Q4 2014 Market Snapshot

Q4 2014 Internet & Digital Media Market
Snapshot
Alex Hart
Robert Berstein
Frank Cordek
[email protected]
[email protected]
[email protected]
www.signalhill.com
B a l t i m o r e │ B a n g a l o r e │ B o s t o n │ M u m b a i │ N a s h v i l l e │ N e w Yo r k │ R e s t o n │ S a n F r a n c i s c o
Contents
Section I
Public Company Universe and Trading Statistics
Section II
Mergers and Acquisitions Activity
11
Section III
Private Placement Activity
18
Section IV
IPO Activity
23
Appendix A
Signal Hill Investment Banking
29
2
4
Quarterly Summary
Public Company Trading Statistics1
M&A Activity
8.0x
$12,000
Aggregate Deal Value ($M)2
6.6x
6.0x
4.8x
5.0x
4.8x
4.8x
3.8x
4.0x
3.4x
3.0x
3.3x
3.4x
2.9x
2.4x
2.4x
2.7x
2.5x
2.0x
2.1x
2.0x
1.7x
1.0x
120
104
93
91
91
100
$9,000
80
$6,000
60
40
24
$3,000
18
20
0.0x
$0
Dec '13
Dec '14
Dec '13
Internet Content and
Services
Dec '14
e-Commerce
Median
Dec '13
Dec '14
Interactive Marketing
Dec '13
Number of Deals3
EV / LTM Revenue
7.0x
0
Dec '14
Q3 2014
Marketing Services
Q4 2014
Q3 2014
Internet Content &
Services
Mean
Q4 2014
e-Commerce
Private Placement Activity4
Q3 2014
Q4 2014
Interactive Marketing &
Marketing Services
IPOs
$45
27
26
24
$2,000
30
$40
25
21
20
$1,500
14
13
15
$1,000
10
$500
$0
Q3 2014
Q4 2014
Internet Content &
Services
Q3 2014
Q4 2014
e-Commerce
Q3 2014
$34.84
$35
Number of Deals3
Aggregate Deal Value ($M)2
$2,500
$33.61
$29.00
$30
$25.30 $25.00
$22.43 $23.00
$25
$20.00
$19.85
$20
$13.50
$15
5
$10
0
$5
Q4 2014
$0
Interactive Marketing &
Marketing Services
ONDK
NEWR
MOMO
Offer Price
Source: Signal Hill Database of Core IDM Deals – Information collected from multiple industry sources
(1) Includes CY ’14 Estimates and ’13 Actuals
(2) Includes only values for which data is publicly available
(3) Includes only targets with significant North American operations
(4) Includes only transactions $10 million or greater
$15.00
$12.00
3
LC
Price as of 12/31/14
HUBS
W
Section I: Public Company Universe and
Trading Statistics
4
Signal Hill’s IDM Public Company Universe
Internet Content and Services
e-Commerce
5
Interactive Marketing
Marketing
Services
IDM Public Companies Stock Price Performance
LTM Sub-Sectors Performance vs. S&P 500
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
12/31/13
3/31/14
6/30/14
9/30/14
Signal Hill IDM Composite
Internet Content and Services
e-Commerce
Interactive Marketing
Marketing Services
S&P 500
Source: Capital IQ
6
12/31/14
Internet Content and Services
($ in millions, except per share amounts)
Price
Company
12/31/2014
Internet Content and Services
Microsoft
$46.45
Google
$530.66
Facebook
$78.02
Yahoo!
$50.51
LinkedIn
$229.71
Twitter
$35.87
TripAdvisor
$74.66
CoStar Group
$183.63
Yandex
$17.96
IAC/InterActiveCorp
$60.79
King Digital
$15.36
Zillow
$105.89
Yelp
$54.73
AOL
$46.17
Pandora
$17.83
Weibo
$14.24
WebMD
$39.55
TrueCar
$22.90
Zynga
$2.66
Townsquare Media
$13.20
Dice Holdings
$10.01
Monster Worldwide
$4.62
iDreamSky
$17.08
Blucora
$13.85
Chegg
$6.91
Everyday Health
$14.75
XO Group
$18.21
eHealth
$24.92
Angie's List
$6.23
Brightcove
$7.78
United Online
$14.55
Spark Networks
$3.59
Demand Media
$6.12
% Dec./Inc.
from LTM
High
Low
(7.2%)
(13.6%)
(5.1%)
(4.0%)
(5.6%)
(49.1%)
(32.9%)
(15.8%)
(60.5%)
(24.6%)
(34.6%)
(35.8%)
(46.2%)
(13.3%)
(55.9%)
(45.4%)
(25.8%)
(8.4%)
(54.8%)
(4.6%)
(12.9%)
(45.6%)
(34.2%)
(52.8%)
(20.0%)
(25.8%)
(2.1%)
(60.6%)
(68.5%)
(47.1%)
(8.4%)
(45.3%)
(79.8%)
34.1%
6.7%
50.5%
57.1%
68.9%
21.6%
11.2%
36.6%
19.5%
7.6%
43.8%
39.3%
11.4%
42.9%
7.3%
2.6%
14.7%
153.0%
20.9%
31.0%
54.0%
35.5%
14.9%
6.8%
43.4%
35.8%
106.5%
33.3%
12.5%
53.8%
58.2%
5.3%
19.3%
Fully
Diluted
Eq. Val.
$382,881
358,536
217,508
47,851
28,525
22,425
10,671
5,940
5,717
5,094
4,911
4,289
3,969
3,596
3,710
2,809
1,430
1,767
2,402
229
532
410
723
568
579
455
490
444
365
251
207
87
113
Net Cash
$64,623
51,417
13,972
9,962
2,258
2,122
230
96
(40)
(65)
976
366
364
8
316
498
(252)
102
826
(501)
(86)
(176)
163
33
83
18
86
58
20
20
76
9
39
Fully
Diluted
Ent. Val.
YoY Revenue Growth
CY '14E
CY '15E
LTM
$318,258
307,119
203,536
37,889
26,266
20,303
10,441
5,844
5,757
5,159
3,935
3,922
3,605
3,588
3,394
2,310
1,682
1,665
1,576
731
618
586
560
535
496
437
404
386
345
231
131
78
73
11.8%
11.1%
57.4%
(5.9%)
43.5%
107.4%
31.6%
30.1%
(12.4%)
1.9%
18.2%
63.8%
61.4%
9.5%
39.9%
76.5%
12.0%
54.3%
(20.9%)
38.8%
23.3%
(3.9%)
319.5%
0.2%
19.6%
18.3%
5.2%
4.2%
27.9%
12.9%
(7.0%)
(11.7%)
(57.7%)
3.5x
4.5x
18.2x
8.2x
13.0x
17.4x
8.9x
10.9x
4.7x
1.7x
1.7x
13.4x
10.7x
1.4x
3.9x
7.7x
3.0x
8.7x
2.3x
2.1x
2.4x
0.7x
8.7x
0.8x
1.7x
2.5x
2.9x
2.0x
1.1x
1.9x
0.6x
1.2x
0.2x
3.4x
4.6x
16.4x
8.6x
12.0x
14.7x
8.4x
10.2x
5.5x
1.7x
1.8x
12.1x
9.6x
1.4x
3.7x
7.0x
2.9x
8.1x
2.3x
2.0x
2.3x
0.8x
3.3x
0.9x
1.6x
2.4x
2.9x
2.1x
1.1x
1.9x
0.6x
1.3x
0.4x
3.2x
3.9x
12.0x
8.4x
8.9x
8.9x
6.7x
8.9x
4.2x
1.6x
1.8x
8.9x
6.7x
1.3x
2.9x
4.8x
