Equity Research

Technology, Media, and Communications | Communications Equipment

July 12, 2016 Dmitry Netis +1 212 237 2714

dnetis@williamblair.com

Unified Communications ShoreTel, Inc.

SHOR (NASDAQ) $7.41
Trend Spotter: Highlights From Call Center Week 2016 Conference Stock Rating: Outperform
Company Profile: Aggressive Growth

Summary: We attended an annual Call Center Week (CCW) conference in Las Vegas. As
with last year, the sheer number of up-and-coming companies developing software for BroadSoft, Inc.
contact center applications was overwhelming to see. The industry continues to witness a BSFT (NASDAQ) $43.41
Stock Rating: Outperform
disproportional amount of M&A and last year was particularly notable with several high- Company Profile: Aggressive Growth
profile acquisitions (detailed in exhibit 1 on page 3). Our main conclusions from the CCW
2016 exhibition and vendor matrix of interesting private companies are presented below.
Interactive Intelligence Group, Inc.
ININ (NASDAQ) $42.72
1. Only two public cloud contact center (CCaaS) companies left standing The Stock Rating: Market Perform
pending acquisition of inContact (SAAS $13.86) by NICE (NICE $65.01; Outperform) Company Profile: Aggressive Growth
is changing the competitive landscape in a meaningful way. Following the takeout,
there would be only two public cloud contact center software vendors still standing:
8x8, Inc.
Interactive Intelligence and Five9 (FIVN $12.11). Companies vividly improving EGHT (NASDAQ) $14.90
their contact center functionality, while focusing on a broader UC market, are 8x8, Stock Rating: Outperform
BroadSoft, and ShoreTel (ranked in that order). Company Profile: Aggressive Growth

2. But no shortage of competition from privates. The sheer number of up-and-

coming companies developing software for contact center applications was
overwhelming to see. We counted over 40 vendors3CLogic, BrightPattern,
ConnectFirst, Evolve IP, Intelecom, LiveOps Cloud, MPL Systems, NewVoiceMedia,
Talkdesk, and Vocalcom are worth keeping an eye on.

3. Does CRM need to own a voice channel? There is a growing belief that CRM
vendors with self-service portals and digital customer experience management tools,
will need to own a voice channel (i.e., call routing ACD, IVR). The floodgate on
acquisitions is likely to open once one of the CRM vendors makes a run on a cloud
contact center vendor. Among CCaaS companies best positioned, in our view, are 8x8,
Five9, and Interactive Intelligence.

Coverage implications: In terms of our coverage, while we continue to be impressed by

Interactive Intelligences product set and strategy, partners note PureCloud likely
needs another release to be a complete solution. Among features identified as incomplete
were real-time speech analytics, video, ability to connect to private network (such as
MPLS), and collaboration/UC. Transera/BroadSoft is exploring a channel opportunity
with some 200-plus service providers, with a number of 1,000-plus agent deals in the
works. 8x8 is elevating its brand equity in the contact center space with new real-time
analytics, quality management, and line-of-business release slated for early fall,
meaningful traction of VO/VCC bundle with midmarket customers, and closely knit
relationships with NetSuite (N $75.85; Outperform), Zendesk (ZEN $28.58; Outperform),
and Teleopti. While ShoreTel has acquired cloud contact center and communications-
platform-as-a-service (CPaaS) via Corvisa, we are yet to witness any meaningful action.

Please refer to important disclosures on pages 8-9. Analyst certification is on page 8.

William Blair or an affiliate does and seeks to do business with companies covered in its research reports. As a
result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this
report. Investors should consider this report as a single factor in making an investment decision.
 William Blair

Industry Thoughts

Only two public cloud contact center (CCaaS) companies left standing The pending acquisition of inContact by
NICE is changing the competitive landscape in a meaningful way. After the takeout, there would be only two public cloud
contact center software vendors still standing: Interactive Intelligence and Five9. Companies vividly improving their
contact center functionality while focusing on a broader UC market are 8x8, BroadSoft, and ShoreTel (ranked in that
order). In our coverage, Interactives PureCloud hits on all of these pain points via a very attractively priced bundle
backed by Amazons (AMZN $753.78; Outperform) AWS security and reliability. Similarly, 8x8 offers an integrated
offering with strong network back end, global presence, and analytics. 8x8 has a big contact center product release
upcoming in the September/October time frame, focusing on real-time analytics, customer journey, quality management
(call recording), and line-of-business.

