Brief Real Estate Technology Market Update & Ecosystem

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Brief Real Estate Technology Market Update & EcosystemMarket Update & Ecosystem

Kris Beible, Director of Business DevelopmentS f E i G LLC

© Software Equity Group, LLC 2013

Software Equity Group, LLC858 5092800

www.softwareequity.com

2Leaders in Real Estate Technology M&A

has received a growth equity investment from


3Disclaimer

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.

This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.


4Real Estate Technology Ecosystem (Abbreviated)PaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment MgmtPaymentsPaymentsData/Information ServicesData/Information ServicesProperty MgmtProperty Mgmt Investment MgmtInvestment Mgmt

ll R id i l C iR id i l C iF ili i D i /AECF ili i D i /AECll ConstructionCommercial ConstructionCommercial Construction Residential ConstructionResidential ConstructionFacilities Design/AECFacilities Design/AECIWMS & Facilities MgmtIWMS & Facilities Mgmt

Home Services Lead GenHome Services Lead Gen Broker CRM/MarketingBroker CRM/Marketing Mortgage Orig. / FinanceMortgage Orig. / FinanceProperty Search/Lead GenProperty Search/Lead Gen


Company Acquired

Public Company

5Public Companies: Real Estate TechnologyMarket Enteprise LTM LTM LTM Revenue LTM Gross LTM EBITDA EV/ EV/

Company Ticker Category Cap. (mm) Value (mm) Revenue EBITDA Growth Margin Margin Rev EBITDAAngie's List, Inc. (Nasdaq:ANGI) Home Services Lead Gen $1,404.4 $1,356.3 $176.9 -$43.0 70.9% 72.3% - 7.7x -Autodesk, Inc. (Nasdaq:ADSK) Facilities Design / AEC $7,957.9 $6,615.8 $2,294.0 $469.3 0.8% 89.2% 20.5% 2.9x 14.1xAveva Group plc (LSE:AVV) Facilities Design / AEC $2,568.1 $2,280.0 $333.4 $104.3 12.4% 92.7% 31.3% 6.8x 21.9xCoreLogic, Inc. (NYSE:CLGX) Data/Information Services $2,484.2 $3,130.5 $1,606.7 $340.6 16.4% 46.2% 21.2% 1.9x 8.3xCoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2xCoStar Group Inc. (Nasdaq:CSGP) Data/Information Services $3,893.0 $3,891.8 $385.3 $59.7 47.8% 67.8% 15.5% 10.1x 65.2xEllie Mae, Inc. (NYSE:ELLI) Mortgage Orignation / Finance $648.3 $587.8 $111.8 $27.8 69.9% 77.2% 24.8% 5.3x 21.2xMove, Inc. (Nasdaq:MOVE) Property Search / Lead Gen $516.7 $486.5 $205.7 $15.3 8.1% 78.4% 7.4% 2.4x 28.8xNemetschek AG (XTRA:NEM) Facilities Design / AEC $611.0 $543.1 $233.7 $55.0 6.6% 52.1% 23.5% 2.3x 9.9xRealPage, Inc. (Nasdaq:RP) Property Management $1,532.7 $1,510.0 $336.7 $53.8 22.5% 60.4% 16.0% 4.5x 28.1xTextura Corporation (NYSE:TXTR) Commercial Construction $641.1 $655.3 $27.3 -$15.1 106.2% 75.0% - 24.0x -Trulia Inc (NYSE:TRLA) Property Search / Lead Gen $1 104 8 $900 4 $79 9 -$4 2 87 8% 86 3% - 11 3x -Trulia, Inc. (NYSE:TRLA) Property Search / Lead Gen $1,104.8 $900.4 $79.9 -$4.2 87.8% 86.3% - 11.3x -Zillow , Inc. (Nasdaq:Z) Property Search / Lead Gen $2,138.2 $1,959.2 $133.0 $8.1 71.3% 88.9% 6.1% 14.7x 241.3xzipRealty Inc. (Nasdaq:ZIPR) Broker CRM/Marketing $65.5 $54.5 $73.1 -$0.3 -10.2% 43.9% - 0.7x -

High: $7,957.9 $6,615.8 $2,294.0 $469.3 106.2% 92.7% 31.3% 24.0x 241.3xLow: $65.5 $54.5 $27.3 -$43.0 -10.2% 43.9% 6.1% 0.7x 8.3x

A $1 966 6 $1 843 9 $461 3 $82 4 39 3% 71 6% 18 5% 7 3 48 8

Top 5: EV/Revenue

Average: $1,966.6 $1,843.9 $461.3 $82.4 39.3% 71.6% 18.5% 7.3x 48.8xMedian: $1,404.4 $1,356.3 $205.7 $27.8 22.5% 75.0% 20.5% 5.3x 21.9x

p

10.0x

20.0x

30.0x

Median EV/Rev: 11.3x

0.0x

Median Growth Rate: 71.3%Company

Angie's List, Inc.

CoStar Group

Textura Corp.

Trulia, Inc.

