GP Bullhound-2021年第1季度软件洞察（英文）-2021.4正式版

Q12021SoftwaresectorupdateQualitativeinsightsintobroaderSoftwaretrendsandpublicandprivatevaluationsacrossthetransactionspectrum,andinterviewswithtoday’sleaderstransformingthesector.ImportantdisclosuresappearattheendofthisreportGPBullhoundLLPisauthorizedandregulatedbytheFinancialConductAuthorityGPBullhoundIncisamemberofFINRATakeaways▪▪▪BusinessesacrossallindustrieshaveadoptedbeacontechnologyUsecasesprevalentinretail,education,transportation,andmoreMarketforbeacontechnologylikelytogrowsignificantlyBEACONTECHNOLOGYGROWING▪▪▪OrganisationsarelookingforwaystomanagetheircomplextechstacksEnterprisesnowrecognisetheimportanceofeffectiveSaaSmanagementSoftwareisthemodern-dayconveyorbeltforenterprisesSAASBLOATGETSBULLDOZEDTHE

VIEWCoreHRsoftwareimplementationisacceleratinginSMEs▪▪▪SMEDIGITISATIONVIAHRSAASQ1SoftwareperspectivesfromGPBullhoundAlotofSMEscurrentlydonothaveanyHRsoftwaresolutionsinplaceCompaniesarelookingtodigitisetraditionalHRandrecruitingprocesses▪▪▪IncreasedcompetitionmeansfocusonfindingnewavenuesfordifferentiationAnewcropofcompaniesaimingtoprovidefull-stackonboardingexperienceHigh-qualityonboardinghelpscompaniesachievehighercustomerretentionONBOARDINGDIFFERENTIATION▪▪▪‘Micro-SaaS’businesseshavenarrowfocuses,leanteams,andlowcostsDevelopersofferingsinglespecialisedplatformsorsmallsetofspecialisedtoolsCustomersreducecostandincreasecustomisation,developerskeepcostslowMICRO-SAAS▪▪▪WaveoflargetransactionsintheMarTechspaceMARTECHCONSOLIDATIONCustomerengagement/experiencecompaniestocontinuetobeacquisitiveCustomerDataPlatforms(CDPs)havebecomecriticalpartofMarTechstack2ALEADINGTECHNOLOGYADVISORYANDINVESTMENTFIRM,PROVIDINGTRANSACTIONADVICEANDCAPITAL.GPBullhound’srecentSoftwareactivitySOLDTOSOLDTOSOLDTOINVESTMENTBYINVESTMENTBYSOLDTOInvestmentBankingINVESTMENTINSOLDTOSOLDTOINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYFundIVFundIIIFundIVFundVFundIVInvestmentManagementINVESTMENTBYINVESTMENTBYINVESTMENTBYINVESTMENTBYFundIIIFundIVFundIVFundIV3TakeawaysGPBULLHOUND’SSECTORTAKEAWAYSQ1SoftwareperspectivesfromGPBullhoundRapidlygrowingbeacontechnologymarketdespiteconsumer-firstpoliciesSelecttransactionsinQ12021▪▪Businessesacrossallindustrieshaveadoptedbeacontechnology,leveragingitforadvancedmobileappfunctionality.Beacontechnology’susecaseshavebecomeincrediblyprevalentintheretail,education,transportation,healthcare,andhospitalitysectors.SOLDTO‒Usecasesprimarilyinvolveleveraginguserlocationdatatocreateahighlypersonalisedcustomer-centricapproach.DEALDATE:MAR-21TTV:$20M▪Themarketforbeacontechnologyissettogrowsignificantlyascompaniesarelookingtocontinuouslyimprovetheircustomerinsightsandexperiences.EV/REV:N/ASaaSbloatgetsbulldozedINVESTMENTBYFundV▪▪▪AsSaaS,amarketthatgenerated$104bnofrevenuein2020andisprojectedtogrowmorethan15%in2021,accordingtoGarner,continuestoinherittheworld,organisationshavebeguntolookforwaystoaggregate,controlandmanagetheirSaaSsubscriptionandinternalsoftwareecosystems.DEALDATE:MAR-21TTV:$275MApproachestoSaaSmanagementhavevariedgreatly,fromintegrationasaserviceplatformconnectingallsoftwareapplicationsinanenterprisetoothersolutionsfocusingonsolvingaspecifictaskandleveragingvariousplatformsasneeded.Regardlessoftheapproach,allenterprisesnowrecognisetheimportanceofSaaSeffectivemanagement.INVESTMENTBYEnterprisesarenowdetermininghowtooptimiseandproperlyintegratetheirsoftwareandtorealisesynergiesandcreateaconsolidated,simplified,andseamlesstechstack.DEALDATE:APR-21TTV:$68MEV/REV:10.6XSources:Buildfire(asof24February2021),Beaconstack(asof28December2020),P(asof25November2020);Zylo(asof24February2021),TechCrunch(asof16February2021),onboard.io(asof24February2021),InsideIndianaBusiness(asof29October2019),andCleanshelf(asof18September2020)4TakeawaysGPBULLHOUND’SSECTORTAKEAWAYSQ1SoftwareperspectivesfromGPBullhoundSelectStrongaccelerationofdigitisationinSMEs,withHRsoftwareatthecoreinaworldofremoteworkinginvestmentmanagementtransactions▪▪▪▪CoreHRsoftwareimplementationacceleratinginSMEsdrivenbytheneedtoincreaseefficiencies,competitionforgoodtalentandtheriseofremoteworkforces.AlotofSMB’sdon’thaveHRsoftwaresolutionsinplace-implementingcoreHRsoftwareplatformsallowsthemtodigitisedailyHRprocesses,driveefficienciesandfreeupHRstafftofocusonstrategicandvalue-addtasks.INVESTMENTBYFundVHistoricallySMBsfocusedonoptimisingsales&marketingthroughsoftware,butcompanieshaverealisedthatHRandtalentisatthecoreandnowplaceparticularemphasisonoptimisingthisfunction.DEALDATE:MAR-21TTV:$275MCOVIDhasonlyacceleratedthefocusonHRsoftwareaboveandbeyondcoreHRprocesses,asproductivityandemployeeengagementhavebecomemoreimportantthanever.OnboardingbecomesapointofdifferentiationforSaaScompaniesINVESTMENTBYFundIV▪▪▪▪TheSaaSmarkethasbecomeincreasinglycompetitiveoverthepastfewyearsassoftwaretakescontrolofvirtuallyeveryworkflowinmodernenterprises.Thishasledtoanincreasedfocusonfindingnewavenuesfordifferentiation.DEALDATE:MAY-18TTV:$427MCurrently,manycompaniesusediscretesoftwareplatformsforonboardingactivitiessuchasproducttours,customermessaging,andhelpdeskservices.Thoughthesesolutionsarehelpful,theyoftenarenotsufficient.Thishasledtoanewcropofcompaniesaimingtoprovideafull-stackonboardingexperiencethatleadsnewcustomersfromnovicetopro.INVESTMENTBYHigh-qualityonboardinghelpscompaniesunderstandtheircustomersbetter,whichcanleadtoimprovedcustomersatisfactionandultimatelyhighercustomerretention.FundIIIDEALDATE:FEB-14TTV:N/A5Sources:UserGuiding(asof6April2021)andRecur(asof27April2020)TakeawaysGPBULLHOUND’SSECTORTAKEAWAYSQ1SoftwareperspectivesfromGPBullhoundSelectinvestmentbankingtransactionsMicro-SaaSmakingwaves▪▪▪Weareseeing‘micro-SaaS’businesses,definedasSaaSbusinesseswithnarrowfocuses,leanteamsandlowcosts,startingtoreceiveattentionfromdevelopersandendusers.Micro-SaaSdevelopersareofferingasinglespecialisedplatformorsmallsetofspecialisedtoolswithanAPIforintegrationwithotherexternalplatforms/services.INVESTMENTBYWhilethismayincreaseoverallcomplexityofone'stechstack,customersareabletobuildouttechstacksthatarehighlyspecialised,costeffectiveanddecentralisedwhiledevelopersareabletokeepcostslowandavoiddistraction.DEALDATE:DEC-19TTV:$45MEV/REV:N/AMassconsolidationacrosstheMarTechlandscapeINVESTMENTBY▪▪▪▪Q42020andQ12021sawawaveoflargetransactionsintheMarTechspaceascompaniesandconsumersrapidlysearchedformoreseamlesswaystocommunicate,co-ordinateandcollaborateacrossachangingdigitallandscape.DEALDATE:JUL-19TTV:£157MEV/REV:N/AWithpeopleworkingremotely,therehasbeenanincreaseddemandandstrainputondigitalchannelsthatpeopleusetocommunicatewithorganisationswhentheyhavequestionsorproblems.Softwarecompaniesincustomerengagement(e.g.,Sinchraising$690m)anddigitalexperiencemanagement(e.g.,Sitecoreraising$1.2bn)havebenefitedfromthesetailwindsandmaycontinuetobehighlyacquisitivethrough2021.SOLDTOCustomerDataPlatforms(CDPs)havebecomeacriticalpartoftheMarTechstackbytakingindatafromcustomerservice,CRMande-commerceapplications,andfeedingintomarketingautomationtoolsandothersystemsthatneedreal-timeviewsofcustomeractivity.DEALDATE:JAN-20TTV:$30MEV/REV:N/A▪Q12021sawseveralacquisitionsofCDPsbycontactcentreanddigitalexperiencemanagementvendors,seekingtogaina360-degreeviewoftheircustomersanddeliverpersonalisedexperiencesacrossallchannels.6Sources:Trends.vcandTylerTringas(asof22February2021),Koombea(asof15December2020),andUpland,Sitecore,mparticle,Techcrunch,andTechtarget(asof29March2021)TransactiontrendsNOTABLESOFTWAREM&ADEALS&PRIVATEFINANCINGSTheusualsuspectscontinuedmakingdealsinQ12021SelectedM&AtransactionsSelectedprivatefinancingsDateBuyerTargetTargetdescriptionValue($m)EV/LTMRevDateLeadinvestorIssuerIssuerdescriptionValue($m)Providerofcloud-basedunifiedcommunicationsservicestosmall-andmid-sizedbusinessesProvidesanAIplatformforpredictingcompaniesinthemarketlookingtopurchasesolutionsMar-315601,0005007.0xMar-30125ProvidesacustomerexperienceandintelligenceplatformDeveloperofsoftwareforthetradesindustryfocusingonSMBMar-23Mar-23Mar-11Mar-10Mar-04Feb-18Feb-10Feb-09--Mar-29Mar-17Mar-15Mar-03Feb-16Jan-17Jan-27Jan-22500140270150100125350700DeveloperofacarecoordinationplatformdesignedtoconnecthealthcareprovidersProviderofasoftwaredevelopmentprogrammethatallowsprocessestobedistributedacrossanetworkDeveloperofcloud-basedPOSandretailmanagementsoftwareProviderofcloud-basedno-codespreadsheetsandrelationaldatabasesforproductivity35010.3x9.0x-IntegratesdataandapplicationsinrealtimeacrossmodernbigdataandcloudenvironmentsDeveloperofrevenueoutcomepredictionsoftware2,838221SpecialisesinemployeeschedulingtoprovideoptimalforecastingandcostmanagementSpecialisesinclouddataintegrationandwarehousingfordatamanagementandtranslationProvidesadataplatformfortime-seriesloggingandeventanalysisProvidesanend-to-endHRplatformfocusedonSMBclients392-DeveloperofashowingmanagementandplatformforrealestateProviderofsubscription-basedschedulingsoftwarethateliminatesback-and-forthemails50020.0x8.2xDeveloperofacloud-basedsocialcommunicationandentertainmentplatformProvidesenterprise-gradeAIforplatformsandapplicationstoacceleratethedigitaltransformation1,7257Sources:CapitalIQandPitchbook(asof31March2021),andGPBullhoundintelligenceTransactiontrendsGLOBALSOFTWARETRANSACTIONTRENDSGlobalM&AandprivateplacementscontinueuptrendContinuedmomentuminglobalM&A/buyoutsSharpuptickinglobalprivateplacementvolume$50bn$45bn$40bn$35bn$30bn$25bn$20bn$15bn$10bn$5bn4,0003,5003,0002,5002,0001,5001,000500$140bn$120bn$100bn$80bn$60bn$40bn$20bn$0m8007006005004003002001000$0m0M&ABuyoutM&AdealsBuyoutdealsCapitalinvested($bn)VolumeEuropeanM&A/buyoutscontinuestronggrowthUS&CanadaclawbacksharefromAsia100%90%80%70%60%50%40%30%20%10%0%100%90%80%70%60%50%40%30%20%10%0%U.S.&CanadaEuropeAsiaOtherU.S.&CanadaEuropeAsiaOther8Sources:Pitchbook(asof31March2021);Note:DataincludesallSaaSM&AandprivateplacementdealsasdefinedbyPitchbookregardlessofgeographyortransactionsizeTransactiontrendsSOFTWAREIPOLANDSCAPENewGPBullhoundSaaSindexconstituentsListed–

