The Software Industry Financial Report

Transcription

1 The Software Industry Financial Report

2 SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS About Software Equity Group Leaders in Software M&A 4 Extensive Global Reach 5 Software Industry Macroeconomics Global GDP 8 U.S. GDP and Unemployment 9 Global IT Spending 10 E-Commerce and Digital Advertising Spend 11 SEG Indices vs. Benchmark Indices 12 Public Software Financial and Valuation Performance The SEG Software Index 14 The SEG Software Index: Financial Performance The SEG Software Index: Market Multiples The SEG Software Index by Product Category 20 The SEG Software Index by Product Category: Financial Performance 21 The SEG Software Index by Product Category: Market Multiples 22 Public SaaS Company Financial and Valuation Performance The SEG SaaS Index 24 The SEG SaaS Index Detail 25 The SEG SaaS Index: Financial Performance The SEG SaaS Index: Market Multiples The SEG SaaS Index by Product Category 31 The SEG SaaS Index by Product Category: Financial Performance 32 The SEG SaaS Index by Product Category: Market Multiples 33 Public Internet Company Financial and Valuation Performance The SEG Internet Index 35 The SEG Internet Index: Financial Performance The SEG Internet Index: Market Multiples The SEG Internet Index by Product Category 41 The SEG Internet Index by Product Category: Financial Performance 42 The SEG Internet Index by Product Category: Market Multiples 43 1

3 SOFTWARE INDUSTRY FINANCIAL REPORT CONTENTS Software Industry M&A Market Update Software/SaaS M&A Deal Volume and Spending 45 Software M&A Exit Multiples 46 Software M&A by Ownership Structure and Size 47 Software M&A by Vertical and Horizontal Markets 48 Software M&A by Product Category SaaS M&A Deal Volume and Exit Multiples 51 SaaS M&A by Product Category 52 SaaS M&A: 3Q13 Transactions Internet M&A: Deal Volume and Exit Multiples Appendix The SEG Software Index Companies The SEG SaaS Index Companies 62 The SEG Internet Index Companies The SEG Software Index by Key Metrics The SEG SaaS Index by Key Metrics 70 The SEG Internet Index by Key Metrics The SEG Software Index Metrics by Product Category The SEG SaaS Index Metrics by Product Category 76 The SEG Internet Index Metrics by Product Category 77 3Q13 Public Sellers 78 3Q13 Software Mega Deals (>$500M) 79 3Q13 Most Active Buyers 80 2

4 ABOUT SOFTWARE EQUITY GROUP 3

5 LEADERS IN SOFTWARE M&A Industry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking: Strategic exit Growth capital Buyout Inorganic growth via acquisition Buy and sell-side mentoring Fairness opinions and valuations Sell-side client revenue range: $5-75 million Buy-side clients include private equity firms and NASDAQ, NYSE and foreign exchange listed companies Clients span virtually every software technology, product category, delivery model and vertical market Global presence providing advice and guidance to more than 2,000 private and public companies throughout h t US, Canada, Europe, Asia-Pacific, Africa and Israel Strong cross-functional team leveraging transaction, operating, legal and engineering experience Unparalleled software industry reputation and track record. Highly referenceable base of past clients We Do Deals. 4

6 EXTENSIVE GLOBAL REACH Current Sell-side Representation SEG currently represents software companies in the United States, Canada, France, Germany, Australia & Saudi Arabia Recent Sell-side Representation In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa SEG Research Distribution SEG s Quarterly and Annual Software Industry Equity q y Reports p and Monthly y Flash Reports p are distributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants,, etc. in 76 countries. p 5

7 ABOUT SOFTWARE EQUITY GROUP Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions. Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value. Perhaps most important t are the relationships we've built and the industry reputation ti we enjoy. Software Equity Group is known and respected by publicly l traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports. Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858) , [email protected]. CONTACT INFORMATION: Software Equity Group, L.L.C El Camino Real, Suite 320 San Diego, CA p: (858) The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. 6

8 SOFTWARE INDUSTRY MACROECONOMICS 7

9 GLOBAL GDP According to the Economist, Global GDP growth slowed in 2Q13 (the latest data available), retreating to 2.1% from 3.1% in 2Q12. The global economy was constrained by the Europe s continuing recession and slowing GDP growth in China, which is where a major experiment is underway to shift its economy from rural to urban based and consumer driven. Other key emerging markets struggle with social unrest from high unemployment and lackluster growth. For the year, PIMCO forecasts Global GDP to grow %, up slightly from previous forecasts due to strengthened economies in the U.S. and Japan, which are hoped to offset Europe s economic malaise and slowed growth among the larger emerging nations. 8 Sources: Worldbank, The Economist and PIMCO

10 U.S. GDP AND UNEMPLOYMENT 1 8% GDP % Growth Unemployment Rate 6% 4% 2% 36% 3.6% 2.1% 1.5% 2.2% % 1.7% 2.6% 3.1% 0.4% 2.5% 1.3% 41% 4.1% % 3.1% 0.4% 2.5% 1.8% 2.2% -2% -0.7% 07% -0.7% -4% -2.7% -6% -8% -5.4% -6.4% 64% 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 According to August s s Federal Reserve survey of 42 economists, GDP growth in 3Q13 is predicted to be 2.2%. 2% For the year, expectations are the U.S. economy will grow 2.. PIMCO, however, is a bit more conservative. In its 3Q13 market perspectives, PIMCO forecast U.S. GDP growth of 1.5% - 2. for the year, citing continuing strength in the housing market. 9

11 GLOBAL IT SPENDING in IT Spending YoY Change % (F) In July, analysts lowered their earlier forecast of 3.9% increase in Global IT spending to a mere 2% increase. Estimates for 2014 are more promising, with an array of economists forecasting 4.1% growth in Global IT spending. According to Forrester, software is garnering the largest share of Global IT dollars, $542M in Software spending is expected to grow 3.3% in 2013, and 6.2% in SaaSS software spending is projected to increase 25% in Especially hot IT Software spending priorities include: collaboration (13% YoY growth), business intelligence (11%), epurchasing (1), HR management (9%), and healthcare systems (8%). 10 Sources: IT spending numbers shown in charts are a blended average of Goldman Sachs, IDC, Forrester, Gartner forecasts

12 E-COMMERCE AND DIGITAL ADVERTISING SPEND E-Commerce Spending Digital Advertising Revenue illions) rce Spending ($ M E-Commer 60,000 50,000 40,000 30,000 20, , % 1 5% 5% Yo oy % Change llions) ng Revenue ($ Mil Internet Advertisi 12,000 10,000 8,000 6,000 4,000 2, % 2 15% 1 5% 5% 1 Yo oy % Change U.S. e-commerce retail sales totaled $49.8B in 2Q13 (the latest data available), just shy of a third consecutive $50B+ quarter. The Q2 total t for online retail spending accounted for 96% 9.6% of all discretionary retail dollars spent, the highest on record. 2Q13 s 16% YoY growth in online sales marks the eleventh consecutive quarter of double-digit growth. Other e-commerce categories with at least 19% YoY growth included: Digital Content & Subscriptions, Apparel & Accessories, Sport & Fitness, Consumer Electronics, and Consumer Packaged Goods. U.S. digital advertising revenues totaled $10.3B in 2Q13 (the latest quarter data was available), which equates to an 18% YoY growth increase. For the first-half of 2013, Internet ad revenues surged to a landmark $20.1 billion. 2Q13 s strong first quarter follows on the heels of a strong 2012, when digital advertising soared 15% to $36.6B. For the first time, growth in mobile advertising revenue reached $3 billion for the first half of 2013, up 145% YoY. 11 Sources: comscore, IAB, IBD

13 SEG INDICES VS. BENCHMARK INDICES 60. DOW S&P NASDAQ SEG SaaS SEG SW Index SEG Internet Index (10.) Jan Feb Mar Apr May Jun Jul Aug Sep Optimism continued to prevail on Wall Street despite repeated warnings by the Federal Reserve in Q3 that it would retreat from its $85 billion monthly bond buying program which it subsequently reversed in 3Q13. The NASDAQ posted the best stock return of the three major stock indices in Q3, finishing up 11.2%. Through three quarters, the NASDAQ is up a whopping 24.9%. The S&P, which returned 12.8% in the first half of the year, tacked on an additional 4.7% in 3Q. After leading all major indices through the first half of the year with a return of 14.6%, the DOW only gained an additional 1.2% in Q3. YTD, the DOW s 15.8% return is still highly respectable. Both the SEG SaaS and the SEG Internet Index benefited from investors with greater risk tolerance, posting 28.2% (SaaS) and 23.7% (Internet) returns, respectively, by close of Q3. By contrast, the SEG Software lagged well behind, returning 13.3% in 3Q. By close of Q3, the SEG SaaS and SEG Internet indexes have gained 50.7% (SaaS) and 48.5% (Internet), respectively. 12

14 PUBLIC SOFTWARE COMPANY FINANCIAL AND VALUATION PERFORMANCE: THE SEG SOFTWARE INDEX 13

15 THE SEG SOFTWARE INDEX SEG - Software: Median Metrics Measure 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.7x 2.6x 2.8x 2.7x 3.0x EV/EBITDA 11.5x 11.8x 13.3x 12.6x 13.5x EV/Earnings 22.6x 22.1x 24.0x 24.4x 28.0x Gross Profit Margin 65.8% 65.9% 66.1% 66.5% 67.1% EBITDA Margin 19.2% 19.6% 19.3% 18.6% 18.7% Net Income Margin 9.4% 9.9% 8.7% 8.2% 8.2% TTM Revenue Growth 14.7% % 11.7% 10. TTM Total Revenue ($M) $427.0 $452.3 $461.7 $471.9 $483.6 TTM EBITDA Growth 15.9% 9.4% 7.2% 5.4% 6.1% TTM Total EBITDA ($M) $71.2 $75.1 $76.0 $82.7 $86.0 Cash & Eq ($M) $157.3 $159.7 $169.3 $180.9 $175.9 Current Ratio Debt / Equity Ratio 21.3% 22.5% 25.1% 26.6% 23.1% The SEG Software Index tracks public software companies that primarily offer onpremise software under a perpetual EBITDA M i 19 2% 19 6% 19 3% 18 6% 18 7% license with annual M&S The SEG Software Index is currently comprised of 133 public software companies* 14 * See appendix for a complete list of companies in The SEG Software Index

16 THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE Revenue Performance TTM Revenue Growth Rate Distribution l Revenue TTM Tota 15 $490 $480 $470 $460 $450 $440 $430 $420 $410 $400 $390 TTM Total Revenue ($M) TTM Revenue Growth 3Q12 4Q12 1Q13 2Q13 3Q13 On-premise software companies lost market share to SaaS providers, and continued to be buffeted by tightly constrained IT capital budgets and macro economic headwinds. The median TTM revenue growth rate of the SEG Software Index dropped to 10., the fourth consecutive quarterly of decline. Perhaps as testament to how much consolidation has occurred among on-premise providers, the median TTM revenue of the SEG Software Index reached $483.6M, the highest in history, and the highest among our three tracking indices. We expect TTM revenue growth for most on-premise public software companies to remain modest for the balance of the year, which portends more acquisitions and R&D spending to spur top line growth. 16% 14% 12% 1 8% 6% 4% 2% TTM Reven nue Growth % of Co ompanies 35% 3 25% 2 15% 1 5% 15% 31% <= > <= 1 7 of public on-premise software companies had TTM revenue growth rates of 2 or below Of the 16% of companies with TTM revenue growth rates of 3 or more, a disproportionate number are focused on mobility and cloud 24% computing > 1 <= 2 14% > 2 <= 3 TTM Revenue Growth 6% > 3 <= 4 1 > 4

17 THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE EBITDA Margin Performance TTM EBITDA Margin Distribution Margin EBITDA 22% 2 18% 16% 14% 12% 1 8% 6% 4% 2% EBITDA Margin TTM EBITDA Growth 3Q12 4Q12 1Q13 2Q13 3Q13 18% 16% 14% 12% 1 8% 6% 4% 2% TTM EBITD DA Growth % of Co ompanies 3 25% 2 15% 1 5% Almost one in three on-premise software companies posted EBITDA margins of % 27% 1 18% <= > <= 1 > 1 <= 2 > 2 <= 3 11% > 3 <= 4 6% > 4 The median EBITDA margin of public on-premise software companies remained at historic levels, closing 3Q13 at 18.7%. TTM EBITDA Margin In the current scenario, it s unlikely members of the SEG Software Index will be able to push much more to the bottom line. Their median TTM EBITDA growth plunged from 15.9% YoY in 3Q12 to only 5.4% YoY growth in 3Q13. 16

18 THE SEG SOFTWARE INDEX: FINANCIAL PERFORMANCE Operating Ratios Margin Performance S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) 25% 2 Gross Profit Margin EBITDA Margin Net Income Margin % of Revenue 15% 1 % Margin % 2 1 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Among public on-premise software compnaies, median spending in Q3 was consistant with historical norms: 14.9% for Research & Development, 23.2% for Sales & Marketing, and 10.8% for General & Administrative. Over the past year, S&M, R&D and G&A expenses as a percent of revenue have remained flat. Median S&M spending among on-premise public software companies lagged far behind their SaaS counterparts, which continued to invest heavily in new customer acquisition (39.3% for SaaS and 23.2% for on-premise). In 3Q13, median gross profit, EBITDA and net income margins were 67.1%, 18.7% and 8.2%, respectively. Several on-premise providers achieved gross profit margins of 89% or greater, including: Sage Group (93.9%), Unit 4 (92.8%), SolarWinds (92.7%), Splunk (89.). We anticipate EBITDA margins and net income margins will likely decline over the next several quarters, as on-premise software companies increase their investments in R&D to improve products/delivery models, and in sales & marketing to accelerate TTM revenue growth. 17

19 THE SEG SOFTWARE INDEX: MARKET MULTIPLES EV/Revenue and EV/EBITDA Multiples EV/Revenue Multiples by Size (TTM Revenue) 16.0x 14.0x 12.0x 10.0x 80x 8.0x 6.0x 4.0x 2.0x EV/Revenue EV/EBITDA 13.3x 13.5x 12.6x 11.5x 11.8x 2.7x 2.6x 2.8x 2.7x 3.0x Median EV V/Revenue 4.0x 3.5x 3.0x 2.5x 20x 2.0x 1.5x 1.0x 0.5x Revenue Greater Than $1 billion Revenue Between $100 million and $500 million Revenue Between $500 million and $1 billion Revenue Less Than $100 million x 3Q12 4Q12 1Q13 2Q13 3Q13 00x 0.0x 3Q12 4Q12 1Q13 2Q13 3Q13 Despite slowing growth and EBITDA erosion, the median EV/Revenue multiple of public on-premise software companies ticked up 30 basis points 3Q13, closing the quarter at 3.0x. This marks only the second time since 1Q06 that the SEG Software Index median EV/Revenue multiple reached 3.0x or higher. The other quarter was 2Q11 when the multiple 3.1x. The higher EV/Revenue median multiples are most likely attributed to a higher percentage of recurring revenue, as many on-premise software providers transition to subscription pricing and periodic license models. Adobe is a great example. As the company converts to a SaaS model, its revenue growth rate has rapidly decelerated (11., 4.4%, (5.3%) in 2010, 2011, 2012, respectively) yet its EV/Revenue multiple has grown from 2.9x to5 5.8x over the same period due to a growing percentage of recurring revenue. 18 Investors in 3Q13 continued to place higher value on larger public software companies with revenues >$100 million. Throughout 2012, and into 3Q13, the EV/Revenue multiples of on-premise software companies with revenues <$100 million remained markedly lower than their larger counterparts. SEG Software Index companies with TTM revenue between $100M and $1B successfully balanced TTM revenue growth (median 16.6%) 6%) and profitability (median EBITDA of 15.3%), and were rewarded with the highest median EV/Revenue multiples.

20 THE SEG SOFTWARE INDEX: MARKET MULTIPLES EV/Revenue Multiples vs. TTM Revenue Growth Rates EV/Revenue Multiples vs. TTM EBITDA Margins 6.0x 5.0x 5.7x 5.6x 7.0x 6.0x 6.1x Median EV/Revenue 4.0x 3.0x 2.0x 1.0x 1.2x 2.8x 3.0x 3.3x Median EV/Revenue 5.0x 4.0x x 2.0x 1.0x 2.4x 26x 2.6x 2.0x 3.2x 3.3x 0.0x <= > <= 1 > 1 <= 2 > 2 <= 3 TTM Revenue Growth > 3 <= 4 > 4 Investors awarded markedly higher market multiples to public on-premise software companies with revenue growth exceeding 2. Indeed, public on-premise software companies with revenue growth rates of 2-3 and greater than 4 closed 3Q13 with median EV/Revenue multiples of 5.7x and 5.6x, respectively 0.0x <= > <= 1 > 1 <= 2 > 2 <= 3 TTM EBITDA Margin > 3 <= 4 > 4 Premium market multiples were awarded to the select few on- premise software providers generating EBITDA margins north of 4. Surprisingly, the EV/Revenue multiple range for most onpremise software companies was relatively narrow, suggesting investors were seemingly indifferent to sub 4 profitability, a stark reversal from prior quarters. 19

21 THE SEG SOFTWARE INDEX: BY PRODUCT CATEGORY SEG Software Index Category EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Billing & Service Management 1.3x 1.5x 1.9x 1.9x 2.3x 8.0x 8.2x 8.4x 8.3x 8.7x 9.5% 10.4% 10.4% 8.9% 16.9% 18.8% 19.8% 20.7% 18.7% 18.4% Business Intelligence 3.7x 3.2x 3.4x 3.0x 3.3x 25.6x 17.5x 15.8x 16.5x 17.1x 13.8% 13.2% 11.8% 13.1% 14.2% 16.5% 14.7% % 13.3% Development Platforms 2.5x 2.5x 2.5x 2.6x 2.6x 8.2x 9.6x 9.1x 10.1x 14.2x 3.5% 1.6% % -0.3% 24.7% 23.5% 21.1% 20.3% 20.4% Engineering & PLM 2.6x 2.5x 2.7x 2.7x 2.8x 12.1x 11.8x 13.4x 12.4x 13.8x 13.2% % 11.7% 8.4% 20.5% 20.6% 20.7% 20.5% 20.3% Enterprise Resource Planning 2.1x 2.2x 2.3x 2.5x 2.5x 9.2x 9.1x 10.1x 12.1x 12.2x 4.7% 3.4% 2.6% 1.5% 2.2% 23.2% 23.1% 22.8% 22.4% 22.2% Financial & Accounting 2.9x 2.9x 3.1x 3.3x 3.3x 9.8x 9.8x 10.5x 11.3x 12.0x 17.2% 13.8% 8.6% 10.7% 9.5% % 27.5% 26.6% 26.1% Gaming 1.0x 1.0x 1.1x 1.3x 1.7x 9.1x 8.0x 7.1x 9.4x 11.3x 2.2% 0.1% 7.4% 15.1% 14.9% 14.9% 15.7% 14.9% 15.4% 14.6% Healthcare 2.2x 2.1x 2.1x 2.1x 2.5x 12.8x 11.3x 14.8x 17.6x 16.1x 24.2% 19.6% 10.7% % 20.6% 18.5% 13.4% 14.1% 14.3% IT Conglomerates 2.8x 2.5x 2.5x 2.9x 2.7x 8.4x 8.0x 9.0x 8.7x 8.3x 1.5% 1.4% 0.5% 0.2% 1.2% 36.1% 34.6% 33.8% 33.8% 34.3% Mobile Solutions/Content 32x 3.2x 25x 2.5x 27x 2.7x 28x 2.8x 30x 3.0x 13.8x 11.9x 20.6x 13.2x 13.5x 44.9% 48.1% 44.5% 24.6% 13.2% 78% 7.8% 64% 6.4% 45% 4.5% 79% 7.9% 8 8. Networking & Network Performance Management 3.0x 3.0x 2.8x 2.7x 2.8x 16.4x 14.9x 15.3x 17.0x 17.0x 17.3% 14.6% 15.2% % 16.3% % % Security 4.2x 3.1x 3.5x 4.5x 4.9x 11.5x 11.9x 20.7x 16.7x 12.7x 22.8% 23.9% 23.8% 21.8% 21.2% 18.4% 17.1% 8.1% 7.3% 7.5% Storage, Data Management & Integration 2.5x 2.3x 2.4x 2.4x 2.7x 9.2x 8.4x 9.2x 8.8x 8.9x 6.3% 6.5% 4.8% 4.1% 3.3% 23.9% 23.8% 22.2% 21.9% 22.2% Supply Chain Management & Logistics 2.5x 2.9x 3.3x 3.4x 4.1x 10.5x 12.7x 14.5x 15.0x 17.1x 15.9% 11.2% 11.3% 9.3% 10.2% 17.1% 16.6% % 19.2% Systems Management 6.9x 5.7x 5.6x 5.0x 5.4x 26.6x 24.6x 23.0x 20.9x 19.7x 18.7% 17.4% 17.2% 16.1% 16.4% 25.9% % 23.8% 24.2% Vertical - Finance 3.2x 3.0x 3.4x 3.8x 3.7x 10.6x 9.4x 10.7x 11.4x 12.6x 6.3% 7.1% 6.7% 7.6% 7.4% 26.2% 26.3% 26.5% 27.3% 26. Vertical - Other 2.9x 2.9x 3.0x 3.2x 3.6x 21.2x 21.3x 22.0x 22.1x 20.8x % 21.3% % 14.3% % 14.4% 15.5% Median 2.7x 2.6x 2.8x 2.7x 3.0x 11.5x 11.8x 13.3x 12.6x 13.5x 14.7% % 11.7% % 19.6% 19.3% 18.6% 18.7% The SEG Software Index is segmented into 17 product categories See Appendix for the complete list of companies within each product category 20

