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1、Software sector updateQualitative insights into broader software trends and public and private valuations across the transaction spectrum,and interviews with todays leaders transforming the sector.Q2 2023Important disclosures appear at the end of this reportGP Bullhound Corporate Finance Ltd and GP
2、Bullhound Asset Management Limited are authorised and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRAGP Bullhound Luxembourg S.R.L.is regulated by the CSSF in Luxembourg2Q2 2023 Software sector updateTHE VIEWQ2 software perspectives from GP BullhoundAdvancements in
3、 security automation are becoming increasingly more accessible to organisations,driving an increased ROI due to the rise in AI and low-code/no-code integrationsRelative to organisationswithout automation,organisationswith fully implemented AI and automation programs detect and control breaches faste
4、rAutomation shortens the average life cycle of a breach by as much as 74 days when comparing an organisationwith automation against one without AI and low-code/no-code integrationsTheres been a surprise shift in the data strategy big social media platforms are taking regarding the accessibility of t
5、heir APIsFor example,Reddit recently followed in Twitters footsteps by removing unpaid access to its Data API.The move was aimed at preventing AI companies from freely scraping and leveraging Reddits content,for the purpose of training complex language modelsIts ushering in an exciting new era for t
6、he DaaS market,as it continues to evolve,already primed to reach$68bn by 2030(37%CAGR from 2022)As the race for a finite set of private equity opportunities intensifies,the allure of machine learning is becoming difficult to ignore as funds begin to prioritisespeed and deeper insights when evaluatin
7、g assetsDecreased reliance on manual and time-intensive tasks can strengthen the opportunity for value-add dialogue between limited and general partners.With ML-capable markets likely to rise to$117bn by 2027,even service providers to the private equity industry are being forced to adapt by upskilli
8、ng the efficacy of their financial and commercial adviceThe key determinant for adoption will likely come down to limited partners and their willingness to adjust their risk appetite,amid pressures to narrow diligence timelinesAbout usPublic comparablesTransaction trendsPublic company analysesCEO co
9、mmentaryTakeawaysEdge computing market,globally,is likely to reach$140bn by 2030,at a CAGR of 36%from 2023 given the increased use of edge devicesCommonly thought of as a data security and privacy risk,the implementation of AI,particularly generative AI(which sits directly at the servers edge)is lim
10、iting the need to share and or transfer data to a cloud serverCoupled with the growing need to obtain analytics and insights at a faster pace,businesses have begun to leverage the capabilities of AI within their edge computing systems to improve efficiency and speed up the automation of analytics an
11、d insightsEdge computing:rising tides in AI soften concerns for edge computing Cybersecurity automation gets a boost:talent shortage within cybersecurity being offset by AIData-driven insights and PE:machine learning becoming an important part of the PE playbookExpansion of DaaS market:the unintende
12、d result from the rise of complex language modelsRise in tech-enabled microservices:digital solution to global supply chain challengesAs businesses continue to face supply chain challenges due to labour shortages and wage increases,a microservice-based approach to supply chain management is rising i
13、n popularity due to its compatibility with digital-first solutionsThe tech-enabled microservices market is likely to reach$3bn in 2028,representing a CAGR of 22%from 2023.Blue Yonder is one such example,using tech-enabled microservices to provide insights into customer orders,inventory,and labour su
14、pplyAccording to a 2022 report by Solo.io,85%of companies are actively looking to modernisetheir supply chain architecture,in order to utilisetech-enabled microservicesIt is becoming clear that,in times of economic turbulence,usage-based SaaS costs are some of the first to be trimmedFor the first ti
15、me in a long time,net retention figures have dropped for the household SaaS names.As budgets shrink during a particularly long winter for technology,organisationsare increasingly turning their attention to usage-based pricing modelsThe exodus has led to the emergence of new solutions,aimed at meteri
16、ng and managing usage-based pricing for SaaS companies Usage-based pricing:drawbacks beginning to surface during downturn3Q2 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspectives from GP BullhoundEdge computing:rising tides in AI soften inherent data concerns for ed