Q12021▪Description(NYSE:SEMR):Providerofanonlinevisibilityplatformthatenablessubscriberstoimprovetheironlinevisibilityanddrivetraffictowebsitesandsocialmediaaccounts▪▪▪Offeringprice/share:$14.00LTM3/31/21netrevenue:$125mSelectedmetrics:▪Description(NASDAQ:BMBL):Providerofaconsumersubscriptionsoftwareplatformfordatingandmeetingnewpeople▪▪▪Offeringprice/share:$43.00LTM3/31/21netrevenue:$582mSelectedmetrics:▪▪▪▪Founded:2014––––50%+RevenueCAGRfrom2016to2020114%dollar-basedretention67k+currentcustomers––––42mmonthlyactiveusers22.4mpayingusers2▪▪▪▪Founded:2008Listingdate:11February2021Offeringamount:$2.1bnraisedEnterprisevalue1:$7.9bnListingdate:29March2021Offeringamount:$140mraisedEnterprisevalue1:$1.6bn36.1bnmessagessent2$26.84BumbleappARPPU3$2,1232020ARRpercustomer▪Description(NYSE:OLO):Digitalorderingsoftwareforrestaurantbrandsanddeliveryprogrammesviathird-partymarketplaces▪▪▪Offeringprice/share:$25.00LTM3/31/21netrevenue:$98mSelectedmetrics:▪Description(NASDAQ:XM):Providerofasoftwareplatformtohelporganisationscollectdataforemployeecustomerexperience▪▪▪Offeringprice/share:$30.00LTM3/31/21netrevenue:$764mSelectedmetrics:▪▪▪▪Founded:2005▪▪▪▪Founded:2002––––1.8mordersperday–––34%YoYsubscriptionrev.growth2120%netrevenueretentionListingdate:17March2021Offeringamount:$450mraisedEnterprisevalue1:$3.9bnListingdate:28January2021Offeringamount:$1.5bnraisedEnterprisevalue1:$16.9bn94%2020YoYrevenuegrowth120%netrevenueretention1,200+customerswith$100k+inARR2020GMVof$14.6bnpaidthroughplatformListingstolookforinQ22021CompanyOverview▪Description(NYSE:RBLX):EntertainmentplatformandSDKwhereuserscaninteractanddevelopimmersive3Dexperiences▪▪▪Offeringprice/share:$45.00LTM3/31/21netrevenue:$924mSelectedmetrics:Providesacustomerexperiencemanagementplatformforenterprises▪▪▪▪Founded:2004––––31.1mdailyactiveusers2DeveloperofaroboticprocessautomationplatformtohelporganisationsautomatebusinessprocessesListingdate:10March2021Offeringamount:DirectlistingEnterprisevalue1:$35.1bn22.1mhoursengaged2$39.93averagebookingsperDAU2170%bookingsgrowthfortheninemonthsended30September2020Developerofanapplicationforon-demanddelivery9Sources:CompanySECfilingsfromEdgarandCapitalIQ(asof31March2021);Note:1)Asof31March2021;2)Figuresrepresentativeasofninemonthsending30September2020;and3)AveragerevenueperpayinguserPubliccompanyanalysesREVENUEMULTIPLETRENDS–

