SOFTWARE & SERVICES
3 NOVEMBER 2009
WEB 2.O WEEKLY
YOUR GPS SYSTEM IS OBSOLETE ALREADY…
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Damian Wojcichowsky, CFA (Associate), 416.860.7652
GO OGL E P RO V ID E S F R E E V OI C E- B A S ED T UR N- B Y- T UR N D RI VI NG D IR E CT IO NS
Google Maps and Google Streetview are among the most popular applications in the Google stable. Layered on to these, Google has recently announced, will be free audio turn-by-turn navigation directions included with every Android mobile OS shipped. This free innovation is made possible courtesy of the army of automobiles prowling the world’s city streets building Google’s proprietary mapping database (at considerable cost to Google, no doubt).
DO OM F O R T O MT O M, GA RMI N
Not unexpectedly, the share prices of the proprietary (and non-free product vending) GPS device makers, TomTom and Garmin, plummeted on the news of Google’s latest application. Observe the latest 10-day stock charts for the two GPS device makers.
AN D ROI D A T H R EA T T O P RO P RI ET AR Y P L AT F O R MS , SU C H A S A PP L E A N D BL A C KB E R RY
This Google development threatens the two leading smartphone players, Apple and BlackBerry. Since both of these companies must purchase their own mapping data to offer a similar service, they are faced with the choice of taking a hit to margins or shipping their smartphones without free navigation.
AN D ROI D ST E A DIL Y S IN KI NG IT S HO O KS I NT O T H E M OB IL E M A RK ET
The possibilities for disruption in the mobile device space on the part of Google and its ad-based revenue model are beginning to come to light with every new, free application press release. Though Android-equipped phones have not made the same kind of splash as the iPhone nor have they the user-base loyalty of the BlackBerry, we expect that developments along the lines of Google’s latest will continue to bring the Android phone segment into the forefront. CAPITAL MARKETS ACTIVITY SLOWS DOWN AS OCTOBER WINDS UP October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5 million.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
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THE WEB 2.0 UNIVERSE Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of approximately $69 billion (Figure 1). The median market cap for the group is $41.8 million, with average trailing revenue of $162 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.6%. On a valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 10.2x trailing EBITDA (median 7.6x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
C ompany Name
Accelerize New Media , Inc. Actoz S oft C o. , Ltd. AQ Interactive, Inc. As s ociated Media Holdings Inc. B igs tring C orp. B eta wave C orporation B eyond C ommerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hangyou. com L imited C hina G a teway C orporation C hines e G amer Interna tiona l C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz International, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media , Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C a nada , Inc. F rogs ter Interactive P ictures AG G ama nia Digita l E ntertainment C o., Ltd. G ameOn C o Ltd. G eoS entric O yj G iant Interactive G roup, Inc. G iga Media Ltd. G ravity C o., Ltd G ree, Inc. G ungHo O nline E ntertainment, Inc. HanbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment Limited K AB Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orporation LiveW orld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi Limited Myriad G roup AG NE O W IZ G ames C orpora tion NetDragon W ebS oft, Inc. Neteas e. com Inc. NeuLion Incorporated NeXplore C orporation Ngi G roup Inc. Northgate T echnologies L imited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o. , Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S NAP Interactive, Inc. S NM G loba l Holdings S ocial Media V entures Inc. S ocialwis e, Inc. S ohu. com Inc. S park Networks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P arent C ompany T he9 Limited T heS treet. com, Inc. T ree.C om, Inc. Unis erve C ommunica tions C orp. United O nline Inc. UOMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds . com Inc. W ynds torm C orpora tion XING AG Y D O nline C orp. Y nk K orea Inc. High Low Average Median
L TM as of Ticker
6/30/2009 6/30/2009 6/30/2009 6/30/2007 6/30/2009 6/30/2009 6/30/2009 3/31/2009 9/30/2008 6/30/2009 9/30/2009 9/30/2008 6/30/2009 5/31/2009 7/31/2009 6/30/2009 6/30/2009 5/31/2009 NA 6/30/2009 8/31/2009 6/30/2009 12/31/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 3/31/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 9/30/2009 4/30/2009 3/31/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 9/30/2009 6/30/2009 6/30/2009 12/31/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 9/30/2009 9/30/2009 6/30/2009 6/30/2009 6/30/2009 12/31/2007 6/30/2009 9/30/2009 12/31/2008 6/30/2009 9/30/2008 12/31/2008 6/30/2009 9/30/2009 6/30/2009 6/30/2009 6/30/2009 8/2/2008 12/31/2008 3/31/2009 6/30/2009 5/31/2009 6/30/2009 7/31/2009 9/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 NA 6/30/2009 12/31/2007 12/31/2008 AC LZ A052790 3838 AS MH BS GC B W AV B Y OC AIM: B G T BWBA C HIN. A C Y OU CGWY G T S M: 3083 C LK Z CWR L T S X :C X C M: DA DX N DIB Z DG LP DG T W DP DM A041060 E XT I T S X :F MN FRG 6180 3812 G E O 1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS A. E IE E AS X :J MB T S X :K AB 3888 T S X V :LM LVW D L OO K MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X :NLN NX P C 2497 590057 OT E X OP W V PWRD T S X V :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S C LW S O HU L OV S P XA 700 K IDS . Q NC T Y TS CM TR E E T S X V :US S UNT D UO MO V C LK V O IS W ZE N W ZE W DDD W Y ND O 1B C A052770 A023770
E xc hange
OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B AIM OT C P K Na s daqG S Na s daqG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E HL S E NY S E Na s daqG S Na s daqG M TS E OS E K OS E Na s daqG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Na s daqG M OT C B B TS E OM AS X SWX K OS E S E HK Na s daqG S TS X OT C P K TS E BSE Na s daqG S Na s daqG S Na s daqG S T S XV OT C B B R TS Na s daqG S Na s daqG S K OS E OT C B B OT C P K OT C P K OT C B B Na s daqG S AME X OT C B B S E HK OT C P K Na s daqG S Na s daqG M Na s daqG M T S XV Na s daqG S OT C B B Na s daqG S OT C B B Na s daqG M AME X OT C B B OT C P K XT R A K OS E K OS E
Trading C urrency HQ
US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AUD C AD HK D C AD US D US D US D JPY SEK AUD C HF KR W HK D US D C AD US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W United S ta tes S outh K orea J a pan United S ta tes United S ta tes United S ta tes United S ta tes United K ingdom United S ta tes Hong K ong C hina United S ta tes T aiwa n United S ta tes United S ta tes C anada Italy Ma la ys ia United S ta tes United S ta tes United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes G ermany T aiwa n J a pan F inland C hina T aiwa n S outh K orea J a pan J a pan S outh K orea United S ta tes C anada C anada Aus tralia C anada C hina C anada United S ta tes United S ta tes United S ta tes J a pan S weden Aus tralia S witzerland S outh K orea C hina C hina C anada United S ta tes J a pan India C anada United S ta tes C hina C anada United S ta tes R us s ia C hina United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes C hina United S ta tes United S ta tes C hina United S ta tes C hina United S ta tes United S ta tes C anada United S ta tes C anada United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes G ermany S outh K orea S outh K orea
C urrent P rice
0. 55 14,500 46,800 0. 01 0. 03 0. 03 0. 08 0. 01 0. 03 2. 35 30. 35 0. 00 426 0. 01 0. 06 1 7. 07 0. 64 0. 00 0. 05 1. 01 0. 40 530 0. 40 1. 79 19. 05 44. 80 85,200 0. 05 7 3. 98 1. 57 5,090 211,500 3,420 19. 02 0. 12 0. 15 0. 34 0 8 0. 95 0. 04 1. 29 0. 01 781000. 00 307. 10 0. 09 4. 89 38600. 00 5 37. 69 0. 70 1 27550. 00 29. 30 36. 93 2. 06 43. 24 1. 80 1 1. 60 45. 20 14. 24 7050. 00 0 0. 00 0 0. 50 54. 07 3 0 143 0. 01 7. 82 2. 41 8. 05 0. 05 7. 86 0 9 0 3. 03 0. 43 0. 10 0. 10 34. 88 6810. 00 3900. 00
US D Market C ap ($m)
15. 4 105. 2 28. 5 0.4 2.0 0.9 4.2 5.9 2.5 249. 1 1,669. 3 0.0 1,104. 8 0.7 5.7 83. 6 167. 7 41. 6 0.0 3.9 27. 6 21. 5 32. 2 17. 8 86. 4 71. 5 209. 8 92. 1 65. 8 1,644. 0 217. 0 43. 6 2,548. 3 271. 0 62. 8 2,510. 1 8.5 6.8 14. 5 0.6 1,058. 1 10. 9 1.2 22. 1 5.4 1,345. 8 2,906. 3 8.3 209. 7 681. 9 326. 7 4,878. 1 71. 1 41. 8 38. 2 21. 3 2,082. 2 172. 0 2,178. 9 56. 6 15. 3 222. 0 3,039. 9 365. 3 247. 4 2.3 0.0 0.0 22. 1 2,072. 7 59. 3 7.3 33, 542.7 0.2 196. 2 73. 8 87. 7 1.1 659. 0 6.6 802. 7 3.3 35. 9 21. 7 5.2 1.8 269. 3 85. 6 17. 4 33, 542.7 0.0 780.0 41. 8
US D L TM Total R ev ($m)
4. 4 108.7 66. 1 0. 1 0. 1 9. 4 11. 7 0. 0 0. 0 361.6 255.3 6. 7 61. 6 2. 5 6. 8 89. 8 241.9 77. 1 NA 1. 0 0. 0 0. 6 15. 4 NM 5. 3 9. 6 140.6 81. 9 5. 4 198.5 183.6 49. 1 156.0 119.5 60. 7 1, 359. 6 0. 0 1. 6 16. 7 67. 9 139.1 1. 2 10. 6 56. 8 0. 1 136.8 2, 002. 6 0. 7 63. 0 207.3 89. 3 472.4 21. 5 1. 7 93. 0 82. 9 814.5 190.5 255.6 21. 0 0. 2 157.4 629.0 223.1 192.7 3. 5 2. 0 0. 1 0. 0 501.0 50. 5 0. 1 1, 391. 6 112.0 250.6 67. 0 216.6 17. 1 949.8 0. 8 545.7 0. 0 23. 2 5. 3 0. 1 NA 58. 9 57. 4 11. 9 2,002. 6 0. 0 161.7 57.1
US D L TM Total E B ITDA ($m)
(3.7) 25. 9 (2.0) (2.3) (1.5) (12. 6) (12. 8) (2.7) (4.6) 25. 1 157.4 (6.6) 34. 7 (1.2) NM 9.7 31. 8 11. 1 NM (1.4) (1.8) (3.4) (3.6) NM (5.1) (4.5) 25. 1 20. 1 (17. 4) 124.1 NM 16. 6 93. 7 26. 6 1.4 82. 4 (0.6) (5.0) 7.2 4.0 61. 4 (1.9) (0.1) (4.4) (2.5) 46. 2 282.9 (2.4) 3.4 55. 7 25. 7 297.4 (13. 0) (13. 3) 6.9 (41. 5) 211.1 5.6 142.2 2.3 (10. 6) 20. 6 296.7 28. 2 12. 5 0.9 (0.7) (0.1) (5.6) 218.5 10. 8 (2.5) 680.3 (13. 5) 85. 5 1.9 (0.7) (0.2) 203.2 (0.4) 130.8 (1.0) 2.3 (4.5) (0.7) NM 17. 0 12. 4 1.3 680. 3 -41.5 39.9 1. 7
E B ITDA %
-83. 3% 23. 8% -2.9% NM NM NM NM NM NM 6.9% 61. 7% -98. 9% 56. 3% -45. 8% NM 10. 8% 13. 1% 14. 4% NM NM NM NM -23. 6% NM -95. 2% -47. 0% 17. 9% 24. 5% NM 62. 5% NM 33. 9% 60. 1% 22. 2% 2.3% 6.1% NM NM 42. 8% 5.8% 44. 2% NM -1.2% -7.8% NM 33. 8% 14. 1% NM 5.4% 26. 8% 28. 7% 63. 0% -60. 3% NM 7.4% -50. 0% 25. 9% 3.0% 55. 6% 11. 0% NM 13. 1% 47. 2% 12. 6% 6.5% 27. 0% -34. 8% -60. 6% NM 43. 6% 21. 3% NM 48. 9% -12. 0% 34. 1% 2.9% -0.3% -1.0% 21. 4% -54. 2% 24. 0% NM 9.9% -84. 9% NM NM 28. 8% 21. 6% 10. 5% 63. 0% -98. 9% 6.2% 12. 6%
TE V/L TM R evenue
4. 6x 0. 7x 0. 1x 12.6x 49.2x 0. 9x 0. 7x 5. 3x 0. 0x 16.8x 0. 3x 2. 4x 0. 7x 0. 9x 0. 7x 5. 9x 38.6x 2. 2x 15.3x 7. 3x 1. 3x 0. 2x 12.1x 0. 8x 15.6x 2. 0x 0. 8x 0. 6x 3. 7x 0. 5x 7. 6x 8. 3x 0. 0x 9. 0x 1. 7x 10.6x 3. 3x 3. 2x 2. 0x 2. 8x 27.0x 0. 3x 2. 6x 0. 4x 0. 7x 2. 6x 0. 0x 1. 1x 1. 3x 0. 2x 1. 1x 4. 5x 3. 1x 1. 1x 26.6x 0. 2x 0. 1x 0. 4x 0. 2x 1. 0x 8. 9x 1. 2x 4. 3x 3. 7x 1. 6x 49.2x 5.2x 1. 7x
TE V/L TM E B ITDA
2. 8x 9. 7x 8. 6x 29. 8x 6. 6x 6. 8x 5. 1x 7. 4x 0. 9x 25. 9x 8. 9x 34. 8x 10. 5x 1. 1x 17. 2x 26. 5x 12. 2x 12. 1x 7. 0x 10. 2x 11. 9x 1. 2x 23. 6x 0. 4x 9. 0x 19. 7x 0. 7x 7. 0x 5. 3x 4. 7x 4. 5x 4. 9x 12. 8x 7. 6x 34. 8x 10.2x 7. 6x
E mployees
11 NA NA 3 4 51 101 NA 46 2, 227 628 37 NA 22 16 NA NA NA NA 7 3 NA NA 2 NA NA NA NA 115 1, 570 751 469 NA NA NA 3, 200 NA NA 79 NA 2, 463 NA NA 90 14 NA 2, 969 NA 405 NA 3, 109 3, 109 237 NA NA NA 3, 411 590 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 421 347 1, 626 310 700 NA 1, 469 NA 1, 189 4 328 110 1 NA 246 NA NA 6, 421 1 936 246
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
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C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5 million.
