Global Software Market Perspectives

Global Software Market Perspectives
Q1 2018
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
1 Key Sector Takeaways
2 Recent Software Transaction Trends
3 Public Market SaaS Analyses
4 Key SaaS Metrics
5 SaaS CEO Commentary
6 Appendix A: GP Bullhound SaaS Index
7 Appendix B: Software Public Comps by Category
Appendix C: GP Bullhound Software Report

8
Overview, Software Credentials & Team
2
Q1 SaaS Market Highlights
▪ Software consolidators are hyper focused on “growth acquisitions”

– SaaS companies with as little as $5 million of ARR have attracted such interest when growing north of 100%
– Acquirers are not evaluating build vs. buy as often in these scenarios
– Targets are being integrated, but left alone to continue momentum and growth
▪ Strategic M&A processes have been catalyzed through “market checks” in parallel to companies’ investment processes
– Companies are weighing the advantages of exiting prior to their next financing as opposed to further dilution and time horizon
– Investor interest and term sheets can often drive strategics to act
– All opportunities should be considered and we have seen founders benefit from exploring and understanding their options
▪ We have also started to see a number of “soft landing” exits for start-ups
– Companies exiting to strategics or PE buyers in lieu of raising fresh capital and continued standalone growth
– This is a trend in difficult sub-sectors (consumer, parts of digital marketing) and with non-category leading companies
▪ Despite the initial tailwinds for a robust IPO market in 2018, volatility could threaten the IPO market in the near-term
– Market volatility spiked dramatically in early February as the Dow had one of its biggest point losses in recent times
– We will look to see if planned IPOs will price below initial guidance and/or last privately marked valuations
▪ Dropbox is a marquee software IPO – fastest SaaS company to $1B in revenue – it will be a bellwether IPO in ‘18
– Dropbox is primarily a consumer-focused SaaS business with much different metrics than most enterprise SaaS companies
– Dropbox’s net revenue retention of 100% is low for a SaaS company; land & expand efforts may not be working as well as others
– S&M expenses are much lower than Box’s S&M spend due to their consumer customer base
3
Our Views on Current Trends in Software
▪ Large established SaaS companies are focusing on shifting to PaaS for their customers
– Customers want to be able to customize their own applications, add new services and shape their product. They can also integrate new
features and functionalities that are prohibitive to develop on their own, for example AI features
– Salesforce is the best example of a SaaS company shifting to PaaS, with their Force.com platform spawning multiple innovative and
successful companies leveraging their technology
» Financial Force – by being native on Force.com they are able to build cloud ERP apps on the largest customer success platform, making
teams more nimble, the services better, and the cost of synchronizing transactions lower
– Other companies focusing on platform offerings are Google, Microsoft, Oracle, SAP and Workday
▪ Customer acquisition cost for SaaS companies has increased almost 65% over the past 5 years lowering margin
expectations for software companies, and making optimization of sales strategies more difficult
– Competition among SaaS vendors has made the cost of acquiring customers increase quite significantly, particularly larger enterprise
solutions
– While competition is responsible for driving up prices, another factor that inevitably affects SaaS companies of scale is a shrinking number of
sales channels to tap
» As early sales channels become saturated, converting clients from this source becomes increasingly difficult and expensive
» Sales channels further down the continuum usually have a marginally higher cost. Channel sales is the exception, having an existing
customer to sell to or through is much cheaper than a new sale and the upfront friction that comes with it
▪ The newly signed tax bill in the US will lead to repatriation of profits, creating an extremely favorable M&A environment
for large technology & software consolidators
– Apple could bring back cash to the order of $252B, Cisco $65B and Google $55B – the possibilities are numerous, with multiple software
companies at large public valuations, and many more with significant value that could contribute scale to the largest technology acquirers
» E.g. Apple / Tesla, Apple / Netflix, Microsoft / Citrix, Google / Salesforce
Source: Redpoint Ventures, Capital IQ

4
4 Key SaaS Metrics

8
5
Notable Software M&A Deals & Private Financings
(Q1 2018)
Selected M&A Transactions Selected Private Financings
Announce Implied Announce Capital
Target Buyer Target Description Value ($) Issuer Selected Investors Issuer Description
Date EV/LTM Rev Date Raised ($)
Mar 13 Salesforce CloudCraze B2B commerce platform - - Goldman Sachs, HCL, Real-time IT operations
Mar 13 Moogsoft 40
Northgate, Redpoint, Singtel analytics
Mar 12 Booker Software MINDBODY Enterprise management 150 6.0x
NEA, GV, Founders Fund, Cloud-based integrated
Mar 6 Togetherwork GI Partners Group management - - Feb 28 Collective Health 110
Maverick Ventures health benefits platform
Thomas H. Lee Enterprise content
Feb 8 Alfresco Software - - Feb 16 Reflektive TPG, Lightspeed, A16 Employee engagement 60
Partners management
Jive Cloud-based Generation Investment Collaboration and
Feb 8 LogMeIn 342 4.3x Jan 31 Asana 75
Communications communications Management productivity software
Jan 29 Callidus Software SAP Customer experience 2,425.9 9.6x Blackrock, Castor Ventures,
Jan 29 ThreatMetrix RELX Security/fraud prevention 830 - GGV Capital, Glynn Capital, Business management
Dec 19 Domo 115
SharesPost, The Capital platform
Jan 11 Talkwalker Marlin Equity Social media listening - - Group, The Yard Ventures
Dec 28 BravoSolution Accel-KKR/JAGGAER Procurement & sourcing 217.8 2.3x
Corporate compliance
Dec 19 Convercent Rho Ventures 25
Dec 18 Aconnex Oracle Document management 1,222.8 9.8x management
Open source & license Content management
Dec 12 Black Duck Synopsys 547 7.3x Dec 14 Squarespeace General Atlantic 200
management platform
Dec 11 Shazam Apple Music recognition 400 7.3x General Catalyst,
Content management
Time tracking and Dec 4 Contentful Benchmark, Balderton, Point 28
Dec 5 TSheets.com Intuit 340 8.5x platform
scheduling Nine
Dec 5 Simply Measured Sprout Social Social analytics - - Ballie Gifford, Revolution,
Nov 30 Uptake Predictive analytics 117
GreatPoint Ventures
Nov 27 Skyhigh Networks McAfee Cloud access security - -
Accel. Battery Ventures,
Nov 21 Cloudmark Proofpoint Messaging security 110 - Design collaboration
Nov 1 InVisionApp FirstMark Capital, Geodisic, 100
platform
ICONIQ, Spark Capital, Tiger
Nov 16 Qvidian Upland Software Sales execution 50 -
Clearlake Capital, EDB
Nov 14 IntraLinks Siris Capital Content collaboration 1,000 - Governance, risk and
Oct 31 MetricStream Investments, Sageview, 63.4
compliance
Health club software & Goldman Sachs
Nov 8 ABC Financial Thoma Bravo - -
billing CVC Capital, Pantheon Cyber secruity
Oct 24 Skybox Security 150
Financial & clinical Ventures management
Nov 1 ZiriMed Navicure/Bain 750 -
performance Geodisic, Index, Lead Edge,
Authentication and mobile
CRM for service-based Oct 16 Duo Security Meritech, Redpoint, True 70
Oct 23 Vista/Bullhorn Insight, Genstar - - security
industries Venture, Workday
Enterprise Customer feedback

Oct 23 BroadSoft Cisco 1,528.9 4.2x Oct 12 HappyOrNot Northzone Ventures 14.5
communication monitoring
Median 6.6x
Source(s): Capital IQ, Pitchbook

6
Global Software Transaction Trends
M&A and Private Placement Activity by Quarter
M&A Deal Value is Picking Up, Driven by PE Fewer, Larger Private Placements are Still Occurring
$120B 600 $35B 4,000
$30B 3,500
$100B 500
$25B 3,000
$80B 400
2,500
$20B
$60B 300 2,000
$15B
1,500
$40B 200
$10B 1,000
$20B 100 $5B 500
$0M 0 $0M 0
2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
M&A Buyout M&A Deals Buyout Deals Value Deals
The US and Europe Continue to Dominate M&A Deal Volume Private Placement Deal Volume by Region has Stayed Consistent
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
U.S. & Canada Europe Asia Other U.S. & Canada Europe Asia Other
Source(s): Pitchbook as of 2/28/2018

Note: Data includes all “SaaS” M&A and private placement deals as defined by Pitchbook regardless of 7
geography or transaction size
Software IPOs in 2017
Listed in 2017
▪ Description (NYSE:AYX): Provider of self- ▪ Description (NASDAQ:APPN): Provider of ▪ Description (NYSE:CLDR): Developer of a ▪ Description (NASDAQ:MDB): The leading
service data analytics software that low-code software development platform hybrid open source software (HOSS) modern general purpose database
enables organizations to improve that enables organizations to develop platform for data management, machine platform
productivity and business outcomes various applications learning and advanced analytics ▪ Listing Date: 10/19/2017
▪ Listing Date: 03/24/17 ▪ Listing Date: 05/25/17 ▪ Listing Date: 05/28/2017 ▪ Offering Amount: $192m
▪ Offering Amount: $126.0m ▪ Offering Amount: $75.0m ▪ Offering Amount: $225.0m ▪ Offering Price/Share: $24
▪ Offering Price/Share: $14 ▪ Offering Price/Share: $12 ▪ Offering Price/Share: $15 ▪ % Change/IPO Price: 34.2%
▪ % Change/IPO Price: 144.2% ▪ % Change/IPO Price: 125.3% ▪ % Change/IPO Price: 27.0% ▪ LTM Revenue : $139.4m
▪ LTM Revenue : $131.6m ▪ LTM Revenue : $176.7m ▪ LTM Revenue : $336.8m ▪ EV/Revenue1: 8.8x
▪ EV/Revenue1: 14.4x ▪ EV/Revenue1: 9.3x ▪ EV/Revenue1: 6.3x ▪ Selected Metrics:
▪ Selected Metrics: ▪ Selected Metrics: ▪ Selected Metrics: – Revenue Growth 17/16: 55%
– Revenue Growth 16/15: 59% – Revenue Growth 16/15: 20% – Revenue Growth 16/15: 57% – Subscription Revenue %: 90%
– Subscription Revenue %: >95% – Subscription Revenue %: 45% – Subscription Revenue %: 77% – ARR expansion rate: 120%
– YoY Customer Growth (16/15): 66% – Average ACV: $475K – Net Expansion Rate for Subscription – YoY Customer Growth (17/16): 88%
– $ Based Net Retention Rate: >120% – Subscription Revenue Retention Rate: Revenue: 142%
– Average expansion multiple of top 25
112% – Revenue from Cloudera Global 8000: end-customers: 12.3x
73%
▪ Description (NYSE:MULE): Developer of an ▪ Description (NasdaqGS:OKTA): Provider of ▪ Description (NYSE:YEXT): Provider of ▪ Description (NASDAQ:FSCT): Provider of
integration solution for connecting identity verification software for the platform that lets businesses manage security software to monitor devices
applications, data, to devices enterprise their digital knowledge in the cloud connected to the network
▪ Listing Date: 03/17/17 ▪ Listing Date: 04/07/2017 ▪ Listing Date: 04/13/2017 ▪ Listing Date: 04/13/2017
▪ Offering Amount: $221.0m ▪ Offering Amount: $187.0m ▪ Offering Amount: $115.5m ▪ Offering Amount: $115.5m
▪ Offering Price/Share: $17 ▪ Offering Price/Share: $17 ▪ Offering Price/Share: $11 ▪ Offering Price/Share: $11
▪ % Change/IPO Price: 81.6% ▪ % Change/IPO Price: 127.0% ▪ % Change/IPO Price: 15.5% ▪ % Change/IPO Price: 170.7%
▪ LTM Revenue : $296.5m ▪ LTM Revenue: $231.1m ▪ LTM Revenue: $157.9m ▪ LTM Revenue: $220.9m
▪ EV/Revenue1: 13.3x ▪ EV/Revenue1: 14.7x ▪ EV/Revenue1: 6.1x ▪ EV/Revenue1: 4.5x
▪ Selected Metrics: ▪ Selected Metrics: ▪ Selected Metrics: ▪ Selected Metrics:
– Revenue Growth 16/15: 70% – Revenue Growth 17/16: 87% – Revenue Growth 17/16: 39% – Revenue Growth 16/15: 32%
– Subscription Revenue %: 81% – Subscription Revenue %: 89% – $ Based Net Retention Rate (2017): – Average ACV: $200K+
– Average ACV 2016: $169K – YoY Customer Growth (17/16): 40% 119%
– Average expansion multiple of top 20
– YoY Customer Growth (16/15): 27% – $ Based Net Retention Rate (2017)2: – Revenue Growth from Existing end-customers: 4.5x
123% Enterprise and Mid Size Customers
– $ Based Net Retention Rate: 117%
(2016): 63%
1. CY 2017E revenue multiple