2.6x
5.9x
2.0x
1.8x
2.2x
0.7x
1.7x
1.1x
1.4x
1.9x
2.9x
1.9x
1.0x
1.7x
0.6x
1.4x
0.5x
9.6x
15.4x
33.6x
NM
NM
NM
30.9x
40.9x
12.2x
10.9x
5.2x
NM
NM
8.3x
NM
NM
15.6x
NM
NM
8.1x
8.6x
8.0x
41.9x
4.8x
33.4x
28.4x
28.5x
31.9x
NM
NM
13.2x
NM
2.5x
9.8x
11.7x
25.1x
29.2x
45.7x
NM
22.7x
31.4x
12.7x
9.7x
4.4x
NM
NM
7.1x
NM
NM
10.8x
NM
32.1x
7.6x
7.3x
5.9x
15.1x
5.4x
NM
13.1x
19.4x
24.3x
NM
NM
3.9x
34.0x
2.2x
8.9x
9.9x
20.0x
29.1x
32.3x
36.9x
17.7x
28.1x
10.0x
8.7x
4.9x
43.9x
29.8x
6.7x
24.8x
36.4x
9.2x
NM
16.0x
7.3x
6.9x
5.5x
7.1x
6.8x
28.5x
9.8x
13.4x
21.2x
14.9x
NM
3.7x
6.7x
3.2x
3.1x
5.7x
18.9x
8.3x
17.1x
NM
13.0x
12.3x
12.2x
1.8x
NM
16.2x
23.1x
1.6x
8.0x
NM
3.0x
NM
2.0x
NM
2.0x
1.0x
NM
2.4x
2.8x
NM
2.4x
4.5x
3.8x
3.6x
0.3x
1.9x
1.1x
7.8x
18.6x
39.8x
19.5x
NM
NM
35.8x
NM
28.6x
10.4x
NM
NM
NM
8.4x
NM
NM
24.2x
NM
14.0x
NM
6.5x
6.8x
NM
12.7x
16.4x
NM
13.2x
41.3x
NM
NM
3.4x
NM
7.0x
2.9x
5.2x
2.9x
4.8x
2.2x
3.8x
13.2x
18.7x
12.2x
16.3x
10.0x
16.4x
3.3x
6.6x
13.6x
17.5x
Median
Mean
Statistics exclude companies with <$50m Enterprise Value
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 12/31/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
7
7.7%
17.1%
36.7%
2.0%
34.3%
66.1%
25.5%
14.8%
31.4%
6.9%
(4.4%)
36.1%
43.2%
7.6%
29.7%
44.1%
10.1%
36.2%
15.6%
8.2%
6.9%
0.8%
87.3%
(12.2%)
15.6%
23.6%
0.1%
10.5%
14.7%
8.3%
(0.4%)
(6.1%)
(8.0%)
Enterprise Value /
Revenue
EBITDA
CY '14E CY '15E
LTM
CY '14E CY '15E
(Price as of 12/12/13)
Enterprise Value
Revenue
EBITDA
e-Commerce
($ in millions, except per share amounts)
Price
Company
12/31/2014
e-Commerce
Alibaba
$103.94
Amazon.com
$310.35
eBay
$56.12
The Priceline Group
$1,140.21
JD.com
$23.14
Netflix
$341.61
Liberty Interactive
$29.42
Expedia
$85.36
Lending Club
$25.30
Sabre
$20.27
Live Nation
$26.11
Mercadolibre
$127.67
Copart
$36.49
Groupon
$8.26
Travelport
$18.00
Vistaprint
$74.84
GrubHub
$36.32
zulily
$23.40
HomeAway
$29.78
Wayfair
$19.85
Shutterfly
$41.70
Coupons.com
$17.75
Orbitz
$8.23
Stamps.com
$47.99
RetailMeNot
$14.62
1-800-Flowers.com
$8.24
Overstock.com
$24.27
Blue Nile
$36.01
PetMed Express
$14.37
Liquidity Services
$8.17
Travelzoo
$12.62
CafePress
$2.35
% Dec./Inc.
from LTM
High
Low
(13.4%)
(23.9%)
(6.0%)
(17.3%)
(30.1%)
(30.2%)
(4.1%)
(7.3%)
(13.6%)
(3.1%)
(4.8%)
(11.5%)
(3.5%)
(33.5%)
(2.7%)
(2.4%)
(20.7%)
(68.2%)
(39.1%)
(46.1%)
(24.3%)
(46.2%)
(17.3%)
(6.0%)
(70.0%)
(11.5%)
(21.3%)
(23.7%)
(14.2%)
(70.1%)
(53.2%)
(66.3%)
25.5%
9.3%
21.1%
12.1%
16.0%
14.1%
31.5%
36.0%
13.4%
36.4%
33.1%
60.6%
21.9%
59.5%
51.8%
102.0%
21.6%
6.3%
7.0%
18.6%
14.9%
52.9%
26.8%
76.6%
10.0%
77.2%
75.6%
55.9%
19.1%
10.3%
4.6%
20.5%
Fully
Diluted
Eq. Val.
$258,362
143,694
69,722
59,697
31,522
20,581
14,011
10,802
9,144
5,379
5,239
5,637
4,610
5,545
2,185
2,440
2,961
2,933
2,809
1,646
1,616
1,419
911
764
790
529
583
427
291
244
186
41
Net Cash
$7,025
3,784
2,785
2,311
4,709
767
(5,343)
265
(83)
(2,930)
(968)
119
(83)
855
(2,331)
(423)
278
344
478
(267)
(6)
186
(200)
32
188
(63)
113
32
50
63
57
11
Fully
Diluted
Ent. Val.
YoY Revenue Growth
CY '14E
CY '15E
LTM
$251,337
139,910
66,937
57,386
26,814
19,814
19,354
10,538
9,226
8,309
6,207
5,518
4,693
4,690
4,516
2,863
2,683
2,589
2,330
1,913
1,622
1,233
1,112
732
603
592
470
395
241
182
129
30
43.6%
20.0%
11.7%
24.0%
59.0%
25.8%
(11.6%)
20.9%
119.4%
(5.1%)
6.7%
15.5%
7.3%
23.4%
3.7%
14.6%
82.8%
75.3%
28.7%
39.5%
16.8%
34.1%
10.1%
13.2%
25.5%
36.4%
13.4%
6.7%
(3.3%)
(4.3%)
(8.6%)
(4.5%)
24.3x
1.6x
3.8x
7.0x
1.6x
3.8x
1.7x
1.9x
46.9x
2.8x
0.9x
10.4x
4.0x
1.5x
2.1x
2.2x
11.7x
2.4x
5.5x
1.6x
1.9x
5.8x
1.2x
5.3x
2.4x
0.8x
0.3x
0.9x
1.1x
0.4x
0.9x
0.1x
21.6x
1.6x
3.7x
6.8x
1.5x
3.6x
1.9x
1.8x
42.9x
2.9x
0.9x
10.1x
3.9x
1.5x
2.1x
2.1x
10.7x
2.1x
5.2x
1.5x
1.8x
5.5x
1.2x
5.1x
2.3x
0.6x
0.3x
0.8x
1.1x
0.4x
0.9x
0.1x
15.4x
1.3x
3.3x
5.8x
1.0x
2.9x
2.1x
1.6x
21.2x
2.7x
0.8x
8.7x
3.8x
1.3x
2.0x
1.8x
8.3x
1.5x
4.4x
1.2x
1.5x
4.2x
1.1x
4.5x
2.0x
0.5x
0.3x
0.8x
1.0x
0.4x
0.9x
0.1x
NM
36.0x
13.5x
18.1x
NM
41.9x
9.5x
13.2x
NM
13.1x
11.8x
28.7x
11.4x
NM
10.6x
15.4x
49.3x
NM
35.8x
NM
22.1x
NM
8.7x
18.8x
8.8x
13.1x
25.9x
23.9x
8.4x
3.6x
5.9x
24.8x
40.8x
22.7x
11.5x
16.9x
NM
35.6x
10.1x
10.2x
NM
9.8x
11.3x
30.3x
12.3x
18.3x
8.4x
13.7x
35.8x
49.6x
19.8x
NM
9.6x
NM
7.2x
17.1x
6.6x
5.5x
13.4x
17.9x
8.4x
3.4x
7.1x
10.8x
30.0x
17.4x
10.6x
14.2x
NM
28.6x
10.0x
8.7x
NM
8.7x
10.0x
24.9x
11.0x
13.7x
8.5x
11.3x
26.6x
24.6x
17.2x
NM
7.8x
25.9x
6.6x
14.5x
5.7x
7.0x
9.4x
15.6x
8.7x
4.9x
8.1x
4.6x
NM
2.5x
4.2x
8.6x
NM
5.1x
2.3x
2.0x
NM
NM
0.7x
10.3x
4.5x
2.7x
NM
1.8x
NM
8.7x
10.3x
NM
2.5x
NM
1.3x
4.8x
7.8x
0.6x
0.5x
1.3x
1.2x
1.3x
1.6x
0.4x
NM
NM
13.7x
21.7x
NM
NM
12.4x
13.7x
NM
NM
9.7x
27.6x
14.4x
48.0x
NM
15.0x
NM
NM
NM
NM
21.4x
NM
9.2x
16.5x
20.0x
9.0x
28.6x
35.1x
9.6x
7.2x
9.1x
17.2x
2.1x
5.1x
2.1x
4.8x
1.8x
3.5x
13.4x
18.6x
12.3x
16.8x
10.8x
13.9x
2.5x
3.8x
14.4x
18.0x
Median
Mean
Statistics exclude companies with <$50m Enterprise Value.