17、ge computing As the need to obtain analytics and insights at a faster pace increases,businesses have begun to leverage the capabilities of AI within their edge computing systems to improve efficiency and speed up the automation of analytics and insights.Edge computing systems were already growing in
18、 popularity over the past few years,and now this is particularly the case for businesses operating within the data and analytics sector,who are finding unique value in the solutions use cases Often edge computing has been considered a data security and privacy risk,given it operates at the edge of a
19、 local network.However,with the implementation of AI,particularly generative AI(which sits directly at the servers edge)the need to share and or transfer data to a cloud server has been reduced According to Fortune Business Insights,the edge computing market,globally,is likely to reach$140bn by 2030
20、,at a CAGR of 36%from 2023 given the increased use of edge devicesCybersecurity automation gets a boost:cybersecurity talent shortage being offset by AI The material impact of security automation,which was already acknowledged for its ROI,has received a substantial boost through AI and low-code/no-c
21、ode integrations.Companies like Blink Ops and Cequence lead this automation boom by offering vendor-agnostic no-code platforms for automating security and IT operations workflows.By leveraging advancements in LLMs/generative AI,security professionals can instantly generate automated workflows by typ
22、ing prompts The implementation of LLMs and AI in security automation is playing an important role in easing the burden on understaffed cyber teams of large organisations,simply by making it more accessible and shortening the time required to identify/contain a breach.When fully deployed,the average
23、lifecycle of a breach is 74 days shorter,compared to instances without security AI and automation These new advancements are making security automation more accessible,resulting in enhanced monetary benefits.According to IBM,the average organisation with fully implemented AI and automation programs,
24、detects and controls breaches faster,resulting in additional cost savings of$3m.However,even organisations with partially deployed AI security performed considerably better than those without any such measuresSource:Business Insider,SaaStr,ITProToday,IBM,Businesswire,ISC2,Security Magazine and Secur
25、ity IntelligenceAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysGROWTH INVESTMENT INTOACQUIRED BYACQUIRED BYSelect transactions4Q2 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspectives from GP BullhoundExpansion of DaaS mark
26、et:the unintended result from the rise of complex language models As AI becomes more prevalent,an unintended impact is the data strategy big social media platforms are taking with the accessibility of their APIs.Due to the rapid growth and notoriety the AI market is garnering,companies are taking a
27、second look at the impact of heavy investment into AI.One area of particular interest is the data that companies like Google and Microsoft use to train their complex language models for commercial use For example,Reddit recently followed in Twitters footsteps by announcing paid access to its Data AP
28、I.This move is aimed atpreventing AI companies from freely scraping and utilizing Reddits content for training large language models.This strategic change is a clear signal that shows an understanding for the opportunity to monetize the vast content and data available on these platforms All in all,t
29、his is an exciting new expansion of the DaaS market.As it continually evolves in the coming years,the market is primed to grow to$68b by 2030,at a 37%CAGR from 2022.The market will likely mature as cloud computing adoption and big data analytics become the norm.Also,expect to see new forms of data b
30、eing introduced and integrated into an ever increasingly connected world.The change in stance by social media platforms,on the strategy of their API access,is anotherstep in that directionUsage-based pricing:drawbacks beginning to surface during downturn The flexibility of usage-based pricing makes
31、it an attractive choice for customers as they only pay for what they consume.During periods of economic prosperity,this has been observed to significantly drive net retention upwards as customers thrive and use their SaaS products more intensively But in times of economic turbulence,its clear that u
32、sage-based SaaS costs are some of the first to be trimmed.We are arguably seeing this for the first time since the tech boom,with net retention darlings like Snowflake and Twilio feeling the effects and disadvantages of this pricing model as budgets shrink amid a particularly long winter for technol
