2. 1
About Results International
Deep domain expertise in three inter-related sectors⊠⊠and broad industry networks
A market-leading corporate finance advisory firmâŠ
âą Founded in 1991
âą Entrepreneurial and owner-managed
âą 40 person team; 250+ completed transactions
âą Broad global network
âą Creative solutions
âą Senior level focus on every transaction
âŠwith global reach
3. 50%
60%
70%
80%
90%
100%
110%
120%
130%
Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
NASDAQ Comp Diversified Internet MarTech Data AdTech
Results International Global AdTech & MarTech Indices
2
10.4%
(5.1%)
16.7%
0.6%
(40.9%)
Last12monthssharepriceperformance
Q1 2015 Performance
Diversified Internet 6.2%
Nasdaq Comp 3.5%
Data 0.5%
MarTech (1.6%)
AdTech (18.9%)
Apr 14 May 14 Feb 15Jan 15Dec 14Nov 14Oct 14Aug 14Jul 14Jun 14 Sep 14 Mar 15
Note: Based on share prices as at 31st March 2015
Note: Indices weighted by market capitalisation
Sources: Capital IQ and Results analysis
5. AdTech & MarTech: Selected Stocks â Performance Since IPO
4
Company IPO date Description
Raised
($)
Indicative price
range ($)
IPO listing
price ($)
Day 1
increase
Current
increase(1)
Current
EV ($)
EV / Net
Revenue
2015E
EV / EBITDA
2015E
Mar-15 Hyperlocal ad targeting 75 10.5-12.5 11.5 (15.1%) (16.7%) 208 n.a. n.a.
Oct-14 Marketing automation 125 22.0-24.0 25.0 20.4% 59.6% 1,303 8.1x n.m.
Sept-14 Multi-channel ad server 75 n.a. 1.7 0.8% (9.0%) 164 n.a. n.a.
Jul-14
Programmatic video
DSP
44 7.0-8.0 7.0 64.3% 97.4% 411 5.1x n.m.
Jul-14
Multi-channel ad
network
70 n.a. 3.9 4.4% (23.7%) 287 4.4x 17.0x
Apr-14 SSP 102 15.0-17.0 15.0 33.9% 19.5% 659 3.7x 31.4x
Nov-13 Multi-channel network 33 n.a. 1.0 20.0% (72.0%) 46 1.1x 8.6x
Oct-13
DSP focused on
retargeting
251 27.0-29.0 31.0 14.2% 27.4% 2,138 6.6x 30.9x
Sep-13 DSP 116 27.0-29.0 29.0 93.4% (68.3%) 367 1.6x n.m.
Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (42.3%) 109 1.3x n.m.
Jun-13 Video ad network 75 11.0-13.0 10.0 (15.0%) (76.6%) 42 0.7x n.m.
May-13 Marketing automation 79 11.0-13.0 13.0 77.7% 97.1% 1,047 5.1x n.m.
Nasdaq
LSE
NYSE
AIM
Nasdaq
Nasdaq
NYSE
NYSE
Nasdaq
AIM
NYSE
Note: (1) Current increase from IPO price; Market data as of 31st March 2015
Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDA
Sources: Capital IQ and Results analysis
NYSE
6. 1.6 x
5.1 x
3.2 x
4.9 x
3.3 x
0.0 x
1.0 x
2.0 x
3.0 x
4.0 x
5.0 x
6.0 x
AdTech MarTech Data Diversified
Internet
Global AdTech/
MarTech
25.1%
26.3%
3.6%
11.9%
19.1%
-
5%
10%
15%
20%
25%
30%
AdTech MarTech Data Diversified
Internet
Global AdTech/
MarTech
AdTech & MarTech: Valuation Benchmarks
5
Revenue growth (2015-16E) EV / Net Revenue 2015E
(1) (1)
Note: (1) Global AdTech / MarTech represents the average of all stocks in AdTech, MarTech, Data & Diversified Internet, with no weighting applied
Note: EV = Enterprise Value; Financials calendarised to December year end
Note: Median values reported; exclude negative multiples
Note: See Selected Publicly Traded Companies (Slide 9) for details of companies included in each category
Source: Capital IQ & analyst reports
7. AdTech & MarTech: Global M&A Activity 2013-Q1 2015
6Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis
54
43
