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©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

1

3) Representative Software Transactions

Regulatory Intelligence

Software

Acquired by

Logistics Data Entry

Automation Software

Acquired by

Property Tax & Transfer

Pricing Software

Acquired by

a portfolio company of

Legal & Tax Professional

Learning Software

Acquired by

a portfolio company of

Corporate Compliance

Software

Acquired by

a portfolio company of

KPMG Corporate Finance – Software Investment Banking Overview

Construction Software

Acquired by

a portfolio company of

Recruitment Software

Capital Raise

Energy & Building Analytics

Software

Acquired by

Enterprise Workload

Automation Software

Acquired by

a portfolio company of

Wealth Management

Software

Acquired by

a portfolio company of

5,564

6,111

6,581

8,905

9,173

Ernst & Young

Deloitte

Houlihan Lokey

PwC

KPMG

(3) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms

Global KPMG

Professionals

265,000+

M&A Transactions

Closed since 2013

5,000+

Global KPMG CF

Professionals

2,500+

Global KPMG Technology

Investment Bankers

200+

KPMG

by the numbers

(2)

(2)

North

America

433

professionals

40 offices in

10 countries

Asia

Pacific

536

professionals

21 offices in

10 countries

EMEA

1,578

professionals

113 offices in

64 countries

Software Investment Banking Team

EMEA

200+ Global

KPMG Technology

Investment Bankers

170+

Offices

265,000+

Global KPMG

Professionals

1,000+ Cross-Border

Transactions

in Past 5 Years

80+

Countries

APAC

Takeo Takanashi

Japan

Rainbow Wang

China

Sung Won Park

South Korea

Jesse Chen

Taiwan

Dan Teper

Australia

Graham Pearce

United Kingdom

Stuart Pilgrim

United Kingdom

Ekrem Shahin

United Kingdom

Florian Frei

Germany

Tom Nyman

Finland

Timo Knak

Switzerland

Silvano Lenoci

Italy

Mark Zuidema

Amsterdam

Mark Wyatt

France

Hillel Schuster

Israel

1) KPMG Corporate Finance Credentials - Most Active Middle-Market Advisor Globally

2) Global Senior Technology M&A Team(3)

Worldwide Financial Advisor Rankings(1)

Over Past 20 Years (2004-2023)

Worldwide TMT Financial Advisor Rankings(1)

Over Past 20 Years (2004-2023)

1,235

1,285

1,611

1,767

1,897

UBS

Deloitte

PwC

KPMG

Houlihan Lokey

The M&A Atlas Awards

Software &

IT Deal of

the Year

2023

Corporate /

Strategic

M&A Deal of

the Year

2023

Middle

Market

Investment

Bank of the

Year

2021

(1) Refinitiv - Transactions less than $500m

(2) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms

2+ years experience

baileypayne@kpmg.com

Bailey Payne

Associate

Portland

10+ years experience

gheffernan@kpmg.com

Grant Heffernan

Director

Portland

jpditty@kpmg.com

20+ years experience

JP Ditty

MD

Silicon Valley /

Portland

5+ years experience

mitalilnu@kpmg.com

Mitali Gupta

Sr. Associate

Portland

7+ years experience

preedy@kpmg.com

Patrick Reedy

Vice President

Chicago

1+ year experience

aweichman@kpmg.com

AJ Weichman

Associate

Portland

J.P. Ditty

Portland / Silicon Valley

Grant Heffernan

Portland

David Creamer

Silicon Valley

Joseph Radecki

Chicago

Roddy Moon

Boston

Christopher Rockers Denver

Neil Blair

Toronto

Matt Sardella

Toronto

Logan Philp

Toronto

Marco Tomassetti

Vancouver

Dan Gardiner

Vancouver

North America

Identity Security Software

Acquired by

Automotive Intelligence

Software

Acquired by.

Retail POS Software

Acquired by

Wealth Management

Software

Acquired by

Identity Security Software

Capital Raise

Energy Modeling &

Sustainability Software

Capital Raise

Public Safety Software

Capital Raise

Healthcare Software

Acquired by

Cybersecurity Training

Software

Capital Raise

Financial Data Intelligence

Software

Acquired by

Representative TMT

Deals

Acquired by

Capital Raise

Acquired by

Acquired by

Capital Raise

Capital Raise

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

2

5.7x

5.7x

4.7x

3.9x

11.8%

11.2%

10.4%

13.8%

Q3'23

Q4'23

Q1'24

Q2'24

KPMG Corporate Finance – Software Q2’24 Update

6.7x

5.9x

6.2x

4.6x

11.0%

10.4%

9.8%

Q3'23

Q4'23

Q1'24

Q2'24

5.7x

7.1x

6.5x

5.3x

13.1%

12.0%

13.0%

19.0%

Q3'23

Q4'23

Q1'24

Q2'24

6.8x

9.1x

8.7x

7.5x

13.8%

10.3%

10.0%

11.5%

Q3'23

Q4'23

Q1'24

Q2'24

6.8x

8.3x

8.7x

8.9x

8.9%

10.5%

11.2%

10.1%

Q3'23

Q4'23

Q1'24

Q2'24

5.9x

6.6x

6.8x

5.9x

12.3%

12.3%

11.8%

15.1%

Q3'23

Q4'23

Q1'24

Q2'24

7.3x

7.6x

8.6x

7.7x

13.3%

14.2%

14.3%

13.8%

Q3'23

Q4'23

Q1'24

Q2'24

4.0x

4.2x

4.5x

4.7x

5.0%

3.9%

4.4%

5.9%

Q3'23

Q4'23

Q1'24

Q2'24

4) Valuation Overview - Public Market Trends(1)

(1) Market data as of June 28, 2024; Source: Capital IQ

Analytics & Data Management Software

Human Capital Management Software

Collaboration & Communication Software

DevOps & Infrastructure Software

Financial, Accounting, & Banking Software

Sales, Marketing & eCommerce

Security Software

Vertically Focused

Median EV / NTM Revenue

NTM Revenue Growth Rate

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

3

5.3x

8.5x

18.5x

4.5x

9.1x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

Jul-19

Oct-19

Jan-20

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Median EV / NTM Rev (n=103)

Median

Max

Min

Average

0.5x

0.5x

1.2x

0.2x

0.6x

0.0x

0.5x

1.0x

1.5x

Jul-19

Oct-19

Jan-20

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Median EV / NTM Rev (Growth Adj.) (n=103)

Median

Max

Min

Average

KPMG Corporate Finance – Software Q2’24 Update

4) Valuation Overview - Public Market Trends(1) - (Cont’d)

(1) Market data as of June 28, 2024; Source: Capital IQ

Median EV / NTM Revenue

Median EV / NTM Revenue (Growth Adjusted)

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

4

KPMG Corporate Finance – Software Q2’24 Update

5) Valuation Overview - Publicly Traded Comparable Companies(1)

