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Real Estate Technology Sector SummaryQ1 2018 Review
22
REAL ESTATE TECHNOLOGY SECTOR SUMMARY
Select Q1 Active Investors Select Q1 Active Strategic Buyers
Executive Summary
− Real estate technology continues to be one of the most active categories in the market, with ~$1.7Bn in financing activity across 62 companies and 28 M&A transactions in Q1 2018
− Increase in large scale financings as category leaders begin to differentiate themselves from competition and investors increasingly look to back established players
• Activity across multiple sub-verticals, led by SoftBank’s investment in Katerra, SilverLake’s investment in Credit Karma and Lennar / Fifth Wall’s investment in OpenDoor
• Multiple investments in the mortgage origination and closing software sector – Blend, Roostify and Qualia all raised capital in Q1 2018
− Large scale consolidators continue to be active with M&A activity, including some large transactions in the title and mortgage servicing sector
• Fidelity National Financial’s acquisition of Stewart Title reflect ongoing consolidation in the title market
− Insight’s acquisition of Property Brands reflects continued activity in the multi-family property management space, especially centered around a vertical software / payments theme (Yapstone completed a large financing in Q1 2018 to continue expansion in their vertical payments platform in the multi-family / RE market)
33
GCA REAL ESTATE TECHNOLOGY TEAM
Chris GoughManaging Director
Head of Real Estate TechnologyPhone: (415) 318-3658Mobile: (415) [email protected]
Sean MinnihanManaging Director
Head of Financial TechnologyPhone: (212) 999-7077Mobile: (917) 364-6230
Steve FletcherManaging DirectorCo-Head of Software
Phone: (415) 318-3661Mobile: (415) 518-6725
Paul DiNardoManaging DirectorCo-Head of Software
Phone: (212) 999-7097Mobile: (650) 483-7246
Residential Software Commercial Software Mortgage / Lending Title / Insurance
Home Services Facilities Management Construction Tech
June 2016
Investment from
We advised the seller
Acquired by
We advised the seller
August 2015
MBO backed by
We advised the seller
April 2017
Acquired by
We advised the seller
August 2014
Acquired by
We advised the seller
December 2016
Acquired by
We advised the seller
August 2013
Acquired by
We advised the seller
August 2016
Minority Investment From
We advised the seller
October 2017
Key Sub-Sector Coverage Verticals
Majority Interest Acquired by
We Advised the Seller
October 2017
Acquired by
We Advised the Seller
February 2018
44
$582 $478
$413
$646 $745
$448
$1,434
$1,700
Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18
Ann. Date Company
Selected Investor(s)
Amt. Invested
Funding to Date
Latest Reported
Post-Money
Valuation
3/28 ~$500 $370 $4,000
3/27 NA $167 $500
3/23 $62 $161 $825
3/12 $31 $72 $211
3/7 $33 $40 $153
2/15 $25 $30 $75
2/13 $71 $187 $471
2/8 $21 $40 $96
2/6 $16 $39 $60
1/24 $865 $1,110 $3,000
1/24 $135 $455 $1,050
1/18 $50 $104 $300
1/18 $42 $75 $292
REAL ESTATE TECHNOLOGY SECTOR SUMMARY
(1)
($MM)($MM)Number of Deals Deal Value
Avg. Deal Value:
$7.8 $27.4$25.6$7.7$12.4$13.6$ 17.2$8.1
Notes:Source: Pitchbook and Press Releases.(1) Includes LendingHome $250MM bridge financing.(2) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
(3) Excludes Airbnb financing rounds.(4) Excludes Houzz financing rounds.(5) Acquired a minority stake.(6) Includes $100MM in debt financing from Lennar Corp.(7) Excludes Credit Karma’s estimated ~$500MM secondary financing.
Deal Dashboard
(4)
Quarterly Financing Activity (2)(3) Select Q1 2018 Financing Transactions
(6)
59
24
75
48
60
58 56
~$1.7Bn in private financing into the RE
tech market in Q1 2018 – average deal
size increasing reflects continued support
of large, category leaders (e.g. OpenDoor,
ApartmentList, Credit Karma, etc.)