22 THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 25% 2 15% 1 5% (5%) 3Q13 TTM Revenue Growth 3Q13 YoY Change in Revenue Growth (2) (4) (6) (8) (10) Billing & Service Business Intelligence Development Engineering & PLM Enterprise Finan Healt cial & Gaming hcare IT Conglomerates Mobile Networking & Storage Supply Security, Data Chain Systems Vertical - Finance Vertical - Other Billing & Service Business Intelligence Development Engineering & PLM Enter rprise Financial & Gaming Healthcare IT Conglomerates Mobile Networking & Storage, Security Data Supply Chain Systems Vertical - Finance Vertical - Other 4 35% 3 25% 2 15% 1 5% 3Q13 TTM EBITDA Margin 2 (2) (4) (6) (8) (10) 3Q13 YoY Change EBITDA Margin Billing & Servic Business Intelligenc E e e Development ngineering & PLM Enterpris e Financial & Gaming Healthcare IT Conglomerates Mobil le Networking & Securit Storage, Dat Supply Chai ty ta n Systems Vertical - Financ e Vertical - Other Billing & Servi Business Intelligence ice Development Engineering & PLM Enterpr Financia Gami rise l & ing Healthcare IT Conglomerat tes Mobile Networking & Secur rity Storage, Data Supply Chain Syste Vertical - Finance Vertical - Other ms 21

23 THE SEG SOFTWARE INDEX BY PRODUCT CATEGORY: MARKET MULTIPLES 3Q13 Median EV/Revenue Multiples 3Q13 YoY Change in Median EV/Revenue Multiples 6.0x 50x 5.0x 4.0x 3.0x x 1.0x (2) 0.0x (4) Billing & Service Business Intelligence Development Plat tforms Engineering & PLM Enterprise Resource Planning Stor Financial & Accounting Healt Gaming thcare IT Conglomerates Mobile Solutions/Content Networking & Network Security rage, Data Management Supply Chain Management Billin Enter Systems Management Vertical - Finance Vertical - Other g & Service Management Business Intel ligence Development Platforms Engineering rprise Resource Pl & PLM anning Financial & Accounting Gaming Healthcare IT Conglomerates Mobile Solutions/Content Networking & Network Storage, Data Manage Sup Security ment & ply Chain Management & Systems Management Vertical - Finance Vertical -Other In 3Q13, seven product categories achieved median EV/Revenue multiples above the SEG Software Index median of 3.0x, including Systems Management (5.4x), Security (4.9x), Supply Chain Mgmt & Logistics (4.1x), Vertical - Finance (3.7x), Vertical - Other (3.6x), Financial & Accounting (3.3x), Business Intelligence (3.3x). For some categories, TTM revenue growth translated to an impressive EV/Rev market valuation (Security, Systems Mgmt), while other categories demonstrated a curious disconnect between market valuation and top line growth (Billing & Service Mgmt, Vertical - Other). The Systems Management product category, benefitting from the rapid shift to cloud computing and growing demand for cloud infrastructure, achieved the highest median EV/Revenue multiple (5.4x) in 3Q13, driven by strong TTM revenue growth (16.4%) and EBITDA margins (24.2%) 2%) both above the median for the index. 22

24 PUBLIC SaaS COMPANY FINANCIAL AND VALUATION PERFORMANCE: THE SEG SaaS INDEX 23

25 THE SEG SaaS INDEX SEG - SaaS: Median Metrics Measure 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 5.5x 4.8x 5.3x 5.7x 6.5x EV/EBITDA 41.5x 41.7x 35.4x 31.5x 40.6x EV/Earnings 40.9x 40.2x 63.8x 106.1x 125.4x Gross Profit Margin 70.5% 70.9% 70.8% 70.8% 70.3% EBITDA Margin 6.9% 6.9% 5.7% 2.3% 2.1% Net Income Margin -0.9% -0.3% -1.8% % TTM Revenue Growth 28.7% 26.8% 25.3% % TTM Total Revenue ($M) $108.1 $117.5 $127.7 $143.1 $163.8 TTM EBITDA Growth % 7.9% % TTM Total EBITDA ($M) $6.0 $6.0 $6.8 $5.1 $2.7 Cash & Eq ($M) $67.0 $66.1 $68.0 $74.7 $89.1 Current Ratio Debt / Equity Ratio 6.9% 5.7% 6.5% 6.4% 8.3% The SEG SaaS Index tracks public companies that primarily offer hosted, ondemand software under a subscription and/or transaction based pricing model The SEG SaaS Index is currently comprised of 41 public pure-play SaaS companies* 24 * See appendix for a complete list of companies in The SEG SaaS Index

26 THE SEG SaaS INDEX: FINANCIAL PERFORMANCE Revenue Performance TTM Revenue Growth Rate Distribution l Revenue TTM Total $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 TTM Total Revenue ($M) TTM Revenue Growth Q12 4Q12 1Q13 2Q13 3Q13 TTM Reven nue Growth % of Co ompanies 35% 3 25% 2 15% 1 5% Only 3% of public SaaS companies generated TTM revenue growth of 1 or less 3% <= > <= 1 26% > 1 <= 2 29% 29% 3 achieved TTM revenue growth of 4 or more 24% > 2 <= 3 > 3 <= 4 6% > 4 <= 5 > 5 After declining for four consecutive quarters, the median TTM revenue growth rate for the SEG SaaS Index edged up to 30.6% in 3Q13. Public SaaS companies continued to grow, mature and gain market share; Q3 s median TTM revenue exceeded $160M, up sharply from 3Q12 s $108M. The sharp uptick in median revenue growth is largely attributed to a host of new market grabbing SaaS IPOs in 3Q13. Select examples include: FireEye (109% TTM Revenue Growth;), Tableau Software (71%), Textura (65%), Marketo (62.), and Cvent (36%). TTM Revenue Growth 25

27 THE SEG SaaS INDEX: FINANCIAL PERFORMANCE EBITDA Margin Performance TTM EBITDA Margin Distribution Margin EBITDA 8% 6% 4% 2% EBITDA Margin TTM EBITDA Growth 3 25% 2 15% 1 5% TTM EBITD DA Growth % of Co ompanies 4 35% 3 25% 2 15% 1 5% 35% 85% with EBITDA margins of 2 or lower 3 18% 13% 5% 3Q12 4Q12 1Q13 2Q13 3Q13 <= > <= 1 > 1 <= 2 > 2 <= 3 > 3 After peaking in 2010, the median EBITDA margin of public SaaS companies has declined every quarter since. Ther trend continued in 3Q13 as the median EBITDA margin was 2.1%, down from 3. in 2Q13. TTM EBITDA Margin 26

28 THE SEG SaaS INDEX: FINANCIAL PERFORMANCE Median Operating Ratios Median Margin Performance S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) Gross Profit Margin EBITDA Margin Net Income Margin 45% 8 % of Re evenue 4 35% 3 25% 2 15% 1 5% % Ma argin Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Increased spending on sales and marketing by public SaaS companies accounted for much of the decline in median EBITDA margin. In 3Q13, 39.3% of total revenue was spent on sales & marketing, relatively unchanged from the 39.7% spent in 3Q12. R&D spending as a percent of revenue increased to 18.1% in 3Q13, compared to 16.9% in 3Q12. Median gross profit margins for public SaaS companies in 3Q13 were 70.3%, and have remained steady over the past five quarters. Stable gross profit margins demonstrate the ability of public SaaS companies to grow without disproportionally scaling infrastructure and increasing application delivery costs. With growth as their primary objective, public SaaS companies are running close to break even, with net income in 3Q13 of -4.5%. 27

29 THE SEG SaaS INDEX: MARKET MULTIPLES EV/Revenue and EV/EBITDA Multiples EV/Revenue Multiple Distribution 45.0x 40.0x 35.0x 30.0x 25.0x 20.0x0x 15.0x 10.0x 5.0x 0.0x EV/Revenue EV/EBITDA 41.5x 41.7x 40.6x 35.4x 31.5x % of Companies 5.5x 4.8x 5.3x 5.7x 6.5x 15% 11% 11% 11% 1 8% 5% 5% 5% 5% 3% 3Q12 4Q12 1Q13 2Q13 3Q13 <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x > 9.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x <= 7.0x <= 8.0x <= 9.0x Median EV/Revenue multiples for public SaaS providers reached a breathtaking 6.5x at the close of 3Q13. This marks the first time since 4Q07 that the median EV/Revenue multiples for public SaaS providers exceeded 6x. Public SaaS providers in 3Q13 continued to trade at a significant premium relative to their on-premise peers (6.5x vs. 3.0x). 45% 4 35% 3 25% 2 EV/Revenue 41% A class of Tier 1 SaaS providers is emerging within the SaaS Index, earning premium EV/Revenue multiples from investors As testament, a whopping 41% of the companies in the SEG SaaS Index are trading for 9x TTM revenue or greater These leaders demonstrate high growth and a dominant position in large markets with proven ability to replace incumbent on premise providers. Examples include Salesforce, Workday, NetSuite, etc. 3 of public SaaS providers had median EV/Revenue multiples between 5x and 9x. 28

30 THE SEG SaaS INDEX: MARKET MULTIPLES EV/Revenue Multiples vs. TTM Revenue Growth Rates EV/Revenue Multiples vs. TTM EBITDA Margins Median 25.0x 15.0x EV/Revenue20.0x 10.0x 5.0x 0.0x 0.0x 2.1x 4.0x 5.7x 8.0x 6.8x 19.9x TTM Revenue Growth There is a very strong correlation between the median TTM revenue growth rate and median EV/Revenue multiple of public SaaS companies. Public SaaS companies growing TTM revenue in excess of 5 achieved a stellar median EV/Revenue multiple of 19.9x. Select companies with TTM growth rates of 5 or higher include: FireEye (109% TTM revenue growth rate, 38.6x EV/Revenue); Service-now (84.5%, 17.6x); Workday (77.4%, 33.7x); Tableau Software (71., 22.1x); Textura Corp. (65., 23.2x); Marketo (62., 15.1x), Cornerstone OnDemand (60.2%, 17.1x); Ellie Mae (57.2%, 5.7x). 29 <= > <= 1 > 1 <= 2 > 2 <= 3 > 3 <= 4 > 4 <= 5 > 5 EV/Revenue Median 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x 14.2x 3.8x <= > <= 1 7.3x 5.1x 4.8x > 1 <= 2 TTM EBITDA Margin > 2 <= 3 > 3 There is an inverse correlation between EBITDA margins and median EV/Revenue multiples. In the current market, SaaS profitability is penalized, as investors perceive profitability to be at the expense of growth, which they deem all important. As proof, public SaaS companies with no profitability boasted a remarkable 14.2x median EV/Revenue multiple in 3Q13.

31 THE SEG SaaS INDEX BY PRODUCT CATEGORY SEG SaaS Index Category EV/Revenue Forward EV/Revenue TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 CRM & Marketing 4.7x 3.4x 2.7x 2.7x 4.0x 3.8x 2.4x 2.0x 2.8x 3.4x 33.2% 36.1% 37.2% 26.7% 27.3% 4.4% 3.1% 2.8% 2.2% 2.1% ERP & Supply Chain 5.5x 7.0x 6.6x 7.1x 9.3x 5.3x 5.7x 5.7x 6.7x 7.6x 26.3% 25.3% 31.8% 33.9% 37.7% 6.7% 7.2% 3.2% 0.2% -0.6% Vertically Focused 5.7x 4.7x 5.0x 5.0x 5.7x 4.6x 3.9x 4.2x 3.8x 5.2x % 21.6% 21.5% 22.6% 15.3% 14.6% 16.4% % Workforce Management 8.3x 10.5x 10.7x 8.5x 10.4x 7.3x 7.6x 8.0x 7.4x 8.8x 28.7% 29.1% 23.4% 43.1% 42.2% % -17.8% -16.1% -14.4% Median: 5.5x 4.8x 5.3x 5.7x 6.5x 4.9x 4.5x 5.3x 5.3x 6.4x 28.7% 26.8% 25.3% % 6.9% 5.7% 2.3% 2.1% Currently comprised of 41 public companies, The SEG SaaS Index has critical mass in four distinct SaaS product categories sufficient to analyze and compare financial performance trends. Select companies within each SaaS category are included below. See the appendix to this report for the complete list. CRM CRM & & Marketing k ERP ERP & & Supply l Chain i Vertically Focused d Workforce Management t 30

32 THE SEG SaaS INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 3Q13 TTM Revenue Growth 3Q13 YoY Change in Revenue Growth 45% 4 35% 3 25% 2 15% 1 5% (1) (2) (3) (4) CRM & Marketing ERP & Supply Chain Vertically Focused Workf orce Management CRM & Marketing ERP & Supply Chain Vertically Focused Workf orce Management 3Q13 TTM EBITDA Margin 3Q13 YoY Change EBITDA Margin 2 15% 1 5% (5%) (1) (15%) (2) 2 (2) (4) (6) (8) (10) (12) CRM & Marketing ERP & Supply Chain Vertically Focused Workf orce Management CRM & Marketing ERP & Supply Chain V ertically Focused Workforce Management 31

33 THE SEG SaaS INDEX BY PRODUCT CATEGORY: MARKET MULTIPLES 3Q13 Median EV/Revenue Multiples 3Q13 YoY Change in Median EV/Revenue Multiples 12.0x x 6 8.0x x x 1 2.0x (1) 0.0x (2) CRM & Marketing g ERP & Supply Chain n Vertically Focused Workforce Management t CRM & Marketing g ERP & Supply Chain n Vertically Focused Workforce Managemen nt Public SaaS companies comprising the Workforce Management category achieved a 10.4x median EV/Revenue multiple, followed closely by ERP & Supply Chain (9.3x). The stellar market valuations of these SaaS Workforce Management providers can be attributed to their breakneck TTM revenue growth (42.2%), albeit, with little or no profitability. Workforce management SaaS providers continued to benefit from a continuing migration from legacy, on-premise solutions to hosted SaaS solutions. Although ERP & Supply Chain TTM revenue growth was only slightly above the SaaS median, companies within this product category received premium market multiples because of the massive market potential of hosted ERP & Supply Chain solutions. 32

34 PUBLIC INTERNET COMPANY FINANCIAL AND VALUATION PERFORMANCE: THE SEG INTERNET INDEX 33

35 Public Internet Company Market Valuations by Product Category THE SEG INTERNET INDEX SEG - Internet: Median Metrics Measure 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.0x 2.2x 2.1x 2.3x 2.7x EV/EBITDA 13.5x 13.3x 13.6x 15.1x 18.4x EV/Earnings 25.1x 22.0x 21.9x 27.5x 32.5x Gross Profit Margin 64.8% 64.9% 65.6% 65.4% 65.1% EBITDA Margin 12.5% 12.7% 12.9% 12.4% 11.8% Net Income Margin 3.9% 5.3% 4.2% 2.6% 2.3% TTM Revenue Growth 24.4% % 19.3% 16.8% TTM Total Revenue ($M) $374.2 $387.3 $393.3 $405.8 $427.5 TTM EBITDA Growth 21.8% 12.3% 17.8% 10.7% 15.6% TTM Total EBITDA ($M) $39.5 $39.8 $37.5 $38.2 $43.4 Cash & Eq ($M) $122.3 $130.4 $142.9 $154.9 $165.6 Current Ratio Debt / Equity Ratio 13.8% % 20.7% 20.6% The SEG Internet Index tracks public companies that primarily offer B2C solutions over the Internet using a wide array of pricing models The SEG Internet Index is currently comprised of 92 public Internet companies* 34 * See appendix for a complete list of companies in The SEG Internet Index

36 Initial Public Offerings THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE Revenue Performance TTM Revenue Growth Rate Distribution l Revenue TTM Total $440 $430 $420 $410 $400 $390 $380 $370 $360 $350 $340 TTM Total Revenue ($M) TTM Revenue Growth Q12 4Q12 1Q13 2Q13 3Q13 TTM Reven nue Growth % of Co ompanies 25% 2 15% 1 5% 22% 13% <= > <= 1 23% > 1 <= 2 16% > 2 <= 3 9% > 3 <= 4 19% > 4 In 3Q13, the median YoY TTM revenue growth rate of public companies comprising the SEG Internet Index declined from 19.3% to 16.8%. While lower, Q3 s median Internet growth rate remains healthy, especially considering the median TTM revenue of the SEG Internet Index is $427.5M, compared to only $163.8M for the SEG SaaS Index. The SEG Internet Index had an impressive number of star performers, 19% of companies in the index reported TTM revenue growth greater than 4 in 3Q13. Conversely, 22% of companies in the SEG Internet Index posted negative TTM revenue growth, depressing the median as a whole. 35 TTM Revenue Growth

37 THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE EBITDA Margin Performance TTM EBITDA Margin Distribution Margin EBITDA 14% 12% 1 8% 6% 4% 2% EBITDA Margin TTM EBITDA Growth 25% 2 15% 1 5% TTM EBITD DA Growth % of Co ompanies 3 25% 2 15% 1 5% 2 26% 23% 11% 11% 1 3Q12 4Q12 1Q13 2Q13 3Q13 <= > <= 1 > 1 <= 2 > 2 <= 3 > 3 <= 4 > 4 Over the past five quarters, public Internet companies managed to maintain respectable EBITDA margins (11.8%), despite their declining revenue growth rates. TTM EBITDA Margin The median ~12% Internet Index EBITDA margin for 3Q13 is markedly lower than the 18.1% median EBITDA achieved in 1Q11. The median EBITDA margin decline was partly due to a greater number of Internet IPOs with stellar revenue growth, but little, if any, profitability. 46% of all public Internet companies posted EBITDA margins of 1 or lower. 36

38 THE SEG INTERNET INDEX: FINANCIAL PERFORMANCE Median Operating Ratios Median Margin Performance S&M (% of Revenue) R&D (% of Revenue) G&A (% of Revenue) Gross Profit Margin EBITDA Margin Net Income Margin 25% 7 % of Re evenue 2 15% 1 5% % Ma argin Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 In 3Q13, companies comprising the SEG Internet Index spent 23.2% of total revenue on sales and marketing (S&M), 11.5% on research development (R&D), and 11.3% on general and administrative. The median R&D spend as a percent of total revenue was the lowest among our three tracking indices. Despite TTM revenue growth declines, public Internet companies kept their cost structures in line, resulting in a median TTM EBITDA margin of 11.8% in 3Q13. 37

39 THE SEG INTERNET INDEX: MARKET MULTIPLES Median EV/Revenue and EV/EBITDA Multiples EV/Revenue Multiple Distribution 20.0x 18.0x 16.0x 14.0x 12.0x 10.0x0x 8.0x 6.0x 4.0x 2.0x 00x 0.0x EV/Revenue 13.5x 13.3x 13.6x EV/EBITDA 15.1x 2.0x 2.2x 2.1x 2.3x 2.7x 18.4x 3Q12 4Q12 1Q13 2Q13 3Q13 In 3Q13, the median EV/Revenue multiple of the SEG Internet Index ticked up slightly to 2.7x. The EV/Revenue market multiples of public internet providers vary dramatically, with the largest concentration at 2.0x or below (4 of our Internet Index). However, a significant minority mostly the headline grabbers are valued highly by the public markets. 27% of public Internet companies closed 3Q13 with EV/Revenue multiples of 6.0x or higher. % of Co ompanies 25% 2 15% 1 5% 17% 23% 14% 7% 8% 3% 5% 3% 4% 15% <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x > 6.0x > 7.0x > 8.0x >= 9.0x <= 2.0x <= 3.0x <= 4.0x <= 5.0x <= 6.0x <= 7.0x <= 8.0x <= 9.0x EV/Revenue Among the Internet companies boosting the highest EV/Revenue market multiples were a large number of relatively recent IPO s that are capturing a significant share of online advertising dollars; Examples include LinkedIn (20.3x), Zillow (19.5x), Qihoo (18.3x), and Yelp (18.2x). 38

40 THE SEG INTERNET INDEX: MARKET MULTIPLES EV/Revenue Multiples vs. TTM Revenue Growth Rates EV/Revenue Multiples vs. TTM EBITDA Margins Median EV/Revenue 10.0x 9.1x 8.0x 7.5x 9.0x 7.0x 8.0x 6.0x 7.0x 4.6x 6.0x 5.3x 5.0x 4.9x 5.0x 4.0x 4.0x 3.3x 3.0x 2.7x 3.0x 1.7x 2.0x 1.6x 1.7x 2.0x 2.0x 1.2x 1.0x 1.0x 00x 0.0x <= > <= 1 > 1 <= 2 > 2 <= 3 TTM Revenue Growth > 3 <= 4 > 4 Median EV/Revenue 00x 0.0x <= > <= 1 > 1 <= 2 > 2 <= 3 TTM EBITDA Margin Public Internet company valuations are being driven by TTM With few exceptions, and in stark contrast to SaaS revenue growth, with dramatic differences between new, companies, many of the most profitable public Internet rapidly growing social and ad-tech providers and their slower companies also reported stellar TTM revenue growth. Among growing incumbent counterparts (e.g., Facebook vs. Yahoo). them were YY, Inc., Tree.com, Trulia, Youku, LinkedIn and Zillow. Public Internet companies with TTM revenue growth of 4 or higher were rewarded with median EV/Revenue multiples markedly greater than their slower growing peers. > 3 <= 4 > 4 Unlike The SEG SaaS Index, where TTM EBITDA margins bore little relationship to median EV/Revenue multiples, investors in public Internet companies kept a keen eye on margins, and rewarded strong performers with significantly higher market multiples. 39

