PowerPoint Presentation · – The App ecosystem is vital for the success of Salesforce –for...

Important disclosures appear at the back of this report

GP Bullhound LLP is authorized and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRA

Global Software Market PerspectivesQ1 2019

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Software Perspectives – Executive Summary

▪ GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to category leaders with a robust focus on Software globally

▪ We publish this quarterly SaaS market report to provide quantitative insights into public and private market valuations across the transaction spectrum and qualitative insights into company business models, technology and customer trends

▪ We also feature many of the leading SaaS companies & CEOs across interesting sub-sectors

▪ Based in our San Francisco office, Jonathan Cantwell is the head of our Software practice with over

15 years of experience and has completed over 50 transactions with public and private tech companies globally

▪ We have completed 12 Software deals in the last year; several of our recent Software advisory transactions and investments are showcased below

Sold to Sold to Sold to Sold to

Investment fromInvestment from Investment fromInvestment from

3

Key Sector Takeaways

Recent Software Transaction Trends

Public Market SaaS Analyses

SaaS CEO Commentary

Appendix A: GP Bullhound SaaS Index

1

2

3

4

6

8Appendix C: GP Bullhound Software Report

Overview, Software Credentials & Team

5 Key SaaS Metrics

Appendix B: Software Public Comparables by

Category7

4

Rise of the Monoclouds1

Software providers look to the Salesforce AppExchange for growth3

New-age POS solutions augment customer engagement in retail4

HCM Software activity to be dominated by PE roll-ups5

The Zero Trust Cloud Security Model will become an industry standard6

Acquisitions fuel enterprise software portfolio expansion2

GP Bullhound’s Views on Current Trends in Software更多资料欢迎添加微信：zsxf2017

5

– The desire to integrate new areas of the enterprise software stack is driving M&A deals as software providers expect large gains when inserting new and scalable offerings into their existing marketing channels

– We anticipate major acquisitions to continue as industry players are looking to further invest in their enterprise suite, especially their AI, data and analytics capabilities, supported by strong public markets

– Median enterprise SaaS deal size climbed to $70m in 2018 from $34m in 2017

– SAP, IBM and Twilio top the charts, paying high premiums in a hotly contested market to secure leading SaaS Targets

GP Bullhound’s Views on Current Trends in Software (Cont’d)

Source: CapitalIQ, Pitchbook

Rise of the Monoclouds

Acquisitions fuel enterprise software portfolio expansion

1

2

– Adobe, Amazon, Google, Microsoft, and Salesforce lead the Monocloudinitiative to become more dynamic across verticals, offering consumers the ability to utilize multiple services on a single platform

– Driven by companies with billions on their balance sheet, allowing for strong engineering teams that can rapidly enhance their platforms

– With Tech players expanding their SaaS offerings, startups have an opportunity to enter partnerships with cloud providers by providing services specific to the development of these cloud ecosystems and product suites

– By offering hosted services of popular services, startups will increase their technological capabilities and value propositions, and focus their use cases to find niches that broader platforms won’t pursue

EV: $875mEV/ Rev: N/A

Deal Date: 12/21/2018

EV: $32.8bnEV/ Rev: 18.7x

Deal Date: 10/15/2018

EV: 8.0bnEV/ Rev: 20.0x

Deal Date: 11/11/2018

EV: $32.2bnEV/ Rev: 10.2x

Deal Date: 10/28/2018

EV: N/AEV/ Rev: N/A

Deal Date: 10/5/2018

EV: N/AEV/ Rev: N/A


EV: $200m+EV/ Rev: N/A


EV: N/AEV/ Rev: N/A

Deal Date: 11/19/2018

6

– Vendors expect POS solutions to provide live data and integrated analytics, in addition to payment processing capabilities, to allow for more dynamic and comprehensive management of customers and inventory

» Digital payment integration and comprehensive CRM management will ensure a robust and streamlined customer retail experience

– Demand for POS solutions will be driven by increasingly affordable wireless technologies and a transition towards credit cards and digital payment apps as dominant payment methods

– New age POS Solutions will adopt the form factor of mobile devices to create a seamless checkout for customers



Software providers look to the Salesforce AppExchange for growth

New-age POS solutions augment customer engagement in retail

3

4

– The Salesforce AppExchange platform is the fuel for the Salesforce ecosystem economic engine

» 89% of Fortune 100s have installed at least one app on the Salesforce AppExchange, with more than 35m apps currently on the platform

– The App ecosystem is vital for the success of Salesforce – for every $1.00 spent on Salesforce licenses, the Salesforce ecosystem is expected to earn $4.54 on successful deployments by 2020

» Assuming their licenses revenue reaches $16bn by 2020, AppExchange has the potential to generate $73bn in revenue for the ecosystem

– We anticipate that SaaS providers will increasingly try to capitalize on this demand within Salesforce's growing enterprise solutions ecosystem

EV: N/AEV/ Rev: N/A


EV: $37.7bnEV/Rev: 2.7x


EV: $1.4bnEV/Rev: N/A

Deal Date: 10/07/2018

EV: N/AEV/Rev: N/A


EV: $415mEV/ Rev: N/A

Deal Date: 10/24/2018

EV: N/AEV/ Rev: N/A

Deal Date: 9/4/2018

EV: N/AEV/ Rev: N/A

Deal Date: 2/4/2019

EV: N/AEV/ Rev: N/A


Clovis Point Capital


7



HCM Software activity to be dominated by PE roll-ups5

– HCM software (recruiting, talent management, learning, collaboration & engagement) is a core focus for organizations as employee experience is a growing point competition in tight labor markets. More money has been allocated to HR budgets because organizations have identified HCM as a key determinant of employee experience

– The HCM software market is still fragmented, yet consolidation activity is beginning to pick up in the recruitment space

» We expect this activity to continue to play out in adjacent areas of HCM software, namely learning & training, given their big impact on CX

– Several roll-ups are playing out in the PE world: Visma Group (HG Capital), Allocate Software (Vista Equity), Bullhorn (Insight Ventures), Saba Software (Vector Capital)

EV: N/AEV/Rev: N/A


EV: $11bnEV/ Rev: 10.0x

Deal Date: 2/4/2019

EV: N/AEV/Rev: N/A

Deal Date: 10/01/2018

EV: N/AEV/Rev: N/A


– Zero Trust is a security concept that an organization should not trust anything inside or outside its perimeters and instead must verify anything trying to connect to its systems before granting access

– This model is driven by the mobile-first workplace as firms shift more of their infrastructure into the cloud with users accessing applications from a range of devices and multiple locations

– The technology is becoming more available, allowing firms to easily implement a robust cybersecurity system, utilizing micro-segmentation, multifactor authentication, identity and access management, orchestration, encryption, scoring and file system permissions

– Enterprises started implementing multifactor authentication and identity access management, plus micro-segmentation in parts of their environment

The Zero Trust Cloud Security Model will become an industry standard 6

Capital Raised: $100mEV/ Rev: N/A


Capital Raised: $55mEV/ Rev: N/A


EV: $1.5bnEV/ Rev: N/A

Deal Date: 2/4/2019

EV: $2.4bnEV/ Rev: NA


8




SaaS CEO Commentary



Category

1

2

3

4

6

7



5 Key SaaS Metrics


9

Announce

DateIssuer Lead Investor Issuer Description

Capital

Raised ($m)

Feb 18th

Digital banking platform 35

Feb 11th

Delivery platform,

connecting couriers with

customers

400

Feb 5th Cloud-based data

integration platform250

Jan 29th

Online payment manager 100

Jan 28th Micro-investing software

application platform105

Jan 16th Enterprise software

services1,500

Jan 10th Cloud identity-

management platform100

Jan 9th Human capital

management platform50

Dec 21st Internet-connected sensor

systems provider100

Dec 20th Vehicle leasing software

application385

Dec 19th Social media

management40

Nov 12th Ride Sharing application

platform114

Nov 9th

Cloud-based business

management software for

home service companies

165

Announce

DateTarget Buyer Target Description

Value

($m)

Implied

EV/LTM Rev

Feb 4th Cloud-based human

capital management10,875 9.4x

Jan 28th Digital fax manager

platform provider230 -

Jan 16th Electronic commerce

solutions41,941 4.8x

Jan 3rd Social media listening

platform- -

Dec 21st Cloud business

management2,154 8.0x

Dec 13th Cloud-based field

management - -

Nov 20th

Cloud-based

construction document

collaboration platform

875 -

Nov 11th

Customer, employee,

and brand

management solutions

8,000 -

Nov 11th Cloud-based business

management platform2,122 8.3x

Nov 5th

Cloud-based

application security

platform

950 -

Oct 28th Open-source enterprise

software solutions35,690.9 10.7x

Oct 15th

Cloud-based digital

communications

platform

2,020 13.4x

Oct 10th

Cloud-based cyber

and application

platform

2,119 5.2x

Oct 8th Data-driven employee

engagement platform400 -

Oct 3rd Data management

service platform2,107 6.1x

Notable Software M&A Deals & Private Financings(Q4 2018 / Q1 2019)

Selected M&A Transactions Selected Private Financings

Source(s): Capital IQ, Pitchbook

Median 8.2x

10

Global Software Transaction TrendsM&A and Private Placement Activity by Quarter

Source(s): Pitchbook as of 2/28/2019

Note: Data includes all “SaaS” M&A and private placement deals as defined by Pitchbook regardless of geography or transaction size

Transaction Deal Value & Volume Trending Upward Private Placement Deal Values Becoming Larger

The US and Europe Continue to Dominate M&A Deal Volume Private Placement Deal Volume by Region has Stayed Consistent