62
(5)
(7)
55
15
9 8
12
9
20
16
28
Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18
Buyer TargetAnnounced
DateEnt.
Value
3/28 NA
3/27 NA
3/18 $1,138
3/13 $205
3/8 NA
3/5 NA
2/26 NA
2/12 $3,587
2/8 NA
2/7 $395
2/2 $500
(Lending Solutions Business)(Acquired a 55% stake)
REAL ESTATE TECHNOLOGY SECTOR SUMMARY
($MM)
Notes:Source: Capital IQ, Pitchbook, Press Releases and Company filings.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.
Deal Dashboard
Quarterly M&A Activity (1) Select Q1 2018 M&A Transactions
Highly active M&A market with strong
activity from both PE and strategics
66
Residential Real Estate Technology
Company FoundedAmt. Raised/
Invested
2012 $713
2014$455 Equity /
$400 Debt
2009 $144
2008 $104
2011 $104
2008 $85
2015 $75
2012 $72
2014 $64
2012 $56
Notes:Source: Capital IQ and Pitchbook.(1) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised
$88mm and $22mm, respectively.(2) Excludes $250MM bridge financing.(3) Excludes Airbnb and Houzz financing rounds.
(2)
(1)
(3)
Deal completed in Q1 2018
REAL ESTATE TECHNOLOGY SECTOR SUMMARYPrivate Company Funding Leaders
Mortgage / Closing / Insurance Technology
Company FoundedAmt. Raised/
Invested
2015 $180
2012 $167
2013 $109
2013 $105
2010 $78
1998 $55
2014 $55
2005 $42
2015 $40
2012 $30
($MM) ($MM) ($MM)
CRE / Facilities / Construction Technology Residential Real Estate Technology
Company FoundedAmt. Raised/
Invested
2015 $1,110
1995 $259
2002 $232
2012 $161
2014 $133
2010 $131
2011 $110
1999 $100
2013 $97
2004 $65
/
77
($MM)FY2015 FY2016 FY2017
Revenue $4.8 $26.1 $65.5Growth % 448% 151%
Gross Profit 2.8 14.9 36.2Margin % 59% 57% 55%
Adjusted EBITDA (7.4) (13.6) (6.3) Adj. EBITDA Margin % (156%) (52%) (10%)
Notes:Source: Company Website and filings, Capital IQ , Pitchbook and Press Releases. Exchange rate of 1.4015 GBP/USD as of 3/31/2018.(1): Fiscal year ends April 30.
− On March 26, 2018, Axel Springer and Purplebricks entered into an agreement under which Axel Springer has agreed to make a £125MM strategic investment
− Deal includes a £100MM subscription of new shares
− Axel Springer will now own approximately 11.5% of Purplebricks
− The investment will be used to accelerate Purplebricks’ rollout into the United States, support entry into new markets and fund technological innovation and expand the service offering
Headquarters: Solihull, England
Description: Operates an online fixed fee real estate brokeringplatform. The Company's online real estate brokeringplatform offers buying and selling of commercial andresidential properties, enabling clients to avail qualityresidential and commercial properties.
Strategic Investment In
Pending
Transaction Overview Overview
Platform
Accelerated U.S. Rollout – Purplebricks’ business model is
positioned to capitalize on current U.S. market dynamics and
provide consumers with an improved full service alternative. The
Company has expanded into 4 “Designated Marketing Areas” in
California and will be launching in the New York DMA on April 3rd .
Entering Strategic Markets – Create the infrastructure for rapid
growth and localize a technology platform for each new market
while aggressively pushing advertising and marketing.
Technological Innovation and Expansion – Cement its position in
hybrid / online markets to develop better, more rapid methods of
communication, search functionality and additional advertising and
marketing options for sellers and information customers.