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 12/31/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
8
39.9%
18.6%
12.2%
17.4%
48.9%
23.0%
(6.7%)
13.6%
102.7%
4.8%
6.2%
16.9%
5.1%
14.2%
3.4%
11.7%
29.5%
46.3%
19.3%
27.8%
14.7%
31.2%
5.4%
13.2%
16.3%
18.0%
10.8%
9.0%
1.0%
(9.6%)
1.4%
5.3%
Enterprise Value /
Revenue
EBITDA
CY '14E CY '15E
LTM
CY '14E CY '15E
(Price as of 12/31/13)
Enterprise Value
Revenue
EBITDA
Interactive Marketing
($ in millions, except per share amounts)
Price
Company
12/31/2014
Interactive Marketing
Endurance International
$18.43
Criteo
$40.42
comScore
$46.43
Web.com
$18.99
Bankrate
$12.43
HubSpot
$33.61
Constant Contact
$36.70
Wix.com
$21.00
TubeMogul
$22.55
Rocket Fuel
$16.12
The Rubicon Project
$16.14
Tree.com
$48.34
ChannelAdvisor
$21.58
TechTarget
$11.37
QuinStreet
$6.07
Care.com
$8.28
Millennial Media
$1.60
Marchex
$4.59
YuMe
$5.04
Sizmek
$6.26
Tremor Video
$2.87
Blinkx
$0.41
ReachLocal
$3.44
% Dec./Inc.
from LTM
High
Low
(3.5%)
(33.7%)
(3.6%)
(49.7%)
(42.2%)
(12.9%)
(5.5%)
(35.8%)
(5.4%)
(77.6%)
(30.4%)
(1.0%)
(56.8%)
(1.4%)
(33.2%)
(71.7%)
(81.0%)
(64.3%)
(42.7%)
(52.8%)
(50.2%)
(88.0%)
(75.9%)
67.9%
60.7%
78.7%
29.1%
32.4%
30.3%
74.1%
47.1%
176.7%
17.2%
84.2%
110.7%
82.4%
85.2%
60.6%
13.6%
9.6%
45.7%
20.0%
29.1%
41.4%
14.0%
11.7%
Fully
Diluted
Eq. Val.
$2,440
2,426
1,588
998
1,298
1,055
1,163
800
672
666
580
547
537
368
269
261
223
197
167
190
147
166
100
Net Cash
($1,105)
308
14
(505)
(121)
(107)
154
94
46
42
104
84
78
35
43
83
76
81
57
91
78
110
52
Fully
Diluted
Ent. Val.
$3,545
2,118
1,574
1,502
1,419
1,162
1,008
706
626
624
476
464
460
333
227
178
146
116
109
99
69
56
48
YoY Revenue Growth
CY '14E
CY '15E
20.4%
(41.0%)
13.0%
15.3%
19.8%
46.0%
16.0%
74.1%
93.6%
72.9%
46.6%
19.0%
27.9%
18.2%
(7.4%)
43.5%
9.2%
17.6%
17.4%
5.1%
21.8%
15.3%
(7.4%)
Median
Mean
Statistics exclude companies with <$50m Enterprise Value
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 12/31/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
9
18.9%
33.5%
15.5%
0.8%
11.8%
28.1%
17.0%
44.3%
39.6%
52.1%
29.0%
12.0%
28.2%
15.5%
4.7%
45.2%
16.0%
(23.3%)
17.0%
5.1%
20.8%
1.1%
(3.9%)
LTM
Enterprise Value /
Revenue
EBITDA
CY '14E CY '15E
LTM
CY '14E CY '15E
(Price as of 12/31/13)
Enterprise Value
Revenue
EBITDA
6.0x
2.6x
5.0x
2.8x
2.7x
11.2x
3.2x
5.6x
6.2x
1.8x
4.3x
2.9x
5.6x
3.4x
0.8x
1.7x
0.5x
0.6x
0.6x
0.6x
0.4x
0.2x
0.1x
5.7x
5.9x
4.9x
2.6x
2.6x
10.3x
3.0x
5.0x
5.6x
1.5x
3.9x
2.8x
5.3x
3.2x
0.8x
1.5x
0.5x
0.6x
0.6x
0.6x
0.4x
0.2x
0.1x
4.8x
4.4x
4.2x
2.6x
2.3x
8.0x
2.6x
3.5x
4.0x
1.0x
3.0x
2.5x
4.1x
2.8x
0.8x
1.0x
0.4x
0.8x
0.5x
0.6x
0.4x
0.2x
0.1x
36.4x
34.9x
NM
13.5x
11.9x
NM
27.3x
NM
NM
NM
NM
38.5x
NM
32.6x
NM
NM
NM
11.6x
NM
5.7x
NM
4.4x
NM
15.5x
24.0x
21.6x
9.3x
10.3x
NM
16.7x
NM
NM
NM
47.0x
22.0x
NM
17.1x
17.9x
NM
NM
6.9x
NM
4.4x
NM
NA
NM
12.6x
15.7x
18.2x
9.2x
9.0x
NM
13.3x
NM
NM
NM
41.6x
17.7x
NM
12.4x
11.9x
NM
NM
9.0x
14.3x
3.8x
NM
3.3x
NM
5.9x
3.5x
3.4x
4.4x
4.5x
NM
3.1x
14.2x
NM
9.8x
NM
2.2x
13.7x
1.9x
1.1x
NM
3.0x
1.9x
1.2x
NM
1.5x
5.5x
0.5x
48.2x
NM
36.5x
24.1x
17.7x
NM
31.6x
NM
NM
NM
NM
28.0x
NM
46.5x
12.7x
NM
NM
45.6x
39.9x
NM
NM
40.9x
20.3x
2.7x
3.1x
2.7x
3.1x
2.6x
2.5x
20.4x
21.7x
16.9x
17.7x
12.5x
13.7x
3.4x
4.8x
36.5x
33.8x
Marketing Services
($ in millions, except per share amounts)
Price
Company
12/31/2014
Marketing Services
WPP
$20.96
Alliance Data Systems
$286.05
Nielsen
$44.73
Omnicom
$77.47
Experian
$16.96
Publicis
$72.19
Dentsu
$42.49
Equifax
$80.87
Interpublic Group
$20.77
Havas
$8.18
MDC Partners
$23.00
Acxiom
$20.27
Harte-Hanks
$7.74
% Dec./Inc.
from LTM
High
Low
(14.1%)
(4.8%)
(9.8%)
(1.3%)
(8.0%)
(15.2%)
(3.8%)
(2.1%)
(1.8%)
(3.5%)
(8.4%)
(48.4%)
(14.7%)
23.3%
24.1%
10.3%
21.0%
19.6%
20.2%
44.8%
24.9%
30.6%
25.8%
33.9%
26.4%
37.0%
Fully
Diluted
Eq. Val.
$27,632
18,313
16,806
19,227
16,789
15,631
12,251
9,752
8,687
3,382
1,142
1,561
480
Net Cash
($5,077)
(10,820)
(6,343)
(3,624)
(3,689)
(31)
(865)
(1,475)
(1,143)
(405)
(957)
(195)
(20)
Fully
Diluted
Ent. Val.