LAST5YEARSGPBullhoundSaaSindexvaluationsCurrentSaaSvaluationsremainstrongagainstthe5-yearmeanAsof31March,theSaaSIndexistradingat16.3xtrailing12-monthrevenues,whichis53%greaterthanthe5-yearaverageAsof31March,theSaaSIndexistradingat13.0xnext12-monthrevenues,whichis47%greaterthanthe5-yearaverage21xMarch2020:Afterabriefinitialsell-off,SaaSstocksenjoyedsignificantappreciationthankstotheforceddigitisationoftheworldcausedbyCOVID-1916x11x6xMean:10.7xMean:8.8xFebruary/March2021:ThoughSaaSvaluationsarestillDecember2018:TradewarwithChinaleadstosell-offofSaaSstockssignificantlyabovehistoricallevels,anewUSpresidentialadministration,inflationconcerns,andrisinginterestratescontributedtoamodestpullbackoftheSaaSIndex1x3/31/20163/31/20173/31/20183/31/20193/31/20203/31/2021GPBSaaSIndex-EV/LTMRevenuesGPBSaaSIndex-EV/NTMRevenues10Sources:WallStreetJournalandCapitalIQ(asof31March2021)PubliccompanyanalysesGPBULLHOUNDSAASINDEXPERFORMANCERecentsectorsell-offshaveimpactedshort-termperformanceL1ML3M110%115%110%105%100%95%105%100%95%90%85%80%101.8%97.5%105.8%102.8%87.8%92.3%90%85%1-Mar6-Mar11-Mar16-Mar21-Mar26-Mar31-Mar31-Dec-2031-Jan-2128-Feb-21S&P50031-Mar-21GPBSaaSIndex-IndexValueS&P500NASDAQCompositeGPBSaaSIndex-IndexValueNASDAQCompositeL6ML12M240%130%220%200%180%160%140%120%100%197.4%172.0%118.6%120%110%100%90%118.1%104.6%153.7%80%Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-21Mar-20Jun-20Sep-20Dec-20Mar-21GPBSaaSIndex-IndexValueS&P500NASDAQCompositeGPBSaaSIndex-IndexValueS&P500NASDAQComposite11Sources:CapitalIQasof31March2021PubliccompanyanalysesPUBLICSAASMETRICBENCHMARKINGKeymetricsforSaaSinvestorsRevenueYoYgrowth(1)Paybackperiod(2)Inmonths,lowerisbetter90%85%80%3530.830252070%23.824.260%22.222.222.522.822.820.519.750%40%18.217.217.338%38%38%37%36%40%30%20%10%0%34%32%13.630%30%29%29%1510529%11.727%10.525%23%9.321%20%20%7.98.87.40Freecashflowmargin(3)Netdollarretention(4)50%180%45%165%40%38%40%30%20%10%0%160%140%120%100%80%60%40%20%0%31%142%137%23%130%20%125%124%18%120%120%119%15%15%15%115%10%8%102%97%3%2%-10%-20%-30%-40%-50%-4%-7%-8%-23%-27%-41%Sources:CapitalIQ,companySECfilings,andGPBullhoundestimates(asof31March2021);Note:1)CY21E/CY20A;2)(S&MLTMDec.2019/((LTMDec.2020rev.–