1
2
3
Use of Proceeds – Growth Strategy U.S. Expansion
− Enables showings to be booked and offers to be made instantly without waiting for a broker, driving quicker negotiations and sales processes
− Buyers and sellers communicate securely and directly through the platform
− Platform provides the ability to draw a ‘search zone’ and will notify buyers and sellers when there are new properties that are bought / sold in the area
− Search platform provides users with features and information that allows homes to be filtered by numerous potential criteria
− Purplebricks’ local real estate expert provides a full CMA of the property based on local knowledge and experience
REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Axel Springer’s Strategic Investment in Purplebricks (LON: PURP)
(1)
88Notes:Source: Company Website and filings, Company Filings, Capital IQ , Pitchbook and Press Releases.(1) Stewart shareholders can also elect to receive $50 in cash or 1.285 common shares of Fidelity for each Stewart share held.
− On March 18, 2018, Fidelity National Financial reached a definitive agreement to acquire Stewart Information Services Corporation for ~$1.2Bn ($50.00 per share), a 23% stock price premium to the day prior
− Stewart shareholders will receive $25.00 in cash and 0.6425 common shares of Fidelity for each share of Stewart common stock held at closing(1)
− Fidelity National Financial expects to achieve at least $135MM in operational cost synergies and projects the acquisition would have been at least 15% accretive to pro-forma 2017 adjusted net earnings
− The transaction is expected to close in Q1 or Q2 of 2019, subject to regulatory approval
Acquired
Pending
Transaction Overview M&A Transaction History
Title Revenue by Type ($MM)
Ann.Date
TargetEnterprise
Value ($MM)EV / LTM Revenue
EV / LTM EBITDA
3/18/18 $1,138 0.6x 10.1x
10/02/17 ~Conf ~Conf ~Conf
7/25/17 N / A N / A N / A
6/26/17 N / A N / A N / A
5/22/17 N / A N / A N / A
2/21/17 N / A N / A N / A
7/26/16 $229 ~Conf ~Conf
$617 $606 $552
$178 $176$187
$83 $93$97
$20 $19$27
$897 $894$862
2015 2016 2017
Domestic Non-Commercial Domestic Commercial
International Non-Commercial International Commercial
REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Stewart Information Services Corporation (NYSE: STC) Acquired by Fidelity National Financial, Inc. (NYSE: FNF)
Stock Price History
$27.00
$32.00
$37.00
$42.00
$47.00(Spin-off Completed)
$40.02
99Notes:Source: Company Website and filings, Capital IQ , Pitchbook and Press Releases.
− On March 13, 2018, Silver Lake and Battery Ventures reached a definitive agreement to acquire Environmental Data Resources from the Daily Mail and General Trust plc (LSE: DMGT) for $205MM
− Environmental Data Resources has been in the Daily Mail’s portfolio since 1999, when it was bought for $95MM
− The investment will enable Environmental Data Resources to accelerate growth, specifically through its Collateral360 SaaS platform, which ensures compliance with risk policies by consolidating disparate processes and constituencies into one collaborative workspace
Headquarters: Shelton, CT
Founded: 1990
Employees: ~240
Description: Develops a comprehensive database intended to maintainenvironmental records and land use information fromthousands of federal, state, tribal, local and privatesources. The Company's database is used for property due-diligence and risk management services, enabling clientsincluding environmental consultants and engineers,appraisers, and lenders to manage real estate duediligence process.
Risk Management - Accesses property-centric information to better manage collateral risk during origination and monitor over the life-of-loan. Provides an environmental pre-screen, risk rating, loan checks (with risk assessment) and environmental reports.
Workflow - Realizes operational efficiencies by connecting the core systems, processes, people and services associated with property due diligence such as appraisals, evaluations and property reports.
Smart Data - Expands business intelligence by unlocking the power of data to support sound lending and business decisions. Collateral360 connects people with information and leverages technology to allow data flow between parties.