Source(s): Company SEC filings from Edgar, Capital IQ as of 2/28/2018 8
Software IPOs in 2017
2017 saw a strong IPO market for SaaS unicorns, highlighted by the performance of
Appian and Forescout; we expect 2018 to be less robust of an environment driven by
choppy public markets and fewer SaaS companies of scale ready to debut
Listed in 2017 To come in 2018
▪ Description (NYSE:AYX): Provider of mobile ▪ Description (Nasdaq:DBX): Cloud-based ▪ Description (Nasdaq:ZS): Security-as-a-
and cloud-based email service platform storage platform designed to store Service internet security and compliance
designed to deliver customer documents, files, videos and photos platform that acts as a series of check
communication that drives engagement ▪ File Date: 10/02/17 posts in between the organization and the
and business growth public internet, scanning all incoming and
▪ LTM Revenue : $1.1bn
▪ Listing Date: 11/15/2017 outgoing traffic between any device
▪ Offering:
▪ Offering Amount: $131.2m ▪ File Date: 02/16/18
– 36,000,000
▪ Offering Price/Share: $16 ▪ LTM Revenue: $154.3m
– Price per share: $16-$18
▪ % Change/IPO Price: 63.3% ▪ Offering:
– Market Cap: $7.6-$8.5bn
▪ LTM Revenue : $111.9m – 12,000,000 Shares
▪ Selected Metrics:
▪ EV/Revenue1: 8.7x – Price per share: $13-$15
– Revenue Growth 17/16: 31%
▪ Selected Metrics: – Market Cap: $1.6-$1.8bn
– 500m+ registered users
– Revenue Growth 16/15: 37% ▪ Selected Metrics:
– 11m+ paying users
– Subscription Net Dollar Retention %: – Revenue Growth FY17/16: 57%
– Net revenue retention: ~100%
126% – Net retention rate: 115%
– ARPU: $111.91
– Email Volume Growth YoY%: 37% – 2,800+ customers
– Customer Growth YoY%: 36%
1. CY 2017E revenue multiple

Source(s): Company SEC filings from Edgar, Capital IQ as of 2/28/2018 9
4 Key SaaS Metrics

8
10
GP Bullhound Selected SaaS Index Market Valuations
(Market Cap Values in $ in billions)
Salesforce 84.0
ServiceNow 28.1
Workday 26.6
Square 18.3
j2 Global 14.5
Splunk 13.2
Atlassian 12.6
Veeva 9.9
Ultimate Software 7.3
LogMeIn 6.1
Paycom 5.9
athenahealth 5.6
Proofpoint 5.4
RingCentral 4.9
Zendesk 4.5
2U 4.4
RealPage 4.3
HubSpot 4.2
MuleSoft 4.1
New Relic 4.0
Source(s): Capital IQ as of 02/28/2018

Note: Includes the 20 largest companies by market cap from the GP Bullhound SaaS index, constituents 11
can be found in Appendix A
Analysis of GP Bullhound SaaS Index Valuations
Revenue Multiple Trends – Last Five Years
Public market bubble? Current SaaS valuations are
14.0x in line with the mean of the last five year
13.0x
12.0x
11.0x
10.0x
9.0x
Mean: 8.5x
As of Feb 28: 8.7x
8.0x
7.0x Mean: 6.8x

As of Feb 28: 7.4x
6.0x
5.0x
4.0x
3.0x
GPB SaaS Index - TEV/Total Revenues GPB SaaS Index - TEV/Forward Total Revenue

Note: GP Bullhound SaaS Index constituents can be found in Appendix A 12
Rule of 40% – Public SaaS
2018E Growth and Profitability of Public SaaS Companies in GPB Index
30%
The Rule of PFPT

25% 40% Line
CRM WDAY
20% VEEV
WIX
QLYS
BOX
RP CLDR
15% CALD
VIT B AYX
CSLT COUP TLND
CSOD WK PAYC
10% SPSC ULTI CARB
2018E Unlevered FCF Margin
ZEN
PCTY MIME
MOBL APPF MULE
MDSO FIVN BL OKTA SQ
5% APTI QTWO NEWR
ATHN MB
AMBR EGHT HUBS
ECOM EVBG
LPSN
RNG
0%
BNFT TWLO
BCOV
SCWX
(5%) SPLK
YEXT
INST
(10%)
(15%)
(20%)
(25%)
(30%)
(5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65%
2018E Revenue Growth

Note: Data based on GP Bullhound SaaS Index, constituents can be found in Appendix A, 13
excludes outliers and companies with “N/A”
Comparing the Rule of 40% – Public SaaS
2018E Growth and Profitability of Public SaaS Companies in GPB Index is lower than in 2017
2017 Revenue Growth + FCF Margin 2018 Revenue Growth + FCF Margin
30% 30%
VEEV WIX
PFPT
25% 25%
CRM CRM
QLYS WDAY
SPLK WDAY VEEV
20% RP BOX CLDR 20% WIX
QLYSBOX
CALD AYX
COUP TLND RP CLDR
15% VIT PAYC
B 15% CALD
WK VIT B TLND
ZEN AYX
CARB CSLT WK CSLT PAYC
CSODSPSC ULTI NEWR
CSOD SPSC COUP
ULTICARB
10% MDSO MULE 10%

PCTYAPPF QTWO MIME PCTY ZEN
MOBL FIVN APPF MIME
BL OKTA MOBL MULE
APTI EGHT EVBG MDSOFIVN BL OKTA SQ
5% MB 5% NEWR
QTWO
AMBR ECOMATHN HUBS AMBR APTI
ATHN EGHT
LPSN ECOM LPSN MB HUBS EVBG
RNG
0% 0% RNG
BNFT
BCOV BNFT TWLO TWLO
(5%) SCWX (5%) BCOV SCWX

SPLK YEXT
YEXT
INST
(10%) INST (10%)
(15%) (15%)
(20%) (20%)
(25%) (25%)
(30%) (30%)
(5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% (5%) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65%
2017E Revenue Growth 2018E Revenue Growth
• This interesting comparison of our SaaS Index is telling. SaaS companies are growing quickly, getting larger; thus,
growth rates tend to slow with the law of large numbers
• As SaaS companies mature as public entities, they may be projecting more conservative financial projections.
Moreover, they may be factoring increased competition from SaaS vendors and changes to their market or the
macro economy
Source(s): Capital IQ
Note: Data based on GP Bullhound SaaS Index, constituents can be found in Appendix A, 14
excludes outliers and companies with “N/A”
Vertically Focused Cloud Software
Significantly Lower Sales & Marketing Spend as a Percentage of Revenue
However, generally lower growth and valuation multiples
Horizontal Software Vertically-Specific Software

Median: 50% Median: 24%
100% 100%
91%
90% 90%
80% 80%
70% 65% 70%
60% 54% 60%
50% 49%
50% 50%
42% 41%
37%
40% 40%
29% 27%
30% 30% 24% 24% 24%
20% 21%
20% 20%
10% 10%
0% 0%
EV/LTM
16.1x 13.0x 10.3x 14.2x 7.8x 11.6x 7.6x 8.1x 8.0x 9.2x 7.3x 4.2x 6.8x 13.3x 6.6x
Revenue
CY18/17E
Revenue 32.5% 41.1% 36.1% 33.3% 21.3% 25.9% 19.2% 26.2% 28.2% 27.9% 25.1% 11.3% 16.8% 20.3% 11.3%
Growth

Software Public Company Valuations
High Growth (2018 Revenue Growth Rate >30%)
CY
Share Market Revenue CY18E
Price Share Price Performance Cap EV Cash EV/Revenue EV/EBITDA Growth Margins
Company Name HQ Employee 02-28-18 LTM L6M L1M (m) (m) (m) CY17A CY18E CY19E CY17A CY18E CY19E 18/17 Gross EBITDA
Metaps JP 246 $25.83 (11.9%) (12.1%) (6.8%) $347 $318 $65 2.5x 1.4x 1.4x 67.0x NM NM 80.4% NA 1.1%
Micro Focus UK 60,000 28.46 (2.9%) (11.8%) (8.4%) 12,409 16,726 730 6.7x 4.0x 4.1x 16.7x 10.5x 9.7x 67.2% NA 38.0%
Gridsum CN 929 10.89 (7.2%) 16.2% (14.4%) 335 336 39 3.4x 2.1x 1.5x NM 16.4x 6.0x 60.1% NA 13.0%
Shopify CA 3,000 138.21 133.4% 33.2% 7.1% 14,498 13,555 943 20.5x 13.6x 9.9x NM NM NM 51.2% 56.8% 3.6%
Extreme Networks US 1,628 11.41 82.6% 2.4% (17.6%) 1,315 1,370 128 1.8x 1.2x 1.1x 15.5x 9.5x NA 43.5% NA 12.9%
MuleSoft US 1,188 30.88 NA 46.0% 21.9% 4,061 3,857 204 13.2x 9.4x 7.1x NM NM NM 41.1% 74.2% (9.3%)
2U US 1,865 82.78 126.5% 71.2% 9.6% 4,364 4,163 223 14.6x 10.4x 7.8x NM NM NM 40.7% 81.1% 4.1%
Wix IL 1,266 75.05 20.5% 23.9% 20.3% 3,412 3,179 233 7.5x 5.4x 4.3x 47.3x 30.0x 19.1x 40.1% 80.4% 17.8%
Alteryx US 515 34.19 NA 51.7% 12.2% 2,023 1,849 174 14.4x 10.3x 7.8x NM NM NM 39.3% 84.0% (8.6%)
MongoDB US 930 32.21 NA NA 14.3% 1,629 1,341 289 8.8x 6.5x 4.8x NM NM NM 35.8% 70.5% (38.0%)
Talend FR 816 47.08 73.7% 20.9% 19.6% 1,372 1,286 87 8.7x 6.4x 5.0x NM NM NM 35.4% 78.3% (4.7%)
CenturyLink US 39,500 17.67 (27.2%) (14.8%) (3.0%) 18,889 56,064 551 3.2x 2.4x 2.4x 9.0x 6.4x 6.3x 34.7% 54.3% 36.7%
Tremor Video US 328 3.85 74.2% 13.6% (23.3%) 197 121 76 2.7x 2.0x 1.6x NM 19.8x 6.8x 34.1% 91.7% 10.2%
ServiceNow US 6,222 161.01 85.2% 43.9% 7.5% 28,128 27,523 1,779 14.4x 10.8x 8.4x 65.4x 42.2x 29.5x 33.3% 79.5% 25.5%
Instructure US 1,140 43.40 89.5% 44.9% 21.2% 1,448 1,406 41 9.0x 6.8x 5.3x NM NM NM 33.0% 73.5% (11.2%)
Atlassian UK 2,408 54.29 90.9% 56.5% 0.8% 12,608 11,929 679 16.3x 12.3x 9.7x 60.9x 43.1x 35.9x 32.6% NA 28.5%
Okta US 898 38.59 NA 57.8% 24.6% 3,933 3,710 224 14.3x 10.8x 8.1x NM NM NM 32.5% 72.6% (20.2%)
Yext US 750 12.70 NA (1.0%) 4.5% 1,159 1,045 113 6.1x 4.6x 3.5x NM NM NM 32.4% 74.9% (16.7%)
Zendesk US 2,060 43.18 58.6% 58.4% 10.5% 4,464 4,217 247 9.9x 7.5x 5.9x NM NM 72.2x 31.7% 73.6% 6.2%
Everbridge US 553 31.91 67.6% 41.6% (4.8%) 902 845 146 8.2x 6.2x 4.9x NM NM NM 31.7% 72.0% (2.4%)
Amazon US 566,000 1,512.45 79.0% 59.9% 7.9% 732,188 745,349 30,986 4.2x 3.2x 2.6x 38.9x 27.7x 21.3x 31.6% 38.3% 11.5%
Twilio US 900 34.16 7.7% 19.5% 28.8% 3,178 2,887 291 7.4x 5.6x 4.6x NM NM NM 31.6% 54.0% 1.8%
Trade Desk US 713 56.26 33.3% 9.5% 9.8% 2,354 2,226 156 7.2x 5.5x 4.4x 24.4x 18.8x 13.8x 31.5% 78.5% 29.2%
Pure Storage US 2,000 21.67 90.1% 52.1% 8.8% 4,698 4,146 597 4.1x 3.1x 2.5x NM 48.3x 26.9x 31.2% 65.6% 6.4%
HubSpot US 2,081 111.05 86.6% 61.9% 9.2% 4,204 3,998 504 10.8x 8.3x 6.6x NM NM 62.8x 30.6% 82.1% 8.7%
Proofpoint US 2,047 107.17 36.1% 18.1% 3.8% 5,417 5,283 332 10.4x 8.0x 6.2x NM 59.1x 41.3x 30.4% 77.0% 13.4%
Average 8.9x 6.4x 5.1x 38.3x 27.7x 27.0x 39.1% 72.0% 6.1%
Median 8.4x 6.3x 4.9x 38.9x 23.7x 21.3x 33.7% 74.2% 6.3%

