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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.Q4 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 Luxembourg2Q4 2023 Software sector updateTHE VIEWQ4 software perspectives from GP BullhoundSafeguarding da
3、ta is a key focus area of security and development teams.Their goal is to prevent the businesss digital infrastructure and data security from becoming corrupt and breached security testing software is a tool that assists them in their efforts.HCL Technologies is an example of a leading provider of s
4、ecurity testing tools,which businesses are leveraging to secure their data and ensure protection against digital threats.The accelerated sector growth is driven by businesses implementing measures to enhance security and comply with government regulations.The healthcare software sector,traditionally
5、 ruled by massive software players offering comprehensive solutions for EHR,billing,and ERP,is now witnessing a surge in compact tools with LLMs,conversational analytics,and speech-to-text capabilities.Innovators like Nabla Copilot,AdaptX and Abridge are leading the trend with significant funding ro
6、unds,focusing on reducing clinician burnout,enhancing patient care,and improving clinical documentation with AI.This shift towards smaller,AI-powered toolsets is reshaping the market dynamics,with the global AI in the healthcare sector poised for rapid growth.Robotic Process Automation allows busine
7、sses to gain more value from data as RPA is built to shuffle through large data sets that humans or standard insight software platforms cannot parse through without assistance.Artificial Intelligence can provide RPA with real-time analytics and insights RPA can structure those insights into actionab
8、le initiatives to generate real results.UiPath is a prime example of a company leading the RPA space according to Gartner,they control 36%of the RPA market.About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysApplication Performance Management(APM)solutions provi
9、de insights into how applications impact business processes.Multiple teams can leverage the insight to help better inform decision-makers and their strategic planning.Application Performance Management and Artificial Intelligence are increasingly converging to enhance software applications monitorin
10、g,analysis,and optimisation.This enables automated solutions to be engaged,preventing downtime and performance degradation.The APM market is likely to grow significantly with the support of several tailwinds,primarily observability coupled with digital transformation and the increased reliance on so
11、ftware applications.Application Performance Management(APM):full-stack observability to be prioritisedSecurity testing software:safeguarding digital landscapesRobotic Process Automation(RPA):integrating with business operationsHealthcare SaaS:mergence of verticalised and compact healthcare SaaS tool
12、sLarge Graphical Models:the center of enterprise use casesOpen source software serves as a catalyst for innovation in the software industry given its attractiveness to companies seeking to engage with others within the vertical,increase collaboration.Through its ability to prevent users from being d
13、ependent on a specific vendors solutions,open sources independence allows businesses to switch between different implementations or providers without major disruptions.Its cost-effective model is a main driver for increasing its value,while also spurring rapid development,resulting in quicker integr
14、ations and product releases.Open source:increasing commercialisation2023 saw a surge in investment and research into Large Graphical Models(LGMs),broadening their applications to tackle complex enterprise-level tasks.Recent advancements have equipped LGMs with the ability to analyse time series data
15、,enhancing their role in forecasting key business indicators like sales and supply chain operations for better strategic planning.The sectors expansion is highlighted by startups like Ikigai Labs,emerging from the Massachusetts Institute of Technology,focusing on real-time breakdown of time series d
16、ata using LLMs.3Q4 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspectives from GP BullhoundOpen source:increasing commercialisation Open source software has historically been a tremendous driving force for innovation in software/technology,with many for-profit corpor
17、ations embracing open source to tap into community expertise to accelerate technology development despite limited commercial opportunities initially.With its increasing importance,many corporations/institutions,including venture capital firms,are trying to develop frameworks to value and invest in o
18、pen source platforms.While the paths to potential returns for the institutions are less direct,the value is clear for corporations that can effectively outsource the development of experimental or high-risk projects at low or no cost.According to GitHub,over 30%of Fortune 100 companies have implemen