Compliance - Simplifies compliance with regulators and bank policy through Collateral360’s Policy Infused Technology, which enables lenders to filter loans, grant exceptions and demonstrate compliance to auditors and regulators.
Acquired
From
Closed
Transaction Overview Overview
PlatformEnd-Market Solutions
Lenders – Helps due diligence processes through simplifying lending
operations, improving risk management and meeting regulatory
demands.
Insurance – Provides environmental records and historical-use
sources on properties for cost-effective, subscription-based
solutions for the environmental review process.
Corporate – Uncovers critical environmental information for
decision making about corporate real estate transactions such as
M&A and real estate assets managed.
Residential – Identifies environmental concerns such as leaking
underground tanks, landfills, hazardous waste sites and other
environmental hazards.
Appraisers – Allows for project management on a single dashboard
where documents can be easily uploaded and transmitted to
clients.
1
2
3
4
5
REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Silver Lake and Battery Ventures Acquire Environmental Data Resources
1010
(30%)
(10%)
10%
30%
50%
70%
90%
110%
Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18
45%
3%
11%
45%
70%
11%
29%
Traditional Brokerage
Traditional Mortgage / Title
Real Estate Media / PortalsMortgage / Data Technology Property Management SoftwareCredit / Mortgage Marketing Real Estate Sharing Economy / TravelTraditional Mortgage / Title Traditional Brokerage
LTM Share Price Performance
11% 45% 29% 11%45%3% 70%
Property Management
Software
QNST: 227%TREE: 162%MONY: (13.1%)
Notes:Source: Capital IQ.
Credit / Mortgage Marketing
Real Estate Sharing Economy
/ Travel
Real Estate Media / Portals
Mortgage / Data Technology
REAL ESTATE TECHNOLOGY SECTOR SUMMARY
Public Real Estate Technology Ecosystem
LTM Share Price Performance
Public Company Valuation
1111
27.6x
22.9x
18.3x 17.7x14.6x
10.4x8.2x
0.0x
6.0x
12.0x
18.0x
24.0x
30.0x
1 1 1 1 1 1 1
7.7x
5.0x4.4x 3.9x 3.6x
2.2x 2.1x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
1 2 3 4 5 6 7
Notes:Multiples represent mean value of sector group.Source: Capital IQ.
NTM Revenue / NTM EBITDA Multiple
Traditional Brokerage
2.1x / 10.4x 5.0x / 27.6x
Property Management
Software
3.9x / 14.6x
Real Estate Sharing Economy
/ Travel
4.4x / 17.7x
Mortgage / Data Technology
7.7x / 22.9x
Real Estate Media / Portals
3.6x / 18.3x
Credit / Mortgage Marketing
2.2x / 8.2x
Traditional Mortgage / Title
Services
Traditional Brokerage
Traditional Brokerage
Traditional Mortgage
/ Title Services
Traditional Mortgage
/ Title Services
Real Estate Sharing
Economy / Travel
Real Estate Sharing
Economy / Travel
Mortgage / Data
Technology
Mortgage / Data
Technology
Credit / Mortgage Marketing
Credit / Mortgage Marketing
Property Management
Software
Property Management
Software
Real Estate Media / Portals
Real Estate Media / Portals
REAL ESTATE TECHNOLOGY SECTOR SUMMARYPublic Company Valuation (cont’d)
Enterprise Value / 2018E Revenue Enterprise Value / 2018E EBITDA
Public Real Estate Technology Ecosystem
1212
REAL ESTATE TECHNOLOGY SECTOR SUMMARY
($MM)
20
18
20
17
Selected M&A Activity
Notes:Source: Capital IQ, Pitchbook and Company filings.(1) Represents value of the 55% stake acquired.
(1)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
3/18/2018 $1,138 0.6x 0.6x 10.1x 7.8x Provides title insurance and real estate transaction services.
3/13/2018 205 2.8x NA NA NA Provides environmental risk information services and solutions.
3/8/2018 NA NA NA NA NA Provides housing software and services intended to help housing authorities effectively manage processes.
