SOFTWARE & SERVICES
12 MAY 2009
WEB 2.O WEEKLY
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
SECTORS TO WATCH – MEDIA, AD NETWORK, VIDEO, AND SOCIAL NETWORK
E V ER YZ IN G R AI S E S $ 8.3 MIL L I ON
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. W ith any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements.
Capital Market Activity by Sector - Last Three Months
70.0
60.0
50.0
(US$m)
40.0
30.0
63.4 56.9 49.5
20.0
39.7 30.2 27.6 18.3 14.4
10.0
12.0
12.0
8.9 Infrastructure
6.8 Aggregation
5.5 Mobile Ad
5.0 Collaboration
4.7 Social Commerce
4.1 Publishing
4.1 Widget
Comment/Reputation
0.0 Media Social Networks Ad Network Video
3.1 Visual Commerce
2.5 Virtual World
2.0 Crowdsourced Content
2.0 Travel
2.0 Microblog
1.3 SAS
1.3 Online Learning
0.6 Wiki 1
Gaming
Search
# companies
8
7
5
5
2
5
2
Analytics
3
Lending
1
Mobile 1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
Capital Market Activity: Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. Price Performance: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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 Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market cap of ~ $46 billion (Figure 1). The average market cap for the group is ~$500 million (but a median of only $48.8 million), with average trailing revenue of $149.6 million (median $56.0 million). The companies are also generally profitable, with a median EBITDA margin of 16.0%. On a valuation basis, the overall average is 5.2x trailing revenue (median 1.5x) and 9.4x trailing EBITDA (median 8.7x). Thirteen of the companies have more than 500 employees.
C omparable C o mpany A nalys is > W eb 2.0
C om pan y Nam e
Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s o cia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yo nd Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C or pora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. DADA S pA DXN Ho ldings B hd Dibz Inte rnational, Inc. DigitalP o st Inte ra ctive , Inc. DigitalT own, Inc. Dolphin Digital Me dia, Inc. E o lith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P ictu re s AG G a ma nia Digital E ntertainment C o., L td. G a me On C o L td. G e oS e ntr ic O yj G iant Intera ctive G r oup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G u ngH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E nter tainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co . Ltd. Lingo Media Co rporation Live World Inc. Lo okS mart, Ltd. Magnitu de Information S ys tems Inc. Mixi, Inc. Mode rn Times G r ou p Mtg AB Moggle , Inc MOK O.mobi L imited N E OW IZ G ames C orpo ra tion N etD rago n W ebS oft, Inc. N ete as e.co m I nc. N eXplo re Co rpora tion N gi G roup Inc. N orthgate Te chno logies L imited Open T e xt Co rp. Openwave S ys tems Inc. P e rf ect W or ld C o., Ltd. P hoto Channel N etwork s Inc. Qu epa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S o cia l Media V e nur es , Inc. S o hu. com Inc. S ite s earch C orpo ratio n S park N etworks , Inc. S pectrumDN A, Inc. T encent Ho ldings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S po rt Online A S T ree.C om, Inc. U nis erve C ommu nications Corp. U nited Online Inc. U OMO Media , Inc Va lueC lick Inc. VO IS , Inc. W ebze n Inc. W izza rd S of twa re Co rpora tion W or lds .com Inc. W ynds torm C orporatio n XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Lo w A vera ge Median
L TM as of T icker
1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 6 /30 /200 7 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 9 /30 /200 8 3 /31 /200 9 1 /31 /200 9 1 2/31 /200 8 9 /30 /200 8 1 1/30 /200 8 NA 9 /30 /200 8 2 /28 /200 9 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 1 1/30 /200 8 1 2/31 /200 8 6 /30 /200 8 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 6 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 7 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 3 /31 /200 9 1 2/31 /200 7 1 2/31 /200 8 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 8/2/2008 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 6 3 /31 /200 9 1 1/30 /200 8 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 NA 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 7 1 2/31 /200 8 AC LZ A0 527 90 38 38 AS MH BS GC B W AV B Y OC AIM:B G T BW BA C HIN .A C Y OU CGWY G T S M:308 3 C WR L T S X:C X C M:DA DXN DIB Z DG LP DG T W DP DM A0 410 60 E XT I F NG P T S X:F MN FRG 61 80 38 12 G E O1 V GA G IG M G R VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A OT C B B :IDAE IE E AS X:J MB T S X:J T V T S X:K AB 38 88 T S XV: LM LV WD LOOK MA G Y 21 21 MT G B MMOG MK B A0 956 60 77 7 NT E S N XP C 24 97 59 005 7 OT E X OP W V PW R D T S XV: P N QP S A R BC I S N DA S F LY A0 662 70 ST VI S N MN S M VI S OH U STPC LOV S P XA 70 0 K IDS .Q N CT Y TSC M T OS O TR EE T S XV: US S U NT D U OMO VC LK VOIS W ZE N W ZE W DD D W YND O1B C A0 527 70 A0 237 70 T S XV: ZIP
E xc hange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GT S M OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K N as da qG S OT C B B AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C B B XT R A K OS E K OS E T S XV
Trading Cu rrenc y H Q
US D KR W J PY US D US D US D US D GBP US D US D US D US D TWD US D C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD J PY E UR US D US D US D J PY J PY KR W US D US D US D C AD AU D C AD C AD HKD C AD US D US D US D J PY S EK US D AU D KR W HKD US D US D J PY 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 HKD US D US D US D NOK 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 C AD U nited S ta tes S o uth 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 aiwan U nited S ta tes C ana da Ita ly Ma la ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S o uth K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S o uth K orea J apan J apan S o uth K orea U nited S ta tes C ana da U nited S ta tes C ana da Au s tra lia C ana da 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 U nited S ta tes Au s tra lia S o uth K orea C hina C hina 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 o uth K orea 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 U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes N orwa y 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 o uth K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany S o uth K orea S o uth K orea C ana da