Zillow, Inc.

TTM Rev Growth 70.9% 47.8% 106.2% 87.8% 71.3%

EV/Rev 7 7x 10 1x 24 0x 11 3x 14 7x


EV/Rev 7.7x 10.1x 24.0x 11.3x 14.7x

*Public Company data sourced July 2013: CapitalIQ

6M&A: Real Estate Technology

Aggregate M&A Volume: Annual

4842 43

sactions

Aggregate M&A Volume: Quarter

1314

12

14

11ions

14

25

# of RM&A Trans

2

5

10

6

10

2

5

10 10

2

78 8

11

of M

&A Transacti

2009 2010 2011 2012 TTM July 2013

2009 2010 2011 2012 2013

#

Q1 Q2 Q3 Q4

M&A Volume by Category: Annual

9

8

9 9

8

4

3

6

3

4

7

3

7 7

5

7

5

6

5

4

5

3 3

4 4

M&A Transaction

s

1

0

1 1

0

2

0

1

0 0

2

1

0

1

2 2

1 1

2

1 1 1

2

1 11

0

1 1

0

22

0 0

1

Property Management

Data/Information Services

Payments Investment Management

IWMS & Facilities Management

Facilities Design / AEC

Commercial Construction

Residential Construction

Property Search / Lead Gen

Home Services Lead Gen

Broker CRM/Marketing

Mortgage Orig. / Finance

# of M


2009 2010 2011 2012 TTM July 2013

*Data sourced July 2013: CapitalIQ

7Most Acquisitive Companies (1/2009 – Present)

Top 3 Most Active Buyers

Viewpoint Construction

# of Acquisitions

DIY Real Estate Solutions

Yardi, 13

MRI S/W, 3

Textura, 3

Trimble, 3

Construction S/W, 3

Energy Billing Systems

P t R h P t

Multifamily Services Group

Peak Insurance Advisors

RealPage, 10CoStar Group, 3

Ellie Mae, 3

/

Level One

Property Research Partners

Zillow, 6

Reply!, 4

Autodesk, 3

Level One

Evergreen Solutions,

HomeAway, 5Accruent, 4

CoreLogic, 4

MarketLeader, 4

© Software Equity Group, LLC 2013*Data sourced July 2013: CapitalIQ

8Top 10 Real Estate Technology M&A by Enterprise Value (EV)EV/ llBuyer TypeBuyer TargetDate EV (mm) EV/RevEV/

EBTIDA

4/27/2011 $654.2 8.2x 30.3x Public Public

Seller Type

5/8/2013 $314.3 6.6x ‐ Public Public

1/11/2011 $270.0 4.7x 11.8x Public Public

3/24/2011 $231.8 6.1x 11.5x Public Private

3/22/2012 $145.0 ‐ ‐ Private Public Subsidiary

4/12/2011 $140.5 5.6x 20.8x Public Private/ /

12/1/2009 $128.0 1.7x ‐ Private Public Subsidiary

8/22/2011 $74.9 4.5x ‐ Public Private

11/3/2010 Level One, Inc. $62.0 2.7x ‐ Public Private


3/15/2011 $51.0 ‐ ‐ Public Private


9Top 10 Real Estate Technology M&A by EV/RevenueEV/

Buyer TypeBuyer TargetDate EV (mm) EV/RevEV/

EBITDASeller Type

5/2/2012 $37.4 102.4x ‐ Public Private

7/29/2011 $14.8 65.1x ‐ Public Private

7/23/2012 $15.5 10.3x ‐ Public Private

4/27/2011 $654.2 8.2x 30.3x Public Public

5/8/2013 $314.3 6.6x ‐ Public Public

3/24/2011 $231.8 6.1x 11.5x Public Private/ /

4/12/2011 $140.5 5.6 20.8x Public Private

1/11/2011 $270.0 4.7x 11.8x Public Public

8/22/2011 $74.9 4.5x ‐ Public Private


8/15/2011 $25.2 3.2x ‐ Public Private


10Summary

• Broad ecosystem of players

• Sector public companies currently performing well & quite acquisitive

• Strong post recession rebound in M&A volume

• General sector buyer acquisition appetite highy q pp g

Top 5 M&A Volume: 2009 - Present

1. Property Management (30 deals)

Top 5 M&A Volume: TTM

1. Commercial Construction (9 deals)1. Property Management (30 deals)2. Broker CRM/Marketing (25 deals)3. Commercial Construction (23 deals)4. IWMS & Facilities Management (21 deals)

1. Commercial Construction (9 deals)2. Broker CRM/Marketing (8 deals)3. IWMS & Facilities Management (5 deals)4. Property Management, Property Search /

5. Property Search / Lead Gen (20 deals) Lead Gen, Mortgage Orig. / Finance (4 deals)


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d h l h l &ATo discuss the real estate technology ecosystem, M&A transactions and/or your business, please contact me at:

P: 858.509.2800P: 858.509.2800

Email: [email protected]


Brief Real Estate Technology Market Update & Ecosystem

Technology

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