(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

Dynatrace

$12,536

7.8x

0.5x

6.8x

$1,599

$1,847

17.2%

15.5%

84.7%

84.7%

24.0%

23.9%

41.1%

Elastic

$11,096

7.8x

0.5x

6.7x

$1,421

$1,658

17.3%

16.6%

76.5%

76.3%

12.8%

14.5%

30.1%

Guidewire

$11,061

10.7x

0.9x

9.4x

$1,031

$1,175

11.4%

13.9%

62.7%

63.1%

11.6%

18.5%

23.0%

Zoom Video

$11,000

2.4x

1.1x

2.3x

$4,623

$4,798

2.1%

3.8%

78.8%

79.1%

32.5%

33.8%

34.6%

Informatica

$10,019

5.9x

0.9x

5.5x

$1,697

$1,820

6.4%

7.3%

80.9%

80.9%

24.7%

26.1%

31.1%

DocuSign

$10,003

3.4x

0.6x

3.2x

$2,928

$3,109

6.0%

6.2%

81.4%

81.7%

27.4%

28.8%

33.4%

Procore Technologies

$9,035

7.9x

0.4x

6.6x

$1,140

$1,370

20.0%

20.1%

85.7%

85.4%

11.2%

13.8%

31.3%

Wix.com

$8,981

5.1x

0.4x

4.5x

$1,756

$2,000

12.4%

13.9%

68.5%

69.0%

24.6%

27.5%

37.1%

AppFolio

$8,657

11.2x

0.5x

9.3x

$773

$928

24.6%

20.0%

65.3%

66.1%

22.3%

22.6%

46.9%

Confluent

$8,591

9.0x

0.4x

7.2x

$959

$1,194

23.4%

24.5%

76.2%

76.0%

0.1%

5.1%

23.5%

Dropbox

$8,258

3.2x

1.9x

3.2x

$2,544

$2,607

1.7%

2.5%

83.2%

83.0%

36.7%

37.3%

38.4%

Unity Software

$7,779

4.2x

NM

3.8x

$1,839

$2,064

(15.9%)

12.2%

81.7%

80.8%

14.1%

19.8%

(1.8%)