Current P ric e
0 .50 14, 400 48 ,000 .00 0 0 .02 0 1 .04 0 0 .30 1 29 .80 0 225 .00 0 1 .87 6 0 .44 0 0 .02 3 0 .68 900 0 .15 0 0 .45 8 38 .60 91, 800 0 .04 8 6 .38 1 5 ,260 .00 1 42, 600 4 ,855 .00 16 0 .28 1 0 .09 0 0 .71 1 4 .14 1 0 .07 1 0 .01 4 50, 000 237 .50 2 0 .08 62, 400 5 .53 31 0 .70 31, 700 39 .15 32 1 .27 19 1 .59 1 1 .25 49 12 .85 9, 390 0 .75 0 0 .01 55 3 .50 3 0 .42 71 0 .01 9 2 .05 0 12 .09 0 7 .24 0 10 .34 0 3 .28 1 0 .17 0 28 .95 8, 900 6 ,850 .00 0
U S D Market C ap ($m)
1 3.8 9 9.4 2 6.8 0 .1 1 .2 3 .2 4 3.0 5 .6 2 5.3 15 7.3 1,5 27.3 0 .0 57 5.6 6 .4 8 6.5 13 9.4 2 9.1 0 .0 1 .1 6 7.7 3 3.5 5 2.4 1 4.2 0 .4 2 0.4 2 4.6 17 8.2 9 1.0 4 8.8 1,8 62.2 34 4.7 2 7.0 1,2 03.8 16 7.5 8 6.3 2,3 92.0 1 9.6 2 4.3 4 .0 1 5.3 6 9.7 7 2.5 57 6.9 1 1.1 2 .2 2 4.6 4 .4 70 8.4 2,0 20.2 8 3.5 5 .0 48 7.1 37 7.2 3,8 09.7 3 9.0 4 0.2 2 7.6 1,6 69.7 10 5.8 99 7.1 4 7.0 1 2.3 17 3.4 3,4 26.1 32 3.5 31 3.1 8 .1 0 .0 0 .0 2,1 16.8 2 8.2 5 6.5 2 0.5 16,5 68. 2 0 .3 25 3.7 6 2.8 0 .1 13 0.5 0 .8 60 5.1 2 1.0 89 7.0 2 .7 3 8.9 2 9.2 8 .9 0 .5 20 8.1 11 3.3 1 3.6 0 .3 16,5 68. 2 0 .0 500.3 4 8.8
U S D LT M Total R ev ($m)
3.8 75. 7 61. 8 0.1 0.1 7.7 1.8 0.2 0.0 409 .1 222 .5 6.7 56. 2 1.3 49. 4 231 .1 79. 0 NA 0.4 NM 0.9 20. 2 NM 6.8 4.6 5.5 126 .0 76. 5 6.0 233 .6 190 .4 39. 7 30. 1 115 .3 56. 4 1 ,40 6.4 0.0 0.0 1.3 13. 7 13. 4 70. 7 120 .2 3.5 11. 8 60. 7 0.1 120 .3 1 ,73 7.6 NM 1.1 200 .8 87. 3 451 .8 NM 100 .8 136 .2 782 .6 197 .2 210 .5 17. 2 0.1 146 .9 522 .7 215 .2 168 .1 3.0 2.0 0.1 460 .0 NM 57. 3 0.1 1 ,04 7.8 112 .0 250 .2 67. 0 2.1 215 .6 25. 8 811 .2 0.6 591 .7 0.0 23. 1 6.1 0.1 NA 47. 6 55. 6 15. 8 2.8 1 ,737 .6 0.0 149.6 56. 0
US D L TM T otal E B ITDA ($m)
(4 .8) 1 5.1 4 .9 (2 .3) (2 .1) (1 1.8) (8 .6) (1 .7) (4 .6) 2 5.5 13 5.1 (6 .6) 3 1.5 NM 4 .1 3 6.9 1 0.5 NM (3 .3) (3 .0) (3 .0) (0 .1) NM 1 .2 (9 .3) (3 .3) 2 0.9 1 9.8 (1 3.4) 14 4.6 4 6.0 7 .6 1 0.8 2 0.6 (1 5.9) 4 2.6 (0 .8) (4 .6) (5 .1) 5 .1 (8 .4) 7 .0 4 6.6 (1 .5) (0 .5) (3 .8) (3 .0) 4 5.8 26 6.2 (1 .1) (2 .3) 5 3.9 3 9.9 29 3.7 (4 .9) 3 1.0 2 4.0 19 9.2 (2 .9) 11 3.9 (0 .8) (1 1.4) 1 9.2 24 0.2 2 8.3 1 5.8 0 .9 (0 .7) (0 .1) 20 0.4 (1 .1) 1 2.3 (2 .5) 51 2.5 (1 3.5) 8 4.3 1 .7 (1 .1) (1 3.3) 0 .1 17 7.3 (0 .5) 10 6.9 (1 .3) (4 .6) (6 .0) (0 .7) NM 1 5.2 1 2.4 (1 .2) (3 .0) 51 2.5 -15.9 33.4 0 .9
E BITDA %
NM 20 .0% 8 .0% NM NM NM NM NM NM 6 .2% 60 .7% -9 8.9% 56 .0% NM 8 .3% 16 .0% 13 .3% NM NM NM NM -0 .3% NM 18 .3% NM -6 0.6% 16 .6% 25 .9% NM 61 .9% 24 .2% 19 .2% 36 .0% 17 .8% -2 8.2% 3 .0% NM NM NM 37 .2% -6 2.6% 10 .0% 38 .7% -4 2.5% -4 .3% -6 .3% NM 38 .0% 15 .3% NM NM 26 .8% 45 .7% 65 .0% NM 30 .8% 17 .6% 25 .5% -1 .5% 54 .1% -4 .9% NM 13 .1% 46 .0% 13 .2% 9 .4% 31 .4% -3 4.8% -6 0.5% 43 .6% NM NM 48 .9% -1 2.0% 33 .7% 2 .6% -5 0.6% -6 .2% 0 .4% 21 .9% -7 8.2% 18 .1% NM -1 9.8% -9 8.2% NM NM 32 .0% 22 .4% -7 .6% NM 0 .0% 65 .0% -9 8.9% 7.5% 16 .0%
TE V/LT M R evenue
4.8 x 0.9 x 8.1 x 30.6 x 25.4 x 22.1 x 0.5 x 6.0 x 0.0 x 9.1 x 6.0 x 1.7 x 0.8 x 0.6 x 5.0 x 37.2 x 2.6 x 1.9 x 4.4 x 1.2 x 0.4 x 6.9 x 1.4 x 37.9 x 1.3 x 1.2 x 0.4 x 1.8 x 0.8 x 4.0 x 1.1 x 4.2 x 3.4 x 0.1 x 5.0 x 1.5 x 3.5 x 2.4 x 2.8 x 0.2 x 2.2 x 0.0 x 2.7 x 0.0 x 0.2 x 1.2 x 1.9 x 2.2 x 1.1 x 0.0 x 3.8 x 1.0 x 17.2 x 0.2 x 4.6 x 0.6 x 0.1 x 1.1 x 33.6 x 1.3 x 4.8 x 3.1 x 2.0 x 0.9 x 0.6 x 37.9 x 0.0 x 5.2x 1.5 x
T E V/LT M E B IT DA
4.7x 7.3x 9.9x 1 6.2 x 2 0.6 x 5.0x 4.7x 7.4x 1.7x 5.8x 7.1x 1 1.9 x 2.1x 1 1.2 x 1 0.9 x 1 3.2 x 9.7x 8.9x 6.1x 1.2x 8.7x 0.3x 0.4x 9.1x 1 9.8 x 7.0x 8.7x 4.6x 3 5.3 x 2 9.5 x 5.0x 7.4x 9.8x 9.0x 3 5.3 x 0.3x 9.4x 8.7x
E mployees
11 NA NA 3 4 45 43 9 46 NA 628 37 NA NA NA 574 NA NA 11 3 NA NA NA 22 NA NA NA NA 94 NA NA 636 NA NA NA 3 ,20 0 NA NA NA 72 237 NA NA NA NA 90 14 NA 2 ,96 9 3 NA NA 2 ,42 6 NA 19 NA 286 2 ,91 5 657 NA NA 74 NA NA 514 NA 11 33 NA 3 ,19 7 15 183 7 6 ,19 4 347 NA 310 16 700 NA 1 ,46 9 NA 1 ,18 9 4 NA 110 1 NA 174 NA NA NA 6 ,194 1 644 179
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
Page 3
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 ) Will May be better than April? Month-to-date financings in May totalled $38.9 million and has commenced slowly - just like April. The month of May (so far) has registered seven deals, all except one greater than $5 million. No deals were greater than $10 million, with the capital raise by EveryZing being the largest at $8.3 million. The average value for April was $6.5 million on 21 financings. The March average was $6.6 million on 24 financings. Except for two deals (Kaixin001.com and Collective Media) all were below $20 million for the last three months and a total of four deals were greater than or equal to $15 million.
Financing Activity Last Three Months
180.0 6.8
160.0
6.6
140.0
6.4
120.0
6.2
100.0 (US$m)
6.0 (US$m)
80.0
5.8
60.0
5.6
40.0
5.4
20.0
5.2
0.0 Mar-09 Apr-09 Total Average May-09
5.0
Figure 2. Financings, Last Three Months Source. Company reports
Ever yZing largest deal in May: A week into May and EveryZing tops the list with a $8.3 million raise, followed by Gist at $6.8 million. The month so far has seen four deals about the $6 million mark. For additional details, see Figures 23 and 24 (at end of note). Further, the month of May also witnessed the spin-off of StumbleUpon from E-bay on a $29 million valuation. E-bay had bought StumbleUpon for $75 million.
(US$m) 10.0 15.0 20.0 25.0 30.0 35.0 0.0 5.0
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Financing & M/A Summary - Last Three Months
StumbleUpon Kaixin001.com Collective Media GOOM Radio Vidyo Marin Software The Rubicon Project Buzznet FreeWheel SendMe Inc. LendingClub Miva Auditude Conductor Inc. Cellufun Glam Media Visible Measures SuperSecret GoViral EveryZing ScanScout Batanga Gist Azuki Systems I Love Rewards Greystripe TimeBridge DocuSign DoubleTwist OMGPOP IMShopping Socialtext Apture Mixercast Simulmedia Tynt SoundCloud AnySource Media Pixazza TubeMogul Tribal Nova Sports Composite Tripbase Resonate Networks Hunch Bit.ly Socialcast Brandtology Scan & Target AdultSpace Myngle Jodange 33Across Three Melons Foodista Apr-09 Mar-09 May-09
Page 4
Media is the most active sector: Activity over the last three months was busiest in the Media sector, with eight companies raising over $63.4 million (Figure 4). The Ad Network sector has the next highest totals, with seven companies raising $56.9 million.