41 THE SEG INTERNET INDEX BY PRODUCT CATEGORY SEG Internet Index Category EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Ad Tech & Lead Generation 1.8x 2.2x 2.0x 2.5x 2.5x 13.3x 12.0x 14.9x 14.9x 22.1x 33.4% 31.9% 28.8% 26.8% 17.9% 12.5% 12.6% 12.9% 12.6% 11.3% Commerce 0.9x 1.2x 0.9x 0.9x 1.1x 14.9x 13.6x 10.5x 15.1x 15.6x 14.2% 15.1% 17.5% 17.7% 15.4% 8.4% 8.4% 7.6% 7.5% 6.7% Content & Media 1.3x 1.4x 1.6x 2.3x 2.7x 10.8x 10.9x 15.4x 13.8x 20.8x 12.3% 10.5% 12.6% 12.1% 14.1% 14.1% 14.1% 14.8% 15.5% 15.9% Gaming 21x 2.1x 24x 2.4x 27x 2.7x 27x 2.7x 28x 2.8x 34x 3.4x 43x 4.3x 58x 5.8x 59x 5.9x 77x 7.7x % 21.9% 21.9% 19.8% 43.4% 4% 38.6% 36.3% 3% 38.6% 35.4% Infrastructure 1.1x 1.0x 1.7x 1.6x 1.4x 14.2x 10.4x 11.9x 13.6x 14.3x 11.8% 10.9% 9.2% 8.8% 1.7% 8.1% 7.5% % 7.1% Services 3.1x 3.3x 3.5x 3.4x 4.3x 13.3x 15.1x 14.2x 19.7x 23.9x 46.7% 32.7% 41.8% 40.4% 38.1% 9.6% 9.4% 9.6% 7.1% 5.6% Social 12.1x 9.0x 9.3x 10.0x 14.0x 34.3x 39.6x 38.9x 37.1x 38.6x 57.3% 50.9% 49.3% 47.2% 41.4% 8.2% 12.9% 14.7% 16.8% 17. Travel 2.4x 2.7x 2.8x 3.4x 4.6x 13.5x 15.7x 16.2x 18.2x 21.2x 21.2% 20.2% 19.3% % 21.9% 19.6% 18.1% 17.9% 16.8% Median 2.0x 2.2x 2.1x 2.3x 2.7x 13.5x 13.3x 13.6x 15.1x 18.4x 24.4% % 19.3% 16.8% 12.5% 12.7% 12.9% 12.4% 11.8% The SEG Internet Index is segmented into eight product categories. Select companies within each Internet product category are included below. See the appendix for the complete list of companies within each product category. Ad Ad Tech & Lead Gen Commerce Content & Media Gaming Infrastructure Services Social Travel 40

42 THE SEG INTERNET INDEX BY PRODUCT CATEGORY: FINANCIAL PERFORMANCE 3Q13 TTM Revenue Growth 3Q13 YoY Change in Revenue Growth % (2) 4 35% (4) 3 25% (6) 2 15% (8) 1 5% (10) Ad Tech & Lead Generation Commerce Content & Media Gaming Inf rastructuree Servicess Sociall Travel Ad Tech & Lead Generation Commer rce Content & Media Gaming Inf rastructure Servic es Social Travel 3Q13 TTM EBITDA Margin 3Q13 YoY Change EBITDA Margin 4 35% 3 25% 2 15% 1 5% (2) (4) (6) Ad Tech & Lead Generation Commerce Content & Media Gaming Inf rastructure Services Social Travel Ad Tech & Lead Generation Commerce Content & Media Gaming Inf rastructure Services Social Travel 41

43 THE SEG INTERNET INDEX BY PRODUCT CATEGORY: MARKET MULTIPLES 3Q13 Median EV/Revenue Multiples 3Q13 YoY Change in Median EV/Revenue Multiples 16.0x 14.0x 12.0x 10.0x 8.0x x 4.0x 2.0x 0.0x Ad Tech & Lead Generation Commerce Content & Media Gaming Infrastructure Services Social Travel Ad Tech & Lead Generation Commerce Content & Media Gaming Inf rastructure Services Social Travel Public Internet Companies comprising the social product category closed Q3 with the highest median EV/Revenue multiple among the eight Internet categories we track. The 14.0x median market valuation was 204% higher than the next closest product category, Travel (4.6x). Social solutions Facebook, LinkedIn, Yelp, etc., continued to expand their online footprints, and investors rewarded them accordingly. Social Market Multiples also reflected significant YoY EBITDA margin improvement, as category members demonstrated a greater ability to monetize their large user bases with advertising, subscriptions, more mobile offerings and other value added services. The Commerce product category lagged all other product categories, with a 1.1x EV/Revenue multiple, a tepid TTM revenue growth of 15.4%, and a lackluster 6.7% EBITDA margin. Amazon, one of the most notable commerce companies, is aggressively trying to diversify its content offerings and expand its hardware offerings as a way of differentiating from competitors and driving more spend through its platform. 42

44 SOFTWARE INDUSTRY M&A MARKET UPDATE 43

45 SOFTWARE/SaaS M&A DEAL VOLUME AND SPENDING U.S. Software Mergers & Acquisitions Activity Median On-Premise Software EV/Revenue Exit Multiples Number of Deals $23.1 $ $ $17.9 $18.7 $16.3 $12.7 $13.1 $15.8 $15.8 $12.6 $12.3 $9.5 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 $25 $20 $15 $10 $5 $0 Value (BIllions) TTM Averag ge Deal Value (Millio ons) $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $40 $42 $41 $41 $42 $37 $36 $39 $36 $37 $31 $33 $34 3Q1 10 4Q1 10 1Q1 11 2Q1 11 3Q1 11 4Q1 11 1Q1 12 2Q1 12 3Q1 12 4Q1 12 1Q1 13 2Q1 13 3Q1 13 *3Q13 Projected Deals Value Software M&A deal volume in Q3 hovered, once again, at 400 transactions, a level that s historically consistent with an active M&A market. Software M&A spending aggregated $16.3 billion in 3Q13, slightly lower than 2Q13 s $18.7 billion, but higher than the preceeding three calendar quarters. There were nine mega deals (EV > $500M) in 3Q13 across all delivery models (On-premise/SaaS/Internet), one more than in the prior quarter, and a marked increase from 1Q13 s single large deal. Notable mega deals in the third quarter included: Vitera Healthcare Solutions acquisition of Greenway Medical Technologies ($632M EV, 4.7x EV/Revenue multiple); Vista Equity Partner s acquisition of The Active Network ($942M, 2.1x); Davis+Henderson s acquisition of Harland Financial Solutions ($1.6B, 5.8x); Cisco s acquisition of Sourcefire ($2.2B, 8.9x); and KKR s acquisition of Mitchell International. The average software M&A purchase price rose slightly in 3Q13 to $37M, after retreating the prior three quarters. 44

46 SOFTWARE M&A EXIT MULTIPLES Median Exit Multiples Median EV/Revenue Exit Multiple Distribution EV/Revenue EV/EBITDA 14.0x 12.7x % 11.8x 12.0x 11.6x 11.2x 11.5x 23.9% x 8.0x 6.0x 4.0x 2.3x 2.3x 1.8x 1.6x 1.8x 2.0x 0.0x 3Q12 4Q12 1Q13 2Q13 3Q13 % of Deals 3Q13 TTM % <= 1.0x > 1.0x & > 2.0x & > 3.0x & <= x <= x <= x TTM Revenue Exit Multiple Bins 16.3% > 4.0x TTM revenue exit multiples closed 3Q13 at 2.3x, a marked increase over Q2 s 1.8x multiple and the highest since 3Q12 s 2.3x multiple TTM EBITDA exit multiples remained relatively steady in 3Q13, closing at 11.5x. On a TTM basis, 52% of all on-premise software targets were e acquired for less than 2.0x TTM revenues e in 3Q13. 3 Targets with 3.0x or higher exit multiples, primarily focused on high-growth software categories, such as big data, network infrastructure and security. Among the more noteworthy on-premise acquisitions in 3Q13: Cisco s acquisition of Sourcefire ($2.2B, 8.9x rev.), a provider of next generation cyber security applications 45

47 SOFTWARE M&A: BY OWNERSHIP STRUCTURE AND SIZE by Ownership Structure by Size Public Sellers 1.8x Median Multiple 33% 67% Private Sellers 2.0x Median Multiple Private Sellers 1.2x Median Multiple 37% 63% Public Sellers 2.4x Median Multiple In Q3, as in quarters past, large (greater than $200 million in revenue), public buyers dug deeper. Public buyers in 3Q13 paid a median 2.4x TTM revenue for their targets in 3Q13, compared to a median of 1.2x paid by private buyers. Public buyers with revenue greater than $200 million paid a median 2.7x TTM revenue for their targets in 3Q13, compared to only 1.5x paid by smaller public buyers. Whether public or private, buyers with revenue greater than $200 million paid the highest multiples for a target with less than $20 million revenue over the past twelve months. 46

48 SOFTWARE M&A: BY VERTICAL AND HORIZONTAL MARKETS Horizontal & Vertical M&A Volume Horizontal & Vertical M&A Median EV/Revenue Exit Multiples % 58% 67% 64% 67% 37% 42% 33% 36% 33% 3Q12 4Q12 1Q13 2Q13 3Q13 Horizontal Vertical 3.0x 2.7x 2.2x 2.0x 1.9x 2.0x 1.8x 1.6x 1.4x 1.3x 3Q12 4Q12 1Q13 2Q13 3Q13 Vertical Horizontal Horizontal software providers garnered the lion s share of M&A transactions in 3Q13, as they have for the past five quarters. TTM revenue exit multiples for horizontal software companies jumped from 1.6x in 2Q13 to 2.0x in 3Q13, after having fallen in each of the previous three quarters. Noteworthy horizontal deals in Q3 included Kofax s acquisition of big data integration player Kapow Software for $47.5 million (3.0x revenue), and Cisco acquisition of cyber security software provider Sourcefire for $2.2 billion (8.9x revenue). The median TTM revenue exit multiple for vertical software providers improved significantly over the past two quarters, closing 3Q13 at 2.7x. Select Q3 vertical deals included IRESS Limited s acquisition of financial services software provider Avelo for $320.4 million (3.8x revenue); Sepura PLC s acquisition of public systems command and control software provider Portalify for $9.3 million (7.0x revenue); and Yotta Limited s acquisition of public sector software provider Mayrise for $9.1 million (3.1x revenue) 47

49 SOFTWARE M&A BY PRODUCT CATEGORY Vert ticals Billing & Service Provisioning 0.3% BI, Risk & Compliance 5.3% Accounting & Finance 1.6% Retail 1.3% Real Estate 2.2% Public Sector 1.9% Other Verticals 6.3% Non Profit 0.9% Manufacturing 4.4% Insurance 0.6% Healthcare 6.3% Utilities 0.9% Financial Services 5.3% Education 1.9% Automotive 1.3% Content & Document Mgmt 2.5% CRM, Marketing & Sales 2.5% Mobile 20.7% Data Mgmt & Integration 2.8% Dev. Tools & IT Asset Mgmt 2.2% ecommerce 0.3% Engineering, PLM & CAD 3.8% Middleware 0.3% ERP 1.9% Entertainment 3.1% HR & Workforce Mgmt 1.9% Messaging, Conferencing & Communications 3.4% Multimedia, Graphics & Communications 2.2% Network Performance Mgmt 16% 1.6% Security 4.4% Systems Mgmt 2.5% Supply Chain Mgmt & Logistics 3.4% The Mobile product category accounted for 20.7% of all software M&A transactions in the third quarter, making it the most active M&A product category. Other active M&A categories in the third quarter included Healthcare (6.3%), Financial Services (5.3%) and Security (4.4%). BI, Risk & Compliance accounted for 5.3% of deals in 3Q13, up from 2.5% in 2Q13, 2.3% in 1Q13 and 2.5% for all of 2012 The heightened deal activity was largely attributable to big data needs and continued demand for advanced real time analytics (ie: Software AG s acquisition of Jackbe, Adello Group s acquisition of Hstreaming, Nice Systems acquisition of Causata, FoundationDB s acquisition of Akiban Technologies) 48

50 SOFTWARE M&A BY PRODUCT CATEGORY Median EV/Revenue Exit Multiples by Software Product Category 3.0x 2.7x 2.4x 23x 2.3x 22x 2.2x 1.8x 1.8x 1.5x 1.2x Data Mgmt & Integration Security Healthcare BI, Risk & Compliance Other Verticals Manufacturing S upply Chain Mgm mt & Logistics Education Fina ncial Services Among the 32 on-premise software product categories we track, nine had both sufficient deal activity and deal data to ascertain a TTM revenue multiple in 3Q13. Among the nine product categories, Data Mgmt. & Integration garnered the highest median TTM revenue multiple (3.0x) in Q3. Buyers in this product category are paying up for best-of-breed solutions that can improve analysis and management of big data. Examples include Informatica s 4Q12 acquisition of Heiler Software ($85 million, 3.7x revenue), and Kofax s 3Q13 acquisition of Kapow Software ($48 million, 3.0x revenue) The Security software category posted a strong 2.7x median EV/Revenue exit multiple in 3Q13. Select security deals included Cisco s acquisition of Sourcefire in Q3 ($2.2 billion, 8.9x revenue); Tyco s 2Q13 s acquisition of Exacq Technologies ($150 million, 2.7x revenue); and McAfee s acquisition of Stonesoft ($375 million, 7.0x revenue) in 2Q13. 49

51 SaaS M&A: DEAL VOLUME AND EXIT MULTIPLES SaaS M&A Volume Median SaaS EV/Revenue Exit Multiples SaaS M&A Deals SaaS as % of Software # of SaaS M&A Deals % 2 15% 1 5% ls as a % of Total M&A Deals SaaS M&A Deal Software M 4.6x 4.1x 4.0x 4.0x 3.9x 3Q12 4Q12 1Q13 2Q13 3Q13 There were 97 SaaS M&A transactions in 3Q13. Year to date, there have been 287 SaaS M&A transactions, suggesting 2013 s year end tally should far outpace 2012 s record breaking total of 311 and SEG s 2013 projection of 344 by some 40 deals. The median TTM EV/Revenue exit multiple of SaaS transactions rose sharply in 3Q13 after holding steady over the past year. The surge was partly due to a number of lower multiple transactions in 3Q12 falling out of the TTM analysis. The median SaaS exit multiple was 10 greater than the median on-premise exit multiple in 3Q13 (4.6x vs 2.3x). 50

52 SaaS M&A BY PRODUCT CATEGORY Accounting & Finance 4% Retail 4% Billing & Service Provisioning 1% BI, Risk & Compliance 3% Content & Document Mgmt 4% CRM, Marketing & Sales 13% CRM, Marketing & Sales was the most active SaaS product category, accounting for 13. of all M&A transactions in the third quarter. Verticals Real Estate 4% Other Verticals 5% Manufacturing 2% Insurance 1% Healthcare 7% Financial Services 2% Education 3% Automotive 7% Supply Chain Mgmt t& Logistics 6% Systems Mgmt 7% Security 1% Data Mgmt & Integration 1% Dev. Tools & IT Asset Mgmt 1% ecommerce 3% Engineering, PLM & CAD 3% ERP 4% HR & Workforce Mgmt 2% Messaging, Conferencing & Communications 3% Multimedia, Graphics & Communications 6% Network Performance Mgmt 1% Buyers are seeking targets that can help garner a greater share of IT capital in spending on online marketing technology. According to Gartner, by 2017 the CMO will purchase more IT than the CIO. After two years of comprising almost 2 of all SaaS transactions, the HR & Workforce Mgmt product category had its third consecutive lackluster quarter, claiming only 2% of SaaS transactions in 3Q13. After a three-year period of consolidation by the large HR software providers, the M&A window for many smaller HR SaaS providers is rapidly closing. The Systems Management (7%) and Supply Chain (6%) product categories also showed strength in 3Q13. Both categories are benefiting from wider adoption of SaaS deployed solutions, which should persist a while longer, as large public legacy vendors continue to play catch-up. 51

53 3Q13 SaaS M&A TRANSACTIONS 52 Ente rpr is e TTM Rev. Date Buyer Se ller Value (mm) (mm) EV/Rev 09/27/2013 Columbus A/S (CPSE:COLUM) Columbus Norw ay AS /24/2013 Softw are Paradigms International, Inc. Shiloh Technologies, LLC /23/2013 Vitera Healthcare Solutions, LLC Greenw ay Medical Technologies, Inc. $632.4 $ x 09/20/2013 AmeriCommerce, L.P. Americart LLC /20/2013 Sucuri Inc. UnmaskParasites /20/2013 Xchanging Inc. MarketMaker4* $22.0 $ x 09/20/2013 Blue-Grace Logistics LLC U.S. Transportation Consultants, Inc /19/2013 Mindshare Technologies, Inc. Empathica, Inc /18/2013 Amber Road, Inc. EasyCargo Inc /17/2013 BasWare Oyj (HLSE:BAS1V) BravoSolution SpA /17/2013 Solera Holdings Inc. (NYSE:SLH) Servicios Informaticos Serinfo S.A /16/2013 Stratatel Ltd. (ASX:STE) JCurve Solutions Pty Ltd $ /16/2013 Scivantage, Inc. Portfolio Director, Inc /16/2013 Wow zatv LLC Camfoo GmbH /16/2013 efolder, Inc. Anchor Box LLC /16/2013 PCSYS A/S IBS Systems A/S /12/2013 Plan.Net Campaign Hamburg GmbH & Co. KG Webfact GmbH /10/2013 PTC Inc. (NasdaqGS:PMTC) NetIDEAS, Inc /10/2013 Origo Netw orks, Inc. Standing Cloud, Inc /09/2013 Wolters Kluw er Corporate Legal Services CitizenHaw k, Inc /09/2013 Desire2Learn Incorporated Know illage, Inc /09/2013 ERP Guru, Inc. EnabledSuccess Inc /09/2013 Confluence Technologies, Inc. Data Agent LLC /06/2013 Enghouse Systems Limited (TSX:ESL) Safeharbor Know ledge Solutions /05/2013 Summit Garnishee Solutions (Pty) Limited Business Connexion Group, Q LINK $ /05/2013 Charles Taylor plc (LSE:CTR) Charles Taylor Know ledgecenter $11.1 $ x 09/05/2013 JAK, Ltd. LabMentors Corp. $ /05/2013 FactSet Research Systems Inc. (NYSE:FDS) Revere Data LLC $ /04/2013 Answ ers Corporation Easy2 Technologies, Inc /03/2013 To The New ThoughtBuzz Pte Ltd $ /03/2013 Eventbrite, Inc. South Interactive S.A /03/2013 Arbor Netw orks, Inc. Packetloop Pty Limited /03/2013 Cultura Technologies Inc. E-Markets, Inc /30/2013 Digium, Inc. Digium Cloud Services, LLC /30/2013 SciQuest, Inc. (NasdaqGS:SQI) CombineNet, Inc. $43.1 $ x 3.6x *Revenue estimate

54 3Q13 SaaS M&A TRANSACTIONS (CON T) Ente rpr is e TTM Rev. Date Buyer Se ller Value (mm) (mm) EV/Rev 08/28/2013 McKinsey & Company, Inc. Lixto Softw are GmbH /28/ eqtickets (Pty) Ltd $ /27/2013 Fax87.com Wired Fax, Inc /26/2013 Authenticom, Inc. RyanTech, Inc., Auto.Tech. Portfolio /23/2013 Vista Equity Partners Omnitracs, Inc. $ /19/2013 Verisae, Inc. FM Solutions LLC /19/2013 The Reynolds and Reynolds Company imakenew s, Inc /19/2013 Altisource Portfolio Solutions S.A. (NasdaqGS:ASPS) Equator, LLC $ /18/2013 Darw in Strategic Limited, Investment Arm FTG Finance Services Limited /16/2013 Open Text Corporation (NasdaqGS:OTEX) Cordys B.V. $ /16/2013 Welsh, Carson, Anderson & Stow e Alert Logic, Inc /15/2013 LookSmart, Ltd. (NasdaqCM:LOOK) Syncapse Corp., Key Assets $ /15/2013 International Business Machines Corporation (NYSE:IBM) Trusteer, Inc /12/2013 Xtari, LLC RhinoSEO /10/2013 Transport I.T. Solutions Private Limited Four Soft USA, Inc. $ /08/2013 McGregor BFA (Pty) Ltd. I-Net Bridge (Pty) Ltd. $ /08/2013 Proofpoint, Inc. (NasdaqGM:PFPT) Armorize Technologies Inc. $ /07/2013 LexisNexis Risk Solutions, Inc. WorldCompliance, Inc /07/2013 ALL-STATE International, Inc. Vizibility Inc /07/2013 MicroD, Inc. Internet Databases Corporation /06/2013 Intuit Inc. (NasdaqGS:INTU) GoodApril, Inc. $ /06/2013 Market Track, LLC Dynamite Data LLC /06/2013 3D Systems Corp. (NYSE:DDD) VisPow er Technology, Inc /06/2013 Interactive Leisure Systems, Inc. (OTCPK:IALS) Travel Time Technologies, Inc /02/2013 Angie's List, Inc. (NasdaqGM:ANGI) SmartHabitat, Inc. $ /01/ Tracer Management Systems Ltd /31/2013 HgCapital; HgCapital Trust plc (LSE:HGT) e-conomic international a/s $ /31/2013 Kaplan, Inc. Grockit Inc., Test Prep Assets /31/2013 HealthTech Solutions Group, LLC Gaffey and Associates, Inc /31/ Primal Parking Ltd /31/2013 Guar Global Limited (OTCPK:GGBL) Guar Global Ltd /28/2013 Virtual Atmosphere Ltd. YCD Atmosphere $ /24/2013 Cloud Bees, Inc. FoxWeave /24/2013 HotelPlanner.com Meetings.com /24/2013 LightSpeed Retail Inc. MerchantOS