19、ted Open Source Program Offices(OSPOs),while venture capital firms like Redpoint Ventures are evaluating investments based on open source metrics like GitHub Stars,contributors,or Slack/Discord community sizes.Sources:SD Times,Globe Newswire,Github,RedpointAbout usPublic comparablesTransaction trend
20、sPublic company analysesCEO commentaryTakeaways Application Performance Management(APM)solutions to experience a strong tailwind on the back of the need for comprehensive/panoramic observability that will enable technical teams to predict and detect anomalies.This will enable preemptive measures to
21、dramatically reduce or eliminate downtime which will be a key differentiator in the era of generative AI-enabled SaaS platforms where outages at peak usage times can be disastrous.Paradoxically,new AI tools can also supplement observability/APM initiatives.The current size of the market for APM tool
22、s is$9bn and is looking to grow at a CAGR of 11.5%through 2030 to reach$19bn.Application Performance Management(APM):full-stack observability to be prioritisedACQUIRED BYINVESTMENT BYACQUIRED BYSelect transactions4Q4 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspect
23、ives from GP BullhoundSources:SD Times,Security World Market,IBM,Data Horizzon Research,UIPath,CX TodayAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways With open source platforms and third-party components being more widely used throughout development teams,
24、the more critical protecting sensitive data,preventing data breaches,identifying vulnerabilities,and preventing service disruption becomes.According to an IBM report released in July of 2023,the global average cost of a data breach in 2023 was$4.45m,a 15%increase over three years.HCL Technologies an
25、d Perforce are innovators in the space,providing an extensive suite of security testing tools that discern software security,quality,and reliability.HCLs AppScan is an example of a product that assists businesses in identifying and remediating vulnerabilities through application security testing pla
26、tforms.According to Polaris Market Research,the global security testing market was valued at$9.3bn in 2022 and is likely to reach$41.6bn by 2032,growing at a CAGR of 16.2%during the forecast period.As hyper-automation continues to be implemented in business operations,Robotic Process Automation has
27、become increasingly used due to its ability to drive operational efficiencies,capture data,and perform routine tasks.Through structured inputs and programming,its routine tasks include and are not limited to automating business processes like handling transactions,managing data,and responding to ema
28、ils.By leveraging Artificial Intelligence and Machine Learning,RPA also provides cost efficiencies as they replace manual labour with automated bots,reduce errors in operations,and streamline processes.An additional RPA benefit includes its ability to scale automation efforts up or down,depending on
29、 a companys requirements.DataHorizzon Research reported that the market size for robotic process automation reached$3.7bn in 2022,and it is likely to grow to$81.8bn by 2032,exhibiting a CAGR of 36.6%.Robotic Process Automation(RPA):integrating with business operationsSecurity testing software:safegu
30、arding digital landscapesINVESTMENT BYFund VINVESTMENT BYFund VINVESTMENT BYFund IVSelect transactions5Q4 2023 Software sector updateGP BULLHOUNDS SECTOR TAKEAWAYS Current software perspectives from GP BullhoundSources:PR Newswire,PR Web,BusinessWire,Maximize Market Research,OpenReview,TechCrunch,VM
31、BlogAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways The healthcare software sector,traditionally ruled by massive software players offering comprehensive solutions for EHR,billing,and resource management,is now witnessing a surge in compact,efficient toolse
32、ts powered by LLMs,conversational analytics,and speech-to-text(SPT)functions.These smaller,innovative tools are geared towards improving physician efficiency and clinical workflows.Examples of this trend include Nabla Copilot,an ambient AI assistant designed to reduce administrative load and clinici
33、an burnout,which recently secured$24m in Series B funding at a$180m valuation.AdaptX from Seattle utilises AI for medical data analysis to enhance patient care,having raised an additional USD 10 million.Abridge,specializing in generative AI for clinical documentation,announced a Series B funding of$
34、30m,led by Spark Capital.This shift towards smaller,AI-powered toolsets is reshaping the market dynamics,with the global AI in the healthcare sector poised for rapid growth.Expected to reach$173.5bn by 2029 with a CAGR of 40.2%,this trend reflects a growing demand for more agile and efficient health
