Piper Jaffray Software Activity Update · LTM Revenue $361.5 $130.5 $124.3 $65.1 MRQ Revenue $89.9 $32.4 $37.3 $45.0 (1) *Piper Jaffray estimate using EBITDA as proxy for FCF. TEAM

MINNEAPOLIS | BOSTON | CHICAGO | HOUSTON | LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO | ZÜRICH

Piper JaffraySoftware Activity Update First Quarter 2018

Michael KimHead of Technology Investment BankingPiper Jaffray & Co.

2PIPER JAFFRAY

Piper Jaffray Software Team OverviewGlobal Reach

Our firm consists of 1,300+ professionals in 59 offices globally including Minneapolis (HQ), San Francisco, Charlotte, New York,

Chicago, Seattle, Boston, Aberdeen, London, Hong Kong and Zürich

Technology Office Locations: San Francisco, CA Minneapolis, MNBoston, MA

23 investment bankers focused on Software, Financial Technology, Tech-Enabled

Services, BPO and Internet & Digital Media

Recent Transactions

Technology Team

Michael KimHead of Technology Investment BankingApplication Software

[email protected]

Peter LombardManaging Director

Head of Technology Mergers & [email protected]

Garin ArevianManaging Director

Vertical Applications & Tech-Enabled [email protected]

Andy LivadariuManaging Director

Application [email protected]

Jason MylerManaging Director

Vertical Applications & Tech-Enabled [email protected]

Steven SchmidtManaging Director

Financial and Application [email protected]

Greg KlancherPrincipal

Infrastructure & Security [email protected]

Domestic Expertise

has purchased a majority stake in

Undisclosed

Buy-Side Advisor

has been acquired by

Sell-Side Advisor

Undisclosed


Undisclosed

Sell-Side Advisor

has merged with

Undisclosed

Sell-Side Advisor

portfolio company of

Initial Public Offering

$150,880,000

Co-Manager


$884,400,000

Co-Manager


$120,000,000

Co-Manager

Undisclosed


$200,000,000 / $360,000,000

Follow-On Offering / Convertible Sr Notes

Co-Manager

Undisclosed

has Recapitalized

February 2018

Undisclosed

has been Acquired by

$869,400,000


$550,000,000

Convertible Debt Offering

$629,300,000


$200,000,000


mailto:[email protected]







3PIPER JAFFRAY

Leading Industry Conferences and Events

30 senior representatives from leading software and internet companies, venture capital and private equity firms focused on the technology and business services sectors

Technology Private Equity SummitOctober 2018 | New York, NY

Technology Ski SummitJanuary 2019 | Aspen, CO

• 50+ leading privately held software and internet companies

• 100+ leading technology growth equity and strategic investors

• 500+ one-on-one meetings between attending CEO's/CFO's and investors

Technology SelectSeptember 2018 | Laguna Niguel, CA

30+ of the most notable public technology companies will be paired with major institutional investors in one-on-one meetings providing direct insights and feedback

4PIPER JAFFRAY

Pricing Date Company Deal Description Deal Amount ($M)

3/22/18

Dropbox is a San Francisco, Calif.-based developer of a cloud-based storage platform designed to store documents, files, videos and photos.

The Company sold 41,400,000 shares at a price of $21 per share on the Nasdaq stock exchange under the ticker symbol of DBX

$869

3/15/18

Zscaler is a San Jose, Calif.-based provider of a software-as-a-service based security platform that secures access for users and devices to applications and services

The Company sold 13,800,000 shares at a price of $16 per share on the Nasdaq stock exchange under the ticker symbol of ZS

$221

Snapshot Of Select Software Initial Public Offerings During Q1 2018

Source: Public news releases, Pitchbook and CapitalIQ.

5PIPER JAFFRAY

Source: Dealogic.Deals, current market cap, and offer to current data as of 3/31/2018Includes all IPOs and FOs since 2016 greater than $20MM.

Recent Software IPO and Follow-On PerformanceRecent Technology Follow-onsRecent Software IPOs

PricingDate

IssuerDeal Val ($MM)

Mkt Cap ($MM)

Deal Val /Mkt Cap

CurrentMkt Cap ($MM)*

% SellingShdr

% Price FTO

Offer /30-Day

Offer /Current*

3/20/18 ForeScout Technologies Inc $147 $1,137 13% $1,271 89% (15.9%) 24% 12%

3/20/18 Cision Ltd $71 $1,420 5% $1,439 100% (15.2%) 30% 8%

3/13/18 Rapid7 Inc $53 $1,266 4% $1,164 100% (4.6%) 6% (3%)

3/12/18 BlackLine Inc $332 $2,323 14% $2,095 100% (5.0%) (3%) (6%)

3/12/18 Sabre Corp $337 $6,256 5% $5,890 100% (1.5%) (11%) (4%)

3/9/18 Guidewire Software Inc $230 $7,019 3% $6,459 0% (4.0%) (8%) (8%)

3/6/18 Talend SA $190 $1,475 13% $1,417 100% (3.0%) (4%) (1%)

2/21/18 Shopify Inc $658 $14,992 4% $13,126 0% (4.1%) 12% (9%)

2/16/18 Instructure Inc $99 $1,374 7% $1,406 0% (4.1%) 12% 7%

1/25/18 Rapid7 Inc $131 $1,037 13% $1,164 71% (0.1%) 11% 16%

12/6/17 Attunity Ltd $23 $145 16% $155 0% (6.5%) 3% 11%

12/4/17 BlackLine Inc $155 $1,892 8% $2,095 100% (3.9%) 2% 14%

11/16/17 Veritone Inc $26 $427 6% $226 0% (20.6%) (1%) (39%)

11/15/17 Appian Corp $88 $1,281 7% $1,529 100% (12.9%) 3% 24%

11/15/17 Talend SA $111 $1,218 9% $1,417 100% (3.7%) (0%) 20%

11/15/17 Everbridge Inc $20 $762 3% $1,041 100% (8.8%) 6% 36%

9/27/17 Cloudera Inc $254 $2,227 11% $3,048 78% (10.5%) (9%) 31%

9/14/17 Quintiles IMS Holdings Inc $476 $20,667 2% $20,433 100% (0.2%) 5% 3%

9/7/17 Alteryx Inc $170 $1,262 13% $2,056 100% (6.8%) (3%) 61%

9/6/17 2U Inc $206 $2,542 8% $4,430 4% (3.2%) 20% 71%

7/19/17 USA Technologies Inc $43 $234 18% $483 0% (14.3%) 18% 100%

6/13/17 Donnelley Financial Solutions Inc $150 $711 21% $581 100% 7.8% 6% (19%)

