ NA
Yandex YNDX + + = ++ +
Zillow Z + + = ++ +
Zulily ZU - + + + NA
Zynga ZNGA - = - -- +
Source: Canaccord Genuity

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Monthly Internet Dashboard 28 October 2014
SECTOR PERFORMANCE & VALUATION
The Internet Sector had another negative month in October, down approximately 5.4%,
which brought YTD performance to negative 6.0%.
Internet performance vs. the S&P:
Our tracking universe of 30 Internet stocks (7 large-cap and 23 SMID-cap) as a group
underperformed the S&P 500 during the past month. SMID-cap stocks were down 6.9%
last month, underperforming both large-cap stocks, which declined 4.9%, and the S&P
500, which was down 1.1%. Year-to-date, both large-cap and SMID-cap Internet names
as a group declined around 6.0%, underperforming the S&P 500, which is up 6.1%.
Valuations (2015) today and changes during the past month:
The P/E of the S&P 500 is 14.9x relative to projected earnings growth of 9.5%.
The P/E of large-cap Internet is 26.3x (equating to a 77% premium to the S&P),
relative to projected earnings growth of 18.4% (ex. AMZN).
The P/E of small- and mid-cap Internet stocks is 24.4x (equating to a 7% discount to
large-cap), relative to projected earnings growth of 37.7%.

Figure 1: One-month, 12-months and YTD performance (left) and valuation metrics (right) for the Internet sector compared to the
S&P500. One-month represents performance from September 27, 2014 to October 27, 2014

-6.9%
0.6%
-7.3%
-4.9%
1.4%
-5.6%
-1.1%
11.5%
6.1%
-10%
-5%
0%
5%
10%
15%
1-Month 12-Months YTD
Internet Sector - SMID Cap
Internet Sector - Large Cap
S&P 500

3.7x
16.4x
24.4x
9.7x
15.0x
26.3x
1.8x
8.7x
14.9x
0x
5x
10x
15x
20x
25x
30x
EV/2015E Sales EV/2015E EBITDA P/2015E EPS
Internet Sector - SMID Cap
Internet Sector - Large Cap
S&P 500

Source: Thomson, Bloomberg, CG. Market-cap-weighted. Stocks included: Large-cap Internet AMZN (ex-P/E), EBAY, FB , GOOG, LNKD, PCLN, YHOO ;
Smid-Cap Internet ANGI, AOL, AWAY, DMD, EXPE, GLUU, GRPN, IACI, LQDT, MELI, MM ,MOVE, NILE, OPEN, P, RATE, SCOR, SFLY, STMP, WBMD, YELP,
Z, ZNGA
Past performance does not predict future results

3

28 October 2014 Monthly Internet Dashboard
Internet relative to TMT:
During the past month, the Internet sector was one of the weakest performers, along
with the Software and the Semiconductor sectors, declining 5.4%. The Internet
sector is down 6.0% YTD.
The Semiconductor and the Hardware sectors remain the strongest performing
sectors YTD.
The Internet sector continues to be the most expensive sector in TMT.

Figure 2: Comparison of performance (left) and valuation metrics (right) for representative companies in various tech sub-sectors.
One-month represents performance from September 27, 2014 to October 27, 2014

-5.4%
-8.1%
1.5%
-6.6% -2.3%
-1.8%
-1.1%
1.1%
-1.1%
26.2%
27.7%
11.6% 14.7%
11.5%
-6.0%
-7.4%
16.7%
17.8%
8.8%
6.4%
6.1%
-20%
-10%
0%
10%
20%
30%
40%
Internet Software Hardware
and Comm
Equipment
Semi and
Semi-cap
equipment
Telco Media S&P 500
Index
1-Month 12-Months YTD

9.3x
3.3x
2.7x 2.8x 2.9x 2.8x
1.8x
15.1x
10.1x
8.4x
8.0x 7.8x
9.8x
8.7x
26.5x
18.7x
13.2x
14.2x
16.3x 16.7x
14.9x
0x
5x
10x
15x
20x
25x
30x
Internet Software Hardware
and Comm
Equipment
Semi and
Semi-cap
equipment
Telco Media S&P 500
Index
EV/2015E Sales EV/2015E EBITDA P/2015E EPS

Source: Thomson & Canaccord Genuity estimates. Market-cap-weighted. Stocks included: Internet GOOG, AMZN, FB, EBAY, YHOO; Software IBM,
MSFT, ORCL, SAP, EMC, CRM; Hardware AAPL, CSCO, HPQ, QCOM, NOK; Semi INTC, TXN, AMAT, MU, MCHP, NVDA, SNDK; Media CMCSA, DIS,
DTV, NWSA, TWX, TWC, VIAB; Telco T, VZ, AMT, EQIX, FTR, TMUS
Past performance does not predict future results

4


Figure 3: Quantitative screen results

As of: 10/27/2014 2015 Valuation Price Momentum Estimate Revisions Short Int 10/15 Overall Prior
Ticker Price P/E EV/EBITDA EV/Rev Rating 1Mmo Acc Rating 3MEC 6MEC Rating EPSY2 EPSY3 EPSAc Rating SIDC Chg Rating Rating Month
eMedia
GOOGL $549.88 18.0x 10.0x 4.0x 3 (6%) 3% 4 (3%) (3%) 4 18% 18% 0% 2 1.4 -11% 5 5 2
FB $80.28 39.5x 18.2x 11.8x 5 4% (3%) 2 14% 29% 1 25% 33% 8% 1 1.0 3% 4 2 2
TWTR $48.56 136.8x 52.8x 12.7x 5 (6%) (31%) 5 140% 380% 1 NM 111% NM 1 0.9 -3% 3 3 1
LNKD $199.99 72.8x 28.1x 7.7x 5 (3%) (15%) 5 13% 19% 1 47% 49% 2% 1 4.4 30% 1 2 4
YNDX $27.44 21.3x 14.3x 6.0x 1 (7%) 5% 2 1% (2%) 3 25% 23% (2%) 2 1.2 -25% 5 2 2
P $19.31 37.4x 28.1x 3.2x 5 (21%) 12% 4 6% 10% 1 156% 68% (88%) 1 3.7 30% 1 2 1
ZNGA $2.38 61.0x 13.2x 1.6x 4 (19%) 2% 5 (150%) (200%) 5 NM 79% NM 1 3.4 6% 3 5 2
GLUU $4.41 18.1x 10.7x 1.4x 2 (19%) 18% 2 405% 910% 1 21% 54% 33% 1 2.9 -28% 5 1 1
MM $1.86 NM NM 0.3x 2 (3%) 46% 1 (47%) (366%) 5 NM NM NM 2 8.0 0% 1 1 2
TRMR $2.07 NM NM 0.1x 2 (19%) 24% 2 1% (5%) 3 NM NM NM 2 7.3 7% 1 1 1
LOV $4.18 NM 10.5x 1.4x 2 (12%) 19% 2 32% 28% 1 NM NM NM 2 8.3 4% 1 1 3
YHOO $44.70 35.4x 26.3x 7.7x 5 15% (9%) 2 12% (2%) 1 (22%) 13% 35% 4 1.5 12% 4 4 5
IACI $62.98 16.6x 7.9x 1.6x 2 (4%) 2% 4 (37%) (44%) 5 73% 13% (60%) 4 3.5 39% 1 4 5
AOL $41.45 16.6x 6.1x 1.2x 1 (4%) (9%) 5 (2%) (10%) 4 23% 16% (8%) 4 5.3 14% 1 4 2
DMD $6.88 NM 2.2x 0.5x 1 (24%) 7% 4 53% (129%) 3 NM NM NM 2 1.9 6% 4 3 1
eCommerce
AMZN $289.97 NM 15.9x 1.2x 3 (10%) 9% 2 (170%) (138%) 5 NM NM NM 2 1.9 -8% 5 5 5
EBAY $51.19 15.6x 9.6x 3.0x 2 (2%) 2% 2 (1%) (1%) 3 11% 12% 1% 4 1.4 -17% 5 4 3
ZU $37.17 86.4x 38.8x 2.4x 5 (6%) (10%) 5 2% (7%) 3 111% 72% (39%) 1 11.9 14% 1 4 1
Z $105.55 112.2x 42.7x 8.9x 5 (12%) 15% 2 28% 429% 1 154% 72% (82%) 1 5.9 1% 2 1 2
AWAY $34.24 47.1x 18.9x 5.0x 5 4% (1%) 2 (6%) (18%) 4 25% 27% 2% 2 6.9 12% 1 3 3
GRUB $36.47 70.1x 26.1x 8.1x 5 5% 1% 1 13% 0% 1 72% 33% (39%) 2 6.6 15% 1 1 2
W $26.05 NM NM 1.4x 2 0% 0% 4 0% 0% 3 NM NM NM 2 0.6 20% 3 3 NA
BRDR $10.23 44.1x 15.0x 1.2x 4 (23%) 8% 4 78% 0% 1 63% 74% 11% 1 9.2 -23% 3 2 1
TRUP $7.09 NM NM 1.6x 2 (14%) 19% 2 0% 0% 3 NM NM NM 2 9.1 43% 1 1 3
PCLN $1,134.26 17.6x 12.9x 5.2x 4 (3%) 6% 1 0% 1% 2 23% 21% (3%) 4 1.5 1% 4 4 4
EXPE $80.38 17.2x 8.2x 1.5x 2 (5%) (6%) 5 3% 4% 1 18% 17% (0%) 4 5.2 1% 2 3 4
MELI $109.73 36.9x 24.4x 8.1x 5 (1%) (20%) 5 (34%) (48%) 5 102% 16% (86%) 4 13.3 -7% 2 5 5
YELP $57.21 143.0x 32.4x 7.3x 5 (19%) (1%) 5 500% 400% 1 NM 123% NM 1 2.0 -8% 4 4 5
GRPN $5.93 29.4x 8.8x 0.9x 2 (10%) (6%) 5 (20%) (27%) 5 153% 40% (113%) 2 6.1 7% 1 4 2
TRLA $44.52 149.9x 29.3x 4.9x 4 (12%) 6% 4 21% (15%) 2 NM 124% NM 1 5.5 -15% 4 4 4
SFLY $42.60 95.1x 7.5x 1.5x 3 (14%) (4%) 5 22% 51% 1 NM 172% NM 1 5.2 7% 2 2 1
RATE $10.28 12.8x 7.0x 1.9x 1 (11%) 29% 2 (4%) (4%) 4 21% 18% (3%) 4 6.7 -30% 4 4 2
MOVE $20.89 39.3x 19.7x 2.8x 5 45% 3% 1 (19%) (24%) 4 113% 24% (89%) 2 2.5 13% 3 4 5
ANGI $6.65 NM 16.6x 1.0x 2 (0%) 19% 1 7% (110%) 3 NM NM NM 2 7.9 -2% 2 1 2
Growth & Acceleration