$32,709
29,133
23,149
22,850
20,478
15,663
13,117
11,227
9,829
3,787
2,099
1,756
500
YoY Revenue Growth
CY '14E
CY '15E
(3.4%)
22.8%
10.8%
4.9%
2.3%
(9.3%)
(3.6%)
5.5%
5.6%
(7.8%)
9.2%
(3.8%)
(0.1%)
Median
Mean
Statistics exclude companies with <$50m Enterprise Value
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 12/31/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
10
7.3%
24.1%
3.7%
4.2%
4.1%
12.3%
3.8%
7.1%
3.9%
5.1%
7.8%
0.6%
2.1%
LTM
Enterprise Value /
Revenue
EBITDA
CY '14E CY '15E
LTM
CY '14E CY '15E
(Price as of 12/31/13)
Enterprise Value
Revenue
EBITDA
1.9x
5.9x
3.7x
1.5x
4.4x
1.9x
0.7x
4.7x
1.3x
1.7x
1.7x
1.6x
0.9x
1.9x
5.5x
3.7x
1.5x
4.2x
1.8x
0.7x
4.6x
1.3x
1.7x
1.7x
1.7x
0.9x
1.7x
4.4x
3.5x
1.4x
4.1x
1.6x
0.6x
4.3x
1.3x
1.6x
1.6x
1.7x
0.9x
10.4x
21.1x
15.7x
10.3x
12.0x
8.7x
11.3x
13.2x
10.9x
10.1x
45.2x
9.7x
8.9x
11.2x
18.9x
12.5x
10.2x
12.0x
10.0x
12.1x
13.2x
10.1x
10.3x
11.6x
8.5x
8.5x
10.4x
15.1x
11.7x
9.7x
11.8x
8.9x
10.8x
12.2x
9.1x
9.6x
10.2x
8.4x
7.5x
2.0x
5.1x
4.1x
1.5x
4.4x
2.0x
0.7x
4.2x
1.2x
1.6x
1.7x
2.6x
0.7x
11.7x
16.4x
17.4x
10.4x
13.5x
10.5x
20.3x
12.0x
10.4x
10.8x
NM
15.3x
8.1x
1.7x
2.5x
1.7x
2.4x
1.6x
2.2x
10.9x
14.4x
11.2x
11.5x
10.2x
10.4x
2.0x
2.4x
11.9x
13.1x
Section II: Mergers and Acquisitions Activity
11
Q4 2014 Notable Internet & Digital Media M&A Activity
($ in millions)
Date
Acquirer
12/22/14
Target
Target Business
Description
Acquirer
Rationale
Datalogix provides subscription-based online marketing data
analytics SaaS that tracks and analyzes consumer spending for the
purpose of marketing campaign optimization.
AdKarma provides online and mobile video and display
programmatic ad network, services and related analytics SaaS for
buying and selling video ads.
DoctorDirectory.com provides an online searchable directory of
healthcare providers, hospitals, clinics and health-related web links.
Provides data-driven marketers with valuable targeting
and measurement solutions to deliver comprehensive
consumer profiles
Bolsters blinkx's position within the programmatic
segment of the digital video advertising market and brings
extensive supply and demand side relationships
Accelerates momentum in the professional market by
significantly increasing Everyday Health's physician reach
Vidmaker provides an online video creation, editing and collaboration
SaaS to enable individuals to create and edit short videos and
commercials for consumers and businesses.
Global Grind provides an entertainment website focused on hip-hop
and urban culture.
12/17/14
True[X] Media provides interactive advertisement services that run in
mobile games and streaming music application.
12/15/14
MailSotre Software provides email archiving and full-text search
software for small-to-medium sized enterprises and educational
institutions.
AwesomenessTV operates as a media company that operates a
YouTube channel with programming geared toward teens.
12/19/14
12/19/14
12/18/14
12/18/14
12/11/14
12/11/14
Fotolia provides royalty-free photography, illustrations, videos and
logos website for consumers and businesses.
12/11/14
Relevant24 provides branded online advertising video content
creation, production services and digital publishing services for
retailers and enterprises worldwide.
Become.com operates an online shopping and product
recommendation website and search engine for consumers.
12/04/14
12/01/14
11/21/14
11/20/14 (2)
11/18/14
Vidible provides online video content advertising management,
distribution and real-time analytics SaaS, SEO software and related
video distribution exchange website.
Cooliris provides a mobile photo browsing app to enable consumers
to collect, view and share photos stored across various social media
and other online locations.
CAP Automotive provides an online automotive valuation service to
enable consumers in the UK to check the value of new and used
automobiles and calculate cost of ownership.
Mywedding.com provides online wedding planning services, including
wedding website creation, an online wedding budget service and a
directory of wedding vendors.
Source: Signal Hill Database
12
Enterprise
Value (1)
Enterprise Value
LTM
LTM
Revenue EBITDA
NA
NA
NA
$15.0
NA
NA
$65.0
NA
NA
Enhances YouTube's online video editing tools at a time
when Facebook is seriously challenging dominance in the
low-end video market
Improves Interactive One's existing multimedia brands
and allows expansion of its Millennial channel
NA
NA
NA
NA
NA
NA
Augments ad tech offering with technology that replaces a
slate of standard ads or video commercials on the web
and mobile with one interactive ad
Brings technology that allows users to search and find
important information without the need for IT assistance
to Carbonite
Adds momentum to Hearst's digital expansion strategy
with one of the fastest growing content channels on the
internet today
Reinforces Adobe's role as one-stop destination for
creatives with access to images, videos, fonts and
creative talent, through creative services
Enables Publicis' customers to automate and distribute
quality content from publishers in real-time and provide a
formidable end-to-end offering
Expands the collective geographic footprint of Connexity
with a higher range of products and functionalities for
existing publisher partners to serve
Accelerates AOL's mission of providing partners the
platform and tools needed to better create, curate,
syndicate and monetize content
Extends Yahoo's own Flickr-based mobile offering by
enabling aggregation and sharing of photos across social
sites
Furthers Solera's strategy of offering insurance carriers a
suite of products beyond claims processing
$200.0
NA
NA
$19.8
NA
NA
$81.3
NA
NA
$800.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
$463.8
10.1x
17.4x
NA
NA
NA
Complements existing Meredith brands such as Fitness,
American Baby and Allrecipes to create the largest
audience in the wedding media marketplace
Q4 2014 Notable Internet & Digital Media M&A Activity
($ in millions)
Date
Acquirer
11/17/14
11/17/14
11/14/14
11/13/14
11/12/14
11/12/14
11/11/14
11/11/14 (2)
11/10/14
11/05/14
11/05/14
11/04/14
11/03/14
11/03/14
11/03/14
Target
Target Business
Description
Acquirer
Rationale
iSocket provides a web and mobile automated ad bidding and
campaign management SaaS that enables fixed-rate buying and
selling of online ads.
Swarm Mobile provides omni-channel marketing WiFi-enabled
hardware and software systems for small business brick-and-mortar
retailers.
Appia provides a mobile user acquisition network that delivers mobile
app downloads.
Offers buyers the benefits of a fully integrated automated
platform for guaranteed and non-guaranteed direct orders
ParentLink provides a school communications mobile application and
messaging SaaS to enable K-12 school districts to send timely
information, event calendars and surveys.
Big Fish Games develops and provides online, social media, mobile
and downloadable Mac and PC videogames and casino-style games
for consumers globally.
Co-Optimum provides digital marketing SaaS and marketing
services, including web and social media marketing, brand
management, online advertising and advertising analytics.
Xtime provides automotive dealership CRM and operations
management SaaS, including repair scheduling, online check-in,
marketing and customer retention.
BrightRoll provides a web, mobile and connected TV digital video
advertising network and targeted analytics SaaS for web publishers,
marketers and businesses.
Rare Crowds provides digital marketing services for publishers and
advertising networks.
Delivers industry expertise to Blackboard with a focus on
serving students, parents and schools through highly
innovative technology
Expands Churchill Downs' offering into the growing
mobile and online games industry and offers new
products, customers and growth opportunities
Allows Ansira to offer clients expanded resources and
increased strategic insights to their business and is a
strong fit for growth opportunities
Augments Cox Automotive's suite of solutions dealers
use to run their businesses with a retention solution for
the automotive industry
Builds positive momentum for Yahoo’s broader display
advertising business in 2015 with the largest independent
video ad network
Adds combinational optimization techniques and
algorithms to find the most targeted media for MediaMath
clients
Bolsters opportunities to improve platform capabilities of
both companies and grow into new verticals
Contact At Once provides live chat and texting CRM SaaS and
software to enable real-time web-based and mobile customer
engagement primarily for the automotive and real estate.
Kickserv provides web-based and mobile workforce business
process and field management SaaS for service-oriented SMBs.
5one Marketing provides web and social media marketing, marketing
strategy and marketing analytics services for businesses in the retail
sector worldwide.
Stylehaul operates as an online fashion, lifestyle, beauty and
shopping video network for consumers and advertisers.
Sapient provides a range of online marketing campaign creation and
management services, including social media and mobile marketing,
as well as software and web development.
Apalon provides outsourced iOS and Android mobile application
development services, including weather, photo, translation and
mobile game apps.
