MARTECH

BAROMETER

Q2 2018 MARKET REVIEW

2

SECTOR-LED SPECIALISTS IN M&A AND FUNDRAISING

Years ofRI DEALS 3 Sectors

Deals inPast 2 Years

25+ 30+

50 People

15 Nationalities 3 Offices 1,000+ Buyers& Investors

100%Referenceable

3

Performance Marketing Programmatic Performance Marketing Programmatic Analytics

eCommerce Tech Hybrid Cloud eCommerce Mobility UX

has been

acquired by

has been

acquired byhas made a $20m

growth equity

investment into

has been

acquired by

THE BEST COMPANIES IN MARKETING AND TECHNOLOGY WORK

WITH US TO ACHIEVE GREAT RESULTS

has received a Series B

funding round from

has been

acquired by

has been

acquired byhas been

acquired by

has been

acquired by

has been

acquired by

4

MARTECH HIGHLIGHTS: Q2 2018

Welcome to the Q2 2018 edition of the MarTech Barometer – Results International’s quarterly review of the global marketing

technology sector.

Highlights this quarter include:

• The RI AdTech index gained 42%, the highest quarterly increase on record; driven by a resurgence in AdTech M&A, led by the

acquisition of AppNexus by AT&T for a reported $1.6bn (despite rumours of an IPO), adding another telco into the competitive

mix alongside Verizon and SingTel to dethrone the big three: Google, Facebook and Amazon

• Large software players continued investing in their MarTech and eCommerce stacks; Oracle acquired Grapeshot (for $454m) to

add contextualisation to its measurement capabilities (after buying Moat last year) and Adobe acquired Magento for $1.7bn,

increasing the attractiveness of independent eCommerce platforms Shopify (which helped drive the RI MarTech index up 75%

over the last 12 months) and BigCommerce (which raised $64m this quarter)

• This MarTech and eCommerce M&A activity has driven the demand for complementary implementation and tech-enabled

execution services, such as e2y (digital commerce consultancy) which was acquired this quarter by Dimension Data (Results

International acted as exclusive financial advisors to e2y)

• The pressure and uncertainty surrounding GDPR caused some AdTech players to exit the EU; Verve (US-based location-based

mobile marketing) shut down its European operations in April, and Drawbridge (US-based cross-device targeting), having

shuttered its EU AdTech division in March, divested its advertising business to Gimbal in May, exiting the AdTech space. Now

implemented, the actual impact of GDPR will become evident in the coming quarters

The MarTech and AdTech sectors remain active and the outlook is exciting. As such, now is a good time to be contemplating

fundraising, exit or growth through acquisition in the MarTech or AdTech space – if you are, please do get in touch.

5

RI GLOBAL MARTECH INDICES

60

80

100

120

140

160

180

200

220

AdTech MarTech Data Diversified Internet NASDAQ Composite Index

LAST

12

MO

NTH

SH

AR

E P

RIC

E P

ER

FO

RM

AN

CE (

%)

75.0%

(4.5%)

11.1%

38.9%

22.3%

Q2 2018 PERFORMANCE

AdTech 42.2%

MarTech 22.6%

Diversified Internet 18.8%

Data 13.0%

NASDAQ comp 9.3%

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

Notes: Based on share prices as at 30th June 2018; indices weighted by market capitalisationSources: Capital IQ and Results analysis

6

MARTECH: SHARE PRICE PERFORMANCE

(33.0%) (31.8%) (29.4%)

(58.4%)(45.2%)

(33.9%)

(58.5%)

(5.6%)

62.2%

(44.6%)

87.2%

55.6%62.8%

45.3%

11.1%

(18.7%)

90.7%

133.9%

47.3%

67.9%

45.1%

15.3%

(9.2%)

19.0%

36.1%

21.5%

75.6%

3.8%

28.7%

(100%)

(50%)

-

50%

100%

150%

27.1%

(4.0%)

(18.4%)

(35.7%)(28.1%)

17.3%

(2.9%)

9.0% 7.4%

58.3%

89.0%

38.8%

48.7%

29.2%

(11.2%)(14.8%)

15.8%

35.7%

(5.8%)

17.1%

52.9%

31.9%

9.6%

21.9%

1.2%8.9%

17.4%

(9.9%)

21.6%

(60%)

(40%)