Financing Activity Last Twelve Months
400.0 14.6 350.0 14.0 16.0
300.0
12.0
250.0
9.7 9.0
10.0
(US$m)
200.0 7.0 7.0 6.5 150.0 4.9 7.1 6.6 6.2 5.5
7.6 6.6
8.0
6.0
100.0
4.0
50.0
2.0
0.0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 Total May-09 Average Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
0.0
*May-09 includes $200m FB investment
Figure 2. Financings, Last Twelve Months Source. Company reports
(US$m)
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Deal round-up for October end: The large deal highlights for the month include: • • • DailyMotion – a French online video content provider – raised $25.3 million through a Series C financing. Yext – an online directory provider – raised $25 million. PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 million in its first round of funding. Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19 million in a Series C financing. Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 million in a follow-on unattributed financing. HubSpot – provider of online enterprise marketing application – received $16 million in Series C financing. Jive Software – maker of enterprise collaboration and social community software – raised $12 million in a Series B financing by returning VC fund, Sequoia.
•
•
• •
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
200.0
180.0
160.0
140.0
120.0 Nov-09 (US$m) 100.0 Oct-09 Sep-09 Aug-09 80.0
60.0
40.0
20.0
0.0 Skype Mint Twitter Turbine Friends Reunited Smith & Tinker DailyMotion Yext NowPublic PopCap Games Ensequence iLike Engine Yard Ecast Network HubSpot Livebookings Dopplr Zoove RichRelevance Jive Software Spigit Ooyala FeedRoom MediaMath Mzinga Traffiq InXpo ScanScout Edo Interactive Bill.com Jobvite CubeTree NextBio Riot Games InnoCentive Box.net Aviary Balihoo OneRiot Reality Mobile HiveLive Boxee Imeem Vuclip Polyvore Watercooler MOG Fanbase Booyah YuMe Vdopia Sometrics Scout Labs NeoEdge Amie Street Alliance Health Unisfair Mocapay ViVu Conduit Labs KODA Z2Live OurStage Scoreloop Fwix Vantrix Fizzback Overtone MashLogic Roblox Godengo Tremor Media Greystripe Technorati iSocket Loomia RightsFlow Plista FourSquare Onehub Tiny Pictures EduFire ChessCube DataSync DailyBooth Hot Potato Linkedex StatusNet IngBoo Chango Fluther Linksify Scoopler TransGaming Listia iSyndica Gigpark VEVO Gamelab.com OnLive Aurora Feint
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
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Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0 sector categories in the past three months by number of transactions (12). Advertising continues to be among the highest activity sectors with 11 deals in the past quarter. Gaming follows with nine transactions followed by Collaboration (7) (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical Communities segment to the second highest total.
Capital Market Activity by Sector - Last Three Months
200.0 180.0 160.0 140.0 120.0 (US$m) 100.0 80.0 60.0 40.0 20.0 2,025.0 0.0 Vertical Communities Gaming Collaboration Enterprise Microblog Mobile Music Search Infrastructure SMS/Voice Social Networks Crowdsourced Content Virtual World Advertising Video 192.3 122.0 100.9 97.4 70.3 70.3 46.0 37.5 37.9 35.5 34.0 26.1 17.1 15.8 14.0 Comment/Reputation 13.2 Advertising/Mobile 13.0 Media 11.5 Analytics 3.9 Social Commerce 3.6 Aggregation 2.2 Publishing 2.0 Mobile Ad 1.3 Online Learning 1
# companies
1 3 9 2 12 11 6 4 7 4 5 4 4 3 5
2
1
2
4
1
2
1
1
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
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C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
250
200
150
100
50
0 1/12/2009 1/26/2009 2/23/2009 3/23/2009 4/20/2009 5/18/2009 6/15/2009 6/29/2009 7/13/2009 7/27/2009 8/10/2009 8/24/2009 9/21/2009 11/3/2008 12/1/2008 10/5/2009 11/17/2008 12/15/2008 12/29/2008 10/19/2009 11/2/2009 2/9/2009 3/9/2009 4/6/2009 5/4/2009 6/1/2009 9/7/2009
Index: Web 2.0 (Market Cap)
Figure 5. Web 2.0 Price Performance Source. Capital IQ
^COMP - Share Pricing
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Broad-based price declines: Eight companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 38 companies showed negative 1-week returns.
S park Netw orks , Inc. Webz en Inc. My riad Group A G Y nk K orea Inc. PNI Digital Media Inc. Mix i, Inc. G ree, Inc. Neteas e.com Inc. OA O R B C Information S y s tems K ings of t Co. Ltd. Cy berplex Inc. Chines e Gamer International Fluid Mus ic Canada , Inc. Tree.Com, Inc. LookS mart, Ltd. IA C/InterA ctiveCorp. XING A G The9 Limited S handa Interactive Entertainment Ltd. G ravity Co., Ltd A Q Interactiv e, Inc. S hutterf ly , Inc. G ameOn Co Ltd. Tencent Holdings Ltd. United Online Inc. HanbitS of t, Inc. Giant Interactive G roup, Inc. Y D Online Corp. Frogs ter Interactiv e Pictures A G NEOWIZ Games Corporation CDC Corp. DA DA S pA Perfect World Co., Ltd. Modern Times G roup Mtg A B Changy ou.com Limited Open Tex t Corp. NetDragon WebS of t, Inc. V alueClick Inc. Eolith Co. Ltd. Gamania Digital Entertainment Co., Ngi G roup Inc. S K Communications Co., Ltd. S ohu.com Inc. A ctoz S of t Co., Ltd. Quepas a Corp. G igaMedia Ltd. TheS treet.com, Inc. Openw ave S y s tems Inc. DigitalTow n, Inc. -0.6
Figure 6. 1-Week Price Performance Source. Capital IQ
1 Week P rice P erformance
9.5% 8.9% 6.6% 6.5% 6.0%
12.5%
-49.5% -0.5 -0.4 -0.3
-24.0% -0.2
-0.5% -0.6% -0.9% -1.5% -1.7% -1.9% -2.9% -3.0% -3.1% -3.3% -3.3% -3.6% -3.8% -3.9% -3.9% -4.0% -4.2% -4.3% -4.7% -4.9% -5.4% -5.7% -5.7% -6.0% -6.3% -6.6% -7.1% -7.8% -8.3% -9.1% -9.6% -9.8% -11.0% -11.1% -11.9% -13.3%
1.0% 0.7% 0.0% 0.0% 0.0%
-0.1
0
0.1
0.2
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P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany
S ohu.com Inc. (Nas daqGS : S OHU)
Headline
Notes
Q uarterly Update to S ohu.com, Inc. ’s E quity B uyback on O n O ctober 26, 2009, S ohu. com, Inc. announced that during the qua rter ending S eptember 30, 2009, it has ma de no O ctober 26, 2009 repurcha s es under the program. As of S eptember 30, 2009, S ohu has repurcha s ed 501,686 s ha res a t an avera ge price of $39.86 for a tota l cons ideration of $20 million under the program. C ha ngyou. com L imited R eports Unaudited C ons olidated E arnings R es ults for the T hird Q ua rter a nd Nine Months E nded S eptember 30, 2009; P rovides E arnings G uidance for the F ourth Q ua rter of 2009 C hangyou. com Limited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended S eptember 30, 2009. F or the qua rter, the company's total revenues were $68, 684, 000 a gains t $54,604,000 a year ago. T he increas es were mainly due to increas ed popula rity of the company's flags hip game, T L B B . O perating profit wa s $42,288, 000 agains t $32, 474,000 a year ago. Income before income ta x expens e wa s $43, 288,000 aga ins t $32,791, 000 a yea r ago. Net income was $37,794,000 agains t $32, 084, 000 a year a go. Diluted net income per ADS wa s $0.71 a gains t $0. 68 a year ago. Non-G AAP opera ting profit was $45,842, 000 a gains t $33, 725,000 a yea r ago. Non-G AAP net income was $41, 348, 000 a gains t $33, 335,000 a yea r ago. Non-G AAP diluted net income per ADS was $0. 77 agains t $0.70 a year ago. O perating cas h flow was a net inflow of $46. 2 million. T he compa ny es timates tota l revenues for the fourth qua rter of 2009 to be between $69.0 million and $71. 0 million. NonG AAP net income for the fourth quarter of 2009 to be between $41. 5 million and $42.5 million. Non-G AAP fully diluted earnings per ADS for the fourth quarter of 2009 to be between $0. 78 and $0.80.
C hangyou.com L imited (Nas daqG S :C YOU)
S ohu.com Inc. (Nas daqGS : S OHU)
S ohu.com Inc. R eports Unaudited C ons olida ted E arnings R es ults for the T hird Q ua rter a nd Nine Months E nded S eptember 30, 2009; P rovides E arnings G uidance for the F ourth Q ua rter of 2009
S ohu.com Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30, 2009. F or the quarter, the compa ny reported net income a ttributable to company of $37,354, 000 or $0. 88 per s hare on tota l revenue of $136, 585,000 aga ins t net income a ttributa ble to company was $40,261, 000 or $1. 02 per s ha re on total revenue of $120, 676,000 in the s ame period of las t year. O pera ting profit was $52,953, 000 agains t $43, 758,000 in the s ame period of las t year. Income before income tax expens e was $54,102, 000 a gains t $45, 230,000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 a gains t $40, 238,000 in the s a me period of las t yea r. As per nonG AAP , net income attributable to company was $40,921, 000 or $0. 96 per s hare on tota l revenue of $136,585, 000 agains t net income attributable to company was $42,822, 000 or $1. 08 per s hare on tota l revenue of $120,676, 000 in the s a me period of las t year. As per non-G AAP , operating profit was $57, 077,000 agains t $46,319, 000 in the s a me period of las t yea r. T he compa ny provided earnings guidance for the fourth quarter of 2009. It es tima tes tota l revenues to be between $134.5 million and $138. 5 million. It es tima tes non-G AAP net income before deducting the s ha re of non-G AAP net income perta ining to the non-controlling interes t in C ha ngyou to be between $49. 5 million to $51. 5 million. After deducting the s hare of non-G AAP net income pertaining to the non-controlling interes t in C hangyou, it es timates non-G AAP net income to be between $35.0 million to $37.0 million a nd non-G AAP fully diluted earnings per s ha re to be between 90 cents and 95 cents . C ons idering its s hare in C hangyou, the es timated impa ct of this expens e is expected to reduce its fully diluted earnings per s hare for the fourth quarter of 2009 under US G AAP by US 6 cents to US 8 cents .
Quepas a C orp. (OTC B B : QP S A)
Q uepas a La unches Developer Interface and O pen S ocial S a ndbox
Q uepas a C orp. a nnounced the launch of its Developer Interface and O pen S ocial S andbox. T he launch of the Developer Interfa ce is pa rt of Q uepas a's overall s trategy to open the s ite to third party O pen S ocial developers who would like to develop applica tions for its global audience. T he compa ny believes that this new Developer Interfa ce and O pen S ocial S andbox will become an ea s y mechanis m for developers to tes t a nd s ubmit their applica tions for inclus ion in the s ite's Application a nd/or G a mes s ections a nd thus enhance the overall us er experience a nd drive s ite traffic and monetiza tion. T he Developer Interface cons is ts of a toolbox that developers us e when s ubmitting a n O pen S ocia l application for inclus ion on any s ocial s ite. T he toolbox includes documentation of the interfaces a vailable, a news area, a community built for the developers where they can communicate and interact with other application developers a s well as with Quepa s a's development tea m, a nd the O pen S ocial S a ndbox where they can tes t completed applications with va lid tes t data.
IAC /InterActiveC orp. (Nas daqG S : IAC I)
Update to IAC /InterActiveC orp’s E quity B uyback
IAC /InterActiveC orp announced that it has repurcha s ed approximately 5,600, 000 s hares at an average price of $16. 69 per s hare during the qua rter ended S eptember 30, 2009. T ill J une 30, 2009, IAC has repurcha s ed 22,874, 884 s hares for a total cos t of $653.16 million under the progra m. As of S eptember 30, 2009, the company has repurcha s ed approximately 28, 474,884 s hares for a tota l of $746. 62 million. O pen T ext C orp. (Nas da qG S : O T E X ) announced its intention to ma ke a normal cours e is s uer bid through the facilities of the NAS DAQ G loba l S elect Ma rk et on O ctober 27, 2009. Under the bid, O pen expects to repurcha s e approximately up to 2,819, 037 s hares . T he maximum number of s hares tha t ma y be purcha s ed is calculated as 5% of the outs tanding common s hares of O pen T ext at the beginning of the bid. T he repurcha s es over the NAS DAQ could commence in November 2009 if des irable. T he bid will expire one year from the commencement date. IAC /InterActiveC orp. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30, 2009. F or the qua rter, the company reported net income attributa ble to IAC s hareholders of $21. 6 million or $0. 16 per diluted s hare on revenue of $336. 5 million agains t net los s attributable to IAC s hareholders of $14. 8 million or $0. 11 per diluted s hare on revenue of $369. 2 million a year a go. E a rnings from continuing operations were $23.8 million or $0. 18 per diluted s hare aga ins t los s from continuing operations $1. 2 million or $0. 01 per diluted s hare a year ago. O perating income was $7.1 million a gains t operating los s of $22.6 million a year a go. E a rnings from continuing operations before income taxes were $58. 08 million a gains t los s from continuing operations before income taxes of $86. 6 million a yea r ago. Adjus ted E P S was $0. 34 agains t adjus ted los s per s hare of $0. 14 a year ago.