Note: Multiples in excess of 75.0x or less than 0.0x are considered not-material (“NM”) and not taken into average 16
calculation consideration
Software Public Company Valuations (Cont'd)
Strong Growth (2018 Revenue Growth Rate Between 20% and 30%)
CY
Park City Group US 77 $10.35 (27.1%) (15.2%) 16.9% $203 $194 $15 9.1x 7.0x 5.3x NA 21.6x 15.4x 30.0% NA 32.4%
Wisetech AU 900 8.30 98.5% 32.8% (32.7%) 2,409 2,365 47 16.5x 12.7x 10.4x 46.1x 34.7x 26.6x 29.7% NA 36.6%
New Relic US 1,253 71.78 104.0% 49.4% 15.9% 3,980 3,747 233 11.4x 8.8x 7.1x NM NM 56.0x 29.5% NA 8.6%
MINDBODY US 1,440 35.65 34.3% 59.5% 1.4% 1,674 1,456 232 8.0x 6.2x 5.0x NM 65.8x 38.5x 28.2% 72.8% 9.5%
AppFolio US 672 40.10 61.4% (4.5%) (8.1%) 1,366 1,320 46 9.3x 7.3x 5.9x 49.0x 35.3x 25.8x 27.9% 61.9% 20.6%
Blackline US 726 44.00 54.2% 47.1% 30.9% 2,326 2,213 113 12.7x 9.9x 7.9x NM NM NM 27.7% 80.3% 4.6%
Hortonworks US 1,150 17.98 80.9% 12.2% (12.4%) 1,305 1,233 73 4.8x 3.8x 3.0x NM 14.1x 6.8x 27.4% 73.7% 26.7%
RingCentral US 1,352 62.65 134.6% 62.1% 13.0% 4,929 4,748 181 9.5x 7.5x 6.1x NM 65.5x 50.2x 27.3% 77.9% 11.4%
Square US 2,338 46.05 165.9% 84.9% 0.2% 18,252 17,751 866 18.3x 13.2x 10.3x NM 70.7x 42.2x 38.7% 85.7% 18.7%
Mimecast UK 957 34.74 76.5% 27.3% 7.8% 2,008 1,920 129 8.1x 6.3x 5.3x NM 59.9x 43.1x 27.1% NA 10.6%
Cloudera US 1,470 19.05 NA 2.6% 1.7% 2,690 2,301 390 6.3x 5.0x 4.1x NM NM NM 26.9% 74.9% (18.7%)
Workday US 7,900 126.67 52.7% 22.4% 6.6% 26,601 24,824 3,268 11.6x 9.2x 7.5x 71.4x 49.7x 36.8x 25.9% 75.2% 18.6%
Paycom US 2,548 98.92 83.8% 36.0% 6.4% 5,854 5,844 46 13.5x 10.8x 8.7x 44.0x 26.8x 21.9x 25.8% 83.6% 40.1%
Upland Software US 251 23.86 98.0% 5.2% (0.1%) 496 534 53 5.5x 4.4x 4.2x 17.9x 12.4x 11.4x 25.5% 67.3% 35.3%
Splunk US 2,700 93.20 51.0% 44.5% 0.8% 13,184 12,203 1,165 9.8x 7.8x 6.1x NM 57.2x 38.8x 25.5% 83.0% 13.7%
RealPage US 5,462 52.25 54.8% 26.7% 6.2% 4,346 4,925 69 7.3x 5.9x 5.3x 30.4x 22.5x 18.8x 25.1% 62.8% 26.1%
Varonis Systems US 1,251 56.15 104.9% 47.0% 1.8% 1,581 1,444 137 6.9x 5.5x 4.7x NM NM NM 24.8% 90.8% 2.9%
Coupa Software US 652 44.60 68.6% 44.4% 16.4% 2,455 2,236 219 12.3x 9.9x 8.0x NM NM NM 24.5% 72.2% (3.5%)
Carbonite US 830 28.15 44.7% 48.5% 9.1% 787 770 128 3.1x 2.5x 2.2x 16.3x 9.9x 8.6x 24.3% 76.5% 25.5%
Box US 1,726 24.06 36.5% 22.6% 7.4% 3,304 3,182 208 6.3x 5.1x 4.1x NM NM 59.2x 23.6% 74.6% 3.1%
ForeScout Technologies US 818 29.78 NA NA (10.1%) 1,143 979 186 4.5x 3.7x 3.0x NM NM NM 23.0% 74.3% (12.5%)
Palo Alto Networks US 4,833 173.37 14.1% 34.1% 8.6% 15,924 14,825 1,636 7.5x 6.1x 5.2x 31.5x 23.5x 18.9x 22.8% NA 26.0%
Sophos UK 3,293 6.88 98.3% 4.3% (24.1%) 3,216 3,444 81 6.1x 4.9x 4.1x 61.5x 48.5x 33.9x 22.5% NA 10.2%
CyberArk IL 823 49.51 (2.1%) 23.7% 13.8% 1,720 1,417 303 5.5x 4.5x 3.8x 25.3x 22.0x 17.8x 22.5% 86.8% 20.5%
Constellation Software CA 12,124 648.36 37.7% 17.4% 0.2% 13,740 13,587 489 5.5x 4.5x 4.0x 21.2x 17.4x 15.1x 22.2% 66.0% 26.0%
Paylocity US 2,115 46.77 32.6% (0.3%) (5.8%) 2,460 2,349 111 7.1x 5.8x 4.7x 35.5x 27.8x 22.1x 22.1% NA 20.8%
Callidus Software US 1,300 35.90 90.5% 48.7% 11.3% 2,386 2,244 150 9.0x 7.4x 6.2x 71.1x 43.0x 29.9x 21.3% 66.0% 17.3%
Q2 Holdings US 844 45.55 26.7% 10.7% 11.2% 1,914 1,815 100 9.4x 7.7x 6.3x NM NM 53.9x 21.3% 52.4% 8.6%
Alphabet US 80,110 1,103.92 30.7% 18.9% (7.0%) 767,836 669,934 101,871 6.1x 5.0x 4.3x 15.3x 13.0x 11.1x 21.2% 61.0% 38.6%
Adobe US 17,973 209.13 76.7% 37.8% 3.9% 102,804 98,867 5,820 13.6x 11.3x 9.6x 32.5x 25.2x 21.2x 21.0% 87.8% 44.8%
Yonyou CN 15,023 5.18 85.1% 59.5% 41.0% 7,582 7,858 439 8.3x 6.8x 5.9x NM 61.5x 52.5x 21.0% 69.2% 11.1%
Ellie Mae US 1,280 88.67 (7.2%) 8.8% (8.9%) 3,035 2,794 241 6.8x 5.6x 4.8x 23.4x 21.4x 16.0x 20.7% 59.4% 26.2%
Qualys US 869 74.05 111.9% 62.6% 15.2% 2,860 2,572 288 11.2x 9.3x 7.9x 30.4x 26.3x 22.2x 20.5% 78.8% 35.3%
Envestnet US 3,197 55.10 42.6% 29.3% 1.3% 2,441 2,622 60 3.9x 3.2x 2.9x 21.6x 17.1x 14.2x 20.4% 64.0% 18.7%
Veeva US 1,794 69.70 59.5% 22.0% 14.3% 9,852 9,090 762 13.4x 11.1x 9.4x 40.0x 34.2x 28.6x 20.3% 72.9% 32.5%
Salesforce US 29,401 116.25 42.9% 24.1% 2.2% 83,967 81,945 4,522 7.8x 6.5x 5.5x 36.5x 29.8x 23.7x 20.2% 76.6% 21.9%
Average 8.8x 7.0x 5.8x 36.0x 34.2x 28.4x 24.7% 73.4% 18.6%
Median 8.0x 6.4x 5.3x 32.0x 27.3x 23.7x 24.4% 74.3% 19.6%