LTMSep.2019rev.)*GM%))/12;3)LTMDec.2020operatingcashflow/LTMDec.2020revenue;and4)asstatedincompanyfilings&earningsreleases12PubliccompanyanalysesPUBLICSAASMETRICBENCHMARKINGGPBullhoundSaaSindex–

netdollarretentionNetdollarretentionExceptionalBest-in-classVerygoodGood180%160%140%120%100%80%165%142%137%130%125%124%120%120%119%Median:122%115%102%97%60%40%20%0%SnowflakeUnityTwilioDataDogSlackVeevaOktaDocusignCloudflareAsanaHubspotServiceNow13Sources:CompanySECfilingsandGPBullhoundestimatesPubliccompanyanalysesPUBLICSAASMETRICBENCHMARKINGRetentionisthemostimportantdeterminantofvaluationWeexaminedtheimpactofretentiononvaluationbycreatinga‘GPBSaaSScore’,definedasrevenuegrowth+FCFmargin+netdollarretention.Weareobservingthatthesecompanieswithhigherretentionsaretradingatmoreattractivevaluationsinpublicmarkets.60xSnowflake55x50x45x40xCloudflare35xDataDogTrendline(expectedvaluation)UnityOkta30x25x20x15x10xTwilioVeevaSlackHubspotAsanaDocusignServiceNow160%100%120%140%180%200%220%240%GPBullhoundSaaSScore14Sources:CapitalIQandcompanySECfilings(asof31March2021)PubliccompanyanalysesREVENUEGROWTHVS.PROFITABILITYOFGPBULLHOUNDSAASINDEXCONSTITUENTSRuleof40%–

PublicSaaS50.0%NOW40.0%MCFEZSCOUPDOCUCLDRBOXWDAYCRMMIMEDTSUMOQLYSVEEVUPLD30.0%20.0%10.0%0.0%SPTQTWOZENPSOKTAPLTRCSODPLANTENBPDBLFROGTWLOESTCMDLAFIVNAYXRPEVBGPCTYWKPAYCLPSNNEWRAPPNDDOGWIXRNGTLNDMSPRXTHUBSDBXMDBTWOUSHOPZUOSPSCJCOMSINCHECOMBCOVPINGSPLKUSCWXNETRuleof40%line(10.0%)0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%2020revenuegrowth15Sources:CapitalIQ(asof31March2021)PubliccompanyanalysesCOMPANIESHIGHERONTHERULEOF40%SCALEAREGENERALLYVALUEDHIGHERBYINVESTORSRuleof40%–PublicSaaS(cont’d)MarketunderperformersMarketperformersMarketoutperformers20x18x16x14x12x10x8xWIXPCTYQTWOZENPDTrendline(expectedvaluation)WKWDAYSUMOAYXMDLALPSNSPSCQLYSTENBCRMPINGMSPRPEGHTPSUPLDTLNDYEXTMIMENEWRCSODZUO6xCLDRBCOVECOMRXTJCOMMCFEDBX4xTWOUSCWX10.0%BOX2xRuleof40%line0x0.0%20.0%30.0%40.0%50.0%60.0%70.0%2020revenuegrowth+unleveredFCFmargin16Sources:CapitalIQ(asof31March2021)PubliccompanyanalysesCAPITALALLOCATIONTechgiants–

showmethemoney▪Techcompaniesareallocatingcapitaltowardsdebtpaydowntodeleverageandfreeupfuturecashflowinpreparationfortheimpendingeconomicrecovery▪▪▪Capexspendisdownascompanieshaverealisedthattheydonotneedtoinvestinphysicalspaceduetohybrid/fullyremoteworkpoliciesRecord-highvaluationshavecausedconsolidatorstobemoreselectivewiththeiropportunities,leadingtoacontractioninacquisitionspendingR&D,whileslightlybelowthepreviousperiod,isstillstrong,signalingthatcompaniesarestillfocusedondevelopingnewproductsandservicesLTM(Q12021)%ofoperatingcashflow$m(1)LTM-1(Q12020)%ofoperatingcashflow$m(1)$32,602$1,387$36,334$1,061$1,701$982$5,616$10,562$2,267$2,212$137,052$103,630$88,598$135,740$71,888$77,589$1,592$3,687$83,841$5,716$80,384$4,454$304$663350%300%250%200%150%▪

