> **来源：[研报客](https://pc.yanbaoke.cn)** # Software and SaaS Sector Update Winter 2025 # Table of Contents 1 Public Company Performance, Valuations, and Related Metrics 2 IPO Activity 3 M&A and Capital Raising Market Update 4 Appendix # Software Market Trends and Outlook After two years of depressed software M&A activity and a dormant software IPO market, we expect a positive deal environment over the next two years, with an uptick in deal activity across private and public markets. However, we would note that the exact timing of the uptick is unclear given market volatility currently being experienced due to trade tensions stemming from changes in tariff policy being implemented by the new U.S. administration While many predicted a resurgence in M&A activity going into 2024, we did not see an uptick over the past year. In fact, global software M&A was down year-over-year driven by a significant decline in deal activity in EMEA and rest of world. M&A deal activity is projected to pick up meaningfully in 2025 given the expectation of a more favorable regulatory environment and lower corporate taxes - Software IPO activity has been largely dormant since 2022. However, we expect to see the Software IPO window reopen more meaningfully, which in turn should also have a positive impact on capital raising and M&A activity - GenAI presents practical opportunities for a new wave of innovation across sub-sectors of software # Public Company Performance, Valuations, and Related Metrics Valuations of public software companies are no longer based on "growth at all costs", as was the case in 2021, but are rather driven by a mix of growth and profitability - While valuations across the board are down from their highs in 2021, certain sub-sectors still trade at a premium and above their 5-year median multiples > Within Application Software, Supply Chain Management and B2B Procurement trades at 10.5x NTM revenue, above its 5-year median of 9.6x > Within Infrastructure Software, the sub-sector of Analytics, Business Intelligence, and Data Management trades at 11.4x NTM revenue, well above its 5-year median multiple of 9.1x # M&A and Capital Raising Market Update - Global software M&A activity was down in 2024 compared to 2023 as measured by deal count (1,962 deals in 2024 vs. 2,419 deals in 2023) driven mainly by a decline in deal activity in EMEA and rest of world, with North America only declining slightly. Total deal volume for global software M&A ticked up slightly ( $172B in 2024 vs.$ 166B in 2023) but was down year over year if we exclude the $32B landmark acquisition of Ansys by Synopsys In 2024, deal activity was stronger in the first half of the year and declined in the second half with Q4 deal volume dropping considerably relative to prior quarters - Looking ahead, in 2025, we expect Software and overall M&A activity to increase meaningfully driven by a more favorable regulatory environment, increased market certainty, and expected rate cuts # IPO Activity U.S. software IPO activity has been largely dormant since 2022 but activity is expected to pick up in 2025 - Compared to 2022 and 2023, which saw only 5 software companies go public, IPO pricings actually ticked up in 2024 and are expected to significantly increase in 2025. Currently, the IPO market is primarily only open for large, high-quality issuers with durable revenue growth and that have at a minimum reached profitability. The software companies that went public in 2024 have performed well with a median offer-to-current of $44.9\%$ We believe 2025 is setup to be a robust year for software IPO activity due to the expected lowering of interest rates and a large pipeline of private software companies that are looking to debut in the public markets I. Public Company Performance, Valuations, and Related Metrics # While Software Valuations are Down Across the Board Since 2021, Sub-sectors Trade Quite Differently and Certain Sub-sectors Like Supply Chain Management and Digital Manufacturing Still Trade Above Long-Term Medians Median Application Software EV / Revenue Multiples Supply Chain, and Digital Manufacturing, Engineering & PLM still trade at a premium to other sub-sectors Median Infrastructure & Diversified Software EV / Revenue Multiples Security and Diversified sub-sectors still trade at a premium to other sub-sectors Source: S&P Capital IQ, FactSet as of 12/31/24. # Within Application Software, Supply Chain Management Trades Well Above its 5-year Median NTM Revenue Multiple, While Other Application Software Segments Trade Below 5-Year Median EV / NTM Revenue Multiples – Application Software Source: FactSet as of 12/31/24. # Within Infrastructure Software, Analytics, Business Intelligence, and Data Management Trades Above 5-Year Median NTM Revenue Multiple, While Development Tools and App Infrastructure Trades Below 5-Year Median EV / NTM Revenue Multiples – Infrastructure & Diversified Software Source: FactSet as of 12/31/24. <table><tr><td>Segment</td><td>5-Year High Multiple</td><td>Date of 5-Year High</td><td>5-Year Median</td><td>Current Multiple</td></tr><tr><td>Analytics, Business Intelligence, and Data Management</td><td>29.6x</td><td>12/8/20</td><td>9.1x</td><td>11.4x</td></tr><tr><td>Cloud Communications</td><td>23.0x</td><td>10/19/20</td><td>2.4x</td><td>2.3x</td></tr><tr><td>Development Tools and App Infrastructure</td><td>27.6x</td><td>2/9/21</td><td>7.1x</td><td>5.8x</td></tr><tr><td>Diversified</td><td>12.0x</td><td>11/4/21</td><td>8.9x</td><td>9.4x</td></tr><tr><td>Infrastructure and Operations Management</td><td>13.4x</td><td>10/29/21</td><td>6.0x</td><td>6.1x</td></tr><tr><td>Networking and Content Delivery</td><td>15.8x</td><td>11/4/21</td><td>5.9x</td><td>6.6x</td></tr><tr><td>Security</td><td>17.7x</td><td>9/3/21</td><td>7.6x</td><td>7.4x</td></tr></table> # For Reference: Cantor Tracked Software Public Company Universe # Application Software & SaaS # Infrastructure Software & SaaS # Diversified Software & SaaS Adobe Microsoft ORACLE salesforce SAP servicenow workday # Winners and Losers: LTM Performance of Stock Prices & NTM Revenue Multiple LTM Performance of Stock Prices Infrastructure Software & SaaS Application Software & SaaS Diversified Each sub-sector has shown a broad range of performance, with standout winners like Digital Manufacturing, Engineering & PLM emerging prominently EV/NTM Revenue Multiple Infrastructure Software & SaaS Source: S&P CapIQ, FactSet as of 12/31/24. Note: Smartsheet was acquired by Blackstone and Vista in September 2024 and is no longer publicly traded as of January 22, 2025. Note: BI = Business Intelligence; CRM = Customer Relationship Management; ERP = Enterprise Resource Planning; SCM = Supply Chain Management; HCM = Human Capital Management; PLM = Project Lifecycle Management; HCIT = Healthcare IT # Valuations Are No Longer Based on “Growth at All Costs” but Are Driven by a Mix of Growth and Profitability Rule of 40: Correlation to Valuation Rule of 40 vs. EV/Revenue (1) Forward EV / Revenue by 2024E Growth Cohorts (2) <table><tr><td>Growth Rates</td><td><=10%</td><td>10-20%</td><td>20-30%</td><td>>30%</td></tr><tr><td># of Constituents</td><td>85</td><td>67</td><td>29</td><td>10</td></tr><tr><td>Current</td><td>3.5x</td><td>7.1x</td><td>8.1x</td><td>7.6x</td></tr><tr><td>1-year Prior</td><td>3.2x</td><td>6.1x</td><td>7.0x</td><td>6.1x</td></tr><tr><td>2024E Gross Margin</td><td>72.5%</td><td>79.2%</td><td>77.9%</td><td>76.7%</td></tr><tr><td>2024E EBITDA Margin</td><td>26.0%</td><td>22.5%</td><td>16.9%</td><td>10.4%</td></tr></table> Source: S&P CapIQ, FactSet as of 12/31/24. Note: All figures represent calendar year. Values are based upon fully diluted shares outstanding. 1) Includes 76 companies in our software universe. Excludes meaningful outliers. 2) Current forward EV/ revenue shows EV/ 2025E revenue as of 12/31/24. 1-Year prior forward EV/ revenue shows EV/ 2024E revenue as of 12/31/24. # Investors Are Rewarding Companies that Are Growing and Profitable Vs. Those Growing at All Costs Rule of 40: 76 companies (out of 191 companies in our entire software universe) are currently operating at / above the Rule of 40 <table><tr><td>Company</td><td>Rule of 40</td><td>EV (\$M)</td><td>2024E Revenue Growth</td><td>2024E EBITDA Margin</td><td>EV / 2024E Revenue</td><td>EV / 2024E EBITDA</td></tr><tr><td>III Wisetech i/ global</td><td>77.7%</td><td>\$24,976</td><td>27.8%</td><td>49.9%</td><td>N.M.</td><td>N.M.</td></tr><tr><td>MSCI</td><td>72.9%</td><td>51,011</td><td>13.1%</td><td>59.8%</td><td>17.8x</td><td>29.8x</td></tr><tr><td>FINEOS</td><td>71.0%</td><td>354</td><td>59.3%</td><td>11.7%</td><td>1.6x</td><td>13.4x</td></tr><tr><td>Microsoft</td><td>69.5%</td><td>3,137,211</td><td>14.9%</td><td>54.6%</td><td>12.0x</td><td>21.9x</td></tr><tr><td>FICO</td><td>68.0%</td><td>51,805</td><td>14.5%</td><td>53.4%</td><td>N.M.</td><td>N.M.</td></tr><tr><td>ARISTA</td><td>65.6%</td><td>131,813</td><td>18.9%</td><td>46.8%</td><td>18.9x</td><td>40.5x</td></tr><tr><td>Q Palantir</td><td>64.9%</td><td>160,451</td><td>26.2%</td><td>38.6%</td><td>N.M.</td><td>N.M.</td></tr><tr><td>DESCARTES</td><td>62.8%</td><td>9,736</td><td>19.3%</td><td>43.5%</td><td>10.7x</td><td>24.6x</td></tr><tr><td>Gen</td><td>62.5%</td><td>25,205</td><td>5.8%</td><td>56.6%</td><td>6.5x</td><td>11.4x</td></tr><tr><td>Verisk</td><td>62.1%</td><td>41,459</td><td>7.4%</td><td>54.7%</td><td>14.4x</td><td>26.3x</td></tr><tr><td>ORACLE</td><td>60.9%</td><td>564,689</td><td>8.1%</td><td>52.8%</td><td>10.1x</td><td>19.2x</td></tr><tr><td>affirm</td><td>60.5%</td><td>26,161</td><td>38.9%</td><td>21.6%</td><td>9.6x</td><td>44.6x</td></tr><tr><td>Ansys</td><td>60.2%</td><td>28,958</td><td>10.9%</td><td>49.3%</td><td>11.5x</td><td>23.3x</td></tr><tr><td>Adobe</td><td>60.0%</td><td>193,490</td><td>10.7%</td><td>49.3%</td><td>8.9x</td><td>18.1x</td></tr><tr><td>HealthEquity</td><td>59.0%</td><td>9,434</td><td>19.1%</td><td>39.8%</td><td>8.0x</td><td>20.1x</td></tr><tr><td>cadence*</td><td>58.3%</td><td>82,289</td><td>13.3%</td><td>45.0%</td><td>17.8x</td><td>39.5x</td></tr><tr><td>servicenow</td><td>56.1%</td><td>214,579</td><td>22.5%</td><td>33.6%</td><td>19.5x</td><td>N.M.</td></tr><tr><td>Veeva</td><td>55.4%</td><td>29,622</td><td>14.9%</td><td>40.5%</td><td>11.0x</td><td>27.1x</td></tr><tr><td>appfolio</td><td>55.1%</td><td>5,363</td><td>27.4%</td><td>27.7%</td><td>6.8x</td><td>24.5x</td></tr><tr><td>OUTSTANDING</td><td>54.8%</td><td>68,037</td><td>28.2%</td><td>26.7%</td><td>4.7x</td><td>17.6x</td></tr><tr><td>ZETA</td><td>54.4%</td><td>3,601</td><td>35.3%</td><td>19.1%</td><td>3.7x</td><td>19.1x</td></tr><tr><td>CROWDSTRIKE</td><td>54.2%</td><td>83,611</td><td>29.1%</td><td>25.1%</td><td>21.7x</td><td>N.M.</td></tr><tr><td>fiserv.</td><td>54.1%</td><td>140,585</td><td>6.3%</td><td>47.8%</td><td>7.3x</td><td>15.3x</td></tr><tr><td>Intuit</td><td>54.1%</td><td>186,120</td><td>13.1%</td><td>41.0%</td><td>10.9x</td><td>26.5x</td></tr><tr><td>Qualys.</td><td>54.0%</td><td>4,744</td><td>9.0%</td><td>45.0%</td><td>7.9x</td><td>17.5x</td></tr><tr><td>Roper</td><td>53.9%</td><td>63,850</td><td>13.3%</td><td>40.6%</td><td>9.1x</td><td>22.5x</td></tr><tr><td>CLEAR WATER QUALITY</td><td>53.1%</td><td>5,216</td><td>21.1%</td><td>32.0%</td><td>11.7x</td><td>36.6x</td></tr><tr><td>solarwinds</td><td>52.7%</td><td>3,437</td><td>4.0%</td><td>48.6%</td><td>4.4x</td><td>9.0x</td></tr><tr><td>DigitalOcean</td><td>52.5%</td><td>4,188</td><td>12.0%</td><td>40.4%</td><td>5.4x</td><td>13.3x</td></tr><tr><td>NICE*</td><td>52.3%</td><td>9,663</td><td>16.6%</td><td>35.6%</td><td>1.0x</td><td>2.7x</td></tr><tr><td>zscaler*</td><td>52.2%</td><td>29,157</td><td>28.2%</td><td>24.0%</td><td>12.3x</td><td>N.M.</td></tr><tr><td>vss</td><td>52.2%</td><td>15,381</td><td>21.0%</td><td>31.2%</td><td>15.0x</td><td>48.1x</td></tr><tr><td>DATADOG</td><td>51.8%</td><td>42,301</td><td>25.0%</td><td>26.8%</td><td>15.9x</td><td>N.M.