2/12/2018 3,587 2.2x 1.7x NM NMProvides servicing, origination, and transaction based services primarily to single-family residences in the
United States.
2/8/2018 NA NA NA NA NA Develops software for property management.
2/7/2018 395 NA NA NA NAProvides automotive finance and real-estate lending software solutions for banks, thrifts, credit unions,
mortgage companies, and captive finance companies in the United States.
2/2/2018 500 9.4x NA NA NAProvides cloud-based construction program management software to meet the needs of repeat builders in the
construction industry.
12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software.
11/17/2017 NA NA NA NA NAProvides an online portal that provides information on real estate properties. Its portal provides ads and other
advertising materials for real estate.
11/16/2017 NA NA NA NA NADevelops an online rental platform designed to help people with disabilities find reasonable and accessible
accommodations when traveling.
10/23/2017 NA NA NA NA NA Developer of rental housing software designed to manage complex tenancy relationships.
10/17/2017 NA NA NA NA NAProvides a cloud-based software system for clients in the condominium development and sales sector with a
comprehensive web-based application.
10/16/2017 NA NA NA NA NADevelops cloud-based transaction management systems designed to create, store, sign and manage all listing,
sales and lease files online.
10/16/2017 NA NA NA NA NAProvides housing management software for public housing authorities and private affordable housing
developments.
10/4/2017 NA NA NA NA NADevelops and supplies real estate management software designed to provide full access to vital information in
real estate
10/2/2017 NA NA NA NA NADevelops a SaaS-based real estate transaction management software created to help real estate agents manage
their transactions online.
9/12/2017 385 3.9x NA 25.7x NAOperates an online rental search destination that connects apartment shoppers to rental properties throughout
the United States and Canada.
9/8/2017 NA NA NA NA NA Provider of real estate listing management technology to developers and builders.
8/31/2017 128 NA NA NA NAProvides cloud-based intelligent sales software that enables mortgage companies to close more loans by
helping loan officers respond quickly to prospective borrowers.
(Lending Solutions Business)
1313Notes:Source: Capital IQ and Pitchbook.(1) Represents a merger of equals between VTS and Hightower.
20
16
($MM)
20
17
(1)
REAL ESTATE TECHNOLOGY SECTOR SUMMARYSelected M&A Activity (cont’d)
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
8/2/2017 NA NA NA NA NAProvides an online real estate marketplace allows people to buy and sell commercial and residential real estate
properties online using desktop and mobile technology.
8/2/2017 $250 NA NA NA NAProvides a real estate leasing platform that facilitates communicaty marketing, renter qualification, lease
contract generation and document storage.
8/1/2017 NA NA NA NA NA Provides mortgage loan application software, loan origination software, and data security solutions.
7/25/2017 NA NA NA NA NA Develops customer relationship management software and a marketing platform for real estate professionals.
7/10/2017 NA NA NA NA NA Provides an online marketplace that connects borrowers and lenders.
7/3/2017 1,434 3.0x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States.
6/19/2017 70 2.3x NA NA NA Provider of utility management and energy services.
6/13/2017 78 NA NA NA NAProvider of an online real estate agent platform, offering agents maximum property exposure and a host of
services.
6/6/2017 NA NA NA NA NAProvider of an appraisal management platform that uses desktop and cloud-based valuation supply chain
technology that connects all of the parties involved in the appraisal process.
6/1/2017 NA NA NA NA NA Developer of web-based CRM software intended for the real estate industry.
5/23/2017 NA NA NA NA NAProvider of a real estate software platform coupled with an open and connected ecosystem for real estate
businesses.
5/1/2017 588 1.9x 2.0x NM 20.3x Operator of a consumer review website intended to help consumers find service providers.
4/27/2017 NA NA NA NA NAProvider of a web-based land and rural property marketplace, facilitating buying, renting and selling of
properties.