Software Public Company Valuations (Cont'd)
High Profitability (2018 EBITDA Margin >35%)
CY
Verisign US 952 $116.02 40.7% 13.5% 0.6% $11,268 $11,263 $2,415 9.7x 9.3x 9.0x 14.0x 13.1x 12.5x 3.7% 83.9% 71.0%
MSCI US 3,038 141.52 49.6% 24.2% 0.7% 12,729 13,918 890 10.9x 9.7x 8.8x 21.1x 17.7x 15.9x 13.3% 79.2% 54.4%
Check Point Software IL 4,281 103.89 5.0% (4.7%) (0.7%) 16,980 15,569 1,411 8.4x 8.0x 7.6x 15.0x 14.8x 13.8x 4.9% 88.9% 54.1%
Aspen Technology US 1,419 77.28 32.9% 28.0% (3.5%) 5,559 5,662 49 11.6x 11.2x 10.6x 24.3x 23.2x 21.4x 3.8% NA 48.3%
Black Knight US 4,430 47.65 NA NA (7.6%) 7,154 8,577 16 8.1x 7.7x 7.1x 16.9x 15.9x 14.5x 5.7% NA 48.2%
Progress Software US 1,470 46.87 63.4% 40.8% (7.4%) 2,174 2,112 184 5.3x 5.2x 5.2x 11.5x 11.0x 10.9x 1.9% 88.1% 47.6%
Symantec US 13,000 26.29 (8.0%) (12.1%) (5.1%) 16,340 19,395 2,532 3.9x 4.0x 3.8x 8.5x 8.5x 7.3x (1.6%) NA 47.2%
ANSYS US 2,900 159.94 49.8% 25.3% (2.5%) 13,414 12,533 882 11.6x 10.4x 9.5x 23.4x 22.5x 20.6x 11.0% 89.2% 46.3%
Adobe US 17,973 209.13 76.7% 37.8% 3.9% 102,804 98,867 5,820 13.6x 11.3x 9.6x 32.5x 25.2x 21.2x 21.0% 87.8% 44.8%
SS&C Technologies US 8,001 49.52 41.4% 30.2% (1.2%) 10,228 12,209 64 7.3x 6.9x 6.6x 17.6x 16.1x 14.9x 5.9% 57.9% 42.6%
MYOB AU 1,500 2.46 (10.7%) (13.1%) (11.4%) 1,489 1,784 43 5.4x 4.9x 4.5x 12.0x 11.6x 10.6x 11.3% 90.1% 41.9%
Intel US 102,700 49.29 36.2% 42.3% (1.6%) 230,677 243,488 14,002 3.9x 3.8x 3.6x 9.5x 9.0x 8.4x 4.6% 61.6% 41.5%
Microsoft US 124,000 93.77 46.6% 28.8% (0.3%) 722,010 676,663 138,535 6.7x 6.1x 5.6x 17.0x 14.9x 13.1x 10.3% NA 40.6%
Oracle Financial IN 9,064 60.38 7.6% 11.0% (9.0%) 5,157 4,705 462 6.7x 6.1x 5.6x 16.5x 15.0x 14.0x 9.8% NA 40.3%
j2 Global US 2,426 74.02 (9.1%) 1.0% (6.7%) 3,583 4,234 351 3.8x 3.5x 3.2x 9.0x 8.6x 7.7x 9.0% 84.5% 40.3%
Paycom US 2,548 98.92 83.8% 36.0% 6.4% 5,854 5,844 46 13.5x 10.8x 8.7x 44.0x 26.8x 21.9x 25.8% 83.6% 40.1%
LogMeIn US 2,760 115.55 25.9% 3.2% (8.2%) 6,058 5,806 252 5.7x 5.0x 4.7x 15.7x 12.9x 11.7x 13.7% 84.5% 39.0%
Alphabet US 80,110 1,103.92 30.7% 18.9% (7.0%) 767,836 669,934 101,871 6.1x 5.0x 4.3x 15.3x 13.0x 11.1x 21.2% 61.0% 38.6%
F5 Networks US 4,276 148.52 3.7% 26.2% 7.4% 9,185 8,181 1,005 3.9x 3.8x 3.7x 9.9x 9.8x NA 3.4% NA 38.6%
Temenos CH 4,356 117.49 51.7% 22.0% (14.8%) 8,258 8,540 168 11.7x 10.1x 9.1x 33.3x 26.9x 23.6x 16.0% 82.0% 37.5%
Open Text CA 12,100 35.08 6.4% 10.1% 2.5% 9,325 11,618 476 4.5x 4.1x 4.0x 13.0x 11.0x 10.6x 10.3% NA 37.1%
Akamai Technologies US 7,650 67.46 7.8% 49.4% (0.2%) 11,411 11,362 712 4.6x 4.2x 3.8x 12.3x 11.4x 10.1x 8.6% 66.2% 36.9%
Verizon US 155,400 47.74 (3.8%) (1.8%) (12.8%) 194,755 311,775 2,079 2.5x 2.4x 2.4x 6.9x 6.6x 6.5x 2.5% 59.2% 36.9%
VMware US 18,905 131.75 46.6% 25.9% (12.2%) 53,113 45,733 11,653 5.8x 5.3x 4.9x 15.6x 14.4x 12.8x 9.8% 88.1% 36.8%
Intuit US 8,200 166.86 33.0% 21.0% (2.1%) 42,735 43,112 726 7.9x 7.2x 6.6x 21.6x 19.7x 17.9x 9.6% NA 36.8%
Ebix US 4,515 83.95 34.3% 47.3% (0.2%) 2,641 2,923 89 8.2x 7.0x 6.2x 23.8x 19.0x 17.2x 17.6% 65.4% 36.7%
FIS US 53,000 97.18 18.1% 5.9% (5.5%) 32,184 40,391 665 4.4x 4.7x 4.5x 13.2x 12.9x 12.1x (6.3%) 39.5% 36.5%
TriNet US 2,700 47.17 75.7% 33.0% 7.0% 3,305 3,392 336 4.2x 4.0x 3.7x 12.2x 11.0x 10.0x 6.4% 74.4% 36.2%
Fiserv US 24,000 143.39 24.3% 16.7% 0.6% 29,626 34,201 325 6.0x 5.8x 5.6x 16.9x 16.2x 15.2x 3.7% 46.7% 35.9%
Qualys US 869 74.05 111.9% 62.6% 15.2% 2,860 2,572 288 11.2x 9.3x 7.9x 30.4x 26.3x 22.2x 20.5% 78.8% 35.3%
Average 7.3x 6.5x 5.9x 18.3x 15.6x 14.1x 12.8% 73.4% 41.6%
Median 6.4x 5.6x 5.4x 16.1x 13.7x 12.8x 9.8% 79.0% 38.8%

GP Bullhound SaaS Index Performance
L1M L3M
110.0% 125.0%
120.0%
115.0%
105.0%
110.0%
Index Value
Index Value
105.0%
100.0%
100.0%
95.0%
95.0%
90.0%
85.0%
90.0% 80.0%
2/1/18 2/4/18 2/7/18 2/10/18 2/13/18 2/16/18 2/19/18 2/22/18 2/25/18 2/28/18 12/1/17 12/30/17 1/28/18 2/26/18
GPB SaaS Index S&P 500 NASDAQ Composite GPB SaaS Index S&P 500 NASDAQ Composite
L6M L12M
130.0% 160.0%
125.0% 150.0%
120.0% 140.0%
Index Value
Index Value
115.0% 130.0%
110.0% 120.0%
105.0% 110.0%
100.0% 100.0%
95.0% 90.0%
9/1/17 10/1/17 10/31/17 11/30/17 12/30/17 1/29/18 2/28/18 2/28/17 5/31/17 8/31/17 11/30/17 2/28/18
GPB SaaS Index S&P 500 NASDAQ Composite GPB SaaS Index S&P 500 NASDAQ Composite

4 Key SaaS Metrics

8
20
Key SaaS Metrics
Definitions & Calculations
Metric Definition Calculation
Normalized measurement of recurring revenue, most frequently

MRR measured with a constant value in each month of the MRR = # 𝑜𝑓 𝑝𝑎𝑦𝑖𝑛𝑔 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 ∗ 𝐴𝑅𝑃𝐴/𝑚𝑜𝑛𝑡ℎ
subscription period
Customer Acquisition All S&M expenses for new customers. Sometimes excludes people
CAC =
𝑆&𝑀
Cost (CAC) management S&M costs # 𝑜𝑓 𝑛𝑒𝑤 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠
Customer Lifetime Value Amount of profit a customer is calculated to deliver to the 𝐴𝑅𝑃𝑈 ∗ 𝐺𝑀
CLV =
(CLV) company over the lifetime of the customer 𝐶ℎ𝑢𝑟𝑛 𝑟𝑎𝑡𝑒
The number of months a company requires to payback its cost of 𝐶𝐴𝐶

Payback Period customer acquisition
Payback Period =
𝐴𝑅𝑃𝐴 ∗ 𝐺𝑀
𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡 𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑

Gross Churn is the number of customers you lose in a given period Gross Churn =
𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑎𝑡 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡𝑖𝑚𝑒 𝑝𝑒𝑖𝑟𝑜𝑑
or cohort regardless of account expansion or growth
Churn (Gross & Net) Net Churn is the number of customers gained or lost in a given (𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡
𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑 − 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑔𝑎𝑖𝑛𝑒𝑑
period or cohort after taking into consideration new, reactivated, 𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑)
or expanded accounts Net Churn = 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑎𝑡
𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑
21
Key SaaS Metrics (Cont’d)
Investors focus on key SaaS metrics, long-term business model viability and valuations
• 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
MRR / ARR / ARRR
– 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 reported and for the above metrics)
• Customer Acquisition Cost (CAC) payback period is typically stated in months. Represents the time taken to fully pay
back sales and marketing investments
• 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
CAC vs. CLV – 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
• 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
• MRR Renewal: Total MRR of renewed customers/Total MRR of existing customers at year beginning. Top companies
Churn & Renewal Rates 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%+
Free Cash Flow / • Growth is of paramount importance, with excess cash being used to fuel growth
Burn Rate • Important, therefore, to understand the cash burn in the business and planning for capital efficient hyper-growth
Source(s): GP Bullhound analysis

22
4 Key SaaS Metrics

8
23
SaaS Company Executive Commentary
Celigo is redefining the future of cloud-based

application integration through an easy-to-use,
next-generation integration Platform-as-a-Service
(iPaaS) that enables companies to integrate almost
anything to anything.
"The phenomenal success of SaaS over the last ten years has
spawned thousands of new cloud applications. The
proliferation of these apps is a direct result of the
consumerization of enterprise software, where clunky
interfaces and complex implementations are a relic of the past.
Today, most mid-market companies use well over 100
specialized cloud-based apps and services that are easy to
purchase by line managers and quick to deploy. That’s the easy
part. They soon find out that to be successful, they need to
JAN ARENDTSZ
integrate the enterprise. These apps need to be connected with a
Founder & CEO simplicity that matches the simplicity of the underlying apps
themselves."
24
SaaS Company Executive Commentary (Cont’d)
Signavio enables companies to translate between

strategy and execution. Its Business Transformation
Suite helps analyze, improve, reinvent and
automate business processes across the enterprise.
"Many companies are overwhelmed with the pace, volume and

complexity of change. Faced with disruption in the market,
new technologies and complex regulatory requirements,
organizations are desperate to become more agile. SaaS
offerings like the Signavio suite come at a perfect time to help
these businesses solve their challenges and fundamentally
improve the way they work. With a focus on delivering
customer success, SaaS providers can make a sustainable
difference at scale - and yield fantastic returns for their
GERO DECKER investors along the way."
Co-Founder & CEO
25
SaaS Company Executive Commentary (Cont’d)
TIS is a leading global cloud platform for managing

corporate payments and cash flows. The platform
provides bank account management, payments,
business discovery, cash flow, ERP integration, and
certification solutions for treasurers, CFOs, and firms
in the accounting and IT industry.
“As any scrappy entrepreneur will tell you, cash burn rates
provide a very good sense for the steady-state health of the
business. Detailed cash flow metrics are a must have.
However, large organizations rarely use this metrics to run
their business. They still rely on accounting data. This triggers
some problems, because accounting data is an opinion from
yesterday, after the accountant has dome his work. Only cash
tells you the truth in real time. CXO`s have realized that cash
JOERG WIEMER flow is the lifeblood of a business and payment processes are
Co-Founder & CEO carrying this lifeblood. We deliver smart payment processes to
help great organizations to make better decisions in real time.”
26
4 Key SaaS Metrics