6/6/17 Upland Software Inc $40 $448 9% $598 0% (2.5%) 0% 34%

Mean $174 $3,136 9% $3,197 63% (6%) 5% 16%

Median $147 $1,281 8% $1,417 100% (4%) 3% 11%

PricingDate

IssuerPricing

to Range

Deal Value ($MM)

Mkt Cap ($MM)

Deal Val / Mkt Cap

CurrentMkt Cap ($MM)*

% Selling Shdr

% Price FTO

Offer /30-Day

Offer /Current*

3/22/18 Dropbox Inc Above $869 $8,230 11% $12,282 25% 24% 38% 49%

3/15/18 Zscaler Inc Above $221 $1,877 12% $3,293 0% 45% 72% 75%

11/16/17 Stitch Fix Inc Below $138 $1,431 10% $1,971 0% (21%) 56% 35%

11/14/17 SendGrid Inc Above $151 $653 23% $1,202 0% 10% 20% 76%

11/9/17 Bandwidth Inc In Range $83 $352 24% $576 0% (5%) 6% 63%

10/26/17 ForeScout Technologies In Range $134 $814 16% $1,271 0% 5% 30% 47%

10/18/17 MongoDB Inc Above $221 $1,175 19% $2,195 0% 26% 24% 81%

6/29/17 Tintri Inc Below $67 $216 31% $54 0% (39%) (2%) (76%)

5/24/17 Appian Corp In Range $86 $704 12% $1,529 0% 0% 54% 110%

4/27/17 Cloudera Inc Above $259 $1,921 13% $3,048 0% 15% 49% 44%

4/12/17 Yext Inc Above $133 $940 14% $1,191 0% 22% 25% 15%

4/6/17 Okta Inc Above $215 $1,543 14% $4,171 0% 21% 48% 134%

3/23/17 Alteryx Inc In Range $145 $788 18% $2,056 0% 8% 10% 144%

3/16/17 MuleSoft Inc Above $254 $2,142 12% $5,865 0% 31% 31% 159%

10/27/16 BlackLine Inc Above $168 $839 20% $2,095 0% 21% 58% 131%

10/5/16 Coupa Software Inc Above $153 $866 18% $2,583 0% 20% 40% 153%

9/29/16 Nutanix Inc Above $274 $2,196 12% $8,069 0% 33% 55% 207%

9/22/16 Gridsum Holding Inc Above $100 $373 27% $251 0% 13% 23% (37%)

9/22/16 Apptio Inc Above $110 $597 19% $1,208 0% 14% 25% 77%

9/20/16 Trade Desk Inc Above $97 $688 14% $2,086 0% 20% 47% 176%

9/15/16 Everbridge Inc In Range $104 $323 32% $1,041 17% 0% 30% 205%

6/22/16 Twilio Inc Above $173 $1,233 14% $3,598 0% 15% 172% 155%

6/9/16China Online Education Group

In Range $52 $374 14% $195 0% 0% 3% (49%)

Mean $183 $1,316 17% $2,688 2% 12% 40% 86%

Median $145 $839 14% $2,056 0% 15% 31% 77%

6PIPER JAFFRAY

SUB-SECTOR

SaaS High Growth

Moderate Growth SaaS

CRM / Marketing

Infrastructure / IT Management

BI / Data Analytics

Human Capital Management

Contact Center

Security Software

HR Outsourcing

Large-Cap Technology

SUB-SECTOR

SaaS High Growth



CRM / Marketing

BI / Data Analytics

Contact Center

Security Software



HR Outsourcing (0.5%)

2.6%

4.7%

5.9%

9.4%

10.6%

13.6%

17.2%

19.0%

25.1%

(2.9%)

(2.0%)

0.8%

12.4%

12.9%

18.0%

33.4%

38.0%

38.0%

38.4%

43.4%

56.4%

80.1%

11.8%

16.7%

19.5%

Software Stock PerformancePerformance in LTM Period and YTD Period – By Sub-Sector

Source: Capital IQNote: LTM Date between 3/31/17 and 3/29/18. YTD data between 1/2/18 and 3/29/18.

YTD PerformanceLTM Performance

7PIPER JAFFRAY

IPO Valuation Breakpoint Analysis 2015 – 2018 YTD, At Pricing

Source: Capital IQ.

Forward Year Revenue Growth vs. Revenue Multiple

$ in millions

Summary Statistics - Software IPOs 2015-2018 YTD

Metric Median Median Median Median

Growth Profile: Less than 20% 20.0% - 30.0% 30.0% - 40.0% Greater than 40.0%

Number of Deals 6 19 18 12

Operating Metrics:

LTM Revenue $361.5 $130.5 $124.3 $65.1

MRQ Revenue $89.9 $32.4 $37.3 $45.0

LTM Gross Margin 66.7% 65.9% 71.9% 62.4%

LTM EBITDA $68.1 ($26.8) ($30.5) ($42.6)

LTM EBITDA Margin 12.4% (19.5%) (26.7%) (31.2%)

MRQ EBITDA $5.6 ($5.9) ($7.2) ($9.5)

CAC Ratio 0.93 0.49 0.55 0.57

Pricing Statistics:

Forward Year Rev. Multiple 6.4x 2.9x 4.7x 3.5x

% Change from Offer to:

One Day 6.0% 30.6% 33.6% 21.2%

One Month 5.7% 29.4% 34.6% 31.9%

Current (03/31/2018) 48.8% 64.5% 143.9% 153.4%

6.4x

2.9x

4.7x

3.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

Less than 20% 20.0% - 30.0% 30.0% - 40.0% Greater than 40.0%

Forw

ard

Year

Rev

enue

M

ultip

le

Forward Year Revenue Growth

8PIPER JAFFRAY

Historical Public Software Company IPO Statistics 2014–2018 YTD

Source: Capital IQ.(1) EV / EBITDA multiples less than 0.0x or greater than 50.0x deemed not meaningful.