3/13/2017 3,550 2.8x 2.8x 15.0x 10.0xDeveloper of lending and payments software products created to deliver financial technology to banks
worldwide.
2/27/2017 300 8.4x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America.
2/15/2017 300 NA NA NA NAOperator of an online rental marketplace intended to rent high-end properties. The company's rental platform
provides a marketplace for luxury and high-end villas to rent.
1/24/2017 75 NA NA NA NA Provider of data intelligence services designed to offer apartment market data.
11/29/2016 300 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their
enterprise.
9/21/2016 NA NA NA NA NA RedVision Systems, Inc. provides title reporting and property research solutions.
7/26/2016 NA NA NA NA NADeveloper and provider of an an end-to-end software as a service customer relationship management, lead
generation and lead management software platform
1414Notes:Source: Capital IQ and Pitchbook.
REAL ESTATE TECHNOLOGY SECTOR SUMMARYSelected M&A Activity (cont’d)
20
15
($MM)
20
16
Date Enterprise EV / Revenue EV / EBITDA
Announced Acquirer Target Value LTM NTM LTM NTM Target Description
6/22/2016 $36 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their
enterprise.
6/16/2016 NA NA NA NA NAProvides mortgage pricing and eligibility, mortgage sales, mortgage rate quoting and marketing automation
software for banks, mortgage lenders and loan officers.
6/7/2016 NA NA NA NA NA Provides cloud-based document and data management platforms.
6/3/2016 NA NA NA NA NAProvides SaaS based real estate investment management and reporting software and services for the
affordable housing, private equity, and government markets.
5/18/2016 NA NA NA NA NAProvides real estate and facilities management software solutions to Fortune 500 companies that automates
location lifecycle to improve the performance of locations.
5/16/2016 115 4.8x NA 23.0x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry.
2/25/2016 NA NA NA NA NAProvider of a search engine for rental properties. The company offers a map-based online platform with real-
time filtering that enables users to search for apartments to rent in a selected area.
2/23/2016 70 1.2x NA 11.7x NAProvides utility management, energy management, electronic payment, sub metering and back office
solutions.
2/2/2016 NA NA NA NA NA Provides commercial property management software for real estate companies in Germany.
1/28/2016 NA NA NA NA NA Provides Web-based property management solutions to support multiple properties, units, and users.
12/17/2015 475 NA NA NA 13.5x Provides property appraisal and real estate collateral management software.
11/4/2015 3,900 8.0x 7.2x 63.5x 28.4xProvider of an online vacation rental property marketplace that enables property owners / managers to market
properties for rental to travelers.
11/4/2015 18 NA NA NA NA Provider of hospitality management software systems for hotels, resorts, and spas worldwide.
10/14/2015 16 NA NA NA NAProvides a Web-based relationship management solution for mortgage professionals to improve customer
retention.
7/22/2015 108 NA NA NA NA Provider of an online collaborative transaction environment for the real estate industry.
6/3/2015 NA NA NA NA NAProvider of real estate enterprise software applications and hosted solutions for the property management
industry.
4/29/2015 170 2.2x NA 7.0x NA Provider of an online apartment listing service.
4/8/2015 NA NA NA NA NA Provider of an online apartment advertising service for property managers and owners.
6/2/2015 49 NA NA NA NA Provides a suite of cloud-based, smart answer automation and routing.
Mean 3.8x 1.9x 15.6x 11.7x
Median 2.3x 2.0x 12.7x 9.5x
1515Notes:Source: Capital IQ, Pitchbook and Company filings.(1) Fiscal year change announced 5/23/2017.