33、ogy companies Within 1 year,Twilios net revenue retention dropped from 127%to 106%,highlighting the outsized impact of austerity measures relative to other pricing models and significantly impacting their valuation.Snowflake has experienced similar volatility but to a lesser extent Companies like Am
34、berflo,which just raised$20m in January,and m3ter,which raised$14m in April,aim to curtail the usage-based exodus with a suite of tools to more effectively meter and manage usage-based pricing for SaaS companiesSource:Globenewswire,Search Engine Journal,Fortune Business Insights,Future Market Insigh
35、ts,Mashable and Selling DaaSAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysINVESTMENT BYINVESTMENT BYINVESTMENT BYFund VFund VFund IVSelect transactions5Q2 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspectives from GP Bullh
36、oundData-driven insights and PE:machine learning becoming an important part of the PE playbook Machine learning-capable markets were valued at$8bn in 2021 and are now likely to rise to$117bn by 2027.Within this,generative artificial intelligence(AI)and machine learning(ML)are set to revolutionise ho
37、w private equity firms source and originate deal opportunities As the days of relying on manual human effort start to fade,top private equity funds are increasingly turning to generative AI and machine learning to source and originate opportunities.This technology is being used to increase pipeline
38、visibility,predict future opportunities,and save tremendous time during due diligence stages.Private equity firms can capture the right opportunities faster,and avoid and reduce the frequency of mistakes Analogous to public markets,algorithmic models help by assessing complex investments,amid the in
39、determinate amount of unstructured data influencing the risk and return profile of opportunities.Even service providers in the industry are being increasingly forced to become tech-enabled,leading to a rise of adjacent AI and ML offerings aimed at improving the efficacy offinancial and commercial ad
40、viceRise in tech-enabled microservices:digital solution to global supply chain challenges Businesses of all types are moving towards a microservices-based architecture to improve their agility and scalability.According to a 2022 report by Solo.io,85%of companies are modernising their applications to
41、 a microservices architecture.Similarly,the trend is also impacting the commerce industry,where companies are seeking faster solutions to keep up with changing customer demands as they navigate supply chain challenges Retailers have faced ongoing supply chain challenges,due to labour shortages and w
42、age increases.Nevertheless,platforms with data analytics and forecasting capabilities are increasingly leveraging microservices to tackle these challenges.Blue Yonder is an example of a digital supply chain platform that uses microservices to provide insights on customer orders,inventory and labour
43、supply Moving forward,the overall application of microservices will likely continue to expand.According to Mordor Intelligence,the microservices market is likely to reach$3bn in 2028,representing a CAGR of 22%from 2023.As for the supply chain management industry,the adoption of microservices will be
44、come increasingly mission-critical as pre-pandemic legacy models struggle to competeSource:Udu,Sourcescrub,invent.ai,Private Equity International,Solo.io and Mordor IntelligenceAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysMERGER AND INVESTMENT BYACQUIRED
45、BYSelect transactionsACQUIRED BY6Q2 2023 Software sector updateA LEADING TECHNOLOGY ADVISORY AND INVESTMENT FIRM,PROVIDING TRANSACTION ADVICE AND CAPITALGP Bullhounds recent Software activityAdvisoryInvestment ManagementINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYIN
46、VESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYFund VFund IVFund IVFund IVFund IVFund IVFund VFund VFund VFund VFund VFund VAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysINVESTMENT BYACQUIRED BYINVESTMENT INACQUIRED BYACQUIRED
47、BYACQUIRED BYACQUIRED BYACQUIRED BYGROWTH INVESTMENT INTOACQUIRED BYMERGER AND INVESTMENT BYACQUIRED BY7Q2 2023 Software sector updateNOTABLE SOFTWARE M&A DEALS&PRIVATE FINANCINGSNotable transactions from Q2 2023Sources:CAPIQ,PitchbookAbout usPublic comparablesTransaction trendsPublic company analys
48、esCEO commentaryTakeawaysDateTargetLead Investor(s)Target descriptionAmount($m)Jun-23Provider of open-source business applications for community developers to create SME business applications162Jun-23An advertising software platform intended to automate the ad buying process300May-23Developer of an
49、online financial infrastructure platform intended to accept payments,grow revenue,and accelerate new business6,870May-23Developer of a cloud-based platform designed to perform server-related services for digital transformation452May-23A leading all-in-one automated vacation rental software and Airbn