8
27
Public Comps – GP Bullhound SaaS Index
CY
Salesforce US 29,401 $116.25 42.9% 24.1% 2.2% $83,967 $81,945 $4,522 7.8x 6.5x 5.5x 36.5x 29.8x 29.8x 20.2% 76.6% 21.9%
Square US 2,338 46.05 165.9% 84.9% 0.2% 18,252 17,751 866 18.3x 6.5x 10.3x NM 70.7x 70.7x 181.1% 85.7% 9.2%
j2 Global CA 3,000 138.21 133.4% 33.2% 7.1% 14,498 13,555 943 20.5x 13.6x 9.9x NM NM NM 51.2% 56.8% 3.6%
Veeva US 1,794 69.70 59.5% 22.0% 14.3% 9,852 9,090 762 13.4x 11.1x 9.4x 40.0x 34.2x 34.2x 20.3% 72.9% 32.5%
Ultimate Software US 4,208 238.46 23.3% 21.3% 2.6% 7,291 7,135 165 7.6x 6.4x 5.4x 33.2x 25.8x 25.8x 19.2% 65.0% 24.9%
Paycom US 2,548 98.92 83.8% 36.0% 6.4% 5,854 5,844 46 13.5x 10.8x 8.7x 44.0x 26.8x 26.8x 25.8% 83.6% 40.1%
athenahealth US 5,156 139.74 18.5% 0.8% 6.5% 5,603 5,711 165 4.7x 4.2x 3.8x 21.7x 16.3x 16.3x 11.3% 58.3% 26.0%
Zendesk US 2,060 43.18 58.6% 58.4% 10.5% 4,464 4,217 247 9.9x 7.5x 5.9x NM NM NM 31.7% 73.6% 6.2%
2U US 1,865 82.78 126.5% 71.2% 9.6% 4,364 4,163 223 14.6x 10.4x 7.8x NM NM NM 40.7% 81.1% 4.1%
HubSpot US 2,081 111.05 86.6% 61.9% 9.2% 4,204 3,998 504 10.8x 8.3x 6.6x NM NM NM 30.6% 82.1% 8.7%
New Relic US 1,253 71.78 104.0% 49.4% 15.9% 3,980 3,747 233 11.4x 8.8x 7.1x NM NM NM 29.5% NA 8.6%
Medidata Solutions US 1,424 65.66 17.4% (9.5%) (8.5%) 3,841 3,732 484 6.8x 5.9x 5.0x 28.4x 22.8x 22.8x 16.8% 78.5% 25.7%
Wix IL 1,266 75.05 20.5% 23.9% 20.3% 3,412 3,179 233 7.5x 5.4x 4.3x 47.3x 30.0x 30.0x 40.1% 80.4% 17.8%
Box US 1,726 24.06 36.5% 22.6% 7.4% 3,304 3,182 208 6.3x 5.1x 4.1x NM NM NM 23.6% 74.6% 3.1%
Qualys US 869 74.05 111.9% 62.6% 15.2% 2,860 2,572 288 11.2x 9.3x 7.9x 30.4x 26.3x 26.3x 20.5% 78.8% 35.3%
Coupa Software US 652 44.60 68.6% 44.4% 16.4% 2,455 2,236 219 12.3x 9.9x 8.0x NM NM NM 24.5% 72.2% (3.5%)
Cornerstone OnDemand US 1,891 41.00 (1.8%) 19.3% (2.7%) 2,350 2,320 563 4.8x 4.6x 4.2x 35.5x 25.8x 25.8x 4.3% 75.5% 17.8%
Blackline US 726 44.00 54.2% 47.1% 30.9% 2,326 2,213 113 12.7x 9.9x 7.9x NM NM NM 27.7% 80.3% 4.6%

Note: Multiples in excess of 75.0x or less than 0.0x are considered not-material (“NM”) and not taken into 28
average calculation consideration
Public Comps – GP Bullhound SaaS Index (Cont'd)
CY
Alteryx US 515 $34.19 NA 51.7% 12.2% $2,023 $1,849 $174 14.4x 10.3x 7.8x NM NM NM 39.3% 84.0% (8.6%)
Q2 Holdings US 844 45.55 26.7% 10.7% 11.2% 1,914 1,815 100 9.4x 7.7x 6.3x NM NM NM 21.3% 52.4% 8.6%
Five9 US 840 30.36 90.8% 46.3% 14.4% 1,690 1,667 69 8.5x 7.2x 6.1x NM 62.7x 62.7x 18.2% 61.4% 11.4%
8x8 US 1,019 18.25 20.9% 38.8% 2.8% 1,682 1,521 161 5.4x 4.6x 3.8x 72.2x 73.0x 73.0x 17.5% NA 6.3%
MINDBODY US 1,440 35.65 34.3% 59.5% 1.4% 1,674 1,456 232 8.0x 6.2x 5.0x NM 65.8x 65.8x 28.2% 72.8% 9.5%
Appian US 859 27.04 NA 20.0% (13.9%) 1,642 1,569 74 9.3x 7.8x 6.6x NM NM NM 19.0% 65.0% (18.9%)
MongoDB US 930 32.21 NA NA 14.3% 1,629 1,341 289 8.8x 6.5x 4.8x NM NM NM 35.8% 70.5% (38.0%)
AppFolio US 672 40.10 61.4% (4.5%) (8.1%) 1,366 1,320 46 9.3x 7.3x 5.9x 49.0x 35.3x 35.3x 27.9% 61.9% 20.6%
Apptio US 753 28.90 122.5% 65.3% 11.1% 1,232 1,083 149 5.8x 4.9x 4.1x NM NM NM 19.8% 71.7% 2.6%
ForeScout Technologies US 818 29.78 NA NA (10.1%) 1,143 979 186 4.5x 3.7x 3.0x NM NM NM 23.0% 74.3% (12.5%)
SPS Commerce US 1,336 60.02 8.5% (0.3%) 14.0% 1,035 872 163 4.0x 3.6x 3.3x 27.4x 20.4x 20.4x 10.3% 67.6% 17.6%
Workiva US 1,318 22.75 52.2% 14.6% 2.7% 968 911 77 4.4x 3.9x 3.4x NM NM NM 13.8% 77.4% (12.1%)
LivePerson US 954 14.45 105.0% 12.5% 20.4% 860 804 56 3.7x 3.4x 3.0x 44.2x 37.1x 37.1x 9.8% 75.5% 9.1%
SecureWorks US 2,306 9.87 (5.5%) (5.6%) 1.8% 800 701 100 1.5x 1.4x 1.3x NM NM NM 8.4% 55.2% (1.4%)
Benefitfocus US 1,430 24.20 (8.9%) (17.3%) (4.7%) 757 822 55 3.2x 2.9x 2.6x 43.4x 29.6x 29.6x 9.6% 54.1% 9.9%
Castlight Health US 381 3.55 0.0% (2.7%) (5.3%) 475 386 93 3.0x 2.5x 2.1x NM NM NM 17.2% 70.5% (7.0%)
MobileIron US 854 4.80 0.0% 28.0% 14.3% 461 368 93 2.1x 1.9x 1.7x NM NM NM 10.8% 85.4% (0.7%)
CLX Communications SE 340 7.39 (42.6%) (44.5%) (17.0%) 396 438 20 1.2x 1.0x 0.9x 11.8x 10.7x 10.7x 14.7% 24.0% 9.7%
Vitec Software Group SE 600 9.91 24.5% (2.3%) (5.6%) 296 338 7 3.3x 2.9x 2.9x 11.9x 10.4x 10.4x 12.0% 91.6% 28.3%
Amber Road US 677 9.10 20.7% 22.3% 21.3% 248 261 9 3.3x 3.1x 2.8x NM NM NM 8.6% 54.9% 2.1%
Brightcove US 498 6.85 (18.5%) (1.4%) (2.1%) 239 214 26 1.4x 1.3x 1.2x NM 54.8x 54.8x 7.4% 64.4% 2.3%
ChannelAdvisor US 737 8.85 (17.7%) (11.9%) (1.7%) 235 184 53 1.5x 1.4x 1.3x 39.3x 28.4x 28.4x 4.9% 79.2% 5.0%
Average 8.2x 6.3x 5.3x 38.5x 36.5x 36.5x 26.2% 71.7% 8.8%
Median 8.0x 6.3x 5.0x 36.0x 29.9x 29.9x 24.5% 74.3% 9.1%

4 Key SaaS Metrics

8
30
Public Comps – Large-Cap Consolidator
CY
Microsoft US 124,000 $93.77 46.6% 28.8% (0.3%) $722,010 $676,663 $138,535 6.7x 6.1x 5.6x 17.0x 14.9x 13.1x 10.3% NA 40.6%
Intel US 102,700 49.29 36.2% 42.3% (1.6%) 230,677 243,488 14,002 3.9x 3.8x 3.6x 9.5x 9.0x 8.4x 4.6% 61.6% 41.5%
Cisco US 72,900 44.78 31.0% 42.0% 5.2% 215,728 181,437 73,683 3.8x 3.6x 3.5x 10.6x 10.5x 10.5x 4.0% NA 34.6%
Oracle US 138,000 50.67 19.0% 2.9% (3.9%) 209,754 199,282 71,580 5.1x 4.9x 4.7x 11.1x 10.6x 10.0x 4.0% NA 46.6%
IBM US 366,600 155.83 (13.3%) 9.3% (6.9%) 143,546 177,953 12,582 2.3x 2.2x 2.2x 9.3x 9.1x 9.0x 1.9% 47.6% 24.3%
SAP DE 88,543 105.56 12.8% 0.7% (7.6%) 126,551 126,629 6,005 4.5x 4.3x 4.0x 12.9x 12.4x 11.4x 5.2% 71.9% 34.3%
Hewlett Packard US 66,000 18.59 (18.5%) 4.5% 11.3% 29,131 35,451 7,673 1.1x 1.2x 1.1x 6.3x 6.7x 6.7x (7.1%) NA 17.2%
Average 3.9x 3.7x 3.5x 10.9x 10.5x 9.9x 3.3% 60.4% 34.2%
Median 3.9x 3.8x 3.6x 10.6x 10.5x 10.0x 4.0% 61.6% 34.6%

Public Comps – Advertising Technology
CY
Alphabet US 80,110 $1,103.92 30.7% 18.9% (7.0%) $767,836 $669,934 $101,871 6.1x 5.0x 4.3x 15.3x 13.0x 11.1x 21.2% 61.0% 38.6%
Adobe US 17,973 209.13 76.7% 37.8% 3.9% 102,804 98,867 5,820 13.6x 11.3x 9.6x 32.5x 25.2x 21.2x 21.0% 87.8% 44.8%
Teradata US 10,615 36.82 18.4% 18.6% (9.9%) 4,492 4,181 1,089 2.0x 1.9x 1.9x 11.3x 10.9x 10.4x 2.0% 53.1% 17.6%
Hubspot US 2,081 111.05 86.6% 61.9% 9.2% 4,204 3,998 504 10.8x 8.3x 6.6x NM NM 62.8x 30.6% 82.1% 8.7%
Trade Desk US 713 56.26 33.3% 9.5% 9.8% 2,354 2,226 156 7.2x 5.5x 4.4x 24.4x 18.8x 13.8x 31.5% 78.5% 29.2%
Criteo FR 2,764 29.99 (36.2%) (35.2%) 20.2% 1,982 1,588 414 1.7x 1.6x 1.4x 5.4x 5.2x 4.5x 9.9% 86.7% 29.8%
TechTarget US 659 17.28 88.9% 78.0% 11.5% 475 474 34 4.4x 3.9x 3.4x 21.9x 16.3x 12.8x 13.1% 74.1% 23.7%
Average 6.4x 5.3x 4.5x 28.6x 21.2x 21.0x 17.6% 74.5% 23.7%
Median 6.7x 5.3x 4.3x 24.4x 18.8x 16.8x 20.6% 77.5% 22.8%