</td></tr><tr><td>ATOSS*</td><td>51.6%</td><td>1,789</td><td>13.8%</td><td>37.7%</td><td>10.0x</td><td>26.6x</td></tr><tr><td>Progress*</td><td>51.1%</td><td>3,358</td><td>8.8%</td><td>42.3%</td><td>4.4x</td><td>10.4x</td></tr><tr><td>PAYCHEX</td><td>50.8%</td><td>50,470</td><td>5.2%</td><td>45.6%</td><td>9.3x</td><td>20.4x</td></tr><tr><td>ptc</td><td>50.8%</td><td>23,955</td><td>10.1%</td><td>40.6%</td><td>10.1x</td><td>24.9x</td></tr><tr><td>paycomr</td><td>50.5%</td><td>11,129</td><td>10.4%</td><td>40.0%</td><td>5.9x</td><td>14.9x</td></tr></table> <table><tr><td>Company</td><td>Rule of 40</td><td>EV ($M)</td><td>2024E Revenue Growth</td><td>2024E EBITDA Margin</td><td>EV / 2024E Revenue</td><td>EV / 2024E EBITDA</td></tr><tr><td>CHECK POINT</td><td>50.3%</td><td>$19,064</td><td>6.0%</td><td>44.3%</td><td>7.4x</td><td>16.8x</td></tr><tr><td>paylocity</td><td>50.0%</td><td>10,943</td><td>14.6%</td><td>35.4%</td><td>7.4x</td><td>21.0x</td></tr><tr><td></td><td>49.7%</td><td>331,031</td><td>9.1%</td><td>40.6%</td><td>8.8x</td><td>21.6x</td></tr><tr><td>AUTODESK</td><td>49.2%</td><td>65,412</td><td>11.3%</td><td>37.9%</td><td>10.8x</td><td>28.4x</td></tr><tr><td>Paycor</td><td>48.9%</td><td>3,283</td><td>15.0%</td><td>33.9%</td><td>4.7x</td><td>13.9x</td></tr><tr><td>GLOUDFLARE</td><td>48.8%</td><td>32,382</td><td>28.1%</td><td>20.7%</td><td>19.5x</td><td>N.M.</td></tr><tr><td>TeamViewer</td><td>48.5%</td><td>2,131</td><td>6.1%</td><td>42.5%</td><td>3.1x</td><td>7.3x</td></tr><tr><td>SYNOPSIS</td><td>48.4%</td><td>72,964</td><td>6.0%</td><td>42.5%</td><td>11.7x</td><td>27.5x</td></tr><tr><td>aspentech</td><td>48.2%</td><td>15,722</td><td>7.1%</td><td>41.1%</td><td>13.5x</td><td>32.9x</td></tr><tr><td>dynatrace</td><td>47.8%</td><td>15,756</td><td>18.7%</td><td>29.1%</td><td>9.8x</td><td>33.5x</td></tr><tr><td>SPC COMMENCE</td><td>47.6%</td><td>6,706</td><td>18.5%</td><td>29.2%</td><td>10.5x</td><td>36.2x</td></tr><tr><td>Cellebrite</td><td>47.4%</td><td>4,213</td><td>22.8%</td><td>24.6%</td><td>10.5x</td><td>42.9x</td></tr><tr><td>CYBERARK</td><td>46.9%</td><td>15,482</td><td>31.3%</td><td>15.5%</td><td>15.7x</td><td>N.M.</td></tr><tr><td>Manhattan Associates</td><td>46.7%</td><td>16,290</td><td>12.0%</td><td>34.7%</td><td>15.7x</td><td>45.2x</td></tr><tr><td>FORTINET</td><td>46.3%</td><td>69,708</td><td>11.1%</td><td>35.2%</td><td>11.8x</td><td>33.6x</td></tr><tr><td>Akamai</td><td>46.3%</td><td>16,214</td><td>4.5%</td><td>41.8%</td><td>4.1x</td><td>9.7x</td></tr><tr><td>monday.com</td><td>46.3%</td><td>10,351</td><td>32.3%</td><td>13.9%</td><td>10.7x</td><td>N.M.</td></tr><tr><td>paloalto®</td><td>46.0%</td><td>131,945</td><td>15.6%</td><td>30.4%</td><td>15.5x</td><td>N.M.</td></tr><tr><td>shopify</td><td>46.0%</td><td>181,573</td><td>29.1%</td><td>16.9%</td><td>14.7x</td><td>N.M.</td></tr><tr><td>klaviyo®</td><td>45.6%</td><td>2,453</td><td>32.4%</td><td>13.2%</td><td>2.7x</td><td>20.1x</td></tr><tr><td>temenos</td><td>45.6%</td><td>6,115</td><td>7.0%</td><td>38.6%</td><td>6.5x</td><td>16.8x</td></tr><tr><td>Bentley®</td><td>45.2%</td><td>14,924</td><td>10.3%</td><td>34.9%</td><td>11.0x</td><td>31.6x</td></tr><tr><td>ssac</td><td>44.9%</td><td>25,352</td><td>6.1%</td><td>38.9%</td><td>4.3x</td><td>11.2x</td></tr><tr><td>workday</td><td>44.9%</td><td>67,884</td><td>16.0%</td><td>28.8%</td><td>8.2x</td><td>28.3x</td></tr><tr><td>meridianlink</td><td>44.7%</td><td>1,947</td><td>3.9%</td><td>40.8%</td><td>6.2x</td><td>15.1x</td></tr><tr><td>opentext®</td><td>44.7%</td><td>16,616</td><td>10.8%</td><td>33.9%</td><td>2.1x</td><td>6.3x</td></tr><tr><td>ATLASSIAN</td><td>44.5%</td><td>65,274</td><td>20.2%</td><td>24.3%</td><td>13.8x</td><td>N.M.</td></tr><tr><td>dayforce</td><td>44.2%</td><td>12,172</td><td>15.6%</td><td>28.6%</td><td>7.0x</td><td>24.3x</td></tr><tr><td>ZOOM</td><td>44.2%</td><td>19,759</td><td>3.0%</td><td>41.2%</td><td>4.2x</td><td>10.3x</td></tr><tr><td>FIS</td><td>44.1%</td><td>53,082</td><td>3.4%</td><td>40.6%</td><td>5.2x</td><td>12.9x</td></tr><tr><td>NEMETSCHICK GROUP</td><td>44.0%</td><td>11,591</td><td>13.9%</td><td>30.1%</td><td>11.5x</td><td>38.3x</td></tr><tr><td>Dropbox</td><td>43.4%</td><td>7,433</td><td>1.7%</td><td>41.7%</td><td>2.9x</td><td>7.0x</td></tr><tr><td>docebo®</td><td>42.8%</td><td>1,273</td><td>27.3%</td><td>15.4%</td><td>4.1x</td><td>26.5x</td></tr><tr><td>Payoneer</td><td>42.6%</td><td>3,059</td><td>15.3%</td><td>27.3%</td><td>3.2x</td><td>11.7x</td></tr><tr><td>KINAXIS®</td><td>41.4%</td><td>3,098</td><td>20.3%</td><td>21.0%</td><td>4.4x</td><td>21.1x</td></tr><tr><td>samsara</td><td>40.9%</td><td>24,954</td><td>32.8%</td><td>8.1%</td><td>20.6x</td><td>N.M.</td></tr><tr><td>HubSpot®</td><td>40.6%</td><td>34,489</td><td>19.7%</td><td>20.9%</td><td>13.3x</td><td>N.M.</td></tr><tr><td>DASSURT SUSTENES®</td><td>40.1%</td><td>45,048</td><td>4.2%</td><td>35.9%</td><td>7.0x</td><td>19.5x</td></tr></table> Source: S&P CapIQ, Factset as of 12/31/24. # Application Software Demonstrates Strong Gross Retention $(90\% +)$ , While Net Retention Ranges Between $95\%$ and $111\%$ , Indicating Robust Customer Retention Across the Board Application Software SaaS KPIs <table><tr><td></td><td>CRM, Contact Center, and Marketing Automation</td><td>ERP and Financial Applications</td><td>SCM and B2B Procurement</td><td>Content, Collaboration & Project Management</td><td>HCM</td><td>Digital Manufacturing, Engineering & PLM</td><td>HCIT</td><td>Fintech</td><td>Vertical Applications</td><td>eCommerce/ Payments</td></tr><tr><td>Gross Retention</td><td>90.0%</td><td>95.0%</td><td>97.5%</td><td>N.A.</td><td>94.5%</td><td>99.0%</td><td>N.A.</td><td>98.0%</td><td>94.5%</td><td>98.0%</td></tr><tr><td>Net Retention</td><td>107.0%</td><td>103.0%</td><td>111.0%</td><td>101.0%</td><td>98.5%</td><td>107.0%</td><td>95.5%</td><td>109.5%</td><td>110.0%</td><td>103.0%</td></tr><tr><td>Revenue Growth</td><td>13.9%</td><td>12.8%</td><td>18.5%</td><td>9.1%</td><td>13.8%</td><td>9.9%</td><td>9.3%</td><td>7.4%</td><td>8.3%</td><td>11.7%</td></tr><tr><td>Revenue by FTE ($M)</td><td>$0.28</td><td>$0.37</td><td>$0.25</td><td>$0.35</td><td>$0.26</td><td>$0.31</td><td>$0.33</td><td>$0.31</td><td>$0.32</td><td>$1.16</td></tr><tr><td>Gross Margin %</td><td>77.0%</td><td>73.3%</td><td>66.6%</td><td>82.7%</td><td>72.0%</td><td>83.6%</td><td>71.5%</td><td>62.7%</td><td>65.3%</td><td>55.9%</td></tr><tr><td>S&M Margin %</td><td>34.7%</td><td>26.6%</td><td>19.7%</td><td>29.8%</td><td>23.1%</td><td>21.6%</td><td>16.0%</td><td>12.8%</td><td>16.5%</td><td>21.9%</td></tr><tr><td>G&A Margin %</td><td>15.6%</td><td>13.6%</td><td>11.1%</td><td>9.0%</td><td>12.6%</td><td>7.7%</td><td>12.1%</td><td>10.8%</td><td>13.5%</td><td>12.4%</td></tr><tr><td>R&D Margin %</td><td>16.9%</td><td>16.2%</td><td>15.9%</td><td>17.2%</td><td>11.4%</td><td>19.7%</td><td>17.6%</td><td>15.0%</td><td>20.1%</td><td>15.6%</td></tr><tr><td>EBITDA Margin %</td><td>14.4%</td><td>23.3%</td><td>29.2%</td><td>32.4%</td><td>33.6%</td><td>38.1%</td><td>21.8%</td><td>31.6%</td><td>24.6%</td><td>17.9%</td></tr></table> Source: S&P CaplQ, FactSet as of 12/31/24. All information is publicly disclosed. Note: Retention KPIs are based on the latest fiscal quarter. Operating metrics based on 2024E. Refer to pages 32-34 for details on the application software companies included in each category. # Infrastructure & Diversified Exhibit Strong Gross and Net Retention, with Analytics, Business Intelligence, and Data Management Leading in Net Retention Infrastructure & Diversified Software SaaS KPIs <table><tr><td></td><td>Infrastructure and Operations Management</td><td>Development Tools and App Infrastructure</td><td>Networking and Content Delivery</td><td>Security</td><td>Analytics, Business Intelligence, and Data Management</td><td>Cloud Communications</td><td>Diversified Software Vendors</td></tr><tr><td>Gross Retention</td><td>95.0%</td><td>N.A.</td><td>N.A.</td><td>90.0%</td><td>85.0%</td><td>92.0%</td><td>98.0%</td></tr><tr><td>Net Retention</td><td>109.5%</td><td>115.0%</td><td>107.5%</td><td>109.0%</td><td>116.0%</td><td>99.0%</td><td>101.0%</td></tr><tr><td>Revenue Growth</td><td>14.6%</td><td>12.7%</td><td>4.5%</td><td>11.7%</td><td>15.2%</td><td>6.5%</td><td>10.8%</td></tr><tr><td>Revenue by FTE ($M)</td><td>$0.30</td><td>$0.32</td><td>$0.40</td><td>$0.34</td><td>$0.37</td><td>$0.49</td><td>$0.48</td></tr><tr><td>Gross Margin %</td><td>83.4%</td><td>83.7%</td><td>79.0%</td><td>80.8%</td><td>76.5%</td><td>72.1%</td><td>79.2%</td></tr><tr><td>S&M Margin %</td><td>34.3%</td><td>34.9%</td><td>30.1%</td><td>32.3%</td><td>36.8%</td><td>34.7%</td><td>25.0%</td></tr><tr><td>G&A Margin %</td><td>9.9%</td><td>11.4%</td><td>9.6%</td><td>6.5%</td><td>9.2%</td><td>6.9%</td><td>6.0%</td></tr><tr><td>R&D Margin %</td><td>18.1%</td><td>18.2%</td><td>16.9%</td><td>16.0%</td><td>18.5%</td><td>15.2%</td><td>13.9%</td></tr><tr><td>EBITDA Margin %</td><td>21.4%</td><td>15.9%</td><td>24.2%</td><td>25.1%</td><td>14.4%</td><td>13.5%</td><td>40.6%</td></tr></table> Source: S&P CapIQ, FactSet as of 12/31/24. All information is publicly disclosed. Note: Retention KPIs are based on the latest fiscal quarter. Operating metrics based on 2024E. Refer to pages 30-31 for details on the infrastructure software companies included in each category. Refer to page 35 for details on the diversified software companies included. # II. IPO Activity # IPOs Have Experienced a Significant Downturn Compared to 2021, Though Trends Indicate a Potential Recovery in 2025 And Beyond Software & SaaS IPO Market Summary Software & SaaS IPOs by Volume and Amount Raised (1) 2025 Software & SaaS IPO Pipeline <table><tr><td>boomi</td><td>celonis</td><td>Collabra</td><td>databricks</td></tr><tr><td>Fivetran</td><td>highradius</td><td>Lattice</td><td>LINKSQUARES</td></tr><tr><td>netskope</td><td>OneSignal</td><td>outsystems</td><td>Own{backup}</td></tr><tr><td>pendo</td><td>Recorded Future</td><td>SALSIFY</td><td>Seismic</td></tr><tr><td>snyk</td><td>talkdesk</td><td>UKG</td><td>unqork</td></tr><tr><td></td><td>wasabi</td><td>workato</td><td></td></tr></table> Select Recent Enterprise Software & SaaS IPOs (2) <table><tr><td rowspan="3">Company</td><td colspan="2">IPO Details</td><td colspan="2">Operating Data at IPO</td><td colspan="3">Market Data at 12/31/2024</td></tr><tr><td rowspan="2">IPO Date</td><td rowspan="2">Offering Amount</td><td colspan="2">LTM</td><td colspan="3">Price Performance</td></tr><tr><td>Revenue</td><td>EBITDA Margin</td><td>Market Cap.</td><td>1-Week</td><td>Offer to Current %</td></tr><tr><td>ServiceTitan</td><td>12/11/2024</td><td>$719.00</td><td>$724.36</td><td>N.A.</td><td>$9,760.55</td><td>49.6%</td><td>44.9%</td></tr><tr><td>OneStream Inc</td><td>7/23/2024</td><td>564.00</td><td>437.39</td><td>N.A.</td><td>5,456.82</td><td>40.3%</td><td>42.6%</td></tr><tr><td>Waystar Holding Corp</td><td>6/6/2024</td><td>1,076.00</td><td>824.72</td><td>42.4%</td><td>6,315.56</td><td>3.0%</td><td>70.7%</td></tr><tr><td>Rubrik Inc</td><td>4/24/2024</td><td>863.00</td><td>627.89</td><td>N.A.</td><td>12,491.47</td><td>2.6%</td><td>104.3%</td></tr><tr><td>Ibotta Inc</td><td>4/17/2024</td><td>664.00</td><td>344.67</td><td>24.0%</td><td>2,176.10</td><td>19.5%</td><td>(26.0%)</td></tr><tr><td>Klaviyo Inc</td><td>9/19/2023</td><td>659.00</td><td>585.08</td><td>8.3%</td><td>12,581.68</td><td>13.7%</td><td>37.5%</td></tr><tr><td>Samsara Inc</td><td>12/15/2021</td><td>887.00</td><td>378.53</td><td>N.A.</td><td>24,734.55</td><td>10.3%</td><td>90.0%</td></tr><tr><td>UserTesting Inc</td><td>11/16/2021</td><td>140.00</td><td>134.30</td><td>N.A.</td><td>N.A.</td><td>(21.5%)</td><td>N.A.</td></tr><tr><td>Backblaze Inc</td><td>11/10/2021</td><td>115.00</td><td>63.37</td><td>2.1%</td><td>304.91</td><td>94.8%</td><td>(62.4%)</td></tr><tr><td>Expensify Inc</td><td>11/9/2021</td><td>302.00</td><td>128.21</td><td>N.A.</td><td>307.27</td><td>63.4%</td><td>(87.6%)</td></tr><tr><td>Informatica Inc</td><td>10/26/2021</td><td>967.00</td><td>1,413.87</td><td>27.6%</td><td>7,918.25</td><td>7.5%</td><td>(10.6%)</td></tr><tr><td>AvidXchange Holdings Inc</td><td>10/12/2021</td><td>674.00</td><td>232.01</td><td>N.A.</td><td>2,137.15</td><td>(5.6%)</td><td>(58.6%)</td></tr><tr><td>Clearwater Analytics Holdings Inc</td><td>9/23/2021</td><td>621.00</td><td>225.88</td><td>N.A.</td><td>6,490.03</td><td>42.3%</td><td>(21.7%)</td></tr><tr><td>EngageSmart LLC</td><td>9/22/2021</td><td>435.00</td><td>183.19</td><td>17.7%</td><td>N.A.</td><td>31.9%</td><td>N.A.</td></tr><tr><td>PowerSchool Holdings Inc</td><td>7/28/2021</td><td>817.00</td><td>495.23</td><td>N.A.</td><td>N.A.</td><td>14.7%</td><td>N.A.