Open Text C orp. (Nas daqG S : OTE X)
O pen T ext C orp. announces an E quity B uyback
IAC /InterActiveC orp. (Nas daqG S : IAC I)
IAC /InterActiveC orp. R eports Unaudited C ons olida ted E arnings R es ults for the T hird Q ua rter a nd Nine Months E nded S eptember 30, 2009
S ocial Media Ventures Inc. (OTC P K : S MVI)
S ocial Media V entures Inc. S igns Marketing Agreement with P ets criptions . com
S ocial Media V entures Inc. announce tha t it has s igned a marketing a ffiliate a greement with P ets criptions .com. P ets criptions . com is a provider of pharma ceuticals , medicine, a nd other innova tive products for pets . P ets criptions .com offers pet owners acces s to inexpens ive pet products including medicine a nd pha rmaceutica ls . T he online reta iler offers direct s hipments of pet pha rmaceutica ls and other pet s upply products directly to its cus tomers , offering cus tomer s avings on a wide arra y of pet medicines . All products a re ins pected by the K entucky B oard of P ha rmacy.
Figure 7a. Key Developments Source. Capital IQ
Page 9
K ey Developments - c ontinued
C ompany
Open Text C orp. (Nas daqG S : OTE X)
Headline
Notes
O pen T ext C orp. Announces Unaudited C ons olida ted O pen T ext C orp. announced unaudited cons olidated fina ncial res ults for the firs t quarter ended S eptember 30, 2009. T ota l F inancia l R es ults for the F irs t Q ua rter E nded S eptember revenue for the firs t quarter wa s $211.4 million, up 16% compa red to $182.6 million for the s a me period in the prior fis cal 30, 2009 yea r. Adjus ted net income in the quarter was $32. 8 million or $0.58 per s hare on a diluted ba s is , up 16% compared to $28. 2 million or $0. 53 per s hare on a diluted bas is for the s a me period in the prior fis cal year. Net income in accordance with U. S . generally accepted accounting principles wa s $1.7 million or $0.03 per ba s ic a nd diluted s hare compared to $14. 7 million or $0. 28 per s ha re on a diluted bas is for the s ame period in the prior fis cal yea r. T he company reported income before income tax of $5.186 million and income from opera tions of $4. 792 million compared to income before income ta x of $20. 712 million and income from opera tions of $22. 977 million for the s ame period of la s t year. T he compa ny reported net cas h provided by opera ting activities of $4.502 million a nd additions of ca pital as s ets , net of $7.665 million compared to net cas h provided by opera ting activities of $24. 813 million and a dditions of capital a s s ets , net of $3.887 million for the s ame period of las t year. V alueC lick Inc. R eports Unaudited C ons olida ted E arnings R es ults for the T hird Q ua rter a nd Nine Months E nded S eptember 30, 2009 ; P rovides E arnings G uidance for the F ourth Q ua rter of 2009 V alueC lick Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30, 2009. F or the qua rter, revenue was $130.2 million, adjus ted-E B IT DA of $33. 4 million. T he C ompany genera ted approximately $22. 6 million in free cas h flow in the third qua rter, defined as net cas h from opera tions les s capital expenditures . G AAP net income was $25.0 million, or $0. 29 per bas ic and diluted common s hare. T he C ompany recorded an income tax benefit in the third quarter of 2009 of $2.7 million due to favorable income tax adjus tments recorded in the qua rter. E xcluding thes e adjus tments and as s uming the normaliz ed 42% effective tax rate included in the company's previous ly-is s ued third quarter guida nce, net income would have been $13. 0 million, or $0. 15 per diluted common s hare. Non-G AAP net income, which excludes dis continued operations , s tock -bas ed compens a tion and a mortiz ation of inta ngible as s ets wa s $30. 3 million, or $0. 34 per diluted common s hare. T he company reported net income of $1.999 million or $0.02 per bas ic and diluted s hare on revenue of $148.065 million for the third qua rter of 2008. T he company reported income before T he compa ny provided earnings guidance for the fourth quarter of 2009. T he company expects adjus ted E B IT DA of $32 million to $35 million on revenue of $128 million to $138 million for the fourth qua rter of 2009. T he company expects G AAP diluted net income per common s ha re of $0. 15 to $0.16 a nd Non-G AAP diluted net income per common s hare of $0.21 to $0. 22 for the fourth qua rter of 2009.
ValueC lic k Inc. (Nas daqG S : VC L K )
S handa Interactive E ntertainment L td. (Nas daqG S :S NDA)
S handa Interactive E nterta inment Ltd. , Annua l G eneral Meeting, O ct 28, 2009
S handa Interactive E nterta inment Ltd., Annua l G enera l Meeting, O ct 28, 2009, at 10:00 C C T -C hina C oas t, US S R Zone 7. Loca tion: Is land S hangri-La, L evel 7, executive boardroom, P a cific P lace, S upreme C ourt R oad, C entral, Hong K ong. Agenda: T o elect 8 directors to s erve for the ens uing year or until their s ucces s ors are elected and duly qua lified; and to cons ider any other bus ines s properly brought before the meeting. T o communicate progres s achieved in developing its bus ines s model S hutterfly Inc. reported capita l expenditure of $4. 9 million for the third quarter ended S ep. 30, 2009, which included $2. 7 million for technology equipment a nd s oftware, approximately $1. 1 million for ma nufacturing equipment and building improvements a nd $1. 1 million in capita liz ed s oftware development cos ts . T he compa ny now expects full year 2009 free cas h flow to ra nge from approximately $14 million to a pproxima tely $22 million.
Quepas a C orp. (OTC B B : QP S A) S hutterfly, Inc . (Nas daqG S :S FL Y)
Q uepas a C orp. - C onference P res entation C a ll S hutterfly Inc. R eports C apita l E xpenditure for the T hird Q uarter E nded S ep. 30, 2009; P rovides F ree C as h F low O utlook for the Y ear 2009
Open Text C orp. (Nas daqG S : OTE X)
O pen T ext C orp. Announces New R elea s e of its E nterpris e P ortal S olution, V ignette P orta l V ers ion 8.0
O pen T ext C orp. announced a new relea s e of its enterpris e porta l s olution, V ignette P ortal vers ion 8. 0. T he s olution allows organiz ations to provide cus tomers , employees a nd pa rtners with a rich internet experience where they can find relevant and pers onalized informa tion aggrega ted from multiple bus ines s and cons umer-ba s ed s ys tems . V ignette P orta l 8. 0 s implifies the adminis tration a nd creation of dynamic, content-rich W eb s ites with the ability to rapidly s yndicate porta l applications acros s W eb properties powered by multiple s ys tems . V ignette P orta l 8 from O pen T ext expands on the vers a tility and rich interopera bility a fforded a pioneer in the enterpris e portal s pace. It helps bus ines s es unify their W eb s oftware portfolios into s leek, eas y-to-us e W eb s ites a nd allows thos e s a me bus ines s es to engage cus tomers and partners with rich a nd s ocially ena bled W eb experiences . T he relea s e of P ortal 8. 0 not only demons trates O pen T ext's continued commitment to V ignette cus tomers and technology, but als o ena bles additional s ocial media ca pabilities that align with the company's s tra tegic development of E nterpris e 2. 0 s olutions . O pen T ext recently announced that it plans to enhance its E C M S uite w technology from its exis ting W eb S olutions and V ignette. B y offering a variety of s olutions , the company will allow organiz ations -regardles s of s iz e a nd indus try-to s ucces s fully addres s their bus ines s needs .
Tencent Holdings L td. (S E HK : 700)
C hina Unicom T eams Up with T encent's T enP ay for O nline P ayments
T enpay, an online payment s ervice operated by C hina's T encent H oldings Ltd. , has s igned a contra ct with C hina U nicom (Hong K ong) Ltd. to provide online pa yment s ervices . Under the terms of the contract, the carrier's us ers ca n us e T enpay to recharge their phones via C hina Unicom's online s ervice center and a pply for C hina Unicom's online value-added s ervices . T hey can als o buy prepaid cards , mobile hands ets and 3G data cards from the ca rrier's online s tore. T encent's T enpay handled €2. 53 billion worth of tra ns actions in the s econd quarter of 2009. C hina Unicom will a ls o us e T enpay's e-billing s ervices to handle pa yments between online s ervice centers and provincial divis ions .
OAO R B C Information S ys tems (R TS :R B C I) K ings oft C o. L td. (S E HK : 3888)
O AO R B C Information S ys tems R eaches $208 Million Debt R es tructuring Deal K ings oft La unches W ap. s houji. cn
O AO R B C Information S ys tems reached a $208 million debt res tructuring deal with the creditors . K ings oft C o. L td. la unched wireles s Internet webs ite wa p.s houji.cn in an attempt to offer va rious mobile phone application s ervices for us ers . S ince the open beta tes ting on O ctober 1, 2009, wa p.s houji.cn has been luring 600,000 unique vis itors at mos t per day, with da ily pa ge view of 2.3 million or s o. T he new s ite, which offers mobile phone-ba s ed s oftware, ga me, theme, as well a s picture downloading s ervices , will be opened not only to K ings oft us ers but a ls o to mobile phone us ers , noted an official from the Hong K ong-lis ted compa ny. S o far, K ings oft ha s joined hands with nea rly 100 mobile phone s oftware companies , collecting approximately 1, 000 kinds of mobile phone s oftware and more tha n 10, 000 mobile phone games and theme products . T he products ca n meet the dema nd of mobile phone us ers .
P ay88, Inc. (OTC B B : P AYI); S ohu.com Inc. (Nas daqG S :S OHU)
P ay88, Inc. E nters Dis tribution Agreement with S ohu.com P ay88, Inc. announced that it ha s entered into a dis tribution agreement with S ohu. com Inc. T hrough its s ubs idiary, Q ianbao T echnology, P ay88 will act a s a dis tributor of S O HU digita l products , with a pa rticular focus on mobile phone games . As a res ult of this new rela tions hip, Q ianbao T echnology will now be a ble to offer mobile ga mes to the domes tic market in C hina .
Figure 7b. Key Developments – continued Source. Capital IQ
Page 10
K ey Developments - c ontinued
C ompany
S hutterfly, Inc . (Nas daqG S : S FL Y)
Headline
S hutterfly Inc. R eports Unaudited C ons olidated E arnings R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009 ; P rovides E arnings G uidance for the F ourth Q uarter and F ull Y ear of 2009
Notes
S hutterfly Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended S eptember 30, 2009. F or the quarter, the company reported los s from operations of $9. 055 million, los s before income taxes of $9. 003 million and net los s of $6. 346 million or $0. 25 per bas ic and diluted s hare on net revenues of $40. 495 million compared to the los s from operations of $9. 226 million, los s before income taxes of $8. 871 million and net los s of $2. 800 million or $0. 11 per bas ic and diluted s hare on net revenues of $35. 953 million for the s ame period a year ago. Adjus ted E B IT DA was $2. 0 million, compared to $0. 1 million in the third quarter of 2008.
T he company provided earnings guidance for the fourth quarter and full year of 2009. F or the quarter, the company expects that net revenues to range from $102. 6 million to $112. 6 million, a year-over-year change of (4% ) to 5% . G AA P operating income to range from $21 million to $27 million. Non-G AA P operating income to range from $26 million to $32 million. G AAP diluted net los s per s hare to range from $0. 55 to $0. 66. Non-G A AP diluted net los s per s hare to range from $0. 68 to $0. 78. Adjus ted E B IT DA to rang
C hangyou.c om L imited (Nas daqG S : C YOU)
C hangyou. com L imited O pens U . S . S ubs idiary
C hangyou. com L imited has opened its U. S . s ubs idiary in S ilicon V alley and aims to introduce its hugely s ucces s ful online games in A s ia to American gamers . T he company's firs t releas e in the U. S . market Dragon Oath will launch O pen B eta Nov. 5. Dragon Oath, which has run in A s ia for over three years , has over 75 million regis tered players and 910, 000 concurrent us ers . T o communicate progres s achieved in developing its bus ines s model and to inform attendees of the abundant mark et opportunity the company's bus ines s , itioned within both the L atino market and s ocial networking s pace. by recently T o dis cus s and how company is pos growth s trategy and outlook, including the opportunities pres ented announced contracts with major new bus ines s partners in the photography market
Quepas a C orp. (OTC B B : QP S A) DigitalP os t Interac tive, Inc . (OTC B B : DG L P ) Openwave S ys tems Inc . (Nas daqG S : OP W V)
Q uepas a C orp. - C onference P res entation C all DigitalP os t Interactive, Inc. - C onference P res entation C all
O penwave S ys tems Inc. P rovides E arnings G uidance for O penwave S ys tems Inc. provided earnings guidance for the full year of fis cal 2010. T he company thinks that the full year of the F ull Y ear of F is cal 2010 fis cal 2010 will be cas h flow neutral to pos itive from operations . T he company will focus on maintaining a non-G AAP net income breakeven level until and s ees revenue improvement. S ince the majority of revenue comes from backlog, outlook for 2010 remains unchanged des pite the improvement in firs t quarter of fis cal 2010. T he company expects 2010 revenue to be a s us tained level as 2009. J umbuck E ntertainment L imited Announces New A ppointments J umbuck E ntertainment L imited, A nnual G eneral Meeting, O ct 29, 2009 J umbuck E ntertainment L imited announced at its AG M held on October 29, 2009, elected Adrian R is ch, B ruce B ennie and Harvey P arker as directors of the company. J umbuck E ntertainment L imited, Annual G eneral Meeting, O ct 29, 2009, at 15: 00 E AS T -E as t Aus tralian S tandard G S T . L ocation: T he S ebel Hotel Melbourne, 394 C ollins S treet, Melbourne V ic 3000, Aus tralia. Agenda: T o receive and cons ider the financial report and the reports of the directors and of the auditor for the financial year ended J une 30, 2009; to adopt the remuneration report of the company for the financial year J une 30, 2009; and to cons ider the election of directors .