But no shortage of competition from privates. The sheer number of up-and-coming companies developing software
for contact center applications was overwhelming to see. We counted over 40 vendors compete based on price,
functionality, security, reliability and more. 3CLogic, BrightPattern, ConnectFirst, Evolve IP, Intelecom, LiveOps Cloud,
MPL Systems, NewVoiceMedia, Talkdesk, and Vocalcom are worth keeping an eye on.

Vast number of specialization verticals. Among those companies with specialization verticals in customer engagement
and customer service are: 1) omnichannel (voice, chat, Web, mobile, social) contact center software and UC/collaboration;
2) customer experience management (CEM) and service helpdesks; 3) customer relationship management (CRM),
customer journey mapping, and customer-focused analytics tools; 4) quality management, speech processing, and
workforce management; and 5) virtual reality and machine-driven customer service. For more comprehensive view of the
industry, see the vendor matrix in exhibit 4.

Verint seems to take a pass on contact center. Conversations with trade show representatives suggest that Verint
(VRNT $33.21; Outperform) has no interest in entering the cloud contact center software market, partly given its
unwavering strategic focus on KANA (customer service experience). The question seems unavoidable in the context of
inContacts acquisition by NICE last month and the changing competitive and partnership landscape. We delved into it in
our May 18 note: NICE Job, Jarman; Acquisition of inContact by NICE Leaves Two CCaaS PurePlays Standing. Both NICE
and Verint are covered by our colleague Jonathan Ho.

Does CRM need to own a voice channel? There is a growing belief that CRM vendors with self-service portals and digital
customer experience management tools will need to own a voice channel (i.e., call routing ACD, IVR). Currently, nearly all
cloud contact center companies integrate with one or more CRM vendorssalesforce.com (CRM $81.66; Outperform),
ServiceNow (NOW $68.85; Outperform), Oracle/RightNow (ORCL $40.78; Market Perform), and Zendesk. The floodgate
on acquisitions is likely to open once one of them makes a run on cloud contact center vendor. Among CCaaS companies
best positioned, in our view, are 8x8, Five9, and Interactive Intelligence.

CPaaS and APIs moving squarely into contact center. If there was ever any doubt of CPaaSs role in the contact center
market or as a competitor to contact center application vendors, it should be laid to rest with CPaaS platforms from other
market leaders in the space being used by companies like LiveOps and RedBeacon (acquired and used by Home Depot),
which built their entire contact center solutions on their CPaaS APIs. The Zendesk Voice offering also uses the market
leaders platform (supplanting its partnerships with Five9 and 8x8). A twist is Interactives PureCloud, which is an
application today, but its public API architecture could enable it to become a contact center platform in the future. Other
contact center platforms with APIs include Transera (BroadSoft) and Corvisa (ShoreTel).

Customer journey enhances customer engagement. The traditional contact center market is rapidly evolving under the
pressure of the omnichannel transformation and the related rise in the importance of customer experience (CX). Centers
of customer engagementthe contact center, web, mobile, social, marketing, sales, front office, and back officeare all
combining into a single customer engagement hub. This hub spans multipleand previously siloedtouchpoints, to
manage the end-to-end customer journey. The new approach engages customers across all touchpoints and channels as
they start, pause, and resume their journeys over time. The concept of customer journey includes cross-touchpoint activity
(tracking interactions from mobile to web to chat to voice-enabled customer care, for example) and proactive notifications
(reminders and status updates) to reshape customer behavior and lower customer effort, thereby improving customer
experience and improving companys efficiency via reduces churn and add-on sales. Some of the leading vendors in that

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 William Blair

area are Genesys, Interactive Intelligence, Cisco (partnership with Altocloud) (CSCO $29.43; Outperform), Avaya, and 8x8,
with many private companies also focused on this area.

Conversational commerce redefining customer experience. The increasing popularity of messaging has paved the way
for a new trend named conversational commerce. Coined in 2015 by Chris Messina, Ubers lead developer, conversational
commerce by his definition is a way of using chat and messaging apps (such as Facebook Messenger or Slack), and other
natural language interfaces (which may include voice recognition software such as Siri or Cortana) to interact with people,
brands, or services in a bidirectional, asynchronous messaging context. Conversational commerce allows customers to
speak with brandsthrough humans, bots, or a mix of bothwith highly personalized service until the end of each sales
transaction. While email is asynchronous by nature and chat synchronous, messaging has the potential to be both when
both brands and customers are online at the same time. Conversations can be as immediate and real-time as the
customer wants it to be. Simply put, customers are embracing their favorite messaging apps not only to chat with friends
but also to connect with brands in a personal and efficient way, and brands are rising to the challenge.