0

100

200

300

400

500

600

$0M

$20B

$40B

$60B

$80B

$100B

$120B

M&A Buyout M&A Deals Buyout Deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

$0M

$5B

$10B

$15B

$20B

$25B

$30B

$35B

$40B

Total Capital Invested Deal Count

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

YTD

U.S. & Canada Europe Asia Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

2018

Q4

2019

Q1

YTD

U.S. & Canada Europe Asia Other

11

Software IPOs

Source(s): Company SEC filings from Edgar, Capital IQ as of 2/28/2019

▪ Description (HKG: 2013): Developer of

CRM software designed to help businesses

to build m-commerce platforms on

WeChat

▪ Listing Date: 01/15/2019

▪ Offering Amount: $107.8m

▪ Offering Price/Share: $0.36

▪ % Change/IPO Price: 17.4%

▪ LTM Revenue: $17.0m

▪ LTM EV/Revenue: 11.0x

▪ Selected Metrics:

– 2.7m registered merchants

– Paying customers: +50,000

Listed in Q1 2019Filed in Q1 2019

▪ Description (NYSE:ESTC): Developer of

software products that ingest and store

data from any source and format,

performing search, analysis, and

visualization



▪ Offering Price/Share: $36


▪ EV/Revenue: 28.2x

▪ % Change/IPO Price: 146%


– Rev % growth: 81%

– Subscription rev as % of total: 93%

– Customers: 5,500

Listed in Q4 2018

▪ Description (NYSE:PLAN): Provider of a

cloud-based modelling and planning

platform



▪ Offering Price/Share: $17


▪ LTM EV/Revenue: 17.14x

▪ % Change/IPO Price: 93%


– Rev % growth: 39%

– Rev. generated from Global 2000

clients: 56%

– Customers: 979

Filings to look for in 2019

Market volatility in late 2018 Q4 and the lengthy government shutdown postponed recent IPO considerations

Although the amount of IPOs is down roughly 70% compared to this point last year, several large filings are expected in the remainder of 2019

12




SaaS CEO Commentary


1

2

3

4

6



5 Key SaaS Metrics


Category7

13

GP Bullhound Selected SaaS Index Market Valuations

Source(s): Capital IQ

1. Market capitalization as of 12/31/2018

2. Change in market capitalization through 2/28/2019

(Market Cap Values in $ in billions)

104.8

35.1

31.9

23.2

21.2

15.3

15.5

13.0

8.8

7.2

7.7

8.3

7.0

6.6

6.2

6.6

4.9

4.8

4.6

5.1

4.6

4.4

2.0

1.6

1.1

20.4

8.4

11.0

10.7

4.6

5.7

4.6

4.2

6.2

3.5

2.7

1.5

2.3

2.5

2.3

1.9

2.0

2.1

2.0

1.4

1.5

0.9

0.6

0.6

0.3

125.2

43.5

42.9

33.9

25.7

20.9

20.1

17.1

15.0

10.6

10.4

9.8

9.4

9.1

8.6

8.6

6.9

6.8

6.5

6.5

6.1

5.3

2.6

2.2

1.4

Market Cap Change in Market Cap1 2

14

Tech Giants – Show Me The Money

Source: Capital IQ

Note: existing cash balances allow companies to spend over 100% of operating cash flow

1. As of Q3 2018

LTM1 % of Operating Cash Flow ($ 000s) LTM - 2017 % of Operating Cash Flow ($ 000s)

▪ Substantial uses of cash for acquisitions in 2018

– Workday acquired Adaptive Insights for $1.5bn in an all cash deal

– Adobe’s acquisitions of Marketo and Magento for a total of $6.3bn in all cash and Salesforce acquisition of Mulesoft utilizing $4.9bn in cash of a $6.4bn total deal value

▪ Significant uptick in both R&D and share buybacks, the former up 6% YoY and the latter up 19% YoY respectively

0%100%200%300%400%500%600%700% 0% 100% 200% 300% 400% 500% 600% 700%

▪R&D ▪Debt Paydown ▪CAPEX ▪Dividends ▪Share Buybacks ▪Acquisitions

$52,904

$784

$3,152

$859

$1,287

$46,913

$428

$1,503

$77,848

$124,028

$10,564

$8,735

$160

$54,847

$749

$1,058

$518

$633

$24,175

$304

$828

$49,824

$75,434

$3,204

$2,542

$142

$39,319$63,951

15

3.00x

4.00x

5.00x

6.00x

7.00x

8.00x

9.00x

10.00x

11.00x

12.00x

13.00x

2/28/2014 2/28/2015 2/29/2016 2/28/2017 2/28/2018 2/28/2019

2019 Q1 GPB SaaS Index - TEV/LTM Revenues 2019 Q1 GPB SaaS Index - TEV/NTM Total Revenue

Analysis of GP Bullhound SaaS Index ValuationsRevenue Multiple Trends – Last Five Years

Source(s): Capital IQ as of 2/28/2018

Note: GP Bullhound SaaS Index constituents can be found in Appendix A

Current SaaS valuations are now higher than the five year mean;

showing the robustness of the current market environment

Mean: 8.4x

Mean: 6.8x

As of Feb 28 : 10.9x

As of Feb 28: 9.1x

16

CRM

WDAY

TEAM

SPLK

SHOP

VEEV

TWLO

PAYCULTI

OKTA

ZEN

DOCU

RNG

CDAY

HUBS

RP

NEWR

ZS

COUP

PVTL MDB

WIX

PCTY

AYX

MDSO

TWOU

CSOD

FIVNQTWO

MIME

BOX

BL

TENB

ZUO

APPF

APPN

WK

PS

EVBG

YEXT

EGHT

LPSN

SPSC

SCWX

FSCTBNFT

INST

TLND

UPLD

SINCH

CBLK

CARB

MOBL

CSLTECOM

BCOV

AMBR

(20.0%)

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

(5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65%

2018E U

nle

ve

red

FC

F M

arg

in

2018E Revenue Growth

Rule of 40% – Public SaaS2018E Growth and Profitability of Public SaaS Companies in GPB Index


Note: Data based on GP Bullhound SaaS Index, constituents can be found in Appendix A,

excludes outliers and companies with “N/A”

The Rule of

40% Line

17

Rule of 40% – Public SaaS (Cont'd)


Note: Data based on GP Bullhound SaaS Index, constituents can be found in Appendix A,

excludes outliers and companies with “N/A”

Sub-Performers Market-Performers Out-Performers

Companies whose summed revenue growth rate and FCF margin is greater than 40%, are valued higher

by investors than those below this 'rule of 40' line

CRM

SPLK

ULTI

DBX

DOCURNG

CDAY

HUBS

PFPT

RP

NEWR

PVTL

JCOM

WIX

PCTY

MDSO

LOGM

TWOU

CSOD

FIVN

QLYS

QTWO

MIME

BOX

BL

TENBZUO

APPF

APPN

WK

PS

YEXT

EGHT

LPSN

SPSC

SCWX

FSCTBNFT

INSTTLND

SINCH

CBLK

CARBMOBL

BCOVAMBR

AMBR

JIVE

0x

1x

2x

3x

4x

5x

6x

7x

8x

9x

10x

11x

12x

13x

14x

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%

EV

/2018E R

eve

nu

e M

ultip

le

2018E Revenue Growth + 2018E Unlevered FCF Margin

18

75%

60%

46% 46%

32% 32%

25%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Horizontal vs. Vertical Focused Cloud Software TrendsVertical-specific has lower Sales & Marketing spend as a percentage of revenue

However, generally lower growth and valuation multiples

Horizontal Software Vertical-Specific Software

Median: 21%Median: 46%



13.0x 25.0x 10.1x 16.2x 6.4x 15.2x 7.0x 4.7x 6.8x 12.8x 18.6xEV/LTM

Revenue

FY19/18E

Revenue

Growth6.9% 50.7% 26.8% 31.3% 18.3% 31.7%

2.4x

0.3% 16.1% 4.8% 13.7% 34.6% 25.9%

9.0x

20.2%

31%

24% 23%19% 18% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

19

GP Bullhound SaaS Index Performance

L1M L3M

L6M L12M



80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

110.0%

115.0%

120.0%

125.0%

130.0%

11/28/2018 12/9/2018 12/20/2018 12/31/2018 1/11/2019 1/22/2019 2/2/2019 2/13/2019 2/24/2019

Ind

ex V

alu

e

2019 Q1 GPB SaaS Index - Index Value S&P 500 NASDAQ Composite

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

110.0%

8/28/2018 9/28/2018 10/28/2018 11/28/2018 12/28/2018 1/28/2019 2/28/2019

Ind

ex

Va

lue


80.0%

90.0%

100.0%

110.0%

120.0%

130.0%

140.0%

150.0%

160.0%

2/28/2018 4/21/2018 6/12/2018 8/3/2018 9/24/2018 11/15/2018 1/6/2019 2/27/2019

Ind

ex

Va

lue


95.0%

100.0%

105.0%

110.0%

115.0%

1/28/2019 2/4/2019 2/11/2019 2/18/2019 2/25/2019

Ind

ex V

alu

e


20




SaaS CEO Commentary


1

2

3

4

6



5 Key SaaS Metrics


Category7

21

SaaS Company CEO Profile

A modern POS, inventory and analytics SaaS platform changing

how enterprises manage guest transactions. With an omni-

channel approach, Appetize makes front of house transactions

more intuitive while providing robust kitchen and back office

tools. Appetize serves the largest, highest volume businesses,

including sports and entertainment properties, education

campuses, travel and leisure sites, and national chain brands.

Max RoperCEO & Co-Founder

“Most enterprise businesses are facing the same

challenges today: rising labor costs, lack of data

and poor guest experience. Solving for these

important issues is critical, and legacy players are

not moving fast enough for their enterprise

clients.”