Source: ThomsonOne, CG estimates

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Figure 4: Internet metrics tracker

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14
Amazon
Unique Visitors (000s), Global, Desktop - comScore 401,154 400,418 419,839 416,846 392,042 374,027 400,096 394,592 388,904 364,439 371,964 374,612 369,374
Y/Y Change 10.8% 8.4% 10.7% 7.2% 2.1% 6.2% 4.1% 1.1% (1.7%) (5.0%) (7.9%) (7.7%) (7.9%)
Unique Visitors (000s), US, Mobile - comScore 89,493 89,816 100,864 105,096 102,861 99,205 98,843 97,270 99,327 99,631 100,783 106,305 105,809
Y/Y Change 54.3% 83.2% 46.5% 39.5% 42.1% 34.5% 28.7% 29.5% 22.9% 18.3% 15.6% 16.1% 18.2%
Channel Advisor SSS Growth - Monthly 26.5% 23.8% 12.3% 27.9% 14.0% 23.0% 26.3% 27.0% 28.1% 34.4% 40.4% 45.1% 37.9%
y/y Acceleration (Deceleration) compared to last month 2.5% (2.7%) (11.5%) 15.6% (13.9%) 9.0% 3.3% 0.7% 1.1% 6.3% 6.0% 4.7% (7.2%)
eBay Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14
Y/Y Change 2.9% 2.4% 9.3% 6.9% 5.4% 8.1% 4.4% 1.5% (0.8%) (5.2%) (8.7%) (5.7%) (5.4%)
Y/Y Change 35.3% 49.4% 41.3% 47.7% 47.1% 34.7% 59.6% 44.2% 44.8% 43.1% 36.7% 36.6% 40.1%
Channel Advisor SSS Growth - Monthly 17.4% 12.9% 10.9% 11.0% 12.7% 15.0% 18.7% 14.0% 11.5% 12.3% 9.7% 5.9% 8.9%
y/y Acceleration (Deceleration) compared to last month (1.5%) (4.5%) (2.0%) 0.1% 1.7% 2.3% 3.7% (4.7%) (2.5%) 0.8% (2.6%) (3.8%) 3.0%
Channel Advisor Auction Growth - Monthly 8.4% (0.4%) (3.7%) (10.0%) (10.9%) (8.5%) (10.0%) (14.5%) (11.1%) (19.0%) (8.2%) (11.0%) (4.1%)
Channel Advisor Fixed Price Growth - Monthly 19.4% 12.8% 9.7% 10.7% 14.6% 15.5% 21.5% 18.1% 13.0% 18.4% 12.8% 6.9% 7.6%
Channel Advisor Motors Growth - Monthly 14.4% 16.0% 19.6% 21.0% 17.6% 22.3% 19.7% 15.6% 15.2% 10.5% 8.0% 8.4% 14.7%
Facebook
Y/Y Change (0.2%) (0.7%) 0.2% (0.6%) 2.7% (0.1%) (0.9%) 1.3% (0.2%) (1.0%) 5.1% 3.8% (2.5%)
M/MChange 0.8% 2.1% 2.0% 4.5% 4.0% 0.6% 10.9% 1.1% 1.0% 0.1% 2.6% 0.4% 0.2%
Glu Mobile Sep-13 Oct-13 Nov-13
iOS iPhone Index 191 189 192 451 330 364 318 271 154 340 572 688 616
iOS iPad Index 218 177 192 345 264 262 216 170 136 312 346 403 312
Android Index 297 191 187 247 458 442 349 255 209 349 457 674 591
Total 706 557 571 1,043 1,052 1,068 882 696 499 1,001 1,375 1,765 1,519
M-MChange 85.3% -21.1% 2.5% 82.7% 0.9% 1.5% -17.4% -21.1% -28.3% 100.6% 37.4% 28.4% -13.9%
Y-Y Change -27.5% -55.4% -40.1% 58.5% 373.9% 84.8% 74.7% 83.6% 29.6% 137.8% 635.3% 363.3% 115.2%
Quarterly Average 425 724 1,001 732 1,553
Q-Q Change 7.5% 70.4% 38.3% -26.8% 112.2%
GrubHub
GrubHub Seamless, Unique Visitors (000s), Global, Desktop - comScore 1,580 1,709 1,904 1,981 1,651 1,811 1,804 1,693 1,368
Sequential Change 8.2% 11.4% 4.1% -16.7% 9.7% -0.4% -6.1% -19.2%
Unique Visitors (000s) to GrubHub.com, Global, Desktop - comScore 1,424 1,805 1,138 1,123 1,257 1,385 1,579 1,661 1,397 1,594 1,540 1,450 1,085
Y/Y Change 74.4% 83.3% 79.9% 13.1% 42.5% 47.1% 41.3% 85.0% 42.0% 58.6% 78.0% 52.3% -23.8%
Unique Visitors (000s) to Seamless.com, Global, Desktop - comScore 410 429 403 341 360 404 461 394 321 280 285 317 371
Y/Y Change 0.6% 14.4% 10.0% -35.3% -15.9% -23.7% -34.8% -37.0% -28.9% -28.3% -44.4% -20.5% -9.6%

Source: comScore, Channel Advisor, AppData, AppAnnie, company reports, CG estimates

6


Figure 4: Internet metrics tracker (continued)

Google Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14
Unique Visitors (000s), Global, Desktop - comScore 1,209,554 1,214,986 1,222,761 1,232,646 1,220,700 1,210,350 1,253,796 1,251,918 1,252,821 1,227,322 1,233,077 1,213,090 1,210,127
Y/Y Change 6.7% 6.5% 8.7% 8.5% 7.1% 7.7% 7.7% 6.2% 5.6% 2.8% 2.0% 0.3% 0.0%
Y/Y Change 9.8% 10.1% 5.5% 9.1% 15.8% 23.4% 31.5% 31.8% 30.2% 28.0% 29.9% 29.9% 30.0%
Explicit Core Search Queries (US Only) - comScore 12,477 12,934 12,095 12,299 13,220 11,941 13,067 12,576 12,501 12,050 12,120 12,081 12,048
Y/Y Change 14.3% 9.7% 6.5% 4.6% 1.2% (3.1%) (4.3%) (5.6%) (6.4%) (6.0%) (6.6%) (5.4%) (3.4%)
Sequential Change (2.3%) 3.7% (6.5%) 1.7% 7.5% (9.7%) 9.4% (3.8%) (0.6%) (3.6%) 0.6% (0.3%) (0.3%)
Share of Explicit Core Searches (US Only) - comScore 66.9% 66.9% 66.7% 67.3% 67.6% 67.5% 67.5% 67.6% 67.6% 67.6% 67.4% 67.3% 67.3%
HomeAway
Y/Y Change 12.9% 16.4% 17.4% 10.7% 56.6% 49.9% 54.1% 52.5% 55.3% 45.8% 39.1% 36.8% 40.8%
HomeAway.com Listings 574,452 586,212 640,929 649,379 670,486 684,240 703,813 723,385 808,618 830,845 853,071 840,671 852,761
VRBO.com Listings 541,770 554,879 610,760 622,883 641,523 648,680 668,442 688,204 788,714 811,473 834,232 819,264 832,778
Abritel 623,982 627,489 641,964 644,131 667,402 676,030 726,604 777,177 844,537 868,580 892,623 892,147 910,923
Sum 1,740,204 1,768,580 1,893,653 1,916,393 1,979,411 2,008,950 2,098,858 2,188,766 2,441,869 2,510,898 2,579,926 2,552,082 2,596,462
Y/Y Change 93.4% 88.4% 80.2% 64.9% 52.2% 52.6% 57.6% 47.3% 47.9% 44.1% 47.0% 45.7% 49.2%
Sequential Change -0.6% 1.6% 7.1% 1.2% 3.3% 1.5% 4.5% 4.3% 11.6% 2.8% 2.7% -1.1% 1.7%
LinkedIn
Y/Y Change 29.9% 21.8% 19.2% 17.9% 12.0% 6.3% 5.3% (2.4%) (6.9%) (7.8%) (4.5%) (2.3%) 2.2%
Y/Y Change 81.0% 73.6% 75.2% 25.8% 16.7% 43.6% 146.0% 129.1% 141.5% 155.5% 188.3% 233.3% 182.8%
J ob Postings on LinkedIn 295,762 291,501 286,394 270,159 310,250 319,565 329,776 339,890 353,069 846,500 869,829 1,198,316 1,752,873
Sequential Change (1.7%) (1.4%) (1.8%) (5.7%) 14.8% 3.0% 3.2% 3.1% 3.9% 139.8% 2.8% 37.8% 46.3%
Pandora Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14
Y/Y Change 4.0% (1.5%) (6.0%) (2.6%) (3.4%) (12.5%) (8.4%) (8.1%) (8.6%) (14.3%) (15.9%) (10.8%) (6.6%)
Y/Y Change 40.3% 44.5% 51.9% 39.7% 33.8% 28.6% 29.2% 31.0% 36.4% 38.8% 41.9% 28.2% 10.3%
Mobile Mix by Platfrom
iPhone 49.5% 49.0% 48.8% 47.7% 47.9% 49.0% 48.8% 48.2% 49.3% 48.8% 48.3% 48.5% 47.9%
iPad 13.8% 13.3% 12.8% 13.8% 13.4% 12.9% 12.6% 12.6% 12.6% 12.2% 12.5% 12.3% 11.8%
Android Phone 36.7% 37.7% 38.4% 38.6% 38.7% 38.1% 38.6% 39.3% 38.1% 39.0% 39.2% 39.2% 40.3%
Spark Networks
Unique Visitors (000s), Global, Desktop - All Sites - comScore 1,279 1,155 1,255 1,179 1,207 945 809 755 625 747 755 771 507
Y/Y Change (14.6%) (13.9%) (1.6%) (19.0%) (32.7%) (29.9%) (38.6%) (44.4%) (52.7%) (40.8%) (34.4%) (43.1%) (60.3%)
UVs (000s), Global, Desktop - ChristianMingle.com - comScore 1,003 949 925 887 914 666 513 466 398 523 379 406 262
Y/Y Change (6.3%) 1.9% 19.2% (9.2%) (32.6%) (20.0%) (44.6%) (56.4%) (59.9%) (43.3%) (57.1%) (61.6%) (73.9%)
Unique Visitors (000s) to J Date.com - comScore 90 65 112 111 100 123 84 112 76 94 138 170 55
Y/Y Change (52.9%) (64.7%) (46.7%) (48.8%) (54.1%) (22.2%) (41.7%) (8.2%) (44.5%) (28.4%) (12.6%) 43.8% (38.7%)