Paycom

$7,719

4.1x

0.4x

3.7x

$1,869

$2,087

10.4%

11.7%

84.1%

84.4%

15.7%

17.8%

26.0%

CCC

$7,595

8.0x

0.8x

7.4x

$948

$1,032

9.4%

8.8%

77.7%

77.9%

26.6%

27.9%

36.0%

Twilio

$7,058

1.6x

0.3x

1.5x

$4,349

$4,721

4.7%

8.5%

53.0%

53.0%

12.7%

14.1%

17.4%

Paylocity

$7,005

4.8x

0.2x

4.2x

$1,470

$1,668

23.9%

13.5%

72.9%

73.1%

20.1%

21.6%

44.0%

SPS Commerce

$6,690

10.7x

0.7x

9.3x

$624

$716

16.2%

14.8%

68.2%

68.6%

23.0%

23.8%

39.1%

Squarespace

$6,369

5.3x

0.3x

4.6x

$1,205

$1,376

19.0%

14.3%

74.1%

76.4%

23.8%

24.3%

42.8%

ZoomInfo

$5,671

4.5x

2.5x

4.2x

$1,262

$1,357

1.8%

7.5%

89.7%

89.6%

32.4%

34.1%

34.2%

Vertex

$5,592

8.5x

0.6x

7.5x

$657

$750

14.7%

14.1%

71.6%

72.0%

8.5%

12.6%

23.3%

Smartsheet

$5,475

4.9x

0.3x

4.2x

$1,120

$1,297

16.8%

15.8%

83.9%

84.1%

19.7%

22.1%

36.6%

HashiCorp

$5,466

8.4x

0.7x

7.2x

$652

$757

11.8%

16.1%

84.3%

83.3%

5.3%

9.2%

17.1%

UiPath

$5,403

3.8x

0.5x

3.4x

$1,409

$1,575

7.7%

11.8%

85.3%

85.3%

21.4%

21.8%

29.0%

PowerSchool

$5,115

6.5x

0.5x

5.9x

$790

$874

13.2%

10.6%

70.7%

71.0%

18.4%

21.6%

31.6%

Tenable

$5,083

5.6x

0.4x

4.9x

$905

$1,030

13.3%

13.8%

80.1%

80.1%

21.8%

23.6%

35.1%

Varonis

$4,883

9.0x

1.0x

8.0x

$542

$612

8.7%

12.8%

84.6%

84.4%

13.5%

15.0%

22.2%

Qualys

$4,762

7.9x

0.9x

7.2x

$606

$665

9.2%

9.9%

82.4%

82.4%

35.6%

35.8%

44.9%

DigitalOcean

$4,402

5.7x

0.5x

5.1x

$770

$870

11.1%

13.1%

60.3%

59.9%

19.4%

20.3%

30.5%

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth > 25%

CrowdStrike

$90,377

22.6x

0.7x

17.9x

$4,001

$5,060

30.9%

26.5%

78.2%

78.6%

32.2%

33.3%

63.1%

Atlassian

$45,148

9.5x

0.3x

7.9x

$4,730

$5,689

28.8%

20.3%

83.7%

82.7%

28.9%

28.3%

57.7%

AppLovin

$30,470

7.0x

0.2x

6.2x

$4,374

$4,879

33.2%

11.5%

72.7%

76.7%

38.6%

39.4%

71.9%

Cloudfare

$27,866

16.8x

0.6x

13.2x

$1,654

$2,104

27.6%

27.2%

78.6%

78.4%

9.9%

10.7%

37.5%

Samsara

$17,811

14.7x

0.5x

11.7x

$1,213

$1,524

29.4%

25.6%

75.2%

75.2%

6.5%

9.5%

35.9%

Toast

$13,233

2.7x

0.1x

2.2x

$4,887

$6,023

26.4%

23.2%

24.4%

25.7%

3.6%

6.3%

30.1%

Monday

$10,818

11.4x

0.4x

9.0x

$948

$1,207

29.9%

27.3%

89.5%

89.4%

25.4%

24.1%

55.3%

GitLab

$6,886

9.3x

0.3x

7.5x

$738

$922

27.3%

24.9%

90.7%

90.4%

9.5%

12.6%

36.8%

SentinelOne

$5,834

7.2x

0.2x

5.7x

$813

$1,030

30.9%

26.7%

78.4%

78.4%

3.4%

9.0%

34.3%

Bill.com

$4,954

3.7x

0.1x

3.2x

$1,344

$1,540

29.3%

14.6%

85.7%

84.6%

19.2%

19.6%

48.5%

Alkami

$2,709

8.2x

0.3x

6.6x

$332

$413

25.3%

24.4%

61.8%

63.6%

1.1%

8.2%

26.3%

‘23-’24 Revenue Growth < 25%

Salesforce

$244,852

6.5x

0.8x

5.9x

$37,859 $41,400

8.6%

9.4%

79.5%

79.7%

31.0%

32.1%

39.6%

Adobe

$244,351

11.4x

1.1x

10.2x

$21,468 $23,946

10.6%

11.5%

89.4%

89.4%

36.3%

40.1%

46.9%

SaerviceNow

$155,065

14.2x

0.7x

11.8x

$10,899 $13,150

21.5%

20.7%

81.8%

81.8%

31.3%

31.7%

52.8%

Shopify

$81,117

9.5x

0.5x

7.9x

$8,536

$10,261

20.9%

20.2%

50.8%

50.9%

14.7%

16.4%

35.6%

Workday

$55,470

6.6x

0.4x

5.7x

$8,378

$9,678

15.4%

15.5%

79.8%

80.4%

23.2%

25.6%

38.6%

Palantir Technologies

$52,842

19.6x

0.9x

16.3x

$2,698

$3,242

21.3%

20.2%

82.4%

82.5%

31.8%

31.8%

53.1%

Datadog

$41,557

15.9x

0.7x

12.9x

$2,618

$3,213

23.0%

22.8%

82.2%

81.9%

26.2%

26.8%

49.2%

Snowflake

$41,062

11.8x

0.5x

9.5x

$3,485

$4,302

24.2%

23.4%

72.7%

72.9%

25.8%

27.8%

50.0%

Block

$39,049

1.6x

0.1x

1.4x

$25,097 $28,024

14.5%

11.7%

34.7%

35.9%

8.6%

12.0%

23.1%

HubSpot

$29,313

11.4x

0.6x

9.7x

$2,561

$3,029

18.0%

18.3%

85.4%

85.2%

14.4%

15.5%

32.4%

Zscaler

$28,052

11.9x

0.5x

9.7x

$2,361

$2,892

24.6%

22.5%

80.7%

80.4%

23.1%

23.9%

47.7%

Veeva

$24,875

9.2x

0.6x

8.1x

$2,707

$3,054

14.5%

12.8%

75.3%

75.5%

38.8%

39.7%

53.3%

MongoDB

$17,485

9.2x

0.7x

7.7x

$1,893

$2,267

12.5%

19.7%

75.6%

76.0%

7.5%

10.9%

20.0%

Check Point

$15,628

6.1x

1.0x

5.8x

$2,560

$2,699

6.0%

5.4%

89.2%

89.4%

41.1%

41.7%

47.1%

Okta

$14,691

5.8x

0.5x

5.2x

$2,542

$2,847

12.3%

12.0%

81.1%

81.0%

21.9%

23.1%

34.3%

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

5

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

AvePoint

$1,726

5.4x

0.3x

4.6x

$318

$373

17.0%

17.2%

73.6%

74.2%

12.7%

15.3%

29.7%

Semrush

$1,721

4.7x

0.2x

4.0x

$368

$435

19.5%

18.4%

83.2%

83.4%

9.2%

9.9%

28.7%

Everbridge

$1,714

3.7x

1.1x

3.6x

$464

$480

3.4%

3.4%

73.8%

74.0%

13.5%

15.1%

16.8%

Dye & Durham

$1,521

4.4x

NM

4.0x

$342

$377

(0.6%)

10.1%

91.3%

92.0%

22.7%

NA

22.1%

PROS

$1,515

4.5x

0.5x

4.0x

$334

$375

9.9%

12.5%

66.4%

67.1%

7.4%

10.6%

17.3%

Zuora

$1,326

2.9x

0.5x

2.7x

$456

$497

5.6%

9.0%

73.1%

75.1%

NA

NA

NA

VTEX

$1,136

4.7x

0.2x

3.8x

$241

$296

19.8%

22.7%

71.5%

72.5%

0.8%

3.0%

20.6%

Fastly

$1,101

2.0x

0.2x

1.8x

$559

$629

10.4%

12.5%

58.8%

60.2%

0.6%

2.2%

11.0%

WalkMe

$980

3.5x

0.6x

3.2x

$282

$309

5.6%

9.6%

85.9%

86.0%

10.9%

14.2%

16.5%

Definitive Healthcare

$944

3.7x

1.3x

3.5x

$258

$273

2.7%

5.8%

84.4%

84.6%

27.5%

30.9%

30.2%

2U

$890

1.1x

NM

1.0x

$807

$874

(14.7%)

8.3%

0.0%

0.0%

NA

NA

NA

Amplitude

$775

2.6x

0.4x

2.4x

$294

$321

6.4%

9.1%

76.6%

76.8%

7.3%

9.5%

13.8%

Couchbase

$763

3.7x

0.2x

3.2x

$207

$241

15.2%

16.2%

88.3%

86.5%

(5.8%)

2.0%

9.4%

BigCommerce

$708

2.1x

0.3x

2.0x

$333

$362

7.7%

8.7%

77.7%

78.0%

5.6%

8.2%

13.3%

8x8

$639

0.9x

0.4x

0.9x

$722

$750

2.4%

3.9%

71.7%

71.3%

5.4%

10.5%

7.9%

Weave

Communications

$618

3.1x

0.2x

2.7x

$199

$228

16.5%

15.1%

70.6%

71.1%

4.0%

7.2%

20.5%

Skillsoft

$607

1.1x

NM

1.1x

$536

$557

(3.1%)

3.9%

72.7%

72.5%

(1.9%)

0.8%

(5.0%)

Ebix

$594

NA

NA

NA

NA

$0

NA

NA

NA

NA

NA

NA

NA

Yext

$532

1.3x

NM

1.3x

$395

$416

(2.2%)

5.3%

78.7%

78.9%

13.0%

19.0%

10.8%

LivePerson

$441

1.4x

NM

1.5x

$308

$298

(23.3%)

(3.3%)

66.9%

66.8%

(5.2%)

(2.1%)

(28.5%)

Olo

$373

1.4x

0.1x

1.2x

$276

$320

20.7%

16.1%

60.7%

57.7%

3.0%

4.7%

23.7%

Upper Quartile

$10,418

8.1x

0.6x

7.1x

$1,862

$2,096

20.9%

19.6%

83.5%

82.9%

23.9%

24.3%

37.1%

Median (All)

$4,762

5.5x

0.5x

4.7x

$810

$922

13.5%

13.8%

77.7%

78.0%

15.7%

18.5%

30.2%

Median (Growth ≥

25%)

$13,233

9.3x

0.3x

7.5x

$1,344

$1,540

29.3%

24.9%

78.4%

78.4%

9.9%

12.6%

37.5%

Median (Growth <

25%)

$4,213

5.1x

0.5x

4.5x

$779

$872

11.8%

13.1%

77.2%

77.4%

15.8%

18.5%

29.6%

Mean

$16,126

6.3x

0.5x

5.4x

$2,275

$2,558

13.3%

14.1%

73.9%

74.1%

16.4%

18.6%

30.2%

Lower Quartile

$2,217

3.7x

0.3x

3.2x

$502

$547

7.5%

9.4%

68.8%

69.2%

8.6%

10.8%

22.6%

KPMG Corporate Finance – Software Q2’24 Update

5) Valuation Overview - Publicly Traded Comparable Companies(1) - (Cont’d)

(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

Envestnet

$4,393

3.2x

0.3x

2.9x

$1,367

$1,502

9.8%

9.8%

60.5%

60.0%

10.3%

10.6%

20.1%

Darktrace

$4,371

5.8x

0.3x

4.8x

$754

$912

22.4%

20.9%

89.6%

89.7%

13.2%

19.4%

35.6%

Box

$4,245

3.9x

1.0x

3.7x

$1,079

$1,148

4.0%

6.4%

79.5%

79.5%

27.9%

29.9%

31.9%

RingCentral

$4,181

1.7x

0.1x

1.6x

$2,389

$2,583

13.8%

8.1%

78.4%

78.7%

16.2%

19.2%

30.0%

Workiva

$3,955

5.5x

0.4x

4.8x

$721

$831

14.5%

15.3%

77.8%

79.0%

11.0%

13.3%

25.5%

Zeta Global

$3,914

4.3x

0.2x

3.8x

$901

$1,037

23.6%

15.2%

60.9%

62.0%

9.0%

10.1%

32.6%

Q2

$3,833

5.6x

0.5x

5.0x

$690

$768

10.4%

11.4%

55.8%

57.0%

10.1%

13.1%

20.5%

nCino

$3,621

6.7x

0.5x

5.8x

$542

$628

13.7%

15.9%

66.5%

67.8%

15.9%

17.7%

29.6%

BlackLine

$3,609

5.6x

0.6x

5.1x

$646

$709

9.5%

9.8%

79.3%

80.0%

20.1%

21.8%

29.6%

Braze

$3,551

6.1x

0.3x

5.1x

$580

$700

22.9%

20.7%

68.8%

69.4%

0.6%

4.5%

23.5%

Jfrog

$3,511

8.2x

0.4x

6.8x

$428

$518

22.4%

20.8%

84.0%

82.9%

17.8%

20.9%

40.2%

Five9

$3,383

3.2x

0.2x

2.7x

$1,055

$1,259

15.9%

19.3%

59.8%

61.0%

10.6%

13.5%

26.6%

Rapid7

$3,305

4.0x

0.5x

3.6x

$835

$915

7.4%

9.5%

74.0%

74.4%

19.3%

20.6%

26.7%

N-able

$3,047

6.6x

0.7x

5.9x

$464

$514

10.0%

10.9%

84.8%

84.9%

16.6%

17.6%

26.6%

Kinaxis

$3,019

6.2x

0.4x

5.1x

$490

$588

14.8%

20.0%

60.9%

62.7%

16.5%

18.3%

31.3%

SolarWinds

$2,980

3.8x

1.4x

3.7x

$779

$816

2.7%

4.7%

90.7%

90.4%

34.4%

38.1%

37.1%

Asana

$2,948

4.1x

0.4x

3.6x

$723

$830

10.8%

14.8%

89.8%

89.8%

0.2%

5.4%

11.1%

C3.ai

$2,923

8.1x

0.4x

6.6x

$362

$444

22.2%

22.5%

68.9%

68.9%

(1.8%)