($ in Millions) 2015 Median 2016 Median 2017 Median 2018 Median

Number of Deals 12 11 10 2Deal StatisticsDeal Size $101.7 $108.7 $147.9 $545.1

Post-Deal Market Cap $620.3 $771.3 $1,091.1 $5,672.1

Deal Size / Post-Deal Market Cap 16.4% 14.1% 13.6% 9.6%

Financial Metrics at IPO

LTM Revenue $107.6 $112.3 $145.9 $630.6

Current Year Revenue $117.3 $122.6 $163.3 $617.2

Forward Year Revenue $144.5 $165.6 $208.0 $722.3

Forward Year Revenue Growth 30.2% 35.1% 31.7% 31.0%

MRQ Revenue $30.1 $47.2 $38.5 $175.2

LTM EBITDA ($18.9) ($29.3) ($54.6) $17.8

LTM EBITDA Margin (18.1%) (19.3%) (30.9%) (7.4%)

MRQ EBITDA ($4.7) ($6.7) ($12.6) $0.4

MRQ EBITDA Margin (16.4%) (10.5%) (28.4%) (4.4%)

Valuation Metrics at IPO

Current Year Revenue Multiple 5.4x 4.2x 6.3x 11.1x

Current Year EBITDA Multiple(1) 35.6x 14.1x 47.4x 35.0x

Forward Year Revenue Multiple 4.1x 3.0x 4.9x 10.5x

Forward Year EBITDA Multiple 34.9x 20.4x 43.9x 28.2x

9PIPER JAFFRAY

6.0% 7.6%

9.7% 10.7%

12.1% 18.2% 18.3%

25.1% 25.2%

31.9%

0.0% 10.0% 20.0% 30.0% 40.0%


HR Outsourcing

Contact Center

Security

BI / Data Analytics

Infrastructure / IT Mgmt

Human Capital Mgmt


CRM / Marketing

SaaS High Growth

Comparable Public Software Comps (Valuation Metrics)

Source: Capital IQ.Note: Figures represent the median of each comparable group.

2018E EV / REV 2019E EV / REV

2018E Rev Growth 2019E Rev Growth

7.2% 7.7%

9.4% 10.5% 11.5%

14.8% 17.8%

22.6% 24.1%

28.3%

0.0% 10.0% 20.0% 30.0%

HR Outsourcing


Contact Center

Security

BI / Data Analytics


Human Capital Mgmt


CRM / Marketing

SaaS High Growth

2.8x3.9x4.1x4.3x4.4x

4.8x6.6x6.7x

7.6x9.0x

0.0x 2.0x 4.0x 6.0x 8.0x 10.0x

HR Outsourcing

Contact Center

BI / Data Analytics

Security



Human Capital Mgmt

CRM / Marketing


SaaS High Growth

2.6x3.5x

3.9x4.3x4.3x4.5x

5.4x5.6x

6.2x6.6x

0.0x 2.0x 4.0x 6.0x 8.0x

HR Outsourcing

Contact Center

Security


BI / Data Analytics


Human Capital Mgmt

CRM / Marketing


SaaS High Growth

10PIPER JAFFRAY

SaaS Valuation Framework

Source: Capital IQ as of 3/29/2018, Thomson Reuters, Company Filings.*Piper Jaffray estimate using EBITDA as proxy for FCF.

Given the rapid maturity of the business model, free cash flow conversion combined with revenue growth provides a clearer understanding of valuation for SaaS companies

AVG EV/Rev10.4x

AVG Rev Growth + FCF Margin51.8%

AVG EV/Rev7.3x


AVG EV/Rev2.9x


AMBR

APTIBNFT

SEND

DATA

ECOM

DBX

LPSN

MODN

SREV

CSOD

GWRE

HUBSTYL

ULTI

ZEN

BLKB

BL

BOX

COUP

MB

NEWR

PCTY

QTWO

TWLO

TWOUADBE

CRM

NOW

SPLK

WDAY

ELLI

PAYC

SHOPTEAMVEEV

HDP

y = 17.099x + 1.7125R² = 0.7702

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

0% 10% 20% 30% 40% 50% 60% 70%

2018

E E

V /

Rev

enue

2018E FCF Margin + Revenue Growth

11PIPER JAFFRAY

Best & Worst Performing Software Stocks Top and Bottom 20 LTM Performers

Source: Capital IQ.Note: Dates between 3/31/17 and 3/29/18.

Bottom 20 Performers Top 20 Performers

73.9%

78.3%

78.9%

79.6%

80.0%

80.1%

80.8%

81.0%

81.2%

86.7%

89.2%

90.3%

92.0%

99.9%

107.6%

118.4%

124.4%

138.7%

161.6%

448.3%

Callidus Software Inc.

Everbridge Inc

HubSpot, Inc.

Coupa Software

Atlassian Corporation

Instructure, Inc.

Mulesoft

Five9, Inc.

Upland Software

Paycom Software, Inc.

ServiceNow, Inc.

Varonis Systems, Inc.

Qualys, Inc.

New Relic, Inc.

HortonWorks

Alteryx

RingCentral, Inc.

LivePerson Inc.

Nutanix

eGain Corporation

0.3%

0.0%

(1.8%)

(1.8%)

(3.2%)

(4.1%)

(5.9%)

(11.2%)

(11.3%)

(11.9%)

(12.7%)

(14.9%)

(15.7%)

(15.9%)

(18.4%)

(30.6%)

(31.3%)

(37.5%)

(47.2%)

(55.0%)

CyberArk Software, Ltd.

Castlight Health

Verint Systems Inc.

ServiceSource International, Inc.

Check Point Software

VASCO Data Security

j2 Global, Inc.

Zix Corporation

Parkit Enterprise Inc.

IBM

Benefitfocus, Inc.

SecureWorks Corp.

Symantec Corporation

Inovalon Holdings

ChannelAdvisor Corporation

NetScout Systems, Inc.

MicroStrategy Inc.

WageWorks, Inc.