7

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Tremor Video
US Online Video Ad Market, comScore
Total Online Unique Video Viewers, US, (MM) 188.7 189.0 189.2 188.2 183.8 182.4 187.8 186.1 183.5 186.9 190.3 196.5 192.2
Y/Y Change 4.0% 3.5% 3.9% 3.6% 2.4% 2.5% 2.9% 2.3% 0.7% 2.0% 1.5% 4.2% 1.8%
Trupanion Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Trupanion.com (000s), Global, Desktop - comScore 25 20 57 51 NM N/A 68 29 NM NM 77 NM 45
Y/Y Change (24.4%) (25.2%) 137.9% 119.1% NM NM 61.3% 61.0% NM NM 223.6% NM 79.9%
Twitter
Y/Y Change 10.0% 0.2% 5.2% 3.5% 7.7% 11.4% 11.1% 13.1% 5.9% 6.1% 17.7% 7.0% (4.4%)
Unique Visitors (000s), US, Mobile - comScore 35,747 36,781 39,555 38,645 42,873 43,168 91,540 90,564 94,418 91,869 95,650 95,045
M/MChange (2.4%) 2.9% 7.5% (2.3%) 10.9% 0.7% 112.1% (1.1%) 4.3% (2.7%) 4.1% (0.6%)
excluding syndicated traffic 43,168 61,455 55,214 63,050 57,612 58,359 62,005 59,819
M/MChange 42.4% (10.2%) 14.2% (8.6%) 1.3% 6.2% (3.5%)
Wayfair
Wayfair.com Unique Visitors (000s), Global, Desktop - comScore 5,898 6,192 6,345 6,417 7,359 6,331 7,105 6,782 6,967 6,960 8,294 8,758 8,473
Y/Y Change 155.4% 210.0% 35.4% 35.8% 67.8% 76.3% 67.4% 57.3% 37.6% 29.4% 31.7% 43.3% 43.7%
J oss & Main Unique Visitors (000s), Global, Desktop - comScore 1,292 1,744 1,739 1,391 1,826 2,019 1,846 1,503 1,335 1,452 1,682 1,923 1,599
Y/Y Change 59.5% 118.1% 103.3% 101.0% 120.1% 86.0% 72.2% 11.4% 6.4% 0.7% 35.9% 33.8% 23.7%
AllModern Unique Visitors (000s), Global, Desktop - comScore 620 610 617 596 721 718 1,002 757 903 834 1,050 876 948
Y/Y Change 78.6% 128.3% 15.2% 21.4% 30.6% 50.8% 98.7% 56.3% 74.7% 47.4% 67.7% 47.8% 52.8%
Yandex
Yandex Sites Unique Visitors (000s), Global, Desktop - comScore 92,308 92,423 98,811 101,533 102,075 99,571 103,535 103,924 104,526 102,394 101,869 103,391 105,708
Y/Y Change 11.7% 7.7% 13.8% 12.9% 13.0% 10.8% 9.3% 11.7% 12.2% 10.1% 8.1% 12.2% 14.5%
Yandex Web Search 72,496 72,582 77,792 79,909 81,120 79,176 81,861 81,600 82,089 82,221 80,726 78,851 79,541
Y/Y Change 19.8% 15.8% 22.2% 22.1% 20.8% 20.9% 19.2% 18.9% 18.9% 19.8% 15.0% 10.9% 9.7%
Yandex Maps 33,062 33,556 37,946 38,635 36,846 33,685 35,459 33,425 33,405 31,012 30,480 28,349 25,715
Y/Y Change 61.4% 52.3% 66.9% 55.7% 40.8% 27.0% 21.1% 10.1% 7.9% 1.0% (6.0%) (13.1%) (22.2%)
Yandex News 18,721 19,308 21,680 22,410 22,963 25,845 28,733 24,610 24,991 23,808 25,058 23,741 22,821
Y/Y Change 3.6% 0.4% 13.3% 11.3% 15.9% 31.4% 34.3% 24.5% 21.6% 27.0% 32.7% 26.1% 21.9%
Yandex Mail 38,811 39,764 45,151 42,238 38,679 36,342 36,986 29,882 29,617 25,542 25,033 22,894 22,391
Yandex Market 18,247 18,426 20,490 21,830 20,751 19,092 19,239 17,816 15,187 14,575 15,052 15,534 17,080
Yandex Music 18,600 19,538 24,816 26,727 22,773 20,503 21,164 20,089 20,800 18,161 17,062 14,917 13,310
Yandex J obs 4,341 4,544 5,442 4,401 5,573 5,544 5,610 4,991 4,322 4,674 4,472 4,451 4,732
Yandex Realty 1,902 2,015 2,391 1,905 2,515 2,292 2,479 2,187 2,008 2,058 1,901 2,051 1,854
Yandex City NM NM NM NM NM NM NM NM NM NM NM 372 NM
Yandex Taxi 63 72 175 118 72 77 93 87 119 168 112 85 137
Kino Poisk 17,946 19,274 21,497 22,569 27,569 21,569 22,090 19,785 19,219 18,377 18,533 17,768 16,719
Yandex Search Share in Russia 62.2% 61.8% 61.9% 61.9% 61.7% 61.9% 62.1% 62.0% 61.7% 61.1% 60.5% 60.2% 60.1%
Yandex Browser Share in Russia 5.6% 5.9% 6.1% 6.4% 6.7% 6.8% 6.9% 6.8% 6.8% 6.7% 6.6% 6.6% 6.8%