(20%)

-

20%

40%

60%

80%

100%

LAST

12

MO

NTH

SQ

2 2

01

8

ADTECH DATA DIVERSIFIED INTERNETMARTECH

(1)

(1)

(1)

(1)

(1)

(1) Company has IPO’d within the last 12 months, the share price movement represents the change between the stock’s respective IPO date (see slide 7) and 30th June 2018Note: Based on share prices as at 30th June 2018Sources: Capital IQ and Results analysis

7

MARTECH: SELECTED STOCKS - PERFORMANCE SINCE IPO

COMPANYIPO

DATEDESCRIPTION

RAISED

($M)INDICATIVE PRICE

RANGE ($)

IPO LISTING

PRICE ($)

INCREASE VS.

RANGE

DAY 1

INCREASE

CURRENT

INCREASE(1)EV ($M)

EV /

REVENUEEV / EBITDA

IPO CURRENT IPO CURRENT IPO CURRENT

NasdaqGM

Feb-18

Marketing

measurement & data

analytics

70 13.0-15.0 13.0 (7.1%) 2.8% 12.5% 423 418 2.7x 2.7x n.m. n.m.

NasdaqGMDec-17

Cross-platform ad

optimisation & DSP30 8.0-9.0 8.0 (5.9%) 12.5% (2.8%) 458 297 n.a. 1.7x n.a. 48.6x

AIMDec-17

Native in-video

advertising35 n.a. 0.83 n.a. 1.2% (18.9%) 36 13 n.m. 1.7x n.m. n.m.

TSEDec-17

End-to-end AdTech

stack16 10.8-12.0 12.0 5.1% 99.0% 49.7% 189 274 n.a. 1.6x n.a. 21.9x

NYSE

Nov-17Email marketing

automation131 13.5-15.5 16.0 10.3% 12.5% 75.9% 591 1,288 5.4x 9.1x 52.8x n.m.

NYSE

Apr-17

Local search

marketing & content

management

116 8.0-10.0 11.0 22.2% 21.9% 15.0% 939 2,057 5.7x 9.3x n.m. n.m.

NasdaqGSSep-16

Big data & marketing

automation87 10.5-12.5 13.0 13.0% 21.2% (37.2%) 353 233 n.a. 1.6x n.a. 11.9x

NasdaqSep-16 Agency focused DSP 84 16.0-18.0 18.0 5.9% 67.2% 175.7% 721 4,257 3.9x 9.8x 18.5x 31.6x

NYSE

May-15eCommerce

platform131 14.0-16.0 17.0 13.3% 51.1% 632.9% 1,172 14,979 7.3x 14.7x n.m. n.m.

(2)

(2)

(2)

(2)

(2)

(2)

Note: Cision has not been included in the above analysis as it listed on the NYSE through a reverse merger with Capitol Acquisition Corp III, a publicly traded investment vehicle, not via an initial public offering: (1) Current increase from IPO price; market data as of 30th June 2018 (2) Analyst reports were unavailable at the time of IPONote: Calendarised to December year end; net revenues have been used where possible (gross revenues minus TAC); $ millions, except share price data; multiples capped at20x EV / Revenue and 50x EV / EBITDASources: Capital IQ and Results analysis

8

MARTECH: PUBLIC COMPANY VALUATION BENCHMARKS

1.7 x

6.7 x

3.4 x

5.0 x

2.7 x

-

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

AdTech MarTech Data Diversified

Internet

Global

AdTech/

MarTech

20.9%

25.4%

6.8%

21.4% 20.9%

-

5%

10%

15%

20%

25%

30%

AdTech MarTech Data Diversified

Internet

Global

AdTech/

MarTech

NET REVENUE GROWTH (2018-19E) EV / NET REVENUE 2018E

Notes: EV = Enterprise Value; financials calendarised to December year end; median values reported; net revenues have been used where possible (gross revenues minus TAC)See Selected Publicly Traded Companies (slide 13) for details of companies included in each categorySources: Capital IQ, analyst reports and Results analysis

9

MARTECH: PUBLIC COMPANY VALUATION PERFORMANCE

OVER TIME

6.7 x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

MarTech: EV / CY Net Revenue

Median

1.7 x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

AdTech: EV / CY Net Revenue

Median

LTM Q2 2018

% CHANGE

Median 72.3% (12.1%)