Source: Signal Hill Database
13
Allows Groupon to connect local commerce through
specialized offers, tailored notifications and the
opportunity to provide real-time feedback
Enables Mandalay to better serve customers with direct
access to inventory and campaigns for mobile devices
Complements ReachLocal's marketing automation
software and accelerates progress towards offering an
end-to-end software solution
Strengthens MasterCard's relationships with retailers with
richer insights on spending trends to help them grow their
businesses with information solutions
Augments RTL's pickup of BroadbandTV last year by
adding another online distribution channel with 900 million
video views per month
Empowers Publicis' Marketers with a unique combination
of marketing, omni-channel commerce and consulting
and deep technology
Offers IAC a meaningful foothold in mobile with innovative
and unique development capabilities, and a broad
portfolio of applications
Enterprise
Value (1)
Enterprise Value
LTM
LTM
Revenue EBITDA
$10.0
NA
NA
NA
NA
NA
$75.0
2.5x
NA
$40.0
4.0x
NA
$485.0
NA
NA
NA
NA
NA
$325.0
8.1x
NA
$640.0
6.4x
NA
NA
NA
NA
$65.0
3.6x
NA
$6.8
3.4x
NA
NA
NA
NA
$107.0
NA
NA
$3,700.0
2.5x
19.9x
NA
NA
NA
Q4 2014 Notable Internet & Digital Media M&A Activity
($ in millions)
Date
Acquirer
Target
Target Business
Description
Acquirer
Rationale
Enterprise
Value (1)
Enterprise Value
LTM
LTM
Revenue EBITDA
11/03/14
BlogHer provides a women-themed blog, news and community
website.
Enables the horizontal propagation of editorially driven,
user-authenticated content for SheKnows
NA
NA
NA
11/03/14
Hopster operates as a consumer packaged goods (CPG) digital
coupon service for consumers and businesses.
NA
NA
NA
10/28/14
RUN provides mobile-focused programmatic demand-side real-time
bidding (RTB) and data management SaaS for online marketers.
$60.0
8.6x
NA
10/28/14
Snapshot Mobile provides a car dealership CRM mobile application
to enable text messaging between automotive sales teams and
customers for automotive businesses.
Digital River provides e-Commerce website development, order
management, fraud prevention, payment processing, marketing,
fulfillment and reporting for online retailers.
RentPath operates real estate websites and mobile applications for
consumers to find apartments, houses for rent or new homes for
sale.
Videoplaza provides online and mobile streaming video content
networks and video content management SaaS for businesses for
the purposes of advertising.
Momondo Group provides online travel booking services, including
airline travel, cruise, hotel and car rental reservation services, for
consumers worldwide.
Kantar Media provides market and audience research databases and
outsourced services that enable business to optimize marketing
campaigns.
Cadient provides digital marketing services, including mobile and
social media marketing, and search engine optimization.
Delivers measurable online engagement and executes
true 1:1 marketing with offers based on individual shopper
behavior for Inmar's marketing platform
Expands Publicis' offerings into programmatic display
advertising with RUN's tech-enabled solutions and
services
Provides Edmunds with an on-demand mobile experience
focused on streamlining the car-shopping experience
through the CarCode platform
Offers significant global growth potential in the Commerceas-a-Service market
NA
NA
NA
$840.0
2.2x
57.3x
NA
NA
NA
$80.0
10.0x
NA
$210.2
NA
NA
$98.0
NA
NA
NA
NA
NA
$10.0
4.4x
NA
NA
NA
NA
10/23/14
10/22/14
10/20/14
10/17/14
10/09/14
10/07/14
10/6/14 (2)
Adjuggler operates as a real time bidding (RTB) online advertising
network and digital advertising trading desk for businesses.
10/01/14
Struq provides advertising personalization SaaS that enables
retailers to deliver personalized display, video and mobile ads based
on related consumer interests.
(1) Transaction value used as proxy where enterprise value not available
(2) Target operating metrics based on either analyst or research estimates
Source: Signal Hill Database
14
Provides Providence with growth opportunities in the
online rental marketplace as well as strong positioning to
capture growth in mobile
Expands Ooyala to the US at a time when many
broadcasters are seeking an alternative supply-side
service after Comcast's purchase of FreeWheel
Furthers focus on growing businesses more rapidly
capitalizing on the double-digit growth rates in the travel
metasearch sector
Captures Rentrak's explosive growth in its TV audience
measurement, which is benefiting from the fragmentation
of audiences across online video
Bolsters the digital platform of Cognizant towards
becoming an all-in-one platform for the life sciences
industry
Improves Zenovia's platform with leading publisher yield
management tools to result in higher CPMs for publishers
and improved campaign yields for buyers
Adds cross-device targeting capabilities to Quantcast's
performance-driven ad network
Leading Acquirer Activity
Number of Acquisitions1
Select Recent Acquisitions
 2014: Vidmaker (online video creation SaaS)
 2014: RelativeWave (mobile app prototyping software)
 2014: Revolv (Connected home systems provider)
 2014: Dark Blue Labs (UK AI software developer)
40
30
20
10
0
27
33
16
20
7
2010
 2014: Vision Factory AI (UK AI software developer)
33
2011
2012
 2014: Firebase (Application development collaboration MbaaS)
2013
2014
Q1
2014
12
Q2
2014
8
6
Q3
2014
Q4
2014
Number of Acquisitions
 2014: Polar (mobile and web polling app)
 Deals (number) over trailing four quarters: 33
 2014: ZYNC (visual effects rendering SaaS)
 Deals (value disclosed)2 over trailing four quarters: $4,535mm
 2014: 13th Lab AB (Swedish image recognition software)
 2014: 3Gear Systems (3D hand tracking systems)
 2014: WaveGroup Sound (outsourced audio design services)
 2014: PrivateCore (data security and encryption software)
20
15
10
5
0
16
11
2010
 2014: LiveRail (video ad serving network)
12
2011
11
2012
2013
13
2014
4
3
4
Q1
2014
Q2
2014
Q3
2014
2
Q4
2014
Number of Acquisitions
 2014: Pryte (mobile application distribution SaaS)
 2014: Moves (mobile fitness application)
 Deals (number) over trailing four quarters: 13
 2014: Oculus VR (virtual reality gaming headsets)
 Deals (value disclosed)2 over trailing four quarters: $21,382mm
 2014: Cooliris (mobile photo browsing app)
 2014: BrightRoll (video advertising network & SaaS)
 2014: MessageMe (Mobile messaging app developer)
 2014: Bookpad (Indian document management SaaS)
 2014: Luminate (in-image advertising SaaS)
 2014: ClarityRay (advertising anti-fraud SaaS)
40
30
20
10
0
30
18
5
4
2
2010
2011
2012
8
1
2013
2014
Q1
2014
Q2
2014
6
3
Q3
2014
Q4
2014
Number of Acquisitions
 2014: Zofari (mobile recommendation application)
 Deals (number) over trailing four quarters: 18
 2014: Flurry (mobile ad network)
 Deals (value disclosed)2 over trailing four quarters: 736
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
15
Leading Acquirer Activity
Number of Acquisitions1
Select Recent Acquisitions
 2014: GoodGame (e-sports marketing & web design)
 2014: Rooftop Media (syndicated digital comedy content)
7
8
 2014: .buy (blank Internet domain names)
4
 2014: Twitch (video game live streaming content)
2
6
5
6
6
1
1
1
2
2
0
 2014: Iconology (online comic enthusiast website)
2010
2011
2012
2013
2014 Q1 2014Q2 2014Q3 2014Q4 2014
Number of Acquisitions
 2014: Double Helix Games (video game software developer)
 2013: GoPago (tablet-based POS systems technology)
 Deals (number) over trailing four quarters: 6
 2013: TenMarks (online math instruction services)
 Deals (value disclosed)2 over trailing four quarters: $975mm
 2014: Applications Technology (machine translation software)
15
 2014: PhiSix (3D apparel simulation software)
10
 2013: Shutl (online delivery service)
11
5
3
5
 2013: Bureau of Trade (online product aggregation and daily
deal recommendation service)
 2013: Braintree Payment Solutions (online and mobile payment
APIs)
 2013: Decide.com (online price-prediction shopping service)
9
2
1
1
0
0
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2014
0
2010
2011
2012
2013
Number of Acquisitions
 Deals (number) over trailing four quarters: 2
 Deals (value disclosed)2 over trailing four quarters: NA
 2014: Unroll.Me (Email subscription management SaaS)
 2014: Ebates (online directory of digital coupons and promo
codes)
6
4
5
3
2
 2014: Slice Technologies (e-Commerce tracking mobile app)
2
 2014: DC Storm (digital advertising analytics software)
0