8

\

Zillow Sep-13 Oct-13 Nov-13
Zillow Unique Visitors (000s) - Internal Analytics 58,380 58,093 52,769 52,211 69,894 65,558 76,552 78,848 81,486 82,989 88,836 86,293 82,808
Y/Y Change 67.0% 61.9% 59.8% 50.5% 52.3% 49.8% 52.2% 50.3% 48.6% 49.0% 44.9% 35.5% 41.8%
M/MChange (8.3%) (0.5%) (9.2%) (1.1%) 33.9% (6.2%) 16.8% 3.0% 3.3% 1.8% 7.0% (2.9%) (4.0%)
Yahoo - Zillow RE Network (000s), Global, Desktop - comScore 32,050 33,875 29,879 30,151 33,507 27,204 34,976 34,275 33,487 30,946 33,457 32,688 31,093
Y/Y Change 32.5% 39.6% 30.8% 31.5% 16.6% 1.4% 16.8% 7.7% 3.3% (4.3%) (4.1%) (5.2%) (3.0%)
Yahoo - Zillow RE Network (000s), US, Mobile - comScore 17,709 17,199 17,133 17,239 20,504 19,485 27,886 30,731 30,628 31,232 33,097 34,049 31,494
Y/Y Change 224.7% 246.8% 291.6% 205.4% 260.0% 77.1% 138.6% 140.9% 101.6% 96.2% 82.7% 83.2% 77.8%
Trulia - RentPath Network (000s), Global, Desktop - comScore 17,701 17,457 15,414 15,266 17,834 15,969 18,912 18,079 18,482 17,825 17,775 17,698 16,686
Y/Y Change 43.2% 33.7% 25.2% 5.1% (5.1%) (9.8%) (0.1%) (4.1%) (4.0%) (6.5%) (10.6%) (8.1%) (5.7%)
Trulia - RentPath Network (000s), US, Mobile - comScore 10,588 9,667 9,848 9,826 12,041 12,095 13,674 10,902 16,819 17,575 22,343 21,165 19,236
Y/Y Change 221.2% 386.8% 226.0% 125.9% 141.2% 69.5% 92.6% 51.1% 90.0% 61.7% 95.8% 82.2% 81.7%
Zillow Unique Visitors (000s) - Qtly Avg - Internal Analytics 61,118 54,358 70,668 81,108 85,979
Y/Y Change 69.3% 57.4% 51.5% 49.3% 40.7%
Trulia Unique Visitors (000s) - Qtly Avg - Internal Analytics 41,500 35,300 44,600 51,600
Y/Y Change 66.7% 49.6% 42.0% 47.9%
Move Unique Visitors (000s) - Qtly Avg - Internal Analytics 28,322 23,942 30,792 33,056
Y/Y Change 21.6% 12.7% 9.7% 14.9%
US Existing Homes Sales, MM 5.26 5.13 4.83 4.87 4.62 4.60 4.59 4.66 4.91 5.03 5.14 5.05 5.17
Y/Y Change 10.5% 6.2% (2.6%) (0.2%) (5.1%) (7.1%) (7.5%) (6.6%) (4.7%) (2.5%) (4.5%) (5.3%) (1.7%)
S&P/Case-Shiller Price Index 165.6 165.9 165.8 165.6 165.4 165.4 166.8 168.7 170.7 172.3 173.3 173.7
Y/Y Change 13.3% 13.6% 13.7% 13.4% 13.2% 12.9% 12.4% 10.8% 9.4% 8.1% 6.7% 5.6%
zulily
zulily (000s), Global, Desktop - comScore 4,588 5,755 6,943 5,190 6,798 6,973 6,627 6,635 6,165 7,140 11,612 9,864 8,405
Y/Y Change 38.3% 48.1% 107.2% 74.6% 35.5% 51.3% 26.8% 37.7% 50.7% 51.7% 125.3% 62.3% 83.2%
Zynga Sep-13 Oct-13 Nov-13 Dec-13
Unique Visitors (000s), WW, Desktop - comScore 28,029 26,959 32,011 32,629 33,204 30,499 29,192 28,860 26,932 25,635 24,731 22,421 19,688
Y/Y Change (21.4%) (34.7%) (48.3%) (34.1%) (38.6%) (38.7%) (44.5%) (44.4%) (36.1%) (27.4%) (14.0%) (16.5%) (29.8%)
Y/Y Change (20.0%) (22.1%) (24.4%) (17.9%) (10.4%) (17.4%) (20.3%) (15.6%) (0.4%) (6.1%) (8.0%) (3.1%) 4.3%
Mobile Game Index, U.S.
iOS iPhone Index 523 528 301 391 269 271 396 521 640 532 508 546 648
iOS iPad Index 505 503 502 577 611 606 680 753 725 707 613 655 651
Android Index 335 482 453 460 398 398 460 521 681 722 423 713 814
Total 1,363 1,513 1,256 1,428 1,278 1,275 1,535 1,795 2,046 1,961 1,544 1,914 2,113
Sequential Change -10.5% 11.0% -17.0% 13.7% -10.5% -0.2% 20.4% 16.9% 14.0% -4.2% -21.3% 24.0% 10.4%
FX Movements
USD/GBP - Monthly Average 1.59 1.61 1.61 1.64 1.65 1.66 1.66 1.67 1.68 1.71 1.69 1.66 1.62
Y/Y Change (1.8%) 0.1% 0.9% 1.5% 3.1% 7.1% 10.2% 9.4% 10.2% 10.4% 11.2% 7.0% 2.1%
USD/EUR - Monthly Average 1.34 1.36 1.35 1.37 1.36 1.37 1.38 1.38 1.37 1.37 1.34 1.31 1.26
Y/Y Change 3.6% 5.2% 5.1% 4.4% 2.4% 2.5% 6.7% 6.0% 5.8% 3.7% 2.3% (1.4%) (5.5%)


9

Implications for Covered Stocks
Amazon (AMZN : NASDAQ : $295.59 | HOLD)
Quant (-) Our quant read on AMZN stayed negative this month as downward
estimate revisions and low short interest were only partially offset by projected
growth acceleration.
Metrics (=) Channel Advisors estimate for Amazons same-store sales for the month
of September came in at 37.9% y/y growth, representing a 7.2 percentage point
deceleration from 45.1% y/y growth reported for August.
Channel Advisor Q3/14 data suggested 41.1% y/y growth compared to 29.8%
average growth in Q2/14. This represented acceleration of about 11.3 percentage
points while Amazon reported a 3.0 percentage point deceleration in Amazon
Marketplace (Media plus EGM) revenue growth in Q3/14.
Global desktop unique visitor traffic to Amazon.com declined 7.9% y/y in September
compared to a decline of 7.7% and 7.9% y/y in August and July.
U.S. mobile unique visitor traffic grew 18.2% y/y in September, accelerating from
16.1% and 15.6% in August and July.

Figure 5: Comparison of trends (Amazons Marketplace revenue vs. Channel Advisor data)

AMZN Mar' 11 Jun '11 Sep '11 Dec '11 Mar' 12 Jun '12 Sep '12 Dec '12 Mar '13 Jun '13 Sep '13 Dec '13 Mar '14 Jun '14 Sep '14
Amazon Marketpl ace Revenue Growth (CG est-s) 37.5% 50.1% 43.0% 34.0% 32.9% 28.5% 25.7% 20.8% 20.4% 20.6% 22.2% 19.1% 21.0% 22.3% 19.4%
Y/Y Accel/(Decel) compared to last quarter 1.5% 12.7% (7.1%) (9.0%) (1.1%) (4.4%) (2.8%) (4.8%) (0.4%) 0.2% 1.6% (3.1%) 1.9% 1.3% (3.0%)
Y/Y Accel/(Decel) compared to year-ago quarter 9.1% 4.5% (1.9%) (4.6%) (21.6%) (17.3%) (13.2%) (12.5%) (7.9%) (3.5%) (1.7%) 0.6% 1.7% (2.8%)
CA SSS Growth (Amazon) 76.4% 79.2% 72.1% 64.0% 50.5% 47.6% 40.4% 38.5% 32.2% 29.0% 25.1% 21.3% 21.1% 29.8% 41.1%
Y/Y Accel/(Decel) compared to last quarter 18.2% 2.8% (7.2%) (8.1%) (13.5%) (2.9%) (7.2%) (1.9%) (6.3%) (3.2%) (3.9%) (3.8%) (0.2%) 8.7% 11.3%
Y/Y Accel/(Decel) compared to year-ago quarter 1.8% 11.2% 15.4% 5.8% (25.9%) (31.6%) (31.6%) (25.5%) (18.3%) (18.6%) (15.3%) (17.2%) (11.1%) 0.8% 16.0%

Source: Company reports, Channel Advisor, Canaccord Genuity estimates

Sentiment (-) Amazon stock is down around 10% over the past month, in part
reflecting weaker than expected Q3 results and Q4 guidance. Operating income
guidance for Q4 reflected the ongoing scheme of managing the business to a break-
even level, and this is bearish relative to consensus expectations of margin
expansion. Last quarter, AWS price cuts emerged as a revenue headwind, and that
was exacerbated this quarter by the outlook for media growth, as mix shift to rentals
curbed revenue. Management slightly softened the spending mindset exhibited on
the Q2 call by describing its investment decisions as being judicious and selective.
We continue to like Amazons prospects over the long term, while difficulty in
predicting investor sentiment around fairly predictable (and low) margins leaves us
at a HOLD rating for now.

10

Borderfree (BRDR : NASDAQ : $10.91 | BUY)
Quant (+) Our quant read on BRDR remained positive reflecting projected growth
acceleration, upward estimate revisions, and high short interest which are partially
offset by an expensive valuation and negative price momentum.
Metrics (=) We currently do not track any metrics for Borderfree.
Sentiment (-) Borderfree stock is down nearly 25% over the past month. We note
that Q3 and Q4 guidance implies significant e-commerce revenue acceleration. Other
companies reporting so far in Q3 have seen currency-related headwinds, and we
believe there is a chance of a modest impact to Borderfrees Q3 results. The last
quarter showed strong efficiency gains that led to lower shipping and fulfillment
expenses (and therefore lower fulfillment revenue, which, as a pass-through
expense, carries practically no profit margin), and this appeared to bolster shopping
cart completion rates and e-commerce revenue for the company. The company has
referenced free or flat rate shipping offers as a key factor in continuing to improve
shopping cart completion, and whether or not merchants are embracing this
philosophy will likely impact on short term results. Longer term, we think Borderfree
stock should continue to slowly gain sponsorship as investors come to appreciate the
long-term growth runway and the likelihood that further fulfillment efficiency gains
can boost the growth rate for e-commerce revenue.
eBay (EBAY : NASDAQ : $51.20 | HOLD)
Quant (-) Our quant model on eBay turned negative from neutral as decreasing short
interest and projected growth deceleration are partially offset by positive price
momentum (relative to peers) and a reasonable valuation.
Metrics (-) Channel Advisors estimate for eBays same-store sales for the month of
September came in at 8.9% y/y growth, representing a 3.0 percentage point
acceleration from 5.9% y/y growth reported in August. eBay fixed price grew 7.6%
y/y, accelerating from 6.9% y/y in August. eBay Auction SSS fell 4.1% y/y, from an
11.0% y/y decline reported last month. eBay Motors growth accelerated in
September to 14.7% from 8.4% in August.
Channel Advisor Q3/14 data suggested 8.2% y/y growth compared to 12.6% average
y/y growth in Q2/14, represents a deceleration of 4.4 percentage points sequential
deceleration, which is more bearish compared to a 2.3 percentage point deceleration
in eBay Marketplace revenue growth reported in Q3.
Global desktop unique visitor traffic to eBay declined 5.4% y/y in September,
compared to 5.7% and 8.7% in August and July.
U.S. mobile unique visitor traffic grew 40.1% y/y in September, compared to 36.6%
and 36.7% in August and July.