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Capital Market Activity by Sector - Last Three Months
70.0
60.0
50.0
(US$m)
40.0
30.0
63.4 56.9 49.5
20.0
39.7 30.2 27.6 18.3 14.4
10.0
12.0
12.0
8.9 Infrastructure
6.8 Aggregation
5.5 Mobile Ad
5.0 Collaboration
4.7 Social Commerce
4.1 Publishing
4.1 Widget
Comment/Reputation
0.0 Media Social Networks Video Ad Network
3.1 Visual Commerce
2.5 Virtual World
2.0 Crowdsourced Content
2.0 Travel
2.0 Microblog
1.3 SAS
1.3 Online Learning
0.6 Wiki 1
Gaming
Search
# companies
8
7
5
5
2
5
2
Analytics
3
Lending
1
Mobile 1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
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 outperforms: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently when it has moved higher than the NASDAQ index (Figure 5).
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Web 2.0 Index Price Performance
120
100
80
60
40
20
0 10/13/2008 10/27/2008 11/10/2008 11/24/2008 12/22/2008 12/8/2008 5/12/2008 5/26/2008 6/23/2008 7/21/2008 8/18/2008 9/15/2008 9/29/2008 6/9/2008 7/7/2008 8/4/2008 9/1/2008 1/19/2009 2/16/2009 3/16/2009 3/30/2009 4/13/2009 4/27/2009 5/11/2009 1/5/2009 2/2/2009 3/2/2009
^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
Index: Web 2.0 X (Market Cap)
A positive week: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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1 Week P rice P erformance
Tree.Com, Inc. United Online Inc. Y nk K orea Inc. Webz en Inc. LookS mart, Ltd. CDC Corp. K ings of t Co. Ltd. Gamania Digital Entertainment Co., Cy berplex Inc. NEOWIZ Games Corporation Modern Times G roup Mtg A B HanbitS of t, Inc. PhotoChannel Netw orks Inc. S park Netw orks , Inc. G igaMedia Ltd. Perfect World Co., Ltd. NetDragon WebS of t, Inc. A Q Interactiv e, Inc. Y edangOnline Corp. Openw ave S y s tems Inc. A ctoz S of t Co., Ltd. Neteas e.com Inc. Giant Interactive G roup, Inc. Chines e Gamer International Mix i, Inc. Eolith Co. Ltd. IA C/InterA ctiveCorp. S hutterf ly , Inc. The9 Limited Open Tex t Corp. S K Communications Co., Ltd. XING A G S ohu.com Inc. Tencent Holdings Ltd. TheS treet.com, Inc. Northgate Technologies Limited G ree, Inc. G ameOn Co Ltd. S handa Interactive Entertainment Ltd. V alueClick Inc. DA DA S pA Changy ou.com Limited Frogs ter Interactiv e Pictures A G Ngi G roup Inc. B ey ond Commerc e, Inc. -30.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
27.5% 27.5% 21.9% 14.3% 12.2% 11.4% 10.4% 9.0% 8.7% 8.5% 8.0% 7.9% 6.0% 3.8% 3.6% 2.8% 2.4% 2.2% 1.9% 0.8% 0.7% 0.7% 0.0% 0.0% -0.7% -1.1% -1.1% -2.1% -2.1% -2.5% -2.7% -3.2% -3.9% -3.9% -4.2% -4.5% -4.7% -5.0% -5.8% -6.0% -8.2% -8.6%
-11.7% -13.9% -21.8% -20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
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INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
L o okS mart, Ltd. (Nas daqG M: LOOK )
Headline
L ookS mart L td. Announc es Una u dited Cons olidated E a rnings R esults for the F irst Quarter E nded M arch 31, 2009
Notes
L ookS mart L td. a nnounc ed unaudited c ons olidated ea rnings res ults for the firs t qua rter ended March 31, 20 09. F or the qua rter, the company's revenues were $13. 3 million, a 24% dec rea s e from $17. 5 million in the firs t qua rter of 2008 and a 11% dec reas e from $14. 9 million in the fourth quarter of 2008. Net loss for the quarter was $2. 0 million, or $0. 12 per sha re compa red to net los s for the first quarter of 2008 of $0. 5 million, or $0. 02 per sha re and net loss for the fourth quarter of 2008 of $12.4 mil lion, or $0. 73 per s ha re. L oss from c ontinuing opera tions for the quarter was $2. 1 million or $0 .13 per s ha re compa red to a los s from continuing opera tions in the first qua rter of 2008 of $0.2 mi llion or $0.01 per s hare a nd los s from co ntinuing opera tions for the fourth quarter of 2008 of $11.4 mil lion. Non-G AAP net los s for the quarter wa s $1. 6 million compared to non-G AAP net income of $0. 8 million in the firs t quarter of 2008 a nd non-G AAP net los s for the fourth quarter of 2008 of $1.1 million. C apita l expenditures for the quarte r were $0. 9 million, c ompared to $1. 0 million in the fourth qua rter of 2008, a nd $0. 6 million in the firs t quarter of 2008. L os s from operations was $2. 2 million compa red with $0. 61 million for the s a me period la st y ear. L S NAP I ntera ctive I nc. announced the beta la unch of AreY ouInteres ted. com, a sta nd-a lone online dating website incorporating a Fa cebook Connec t integra tion. AreY ouI nterested.c om repres ents a n expand ed version of S NA P 's popular F a cebook P latform da ting applica tion 'Are Y ou I nteres ted,' which pres ently ha s more than 13 million us ers. T he website has been built to include a number of unique features for an online dating website. B y utilizing F acebook C onnec t, us ers c an login to AreY ouI nteres ted.com with their Fa cebook identity a nd allow th e site to a cc ess the member's exis ting F a cebook profile informa tion. Additiona lly, us ers are a ble to s ha re content a nd ac tions ta k en on AreY ouInteres ted. com with their friends ba ck on F a cebook for a b etter ov era ll ex perience. W ith Fa cebook C onnect, users benefit from the following fea tures : T rusted Au thentica tion-ea s ily a uthentica te into partner si tes us ing their F ac ebook ac count; R eal I dentity-leverage their rea l identity a cros s the W eb i n a trus ted envi ron ment; Fri end Link ing-tak e their friends with them wherever they go, enabling trus ted s ocia l context any where on the W eb; Dynamic P ri vac y-a s surance that the s ame priva cy s ettings us ers hav e s et up on F acebook will follow them whe Changy ou.com Limited reported unaudited c ons olidated ea rnings res ults for the firs t qua rter ended March 31, 2009. F or the qua rter, the company's tota l revenues increa s ed 6% qua rter-over-qua rter and 50% yea r-ov er-year to $61.6 million c ompared to total rev enue of $41 million for the s ame quarter a year ago. T he inc reases were mainly a ttributable to a n increa s e in T LB B rev enues as a result of user base expans ion and enha nced us er loy a lty , a s well a s inc reased revenues from B lade Online ('B O'). Opera ting profi t increa s ed 12% qua rter-overquarter and 79% ye ar-ov er-year to $37. 9 million compared to operating profi t of $21.2 million for the same qua rter a y ea r a go. N et income increa s ed 15% quarter-over-qua rter a nd 120% year-over-y ear to $33.5 mil lion c ompa red to net inc ome of $15. 2 million for the s ame quarter a y ea r a go. N on-G AAP net inc ome increas ed 13% qua rter-over-quarter and 100% yea r-over-yea r to $34.4 million compa red to net income of $17.2 mi llion for the s a me qua rter a y ea r a go. B as ic and fully dil uted ea rnings per A DS were $0.71, c ompared to $0. 32 in the firs t quarter of 2008. Non-G AAP fully diluted ea rnings per ADS were $0. 72, compared to $0.36 in the firs t quarter of 2008. Inc ome before inc ome ta x expens
S NAP Interactive, Inc . (OT CB B: S TVI)
S NAP I ntera ctive Inc. B eta -La unches AreY ouI nteres ted. com Online D ating W ebs ite Us ing F acebook (R ) C onnect
C hang yo u. c om L imited (Nas daqG S : C YOU)
Changy ou.com Limited R eports U naudited C onsolidated E a rnings R esults for the F irst Quarter E nded M arch 31, 2009; P rov ides E arnings G uidance for the S econd Quarter of 2009
S ohu. c om Inc . (Nas daqG S : S OHU)
S ohu.com I nc. R eports Una udited Cons olida ted E arnings R es ults for the F irst Quarter E nded M arch 31, 2009 ; P rovides E arnings G uida nc e for the S econd Quarter of 2009