Several companies embracing conversational commerce with great success. Uber, for example, allows customers to
order a ride through the Facebook Messenger app and complete the entire transaction without ever leaving the app (and,
therefore, the conversation). Chinese-based WeChat is leading the migration from messaging to e-commerce. Ordering
pizza, buying a concert ticket, or checking the weather forecast all through a WeChat app is much less cumbersome than
having consumers log into three different apps and have them do three times as much work and touches. WeChat already
has customer information like shipping address and a form of payment, so interacting though one app defeats the purpose
of consumers installing a separate app for each online store or business. While a long shot at conversational commerce
being defined here, BroadSofts Project Tempo aims at developing a workstream messaging application with Web APIs
that tie in multiple enterprise workflows to create a single app experience and improve business workflow and customer
experience.

Exhibit 1: Recent Transactions in Cloud Contact Center/Workforce Optimization/CPaaS Sector

Trans. Trans. Amt 2016E Rev.

Aquirer Target EV/Sales T&M Product Area
Date ($ mil.) ($ mil.; est.)
Communications-as-a-Platform (CPaaS); voice/SMS messaging
Public Offering / IPO Twilio Jun-16 $ 1,050.0 4.4x $ 240.0
APIs for contact centers
Communications-as-a-Platform (CPaaS); voice/SMS messaging
Vonage Nexmo Jun-16 $ 250.0 2.8x $ 90.0
APIs for contact centers
Cloud contact center (ACD, IVR, inbound/outbound call routing);
NICE Ltd inContact May-16 $ 940.0 3.6x $ 262.0
Yields a multiple of 5.2x 2016 CC software revenue (~$180 mil.)

BroadSoft, Inc. Transera Feb-16 $ 19.8 2.5x $ 8.0 Cloud contact center

Cloud contact center, communications-as-a-service (CPaaS),

ShoreTel, Inc. Corvisa Dec-15 $ 8.5 3.4x $ 2.5
and SIP trunking managed service provider
Marlin Equity Partners / Cloud contact center (omnichannel); ~300+ customers; Assume
LiveOps Cloud Dec-15 - - $ 60.0
Presidio Partners $40M rev. runrate in 2013 (growing w/ CC market)

West Corp. Magnetic North Nov-15 $ 39.0 3.9x $ 10.0 Cloud contact center (U.K. based)

IntelePeer Advantone Oct-15 - - - Cloud contact center (ACD, IVR, predictive dialer)

8x8, Inc. Quality Software Jun-15 $ 4.3 - pre-revenue Cloud-based quality management (QM) software

8x8, Inc. DXI, Inc. May-15 $ 25.5 1.7x $ 15.0 Outbound contact center, analytics, predictive dialing
Workforce optimization, call recording, and quality and
Avaya, Inc. KnoahSoft 2015 - - -
performance management software
Source: William Blair & Company, L.L.C.

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Exhibit 2: Contact Center LandscapeCloud (CCaaS) and Premise Software

Contact Center and VoIP/UC Specialists On-Premise CC Vendors CSPs

< 100 agents 100-500 agents > 500 agents > 1,000 agents SMB / SME / Large Enterprise

Source: William Blair & Company, L.L.C.

Additional Company Highlights

8x8 (Outperform)

We believe 8x8s contact center suite is becoming increasingly relevant in the market. The VCC suite has been improved to
bring out inbound and outbound call routing capabilities and enhanced analytics, and this fall will have quality
management, call recording, agent performance management tools, speech recognition, and customer journey capabilities.
VCC represents about 20% of overall service revenue.

The biggest knock remains brand recognition in the contact center market given 8x8s historical focus on business VoIP
services. 8x8 is dispelling these fears by means of innovation and completion of its VCC product vision. In addition, the
partnership with Teleopti, a privately held developer of workforce management tools, continues to grow nicely. Based in
Sweden, Teleopti entered the U.S. market four years ago, focusing mainly on the large enterprise vertical, having an 800-
agent seat count on average. Since the partnership was announced nearly three years ago, it has generated many sizable
opportunities.