LTM Q2 2018

% CHANGE

Median 39.0% 20.1%

11(1)

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

10(1)

(1) Number of companies with applicable multiples in Q2 2018 indexNotes: EV = Enterprise Value; financials calendarised to December year end, which can impact the multiples at the start of each year as the base is shifted forward; weekly tracking of valuation multiples commenced in July 2015, October 2014 – June 2015 tracked on a quarterly basis, therefore a linear progression has been assumed between quarters up to July 2015Sources: Capital IQ and Results analysis

10

MARTECH: GLOBAL M&A ACTIVITY Q1 2013 – Q2 2018

3732

55

38

8072 74

67

54 54

87

61

74

85

72

60

91

82

6268

86

76

17

11

19

14

28

29

39

39

44 47

25

39

33

27

40

21

24

20

26

25

18

14

-

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

$8bn

0

20

40

60

80

100

120

140

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

MarTech - Deal Number AdTech - Deal Number MarTech - Deal Value AdTech - Deal Value

NU

MB

ER

OF D

EA

LS

TOTA

L DIS

CLS

OED

DEA

L VA

LUE

(1) (2) (3) (4) (5)

2016:412 Deals

2015:411 Deals

2014:428 Deals

2013:223 Deals

2017:398 Deals

2018:194 Deals

(6)

Notable deal announcements include: (1) Alliance Data’s acquisition of Conversant ($2.2bn); (2) Verizon’s acquisition of AOL ($4.3bn); (3) Salesforce’s acquisition of Demandware ($2.8bn), Vista Equity Partners’ acquisition of Marketo ($1.6bn) and Cvent ($1.4bn) and EQT’s acquisition of Sitecore ($1.1bn); (4) Verizon’s acquisition of Yahoo! ($4.8bn) and Orient Hontai Capital’s acquisition of Applovin ($1.4bn); (5) Golden Gate Capital’s acquisition of Neustar ($2.7bn); (6) SAP’s acquisition of Callidus ($2.4bn) and GTCR’s & Sycamore Partner’s acquisition of CommerceHub ($1.1bn)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

11

MARTECH: SELECTED DEALS IN Q2 2018

DATE BUYER TARGET EV ($M) EV/REVENUE(1) COMPANY DESCRIPTIONTARGET

LOCATION

Jun-18 1,600 - Programmatic ad exchange

Jun-18 - - Mobile-first programmatic DSP

Jun-18 17 - Marketing automation & lead generation

Jun-18 800 5.3x Programmatic ad verification & optimisation

Jun-18 20 - Influencer marketing

May-18 1,680 11.2x eCommerce platform

May-18 - - Marketing & promotions management

May-18 19 - Marketing automation and CRM

May-18Certain assets

80 0.6x Converged addressable video & TV

May-18Managed media unit

- - US managed media unit of Drawbridge

May-18 130 3.1x SEO & social media marketing

May-18 12 30.0x AI-driven real-time eCommerce personalisation

Apr-18 265 7.2x eCommerce websites & integrated marketing

Apr-18 454 13.0x Audience measurement & targeting

Apr-18 150 - Travel loyalty marketing

Apr-18 - - AI-driven mediation for mobile publishers

Apr-18 16 12.8x Mobile app intelligence

Apr-18 8 - Personalised video & mobile messaging

(2)

(2)

(2)

(2)

(2)

(1) In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority

interest); net revenues have been used where possible (gross revenues minus TAC)

(2) Earnout consideration has not been included in the calculation of Enterprise Value unless stated; Ahalogy - $30m maximum earnout excluded from $20m deal value; WordStream - $20m earnout

excluded from $130m deal value; Weebly - $100m earnout (restricted stock) excluded from $265m deal value; Priori Data - $0.3m earnout excluded from $16m deal value; Vehicle - $4m earnout

excluded from $8m deal value

(3) Enterprise Value includes approximate adjustments of $20.9m

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(3)

12

MARTECH: SELECTED FUNDRAISINGS IN Q2 2018DATE COMPANY

TYPE OF ROUND

FUNDSRAISED ($M)

INVESTOR PARTICIPATION COMPANY DESCRIPTIONCOMPANYLOCATION

Jun-18 Series B 16GMG Ventures (lead investor), Hearst Ventures, Reed Elsevier Ventures, MMC Ventures, Frontline Ventures, Kreos Capital and LocalGlobe