55 3Q13 SaaS M&A TRANSACTIONS (CON T) Date Buyer Se ller Ente rpr is e Value (mm) TTM Rev. (mm) 07/23/2013 To The New Techsailor Group Pte Ltd /23/2013 Aimia Inc. (TSX:AIM) Smart Button Associates, Inc. $ /19/2013 Proofpoint, Inc. (NasdaqGM:PFPT) Abaca Technology Corporation $ /18/2013 Ipreo Holdings LLC Discovery Data /17/2013 Cineplex Inc. (TSX:CGX) Cineplex Digital Netw orks $112.3 $ x 07/16/2013 Concur Technologies, Inc. (NasdaqGS:CNQR) GDSX, Ltd /15/2013 Intuit Singapore Pte. Limited Fifo Pty Ltd /15/2013 Pin Payments Spreedly, Inc., US Tech. Assets /12/2013 Panasonic Europe Ltd. Cameramanager B.V /11/2013 Imprezzio Inc. Racing Snail, Inc /11/2013 EMC Corporation (NYSE:EMC) Scaleio, Inc /10/2013 Boost Holding AG Xsmart AG /10/2013 Garantia Data Ltd. MyRedis /10/ SaaSMAX Corp. $ /09/2013 Tom's Planner N.V. Gantto Inc /09/2013 Idera, Inc. CopperEgg Corporation /08/2013 Bandzoogle Inc. Onesheet, LLC /07/2013 PropertyIQ NZ Ltd Terralink International Limited /04/2013 All for One Steeb AG (XTRA:A1OS) WEBMAXX GmbH /03/2013 Scottish Equity Partners LLP; Investec plc (LSE:INVP) Purepromoter Limited /03/2013 Yardi Systems, Inc. Pierce-Eislen, Inc /02/2013 ABS Capital Partners; Persimmon Capital Partners IgnitionOne, Inc /02/2013 Thistle Insurance Services Limited Risk Management Support Ltd /01/2013 ServiceNow, Inc. (NYSE:NOW) Mirror42 B.V /01/2013 ClearSlide, Inc. Crunched /01/2013 Thoma Bravo, LLC Digital Insight Corporation $1, x 07/01/2013 Mentorix ApS Scoll Methods Ltd., Training Division EV/Rev 54

56 INTERNET M&A: DEAL VOLUME AND EXIT MULTIPLES Internet M&A Volume Median Internet EV/Revenue Exit Multiples Numbe er of Deals x 1.9x 1.9x 1.9x 1.9x 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 In 3Q13, there were 231 Internet M&A transactions, the second consecutive quarter of marked improvement over 1Q13, but still well below 2012 deal levels. Internet M&A remained highly volatile, in large part due to shifting marketing strategies, evolving business models, and constant changes in the competitive landscape. In early 2012, a large number of Internet targets exited amidst the hype of the pending Facebook IPO (5/2012), creating a spike in M&A volume. After the Facebook IPO debacle, Internet t investors and buyers alike became more cautious and circumspect, and M&A volume declined markedly, plunging to 185 transactions in 1Q13, down from 273 transactions in 2Q12. Internet median TTM EV/Revenue exit multiples have held steady, finishing 3Q13 at 1.9x. This is an M&A world of haves and have nots, with wide disparities in exit multiples. 55

57 INTERNET M&A: BY PRODUCT CATEGORY TTM M&A Volume by Product Category M&A Volume by Quarter 8.2% 16.9% 3.5% 36.8% Ad Tech & Lead Gen Commerce Content & Media Gaming Infrastructure Category 3Q Q Q Q Q 2013 Ad-Tech & Lead Gen Commerce Content & Media Gaming If Infrastructure t Social Tech Total Social Tech 15.6% 19. Internet ad-tech continued to remain to most active internet M&A category in 3Q13, accounting for over 1/3 of all sector transactions Following a wave of social technology deals in 2011/2012, social tech acquisition activity has significantly tapered off, closing each of the last two quarters at 19 acquisitions. After a respectable 2Q12 showing with 25 M&A transactions, the Internet Gaming M&A has been largely dormant over the past four quarters, averaging less than ten transactions per quarter. The product category has been decimated by the emergence of mobile gaming, (ie. Zynga s recent public stock market performance). 56

58 APPENDIX 57

59 THE SEG SOFTWARE INDEX COMPANIES Company Ticker Product Category 58 Amdocs Limited DOX Billing & Service Management AsiaInfo Holdings, Inc. ASIA Billing & Service Management CSG Systems International, Inc. CSGS Billing & Service Management Evolving Systems, Inc. EVOL Billing & Service Management MINDCTI C.T.I. Ltd. MNDO Billing & Service Management NeuStar, Inc NSR Billing & Service Management Redknee Solutions TSX:RKN Billing & Service Management Synchronoss Technologies, Inc. SNCR Billing & Service Management Actuate Corporation BIRT Business Intelligence MicroStrategy Incorporated MSTR Business Intelligence Pegasystems Inc. PEGA Business Intelligence Progress Software Corporation PRGS Business Intelligence PROS Holdings PRO Business Intelligence Qlik Technologies QLIK Business Intelligence Teradata NYSE:TDC Business Intelligence Verisk VRSK Business Intelligence Actuate Corporation BIRT Development Platforms Adobe Systems Incorporated ADBE Development Platforms BSQUARE Corporation BSQR Development Platforms Compuware Corporation CPWR Development Platforms Magic Software Enterprises Ltd. MGIC Development Platforms Microsoft Corporation MSFT Development Platforms Oracle Corporation ORCL Development Platforms Progress Software Corporation PRGS Development Platforms Red Hat, Inc. RHT Development Platforms Software AG XTRA:SOW Development Platforms ANSYS, Inc. ANSS Engineering & PLM Autodesk, Inc. ADSK Engineering & PLM Cadence Design Systems, Inc CDNS Engineering & PLM Cimatron Ltd. CIMT Engineering & PLM Dassault Systèmes DSY Engineering & PLM GSE Systems Inc. GVP Engineering & PLM Mentor Graphics Corp MENT Engineering & PLM Parametric Technology Corporation PMTC Engineering & PLM PDF Solutions Inc PDFS Engineering & PLM Stratasys, Inc. SSYS Engineering & PLM Synopsys Inc SNPS Engineering & PLM

60 THE SEG SOFTWARE INDEX COMPANIES (CON T) Company Ticker Product Category 59 American Software, Inc. AMSW.A Enterprise Resource Planning Oracle Corporation ORCL Enterprise Resource Planning QAD Inc. QADA Enterprise Resource Planning Sage Group plc LSE:SGE Enterprise Resource Planning SAP AG SAP Enterprise Resource Planning Unit 4 ENXTAM:U Enterprise Resource Planning ACI Worldwide, Inc. ACIW Financial & Accounting Bottomline Technologies EPAY Financial & Accounting DST Systems, Inc. DST Financial & Accounting Evertec EVTC Financial & Accounting Fair Isaac Corporation FICO Financial & Accounting Fiserv FISV Financial & Accounting Intuit Inc INTU Financial & Accounting Model N, Inc MODN Financial & Accounting NetSol Technologies Inc. KASE:NET Financial & Accounting Sage Group plc LSE:SGE Financial & Accounting Qiwi plc QIWI Financial & Accounting Activision Blizzard ATVI Gaming Electronic Arts Inc. EA Gaming GameLoft SA ENXTPA:G Gaming Konami Corporation TSE: 9766 Gaming Take-Two Interactive TTWO Gaming Ubisoft Entertainment ENXTPA:U Gaming Accretive Health AH Healthcare Allscripts Healthcare Solutions Inc. MDRX Healthcare Cerner Corporation CERN Healthcare Computer Programs and Sys, Inc. CPSI Healthcare Greenway Medical Technologies, Inc GWAY Healthcare MedAssets MDAS Healthcare Merge Healthcare MRGE Healthcare Omnicell, Inc. OMCL Healthcare Quality Systems, Inc. QSII Healthcare Hewlett Packard HPQ IT Conglomerates IBM IBM IT Conglomerates Microsoft Corporation MSFT IT Conglomerates Oracle Corporation ORCL IT Conglomerates SAP AG SAP IT Conglomerates

61 THE SEG SOFTWARE INDEX COMPANIES (CON T) Company Ticker Product Category 60 Bango PLC BGO Mobile Solutions/Content Glu Mobile, Inc. GLUU Mobile Solutions/Content Gree TSE:3632 Mobile Solutions/Content Millennial Media Inc MM Mobile Solutions/Content Myriad Group AG MYRN Mobile Solutions/Content t t NQ Mobile Inc. NQ Mobile Solutions/Content Opera OB:OPERA Mobile Solutions/Content Qihoo 360 Technology Co. Ltd QIHU Mobile Solutions/Content Pandora Media P Mobile Solutions/Content Synchronoss Technologies, Inc. SNCR Mobile Solutions/Content Tangoe, Inc. TNGO Mobile Solutions/Content TeleCommunication Systems TSYS Mobile Solutions/Content TeleNav TNAV Mobile Solutions/Content Velti Plc VELT Mobile Solutions/Content Zynga, Inc ZNGA Mobile Solutions/Content Allot Communications Ltd. ALLT Networking & Network Performance Aruba Networks, Inc. ARUN Networking & Network Performance Brocade Communications Systems, BRCD Networking & Network Performance Cisco Systems, Inc. CSCO Networking & Network Performance Compuware Corporation CPWR Networking & Network Performance Cyan, Inc. CYNI Networking & Network Performance F5 Networks, Inc. FFIV Networking & Network Performance Gigamon, LLC GIMO Networking & Network Performance Juniper Networks, Inc. JNPR Networking & Network Performance Radware Ltd. RDWR Networking & Network Performance Riverbed Technology, Inc. RVBD Networking & Network Performance AVG Technologies N.V. AVG Security Check Point Software Tech Ltd. CHKP Security Commtouch Software Ltd. CTCH Security Fortinet Inc. FTNT Security Guidance Software, Inc. GUID Security Imperva IMPV Security Palo Alto Networks, Inc PANW Security Proofpoint, Inc. PFPT Security Sourcefire, Inc. FIRE Security Symantec Corporation SYMC Security Trend Micro TSE:4704 Secuity VASCO Data Security International VDSI Security

62 THE SEG SOFTWARE INDEX COMPANIES (CON T) Company Ticker Product Category 61 Brocade Communications Systems, BRCD Storage, Data Management & Integration CA, Inc. CA Storage, Data Management & Integration Cisco Systems, Inc. CSCO Storage, Data Management & Integration CommVault Systems, Inc. CVLT Storage, Data Management & Integration EMC EMC Storage, Data Management & Integration FalconStor Software, Inc. FALC Storage, Data Management & Integration IBM IBM Storage, Data Management & Integration Informatica Corporation INFA Storage, Data Management & Integration Microsoft Corporation MSFT Storage, Data Management & Integration NetApp, Inc. NTAP Storage, Data Management & Integration Oracle Corporation ORCL Storage, Data Management & Integration Splunk, Inc. SPLK Storage, Data Management & Integration TIBCO Software Inc. TIBX Storage, Data Management & Integration American Software, Inc. AMSW.A Supply Chain Management & Logistics Aspen Technology, Inc. AZPN Supply Chain Management & Logistics Manhattan Associates, Inc. MANH Supply Chain Management & Logistics The Descartes Systems Group Inc. TSX:DSG Supply Chain Management & Logistics Unit 4 ENXTAM:U Supply Chain Management & Logistics CA Technologies CA Systems Management Citrix Systems, Inc. CTXS Systems Management Netscout Systems, Inc. NTCT Systems Management Red Hat, Inc. RHT Systems Management SolarWinds, Inc. SWI Systems Management VMWare, Inc. VMW Systems Management Advent Software, Inc. ADVS Vertical - Finance Broadridge Financial BR Vertical - Finance Fidessa LSE:FDSA Vertical - Finance Jack Henry & Associates, Inc. JKHY Vertical - Finance MSCI, Inc. MSCI Vertical - Finance SS&C Corporation SSNC Vertical - Finance Blackbaud, Inc. BLKB Vertical - Other Constellation TSX:CSU Vertical - Other EPIQ Systems, Inc. EPIQ Vertical - Other Guidewire Software, Inc. GWRE Vertical - Other Micros Systems MCRS Vertical - Other PROS Holdings PRO Vertical - Other Sapiens International SPNS Vertical - Other Silver Spring Networks, Inc. SSNI Vertical - Other TheActiveNetwork Network, Inc. ACTV Vertical - Other Tyler Technologies, Inc. TYL Vertical - Other

63 THE SEG SaaS INDEX COMPANIES Company Ticker Product Category 62 Bazaarvoice, Inc BV CRM & Marketing Constant Contact CTCT CRM & Marketing Cvent NYSE:CVT CRM & Marketing LivePerson LPSN CRM & Marketing Marketo MKTO CRM & Marketing Marin Software MRIN CRM & Marketing Responsys MKTG CRM & Marketing Salesforce.com CRM CRM & Marketing Vocus VOCS CRM & Marketing E2open, Inc EOPN ERP & Supply Chain Fleetmatics FLTX ERP & Supply Chain Netsuite N ERP & Supply Chain SciQuest SQI ERP & Supply Chain SPS Commerce SPSC ERP & Supply Chain Workday, Inc. WDAY ERP & Supply Chain Athenahealth, Inc ATHN Vertically Focused DealerTrack TRAK Vertically Focused Ebix Inc. EBIX Vertically Focused Ellie Mae ELLI Vertically Focused Medidata Solutions MDSO Vertically Focused RealPage RP Vertically Focused Textura Corp. TXTR Vertically Focused Callidus Software Inc. CALD Workforce Management Cornerstone OnDemand CSOD Workforce Management Halogen Software, Inc. TSX:HGN Workforce Management The Ultimate Software Group, Inc. ULTI Workforce Management Workday, Inc. WDAY Workforce Management Benefitfocus, Inc. BNFT Other SaaS ChannelAdvisors ECOM Other SaaS Concur CNQR Other SaaS Demandware, Inc. DWRE Other SaaS FireEye, Inc. FEYE Other SaaS incontact, Inc. SAAS Other SaaS IntraLinks Holdings IL Other SaaS S J2 Global JCOM Other SaaS Jive Software, Inc JIVE Other SaaS OpenTable, Inc. OPEN Other SaaS Qualys, Inc. QLYS Other SaaS Service-now.com NOW Other SaaS Tableau Software DATA Other SaaS Tangoe TNGO Other SaaS S Zix Corporation ZIXI Other SaaS

64 THE SEG INTERNET INDEX COMPANIES Company Ticker Product Category 63 Angie's List, Inc. ANGI Ad Tech & Lead Generation Baidu.com, Inc. BIDU Ad Tech & Lead Generation Bankrate, Inc. RATE Ad Tech & Lead Generation Digital Generation, Inc. DGIT Ad Tech & Lead Generation ehealth, Inc. EHTH Ad Tech & Lead Generation Google Inc. GOOG Ad Tech & Lead Generation Groupon GRPN Ad Tech & Lead Generation InterActiveCorp IACI Ad Tech & Lead Generation LinkedIn LNKD Ad Tech & Lead Generation Marchex Inc. MCHX Ad Tech & Lead Generation QuinStreet QNST Ad Tech & Lead Generation ReachLocal, Inc. RLOC Ad Tech & Lead Generation Rocket Fuel FUEL Ad Tech & Lead Generation SINA Corporation SINA Ad Tech & Lead Generation Sohu.com Inc. SOHU Ad Tech & Lead Generation Tree.Com, Inc. TREE Ad Tech & Lead Generation Tremor Video, Inc. TRMR Ad Tech & Lead Generation ValueClick, Inc. VCLK Ad Tech & Lead Generation Yandex YNDX Ad Tech & Lead Generation YuMe, Inc. YUME Ad Tech & Lead Generation FLOWERS.COM, Inc. FLWS Commerce Amazon.com, Inc. AMZN Commerce Bitauto Holdings Limited BITA Commerce BlueNile NILE Commerce DangDang DANG Commerce Digital River Inc. DRIV Commerce ebay Inc. EBAY Commerce GeekNet GKNT Commerce Liquidity Services, Inc. LQDT Commerce Mecox Lane Limited MCOX Commerce Mercadolibre, Inc. MELI Commerce Overstock.com, Inc. OSTK Commerce PetMed Express, Inc. PETS Commerce Stamps.com STMP Commerce

65 THE SEG INTERNET INDEX COMPANIES (CON T) Company Ticker Product Category 64 AOL, Inc. AOL Content & Media DemandMedia DMD Content & Media InterActiveCorp IACI Content & Media Netflix NFLX Content & Media Pandora P Content t & Media Shutterstock, Inc. SSTK Content & Media TheStreet.com, Inc. TST Content & Media WebMD Health Corp. WBMD Content & Media XO Group XOXO Content & Media Yahoo! Inc. YHOO Content & Media Youku YOKU Content & Media ChangYou.com CYOU Gaming Giant Interactive GA Gaming Netease NTES Gaming NCSoft KOSE:A036 Gaming Perfect World PWRD Gaming Sohu.com Inc. SOHU Gaming Tencent Holdings SEHK:700 Gaming Zynga, Inc. ZNGA Gaming 8x8, Inc. EGHT Infrastructure Akamai Technologies, Inc. AKAM Infrastructure Brightcove Inc. BCOV Infrastructure BroadSoft, Inc. BSFT Infrastructure Digital River Inc. DRIV Infrastructure Envivio, Inc. ENVI Infrastructure Harmonic Inc HLIT Infrastructure Interactive Intelligence, Inc. ININ Infrastructure Limelight Networks, Inc. LLNW Infrastructure Mitel Networks Corp. MITL Infrastructure Polycom, Inc. PLCM Infrastructure t Rovi Corporation ROVI Infrastructure SeaChange International Inc. SEAC Infrastructure ShoreTel, Inc. SHOR Infrastructure Sonus Networks, Inc SONS Infrastructure Synacor, Inc SYNC Infrastructure Tucows Inc. TCX Infrastructure VeriSign VRSN Infrastructure

66 THE SEG INTERNET INDEX COMPANIES (CON T) Company Ticker Product Category Angie's List, Inc. ANGI Services Bankrate, Inc. RATE Services Carbonite, Inc. CARB Services LifeLock, Inc. LOCK Services Monster Worldwide, Inc. MWW Services Qihoo QIHU Services Shutterfly SFLY Services SouFun Holdings Ltd. SFUN Services Tree.Com, Inc. TREE Services Trulia, Inc. TRLA Services VistaPrint VPRT Services Xoom XOOM Services Zillow Z Services Facebook FB Social LinkedIn LNKD Social Mail.ru Group LSE:MAIL Social Renren Inc RENN Social Yelp, Inc. YELP Social YY, Inc. YY Social Ctrip CTRP Travel Expedia EXPE Travel HomeAway AWAY Travel MakeMyTrip MMYT Travel Orbitz OWW Travel Priceline PCLN Travel Travelzoo TZOO Travel TripAdvisor Inc TRIP Travel 65