22

SaaS Company CEO Profile (Cont’d)

A provider of high-performance SaaS solutions that help local

government agencies manage their physical assets and

associated operations. Through the combined effort of success

coaching, expert consulting, and state-of-the-art software

solutions, Cartegraph provides governments the ability to help them manage their assets and spend smarter.

Josh MallamudCEO

“We continue to see evidence that software

adoption is increasingly relying on smart devices

to enhance communication, productivity, and

more—which is bleeding into their work lives

and creating expectations around the availability

of consumer-quality applications to assist in their

day-to-day work. Urgency around technology

adoption is being driven, in part, by the fact that

experienced team members will retire at an

increasing rate, given demographic trends among

government employees.”

23

SaaS Company CEO Profile (Cont’d)

Hugo WernhoffCEO & Co-Founder

“Education is the last big societal vertical where

technology is yet to have significant impact.

There are 1.5 billion school students and more

than 100 million teachers in the world. In the

coming years, SaaS has the capacity to move

from dealing with admin and class lists, to

leveraging the very core activity of any school

and any teacher: Making sure that students learn

faster and better.”

A provider of digital textbooks that adapts to the learning needs of

students and help teachers coach their students through their

education. By mixing technology with education, Kognity brings life

to textbooks in order to provide a digital, interactive and intelligent

textbook across multiple academic qualifications. Kognity provides intelligent textbooks to schools in over 80 countries on 5 continents.

24




SaaS CEO Commentary


1

2

3

4

6



5 Key SaaS Metrics


Category7

25

Key SaaS MetricsDefinitions & Calculations

Metric Definition Calculation

Normalized measurement of recurring revenue, most frequently

measured with a constant value in each month of the

subscription periodMRR

All S&M expenses for new customers. Sometimes excludes

personnel management S&M costsCAC =

𝑆&𝑀

# 𝑜𝑓 𝑛𝑒𝑤 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠

Customer Acquisition Cost (CAC)

Amount of profit a customer is calculated to deliver to the

company over the lifetime of the customerCLV =

𝐴𝑅𝑃𝑈 ∗ 𝐺𝑀

𝐶ℎ𝑢𝑟𝑛 𝑟𝑎𝑡𝑒

Customer Lifetime Value

(CLV)

The number of months a company requires to pay back its cost of

customer acquisitionPayback Period =

𝐶𝐴𝐶

𝐴𝑅𝑃𝐴 ∗ 𝐺𝑀Payback Period

Churn (Gross & Net)

Gross Churn is the number of customers lost in a given period or

cohort regardless of account expansion or growth

Net Churn is the number of customers gained or lost in a given

period or cohort after taking into consideration new, reactivated,

or expanded accounts Net Churn =

(𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 − 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑔𝑎𝑖𝑛𝑒𝑑

𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑)𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑎𝑡

𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑

Gross Churn = 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡 𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑

𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑎𝑡 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡𝑖𝑚𝑒 𝑝𝑒𝑖𝑟𝑜𝑑

MRR= # 𝑜𝑓 𝑝𝑎𝑦𝑖𝑛𝑔 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 ∗ 𝐴𝑅𝑃𝐴/𝑚𝑜𝑛𝑡ℎ

26

Key SaaS Metrics (Cont’d)

• Monthly Recurring Revenues (MRR), Annual Recurring Revenue (ARR), Annual Run Rate Revenue (ARRR) are the key

metrics that investors will focus on

– Note: ARRR = ARR + Non-recurring revenue items

– Also important to understand, the % on-demand SaaS vs. traditional license, and the mix between software and

services

• Important to show continued growth in top line revenue (both for reported financials and the above metrics)

MRR / ARR / ARRR

• Customer Acquisition Cost (CAC) payback period is typically stated in months. Represents the time taken to fully pay

back sales and marketing investment to acquire a single customer

• Growth is the key target for SaaS companies, but sales and marketing investments should ultimately be profitable. CAC

payback periods:

– For SMEs, CAC payback period should be 6-12 months

– For Enterprise Customers, CAC payback period should be 9-15 months

– A CAC payback period of >24months should be a cause for concern

• Customer Lifetime Value = NPV of recurring gross profit of a customer less the initial cost of customer acquisition

• For SMEs, CLV should be between 3 & 4 years

– For Enterprise Customers, CLV should be between 5 & 7 years

CAC vs. CLV

• Logo Churn: Churn of absolute number of customers. Top companies have a Logo Churn of <7%

• MRR Churn: Churn of customer MRR that has been lost over given period of time. Top companies have a MRR Churn of

<5%; including upgrades/customer expansion, churn is ideally negative (Negative Net Churn)

• MRR Renewal: Total MRR of renewed customers/Total MRR of existing customers at year beginning. Top companies

have a MRR Renewal percentage of 105-110% due to upsells to its installed base

• Net Revenue Retention:

– Key metric for performance of SaaS business

– >100% upsells more than make up for churn

– ARR as a Percentage of Upsells: 15%+

Churn & Renewal Rates

• Growth is of paramount importance, with excess cash being used to fuel growth

• Important, therefore, to understand the cash burn in the business and planning for capital efficient hyper-growth

Free Cash Flow /

Burn Rate

Source(s): GP Bullhound analysis

Investors focus on key SaaS metrics, long-term business model viability and valuations

27




SaaS CEO Commentary


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Public Comps – GP Bullhound SaaS Index


Note: Multiples in excess of 75.0x or less than 0.0x are considered not-material (“NM”) and are not included in average calculation

Share

Price

Market

Cap EV Cash EV/Revenue EV/EBITDA

CY

Revenue

Growth

Company Name HQ Employee 02-28-19 LTM L6M L1M (m) (m) (m) LTM CY19E CY20E LTM CY19E CY20E 19/18 Gross EBITDA

Share Price Performance

CY19E

Margins

Salesforce US 29,000 $163.65 40.8% 7.0% 11.1% $125,192 $126,133 $4,342 9.5x 7.9x 6.6x NM 31.6x 25.2x NA 77.1% 24.9%

Workday US 10,200 197.93 56.3% 30.0% 14.7% 43,545 42,971 1,778 15.2x 12.2x 9.9x NM 67.1x 48.5x 25.0% 75.9% 18.1%

ServiceNow US 8,154 239.44 48.7% 23.3% 27.4% 43,219 42,383 1,498 16.2x 12.4x 9.7x NM 45.5x 33.8x 31.4% 81.0% 27.2%

Square US 3,349 81.24 76.4% 0.5% 6.6% 34,096 33,872 1,124 10.3x 15.0x 11.2x NM NM 52.3x (31.4%) 80.4% 18.6%

Atlassian UK 3,061 107.48 98.0% 22.6% 13.5% 25,742 24,934 1,644 26.1x 18.4x 14.6x NM 72.7x 57.7x 41.8% NA 25.3%

Splunk US 3,200 135.88 45.8% 6.6% 13.7% 20,081 18,958 2,757 10.5x 8.8x 7.2x NM 54.1x 40.6x 20.1% 83.9% 16.2%

Shopify CA 4,000 189.15 36.9% 30.4% 18.6% 20,927 18,948 1,979 17.7x 12.7x 9.7x NM NM NM 38.8% 55.7% 3.7%

Veeva Systems US 2,171 117.91 69.2% 14.8% 9.9% 17,133 16,042 1,090 18.6x 15.6x 13.2x 67.7x 41.8x 34.9x 19.5% 74.1% 37.3%

Twilio US 1,440 121.69 256.2% 51.7% 19.1% 15,022 14,709 748 22.6x 13.7x 10.4x NM NM NM 65.3% 55.8% 3.9%

Paycom Software US 3,050 181.73 83.7% 19.3% 26.2% 10,649 10,638 46 18.8x 14.9x 12.2x 55.7x 36.7x 29.2x 25.8% 84.3% 40.7%

The Ultimate Software US 5,113 331.50 39.0% 9.2% 21.2% 10,385 10,235 162 9.0x 7.5x 6.3x NM 31.7x 25.6x 19.8% 65.4% 23.6%

Okta US 1,176 84.88 120.0% 40.4% 7.5% 9,374 9,096 546 25.0x 17.5x 13.4x NM NM NM NA 75.1% (4.7%)

Dropbox US 2,323 23.86 NA (12.2%) (1.2%) 9,813 8,890 1,089 6.4x 5.4x 4.7x NM 24.3x 19.3x 17.8% 75.3% 22.3%

Zendesk US 2,740 79.02 83.0% 17.4% 19.9% 8,563 8,594 427 14.4x 10.7x 8.3x NM NM NM 34.0% 74.1% 7.1%

DocuSign US 2,255 55.15 NA (16.8%) 13.0% 9,114 8,452 1,094 13.0x 9.8x 8.1x NM NM 61.8x NA 79.5% 9.4%

RingCentral US 1,871 105.29 68.1% 12.3% 18.7% 8,554 8,355 566 13.6x 9.8x 7.9x NM NM 59.5x 39.5% 77.6% 12.6%

Ceridian HCM US 4,444 49.02 NA 26.8% 23.7% 6,888 7,341 218 9.8x 9.0x 8.0x 62.9x 39.7x 32.5x 9.1% 47.7% 22.7%

HubSpot US 2,638 168.38 51.6% 17.8% 12.2% 6,932 6,659 592 13.0x 10.2x 8.3x NM NM 58.9x 27.0% 82.2% 12.1%

Proofpoint US 2,613 118.09 10.2% (0.1%) 20.5% 6,536 6,305 232 8.8x 7.2x 6.0x NM 47.6x 35.5x 21.8% 78.1% 15.2%