74
52
108
101
113
106
98
-
$1bn
$2bn
$3bn
$4bn
$5bn
$6bn
$7bn
0
20
40
60
80
100
120
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
Totaldiscloseddealvalue($bn)
Numberofdeals
Number of deals Total disclosed deal value ($bn)
8. AdTech & MarTech: Selected Deals in Q1 2015
Date Buyer Target EV ($m) EV / Revenue Company description Target location
Mar 15 100 4.3x Retargeting DSP
Mar 15 - - Cross-screen mobile DSP
Mar 15 - - Multi-channel optimisation & tracking mobile DSP
Mar 15 85 - Programmatic direct SSP
Mar 15 58 1.9x Mobile marketing optimisation
Mar 15 - - Personalised eCommerce search engine
Mar 15 - - Mobile ad network
Mar 15 195 5.6x DMP
Feb 15 - - Social commerce & networking
Feb 15 - - Creative optimisation & ad enablement
Feb 15 30 - App marketing SSP
Feb 15 - - Omni-channel shopper data & analytics
Feb 15 15 - Social media DSP
Jan 15 - - Data driven ad retargeting
Jan 15 - - eCommerce personalisation & recommendation
Jan 15 30 - Click-to-call mobile marketing & analytics
Jan 15 - - Ad exchange with DSP & SSP capabilities
Jan 15 125 6.3x B2B DMP
7
(1)
Note: (1) In certain cases EV/Revenue are estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to
100% shareholding plus net debt (incl. minority interest)
Sources: Press Releases, Capital IQ, Mergermarket, PitchBook, 451 Research and Results analysis
9. AdTech & MarTech: Selected Fundraisings in Q1 2015
Date Company Type of round
Funds
raised ($m)
Investor participation Company description
Company
headquarters
Mar 15 Series E 46 Battery Ventures, Intel Capital, and Iconiq Capital Social media management USA
Mar 15 Series B 24
Cheetah Mobile (lead investor), Avalon Ventures and Wellington
Management Co.
Social and mobile ad automation USA
Mar 15 Series D 35 Sapphire Ventures (lead investor), Foundation Capital and Polaris Partners Mobile analytics & marketing for apps USA
Mar 15 Series D 130
Fidelity (lead investor), Wellington Management Company LLP, Credit Suisse
NEXT Investors, Venrock, Institutional Venture Partners and private investors
Social media monitoring & analytics USA
Mar 15 Series C 45 Undisclosed Augmented reality mobile ads UK
Mar 15 Series C1 60 Alibaba (lead investor), SoftBank, GGV and Goldman Sachs Mobile app search engine USA
Mar 15 Series E 24 Silver Lake Waterman Social media listening & management USA
Feb 15 Series A 7 Highland Capital (lead investor), Endeavor Catalyst, Innova and NXTP Labs Data-driven mobile DSP UK
Feb 15 Series D 32
Adobe and Salesforce Ventures (lead investors), Cue Ball, Greycroft Partners,
Hillsven Capital and US Venture Partners
Content curation USA
Feb 15 Series A 11 Octopus Investments and Notion Capital Social eCommerce UK
Feb 15 Series D 31
Georgian Partners (lead investors), Bain Capital, Battery Ventures, Tenaya
Capital and Presidio Ventures
Tag management USA
Feb 15 Series C 16
Frog Capital (lead investor), Bertelsmann Digital Media Investments,
Greycroft, Sussex Place Ventures and Silicon Valley Bank
Affiliate marketing UK
Feb 15 Series E 117
Fidelity Management and Research Company (lead investors), Marker
Financial Advisors, Steadfast Capital, Advance Publications, Comcast
Ventures; Groupe Arnault, Yahoo Japan and private investors