Public Comps – Business Intelligence/Analytics
CY
IBM US 366,600 155.83 (13.3%) 9.3% (6.9%) 143,546 177,953 12,582 2.3x 2.2x 2.2x 9.3x 9.1x 9.0x 1.9% 47.6% 24.3%
SAP DE 88,543 105.56 12.8% 0.7% (7.6%) 126,551 126,629 6,005 4.5x 4.3x 4.0x 12.9x 12.4x 11.4x 5.2% 71.9% 34.3%
Adobe US 17,973 209.13 76.7% 37.8% 3.9% 102,804 98,867 5,820 13.6x 11.3x 9.6x 32.5x 25.2x 21.2x 21.0% 87.8% 44.8%
NetApp US 10,100 60.55 44.8% 57.9% (4.4%) 16,223 12,769 5,626 2.2x 2.1x 2.0x 9.8x 9.2x 8.5x 5.8% NA 22.9%
Tableau Software US 3,489 81.67 54.9% 13.9% 6.3% 6,659 5,804 855 6.7x 6.0x 5.3x NM NM 63.8x 11.3% 87.4% 5.0%
Fair Isaac US 3,358 169.94 30.7% 22.2% (0.1%) 5,111 5,680 94 6.0x 5.6x 5.2x 24.9x 20.6x 19.1x 7.1% NA 27.1%
Blackbaud US 3,182 102.52 43.3% 21.9% 6.0% 4,800 5,208 30 6.6x 5.9x 5.4x 26.8x 24.6x 21.8x 11.3% 58.3% 24.1%
Teradata US 10,615 36.82 18.4% 18.6% (9.9%) 4,492 4,181 1,089 2.0x 1.9x 1.9x 11.3x 10.9x 10.4x 2.0% 53.1% 17.6%
Verint US 5,000 38.90 3.0% 0.5% (8.9%) 2,481 2,945 319 2.6x 2.4x 2.3x 11.4x 10.4x 9.0x 7.1% 65.3% 23.1%
Alteryx US 515 34.19 NA 51.7% 12.2% 2,023 1,849 174 14.4x 10.3x 7.8x NM NM NM 39.3% 84.0% (8.6%)
Inovalon US 2,119 12.00 0.0% (8.7%) (11.8%) 1,733 1,505 476 3.3x 3.2x 3.0x 13.8x 12.9x 11.7x 4.3% 67.4% 24.8%
MicroStrategy US 2,216 127.98 (33.3%) 1.3% (7.1%) 1,465 790 675 1.6x 1.6x 1.5x 7.7x 12.3x 10.9x 1.4% 80.6% 12.7%
Apptio US 753 28.90 122.5% 65.3% 11.1% 1,232 1,083 149 5.8x 4.9x 4.1x NM NM 67.4x 19.8% 71.7% 2.6%
SAS AB SE 9,929 2.57 56.3% 11.4% 3.3% 985 862 1,176 0.2x 0.2x 0.2x 1.8x 1.9x 1.9x (3.6%) NA 8.9%
SDL UK 3,310 5.74 (4.5%) (3.4%) (13.9%) 472 436 34 1.1x 1.1x 1.0x 13.0x 10.2x 9.2x 7.7% 53.4% 10.3%
Gridsum CN 929 10.89 (7.2%) 16.2% (14.4%) 335 336 39 3.4x 2.1x 1.5x NM 16.4x 6.0x 60.1% NA 13.0%
iSentia AU 1,300 0.80 (33.0%) (39.7%) (29.7%) 159 198 11 1.8x 1.9x 1.8x 7.5x 7.8x 7.2x (6.9%) NA 24.3%
Attunity IL 253 7.33 (16.2%) 14.5% 3.4% 152 123 29 2.0x 1.7x 1.4x 31.8x 23.3x NA 19.3% 85.7% 7.1%
Datawatch US 144 9.35 23.0% (5.1%) (16.5%) 115 86 30 2.3x 2.0x NA NM NM NA 13.1% NA 2.4%
Hottolink JP 88 6.63 50.1% 13.6% (12.7%) 86 89 10 NA NA NA NA NA NA NA NA NA
Mattersight US 265 2.35 (33.8%) 6.8% (17.5%) 78 97 9 2.1x 2.0x 1.8x NM NM 31.2x 8.5% 72.2% 1.2%
Expert System IT 238 1.61 (12.5%) (20.7%) (5.0%) 57 69 13 2.4x 2.1x 2.0x NM 18.2x 9.6x 12.5% NA 11.6%
Marin Software US 437 7.80 (51.6%) 1.3% (17.9%) 44 20 28 NA NA NA NA NA NA NA NA NA
Average 4.9x 4.1x 3.6x 17.1x 17.3x 20.4x 15.7% 72.0% 12.6%
Median 4.0x 3.6x 3.0x 12.9x 12.9x 11.1x 11.9% 74.3% 12.1%

Public Comps – Communication
CY
Microsoft US 124,000 $93.77 46.6% 28.8% (0.3%) $722,010 $676,663 $138,535 6.7x 6.1x 5.6x 17.0x 14.9x 13.1x 10.3% NA 40.6%
Cisco US 72,900 44.78 31.0% 42.0% 5.2% 215,728 181,437 73,683 3.8x 3.6x 3.5x 10.6x 10.5x 10.5x 4.0% NA 34.6%
Citrix US 7,500 92.00 16.5% 21.7% (2.9%) 12,526 12,906 1,748 4.6x 4.5x 4.3x 12.7x 13.6x 13.1x 1.9% 87.0% 32.9%
NICE Systems IL 4,930 97.60 40.5% 26.2% 6.7% 5,946 6,001 392 4.5x 4.2x 3.9x 15.8x 14.3x 12.9x 7.3% 70.4% 29.1%
Nuance US 11,600 16.06 (5.7%) 2.0% (11.5%) 4,717 6,506 511 3.3x 3.1x 3.0x 11.1x 10.5x 9.7x 5.1% NA 29.7%
8x8 US 1,019 18.25 20.9% 38.8% 2.8% 1,682 1,521 161 5.4x 4.6x 3.8x 72.2x 73.0x 39.8x 17.5% NA 6.3%
Synchronoss US 1,765 9.34 (65.5%) (44.1%) 12.3% 444 568 194 1.2x 1.4x 1.5x 4.9x 6.9x 8.7x (14.7%) 62.2% 20.4%
CLX Communications SE 340 7.39 (42.6%) (44.5%) (17.0%) 396 438 20 1.2x 1.0x 0.9x 11.8x 10.7x 9.0x 14.7% 24.0% 9.7%
Cybozu JP 516 5.16 34.2% 13.7% (11.3%) 237 220 16 NA NA NA NA NA NA NA NA NA
V-cube JP 450 4.79 (14.7%) (12.5%) (6.0%) 115 137 30 NA NA NA NA NA NA NA NA NA
Average 5.7x 4.8x 4.2x 24.6x 25.7x 19.8x 13.4% 67.5% 20.9%
Median 4.5x 4.3x 3.8x 12.7x 14.0x 13.0x 10.1% 72.0% 24.4%

Public Comps – ERP & Enterprise Application
CY
Oracle US 138,000 $50.67 19.0% 2.9% (3.9%) $209,754 $199,282 $71,580 5.1x 4.9x 4.7x 11.1x 10.6x 10.0x 4.0% NA 46.6%
SAP DE 88,543 105.56 12.8% 0.7% (7.6%) 126,551 126,629 6,005 4.5x 4.3x 4.0x 12.9x 12.4x 11.4x 5.2% 71.9% 34.3%
Shopify CA 3,000 138.21 133.4% 33.2% 7.1% 14,498 13,555 943 20.5x 13.6x 9.9x NM NM NM 51.2% 56.8% 3.6%
Constellation Software CA 12,124 648.36 37.7% 17.4% 0.2% 13,740 13,587 489 5.5x 4.5x 4.0x 21.2x 17.4x 15.1x 22.2% 66.0% 26.0%
Sage Group UK 13,292 9.56 19.0% 6.7% (11.0%) 10,346 11,364 310 4.9x 4.4x 4.1x 16.4x 14.8x 13.6x 11.9% NA 29.7%
Tyler Technologies US 4,069 203.11 33.9% 20.2% 0.5% 7,698 7,469 229 8.9x 8.1x 7.4x 29.6x 27.1x 23.8x 9.4% 51.7% 29.8%
Yonyou Networks CN 15,023 5.18 85.1% 59.5% 41.0% 7,582 7,858 439 8.3x 6.8x 5.9x NM 61.5x 52.5x 21.0% 69.2% 11.1%
Guidewire Software US 1,945 80.32 47.0% 8.7% (0.2%) 6,170 5,608 561 9.9x 8.3x 7.2x 47.2x 36.8x 36.8x 19.2% NA 22.5%
Prosegur ES 158,612 8.03 38.5% 20.2% (4.8%) 4,805 5,258 1,346 1.0x 1.0x 0.9x 8.4x 7.6x 7.0x 5.4% 80.7% 12.7%
Blackbaud US 3,182 102.52 43.3% 21.9% 6.0% 4,800 5,208 30 6.6x 5.9x 5.4x 26.8x 24.6x 21.8x 11.3% 58.3% 24.1%
Zendesk US 2,060 43.18 58.6% 58.4% 10.5% 4,464 4,217 247 9.9x 7.5x 5.9x NM NM 72.2x 31.7% 73.6% 6.2%
Medidata Solutions US 1,424 65.66 17.4% (9.5%) (8.5%) 3,841 3,732 484 6.8x 5.9x 5.0x 28.4x 22.8x 18.3x 16.8% 78.5% 25.7%
Aveva Group UK 1,707 39.82 67.5% 62.9% (5.6%) 2,549 2,365 178 7.9x 7.2x 7.0x 28.2x 25.3x 23.8x 8.8% NA 28.7%
Five9 US 840 30.36 90.8% 46.3% 14.4% 1,690 1,667 69 8.5x 7.2x 6.1x NM 62.7x 44.1x 18.2% 61.4% 11.4%
Appian US 859 27.04 NA 20.0% (13.9%) 1,642 1,569 74 9.3x 7.8x 6.6x NM NM NM 19.0% 65.0% (18.9%)
Enghouse CA 1,504 51.87 28.8% 29.9% (1.7%) 1,401 1,301 101 4.8x 4.8x 4.3x 17.5x 17.0x 15.5x 1.6% NA 28.0%
Technology One AU 994 3.74 (3.0%) (5.0%) (7.3%) 1,181 1,108 73 5.0x 4.5x 4.0x 20.2x 18.7x 16.0x 13.0% NA 23.8%
SPS Commerce US 1,336 60.02 8.5% (0.3%) 14.0% 1,035 872 163 4.0x 3.6x 3.3x 27.4x 20.4x 16.9x 10.3% 67.6% 17.6%
QAD US 1,850 45.00 63.9% 38.9% 6.0% 833 707 140 2.3x 2.2x 2.1x 51.0x 36.6x 30.3x 4.9% 52.2% 6.0%
BasWare FI 1,829 54.21 39.0% 11.8% 2.7% 779 814 25 4.5x 4.6x 4.2x NM NM NM (1.3%) 89.7% 1.7%
Model N US 864 17.10 60.6% 26.7% 12.5% 504 513 48 3.7x 3.4x 3.1x NM NM 37.4x 8.6% NA 4.1%
Synchronoss US 1,765 9.34 (65.5%) (44.1%) 12.3% 444 568 194 1.2x 1.4x 1.5x 4.9x 6.9x 8.7x (14.7%) 62.2% 20.4%
American Software US 372 12.44 20.3% 22.4% (3.3%) 375 297 78 2.8x 2.5x 2.4x 15.2x 14.4x 12.5x 11.1% NA 17.4%
ServiceSource US 3,000 3.66 (7.1%) 0.3% 4.6% 330 286 189 1.2x 1.2x 1.1x 18.3x 13.9x 10.3x 3.2% 36.0% 8.4%
Amber Road US 677 9.10 20.7% 22.3% 21.3% 248 261 9 3.3x 3.1x 2.8x NM NM 51.1x 8.6% 54.9% 2.1%
Freelancer AU 390 0.34 (46.9%) (6.3%) (4.9%) 157 132 25 3.4x 3.2x 2.8x NM NM 53.0x 5.6% 88.1% 0.5%
Average 6.4x 5.4x 4.7x 28.7x 25.7x 25.5x 13.9% 68.4% 16.4%
Median 5.1x 4.8x 4.3x 27.1x 22.6x 20.8x 11.3% 68.4% 17.6%