RealPage US 6,267 61.21 17.1% 0.3% 12.2% 5,587 5,956 228 6.8x 6.0x 5.4x 42.4x 21.2x 18.2x 14.1% 62.9% 28.4%

New Relic US 1,627 105.75 47.3% 1.2% 8.7% 6,065 5,747 722 12.9x 10.1x 8.1x NM 70.0x 49.6x 27.5% NA 14.4%

Zscaler US 1,050 49.68 NA 5.7% 9.0% 6,073 5,733 340 23.6x 18.4x 14.1x NM NM NM 28.2% NA 4.4%

Coupa Software US 833 94.19 111.2% 34.2% 17.9% 5,599 5,364 406 22.4x 17.0x 13.6x NM NM NM NA 73.6% 8.1%

Pivotal Software US 2,894 22.42 NA (18.3%) 28.0% 5,884 5,220 665 8.4x 6.4x 5.2x NM NM 61.7x NA 68.0% (3.2%)

MongoDB US 962 101.56 215.3% 41.3% 14.9% 5,444 5,135 522 23.8x 14.8x 11.1x NM NM NM NA 72.9% (15.5%)

j2 Global US 2,587 85.01 14.8% 1.7% 13.9% 4,190 4,994 209 4.1x 3.8x 3.6x 11.1x 9.4x 8.7x 7.9% 83.3% 40.6%

Wix IL 1,771 109.25 45.6% 0.2% 3.9% 5,282 4,918 704 8.1x 6.5x 5.3x NM 31.8x 23.6x 25.9% 78.3% 20.4%

Paylocity Holding US 2,600 87.57 87.2% 12.7% 29.7% 4,634 4,530 104 11.2x 9.0x 7.5x NM 31.3x 25.0x 24.7% NA 28.8%

Alteryx US 800 76.31 123.2% 35.6% 9.0% 4,684 4,528 330 17.9x 12.9x 9.8x NM NM NM 37.9% 91.1% 12.8%

Medidata US 1,998 75.02 14.3% (10.5%) 8.7% 4,602 4,450 241 7.0x 6.0x 5.2x 51.7x 24.6x 20.5x 16.3% 75.6% 24.5%

LogMeIn US 3,515 79.44 (31.3%) (6.3%) (12.7%) 4,039 4,090 149 3.4x 3.3x 3.1x 11.6x 10.0x 10.2x 4.3% 81.7% 32.6%

2U US 2,626 73.70 (11.0%) (14.2%) 30.2% 4,285 3,834 475 9.3x 7.0x 5.3x NM NM NM 33.0% 78.5% 2.4%

Cloudera US 1,648 14.57 (23.5%) 4.1% 10.5% 3,838 3,449 390 7.9x 3.7x 3.0x NM 16.7x 10.0x NA 76.3% 21.9%

Cornerstone OnDemand US 1,953 56.50 37.8% 0.7% 0.6% 3,339 3,286 388 6.1x 5.8x 5.1x NM 27.1x 20.4x 4.8% 75.8% 21.5%

Five9 US 983 53.04 74.7% 10.9% 10.2% 3,143 3,059 292 11.9x 10.2x 8.7x NM 60.9x 47.4x 16.8% 63.7% 16.7%

Qualys US 1,194 83.63 12.9% (8.6%) 1.6% 3,293 3,006 289 10.8x 9.3x 8.0x 37.9x 24.5x 20.4x 15.4% 78.7% 38.1%

Q2 US 1,190 68.82 51.1% 10.0% 20.7% 2,999 3,005 177 12.5x 9.8x 8.0x NM NM NM 27.6% 52.9% 6.8%

Mimecast UK 1,192 48.28 39.0% 16.2% 39.3% 2,917 2,949 157 9.2x 7.4x 6.1x NM 43.9x 34.9x 23.7% NA 16.9%

Box US 1,968 20.24 (15.9%) (23.9%) (0.3%) 2,921 2,816 218 4.6x 4.0x 3.5x NM 60.5x 35.0x 15.4% 71.3% 6.6%

BlackLine US 850 52.34 19.0% (0.2%) 16.3% 2,876 2,748 133 12.1x 9.9x 8.1x NM NM NM 21.9% 80.8% 7.6%

29

Public Comps – GP Bullhound SaaS Index (Cont’d)



Share

Price

Market


CY

Revenue

Growth



CY19E

Margins

Tenable US 1,252 $31.18 NA (4.0%) 16.2% $2,904 $2,631 $283 9.8x 7.7x 6.2x NM NM NM 27.9% 81.3% (14.0%)

Zuora US 933 23.76 NA (26.5%) 12.4% 2,578 2,418 175 10.9x 8.2x 6.7x NM NM NM NA 56.8% (13.1%)

AppFolio US 916 72.28 80.2% (11.6%) 18.1% 2,451 2,410 91 12.7x 10.1x 8.1x NM 37.8x 28.3x 26.1% 61.5% 26.6%

Appian US 1,058 36.49 34.9% 5.4% 14.6% 2,345 2,250 95 9.9x 8.6x 7.3x NM NM NM 15.0% 65.4% (7.8%)

Workiva US 1,319 49.45 117.4% 47.8% 28.2% 2,191 2,111 98 8.6x 7.4x 6.4x NM NM NM 16.1% 77.6% (3.8%)

Pluralsight US 1,100 32.51 NA (2.2%) 10.4% 2,166 2,095 194 9.0x 6.7x 5.1x NM NM NM 34.5% 76.8% (8.6%)

Everbridge US 777 70.71 121.6% 21.9% 18.3% 2,097 2,086 106 14.2x 10.7x 8.5x NM NM NM 33.1% 71.2% 2.3%

Yext US 800 18.58 46.3% (29.9%) 24.2% 1,874 1,767 107 8.3x 5.9x 4.6x NM NM NM NA 75.8% (10.3%)

8x8 US 1,225 19.67 7.8% (12.2%) 1.2% 1,882 1,767 115 5.2x 4.4x 3.7x NM NM NA 18.0% NA (2.7%)

LivePerson US 1,106 27.96 93.5% 5.9% 22.4% 1,788 1,721 66 6.9x 6.0x 5.0x NM NM 58.6x 15.3% 74.6% 3.9%

SPS Commerce US 1,231 106.78 77.9% 10.6% 22.3% 1,896 1,718 178 6.9x 6.2x 5.7x 43.6x 27.0x 23.1x 10.7% 68.1% 23.1%

SecureWorks US 2,555 22.19 124.8% 75.6% 10.3% 1,813 1,698 116 3.3x 3.0x 2.7x NM NM 56.6x NA 54.7% 3.5%

ForeScout US 1,107 41.54 39.5% 16.1% 42.9% 1,780 1,682 115 5.6x 4.6x 3.8x NM NM NM 24.1% 78.2% (1.9%)

Benefitfocus US 1,450 49.12 103.0% 14.9% (11.0%) 1,574 1,621 191 6.3x 5.3x 4.6x NM NM 46.8x 18.0% 53.0% 5.9%

Instructure US 1,219 46.73 7.7% 17.6% 20.8% 1,673 1,520 153 7.3x 5.9x 4.9x NM NM NM 22.6% 72.9% (4.9%)

Talend FR 1,068 47.90 1.7% (24.9%) 31.2% 1,452 1,419 34 6.9x 5.7x 4.6x NM NM NM 21.6% 76.9% (7.5%)

Upland Software US 375 35.10 47.1% (4.9%) 17.8% 758 900 16 6.8x 4.7x 4.6x 31.4x 13.0x 12.0x NA 69.6% 36.4%

CLX Communications SE 385 12.90 74.6% 9.5% 9.7% 691 735 20 1.6x 1.4x 1.3x 17.5x 14.9x 13.0x 14.6% 25.3% 9.6%

Carbon Black US 932 13.09 NA (47.8%) (8.5%) 889 728 161 3.5x 3.0x 2.5x NM NM NM 15.7% 78.9% (15.6%)

Carbonite US 965 23.27 (17.3%) (44.3%) (16.4%) 800 720 198 2.4x 1.5x 1.2x 24.0x 5.5x 4.4x 65.4% 80.9% 26.7%

MobileIron US 889 5.06 5.4% 4.3% 4.3% 540 435 106 2.3x 2.1x 1.9x NM NM 22.2x 9.4% 83.0% 2.0%

Castlight Health US 470 3.19 (10.1%) 8.1% 21.8% 446 372 77 2.4x 2.3x 2.0x NM 45.1x 21.8x 1.3% 68.0% 5.2%

ChannelAdvisor US 730 12.93 46.1% (0.2%) 22.3% 354 310 47 2.4x 2.2x 2.1x NM 22.5x 17.5x 4.9% 78.5% 10.0%

Brightcove US 495 8.87 29.5% 8.2% 18.0% 325 296 29 1.8x 1.7x 1.6x NM 50.6x 21.9x 2.9% 62.7% 3.5%

Amber Road US 692 9.84 8.1% 13.4% 16.4% 276 290 8 3.4x 3.2x 3.0x NM 47.0x 35.8x 5.7% 56.5% 6.9%

Average 10.3x 8.1x 6.6x 38.1x 36.0x 32.5x 21.4% 71.8% 11.5%

Median 9.2x 7.4x 6.2x 40.1x 31.8x 28.7x 20.9% 75.6% 9.6%

30




SaaS CEO Commentary


1

2

3

4

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5 Key SaaS Metrics


Category7

31

Public Comps – Large-Cap ConsolidatorsShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

Microsoft US 131,000 $112.03 19.5% 1.6% 6.6% $859,518 $817,328 $127,673 6.9x 6.3x 5.7x 16.5x 14.7x 12.9x 9.8% NA 42.7%