35、care software solutions.Large Graphical Models:the center of enterprise use cases Increased investment and R&D activity into LGMs throughout 2023 have recently widened use cases to undertake larger tasks suitable for enterprises.Utilising graphs to illustrate the relationships between variables,LGMs
36、 are probabilistic models that strive to encompass the complete joint distribution of all relevant data points.They represent a new approach to data analysis,particularly effective for structured data like spreadsheets or tables.With recent developments,LGMs can now excel in breaking down time serie
37、s data through a unique tabular perspective.This capability enables them to predict vital business metrics such as sales,inventory levels,and supply chain efficiency,thus providing valuable insights for strategic decision-making in enterprises.The growth of this segment is apparent with fresh growth
38、 rounds and growing innovation.Ikigai Labs,an MIT-originated startup that specialises in LGMs which can break down time series data in real-time,aiding in functions such as demand forecasting,compliance,and predictive maintenance,has recently raised$25m from names like Premji,Foundation Capital,and
39、more.Healthcare SaaS:mergence of verticalised and compact healthcare SaaS toolsMERGER AND INVESTMENT BYACQUIRED BYACQUIRED BYSelect transactions6Q4 2023 Software sector updateA LEADING TECHNOLOGY ADVISORY AND INVESTMENT FIRM,PROVIDING TRANSACTION ADVICE AND CAPITALGP Bullhounds recent software activ
40、ityAdvisoryInvestment ManagementINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYFund VFund IVFund IVFund IVFund IVFund IVFund VFund VFund VFund VFund VFund VAbout usPublic comparablesTransacti
41、on trendsPublic company analysesCEO commentaryTakeawaysACQUIRED BYACQUIRED BYINVESTMENT BYACQUIRED BYACQUIREDINVESTMENT BYINVESTMENT BYACQUIRED BYINVESTMENT BYACQUIRED BYACQUIRED BYACQUIRED BY7Q4 2023 Software sector updateNOTABLE SOFTWARE M&A DEALS&PRIVATE FINANCINGSNotable transactions from Q4 202
42、3Sources:CAPIQ,PitchbookNote:Deals highlighted are based on announcement datesAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysDateTargetLead Investor(s)Target descriptionAmount($m)Dec-23Developer of open-source artificial intelligence models415Dec-23Undisclo
43、sed InvestorsDeveloper of an artificial intelligence platform designed to accelerate human scientific discovery135Dec-23An AI data platform company unifies storage,database,and containerized compute engine services into a single,scalable software platform110Dec-23Developer of a cloud-based platform
44、that provides global connectivity and mobility solutions513Dec-23A SaaS-based business that provides accounting,payroll,and HR software products3,298Dec-23Developer of a software platform intended to improve customer communication,manage workflows and keep track of assets216Dec-23A fintech platform
45、that provides invoicing software and payment solutions307Nov-23Operates as an artificial intelligence and robotics company that develops smart home devices featuring advanced AI and deep learning112Nov-23A developer of open-source generative AI and AI model development infrastructure103DateTargetBuy
46、erTarget descriptionEV($m)EV/LTM RevDec-23A global software provider of accountancy,education,HR,and payroll solutions4,000n.a.Dec-23A data science and analytics automation platform4,5264.9Nov-23A provider of virtual prototyping software solutions built to simulate product behavior during testing859
47、5.9xNov-23A cloud software provider in the areas of Corporate Compliance,Investor relations,and ESG4626.1xOct-23Developer of simulation and modeling software intended for energy markets1,00010.0 xOct-23A provider of customer engagement and integrated payment solutions3,5239.7xOct-23Developer of data
48、base platform designed to offer autonomous migration and cloud-neutral database replication100n.a.Oct-23Developer of a work communication tool designed for people to get their messages through instantly shareable videos975n.a.Oct-23A CCaaS platform that provides services to enterprises,business proc
49、ess outsourcers,and collections agencies4273.0 xAverage6.6xMedian6.0 xSelected M&A transactionsSelected private financings8Q4 2023 Software sector updateGLOBAL SOFTWARE TRANSACTION TRENDSGlobal deal volume picks up in Q4 of 2023Source:Pitchbook(as of 31 December 2023);Note:Data includes all SaaS M&A
50、 and private placement deals as defined by Pitchbook regardless of geography;”Other”includes Africa,Oceania,South/Central America,and the Middle EastNote:Deals highlighted are based on closing datesAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysGlobal M&A/b
51、uyout value peaked in Q4 with multiple mega deals1North America takes over the global M&A/buyout activityGlobal private placements remained constant quarter over quarterRelative fundraising activity in emerging markets continues to improve0%10%20%30%40%50%60%70%80%90%100%US&CanadaEuropeAsiaOther0%10