11


Figure 6: Comparison of trends (EBAYs GMV and Marketplace growth vs. Channel Advisor data)

EBAY Mar' 11 Jun '11 Sep '11 Dec '11 Mar' 12 Jun '12 Sep '12 Dec '12 Mar '13 Jun '13 Sep '13 Dec '13 Mar '14 Jun '14 Sep '14
eBay GMV Growth (CG est-s/reported numbers) 7.5% 14.9% 14.0% 8.2% 12.0% 10.0% 11.0% 16.0% 13.1% 13.1% 12.0% 12.6% 12.2% 12.1% 9.4%
Y/Y Accel/(Decel) compared to last quarter 3.6% 7.4% (0.9%) (5.8%) 3.8% (2.0%) 1.0% 5.0% (2.9%) 0.0% (1.1%) 0.6% (0.4%) (0.1%) (2.7%)
Y/Y Accel/(Decel) compared to year-ago quarter 5.3% 12.8% 4.4% 4.5% (4.9%) (3.0%) 7.8% 1.1% 3.1% 1.0% (3.4%) (0.9%) (1.1%) (2.6%)
eBay Marketplace Revenue Growth 12.0% 19.0% 17.1% 16.3% 11.2% 9.1% 9.3% 15.7% 13.3% 10.3% 12.2% 12.1% 10.1% 8.6% 6.4%
Y/Y Accel/(Decel) compared to last quarter 7.8% 7.0% (1.8%) (0.8%) (5.0%) (2.2%) 0.2% 6.4% (2.4%) (2.9%) 1.9% (0.1%) (2.0%) (1.5%) (2.3%)
Y/Y Accel/(Decel) compared to year-ago quarter 7.9% 13.7% 12.1% (0.8%) (9.9%) (7.9%) (0.6%) 2.0% 1.3% 3.0% (3.5%) (3.1%) (1.7%) (5.9%)
CA SSS Growth (eBay) 4.9% 12.7% 16.7% 19.4% 20.4% 21.6% 24.5% 25.6% 15.4% 18.1% 18.9% 11.6% 15.5% 12.6% 8.2%
Y/Y Accel/(Decel) compared to last quarter 1.0% 7.8% 4.0% 2.7% 1.0% 1.2% 2.8% 1.1% (10.2%) 2.7% 0.8% (7.3%) 3.9% (2.9%) (4.4%)
Y/Y Accel/(Decel) compared to year-ago quarter 0.6% 15.8% 16.5% 15.4% 15.5% 8.9% 7.8% 6.2% (5.0%) (3.6%) (5.6%) (14.0%) 0.1% (5.5%) (10.7%)

Source: Company reports, Channel Advisor, Canaccord Genuity estimates

Sentiment (=) eBay stock is down around 3.3% over the past month, and down
around 6.7% YTD. Our HOLD rating, subsequent to the PayPal separation
announcement, reflects little stock upside from our sum-of-the-parts analysis.
Meanwhile, the company posted mostly in-line Q3 results, marked by solid PayPal
performance and continued GMV growth deceleration in Marketplaces. Several
headwinds are impacting Marketplaces, including continued traffic challenges due to
Google changes, and ongoing friction from the security breach earlier this year. We
continue to believe marketplaces growth may struggle in the near term, and heavier
marketing spend might be required to reinvigorate growth for this segment. We note
there is considerable chatter amongst investors as to possible suitors for both eBay
and PayPal assets, with Alibaba being mentioned most frequently as a possible buyer
for eBay/Marketplaces. With several e-commerce IPOs recently, there is now more
merchandise for large cap growth managers to consider within the space, and this
may serve to soften the demand environment for eBay stock.
Facebook (FB : NASDAQ : $80.77 | BUY)
Quant (+) Our quant model on FB remained positive this month as positive price
momentum, upward estimate revisions, and projected growth acceleration were only
partially offset by an expensive valuation and low short interest.
Metrics (=) Global desktop unique visitor traffic to Facebook fell 2.5% y/y in
September, compared to 3.8% and 5.1% y/y growth in August and July.
U.S. mobile unique visitor traffic sequential growth was 0.2% in September, a
deceleration from 0.4% and 2.6% y/y growth in August and July.
Sentiment (=) Facebook shares are up 2% over the past month, although may be
down on the day of publishing this report after the company reported Q3 earnings.
The Q3 results were characterized by solid user and monetization momentum. In an
unusual move, management provided additional guidance details. Q4 revenue is
expected to be slightly below consensus, and 2015 expenses are expected to grow
between 50-70%, implying substantial investments and margin compression next
year. Facebook has remained a consensus long in the sector on the basis of revenue
momentum, and with most business metrics healthy and the likelihood that 2015
will be a good year for the top line, we believe investor interest in the stock is likely
to remain high despite this near-term dislocation in expectations.

12

Glu Mobile (GLUU : NASDAQ : $4.60 | BUY)
Quant (+) Quant read on Glu Mobile stayed positive this month as upward estimate
revisions, projected growth acceleration, positive price momentum, and a
reasonable valuation are only partially offset by decreasing short interest.
Metrics (+) Our proprietary tracking of Glu Mobile games suggests that the ranking of
games on iOS and Android platforms fell sequentially around 14% to 1,519 in mid-
October from a month ago. Performance for Kim Kardashian: Hollywood improved
from the already high rankings in the prior month due to a major 2.0 update in
October that added functionality. Deer Hunter 2014 also improved its rankings and
Cie Games Racing Rivals held up in the rankings. Though some other games fell out
of the ranking in October leading to sequential declines, a quarterly gain of 112%
points to the success of new organic and acquired game releases.
We note that our gaming index accounts only for U.S. games that are grossing in the
top 200, and doesnt take into account any games below 200 (which can be
monetized at healthy levels as well).
Below is a snapshot of Kim Kardashian: Hollywood (launched on June 25, updated on
October 2) ranked 5, 34, and 19 on iPhone, iPad, and Android in the US per our latest
check (10/28).

Figure 7: Kim Kardashian: Hollywood, US gross ranks performance since launch, iPhone (left) and iPad (right)

Source: AppAnnie

Below is a snapshot of Deer Hunter 2014 performance on iPhone and iPad in the U.S.
Although the game continued showing deceleration, it was still ranking 40, 79, and 58
on iPhone, iPad, and Android per our latest check (10/28).
13


Figure 8: Deer Hunter 2014, US gross ranks performance YTD, iPhone (left) and iPad (right)

Source: AppAnnie

Racing Rivals (developed by Cie Games, which was acquired on August 21st) ranked
35, 175, and 26 on iPhone, iPad, and Android per our latest check (10/28).
Sentiment (-) Glu stock is down ~18% over the past month, after a stable month in
September. Fundamentally, near-term bookings is being primarily influenced by the
pace of decay in DH14, the continued strong performance of KK, and the steady,
solid performance from recently acquired Racing Rivals. Most investors seemed duly
impressed with the eye-popping bookings guidance for Q3 while the implied decline
in Q4 left some of this same group hoping that Glus evolution to a reliable,
repeatable platform was complete enough that management would feel more
confidence regarding Glus ability to grow in Q4. In addition, the gross margin
guidance implied a higher royalty on KK than some were expecting, dampening
some of the enthusiasm from that game. We continue to think Glu has a lot of things
going right currently, and expect solid bookings relative to guidance in Q3. For Q4,
we note that our estimates reflect what feels like conservative guidance, given the
game data we are seeing.
Google (GOOG : NASDAQ : $548.90 | BUY)
Quant (-) Our quant model turned negative from positive this month as negative
price momentum, downward estimate revisions, and decreasing short interest are
only partially offset by projected growth acceleration.
Metrics (=) Googles metrics were stable in September:
o Global desktop unique visitor traffic to Google Sites was flat in September,
compared to 0.3% and 2.0% y/y growth in August and July.
o U.S. mobile unique visitor traffic to Google Sites was 30.0% y/y in September, in
line with 29.9% y/y growth in August and July.
14

o Googles share of core search was flat at 67.3% in September from 67.3% and
67.4% in August and July. The number of search queries declined 3.4% y/y and
0.3% m/m, slightly better than the overall U.S. search query decline of 3.9% y/y
and 0.2% m/m.