67 THE SEG SOFTWARE INDEX COMPANIES KEY METRICS SEG Software Index EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin Company 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Accretive Health 0.9x 1.0x 1.0x 0.9x 0.8x 19.9x 32.8x 33.3x 29.5x 26.5x 43.5% 32.2% 32.2% 32.2% 32.2% 4.6% 2.9% 2.9% 2.9% 2.9% ACI Worldwide, Inc. 3.7x 3.4x 3.2x 3.4x 3.3x 18.0x 17.2x 13.8x 16.1x 15.2x 17.2% 22.5% 43.3% 38.7% 39.7% 20.4% 19.7% 23.6% 21.1% 21.9% Activision Blizzard 2.2x 2.0x 2.3x 2.4x 2.9x 9.1x 8.0x 7.1x 7.1x 7.7x -7.6% -5.9% 2.1% 11.8% 13.1% 24.6% 25.5% 32.4% 33.3% 37.6% Actuate Corporation 1.8x 1.4x 1.6x 1.7x 2.0x 8.2x 7.0x 9.2x 11.5x 16.0x 1.6% % 0.9% -1.9% 22.4% 19.7% 17.2% 14.9% 12.6% Adobe Systems Incorporated 3.3x 3.4x 3.9x 4.7x 5.1x 9.5x 10.0x 13.3x 17.7x 22.1x 8.1% 4.4% 3.1% -1.9% -5.3% 34.2% 33.5% 29.7% 26.6% 23.3% Advent Software, Inc. 33x 3.3x 29x 2.9x 35x 3.5x 41x 4.1x 37x 3.7x 17.0x 14.5x 16.3x 17.9x 19.0x 14.7% 11.9% % 7.9% 67% 6.7% 19.6% 19.9% 9% 21.2% 2% 22.7% 19.3% Allot Communications Ltd. 7.1x 5.4x 2.8x 2.4x 2.9x 44.2x 35.1x 22.8x 32.3x 336.0x 39.4% 39.6% 34.7% 23.4% 7.2% 16.2% 15.5% 12.3% 7.5% 0.9% Allscripts Healthcare Solutions Inc. 1.5x 1.7x 1.6x 1.9x 2.2x 9.3x 10.9x 18.4x 26.3x 40.2x 19.9% % % 15.9% 15.3% 8.6% 7.4% 5.6% Amdocs Limited 1.4x 1.4x 1.5x 1.5x 1.5x 7.4x 7.5x 8.0x 7.8x 8.1x 3.5% 2.2% 1.8% 1.9% 2.6% 18.4% 18.5% 18.5% 18.6% 18.7% American Software, Inc. 1.6x 1.5x 1.7x 1.7x 1.7x 9.2x 9.0x 10.6x 11.4x 12.2x 16.2% 11.2% 3.3% -2.1% -6.6% 17.1% 16.6% % 14.3% ANSYS, Inc. 7.6x 7.5x 8.2x 7.9x 8.7x 16.1x 15.8x 17.2x 16.8x 18.6x 19.9% 17.5% 15.4% 12.8% 10.5% 47.3% 47.5% 47.6% 47.1% 46.7% Aruba Networks, Inc. 3.0x 3.5x 4.0x 2.7x 2.6x 52.3x 55.4x 55.6x 43.8x 61.0x 30.3% 25.2% 22.8% 19.3% 16.1% 5.8% 6.3% 7.1% 6.1% 4.3% AsiaInfo Holdings, Inc. 12x 1.2x 10x 1.0x 10x 1.0x 10x 1.0x 09x 0.9x 75x 7.5x 77x 7.7x 79x 7.9x 82x 8.2x 81x 8.1x 98% 9.8% 10.5% 13.9% 15.7% 16.2% % 2% 11.7% 11.5% Aspen Technology, Inc. 8.4x 8.6x 9.7x 9.1x 9.4x x 127.2x 65.7x 49.1x 22.7% 27.7% 22.9% 26.1% 28.1% -5.5% 4.9% 7.6% 13.8% 19.2% Autodesk, Inc. 2.7x 2.6x 3.2x 3.1x 3.0x 12.6x 12.7x 15.7x 15.1x 14.8x 10.5% 6.8% 4.4% 0.8% -0.5% 21.2% 20.6% 20.7% 20.5% 20.3% AVG Technologies N.V. 2.1x 2.2x 2.3x 2.5x 3.0x 7.7x 7.4x 7.5x 8.1x 8.8x % 30.7% 28.2% 27.2% 26.8% 29.3% 30.1% 31.4% 34.1% Bango PLC 4.6x 5.3x 8.2x 8.8x 8.5x % -19.3% % -6.1% % Blackbaud, Inc. 3.4x 2.9x 3.2x 3.4x 3.7x 22.1x 21.3x 22.0x 22.1x 20.8x 12.9% 16.6% 20.6% 23.6% 22.3% 15.2% 13.8% 14.5% 15.3% 17.8% Bottomline Technologies 3.2x 3.4x 3.7x 3.3x 3.4x 22.7x 27.2x 40.9x 38.3x 35.0x 18.4% 16.9% 14.9% 15.7% 13.6% % 9.1% 8.7% 9.8% Broadridge Financial 1.3x 1.3x 1.4x 1.5x 1.6x 7.9x 7.9x 7.9x 8.5x 8.5x 6.3% 4.5% 3.4% 3.8% 5.5% 16.8% 16.9% 17.1% 17.4% 18.6% Brocade Communications Systems, Inc. 1.2x 1.1x 1.2x 1.1x 1.4x 5.4x 5.3x 5.5x 5.2x 6.2x % 4.8% 4.8% 1.5% 21.2% % 21.9% 22.2% BSQUARE Corporation 0.1x 0.1x 0.2x 0.1x 0.1x - 9.4x 7.8x 8.8x 12.9x -4.8% -2.1% 4.7% 0.3% -3.5% -0.3% 1.4% 2.1% 1.5% 1. CA Technologies 2.3x 2.0x 2.2x 2.4x 2.7x 6.5x 5.9x 6.5x 6.6x 7.4x % -1.6% -3.6% -3.5% 35.4% 33.6% 33.9% 36.1% 36.4% Cadence Design Systems, Inc 2.6x 2.5x 2.7x 2.6x 2.8x 12.1x 11.3x 11.9x 11.3x 12.3x 19.9% 18.2% 15.4% 13.8% 12.7% 21.1% 22.6% 22.7% % Cerner Corporation 4.9x 4.9x 5.4x 5.9x 5.9x 17.9x 18.1x 20.0x 21.0x 20.4x 24.5% 23.1% 20.9% 14.7% 12.3% 27.2% 27.3% 27.3% 28.2% 28.8% Check Point Software Tech Ltd. 6.5x 6.0x 6.5x 6.0x 7.2x 11.5x 10.5x 11.5x 10.7x 12.9x 11.4% 10.1% 7.7% 5.7% 4.4% 56.6% 56.6% 56.7% 56.4% 56.1% Cimatron Ltd. 0.5x 0.7x 1.3x 1.3x 1.3x 3.1x 4.5x 8.7x 8.5x 8.9x 9.6% 6.8% 3.9% 2.1% 1.6% % 15.2% 14.7% 14.4% Cisco Systems, Inc. 1.4x 1.5x 1.7x 1.8x 2.0x 4.9x 5.1x 6.0x 6.3x 7.2x 6.6% 6.8% 5.4% 5.1% 5.5% 27.6% 28.8% 28.7% 28.1% 28.2% Citrix Systems, Inc. 5.5x 4.5x 4.8x 4.3x 4.6x 22.3x 18.9x 20.5x 19.0x 20.8x 18.1% 16.5% 17.2% 15.8% 16.5% 24.9% 23.7% 23.6% 22.5% 21.9% Commtouch Software Ltd. 2.0x 2.0x 3.0x 2.7x 2.4x 9.5x 11.9x 37.6x 182.2x % 2.8% 3.9% 10.9% 21.2% 21.3% 17.1% 8.1% 1.5% -2.3% CommVault Systems, Inc. 4.7x 5.6x 6.6x 6.0x 6.7x 32.9x 36.3x 39.9x 34.7x 38.3x 25.4% 23.4% 23.4% 21.9% 21.7% 14.1% 15.6% 16.5% 17.3% 17.6% Computer Programs and Sys, Inc. 3.1x 3.1x 3.0x 2.9x 3.1x 12.8x 12.8x 12.5x 12.0x 12.5x 0.7% 1.9% 5.7% 6.1% 12.3% 24.1% 23.9% 24.2% 24.2% 24.9% Compuware Corporation 2.0x 2.1x 2.6x 2.5x 2.4x 12.5x 13.0x 15.3x 18.3x 17.4x 5.6% -2.2% -2.3% -6.5% % % 13.9% 13.9% Constellation 2.5x 3.0x 2.9x 3.1x 3.5x 11.9x 14.4x 13.9x 15.6x 17.5x 13.6% 10.9% 15.2% 20.4% 29.4% 20.7% 20.7% 20.7% 19.7% 19.7% CSG Systems International, Inc. 1.0x 0.9x 1.0x 1.0x 1.1x 4.6x 4.5x 4.9x 5.8x 6.6x 13.3% 6.4% % 2.1% 21.5% % 17.8% 17.1% Cyan, Inc x 3.3x % % % -10.9% -9.8% -11.9% -17.1% Dassault Systèmes 4.3x 4.6x 4.6x 5.0x 5.3x 13.6x 14.7x 14.8x 16.0x 17.2x 12.1% % 11.7% 8.4% 31.3% 31.1% 31.3% DST Systems, Inc. 1.3x 1.3x 1.4x 1.4x 1.4x 9.2x 9.4x 9.7x 9.4x 9.2x 7.7% 8.3% 7.9% 6.4% 5.2% 14.4% 14.2% 14.5% 14.7% 14.9% Electronic Arts Inc. 0.8x 0.8x 1.1x 1.4x 1.9x 11.8x 12.4x 10.5x 16.6x 20.2x 8.6% 6.2% 2.4% -8.4% -7.5% 6.6% 6.8% 10.2% 8.6% 9.5% EMC 2.5x 2.3x 2.2x 2.1x 2.3x 10.5x 9.9x 9.3x 8.8x 9.7x % 7.4% 6.4% 23.9% 23.8% 23.9% 23.8% 23.9% EPIQ Systems, Inc. 2.2x 2.1x 2.0x 1.9x 1.9x 9.6x 9.0x 9.1x 9.2x 9.9x 32.2% 28.5% % 22.2% 22.9% 23.1% 21.6% 20.5% 19.1% 66

68 THE SEG SOFTWARE INDEX COMPANIES KEY METRICS SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Evertec x 7.6x x 20.7x % 6.2% 5.4% 33.8% 42.3% 37.2% 44.9% 36.7% Evolving Systems, Inc. 2.7x 2.5x 2.4x 2.3x 3.1x 26.6x 14.0x 10.1x 8.3x 11.6x 6.1% 25.9% % 20.2% 10.3% 18.2% 23.8% 27.5% 27. F5 Networks, Inc. 5.5x 5.0x 5.0x 3.8x 4.3x 16.5x 14.9x 14.9x 11.7x 13.7x 21.8% 19.6% 17.8% 12.9% % 33.5% 33.4% 32.4% 31.6% Fair Isaac Corporation 2.8x 2.8x 2.9x 2.9x 3.0x 9.8x 9.6x 10.5x 10.7x 11.4x 5.9% 9.2% 9.8% 11.7% 13.6% % 27.5% 26.6% 26.1% FalconStor Software, Inc. 0.8x 1.0x 1.3x 0.6x 0.4x % -6.6% % -14.1% % -13.5% -15.1% -14.5% Fidessa 1.7x 1.7x 2.0x 2.3x 2.7x 8.5x 8.2x 10.2x 11.5x 13.5x 4.3% 2.2% 0.1% % 20.1% 20.1% % 19.8% Fiserv 2.9x 3.0x 3.1x 3.4x 3.5x 9.9x 10.0x 10.4x 11.3x 11.9x 4.6% 4.9% 3.3% 3.4% 5.4% 29.5% 29.8% 29.8% 29.7% 29.7% Fortinet Inc. 7.3x 5.6x 6.2x 4.5x 4.9x 35.3x 27.2x 29.9x 22.8x 27.3x % 23.1% 20.7% % 20.5% 20.9% 19.8% 18.1% GameLoft SA 1.7x 2.0x 1.8x 1.7x 2.0x 15.0x 13.3x 11.6x 10.4x 12.4x 21.1% 21.5% 26.7% 18.6% 16.6% 11.6% 14.9% 15.3% 16.4% 16.3% Gigamon, LLC x 8.2x x % 41.8% 17.3% % 8.3% -22.3% Glu Mobile, Inc. 3.2x 1.4x 1.2x 1.5x 1.5x % 50.2% 46.1% 26.4% % -7.2% -8.1% -9.9% -12.7% Gree 1.7x 1.7x 1.5x 1.5x 1.1x 3.3x 3.3x 3.2x 3.7x 3.1x 146.6% 101.6% 49.5% 11.5% -3.8% 53.4% 50.7% 47.1% 40.4% 36.1% Greenway Medical Technologies, Inc 3.3x 3.7x 3.2x 2.6x 2.6x 58.7x 63.7x 67.5x 183.2x % 27.4% 15.9% 8.7% 5.6% 5.8% 4.8% 1.4% -2.2% GSE Systems Inc. 0.5x 0.3x 0.4x 0.2x 0.2x 6.7x 4.7x 5.8x 6.6x % 12.6% 2.2% -1.8% -9.3% 6.8% 7.3% 6.2% 3.3% -0.4% Guidance Software, Inc. 2.1x 2.1x 1.9x 1.8x 1.8x 38.0x 34.1x 34.3x 108.0x % 22.3% 23.8% 21.8% 10.9% 5.5% % 1.6% -2.3% Guidewire Software, Inc. 5.4x 6.0x 6.3x 7.9x 8.0x 47.3x 77.9x 88.0x 241.2x 110.7x 34.5% 27.8% 28.2% 25.9% 29.6% 11.4% 7.7% 7.2% 3.3% 7.2% Hewlett Packard 0.5x 0.4x 0.4x 0.5x 0.6x 4.2x 3.2x 3.5x 4.2x 4.6x -4.6% -5.4% % -7.7% 11.4% 12.2% 12.1% 12.1% 12. IBM 2.3x 2.3x 2.4x 2.4x 2.3x 9.4x 9.1x 9.3x 9.4x 8.9x 1.5% -1.7% -2.3% -3.5% -3.5% 24.8% % 25.6% 25.6% Imperva 6.8x 6.8x 7.2x 7.6x 9.0x % % 33.5% 32.5% -7.9% -6.3% % -10.1% Informatica Corporation 3.5x 3.0x 4.1x 3.8x 4.1x 14.3x 12.4x 18.5x 18.8x 20.9x 12.4% 6.5% 3.5% 2.2% 6.5% 24.8% 23.8% 22.2% 20.4% 19.5% Intuit Inc 4.3x 4.2x 4.5x 3.9x 4.2x 11.7x 12.4x 14.2x 11.6x 12.0x 10.4% 10.7% 6.5% 10.7% 9.5% % 31.3% 33.8% 35.1% Jack Henry & Associates, Inc. 3.1x 3.1x 3.4x 3.6x 3.7x 9.6x 9.5x 10.8x 11.3x 11.6x 6.2% 7.1% 7.9% 8.7% % 32.5% 31.7% 31.9% 32.2% Juniper Networks, Inc. 1.6x 1.6x 2.0x 1.7x 1.9x 11.2x 11.6x 14.6x 11.1x 12.2x -2.1% -3.8% -1.9% 0.3% 3.1% 14.3% 13.7% 13.7% % Konami Corporation 0.9x 0.9x 0.9x 1.2x 1.3x 4.7x 5.5x 6.5x 8.3x 10.3x 0.1% % % 18.1% 16.5% 14.4% 14.3% 12.8% Magic Software Enterprises Ltd. 1.1x 1.0x 1.2x 1.2x 1.5x 5.9x 5.7x 6.1x 6.5x 7.7x 18.2% 12.3% 11.5% 10.1% 15.1% 18.1% 17.9% 18.9% 19.2% 18.9% Manhattan Associates, Inc. 25x 2.5x 29x 2.9x 33x 3.3x 34x 3.4x 41x 4.1x 11.1x1x 12.7x 14.5x 15.0x 17.4x 15.9% 14.9% 14.3% 93% 9.3% 10.2% 22.1% 22.7% 22.8% % MedAssets 3.1x 3.0x 3.2x 3.0x 3.3x 10.4x 9.9x 10.4x 9.3x 10.5x 27.6% 19.8% 10.7% % 29.7% 30.6% 30.5% 31.7% 31.6% Mentor Graphics Corp 1.7x 1.7x 1.8x 1.9x 2.2x 9.0x 8.5x 9.2x 11.0x 12.2x % 7.3% 3.4% 1.9% % 19.7% 17.6% 18.2% Merge Healthcare 2.1x 2.0x 1.8x 2.0x 2.0x 9.9x 10.8x 14.8x 17.6x 18.4x 24.2% 15.8% 7.1% 4.5% -0.9% 20.6% 18.5% 12.4% 11.5% 11. Micros Systems 2.9x 2.6x 2.5x 2.2x 2.5x 12.6x 11.8x 11.4x 10.4x 12.6x 9.9% 11.6% 14.3% 15.1% 14.5% 22.8% 21.9% 21.7% 21.4% 19.9% Microsoft Corporation 2.8x 2.5x 2.5x 2.9x 2.7x 6.7x 6.2x 6.2x 7.3x 7.1x 5.4% 1.7% 1.2% 4.1% 5.6% 41.7% 39.8% 39.6% % MicroStrategy Incorporated 2.0x 1.5x 1.5x 1.2x 1.3x 31.8x 19.1x 18.4x 17.4x 26.2x % 5.8% 1.4% 2.3% 6.5% 7.7% 8.4% 6.9% 5. Millennial Media Inc 66x 6.6x 62x 6.2x 44x 4.4x 24x 2.4x 24x 2.4x % 71.4% 68.7% 60.3% -2.9% -3.6% % -0.6% MIND C.T.I. Ltd. 0.7x 1.0x 1.1x 0.7x 0.8x 3.5x 4.4x 4.9x 4.0x 4.4x 9.2% 10.2% 6.9% -1.6% -9.4% 21.1% 21.7% % 18.2% Model N, Inc x 4.2x 3.1x x 90.9x 41.8x 29.2% 29.3% % 2.8% 1.7% 4.7% 7.3% MSCI, Inc. 5.2x 4.1x 4.8x 4.8x 5.0x 11.6x 9.2x 10.6x 10.6x 11.1x % 7.3% % 45.1% Myriad Group AG 2.7x 2.9x 2.7x 2.9x 3.0x % -22.8% -7.8% -2.9% % -16.2% -18.6% -17.4% -16.2% NetApp, Inc. 1.3x 1.1x 1.2x 1.3x 1.6x 9.2x 8.4x 9.2x 10.4x 11.6x 14.6% % % % % Netscout Systems, Inc. 2.6x 2.6x 2.8x 2.4x 2.6x 12.0x 11.2x 12.1x 10.3x 11.3x 12.1% % 13.6% 10.6% 21.9% 23.1% % 23.1% NetSol Technologies Inc. 0.6x 0.7x 0.6x 0.8x 1.2x 1.3x 1.5x 1.3x 1.5x 2.3x 21.4% 28.6% 40.8% 61.5% 61.5% 47.1% 48.1% 51.5% 52.6% 52.6% NeuStar, Inc 3.8x 3.8x 3.9x 3.9x 4.2x 8.6x 8.6x 8.7x 8.8x 9.3x 30.8% 35.7% % 17.7% 44.1% 43.9% 44.5% 44.6% 44.8% 67

69 THE SEG SOFTWARE INDEX COMPANIES KEY METRICS SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 NQ Mobile Inc. 3.6x 2.2x 1.9x 2.8x 5.8x 30.2x 37.7x 46.9x 52.9x 129.9x 113.4% 118.6% 125.6% 122.4% % 5.9% % 4.5% Omnicell, Inc. 1.6x 1.5x 1.7x 1.7x 2.0x 13.5x 11.3x 12.5x 12.0x 13.8x 15.2% 19.6% 27.9% 33.5% 33.1% 11.5% 13.6% 13.4% 14.1% 14.3% Opera 4.1x 3.1x 3.2x 3.6x 3.8x 13.8x 10.8x 11.7x 13.2x 13.5x 25.6% 33.1% 35.2% 35.9% % 28.5% 27.8% 27.2% 27.8% Oracle Corporation 3.8x 3.6x 4.1x 3.9x 3.7x 8.4x 8.0x 9.0x 8.7x 8.3x 1.2% 1.4% 0.5% 0.2% 1.2% 44.7% 45.1% 45.3% 44.7% 44. Palo Alto Networks, Inc 15.9x 12.0x 10.7x 9.1x 7.6x 403.9x x % 86.7% 74.8% 63.6% 55.3% 3.9% 0.3% -0.4% -1.9% -2.2% Pandora Media x x x x x % 59.3% 55.7% 55.2% % 79% -6.5% 65% -7.2% 72% -8.2% 82% -7.5% 75% Parametric Technology Corporation 1.9x 1.9x 2.3x 2.3x 2.6x 11.1x 10.7x 13.0x 12.4x 12.9x 15.9% 7.6% 3.2% 1.5% 0.3% 17.4% 17.8% 17.9% 18.8% 19.9% PDF Solutions Inc 3.3x 4.2x 4.5x 5.1x 5.7x 18.1x 19.4x 18.5x 19.3x 20.4x 22.9% 27.5% 34.2% 28.6% 22.6% 18.3% 21.5% 24.5% 26.3% 27.7% Pegasystems Inc. 2.3x 1.7x 1.7x 2.1x 2.6x 42.6x 29.1x 16.1x 16.9x 18.3x 10.9% 10.9% 10.8% 9.7% 12.2% 5.4% 5.9% 10.8% 12.2% 14. Progress Software Corporation 3.9x 2.8x 3.0x 2.7x 3.2x 6.8x 10.3x 13.6x 13.5x 15.5x -55.2% -7.1% 8.9% 34.7% 45.8% 56.6% 26.7% 21.9% 20.4% 20.5% Proofpoint, Inc. 4.2x 3.1x 3.5x 4.8x 7.9x % 28.2% 26.2% -12.2% -12.1% -11.3% -12.4% -12.1% PROS Holdings 35x 3.5x 37x 3.7x 53x 5.3x 56x 5.6x 63x 6.3x 33.1x 38.6x 59.9x9x 74.0x 96.1x 31.5% 22.9% 21.9% 21.7% 23.6% 10.6% 96% 9.6% 88% 8.8% 76% 7.6% 65% 6.5% QAD Inc. 0.6x 0.6x 0.6x 0.5x 0.5x 7.5x 7.7x 9.4x 12.7x 12.8x 4.7% 2.9% % 1.6% 8.1% 7.5% 6.4% 4.3% 4.2% Qihoo 360 Technology Co. Ltd 7.0x 8.4x 10.3x 12.2x 18.3x 30.1x 38.9x 50.8x 68.2x 81.9x 169.9% 130.1% % 78.1% 23.1% 21.7% 20.3% 17.9% 22.3% Qiwi plc x 4.3x x 19.3x 32.5% 32.5% 9.2% % 20.8% 22.4% Qlik Technologies 4.8x 4.2x 4.8x 5.5x 6.1x 66.7x 75.0x 94.4x 192.7x 475.6x 29.7% 22.2% 21.2% 20.5% 22.8% 7.2% 5.6% 5.1% 2.8% 1.3% Quality Systems, Inc. 2.2x 2.1x 2.1x 2.1x 2.5x 7.9x 8.1x 9.1x 9.6x 11.6x 20.7% 14.9% 9.6% 7.1% 0.8% 27.2% 25.3% 23.5% 21.9% 21.6% Radware Ltd. 3.3x 3.2x 3.8x 3.2x 3.2x 16.4x 15.2x 17.5x 15.6x 17.0x 15.1% 14.6% 13.3% 9.1% 5.7% 20.1% 21.3% 21.6% 20.4% 18.6% Red Hat, Inc. 8.3x 7.0x 7.2x 6.1x 6.2x 38.9x 33.7x 35.2x 30.2x 30.5x 19.3% 18.2% 17.3% 16.4% 16.7% 21.3% 20.6% 20.4% 20.1% 20.2% Redknee Solutions 1.1x 1.7x 3.4x 3.9x 3.3x 10.4x 14.8x 34.3x 82.9x 44.7x -0.7% -2.5% -0.6% -1.4% 74.4% 10.8% 11.5% % 7.4% Riverbed Technology, Inc. 3.4x 3.0x 3.2x 2.9x 2.8x 21.8x 18.1x 19.8x 19.1x 19.8x 19.5% 16.4% 15.2% 20.8% 23.1% 15.6% 16.4% 16.1% 15.3% 14.3% Sage Group plc 2.7x 2.7x 2.9x 3.0x 3.1x 9.2x 9.2x 9.7x 10.3x 10.3x - 0.5% 1.7% 2.9% 2.9% 29.3% 29.6% 29.6% 29.6% 29.6% SAP AG 4.0x 4.3x 4.6x 4.5x 4.2x 11.1x 12.5x 13.7x 13.2x 12.2x 13.2% 13.8% % 9.8% 36.1% 34.6% 33.8% 33.8% 34.3% Sapiens International 1.2x 1.0x 1.4x 1.5x 1.6x 9.1x 7.1x 9.9x 11.4x 12.1x 72.4% 78.9% 62.9% 44.6% 31.2% 13.4% 14.3% 13.8% 13.5% 13.3% Silver Spring Networks, Inc x 4.0x 3.7x % % % -51.1% -27.3% Software AG x x x x x x x x x x -4.4% 44% -5.9% 59% -4.6% 46% -5.8% 58% -7.9% 79% % 27.5% 26.2% 2% 26. SolarWinds, Inc. 16.7x 15.1x 14.7x 11.2x 9.1x 34.4x 30.8x 29.9x 22.9x 18.6x 36.1% 36.3% 35.6% 31.2% 26.8% 48.5% 48.9% Sourcefire, Inc. 6.7x 5.9x 5.3x 6.4x 8.8x 63.0x 55.2x 65.9x 87.2x 117.7x 38.2% 38.9% 34.7% 28.6% 26.7% 10.7% 10.6% 8.1% 7.3% 7.5% Splunk, Inc. 17.2x 14.3x 15.8x 19.0x 20.6x % 59.2% 54.7% -6.8% % % SS&C Corporation 6.8x 6.0x 5.1x 5.6x 5.6x 18.3x 15.8x 13.3x 14.6x 14.3x 15.6% 31.7% 48.8% 68.1% 70.1% 37.4% 37.8% 38.6% 38.5% 38.8% Stratasys, Inc. 7.2x 7.4x 12.6x 11.3x 11.6x 27.5x 28.6x 52.9x 57.1x 58.3x 29.7% 27.8% 38.1% 60.9% 82.4% 26.1% 25.7% 23.7% 19.8% 19.9% Symantec Corporation 1.7x 1.7x 2.1x 2.2x 2.3x 6.3x 6.5x 7.9x 8.0x 8.4x 2.3% 2.3% 1.7% 2.6% % 26.6% 26.5% 27.3% 27.4% Synchronoss Technologies, Inc. 3.0x 2.5x 4.0x 3.9x 4.2x 15.6x 11.9x 17.9x 17.8x 20.4x 25.6% 21.5% 19.5% 19.4% 20.3% 19.2% 21.4% 22.2% 21.8% 20.7% Synopsys Inc 2.4x 2.3x 2.6x 2.7x 2.7x 11.5x 11.8x 13.4x 12.0x 12.1x 11.3% 14.4% 13.1% 14.5% % 19.6% 19.4% 22.2% 21.9% Take-Two Interactive 1.1x 1.1x 1.2x 1.1x 1.4x x 15.9x -34.5% -7.8% 23.6% 47.1% 57.6% -23.2% -14.7% -6.4% 1.9% 8.8% Tangoe, Inc. 5.5x 3.2x 3.3x 2.8x 3.8x 70.3x 41.7x 38.9x 32.9x 41.3x 50.8% 48.1% 47.2% 41.5% 38.1% 7.8% 7.6% 8.5% 8.7% 9.1% TeleCommunication Systems 0.4x 0.5x 0.5x 0.5x 0.5x 5.7x 7.9x 6.5x 6.2x 6.7x 13.3% 17.4% 14.6% 10.8% 2.5% 6.5% 6.4% 7.9% 7.9% 8. TeleNav 0.2x 0.4x 0.5x 0.1x 0.2x 0.9x 2.2x 3.1x 0.8x 2.4x 3.2% -0.2% -1.1% 0.4% -6.7% 25.3% 19.9% 14.7% 11.3% 8.1% Teradata 4.7x 3.9x 3.8x 3.2x 3.4x 19.4x 15.9x 15.2x 13.6x 14.9x 20.2% 16.1% 12.8% 6.9% 3.6% 24.3% 24.3% 24.8% 23.3% 23. The Active Network, Inc. 1.7x 0.6x 0.6x 0.6x 1.1x 114.8x 25.5x 58.0x 24.5x 37.7x 24.6% 24.2% 24.2% 19.9% 15.6% 1.5% 2.3% % 3. 68