J umbuc k E ntertainment L imited (AS X: J MB ) J umbuc k E ntertainment L imited (AS X: J MB )
B right Things plc (AIM: B GT)
B right T hings plc, Annual G eneral Meeting, O ct 29, 2009 B right T hings plc, Annual G eneral Meeting, O ct 29, 2009, at 10: 00 G MT T ime. L ocation: T he offices of F aegre & B ens on L L P , 7 P ilgrim S treet, L ondon E C 4V 6L B , U nited K ingdom. Agenda: T o is s ue s hares in the C ompany both pro-rata to exis ting s hareholders and to non-s hareholders ; to amend the articles of as s ociation of the C ompany to reflect recent changes in company legis lation in the UK . O penwave S ys tems Inc. R eports C ons olidated E arnings R es ults for F irs t Quarter E nded S eptember 30, 2009 O penwave S ys tems Inc. announced that revenues for the firs t fis cal quarter ended S eptember 30, 2009 were $49. 8 million, compared with $47. 9 million in the prior quarter ended J une 30, 2009 and $51. 0 million in the S eptember quarter in the preceding fis cal year. O n a G A AP bas is , net income for the firs t fis cal quarter ended S eptember 30, 2009 was $990, 000, or $0. 01 per s hare, compa red with a net los s of $3. 4 million, or $0. 04 per s hare, in the prior quarter and a net los s of $10. 5 million, or $0. 13 per s hare, in the S eptember quarter in the preceding year. O n a non-G AAP bas is , net los s for the firs t fis cal quarter ended S eptember 30, 2009 was $380, 000, or $0. 00 per s hare, compared with net los s of $278, 000 or $0. 00 per s hare, in the prior quarter and net los s of $1. 0 million, or $0. 01 per s hare, during the S eptember quarter of the prior year. O perating los s from continuing operations for the period was $1. 8 million a gains t $5. 5 million for s ame period a year ago. P re-tax los s from continuing operations was $3. 0 million agains t $12. 0 million for s ame period a year ago. Net los s from continuing operations was $3. 5 million or $0. 04 per diluted s hare agains t net los s from continuing operations was $12. 5 million or $0. 15 per diluted s hare for s ame period a year ago. Net cas h us ed in operating activities for the period was $8. 8 million agains t $2. 9 million for s ame period a year ago. P urchas es of property and equipment, net for the period was $607, 000 agains t $477, 000 for s ame period a year ago. Northgate T echnologies L imited, B oard Meeting, O ct 30, 2009 Agenda: T o cons ider and take on record the unaudited financial res ults for the quarter and half year ended S eptember 30, 2009. DigitalF X Interna tional, Inc. announced that it has received a letter from S us an Hantman dated O ctober 21, 2009, informing about her res ignation from the company's B oard of Directors . O n O ctober 30, 2009 Mr. Herbert T abin, a member of the B oard of Directors and S enior V ice P res ident - C orporate Development of V O IS , Inc. res igned his pos itions as an executive officer and director of the company. T here were no dis agreements between the company and Mr. T abin on any matter. T he B oard of Directors appointed Mr. Mark B . L ucky to the B oard to fill the vacancy res ulting from Mr. T abin's res ignation and appointed Mr. L ucky and S ecretary. Mr. L uck y has s erved as the C hief F inancial O fficer of IceW E B Inc. s ince March 2007. O n O ctober 29, 2009 the B oard of Directors of V OIS Inc. approved A rticles of Amendment to its Articles of Incorporation changing the par value of V O IS ' common s tock from $0. 001 per s hare to $0. 00001 per s hare. P urs uant to the provis ions of the F lorida B us ines s C orporations Act no s hareholder cons ent was required for this action.
Openwave S ys tems Inc . (Nas daqG S : OP W V)
Northgate Tec hnologies L imited (B S E : 590057) DigitalFX International, Inc . (OTC B B : DG F X) VOIS , Inc . (OTC B B : VOIS )
Northgate T echnologies L imited, B oard Meeting, Oct 30, 2009 S us an Hantman R es igns from the B oard of Directors of DigitalF X International, Inc. V OIS , Inc. Announces Management C hanges ; A pproves Articles of A mendment to Its Articles of Incorporation
Wizzard S oftware C orporation (AME X: WZE ) Tree.C om, Inc . (Nas daqG M:TR E E )
W izz ard S oftware C orporation has filed a S helf R egis tration in the amount of $0. 82 million. T ree. C om Inc. A nnounces Unaudited C ons olidated F inancial R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009
W iz zard S oftware C orporation has filed a S helf R egis tration in the amount of $0. 82 million. T ree. C om Inc. announced unaudited cons olidated financial res ults for the third quarter and nine months ended S eptember 30, 2009. F or the quarter, the company reported total revenue of $50, 716, 000, opera ting los s of $7, 442, 000, los s before income taxes of $7, 582, 000, net los s of $7, 400, 000 or $0. 68 per diluted s hare agains t total revenue of $50, 258, 000, operating los s of $22, 455, 000, los s before income taxes of $22, 624, 000, net los s of $22, 551, 000 or $2. 41 per diluted s hare a year ago. Adjus ted E B IT DA was a los s of $3. 5 million, which was a $4. 8 million improvement year-over-year, from the third quarter 2008 adjus ted E B IT DA los s of $8. 3 million. Unis erve C ommunications C orp. announced cons olidated unaudited earnings res ults for the firs t quarter ended A ugus t 31, 2009. F or the quarter, the company reported revenues of C A D 3, 986, 059 compared to C AD 5, 138, 741 for the s ame period a year ago. O perating income was C AD compared to opera ting los s of C AD 265, 134 for the s ame period a year ago. L os s before income taxes from continuing was C AD 213, 649 compared to C A D 1, 421, 510 for the s ame period a year ago. Net los s and comprehens ive los s for the period from continuing operations was C A D 238, 058 or C AD or C AD per s hare per s hare compared to C AD 1, 354, 310 or C AD 0. 06 per s hare for the s ame period a year ago. Net los s and comprehens ive los s for the period was C A D 238, 058 or C AD 0. 01 per s hare compared to C AD 1, 960, 037 or C AD 0. 08 per s hare for the s ame period a year ago. Net cas h provided by operating activities was C AD 102, 980 compared to C AD 825, 239 for the s ame period a year ago. P urchas e of property and equipment was C AD 49, 073 compared to C AD 46, 381 for the s ame period a year ago. P erfect W orld C o. , L td. announced the appointment of Mr. Daniel Dong Y ang as an independent director to the company's B oard of Directors . Mr. Daniel Dong Y ong has been a partner of S A IF P artners , s ince 2004 and s erved as a director from 2001 to 2004. He currently s erves as a director of s everal companies , s uch as MainOne Information T echnology C o. , L td. and Mobi Antenna T echnologies (S henz hen) C o. , L td. T he company als o announced that Mr. L ouis T . Hs ieh recently s tepped down from his pos ition as a member of the B oard of Directors of the company. United O nline Inc. announced that its B oard of Directors has declared a quarterly cas h dividend of $0. 10 per s hare. T he dividend is payable on November 30, 2009 to s hareholders of record on November 13, 2009.
Unis erve C ommunic ations C orp. (TS XV: US S )
U nis erve C ommunications C orp. Announces C ons olidated Unaudited E arnings R es ults for the F irs t Q uarter E nded Augus t 31, 2009
P erfec t World C o., L td. (Nas daqG S : P WR D)
P erfect W orld C o. , L td. Announces B oard C hanges
United Online Inc . (Nas daqGS :UNTD)
U nited O nline Declares Q uarterly Dividend P ayable on November 30, 2009
Figure 7c. Key Developments – continued Source. Capital IQ
Page 11
VALUATION Online Gaming companies lead market-cap charts: Fourteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 38 under US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$33.5 billion.
Market C ap (US D m)
Tencent Holdings L td. Netea s e. com Inc. S handa Interactive Entertainment L td. Modern Times Group Mtg A B Gree, Inc. IA C/InterA ctiveCorp. Perfect World Co., L td. Open Tex t Corp. S ohu. com Inc. Changy ou. com L imited G iant Interactive Group, Inc . Mix i, Inc. Chines e G amer Interna tional K ings oft Co. L td. V alueClic k Inc . NEOWIZ G ames Corporation United Online Inc. S hutterfly , Inc . NetDragon WebS oft, Inc. GungHo Online Entertainment, Inc. XING A G CDC Corp. S K Communica tions Co., L td. OA O R B C Information S y s tems GigaMedia L td. Gamania Digital Enterta inment Co., My riad Group A G The9 L imited Openw ave S y s tems Inc. DA DA S pA A c toz S oft Co., L td. GameOn Co L td. Tree.Com, Inc. Fluid Mus ic Canada, Inc. Y D Online Corp. Cy berplex Inc. TheS treet. com, Inc. Frogs ter Interactive Pic tures A G NeuLion Incorporated GeoS entric Oy j HanbitS oft, Inc. S park Netw orks , Inc . PNI Digita l Media Inc. Gra vity Co. , Ltd NeXplore Corporation DXN Holdings B hd Ngi G roup Inc. Webz en Inc. Eolith Co. L td. A Q Interac tiv e, Inc. Digita lTow n, Inc. S oc ialw is e, Inc. LookS mart, L td. Wiz z ard S oftw are Corporation Dolphin Digital Media, Inc. Northgate Technologies L imited Ex tens ions , Inc. Y nk K orea Inc. A cceleriz e New Media, Inc. Quepas a Corp. J umbuc k Entertainment L imited Lingo Media Corporation IA S Energy , Inc . MOK O. mobi L imited S pectrumDNA , Inc . is eemedia Inc. UOMO Media, Inc B right Things plc CornerWorld Corporation Magnitude Information S y s tems Inc. Worlds . com Inc . B ey ond Commerc e, Inc. DigitalPos t Interac tiv e, Inc. V OIS , Inc. B roa dWebA s ia Inc. S NA P Interac tiv e, Inc. B igs tring Corp. Wy nds torm Corporation LiveWorld Inc. Unis erve Communications Corp. B etaw ave Corporation CLICK ER Inc. K A B Dis tribution Inc . A s s ociated Media Holdings Inc . The Parent Compa ny China G atew ay Corporation S NM G lobal Holdings Dibz Internationa l, Inc. S oc ial Media V entures Inc. 0
Figure 8. Market Cap Ranking Source. Capital IQ
33542.7 4878. 1 3039. 9 2906. 3 2548. 3 2510. 1 2178. 9 2082. 2 2072. 7 1669. 3 1644. 0 1345. 8 1104. 8 1058. 1 802. 7 681. 9 659. 0 365. 3 326. 7 271. 0 269. 3 249. 1 247. 4 222. 0 217. 0 209. 8 209. 7 196. 2 172. 0 167. 7 105. 2 92. 1 87. 7 86. 4 85. 6 83. 6 73. 8 71. 5 71. 1 65. 8 62. 8 59. 3 56. 6 43. 6 41. 8 41. 6 38. 2 35. 9 32. 2 28. 5 27. 6 22. 1 22. 1 21. 7 21. 5 21. 3 17. 8 17. 4 15. 4 15. 3 14. 5 10. 9 8.5 8.3 7.3 6.8 6.6 5.9 5.7 5.4 5.2 4.2 3.9 3.3 2.5 2.3 2.0 1.8 1.2 1.1 0.9 0.7 0.6 0.4 0.2 0.0 0.0 0.0 0.0 500 1, 000 1,500 2, 000 2, 500 3, 000 3, 500 4, 000
Page 12
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 6.1x last week) (Figure 9). As the past week saw broad-based share price decline, we now see four companies (vs. five last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 38.6x, NexPlore Corporation (OTCPK:NXPC) at 27.0x, and Tencent Holdings Ltd. (SEHK:700) at 26.6x. The median of 1.7x is below last week’s 1.9x multiple. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples under 1.5x.
T E V/L T M R evenue (x)
60. 0
49.2
50. 0
40. 0
38.6
30. 0
27.0 26.6
20. 0
8.3 8.9 9.0
16.8 15.3 15.6 12.112.6 10.6
10. 0 A verage, 5.3 0. 0
5.3 5.9 3.7 3.7 4.3 4.54.6 2.6 2.6 2.8 3.1 3.2 3.3 1.3 1.4 1.6 1.7 2.0 2.0 2.2 2.4 1.1 1.1 1.2 1.3 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.9 0.9 1.0 1.1
7.3 7.6
Figure 9. TEV/Revenue Ranking Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 12.6x (vs. 16.3x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.9x revenue (vs. 8.7x last week) (Figure 11). Ten of the companies are Canadian (average 4.1x revenue).
(x)
(x)
OTCBB
OTCPK
NasdaqGM
KOSE NasdaqGS
Switzerland
# Companies
18 1
3 2 11 4 5
2 2
4 1 2
1 1
6 14 1
1 5
1 1 1
1
# Companies
1
10 38
3
2
2
6
10
1
1
8
1
1
1
1
1
1
88
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
Grand Total
GTSM
HLSE
SEHK
OSE
RTS
TSE
Germany
OM
CM
Malaysia
Japan
China
United
Finland
Hong Kong
Canada
Australia
Taiwan
Sweden
Russia
XTRA ASX
AMEX
NYSE
TSXV
United
KLSE
TSX
BSE
South
SWX
India
AIM
Italy
L iveWorld Inc . C hina G atewa y C orporation O AO R B C Information S y s tems AQ Intera ctive, Inc . T heS treet.com, Inc . S NAP Intera ctive, Inc. G a meO n C o Ltd. T he P a rent C ompany U nis erve C ommunications C orp. N orthgate T echnologies L imited C LIC K E R Inc. O penwave S y s tems Inc . T ree.C om, Inc. J umbuc k E nterta inment L imited IAC /InterAc tiveC orp. Ac toz S oft C o. , Ltd. C DC C orp. P erfect World C o., Ltd. C y berplex Inc . DXN Holdings B hd G igaMedia Ltd. H anbitS oft, Inc . B ey ond C ommerc e, Inc. DADA S pA United O nline Inc . S N M G loba l Holdings S pa rk N etwork s , Inc . S hutterfly , Inc . V alueC lic k Inc . S K C ommunica tions C o., Ltd. G a mania Digital E ntertainment C o., Ltd. Y nk K orea Inc . Y D O nline C orp. Modern T imes G roup Mtg AB G ungHo O nline E ntertainment, Inc. NetDra gon WebS oft, Inc . E olith C o. Ltd. C ornerWorld C orporation P N I Digital Media Inc. O pen T ex t C orp. NeuLion Inc orporated S ohu.com Inc . N E O WIZ G ames C orporation My riad G roup AG XIN G AG is eemedia Inc . Wiz z ard S oftware C orporation S ocial Media V entures Inc . Acceleriz e New Media , Inc . C hangy ou.com L imited DigitalP os t Intera ctive, Inc. F rogs ter Intera ctiv e P ictures AG K ings oft C o. Ltd. Lingo Media C orporation UO MO Media, Inc Mix i, Inc . MO K O .mobi L imited G eoS entric O y j As s ociated Media Holdings Inc . F luid Mus ic C a nada , Inc. G ree, Inc . C hines e G amer Interna tional T encent Holdings Ltd. NeX plore C orporation Dolphin Digital Media, Inc. B igs tring C orp.