Intel US 107,400 52.96 7.4% 9.0% 13.4% 238,161 252,870 11,650 3.6x 3.6x 3.4x 7.8x 7.8x 7.4x 0.4% 61.4% 45.6%

Cisco US 74,200 51.77 15.6% 10.3% 13.2% 227,893 213,168 40,383 4.2x 4.1x 3.9x 14.0x 11.4x 10.9x 3.3% NA 35.7%

Oracle US 137,000 52.13 2.9% 7.2% 5.3% 187,090 196,475 49,391 4.9x 4.9x 4.8x 12.4x 10.6x 10.2x 0.3% NA 46.3%

IBM US 350,600 138.13 (11.4%) (5.8%) 2.9% 122,917 156,937 12,006 2.0x 2.0x 2.0x 9.4x 8.4x 8.2x 0.3% 47.1% 23.8%

SAP DE 96,498 107.11 1.5% (12.4%) 0.0% 127,842 130,858 10,390 4.6x 4.2x 3.9x 14.9x 12.5x 11.2x 9.2% NA 34.0%

Salesforce US 29,000 163.65 40.8% 7.0% 11.1% 125,192 126,133 3,450 10.1x 7.9x 6.6x NM 31.6x 25.2x NA NA 24.9%

Hewlett Packard US 60,000 16.38 (11.9%) (2.2%) 4.6% 22,555 31,169 3,781 1.0x 1.0x 1.0x 6.3x 6.0x 5.7x 2.4% NA 16.9%

Average 4.7x 4.2x 3.9x 11.6x 12.9x 11.5x 3.7% 54.3% 33.7%

Median 4.4x 4.1x 3.9x 12.4x 11.0x 10.6x 2.4% 54.3% 34.9%



32

Public Comps – Advertising TechnologyShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

Alphabet US 98,771 $1,126.55 2.0% (9.6%) 4.3% $780,846 $675,718 $109,140 4.9x 4.1x 3.6x 16.7x 11.4x 9.9x 19.5% 55.3% 36.2%

Adobe US 21,357 262.50 25.5% (0.2%) 8.5% 128,028 128,934 3,229 14.3x 11.6x 9.8x 40.5x 26.3x 21.5x 23.6% 87.3% 43.9%


Trade Desk US 944 197.54 251.1% 41.0% 45.6% 8,706 8,499 207 17.8x 13.2x 10.4x 73.6x 44.5x 33.6x 34.9% 76.0% 29.7%

Hubspot US 2,638 168.38 51.6% 17.8% 12.2% 6,932 6,659 592 13.0x 10.2x 8.3x NM NM 58.9x 27.0% 82.2% 12.1%

Teradata US 10,152 48.37 31.4% 17.2% 9.6% 5,674 5,503 715 2.5x 2.7x 2.6x 44.7x 14.5x 12.4x (5.9%) NA 18.6%

Criteo FR 2,744 27.14 (9.5%) 3.9% 10.2% 1,838 1,501 364 0.7x 1.5x 1.4x 5.9x 5.0x 4.4x (56.5%) NA 29.8%

TechTarget US 622 16.58 (4.1%) (32.2%) 15.8% 461 451 35 3.7x 3.4x 3.1x 21.3x 12.4x 10.5x 9.8% NA 27.3%

ChannelAdvisor US 730 12.93 46.1% (0.2%) 22.3% 354 310 47 2.4x 2.2x 2.1x NM 22.5x 17.5x 4.9% NA 10.0%

Average 7.7x 6.3x 5.3x 33.8x 21.0x 21.5x 7.2% 75.2% 25.8%

Median 4.9x 4.1x 3.6x 30.9x 18.5x 17.5x 14.7% 79.1% 27.3%



33

Public Comps – Business Intelligence/AnalyticsShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

Alphabet US 98,771 $1,126.55 2.0% (9.6%) 4.3% $780,846 $675,718 $109,140 4.9x 4.1x 3.6x 16.7x 11.4x 9.9x 19.5% NA 36.2%

IBM US 350,600 138.13 (11.4%) (5.8%) 2.9% 122,917 156,937 12,006 2.0x 2.0x 2.0x 9.4x 8.4x 8.2x 0.3% 47.1% 23.8%

SAP DE 96,498 107.11 1.5% (12.4%) 0.0% 127,842 130,858 10,390 4.6x 4.2x 3.9x 14.9x 12.5x 11.2x 9.2% 72.0% 34.0%

Adobe US 21,357 262.50 25.5% (0.2%) 8.5% 128,028 128,934 3,229 14.3x 11.6x 9.8x 40.5x 26.3x 21.5x 23.6% 87.3% 43.9%


NetApp US 10,300 65.20 7.7% (24.1%) 3.1% 16,103 13,755 4,054 2.2x 2.2x 2.1x 10.5x 8.3x 7.5x 2.4% NA 26.0%

Tableau Software US 4,181 131.90 61.5% 22.4% 4.7% 11,355 10,332 1,022 8.9x 7.6x 6.4x NM 47.9x 35.0x 18.3% NA 15.8%

Fair Isaac US 3,772 247.82 45.8% 10.5% 14.6% 7,204 7,957 80 7.5x 6.9x 6.5x 32.2x NA NA 7.8% NA 0.0%


Teradata US 10,152 48.37 31.4% 17.2% 9.6% 5,674 5,503 715 2.5x 2.7x 2.6x 44.7x 14.5x 12.4x (5.9%) NA 18.6%

Alteryx US 756 76.31 123.2% 35.6% 9.0% 4,684 4,528 330 17.9x 12.9x 9.8x NM NM NM 37.9% NA 12.8%

Blackbaud US 3,353 77.24 (24.7%) (25.0%) 10.3% 3,654 4,010 31 4.7x 4.5x 4.3x 30.0x 22.6x 20.7x 5.0% NA 20.0%

Verint US 5,700 53.25 36.9% 8.2% 13.4% 3,476 3,864 406 3.2x 2.9x 2.7x 23.5x 11.8x 10.4x NA NA 24.5%

Cloudera US 1,648 14.57 (23.5%) 4.1% 10.5% 3,838 3,449 390 7.9x 3.7x 3.0x NM 16.7x 10.0x NA NA 21.9%

Inovalon US 2,302 13.14 9.5% 11.8% (7.1%) 2,006 2,859 123 5.4x 4.5x 4.1x 25.4x 14.1x 12.8x 19.8% NA 32.2%

Workiva US 1,319 49.45 117.4% 47.8% 28.2% 2,191 2,111 98 8.6x 7.4x 6.4x NM NM NM 16.1% NA (3.8%)

Yext US 800 18.58 46.3% (29.9%) 24.2% 1,874 1,767 107 8.3x 5.9x 4.6x NM NM NM NA NA (10.3%)

LivePerson US 1,106 27.96 93.5% 5.9% 22.4% 1,788 1,721 66 6.9x 6.0x 5.0x NM NM 58.6x 15.3% NA 3.9%

Talend FR 1,068 47.90 1.7% (24.9%) 31.2% 1,441 1,408 34 6.9x 5.7x 4.6x NM NM NM 21.6% NA (7.5%)

MicroStrategy US 2,528 141.50 10.6% (4.3%) 2.2% 1,454 878 576 1.8x 1.7x 1.7x NM 33.6x 15.5x 3.0% NA 5.1%

SDL UK 3,700 7.74 34.8% 20.1% 7.7% 702 672 30 1.8x 1.4x 1.3x 17.6x 12.4x 11.2x NA NA 11.0%

Attunity IL 256 23.38 219.0% 10.9% (4.0%) 511 467 44 5.4x 4.4x 3.6x 51.4x 28.0x NA 22.7% NA 15.8%

Gridsum CN 1,078 3.85 (64.6%) (35.1%) 65.2% 119 165 9 2.0x NA NA NM NA NA NA NA NA

Expert System IT 230 1.84 14.5% 32.3% 19.0% 66 72 16 1.7x 1.9x 1.6x NM 8.5x 6.5x NA NA 21.7%

Hottolink JP 87 3.74 (43.6%) (55.0%) (2.8%) 57 42 18 1.4x NA NA 6.6x NA NA (100.0%) NA NA

Average 6.2x 5.4x 4.6x 24.9x 23.6x 20.1x 8.6% 72.5% 16.4%

Median 5.4x 4.5x 4.1x 23.5x 14.5x 12.4x 16.1% 77.8% 16.2%



34

Public Comps – Communication



Share

Price

Market


CY

Revenue

Growth



CY19E

Margins


Cisco US 74,200 51.77 15.6% 10.3% 13.2% 227,893 213,168 40,383 4.2x 4.1x 3.9x 14.0x 11.4x 10.9x 3.3% NA 35.7%


Twilio US 1,440 121.69 256.2% 51.7% 19.1% 15,022 14,709 748 22.6x 13.7x 10.4x NM NM NM 65.3% 55.8% 3.9%

Citrix US 8,200 105.50 14.7% (6.9%) 3.5% 13,897 14,592 1,202 4.9x 4.7x 4.5x 17.4x 13.3x 12.5x 3.8% NA 35.6%

RingCentral US 1,871 105.29 68.1% 12.3% 18.7% 8,554 8,355 566 13.6x 9.8x 7.9x NM NM 59.5x 39.5% NA 12.6%

NICE Systems IL 5,208 117.45 20.3% 2.7% 9.2% 7,267 7,237 486 5.0x 4.6x 4.2x 20.1x 15.3x 14.1x 8.8% NA 30.0%