50、b management system175Apr-23An AI-powered platform built to provide commercial transportation solutions to improve traffic efficiency260Apr-23Developer of an AI research and deployment platform intended to increase productivity and benefit humanity300Apr-23An AI driven cybersecurity platform built t
51、o defend against ransomware100Apr-23Developer of marketing automation and customer relationship management(CRM)software for businesses500DateTargetBuyerTarget descriptionEV($m)EV/LTM RevJun-23A cloud-based platform of enterprise event marketing,management,and hospitality solutions4,6007.0 xMay-23A p
52、rovider of cyber security solutions with a premise around self-healing security solutions8683.9xMay-23A cloud services provider for retail applications and omnichannel business solutions1192.81xMay-23A software solution for AP automation built into Microsofts Dynamics 365 business system2009.1xApr-2
53、3Developer of enterprise software for business process management and data analytics2,8582.7xApr-23A Denmark-based provider of software solutions to the financial services industry4,4426.7xApr-23Provider of testing and measurement equipment to improve product development8,6314.8xApr-23Developer of d
54、igital investigation software1,32011.8xApr-23An interactive entertainment platform built to create and publish immersive content4,9002.8xAverage5.7xMedian4.8xSelected M&A transactionsSelected private financings8Q2 2023 Software sector updateGLOBAL SOFTWARE TRANSACTION TRENDSGlobal dealmaking begins
55、to stabilise,showing signs of recoveryGlobal M&A/buyout value begin to stabiliseAsias contribution to global M&A/buyout activity declinesGlobal private placements show early signs of recoveryRelative fundraising activity in emerging markets starting to improveSource:Pitchbook(as of 30 June 2023);Not
56、e:Data includes all SaaS M&A and private placement deals as defined by Pitchbook regardless of geography;”Other”includes Africa,Oceania,South/Central America,and the Middle EastAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways02004006008001,0001,200$0M$50B$10
57、0B$150B$200B$250B$300BM&A valueBuyout valueM&A volumeBuyout volume01,0002,0003,0004,0005,0006,0007,000$0M$10B$20B$30B$40B$50B$60B$70B$80BCapital investedVolume0%10%20%30%40%50%60%70%80%90%100%US&CanadaEuropeAsiaOther0%10%20%30%40%50%60%70%80%90%100%US&CanadaEuropeAsiaOther9Q2 2023 Software sector up
58、date80%90%100%110%120%130%140%31/12/202231/01/2023 28/02/202331/03/202330/04/202331/05/202330/06/2023S&P 500NASDAQ CompositeGPB Master SaaS IndexGP BULLHOUND SAAS INDEX PERFORMANCETech officially in bull market since December lowsL1ML6ML3ML12MSource:CapitalIQ(as of 30 June 2023)Note:1)L6M percentage
59、s represent growth as of 1 January 2023 About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways80%90%100%110%120%31/03/202330/04/202331/05/202330/06/2023S&P 500NASDAQ CompositeGPB Master SaaS Index40%60%80%100%120%140%30/06/202230/09/202231/12/202231/03/202330/06/2
60、023S&P 500NASDAQ CompositeGPB Master SaaS Index80%90%100%110%31/05/202310/06/202320/06/202330/06/2023S&P 500NASDAQ CompositeGPB Master SaaS Index35.6%132.7%116.4%110Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PERFORMANCEGP Bullhound SaaS index valuations 10-year trendsSources:CapitalIQ,Wal
61、l Street Journal,GP Bullhound Intelligence(as of 30 June 2023)Note:High-Growth:40%,Medium Growth:15-40%,Low-Growth 15%Public comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysGPB SaaS Index-EV/NTM RevenuesMarch 2020:After a brief initial sell-off,SaaS stocks enjoyed signific
62、ant appreciation thanks to the forced digitization of the world caused by the pandemicDecember 2018:Trade war with China leads to sell-off of SaaS stocksNovember 2021-June 2022:The Covid-19 Omicron variant,geopolitical tension(including Russias invasion of Ukraine),ongoing global supply chain issues
63、,and a hawkish monetary policy have triggered a steep sell-off across markets and regions that brought tech valuations below the five-year averageFebruary-March 2021:Though SaaS valuations are still significantly above historical levels,a new US presidential administration,inflation concerns,and ris
64、ing interest rates have contributed to a modest pull-back of the SaaS IndexJune 2022-Present:Narrowing disparity between high-growth and low-growth SaaS valuations,and slight improvement in overall valuations in 2Q23Valuations continue to stabilise,as recession likelihood begins to softenAbout us0 x
65、5x10 x15x20 x25x30 x35x40 x45xJun13Jun14Jun15Jun16Jun17Jun18Jun19Jun20Jun21Jun22Jun23High GrowthMedium GrowthLow Growth9.0 x5.0 x3.1xInsights on the GP BullhoundSaaS index:Data-centric powerhouses such as Snowflake,MongoDB,Datadog,and Confluent are at the forefront of a revaluation wave in the High-