(3.2%)

20.5%

Agilysys

$2,693

10.2x

0.6x

8.4x

$265

$319

16.1%

20.6%

60.8%

61.0%

19.0%

18.4%

35.1%

Freshworks

$2,611

3.7x

0.2x

3.2x

$700

$822

17.4%

17.4%

84.3%

83.8%

17.9%

19.9%

35.3%

Intapp

$2,531

5.5x

0.3x

4.7x

$461

$535

17.5%

16.0%

73.3%

73.8%

12.6%

15.9%

30.2%

E2open

$2,420

3.8x

NM

3.7x

$632

$662

(1.7%)

4.8%

68.8%

68.4%

NA

NA

NA

Jamf

$2,284

3.7x

0.3x

3.2x

$621

$704

10.7%

13.5%

81.4%

81.5%

13.1%

21.6%

23.9%

Teladoc Health

$2,151

0.8x

0.4x

0.8x

$2,659

$2,755

2.2%

3.6%

70.7%

70.7%

7.7%

10.2%

9.9%

PagerDuty

$2,073

4.4x

0.4x

3.9x

$474

$537

10.0%

13.4%

85.0%

84.6%

16.8%

18.5%

26.7%

MeridianLink

$2,000

6.3x

1.5x

5.8x

$316

$343

4.2%

8.4%

67.4%

67.9%

24.4%

26.3%

28.6%

Sprinklr

$1,993

2.6x

0.4x

2.4x

$780

$826

6.6%

5.9%

74.6%

75.6%

7.7%

12.6%

14.2%

Sprout Social

$1,985

4.9x

0.2x

4.1x

$406

$483

21.6%

19.1%

78.3%

78.5%

7.1%

10.9%

28.6%

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

6

Deal Matrix: Overall

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$2,529

$270

9.5x

Median

$564

$100

6.7x

Mean

$1,742

$287

8.0x

Lower Quartile

$170

$49

4.4x

KPMG Corporate Finance – Software Q2’24 Update

(1) Excludes transactions with deal value of <$30M, <2.5x multiple & undisclosed deal values; Source: Capital IQ & 451 Research

Date

Acquirer

Target

Target

Country

Sector

Buyer

Type

EV

TTM

Revenue

EV / TTM

Revenue Target Description

Jun’24

Nokia Oyj

Infinera

U.S.

Telecom

$3,797

$1,529

2.5x Optical networking

software & systems

Jun’24

PIXID SAS

VectorVMS

U.S.

Workforce

Management

$50

$11

4.4x Vendor & workforce

mgmt. software

Jun’24

CompuGroup

Medical Norway

Pridok

Norway

HCTech

$38

$5

8.3x Electronic patient records

mgmt. software

Jun’24

Corpay

GPS Capital

Markets

U.S.

FinTech

$725

$100

7.3x Cross-border payment &

treasury mgmt. software

Jun’24

Simulations Plus

Pro-ficiency

U.S.

HCTech

$100

$15

6.7x Life sciences performance &

intelligence software

Jun’24

Industrial and

Financial Systems

Copperleaf

Technologies

Canada

Asset

Management

$564

$64

8.8x AI-based enterprise decision

analytics software

Jun’24

Bain Capital

PowerSchool

U.S.

EdTech

$5,600

$723

7.7x K-12 administrative &

assessment software

Jun’24

Nemetschek

Canvas Solutions

U.S.

GRC

$771

$67

11.5x

Job site inspection &

safety software

Jun’24

SAP

WalkMe

U.S.

Enterprise

Management

$1,032

$270

3.8x Digital adoption software

May’24

Hg Capital

AuditBoard

U.S.

GRC

$3,000

$200

15.0x Audit, risk, compliance &

ESG mgmt. software

May’24

Alicorn

Glassbox

Israel

Customer

Management

$142

$49

2.9x Customer experience

mgmt. software

May’24

CyberArk Software Venafi

U.S.

Cybersecurity

$1,540

$150

10.3x Machine identity

mgmt. software

May’24

LogRhythm

Exabeam

U.S.

Cybersecurity

$500

$150

3.3x Cybersecurity operations &

analytics software

May’24

Palo Alto Networks

IBM

(QRadar SaaS)

U.S.

Cybersecurity

$500

$100

5.0x Threat detection &

response software

Date

Acquirer

Target

Target

Country

Sector

Buyer

Type

EV

TTM

Revenue

EV / TTM

Revenue Target Description

May’24

KKR

IQGeo

U.K.

Geospatial

Intelligence

$405

$57

7.2x Geospatial network

management software

May’24

Permira

Squarespace

U.S.

Website

Designing

$6,900

$1,056

6.5x Website design &

development software

May’24

Corpay

Paymerang

U.S.

FinTech

$475

$50

9.5x

Invoice & payments

automation software

May’24

Akamai

Technologies

Noname Gate

U.S.

Cybersecurity

$450

$20

22.5x API security software

May’24

Firstsource

Solutions

Quintessence

Business Solutions

India

Revenue

Management

$39

$15

2.7x Revenue cycle

mgmt. software

Apr’24

Thoma Bravo

Darktrace

U.K.

Cybersecurity

$4,992

$616

8.1x Cybersecurity NBAD software

Apr’24

GTCR

AssetMark

Financial

U.S.

Wealth

Management

$2,529

$708

3.6x Portfolio & wealth

mgmt. software

Apr’24

IBM

HashiCorp

U.S.

Infrastructure

Management

$6,400

$583

11.0x

Infrastructure & security

lifecycle mgmt. software

Apr’24

CoStar

Matterport

U.S.

Facility

Management

$1,600

$158

10.1x Facilities marketing &

mgmt. software

Apr’24

Armis

Silk Security

U.S.

Cybersecurity

$150

$5

30.0x Cyber risk prioritization &

remediation software

Apr’24

Symphony

Technology Group

Gresham

Technologies

U.K.

FinTech

$170

$61

2.8x Financial mgmt. software

Apr’24

Vista Equity

Partners

Model N

U.S.

GRC

$1,170

$254

4.6x Revenue optimization &

compliance software

Apr’24

Experian

illion Australia

Australia

GRC

$532

$114

4.7x Credit risk mgmt. software

Apr’24

Clearwater

Analytics

Wilshire Advisors

(risk and

performance

analytics assets)

U.S.