REAL ESTATE TECHNOLOGY SECTOR SUMMARYReal Estate Technology Ecosystem
($MM, except per share data)
Stock Trading Metrics Operating Metrics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin
Company 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E
Real Estate Media / Portals
CoStar Group, Inc. $362.68 $13,091 ($1,211) $11,879 $965 $1,168 12.3x 10.2x NM 32.2x 15.2% 21.0% 25.9% 31.6%
Zillow Group, Inc. $54.00 10,297 (377) 9,920 1,077 1,309 9.2x 7.6x NM 32.0x 27.2% 21.6% 7.7% 23.7%
REA Group Limited $60.91 8,022 126 8,148 598 663 13.6x 12.3x 26.5x 21.2x 32.0% 10.7% 51.4% 58.0%
Rightmove plc $61.01 5,519 (34) 5,486 329 374 16.7x 14.7x 22.6x 19.3x 21.1% 13.6% 73.9% 76.0%
ZPG Plc $4.72 2,046 257 2,303 342 434 6.7x 5.3x 17.1x 13.5x 17.9% 27.0% 39.3% 39.4%
Redfin Corporation $22.83 1,867 (206) 1,661 370 470 4.5x 3.5x NM NM 38.5% 27.0% (2.4%) 1.3%
Purplebricks Group PLC $4.41 1,209 (86) 1,124 116 222 9.7x 5.1x NM NM 141.2% 90.6% (16.6%) 3.3%
Lifull Co., Ltd. $9.03 1,072 (40) 1,032 149 359 3.5x 2.9x NM 19.3x (38.0%) 141.4% 9.7% 14.9%
Real Estate Media / Portals
Mean 9.5x 7.7x 22.1x 22.9x 32% 44% 24% 31%
Median 9.4x 6.4x 22.6x 20.3x 24% 24% 18% 28%
Mortgage / Data Technology
Black Knight, Inc. $47.10 $7,068 $1,423 $8,491 $1,052 $1,118 8.1x 7.6x 22.6x 16.0x 2.5% 6.3% 35.7% 47.6%
CoreLogic, Inc. $45.23 3,688 1,635 5,323 1,851 1,848 2.9x 2.9x 13.8x 11.2x (5.2%) (0.2%) 20.8% 25.6%
Ellie Mae, Inc. $91.94 3,153 (241) 2,912 417 498 7.0x 5.8x NM 22.2x 15.8% 19.5% 16.9% 26.3%
Real Matters Inc. $5.65 499 (78) 421 303 358 1.4x 1.2x NM 24.7x 21.9% 18.2% 3.1% 4.7%
Reis, Inc. $21.45 248 (20) 228 48 52 4.7x 4.4x 27.7x 14.2x 1.4% 8.9% 17.1% 30.6%
Mortgage / Data Technology
Mean 4.8x 4.4x 21.4x 17.7x 7% 11% 19% 27%
Median 4.7x 4.4x 22.6x 16.0x 2% 9% 17% 26%
Property Management Software
RealPage, Inc. $51.50 $4,279 $579 $4,859 $671 $841 7.2x 5.8x NM 22.2x 18.1% 25.3% 14.1% 26.1%
AppFolio, Inc. $40.85 1,392 (46) 1,346 144 181 9.4x 7.4x NM 36.0x 36.2% 26.1% 9.1% 20.6%
Agilysys, Inc. $11.92 279 (37) 242 126 133 1.9x 1.8x NM 24.5x (2.4%) 5.4% (8.7%) 7.4%
Property Management Software
Mean 6.2x 5.0x NM 27.6x 17% 19% 5% 18%
Median 7.2x 5.8x NM 24.5x 18% 25% 9% 21%
Traditional Brokerage
Jones Lang LaSalle Incorporated $174.64 $7,930 $794 $8,724 $7,932 $8,418 1.1x 1.0x 11.2x 11.0x 16.6% 6.1% 9.8% 9.4%
Realogy Holdings Corp. $27.28 3,568 3,315 6,883 6,114 6,263 1.1x 1.1x 9.4x 9.6x 5.2% 2.4% 12.0% 11.4%
Colliers International Group Inc. $69.36 2,700 141 2,842 2,275 2,534 1.2x 1.1x 12.1x 10.4x 20.0% 11.4% 10.3% 10.8%
RE/MAX Holdings, Inc. $60.45 1,070 178 1,248 196 208 6.4x 6.0x 12.5x 11.6x 11.1% 6.1% 51.0% 51.8%
Marcus & Mill ichap, Inc. $36.06 1,391 (286) 1,105 720 749 1.5x 1.5x 10.9x 9.6x 0.3% 4.1% 14.1% 15.3%
Traditional Brokerage
Mean 2.3x 2.1x 11.2x 10.4x 11% 6% 19% 20%
Median 1.2x 1.1x 11.2x 10.4x 11% 6% 12% 11%
(1)
1616Notes:Source: Capital IQ.