Marin Software Incorporated

Micro Focus International plc

12PIPER JAFFRAY

Announced Date

Acquirer Target Deal Description Deal Amount ($M)

3/30/18

Salesforce acquires Mulesoft, a San Francisco-based developer of a cloud-based application integration platform, in a continued effort toexpand its integrations for customers more easily access corporate data wherever it may be stored

$6,580

3/6/18

GTCR and Sycamore Partners jointly acquire CommerceHub, a New York-based provider of supply chain software in an effort to continue executing on their vision for a platform and network to tie together all sources of demand, supply and delivery in global ecommerce

$1,100

3/6/18 S&P acquires Kensho Technologies, a Massachusetts-based provider of

a cloud-based financial analytics software, to fund and expand its sophisticated algorithms and machine learning capabilities

$550

2/26/18 HGGC recaps Minnesota-based Helpsystems as it continues to grow

and extend its market leading system and network management solutions

N/A

2/13/18

Marlin Equity acquires San Francisco-based Inkling Systems, a provider of an end-to-end cloud publishing platform designed to provide instructions for the field workers, to further accelerating growth through a focused expansion within key target verticals

N/A

2/2/18 Trimble acquires Florida-based e-Builder to extend its ability to

accelerate industry transformation by providing an integrated project delivery solution

$500

2/1/18 MOVE acquires Polaris Global Mobility, a UK-based human resources

company that offers mobility administration solutions, to create the first complete global mobility management platform for enterprise logistics

N/A

1/30/18 SAP acquires Callidus Software, a leading cloud-based performance

management platform, to complete SAP's new front office that extends beyond legacy CRM to an intelligent customer experience suite

$2,400

Snapshot Of Select Software M&A Transactions During Q1 2018


13PIPER JAFFRAY 13PIPER JAFFRAY

Software M&A ActivityQ1 2015 – Q1 2018

Source: 451 Research, S&P Capital IQ.Note: Software transactions greater than 10 million USD in enterprise value.

# of Deals 47 54 50 49 29 42 38 33 31 39 30 34 56

$11,740$13,482

$22,438

$15,304 $18,421

$53,011

$33,046

$11,545 $11,374$8,709 $10,991

$15,101

$19,409

5.6x

4.5x5.0x

7.3x

4.7x

5.9x6.1x

6.0x

7.8x

3.5x

3.5x

4.0x

6.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Total Deal Value Average EV / REV Multiple( USD in millions)

14PIPER JAFFRAY

Public Target M&A Activity in SoftwareQ1 2015 – Q1 2018

Source: S&P Capital IQ.Note: Software transactions greater than 10 million USD in enterprise value.

( USD in millions)

# of Deals 6 11 10 12 6 18 13 6 8 5 5 4 19

$6,125 $5,807 $6,967$9,085

$11,721

$40,761

$26,207

$4,631

$1,160$2,478 $3,304 $3,204

$12,569

4.4x

3.1x4.9x 3.3x

5.0x5.3x

4.9x

2.9x

2.4x

3.1x 2.9x

4.4x

8.8x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Total Deal Value Average EV / REV Multiple

15PIPER JAFFRAY

Private Target M&A Activity in SoftwareQ1 2015 – Q1 2018

Source: S&P Capital IQ.Note: Software transactions greater than 10 million USD in enterprise value.

( USD in millions)

# of Deals 41 43 40 37 23 24 25 27 23 34 25 30 36

$5,615

$7,675

$15,472

$6,220

$6,700

$12,251

$6,839 $6,914

$10,214

$6,232

$7,687

$11,897

$6,8416.0x 5.0x

5.0x

9.3x

4.6x

6.5x

7.2x

7.0x

8.3x

3.6x 3.7x 3.7x

5.6x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018



Strategic Public Acquirer M&A Activity in SoftwareQ1 2015 – Q1 2018

Acquirer

Target

Announced Date 11/20/16 1/24/17 3/7/17 4/18/17 7/25/2017 10/23/2017 12/18/2017 1/30/18 3/20/18

Deal Amount ($M) $2,334 $3,700 $614 $850 $850 $2,288 $1,260 $2,400 $6,580

EV / LTM REV 3.5x 17.4x 5.6x 13.3x 9.7x 5.3x 10.0x 10.0x 21.9x

# of Deals 40 33 31 36 24 29 22 29 20 11 14 23 38

Notable Recent Announced Transactions ($ millions)


$8,247$6,348

$11,302$7,040

$17,689

$40,912

$21,282

$9,935 $8,321

$1,582 $5,076$8,570

$15,344

6.4x5.9x

4.9x

9.1x

4.7x

6.9x

10.8x

6.0x

9.3x

6.0x4.4x

5.4x

7.7x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Total Deal Value Average EV / REV Multiple( USD in millions)


Private Equity M&A Activity in SoftwareQ1 2015 – Q1 2018

# of Deals 5 12 9 8 4 10 8 2 4 15 3 5 4

Notable Recent Announced Transactions ($ millions)

Acquirer

Target

Announced Date 6/7/16 7/13/16 8/31/16 9/7/16 1/3/17 1/19/17 5/30/17 10/17/17 11/27/17 3/6/18

Deal Amount $3,000 $544 $1,400 $2,200 $1,150 $800 $564 $1,082 $1,612 $1,100

EV / LTM REV 4.2x 4.4x 3.3x 6.8x 2.6x 4.6x 5.9x 3.5x 3.8x 9.9x


$3,388 $2,870

$9,543 $7,827

$722

$11,434

$8,778

$1,150

$2,586

$5,716

$2,269

$4,745

$1,689

3.8x 3.6x 3.7x

4.3x4.3x

3.1x

7.9x

3.6x

2.7x 0.9x 3.2x

6.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018


( USD in millions)

18PIPER JAFFRAY

Announced Date Company Deal Description Deal Amount ($M)

3/23/18 ServiceTitan, a developer of a field service management software for

home services contractors, has raised $62 million through both debt and Series C venture funding led by Battery Ventures

$62

3/7/18 Magic Leap, a developer of human computing interfaces and software

technology, has raised $964 million of Series D venture funding in a deal led by Temasek Holding

$964

3/6/18 UiPath, a developer of robotic process automation software, has raised

$153 million of Series B venture funding led by Accel, CapitalG and Kleiner Perkins Caufield & Byers

$153

2/12/18 XebiaLabs, a developer of enterprise DevOps and application release

automation tools, has raised $100 of Series B venture funding in a deal led by Susquehanna Growth Equity and Accel

$100

1/24/18 FrontApp, a provider of a mobile application to manage and automate

team emails and inboxes, has raised $67 million of Series B venture funding in a deal led by Sequoia Capital

$67

1/15/18 Pony.ai, a provider of an AI based self-driving software algorithm, has

raised $112 million of Series A funding in a deal led by Morningside Venture Capital and Legend Capital

$112

Snapshot Of Select Software Private Placements During Q4 2017


19PIPER JAFFRAY

Private Placement ActivitySoftware Private VC / PE Summary: Q1 2015 – Q1 2018

Source: S&P Capital IQ.