Nuance US 10,400 16.77 4.4% 1.5% 7.6% 4,786 6,553 431 3.1x 3.5x 3.3x 16.0x 11.5x 10.7x (10.5%) NA 30.3%

j2 Global US 2,487 85.01 14.8% 1.7% 13.9% 4,190 4,994 209 4.1x 3.8x 3.6x 10.8x 9.4x 8.7x 7.9% NA 40.6%

Everbridge US 783 70.71 121.6% 21.9% 18.3% 2,097 2,086 106 14.2x 10.7x 8.5x NM NM NM 33.1% NA 2.3%

8x8 US 1,225 19.67 7.8% (12.2%) 1.2% 1,882 1,767 115 5.2x 4.4x 3.7x NM NM NA 18.0% NA (2.7%)

LivePerson US 1,106 27.96 93.5% 5.9% 22.4% 1,788 1,721 66 6.9x 6.0x 5.0x NM NM 58.6x 15.3% NA 3.9%

Average 9.7x 7.5x 6.3x 15.8x 21.2x 27.3x 19.7% 55.8% 21.7%

Median 6.1x 5.4x 4.8x 16.3x 13.3x 12.9x 12.5% 55.8% 27.6%

35

Public Comps – ERP & Enterprise ApplicationShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

Oracle US 137,000 $52.13 2.9% 7.2% 5.3% $187,090 $196,475 $49,391 4.9x 4.9x 4.8x 12.4x 10.6x 10.2x 0.3% NA 46.3%

SAP DE 96,498 107.11 1.5% (12.4%) 0.0% 127,842 130,858 10,390 4.6x 4.2x 3.9x 14.9x 12.5x 11.2x 9.2% 72.0% 34.0%



Shopify CA 4,000 189.15 36.9% 30.4% 18.6% 20,927 18,948 1,979 17.7x 12.7x 9.7x NM NM NM 38.8% 55.7% 3.7%

Constellation Software CA 14,335 853.44 31.6% 16.5% 15.2% 18,086 17,858 589 5.8x 5.0x 4.4x 30.7x 19.0x 16.3x 16.1% NA 26.5%

Sage Group UK 13,003 8.79 (8.0%) 4.7% 6.3% 9,540 10,403 355 4.3x 3.9x 3.7x 16.3x 15.3x 14.3x NA NA 25.6%

Yonyou Networks CN 15,674 4.55 14.3% 8.8% 19.0% 8,726 8,960 460 8.3x 6.1x 4.8x 40.9x 38.6x 31.3x NA NA 15.9%

Zendesk US 2,740 79.02 83.0% 17.4% 19.9% 8,563 8,594 427 14.4x 10.7x 8.3x NM NM NM 34.0% NA 7.1%

Tyler Technologies US 4,525 204.79 0.8% (15.8%) 7.4% 7,842 7,663 179 8.2x 7.0x 6.4x 39.9x 24.4x 21.7x 16.3% NA 28.9%

Guidewire Software US 2,302 91.74 14.2% (6.9%) 7.5% 7,434 6,651 1,091 9.1x 8.7x 7.6x NM 47.9x 30.5x NA NA 18.1%

Aveva Group UK 4,400 40.01 NA 11.6% 12.1% 6,450 6,341 122 7.8x 6.2x 5.8x 42.5x 22.2x 19.7x NA NA 27.8%

RealPage US 6,267 61.21 17.1% 0.3% 12.2% 5,587 5,955 228 6.8x 6.0x 5.4x 43.9x 21.1x 18.2x 14.1% NA 28.4%

j2 Global US 2,487 85.01 14.8% 1.7% 13.9% 4,190 4,994 209 4.1x 3.8x 3.6x 10.8x 9.4x 8.7x 7.9% NA 40.6%

Medidata Solutions US 1,680 75.02 14.3% (10.5%) 8.7% 4,602 4,450 241 7.0x 6.0x 5.2x 51.5x 24.6x 20.5x 16.3% NA 24.5%

Wisetech AU 1,500 14.12 70.1% (9.3%) (3.0%) 4,107 4,099 30 20.4x 14.8x 11.6x 67.2x 46.4x 33.7x 37.8% NA 31.9%

Blackbaud US 3,353 77.24 (24.7%) (25.0%) 10.3% 3,654 4,010 31 4.7x 4.5x 4.3x 30.0x 22.6x 20.7x 5.0% NA 20.0%

Prosegur ES 170,350 5.60 (30.3%) (17.5%) 3.1% 3,351 3,993 1,199 0.9x 0.8x 0.8x 7.6x 6.6x 6.0x 5.6% NA 12.6%

Five9 US 983 53.04 74.7% 10.9% 10.2% 3,143 3,059 292 11.9x 10.2x 8.7x NM 60.9x 47.4x 16.8% NA 16.7%

Appian US 1,058 36.49 34.9% 5.4% 14.6% 2,345 2,250 95 9.9x 8.6x 7.3x NM NM NM 15.0% NA (7.8%)

Workiva US 1,319 49.45 117.4% 47.8% 28.2% 2,191 2,111 98 8.6x 7.4x 6.4x NM NM NM 16.1% NA (3.8%)

Everbridge US 783 70.71 121.6% 21.9% 18.3% 2,097 2,086 106 14.2x 10.7x 8.5x NM NM NM 33.1% NA 2.3%

SPS Commerce US 1,231 106.78 77.9% 10.6% 22.3% 1,896 1,718 178 6.9x 6.2x 5.7x 43.6x 27.0x 23.1x 10.7% NA 23.1%

Technology One AU 848 5.37 43.4% 28.3% 9.1% 1,663 1,589 76 7.4x 6.7x 6.0x 30.8x 26.5x 22.9x NA NA 25.2%

Enghouse CA 1,446 28.94 11.6% (5.8%) 3.8% 1,580 1,434 148 5.5x 5.1x NA 20.8x 16.6x NA NA NA 30.5%

QAD US 1,950 45.26 0.6% (25.4%) 4.6% 848 724 138 2.2x 2.1x 1.9x NM 30.2x 26.0x NA NA 6.9%

Model N US 782 17.30 1.2% 7.1% 20.9% 546 547 52 3.6x 3.8x 3.4x NM 58.5x 37.8x (5.2%) NA 6.5%

BasWare FI 1,412 34.51 (36.3%) (8.3%) (21.8%) 496 515 47 3.2x 3.0x 2.8x 68.1x NM NM 4.4% NA 1.5%

ChannelAdvisor US 730 12.93 46.1% (0.2%) 22.3% 354 310 47 2.4x 2.2x 2.1x NM 22.5x 17.5x 4.9% NA 10.0%

Amber Road US 692 9.84 8.1% 13.4% 16.4% 276 290 8 3.4x 3.2x 3.0x NM 47.0x 35.8x 5.7% NA 6.9%

American Software US 462 11.59 (6.8%) (36.2%) 6.6% 359 276 83 2.5x 2.4x 2.2x 26.0x 17.3x 14.1x 2.5% NA 13.9%

Freelancer AU 390 0.47 36.8% 14.0% (6.6%) 214 190 23 5.2x 4.7x 4.1x NM NM NM 10.3% NA 2.6%

Average 7.5x 6.3x 5.4x 33.2x 29.1x 23.4x 14.2% 67.7% 17.8%

Median 6.9x 6.0x 5.2x 30.8x 24.4x 21.2x 12.4% 72.0% 18.1%



36

Public Comps – Financial ApplicationShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

IRESS AU 1,850 8.70 7.5% (12.1%) 3.5% 1,459 1,582 22 4.8x 4.5x 4.2x 20.5x 16.2x 14.8x 7.8% NA 27.7%

MYOB AU 1,500 2.41 (2.2%) 11.5% (0.6%) 1,419 1,728 25 5.6x 5.0x 4.6x 18.9x 12.7x 11.4x 10.5% NA 39.7%

Bottomline Technologies US 1,700 49.88 31.3% (23.3%) 0.8% 2,032 2,045 97 5.0x 4.7x 4.2x 48.1x 19.5x 17.2x 6.9% NA 24.0%

Ebix US 4,515 58.27 (30.6%) (25.4%) 7.0% 1,822 2,364 155 5.1x 3.8x 2.8x 15.3x 11.9x 9.5x NA NA 32.3%

Envestnet US 3,516 61.01 10.7% (2.5%) 14.1% 2,790 2,959 289 3.6x 3.4x 2.9x 32.2x 16.9x 14.3x 8.3% 69.0% 19.9%

Q2 Holdings US 1,190 68.82 51.1% 10.0% 20.7% 2,999 3,005 177 12.5x 9.8x 8.0x NM NM NM 27.6% NA 6.8%

Ellie Mae US 1,550 99.49 12.2% (4.5%) 36.8% 3,471 3,168 303 6.6x 6.2x 5.7x 38.6x 21.7x 19.3x 6.2% NA 28.6%

SimCorp DK 1,660 90.13 43.4% (3.8%) 13.8% 3,579 3,525 54 8.0x 7.3x 6.8x 28.9x 25.1x 23.5x 10.3% NA 29.0%

Oracle Financial IN 8,818 49.43 (18.1%) (16.3%) (5.6%) 4,240 3,811 437 5.5x 5.0x 4.6x 13.4x 11.7x 10.4x 9.9% NA 42.8%

Fair Isaac US 3,772 247.82 45.8% 10.5% 14.6% 7,204 7,957 80 7.5x 6.9x 6.5x 32.2x NA NA 7.8% NA 0.0%

Black Knight US 4,700 52.25 9.7% (2.0%) 8.2% 7,730 9,050 20 8.1x 7.6x 7.1x 24.9x 15.3x 14.0x 6.9% NA 49.6%

Jack Henry & Associates US 6,307 132.63 13.1% (15.5%) 0.2% 10,236 10,210 26 6.4x 6.3x 5.9x 20.8x 18.9x 17.1x 1.1% NA 33.5%