S ohu.com I nc. repo rted una udited cons olida ted earnings results for the first quarter ended M a rch 31, 2009. G AAP net income of $44. 6 million or $1.15 per fully diluted s ha re. G AAP net inc ome was 2. 1 times that of first quarter 2008. G AAP net income included $33.5 million of G AAP net income contributed by online ga me bus iness with a 15% qua rter-on-quarter increas e or a 120% yea r-on-year inc rease. N on-G AAP net income (i.e. , exc luding sha re-bas ed compensation expense) of $46. 9 million, or $1.20 per fully diluted share, ex ceeding the high end of company guida nc e of $1. 10 by 10 cents . N on-G AAP net income increas ed 87% y ea r-on-year. N on-G AAP n et income included $34.4 million of Non-G AAP net income c ontributed by online ga me busines s with a 13% qua rter-on-quarter increas e or a 100% y ea r-on-year increas e. T otal revenues were $115. 7 million, repres enting a dec reas e of 5% s equentially a nd increa se of 36% yea r-on-y ea r. The company als o reported operating profi t of $50,037, 000, income before inc ome tax expens e of $51, 160, 000 a nd income from continuing operations of $44,574, 000 agains t operating profit of $30, 531,000, income before income tax expens e of $30,740, 000 a nd income from c ontinuing operations of $21 T heS treet. com Inc. reported earnings results for first qua rter ende d M arch 31, 2009. F or the qua rter, the c ompany re ported net loss of $45,675, 349 and los s attributa ble to c ommon s tockholders of $45,771, 773 or $1. 50 los s per diluted sha re on tota l rev enues of $14, 026,864 compared to net income of $2,446 ,649 and inc ome attributable to common s tock holders of $2, 350,225 or $0. 07 per diluted s ha re on total revenues of $18, 947, 985 for the s a me period a year a go. O pera ting los s was $29, 449, 197 compared to operating income of $1, 909, 114 for the sa me period a yea r a go. L os s from continuing operations before in come ta xes of $29,449, 197 compa red to i ncome from continui ng opera tions before incomes taxes of $2, 595, 308 for the s a me period a y ea r a go. L oss from c onti nuing operations of $45, 676,274 compa red to loss from c ontinui ng operations of $2, 449,380 for the s ame period a y ear ago. Adj usted E B I T DA was negative at $620, 400 compa red to a djusted E B IT DA of $3, 871,084 for the s a me period a y ear ago. C apital expenditures were $647, 948 compa red to c apita l ex penditures of $1,390, 341 for the same period a yea r a go. E B I TD A was negative at $28,207, 672 compa red to E B IT DA of $3, 169,987 for the s ame period a y W izza rd S oftwa re C orporation has filed a S helf R egistration in the amount of $5.70 million. China G ateway C orporation’s common stock has been deleted from O T C B ulletin B oa rd effec tiv e Ma y 6, 2009 on a cc ount of its fa ilure to comply with NAS D 6530. T he compa ny ha s been added to NB B . S NM G lobal Holdings announced tha t the company P res ident Mel R ich will be s tepping down immediately a nd the c ompany 's day by day respons ibilities will be ha ndled by newly hired C E O W illia m B rowning. M r. R ich was appointed interim P res ident in 2008 and will remain with the compa ny as a S pecia l Adv isor to B oard Direc tors for E nterta inment S ervices . P erfect W orld Co. , L td. a nnou nced that it pla ns to releas e a brand new 2D turn-bas ed ca rtoon MM OR P G 'Fa ntasy Zhu Xi a n' in 2009. F anta sy Z hu Xian' is P erfect W orld's first 2D turn-ba s ed c arto on M MOR P G , which is run on the company 's proprieta ry E P AR CH engine. T he game is ba s ed on a popu la r internet fanta s y novel 'Z hu Xian. ' P l ayers will be ushered into the unk nown world of 'Zhu X ia n' to unrav el a series of my s teries . 'F anta sy Z hu Xia n' will a lso fea ture a number of new chara cters which will intera ct with the origina l c ha ra cters of 'Zhu X ian' to generate new stories . G a ma nia Di gita l E ntertainment C o. L td. reported cons olidated earnings res ults for the firs t quarter M a rch 31, 2009. F or the quarter, the company reported a n opera ting revenues were T W D 1, 363,614, 000, operating income was TW D 217, 031,000, net income was T W D 165,308, 000 and ea rnings per share wa s T W D 1. 13. United Online I nc. reported ea rnings results for the first qua rter ended M a rch 31, 2009. F or the period, the c ompa ny reported cons olida ted revenues were $263. 6 million, an increa se of 116% against the yea r-ago qua rter. T he inc reas e wa s prima ri ly a ttributable to the company's a cquis ition of F TD in Augus t 2008. Adjus ted OI B DA was $61. 5 million, an increase of 59% against the year-ago quarter. G A AP diluted net income per s ha re applica ble to common s tock holders wa s $0 .20, a n increas e of 11% aga inst the y ea r-ago qua rter. Adjus ted diluted net income per s ha re applica ble to common s tock holders wa s $0 .35, a n increas e of 13% aga inst the y ea r-ago qua rter. C a sh flows from opera tions were $43. 6 million, an increa se of 50% a ga inst the year-a go quarter. T he increa s e was primarily attributa bl e to the F TD a cquis ition . Opera ting inc ome was $37. 4 million a ga ins t $20.4 million for the sa me period earlier. I ncome before inc ome ta x es were $29.6 million a ga ins t $22.0 million for the sa me period earlier. N et income a nd net income a pplica ble to c ommon stock holders were $17.0 million or $0. 20 per ba s ic a nd diluted ea rnings per s ha re ag ainst net inc ome and net income applic able to common s toc k holders of $13. 0 million or $0.18 pe
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com I nc. R eports E arnings R es ults for Fi rs t Quarter E nded Marc h 31, 2009 ; Announc es N on C ash Impa irment C harges in F irst Q ua rter of 2009
W izz ard S oftware Co rporation (A ME X: WZE ) C hin a G ateway Co rporation (OT CPK : C G WY) S NM G lobal H olding s (OTCP K:S NMN)
W izz ard S oftwa re C orporati on has filed a S helf R egis tra tion in the a mount of $5. 70 million . China G ateway Deleted From OT C B B Mel R ic h to S tep Down a s P resident of S NM G lobal Holdings P erfect W orld Co. , L td. Announces B ra nd N ew 2D MM O R P G 'F anta sy Z hu Xia n'
P erfec t World C o. , Ltd. (Nas daqG S : PW R D)
G am ania Digital E ntertainmen t C o. , L td. (G TS M: 6180) U nited Online Inc. (N as daqG S :U NT D)
G a mania D igita l E ntertainment C o. L td. R eports Cons olida ted E arnings R es ults for the F irs t Quarter Ma rc h 31, 2009 United O nline I nc. R eports E a rnings R esults fo r the F irst Quarter E nded Marc h 31, 2009; P rovides E a rnings G uida nce for the S econd Q ua rter of 2009; D eclares Quarterly C a s h D ividend P a ya ble on Ma y 29, 2009
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V alu eClic k Inc . (Nas daqG S : VC LK )
V a lueClick I nc. R eports F inancia l R es ults for the Firs t Q uarter E nded Marc h 31, 2009 ; P rov ides E a rnings G uida nce for the S econd Q ua rter of 2009
V a lueClick I nc. reported financia l res ults for the first quarter e nded M arch 31, 2009. R evenue for the firs t qua rter of 2 009 was $135.0 million a gainst $169 million a year ago. Adjus ted-E B IT DA for the first qua rter of 2009 wa s $34. 7 million against $45. 7 million a yea r ago. Net income from continuing operations and G AAP net income for the first quarter of 2009 wa s $13.2 million or $0.15 per diluted common s hare a ga inst net income from continuing operations a nd G AAP net income for the first quarter of 2008 of $19. 2 million, or $0. 19 per diluted c ommon sha re a y ear ago. Non-G AAP net income for the first qua rter of 2009, whic h excludes discontinued operations, stock -bas ed c ompensation, a nd a morti za tion of intangible ass ets wa s $18. 8 million, or $0.22 per diluted common s ha re a ga inst non-G A AP net inc ome of $ 27.5 milli on or $0.28 per diluted common s ha re a year ago. I ncome from opera tions was $23.7 million a ga ins t $30 mi llion a year a go. I ncome before income taxes was $23. 5 million against $33 million a y ea r a go. T he company provides earnings guidance for the second qua rter of 2009. For the qua rter, the c ompa ny ex pects revenues in the ra nge of $124
Open T ext C orp. (Nas daqG S : OT E X)
O pen T ext R eports E a rnings R es ults for T hird Q uarter a nd N ine Months E nded M a rch 31, 2009
O pen T ext C orp. reported earnings res ults for third qua rter and nine months ended M a rch 31, 2009. F or the quarter, the compa ny reported net income of $22,035, 000 or $0. 41 per diluted s hare on total revenues of $192, 035, 000 compa red to net in come of $7,267, 000 or $0.14 per diluted sha re on tota l rev enues of $178, 762,000 for the s ame period a y ea r a go. Inc ome from operations wa s $20, 957,000 compa red to income from operations of $23, 544, 000 for the s a me period a y ear ago. Income before income taxes was $30,181, 000 compared to income before income tax es of $10, 029,000 for the s ame period a y ear ago. N et c ash provided by opera ting ac tiv ities of $72,887, 000 compa red to net ca s h provided by opera ting a ctivities of $49,808, 000 for the same period a year ago. F or nine months period, the c ompa ny reported net income of $37, 457,000 or $0. 71 per diluted s ha re on tota l revenues of $582,309, 000 compared to net income of $25,75 2,000 or $0. 49 per diluted s ha re on tota l revenues of $525,263, 000 for the same p eri od a yea r a go. Inc ome from operations of $63,189, 000 compa red to income from ope rations of $71, 086, 000 for the s a me period a year ago. Income before in
L ing o Media C orporation (TS XV: L M)
L ingo M edia C orporation F orms S trategic Alliance with the S ha ngha i Y angpu D is trict P eople's G overnment
L ingo M edia C orporation announced tha t it is forming a stra te gic a llia nce with the S ha ngha i Y angpu D istrict P eople's G overnment. T he company will provid e E nglis h La ngua ge Learning ('E LL ') services to the Y angpu G overnment.