GRC

$40

$7

5.7x Risk & performance analytics

Apr’24

Advent / CDPQ /

Novacap

Investments

Nuvei

Canada

FinTech

$6,300

$1,190

5.3x Transaction processing

software

Deal Matrix: M&A by Strategic Acquirers

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$1,032

$150

10.3x

Median

$500

$67

7.3x

Mean

$1,078

$190

9.1x

Lower Quartile

$142

$15

4.7x

Deal Matrix: M&A by PE & PE-Backed Acquirers

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$5,144

$712

7.8x

Median

$1,850

$227

5.9x

Mean

$2,682

$424

6.4x

Lower Quartile

$476

$64

4.2x

6) Valuation Overview - Recent Precedent M&A Transactions(1)

Financial

Strategic

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Financial

Strategic

Strategic

Financial

Strategic

Financial

Financial

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Financial

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

1

3) Representative Software Transactions

Regulatory Intelligence

Software

Acquired by

Logistics Data Entry

Automation Software

Acquired by

Property Tax & Transfer

Pricing Software

Acquired by

a portfolio company of

Legal & Tax Professional

Learning Software

Acquired by

a portfolio company of

Corporate Compliance

Software

Acquired by

a portfolio company of

KPMG Corporate Finance – Software Investment Banking Overview

Construction Software

Acquired by

a portfolio company of

Recruitment Software

Capital Raise

Energy & Building Analytics

Software

Acquired by

Enterprise Workload

Automation Software

Acquired by

a portfolio company of

Wealth Management

Software

Acquired by

a portfolio company of

5,564

6,111

6,581

8,905

9,173

Ernst & Young

Deloitte

Houlihan Lokey

PwC

KPMG

(3) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms

Global KPMG

Professionals

265,000+

M&A Transactions

Closed since 2013

5,000+

Global KPMG CF

Professionals

2,500+

Global KPMG Technology

Investment Bankers

200+

KPMG

by the numbers

(2)

(2)

North

America

433

professionals

40 offices in

10 countries

Asia

Pacific

536

professionals

21 offices in

10 countries

EMEA

1,578

professionals

113 offices in

64 countries

Software Investment Banking Team

EMEA

200+ Global

KPMG Technology

Investment Bankers

170+

Offices

265,000+

Global KPMG

Professionals

1,000+ Cross-Border

Transactions

in Past 5 Years

80+

Countries

APAC

Takeo Takanashi

Japan

Rainbow Wang

China

Sung Won Park

South Korea

Jesse Chen

Taiwan

Dan Teper

Australia

Graham Pearce

United Kingdom

Stuart Pilgrim

United Kingdom

Ekrem Shahin

United Kingdom

Florian Frei

Germany

Tom Nyman

Finland

Timo Knak

Switzerland

Silvano Lenoci

Italy

Mark Zuidema

Amsterdam

Mark Wyatt

France

Hillel Schuster

Israel

1) KPMG Corporate Finance Credentials - Most Active Middle-Market Advisor Globally

2) Global Senior Technology M&A Team(3)

Worldwide Financial Advisor Rankings(1)

Over Past 20 Years (2004-2023)

Worldwide TMT Financial Advisor Rankings(1)

Over Past 20 Years (2004-2023)

1,235

1,285

1,611

1,767

1,897

UBS

Deloitte

PwC

KPMG

Houlihan Lokey

The M&A Atlas Awards

Software &

IT Deal of

the Year

2023

Corporate /

Strategic

M&A Deal of

the Year

2023

Middle

Market

Investment

Bank of the

Year

2021

(1) Refinitiv - Transactions less than $500m

(2) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms

2+ years experience

baileypayne@kpmg.com

Bailey Payne

Associate

Portland

10+ years experience

gheffernan@kpmg.com

Grant Heffernan

Director

Portland

jpditty@kpmg.com

20+ years experience

JP Ditty

MD

Silicon Valley /

Portland

5+ years experience

mitalilnu@kpmg.com

Mitali Gupta

Sr. Associate

Portland

7+ years experience

preedy@kpmg.com

Patrick Reedy

Vice President

Chicago

1+ year experience

aweichman@kpmg.com

AJ Weichman

Associate

Portland

J.P. Ditty

Portland / Silicon Valley

Grant Heffernan

Portland

David Creamer

Silicon Valley

Joseph Radecki

Chicago

Roddy Moon

Boston

Christopher Rockers Denver

Neil Blair

Toronto

Matt Sardella

Toronto

Logan Philp

Toronto

Marco Tomassetti

Vancouver

Dan Gardiner

Vancouver

North America

Identity Security Software

Acquired by

Automotive Intelligence

Software

Acquired by.

Retail POS Software

Acquired by

Wealth Management

Software

Acquired by

Identity Security Software

Capital Raise

Energy Modeling &

Sustainability Software

Capital Raise

Public Safety Software

Capital Raise

Healthcare Software

Acquired by

Cybersecurity Training

Software

Capital Raise

Financial Data Intelligence

Software

Acquired by

Representative TMT

Deals

Acquired by

Capital Raise

Acquired by

Acquired by

Capital Raise

Capital Raise

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

2

5.7x

5.7x

4.7x

3.9x

11.8%

11.2%

10.4%

13.8%

Q3'23

Q4'23

Q1'24

Q2'24

KPMG Corporate Finance – Software Q2’24 Update

6.7x

5.9x

6.2x

4.6x

11.0%

10.4%

9.8%

Q3'23

Q4'23

Q1'24

Q2'24

5.7x

7.1x

6.5x

5.3x

13.1%

12.0%

13.0%

19.0%

Q3'23

Q4'23

Q1'24

Q2'24

6.8x

9.1x

8.7x

7.5x

13.8%

10.3%

10.0%

11.5%

Q3'23

Q4'23

Q1'24

Q2'24

6.8x

8.3x

8.7x

8.9x

8.9%

10.5%

11.2%

10.1%

Q3'23

Q4'23

Q1'24

Q2'24

5.9x

6.6x

6.8x

5.9x

12.3%

12.3%

11.8%

15.1%

Q3'23

Q4'23

Q1'24

Q2'24

7.3x

7.6x

8.6x

7.7x

13.3%

14.2%

14.3%

13.8%

Q3'23

Q4'23

Q1'24

Q2'24

4.0x

4.2x

4.5x

4.7x

5.0%

3.9%

4.4%

5.9%

Q3'23

Q4'23

Q1'24

Q2'24

4) Valuation Overview - Public Market Trends(1)

(1) Market data as of June 28, 2024; Source: Capital IQ

Analytics & Data Management Software

Human Capital Management Software

Collaboration & Communication Software

DevOps & Infrastructure Software

Financial, Accounting, & Banking Software

Sales, Marketing & eCommerce

Security Software

Vertically Focused

Median EV / NTM Revenue

NTM Revenue Growth Rate

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

3

5.3x

8.5x

18.5x

4.5x

9.1x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

Jul-19

Oct-19

Jan-20

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Median EV / NTM Rev (n=103)

Median

Max

Min

Average

0.5x

0.5x

1.2x

0.2x

0.6x

0.0x

0.5x

1.0x

1.5x

Jul-19

Oct-19

Jan-20

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Median EV / NTM Rev (Growth Adj.) (n=103)

Median

Max

Min

Average

KPMG Corporate Finance – Software Q2’24 Update

4) Valuation Overview - Public Market Trends(1) - (Cont’d)

(1) Market data as of June 28, 2024; Source: Capital IQ

Median EV / NTM Revenue

Median EV / NTM Revenue (Growth Adjusted)

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

4

KPMG Corporate Finance – Software Q2’24 Update

5) Valuation Overview - Publicly Traded Comparable Companies(1)

(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

Dynatrace

$12,536

7.8x

0.5x

6.8x

$1,599

$1,847

17.2%

15.5%

84.7%

84.7%

24.0%

23.9%

41.1%

Elastic

$11,096

7.8x

0.5x

6.7x

$1,421

$1,658

17.3%

16.6%

76.5%

76.3%

12.8%

14.5%

30.1%

Guidewire

$11,061

10.7x

0.9x

9.4x

$1,031

$1,175

11.4%

13.9%

62.7%

63.1%

11.6%

18.5%

23.0%

Zoom Video

$11,000

2.4x

1.1x

2.3x

$4,623

$4,798

2.1%

3.8%

78.8%

79.1%

32.5%

33.8%

34.6%

Informatica

$10,019

5.9x

0.9x

5.5x

$1,697

$1,820

6.4%

7.3%

80.9%

80.9%

24.7%

26.1%

31.1%

DocuSign

$10,003

3.4x

0.6x

3.2x

$2,928

$3,109

6.0%

6.2%

81.4%

81.7%

27.4%

28.8%

33.4%

Procore Technologies

$9,035

7.9x

0.4x

6.6x

$1,140

$1,370

20.0%

20.1%

85.7%

85.4%

11.2%

13.8%

31.3%

Wix.com

$8,981

5.1x

0.4x

4.5x

$1,756

$2,000

12.4%

13.9%

68.5%

69.0%

24.6%

27.5%

37.1%

AppFolio

$8,657

11.2x

0.5x

9.3x

$773

$928

24.6%

20.0%

65.3%

66.1%

22.3%

22.6%

46.9%

Confluent

$8,591

9.0x

0.4x

7.2x

$959

$1,194

23.4%

24.5%

76.2%

76.0%

0.1%

5.1%

23.5%

Dropbox

$8,258

3.2x

1.9x

3.2x

$2,544

$2,607

1.7%

2.5%

83.2%

83.0%

36.7%

37.3%

38.4%

Unity Software

$7,779

4.2x

NM

3.8x

$1,839

$2,064

(15.9%)