Public Comps – Financial Application
CY
Intuit US 8,200 $166.86 33.0% 21.0% (2.1%) $42,735 $43,112 $726 7.9x 7.2x 6.6x 21.6x 19.7x 17.9x 9.6% NA 36.8%
Fidelity National US 53,000 97.18 18.1% 5.9% (5.5%) 32,184 40,391 665 4.4x 4.7x 4.5x 13.2x 12.9x 12.1x (6.3%) 39.5% 36.5%
Fiserv US 24,000 143.39 24.3% 16.7% 0.6% 29,626 34,201 325 6.0x 5.8x 5.6x 16.9x 16.2x 15.2x 3.7% 46.7% 35.9%
MSCI US 3,038 141.52 49.6% 24.2% 0.7% 12,729 13,918 890 10.9x 9.7x 8.8x 21.1x 17.7x 15.9x 13.3% 79.2% 54.4%
SS&C US 8,001 49.52 41.4% 30.2% (1.2%) 10,228 12,209 64 7.3x 6.9x 6.6x 17.6x 16.1x 14.9x 5.9% 57.9% 42.6%
Jack Henry & Associates US 5,972 117.30 25.1% 16.7% (7.3%) 9,063 9,105 58 6.2x 5.8x 5.5x 17.6x 17.1x 16.0x 6.6% NA 34.1%
Temenos CH 4,356 117.49 51.7% 22.0% (14.8%) 8,258 8,540 168 11.7x 10.1x 9.1x 33.3x 26.9x 23.6x 16.0% 82.0% 37.5%
Black Knight US 4,430 47.65 NA NA (7.6%) 7,154 8,577 16 8.1x 7.7x 7.1x 16.9x 15.9x 14.5x 5.7% NA 48.2%
Oracle Financial IN 9,064 60.38 7.6% 11.0% (9.0%) 5,157 4,705 462 6.7x 6.1x 5.6x 16.5x 15.0x 14.0x 9.8% NA 40.3%
Fair Isaac US 3,358 169.94 30.7% 22.2% (0.1%) 5,111 5,680 94 6.0x 5.6x 5.2x 24.9x 20.6x 19.1x 7.1% NA 27.1%
Ellie Mae US 1,280 88.67 (7.2%) 8.8% (8.9%) 3,035 2,794 241 6.8x 5.6x 4.8x 23.4x 21.4x 16.0x 20.7% 59.4% 26.2%
Ebix US 4,515 83.95 34.3% 47.3% (0.2%) 2,641 2,923 89 8.2x 7.0x 6.2x 23.8x 19.0x 17.2x 17.6% 65.4% 36.7%
SimCorp DK 1,547 62.87 12.7% 5.3% (0.9%) 2,477 2,475 38 6.1x 5.4x 5.0x 23.4x 19.5x 17.7x 13.1% 61.4% 27.6%
Envestnet US 3,197 55.10 42.6% 29.3% 1.3% 2,441 2,622 60 3.9x 3.2x 2.9x 21.6x 17.1x 14.2x 20.4% 64.0% 18.7%
Fidessa UK 1,705 51.74 65.7% 91.3% 50.4% 1,994 1,866 125 3.9x 3.9x 3.8x 17.2x 17.3x 16.0x 0.9% NA 22.5%
Q2 Holdings US 844 45.55 26.7% 10.7% 11.2% 1,914 1,815 100 9.4x 7.7x 6.3x NM NM 53.9x 21.3% 52.4% 8.6%
Bottomline Technologies US 1,600 37.98 52.2% 28.9% 2.2% 1,545 1,621 74 4.5x 4.0x 3.7x 19.5x 17.8x 15.0x 10.7% NA 22.7%
MYOB AU 1,500 2.46 (10.7%) (13.1%) (11.4%) 1,489 1,784 43 5.4x 4.9x 4.5x 12.0x 11.6x 10.6x 11.3% 90.1% 41.9%
IRESS AU 1,881 8.09 (11.2%) (14.9%) (17.2%) 1,372 1,500 22 4.5x 4.1x 3.9x 16.9x 15.1x 13.7x 8.8% 26.7% 27.5%
Apptio US 753 28.90 122.5% 65.3% 11.1% 1,232 1,083 149 5.8x 4.9x 4.1x NM NM 67.4x 19.8% 71.7% 2.6%
Asseco PL 22,364 13.81 0.2% 8.6% (4.3%) 1,147 1,248 134 0.6x 0.5x 0.5x 4.7x 3.9x 4.0x 17.2% 22.8% 12.4%
Average 6.4x 5.7x 5.2x 19.1x 16.9x 19.5x 11.1% 58.5% 30.5%
Median 6.1x 5.6x 5.2x 17.6x 17.1x 15.9x 10.7% 60.4% 34.1%

Public Comps – Human Capital Management
CY
ADP US 58,000 $115.32 12.4% 10.1% (5.7%) $51,118 $51,344 $1,777 4.0x 3.7x 3.5x 19.8x 17.7x 16.0x 7.8% NA 21.2%
Ultimate Software US 4,208 238.46 23.3% 21.3% 2.6% 7,291 7,135 165 7.6x 6.4x 5.4x 33.2x 25.8x 21.3x 19.2% 65.0% 24.9%
Paycom US 2,548 98.92 83.8% 36.0% 6.4% 5,854 5,844 46 13.5x 10.8x 8.7x 44.0x 26.8x 21.9x 25.8% 83.6% 40.1%
TriNet US 2,700 47.17 75.7% 33.0% 7.0% 3,305 3,392 336 4.2x 4.0x 3.7x 12.2x 11.0x 10.0x 6.4% 74.4% 36.2%
Cornerstone OnDemand US 1,891 41.00 (1.8%) 19.3% (2.7%) 2,350 2,320 563 4.8x 4.6x 4.2x 35.5x 25.8x 18.2x 4.3% 75.5% 17.8%
WageWorks US 1,958 52.45 (31.9%) (11.2%) (14.6%) 2,079 1,431 892 3.0x 2.7x 2.5x 9.8x 8.5x 7.5x 8.9% 65.1% 32.1%
Benefitfocus US 1,430 24.20 (8.9%) (17.3%) (4.7%) 757 822 55 3.2x 2.9x 2.6x 43.4x 29.6x 21.2x 9.6% 54.1% 9.9%
Solium CA 611 8.50 32.8% 3.6% (7.3%) 475 407 70 4.7x 4.1x 3.5x 37.8x 30.3x 18.2x 14.9% NA 13.4%
Freelancer AU 390 0.34 (46.9%) (6.3%) (4.9%) 157 132 25 3.4x 3.2x 2.8x NM NM 53.0x 5.6% 88.1% 0.5%
Average 7.0x 5.8x 4.9x 38.2x 27.0x 22.6x 17.6% 72.3% 20.2%
Median 5.5x 4.6x 4.2x 35.5x 26.8x 21.3x 19.2% 73.9% 20.8%

Public Comps – Infrastructure
CY
VMware US 18,905 $131.75 46.6% 25.9% (12.2%) $53,113 $45,733 $11,653 5.8x 5.3x 4.9x 15.6x 14.4x 12.8x 9.8% 88.1% 36.8%
Red Hat US 10,500 147.40 78.0% 39.6% 9.0% 26,090 25,137 1,716 9.1x 7.7x 6.8x 33.6x 28.0x 23.0x 17.4% NA 27.7%
Citrix US 7,500 92.00 16.5% 21.7% (2.9%) 12,526 12,906 1,748 4.6x 4.5x 4.3x 12.7x 13.6x 13.1x 1.9% 87.0% 32.9%
Akamai Technologies US 7,650 67.46 7.8% 49.4% (0.2%) 11,411 11,362 712 4.6x 4.2x 3.8x 12.3x 11.4x 10.1x 8.6% 66.2% 36.9%
F5 Networks US 4,276 148.52 3.7% 26.2% 7.4% 9,185 8,181 1,005 3.9x 3.8x 3.7x 9.9x 9.8x NA 3.4% NA 38.6%
Juniper Networks US 9,381 25.66 (8.4%) (6.8%) (9.0%) 8,821 8,004 3,033 1.6x 1.7x 1.6x 5.9x 7.4x 6.6x (5.9%) 59.4% 22.8%
Trend Micro JP 5,627 56.97 29.7% 22.5% 1.8% 7,841 6,413 1,353 4.9x 4.2x 4.0x 14.3x 12.8x 12.0x 16.8% 80.9% 32.7%
Nutanix US 3,009 36.45 21.5% 64.2% 10.5% 5,847 5,482 918 5.6x 4.8x 3.9x NM NM 71.2x 16.9% NA 1.8%
Pure Storage US 2,000 21.67 90.1% 52.1% 8.8% 4,698 4,146 597 4.1x 3.1x 2.5x NM 48.3x 26.9x 31.2% 65.6% 6.4%
Software AG DE 4,596 52.84 NA NA (1.6%) 3,909 3,811 471 3.6x 3.5x 3.3x 11.3x 11.2x 10.4x 3.4% 76.4% 31.0%
Sophos UK 3,293 6.88 98.3% 4.3% (24.1%) 3,216 3,444 81 6.1x 4.9x 4.1x 61.5x 48.5x 33.9x 22.5% NA 10.2%
FireEye US 2,960 16.59 47.3% 14.7% 5.1% 3,178 3,061 897 4.1x 3.7x 3.5x 35.0x 29.3x 23.6x 10.3% 73.5% 12.8%
Qualys US 869 74.05 111.9% 62.6% 15.2% 2,860 2,572 288 11.2x 9.3x 7.9x 30.4x 26.3x 22.2x 20.5% 78.8% 35.3%
Commvault US 2,656 52.05 6.1% (13.0%) (6.9%) 2,339 1,894 445 2.7x 2.5x 2.3x 21.6x 17.8x 13.5x 9.8% NA 14.1%
NetScout Systems US 3,090 26.55 (28.1%) (18.7%) (0.4%) 2,317 2,237 380 2.1x 2.2x 2.2x 8.5x 11.0x 10.1x (7.5%) NA 20.1%
Progress Software US 1,470 46.87 63.4% 40.8% (7.4%) 2,174 2,112 184 5.3x 5.2x 5.2x 11.5x 11.0x 10.9x 1.9% 88.1% 47.6%
Alarm.com US 784 36.14 26.6% (19.1%) (4.0%) 1,706 1,680 96 5.0x 4.4x 3.9x 24.3x 20.5x 16.9x 14.3% 70.2% 21.5%
Extreme Networks US 1,628 11.41 82.6% 2.4% (17.6%) 1,315 1,370 128 1.8x 1.2x 1.1x 15.5x 9.5x NA 43.5% NA 12.9%
Rapid7 US 1,000 26.41 74.3% 63.5% 5.6% 1,185 1,094 91 5.5x 4.7x 3.9x NM NM NM 16.2% 73.7% (7.2%)
SecureWorks US 2,306 9.87 (5.5%) (5.6%) 1.8% 800 701 100 1.5x 1.4x 1.3x NM NM 29.9x 8.4% 55.2% (1.4%)
A10 Networks US 837 6.28 (33.6%) (2.3%) (9.6%) 444 320 124 1.4x 1.3x 1.2x 28.7x 25.4x 16.1x 4.5% 76.9% 5.2%
Metaps JP 246 25.83 (11.9%) (12.1%) (6.8%) 347 318 65 2.5x 1.4x 1.4x 67.0x NM NM 80.4% NA 1.1%
Average 6.0x 4.9x 4.2x 25.5x 25.7x 23.1x 19.9% 75.2% 19.4%
Median 5.0x 4.4x 3.9x 15.7x 16.1x 16.9x 16.8% 76.7% 20.1%