R&D100%50%0%0%50%100%150%200%250%300%350%▪

Capex▪

Debtpaydown▪

Sharebuybacks▪

Dividends▪

Acquisitions17Sources:CapitalIQ(asof31March2021);Note:Existingcashbalancesallowcompaniestospendover100%ofoperatingcashflow;and1)DollaramountsrepresenttotalcashuseduringtheLTMperiodCEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORStefanvonLieven,CEOofartegicSTEFANVONLIEVENCEO,ARTEGIC“Customer-centriccommunicationiscomplexandoperationallydemanding.Everynewchannel,everydatasourceandeverypersonalisationrefinementjustincreasesthecomplexityofthejob.Wealsoseethehandlingofhighvolumesoffragmentedcontentatspeedbecominganimportantissueincustomercentriccommunication.Ourtechnologyenablesenterprisemarketerstodriveresultsincustomer-centriccampaignsandallowsenterprisestoleveragecustomerinteractionintherightcontextandtherightmoment,automateandoptimisecontent,andimproveresultsbyupto574%.”InvestorsartegicprovideshighlyindividualisedandfullyGDPRcompliantreal-timeSaaSmarketingautomationsolutionsandmarketingcampaignmanagementtools.artegic’sELAINEtechnologyseamlesslyintegratesintodifferentITlandscapesviaflexibleAPIs.artegiccountsone-thirdofallDAXcompanies,suchasBMW,DHL,andDeutscheTelekom,asclients,powering2.7bne-mailsandmobilemessagespermonthin141countries.18CEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORBrianRue,CEOofRollbarBRIANRUECEO,ROLLBAR“Everythingissoftware.Softwareismadeofcode.Thehardtruthaboutcodeisthatitwillneverbeperfect.Thewayweshouldthinkaboutcodeisnotperfection,butimprovement.AsCIOsandCTOsdealwithagrowingdevelopertalentshortageandexponentialsoftwarecomplexity,theleaderswhoadoptprocessestoexpectcodeproblemseverywhere(eveninproduction)anddealwiththemproactivelyinreal-time(especiallyinproduction)willhaveacompetitiveadvantagethatenablesfasterreleases,fastertimetomarket,andabettercustomerexperience.”InvestorsRollbaristheleadingcontinuouscodeimprovementplatformthatproactivelydiscovers,predicts,andremediateserrorswithreal-timeAI-assistedworkflows.WithRollbar,developerscontinuallyimprovetheircodeandconstantlyinnovateratherthanspendingtimemonitoring,investigating,anddebugging.Morethan100,000developersatover5,000customersuseRollbartools,includingSalesforce,Duolingo,Affirm,Twilio,andZendesk.19CEOcommentaryLEADINGCOMPANIESANDCEOSTRANSFORMINGTHESECTORDavidSanderson,CEOofReelgoodDAVIDSANDERSONCEO,REELGOOD“Anytimeanindustrygetsfragmented,anaggregatoremergestoservethebestinterestoftheconsumer—youcanseethiswiththelikesofKayakandTrulia.”InvestorsReelgoodisanall-in-onestreamingTVguide.ItisaSanFrancisco-basedSeriesAstart-upofferingafreeconsumerproductaswellasB2Bproducts.Reelgood’sproductsarethebackendthatpowermuchofthestreamingindustrytoday,frommajorsearchenginestoset-topboxes,cableproviders,andtelecoms.20PubliccomparablesGPBULLHOUNDSAASINDEXPUBLICCOMPARABLESPubliccomps–