</td></tr><tr><td>Riskified Ltd</td><td>7/28/2021</td><td>423.00</td><td>205.52</td><td>4.7%</td><td>802.61</td><td>33.9%</td><td>(77.5%)</td></tr><tr><td>Kaltura Inc</td><td>7/20/2021</td><td>173.00</td><td>145.10</td><td>N.A.</td><td>329.33</td><td>12.7%</td><td>(78.0%)</td></tr><tr><td>EverCommerce Inc</td><td>6/30/2021</td><td>372.00</td><td>407.11</td><td>21.0%</td><td>2,033.23</td><td>1.4%</td><td>(35.2%)</td></tr><tr><td>IntApp Inc</td><td>6/29/2021</td><td>314.00</td><td>200.92</td><td>N.A.</td><td>5,220.03</td><td>8.0%</td><td>146.5%</td></tr><tr><td>Zeta Global Holdings Corp</td><td>6/9/2021</td><td>215.00</td><td>N.A.</td><td>N.A.</td><td>4,304.24</td><td>(16.2%)</td><td>79.9%</td></tr><tr><td>Monday.com Ltd</td><td>6/9/2021</td><td>631.00</td><td>188.17</td><td>N.A.</td><td>12,162.12</td><td>38.1%</td><td>51.9%</td></tr><tr><td>DoubleVerify Holdings Inc</td><td>4/20/2021</td><td>414.00</td><td>260.28</td><td>21.8%</td><td>3,267.03</td><td>28.1%</td><td>(28.9%)</td></tr><tr><td>UiPath Inc</td><td>4/20/2021</td><td>1,539.00</td><td>607.64</td><td>N.A.</td><td>7,085.34</td><td>34.6%</td><td>(77.3%)</td></tr><tr><td>On24 Inc</td><td>2/3/2021</td><td>492.00</td><td>156.94</td><td>17.0%</td><td>269.12</td><td>49.0%</td><td>(87.1%)</td></tr><tr><td>Overall Median</td><td></td><td>$592.5</td><td>$260.3</td><td>19.3%</td><td>$5,220.0</td><td>17.1%</td><td>(21.7%)</td></tr></table> # Tech IPOs Highlight a Resurgence of Interest in Tech Companies, Particularly Those with Solid Fundamentals and a Clear Path to Profitability Software & SaaS 2024 IPO Summary <table><tr><td colspan="4">2024 Priced IPOs</td></tr><tr><td>Company</td><td>IPO Date</td><td>IPO Details</td><td>Description</td></tr><tr><td>ServiceTitan</td><td>December 11, 2024</td><td>Total Gross Proceeds: $719M Enterprise Value at IPO: $11,842M EV/LTM Revenue at IPO: 16.3x EV/LTM EBITDA at IPO: N.A. Offer to Current %: 44.9%</td><td>Developer of a field service management software platform that helps service businesses streamline operations, improve customer experience and boost profitability</td></tr><tr><td>oneselfream</td><td>July 23, 2024</td><td>Total Gross Proceeds: $564M Enterprise Value at IPO: $4,882M EV/LTM Revenue at IPO: 11.2x EV/LTM EBITDA at IPO: N.A. Offer to Current %: 42.6%</td><td>Al-enabled and extensible software platform that unifies core financial functions and broader operational data and processes within a single platform</td></tr><tr><td>WAYSTAR</td><td>June 6, 2024</td><td>Total Gross Proceeds: $1,076M Enterprise Value at IPO: $5,633M EV/LTM Revenue at IPO: 6.8x EV/LTM EBITDA at IPO: 16.1x Offer to Current %: 70.7%</td><td>Provider of mission-critical cloud technology to healthcare organizations</td></tr><tr><td>rubrik</td><td>April 24, 2024</td><td>Total Gross Proceeds: $863M Enterprise Value at IPO: $7,330M EV/LTM Revenue at IPO: 11.7x EV/LTM EBITDA at IPO: N.M. Offer to Current %: 104.3%</td><td>Provider of data security solutions to organizations ranging from the largest companies worldwide to mid-sized smaller customers</td></tr><tr><td>ibotta</td><td>April 17, 2024</td><td>Total Gross Proceeds: $664M Enterprise Value at IPO: $3,120M EV/LTM Revenue at IPO: 9.1x EV/LTM EBITDA at IPO: 41.9x Offer to Current %: 26.0%</td><td>Performance marketing platform that allows CPG brands to deliver digital promotions to consumers through a network called the Ibotta Performance Network (IPN)</td></tr></table> Source: S&P Capital IQ, Dealoric, 451 Research and FactSet as of 12/31/24. # III. M&A and Capital Raising Market Update # Global Software M&A Activity was Down Year-over-year The Decline in Global M&A was Mainly Driven by the Significant Decline in Deal Activity in EMEA and Rest of World Historical Deal Amount by Region (Last 5 Years) Source: 451 Research, Cantor Analysis, PitchBook as of 12/31/24. Note: Average Deal Value is normalized by excluding transactions above $20B. # Q4 2024 Exhibited a Continued Downward Trend for Software M&A Software M&A Deal Volume and Count (Since 2019) # Key Observations Q4 2024 witnessed a significant decline in software M&A activity in terms of deal volume, decreasing $51\%$ quarter-over-quarter and $3\%$ year-over-year, which represents the lowest level of activity in 2024 - Deal volume experienced a $31\%$ decrease quarter-over-quarter, and a $20\%$ decline year-over-year M&A activity was subdued through the end of 2024, but a substantial rebound is anticipated following the presidential inauguration, driven by 1) increased market certainty and 2) expected interest rate reductions # 2024 Transactions Largely Comprised of \(1 - \)10 Billion Deals with Just 1 Deal >\(10 Billion Software M&A Deal Volume Segmentation by Deal Size (Since 2019) Source: 451 Research, Cantor Analysis, PitchBook as of 12/31/24. # Private Capital Activity Has Experienced a Decline since 2022, However, Q4 Notably Demonstrated a Significant Rebound in Deal Volume Software & SaaS Private Capital Activity Software & SaaS Private Capital Activity: 2019 - 2024 Number of New Software Unicorns Created: 2019 - 2024 Source: 451 Research, Cantor Analysis, PitchBook as of 12/31/24 for deals above $10 million. Note: A unicorn is a privately held startup company that has achieved a valuation exceeding $1 billion. Software & SaaS Private Capital Activity: Last 2 Years by Quarter Number of New Software Unicorns Created: Last 2 Years by Quarter # Notable Software & SaaS M&A Transactions 2024 # smartsheet \$7.68B # Blackstone VISTA Buyers will acquire work management platform, Smartsheet shares for \(56.50 each, a 41% premium to the 90-day average Aimed at accelerating its growth and enhancing its essential work management solutions for global teams by leveraging combined resources of Blackstone & Vista \$1.90B Salesforce will acquire Own Co., a startup specializing in tools for backing up data in cloud-based apps, for $1.90 billion in cash Own's products will enhance Salesforce's ability to offer robust data protection and management solutions to customers ENVESTNET $4.29B BainCapital Bain Capital will acquire data and wealth solutions platform, Envestnet, for $63.15 per share The acquisition will support Envestnet's growth strategy, both organically and through acquisitions, and