Average TEV/LTM Revenue - By Exchange
14.0 12.6 12.0 12.1 12.1 10.0 8.0 6.0 4.0 2.0 0.0 9.0 6.5 6.3 6.2 5.6 5.5 3.7 3.3 2.7
14.0 12.0 10.0 8.0 6.0 4.0
Average TEV/LTM Revenue - By Country
12.1
7.5 6.9 6.3 5.6 5.5 5.4
4.1
2.0 1.7 1.7
1.6 0.9 0.7
3.3 1.7 1.7 0.9 0.7 0.7 0.3 0.0 0.0 0.0
0.3 0.3
2.0
0.0 0.00.0
0.0
Page 13
TEV/EBITDA (LTM) averages 10.6x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 10.6x LTM EBITDA (vs. 11.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) 34.8x multiple (Figure 12). Twenty-one companies have EBITDA multiples under 7x. The median multiple is 8.6x (vs. 9.9x last week).
T E V/L T M E B IT DA (x)
40. 0 34. 8 35. 0 29. 8 30. 0 25. 0 19. 7 20. 0 15. 0 A verage, 10.6 10. 0 4. 5 5. 0 0. 4 O AO R B C Information S y s tems 0. 0 0. 7 S NAP Interac tive, Inc . 0. 9 1. 1 J umbuck E ntertainment L imited G ameO n C o L td. 1. 2 P erfec t World C o. , L td. 2. 8 NE O WIZ G ames C orporation 4. 7 4. 9 5. 1 5. 3 6. 6 6. 8 7. 0 7. 0 7. 4 7. 6 8. 6 8. 9 9. 0 9. 7 10. 2 10. 5 13. 2 11. 9 12. 1 12. 2 12. 8 17. 2 23. 6 25. 9 26. 5
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
P NI Digital Media Inc .
S K C ommunic ations C o. , Ltd.
Modern T imes G roup Mtg AB
C hines e G amer International
C hangy ou. c om L imited
DXN Holdings B hd
T heS treet. c om, Inc .
C DC C orp.
U nited O nline Inc .
O pen T ex t C orp.
S park Network s , Inc .
NetDragon WebS oft, Inc.
IAC /InterAc tiveC orp.
S ohu. c om Inc .
Y D O nline C orp.
V alueC lic k Inc .
C yberplex Inc.
O penwave S y s tems Inc.
G ree, Inc .
XING AG
Mix i, Inc .
Figure 12. TEV/EBITDA Ranking Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 0.7x. On a geographic basis, the United States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.5x EBITDA).
Average TEV/LTM EBITDA - By Exchange
25.0 23.6 20.0 15.0 (x) 10.0 5.0 GTSM SEHK TSE KOSE 0.0 TSXV OM 18.617.8 15.6
Actoz S oft C o. , L td.
Average TEV/LTM EBITDA - By Country
20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 18.6 15.6 15.6 13.5 13.5 12.2 9.7
13.5 12.2 12.1
8.9 8.0 6.8 6.6
(x)
5.3 5.1 4.7
K ings oft C o. L td.
8.2 6.8 6.8 5.1 1.1 0.4 0.0 Russia 1 Switzerland 1
1.1 ASX
0.7 0.4 OTCBB RTS
NasdaqGM
NasdaqGS
OSE
CM
XTRA
AMEX
KLSE
TSX
Germany
Japan
Canada
Hong Kong
Malaysia
China
Taiwan
United States
South Korea
Italy
# Companies
4
2
5
6
2
1
3
1
14
1
4
2
1
5
2
18
1
# Companies
3
8
6
2
10
1
1
10
1
38
1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
Australia
Sweden
2
H anbitS oft, Inc.
Y nk K orea Inc.
S hutterfly , Inc.
DADA S pA
Page 14
P/E (LTM) averages 18.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.8x LTM EPS (vs. 19.0x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 68.5x multiple (Figure 15). Fourteen companies have P/E multiples under 10x. The median is 11.3x.
P /E L T M (x)
80.0 70.0 60.0 50.0 39.2 40.0 30.0 20.0 10.0 0.0 0.0 0.0 G ravity C o., Ltd W ebz en Inc. 2.0 2.2 G iant Interactive G roup, Inc. S handa Interactive E ntertainment Ltd. A verage, 18.8 6.9 7.5 8.6 13.3 11.2 11.3 12.3 9.1 9.2 10.7 14.9 15.6 16.2 18.0 20.0 21.1 27.7 35.5 45.4 58.6 54.0 65.4 68.5
2.2 2.8 3.0 T he9 Limited Neteas e.com Inc. P erfect World C o., Ltd.
4.0 4.1 J umbuck E ntertainment Limited S NAP Interactive, Inc.
NE O W IZ G ames C orporation
G amania Digital E ntertainment C o., Ltd.
G ungH o O nline E ntertainment, Inc.
Modern T imes G roup Mtg AB
C hines e G amer International
DXN H oldings B hd
C hangy ou.com Limited
G ameO n C o Ltd.
O pen T ex t C orp.
NetDragon W ebS oft, Inc.
Figure 15. P/E Ranking Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 12.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 12.7x earnings (Figure 17). Ten of the companies are Canadian (average 26.5x EPS). Average P/E - By Country
46.8
Average P/E - By Exchange
70.0 60.0 50.0
(x)
58.6
(x)
40.0 30.0 20.0 10.0
42.9
34.3
28.9
28.6 18.0 16.2 15.6 12.0 10.9 7.5 OTCBB 6.9 KLSE
4.1 ASX
2.0 NasdaqGM 0.0 NYSE
Germany
Canada
Japan
Malaysia
China
United States
GTSM
Taiwan
South Korea
NasdaqGS
Australia
SEHK
KOSE
OSE
TSE
OM
# Companies
1
5
3
2
2
6
2
1
18
14
4
1
2
1
5
# Companies
6
2
10
3
1
10
38
8
1
2
Switzerland 1
Sweden
XTRA
AMEX
TSX
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Italy 1
0.0
50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0
28.9 26.5
21.9 15.6 13.9 12.7 12.0 6.9 4.1 0.0 0.0
T encent H oldings Ltd.
C y berplex Inc.
G igaMedia Ltd.
S park Network s , Inc.
IAC /InterActiveC orp.
S ohu.com Inc.
Y D O nline C orp.
Worlds .com Inc.
H anbitS oft, Inc.
Actoz S oft C o., Ltd.
K ings oft C o. Ltd.
G ree, Inc.
XING AG
Mix i, Inc.
Page 15
UPCOMING EVENTS
E arnings C alendar
C ompany
United Online Inc. (NasdaqGS:UNTD) Spark Networks, Inc. (AMEX:LOV) Cyberplex Inc. (TSX:CX)
Figure 18. Earnings Calendar Source. Company reports
Date
Nov-04-2009 Nov-05-2009 Nov-10-2009
Time
5:30 p.m. EST 4:30 p.m. EST 4:30 p.m. EST
Quarter
Q3/09 Q3/09 Q3/09
C onf C all Details
877-718-5098 800-723-6604 888-892-3255
Page 16
C omparable C ompany Analys is > Web 2.0
Pric e P erformanc e
C ompany Name A ccelerize New Media, Inc. A ctoz S oft C o. , L td. A Q Interactive, Inc. A s s ociated Media H oldings Inc. B igs tring C orp. B eta wave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebA s ia Inc. C DC C orp. C ha ngyou.com Limited C hina G a tewa y C orporation C hines e G a mer International C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz Interna tional, Inc. DigitalP os t Intera ctive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C anada, Inc. F rogs ter Intera ctive P ictures AG G amania Digita l E ntertainment C o., L td. G ameO n C o L td. G eoS entric Oyj G ia nt Interactive G roup, Inc. G igaMedia L td. G ra vity C o., Ltd G ree, Inc. G ungH o Online E ntertainment, Inc. H anbitS oft, Inc. IAC /InterA ctiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment Limited K AB Dis tribution Inc. K ings oft C o. L td. L ingo Media C orpora tion L iveW orld Inc. L ookS mart, L td. Ma gnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi L imited Myriad G roup AG NE O W IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e. com Inc. NeuLion Incorpora ted NeXplore C orpora tion Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwa ve S ys tems Inc. P erfect W orld C o., Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S ha nda Interactive E nterta inment L td. S hutterfly, Inc. S K C ommunications C o. , L td. S NA P Intera ctive, Inc. S NM G loba l H oldings S ocial Media V entures Inc. S ocialwis e, Inc. S ohu.com Inc. S pa rk Networks , Inc. S pectrumDNA, Inc. T encent H oldings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T ree.C om, Inc. U nis erve C ommunica tions C orp. U nited O nline Inc. U OMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds .com Inc. W ynds torm C orpora tion XING A G Y D Online C orp. Y nk K orea Inc. H igh L ow Average Media n C urrenc y US D KR W JPY US D US D US D US D GB P US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AU D C AD HK D C AD US D US D US D JPY SEK AU D C HF KR W HK D US D C AD US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W Tic ker AC L Z A052790 3838 AS MH BSGC B W AV B Y OC AIM:B G T BWBA C H IN.A C Y OU CGWY G T S M:3083 CLK Z CW R L T S X: C X C M:DA DXN DIB Z DG LP DG T W DP DM A041060 E XT I T S X: F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E :3632 3765 A047080 IA C I IA S A. E IE E AS X: J MB T S X: K AB 3888 T S XV :LM LV W D LO OK MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X: NL N NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S F LY A066270 S TVI S NMN S MV I S CLW S O HU LO V S P XA 700 K IDS . Q NC T Y TS CM TR E E T S XV :US S UNT D UO MO V CLK V O IS W ZE N W ZE W DDD W Y ND O1B C A052770 A023770 E xc hange OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B A IM OT C P K Nas da qG S Nas da qG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E H LS E NY S E Nas da qG S Nas da qG M TS E OS E K OS E Nas da qG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Nas da qG M OT C B B TS E OM AS X S WX K OS E S E HK Nas da qG S TS X OT C P K TS E BSE Nas da qG S Nas da qG S Nas da qG S T S XV OT C B B R TS Nas da qG S Nas da qG S K OS E OT C B B OT C P K OT C P K OT C B B Nas da qG S A ME X OT C B B S E HK OT C P K Nas da qG S Nas da qG M Nas da qG M T S XV Nas da qG S OT C B B Nas da qG S OT C B B Nas da qG M A ME X OT C B B OT C P K XT R A K OS E K OS E US D Market C ap ($m) 15.4 105.2 28.5 0.4 2.0 0.9 4.2 5.9 2.5 249.1 1, 669.3 0.0 1, 104.8 0.7 5.7 83.6 167.7 41.6 0.0 3.9 27.6 21.5 32.2 17.8 86.4 71.5 209.8 92.1 65.8 1, 644.0 217.0 43.6 2, 548.3 271.0 62.8 2, 510.1 8.5 6.8 14.5 0.6 1, 058.1 10.9 1.2 22.1 5.4 1, 345.8 2, 906.3 8.3 209.7 681.9 326.7 4, 878.1 71.1 41.8 38.2 21.3 2, 082.2 172.0 2, 178.9 56.6 15.3 222.0 3, 039.9 365.3 247.4 2.3 0.0 0.0 22.1 2, 072.7 59.3 7.3 33,542. 7 0.2 196.2 73.8 87.7 1.1 659.0 6.6 802.7 3.3 35.9 21.7 5.2 1.8 269.3 85.6 17.4 C urrent P ric e 0.55 14, 500 46, 800 0.01 0.03 0.03 0.08 0.01 0.03 2.35 30.35 0.00 426.00 0.01 0.06 1.39 7.07 0.64 0.00 0.05 1.01 0.40 530.00 0.40 1.79 19.05 44.80 85, 200 0.05 7.26 3.98 1.57 5, 090 211, 500 3, 420 19.02 0.12 0.15 0.34 0.01 7.51 0.95 0.04 1.29 0.01 781,000.00 307.10 0.09 4.89 38,600.00 4.79 37.69 0.70 0.75 27,550.00 29.30 36.93 2.06 43.24 1.80 1.20 1.60 45.20 14.24 7,050.00 0.21 0.00 0.01 0.50 54.07 2.88 0.15 143 0.01 7.82 2.41 8.05 0.05 7.86 0.08 9.21 0.00 3.03 0.43 0.10 0.10 34.88 6,810.00 3,900.00 1 Wk 0. 0% -11.0% -3.3% 0. 0% -10.5% -20.0% -25.5% 10.0% 0. 0% -4.9% -6.0% -86.7% -0.5% 6. 3% 0. 0% 0. 0% -5.4% 1. 6% 20.0% -9.1% -49.5% -18.4% -7.8% 60.0% -0.6% -4.3% -8.3% -3.6% 0. 0% -4.0% -11.9% -3.1% 1. 0% -4.3% -3.9% -1.7% 14.3% 3. 6% 0. 0% -50.0% 0. 0% -5.0% -2.4% -1.5% 20.0% 6. 0% -5.7% 13.9% 8. 9% -4.7% -6.6% 0. 7% -2.8% 7. 1% -9.1% -21.7% -6.3% -24.0% -5.7% 6. 5% -11.1% 0. 0% -3.0% -3.3% -9.6% -40.0% 0. 0% -22.0% -13.8% -9.8% 12.5% 50.0% -3.8% 0. 0% -2.9% -13.3% 6. 5% 25.0% -9.4% -24.0% -27.5% -42.9% 3. 8% 2. 4% 0. 0% 0. 