Figure 9: Explicit core search query share

Explicit Core Search Queries, mm Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 % m/m % y/y
Google Sites 12,477 12,934 12,095 12,299 13,220 11,941 13,067 12,576 12,501 12,050 12,120 12,081 12,048 -0.3% -3.4%
Microsoft Sites 3,350 3,495 3,285 3,327 3,587 3,257 3,594 3,475 3,485 3,420 3,470 3,484 3,484 0.0% 4.0%
Yahoo Sites 2,101 2,151 2,027 1,969 2,025 1,822 1,960 1,857 1,845 1,747 1,804 1,801 1,793 -0.4% -14.7%
Ask Network 474 499 464 452 477 431 478 445 423 378 362 360 359 -0.3% -24.3%
AOL 249 260 253 234 253 235 259 243 241 231 232 231 230 -0.4% -7.6%
Total Explicit Core Search 18,650 19,339 18,124 18,281 19,561 17,687 19,358 18,597 18,495 17,826 17,988 17,957 17,914 -0.2% -3.9%
Explicit Core Search Share (%) Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 % m/m % y/y
Google Sites 66.9% 66.9% 66.7% 67.3% 67.6% 67.5% 67.5% 67.6% 67.6% 67.6% 67.4% 67.3% 67.3% 0.0% 0.4%
Microsoft Sites 18.0% 18.1% 18.1% 18.2% 18.3% 18.4% 18.6% 18.7% 18.8% 19.2% 19.3% 19.4% 19.4% 0.0% 1.5%
Yahoo Sites 11.3% 11.1% 11.2% 10.8% 10.4% 10.3% 10.1% 10.0% 10.0% 9.8% 10.0% 10.0% 10.0% 0.0% -1.3%
Ask Network 2.5% 2.6% 2.6% 2.5% 2.4% 2.4% 2.5% 2.4% 2.3% 2.1% 2.0% 2.0% 2.0% 0.0% -0.5%
AOL 1.3% 1.3% 1.4% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 1.3% 0.0% -0.1%
Total Explicit Core Search 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: comScore

Sentiment (=) Google stock is down 6.5% this month, reflecting Q3 results, that
slightly missed consensus. Despite that, core O&O sites revenue continues to show
solid results of 20% y/y growth. We believe the key number this quarter (as in Q2)
was ~20% for Web sites revenue growth, which provides the foundation for our BUY
thesis: 1) ~20% revenue growth with potential for slight operating leverage (although
we are not seeing it currently); 2) undemanding valuation; 3) sale of MMI creates
margin expansion that should help the stock screen well; 4) still largely-
undiscounted potential from YouTube, mobile ad pricing reaching (higher) maturity,
and other adjacent businesses.
GrubHub (GRUB : NYSE : $36.24 | BUY)
Quant (+) Our quant read on GRUB remained positive this month as positive price
momentum, projected growth acceleration, upward estimate revisions, and
increasing short interest are only partially offset by an expensive valuation.
Metrics (=) GrubHub.com desktop traffic fell 23.8% y/y in September compared to
52.3% and 78.0% y/y growth in August and July. Total desktop traffic to the
GrubHub Seamless platform declined 19.2% sequentially in September.
Seamless.com desktop traffic declined 9.6% y/y in September, compared to 20.5%
and 44.4% y/y declines in August and July. We note that this dataset doesnt include
mobile, which is likely growing much faster.
Sentiment (+) GRUB stock is up 5% over the past month, although a strong set of
results failed to drive the stock higher. GrubHubs Q3 results were impressive, with
nearly every metric ahead of our estimates. The company added nearly twice as
many active diners as we had estimated, and the take rate expanded again.
Importantly, GrubHub showed impressive incremental operating leverage as well.
With the increased Q4 marketing spend to build brand awareness and to attract
more active diners to the GrubHub platform in a seasonally strong Q4-Q1 period, we
continue to believe GrubHub is very early in attacking the $67 billion takeout and
delivery market in the U.S. We think that consensus estimates for the next couple of
15

years still reflect a level of conservatism, and we believe the company is likely to
deliver a long period of stable, rapid growth.
HomeAway (AWAY : NASDAQ : $34.63 | HOLD)
Quant (=) Our quant model remained neutral this month as positive price
momentum, projected growth acceleration, and increasing short interest are partly
offset by an expensive valuation and downward estimate revisions.
Metrics (+) Traffic to HomeAway sites grew 40.8% y/y in September, accelerating
from 36.8% and 39.1% y/y growth in August and July.
The combined number of listings on the largest sites grew 1.7% sequentially as of
mid-October and was up ~49% y/y, with the number of listings standing at
2,596,462. The number of listings on homeaway.com, VRBO.com, and Abritel grew
sequentially 1.4%, 1.6%, and 2.1%. We note that due to recent bundling initiatives,
the number of paid listings we are tracking is likely overstating the actual paid
listings the company reports.
Sentiment (=) AWAY stock is up around 2% over the past month, although it is still
down ~16% YTD. Most of the positive move can be attributable to a potentially
exciting deal with Expedia that seeks to present Expedia users searching for
accommodations with rental listings from HomeAway. We believe this could have a
positive impact on visitors, although the revenue impact is less certain as the
revenue split between the two companies was not disclosed. We continue to believe
sentiment is revolving around three primary topics: 1) the impact of trying to
integrate PPB listings with subscription listings and what this might mean for
renewal rates, marketing spending and the margin outlook; 2) the momentum within
the tiered pricing structure and the long runway for ARPL expansion; and, 3)
whether the competitive landscape will intensify. Some investors have expressed the
view that the stocks fairly premium multiple reflects a perception that the company
has a recurring revenue subscription model and operates within a benign
competitive framework, and that PPB growth and potential competitors have the
ability to alter that perception. Overall, however, we find sentiment balanced.
LinkedIn (LNKD : NASDAQ : $205.35 | BUY)
Quant (+) Our quant model turned positive from negative this month as upward
estimate revisions, projected growth acceleration, and increasing short interest are
only partially offset by negative price momentum and an expensive valuation.
Metrics (+) Global desktop traffic to LinkedIn.com grew 2.2% y/y in September,
compared to 2.3% and 4.5% y/y declines in August and July. Mobile U.S. traffic
growth was solid at 183% y/y growth, compared to 233% and 188% y/y growth in
August and July. The number of global job postings on LinkedIn increased ~46%
sequentially as of mid-October, and stood at ~1.8 million, up from ~1.2 million in
mid-September.
We note that the number of job postings in June grew 140% sequentially to ~847k
jobs from ~353k jobs in May, due to the company beginning to include postings from
other sites.
16

Sentiment (-) LNKD stock is down ~6.0% over the past month, underperforming the
large-cap Internet group, which was down ~4.9% last month. The stock has been
volatile over the past few months. We believe fundamentals in LinkedIns core Talent
Solutions business are solid, and find our estimates for that business reasonable but
not overly conservative. Factoring in potential upside from continued sponsored
content, we find our estimates for Marketing Solutions conservative, even in the near
term. However, at only ~20% of revenue, upside in this segment only partially moves
the needle. Coupled with these, conservative assumptions for Sales Navigator
adoption seem to support modest upside to our revenue and EPS outlook and
support give us confidence in the ~15% return reflected in our price target. That
said, we believe material upside beyond this level will require a greater adoption of
Sales Solutions products, which may not be evident until later in 2015.
Millennial Media (MM : NYSE : $1.94 | HOLD)
Quant (+) Our quant model remained positive this month as positive price
momentum, high short interest, and a reasonable valuation are only partially offset
by downward estimate revisions.
Metrics (=) We currently do not track any metrics for MM.
Sentiment (-) Millennial stock is down another 4% over the past month, after over
20% decline during the prior months, and continuing its momentum downward for a
decline of ~74% YTD. We believe the company is largely in re-building mode, and
believe investors are curious to see what might develop from the companys recently
announced acquisition of Nexage for $108 million.
Pandora (P : NYSE : $19.74 | BUY)
Quant (+) Our quant model on P remained positive this month as projected growth
acceleration, upward estimate revisions, and increasing short interest are only
partially offset by negative price momentum and an expensive valuation.
Metrics (=) Pandoras desktop traffic declined 6.6% y/y in September, slightly
improving after 10.8% and 15.9% y/y declines in August and July.
Pandoras U.S. mobile traffic growth decelerated to 10.3% y/y in September from
28.2% and 41.9% y/y growth in August and July. The mobile split of unique visitors
between iPhone, iPad and Android Phone stood at 48%, 12%, and 40%.
We note that Pandora discontinued releasing monthly listener metrics in June.
Sentiment (-) Pandora stock is down nearly 20% over the past month including a
13% sell-off following another in line quarter. Pandoras Q3 results were marked by
in line revenue performance (total revenue beat by less than 1%; ad revenue missed
by less than 1%) and a very slight miss on active listener growth (Pandora added 0.1
million in Q3 relative to consensus at 0.2). The prevailing sentiment seems to be that
Pandoras valuation is expensive, and therefore earnings upside is necessary to
support it. This has proved dangerous when dealing with a CFO who has a history of
hitting guidance closely and who has recently commented that revenue visibility is
sufficiently high that upside to guidance is unlikely. We also believe the stock is
attractively valued on our base case earnings forecast, suggesting that the growth
generated from inline results should help the stock perform better going forward.
Content costs are also looming large, with initial submissions by parties to the CRB
17