Temenos CH 4,980 145.13 23.5% (19.9%) 8.4% 10,074 10,594 287 12.5x 10.7x 9.7x 33.9x 28.5x 24.9x 16.8% NA 37.6%

MSCI US 3,112 184.72 30.5% 4.3% 13.7% 15,576 17,248 904 12.0x 11.3x 10.3x 22.6x 20.6x 18.5x 6.7% NA 54.7%

SS&C US 8,287 61.58 24.4% 5.4% 21.7% 15,445 23,534 167 6.9x 5.0x 4.8x 22.5x 12.6x 11.7x 38.7% NA 39.4%

Fiserv US 24,000 84.69 18.1% 8.0% (0.6%) 33,164 38,708 415 6.6x 6.3x 6.0x 20.4x 16.3x 15.4x 6.2% NA 38.4%

Fidelity National US 47,000 108.15 11.3% 0.5% 3.7% 34,924 43,213 703 5.1x 5.1x 5.0x 18.1x 13.2x 12.4x (0.2%) NA 39.0%

Intuit US 8,900 $247.13 48.1% 14.4% 17.1% $64,025 $63,105 $1,333 10.1x 9.1x 8.3x 35.5x 25.4x 22.5x 10.8% NA 36.0%

Average 7.3x 6.6x 6.0x 26.3x 17.9x 16.1x 10.7% 69.0% 32.2%

Median 6.6x 6.2x 5.8x 22.6x 16.6x 15.1x 7.8% 69.0% 34.7%



37

Public Comps – Human Capital ManagementShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

ADP US 57,000 $153.03 32.7% 6.4% 12.9% $66,664 $67,084 $2,789 5.0x 4.6x 4.3x 20.8x 19.0x 16.8x 9.9% NA 24.1%



Paycom US 3,050 181.73 83.7% 19.3% 26.2% 10,649 10,638 46 18.8x 14.9x 12.2x 55.7x 36.7x 29.2x 25.8% 84.3% 40.7%

Ultimate Software US 5,100 331.50 39.0% 9.2% 21.2% 10,385 10,235 162 9.0x 7.5x 6.3x NM 31.7x 25.6x 19.8% 65.4% 23.6%

Paylocity US 2,600 87.57 87.2% 12.7% 29.7% 4,634 4,530 104 11.2x 9.0x 7.5x NM 31.3x 25.0x 24.7% NA 28.8%

TriNet US 3,100 61.29 29.9% 4.6% 37.2% 4,301 4,432 282 1.3x 4.8x 4.3x 16.2x 11.9x 10.7x (73.5%) NA 40.0%

Benefitfocus US 1,450 49.12 103.0% 14.9% (11.0%) 1,574 1,621 191 6.3x 5.3x 4.6x NM NM 47.2x 18.0% NA 5.9%

Instructure US 1,219 46.73 7.7% 17.6% 20.8% 1,673 1,520 153 7.3x 5.9x 4.9x NM NM NM 22.6% NA (4.9%)

Upland Software US 375 35.10 47.1% (4.9%) 17.8% 758 900 16 6.8x 4.7x 4.6x 31.4x 13.0x 12.0x NA NA 36.4%

Solium CA 769 14.54 71.0% 70.2% 46.0% 825 742 96 7.1x 5.7x 5.0x NM 26.5x 20.9x NA NA 21.4%

WageWorks US 1,958 32.90 (37.3%) (36.9%) 9.3% 1,304 656 892 1.5x 1.3x 1.3x 7.2x 4.4x 4.1x NA NA 30.4%

Freelancer AU 390 0.47 36.8% 14.0% (6.6%) 214 190 23 5.2x 4.7x 4.1x NM NM NM 10.3% NA 2.6%

Average 8.5x 7.2x 6.1x 26.3x 28.7x 24.9x 11.4% 76.6% 22.6%

Median 7.1x 5.7x 4.9x 20.8x 28.9x 25.0x 21.2% 78.3% 24.1%



38

Public Comps – InfrastructureShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

VMware US 20,615 $171.81 30.4% 15.7% 16.0% $70,423 $71,816 $2,849 8.0x 7.3x 6.7x 26.7x 19.3x 16.2x 10.3% 87.8% 37.6%


Red Hat US 11,870 182.60 23.9% 26.7% 3.7% 32,276 30,866 1,926 9.5x 8.3x 7.1x 49.7x 29.8x 27.6x 14.9% NA 27.7%



Symantec US 11,830 22.49 (14.5%) 11.0% 7.9% 14,376 16,842 2,579 3.5x 3.4x 3.3x 16.9x 7.8x 7.3x 3.3% NA 43.7%

Micro Focus UK 14,800 24.88 (12.6%) 50.6% 29.5% 10,275 14,708 621 4.6x 4.2x 4.5x 14.2x 10.0x 9.9x NA NA 41.5%

Citrix US 8,200 105.50 14.7% (6.9%) 3.5% 13,897 14,592 1,202 4.9x 4.7x 4.5x 17.4x 13.3x 12.5x 3.8% NA 35.6%

Akamai Technologies US 7,519 69.66 3.3% (6.4%) 7.2% 11,355 11,023 1,892 4.1x 3.9x 3.6x 14.9x 9.4x 8.5x 4.7% NA 41.2%

F5 Networks US 4,484 168.14 13.2% (11.3%) 5.9% 9,994 8,862 1,133 4.1x 4.0x 3.8x 13.1x 10.2x 9.7x 2.6% NA 38.9%

Nutanix US 4,380 50.09 37.4% (17.3%) (2.7%) 8,973 8,451 966 6.8x 5.3x 4.1x NM NM 40.7x 28.7% NA (0.9%)

Juniper Networks US 9,283 27.08 5.5% (6.4%) (3.8%) 9,422 8,050 3,570 1.7x 1.8x 1.7x 10.1x 8.3x 7.8x (3.4%) NA 21.6%

Proofpoint US 2,613 118.09 10.2% (0.1%) 20.5% 6,536 6,305 232 8.8x 7.2x 6.0x NM 47.6x 35.5x 21.8% NA 15.2%


Trend Micro JP 5,970 49.74 (12.7%) (20.4%) (15.3%) 6,882 5,287 1,620 3.6x 3.5x 3.3x 11.2x 11.2x 10.4x 4.1% NA 31.0%

Pure Storage US 2,650 20.48 (5.5%) (22.9%) 14.2% 4,948 4,248 1,197 3.1x 2.4x 2.0x NM 20.9x 15.2x 29.3% NA 11.5%

LogMeIn US 3,515 79.44 (31.3%) (6.3%) (12.7%) 4,039 4,090 149 3.4x 3.3x 3.1x 11.6x 10.0x 10.2x 4.3% NA 32.6%

FireEye US 3,200 16.76 1.0% 3.6% (3.8%) 3,348 3,194 1,117 3.8x 3.6x 3.4x NM 25.4x 21.2x 6.7% NA 14.2%

Qualys US 1,117 83.63 12.9% (8.6%) 1.6% 3,293 3,006 289 10.8x 9.3x 8.0x 36.5x 24.5x 20.4x 15.4% NA 38.1%


Commvault US 2,839 67.39 29.5% (1.5%) 9.5% 3,093 2,635 458 3.7x 3.5x 3.2x 58.6x 17.3x 13.2x 6.4% NA 20.1%

Software AG DE 4,763 36.61 (30.7%) (28.1%) (2.5%) 2,709 2,522 547 2.5x 2.5x 2.4x 8.7x 8.3x 7.9x 3.4% NA 29.5%

NetScout Systems US 3,019 27.37 3.1% 5.1% 4.9% 2,130 2,255 475 2.5x 2.4x 2.3x 22.1x NA NA 2.6% NA 0.0%

Sophos UK 3,362 4.36 (36.6%) (36.9%) 5.9% 2,094 2,228 171 3.2x 3.0x 2.7x 57.0x 15.8x 14.2x NA NA 19.3%

Rapid7 US 1,218 46.03 74.3% 22.2% 26.5% 2,177 2,093 259 8.6x 6.8x 5.6x NM NM 70.6x 26.3% NA 3.4%

SecureWorks US 2,555 22.19 124.8% 75.6% 10.3% 1,813 1,698 116 3.3x 3.0x 2.7x NM NM 56.6x NA NA 3.5%

Progress Software US 1,412 36.78 (21.5%) (8.6%) 3.3% 1,661 1,637 140 4.1x 4.3x 4.2x 11.7x 9.0x 9.0x (3.5%) NA 47.5%

Talend FR 1,068 47.90 1.7% (24.9%) 31.2% 1,441 1,408 34 6.9x 5.7x 4.6x NM NM NM 21.6% NA (7.5%)

A10 Networks US 835 6.98 11.1% 0.4% 7.1% 515 387 128 1.7x 1.6x 1.5x NM 56.9x 14.5x 3.1% NA 2.8%

Brightcove US 495 8.87 29.5% 8.2% 18.0% 325 296 29 1.8x 1.7x 1.6x NM 50.6x 21.9x 2.9% NA 3.5%

Average 6.5x 5.5x 4.7x 23.8x 27.7x 24.2x 13.1% 84.2% 21.7%

Median 4.1x 4.1x 3.9x 15.9x 19.3x 15.7x 6.7% 83.7% 20.8%



39

Public Comps – IT SecurityShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

Cisco US 74,200 $51.77 15.6% 10.3% 13.2% $227,893 $213,168 $40,383 4.2x 4.1x 3.9x 14.0x 11.4x 10.9x 3.3% NA 35.7%