70 THE SEG SOFTWARE INDEX COMPANIES KEY METRICS SEG Software Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 The Descartes Systems Group Inc. 4.0x 4.1x 4.3x 4.7x 4.9x 14.0x 14.5x 14.9x 16.2x 17.1x 9.1% 10.2% 11.3% 12.2% 17.1% 28.5% 28.4% 28.9% 29.1% 28.4% TIBCO Software Inc. 4.6x 3.9x 3.3x 3.0x 3.5x 21.2x 18.5x 16.4x 16.4x 18.9x 16.7% 11.3% 7.9% 4.4% 3.3% 21.5% 20.9% 20.3% 18.6% 18.7% Trend Micro 2.0x 1.8x 2.3x 2.7x 3.3x 5.9x 5.6x 7.3x 8.2x 9.8x -2.8% -3.1% -2.6% 2.1% 7.7% 33.3% 32.6% 31.9% 32.8% 33. Tyler Technologies, Inc. 3.8x 4.2x 4.7x 5.5x 6.2x 21.2x 21.7x 24.6x 28.0x 31.2x 12.5% 16.8% 17.4% 18.1% 16.4% 18.2% 19.2% 19.1% 19.6% 19.8% Ubisoft Entertainment 0.4x 0.8x 0.8x 0.7x 0.8x 1.3x 2.5x 2.2x 2.0x 2.3x 4.3% 6.4% 12.5% 18.4% 18.4% 31.6% 31.5% 34.4% 36.8% 36.8% Unit 4 1.5x 1.6x 1.8x 2.0x 1.9x 9.8x 12.3x 12.7x 13.4x 12.9x 2.3% 3.8% 5.4% 5.4% 5.4% 15.2% 13.2% 14.3% 14.6% 14.8% VASCO Data Security International 1.6x 1.2x 1.3x 1.4x 1.5x 8.7x 6.3x 8.4x 8.7x 12.5x 22.8% 7.3% -8.4% -4.3% -12.5% 18.4% 18.5% % Velti Plc 1.7x 1.4x 0.9x 0.6x 0.5x 13.3x 11.9x 27.4x % 42.9% 22.8% -1.6% 13.1% 11.6% 3.2% -1.9% -58.8% Verisk 6.5x 6.5x 6.9x 7.1x 7.2x 14.8x 14.6x 15.5x 16.0x 15.4x 15.6% 15.5% 15.2% 16.5% 16.1% 44.2% 44.7% 44.8% 44.5% 46.5% VMWare, Inc. 8.3x 7.9x 6.4x 5.7x 6.4x 30.9x 30.2x 25.5x 22.9x 25.3x 26.1% 23.4% 22.2% 19.2% 16.3% 26.9% 26.2% 25.2% 24.7% 25.3% Zynga, Inc 0.9x 0.5x 1.0x 1.1x 1.2x x 9.5x 7.8x 43.1% 25.1% 12.4% 0.5% -11.8% % 11.7%

71 THE SEG SaaS INDEX COMPANIES KEY METRICS SEG SaaS Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Athenahealth, Inc 8.2x 6.1x 7.2x 7.2x 8.6x 62.8x 48.9x 59.9x 78.6x 99.8x 34.2% 32.4% 30.3% 28.7% 31.3% 13.1% 12.6% 12.1% 9.1% 8.6% Bazaarvoice, Inc 7.2x 4.3x 2.7x 2.7x 4.0x % 59.3% 57.9% % -17.3% -17.4% -17.8% -28.1% -27.4% Benefitfocus, Inc x % 2.5% 18.8% % -10.3% -9.5% -10.2% -16.2% Callidus Software Inc. 2.0x 2.0x 2.1x 2.5x 3.1x % 13.3% 14.5% 12.6% % -17.8% -16.1% -14.4% ChannelAdvisors x 9.0x % % -1.5% -1.8% -3.7% -5.1% Concur x x x x 10.3x 69.2x 67.5x 81.7x 113.9x 112.0x 25.7% 25.8% 25.1% 22.3% 21.5% 12.6% 11.5% 97% 9.7% 77% 7.7% 92% 9.2% Constant Contact 2.0x 1.3x 1.4x 1.3x 1.7x 19.6x 14.2x 17.9x 18.5x 23.5x % 17.6% 16.1% 14.8% 10.4% 9.3% 7.8% 7.3% 7.3% Cornerstone OnDemand 12.9x 13.1x 13.4x 14.6x 17.1x % 68.1% 61.5% 61.9% 60.2% -21.9% -24.6% -23.4% -21.5% -19.5% Cvent x x % % 6.9% 13.6% 10.7% 8. DealerTrack 2.9x 2.9x 3.3x 3.3x 4.0x 19.2x 19.9x 23.9x 24.0x 28.6x 28.7% 16.8% 10.1% 10.5% 15.1% 15.3% 14.4% 13.8% 13.8% 14.1% Demandware, Inc. 9.8x 10.0x 8.9x 9.5x 14.2x % 40.5% 37.5% 33.4% -3.5% -5.9% -4.8% -10.7% -13.5% E2open, Inc 4.6x 4.5x 5.9x 4.5x 6.5x 92.6x 76.6x 754.0x % 25.6% 17.4% 17.4% % 0.8% -3.4% -3.4% Ebix Inc. 52x 5.2x 37x 3.7x 34x 3.4x 37x 3.7x 21x 2.1x 12.2x2x 86x 8.6x 79x 7.9x 88x 8.8x 54x 5.4x 18.2% 18.4% % 18.6% 42.8% 42.8% 42.4% 4% 41.8% 39.2% Ellie Mae 7.8x 6.0x 5.0x 5.0x 5.7x 37.9x 24.6x 19.5x 19.9x 24.2x % 83.5% 69.9% 57.2% 20.6% 24.4% 25.5% 24.8% 23.6% FireEye, Inc x % 186.1% 147.5% % -43.9% -61.9% Fleetmatics - 7.5x 6.9x 5.6x 8.9x x 37.0x 27.8x 36.1x % 39.6% 38.7% 16.8% 16.6% 18.6% 20.3% 24.7% Halogen Software, Inc x 5.7x % 36.4% 22.5% % -11.1% -8.2% incontact, Inc. 2.5x 2.4x 2.7x 3.2x 3.4x x 236.3x 243.8x % 24.6% 25.5% 24.9% -4.9% -2.2% 0.6% 1.4% 1.4% IntraLinks Holdings 1.4x 1.6x 1.6x 1.5x 2.1x 20.5x 48.8x 51.1x 66.2x 170.2x 2.9% 0.1% 1.8% 4.6% 6.2% 6.9% 3.4% 3.2% 2.3% 1.2% J2 Global 3.3x 3.4x 4.1x 4.5x 4.8x 6.7x 6.7x 8.3x 9.8x 10.9x 18.6% 12.1% 12.5% % 49.7% 50.5% 49.6% 46.1% 44.5% Jive Software, Inc 8.7x 6.9x 7.6x 7.0x 5.9x % 49.3% 47.1% 41.2% 36.5% -38.3% -34.9% -32.2% -35.4% -37. LivePerson 6.0x 4.3x 4.3x 2.6x 2.7x 37.1x 30.3x 35.4x 29.8x 35.5x 21.4% 19.7% 18.3% % 16.3% 14.1% 12.1% 8.7% 7.5% Marin Software x 4.2x 4.2x % % % -37.2% % -41.4% Marketo x 15.1x % 130.8% 80.3% % -67.9% -56.2% -53.2% -49.4% Medidata Solutions 4.0x 4.4x 5.3x 7.3x 9.0x 23.0x 26.5x 31.8x 45.6x 55.8x % 18.4% 19.2% 24.5% 17.6% 16.5% 16.6% % Netsuite 14.2x 14.6x 15.4x 18.7x 19.7x % 28.4% 30.7% 31.3% 32.8% -5.8% -5.4% -5.2% -6.3% -7.8% OpenTable, Inc. 5.9x 6.1x 7.1x 7.9x 8.8x 20.7x 20.3x 25.0x 27.2x 28.1x % 15.9% 15.6% 15.5% 28.5% 29.8% 28.5% 29.2% 31.2% Qualys, Inc. 4.8x 4.8x 3.1x 3.4x 4.9x 57.4x 50.5x 27.7x 30.2x 39.8x % 18.9% 8.4% 9.5% 11.3% 11.1% 12.3% RealPage 6.1x 5.1x 5.0x 4.4x 4.4x 45.1x 34.8x 30.6x 27.3x 28.1x % 24.9% 22.5% 20.7% 13.6% 14.6% 16.4% % Responsys 2.7x 1.4x 1.7x 2.1x 3.4x 20.6x 11.4x 14.0x 19.0x 36.7x 27.2% 21.1% 20.7% 21.3% 23.2% 12.9% 12.1% 11.8% 11.2% 9.2% Salesforce.com 7.4x 7.4x 8.2x 7.4x 7.4x 168.0x 235.9x 298.6x 331.3x 352.7x 36.5% 36.1% 34.6% 32.1% 31.4% 4.4% 3.1% 2.8% 2.2% 2.1% SciQuest 5.4x 4.7x 5.5x 6.6x 6.0x 47.1x 50.7x 96.2x 167.3x 273.9x % 24.4% 31.5% 36.7% 11.6% 9.4% 5.7% 3.9% 2.2% Service-now.com 20.3x 17.7x 14.9x 17.0x 17.6x % 87.8% 84.5% -6.1% -9.2% -8.9% -9.4% -10.3% SPS Commerce 5.6x 6.6x 6.4x 7.7x 9.6x 67.2x 78.0x 73.9x 86.7x 108.3x 31.5% 30.4% % 40.2% 8.4% 8.5% 8.7% 8.9% 8.9% Tableau Software x 22.1x x % 82.5% 104.8% % 9.6% 6.3% 0.1% -2.7% Tangoe 5.5x 3.2x 3.3x 2.8x 3.8x 70.3x 41.7x 38.9x 32.9x 41.3x 50.8% 48.1% 47.2% 41.5% 38.1% 7.8% 7.6% 8.5% 8.7% 9.1% Textura Corp x 23.2x % 106.2% % % -55.1% -93. The Ultimate Software Group, Inc. 8.3x 8.0x 7.9x 8.5x 10.4x 80.0x 69.4x 63.7x 61.9x 72.9x % 23.4% 24.4% 24.2% 10.4% 11.6% 12.5% 13.8% 14.3% Vocus 3.3x 2.6x 2.1x 1.3x 1.4x 258.9x 170.1x x 286.5x 29.9% 39.7% 48.7% 48.4% 34.3% 1.3% 1.5% -0.2% 1.4% 0.5% Workday, Inc x 29.9x 32.0x 33.7x % 88.3% 77.4% -38.1% -35.7% -32.5% -31.9% -28.4% Zix Corporation 3.5x 3.6x 4.2x 4.7x 5.4x 11.3x 12.7x 15.3x 21.1x 27.1x 11.1% % 14.4% 15.5% 30.7% 28.1% 27.6% 22.2% 19.9% Median: 5.5x 4.8x 5.3x 5.7x 6.5x 41.5x 41.7x 35.4x 31.5x 40.6x 28.7% 26.8% 25.3% % 6.9% 5.7% 2.3% 2.1% 70

72 THE SEG INTERNET INDEX COMPANIES KEY METRICS SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q FLOWERS.COM, Inc. 0.3x 0.4x 0.4x 0.5x 0.5x 6.2x 6.5x 7.2x 8.4x 8.8x % % % 5.5% 5.6% % 8x8, Inc. 4.1x 4.2x 4.3x 4.6x 5.5x 35.0x 31.7x 32.3x 33.8x 39.9x 28.8% 33.4% 29.3% 25.4% 21.4% 11.7% 13.4% 13.4% 13.5% 13.8% Akamai Technologies, Inc. 4.8x 4.8x 4.5x 5.0x 5.3x 13.6x 13.5x 12.4x 13.6x 14.3x 15.1% 17.9% 18.6% 18.3% % 35.3% 36.5% 36.6% 37. Amazon.com, Inc. 1.9x 1.8x 1.9x 1.8x 2.0x 52.8x 50.6x 45.4x 42.8x 44.9x 34.9% 31.3% 27.1% 24.5% % 3.6% 4.1% 4.2% 4.4% Angie's List, Inc. 5.3x 4.1x 5.7x 7.5x 6.5x % 74.2% % 67.6% -44.8% % -24.3% -17.2% AOL, Inc. 0.8x 0.9x 1.1x 1.2x 1.1x 4.4x 4.9x 5.1x 5.3x 4.8x -3.8% -2.4% -0.5% 0.9% 1.9% 19.1% 19.1% 21.5% 21.9% 22.4% Baidu.com, Inc. 13.1x 9.9x 8.4x 7.5x 10.3x 22.3x 17.2x 14.9x 14.1x 20.4x % 53.8% 47.1% 42.2% 58.5% 57.8% 56.3% 53.5% 50.7% Bankrate, Inc. 3.9x 2.7x 2.9x 3.4x 4.3x 13.3x 9.7x 11.8x 14.2x 19.7x 37.2% 23.2% 7.8% -2.1% -10.5% 29.6% 28.1% 24.9% 23.8% 21.9% Bitauto Holdings Limited 0.8x 1.2x 1.7x 1.9x 2.4x 5.7x 8.8x 9.6x 11.4x 13.7x 52.3% 54.7% 57.8% 51.5% 45.6% 13.7% 13.6% 17.5% % BlueNile 1.1x 1.2x 0.9x 0.9x 1.0x 29.3x 34.0x 26.1x 24.8x 28.0x 5.4% 7.4% 14.9% % 3.7% 3.5% 3.4% 3.5% 3.6% Brightcove Inc. 3.9x 3.1x 1.7x 2.0x 2.6x % 43.2% 38.4% 31.7% 27.7% -13.4% -11.8% -11.2% -9.9% -8.2% BroadSoft, Inc. 6.1x 5.4x 5.3x 4.1x 4.9x 28.1x 27.2x 28.0x 29.7x 53.8x 29.4% 19.7% 19.4% 13.2% 9.4% 21.5% 19.9% 18.8% 13.8% 9.2% Carbonite, Inc. 1.8x 2.1x 2.4x 2.5x 3.1x % % 35.9% 33.2% -22.7% % ChangYou.com 1.5x 2.0x 2.4x 2.2x 2.2x 2.3x 3.1x 3.7x 3.5x 3.5x 47.2% 34.3% 28.7% 28.6% 25.2% 64.7% 65.8% 63.3% % Ctrip 2.5x 3.5x 3.6x 4.6x 6.8x 9.9x 16.0x 20.0x 27.6x 41.6x 18.4% 18.6% 18.9% % 25.7% 21.7% 18.1% 16.7% 16.3% DangDang 0.3x 0.2x 0.2x 0.4x 0.6x % 55.3% 43.5% 35.6% 29.3% -9.9% -9.5% -8.6% -7.7% -6.4% DemandMedia 2.4x 1.9x 1.6x 1.6x 1.3x 14.1x 10.3x 8.9x 8.8x 7.1x 15.9% 15.2% 17.1% 19.1% 16.7% 16.9% % 17.9% Digital Generation, Inc. 1.8x 1.7x 1.6x 1.4x 1.7x 6.1x 6.1x 6.3x 5.5x 6.5x 45.7% 34.4% 19.2% 9.1% % 28.7% % 26.7% Digital River Inc. 0.7x 0.5x 0.3x 0.6x 0.8x 5.0x 3.6x 3.3x 6.8x 11.6x 7.3% 3.4% % -0.4% 14.4% 13.3% 9.7% % ebay Inc. 4.2x 4.4x 4.6x 4.5x 4.2x 14.7x 15.1x 15.8x 15.1x 14.3x 29.6% % 17.4% 15.4% 28.8% 29.2% 29.3% 29.6% 29.4% ehealth, Inc. 1.5x 2.4x 2.0x 2.0x 2.6x 11.8x 18.5x 15.2x 15.2x 22.1x % 2.5% 6.9% 10.2% 12.5% 12.7% % 11.6% Envivio, Inc. 1.3x x % -38.8% -36.5% -4.8% -17.3% -35.7% -49.8% -43.4% Expedia 1.7x 1.8x 2.0x 1.8x 1.5x 10.0x 11.0x 12.4x 11.8x 10.5x 17.3% 21.8% 16.9% 19.5% 19.8% 16.8% 16.5% 15.9% 15.2% 13.8% Facebook 8.3x 8.6x 11.3x 10.0x 14.0x 34.3x 36.4x 48.6x 41.7x 30.9x % 35.9% 41.4% 24.2% 23.5% 23.3% 23.9% 45.2% FriendFinder Networks Inc 25.7x 25.2x 30.4x 31.2x 33.1x % -0.4% -1.8% -3.1% -3.1% GeekNet 0.9x 0.6x 0.5x 0.3x 0.4x x 11.3% % 19.4% -2.8% -2.3% -0.5% -0.4% 0.7% Giant Interactive 2.7x 2.7x 3.2x 3.8x 3.8x 4.1x 4.3x 5.0x 5.9x 5.9x 28.7% 24.6% 20.1% 16.8% 14.4% 65.2% 64.6% 64.3% 64.9% 65. Google Inc. 4.3x 4.0x 4.4x 4.6x 4.5x 11.9x 12.0x 13.5x 14.6x 14.7x 28.3% 31.8% 32.4% 33.8% 30.5% 36.3% 33.6% 32.4% 31.4% 30.5% Groupon 1.1x 0.8x 1.0x 1.4x 2.2x 21.9x 12.0x 15.2x 22.9x 40.0x 117.6% 69.6% % 17.9% 5.1% 6.7% 6.5% % Harmonic Inc 0.7x 0.7x 0.8x 0.8x 1.2x 9.3x 9.1x 12.6x 14.4x 20.3x -4.6% -4.6% -3.4% -3.2% % 7.1% 6.6% 5.9% 5.8% HomeAway 6.8x 5.8x 6.5x 7.7x 7.6x 37.4x 33.2x 35.8x 40.1x 41.4x 27.2% % % 18.1% 17.5% 18.1% 19.1% 18.3% Interactive Intelligence, Inc. 2.3x 2.4x 3.1x 3.6x 4.0x 28.7x 40.3x 65.6x 61.8x 57.9x 13.1% 10.9% 13.3% 20.2% 28.5% 7.9% 5.9% 4.7% 5.8% 6.9% InterActiveCorp 1.6x 1.4x 1.2x 1.4x 1.4x 10.8x 9.9x 8.3x 9.0x 8.8x 34.5% 37.6% % 24.1% 14.4% 14.1% % 15.9% LifeLock, Inc x 3.5x 2.4x 2.8x x 47.5x 33.9x 51.2x % 44.9% 41.2% % 7.5% 7.1% 5.6% Limelight Networks, Inc. 0.7x 0.5x 0.5x 0.4x 0.5x 106.0x % 6.8% 5.2% 4.3% 1.7% 0.7% -0.5% -2.8% -1.9% -4. LinkedIn 14.5x 13.1x 16.8x 16.8x 20.3x 115.5x 105.1x 130.2x 124.6x 159.0x 101.9% 91.8% 86.2% 79.8% 71.9% 12.6% 12.4% 12.9% 13.5% 12.8% Liquidity Services, Inc. 3.2x 2.5x 2.1x 2.0x 1.8x 15.1x 12.2x 10.5x 10.5x 10.3x 40.6% 45.2% 37.3% 25.8% 15.4% 21.1% 20.6% 19.9% 19.3% 17.9% Mail.ru Group 11.9x 9.3x 8.9x 6.7x 8.2x 26.4x 21.2x 20.7x 15.4x 18.5x 60.9% 44.9% 40.2% 35.8% 32.2% 44.9% 43.7% 42.8% 43.6% 44.3% MakeMyTrip 2.3x 2.0x 2.0x 1.8x 1.8x 123.0x x % 29.2% 21.9% 16.4% 15.9% 1.9% % -6.6% -8.2% Marchex Inc. 0.6x 0.8x 0.8x 1.4x 1.6x 17.4x 29.4x 78.4x 84.1x 73.7x 23.6% 5.6% -5.7% -9.2% -2.9% 3.6% 2.8% 1.1% 1.6% 2.1% Mecox Lane Limited x 0.3x % -24.1% -30.3% -34.4% -36.7% -15.8% -13.7% -13.3% -14.2% -16.5% 71