12.2%

81.7%

80.8%

14.1%

19.8%

(1.8%)

Paycom

$7,719

4.1x

0.4x

3.7x

$1,869

$2,087

10.4%

11.7%

84.1%

84.4%

15.7%

17.8%

26.0%

CCC

$7,595

8.0x

0.8x

7.4x

$948

$1,032

9.4%

8.8%

77.7%

77.9%

26.6%

27.9%

36.0%

Twilio

$7,058

1.6x

0.3x

1.5x

$4,349

$4,721

4.7%

8.5%

53.0%

53.0%

12.7%

14.1%

17.4%

Paylocity

$7,005

4.8x

0.2x

4.2x

$1,470

$1,668

23.9%

13.5%

72.9%

73.1%

20.1%

21.6%

44.0%

SPS Commerce

$6,690

10.7x

0.7x

9.3x

$624

$716

16.2%

14.8%

68.2%

68.6%

23.0%

23.8%

39.1%

Squarespace

$6,369

5.3x

0.3x

4.6x

$1,205

$1,376

19.0%

14.3%

74.1%

76.4%

23.8%

24.3%

42.8%

ZoomInfo

$5,671

4.5x

2.5x

4.2x

$1,262

$1,357

1.8%

7.5%

89.7%

89.6%

32.4%

34.1%

34.2%

Vertex

$5,592

8.5x

0.6x

7.5x

$657

$750

14.7%

14.1%

71.6%

72.0%

8.5%

12.6%

23.3%

Smartsheet

$5,475

4.9x

0.3x

4.2x

$1,120

$1,297

16.8%

15.8%

83.9%

84.1%

19.7%

22.1%

36.6%

HashiCorp

$5,466

8.4x

0.7x

7.2x

$652

$757

11.8%

16.1%

84.3%

83.3%

5.3%

9.2%

17.1%

UiPath

$5,403

3.8x

0.5x

3.4x

$1,409

$1,575

7.7%

11.8%

85.3%

85.3%

21.4%

21.8%

29.0%

PowerSchool

$5,115

6.5x

0.5x

5.9x

$790

$874

13.2%

10.6%

70.7%

71.0%

18.4%

21.6%

31.6%

Tenable

$5,083

5.6x

0.4x

4.9x

$905

$1,030

13.3%

13.8%

80.1%

80.1%

21.8%

23.6%

35.1%

Varonis

$4,883

9.0x

1.0x

8.0x

$542

$612

8.7%

12.8%

84.6%

84.4%

13.5%

15.0%

22.2%

Qualys

$4,762

7.9x

0.9x

7.2x

$606

$665

9.2%

9.9%

82.4%

82.4%

35.6%

35.8%

44.9%

DigitalOcean

$4,402

5.7x

0.5x

5.1x

$770

$870

11.1%

13.1%

60.3%

59.9%

19.4%

20.3%

30.5%

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth > 25%

CrowdStrike

$90,377

22.6x

0.7x

17.9x

$4,001

$5,060

30.9%

26.5%

78.2%

78.6%

32.2%

33.3%

63.1%

Atlassian

$45,148

9.5x

0.3x

7.9x

$4,730

$5,689

28.8%

20.3%

83.7%

82.7%

28.9%

28.3%

57.7%

AppLovin

$30,470

7.0x

0.2x

6.2x

$4,374

$4,879

33.2%

11.5%

72.7%

76.7%

38.6%

39.4%

71.9%

Cloudfare

$27,866

16.8x

0.6x

13.2x

$1,654

$2,104

27.6%

27.2%

78.6%

78.4%

9.9%

10.7%

37.5%

Samsara

$17,811

14.7x

0.5x

11.7x

$1,213

$1,524

29.4%

25.6%

75.2%

75.2%

6.5%

9.5%

35.9%

Toast

$13,233

2.7x

0.1x

2.2x

$4,887

$6,023

26.4%

23.2%

24.4%

25.7%

3.6%

6.3%

30.1%

Monday

$10,818

11.4x

0.4x

9.0x

$948

$1,207

29.9%

27.3%

89.5%

89.4%

25.4%

24.1%

55.3%

GitLab

$6,886

9.3x

0.3x

7.5x

$738

$922

27.3%

24.9%

90.7%

90.4%

9.5%

12.6%

36.8%

SentinelOne

$5,834

7.2x

0.2x

5.7x

$813

$1,030

30.9%

26.7%

78.4%

78.4%

3.4%

9.0%

34.3%

Bill.com

$4,954

3.7x

0.1x

3.2x

$1,344

$1,540

29.3%

14.6%

85.7%

84.6%

19.2%

19.6%

48.5%

Alkami

$2,709

8.2x

0.3x

6.6x

$332

$413

25.3%

24.4%

61.8%

63.6%

1.1%

8.2%

26.3%

‘23-’24 Revenue Growth < 25%

Salesforce

$244,852

6.5x

0.8x

5.9x

$37,859 $41,400

8.6%

9.4%

79.5%

79.7%

31.0%

32.1%

39.6%

Adobe

$244,351

11.4x

1.1x

10.2x

$21,468 $23,946

10.6%

11.5%

89.4%

89.4%

36.3%

40.1%

46.9%

SaerviceNow

$155,065

14.2x

0.7x

11.8x

$10,899 $13,150

21.5%

20.7%

81.8%

81.8%

31.3%

31.7%

52.8%

Shopify

$81,117

9.5x

0.5x

7.9x

$8,536

$10,261

20.9%

20.2%

50.8%

50.9%

14.7%

16.4%

35.6%

Workday

$55,470

6.6x

0.4x

5.7x

$8,378

$9,678

15.4%

15.5%

79.8%

80.4%

23.2%

25.6%

38.6%

Palantir Technologies

$52,842

19.6x

0.9x

16.3x

$2,698

$3,242

21.3%

20.2%

82.4%

82.5%

31.8%

31.8%

53.1%

Datadog

$41,557

15.9x

0.7x

12.9x

$2,618

$3,213

23.0%

22.8%

82.2%

81.9%

26.2%

26.8%

49.2%

Snowflake

$41,062

11.8x

0.5x

9.5x

$3,485

$4,302

24.2%

23.4%

72.7%

72.9%

25.8%

27.8%

50.0%

Block

$39,049

1.6x

0.1x

1.4x

$25,097 $28,024

14.5%

11.7%

34.7%

35.9%

8.6%

12.0%

23.1%

HubSpot

$29,313

11.4x

0.6x

9.7x

$2,561

$3,029

18.0%

18.3%

85.4%

85.2%

14.4%

15.5%

32.4%

Zscaler

$28,052

11.9x

0.5x

9.7x

$2,361

$2,892

24.6%

22.5%

80.7%

80.4%

23.1%

23.9%

47.7%

Veeva

$24,875

9.2x

0.6x

8.1x

$2,707

$3,054

14.5%

12.8%

75.3%

75.5%

38.8%

39.7%

53.3%

MongoDB

$17,485

9.2x

0.7x

7.7x

$1,893

$2,267

12.5%

19.7%

75.6%

76.0%

7.5%

10.9%

20.0%

Check Point

$15,628

6.1x

1.0x

5.8x

$2,560

$2,699

6.0%

5.4%

89.2%

89.4%

41.1%

41.7%

47.1%

Okta

$14,691

5.8x

0.5x

5.2x

$2,542

$2,847

12.3%

12.0%

81.1%

81.0%

21.9%

23.1%

34.3%

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

5

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

AvePoint

$1,726

5.4x

0.3x

4.6x

$318

$373

17.0%

17.2%

73.6%

74.2%

12.7%

15.3%

29.7%

Semrush

$1,721

4.7x

0.2x

4.0x

$368

$435

19.5%

18.4%

83.2%

83.4%

9.2%

9.9%

28.7%

Everbridge

$1,714

3.7x

1.1x

3.6x

$464

$480

3.4%

3.4%

73.8%

74.0%

13.5%

15.1%

16.8%

Dye & Durham

$1,521

4.4x

NM

4.0x

$342

$377

(0.6%)