rate setting process causing volatility. We are still comfortable with the likelihood of
a benign outcome for Pandoras content costs next year, and continue to believe the
company is early in capitalizing on a large market opportunity.
Spark Networks (LOV : NYSE : $4.14 | HOLD)
Quant (+) Our quant model turned positive from neutral this month reflecting
upward estimate revisions, positive price momentum, high short interest, and a
reasonable valuation.
Metrics (-) September unique visitor traffic to Spark Networks sites declined 60.3%
y/y, compared to 43.1% and 34.4% y/y declines in August and July. Traffic to
ChristianMingle.com declined 73.9% y/y, while traffic to JDate declined 38.7% y/y.
We note that there might be some volatility in the numbers due to a small sample
size.
Sentiment (-) Spark stock is down ~11% over the past month, with the shares down
over 30% YTD. The company has a new board, management team, and possibly a
new strategy, and we believe investor interest is likely to be low until more thoughts
are shared regarding strategic plans.
Tremor Video (TRMR : NYSE : $2.21 | HOLD)
Quant (+) Our quant model remained positive this month reflecting increasing short
interest, positive price momentum, upward estimate revisions, and an attractive
valuation.
Metrics (=) We currently dont track any company-specific metrics for Tremor Video.
According to comScore, the number of total online unique video viewers in the U.S.
grew 1.8% y/y to 192.2 million in September, compared to 4.2% and 1.5% y/y
growth in August and July.
Sentiment (-) Tremor stock was down ~17% over the past month, bringing it to a
decline of around 64% for the year. Business trends remain mixed. Revenue
performance was solid in Q2, but gross margins showed weakness. Overall, we find
investors are generally shunning ad tech at the moment, and in Tremors case are
focused on the potential for new product releases later this year to reinvigorate
growth in 2015. We note that the stock price decline has led to a very undemanding
valuation.
Trupanion (TRUP : NYSE : $7.18 | BUY)
Quant (+) Our quant read on TRUP this month turned positive from neutral reflecting
increasing short interest, positive price momentum, and a reasonable valuation.
Metrics (=) Unique visitors to Trupanion.com grew 79.9% y/y to 45K unique visitors
in September compared to 224% y/y growth in July at ~77K. Audience metrics were
too small to measure in August.
We note that there might be some volatility in the numbers due to a small sample
size. Long-term trends may be interrupted by not meeting reporting standards in
minimum traffic going forward.
18

Sentiment (-) Trupanion stock is down nearly 20% over the past month, and down
around 30% since its IPO in mid-July. We believe the stock is going through a post-
IPO seasoning process that may take some months to develop. That said, Q2 results
were strong, with perhaps the key take-away being that pet ARPU returned to ~5%
y/y growth from the 1-2% level it had been running at for the last several quarters.
We believe investors will likely gradually come to embrace Trupanions steady
growth, recurring subscription-based revenue model.
Twitter (TWTR : NYSE : $43.78 | BUY)
Quant (=) Our quant model on Twitter turned neutral from positive this month as
negative price momentum, and an expensive valuation are partially offset by upward
estimate revisions and projected growth acceleration.
Metrics (=) Global desktop unique visitor traffic to Twitter fell 4.4% y/y in September,
compared to growth of 7.0% and 17.7% y/y in August and July.
U.S. mobile unique visitor traffic declined 37.1% sequentially in September due to a
change in measurement. Twitter now distinguishes between actual visitors and
syndicated traffic (Twitter content served off-site via embedded Tweets) which
ComScore now only counts if the user clicks through to Twitter.com. Using
readjusted historical metrics shows Twitter falling only 3.5% sequentially in
September.
Sentiment (-) Twitter stock is down 16% over the past month, including a nearly 10%
single-day decline following mixed Q3 results. While revenue and EBITDA
performance in Q3 was solid and management raised revenue guidance for Q4, this
guidance was still below consensus and implied a significant deceleration in both
revenue and MAUs. Twitters evolution will likely be bumpy, but the platform should
continue to become more mainstream. Slowing user growth is a challenge, but we
believe the company has levers to pull to fight back, including tilting the user
discussion towards unique visitors and away from MAUs (with the logic that a visitor
can (and does) still generate ad impressions without being signed into a Twitter
account. Meanwhile, our continued positive stance is based largely on the
engagement and monetization momentum we expect over the next few quarters.
Wayfair (W : NYSE : $25.69 | BUY)
Quant (=) Our quant model on Wayfair is neutral this month reflecting a reasonable
valuation.
Metrics (+) Global desktop unique visitor traffic to Wayfair.com grew 43.7% y/y in
September, accelerating from 43.3% and 31.7% y/y growth in August and July.
Traffic to Joss & Main grew 23.7% y/y in September, decelerating from 33.8% and
35.9% y/y growth in August and July. Traffic to AllModern.com grew 52.8% y/y in
September, accelerating from 47.8% y/y in August but decelerating from 67.7% y/y
in July.
Sentiment (+) We recently initiated on Wayfair with a BUY recommendation and $34
price target. We believe Wayfair had established a leading position in the online
market for furniture and home goods. With a large addressable market ($233 billion
in the US and estimated to reach $300 billion over the next 10 years) and low online
penetration (currently at 7% and is expected to reach 15% over the next decade), we
19

are foreseeing both growing TAM, and expending market share for Wayfair. The
Wayfair platform resonates well with users as the company offers a vast product
selection (~7 million products from 7,000 suppliers), visually compelling and
reassuring user interface, fast and free (on orders over $49) shipping, and easy
returns. On the other side of the spectrum, Wayfairs technological and logistic
capabilities create value for its 7,000 vendors, many of which are small businesses.
Wayfairs solutions add value in key areas such as ability to offer full inventory,
supply-chain input, real-time demand analytics, and superior logistics capabilities.
Additionally, a reasonable valuation supports our positive stance on the stock,
although we note that the IPO seasoning process may contribute to volatility in the
near term.
Yandex (YNDX: NASDAQ : $28.58 | BUY)
Quants (+) Our quant model on Yandex remains positive this month as positive price
momentum, projected growth acceleration, and a reasonable valuation are only
partially offset by decreasing short interest.
Metrics (+) Traffic to Yandex websites accelerated in September to 14.5% y/y
growth, compared to 12.2% and 8.1% y/y growth in August and July. Yandex Web
Search traffic growth decelerated to 9.7% y/y from 10.9% and 15.0% in August and
July. We note that these are desktop only numbers, and mobile traffic is likely
growing much faster.
Yandex share of search queries in Russia declined slightly to 60.1% in September
from 60.2% and 60.5% in August and July. Yandex Browser share grew to 6.8% in
September from at 6.6% in August and July.
Sentiment (=) Yandex stock is down around 7.5% over the past month, mostly
reflecting currency depreciation (as the Ruble weakened by ~7.5% over the past 30
days), although the shares are up more than 7.0% over the past several days after
the company reported solid Q3 results. The two core numbers this quarter were: 1)
revenue growth acceleration for Yandex O&O sites, which was 33% y/y, up from 27%
and 26% y/y growth in Q2 and Q1, as Search continues to gain share of advertising
budgets in Russia against the backdrop of a volatile economic and political
environment; and 2) Traffic Acquisition Cost (TAC), which declined as % of revenue
driven both by mix-shift (reflecting faster growth within the lower-TAC segment), as
well as underlying positive TAC dynamics. With several technology updates launched
earlier this year, and a few more underway, the implied Q4 guidance appears
conservative. We continue to believe Yandex will be able to sustain attractive growth
rates for the next several years, and think the stock will reflect this growth over time.
Zillow (Z : NASDAQ : $107.18 | BUY)
Quants (+) Our quant model remains positive this month as positive price
momentum, upward estimate revisions, projected growth acceleration, and high
short interest are only partially offset by an expensive valuation.
Metrics (+) Traffic to Zillow websites continued to show solid trends in September
growing at 41.8% y/y, accelerating from 35.5% y/y growth in August but down from
44.9% y/y growth in July.
20

According to ComScore, global desktop traffic on Yahoo Zillow Real Estate Network
declined 3.0% y/y, compared to 5.2% and 4.1% y/y declines in August and July.
US mobile traffic to Yahoo Zillow Real Estate Network decelerated to 77.8% y/y in
September from 83.2% and 82.7% y/y in August and July.
Sentiment (=) Zillow stock is down ~13% over the past month but still up an
impressive ~30% YTD, as investors have apparently adopted the viewpoint that 2014
should be a year when the online real estate category accelerates in terms of Agent
adoption. With approximately half of the stock is held by a handful of core investors,
with another large portion of the stock currently shorted, creating favorable
supply/demand dynamics. In addition, we believe many investors are interested in
understanding potential revenue synergies from the Trulia deal, which, although
they are not likely to be evident until late in 2015, have the potential to be
substantial. Given the premium valuation and perceived uncertainty brought on by
closing the Trulia deal and the subsequent integration, we would not be surprised to
see Zillow stock trend mostly sideways in the near term. However, we continue to
believe that the long term outlook for the company and the category are robust.
Zulily (ZU : NASDAQ : $37.57 | BUY)
Quants (-) Our quant model turned negative from positive this month as negative
price momentum and an expensive valuation are partially offset by projected growth
acceleration and high short interest.
Metrics (+) Traffic to zulily.com on desktop grew 83.2% y/y in September compared
to 62.3% and 125.3% y/y in August and July. We note that these are desktop-only
numbers, and mobile traffic is likely growing much faster.
Sentiment (+) We recently initiated on zulily with a BUY recommendation and $45
price target. We believe zulily is early with its unique value proposition to the
affluent but value-conscious moms. Zulily has turned shopping into a daily,
serendipitous experience beginning promptly at 9:01 am, offering moms
entertainment and shopping for non-mainstream fashion bargains. Zulily also
creates a lot of value for vendors, such as valuable exposure to their target
customers with economics that are competitive with those from a conventional
retailer. We believe zulilys loyal customers will continue to tilt more purchase
behavior towards the platform, with more mature user cohorts increasing purchase
frequency noticeably. We believe the stock should positively reflect this amidst a
relative scarcity of e-commerce investment alternatives in the SMID-cap range.
Zynga (ZNGA : NASDAQ : $2.40 | HOLD)
Quant (-) Our quant model turned negative from positive this month as negative
price momentum, downward estimate revisions, and an expensive valuation are only
partially offset by projected growth acceleration.
Metrics (=) Metrics continued to stabilize in September:
o September global desktop ComScore traffic to Zynga.com was down 29.8% y/y
compared to 16.5% and 14.0% y/y declines in August and July. Mobile US traffic
grew 4.3% y/y, accelerating from 3.1% and 8.0% y/y declines in August and
July.
21