investing in its unique products # Recorded Future - $2.65B Mastercard will acquire Recorded Future, a global threat intelligence company, for $2.65 billion from Insight Partners The acquisition bolsters the insights and intelligence used to secure today's digital economy across the payments ecosystem # Teads 1.02B Jtbrain Outbrain will acquire Teads, a global omnichannel video platform, in an approximately $1 billion transaction The merger will form a leading open internet ad platform, distinguished by its ability to drive awareness, consideration, and performance outcomes SQUARESPACE $7.20B PERMIRA Permira acquired website builder, Squarespace for \(46.50 per share and delisted Oct. 17 Squarespace offers SMBs a broad ecosystem—from demand generation to payment solutions—seamlessly integrated with intuitive GenAI Source: 451 Research, Cantor Analysis. (1) Refers to Transaction Value. >\$1B Software & SaaS M&A Deals 2024 <table><tr><td colspan="5">($ in millions)</td></tr><tr><td>Date</td><td>Acquirer</td><td>Target</td><td>EV</td><td>LTM Revenue Multiple</td></tr><tr><td>12/10/24</td><td>Gen Digital</td><td>MoneyLion</td><td>$1,136</td><td>2.4x</td></tr><tr><td>10/30/24</td><td>Francisco Partners</td><td>AdvancedMD</td><td>1,125</td><td>N.M.</td></tr><tr><td>10/30/24</td><td>Siemens</td><td>Altair</td><td>9,913</td><td>15.8x</td></tr><tr><td>10/17/24</td><td>Silver Lake / GIC</td><td>Zuora</td><td>1,589</td><td>3.6x</td></tr><tr><td>9/24/24</td><td>Blackstone / Vista Equity</td><td>Smartsheet</td><td>7,682</td><td>7.4x</td></tr><tr><td>9/12/24</td><td>Mastercard</td><td>Recorded Future</td><td>2,650</td><td>7.8x</td></tr><tr><td>9/5/24</td><td>Salesforce</td><td>Own Company</td><td>1,900(1)</td><td>7.6x</td></tr><tr><td>8/6/24</td><td>Veritas Capital</td><td>NCR Voyix</td><td>2,450</td><td>4.2x</td></tr><tr><td>8/1/24</td><td>TowerBrook Capital / CD&R</td><td>R1 RCM</td><td>8,643</td><td>3.6x</td></tr><tr><td>8/1/24</td><td>Outbrain</td><td>Teads</td><td>1,022</td><td>N.M.</td></tr><tr><td>7/25/24</td><td>KKR</td><td>Instructure</td><td>4,727</td><td>7.9x</td></tr><tr><td>7/11/24</td><td>Bain Capital</td><td>Envestnet</td><td>4,286</td><td>3.3x</td></tr><tr><td>6/24/24</td><td>TPG</td><td>Aareon</td><td>4,167</td><td>N.M.</td></tr><tr><td>6/7/24</td><td>Bain Capital</td><td>PowerSchool</td><td>5,600</td><td>7.7x</td></tr><tr><td>6/5/24</td><td>SAP</td><td>WalkMe</td><td>1,032</td><td>3.8x</td></tr><tr><td>5/23/24</td><td>Hg Capital</td><td>AuditBoard</td><td>3,000</td><td>N.M.</td></tr><tr><td>5/20/24</td><td>CyberArk</td><td>Venafi</td><td>1,540</td><td>10.3x</td></tr><tr><td>5/13/24</td><td>Permira</td><td>Squarespace</td><td>7,200</td><td>6.8x</td></tr><tr><td>5/6/24</td><td>Clearlake / Francisco Partners</td><td>Synopsys (Software Integrity Business)</td><td>1,625</td><td>N.M.</td></tr><tr><td>5/2/24</td><td>Permira</td><td>BioCatch</td><td>1,300</td><td>N.M.</td></tr><tr><td>4/26/24</td><td>Thoma Bravo</td><td>Darktrace</td><td>4,992</td><td>8.1x</td></tr><tr><td>4/25/24</td><td>GTCR</td><td>AssetMark</td><td>2,529</td><td>N.A.</td></tr><tr><td>4/24/24</td><td>IBM</td><td>HashiCorp</td><td>6,400</td><td>11.0x</td></tr><tr><td>4/22/24</td><td>CoStar Group</td><td>Matterport</td><td>1,600</td><td>10.1x</td></tr><tr><td>4/8/24</td><td>Vista Equity Partners</td><td>Model N</td><td>1,183</td><td>4.6x</td></tr><tr><td>4/2/24</td><td>EQT</td><td>Avetta</td><td>3,000</td><td>N.M.</td></tr><tr><td>4/1/24</td><td>Advent International</td><td>Nuvei</td><td>6,300</td><td>4.9x</td></tr><tr><td>3/20/24</td><td>H.I.G. Capital</td><td>Alight (Payroll and Professional Services)</td><td>1,050</td><td>N.M.</td></tr><tr><td>3/18/24</td><td>Francisco Partners</td><td>Jama Software</td><td>1,200</td><td>13.3x</td></tr><tr><td>3/5/24</td><td>Cadence Design Systems</td><td>BETA CAE</td><td>1,240</td><td>13.8x</td></tr><tr><td>2/27/24</td><td>Cox Enterprises</td><td>OpenGov</td><td>1,800</td><td>N.M.</td></tr><tr><td>2/26/24</td><td>KKR</td><td>Broadcom (End-User Computing Division)</td><td>4,000</td><td>N.M.</td></tr><tr><td>2/5/24</td><td>Thoma Bravo</td><td>Everbridge</td><td>1,729</td><td>3.8x</td></tr><tr><td>1/31/24</td><td>Cardinal Health</td><td>Specialty Networks</td><td>1,200</td><td>N.M.</td></tr><tr><td>1/25/24</td><td>Roper Technologies</td><td>Procare Software</td><td>1,860</td><td>N.M.</td></tr><tr><td>1/16/24</td><td>Synopsys</td><td>Ansys</td><td>32,000</td><td>16.2x</td></tr><tr><td colspan="3">Median (n=36)</td><td>$2,281</td><td>7.7x</td></tr></table> # Appendix # Cantor's Global Investment Banking and Capital Markets Capabilities # Cantor Fitzgerald is a privately-owned global financial services firm providing investment banking, inter-dealer brokerage, and asset management services # Investment Banking Bulge bracket capabilities with boutique focus and approach to middle market clients Global reach with presence in New York, San Francisco, Toronto, London, Hong Kong, and Dubai # Equity 300+ sales professionals and traders 7,000+ institutional accounts Global distribution with offices around the world - Growing equity research platform # Fixed Income 400+ fixed income sales professionals, traders, and research analysts - Broad credit trading platform covering high yield loans, investment grade, Eurobonds # Prime Services Multi-asset financing, clearing and custody capabilities in global markets for cash and synthetic products Full-service financing capabilities for equities and fixed income products # Asset Management Asset management and advisory services to investors in global fixed income and equity markets - Leverages the firm's extensive fixed income and equities institutional distribution 12,500+ EMPLOYEES | 150 OFFICES | 22 COUNTRIES* # Full-service Technology Origination and Product Team # CANTOR TECHNOLOGY INVESTMENT BANKING New York City | San Francisco | London 50+ Technology Bankers 15+ Senior Bankers 10+ Equity Research Analysts 250+ Technology Companies Under Coverage # Dedicated sector focus across technology <table><tr><td colspan="3">Software / SaaS</td><td>Tech Enabled Services</td><td>Internet and Related Software</td><td>Industrial Tech, Semiconductors, and