T enc en t Ho ldings Ltd. (S E H K: 700) C DC C orp. (Nas daqG S : CHIN.A)
T enc ent H oldings Ltd. , 0. 10 (H K D), C as h D ividend, M a y- T enc ent Holdin gs Ltd. , 0. 10 (H K D), C ash D ividend, M a y-06-2009 06-2009 CD C Corp. A nnounces R es igna tion of F ang X in from I ts CD C Corp. a nnounc ed that M r. F ang X in, a member of the boards of direc tors of CD C Corp. a nd the compa ny 's subs idia ry , C hina . com Inc., B oard resigned from both suc h boards of direc tors effec tive a s of Ma y 5, 2009. Mr. F a ng has confirmed tha t his res igna tion was not related to any disagreement wi th either of the boa rd of directors of the company or C hina . com. S pec trumDN A to La unch G ame-Changing L oca tionB a se d S oc ia l M edia E ngine C alled P lanetT a gger S pectrumDN A, Inc. ha s a nnounc ed the crea tion of P la netT agger, the first re bra n da ble s ocial media engine tha t marries online a nd mobile location-ba sed s ervices with the context of a community to create a highly relev ant and re warding ex perience for community owners , us ers a nd a dv ertis ers. T he product i s a s ca la ble, S aa S (s oftwa re-as-a -s ervice) engine tha t can be white-label ed and cus tomiz ed for a ny brand, webs ite or media property . The purpos e of P lanetT a gger is to combine the best of ge o-po sitioning, loca tion-ba s ed s ervic es and mobile mes s aging a nd offer it to orga nizations tha t a re already s pending the time and money to enga ge a pa rticular niche or mega -niche affinity group from N asca r enthusi a sts, to busines s or adventure travelers , to c ollege c ommunities or sports fans--in order to create a more powerful a nd releva nt community of people and events . Norwegian B roadca sting Corp. (N R K ) a nd T V 2 G ruppen AS A (T V 2) s aid tha t they plan to sell their s tak es in R ik sT V As. I t is believ ed that T elenor AS A is also considering a s a le of its stake in the firm. I t is believed tha t this pa ves wa y for Modern T i mes G roup MT G AB to rai se its ma rk et s hare in Norwa y. T or F uglevik , a n official at M T G s a id that it is interes ted, but not in a mino ri ty pos t. T he news pa per named the firm a s another pos sible buyer. Cy berplex Inc. reported earnings res ults for the firs t quarter ended Ma rc h 31 , 2009. For th e quarter, the compa ny reported rev enues were $32.1 mi llion was an increa s e of 307% over the $7. 9 million genera ted las t yea r. T his growth wa s a chieved prima rily from the W eb Advertising divi sion through the addition of new publis hers , the inc rea se in c ampa ign budgets and the continued momentum of proprietary publishing initia tiv es. I ncome before a mortiz a tion, interes t a nd income taxes increas ed to $4.3 milli on, up from $221, 000 in the first qua rter o f 2008. Net inc ome was $4.1 million or $0. 07 diluted per s ha re compare d to a net inc ome of $0. 5 million or $0. 00 diluted per s hare for the same qua rter a y ear ago. I ncome from opera tions was $4. 2 million against $0. 6 million for the s ame quarter a yea r ago. DAD A S pA reported ea rnings res ults for the first qua rter of 2009. T he c ompa ny regis tered a net profit of E UR 0. 7 million in the firs t qua rter of 2009, down from E UR 3. 9 million in the year-ago period. The revenue dropped to E UR 38. 4 million from E UR 40. 6 million in the firs t quarter of 2008. T he operating income s tood at E U R 2.4 million, down from E UR 5. 3 million. As of May 7, 2009, J umbuc k E ntertainment P ty L td. ha s repurchas ed 12, 750 sha res for a tota l cos t of AU D 0. 005 million under the progra m. NetDragon W ebS oft, I nc. a nnounc ed the release of a new E nglish langua ge expa ns ion pac k, 'T he Divi ne P a th', for its fa nta sy online ga me, E udemons O nline, on M a y 8, 2009. T he E n glish vers ion follows the la unch of the C hinese language expa ns ion pa ck ('Zhong S hen G ui La i') in J anua ry 2009, which features elements of G reek mythology a nd divine eudemons , offering a fresh experienc e to pla yers , while ma intaining the integrity of the origina l title. T he la un ch of the E nglis h ex pansion pa ck is expected to bols ter the influence of E udemons O nline in the ov erseas mark ets . T ree. Com Inc. reported earnings res ults for the firs t quarter ended Ma rc h 31 , 2009. For th e quarter, the compa ny reported net income of $3.16 mi llion. In c ontra s t, the company reported net los s of $9. 8 million for the s a me qua rter in the previous year. Accelerize New M edia , I nc. announced ea rnings results for the firs t qua rter ending Ma rch 31, 2009. F or the quarter, the company reported net loss of $969,298 c ompa red to net los s of $953, 062 for the sa me quarter in the previous ye a r. IAC /I nterA ctiveC orp. reported 10% drop in firs t-quarter revenues of $332 million. I AC sta ted tha t th e company is in talks to acquire Y ahoo! P ersona ls in order to supplement its M a tc h.c om bus iness . C E O of the company , B a rry Diller s a id: “W e are very interested. W e’d love to have Y a hoo! P ers onals a nd I think there is s ome initia l dis c uss ions a bout that, whether th ey’re going awa y or not is of cours e enormous ly specula tiv e. B ut I think , Y ahoo! ha s said that it’s not a n a bs olute c ore a s set their future a nd it is core to us. W e’re a leader in the ca tegory . S o, we’re very aggres si ve behind M a tch a nd any pos sibilities for increas ing its fu ture money in the world.” Y ahoo! I nc is look ing at dives ting its non-c ore properties and IA C is likel y to be a buyer of other as sets too. Changy ou.com Limited reported unaudited c ons olidated ea rnings res ults for the firs t qua rter ended March 31, 2009. F or the qua rter, the company's tota l revenues increa s ed 6% qua rter-over-qua rter and 50% yea r-ov er-year to $61.6 million c ompared to total rev enue of $41 million for the s ame quarter a year ago. T he inc reases were mainly a ttributable to a n increa s e in T LB B rev enues as a result of user base expans ion and enha nced us er loy a lty , a s well a s inc reased revenues from B lade O nline ('B O '). O pera ting profi t increa s ed 12% qua rter-overquarter and 79% ye ar-ov er-year to $37. 9 million compared to operating profi t of $21.2 million for the same qua rter a y ea r a go. N et income increa s ed 15% quarter-over-qua rter a nd 120% year-over-y ear to $33.5 mil lion c ompa red to net inc ome of $15. 2 million for the s ame quarter a y ea r a go. N on-G AAP net inc ome increas ed 13% qua rter-over-quarter and 100% yea r-over-yea r to $34.4 million compa red to net income of $17.2 mi llion for the s a me qua rter a y ea r a go. B as ic and fully dil uted ea rnings per A DS were $0.71, c ompared to $0. 32 in the firs t quarter of 2008. Non-G AAP fully diluted ea rnings per ADS were $0. 72, compared to $0.36 in the firs t quarter of 2008. Inc ome before inc ome ta x expens