 2014: Viber Media (mobile messaging and VoIP application)
5
4
2
1
2010
2011
2012
2013
1
1
2014 Q1 2014Q2 2014Q3 2014Q4 2014
Number of Acquisitions
 2013: Viki (crowdsourced subtitled online video content provider)
 Deals (number) over trailing four quarters: 5
 2013: PopShops.com (retail product and online coupon
aggregation service)
 Deals (value disclosed)2 over trailing four quarters: $1,900mm
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
16
Leading Acquirer Activity
Number of Acquisitions1
Select Recent Acquisitions
 2014: Bit Stadium (mobile application development SaaS)
 2014: Acompli (email management mobile application)
15
8
10
 2014: Aorato (Israeli DAF security software)
5
 2014: Mojang (Swedish video game developer of Minecraft)
0
11
8
2
2010
 2014: InMage Systems (CDP & disaster recovery system)
9
2011
2012
2013
2014
3
2
3
3
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Number of Acquisitions
 2014: SyntaxTree (game script debugging software)
 2014: Capptain (mobile application analytics)
 Deals (number) over trailing four quarters: 11
 2014: GreenButton (cloud middleware software for HPC)
 Deals (value disclosed)2 over trailing four quarters: $2,900mm
 2014: Datalogix (marketing data & intelligence SaaS)
 2014: Front Porch Digital (digital media management software)
15
10
10
 2014: TOA Technologies (mobile workforce management SaaS)
5
 2014: MICROS Systems (PoS software provider)
0
2010
 2014: LiveLOOK (CRM co-browsing & live chat application)
9
2011
11
7
2012
2013
8
2014
2
3
2
1
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Number of Acquisitions
 2014: GreenBytes (VDI storage optimization appliances)
 2014: BlueKai (data management and analytics SaaS)
 Deals (number) over trailing four quarters: 8
 2013: Responsys (email marketing SaaS provider)
 Deals (value disclosed)2 over trailing four quarters: $6,690mm
 2014: RelateIQ (sales team collaboration SaaS)
10
 2013: Cloudconnect.com (database integration and
synchronization SaaS)
8
6
6
5
5
 2013: EdgeSpring (business intelligence data analytics software)
 2013: ExactTarget (marketing automation SaaS provider)
 2013: Clipboard (online social bookmarking services )
1
0
0
Q1
2014
Q2
2014
1
0
0
2010
2011
2012
2013
2014
Q3
2014
Q4
2014
Number of Acquisitions
 2013: EntropySoft (content integration SaaS and systems)
 Deals (number) over trailing four quarters: 1
 2012: BlueTail (data mining software provider)
 Deals (value disclosed)2 over trailing four quarters: $392mm
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
17
Section III: Private Placement Activity
18
Q4 2014 Select IDM Private Placements
($ in millions)
Announced
Date
12/31/14
Target
Instacart
Description of Target Company
Instacart provides online grocery delivery services.
Investors
Andreessen Horowitz; Kleiner Perkins Caufield & Byers;
Sequoia Capital; Khosla Ventures; Individual Investors
12/31/14
Snapchat
Snapchat develops a text and photo based messaging application for mobile phones.
August Capital; Yahoo!; GIC; Kleiner Perkins Caufield & Byers
$486.0
12/30/14
Beepi
Beepi operates an online portal for buying and selling used cars.
Foundation Capital; Redpoint Ventures; SherpaVentures;
Silicon Valley Bank
$72.5
12/29/14
SiteSpect
SiteSpect provides non-intrusive web optimization solutions to enable web and mobile marketers to
improve conversion rate and engagement.
NewSpring Capital; NewSpring Ventures
$13.0
12/22/14
Ginger.io
Ginger.io provides a mobile and web platform for Android and iPhone devices that helps providers,
healthcare organizations and other groups to stay connected to patients.
Kaiser Permanente Ventures
$20.0
12/19/14
Rent the Runway
Rent The Runway rents designer dresses, gowns and accessories for women.
Advance Publications; Bain Capital Ventures; Highland Capital
Partners; Technology Crossover
$60.0
12/18/14
Bustle
Bustle operates as a website with news, entertainment, fashion and beauty, books and lifestyle content. 500 Startups; General Catalyst Partners; Rothenberg
Ventures; The Social+Capital Partnership; Time Warner
$15.5
12/17/14
Adelphic
Adelphic provides a mobile and cross-channel advertising on-demand platform.
Blue Chip Venture Company; Matrix Partners; Google
Ventures
$11.0
12/16/14
Playdots
Playdots develop mobile games like Dots and TwoDots.
Tecent; Greycroft Partners; Northzone; CrunchFund; Slow
Ventures; Individual Investors
$10.0
12/15/14
SurveyMonkey
SurveyMonkey provides web-based survey solutions.
Google Capital; ICONIQ Capital; Laurel Crown Partners;
Morgan Stanley Investment Management
$250.0
12/11/14
Hinge
Hinge is a social discovery network helping users to meet new people through friends.
Shasta Ventures; CAA Ventures; Great Oak Venture Capital;
Lowercase Capital; Middleland Capital
$12.0
12/11/14
Woven Digital
Woven Digital operates as an advertising and technology company that focuses on the representation of Advancit Capital; Forty Niners Football Company; Institutional
growth-oriented websites to build large-scale communities.
Venture Partners; United Talent Agency
$18.0
12/11/14
Uber
Uber provides a smartphone application that connects drivers with people who need a ride.
Baidu
$600.0
12/11/14
OutboundEngine
OutboundEngine designs, tests and automates marketing campaigns for businesses.
Altos Ventures; Capital Factory; Harmony Partners; NoroMoseley Partners; Silverton Partners
$11.0
12/11/14
Kamcord
Kamcord develops and offers gameplay video and audio recording and sharing software for mobile
phones.
GungHo Online Entertainment; Merus Capital; Tencent;
TransLink Capital; Wargamingnet; XG Ventures
$15.0
12/10/14
BuildDirect
BuildDirect Technologies operates as an online retailer of home improvement products, such as flooring BMO Asset Management Corp; Mohr Davidow Ventures;
and decking.
OMERS Ventures
$43.6
12/09/14
Hired.com
Hired operates a marketplace that enables tech companies to recruit engineers, data scientists,
designers and product managers.
Comcast Ventures; CrossLink Capital; Lumia Capital;
SherpaVentures; Sierra Ventures; SoftTech VC
$15.0
12/09/14
Change.org
Change.org operates an online petition platform that enables users to start and run campaigns to
transform their communities in the U.S. and internationally.
Omidyar Network; Individual Investors
$25.0
12/08/14
Extole
Extole provides social marketing-as-a-service programs.
Norwest Venture Partners; Redpoint Ventures; Scale Venture
Partners; Shasta Ventures; Trident Capital
$14.0
Source: Signal Hill Database
Includes transactions $10 million or greater
19
Investment
Size
$210.0
Q4 2014 Select IDM Private Placements
($ in millions)
Announced
Date
12/04/14
Target
AvantCredit
Description of Target Company
Avant Credit provides online personal loans in the U.S..
Investors
August Capital; Draper Fisher Jurvetson; KKR; RRE Ventures;
Tiger Global Management
12/04/14
Uber
Uber provides a smartphone application that connects drivers with people who need a ride.
Fidelity Investments; KPCB; Lone Pine Capital; Menlo
Ventures; New Enterprise Associates
12/03/14
Zonoff
Zonoff provides software and web services that deliver home automation, energy management and
remote access services.
Grotech Ventures; Valhalla Partners
$31.8
12/03/14
WhipClip
WhipClip develops an application that allows users to create and share clips of television moments.
Greycroft Partners; Institutional Venture Partners; Raine
Ventures; William Morris Endeavor Entertainment
$20.0
12/02/14
Stripe
Stripe provides services that enable users to accept payments online.
General Catalyst Partners; Khosla Ventures; Sequoia Capital;
The Founders Fund; Thrive Capital
$70.0
12/02/14
Next Issue Media
Next Issue Media offers a digital / publishing platform to develop, distribute, sell and consume paid
digital content of magazines and newspapers.
KKR
$50.0
12/02/14
Return Path
Return Path provides email intelligence solutions that provide brands with data-driven insights,
commercial applications and expertise to maximize inbox placement.
Vista Equity Partners
$35.0
12/01/14
Vox Media
Vox Media operates as an online publishing company.
General Atlantic
$46.5
11/25/14
Yplan
Yplan offers a mobile application that presents a mix of bookable event tickets and allows users to book General Catalyst Partners; Nokia Growth Partners; Octopus
them in two taps.
Investments Limited; Wellington Ventures
$24.0
11/20/14
Pluto TV
Pluto TV is an online video platform that offers a new way to experience the most entertaining and
engaging content on the web.