52、%20%30%40%50%60%70%80%90%100%US&CanadaEuropeAsiaOther01,0002,0003,0004,0005,0006,0007,000$0M$10B$20B$30B$40B$50B$60B$70B$80BCapital investedVolume02004006008001,0001,200$0M$50B$100B$150B$200B$250B$300BM&A valueBuyout valueM&A volumeBuyout volume1Includes the acquisitions of Vmware,Activision Blizzar
53、d,Adenza,New Relic,Alteryx,IRIS and many more9Q4 2023 Software sector update80%90%100%110%120%130%140%30/06/202331/07/202331/08/202330/09/202331/10/202330/11/202331/12/2023S&P 500NASDAQ CompositeGPB Master SaaS IndexGP BULLHOUND SAAS INDEX PERFORMANCEPublic tech companies show remarkable growth in l
54、ast 12 monthsL1ML6ML3ML12MSource:CapitalIQ(as of 31 December 2023)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeaways80%90%100%110%120%130%30/09/202331/10/202330/11/202331/12/2023S&P 500NASDAQ CompositeGPB Master SaaS Index40%60%80%100%120%140%160%180%31/12/202
55、231/03/202330/06/202330/09/202331/12/2023S&P 500NASDAQ CompositeGPB Master SaaS Index80%90%100%110%01/12/202311/12/202321/12/202331/12/2023S&P 500NASDAQ CompositeGPB Master SaaS Index10Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PERFORMANCEGP Bullhound SaaS index valuations-10-year trendsS
56、ources:CapitalIQ,Wall Street Journal,GP Bullhound Intelligence(as of 31 December 2023)Note:High-Growth:20%,Medium Growth:5-20%,Low-Growth 5%Public comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysGPB SaaS Index-EV/NTM RevenuesMarch 2020:After a brief initial sell-off,SaaS s
57、tocks enjoyed significant appreciation thanks to the forced digitisation 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 glob
58、al supply chain issues,and a hawkish monetary policy triggered a steep sell-off across markets and regions that brought tech valuations below the five-year averageFebruary-March 2021:Though SaaS valuations were significantly above historical levels,a new US presidential administration,inflation conc
59、erns,and rising interest rates contributed to a modest pull-back of the SaaS IndexJune 2022-December 2022:Narrowing disparity between high-growth and low-growth SaaS valuationsValuations continue to stabilise,as recession likelihood begins to softenAbout us9.1x5.3x7.4xInsights on the GP Bullhound Sa
60、aS index:Data-centric powerhouses such as Snowflake,MongoDB,Datadog,and Confluent are at the forefront of a revaluation wave in the High-Growth category of the GP Bullhound SaaS indexThe valuation surge underscores their potential to catalyse enterprise-scale AI applicationsJanuary 2023-Present:With
61、 market conditions conservatively improving and the inflationary environment stabilising,SaaS valuations have shown an uptick in 2023,recovering from recent market lows in late 20220 x5x10 x15x20 x25x30 xDec13Dec14Dec15Dec16Dec17Dec18Dec19Dec20Dec21Dec22Dec23High GrowthMedium GrowthLow Growth11Q4 20
62、23 Software sector updateSOFTWARE IPO LANDSCAPEA resurgence of the Software IPO marketSources:Pitchbook,CapitalIQ,Nasdaq,CNBC(as of 31 December 2023)Note:Software IPO data graph based on previous GP Bullhound reportsTech stocks posted a strong 2023 coming out of a 2022 slump.Growth in tech stocks is
63、 expected to continue in 2024 with optimism the Federal Reserve will lower interest ratesWith Klaviyos,ARMs,and Instacarts latest IPO in Q3 of 2023 reigniting the cold Software IPO market,SaaS valuations are expected to improve alongside a strong 2024 IPO pipelineAbout usPublic comparablesTransactio
64、n trendsPublic company analysesCEO commentaryTakeawaysCompanyOverviewProvider of an all-in-one collaboration platform designed to democratisesoftware creationDeveloper of an enterprise platform designed to provide candidates with a fair chance to work with background checksDeveloper of mobile bankin
65、g and finance platform designed to make basic banking services helpful,easy,and free to useDeveloper of an instant messaging/VoIP platform for friends,colleagues,and communitiesDeveloper of a cloud content governance platform designed for organisationsto protect,connect and unlock value from all the
66、ir contentDeveloper of a customer success platform designed to drive revenue and increase retentionOperator of a recruiting platform intended to back companies to source,interview,hire and onboard the right talentDeveloper of an online marketing platform intended to optimisemarketing spending and ta
67、rget online campaignsDeveloper of corporate travel management and payments platform designed to keep travelers safe and control costs with actionable real-time dataDeveloper of an online payments processing platform designed to help small and large companies accept web and mobile paymentsDeveloper o
68、f cloud-based call center software designed to help growing businesses improve customer satisfaction while reducing costsListings to look for in Q1 2024+9000000304Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23January 2022June 2023:Stress on the global banking system,paired with recessionary concerns,le
69、d to IPO hesitation for a year and a half,even with tech stocks rebounded in the first half of 202312Q4 2023 Software sector updatePUBLIC COMPANY PERFORMANCERule of 40%public SaaSSource:CapitalIQ(as of 31December 2023)Transaction trendsTakeawaysAbout usPublic comparablesCEO commentaryLTM Revenue Gro