Content recommendation engine Israel
Jan 15 Series B 27
Icon Ventures (lead investor), Performance Equity Management and Accel
Partners
Mobile app ad campaign analytics USA
Jan 15 Series B 21
StarVest Partners (lead investor), Citi Ventures, American Express Ventures and
Bain Capital Partners
Marketing automation USA
Jan 15 Series B 20
Fidelity Growth Partners Europe (lead investor), Magma Venture Partners and
Pitango Venture Capital
In-app mobile ad analytics Israel
Jan 15 Series D 55
Institutional Venture Partners (lead investor), Sequoia Capital, Greycroft
Partners and IDG Capital Partners
App data & analytics USA
Jan 15 Series C 14 Gimv, Partech and Elaia and BPI Video SSP France
8
Notes: (1) Raised a total âŹ12m Series C from the above investors and ÂŁ10m from Bank of China, HSBC, BNPP and BPI
Source: Press Releases, Capital IQ, Mergermarket, PitchBook and Results analysis
(1)
10. AdTech & MarTech: Selected Publicly Traded Companies
9
Source: Capital IQ, Market Data as of 31 March 2015. Note: Calendarised to December year end. Cap multiple at 20x EV/Revenue and 60x EV/EBITDA. Net debt is inclusive of minority interest and preferred equity. Net revenues have been used where appropriate. Blinkx - financials taken from Numis (May 2014) &
checked against company's financial results, market data taken from CapitalIQ; Criteo â financials taken from Jefferies (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; Marimedia â financials taken from N+1 Singer (Mar 15) & checked against company's financial
results, market data taken from CapitalIQ; Matomy Media - financials taken from Canaccord Genuity (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; Millennial Media â financials taken from Evercore (Sep 14) & checked against company's financial results, market
data taken from CapitalIQ; Rightster - financials taken from Cenkos (Sep 14) & checked against company's financial results, market data taken from CapitalIQ; Rocket Fuel â financials taken from BMO Capital Markets (Feb 15) & checked against company's financial results, market data taken from CapitalIQ;
Tremor Video â financials taken from Jefferies (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; TubeMogul â financials taken from BMO Capital Markets (Mar 15) & checked against company's financial results, market data taken from CapitalIQ;
YuMe â financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ; AOL â financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ;
Google â financials taken from RBC Capital Markets (Mar 15) & checked against company's financial results, market data taken from CapitalIQ; Yahoo! â financials taken from Deutsche Bank (Feb 15) & checked against company's financial results, market data taken from CapitalIQ
Valuation Metrics Operating Metrics
Price % of 52 Market Net Enterprise Net Revenue EBITDA Revenue Growth EBITDA Margin
Company (31-Mar-15) Week High Cap Debt Value CY2015 CY2016 CY2015 CY2016 CY14-15 CY15-16 CY2015 CY2016
AdTech
Blinkx plc 0.44 25.8% 176 (115) 62 0.4 x 0.4 x 1.5 x 1.2 x 16.3% 15.1% 30.2% 31.4%
Criteo SA 39.50 84.9% 2,435 (297) 2,138 6.6 x 4.5 x 30.9 x 20.3 x 69.6% 44.9% 21.2% 22.3%