0% -4.2% -12.1% -9.3% 60.0% -86.7% -4.9% -3.3% 1 Mth -8.3% -19.4% -6.3% -35.7% -5.6% -60.0% -39.3% 0.0% -87.0% -4.9% -6.7% -86.7% -9.4% -22.7% 0.0% 6.9% 4.8% 5.8% NM -10.7% -49.5% 0.0% -27.4% 100.0% 27.9% 6.5% -6.4% -3.8% 0.0% 10.2% -15.0% -11.8% 12.9% -10.2% -17.8% -0.8% 0.0% 11.5% -11.7% -99.2% 8.7% -9.5% 14.3% 12.2% 33.3% 39.0% 5.9% 38.5% 6.8% -9.5% -5.0% -14.2% -30.0% 7.1% 9.5% -32.0% -0.5% -17.9% -3.8% -6.2% -20.0% 6.7% -6.0% -9.0% -20.3% -40.0% 0.0% -88.3% -18.0% -16.3% 29.1% 15.4% 16.4% -42.1% 3.1% -17.7% 3.2% 25.0% 1.9% -37.2% -27.7% 0.0% 18.8% -6.5% -16.7% 0.0% -1.8% -20.9% 0.0% 100.0% -99.2% -7.9% -5.3% 3 Mth -1.8% -39.8% -21.7% -35.7% 30.8% -54.3% -77.2% -15.6% -87.0% -24.7% -19.7% -86.7% 3.8% 23.2% 20.0% -14.7% 15.8% 58.8% 20.0% 4.2% -32.7% -4.8% -35.4% 100.0% 88.4% 43.2% -24.5% -20.8% 25.0% -13.6% -23.0% -6.5% 30.7% 0.5% -23.0% 3.8% -33.3% 107.1% -10.5% -99.2% -13.0% -17.4% 60.0% -4.0% 84.6% 15.9% 11.9% 38.5% 29.7% 14.0% -24.6% -16.8% -14.6% 7.1% -16.9% -25.2% -4.4% -20.2% 13.8% 16.1% 0.0% 52.4% -10.7% -6.0% -26.0% 5.0% -70.0% -96.9% -24.2% -14.0% 16.6% 7.1% 29.7% -30.0% -17.1% 16.4% -16.0% -50.0% -13.1% -52.5% -20.8% -21.6% -9.8% -12.2% -23.1% 0.0% 26.3% -26.6% -22.3% 107.1% -99.2% -5.7% -12.2% 6 Mth 25.0% 0. 7% -0.3% 500.0% 36.0% -75.4% -94.1% -31.3% -91.4% 52.6% -6.3% 0. 0% 91.0% 88.9% -57.1% -18.7% 5. 4% 54.9% -88.0% 212.5% -59.6% -29.8% -42.1% 166.7% 225.5% 124.1% 28.0% -11.8% 25.0% -14.6% -40.6% 60.2% 84.4% 53.6% -24.3% 19.1% -53.8% 20.8% -15.0% -98.6% 98.2% 8. 0% -33.3% -7.9% -7.7% 72.4% 34.4% 28.6% -5.0% 29.7% -11.3% 17.7% -6.7% 7. 1% -25.1% -26.4% 19.6% 63.5% 125.6% 16.1% 23.7% 62.4% -10.5% 12.8% -25.0% -67.7% -50.0% 17.0% 2. 0% -2.4% 0. 3% -40.0% 94.6% -44.0% -17.3% 14.8% -31.5% 25.0% 9. 2% -49.3% -10.1% 25.0% 10.9% -25.9% -54.5% 11.1% 16.7% -22.5% -36.8% 500.0% -98.6% 14.1% 0. 7% 1 Yr 37.5% 52.6% 5.1% 200. 0% 36.0% -85. 5% -95. 7% 12.2% -97. 8% 104. 3% NM -80. 0% 407. 1% -97. 9% -70. 0% 247. 5% -4.5% 86.8% -97. 6% 42.9% -59. 6% -54. 0% -3.6% 300. 0% 411. 4% 349. 3% 213. 3% -15. 6% 25.0% 8.8% -31. 4% 106. 6% NM 101. 6% 18.5% 14.3% 33.3% 20.8% -20. 0% -99. 4% 270. 0% -20. 2% -50. 0% -26. 7% 0.0% 9.8% 61.2% 125. 0% -30. 1% 432. 4% 97.9% 73.5% 27.3% -21. 1% -63. 8% -61. 4% 32.1% 178. 4% 140. 4% -10. 0% -47. 8% 6.7% 84.1% 100. 3% 35.6% -47. 5% -99. 2% -99. 6% -73. 0% 4.4% -1.7% -37. 5% 175. 2% -99. 2% -39. 8% -33. 4% 259. 4% -72. 2% 6.9% -60. 0% 43.2% -46. 7% 203. 0% -46. 3% -58. 3% -50. 0% 44.4% 14.5% -33. 8% 432. 4% -99. 6% 35.8% 6.7% 52 Week -20.3% -59.7% -43.6% -55.0% -40.4% -89.0% -95.8% -44.3% -99.0% -40.1% -37.3% -93.3% -17.9% -97.9% -87.2% -30.2% -13.7% -8.0% -97.6% -49.5% -71.1% -57.9% -54.3% -60.4% -16.7% -11.4% -34.9% -43.9% -16.7% -24.1% -48.5% -40.3% -4.9% -24.4% -48.5% -10.6% -57.1% -9.4% -32.0% -99.4% -20.7% -34.9% -84.0% -29.9% -60.0% -0.4% -9.7% -10.0% -34.8% -14.0% -33.0% -22.3% -46.2% -48.3% -68.3% -64.3% -10.9% -34.2% -14.4% -22.4% -48.9% -5.9% -30.5% -21.5% -45.1% -80.6% -99.3% -99.8% -75.0% -25.2% -8.6% -66.7% -5.9% -99.3% -53.0% -40.8% -38.4% -50.0% -16.9% -92.8% -33.9% -82.6% -35.3% -75.1% -58.3% -80.4% -8.2% -45.1% -55.2% -0.4% -99.8% -45.2% -40.8%
780.0
Figure 19. Price Performance Source. Capital IQ
Page 17
C omparable C ompany Analys is > Web 2.0
Valuation Multiples P rimary E xc hange
OTCB B K OS E TS E OTCP K OTCB B OTCB B OTCB B AIM OTCP K N as da qG S N as da qG S OTCP K GTS M OTCB B OTCB B TS X CM K LS E OTCP K OTCB B OTCB B OTCB B K OS E OTCP K TS X XT R A GTS M TS E H LS E NY S E N as da qG S N as da qG M TS E OS E K OS E N as da qG S OTCB B T S XV AS X TS X S E HK T S XV OTCP K N as da qG M OTCB B TS E OM AS X SWX K OS E S E HK N as da qG S TS X OTCP K TS E BS E N as da qG S N as da qG S N as da qG S T S XV OTCB B R TS N as da qG S N as da qG S K OS E OTCB B OTCP K OTCP K OTCB B N as da qG S AME X OTCB B S E HK OTCP K N as da qG S N as da qG M N as da qG M T S XV N as da qG S OTCB B N as da qG S OTCB B N as da qG M AME X OTCB B OTCP K XT R A K OS E K OS E
C ompany Name
Accelerize New Media, Inc. Actoz S oft C o., Ltd. AQ Intera ctive, Inc. As s ocia ted Media Holdings Inc. B igs tring C orp. B etawave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebAs ia Inc. C DC C orp. C hangyou.com Limited C hina G atewa y C orpora tion C hines e G amer Interna tional C L IC K E R Inc. C ornerW orld C orporation C yberplex Inc. DA DA S pA DXN Holdings B hd Dibz Interna tiona l, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C a nada, Inc. F rogs ter Interactive P ictures A G G amania Digital E ntertainment C o., Ltd. G ameO n C o Ltd. G eoS entric Oyj G iant Interactive G roup, Inc. G igaMedia Ltd. G ravity C o., Ltd G ree, Inc. G ungH o O nline E nterta inment, Inc. Ha nbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment Limited K A B Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orpora tion LiveW orld Inc. LookS ma rt, L td. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MOK O .mobi Limited Myriad G roup AG NE OW IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e.com Inc. NeuLion Incorporated NeXplore C orporation Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o., Ltd. P N I Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S N AP Interactive, Inc. S N M G lobal Holdings S ocial Media V entures Inc. S ocialwis e, Inc. S ohu.com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T ree.C om, Inc. Unis erve C ommunications C orp. United Online Inc. UO MO Media, Inc V a lueC lick Inc. V O IS , Inc. W ebzen Inc. W izzard S oftware C orporation W orlds .com Inc. W ynds torm C orporation XIN G AG Y D Online C orp. Y nk K orea Inc. High Low Average Median
S ec tor
Direct Marketing G aming G aming Mobile Ins ta nt Mes s aging Media S ocial Networking S ocial Networking S ocial Networking G aming G aming Mobile G aming Direct Marketing C ontent A dvertis ing S ocial Networking S ocial Networking S NS Apps C ontent S ocial Networking S ocial Networking G aming C ontent Media G aming G aming G aming Mobile G aming G aming G aming S ocial Networking Media G aming Media V ideo C ontent S ocial Networking C ontent G aming L earning S ocial Networking Direct Marketing S ocial Networking S ocial Networking Media S ocial Networking Mobile G aming G aming G aming V ideo C ontent Media Direct Marketing C ollabora tion Mobile G aming Digita l Ima ging S ocial Networking Media G aming Digita l Ima ging S earch Dating Media S ocial Networking S ocial Networking G aming S ocial Networking Media P orta l Media G aming Media P orta l S ocial Networking Media Media Media S ocial Networking G aming P odca s ting C ontent C ontent S ocial Networking G aming G aming
C ountry
U nited S ta tes S outh K orea J apan U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong C hina U nited S ta tes T a iwa n U nited S ta tes U nited S ta tes C ana da Italy Mala ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes G erma ny T a iwa n J apan F inland C hina T a iwa n S outh K orea J apan J apan S outh K orea U nited S ta tes C ana da C ana da Aus tra lia C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apan S weden Aus tra lia S witzerla nd S outh K orea C hina C hina C ana da U nited S ta tes J apan India C ana da U nited S ta tes C hina C ana da U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G erma ny S outh K orea S outh K orea
Ticker
AC LZ A052790 3838 AS MH BSGC B W AV B YOC AIM:B G T BWBA C HIN.A C Y OU CGW Y G T S M:3083 C LK Z CW R L T S X: C X C M:DA DXN DIB Z DG L P DG T W DP DM A041060 E XT I T S X:F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS A.E IE E AS X:J MB T S X:K AB 3888 T S XV : LM LV W D L OOK MA G Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X:NL N NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S CLW S O HU L OV S P XA 700 K IDS .Q NC T Y TS CM TREE T S XV :US S U NT D UO MO V CLK V OIS W ZE N W ZE W DDD W Y ND O1B C A052770 A023770
US D Market C ap ($m)
15.4 105.2 28.5 0.4 2.0 0.9 4.2 5.9 2.5 249.1 1,669.3 0.0 1,104.8 0.7 5.7 83.6 167.7 41.6 0.0 3.9 27.6 21.5 32.2 17.8 86.4 71.5 209.8 92.1 65.8 1,644.0 217.0 43.6 2,548.3 271.0 62.8 2,510.1 8.5 6.8 14.5 0.6 1,058.1 10.9 1.2 22.1 5.4 1,345.8 2,906.3 8.3 209.7 681.9 326.7 4,878.1 71.1 41.8 38.2 21.3 2,082.2 172.0 2,178.9 56.6 15.3 222.0 3,039.9 365.3 247.4 2.3 0.0 0.0 22.1 2,072.7 59.3 7.3 33,542.7 0.2 196.2 73.8 87.7 1.1 659.0 6.6 802.7 3.3 35.9 21.7 5.2 1.8 269.3 85.6 17.4 33,542.7 0.0 780.0 41.8
TE V/L TM R evenue
4.6x 0.7x 0.1x 12.6x 49.2x 0.9x 0.7x 5.3x 0.0x 16.8x 0.3x 2.4x 0.7x 0.9x 0.7x 5.9x 38.6x 2.2x 15.3x 7.3x 1.3x 0.2x 12.1x 0.8x 15.6x 2.0x 0.8x 0.6x 3.7x 0.5x 7.6x 8.3x 0.0x 9.0x 1.7x 10.6x 3.3x 3.2x 2.0x 2.8x 27.0x 0.3x 2.6x 0.4x 0.7x 2.6x 0.0x 1.1x 1.3x 0.2x 1.1x 4.5x 3.1x 1.1x 26.6x 0.2x 0.1x 0.4x 0.2x 1.0x 8.9x 1.2x 4.3x 3.7x 1.6x 1.4x 49.2x 0.0x 5.3x 1.7x
TE V/ NTM R evenue
0.1x 0.7x 4.4x 15.7x 0.6x 0.8x 1.4x 14.6x 0.7x 6.8x 0.6x 0.5x 6.2x 7.7x 1.7x 1.4x 2.3x 0.4x 3.4x 2.2x 1.0x 1.1x 2.7x 20.2x 0.2x 0.2x 0.4x 1.0x 2.8x 1.2x 20.2x 0.1x 3.4x 1.3x
TE V/L TM E B ITDA
2. 8x 9. 7x 8. 6x 29.8x 6. 6x 6. 8x 5. 1x 7. 4x 0. 9x 25.9x 8. 9x 34.8x 10.5x 1. 1x 17.2x 26.5x 12.2x 12.1x 7. 0x 10.2x 11.9x 1. 2x 23.6x 0. 4x 9. 0x 19.7x 0. 7x 7. 0x 5. 3x 4. 7x 4. 5x 4. 9x 12.8x 7. 6x 13.2x 34.8x 0. 4x 10.6x 8. 6x
TE V/NTM E B ITDA
6.8x 7.1x 25.6x 5.1x 5.8x 3.7x 12.4x 4.8x 1.2x 11.9x 24.5x 11.9x 3.8x 8.6x 4.0x 6.4x 7.1x 5.7x 5.6x 6.1x 48.3x 12.8x 8.4x 3.9x 4.9x 8.0x 4.2x 48.3x 1.2x 9.6x 6.4x
P /L TM E P S
14.9x 11.3x 39.2x 7.5x 6.9x 18.0x 9.2x 2.0x 8.6x 0.0x 54.0x 58.6x 11.2x 10.7x 4.1x 21.1x 65.4x 15.6x 35.5x 13.3x 2.8x 45.4x 3.0x 2.2x 4.0x 12.3x 16.2x 68.5x 2.2x 0.0x 20.0x 27.7x 9.1x 68.5x 0.0x 18.8x 11.3x
P /NTM E P S
8.4x 9.7x 23.4x 8.3x 15.9x 1.6x 15.2x 8.0x 24.6x 32.8x 3.0x 15.9x 57.0x 15.1x 10.6x 15.1x 1.2x 13.1x 51.5x 13.7x 14.4x 6.5x 12.4x 14.5x 56.5x 51.8x 6.0x 16.6x 57.0x 1.2x 18.7x 14.5x
P /TangB V
1.6x 0.5x 0.2x 99.6x 8.7x 19.0x 3.3x 0.9x 2.9x 8.1x 8.8x 2.7x 1.1x 54.3x 0.3x 1.8x 0.0x 25.0x 20.2x 1.8x 1.2x 5.6x 1.3x 0.0x 5.9x 19.5x 0.5x 0.8x 8.9x 8.5x 17.9x 1.7x 0.8x 5.4x 0.7x 2.4x 1.4x 19.8x 0.8x 2.2x 1.3x 3.8x 60.6x 72.8x 30.5x 0.1x 1.0x 1.1x 4.2x 21.1x 0.0x 8.6x 2.8x 0.8x 99.6x 0.0x 10.6x 2.5x
Figure 20. Valuation Comparison Source. Capital IQ
Page 18