Stock thoughtsreiterate Outperform. With the potential for revenue growth and earnings to move higher as
enterprise sales ramp up, we believe the valuation is in reasonably attractive territory at 4.2 times calendar 2017 revenue,
versus the core SaaS group median of 4.5 times. Given steady expansion of organic growth, net income (EPS growth of
20% in fiscal 2017), and a differentiated pure cloud product offering with fully integrated PBX, contact center, web/video,
and analytics, we believe 8x8 deserves a premium multiple. We reiterate our Outperform rating.

BroadSoft (Outperform)

We got a closer look at Transera, which had exhibited at CCW. Transera can blend with multiple call controls
(management terms this as meta contact center), which makes it media steam/call control independent.

Transera is currently exploring a channel opportunity with some 200-plus service providers, with a number of 1,000-plus
agent deals in the works. During our May NDR, management highlighted pent-up demand for Transeras capabilities
from its carrier customers and to expect more meaningful revenue contribution in the second half of 2017.

In the meantime (while technology integration is ongoing), the acquired salesforce will continue to sell the product on a
direct-to-enterprise basis. At the time of acquisition in February of this year, the company disclosed several large direct
customers, among which are American Red Cross (also BroadSofts customer via Verizon VCE channel), Aon, Guthy-
Renker (with the largest number of agents on Transera platform), Office Depot (with 3,000 agents and 34 contact center
sites), Rosetta Stone, and TiVo.

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 William Blair

Stock thoughtsreiterate Outperform. We see further upward earnings revisions given pent-up license revenue
recognition from nine transformation projects and strong leverage in the model. With valuation highly attractive at 16
times 2017 earnings excluding $5.18 in cash, we recommend investors accumulate BSFT shares. Given the line of sight to
20% operating margins and average growth of 20% over the next two years, we believe a 20-times multiple plus cash is
appropriate.

Interactive Intelligence (Market Perform)

While we continue to be impressed by Interactive Intelligences product set and strategy, partners note that PureCloud
likely needs another release before the solution is complete and most important customer features are addressed. Among
PureCloud features identified as incomplete were real-time speech analytics, video, ability to connect to private network
(such as MPLS), and collaboration/UC.

We are told that real-time speech analytics will be fully addressed with the December release. Enterprise-grade multipoint
videoof similar capability as in the premise-based CIC productis still a gaping hole with PureCloud. CIC uses Vidyo as
a video partner compared with largely point-to-point video in PureCloud (from the acquisition of a small company in
India, Customer360). We expect the Vidyo relationship will continue with PureCloud. The ability to connect to private
enterprise network, such MPLS (or SD-WAN in the future), is an important feature for larger enterprises. It remains
unclear to us at this juncture whether that option will be rolled out in the near future.

On the positive side, Amazon AWS is a critical component of PureCloud strategy. If there is ever doubt in an enterprise on
whether or not to put its customer data in the cloud, AWS is the safest, most resilient, and secure bet there is. Customers
trust a global provider like Amazon, which helps Interactives cause hugely, and allows the customer transition to cloud to
be much more hassle-free.

In addition, PureCloud is the only CCaaS vendor that solved the real-time voice delivered from Amazon AWS. PureCloud
was initially launched with an on-site edge server to support real-time communications. With the June release, the edge
server has now been virtualized and hosted directly from AWS over a public internet, paving the way for use of browser-
based WebRTC softphones.

Our customer and partner interactions continue to point out that Cisco is getting antsy watching Interactive make waves
in both the SMB and large enterprise segment with its integrated UC, contact center, and collaborate offering (competing
with Ciscos UCCX offering in SMB as well UCCE in the enterprise space). By the same token, we are uncertain how much
strategic importance Cisco places on the contact center vertical over some other functional priorities and whether or not
its new collaboration, messaging, open APIs, and cloud PBX platform Spark aims to address some basic features of the
contact center.

Stock thoughtsmaintain Market Perform. While the company is facing a massive opportunity and continues to take
share in the market, given its far-reaching product set and expanded delivery modelpremise (CIC), single-tenant cloud
(CAAS), or multitenant cloud (PureCloud)the operating model remains in the midst of a critical transition, which mutes
top-line growth and profitability, causing us to remain neutral on the stock. We would recalibrate our stance if PureCloud
began to offset the potentially declining revenue trend in CAAS, CIC, and professional services, and/or the margin
trajectory and financial leverage exhibited more clarity. As a result, we believe the stock is fairly valued (trading in line
with peers at 2.6 times EV/recurring 2017 revenue) at current stock levels, and we maintain our Market Perform rating.