S pec trumDNA, Inc . (OTC BB :S PXA)
Modern Times G ro up Mtg AB (OM: MTG MT G R eportedl y E yes S tak e I n R iks T V B ); Norweg ian B roadcas tin g Co rp. ; R iks tv As ; Telenor AS A (OB : TE L ); T V2 G ruppen AS A C yberplex Inc . (TS X: C X) Cy berplex Inc. R eports E arnings R es ults for the F irs t Q uarter E nded Marc h 31, 2009
DADA S pA (C M: DA)
DAD A S pA R eports E a rnings R es ults for the F irst Q uarter of 2009 Upda te to Jumbuck E nterta inment P ty L td. 's E quity B uybac k on Ma y 7, 2009 NetDragon L aunc hes E nglis h E x pa nsion P ack for E udemons O nline - 'The Divine P a th'
J u mbuck E ntertainmen t Pty Ltd. (A S X:J MB) NetDrago n W ebS oft, Inc. (S E HK :777)
T ree. Com, Inc . (Nas daqG M: TR E E )
T ree. Com Inc. R eports E arnings R es ults for the F irs t Q uarter E nded Marc h 31, 2009 A c celeriz e New Media, In c. Acceleriz e N ew Media , I nc. Announces E a rnings R es ults (OT CB B: A CL Z) for th e F irst Q uarter E nding M arch 31, 2009 IAC /InterAc tiveC orp. (Nas daqG S : IAC I); IAC In T alk s T o Acquire Y a hoo! P ers onals Yahoo! In c. (Nas daqG S : Y HOO); Yahoo! P ers onals
C hang yo u. c om L imited (Nas daqG S : C YOU)
Changy ou.com Limited R eports U naudited C onsolidated E a rnings R esults for the F irst Q uarter E nded M arch 31, 2009; P rov ides E arnings G uidance for the S econd Q uarter of 2009
Figure 7. Key Developments Source. Capital IQ
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VALUATION MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty-one of the 92 companies have market caps under US$100 million, with 23 under $10 million. Online gaming companies dominate the top of the list.
Market C ap (US D m)
Tenc ent Holdings L td. Netea s e. com Inc . S ha nda Interac tiv e Enterta inment L td. IA C/InterA ctiveCorp. S ohu. com Inc. Modern Times Group Mtg A B Gia nt Intera ctiv e Group, Inc. Open Tex t Corp. Cha ngyou. c om L imited G ree, Inc . Perf ec t World Co. , L td. V a lueClic k Inc . Mix i, Inc . United Online Inc . K ings of t Co. L td. Chines e Ga mer Interna tiona l NEOWIZ Ga mes Corporation NetDragon WebS of t, Inc. G igaMedia L td. S hutterf ly , Inc . S K Communica tions Co. , L td. The9 L imited X ING A G Ga ma nia Digital Entertainment Co. , L td. OA O R B C Informa tion S y s tems G ungHo Online Enterta inment, Inc . CDC Corp. DA DA S pA Tree. Com, Inc . Y edangOnline Corp. Openw a ve S y s tems Inc. A c toz S oft Co. , L td. Ga meOn Co L td. Cyberplex Inc . HanbitS of t, Inc . Moggle, Inc K a boos e Inc. J umpTV Inc . Digita lTow n, Inc . TheS treet. c om, Inc . S pa rk Netw orks , Inc. Eolith Co. L td. G eoS entric Oy j PhotoCha nnel Netw orks Inc . B ey ond Commerc e, Inc. Ngi Group Inc. NeXplore Corporation W ebz en Inc . Dolphin Digital Media , Inc. Wiz z a rd S oftw are Corporation DXN Holdings B hd S ites earc h Corporation Northgate Tec hnologies L imited G rav ity Co., Ltd A Q Interac tiv e, Inc . B roadWebA s ia Inc . L ookS mart, L td. Frogs ter Interac tiv e Pictures A G IdeaEdge, Inc. UOMO Media, Inc S pec trumDNA , Inc. Fluid Mus ic Canada , Inc . IA S Energy , Inc. J umbuck Entertainment Pty L td. Ex tens ions , Inc. A c celeriz e New Media , Inc . Y nk K orea Inc . Quepa s a Corp. Lingo Media Corporation Worlds . com Inc. S NA P Interac tiv e, Inc . CornerW orld Corporation B right Things plc MOK O. mobi L imited Ma gnitude Inf orma tion S ys tems Inc . is eemedia Inc. B etaw av e Corporation V OIS , Inc. L iv eW orld Inc. B igs tring Corp. DigitalPos t Interac tiv e, Inc . Unis erv e Communica tions Corp. W ynds torm Corporation Financia l Media Group, Inc. Z ipL oc al Inc . The Pa rent Compa ny Tota l S port Online A S A s s oc iated Media Holdings Inc . China Ga tew a y Corporation S NM G lobal Holdings Dibz Internationa l, Inc. S ocial Media V enures , Inc. 0 2392. 0 3426.1 3809. 7
997. 1 897. 0 708. 4 605. 1 576. 9 575. 6 487. 1 377. 2 344.7 323. 5 313. 1 253.7 208. 1 178.2 173.4 167.5 157. 3 139. 4 130. 5 113. 3 105. 8 99. 4 91. 0 86. 5 86. 3 83. 5 72. 5 69. 7 67. 7 62. 8 56. 5 52. 4 48. 8 47. 0 43.0 40.2 39.0 38.9 33.5 29.2 29.1 28.2 27.6 27.0 26.8 25.3 24.6 24.6 24.3 21. 0 20. 5 20. 4 19. 6 15. 3 14. 2 13. 8 13. 6 12. 3 11. 1 8. 9 8. 1 6. 4 5. 6 5. 0 4. 4 4. 0 3. 2 2. 7 2. 2 1. 2 1. 1 0. 8 0. 5 0. 4 0. 3 0. 3 0. 1 0. 1 0. 0 0. 0 0. 0 0. 0 500 1,000
1203.8
2116. 8 2020. 2 1862. 2 1669. 7 1527. 3
1, 500
2, 000
2,500
3, 000
3, 500
4, 000
Figure 8. Market Cap Ranking Source. Capital IQ
TEV/Revenue (LTM) averages 5.2x: The overall average TEV/Revenue (LTM) multiple for our group is 5.2x (up from 4.7x last week) (Figure 9). However, this is skewed by Gree (3633-TSE) at 37.9x and Dolphin Digital Media Inc. (DPDMOTCBB) at 37.2x. The median is only 1.9x. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
0. 0
Figure 9. TEV/Revenue Ranking Source. Capital IQ
# Companies
10. 0 A verage, 5.2 5. 0
(x) 10.0 15.0 20.0 0.0 18.1 5.0
25.0 22.1
AIM 14.4
1 20 5 8.1 6.9 5.2
OTCBB
TSE
3
SEHK
1
HLSE
2
GTSM
1
OTCNO
2
XTRA
2
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
AMEX
Average TEV/LTM Revenue - By Exchange
4.6 3.8 2.9 2.2 2.1 1.7 1.7 1.6 1.6 1.3 0.8 1.5
4 0.6 0.6 0.2
(x) 10.0 15.0 20.0 25.0 5.0 22.1 11.1 6.9 6.0 5.7 5.1 4.6 3.9 3.8
TSX
2
17.2
ASX
5
TSXV
KOSE
NasdaqGS
7 14 10 1
OTCPK
OM
1
OSE
T E V/L T M R evenue (x)
1
CM
1
KLSE
5
NasdaqGM
1
BSE
0.0
9.1 8.1 6.9 6.06.0 4.84.85.05.0 3.84.04.24.44.6 2.83.13.43.5 1.91. 92.02.22. 22.42.62. 7 0.91.01.11. 11.11.21. 21.21.31. 31.41.51. 71.8 0.00.00.00.00.10.10.20.20.20.40.40.50.60.60.60.80.80.9
# Companies
1
United Kingdom
Average TEV/LTM Revenue - By Country
6 2.1 1.7 1.5 0.8 0.6 0.5
Japan
1
40
Finland United States
10
China
11
Canada
1
Norway
3
Taiwan
2
Germany
2
9
Australia South Korea
1
Sweden
22.1
25. 4
1
Italy
30.6
33.6
Page 11
1
Malaysia
37.37.9 2
1
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 (20), trading at an average multiple of 18.1x (up from 12.4x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.0x revenue (up from 4.9x last week) (Figure 11). Eleven of the companies are Canadian (average 5.1x revenue).