Crossrider Plc 1.52 90.5% 240 (76) 164 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Marimedia Ltd. 2.10 80.0% 143 (25) 118 4.2 x 3.3 x 7.3 x 5.8 x 48.9% 25.1% 56.9% 57.3%
Marin Software Incorporated 6.29 49.7% 231 (65) 166 1.4 x 1.2 x n.m. n.m. 15.7% 17.0% (9.8%) (4.1%)
Matomy Media Group Ltd. 2.96 78.3% 281 6 287 4.4 x 3.7 x 17.0 x 8.8 x 20.3% 20.7% 26.2% 41.8%
MaxPoint Interactive, Inc. 9.58 85.2% 252 (44) 208 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
Millennial Media Inc. 1.45 20.3% 202 (48) 153 1.3 x 1.1 x n.m. n.m. 12.5% 23.6% (31.5%) (7.9%)
Opera Software ASA 8.04 61.2% 1,147 (75) 1,072 1.7 x 1.3 x 8.1 x 5.9 x 29.4% 28.0% 21.3% 22.8%
Rightster Group Plc 0.27 22.5% 52 (6) 46 1.1 x 0.7 x 8.6 x 2.8 x 220.0% 44.1% 12.5% 26.3%
Rocket Fuel Inc. 9.20 21.0% 387 (20) 367 1.6 x 1.3 x n.m. n.m. 71.7% 21.2% (15.5%) (9.1%)
The Rubicon Project, Inc. 17.92 77.2% 757 (97) 659 3.7 x 2.9 x 31.4 x 17.7 x 40.9% 28.6% 11.9% 16.4%
Tremor Video, Inc. 2.34 47.0% 120 (78) 42 0.7 x 0.5 x n.m. n.m. 7.3% 33.9% (28.6%) (13.1%)
TubeMogul, Inc. 13.82 58.0% 456 (45) 411 5.1 x 3.8 x n.m. n.m. 114.0% 34.9% (1.1%) (25.3%)
YuMe, Inc. 5.19 69.7% 173 (64) 109 1.3 x 1.1 x n.m. n.m. 20.1% 13.3% (3.6%) (5.1%)
MarTech
Bazaarvoice, Inc. 5.65 60.2% 449 (48) 401 2.0 x 1.8 x n.m. 32.3 x 9.9% 11.3% (0.4%) 5.5%
Brightcove Inc. 7.33 67.1% 240 (21) 218 1.6 x 1.5 x 36.2 x 23.2 x 6.7% 8.7% 4.5% 6.5%
Constant Contact, Inc. 38.21 88.5% 1,308 (163) 1,146 3.0 x 2.5 x 15.2 x 12.0 x 17.0% 16.8% 19.5% 21.1%
Demandware, Inc. 60.90 85.0% 2,338 (243) 2,096 9.0 x 6.7 x n.m. n.m. 45.5% 33.6% 4.5% 7.7%
HubSpot, Inc. 39.90 90.0% 1,427 (124) 1,303 8.1 x 6.4 x n.m. n.m. 39.2% 26.3% (22.2%) (15.9%)
Marketo, Inc. 25.62 71.9% 1,153 (106) 1,047 5.1 x 3.9 x n.m. n.m. 37.1% 31.1% (17.3%) (9.4%)
New Relic, Inc. 34.70 89.8% 1,839 (205) 1,635 12.1 x 9.2 x n.m. n.m. 40.3% 31.2% (26.7%) (12.2%)
Data
Acxiom Corporation 18.49 51.7% 1,429 169 1,598 1.5 x 1.5 x 7.4 x 6.5 x 0.3% 3.8% 20.6% 22.7%
Alliance Data Systems Corporation 296.25 98.2% 18,649 13,333 31,983 4.9 x 4.4 x 16.5 x 14.5 x 23.2% 11.7% 29.6% 30.1%
Experian plc 16.59 91.4% 16,143 3,840 19,983 4.1 x 3.9 x 11.7 x 11.2 x 1.1% 3.5% 34.8% 35.0%
Teradata Corporation 44.14 89.0% 6,602 (366) 6,236 2.3 x 2.2 x 9.2 x 8.4 x (1.5%) 3.4% 25.3% 26.8%
Diversified Internet
Amazon.com Inc. 372.10 95.6% 172,946 (1,327) 171,619 1.7 x 1.4 x 20.6 x 16.0 x 15.2% 17.5% 8.1% 8.9%
AOL Inc. 39.61 79.4% 3,202 (27) 3,175 1.7 x 1.8 x 7.7 x 7.2 x (0.9%) (3.0%) 22.7% 24.8%
eBay Inc. 57.68 94.7% 70,181 (2,471) 67,710 3.6 x 3.2 x 11.4 x 10.3 x 6.0% 10.8% 31.2% 31.2%
Facebook, Inc. 82.22 95.5% 231,126 (10,966) 220,160 12.9 x 9.7 x 21.1 x 16.0 x 37.4% 32.2% 60.9% 60.6%
Google Inc. 554.70 91.1% 379,997 (54,618) 325,379 6.2 x 5.4 x 12.3 x 11.1 x 22.1% 13.0% 49.9% 49.1%
Yahoo! Inc. 44.44 84.4% 41,835 (6,734) 35,101 8.0 x 8.1 x 46.8 x 55.3 x (0.6%) (2.1%) 17.0% 14.7%
25th percentile 1.6 x 1.4 x 8.3 x 7.1 x 7.9% 11.4% (3.0%) (4.8%)
Median 3.3 x 2.7 x 12.3 x 11.2 x 20.2% 19.1% 14.8% 18.8%
75th percentile 5.1 x 4.3 x 20.9 x 16.5 x 40.0% 30.5% 25.9% 29.3%
11. 10
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E: mwilliams@resultsig.com
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