GPBullhoundSaaSindexCYSharePriceMarketCapRevenueGrowthCY20AMarginsSharePricePerformanceEVCash(m)EV/RevenueCY20A8.9xEV/EBITDACY20A60.7xNMCompanyNameSalesforceShopifyHQEmployee3/31/21LTML6M(15.7%)8.2%L1M(m)$195,132137,273103,22098,07294,36766,19360,36858,09252,70342,44139,76739,09128,92327,87726,95625,54323,33722,19721,69821,36721,04618,53916,36315,79615,61713,63212,54111,97211,45211,056(m)LTM8.9xCY21E7.4xLTM60.7xNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNMNM39.4xCY21E24.8xNM21/2021.1%39.6%49.1%26.8%43.9%84.7%15.7%38.1%23.4%33.8%20.4%35.9%30.3%25.2%36.7%38.2%37.2%13.8%37.5%20.0%32.3%25.4%29.4%29.9%26.0%24.8%9.7%GrossEBITDA14.7%8.0%USCAUSUSUSUSUSUSAUUSUSUSUSUSUSUSUSUSUSUSUSUSUSIL56,6067,0005,47713,0964,4222,49512,5004,6295,7522,4394,5065,6302,8064,0013,1402,1852,0206,5001,7884,2184,2252,6152,5393,8694,1302,2435,974618$211.8747.2%(2.1%)(13.6%)(1.3%)(6.3%)(14.0%)(11.7%)1.3%$189,579131,788102,48497,11590,22961,32459,07155,65951,81140,88638,16639,23328,30526,24927,77824,66922,83323,03621,09021,27420,58319,48316,46715,15415,39413,83213,06411,18511,22411,055$11,9666,3973,8533,0924,2453,9083,5363,0401,7862,0111,66477477.8%53.0%29.2%82.1%69.2%64.5%76.9%55.2%NA1,106.50165.4%45.0x10.8x21.5x34.0xNM45.0x10.8x21.5x34.0xNM32.2x7.2xSquare227.05500.11321.29229.28248.43340.76210.7623.29333.5%74.5%119.9%NA39.7%3.1%NMNM0.5%ServiceNowZoom16.9x23.6x56.1x11.8x22.9x25.0x28.0x21.6x19.9x26.0x27.1x18.7x29.6x31.0x9.1xNM55.3xNM11.8%26.3%(90.2%)2.9%(31.7%)(8.7%)15.5%37.9%15.9%145.2%(7.1%)(5.9%)3.1%NMSnowflakeWorkdayTwilioNMNM90.8%280.8%53.5%NA13.7x31.6x30.9x37.4x26.1x27.0x33.9x34.0x25.6x40.9x42.6x10.3x48.9x25.3x23.3x36.0x27.9x15.3x15.0x21.0x15.5x65.4x11.5x5.8x13.7x31.6x30.9x37.4x26.1x27.0x33.9x34.0x25.6x40.9x42.6x10.3x48.9x25.3x23.3x36.0x27.9x15.3x15.0x21.0x15.5x65.4x11.5x5.8xNM50.5xNM(13.3%)(11.3%)(2.6%)(6.7%)(10.7%)(15.7%)(6.8%)(21.2%)(12.7%)(16.3%)(5.3%)(5.0%)(1.1%)(11.8%)(26.5%)(30.7%)(19.9%)(9.3%)(3.1%)(6.0%)(11.8%)(6.2%)18.3%NM(17.5%)3.0%AtlassianPalantirNMNMNMNM76.8%74.2%78.4%77.7%79.0%76.4%79.1%NA(106.1%)27.8%(7.5%)(21.4%)(29.5%)(3.5%)0.1%Veeva261.24202.45220.43100.31297.8883.3467.1%119.1%80.3%NANM56.1xNMDocuSignOktaNM2,5871,752640NMNMUnity14.9%8.5%NMNMRingCentralDatadogZscaler40.6%131.6%182.1%7.3%NMNM(18.4%)22.0%(28.0%)71.1%18.9%55.4%(7.2%)15.5%9.6%1,5171,4451,8591,036152NMNM171.67135.4870.26NMNM(25.9%)(30.3%)(15.5%)25.2%(3.4%)(15.6%)(32.4%)(18.2%)(10.4%)18.9%7.2%SplunkNMNM78.9%77.4%85.7%82.2%71.3%72.4%70.1%78.1%NACloudflarePaycomHubSpotCoupa199.2%83.2%241.0%82.1%95.9%176.9%107.2%102.3%68.3%325.4%346.3%47.3%35.6x21.1x17.6x28.7x21