( USD in millions)

$5,883

$1,589

$3,320

$2,097

$3,306

$4,963

$2,695

$1,816$1,573

$3,953

$2,784

$4,535

$3,739136

164 161

143

151

143133

121

168

196 200189

216

0

50

100

150

200

250

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017 2018

Total Deal Value Total # of Deals

20PIPER JAFFRAY

64%

59%62% 60%

65% 66%68%

60%

54% 55%59% 59%

54%

60%55% 57%

53%57%

Debt Market Overview

Source: S&P Global Market Intelligence

Middle Market LBO Debt Contribution Middle Market LBO Volume by Industry – 2017

2.2%

2.4%

2.7%

3.4%

4.0%

4.2%

7.5%

8.2%

10.7%

10.8%

15.5%

28.4%

Forest Product

Chemicals

Not for Profit

Food & Beverage

Insurance

Building Materials

Home Furnishings

Manufacturing &…

Retail

Services & Leasing

Computers & Electronics

Healthcare

Total Transaction Volume of $6.8 Billion

Middle Market LBO Loan Multiples Middle Market LBO Volume by Quarter

4.0x

3.4x3.9x 3.8x

4.2x4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x5.3x 5.3x 5.3x 5.5x 5.4x

0123456

1 Lien 2 Lien Other Senior Sub. Debt

$1.2

$1.6 $1.5

$1.8

$1.2

$1.9$2.0

$0.4

$0.9

$1.2

$0.7$0.9

$1.0

$1.8

$2.9

$1.1

$1.5

Institutional Pro Ratast ndDebt Tranche / EBITDA:

Defined as Issuers with EBITDA of $50 Million or Less

Defined as Issuers with EBITDA of $50 Million or Less Defined as Issuers with EBITDA of $50 Million or Less($ In Billions)

Appendix

22PIPER JAFFRAY

SaaS High Growth

Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital.

EV/Revenue > 20x Not Meaningful (NM).

EV/EBITDA > 60x Not Meaningful (NM).

Market Enterprise Gross Revenue EV / EV /

Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA

($ in millions, except per share data) 3/31/2018 3/31/2018 52 Wk High LTM LTM LTM 2018 2019 2018 2019 2018 2019

High-Growth SaaS

ServiceNow, Inc. $31,477 $30,294 94% 2,093 75% 450 32% 29% 11.9 9.2 46.4 32.4

Atlassian Corporation Plc 12,522 11,759 87% 804 79% 156 31% 27% 12.1 9.5 42.1 35.4

Zendesk, Inc. 5,005 4,585 95% 466 70% (1) 31% 28% 8.2 6.4 NM NM

Okta, Inc. 4,171 3,941 93% 260 69% (61) 34% 33% 11.3 8.6 NM NM

Zscaler, Inc. 3,293 3,428 81% 154 79% (25) 32% 33% 16.8 12.7 NM NM

The Trade Desk, Inc. 2,206 2,077 74% 308 79% 96 31% 25% 5.1 4.1 17.6 12.9

MongoDB, Inc. 2,195 1,916 94% 155 72% (73) 38% 35% 9.0 6.6 NM NM

Alteryx, Inc. 2,056 1,862 88% 132 83% (5) 36% 32% 10.4 7.9 NM NM

Instructure, Inc. 1,447 1,310 91% 172 71% (29) 30% 27% 6.3 5.0 NM NM

Talend S.A. 1,417 1,331 92% 149 77% (20) 35% 28% 6.6 5.2 NM NM

Everbridge, Inc. 1,041 979 94% 112 70% (6) 31% 26% 7.2 5.7 NM NM

75th Percentile $4,588 $4,263 94% $387 79% $47 34% 32% 11.6x 8.9x 44.2x 33.9x

Median $2,206 $2,077 92% $172 75% ($6) 32% 28% 9.0x 6.6x 42.1x 32.4x

Mean $6,075 $5,771 89% $437 75% $44 33% 29% 9.5x 7.3x 35.4x 26.9x

25th Percentile $1,751 $1,597 87% $151 70% ($27) 31% 27% 6.9x 5.4x 29.9x 22.7x

23PIPER JAFFRAY


Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital







Adobe Systems Incorporated $107,917 $103,653 93% 7,699 87% 3,213 21% 18% 11.7x 10.0x 25.7x 21.2x

BlackLine, Inc. 2,095 1,981 87% 190 77% 1 26% 25% 8.9x 7.1x NM NM

Box, Inc. 2,826 2,704 84% 506 73% (17) 20% 22% 4.5x 3.7x NM NM

Cloudera, Inc. 3,619 3,176 92% 367 57% (88) 27% 22% 6.9x 5.6x NM NM

Constellation Software Inc. 18,525 18,447 95% 2,643 37% 505 20% 14% 6.2x 5.4x 23.9x 20.8x

Coupa Software Incorporated 2,583 2,333 90% 187 68% (11) 23% 24% 10.2x 8.2x NM NM

CyberArk Software Ltd. 1,860 1,516 92% 274 84% 54 20% 18% 4.8x 4.1x 23.3x 18.7x

Dropbox, Inc. 12,282 12,138 91% 1,107 67% 233 21% 15% 9.1x 7.9x 42.2x 34.8x

ForeScout Technologies, Inc. 1,271 1,108 86% 221 73% (39) 21% 20% 4.1x 3.4x NM NM

Guidewire Software, Inc. 6,459 5,879 87% 576 58% 119 21% 17% 8.5x 7.3x 46.7x 34.4x