o Our proprietary index for the iOS and Android platforms indicates that the
cumulative game ranking increased 10.4% sequentially as of mid-October. Some
of the gain came from the inclusion of games from NaturalMotion (acquired at
the end of 2013). Generally most of the highest ranking games (Farmville 2:
Country Escape, Hit it Rich! Free Casino Slots, and Zynga Poker) remained at the
top, as Zynga re-launched many classics with a mobile-first initiative. This
months ranking also included well performing games from NaturalMotion,
including CSR Racing and CSR Classics.
o FarmVille-2: Country Escape, launched in the US in May, remains strong. The
game was ranking 29, 13, and 20 on iPhone, iPad, and Android per our latest
check (10/28).

Figure 10: FarmVille2, US, gross ranks performance since launch, iPhone (left) and iPad (right)

Source: appannie.com

o CSR Racing, launched in 2012 on iOS but launched on Android in April 2014
after being acquired by Zynga. The game still performs well given its legacy and
represents an integral part of Zyngas mobile-first and category expansion
strategies. The game was ranking 108, 195, and 85 on iPhone, iPad, and
Android per our latest check (10/28).
22


Figure 11: CSR Racing, US, gross ranks performance since launch, iPhone (left) and Android (right)

Source: appannie.com

We note that our gaming index accounts only for U.S. games that are grossing in the top
200, and doesnt take into account any games below 200 (which can be monetized at
healthy levels as well).
Sentiment (-) Zynga stock is down ~16% over the past month and down 37% YTD.
More investors have expressed interest in looking at the stock given its low price
relative to the cash balance. Zyngas Q2 results came in at the low end of guidance
as pressure from Web-based games continues to dampen progress on mobile. Game
pushouts for core franchise updates also lead to lower bookings and EBITDA
guidance for the year. We believe investors will look on Zyngas announced entry
into the sports category favorably, and this move by management offers the best
potential evidence yet that 2015 has the potential to be a better year for Zynga. That
said, we continue to believe a HOLD rating is appropriate for now.
23

APPENDIX
Quantitative screen methodology
Our goal is to assign a quantitative rating from 1 (strong favorable signal) to 5 (strong
unfavorable signal) to each stock we cover as a way to complement our fundamental
analysis. In our model we rate 85 stocks (mostly U.S., with some well-established, liquid
ADRs), approximately half of which are Internet stocks, with the other half being selected
stocks from the rest of the TMT universe.
We do this by rating each stock on 5 different factors: Valuation, Momentum, Estimate
Revisions, Growth, and Short Interest. Each of these factors has 2 or 3 sub-factors, and
we begin by quintiling the stocks with respect to each sub-factor first, and then we
average these scores to calculate a composite factor score. We then quintile these
composites, and the result becomes that stocks 1-5 rating for that factor.
Next, we average each stocks 5 factor ratings (with equal weights on each of the 5
factors) to calculate an overall composite. We then quintile these, and the result is the
stocks overall quantitative rating.
The factors and sub-factors are below. Sub-factors are equal weighted within factors,
and factors are equal-weighted within the overall quant rating :
Valuation
P/E Y2 the P/E ratio on next years consensus EPS estimate
FCFY Y2 the FCF yield on next years consensus FCF estimate
EV/Rev Y2 the EV / Rev ratio on next years consensus revenue estimate
Price momentum
1-M Mo change in stock price over the past 20 trading days
Acc price change acceleration (decel), or 1 month chg minus the 3-month chg
Estimate revisions
3MoEC - % chg in next years consensus EPS estimate over the past 3 months
6MoEC - % chg in next years consensus EPS estimate over the past 6 months
Growth & acceleration
EPSY2 EPS growth, next year over this year
EPSY3 EPS growth, two years out over next year
EPS Acc Y3 EPS growth Y2 EPS growth
Short interest
SIDC Avg trading volume / total number of shares short
Chg Change in short interest over the past month
Short interest data is as of the last update, which comes out every two weeks

Metrics tracker methodology
We rely on a variety of sources to track relevant fundamental metrics for our stocks.
Much of our data-gathering is based on proprietary methods. Our data sources include
comScore, Channel Advisor, AppData, App Annie, company disclosures, and proprietary
web site monitoring methods.
24

APPENDIX: IMPORTANT DISCLOSURES

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby
certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring
analysts personal, independent and objective views about any and all of the designated investments or
relevant issuers discussed herein that are within such authoring analysts coverage universe and (ii) no part
of the authoring analysts compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed by the authoring analyst in the research.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may
not be associated persons of Canaccord Genuity Inc. and therefore may not be subject to the NASD Rule 2711
and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading
securities held by a research analyst account.
Compendium Report: If this report covers six or more subject companies, it is a compendium report and Canaccord Genuity and its
affiliated companies hereby direct the reader to the specific disclosures related to the subject companies
discussed in this report, which may be obtained at the following website (provided as a hyperlink if this
report is being read electronically) http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx; or by
sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre,
2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a request by email to
disclosures@canaccordgenuity.com. The reader may also obtain a copy of Canaccord Genuitys policies and
procedures regarding the dissemination of research by following the steps outlined above.

Distribution of Ratings:
Global Stock Ratings
(as of 1 October 2014)
Coverage Universe
IB Clients
Rating # % %
Buy 627 60.2% 36.7%
Speculative Buy 53 5.1% 54.7%
Hold 317 30.5% 13.9%
Sell 43 4.1% 2.3%

1041 100.0%

*Total includes stocks that are Under Review

Canaccord Genuity
Ratings System:
BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.
HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.
SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.
NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.

Risk-adjusted return refers to the expected return in relation to the amount of risk associated with the
designated investment or the relevant issuer.

Risk Qualifier: SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental
criteria. Investments in the stock may result in material loss.

Canaccord Genuity Research Disclosures as of 28 October 2014

Canaccord Genuity is the business name used by certain wholly owned subsidiaries of Canaccord Genuity
Group Inc., including Canaccord Genuity Inc., Canaccord Genuity Limited, Canaccord Genuity Corp., and
Canaccord Genuity (Australia) Limited, an affiliated company that is 50%-owned by Canaccord Genuity Group
Inc.
The authoring analysts who are responsible for the preparation of this research are employed by Canaccord
Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto,
Montreal, or Canaccord Genuity Inc., a US broker-dealer with principal offices located in New York, Boston,
San Francisco and Houston, or Canaccord Genuity Limited., a UK broker-dealer with principal offices located
in London (UK) and Dublin (Ireland), or Canaccord Genuity (Australia) Limited, an Australian broker-dealer
with principal offices located in Sydney and Melbourne.
The authoring analysts who are responsible for the preparation of this research have received (or will
receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking
revenues and general profits of Canaccord Genuity. However, such authoring analysts have not received, and
will not receive, compensation that is directly based upon or linked to one or more specific Corporate
25

Finance/Investment Banking activities, or to recommendations contained in the research.
Canaccord Genuity and its affiliated companies may have a Corporate Finance/Investment Banking or other
relationship with the issuer that is the subject of this research and may trade in any of the designated
investments mentioned herein either for their own account or the accounts of their customers, in good faith
or in the normal course of market making. Accordingly, Canaccord Genuity or their affiliated companies,
principals or employees (other than the authoring analyst(s) who prepared this research) may at any time
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Some regulators require that a firm must establish, implement and make available a policy for managing
conflicts of interest arising as a result of publication or distribution of research. This research has been
prepared in accordance with Canaccord Genuitys policy on managing conflicts of interest, and information
barriers or firewalls have been used where appropriate. Canaccord Genuitys policy is available upon request.
The information contained in this research has been compiled by Canaccord Genuity from sources believed to
be reliable, but (with the exception of the information about Canaccord Genuity) no representation or
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change without notice and are provided in good faith but without legal responsibility or liability.
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This research is provided for information purposes only and does not constitute an offer or solicitation to buy
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For Canadian Residents: This research has been approved by Canaccord Genuity Corp., which accepts sole responsibility for this
research and its dissemination in Canada. Canadian clients wishing to effect transactions in any designated
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For United States
Residents:
Canaccord Genuity Inc., a US registered broker-dealer, accepts responsibility for this research and its
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appearances and trading securities held by a research analyst account.

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For Jersey, Guernsey This research is sent to you by Canaccord Genuity Wealth (International) Limited (CGWI) for information
26

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Residents:
purposes and is not to be construed as a solicitation or an offer to purchase or sell investments or related
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