10.1%

91.3%

92.0%

22.7%

NA

22.1%

PROS

$1,515

4.5x

0.5x

4.0x

$334

$375

9.9%

12.5%

66.4%

67.1%

7.4%

10.6%

17.3%

Zuora

$1,326

2.9x

0.5x

2.7x

$456

$497

5.6%

9.0%

73.1%

75.1%

NA

NA

NA

VTEX

$1,136

4.7x

0.2x

3.8x

$241

$296

19.8%

22.7%

71.5%

72.5%

0.8%

3.0%

20.6%

Fastly

$1,101

2.0x

0.2x

1.8x

$559

$629

10.4%

12.5%

58.8%

60.2%

0.6%

2.2%

11.0%

WalkMe

$980

3.5x

0.6x

3.2x

$282

$309

5.6%

9.6%

85.9%

86.0%

10.9%

14.2%

16.5%

Definitive Healthcare

$944

3.7x

1.3x

3.5x

$258

$273

2.7%

5.8%

84.4%

84.6%

27.5%

30.9%

30.2%

2U

$890

1.1x

NM

1.0x

$807

$874

(14.7%)

8.3%

0.0%

0.0%

NA

NA

NA

Amplitude

$775

2.6x

0.4x

2.4x

$294

$321

6.4%

9.1%

76.6%

76.8%

7.3%

9.5%

13.8%

Couchbase

$763

3.7x

0.2x

3.2x

$207

$241

15.2%

16.2%

88.3%

86.5%

(5.8%)

2.0%

9.4%

BigCommerce

$708

2.1x

0.3x

2.0x

$333

$362

7.7%

8.7%

77.7%

78.0%

5.6%

8.2%

13.3%

8x8

$639

0.9x

0.4x

0.9x

$722

$750

2.4%

3.9%

71.7%

71.3%

5.4%

10.5%

7.9%

Weave

Communications

$618

3.1x

0.2x

2.7x

$199

$228

16.5%

15.1%

70.6%

71.1%

4.0%

7.2%

20.5%

Skillsoft

$607

1.1x

NM

1.1x

$536

$557

(3.1%)

3.9%

72.7%

72.5%

(1.9%)

0.8%

(5.0%)

Ebix

$594

NA

NA

NA

NA

$0

NA

NA

NA

NA

NA

NA

NA

Yext

$532

1.3x

NM

1.3x

$395

$416

(2.2%)

5.3%

78.7%

78.9%

13.0%

19.0%

10.8%

LivePerson

$441

1.4x

NM

1.5x

$308

$298

(23.3%)

(3.3%)

66.9%

66.8%

(5.2%)

(2.1%)

(28.5%)

Olo

$373

1.4x

0.1x

1.2x

$276

$320

20.7%

16.1%

60.7%

57.7%

3.0%

4.7%

23.7%

Upper Quartile

$10,418

8.1x

0.6x

7.1x

$1,862

$2,096

20.9%

19.6%

83.5%

82.9%

23.9%

24.3%

37.1%

Median (All)

$4,762

5.5x

0.5x

4.7x

$810

$922

13.5%

13.8%

77.7%

78.0%

15.7%

18.5%

30.2%

Median (Growth ≥

25%)

$13,233

9.3x

0.3x

7.5x

$1,344

$1,540

29.3%

24.9%

78.4%

78.4%

9.9%

12.6%

37.5%

Median (Growth <

25%)

$4,213

5.1x

0.5x

4.5x

$779

$872

11.8%

13.1%

77.2%

77.4%

15.8%

18.5%

29.6%

Mean

$16,126

6.3x

0.5x

5.4x

$2,275

$2,558

13.3%

14.1%

73.9%

74.1%

16.4%

18.6%

30.2%

Lower Quartile

$2,217

3.7x

0.3x

3.2x

$502

$547

7.5%

9.4%

68.8%

69.2%

8.6%

10.8%

22.6%

KPMG Corporate Finance – Software Q2’24 Update

5) Valuation Overview - Publicly Traded Comparable Companies(1) - (Cont’d)

(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ

Software

Enterprise

Value (EV)

EV / Revenue

Revenue

Rev. Growth

Gross Margin

FCF Margin

Rule

of 40(2)

CY’24F

CY’24F

(Growth

Adj.)

CY’25F CY’24F

CY’25F

’23-’24

’24-’25

CY’24F

CY’25F

CY’24F CY’25F

‘23-’24 Revenue Growth < 25%

Envestnet

$4,393

3.2x

0.3x

2.9x

$1,367

$1,502

9.8%

9.8%

60.5%

60.0%

10.3%

10.6%

20.1%

Darktrace

$4,371

5.8x

0.3x

4.8x

$754

$912

22.4%

20.9%

89.6%

89.7%

13.2%

19.4%

35.6%

Box

$4,245

3.9x

1.0x

3.7x

$1,079

$1,148

4.0%

6.4%

79.5%

79.5%

27.9%

29.9%

31.9%

RingCentral

$4,181

1.7x

0.1x

1.6x

$2,389

$2,583

13.8%

8.1%

78.4%

78.7%

16.2%

19.2%

30.0%

Workiva

$3,955

5.5x

0.4x

4.8x

$721

$831

14.5%

15.3%

77.8%

79.0%

11.0%

13.3%

25.5%

Zeta Global

$3,914

4.3x

0.2x

3.8x

$901

$1,037

23.6%

15.2%

60.9%

62.0%

9.0%

10.1%

32.6%

Q2

$3,833

5.6x

0.5x

5.0x

$690

$768

10.4%

11.4%

55.8%

57.0%

10.1%

13.1%

20.5%

nCino

$3,621

6.7x

0.5x

5.8x

$542

$628

13.7%

15.9%

66.5%

67.8%

15.9%

17.7%

29.6%

BlackLine

$3,609

5.6x

0.6x

5.1x

$646

$709

9.5%

9.8%

79.3%

80.0%

20.1%

21.8%

29.6%

Braze

$3,551

6.1x

0.3x

5.1x

$580

$700

22.9%

20.7%

68.8%

69.4%

0.6%

4.5%

23.5%

Jfrog

$3,511

8.2x

0.4x

6.8x

$428

$518

22.4%

20.8%

84.0%

82.9%

17.8%

20.9%

40.2%

Five9

$3,383

3.2x

0.2x

2.7x

$1,055

$1,259

15.9%

19.3%

59.8%

61.0%

10.6%

13.5%

26.6%

Rapid7

$3,305

4.0x

0.5x

3.6x

$835

$915

7.4%

9.5%

74.0%

74.4%

19.3%

20.6%

26.7%

N-able

$3,047

6.6x

0.7x

5.9x

$464

$514

10.0%

10.9%

84.8%

84.9%

16.6%

17.6%

26.6%

Kinaxis

$3,019

6.2x

0.4x

5.1x

$490

$588

14.8%

20.0%

60.9%

62.7%

16.5%

18.3%

31.3%

SolarWinds

$2,980

3.8x

1.4x

3.7x

$779

$816

2.7%

4.7%

90.7%

90.4%

34.4%

38.1%

37.1%

Asana

$2,948

4.1x

0.4x

3.6x

$723

$830

10.8%

14.8%

89.8%

89.8%

0.2%

5.4%

11.1%

C3.ai

$2,923

8.1x

0.4x

6.6x

$362

$444

22.2%

22.5%

68.9%

68.9%

(1.8%)