C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Name United S tates C a na da C hina S outh K orea J a pa n T a iwa n Aus tralia G erma ny S witzerla nd Hong K ong F inla nd Ita ly United K ingdom India S weden R us s ia Ma lays ia Norwa y G rand Total 38 10 10 8 6 3 2 2 1 1 1 1 1 1 1 1 1 1 89 US D Market C ap ($m) C hina U nited S ta tes J a pan S weden C anada T a iwa n S outh K orea G ermany Hong K ong Ita ly R us s ia S witzerla nd F inland Malays ia India Aus tralia U nited K ingdom Norway G rand Total 49, 633. 4 5, 811. 3 3, 871. 5 2, 974. 2 2, 488. 2 1, 733. 6 1, 527. 4 317. 0 294. 6 165. 4 160. 9 92. 0 65. 9 39. 8 31. 0 22. 1 6. 0 0. 1 69,234.6 Avg US D Market C ap ($m) C hina S weden J apan T aiwan Hong K ong C anada S outh K orea Ita ly R us s ia G ermany U nited S ta tes S witzerla nd F inland Malays ia India Aus tralia U nited K ingdom Norway G rand Total 4,963. 3 2,974. 2 645. 3 577. 9 294. 6 248. 8 190. 9 165. 4 160. 9 158. 5 152. 9 92. 0 65. 9 39. 8 31. 0 11. 0 6. 0 0. 1 777.9 US D L TM Total R ev ($m) C hina United S tates S weden C a na da S outh K orea J a pa n T a iwa n Hong K ong Ita ly R us s ia India Ma lays ia G erma ny S witzerla nd Aus tralia F inla nd Norwa y United K ingdom G rand Total 4,152. 4 3,887. 3 1,982. 6 1,015. 0 707. 3 634. 4 385. 8 361. 6 242. 6 156. 2 82. 8 77. 1 68. 7 40. 0 17. 8 5. 5 2. 3 0. 0 13,819.5 US D L TM Total E B ITDA ($m) C hina S weden United S tates C a na da J a pa n S outh K orea T a iwa n Ita ly Hong K ong R us s ia G erma ny Ma lays ia Aus tralia S witzerla nd Norwa y United K ingdom F inla nd India G rand Total 2, 070. 2 304. 6 290. 0 200. 0 186. 0 121. 9 59. 8 31. 9 25. 1 20. 4 12. 5 11. 1 4. 5 0. 8 -1. 1 -2. 7 -17. 5 -41. 4 3,276.1 E B ITDA % C hina A us tralia T aiwan J apan S weden Mala ys ia Italy R us s ia S outh K orea Hong K ong S witzerla nd C anada G ermany U nited S ta tes India Norway U nited K ingdom F inland G rand Total 48. 8% 42. 8% 37. 1% 24. 2% 15. 4% 14. 4% 13. 1% 13. 1% 12. 7% 6. 9% 1. 9% -8. 5% -9. 1% -21. 9% -50. 0% -50. 6% NA NA 5.1%
Figure 21. Comparison by Country Source. Capital IQ
C omparable C ompany Analys is > Web 2.0
S ummary by E xc hange
C ompany Name OT C B B Na s daqG S OT C P K K OS E TS E Na s daqG M TS X T S XV S E HK AME X AS X XT R A GTS M SWX HL S E CM BS E NY S E OS E AIM OM RTS K LS E OT C NO G rand Total 18 14 11 6 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 89 US D Market C ap ($m) S E HK Nas da qG S TS E OM NY S E K OS E GTS M XT R A OS E Nas da qG M TS X OT C B B CM R TS SWX T S XV AME X HLS E OT C P K K LS E BS E AS X AIM OT C NO G rand Total 31, 520. 4 24, 385. 7 3, 569. 2 2, 974. 2 1, 750. 4 1, 437. 0 1, 430. 0 317. 0 302. 3 279. 7 243. 6 230. 9 165. 4 160. 9 92. 0 76. 6 68. 5 65. 9 65. 8 39. 8 31. 0 22. 1 6. 0 0. 1 69,234.6 Avg US D Market C ap ($m) S E HK OM NY S E Nas da qG S GTS M TSE OS E K OS E CM R TS XT R A SWX HLS E TSX Nas da qG M K LS E AME X BS E T S XV OT C B B AS X AIM OT C P K OT C NO G rand Total 10,506. 8 2,974. 2 1,750. 4 1,741. 8 715. 0 713. 8 302. 3 239. 5 165. 4 160. 9 158. 5 92. 0 65. 9 60. 9 55. 9 39. 8 34. 2 31. 0 19. 1 12. 8 11. 0 6. 0 6. 0 0. 1 777.9 US D L TM Total R ev ($m) OM S E HK Na s daqG S CM NY S E RTS OS E K OS E TS E GTS M BSE Na s daqG M K LS E TS X SWX XT R A AME X OT C P K T S XV AS X HL S E OT C B B OT C NO AIM G rand Total 1,982. 6 540. 0 498. 6 242. 6 198. 5 156. 2 116. 1 106. 0 103. 7 101. 1 82. 8 82. 4 77. 1 46. 4 40. 0 34. 3 27. 9 16. 5 12. 0 8. 9 5. 5 2. 3 2. 3 0. 0 13,819.5 US D L TM Total E B ITDA ($m) Na s daqG S S E HK OM TS E NY S E K OS E GTS M CM OS E RTS Na s daqG M XT R A K LS E AME X AS X SWX OT C NO AIM TS X T S XV HL S E OT C P K BSE OT C B B G rand Total 1, 796. 0 767. 5 304. 6 160. 2 124. 1 103. 2 59. 8 31. 9 25. 8 20. 4 15. 6 12. 5 11. 1 6. 2 4. 5 0. 8 -1. 1 -2. 7 -4. 3 -4. 6 -17. 5 -34. 1 -41. 4 -62. 4 3,276.1 E B ITDA % NY S E AS X S E HK GTS M Nas da qG S TSE OS E OM K LS E CM R TS K OS E Nas da qG M T S XV S WX XT R A A ME X TSX OTCB B OTCP K BSE O T C NO A IM HLS E G rand Total 62. 5% 42. 8% 40. 6% 37. 1% 30. 4% 24. 6% 22. 2% 15. 4% 14. 4% 13. 1% 13. 1% 9. 6% 7. 7% 5. 6% 1. 9% -9. 1% -31. 8% -34. 7% -38. 8% -41. 5% -50. 0% -50. 6% NA NA 5.1%
Figure 22. Comparison by Exchange Source. Capital IQ
Page 19
Financ ing - L as t Three Months (US $ m)
F in. Amount (Million) Month Aug-09 C ompany Name Turbine S mith & Tinker Mint Zoove R ichR elevance Traffiq MediaMath B ill.c om E do Interactive InnoC entive OneR iot B alihoo B oxee P olyvore Fanbas e MOG OurS tage Z2L ive K ODA S coreloop R oblox Tremor Media iS ocket R ights Flow P lis ta C hes s C ube L inks ify iS yndica DailyB ooth Aug-09 Total S ep-09 Twitter E ns equenc e L ivebookings Mzinga InXpo J obvite R iot G ames NextB io Imeem Vuc lip YuMe B ooyah NeoE dge Allianc e Health Networks Unis fair C onduit L abs Mocapay Fwix Vantrix Mas hL ogic G reys tripe L oomia FourS quare E duFire Fluther Trans Gaming Inc. OnL ive S ep-09 Total Oct-09 DailyMotion P opC ap G ames E ngine Yard HubS pot J ive S oftware S pigit Ooyala S canS cout B ox.net R eality Mobile W atercooler Vdopia S ometrics Amie S treet ViVu Fizzbac k Tec hnorati Onehub DataS ync DailyB ooth Hot Potato L inkedex S tatus Net IngB oo C hango L is tia Oct-09 Total Nov-09 Nov-09 Total G rand Total C ubeTree S coopler US A US A 0. 5 0.5 31.0 2.0 69.3 8.0 194.3 138.8 88.3 110.0 US A UK C ana da US A C ana da 0. 4 4.0 40.9 56.5 8.0 67.4 2.0 US A US A US A 1. 0 0. 9 0. 8 0.7 1. 0 1.0 US A US A UK US A US A 1.3 1.2 3.0 2.6 2. 0 US A US A US A US A 4.7 4.0 3.9 US A US A US A 6.5 5.5 F ra nce US A US A US A US A US A 12.0 10.0 10.0 8.5 7.1 22.5 19.0 16.0 US A US A UK US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A C anada US A US A US A US A US A US A C anada US A 0.6 2.0 16.9 52.3 27.9 25.3 23.1 110.0 232.8 25. 3 22. 5 19. 0 16. 0 12. 0 10. 0 10. 0 8.5 7.1 6.5 5.5 4.7 4.0 3.9 3.0 2.6 2.0 1.3 1.2 1.0 1.0 1.0 0.9 0.8 0.7 0.4 170.8 8.0 0.5 8.5 633.7 0. 6 0. 5 1. 5 1.4 1.3 2.5 2.0 2.8 2.6 3.0 3.0 5.0 4.0 3.3 3. 1 6.0 6.0 5.0 9.0 8.3 8.0 8.0 16.0 10. 0 20. 0 C ountry US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A G erma ny US A US A US A US A G erma ny S outh Africa US A US A US A 1. 3 0. 5 0. 4 0. 0 25.8 11.5 77.6 43.6 63.2 100.0 2.0 1.5 1.4 2. 2 2.0 3. 0 2.8 3.0 3.0 5.0 5.0 6.0 5.6 8. 5 7.3 7.0 7.0 10. 0 8.5 12.5 10.0 Type of financ ing Angel/S eed Debt financ ing S eries A S eries B 29.0 14.1 13. 2 S eries C S eries D 50. 0 S eries E Grand Total 50. 0 29. 0 14. 1 13. 2 12. 5 10. 0 10. 0 8.5 8.5 7.3 7.0 7.0 6.0 5.6 5.0 5.0 3.0 3.0 3.0 2.8 2.2 2.0 2.0 1.5 1.4 1.3 0.5 0.4 0.0 221.6 100. 0 20. 0 16. 0 10. 0 9.0 8.3 8.0 8.0 6.0 6.0 5.0 5.0 4.0 3.3 3.1 3.0 3.0 2.8 2.6 2.5 2.0 1.5 1.4 1.3 0.6 0.5
Figure 23. Financing, Last Three Months Source. Company reports
Page 20
C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany
Amie S treet Aurora F eint Aviary
HQ
United S ta tes United S ta tes United S ta tes
Webs ite
www. amies treet. com www. aurorafeint.com www. avia ry. com
Des cription
Amie S treet, Inc. , a W eb bas ed s ocial mus ic s tore, enables members to dis cover, download, and s hare mus ic. T he company wa s founded in 2006 and is bas ed in Long Is land C ity, New Y ork. Aurora F eint, Inc. offers gaming platform for iphone. T he company is bas ed in B urlingame, C alifornia. Aviary is a collaborative creative s uite for artis ts of a ll genres . Ava ilable both on and offline, via Adobe’s F lex a nd Air technologies res pectively, Aviary ena bles artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to mus ic to 3D to video, a rtis ts can crea te and collaborate us ing the compa ny's free and light s oftwa re. B ox. net, Inc. provides online file s torage, s haring, and collaboration s ervices to regis tered us ers in the United S tates and internationally. It offers file s haring, mobile a cces s , and document editing s ervices to bus ines s es , s chools , a nd other orga niza tions . B ox.net, Inc. was founded in 2005 and is bas ed in P alo Alto, C a lifornia . C hango Inc. provides online advertis ing s olution. T he company provides keyword targeted P P C ca mpaigns and S ea rch E engine Marketing (S E M) campaigns . C hango Inc. was founded in 2008 and is bas ed in T oronto, C anada. DailyB ooth lets us ers follow their friends and update them in real-time through the us e of pictures and s ta tus updates . Dailymotion S AR L provides on-line video content in F rance and E urope. It operates a video entertainment W ebs ite tha t provides video s haring s ervices . T he company a ls o ena bles s ha ring of official and profes s iona l contents . Dailymotion S AR L was founded in 2005 and is bas ed in P aris , F rance. DataS ync C orporation develops open s ource cons olidation s oftware. T he company develops DataS ync S uite, a s oftware pla tform that integrates core applications into an open s ource s oftware-a s -a-s ervice web porta l. Data S ync C orporation wa s founded in 2005 and is bas ed in S ioux F a lls , S outh Dakota. E cas t, Inc. operates a broa dband touch s creen media network in the United S tates . T he company’s network delivers digital mus ic, games , entertainment, information, and advertis ing to bars and nightclubs . Its platform als o delivers on-demand content, including videos and s urveys ; s upports third-party a pplica tions ; and a llows integration of W eb s ervices , s uch as mobile, e-commerce, and s ocial media, including photo s haring. T he company was founded in 1999 and is ba s ed in S an F rancis co, C alifornia. E ngine Y a rd, Inc. provides managed hos ting a nd deployment s olutions for R uby and R ails applications . T he company offers a clus ter computing platform, deployment s upport, and data center s ervices . It helps its clients in building s ites and a pplica tions on-dema nd. E ngine Y ard, Inc. was founded in 2006 and is bas ed in S a n F ra ncis co, C alifornia with additiona l locations in the United S tates , C anada, E urope, Is ra el, the P hilippines , Aus tralia, and New Zealand. T he F eedR oom, Inc. provides W eb video s olutions and technology for corporations , media/publis hing organiz ations , and government a gencies . It offers broadband video dis tribution for W eb, s ea rch engines , and podcas ting; broadband video encoding, ma nagement, and delivery; performance reporting; broadband video application des ign and development; media advertis ing s ervices ; s ubs cription a nd regis tration tools ; email video a lert delivery a nd tracking; a nd original content development and production. T he company wa s founded in 1999 and is bas ed in New Y ork, New Y ork . As of S eptember 30, 2009, T he F eedR oom, Inc. opera tes as a s ubs idiary of K IT digital, Inc. T he F izz back G roup Limited provides an on-demand s olution that drives cus tomer engagement at the point-of-experience. Its s olution helps companies to lis ten, res pond, and act in real-time to their cus tomers ' comments . T he F izz back G roup was formerly known as Ins tant Market Intelligence Limited a nd changed its name to T he F iz zba ck G roup Limited in J a nuary 2007. T he company was founded in 2004 and is bas ed in London, the United K ingdom. G odengo, Inc. des igns online publis hing and advertis ing platform for magazine publis hers . T he company provides technology to build, manage, and dis tribute media content online. G odengo, Inc. was incorpora ted in 2004 and is ba s ed in E meryville, C alifornia.