73 THE SEG INTERNET INDEX COMPANIES KEY METRICS SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Mercadolibre, Inc. 10.0x 9.2x 9.8x 11.8x 12.4x 27.4x 25.8x 26.5x 32.4x 35.1x 36.8% 29.7% % 22.1% 36.3% 35.9% 37.1% 36.4% 35.4% Mitel Networks Corp. 0.7x 0.6x 0.7x 0.7x 0.8x 5.2x 4.8x 5.2x 5.1x 5.4x 3.9% -1.3% -3.8% -5.7% -3.5% 12.8% 13.5% 13.9% 13.8% 15.1% Monster Worldwide, Inc. 0.9x 0.8x 0.7x 0.7x 0.7x 4.6x 4.3x 4.4x 4.5x 4.4x -5.7% -10.2% -10.4% -10.1% -10.1% 19.2% 17.9% % 15.8% NCSoft 7.9x 4.8x 3.0x 3.2x 3.4x x 12.1x x -9.8% -3.1% 23.8% 34.1% 46.6% % % Netease 3.7x 3.1x 3.2x 3.7x 4.4x 7.5x 6.5x 6.7x 7.9x 9.2x 27.4% 17.6% 12.5% 8.1% 8.8% 49.6% 47.9% 47.5% 47.4% 47.6% Netflix 0.8x 1.1x 2.7x 3.3x 3.8x 12.9x 27.6x 102.9x 94.2x 86.7x 30.1% % 12.1% 14.1% 6.6% 4.1% 2.6% 3.5% 4.4% Orbitz 0.8x 0.7x 0.8x 1.3x 1.6x 5.5x 5.3x 6.1x 9.6x 11.6x 0.9% -0.8% 1.6% 2.6% % 13.2% 13.6% 13.4% 13.5% Overstock.com, Inc. 0.1x 0.3x 0.2x 0.4x 0.5x 18.8x 15.7x 7.2x 15.7x 16.9x -3.6% -1.6% 4.3% 9.3% 13.9% 0.8% 1.7% 2.6% 2.9% 3.1% Pandora 4.8x 3.6x 4.5x 5.4x 6.3x % 59.3% 55.7% 55.2% % -6.5% -7.2% -8.2% -7.5% Perfect World 0.8x 0.9x 0.8x 0.8x 1.6x 2.4x 2.7x 2.8x 3.3x 7.5x 4.7% 2.5% -7.1% -10.3% % 33.2% 27.3% 24.6% 21.2% PetMed Express, Inc. 0.5x 0.6x 0.9x 0.9x 1.1x 4.9x 5.6x 7.5x 7.7x 8.8x 1.2% 2.5% -0.3% -4.4% -0.2% 11.2% 11.2% 11.7% 12.3% 12.6% Polycom, Inc. 0.8x 0.8x 0.9x 0.9x 0.8x 6.1x 7.4x 10.1x 11.1x 11.3x 10.5% 5.2% -0.7% -2.9% -5.1% 13.6% 11.5% 8.9% % Priceline 6.1x 5.6x 5.9x 6.5x 7.6x 17.4x 15.3x 16.2x 18.2x 21.2x 31.9% 23.6% 20.8% 20.6% 22.3% % 36.4% 35.9% 35.8% Qihoo 7.0x 8.4x 10.3x 12.2x 18.3x 30.1x 38.9x 50.8x 68.2x 81.9x 169.9% 130.1% % 78.1% 23.1% 21.7% 20.3% 17.9% 22.3% QuinStreet 1.0x 0.8x 0.8x 0.9x 1.2x 6.6x 5.4x 5.8x 7.5x 10.9x -8.1% -13.2% -16.4% -16.8% -17.6% 15.8% 14.5% % 11. ReachLocal, Inc. 0.6x 0.6x 0.6x 0.7x 0.5x 47.1x 31.5x 38.0x 35.1x 28.0x % 21.3% 19.7% 17.7% 1.3% 1.8% 1.7% 1.9% 1.9% Renren Inc 4.2x 2.4x 1.8x 1.2x 2.3x % 50.9% 49.3% 47.2% 35.8% -39.4% % -42.3% -46.7% Rocket Fuel x % % -7.5% -6.1% -8.5% -7.7% Rovi Corporation 3.3x 3.4x 3.8x 4.7x 4.1x 8.5x 8.9x 10.5x 13.7x 12.2x 10.4% 1.1% -4.5% -9.1% % 38.5% 36.2% 34.2% 33.8% SeaChange International Inc. 1.0x 1.3x 1.8x 1.6x 1.7x 14.7x 21.4x 21.6x 21.7x 15.9x -8.3% -7.1% -4.6% -3.2% -1.8% 7.1% % 7.3% 10.8% ShoreTel, Inc. 0.9x 0.9x 0.7x 0.7x 0.8x % 27.7% 29.3% 36.4% 27.1% -2.5% -2.6% -4.3% -3.1% -2.2% Shutterfly 1.9x 1.7x 2.0x 2.5x 2.8x 19.5x 17.7x 15.3x 19.7x 23.9x 52.4% 47.1% 35.4% 31.3% % 9.4% 12.9% 12.5% 11.8% Shutterstock, Inc x 5.3x 7.8x 8.9x x 28.1x 37.0x 40.8x % 38.4% 16.7% 17.6% 18.8% % SINA Corporation 5.7x 5.3x 5.3x 5.6x 7.8x 134.0x 163.2x 132.9x 98.1x 297.3x 14.7% % 12.3% 14.7% 4.2% 3.3% % 2.6% Sohu.com Inc. 1.0x 1.0x 1.3x 1.7x 1.7x 2.7x 2.9x 3.9x 5.2x 5.7x 35.3% 30.1% 25.2% % 37.4% % 32.1% 30.4% Sonus Networks, Inc 0.7x 0.7x 1.7x 1.9x 2.9x % -5.6% -2.1% -1.4% 0.8% % -9.8% -5.8% SouFun Holdings Ltd. 3.1x 4.1x 5.4x 4.9x 6.2x 7.3x 9.1x 11.2x 9.8x 12.2x 36.1% 20.6% 25.1% % 42.9% 44.9% 47.9% 49.7% 50.7% Stamps.com 2.9x 3.2x 3.1x 4.3x 4.8x 15.7x 15.3x 13.8x 17.3x 18.3x 17.1% 16.2% 13.9% 11.6% 13.5% 18.7% 20.6% 22.3% 24.7% 26.3% Synacor, Inc 1.7x 1.0x 0.9x 0.4x 0.4x 20.6x 13.1x 10.9x 6.0x 6.8x % % 1.7% 8.4% 7.6% 7.9% % Tencent Holdings 9.4x 9.2x 8.7x 8.1x 9.8x 21.6x 21.9x 21.8x 21.0x 26.5x 49.4% % 45.1% 43.4% 42.1% % 37. TheStreet.com, Inc. 0.2x 0.3x 0.4x 0.4x 0.4x % -12.1% -12.2% -10.6% -4.5% % -4.5% -2.6% -3.3% Travelzoo 2.0x 1.5x 1.8x 2.2x 2.4x 7.9x 6.7x 8.6x 11.7x 13.8x 16.7% 5.4% 1.9% 2.2% 2.3% 25.9% % 19.2% 17.4% Tree.Com, Inc. 1.5x 1.4x 1.4x 1.6x 1.5x x 33.1x -6.9% 14.9% 41.8% 71.1% 108.9% -21.9% -14.7% % 4.5% Tremor Video, Inc x 3.8x % % -15.3% -9.6% -5.5% -1.4% TripAdvisor Inc 7.1x 6.9x 8.4x 10.3x 12.1x 17.0x 16.3x 20.8x 25.6x 31.1x % 19.8% 20.5% 22.8% 41.9% 42.1% 40.6% 40.1% 39. Trulia, Inc. 11.4x 6.7x 8.9x 10.1x 13.3x % 87.8% 81.1% -15.6% -12.6% -10.3% -5.3% -0.7% Tucows Inc. 0.5x 0.5x 0.6x 0.7x 0.8x 7.1x 7.4x 9.5x 11.9x 15.1x 20.5% % 14.8% 12.2% 7.1% 7.3% 6.4% 5.5% 5. ValueClick, Inc. 2.2x 2.2x 3.0x 2.9x 2.3x 7.6x 7.7x 9.9x 9.4x 7.3x % % 13.6% 28.4% 28.8% 30.3% 31.1% 31.8% VeriSign 8.1x 6.5x 7.0x 6.8x 6.8x 14.8x 11.7x 11.9x 11.1x 11.0x 13.6% 13.4% 13.2% 13.6% 13.3% 54.6% 55.6% 58.5% 60.7% 61.9% VistaPrint 1.4x 1.2x 1.3x 1.5x 1.7x 12.6x 12.5x 13.1x 15.6x 18.4x 24.9% 23.3% 19.8% 16.3% 14.4% 10.9% 9.8% 9.6% 9.5% 9.1% WebMD Health Corp. 1.1x 1.1x 1.4x 2.3x 2.7x 8.0x 11.6x 28.8x 27.0x 25.1x -12.4% -15.4% -15.9% -10.9% -3.4% 14.1% 9.4% 4.9% 8.5% 10.9% 72

74 THE SEG INTERNET INDEX COMPANIES KEY METRICS SEG Internet Index Company EV/Revenue EV/EBITDA TTM Revenue Growth EBITDA Margin 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 XO Group 1.1x 1.0x 1.2x 1.5x 1.7x 8.2x 7.0x 8.0x 8.8x 10.0x 8.7% 5.8% 3.9% 2.5% 3.1% 13.2% 14.3% 14.8% 16.5% 17.4% Xoom x 6.3x 8.4x x 52.3% % -4.5% -3.5% -2.3% 4.3% Yahoo! Inc. 3.4x 2.9x 4.1x 5.0x 5.5x 13.0x 10.9x 15.4x 18.6x 20.8x -10.6% -4.2% % -3.1% 26.2% 26.6% 26.4% 27.1% 26.6% Yandex 8.6x 8.1x 8.0x 8.4x 10.3x 19.7x 18.5x 18.5x 19.1x 23.4x 54.7% 48.9% 43.6% 40.3% 37.1% 43.7% % 43.8% 44.2% Yelp, Inc. 12.3x 9.0x 9.3x 11.6x 18.2x % 65.2% % -12.6% -9.3% -8.3% -2.8% -1.2% Youku 8.4x 10.6x 9.6x 7.9x 8.4x x 504.1x x 107.3% 98.3% % 95.8% -0.9% 1.5% 1.9% -0.5% 2.5% YuMe, Inc x x 32.2% 32.2% 70.3% % -12.7% 8.5% 7.1% 6. YY, Inc x 4.8x 6.5x 9.8x x 29.1x 32.6x 46.3x % 151.5% 132.1% 3.7% 13.3% 16.5% % Zillow 12.3x 6.6x 9.7x 12.8x 19.5x 123.8x 62.1x 91.4x 210.1x % 83.7% 76.9% 71.3% 69.9% 9.9% 10.7% 10.6% 6.1% -1.6% Zynga, Inc. 0.9x 0.5x 1.0x 1.1x 1.2x x 9.5x 7.8x 43.1% 25.1% 12.4% 0.5% -11.8% % 11.7%

75 THE SEG SOFTWARE INDEX METRICS BY PRODUCT CATEGORY Billing & Service Management 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 1.3x 1.5x 1.9x 1.9x 2.3x EV/EBITDA 8.0x 8.2x 8.4x 8.3x 8.7x EV/Earnings 15.9x 17.1x 15.4x 14.2x 17.2x Gross Profit Margin % 59.4% 58.4% 58.3% EBITDA Margin 18.8% 19.8% 20.7% 18.7% 18.4% Net Income Margin 11.7% 12.1% % 9.8% TTM Revenue Growth (YoY) 9.5% 10.4% 10.4% 8.9% 16.9% TTM EBITDA Growth (YoY) 10.2% 15.7% 14.5% 9.8% 11.6% TTM Earnings Growth (YoY) Y) 49% 4.9% -5.6% 56% -7.6% 76% 67% 6.7% 24.5% Current Ratio Cash as Percent of Market Cap 21.6% 21.8% % 19.2% Enterprise Value Growth (YoY) % 10.2% 21.5% 22.6% Enterprise Resource Planning 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.1x 2.2x 2.3x 2.5x 2.5x EV/EBITDA 9.2x 9.1x 10.1x 12.1x 12.2x EV/Earnings 15.2x 15.7x 22.9x 30.7x 28.7x Gross Profit Margin 75.4% 75.6% 75.8% 76.2% 76.6% EBITDA Margin 23.2% 23.1% 22.8% 22.4% 22.2% Net Income Margin 15.6% 14.6% 11.5% 7.9% 7.7% TTM Revenue Growth (YoY) 4.7% 3.4% 2.6% 1.5% 2.2% TTM EBITDA Growth (YoY) 5.5% 8.2% 4.2% 0.3% 0.1% TTM Earnings Growth (YoY) Y) -20.9% -24.7% -10.4% -12.3% -1.8% 18% Current Ratio Cash as Percent of Market Cap 13.1% 13.8% 12.7% 13.2% 15.6% Enterprise Value Growth (YoY) 3.2% 2.7% 9.7% 18.3% 8.7% IT Conglomerates 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.8x 2.5x 2.5x 2.9x 2.7x EV/EBITDA 8.4x 8.0x 9.0x 8.7x 8.3x EV/Earnings 14.4x 13.7x 14.7x 14.2x 13.5x Gross Profit Margin 71.6% 71.4% 71.2% 71.6% 71.9% EBITDA Margin 36.1% 34.6% 33.8% 33.8% 34.3% Net Income Margin % 17.4% 17.6% 17.8% TTM Revenue Growth (YoY) 1.5% 1.4% 0.5% 0.2% 1.2% TTM EBITDA Growth (YoY) 0.5% -0.6% 0.9% 2.4% -0.3% TTM Earnings Growth (YoY) Y) -4.1% 41% % 16.9% -7.9% 79% Current Ratio Cash as Percent of Market Cap 19.6% 20.9% 19.2% 21.6% 26.1% Enterprise Value Growth (YoY) 9.4% 2.4% 1.6% 1.7% 4.1% Business Intelligence 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 3.7x 3.2x 3.4x 3.0x 3.3x EV/EBITDA 25.6x 17.5x 15.8x 16.5x 17.1x EV/Earnings 47.0x 30.9x 34.6x 25.2x 34.0x Gross Profit Margin 73.9% 73.4% 72.8% 72.3% 71.8% EBITDA Margin 16.5% 14.7% % 13.3% Net Income Margin 7.9% 7.8% 6.1% 9.5% 8.9% TTM Revenue Growth (YoY) 13.8% 13.2% 11.8% 13.1% 14.2% TTM EBITDA Growth (YoY) 8.4% 0.6% % -22.8% TTM Earnings Growth (YoY) % -7.5% -6.1% -75.4% Current Ratio Cash as Percent of Market Cap 13.2% 18.8% 15.7% 13.4% 11.2% Enterprise Value Growth (YoY) 1.5% -9.3% -7.2% -9.1% 21. Financial & Accounting 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.9x 2.9x 3.1x 3.3x 3.3x EV/EBITDA 9.8x 9.8x 10.5x 11.3x 12.0x EV/Earnings 20.1x 20.3x 22.8x 24.4x 28.0x Gross Profit Margin 58.7% 55.3% 54.6% 55.7% 56.7% EBITDA Margin % 27.5% 26.6% 26.1% Net Income Margin % 12.6% 12.6% 11.2% TTM Revenue Growth (YoY) 17.2% 13.8% 8.6% 10.7% 9.5% TTM EBITDA Growth (YoY) 6.6% 4.1% 2.9% 5.3% 8.2% TTM Earnings Growth (YoY) -22.6% -22.2% -17.4% % Current Ratio Cash as Percent of Market Cap 9.4% 6.5% 5.8% 7.9% 8. Enterprise Value Growth (YoY) 14.6% 19.8% % 22.9% Mobile Solutions/Content 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 3.2x 2.5x 2.7x 2.8x 3.0x EV/EBITDA 13.8x 11.9x 20.6x 13.2x 13.5x EV/Earnings 22.2x 21.4x 40.1x 50.5x 62.9x Gross Profit Margin % 55.1% 54.2% 54.4% 4% EBITDA Margin 7.8% 6.4% 4.5% 7.9% 8. Net Income Margin -0.4% -5.1% -3.1% -2.7% 2.3% TTM Revenue Growth (YoY) 44.9% 48.1% 44.5% 24.6% 13.2% TTM EBITDA Growth (YoY) -1.6% -20.3% 13.7% 13.9% 10.7% TTM Earnings Growth (YoY) % 33.7% 17.5% 70.5% Current Ratio Cash as Percent of Market Cap 13.3% 10.7% 8.2% 10.5% 10.9% Enterprise Value Growth (YoY) -20.9% -9.1% -18.9% -20.8% 8.6% Development Platforms 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.5x 2.5x 2.5x 2.6x 2.6x EV/EBITDA 8.2x 9.6x 9.1x 10.1x 14.2x EV/Earnings 13.6x 16.6x 17.1x 14.2x 13.6x Gross Profit Margin 77.8% 77.6% 77.9% 78.1% 77.7% EBITDA Margin 24.7% 23.5% 21.1% 20.3% 20.4% Net Income Margin 13.7% 13.8% 14.3% 12.6% 11.2% TTM Revenue Growth (YoY) 3.5% 1.6% % -0.3% TTM EBITDA Growth (YoY) % % -5.5% TTM Earnings Growth (YoY) 3.9% % 9.5% 15.7% Current Ratio Cash as Percent of Market Cap 21.5% 22.1% 19.8% 20.2% 17.4% Enterprise Value Growth (YoY) 6.5% -1.7% 0.1% % Gaming 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 1.0x 1.0x 1.1x 1.3x 1.7x EV/EBITDA 9.1x 8.0x 7.1x 9.4x 11.3x EV/Earnings 12.1x 20.2x 16.8x 20.5x 43.6x Gross Profit Margin 61.6% 61.9% 64.7% 65.3% 66.5% EBITDA Margin 14.9% 15.7% 14.9% 15.4% 14.6% Net Income Margin % 4.5% 4.4% 4.1% TTM Revenue Growth (YoY) 2.2% 0.1% 7.4% 15.1% 14.9% TTM EBITDA Growth (YoY) -26.8% -12.5% 6.3% 57.8% 52.8% TTM Earnings Growth (YoY) -29.2% -24.8% -24.5% -14.8% -9.5% Current Ratio Cash as Percent of Market Cap 31.4% 29.9% 28.7% 22.1% 19.4% Enterprise Value Growth (YoY) -10.5% -12.3% -1.3% 27.1% 65.7% Networking & Network Perf Mgmt 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 3.0x 3.0x 2.8x 2.7x 2.8x EV/EBITDA 16.4x 14.9x 15.3x 17.0x 17.0x EV/Earnings 25.8x 26.9x 29.8x 21.0x 22.9x Gross Profit Margin 70.7% 70.7% 70.4% 70.5% 70.6% EBITDA Margin 16.3% % % Net Income Margin 8.3% 8.7% 6.5% 5.4% 0.5% TTM Revenue Growth (YoY) 17.3% 14.6% 15.2% % TTM EBITDA Growth (YoY) 17.9% 22.6% 15.6% 8.2% -2. TTM Earnings Growth (YoY) -19.6% 16.9% 27.9% 27.1% 2.3% Current Ratio Cash as Percent of Market Cap 17.9% 16.9% 14.4% 17.2% 20.4% Enterprise Value Growth (YoY) 7.1% -7.2% -4.3% 2.2% 8.7% Engineering & PLM 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.6x 2.5x 2.7x 2.7x 2.8x EV/EBITDA 12.1x 11.8x 13.4x 12.4x 13.8x EV/Earnings 23.3x 23.2x 20.0x 19.6x 23.0x Gross Profit Margin 84.1% 83.4% 83.3% 83.4% 83.6% EBITDA Margin 20.5% 20.6% 20.7% 20.5% 20.3% Net Income Margin 11.4% 10.6% 10.8% 10.4% 10.8% TTM Revenue Growth (YoY) 13.2% % 11.7% 8.4% TTM EBITDA Growth (YoY) 20.8% 17.3% 10.5% 11.3% 10.1% TTM Earnings Growth (YoY) -38.8% -14.9% % 0.1% Current Ratio Cash as Percent of Market Cap 16.3% 14.6% 13.9% 14.9% 15.5% Enterprise Value Growth (YoY) % 21.1% 27.4% 32.9% Healthcare 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.2x 2.1x 2.1x 2.1x 2.5x EV/EBITDA 12.8x 11.3x 14.8x 17.6x 16.1x EV/Earnings 37.9x 41.7x 34.2x 37.3x 34.4x Gross Profit Margin 55.1% 55.4% 55.7% 54.5% 53.6% EBITDA Margin 20.6% 18.5% 13.4% 14.1% 14.3% Net Income Margin % 1.9% 1.7% 1.7% TTM Revenue Growth (YoY) 24.2% 19.6% 10.7% % TTM EBITDA Growth (YoY) % -0.2% -16.8% -19.9% TTM Earnings Growth (YoY) % -10.8% 22.5% 229.5% Current Ratio Cash as Percent of Market Cap 8.1% 7.2% 7.1% 5.8% 5.6% Enterprise Value Growth (YoY) -25.5% -17.3% % 9.3% Security 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 4.2x 3.1x 3.5x 4.5x 4.9x EV/EBITDA 11.5x 11.9x 20.7x 16.7x 12.7x EV/Earnings 18.1x 14.2x 17.6x 18.0x 20.7x Gross Profit Margin % 76.7% 76.9% EBITDA Margin 18.4% 17.1% 8.1% 7.3% 7.5% Net Income Margin 9.4% 12.3% 6.2% 2.1% 2.4% TTM Revenue Growth (YoY) 22.8% 23.9% 23.8% 21.8% 21.2% TTM EBITDA Growth (YoY) 8.4% 8.7% 4.6% -18.6% -25.4% TTM Earnings Growth (YoY) -7.5% 1.1% 6.5% 21.1% 33. Current Ratio Cash as Percent of Market Cap 14.7% 14.6% 12.8% 12.1% 9.4% Enterprise Value Growth (YoY) 9.1% 0.7% 7.7% 10.3% 46.7% 74