Mobility</td><td>Other Relevant Senior Bankers</td><td></td><td></td></tr><tr><td>Karan Kapoor Managing Director San Francisco</td><td>Mark Baillie Managing Director New York</td><td>Paras Jain Managing Director New York</td><td>Mike Rintoul Managing Director New York</td><td>Jason Harkness Managing Director San Francisco</td><td>Stephen Butkow Managing Director New York</td><td>Bryan Dow Managing Director San Francisco</td><td>Cole Bader Global Head of Tech IB New York</td><td>Benjamin May Head of EMEA London, England</td></tr><tr><td>Jace Kowalzyk Managing Director San Francisco</td><td>Mihir Jobalia Managing Director San Francisco</td><td>Ed Keller Director San Francisco</td><td>Jamie Rude Director New York</td><td>Austin Swank Director San Francisco</td><td>Peter Karl Managing Director New York</td><td>Shalin Patel Director New York</td><td>Beau Bohm Head of ECM New York</td><td>Mike Rosso Head of PCM San Francisco</td></tr><tr><td colspan="9">Leveraging Cantor's Full Suite of Product Capabilities</td></tr><tr><td colspan="3">M&A</td><td colspan="2">Public Capital Markets</td><td colspan="4">Private Capital Markets</td></tr><tr><td colspan="3">• Private & Sponsor-backed M&A</td><td colspan="2">• IPOs, Follow-ons, and ATMs</td><td colspan="4">• Equity Private Placements</td></tr><tr><td colspan="3">• Public M&A</td><td colspan="2">• Equity-linked & Convertibles</td><td colspan="4">• Private Debt Advisory</td></tr></table> # Premium Capital Markets Content Developed by Technology Equity Research and Sales Teams Semiconductors & Semi Cap Equipment – C.J. Muse / Matthew Prisco Internet & eCommerce – Deepak Mathivanan Infrastructure & AI Software - Thomas Blakey Security & Infrastructure Software - Yi Fu Lee Consumer Internet & Software - Brett Knoblauch Crypto & Blockchain – Brett Knoblauch # Cantor Software & SaaS Investment Banking Team <table><tr><td>Key Senior Bankers</td><td>Bio</td><td>Sector Focus</td></tr><tr><td>Mark Baillie Managing Director New York +1 (917) 439-4966 mark.baillie@cantor.com</td><td>25+ years of experience advising Software and SaaS clients across Application and Infrastructure Software Holds an A.B. in Politics from Princeton University</td><td>Supply Chain Software Digital Commerce Procurement, Payroll / HRTech Field Service Management Data Management Vertical Software – Banking, Music Tech</td></tr><tr><td>Paras Jain Managing Director New York +1 (212) 915-1761 paras.jain@cantor.com</td><td>15+ years of experience as an investment banker advising Software clients Holds an MBA from the Kellogg School of Management at Northwestern University</td><td>CX / Martech Office of the CFO Commerce Enablement</td></tr><tr><td>Mihir Jobalia Managing Director San Francisco +1 (408) 582-3369 mihir.jobalia@cantor.com</td><td>23+ years of experience in executing M&A, private placements, divestitures, recapitalizations, IPOs, follow-on offerings, and delivering fairness opinions Holds an MBA from the Booth School of Business at University of Chicago</td><td>Cyber Security Software Infrastructure Software</td></tr><tr><td>Karan Kapoor Managing Director San Francisco +1 (415) 869-2037 karan.kapoor@cantor.com</td><td>20+ years of experience as an investment banker advising Application Software and Vertical SaaS companies across Analytics, Collaboration and Workflow Automation, and Marketing Automation Holds an MBA from the Anderson School of Management at UCLA</td><td>Analytics & BI Apps Collaboration & Workflow Automation Marketing Automation Vertical Software Apps across Construction & Real Estate, Legal, and Education</td></tr><tr><td>Jace Kowalzyk Managing Director San Francisco +1 (415) 999-0814 jace.kowalzyk@cantor.com</td><td>24+ years of experience as an investment banker advising Software and Infrastructure Technology companies Graduated with a B.S. in Financial Management from Kansas State University</td><td>Infrastructure Software IT / Networking and Contact Center Telephony Software</td></tr><tr><td>Ed Keller Director San Francisco +1 (713) 805-8762 eduard.keller@cantor.com</td><td>14+ years of experience as an investment banker advising Software clients Holds a B.A. in Economics and Portuguese from The University of Texas</td><td>Cybersecurity Software SCM Software EdTech Software</td></tr></table> # Publicly-Traded Software & SaaS Market: Segment Performance Median Operating Performance & Valuation Metrics By Segment <table><tr><td colspan="12">($ in millions)</td></tr><tr><td rowspan="2">Segment</td><td rowspan="2">Revenue 2024E</td><td rowspan="2">Revenue Growth 2024E</td><td rowspan="2">Gross Margin 2025E</td><td colspan="2">EBITDA Margin</td><td colspan="2">EV / Revenue</td><td colspan="4">EV / EBITDA</td></tr><tr><td>2024E</td><td>2025E</td><td>2024E</td><td>2025E</td><td>2024E</td><td>2025E</td><td>2024E</td><td>2025E</td></tr><tr><td>Infrastructure and Operations Management (n=12)</td><td>$859</td><td>13.9%</td><td>13.3%</td><td>83.4%</td><td>83.0%</td><td>20.4%</td><td>21.4%</td><td>6.8x</td><td>6.1x</td><td>30.1x</td><td>27.5x</td></tr><tr><td>Development Tools and App Infrastructure (n=11)</td><td>764</td><td>12.7%</td><td>17.2%</td><td>83.7%</td><td>82.8%</td><td>20.1%</td><td>16.2%</td><td>6.6x</td><td>5.6x</td><td>24.1x</td><td>23.1x</td></tr><tr><td>Networking and Content Delivery (n=8)</td><td>1,238</td><td>4.5%</td><td>6.5%</td><td>79.1%</td><td>78.8%</td><td>26.5%</td><td>24.1%</td><td>4.3x</td><td>4.0x</td><td>19.6x</td><td>17.0x</td></tr><tr><td>Security (n=17)</td><td>987</td><td>11.4%</td><td>9.5%</td><td>80.8%</td><td>80.4%</td><td>22.0%</td><td>25.1%</td><td>7.9x</td><td>7.0x</td><td>16.8x</td><td>16.9x</td></tr><tr><td>Analytics, Business Intelligence, and Data Management (n=10)</td><td>1,713</td><td>15.9%</td><td>15.2%</td><td>76.5%</td><td>76.7%</td><td>20.4%</td><td>14.0%</td><td>5.6x</td><td>5.5x</td><td>9.9x</td><td>42.4x</td></tr><tr><td>Cloud Communications (n=7)</td><td>742</td><td>6.5%</td><td>3.0%</td><td>72.1%</td><td>73.3%</td><td>19.7%</td><td>14.1%</td><td>1.8x</td><td>1.7x</td><td>8.4x</td><td>8.9x</td></tr><tr><td>CRM, Contact Center, and Marketing Automation (n=18)</td><td>684</td><td>13.9%</td><td>10.3%</td><td>77.0%</td><td>76.9%</td><td>13.5%</td><td>15.1%</td><td>2.9x</td><td>2.6x</td><td>18.2x</td><td>14.9x</td></tr><tr><td>ERP and Financial Applications (n=13)</td><td>665</td><td>12.7%</td><td>12.1%</td><td>73.2%</td><td>74.8%</td><td>15.9%</td><td>23.1%</td><td>5.4x</td><td>4.7x</td><td>23.6x</td><td>20.4x</td></tr><tr><td>Supply Chain Management and B2B Procurement (n=9)</td><td>697</td><td>18.5%</td><td>12.2%</td><td>67.1%</td><td>68.3%</td><td>29.4%</td><td>29.2%</td><td>7.5x</td><td>6.5x</td><td>22.9x</td><td>21.4x</td></tr><tr><td>Content, Collaboration & Project Management (n=8)</td><td>1,116</td><td>9.1%</td><td>7.9%</td><td>82.4%</td><td>82.3%</td><td>31.5%</td><td>32.0%</td><td>4.3x</td><td>4.0x</td><td>12.8x</td><td>16.2x</td></tr><tr><td>Human Capital Management (n=9)</td><td>1,476</td><td>13.8%</td><td>11.2%</td><td>72.0%</td><td>72.3%</td><td>31.6%</td><td>33.9%</td><td>6.1x</td><td>5.8x</td><td>21.0x</td><td>19.2x</td></tr><tr><td>Digital Manufacturing, Engineering & PLM (n=10)</td><td>2,441</td><td>10.2%</td><td>10.8%</td><td>83.5%</td><td>83.8%</td><td>37.2%</td><td>39.3%</td><td>11.3x</td><td>9.9x</td><td>30.0x</td><td>26.5x</td></tr><tr><td>HCIT (n=9)</td><td>308</td><td>11.6%</td><td>10.0%</td><td>71.3%</td><td>72.5%</td><td>21.6%</td><td>21.6%</td><td>3.0x</td><td>2.9x</td><td>14.0x</td><td>12.0x</td></tr><tr><td>Financial Technology (n=15)</td><td>942</td><td>7.2%</td><td>8.6%</td><td>62.7%</td><td>64.0%</td><td>31.3%</td><td>31.7%</td><td>6.5x</td><td>5.8x</td><td>17.4x</td><td>16.7x</td></tr><tr><td>Vertical Applications (n=20)</td><td>790</td><td>13.0%</td><td>10.6%</td><td>64.1%</td><td>66.0%</td><td>19.1%</td><td>24.6%</td><td>5.6x</td><td>5.4x</td><td>17.3x</td><td>16.4x</td></tr><tr><td>eCommerce / Payments (n=8)</td><td>1,340</td><td>11.7%</td><td>7.7%</td><td>55.9%</td><td>55.9%</td><td>24.7%</td><td>19.0%</td><td>2.3x</td><td>2.2x</td><td>12.0x</td><td>11.9x</td></tr><tr><td>Diversified Software Vendors (1) (n=7)</td><td>35,132</td><td>10.7%</td><td>11.3%</td><td>79.2%</td><td>79.7%</td><td>40.8%</td><td>31.3%</td><td>9.1x</td><td>8.3x</td><td>21.8x</td><td>20.0x</td></tr><tr><td>Overall Median (n=191)</td><td>$828</td><td>13.6%</td><td>11.4%</td><td>76.4%</td><td>76.5%</td><td>21.0%</td><td>23.0%</td><td>6.0x</td><td>5.6x</td><td>20.2x</td><td>19.4x</td></tr></table> # Public Company Trading Data: Infrastructure Software & SaaS ($ in millions, except per share data) <table><tr><td rowspan="3">INDUSTRY SEGMENTCompany (Ticker)</td><td colspan="11">MARKET DATA</td><td colspan="7">OPERATING DATA</td></tr><tr><td rowspan="2">StockPrice</td><td rowspan="2">S2 WeekHigh - Low</td><td rowspan="2">MarketCap.</td><td rowspan="2">Cash &Equiv.</td><td rowspan="2">EnterpriseValue (EV)</td><td colspan="3">EV / Revenue</td><td colspan="3">EV / EBITDA</td><td colspan="3">2024E</td><td colspan="3">Revenue Growth</td><td></td></tr><tr><td>2023A</td><td>2024E</td><td>2025E</td><td>2023A</td><td>2024E</td><td>2025E</td><td>Revenue</td><td>Gross Margin</td><td>EBITDA Margin</td><td>FCF Margin</td><td>22A - 23A</td><td>23A - 24E</td><td>24E - 25E</td></tr><tr><td colspan="18">Infrastructure</td><td></td></tr><tr><td colspan="18">Infrastructure and Operations Management</td><td></td></tr><tr><td>Datadog (DDOG)</td><td>$142.89</td><td>$168.65 - $104.97</td><td>$44,755</td><td>$3,199</td><td>$42,301</td><td>19.9x</td><td>15.9x</td><td>13.1x</td><td>N.M.</td><td>N.M.</td><td>48.1x</td><td>$2,661</td><td>81.9%</td><td>26.8%</td><td>27.7%</td><td>27.1%</td><td>25.0%</td><td>21.7%</td></tr><tr><td>NetApp (NTAP)</td><td>116.08</td><td>134.62 - 84.60</td><td>25,189</td><td>2,229</td><td>24,953</td><td>4.0x</td><td>3.8x</td><td>3.6x</td><td>13.5x</td><td>12.3x</td><td>11.5x</td><td>6,536</td><td>71.8%</td><td>31.0%</td><td>21.8%</td><td>(0.9%)</td><td>3.9%</td><td>5.5%</td></tr><tr><td>Pure Storage (PSTG)</td><td>61.43</td><td>68.35 - 34.82</td><td>21,696</td><td>1,649</td><td>20,148</td><td>7.1x</td><td>6.4x</td><td>5.8x</td><td>35.0x</td><td>30.1x</td><td>27.5x</td><td>3,130</td><td>72.2%</td><td>21.4%</td><td>16.3%</td><td>4.4%</td><td>10.8%</td><td>11.5%</td></tr><tr><td>Nutanix (NTNX)</td><td>61.18</td><td>73.37 - 44.90</td><td>19,246</td><td>1,075</td><td>18,741</td><td>9.5x</td><td>8.2x</td><td>7.1x</td><td>N.M.</td><td>45.1x</td><td>33.4x</td><td>2,281</td><td>86.8%</td><td>18.2%</td><td>25.8%</td><td>16.6%</td><td>15.2%</td><td>15.4%</td></tr><tr><td>Dynatrace (DT)</td><td>54.35</td><td>60.70 - 40.49</td><td>16,761</td><td>1,005</td><td>15,756</td><td>11.6x</td><td>9.8x</td><td>8.5x</td><td>41.9x</td><td>33.5x</td><td>28.3x</td><td>1,615</td><td>84.7%</td><td>29.1%</td><td>24.1%</td><td>23.5%</td><td>18.7%</td><td>15.4%</td></tr><tr><td>Commvault Systems (CVLT)</td><td>150.91</td><td>177.60 - 73.97</td><td>6,947</td><td>244</td><td>6,703</td><td>8.1x</td><td>7.2x</td><td>6.4x</td><td>37.2x</td><td>33.4x</td><td>29.7x</td><td>928</td><td>82.0%</td><td>21.6%</td><td>22.1%</td><td>5.5%</td><td>12.7%</td><td>12.0%</td></tr><tr><td>HashiCorp (HCP)</td><td>34.21</td><td>34.27 - 21.59</td><td>7,429</td><td>1,346</td><td>6,083</td><td>10.6x</td><td>9.1x</td><td>7.9x</td><td>N.M.</td><td>N.M.</td><td>N.M.</td><td>668</td><td>84.8%</td><td>N.M.</td><td>9.4%</td><td>24.1%</td><td>16.4%</td><td>14.6%</td></tr><tr><td>SolarWinds (SWI)</td><td>14.25</td><td>14.84 - 10.59</td><td>2,431</td><td>199</td><td>3,437</td><td>4.5x</td><td>4.4x</td><td>4.2x</td><td>10.5x</td><td>9.0x</td><td>8.8x</td><td>789</td><td>90.7%</td><td>48.6%</td><td>28.6%</td><td>5.5%</td><td>4.0%</td><td>3.0%</td></tr><tr><td>AvePoint (AVPT)</td><td>16.51</td><td>18.89 - 7.38</td><td>3,096</td><td>250</td><td>2,848</td><td>10.5x</td><td>8.6x</td><td>7.3x</td><td>N.M.</td><td>N.M.</td><td>40.0x</td><td>329</td><td>75.6%</td><td>15.1%</td><td>20.4%</td><td>17.0%</td><td>21.2%</td><td>18.3%</td></tr><tr><td>Freshworks (FRSH)</td><td>16.17</td><td>23.59 - 10.88</td><td>3,767</td><td>1,055</td><td>2,712</td><td>4.5x</td><td>3.8x</td><td>3.3x</td><td>N.M.</td><td>47.3x</td><td>25.7x</td><td>715</td><td>85.2%</td><td>8.0%</td><td>20.4%</td><td>19.8%</td><td>19.9%</td><td>13.9%</td></tr><tr><td>Jamf Holding (J