66、Growth category of the GP BullhoundSaaS indexThe valuation surge underscores their potential to catalyseenterprise-scale AI applications11Q2 2023 Software sector updateSOFTWARE IPO LANDSCAPEIPO drought continues into the second half of 2023 despite NASDAQ reboundSources:Pitchbook,CapitalIQ,Nasdaq,CN
67、BC(as of 30 June 2023)Note:Software IPO data graph based off previous GP Bullhound reportsCompanyOverviewProvider of an all-in-one collaboration platform designed to democratise software creationDeveloper of mobile banking and finance platform designed to make basic banking services helpful,easy,and
68、 free to useDeveloper of an enterprise software application for datawarehousing and data lakesDeveloper of an instant messaging/VoIP platform for friends,colleagues,and communitiesDeveloper of gaming software and applications designed for gamers and game developers to publish and play immersive game
69、sDeveloper of an application for on-demand deliveryDeveloper of an online payment platform designed to facilitate payments through installmentsDeveloper of corporate travel management and payments platform designed to keep travelers safe and control costs with actionable real-time dataOperator of a
70、social network platform designed for people to dive into anything through experiences built around their interestsDeveloper of an online payments processing platform designed to help small and large companies accept web and mobile paymentsListings to look for in Q3 2023+Tech stocks rebounded in the
71、first half of 2023,and the growth was mainly driven by the performance of growth stocks as interest rate hikes slowedSoftware IPOs are still on hold,and no venture-backed IPO over$1bn has happened since December 2021Stress on the global banking system,paired with recessionary concerns,will likely le
72、ad to further IPO hesitation for the next few months.However,Klaviyo,a marketing automation platform,filed for IPO confidentially in May.Sources said Klaviyo is planning to raise at least$750m from the listing459590000004Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23About usPublic comparablesTransactio
73、n trendsPublic company analysesCEO commentaryTakeaways12Q2 2023 Software sector updatePUBLIC COMPANY PERFORMANCERule of 40%public SaaSSource:CapitalIQ(as of 30June 2023)Transaction trendsTakeawaysLTM Revenue Growth%LTM Unlevered FCF Margin%About usPublic comparablesPublic company analysesCEO comment
74、aryPublic company analysesBreakdown:The Rule of 40%states that the sum of a companys growth and profitability for a given period should be greater than 40%.This is a key metric used by software investors to benchmark the efficiency of a companys growth and the associated tradeoff between growth and
75、impact to profitability to achieve itLVCTEAMOKTADUOLNETPCTYSPLKSINCHCRWNOWSPTMDBDTQLYSESMTPDTMVCFLTBRZECRMPCORPAYCFROGDVULEMONFRSHSMCRTDOCUZUOESTCPYCRHUBSSUSEINTAHCPTENBBOXVEEVWDAYDSYPLTRCWANFIVNEYEAMPLZMBMBLDBXASANSPSCNEMLIMEENFNAPPFRNGPWSCZENVWKLGHTWEAVPATHCXMSAPCDAYBLOLOTWLOINFAAPPEGHTEXFYWKSGEEV
76、BGNEWRMLNKLINSHOPQTWOEMISTEMNFAADOTDIDOXSOWUPLDRXTWIXSQTIETOYEXTTWOUFPIPLPSN(10.0%)0.0%10.0%20.0%30.0%40.0%50.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%13Q2 2023 Software sector updatePUBLIC COMPANY PERFORMANCERule of 40%performance significantly impacts valuationAbout usPublic comparab
77、lesTransaction trendsPublic company analysesCEO commentaryTakeawaysOutperformersPerformersUnderperformersLTM Rule of 40%EV/LTM RevenueRule of 40%lineBreakdown:Linearregressionanalysisindicates statistically significant correlationbetween Rule of 40%performance andpublic market valuationfor SaaS comp
78、anies.Source:CapitalIQ(as of 30June 2023)ZSBILLMNDYLVCDDOGGTLBAYXTEAMOKTADUOLPCTYSPLKCRWNOWSPTDTQLYSESMTPDTMVCFLTBRZECRMPCORPAYCFROGDVULEMONFRSHSMCRTDOCUZUOESTCPYCRHUBSSUSEINTAHCPTENBBOXVEEVWDAYDSYCWANFIVNEYEAMPLZMBMBLDBXASANNEMLIMEENFNAPPFRNGPWSCWKLGHTWEAVPATHCXMSAPCDAYBLOLOTWLOINFAAPPEGHTEXFYSEMRS
79、GEEVBGNEWRMLNKLINQTWOEMISTEMNFAABASEDOTDAVDXIDOXVTEXWKMESOWUPLDRXTWIXSQBIGCTIETOYEXTTWOUFPIPLPSNR=0.51050 x2x4x6x8x10 x12x14x16x18x0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%14Q2 2023 Software sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORCarlos Serra,Corporate Development Off
80、icerAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCDO AUDIENSECarlos Serra Audiense has built a digital consumer intelligence platform to empower audience strategies and marketing tactics by leveraging social data and connecting it with a companys existing
81、 stack.It serves over 2000 agencies and brands and delivers social data in a unique way,providing a data foundation to Audience Research.Its partners include Meltwater,Kantar,GWI,Access Intelligence,Talkwalker and Semrush.“Culture is always on the move,making it difficult for existing consumer segme