(3.2%)

20.5%

Agilysys

$2,693

10.2x

0.6x

8.4x

$265

$319

16.1%

20.6%

60.8%

61.0%

19.0%

18.4%

35.1%

Freshworks

$2,611

3.7x

0.2x

3.2x

$700

$822

17.4%

17.4%

84.3%

83.8%

17.9%

19.9%

35.3%

Intapp

$2,531

5.5x

0.3x

4.7x

$461

$535

17.5%

16.0%

73.3%

73.8%

12.6%

15.9%

30.2%

E2open

$2,420

3.8x

NM

3.7x

$632

$662

(1.7%)

4.8%

68.8%

68.4%

NA

NA

NA

Jamf

$2,284

3.7x

0.3x

3.2x

$621

$704

10.7%

13.5%

81.4%

81.5%

13.1%

21.6%

23.9%

Teladoc Health

$2,151

0.8x

0.4x

0.8x

$2,659

$2,755

2.2%

3.6%

70.7%

70.7%

7.7%

10.2%

9.9%

PagerDuty

$2,073

4.4x

0.4x

3.9x

$474

$537

10.0%

13.4%

85.0%

84.6%

16.8%

18.5%

26.7%

MeridianLink

$2,000

6.3x

1.5x

5.8x

$316

$343

4.2%

8.4%

67.4%

67.9%

24.4%

26.3%

28.6%

Sprinklr

$1,993

2.6x

0.4x

2.4x

$780

$826

6.6%

5.9%

74.6%

75.6%

7.7%

12.6%

14.2%

Sprout Social

$1,985

4.9x

0.2x

4.1x

$406

$483

21.6%

19.1%

78.3%

78.5%

7.1%

10.9%

28.6%

©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.

6

Deal Matrix: Overall

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$2,529

$270

9.5x

Median

$564

$100

6.7x

Mean

$1,742

$287

8.0x

Lower Quartile

$170

$49

4.4x

KPMG Corporate Finance – Software Q2’24 Update

(1) Excludes transactions with deal value of <$30M, <2.5x multiple & undisclosed deal values; Source: Capital IQ & 451 Research

Date

Acquirer

Target

Target

Country

Sector

Buyer

Type

EV

TTM

Revenue

EV / TTM

Revenue Target Description

Jun’24

Nokia Oyj

Infinera

U.S.

Telecom

$3,797

$1,529

2.5x Optical networking

software & systems

Jun’24

PIXID SAS

VectorVMS

U.S.

Workforce

Management

$50

$11

4.4x Vendor & workforce

mgmt. software

Jun’24

CompuGroup

Medical Norway

Pridok

Norway

HCTech

$38

$5

8.3x Electronic patient records

mgmt. software

Jun’24

Corpay

GPS Capital

Markets

U.S.

FinTech

$725

$100

7.3x Cross-border payment &

treasury mgmt. software

Jun’24

Simulations Plus

Pro-ficiency

U.S.

HCTech

$100

$15

6.7x Life sciences performance &

intelligence software

Jun’24

Industrial and

Financial Systems

Copperleaf

Technologies

Canada

Asset

Management

$564

$64

8.8x AI-based enterprise decision

analytics software

Jun’24

Bain Capital

PowerSchool

U.S.

EdTech

$5,600

$723

7.7x K-12 administrative &

assessment software

Jun’24

Nemetschek

Canvas Solutions

U.S.

GRC

$771

$67

11.5x

Job site inspection &

safety software

Jun’24

SAP

WalkMe

U.S.

Enterprise

Management

$1,032

$270

3.8x Digital adoption software

May’24

Hg Capital

AuditBoard

U.S.

GRC

$3,000

$200

15.0x Audit, risk, compliance &

ESG mgmt. software

May’24

Alicorn

Glassbox

Israel

Customer

Management

$142

$49

2.9x Customer experience

mgmt. software

May’24

CyberArk Software Venafi

U.S.

Cybersecurity

$1,540

$150

10.3x Machine identity

mgmt. software

May’24

LogRhythm

Exabeam

U.S.

Cybersecurity

$500

$150

3.3x Cybersecurity operations &

analytics software

May’24

Palo Alto Networks

IBM

(QRadar SaaS)

U.S.

Cybersecurity

$500

$100

5.0x Threat detection &

response software

Date

Acquirer

Target

Target

Country

Sector

Buyer

Type

EV

TTM

Revenue

EV / TTM

Revenue Target Description

May’24

KKR

IQGeo

U.K.

Geospatial

Intelligence

$405

$57

7.2x Geospatial network

management software

May’24

Permira

Squarespace

U.S.

Website

Designing

$6,900

$1,056

6.5x Website design &

development software

May’24

Corpay

Paymerang

U.S.

FinTech

$475

$50

9.5x

Invoice & payments

automation software

May’24

Akamai

Technologies

Noname Gate

U.S.

Cybersecurity

$450

$20

22.5x API security software

May’24

Firstsource

Solutions

Quintessence

Business Solutions

India

Revenue

Management

$39

$15

2.7x Revenue cycle

mgmt. software

Apr’24

Thoma Bravo

Darktrace

U.K.

Cybersecurity

$4,992

$616

8.1x Cybersecurity NBAD software

Apr’24

GTCR

AssetMark

Financial

U.S.

Wealth

Management

$2,529

$708

3.6x Portfolio & wealth

mgmt. software

Apr’24

IBM

HashiCorp

U.S.

Infrastructure

Management

$6,400

$583

11.0x

Infrastructure & security

lifecycle mgmt. software

Apr’24

CoStar

Matterport

U.S.

Facility

Management

$1,600

$158

10.1x Facilities marketing &

mgmt. software

Apr’24

Armis

Silk Security

U.S.

Cybersecurity

$150

$5

30.0x Cyber risk prioritization &

remediation software

Apr’24

Symphony

Technology Group

Gresham

Technologies

U.K.

FinTech

$170

$61

2.8x Financial mgmt. software

Apr’24

Vista Equity

Partners

Model N

U.S.

GRC

$1,170

$254

4.6x Revenue optimization &

compliance software

Apr’24

Experian

illion Australia

Australia

GRC

$532

$114

4.7x Credit risk mgmt. software

Apr’24

Clearwater

Analytics

Wilshire Advisors

(risk and

performance

analytics assets)

U.S.

GRC

$40

$7

5.7x Risk & performance analytics

Apr’24

Advent / CDPQ /

Novacap

Investments

Nuvei

Canada

FinTech

$6,300

$1,190

5.3x Transaction processing

software

Deal Matrix: M&A by Strategic Acquirers

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$1,032

$150

10.3x

Median

$500

$67

7.3x

Mean

$1,078

$190

9.1x

Lower Quartile

$142

$15

4.7x

Deal Matrix: M&A by PE & PE-Backed Acquirers

Deal Size

TTM

Revenue

EV / TTM

Revenue

Upper Quartile

$5,144

$712

7.8x

Median

$1,850

$227

5.9x

Mean

$2,682

$424

6.4x

Lower Quartile

$476

$64

4.2x

6) Valuation Overview - Recent Precedent M&A Transactions(1)

Financial

Strategic

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Financial

Strategic

Strategic

Financial

Strategic

Financial

Financial

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Strategic

Financial

Financial

Strategic

Strategic

Financial