B ox.net
United S ta tes
www. box. net
C hango Daily B ooth DailyMotion
C a nada United S ta tes F rance
www. chango.com www. dailybooth. com www. dailymotion. com
DataS ync
United S ta tes
www. datas yncs uite. com
E cas t Network
United S ta tes
www. ecas tinc. com
E ngine Yard
United S ta tes
www. engineyard. com
F eedR oom
United S ta tes
www. feedroom. com
F izzbac k
UK
www2. fizz back. com
G odengo
United S ta tes
www. godengo. com
Figure 24a. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 21
C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany
Hot Potato HubS pot
HQ
United S ta tes United S ta tes
Webs ite
www, hotpotato. com www. hubs pot. com
Des cription
Hot P otato offers internet bas ed s ocial networking s ervices . T he company wa s founded in 2009 and is bas ed in B rooklyn, New Y ork. HubS pot, Inc. offers B 2B inbound ma rketing s oftwa re. Its products include HubS pot Owner, which generates qualified leads and convert leads into s ales ; and HubS pot Marketer that offers inbound mark eting tools . T he company als o provides s earch engine optimiz ation, bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lea d tracking a nd intelligence, lead gra der, landing page wiz ard, marketing intelligence, s ocial media, and inbound ma rketing s olutions . HubS pot, Inc. was founded in 2006 and is bas ed in C ambridge, Mas s a chus etts . Ingboo Inc. operates as an online marketplace for information upda tes to cons umers . It offers an Internet retrieval utility that allows to track information, s uch as W ebs ites , job and apartment lis tings , eB ay auctions , C raig's lis t pos ts , news , weather, traffic, s ports s cores , R S S feeds , twitter updates , celebrity gos s ips , and Y ouT ube videos . T he company a ls o drives traffic to W eb publis hers , bloggers , and retailers . It enables to a cces s through s martphones and e-mails . T he company was founded in 2007 a nd is bas ed in S unnyvale, C alifornia. J ive S oftware, Inc. develops , markets , and s ells s ocial productivity a nd community s oftware s olutions for enterpris es in the United S tates a nd interna tionally. Its products include C lears pace, an enterpris e collaboration s oftware, which applies a people-centric approa ch to facilitate work force networking and collaboration applications ; C lea rs pace C ommunity, an enterpris e-clas s community s oftware that is us ed to build la rge online communities , a s well as to engage cus tomers , and build brands a nd marketing initiatives ; and C lea rs tep, an online community s olution for s ocial and enterpris e 2. 0 profes s ionals . T he company als o offers s trategic a nd technical cons ulting s ervices . T he company was founded in 2001 and is bas ed in P ortland, Oregon. B as ed in London and S an F rancis co, Linkedex aims to help companies a nalys e the proces s by which s earch engines deliver their res ults a nd achieve higher rankings in na tural (non-pa id-for) s earch for their brands a nd s ervices . L is tia, which launched in Augus t 2009, is eB ay for free s tuff. Us ers get a certain number of credits which they bid for the item, s o whoever wins the auction is the pers on who wanted it the mos t. Us ers get credits in three ways : every us er gets a certa in number automa tically, and you can get more by auctioning items , by referring friends , and by buying them. T he company is bas ed in S unnyvale, C alifornia. O nehub Inc. provides a W eb application that enables companies to build extra nets for uploading, acces s ing, a nd s haring files and folders with partners , cus tomers , coworkers , and s uppliers . T he company s erves mark eting, advertis ing, graphic des ign, and cons ulting s ervices indus tries in the United S tates and internationally. O nehub Inc. was founded in 2007 and is ba s ed in B ellevue, W as hington. O oya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetiz ing high-quality video online. F ounded by former G oogle engineers in April 2007, Ooyala takes a novel approach at delivering video, ta rgeting ads and collecting video a nalytics . S ince launching its flags hip product, B acklot, in December of 2007, O oyala has s igned up over 1000 paying cus tomers including W arner B rothers , AOL/B ebo, National G eogra phic, T V G uide a nd the G lam network. T he company is bas ed in Mountain V iew, C vertone, O alifornia. Inc. delivers brand monitoring a nd engagement to various enterpris es . It offers Open Mic s oftware-as -a-s ervice integrated lis tening s ys tem, which delivers actionable ins ights from cons umer comments and extracts actionable intelligence from uns tructured cus tomer-genera ted content. T he company’s Open Mic als o provides real time proces s ing, multi-channel lis tening, and proven s calability. O vertone, Inc. was formerly known as Is land Da ta C orporation. T he compa ny was founded in 1995 and is bas ed in S an F ra ncis co, C alifornia. As of 01/05/2004, Overtone, Inc. is a s ubs idia ry of LiveP ers on, Inc.
Ingboo
United S ta tes
www. ingboo. com
J ive S oftware
United S ta tes
www. jives oftware. com
L inkedex L is tia
UK United S ta tes
NA www. lis tia. com
Onehub
United S ta tes
onehub. com
Ooyala
United S ta tes
www. ooya la. com
Overtone
United S ta tes
www. overtone-inc. com
P opC ap G ames
United S ta tes
www. popcap.com
R eality Mobile S canS cout S cout L abs
United S ta tes United S ta tes United S ta tes
www. realitymobile. com www. s cans cout. com www. s coutlabs . com
P opC ap G ames , Inc. develops and publis hes cas ual games . Its games a re played on the W eb, des ktop computers , cell phones , s martphones , P DAs , pock et P C s , iP ods , iP hones , ga me cons oles , and in-flight entertainment s ys tems . T he compa ny offers its products to W eb portals , retail s tores , mobile operators and developers , and game device manufacturers . P opC ap G ames , Inc. was founded in 2000 a nd is bas ed in S eattle, W as hington. It has operations in C hicago, Illinois ; S an F rancis co, C a lifornia; S hanghai, C hina; Dublin, Ireland; and V eality Mobile LL C provides R ancouver, B . C . , C anada . mobile video and data s haring technology. T he company was founded in 2003 and is bas ed in Herndon, V irginia. S canS cout, Inc. operates as an online video advertis ing network. It s erves publis hers , a dvertis ers , and ad networks . T he company was founded in 2005 and is bas ed in B os ton, Mas s achus etts with additional offices in New Y ork and Los Angeles . S cout La bs is a powerful, web-bas ed application tha t finds s ignals in the nois e to compa nies build better products and s tronger cus tomer relations hips . T he company provides technology and a collaborative platform for companies and their agents to lis ten to cus tomers and engage with them out acros s the Internet. S ometrics , Inc. operates as an analytics and a d platform s tartup compa ny s pecializ ing in s ocial media. It offers analytics and ad managing s olutions that focus on s ocial networking platforms a nd applications . T he company als o provides s ocial a dvertis ing s olutions , s uch as dis plays , engagements , and bra nd as s es s ments , as well as s ocial planners for a dvertis ers . In addition, it offers S ocial Analytics that provide a nalys is for s ocial applications a nd W ebs ites ; S ocial Ad Manager that helps to s erve and optimiz e ads to increas e revenue acros s s ocia l media properties ; and V irtual C urrency Mana ger, a virtual currency platform des igned to provide an interface to manage dis parate offer networks and relations hips for publis hers . T he company s upports F acebook, Mys pace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc. wa s founded in 2007 and is headquartered in Los Angeles , C alifornia. S pigit, Inc. des igns , develops , and dis tributes s ocial networking s oftware for bus ines s innovation. It provides s tra tegic and technical cons ulting, webs ite des igning, project forecas ting, C R M applications , employee engagement tra cking, web logs , and currency a nd idea management s ervices . T he compa ny markets its products under InnovationS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc. is bas ed in P leas anton, C alifornia. S tatus Net, Inc. provides open s ource micro-blogging s ervices for bus ines s es , publis hers and bra nds , and communities . T he company offers s ta tus . net s oftware, an open s ource micro-blogging s ervice that is us ed to write s hort notices and s end them to friends and fans , a s well as to create and dis tribute open content. It als o provides profes s ional s upport contracts and cus tomiz ation for companies tha t us e S tatus Net s oftware on their s ervers for intra net or Internet microblogging. S tatus Net was founded in 2008 and is bas ed in Montrea l, C anada. T echnorati, Inc. engages in s earching, s urfacing, a nd organizing blogs a nd us er-generated content on the W eb. It offers various citizen media on the W eb, which include blogs , videos , vlogs , podcas ts , photos , and games . T he company was founded in 2002 and is ba s ed in S an F rancis co, C alifornia. V dopia, Inc. operates as an online video advertis ing network and platform company. It enables advertis ers in India to a dvertis e on the online video content. T he company's s olutions to content owners and publis hers include V DO Ad network to advertis e on video content; V DOAd platform with campaign ma nagement tools to offer online video advertis ing to a dvertis ers /cus tomers ; B randC onnect Ad technology to deliver C P Ms ; ana lytic tools to provide s tatis tics about ads and video ana lytics for client’s videos ; and AP Is to create/publis h content. Its s olutions to a dvertis ers , media pla nners , and marketers include publis her network , bra nd connect with various ad formats on various online Internet T V channels , advertis ing, mea s urable branding, a nd reporting. V dopia, Inc. was incorporated in 2007 and is bas ed in S a n J os e, C alifornia with s ales and development offices in S an J os e, C alifornia; and G urgaon a nd Mumbai, India. V E V O operates as a mus ic video web s ite. T he company is bas ed in the United S tates . V iV u, Inc. develops participative event platform that enables live video pa rticipation from a pers onal computer, Mac, a nd Linux without any proprietary downloa ds . It offers a s olution for event organiz ers to create, publis h, a nd manage quality video events . T he company wa s incorporated in 2008 and is ba s ed in S unnyvale, C alifornia. W atercooler, Inc. operates F anS ection a nd T V Loop online communities that enable us ers to acces s a network of online fan communities in s ports and televis ion entertainment in the United S tates and internationally. \T he company was founded in 2006 a nd is bas ed in Mountain V iew, C alifornia. Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in 2006 and is bas ed in New Y ork, New Y ork .
S ometrics
United S ta tes
s ometrics . com
S pigit
United S ta tes
www. s pigit. com
S tatus Net
C a nada
www. s tatus . net
Technorati
United S ta tes
www. technorati.com
Vdopia
United S ta tes
www. vdopia. com
VE VO ViVu
United S ta tes United S ta tes
www. vevo. com www. vivu. tv
Waterc ooler
United S ta tes
www. watercooler-inc. com
Yext
United S ta tes
www. yext. com
Figure 24b. Company Descriptions – continued Source. Company reports, Capital IQ, Crunchbase
Page 22
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS: 1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00
M ontr eal 51 4. 39 9. 150 0
V anco u ver 60 4. 66 2. 180 0
C al gar y 40 3. 26 5. 740 0
R egi na 306. 566. 7550
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