Media monitoring & real-time customer insight

Jun-18 Series B 33 Sageview Capital (lead investor), Yaletown Partners and BDC Venture Capital API-based eCommerce

Jun-18 Series B 26Redpoint Ventures (lead investor), Canaan Partners, Boldstart Ventures, Social Leverage, Plug and Play, Cisco Investments, BoxGroup and private investors

Omni-channel customer experience

May-18Growth Equity

20Jolt Capital, Sunstone Capital, Conor Venture Partners, Vækstfonden (lead investors) and Cipio Partners

AI-powered media planning

May-18 Series A 16 Draper Esprit (lead investor), Harbert Management Corporation and Karma VenturesAI & computer-vision video ad emotion response

May-18 Series B 27Goldman Sachs Principal Strategic Investments, Nasdaq Ventures, DRW Venture Capital, Tribeca Venture Partners (lead investors), Tribeca Angels and TLcom Capital

Offline location intelligence & measurement

May-18 Series B 12 Sofiouest (lead investor), Bpifrance and Entrepreneur VenturePersonalised mobile ad measurement

May-18 Series B 37Battery Ventures (lead investor), Contour Venture Partners, Cross Creek Capital, Primary Venture Partners, Rho Ventures and private investors

Behavioural marketing automation & analytics

May-18 Series B 13 Smedvig Capital (lead investor), Beringea and Revolt Ventures App commerce

Apr-18 Series C 37 Octopus VenturesRetail engagement & content optimisation

Apr-18 Venture 64 Goldman Sachs (lead investor), General Catalyst, GGV Capital and Tenaya CapitaCloud-based eCommerce platform

Apr-18 Series A 32 Updata PartnersCloud-based content personalisation

Apr-18 Venture 40 e.ventures, Siguler Guff & Company and GreycroftCompetitive intelligence & analytics

Apr-18 Venture 25Femto Partners, Eight Roads Ventures, Mitsui & Co, Mitsui Sumitomo Insurance Venture Capital, SMBC Venture Capital, Mizuho Capital and Mitsubishi UFJ

Real-time eCommerce web analytics

Apr-18 Series C 60 Sequoia Capital (lead investor), General Catalyst and CRVConversational sales &

marketing automation

Apr-18 Series B 30Insight Venture Partners (lead investor), Matrix Partners, Underscore VC and Leaders Fund

Marketing automation, analytics & CRM

Apr-18 Venture 8 West Coast Capital (lead investor) and Scottish Investment BankTV campaign measurement & optimisation

Apr-18 Series B 14Two Sigma Ventures (lead investor), Epic Ventures, Comcast Ventures, Rembrandt Venture Partners and Voyager Capital

Personalised marketing & CDP

Sources: Press releases, Capital IQ and Results analysis

13

MARTECH: SELECTED PUBLICLY TRADED COMPANIES

PRICE ($) % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN EBITDA MARGIN

COMPANY (30-JUN-18) WEEK HIGH CAP CASH DEBT VALUE ($M) CY2018 CY18-19 HISTORICAL CY2018 CY2019 CY2018 CY2019 CY2018 CY2019

ADTECH

MARTECH

DATA

DIVERSIFIED INTERNET

OPERATING METRICS VALUATION METRICS

REVENUE EBITDA

Note: Calendarised to December year end; $ millions, except share price data; multiple capped at 20x EV/Revenue and 80x EV/EBITDA; net debt is inclusive of minority interest and preferred equity; net revenues have been used where possible (gross revenues minus TAC); analyst reports have been used for selected company financialsSources: Capital IQ, analyst reports and Results analysis

14

THE TECH REPORT: SUBSECTORS

In addition to this summary, we produce separate quarterly reports that focus specifically on; Digital Services (Digital Horizon),

Enterprise Software (Enterprise Stack), Cybersecurity (CyberScope) and HealthTech (HealthTech Heartbeat). You can find these

reports on our website or by clicking on the icons below. Alternatively, you can contact one of our team members on the details

overleaf.

HEALTHTECH

HEARTBEATCYBERSCOPE MARTECH

BAROMETER

DIGITAL

HORIZONENTERPRISE

STACK

15

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