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 William Blair

Exhibit 3: CCaaS Comparable Peer Group and Valuation

Comparable Valuation Table

$mn except per Rating/ 7/7/16 Market Shares Net Enterp. Revenue Y/Y Rev. Growth EPS ($) EV / REV P/E
share data TICKER Profile PRICE Cap ($) Out Cash Value ($) CY16E CY17E CY16E CY17E CY16E CY17E CY16E CY17E CY16E CY17E

CCaaS and CC Software

8x8, Inc. EGHT O/A $14.52 1,332 92 159 1,172 240 288 23% 20% 0.17 0.26 4.9x 4.1x 87.0x 56.2x
BroadSoft Inc. BSFT O/A $40.91 1,213 30 154 1,060 336 388 21% 15% 2.00 2.46 3.2x 2.7x 20.4x 16.6x
Five9, Inc. FIVN NC $11.86 609 51 13 597 153 181 19% 18% (0.21) (0.09) 3.9x 3.3x NM NM
inContact, Inc. SAAS NC $13.84 862 62 3 858 262 304 18% 16% (0.25) (0.22) 3.3x 2.8x NM NM
Interactive Intelligence Group, Inc. ININ O/A $40.39 889 22 78 810 430 478 10% 11% (0.12) 0.15 1.9x 1.7x NM NM
Microsoft Corp. MSFT NC $51.38 410,269 7,985 59,158 351,111 93,629 98,533 1% 5% 2.78 3.06 3.8x 3.6x 18.5x 16.8x
Mitel Networks Corp. MITL NC $6.02 728 121 (524) 1,251 1,188 2,374 3% 100% 0.65 0.86 1.1x 0.5x 9.3x 7.0x
NICE Systems Ltd. NICE O/A $63.21 3,846 61 350 3,496 1,006 1,165 9% 16% 3.49 3.79 3.5x 3.0x 18.1x 16.7x
LivePerson, Inc. LPSN NC $6.96 392 56 49 344 232 252 -3% 8% 0.08 0.19 1.5x 1.4x 92.8x 36.2x
RingCentral, Inc. RNG O/A $20.38 1,470 72 51 1,418 363 445 23% 22% 0.05 0.19 3.9x 3.2x NM 106.2x
ShoreTel, Inc. SHOR O / A $6.75 453 67 95 358 354 363 -2% 2% (0.02) 0.15 1.0x 1.0x NM 44.5x
Verint Systems Inc. VRNT O / C $31.94 1,989 62 (359) 2,347 1,122 1,181 -1% 5% 3.04 3.28 2.1x 2.0x 10.5x 9.7x
West Corporation WSTC O / E $19.61 1,659 85 (3,170) 4,829 2,310 2,376 1% 3% 3.03 3.19 2.1x 2.0x 6.5x 6.2x
Zendesk, Inc. ZEN O / A $27.14 1,962 72 254 1,708 303 403 45% 33% (0.30) (0.18) 5.6x 4.2x NM NM
MEAN 3.0x 2.5x 32.9x 31.6x
MEDIAN 3.2x 2.8x 18.3x 16.7x
Companies in bold represent stocks under Dmitry Netis' coverage
Investment Stock Rating: O=Outperform, M=Market Perform, U=Underperform, NR=Not Rated (the stock is not rated, but is covered), NC=Not Covered
Company Profile: E=Established Growth, C=Core Growth, A=Aggressive Growth
Sources: Factset, company reports and William Blair & Company, L.L.C. estimates

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Exhibit 4: Here Come the Privates 2016 Edition

Cloud Quality Mgmt Lead Agent eLearning/
Cloud PBX/ IVR/ Speech Speech/ Call Workforce Video/ Customer
- - Contact Monitoring APIs/ CPaaS Generation/ Analytics/ Agent
UC Recognition Analytics Management WebRTC Engagement
Center Recording Gamification Monitoring Training

3C Logic

AireContact

Altocloud

Aspect

Axonify

Bright Pattern

CafeX

Calabrio

CallFire

CallTools.com

CallMiner

Collab

ComputerTalk

Dialogtech

Connect First

Content Guru

DialConnection

Evolve IP

Eptica

Fonolo

Genesys

Injixo

Invoca

InsideSales.com

Intelecom

IntelePeer

Intradiem

iTouchVision

Jacada

LiveOps Cloud

LoxySoft

LiveVox

Monet Software

MPL Systems

Noble Systems

Nuxiba

NewVoiceMedia

Nextiva

Pipkins

PlumVoice

Plivo

Respoke

RingDNA

SightCall

SmartAction

Sinch

Teleopti

Fuze

Talkdesk

VanillaSoft

Vidyo

Vivocha

Vocalcom

VoiceBase

Ytel

Source: William Blair & Company, L.L.C.