S ocia l Media V enures , Inc. O penwa ve S y s tems Inc. C hina G ateway C orpora tion O AO R B C Informa tion S y s tems L iveWorld Inc. Unis erve C ommunications C orp. S ha nda Interactive E ntertainment Ltd. N orthgate T ec hnologies Limited T he P arent C ompany IAC /InterAc tiveC orp. G ameO n C o Ltd. C DC C orp. T ree.C om, Inc . ZipL ocal Inc. DXN Holdings B hd J umbuck E ntertainment P ty Ltd. DADA S pA Y nk K orea Inc. Ac toz S oft C o., Ltd. S pa rk N etwork s , Inc. S NM G lobal Holdings U nited O nline Inc . K aboos e Inc. S hutterfly , Inc. Ha nbitS oft, Inc. G amania Digital E ntertainment C o., G ungHo O nline E ntertainment, Inc . V a lueC lick Inc . G igaMedia Ltd. Modern T imes G roup Mtg AB C y berplex Inc. is eemedia Inc. F luid Mus ic C anada , Inc . S K C ommunications C o. , Ltd. Y edangO nline C orp. S NAP Interac tive, Inc . O pen T ex t C orp. NE O WIZ G ames C orporation E olith C o. Ltd. P hotoC hannel N etwork s Inc . NetDragon WebS oft, Inc. X ING AG Lingo Media C orporation MO K O .mobi Limited S ohu. com Inc. J umpT V Inc . K ings oft C o. Ltd. F rogs ter Intera ctive P ic tures AG T ota l S port O nline AS Ac celeriz e New Media, Inc. Wiz z ard S oftware C orpora tion Mix i, Inc. Digita lP os t Interac tive, Inc . C ornerWorld C orpora tion C hangy ou.com Limited G eoS entric O y j As s oc iated Media Holdings Inc . C hines e G amer Interna tiona l T enc ent Holdings Ltd. B right T hings plc B ey ond C ommerce, Inc . B igs tring C orp. UO MO Media, Inc Dolphin Digital Media , Inc . G ree, Inc .
TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.4x LTM EBITDA (slightly down from 9.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 35.3x multiple (Figure 12). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 8.1x (vs. 8.8x last week).
Hong Kong
0.2
1
India
Page 12
T E V/L T M E B IT DA (x)
40.0 35. 3 35.0 30.0 25.0 19. 8 20. 6 20.0 16. 2 15.0 A verage, 9. 4 10.0 4. 6 5.0 0. 3 O AO R B C Information S y s tems 0.0 0. 4 S ha nda Interactive E ntertainment Ltd. 1. 2 Northgate T echnologies Limited 1. 7 G ameO n C o Ltd. 2. 1 G amania Digital E ntertainment C o., Ltd. J umbuck E ntertainment P ty Ltd. G ungHo O nline E ntertainment, Inc. NE O WIZ G ames C orporation C hines e G amer International U nis erve C ommunications C orp.
2.1 Germany China United States Japan Hong Kong Canada Malaysia South Korea Taiwan Italy Australia Sweden
29. 5
4. 7
4. 7
5. 0
5. 0
5. 8
6. 1
7. 0
7.1
7. 3
7.4
7. 4
8.7
8.7
8.9
9.0
9.1
9.7
9.8
9.9
11. 9 10. 9 11. 2
13. 2
C hangy ou. com Limited
DXN H oldings B hd
S K C ommunications C o., Ltd.
C DC C orp.
Modern T imes G roup Mtg AB
S NAP Interactive, Inc.
U nited O nline Inc.
O pen T ex t C orp.
XING AG
Mix i, Inc.
NetDragon WebS oft, 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 (20), trading at an average multiple of 7.0x (up from 6.1x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.5x EBITDA (Figure 14). Eleven of the companies are Canadian (average 17.5x EBITDA).
Average TEV/LTM EBITDA - By Exchange
35.0 29.5 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 SEHK TSXV TSX KOSE NasdaqGS OSE TSE OM XTRA 17.4 15.9 11.8 10.6 9.8 9.7 7.4 7.4 7.1 7.0
(x) 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Average TEV/LTM EBITDA - By Country
17.5
11.9 10.6 9.8 9.8 9.7 7.5
7.3 7.3 5.0 4.7 1.2 0.3 India 1 Russia 1
5.0 4.7 4.6 2.1 CM AMEX KLSE ASX
1.2 0.3 RTS BSE
# Companies
5
3
4
2
7
2
1
5
14
1
20
1
1
2
2
1
1
# Companies
11
10
9
3
2
1
40
6
1
1
1
2
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
P/E (LTM) averages 17.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 14.1x LTM EPS (down from 17.0x last week), led by Tencent Holdings Ltd. Inc’s (700-SEHK) 47.1x multiple (Figure 15). Eleven of the companies have P/E multiples under 10x. The median is just 11.9x.
T encent H oldings Ltd.
S park Network s , Inc.
G igaMedia Ltd.
V alueC lick Inc.
S ohu.c om Inc.
IAC /InterActiveC orp.
Y edangO nline C orp.
Actoz S oft C o., Ltd.
K ings oft C o. Ltd.
S hutterfly , Inc.
C y berplex Inc.
K aboos e Inc.
DADA S pA
Page 13
P /E L T M (x)
50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 T he9 L imited P erfec t World C o., Ltd. 0.8 1. 7 1.8 N orthgate T ec hnologies Limited 1. 8 G iant Interac tive G roup, Inc . 2.5 N eteas e.c om Inc . 2.9 G amania Digital E ntertainment C o., Ltd. J umbuc k E ntertainment P ty Ltd. N E O WIZ G ames C orporation C hines e G amer International A verage, 14. 1 8.0 9. 2 11. 7 11. 9 11.9 12. 4 10.6 11. 0 11.2 13.6 14.9 15. 3 17.1 19. 0 20.4 20.6 22.3 28. 7 26.1 33. 7 30.9 47.1
5. 5
6.0
6. 5
DXN Holdings B hd
Modern T imes G roup Mtg AB
C hangy ou. com Limited
G ameO n C o L td.
S N AP Interac tive, Inc .
S handa Interac tive E ntertainment L td.
NetDragon WebS oft, Inc.
O pen T ex t C orp.
N gi G roup Inc .
G igaMedia Ltd.
C y berplex 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 (21), trading at an average multiple of 6.4x. On a geographic basis, the United States has the most companies (40), trading at an average of 31.0x earnings (Figure 17). Eleven of the companies are Canadian (average 25.1x EPS).