HubSpot, Inc. 4,100 3,854 87% 376 80% 17 29% 24% 8.0x 6.4x NM NM

Mimecast Limited 2,048 1,960 90% 241 74% 22 26% 18% 6.5x 5.5x NM 44.0x

MINDBODY, Inc. 1,834 1,617 90% 183 72% 7 28% 25% 6.9x 5.6x NM 43.3x

New Relic, Inc. 4,109 3,876 94% 330 82% (1) 28% 25% 9.1x 7.3x NM NM

Nutanix, Inc. 8,069 7,567 89% 941 58% (150) 25% 25% 6.4x 5.1x NM NM

Palo Alto Networks, Inc. 16,672 14,852 95% 1,989 72% 441 22% 17% 6.1x 5.2x 23.5x 19.1x

Paycom Software, Inc. 6,343 6,310 93% 467 85% 151 25% 24% 11.6x 9.4x 29.4x 23.7x

Paylocity Holding Corporation 2,819 2,690 90% 357 60% 61 22% 23% 6.6x 5.4x 31.9x 24.6x

Proofpoint, Inc. 5,745 5,828 92% 562 72% 75 29% 28% 8.4x 6.5x NM 44.3x

Qualys, Inc. 3,051 2,657 92% 243 77% 93 20% 18% 9.6x 8.1x 26.7x 22.5x

RingCentral, Inc. 4,996 4,814 91% 502 76% 31 26% 23% 7.6x 6.2x NM NM

salesforce.com, inc. 87,163 84,197 90% 10,480 74% 1,894 21% 19% 6.7x 5.6x 29.7x 23.7x

SendGrid, Inc. 1,245 1,094 88% 120 74% 12 25% 25% 7.8x 6.3x NM NM

Splunk Inc. 14,171 13,076 87% 1,271 80% 141 28% 24% 8.0x 6.5x NM 39.1x

Twilio Inc. 3,598 3,307 90% 399 54% (5) 28% 24% 6.5x 5.2x NM NM

Varonis Systems, Inc. 1,740 1,586 95% 231 90% 9 21% 18% 6.0x 5.1x NM NM

Workday, Inc. 26,947 25,142 91% 2,143 71% 312 25% 23% 9.4x 7.6x NM 38.2x

75th Percentile $10,176 $9,852 92% $1,024 79% $146 27% 24% 9.0x 7.3x 31.4x 38.6x

Median $4,100 $3,854 90% $399 73% $31 25% 23% 7.6x 6.2x 28.1x 24.6x

Mean $13,114 $12,495 90% $1,282 71% $262 24% 21% 7.6x 6.3x 30.3x 30.2x


24PIPER JAFFRAY

Business Intelligence / Data Analytics







Business Intelligence / Data Analytics

Alteryx, Inc. $2,056 $1,862 88% $132 83% ($5) 36% 32% 10.4x 7.9x NM NM

Cegedim SA 625 893 84% 545 46% 59 4% 6% 1.5x 1.4x 8.7x 7.5x

Datawatch Corporation 107 102 68% 38 90% (3) 12% NA 2.4x NA NM NA

Inovalon Holdings, Inc. 1,531 1,303 60% 449 66% 93 9% 6% 2.1x 2.0x 7.7x 6.7x

MicroStrategy Incorporated 1,482 785 66% 505 80% 76 0% 2% 1.5 1.5 12.3 10.8

MongoDB, Inc. 2,195 1,916 94% 155 72% (73) 38% 35% 9.0 6.6 NM NM

Splunk Inc. 14,171 13,076 87% 1,271 80% 141 28% 24% 8.0 6.5 NM 39.1

Tableau Software, Inc. 6,590 5,567 92% 923 87% 70 11% 13% 5.7 5.1 NM NM

The Descartes Systems Group Inc 2,223 2,225 92% 237 73% 81 15% 10% 8.1 7.4 23.8 20.8

Verint Systems Inc. 2,775 3,183 96% 1,135 64% 181 8% 6% 2.6 2.4 10.9 9.7

Workiva Inc. 1,016 954 89% 216 71% (21) 13% 14% 4.1 3.6 NM NM


Median $2,056 $1,862 88% $449 73% $70 12% 11% 4.1x 4.3x 10.9x 10.2x

Mean $3,161 $2,897 83% $510 74% $54 16% 15% 5.1x 4.4x 12.7x 15.8x

25th Percentile $1,249 $923 76% $185 69% ($4) 8% 6% 2.3x 2.1x 8.7x 8.1x

25PIPER JAFFRAY









Atlassian Corporation Plc $12,522 $11,759 87% $804 79% $156 31% 27% 12.1x 9.5x 42.1x 35.4x

Box, Inc. 2,826 2,704 84% 506 73% (17) 20% 22% 4.5x 3.7x NM NM

CA, Inc. 14,134 14,089 91% 4,164 86% 1,337 3% 1% 3.3x 3.2x 8.5x 8.3x

Citrix Systems, Inc. 13,585 13,467 96% 2,859 87% 1,023 2% 3% 4.7 4.5 14.0 13.3

Cloudera, Inc. 3,619 3,176 92% 367 57% (88) 27% 22% 6.9 5.6 NM NM

Commvault Systems, Inc. 2,602 2,139 89% 699 86% 84 10% 11% 2.8 2.5 20.0 15.3

Constellation Software Inc. 18,525 18,447 95% 2,643 37% 505 20% 14% 6.2 5.4 23.9 20.8

Dropbox, Inc. 12,282 12,138 91% 1,107 67% 233 21% 15% 9.1 7.9 42.2 34.8

Hortonworks, Inc. 1,587 1,515 93% 262 69% (80) 25% 24% 4.6 3.7 NM NM

Micro Focus International plc 4,303 8,445 34% 1,930 84% 759 (5%) (4%) 2.1 2.2 6.1 5.4