US Venture Partners; Luminari Capital; Great Oaks Venture
Capital; Chicago Ventures; Sky
$13.0
11/20/14
CS Disco
CS Disco develops e-discovery software that helps lawyers to find evidence faster by reviewing
documents in major cases and investigations.
Bessemer Venture Partners; LiveOak Venture Partners
$10.0
11/20/14
Getaround
Getaround provides a peer-to-peer car sharing marketplace that enables car owners to rent their cars.
Cox Enterprises; Menlo Ventures; SOSventures; Triangle Peak
Partners
$24.0
11/19/14
LiveAuctioneers
LiveAuctioneers is a live auctions marketplace connecting buyers and sellers of antiques, fine arts and
collectibles.
Bessemer Venture Partners
$47.6
11/19/14
Accompani
Accompani develops and operates an online platform that integrates with your email, contacts and social Charles River Ventures; Cowboy Ventures; ICONIQ Capital
feeds.
$15.0
11/19/14
BigCommerce
BigCommerce designs and develops e-Commerce software.
SoftBank; American Express; General Catalyst Partners;
Revolution Growth; Telstra Ventures
$50.0
11/18/14
Boost Media
Boost Media offers Boost Cloud, a SaaS based creative optimization platform for advertisers and
agencies to source, manage and optimize their paid search.
Battery Ventures; Javelin Venture Partners; Pinnacle Ventures;
Webb Investment Network
$19.0
11/18/14
Teespring
Teespring operates an online platform to create and sell custom T-shirts in the U.S., Canada and
internationally.
Andreessen Horowitz; Khosla Ventures
$35.0
11/17/14
Eyeviewdigital
Eyeviewdigital develops technology solutions that enable advertisers and agencies to create and target
personalized video advertising.
Marker
$15.0
11/17/14
Shift
Shift operates as a mobile app for buying and selling used cars (complete with intermediated test
drives).
Draper Fisher Jurvetson; Highland Capital Partners; Individual
Investors
$23.8
Source: Signal Hill Database
Includes transactions $10 million or greater
20
Investment
Size
$225.0
$1,200.0
Q4 2014 Select IDM Private Placements
($ in millions)
Announced
Date
11/17/14
Target
InsightSquared
Description of Target Company
InsightSquared designs and develops data intelligence and analytic software solutions for small and
medium-sized businesses.
11/13/14
Craftsy
Craftsy provides passionate makers with an extraordinary learning experience through broadcast-quality Stripes Group; Foundry Group; Tiger Global Management;
video classes, inspirational kits and patterns and physical products.
Adams St. Partners; Access Venture Partners
$50.0
11/12/14
Gogobot
Gogobot operates as an online travel company.
Battery Ventures; HomeAway; Redpoint Ventures
$20.0
11/11/14
Course Hero
Course Hero operates an online learning platform offering study documents for courses and majors at
schools.
GSV Asset Management; GSV Capital Corp; IDG Ventures;
Maveron; SV Angel
$15.4
11/10/14
4:33 Creative Lab
4:33 Creative Lab develops mobile games.
LINE; Tencent
$110.0
11/10/14
DogVacay
DogVacay is an online community that connects dog owners in need of pet-care services with pet
caregivers in the U.S..
Benchmark Capital; DAG Ventures; First Round Capital;
Foundation Capital; GSV Asset Management
$25.0
11/10/14
Evernote
Evernote builds applications and products that help people to collect and find everything that matters.
Nikkei
$20.0
11/04/14
FilmTrack
FilmTrack is a cloud-based SaaS company, provides content and rights management solutions for the
film and television industry.
Insight Venture Partners
$10.0
10/29/14
Cardlytics
Cardlytics provides card-linked marketing services for customers in the U.S. and internationally.
Discovery Capital
$70.0
10/28/14
ScoreBig
ScoreBig operates a members-only Website that offers savings on tickets for live sports, concert, music Hearst Ventures
and arts and theater events.
$18.0
10/24/14
ENJOY
ENJOY provides high-touch personal service to help people make the most of the their important
purchases.
Oak Investment Partners; Kleiner Perkins Caufield & Byers;
Andreessen Horowitz
$30.0
10/23/14
MOGL
MOGL provides rewards program for restaurants and consumers in the U.S..
Austin Ventures; Avalon Ventures; Correlation Ventures;
Sigma West
$11.0
10/22/14
PlayStudios
PlayStudios develops casual games for social platforms.
JAFCO Ventures; MGM Resorts International
$20.0
10/22/14
YieldMo
YieldMo provides mobile advertising solutions for publishers and marketers.
Dace Ventures; Genacast Ventures; Google Ventures;
Rhodium Ventures; Time Warner Investments
$10.0
10/22/14
Tokopedia
Tokopedia own and operates an online e-Commerce platform that allows individuals and small-to-midsized business owners to start their online stores.
SoftBank; Sequoia Capital
$100.0
10//15/14
AdNear
AdNear provides geospatial software platform for mobile and Internet location-based service
applications.
Canaan Partners; Global Brain Corporation; Sequoia Capital;
Telstra Ventures
$19.0
10/10/14
Wahanda
Wahanda operates a website that provides access to health, beauty and wellness treatments and
therapists with listings of spas, salons and health centers.
Fidelity Growth Partner; Lepe Partners; RGIP
$26.0
10/06/14
Beepi
Beepi operates an online portal for buying and selling used cars.
Foundation Capital; Redpoint Ventures; SherpaVentures;
Silicon Valley Bank
$60.0
10/05/14
Square
Square provides Square Reader, a credit card reader for iPhone, iPad, and Android devices that
enables businesses to accept credit cards payments.
GIC; Rizvi Traverse Management; Goldman Sachs
$150.0
Source: Signal Hill Database
Includes transactions $10 million or greater
21
Investors
Atlas Venture; Draper Fisher Jurvetson; NextView Ventures;
Two Sigma Ventures
Investment
Size
$20.0
Q4 2014 Select IDM Private Placements
($ in millions)
Announced
Date
10/03/14
Target
Ozy Media
Description of Target Company
Ozy Media operates a daily news and culture site. Its site delivers news and information about people,
places, trends, ideas and opinions.
10/03/14
Infusionsoft
Infusionsoft provides sales and marketing software for small businesses.
10/02/14
Scribble Technologies Scribble Technologies operates an end-to-end content engagement platform that enables brands, sports The Waterloo Innovation Network Fund; Georgian Partners;
organizations and media companies to drive engagement.
Export Development Canada
$12.0
10/02/14
Appboy
Appboy operates a platform for mobile relationship management.
Blumberg Capital; Icon Venture Partners; IDG Ventures;
InterWest Partners; T5 Equity Partners
$15.0
10/02/14
Glow
Glow provides a fertility app that uses data science to help couples who are trying to conceive babies.
Andreessen Horowitz; Founders Fund; Formation 8
$17.0
10/01/14
Houzz
Houzz operates a website for home design professionals and homeowners.
DST Global; GGV Capital; Kleiner Perkins Caufield & Byers;
New Enterprise Associates; Sequoia Capital
$165.0
Source: Signal Hill Database
Includes transactions $10 million or greater
22
Investors
Axel Springer
Allure Ventures; Arthur Ventures; Bain Capital Ventures;
Goldman Sachs
Investment
Size
$30.0
$55.0
Section IV: IPO Activity
23
Internet & Digital Media IPO Activity
IPOs Filed
Original Filing Date
Company
Offer Size ($mm)
LTM
EBITDA Revenue
($mm)
Growth
NA
150.5%
7/7/2014
Yodle
$870
Revenue
($mm)
$148
EBITDA
Margin
NA
6/9/2014
GoDaddy
$100
$1,188
$9
30.4%
0.8%
3/24/2014
Box
$75
$162
($3)
22.3%
NM
IPOs Priced
Ticker
Offer
Size
($mm)
12/16/2014
ONDK
$200
$16.00
-
$18.00
12/12/2014
NEWR
$115
$18.00
-
12/11/2014
MOMO
$276
$12.50
12/11/2014
LC
$870
10/09/2014
HUBS
10/02/2014
W
Pricing
Date
Company
Initial Indicated
Range
Offer
Price
LTM
EV /
EV /
Revenue Revenue
(12/31)
(IPO)
Revenue
($mm)
EBITDA
($mm)
$20.00
$73
NA
20.3x
$20.00
$23.00
$85
($37)
-
$14.50
$13.50
$29
$12.00
-
$14.00
$15.00
$125
$22.00
-
$24.00
$319
$25.00
-
$28.00
Performance
Revenue
Growth
EBITDA
Margin
1st
Week
1st
Month
YTD
25.4x
457.7%
NA
13.2%
11.7%
12.2%
17.8x
18.4x
186.5%
NM
36.8%
61.4%
51.5%
($24)
72.8x
111.3x
NA
NM
1.9%
(3.5%)
(11.1%)
$177
NA
51.8x
50.6x
130.6%
NA
79.6%
58.9%
68.7%
$25.00
$104
($35)
11.2x
9.7x
101.7%
NM
20.7%
46.8%
34.4%
$29.00
$1,206
($69)
1.6x
2.0x
100.6%
NM
(7.9%)
(13.4%)
(31.6%)
Source: Capital IQ
24
Q4 2014 IPOs
HubSpot (HUBS)
Lending Club (LC)
 Date of IPO: 10/09/2014
 Date of IPO: 12/11/2014
 Exchange: NYSE
 Exchange: NYSE
 Offer Size: $125 mm
 Offer Size: $870 mm
 Commentary: HubSpot, which provides software
that helps small and midsize companies increase
their business by using web content, priced its shares
above the expected $22-$24 range at $25. Closing
up 20% on its first day of trading, the Company’s
successful debut is a significant benchmark for future
IPOs of unprofitable companies that demonstrate fast
revenue growth. The Company claims it will use the
funds raised to support operations.