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IMPORTANT DISCLOSURES
William Blair or an affiliate is a market maker in the security of 8x8, Inc. and BroadSoft, Inc. and Interactive Intelligence Group, Inc. and ShoreTel,
Inc.

William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from 8x8, Inc. and BroadSoft, Inc.
and Interactive Intelligence Group, Inc. and ShoreTel, Inc. within the next three months.

Additional information is available upon request.

This report is available in electronic form to registered users via R*Docs at www.rdocs.com or www.williamblair.com.

Please contact us at +1 800 621 0687 or consult williamblair.com/Research-and-Insights/Equity-Research/Coverage.aspx for all disclosures.

Dmitry Netis attests that 1) all of the views expressed in this research report accurately reflect his/her personal views about any and all of the
securities and companies covered by this report, and 2) no part of his/her compensation was, is, or will be related, directly or indirectly, to the
specific recommendations or views expressed by him/her in this report. We seek to update our research as appropriate, but various regulations
may prohibit us from doing so. Other than certain periodical industry reports, the majority of reports are published at irregular intervals as deemed
appropriate by the analyst. In addition, the analyst has not received compensation from any subject company in the past 12 months.

DOW JONES: 18,226.93

S&P 500: 2,137.16
NASDAQ: 4,988.64

ShoreTel, Inc. (SHOR) BroadSoft, Inc. (BSFT)

Jul 05,2013 - Jul 05,2016 Previous Close: $6.62 Jul 05,2013 - Jul 05,2016 Previous Close: $41.45

$45

$10

$40
$9

$8 $35

$7

$30

$6

$25
$5

$4 $20

Jan-14 Jan-15 Jan-16 Jan-14 Jan-15 Jan-16

Sou rce : FactSet an d William Blair Le ge nd: I = In itia tio n, @ = An alyst Cha ng e, @NA = No Re co mmen datio n Ch an ge , tg _price = Price Ta rge t Sou rce : FactSet an d William Blair Le ge nd: I = In itia tio n, @ = An alyst Cha ng e, @NA = No Re co mmen datio n Ch an ge , tg _price = Price Ta rge t

Interactive Intelligence Group, Inc. (ININ) 8x8, Inc. (EGHT)

Jul 05,2013 - Jul 05,2016 Previous Close: $40.40 Jul 05,2013 - Jul 05,2016 Previous Close: $14.45
$15

$80
Date: 5 /3 0/2 015 $14
rec_n ame: M
tg_ price : 0 .00
$70 $13

Date: 5 /2 0/2 015

rec_n ame: R
$12
tg_ price : @NA
$60
Date: 2 /2 4/2 015 $11
rec_n ame: I-M
tg_ price : @NA
$50 $10

$9
$40
$8

$30 $7

$6
$20

Jan-14 Jan-15 Jan-16 Jan-14 Jan-15 Jan-16

Sou rce : FactSet an d William Blair Le ge nd: I = In itia tio n, @ = An alyst Cha ng e, @NA = No Re co mmen datio n Ch an ge , tg _price = Price Ta rge t Sou rce : FactSet an d William Blair Le ge nd: I = In itia tio n, @ = An alyst Cha ng e, @NA = No Re co mmen datio n Ch an ge , tg _price = Price Ta rge t

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 William Blair

Current Rating Distribution (as of 06/30/16)

Coverage Universe Percent Inv. Banking Relationships* Percent

Outperform (Buy) 63 Outperform (Buy) 11

Market Perform (Hold) 36 Market Perform (Hold) 3
Underperform (Sell) 1 Underperform (Sell) 0

*Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has
received compensation for investment banking services within the past 12 months.

The compensation of the research analyst is based on a variety of factors, including performance of his or her stock recommendations; contributions
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competitive factors.

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