76 THE SEG SOFTWARE INDEX METRICS BY PRODUCT CATEGORY Storage, Data Mgmt & Integration 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.5x 2.3x 2.4x 2.4x 2.7x EV/EBITDA 9.2x 8.4x 9.2x 8.8x 8.9x EV/Earnings 15.2x 14.5x 15.4x 16.9x 15.5x Gross Profit Margin 73.7% 72.4% 72.6% 72.3% 72.8% EBITDA Margin 23.9% 23.8% 22.2% 21.9% 22.2% Net Income Margin 12.8% 12.7% 11.5% 10.7% 10.9% TTM Revenue Growth (YoY) 6.3% 6.5% 4.8% 4.1% 3.3% TTM EBITDA Growth (YoY) % 3.9% 3.4% -0.3% TTM Earnings E i Growth G (YoY) Y) -11.4% -9.9% 99% % 57% 04% 0.4% Current Ratio Cash as Percent of Market Cap 19.6% 20.9% 22.1% 21.7% 20.6% Enterprise Value Growth (YoY) 7.8% -1.1% -9.1% -0.8% 13. Vertical - Other 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.9x 2.9x 3.0x 3.2x 3.6x EV/EBITDA 21.2x 21.3x 22.0x 22.1x 20.8x EV/Earnings 47.5x 39.8x 40.9x 45.5x 51.8x Gross Profit Margin 54.6% 54.2% 53.8% 53.5% 53.2% EBITDA Margin 14.3% % 14.4% 15.5% Net Income Margin 6.2% 5.7% 5.7% 5.5% 5.5% TTM Revenue Growth (YoY) % 21.3% % TTM EBITDA Growth (YoY) % 1.1% 11.2% 18.1% TTM Earnings Growth (YoY) Y) -14.5% 12.5% 22.4% -0.5% 05% 21.9% Current Ratio Cash as Percent of Market Cap 10.3% 11.2% 11.3% 9.4% 7.9% Enterprise Value Growth (YoY) 15.6% 7.5% 8.4% 50.5% 68. Supply Chain Mgmt & Logistics 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.5x 2.9x 3.3x 3.4x 4.1x EV/EBITDA 10.5x 12.7x 14.5x 15.0x 17.1x EV/Earnings 24.8x 33.1x 34.1x 36.0x 33.9x Gross Profit Margin 65.6% 6% % 6% 67.7% 7% 67.7% 7% EBITDA Margin 17.1% 16.6% % 19.2% Net Income Margin 10.4% 10.4% 10.5% 10.4% 11.1% TTM Revenue Growth (YoY) 15.9% 11.2% 11.3% 9.3% 10.2% TTM EBITDA Growth (YoY) 31.6% % % TTM Earnings Growth (YoY) -18.2% % -10.6% 19.7% Current Ratio Cash as Percent of Market Cap 10.8% 9.3% 8.1% 6.2% 6.1% Enterprise Value Growth (YoY) 40.9% 38.4% 28.9% 31.7% 40.4% Systems Management 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 6.9x 5.7x 5.6x 5.0x 5.4x EV/EBITDA 26.6x 24.6x 23.0x 20.9x 19.7x EV/Earnings 41.2x 39.3x 37.6x 34.7x 34.8x Gross Profit Margin 85.8% 85.8% 85.6% 85.5% 85.6% EBITDA Margin 25.9% % 23.8% 24.2% Net Income Margin 16.7% 15.5% 14.9% 14.1% 13.8% TTM Revenue Growth (YoY) 18.7% 17.4% 17.2% 16.1% 16.4% TTM EBITDA Growth (YoY) 13.3% % 15.1% 10.1% TTM Earnings Growth (YoY) -15.8% % -8.8% 0.4% Current Ratio Cash as Percent of Market Cap 9.3% 10.5% % 11.5% Enterprise Value Growth (YoY) 33.2% 7.8% 4.1% -10.3% -9. Vertical - Finance 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 3.2x 3.0x 3.4x 3.8x 3.7x EV/EBITDA 10.6x 9.4x 10.7x 11.4x 12.6x EV/Earnings 26.0x 23.3x 24.1x 23.2x 24.3x Gross Profit Margin 45.4% 44.3% 43.8% 43.3% 43.2% EBITDA Margin 26.2% 26.3% 26.5% 27.3% 26. Net Income Margin 10.4% % 10.3% 11.3% TTM Revenue Growth (YoY) 6.3% 7.1% 6.7% 7.6% 7.4% TTM EBITDA Growth (YoY) 7.9% 11.2% 8.8% % TTM Earnings Growth (YoY) 1.3% -3.3% -0.9% -2.6% -8.4% Current Ratio Cash as Percent of Market Cap % % 6.9% Enterprise Value Growth (YoY) 2.7% -4.4% 0.9% 20.9%

77 THE SEG SaaS INDEX METRICS BY PRODUCT CATEGORY CRM & Marketing 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 4.7x 3.4x 2.7x 2.7x 4.0x EV/EBITDA 37.1x 30.3x 26.6x 29.8x 106.5x EV/Earnings 71.9x 28.4x 35.6x 52.7x 273.3x Gross Profit Margin 71.1% % 70.9% 71. EBITDA Margin 4.4% 3.1% 2.8% 2.2% 2.1% Net Income Margin -1.4% -8.9% -8.9% -9.8% -6.7% TTM Revenue Growth (YoY) 33.2% 36.1% 37.2% 26.7% 27.3% TTM EBITDA Growth (YoY) -9.4% -11.1% -34.4% -29.3% -47.3% TTM Earnings E i Growth G (YoY) Y) 52.5% 5% 34.3% 3% 80.3% 71.7% 7% 76.6% 6% Current Ratio Cash as Percent of Market Cap 9.1% 14.7% 21.9% 19.3% 14.1% Enterprise Value Growth (YoY) 7.5% 23.3% -20.1% -29.1% -8.4% Other SaaS 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 4.8x 4.8x 4.1x 5.8x 8.8x EV/EBITDA 20.5x 20.3x 26.4x 30.2x 33.9x EV/Earnings 5.0x 9.9x 12.5x 15.6x 18.0x Gross Profit Margin 71.5% 71.2% 71.2% 71.7% 72.2% EBITDA Margin Net Income Margin -7.7% % -4.4% -4.9% TTM Revenue Growth (YoY) 18.8% 18.6% % 21.5% TTM EBITDA Growth (YoY) % % TTM Earnings Growth (YoY) Y) 96% 9.6% 13.8% 59% 5.9% 10.9% 5 5. Current Ratio Cash as Percent of Market Cap 12.5% 13.2% % 8.1% Enterprise Value Growth (YoY) % % 61. ERP & Supply Chain 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 5.5x 7.0x 6.6x 7.1x 9.3x EV/EBITDA 67.2x 63.6x 85.0x 86.7x 108.3x EV/Earnings 131.3x 118.6x 283.7x 331.2x 478.1x Gross Profit Margin % 69.3% 68.6% 6% 68.1% EBITDA Margin 6.7% 7.2% 3.2% 0.2% -0.6% Net Income Margin 1.8% 2.7% -1.4% -3.8% -4.3% TTM Revenue Growth (YoY) 26.3% 25.3% 31.8% 33.9% 37.7% TTM EBITDA Growth (YoY) 1.1% -4.8% % -53.2% TTM Earnings Growth (YoY) 7.2% 179.4% 126.5% 110.2% 41.8% Current Ratio Cash as Percent of Market Cap 8.5% 8.7% 7.5% 9.4% 7.6% Enterprise Value Growth (YoY) 76.3% 66.7% 64.8% 94.4% 68.1% Vertically Focused 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 5.7x 4.7x 5.0x 5.0x 5.7x EV/EBITDA 30.4x 25.5x 27.3x 25.7x 28.3x EV/Earnings 23.7x 30.7x 63.2x 137.6x 119.5x Gross Profit Margin 61.1% 71.4% 71.3% 71.8% 67.7% EBITDA Margin 15.3% 14.6% 16.4% % Net Income Margin 16.3% % 3.8% 3.3% TTM Revenue Growth (YoY) % 21.6% 21.5% 22.6% TTM EBITDA Growth (YoY) % 6.5% 10.2% 8.5% TTM Earnings Growth (YoY) -38.6% 1.1% 3.4% 28.2% -36.1% Current Ratio Cash as Percent of Market Cap 9.7% 7.8% 8.3% 5.4% 8.8% Enterprise Value Growth (YoY) 58.5% 25.7% 26.3% 21.5% 26.9% Workforce Management 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 8.3x 10.5x 10.7x 8.5x 10.4x EV/EBITDA 80.0x 69.4x 63.7x 61.9x 72.9x EV/Earnings 368.3x 243.2x 180.5x 165.7x 189.8x Gross Profit Margin 56.5% 56.6% 57.4% 58.5% 60.2% EBITDA Margin % -17.8% -16.1% -14.4% Net Income Margin -27.5% -27.9% -29.2% -27.7% -28.2% TTM Revenue Growth (YoY) 28.7% 29.1% 23.4% 43.1% 42.2% TTM EBITDA Growth (YoY) -16.6% -42.8% -32.9% -17.9% -32.3% TTM Earnings Growth (YoY) -63.6% 17.9% 25.4% Current Ratio Cash as Percent of Market Cap % 3.8% 13.7% 10.3% Enterprise Value Growth (YoY) 87.1% 62.3% 49.2% 42.8% 75.3% 76

78 THE SEG INTERNET INDEX METRICS BY PRODUCT CATEGORY Ad Tech & Lead Generation 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 1.8x 2.2x 2.0x 2.5x 2.5x EV/EBITDA 13.3x 12.0x 14.9x 14.9x 22.1x EV/Earnings 29.6x 28.0x 21.9x 25.4x 25.7x Gross Profit Margin 65.1% 64.8% 64.5% 64.5% 63.5% EBITDA Margin 12.5% 12.6% 12.9% 12.6% 11.3% Net Income Margin 2.7% 3.3% % 1.7% TTM Revenue Growth (YoY) 33.4% 31.9% 28.8% 26.8% 17.9% TTM EBITDA Growth (YoY) 4.9% 4.3% % 26.6% TTM Earnings Growth (YoY) Y) -9.3% 93% -17.8% -11.5% 46% 4.6% 129.3% Current Ratio Cash as Percent of Market Cap 20.8% 16.4% 19.1% 18.3% 14.3% Enterprise Value Growth (YoY) -3.6% 2.7% 8.8% 39.1% 41. Infrastructure 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 1.1x 1.0x 1.7x 1.6x 1.4x EV/EBITDA 14.2x 10.4x 11.9x 13.6x 14.3x EV/Earnings 18.2x 20.5x 23.3x 35.3x 50.4x Gross Profit Margin 63.7% 63.1% 61.6% 61.2% 62.2% EBITDA Margin 8.1% 7.5% % 7.1% Net Income Margin 3.4% 1.8% -0.8% 0.4% 0.3% TTM Revenue Growth (YoY) 11.8% 10.9% 9.2% 8.8% 1.7% TTM EBITDA Growth (YoY) % -18.7% -16.2% -19.5% TTM Earnings Growth (YoY) Y) 23.1% 59.7% 51.9% 64.6% 6% -25.4% Current Ratio Cash as Percent of Market Cap 24.8% 27.3% 28.4% 27.5% 22.1% Enterprise Value Growth (YoY) -12.7% 1.6% -2.8% -1.6% 19.5% Commerce 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 0.9x 1.2x 0.9x 0.9x 1.1x EV/EBITDA 14.9x 13.6x 10.5x 15.1x 15.6x EV/Earnings 17.1x 18.8x 13.9x 23.8x 24.5x Gross Profit Margin 37.4% 38.6% 38.4% 38.5% 38.9% EBITDA Margin 8.4% 8.4% 7.6% 7.5% 6.7% Net Income Margin 3.1% 4.5% 4.6% 4.9% 4.8% TTM Revenue Growth (YoY) 14.2% 15.1% 17.5% 17.7% 15.4% TTM EBITDA Growth (YoY) 12.8% 19.1% 25.7% % TTM Earnings Growth (YoY) -38.1% % -12.4% 1.5% Current Ratio Cash as Percent of Market Cap 20.6% 20.3% 18.5% 15.5% 13.5% Enterprise Value Growth (YoY) -14.4% 6.2% -6.3% % Services 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 3.1x 3.3x 3.5x 3.4x 4.3x EV/EBITDA 13.3x 15.1x 14.2x 19.7x 23.9x EV/Earnings 34.6x 40.9x 50.2x 74.6x 117.8x Gross Profit Margin 69.6% 6% 70.5% 71.1% 1% 71.8% 71.8% EBITDA Margin 9.6% 9.4% 9.6% 7.1% 5.6% Net Income Margin 4.3% 3.2% 3.6% 0.4% 1. TTM Revenue Growth (YoY) 46.7% 32.7% 41.8% 40.4% 38.1% TTM EBITDA Growth (YoY) 7.9% 10.9% 23.5% 30.6% 59.7% TTM Earnings Growth (YoY) -4.9% -33.1% -7.8% 46.5% 76. Current Ratio Cash as Percent of Market Cap 15.1% % % Enterprise Value Growth (YoY) -3.6% -10.8% 16.1% 65.8% 102.8% Content & Media 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 1.3x 1.4x 1.6x 2.3x 2.7x EV/EBITDA 10.8x 10.9x 15.4x 13.8x 20.8x EV/Earnings 19.2x 22.0x 18.9x 22.6x 21.8x Gross Profit Margin 53.9% 52.5% 52.4% 52.4% 52.3% EBITDA Margin 14.1% 14.1% 14.8% 15.5% 15.9% Net Income Margin % 1.6% 2.2% 2.4% TTM Revenue Growth (YoY) 12.3% 10.5% 12.6% 12.1% 14.1% TTM EBITDA Growth (YoY) -1.2% 4.8% 19.5% 16.6% 23.1% TTM Earnings Growth (YoY) 34.3% 9.4% 0.4% -0.9% 70.5% Current Ratio Cash as Percent of Market Cap 26.9% 16.2% 17.2% 16.8% 14.4% Enterprise Value Growth (YoY) -21.9% -11.6% 12.8% 23.5% 69.5% Social 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 12.1x 9.0x 9.3x 10.0x 14.0x EV/EBITDA 34.3x 39.6x 38.9x 37.1x 38.6x EV/Earnings 98.0x 62.9x 44.2x 43.6x 53.1x Gross Profit Margin % 73.2% 72.7% 74.9% EBITDA Margin 8.2% 12.9% 14.7% 16.8% 17. Net Income Margin 1.8% 6.3% 2.2% 3.5% 9.1% TTM Revenue Growth (YoY) 57.3% 50.9% 49.3% 47.2% 41.4% TTM EBITDA Growth (YoY) -9.3% -2.2% 18.4% 45.1% 79.2% TTM Earnings Growth (YoY) -39.4% -44.9% -62.2% -67.3% -65.3% Current Ratio Cash as Percent of Market Cap 17.1% 18.7% 14.5% 16.6% 11.5% Enterprise Value Growth (YoY) n/a n/a n/a -3.8% 56.7% Gaming 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.1x 2.4x 2.7x 2.7x 2.8x EV/EBITDA 3.4x 4.3x 5.8x 5.9x 7.7x EV/Earnings 8.4x 7.1x 7.1x 8.4x 11.2x Gross Profit Margin 71.9% 69.4% 71.2% 71.3% 72.5% EBITDA Margin 43.4% 38.6% 36.3% 38.6% 35.4% Net Income Margin 28.9% 27.3% 24.8% 26.7% 27.7% TTM Revenue Growth (YoY) % 21.9% 21.9% 19.8% TTM EBITDA Growth (YoY) 9.7% 4.2% 13.9% 13.4% 18. TTM Earnings Growth (YoY) 1.1% -12.8% -13.5% -12.6% -13.2% Current Ratio Cash as Percent of Market Cap 33.3% 40.5% 36.7% 33.5% 29.8% Enterprise Value Growth (YoY) -30.8% % 22.8% 63. Travel 3Q12 4Q12 1Q13 2Q13 3Q13 EV/Revenue 2.4x 2.7x 2.8x 3.4x 4.6x EV/EBITDA 13.5x 15.7x 16.2x 18.2x 21.2x EV/Earnings 23.7x 20.7x 25.2x 35.3x 44.3x Gross Profit Margin 79.8% 79.6% 79.4% 79.7% 80.7% EBITDA Margin 21.9% 19.6% 18.1% 17.9% 16.8% Net Income Margin 12.9% 11.5% 9.5% 9.5% 9.1% TTM Revenue Growth (YoY) 21.2% 20.2% 19.3% % TTM EBITDA Growth (YoY) 2.8% -1.4% -0.6% 2.1% 1. TTM Earnings Growth (YoY) -40.7% % 29.2% 601. Current Ratio Cash as Percent of Market Cap 15.5% % 18.7% 15.3% Enterprise Value Growth (YoY) -30.5% -23.5% %

79 3Q13 PUBLIC SELLERS Buyer Seller Purchase Price (mm) Enterprise Value (mm) EV/Rev EV/EBITDA TTM Rev Growth Cisco Systems, Inc. (NasdaqGS:CSCO) Sourcefire, Inc. (NasdaqGS:FIRE) $2,394.8 $2, x 118.8x 26.7% Vista Equity Partners The Active Network, Inc. (NYSE:ACTV) $1,050.0 $ x 71.4x 15.6% Vitera Healthcare Solutions, LLC Greenway Medical Technologies, Inc. (NYSE:GWAY) $643.6 $ x - 8.7% 78

80 3Q13 MEGA DEALS Buyer Seller Purchase Price (mm) Enterprise Value (mm) EV/ Rev EV/ EBITDA TTM Rev Growth Cisco Systems, Inc. (NasdaqGS:CSCO) Sourcefire, Inc. (NasdaqGS:FIRE) $2,394.8 $2, x 118.8x 26.7% Davis + Henderson Corporation (TSX:DH) Harland Financial Solutions, Inc. $1,637.5 $1, x 18.5x - Thoma Bravo, LLC Digital Insight Corporation $1,025.0 $1, x % 5% Kohlberg Kravis Roberts & Co. L.P. Mitchell International, Inc. $1,000.0 $1, Vista (NYSEEquity KKR) Partners The Active Network, Inc. (NYSE:ACTV) $1,050.0 $ x 71.4x 15.6% Vista Equity Partners Omnitracs, Inc. $800.0 $ Vitera Healthcare Solutions, LLC Greenway Medical Technologies, Inc. (NYSE:GWAY) $643.6 $ x - 8.7% 79

81 3Q13 MOST ACTIVE BUYERS Buyer Seller Purchase Price (mm) Enterprise Value (mm) TTM Revenue (mm) EV / Revenue Apple Inc. (Nasdaq:AAPL) Embark, Inc Locationary Inc Matcha, Inc HelloFood Brasil Janamesa Serviços de Informática Ltda Megamenu Servicos de Busca Web Serviços Digitais LTDA IBM Corporation (NYSE:IBM) CSL International Ltd Daeja Image Systems Ltd Trusteer, Inc LexisNexis Risk Solutions, Inc. Enclarity, Inc Mapflow Limited WorldCompliance, Inc Thomson Reuters Corporation (TSX:TRI) Omnesys Technologies Private Limited SigmaGenix Services Limited Tradeweb, Foreign Exchange Options Bus Twitter, Inc. Locomatix Inc MoPub, Inc. $350.0 $ Wiredset LLC Vista Equity Partners Digital Technology International, LLC Omnitracs, Inc. $800.0 $ SAXOTECH, Inc The Active Network, Inc. (NYSE:ACTV) $1,050.0 $941.9 $ x Wall Street Media (OTCBB:WSCO) 360Fire.com CoastGuardNews.com Wall-Street.com, LLC $3.2 $ Yahoo! Inc. (NasdaqGS:YHOO) AdMovate, Inc Bignoggins Productions LLC IQ Engines, Inc Lexity, Inc Qwiki, Inc RockMelt, Inc Xobni Corporation

82 ABOUT SOFTWARE EQUITY GROUP Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions. Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value. Perhaps most important t are the relationships we've built and the industry reputation ti we enjoy. Software Equity Group is known and respected by publicly l traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports. Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, please contact Kris Beible, Director, Business Development (858) , [email protected]. CONTACT INFORMATION: Software Equity Group, L.L.C El Camino Real, Suite 320 San Diego, CA p: (858) The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ. This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. 81