NetScout Systems, Inc. 2,299 2,452 68% 987 72% 203 (7%) 3% 2.5 2.4 12.1 11.0

Nutanix, Inc. 8,069 7,567 89% 941 58% (150) 25% 25% 6.4 5.1 NM NM

Pegasystems Inc. 4,737 4,512 94% 841 67% 117 13% 12% 4.7 4.2 32.3 25.9

Progress Software Corporation 1,825 1,778 72% 401 88% 162 2% 1% 4.4 4.4 9.0 9.2

Red Hat, Inc. 26,564 24,847 89% 2,920 85% 764 19% 16% 7.5 6.5 28.0 23.4

ServiceNow, Inc. 31,477 30,294 94% 2,093 75% 450 32% 29% 11.9 9.2 46.4 32.4

Software Aktiengesellschaft 3,750 3,552 85% 1,025 76% 331 3% 3% 3.2 3.1 10.1 9.5

Talend S.A. 1,417 1,331 92% 149 77% (20) 35% 28% 6.6 5.2 NM NM

Tintri, Inc. 54 90 23% 126 58% (90) (20%) 16% 0.9 0.8 NM NM

Twilio Inc. 3,598 3,307 90% 399 54% (5) 28% 24% 6.5 5.2 NM NM

Upland Software, Inc. 598 688 91% 98 66% 26 18% 7% 5.2 4.8 14.5 13.3

VMware, Inc. 49,150 41,585 73% 7,922 86% 2,798 10% 8% 4.8 4.4 12.8 11.7


Median $4,027 $4,032 90% $891 74% $159 18% 15% 4.8x 4.5x 14.5x 13.3x

Mean $9,978 $9,540 82% $1,511 72% $386 14% 14% 5.5x 4.7x 21.5x 18.0x


26PIPER JAFFRAY









Adobe Systems Incorporated $107,917 $103,653 93% $7,699 87% $3,213 21% 18% 11.7x 10.0x 25.7x 21.2x

HP Inc. 36,584 37,725 89% 53,889 18% 4,755 6% 1% 0.7 0.7 8.1 7.8

International Business Machines Corp 141,986 172,997 87% 80,056 46% 17,175 1% 0% 2.2 2.2 8.9 8.7

Intuit Inc. 44,397 44,746 97% 5,434 84% 1,984 10% 11% 7.5 6.8 20.4 18.6

Oracle Corporation 188,582 179,409 86% 39,472 80% 17,036 4% 3% 4.4 4.3 9.5 9.1

salesforce.com, inc. 87,163 84,197 90% 10,480 74% 1,894 21% 19% 6.7 5.6 29.7 23.7

SAP SE 121,122 119,321 85% 27,942 70% 8,509 3% 8% 4.0 3.7 11.7 10.7

75th Percentile $131,554 $146,159 92% $46,681 82% $12,772 15% 14% 7.1x 6.2x 23.0x 19.9x

Median $107,917 $103,653 89% $27,942 74% $4,755 6% 8% 4.4x 4.3x 11.7x 10.7x

Mean $103,964 $106,007 89% $32,139 66% $7,795 9% 8% 5.3x 4.7x 16.3x 14.3x


27PIPER JAFFRAY









Benefitfocus, Inc. $765 $833 66% $261 53% $17 (1%) 12% 3.3x 2.9x NM 42.5x

Cornerstone OnDemand, Inc. 2,262 2,135 85% 482 70% 30 4% 11% 4.2 3.8 24.0 16.4

Paycom Software, Inc. 6,343 6,310 93% 467 85% 151 25% 24% 11.6 9.4 29.4 23.7

Paylocity Holding Corporation 2,819 2,690 90% 357 60% 61 22% 23% 6.6 5.4 31.9 24.6

The Ultimate Software Group, Inc. 7,580 7,442 94% 989 63% 240 18% 18% 6.7 5.7 26.8 22.3

WageWorks, Inc. 1,820 1,172 59% 462 63% 125 9% 8% 2.2 2.1 7.0 6.3

Workday, Inc. 26,947 25,142 91% 2,143 71% 312 25% 23% 9.4 7.6 NM 38.2


Median $2,819 $2,690 90% $467 63% $125 18% 18% 6.6x 5.4x 26.8x 23.7x

Mean $6,934 $6,532 82% $737 66% $134 15% 17% 6.3x 5.3x 23.8x 24.9x


28PIPER JAFFRAY

HR Outsourcing







HR Outsourcing

Aon plc $35,111 $40,738 92% $10,707 45% $2,807 7% 5% 3.8x 3.6x 14.0x 12.8x

Automatic Data Processing, Inc. 50,317 50,019 91% 13,072 43% 2,939 7% 7% 3.6 3.4 17.0 15.5

Barrett Business Services, Inc. 605 479 92% 934 62% 43 12% 11% 0.5 0.4 11.1 9.2

CBIZ, Inc. 1,021 1,206 93% 880 13% 107 6% 6% 1.3 1.3 11.2 10.3

H&R Block, Inc. 5,316 7,331 80% 3,095 49% 941 0% 2% 2.4 2.3 8.1 9.1

Insperity, Inc. 2,922 2,628 96% 3,432 18% 179 13% 10% 0.7 0.6 13.3 11.5

Instructure, Inc. 1,447 1,310 91% 172 71% (29) 30% 27% 6.3 5.0 NM NM

Paychex, Inc. 22,296 21,527 84% 3,308 70% 1,445 8% 7% 6.2 5.8 15.0 14.4

TriNet Group, Inc. 3,348 2,735 95% 3,328 19% 293 6% 9% 3.2 2.9 8.8 8.0

WageWorks, Inc. 1,820 1,172 59% 462 63% 125 9% 8% 2.2 2.1 7.0 6.3


Median $3,135 $2,681 91% $3,202 47% $236 8% 7% 2.8x 2.6x 11.2x 10.3x

Mean $12,420 $12,914 87% $3,939 45% $885 10% 9% 3.0x 2.7x 11.7x 10.8x


29PIPER JAFFRAY

CRM / Marketing







CRM / Marketing

ChannelAdvisor Corporation 246 194 72% 123 79% 5 5% 6% 1.5 1.4 30.0 21.4

Coupa Software Incorporated 2,583 2,333 90% 187 68% (11) 23% 24% 10.2 8.2 NM NM

Marin Software Incorporated 38 12 43% 75 57% (15) NA NA NA NA NA NA

Mimecast Limited 2,048 1,960 90% 241 74% 22 26% 18% 6.5 5.5 NM 44.0

MINDBODY, Inc. 1,834 1,617 90% 183 72% 7 28% 25% 6.9 5.6 NM 43.3

Model N, Inc. 532 541 96% 142 55% (11) 6% 5% 3.6 3.4 NM 39.2

salesforce.com, inc. 87,163 84,197 90% 10,480 74% 1,894 21% 19% 6.7 5.6 29.7 23.7