Public Comps – IT Security
CY
Cisco US 72,900 $44.78 31.0% 42.0% 5.2% $215,728 $181,437 $73,683 3.8x 3.6x 3.5x 10.6x 10.5x 10.5x 4.0% NA 34.6%
Check Point Software IL 4,281 103.89 5.0% (4.7%) (0.7%) 16,980 15,569 1,411 8.4x 8.0x 7.6x 15.0x 14.8x 13.8x 4.9% 88.9% 54.1%
Palo Alto Networks US 4,833 173.37 14.1% 34.1% 8.6% 15,924 14,825 1,636 7.5x 6.1x 5.2x 31.5x 23.5x 18.9x 22.8% NA 26.0%
Verisign US 952 116.02 40.7% 13.5% 0.6% 11,268 11,263 2,415 9.7x 9.3x 9.0x 14.0x 13.1x 12.5x 3.7% 83.9% 71.0%
Fortinet US 5,066 50.47 35.1% 35.5% 10.1% 8,480 7,229 1,251 4.9x 4.2x 3.8x 23.5x 18.7x 15.3x 14.7% 75.8% 22.7%
Trend Micro JP 5,627 56.97 29.7% 22.5% 1.8% 7,841 6,413 1,353 4.9x 4.2x 4.0x 14.3x 12.8x 12.0x 16.8% 80.9% 32.7%
Gemalto NL 15,000 60.27 (0.1%) 8.8% (2.2%) 5,418 6,444 385 1.8x 1.7x 1.6x 11.9x 10.9x 9.9x 4.5% 38.0% 15.7%
FireEye US 2,960 16.59 47.3% 14.7% 5.1% 3,178 3,061 897 4.1x 3.7x 3.5x 35.0x 29.3x 23.6x 10.3% 73.5% 12.8%
Qualys US 869 74.05 111.9% 62.6% 15.2% 2,860 2,572 288 11.2x 9.3x 7.9x 30.4x 26.3x 22.2x 20.5% 78.8% 35.3%
Verint US 5,000 38.90 3.0% 0.5% (8.9%) 2,481 2,945 319 2.6x 2.4x 2.3x 11.4x 10.4x 9.0x 7.1% 65.3% 23.1%
Cheetah Mobile CN 2,831 14.22 42.1% 49.5% (14.3%) 1,968 1,774 343 2.4x 2.1x 1.8x 19.8x 14.2x 11.2x 14.3% 62.9% 14.6%
CyberArk IL 823 49.51 (2.1%) 23.7% 13.8% 1,720 1,417 303 5.5x 4.5x 3.8x 25.3x 22.0x 17.8x 22.5% 86.8% 20.5%
Imperva US 1,020 46.65 13.8% 7.4% 7.7% 1,612 1,253 360 3.9x 3.4x 2.9x 28.9x 18.0x 14.8x 15.2% 81.2% 18.8%
Varonis Systems US 1,251 56.15 104.9% 47.0% 1.8% 1,581 1,444 137 6.9x 5.5x 4.7x NM NM NM 24.8% 90.8% 2.9%
Rapid7 US 1,000 26.41 74.3% 63.5% 5.6% 1,185 1,094 91 5.5x 4.7x 3.9x NM NM NM 16.2% 73.7% (7.2%)
Secureworks US 2,306 9.87 (5.5%) (5.6%) 1.8% 800 701 100 1.5x 1.4x 1.3x NM NM 29.9x 8.4% 55.2% (1.4%)
F-Secure FI 1,104 4.27 22.0% (11.9%) (13.6%) 670 560 108 2.7x 2.5x 2.3x 25.7x 26.2x 16.4x 8.6% NA 9.6%
VASCO Data US 615 12.05 (7.3%) (2.0%) (19.4%) 481 322 158 1.7x 1.6x 1.5x 16.9x 16.3x 12.4x 7.5% 70.7% 9.7%
MobileIron US 854 4.80 0.0% 28.0% 14.3% 461 368 93 2.1x 1.9x 1.7x NM NM 40.5x 10.8% 85.4% (0.7%)
Zix US 201 4.05 (19.2%) (20.7%) (5.4%) 223 190 33 2.9x 2.8x 2.6x 10.4x 9.4x 8.3x 3.8% 81.6% 29.8%
Absolute Software CA 504 5.01 (8.4%) (13.8%) (15.1%) 201 168 33 1.8x 1.7x 1.6x 22.0x 16.5x 11.3x 5.5% NA 10.4%
iPass US 163 0.41 (68.3%) (31.3%) (18.0%) 28 23 5 0.4x 0.4x 0.3x NM NM 3.7x 4.5% 38.8% (5.7%)
Average 5.3x 4.5x 3.9x 19.7x 22.7x 18.5x 13.5% 73.6% 18.3%
Median 4.1x 4.0x 3.8x 18.3x 16.5x 14.3x 10.8% 77.0% 14.6%

Public Comps – Marketing Application
CY
SAP DE 88,543 $105.56 12.8% 0.7% (7.6%) $126,551 $126,629 $6,005 4.5x 4.3x 4.0x 12.9x 12.4x 11.4x 5.2% 71.9% 34.3%
Acxiom US 3,260 27.37 (4.0%) 21.2% (0.2%) 2,167 2,219 178 2.5x 2.3x 2.1x 12.9x 10.7x 9.4x 7.7% NA 21.4%
Five9 US 840 30.36 90.8% 46.3% 14.4% 1,690 1,667 69 8.5x 7.2x 6.1x NM 62.7x 44.1x 18.2% 61.4% 11.4%
SDL UK 3,310 5.74 (4.5%) (3.4%) (13.9%) 472 436 34 1.1x 1.1x 1.0x 13.0x 10.2x 9.2x 7.7% 53.4% 10.3%
Marin Software US 437 7.80 (51.6%) 1.3% (17.9%) 44 20 28 NA NA NA NA NA NA NA NA NA
Average 3.6x 3.3x 2.9x 24.4x 26.9x 20.2x 8.9% 68.3% 15.2%
Median 3.1x 2.8x 2.6x 13.0x 20.4x 15.6x 7.7% 71.9% 10.9%

Public Comps – Storage
CY
Amazon US 566,000 1,512.45 79.0% 59.9% 7.9% 732,188 745,349 30,986 4.2x 3.2x 2.6x 38.9x 27.7x 21.3x 31.6% 38.3% 11.5%
Microsoft US 124,000 93.77 46.6% 28.8% (0.3%) 722,010 676,663 138,535 6.7x 6.1x 5.6x 17.0x 14.9x 13.1x 10.3% NA 40.6%
Oracle US 138,000 50.67 19.0% 2.9% (3.9%) 209,754 199,282 71,580 5.1x 4.9x 4.7x 11.1x 10.6x 10.0x 4.0% NA 46.6%
Verizon US 155,400 47.74 (3.8%) (1.8%) (12.8%) 194,755 311,775 2,079 2.5x 2.4x 2.4x 6.9x 6.6x 6.5x 2.5% 59.2% 36.9%
IBM US 366,600 155.83 (13.3%) 9.3% (6.9%) 143,546 177,953 12,582 2.3x 2.2x 2.2x 9.3x 9.1x 9.0x 1.9% 47.6% 24.3%
NetApp US 10,100 60.55 44.8% 57.9% (4.4%) 16,223 12,769 5,626 2.2x 2.1x 2.0x 9.8x 9.2x 8.5x 5.8% NA 22.9%
Iron Mountain US 24,000 31.46 (13.5%) (19.5%) (12.0%) 8,976 15,186 926 4.0x 3.6x 3.5x 12.0x 10.4x 9.8x 10.6% 55.9% 34.7%
Nutanix US 3,009 36.45 21.5% 64.2% 10.5% 5,847 5,482 918 5.6x 4.8x 3.9x NM NM 71.2x 16.9% NA 1.8%
Box US 1,726 24.06 36.5% 22.6% 7.4% 3,304 3,182 208 6.3x 5.1x 4.1x NM NM 59.2x 23.6% 74.6% 3.1%
CommVault US 2,656 52.05 6.1% (13.0%) (6.9%) 2,339 1,894 445 2.7x 2.5x 2.3x 21.6x 17.8x 13.5x 9.8% NA 14.1%
Average 4.2x 3.6x 3.3x 17.0x 16.9x 20.0x 15.0% 60.8% 24.1%
Median 4.0x 3.2x 2.6x 13.7x 10.6x 11.1x 10.6% 60.1% 24.3%

4 Key SaaS Metrics

8
42
About GP Bullhound
▪ GP Bullhound is a leading technology advisory and

investment firm, providing transaction advice and
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▪ With offices in London, San Francisco, Stockholm,

Berlin, Manchester, Paris, Hong Kong, Madrid and
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market-changing software companies
OUR MISSION ▪ In the last 18 months, we have completed 21

software M&A transactions and private
To advise the most passionate placements
technology entrepreneurs ▪ GP Bullhound has advised on M&A transactions

with leading software consolidators, including
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43
Software Market Report Overview
▪ GP Bullhound has established a quarterly market
report on the Software as a Service (“SaaS”) space
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
▪ The report examines the SaaS public company

landscape, M&A, private placement and IPO
trends
▪ The software sector has disrupted technology and

many other industries over the last several
decades; first providing a global wave of on-
premise software to all industries in the 1980s and
1990s; then modernizing traditional businesses
through cloud-based platforms and enabling
growth in business-to-consumer technologies, from
mobile, to banking, to real estate, to consumer
products
JONATHAN CANTWELL ▪ The shift of business applications to the cloud, de-

centralized IT operations and infrastructure
Director
software have percolated through organizations
large and small creating a Software Eating the
World paradigm
44
GP Bullhound’s Selected Software Transactions
Private placement Sold to Sold to Private placement Private placement
ECI Partners
Sold to Sold to Sold to Private placement Sold to
Sold to Private placement Private placement Sold to Sold to
Sold to Sold to Sold to Sold to Sold to
45
Authors
JONATHAN CANTWELL PER ROMAN ALEC DAFFERNER

Director Managing Partner Partner
Jonathan.Cantwell@gpbullhound.com Per.Roman@gpbullhound.com Alec.Dafferner@gpbullhound.com
MATT FINEGOLD OKAN INALTAY PIERCE LEWIS-OAKES

Associate Associate Analyst
Matt.Finegold@gpbullhound.com Okan.Inaltay@gpbullhound.com Pierce.Lewis-Oakes@gpbullhound.com
46
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Global Software Market Perspectives

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Global Software Market Perspectives

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Global Software Market Perspectives

Important disclosures appear at the back of this report

2 Recent Software Transaction Trends

3 Public Market SaaS Analyses

4 Key SaaS Metrics

5 SaaS CEO Commentary

6 Appendix A: GP Bullhound SaaS Index

7 Appendix B: Software Public Comps by Category

Appendix C: GP Bullhound Software Report

▪ Software consolidators are hyper focused on “growth acquisitions”

Source: Redpoint Ventures, Capital IQ

2 Recent Software Transaction Trends

3 Public Market SaaS Analyses

4 Key SaaS Metrics

5 SaaS CEO Commentary

6 Appendix A: GP Bullhound SaaS Index

7 Appendix B: Software Public Comps by Category

Appendix C: GP Bullhound Software Report

Enterprise Customer feedback

Source(s): Capital IQ, Pitchbook

M&A Buyout M&A Deals Buyout Deals Value Deals

Source(s): Pitchbook as of 2/28/2018

1. CY 2017E revenue multiple

Listed in 2017 To come in 2018

1. CY 2017E revenue multiple

2 Recent Software Transaction Trends

3 Public Market SaaS Analyses

4 Key SaaS Metrics

5 SaaS CEO Commentary

6 Appendix A: GP Bullhound SaaS Index

7 Appendix B: Software Public Comps by Category

Appendix C: GP Bullhound Software Report

Ultimate Software 7.3

New Relic 4.0

Source(s): Capital IQ as of 02/28/2018

7.0x Mean: 6.8x

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

The Rule of PFPT

Source(s): Capital IQ as of 02/28/2018

2018E Unlevered FCF Margin

(5%) SCWX (5%) BCOV SCWX

Horizontal Software Vertically-Specific Software

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

Source(s): Capital IQ as of 02/28/2018

Source(s): Capital IQ as of 02/28/2018

Source(s): Capital IQ as of 02/28/2018

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

2 Recent Software Transaction Trends

3 Public Market SaaS Analyses

4 Key SaaS Metrics

5 SaaS CEO Commentary

6 Appendix A: GP Bullhound SaaS Index

7 Appendix B: Software Public Comps by Category

Appendix C: GP Bullhound Software Report

Normalized measurement of recurring revenue, most frequently

The number of months a company requires to payback its cost of 𝐶𝐴𝐶

𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑙𝑜𝑠𝑡 𝑜𝑣𝑒𝑟 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑

Source(s): GP Bullhound analysis

2 Recent Software Transaction Trends

3 Public Market SaaS Analyses

4 Key SaaS Metrics

5 SaaS CEO Commentary

6 Appendix A: GP Bullhound SaaS Index