82、ntation to keep up.Its all about fresh takes,quick results,global reach and a need to understand behavioural consumer insights almost in real time.This underpins the increasing demand for social consumer segmentation and cultural insights that come from compliant social data and connected to the res
83、t of their research methods and stack.Our recent acquisitions have helped widen our pool of data sources as well as potential integrations and partnerships.We see Audiense as an emerging consolidator of capabilities in the consumer insight space.We are bringing consumer research into the digital era
84、.”SELECT ACQUISITIONS15Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps GP Bullhound SaaS indexSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbou
85、t usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways16Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps GP Bullhound SaaS indexSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are consider
86、ed not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways17Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps GP Bullhound SaaS indexSource:Capital IQ(as of 30 June 2023);N
87、ote:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways18Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic com
88、ps GP Bullhound SaaS indexSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways19Q2 2023 Software
89、sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps adtechSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company an
90、alysesCEO commentaryTakeaways20Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps BI/analyticsSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout u
91、sPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways21Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps communicationsSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-mater
92、ial(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways22Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps consolidatorsSource:Capital IQ(as of 30 June 2023);Note:Multiples in exces
93、s of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways23Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps ERPSource:Capital I
94、Q(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways24Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLI
95、C COMPARABLESPublic comps ERP(cont.)Source:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways25Q2 2023
96、 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps financial toolsSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction tren
97、dsPublic company analysesCEO commentaryTakeaways26Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps human capital management(HCM)Source:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are exclu
98、ded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways27Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps infrastructureSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less
99、 than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways28Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps marketingSource:Capital IQ(as of 30 Ju
100、ne 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways29Q2 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLES
101、Public comps securitySource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways30Q2 2023 Software secto
102、r updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps storageSource:Capital IQ(as of 30 June 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculationsAbout usPublic comparablesTransaction trendsPublic company analys
103、esCEO commentaryTakeaways31Q2 2023 Software sector updateGP Bullhounds Software teamAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysThis report is based on the expert insights of GP Bullhounds worldwide team alongside detailed analysis of investment trends a
104、cross the global technology landscape.GP Bullhounds Software sector team leverages decades of collective experience,proprietary intelligence,deep industry relationships,and leading data sources to identify and communicate what you need to know to stay ahead of the curve.Jonathan CantwellPARTNERAlexi
105、s ScorerPARTNERMatt StampPARTNEREric CrowleyPARTNERSimon MiremadiDIRECTORPierce Lewis-OakesVICE PRESIDENTpierce.lewis-Joe TabbererDIRECTOROkan InaltayVICE PRESIDENTEren YagmurluANALYSTKyle YuANALYSTNigel TurayASSOCIATEDaniel RobertsASSOCIATEAlex La BrieANALYSTAdam SegallASSOCIATEMaria LazarevaASSOCI
106、ATE,INSIGHTS32Q2 2023 Software sector updateDisclaimerNo information set out or referred to in this communication shall form the basis of any contract.The issue of this insights report(the“report”)shall not be deemed to be any form of binding offer or commitment on the part of GP Bullhound or any of
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