Verisign US 900 178.04 53.5% 11.9% 7.1% 21,314 21,829 1,270 18.0x 17.8x 17.0x 26.8x 24.4x 23.7x 1.1% 84.9% 72.8%

Palo Alto Networks US 5,856 246.27 42.0% 7.4% 18.6% 23,084 21,809 2,830 8.4x 7.0x 5.9x NM 25.9x 21.0x 20.3% NA 27.0%


Check Point Software IL 4,576 122.30 17.7% 5.6% 11.5% 19,105 17,353 1,752 9.1x 8.7x 8.4x 18.6x 16.7x 15.9x 4.2% 89.6% 51.9%

Symantec US 11,830 22.49 (14.5%) 11.0% 7.9% 14,376 16,842 2,579 3.5x 3.4x 3.3x 16.9x 7.8x 7.3x 3.3% NA 43.7%

Fortinet US 5,845 86.79 72.0% 7.3% 17.7% 14,809 13,160 1,650 7.3x 6.3x 5.6x 45.9x 24.1x 20.9x 15.9% NA 26.1%

Okta US 1,176 84.88 120.0% 40.4% 7.5% 9,374 9,096 546 25.0x 17.5x 13.4x NM NM NM NA NA (4.7%)

Proofpoint US 2,613 118.09 10.2% (0.1%) 20.5% 6,536 6,305 232 8.8x 7.2x 6.0x NM 47.6x 35.5x 21.8% NA 15.2%

Gemalto NL 15,000 57.97 (3.8%) (0.2%) 0.2% 5,259 5,890 300 1.7x 1.7x 1.6x 14.3x 9.6x 8.9x 3.2% NA 17.4%

Trend Micro JP 5,970 49.74 (12.7%) (20.4%) (15.3%) 6,882 5,287 1,620 3.6x 3.5x 3.3x 11.2x 11.2x 10.4x 4.1% NA 31.0%

Verint US 5,700 53.25 36.9% 8.2% 13.4% 3,476 3,864 406 3.2x 2.9x 2.7x 23.5x 11.8x 10.4x NA NA 24.5%

CyberArk IL 1,015 109.77 121.7% 49.0% 30.5% 3,958 3,531 427 10.3x 8.5x 7.2x 61.6x 33.5x 27.0x 20.7% NA 25.5%

FireEye US 3,200 16.76 1.0% 3.6% (3.8%) 3,348 3,194 1,117 3.8x 3.6x 3.4x NM 25.4x 21.2x 6.7% NA 14.2%

Qualys US 1,117 83.63 12.9% (8.6%) 1.6% 3,293 3,006 289 10.8x 9.3x 8.0x 36.5x 24.5x 20.4x 15.4% NA 38.1%


Rapid7 US 1,218 46.03 74.3% 22.2% 26.5% 2,177 2,093 259 8.6x 6.8x 5.6x NM NM 70.6x 26.3% NA 3.4%

Secureworks US 2,555 22.19 124.8% 75.6% 10.3% 1,813 1,698 116 3.3x 3.0x 2.7x NM NM 56.6x NA NA 3.5%

Varonis Systems US 1,460 56.96 1.4% (20.0%) 2.3% 1,685 1,526 159 5.6x 5.1x 4.5x NM NM NM 11.2% NA 3.3%

Cheetah Mobile CN 2,465 7.30 (48.7%) (30.3%) 9.6% 1,023 622 527 0.9x 0.8x 0.7x 5.5x 5.5x 5.4x NA NA 14.1%

Zix US 233 9.03 123.0% 66.3% 30.3% 489 465 24 6.8x 6.2x NA 32.6x 18.7x NA NA NA 33.2%

MobileIron US 889 5.06 5.4% 4.3% 4.3% 540 435 106 2.3x 2.1x 1.9x NM NM 22.2x 9.4% NA 2.0%

F-Secure FI 1,666 2.69 (37.1%) (33.0%) (9.1%) 424 434 32 2.0x 1.7x 1.6x 43.3x 24.6x 13.0x 15.1% NA 7.0%

Absolute Software CA 479 6.96 38.8% 13.9% 11.0% 282 247 34 2.6x 2.5x 2.2x 25.7x 13.4x 12.1x 4.5% NA 18.4%

Average 7.1x 6.1x 5.3x 26.9x 22.9x 23.3x 12.1% 86.1% 22.3%

Median 6.2x 5.6x 4.5x 24.6x 24.1x 20.9x 11.2% 84.9% 17.9%



40

Public Comps – Marketing ApplicationShare

Price

Market


CY

Revenue

Growth



CY19E

Margins

SAP DE 96,498 $107.11 1.5% (12.4%) 0.0% $127,842 $130,858 $10,390 4.6x 4.2x 3.9x 14.9x 12.5x 11.2x 9.2% NA 34.0%

Five9 US 983 53.04 74.7% 10.9% 10.2% 3,143 3,059 292 11.9x 10.2x 8.7x NM 60.9x 47.4x 16.8% NA 16.7%

LivePerson US 1,106 27.96 93.5% 5.9% 22.4% 1,788 1,721 66 6.9x 6.0x 5.0x NM NM 58.6x 15.3% 74.6% 3.9%

SDL UK 3,700 7.74 34.8% 20.1% 7.7% 702 672 30 1.8x 1.4x 1.3x 17.6x 12.4x 11.2x NA NA 11.0%

ChannelAdvisor US 730 12.93 46.1% (0.2%) 22.3% 354 310 47 2.4x 2.2x 2.1x NM 22.5x 17.5x 4.9% 78.5% 10.0%

Average 5.5x 4.8x 4.2x 16.2x 27.1x 29.2x 11.6% 76.6% 15.1%

Median 4.6x 4.2x 3.9x 16.2x 17.5x 17.5x 12.3% 76.6% 11.0%



41

Public Comps – StorageShare

Price

Market


CY

Revenue

Growth



CY19E

Margins


Amazon US 647,500 1,639.83 8.4% (15.2%) 0.1% 805,489 813,528 41,250 3.5x 3.0x 2.5x 29.3x 19.2x 14.9x 18.1% 42.0% 15.4%

Alphabet US 98,771 1,126.55 2.0% (9.6%) 4.3% 780,846 675,718 109,140 4.9x 4.1x 3.6x 16.7x 11.4x 9.9x 19.5% 55.3% 36.2%

Verizon US 144,500 56.92 19.2% 4.2% 3.4% 235,196 347,956 2,745 2.7x 2.6x 2.6x 6.6x 7.2x 7.0x 1.1% 57.6% 36.7%

Oracle US 137,000 52.13 2.9% 7.2% 5.3% 187,090 196,475 49,391 4.9x 4.9x 4.8x 12.4x 10.6x 10.2x 0.3% NA 46.3%

IBM US 350,600 138.13 (11.4%) (5.8%) 2.9% 122,917 156,937 12,006 2.0x 2.0x 2.0x 9.4x 8.4x 8.2x 0.3% NA 23.8%


CenturyLink US 46,000 13.19 (25.4%) (41.4%) (12.6%) 14,254 49,827 488 2.1x 2.2x 2.2x 5.9x 5.5x 5.5x (3.1%) NA 39.9%

Iron Mountain US 26,200 35.42 12.6% (2.2%) (2.3%) 10,143 18,193 165 6.9x 4.2x 4.1x 12.6x 12.2x 11.5x 64.6% NA 34.6%

NetApp US 10,300 65.20 7.7% (24.1%) 3.1% 16,103 13,755 4,054 2.2x 2.2x 2.1x 10.5x 8.3x 7.5x 2.4% NA 26.0%

Dropbox US 2,323 23.86 NA (12.2%) (1.2%) 9,813 8,890 1,089 6.4x 5.4x 4.7x NM 24.3x 19.3x 17.8% NA 22.3%

Nutanix US 4,380 50.09 37.4% (17.3%) (2.7%) 8,973 8,451 966 6.8x 5.3x 4.1x NM NM 40.7x 28.7% NA (0.9%)

Box US 1,968 20.24 (15.9%) (23.9%) (0.3%) 2,921 2,816 218 4.6x 4.0x 3.5x NM 60.5x 35.0x 15.4% NA 6.6%

CommVault US 2,839 67.39 29.5% (1.5%) 9.5% 3,093 2,635 458 3.7x 3.5x 3.2x 58.6x 17.3x 13.2x 6.4% NA 20.1%

Carbonite US 954 23.27 (17.3%) (44.3%) (16.4%) 804 724 198 2.4x 1.5x 1.3x 19.0x 5.5x 4.5x 65.4% NA 26.7%

Brightcove US 495 8.87 29.5% 8.2% 18.0% 325 296 29 1.8x 1.7x 1.6x NM 50.6x 21.9x 2.9% NA 3.5%

Average 4.5x 3.8x 3.4x 18.0x 19.2x 15.5x 16.6% 51.6% 25.3%

Median 4.2x 3.7x 3.3x 12.6x 12.2x 12.2x 9.8% 55.3% 25.5%



42




SaaS CEO Commentary


1

2

3

4

6



5 Key SaaS Metrics


Category7

43

Private Placement Sold to Sold to Sold to Sold to Sold to

Sold to Sold to Private Placement Sold toSold to Private Placement

Private Placement Private Placement Sold to Sold to Sold to Sold to

Private placement Sold to Private Placement Sold to Sold to Sold to

GP Bullhound’s Recent Activity in the Software Space

44

Authors

OKAN INALTAY

[email protected]

MATT FINEGOLD

[email protected]

PER ROMAN

Managing [email protected]

JONATHAN CANTWELL

Executive [email protected]

ERIC CROWLEY

Vice [email protected]

MARVIN MAERZ


CONNOR SMITH

[email protected]

BRANDON OVERMYER


mailto:[email protected]








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