70、wth%LTM Unlevered FCF Margin%ZSSNOWMNDYDUOLOKTANOWDDOGPCTYQLYSTEAMNETSPTTMVFROGBRZEDTMLNKPCORDOCUMDBPATHPYCRCWANPAYCCFLTCRMFRSHSPLKPDESMTHUBSFIVNWDAYINTAVEEVPWSCESTCDVSPSCAPPFTENBZMBOXAPPDBXBMBLPLTRWEAVAMPLAYXASANBLCDAYINFAHCPSHOPVTEXWKDSYSGEWKLCXMRNGNEMZUOENFNQTWOTEMNEVBGSQRBLXOLOBASETWLOSINCHEGHTW
71、IXRXTSAPYEXTWKMESOWTIETOTWOU-10%0%10%20%30%40%50%0%5%10%15%20%25%30%35%40%45%50%Breakdown:The Rule of 40%is a benchmark for SaaS growth/profitability efficiency that posits the sum of a companys growth and profitability for a given period should be greater than 40%.This is a key metric software inve
72、stors use when evaluating a company for potential investment.Public company analyses13Q4 2023 Software sector updatePUBLIC COMPANY PERFORMANCERule of 40%performance significantly impacts valuationAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital
73、IQ(as of 31 December 2023)OutperformersPerformersUnderperformersLTM Rule of 40%EV/LTM RevenueRule of 40%lineBreakdown:Linear regression analysis indicates a statistically significant correlation between the Rule of 40%performance and public market valuation for SaaS companies.MNDYDUOLOKTANOWBILLCRWP
74、CTYQLYSTEAMSPTTMVFROGBRZEDTMLNKPCORDOCUMDBPATHPYCRCWANPAYCCFLTCRMFRSHSPLKPDESMTHUBSFIVNWDAYINTAVEEVPWSCESTCDVSPSCAPPFTENBZMBOXAPPDBXBMBLPLTRWEAVAMPLAYXASANBLCDAYINFAHCPSHOPVTEXWKDSYSGEWKLCXMRNGNEMZUOENFNQTWOTEMNEVBGSQRBLXOLOBASETWLOSEMRSINCHEGHTAVDXWIXRXTSAPYEXTWKMESOWAPPNBIGCTIETOTWOU0 x2x4x6x8x10
75、x12x14x16x18x20 x0%10%20%30%40%50%60%70%14Q4 2023 Software sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORJimit Bagadiya,Co-founder&CEO About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCO-FOUNDER&CEO-SOCIALPILOTJimit Bagadiya SocialPilot is a
76、social media management platform for brands,agencies,and multi-location organisations.It currently empowers over 12,500 brands and agencies across six continents while remaining bootstrapped and profitable.Its reputation in the social media management sphere underscores its commitment to delivering
77、superior,user-centric solutions and empowering clients with effective,results-driven marketing strategies.“SocialPilot distinguishes itself with a distinct purpose:to equip marketing agencies and brands with tools designed to build authentic human relationships.Our platform exemplifies this mission,
78、offering solutions that are both easy to use and feature-rich,specifically addressing contemporary marketers unique challenges and opportunities.This dedication has been fundamental to our achievements.We are further enhancing our success by developing a comprehensive suite of products for both bran
79、ds and agencies.”SELECT CLIENTS15Q4 2023 Software sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORJustin Graves,CEOAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCEO-INFEGYJustin Graves Infegy enables brands,agencies,and researchers to unders
80、tand consumers better and faster by making sense of social and custom data sets.With its best-in-class sentiment and emotion AI,these capabilities help Infegys clients understand their audiences,monitor brand health,and uncover emerging market trends,all while backed by its award-winning Client Succ
81、ess team.“For more than 17 years weve made it our business to solve the hardest problems in the social listening and consumer data analytics space.As a boot-strapped company,weve always relied on our own innovation,hard work,and operational discipline to be successful.This is why we designed and bui
82、lt our own data platform from the ground up.Because of this,our platform,Infegy Starscape,is so operationally efficient and highly performant that we are able to differentiate ourselves by offering unlimited queries at millisecond speeds so our clients can uncover the insights they need.All of which
83、 is done in a profitable and sustainable manner.”BOOT-STRAPPED16Q4 2023 Software sector updateLEADING COMPANIES AND CEOS TRANSFORMING THE SECTORKevin Sheetz,Co-founder&CEOAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysCO-FOUNDER&CEO-POWERLYTICSKevin Sheetz
84、Powerlyticsis a financial platform that offers predictive analytics,research,and risk management services.Powerlytics financial services clients stay on the cutting edge of marketing and risk-based predictive analytics,customer frictionless income verification,and accurate estimates of investable as
85、sets,including interest-bearing assets,to help drive deposit growth,small business revenue,and financial statements.“Powerlytics Market Intelligence Platform is underpinned by the tax returns of over 200 million consumers and over 30 million businesses that comprise the US economy.Whether the goal i
86、s improved marketing and targeting,better customer segmentation or understanding consumer or small business risk,Powerlytics proprietary data assets provide a unique competitive advantage with no customer friction.”SELECT CLIENTS17Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARAB
87、LESPublic comps GP Bullhound SaaS indexSource:Capital IQ(as of 31 December 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 commentaryTakeaways18
88、Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps GP Bullhound SaaS index(cont.)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x
89、 are considered not-material(NM)and are excluded from average calculations19Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps GP Bullhound SaaS index(cont.)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(a
90、s of 31 December 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 calculations20Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps adtechAbout usPublic comparablesTransaction trendsPublic compan
91、y analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 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 calculations21Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps BI/analytic
92、sAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 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 calculations22Q4 2023 Software sector updateGP BULLH
93、OUND SAAS INDEX PUBLIC COMPARABLESPublic comps communicationsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from
94、average calculations23Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps consolidatorsAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023);Note:Multiples in excess of 75.0 x or less than
95、0.0 x are considered not-material(NM)and are excluded from average calculations24Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLES Public comps ERPAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023
96、);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded from average calculations25Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps financial toolsAbout usPublic comparablesTransaction trendsPublic company analysesCE
97、O commentaryTakeawaysSource:Capital IQ(as of 31 December 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 calculations26Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps human capital managemen
98、t(HCM)About usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 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 calculations27Q4 2023 Software sector updateGP
99、BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps infrastructureAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023);Note:Multiples in excess of 75.0 x or less than 0.0 x are considered not-material(NM)and are excluded
100、from average calculations28Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps marketingAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December 2023);Note:Multiples in excess of 75.0 x or less than
101、 0.0 x are considered not-material(NM)and are excluded from average calculations29Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLESPublic comps securityAbout usPublic comparablesTransaction trendsPublic company analysesCEO commentaryTakeawaysSource:Capital IQ(as of 31 December
102、 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 calculations30Q4 2023 Software sector updateGP BULLHOUND SAAS INDEX PUBLIC COMPARABLES Public comps storageAbout usPublic comparablesTransaction trendsPublic company analysesCEO
103、commentaryTakeawaysSource:Capital IQ(as of 31 December 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 calculations31Q4 2023 Software sector updateGP Bullhounds Software teamAbout usPublic comparablesTransaction trendsPublic co
104、mpany analysesCEO commentaryTakeawaysThis report is based on the expert insights of GP Bullhounds worldwide team alongside detailed analysis of investment trends across the global technology landscape.GP Bullhounds Software sector team leverages decades of collective experience,proprietary intellige
105、nce,deep industry relationships,and leading data sources to identify and communicate what you need to know to stay ahead of the curve.Jonathan CantwellPARTNERAlexis ScorerPARTNERMatt StampPARTNEREric CrowleyPARTNERSimon MiremadiEXECUTIVE DIRECTOROkan InaltayDIRECTORPierce Lewis-OakesDIRECTORpierce.l
106、ewis-Eren YagmurluASSOCIATEDaniel RobertsVICE PRESIDENTAlex La BrieANALYSTAdam SegallASSOCIATE32Q4 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 t
107、o be any form of binding offer or commitment on the part of GP Bullhound or any of its affiliates or subsidiaries.This report is provided for use by the intended recipient for information purposes only.It is prepared on the basis that the recipients are sophisticated investors(so-called“professional
108、 clients”in the meaning of Annex II of Directive 2014/65/EU on markets in financial instruments,or their equivalent elsewhere)with a high degree of financial sophistication and knowledge.This report and any of its information is not intended for use by private or retail investors in the UK or any ot
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