REAL ESTATE TECHNOLOGY SECTOR SUMMARYReal Estate Technology Ecosystem (cont’d)
($MM, except per share data)
Stock Trading Metrics Operating Metrics
Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin
Company 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E
Traditional Mortgage / Title
Fidelity National Financial, Inc. $40.02 $10,985 ($168) $10,817 $7,668 $7,844 1.4x 1.4x 9.8x 9.6x 5.6% 2.3% 14.4% 14.3%
Ocwen Financial Corporation $4.12 549 6,822 7,372 1,195 1,009 6.2x 7.3x NM NM (13.9%) (15.5%) NA NA
First American Financial Corporation $58.68 6,511 (654) 5,857 5,772 5,918 1.0x 1.0x 9.5x 7.1x 3.5% 2.5% 10.7% 13.9%
Radian Group Inc. $19.04 4,113 (56) 4,057 1,222 1,310 3.3x 3.1x 5.5x NM (1.4%) 7.2% NA NA
Nationstar Mortgage Holdings Inc. $17.96 1,755 1,376 3,131 1,650 2,130 1.9x 1.5x NM NM 32.0% 29.1% NA NA
Stewart Information Services Corporation $43.94 1,043 (51) 992 1,957 2,019 0.5x 0.5x 8.8x 6.8x (2.8%) 3.2% 5.8% 7.2%
Altisource Portfolio Solutions S.A. $26.56 462 261 723 942 873 0.8x 0.8x 5.8x 9.1x (5.5%) (7.3%) 13.2% 9.1%
Traditional Mortgage / Title
Mean 2.2x 2.2x 7.9x 8.2x 3% 3% 11% 11%
Median 1.4x 1.4x 8.8x 8.1x (1%) 3% 12% 11%
Credit / Mortgage Marketing
LendingTree, Inc. $328.15 $4,018 ($130) $3,887 $618 $785 6.3x 5.0x NM 26.0x 60.7% 27.1% 13.8% 19.0%
Moneysupermarket.com Group PLC $4.03 2,158 (47) 2,111 446 476 4.7x 4.4x 13.6x 11.9x 14.1% 6.9% 34.9% 37.1%
QuinStreet, Inc. $12.77 590 (42) 548 336 379 1.6x 1.4x NM 17.0x 12.1% 12.9% 3.4% 8.5%
Credit / Mortgage Marketing
Mean 4.2x 3.6x 13.6x 18.3x 29% 16% 17% 22%
Median 4.7x 4.4x 13.6x 17.0x 14% 13% 14% 19%
Real Estate Sharing Economy / Travel
Booking Holdings Inc. $2,080.39 $100,459 $2,124 $102,583 $12,681 $14,784 8.1x 6.9x 20.8x 18.2x 18.0% 16.6% 38.8% 38.1%
Expedia Group, Inc. $110.41 16,794 934 17,728 10,060 11,284 1.8x 1.6x 15.3x 9.6x 14.7% 12.2% 11.5% 16.4%
TripAdvisor, Inc. $40.89 5,683 (387) 5,296 1,556 1,605 3.4x 3.3x 30.6x 15.9x 5.1% 3.1% 11.1% 20.7%
Real Estate Sharing Economy / Travel
Mean 4.4x 3.9x 22.3x 14.6x 13% 11% 20% 25%
Median 3.4x 3.3x 20.8x 15.9x 15% 12% 12% 21%