 Commentary: Lending Club, a peer-to-peer money
lending platform that connects borrowers and
investors, saw its stock soar 56% on its market
debut. The Company’s IPO marked the first of a
slew of lending businesses looking for increased
liquidity by going public. This is partially due to
regulators prohibiting lending companies from being
acquired. Lending Club will use the proceeds for
working capital, expenditures and debt repayment.
$50
$40
$40
12/31 Price: $33.61
$30
12/31 Price: $25.30
$30
$20
Offer Price: $25.00
$20
Offer Price: $15.00
$10
$10
$0
9/30/2014
10/31/2014
11/30/2014
$0
9/30/2014
12/31/2014
Source: Capital IQ, Wall Street Research
25
10/31/2014
11/30/2014
12/31/2014
Q4 2014 IPOs
Momo (MOMO)
New Relic (NEWR)
 Date of IPO: 12/11/2014
 Date of IPO: 12/12/2014
 Exchange: NASDAQ
 Exchange: NYSE
 Offer Size: $276 mm
 Offer Size: $115 mm
 Commentary: Momo, the China-based company that
operates a popular mobile-based social networking
platform for meeting and messaging, surged 26% on
its first day of trading to $17.02. the Company’s
popular debut comes as Internet-based messaging
platforms are displacing traditional text services
offered by wireless carriers. However, Momo’s coFounder Tang Yan is being accused of violating terms
of his employment agreement by NetEase.
 Commentary: New Relic, the software analytics
company that monitors the performance of mobile
applications in real time, sold its shares above the
expected $20-$22 range at $23. In what proved to
be a good week for tech IPOs, the Company’s stock
closed up 47% at $33.82 thanks in part to the
resurgence of big data companies threatening older
tech companies like Oracle and IBM. The Company
plans to use the cash raised on expansion.
$25
$40
12/31 Price: $34.84
$20
$30
$15
Offer Price: $13.50
$20
$10
Offer Price: $23.00
12/31 Price: $12.00
$10
$5
$0
9/30/2014
10/31/2014
11/30/2014
$0
9/30/2014
12/31/2014
Source: Capital IQ, Wall Street Research
26
10/31/2014
11/30/2014
12/31/2014
Q4 2014 IPOs
OnDeck (ONDK)
Wayfair (W)
 Date of IPO: 12/16/2014
 Date of IPO: 10/02/2014
 Exchange: NYSE
 Exchange: NYSE
 Offer Size: $200 mm
 Offer Size: $319 mm
 Commentary: On the heels of Lending Club’s
success, OnDeck, which makes loans to small
businesses, priced its shares well above the
expected $16-$18 range at $20. The high priced
market entrance punctuates how Wall Street has
become enamored with “alternative lending” startups
posing new, tech-driven approaches to an
underserved industry. Proceeds from the IPO are
expected to be used on marketing and to fund loans.
 Commentary: Wayfair, the online retailer of home
goods, watched its price sky rocket 30% on its first
day of trading, but has since seen it regress to
below the offer price of $29. Market concerns over
heavy competition in online retail as well as the
Company’s brand anonymity have caused the stock
to fall despite its strong start. The Company plans to
use the money raised to pay a $21M cash dividend
to shareholders and to fund possible acquisitions.
$30
$40
$25
12/31 Price: $22.43
Offer Price: $29.00
$30
$20
Offer Price: $20.00
$15
$20
12/31 Price: $19.85
$10
$10
$5
$0
9/30/2014
10/31/2014
11/30/2014
$0
9/30/2014
12/31/2014
Source: Capital IQ, Wall Street Research
27
10/31/2014
11/30/2014
12/31/2014
Disclaimer
This document has been prepared by Signal Hill Capital Group LLC (“Signal Hill”) solely for informational purposes from information supplied by
various sources and Signal Hill’s independent research. The information contained herein has been prepared to assist parties in making their
own evaluation of the Internet and Digital Media sector, and to suggest that further analysis and consideration may be warranted. Unless
otherwise indicated, Signal Hill does not believe that the information contained herein is sufficient to serve as the basis of an investment
decision. To learn more about the information that is the subject of this commentary, contact one of the person(s) named herein who can
provide additional insight.
28
Appendix A: Signal Hill Investment Banking
29
Signal Hill at a Glance
Signal Hill, named 2014 Boutique Investment Bank of the Year by the Global M&A Network, is a leading independent
advisory boutique serving the M&A and private capital raising needs of growth companies. Signal Hill's
experienced bankers provide deep domain expertise and an unyielding commitment to clients in our sectors:
Internet & Digital Media, Internet Infrastructure, Services and Software. With more than 600 completed transactions
and offices in Baltimore, Bangalore, Boston, Mumbai, Nashville, New York, Reston and San Francisco, Signal Hill
leverages deep strategic industry and financial sponsor relationships to help our clients achieve Greater
Outcomes®.
More than 80 Completed Transactions since January 2012

Mergers &
Acquisitions

Equity Private
Placements

Restructurings

Strategic
Advisory

Special
Committee
Advisory

Fairness
Opinions
30
Deep Domain Expertise in Key Growth Sectors
Longstanding Relationships with Key Sponsors and Strategic Players
Digital Media
e-Commerce
Interactive Marketing
Internet
Content/Services
Services
Correctional/Behavioral
Education
Healthcare
Specialty
Consulting/BPO
Internet
Infrastructure
Cloud Services/Hosting
Colocation
Fiber Infrastructure
Unified Coms & Apps
Software
Enterprise/SaaS
Financial Technology
Healthcare IT
Infrastructure
Mobility
Security & Compliance
31
Leadership in Internet & Digital Media
Previous Experience
32
Focus and Tenacity Yields Superior Outcomes for Our Clients
We Work with Leading Acquirers
 With Arbitron, Nielsen will enhance its media measurement abilities specifically in the
outdoors and sports events categories, as well as its reach into consumer habits
 Targeted marketing and coupon services for manufacturers of grocery and consumer
products enables Google to deliver more personalized deals for its commerce
initiatives
 A platform for managing marketing on multiple social channels through a single
interface
 Allows Oracle to help brands create custom applications as marketing trends change
 A multimedia technology company with expertise in creating online marketplaces for
passionate enthusiast groups
 Increased ability to serve customers via the integration of physical and digital small
business identity and marketing
 A US based leader in merchant-funded transaction-driven marketing for electronic
banking
 A leading provider of television advertising solutions
 With Navic, Microsoft ‘s advertising platform facilitates enhanced digital advertising
 Deal done despite Microsoft’s public bid for Yahoo!
 Early in revenue generation
 4.6x LTM revenue multiple; 24.2x LTM EBITDA multiple
 Received multiple offers from strategic and financial buyers
 Move to establish Nokia as a leader in Internet Services
 While Nokia was the natural buyer, establishing a credible feeling of competition was
critical
 Accelerates transformation to cloud-based learning and provides geographic
expansion and diversified user base with over 16 million members from 195 countries
* Certain transactions completed by team members at prior firms
33
High Quality Strategic Private Placements
34
Global Footprint and Access
Canada
Europe
Latin America
35
Asia
Member, FINRA
www.signalhill.com
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