SendGrid, Inc. 1,245 1,094 88% 120 74% 12 25% 25% 7.8 6.3 NM NM

The Trade Desk, Inc. 2,206 2,077 74% 308 79% 96 31% 25% 5.1 4.1 17.6 12.9

Zendesk, Inc. 5,005 4,585 95% 466 70% (1) 31% 28% 8.2 6.4 NM NM


Median $1,941 $1,789 90% $185 73% $6 25% 24% 6.7x 5.6x 29.7x 31.5x

Mean $10,290 $9,861 83% $1,232 70% $200 22% 19% 6.3x 5.2x 25.8x 30.7x

25th Percentile $710 $680 77% $127 69% ($8) 21% 18% 5.1x 4.1x 23.7x 21.9x

30PIPER JAFFRAY

Contact Center







Contact Center

8x8, Inc. $1,719 $1,558 92% $284 77% $17 16% 21% 4.7x 3.9x NM 40.4x

eGain Corporation 217 214 94% 60 64% 4 10% 8% 3.3 3.1 42.2 NA

Five9, Inc. 1,718 1,685 92% 212 59% 25 16% 17% 7.2 6.2 NM 43.5

LivePerson, Inc. 983 925 98% 226 74% 20 10% 11% 3.9 3.5 42.5 31.4

NICE Ltd. 5,640 5,562 95% 1,332 65% 364 8% 7% 3.9 3.6 13.2 12.0

Verint Systems Inc. 2,775 3,183 96% 1,135 64% 181 8% 6% 2.6 2.4 10.9 9.7


Median $1,719 $1,621 94% $255 64% $22 10% 9% 3.9x 3.5x 27.7x 31.4x

Mean $2,176 $2,188 94% $542 67% $102 11% 12% 4.3x 3.8x 27.2x 27.4x


31PIPER JAFFRAY

Security

Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital






Security

Akamai Technologies, Inc. $12,209 $11,554 91% $2,571 65% $830 8% 9% 4.3x 3.9x 11.6x 10.3x

CA, Inc. 14,134 14,089 91% 4,164 86% 1,337 3% 1% 3.3 3.2 8.5 8.3

Check Point Software Technologies L 16,236 12,227 83% 1,872 89% 1,033 5% 6% 6.3 5.9 11.7 10.9

CyberArk Software Ltd. 1,860 1,516 92% 274 84% 54 20% 18% 4.8 4.1 23.3 18.7

Everbridge, Inc. 1,041 979 94% 112 70% (6) 31% 26% 7.2 5.7 NM NM

Experian plc 14,345 17,534 90% 4,439 43% 1,615 4% 7% 3.6 3.4 10.7 10.0

FireEye, Inc. 3,193 3,094 90% 765 65% 16 9% 8% 3.8 3.5 29.2 23.1

ForeScout Technologies, Inc. 1,271 1,108 86% 221 73% (39) 21% 20% 4.1 3.4 NM NM

Fortinet, Inc. 9,205 7,819 97% 1,553 75% 334 14% 13% 4.6 4.1 20.2 16.6

Imperva, Inc. 1,507 1,128 83% 334 80% 48 15% 15% 3.0 2.7 16.0 13.2

MobileIron, Inc. 498 399 73% 178 83% (17) 10% 10% 2.1 1.9 NM 42.5

NetScout Systems, Inc. 2,299 2,452 68% 987 72% 203 (7%) 3% 2.5 2.4 12.1 11.0

Okta, Inc. 4,171 3,941 93% 260 69% (61) 34% 33% 11.3 8.6 NM NM

Palo Alto Networks, Inc. 16,672 14,852 95% 1,989 72% 441 22% 17% 6.1 5.2 23.5 19.1

Parkit Enterprise Inc. 11 (5) 69% 1 100% 1 NA NA NA NA NA NA

Proofpoint, Inc. 5,745 5,828 92% 562 72% 75 29% 28% 8.4 6.5 NM 44.3

Qualys, Inc. 3,051 2,657 92% 243 77% 93 20% 18% 9.6 8.1 26.7 22.5

Radware Ltd. 951 593 97% 217 81% 14 9% 9% 2.6 2.4 24.5 18.0

Rapid7, Inc. 1,164 1,072 91% 201 72% (21) 15% 22% 4.7 3.8 NM NM

SecureWorks Corp. 661 559 62% 468 52% (27) 10% 10% 1.1 1.0 NM 45.8

Splunk Inc. 14,171 13,076 87% 1,271 80% 141 28% 24% 8.0 6.5 NM 39.1

Symantec Corporation 17,242 19,965 76% 4,739 79% 1,516 2% 7% 4.1 3.9 8.4 7.7

Trend Micro Incorporated 883,799 677,389 95% 148,811 81% 50,392 11% 7% 4.1 3.9 12.3 11.4

Varonis Systems, Inc. 1,740 1,586 95% 231 90% 9 21% 18% 6.0 5.1 NM NM

VASCO Data Security International, In 516 353 86% 193 70% 18 5% 11% 1.7 1.6 15.3 9.9

VeriSign, Inc. 14,643 14,700 93% 1,176 84% 820 4% 4% 12.2 11.7 17.1 16.4

Zscaler, Inc. 3,293 3,428 81% 154 79% (25) 32% 33% 16.8 12.7 NM NM

Zix Corporation 233 204 64% 66 80% 16 4% 7% 3.0 2.8 10.0 8.9


Median $3,122 $2,875 90% $401 78% $51 11% 11% 4.3x 3.9x 15.3x 16.4x

Mean $37,352 $29,789 86% $6,359 76% $2,100 14% 14% 5.5x 4.7x 16.5x 19.4x` 25th Percentile $1,133 $1,049 82% $213 71% ($1) 5% 7% 3.2x 3.0x 11.6x 10.3x

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Information contained in this publication is based on data obtained from sources we deem to be reliable; however, it is not guaranteed as to accuracy and does not purport to be complete. Nothing contained in this publication is intended to be a recommendation of a specific security or company nor is any of the information contained herein intended to constitute an analysis of any company or security reasonably sufficient to form the basis for any investment decision.

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Date of First Use 6/6/18

Documents

Piper Jaffray Software Activity Update · LTM Revenue $361.5 $130.5 $124.3 $65.1 MRQ Revenue $89.9 $32.4 $37.3 $45.0 (1) *Piper Jaffray estimate using EBITDA as proxy for FCF. TEAM