Average P/E - By Exchange
80.0 70.0 60.0 50.0 (x) 30.0 20.0 10.0 NasdaqGM GTSM 0.0 SEHK TSE NasdaqGS KOSE XTRA AMEX TSX CM 19.1
(x) 25.0 25.1
68.9
35.0 30.0
Average P/E - By Country
31.0
40.0
24.8 23.3 21.2
20.0 15.0 10.0 5.0
21.2
20.1
19.1
17.3 16.8
16.8 10.8 8.7 7.4
15.8 13.1
8.7
7.4
6.4 OTCBB
5.1 OM
4.9 KLSE
T enc ent Holdings Ltd.
S park Network s , Inc.
IAC /InterAc tiveC orp.
Worlds . com Inc.
S ohu. com Inc.
Y edangO nline C orp.
K ings oft C o. L td.
DADA S pA
Actoz S oft C o., L td.
XING AG
Mix i, Inc.
5.1
4.9 Malaysia 1
ASX
0.0 Germany United States Canada Japan China South Korea Italy Australia 2 Taiwan Sweden 1
# Companies
5
2
3
2
5
14
7
4
2
1
2
21
1
1
# Companies 40 11
2
3
6
9
10
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Page 14
UPCOMING EVENTS
E arnings Calendar
C ompany
C DC C orp. (N a sda qG S : C H IN . A) P hotoC ha nnel N etworks I nc. (TS X V : P N) S pa rk Network s, I nc. (AME X : L O V ) P erfec t W orld C o., L td. (N a sda qG S :P W R D) N etease. com Inc. (Na s da qG S : NT E S )
Figure 18. Earnings Calendar Source. Company reports
D ate & T ime
T uesda y , May 12, 2009 8: 30 AM (E D T ) W ednes da y, M a y 13, 2009 4:30 P M (E DT ) T hursda y , Ma y 14, 2009 1: 30 P M (P D T ) M onda y, M a y 18, 2009 8: 00 AM (E DT ) W ednes da y, M a y 20, 2009 9:00 P M (E DT )
Qu arter
Q 1 2009 Q 2 2009 Q 1 2009 Q 1 2009 Q 1 2009
C onf C all D etails
888-603-6873 888-300-8196 877-723-9518 866-519-4004 877- 941-2068
Page 15
C omparable C ompany Analys is > W eb 2 .0
P ric e P erformanc e
C ompa ny Na me Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin Digital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia Digital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. M agnitude Information S ys tems Inc. M ixi, Inc. M ode rn Times G roup Mtg AB M oggle , Inc M OK O.mobi L imited N E OW IZ G ames C orpora tion N etDragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rfect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge M edian C ur rency 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 C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D US D C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K US D AU D KR W HKD US D US D JPY IN R 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 HKD US D US D US D N OK 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 C AD T ic ker A CL Z A 052 790 3 838 A S MH B S GC B W AV B Y OC A IM:B G T B W BA C H IN .A C Y OU CGWY G TS M:3 083 CWR L T S X:CX C M :DA DXN DIB Z DG L P DG T W DP DM A 041 060 E XT I F NGP T S X:F MN FR G 6 180 3 812 G E O1V GA G IG M G RV Y T S E :36 32 3 765 A 047 080 I ACI I AS C .A O TC B B :ID AE IEE A S X:J M B T S X:J T V T S X:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B M MOG MKB A 095 660 7 77 NT E S N XP C 2 497 5 900 57 O TE X O PW V P W RD T S XV :P N Q PSA R BC I S NDA S F LY A 066 270 S T VI S NM N S MVI S OH U S TPC L OV S P XA 7 00 K IDS .Q NC TY T S CM T OS O TR EE T S XV :U S S UNTD U OMO V CL K V OIS W ZE N W ZE W DDD W YND O 1B C A 052 770 A 023 770 T S XV :ZIP E x change OT C B B KO SE TSE OT C P K OT C B B OT C B B OT C B B AI M OT C P K N as da qG S N as da qG S OT C P K GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B KO SE OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E KO SE N as da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X KO SE S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S KO SE OT C B B OT C P K OT C P K N as da qG S OT C B B AM E X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C N O N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AM E X OT C B B OT C B B XT R A KO SE KO SE T S XV U S D Ma rket C ap ($m) 1 3.8 9 9.4 2 6.8 0 .1 1 .2 3 .2 4 3.0 5 .6 2 5.3 15 7.3 1,5 27. 3 0 .0 57 5.6 6 .4 8 6.5 13 9.4 2 9.1 0 .0 1 .1 6 7.7 3 3.5 5 2.4 1 4.2 0 .4 2 0.4 2 4.6 17 8.2 9 1.0 4 8.8 1,8 62. 2 34 4.7 2 7.0 1,2 03. 8 16 7.5 8 6.3 2,3 92. 0 1 9.6 2 4.3 4 .0 1 5.3 6 9.7 7 2.5 57 6.9 1 1.1 2 .2 2 4.6 4 .4 70 8.4 2,0 20. 2 8 3.5 5 .0 48 7.1 37 7.2 3,8 09. 7 3 9.0 4 0.2 2 7.6 1,6 69. 7 10 5.8 99 7.1 4 7.0 1 2.3 17 3.4 3,4 26. 1 32 3.5 31 3.1 8 .1 0 .0 0 .0 2,1 16. 8 2 8.2 5 6.5 2 0.5 16, 568 .2 0 .3 25 3.7 6 2.8 0 .1 13 0.5 0 .8 60 5.1 2 1.0 89 7.0 2 .7 3 8.9 2 9.2 8 .9 0 .5 20 8.1 11 3.3 1 3.6 0 .3 C urrent Pric e 0.5 0 1 4,40 0.0 0 4 8,00 0.0 0 0.0 0 0.0 2 0.1 1 1.0 4 0.0 2 0.3 0 1.4 7 2 9.8 0 0.0 0 22 5.0 0 0.1 0 1.8 7 6.3 1 0.4 4 0.0 0 0.0 2 2.5 0 0.6 8 90 0.0 0 0.1 5 0.0 1 0.4 5 7.6 8 3 8.6 0 9 1,80 0.0 0 0.0 4 8.2 4 6.3 8 0.9 7 5,26 0.0 0 14 2,60 0.0 0 4,85 5.0 0 1 5.8 5 0.2 8 0.5 7 0.0 9 0.4 1 0.7 1 0.6 0 4.1 4 1.0 0 0.0 7 1.4 4 0.0 1 45 0,00 0.0 0 23 7.5 0 2.3 0 0.0 8 6 2,40 0.0 0 5.5 3 3 0.9 6 0.7 0 3 1,70 0.0 0 3 9.1 5 3 1.7 3 1.2 7 1 8.9 0 1.5 9 0.9 7 1.2 5 4 9.3 8 1 2.8 5 9,39 0.0 0 0.7 5 0.0 0 0.0 1 5 5.3 2 3.5 0 2.7 5 0.4 2 7 1.3 0 0.0 1 9.4 6 2.0 5 0.0 3 1 2.0 9 0.0 4 7.2 4 0.2 5 1 0.3 4 0.3 2 3.2 8 0.6 2 0.1 7 0.0 3 2 8.9 5 8,90 0.0 0 6,85 0.0 0 0.0 1 1 Wk 13.6 % 0.7 % 2.2 % 0.0 % 4.8 % -0.9 % -21. 8% -16. 7% -33. 8% 11.4 % -8.6 % 1 00. 0% 0.0 % -16. 7% 8.7 % -8.2 % 12.8 % -90. 0% -11. 8% 6.4 % 23.6 % -1.1 % -25. 0% 51.5 % -18. 2% -11. 7% 9.0 % -5.0 % 0.0 % 0.0 % 3.6 % -1.0 % -4.7 % 3.6 % 7.9 % -1.1 % 3.7 % 34.1 % 0.0 % -12. 9% 9.2 % 0.0 % 10.4 % 13.6 % -46. 2% 12.2 % -33. 3% -0.7 % 8.0 % 15.0 % 1.4 % 8.5 % 2.4 % 0.7 % 55.6 % -13. 9% -4.5 % -2.5 % 0.8 % 2.8 % 6.0 % 7.8 % 26.9 % -5.8 % -2.1 % -2.7 % 15.4 % -25. 0% -93. 3% -3.9 % -30. 0% 3.8 % 68.0 % -3.9 % 0.0 % -2.1 % -4.2 % 0.0 % 27.5 % 0.0 % 27.5 % 75.0 % -6.0 % 6.7 % 14.3 % 0.2 % 0.0 % -66. 7% -3.2 % 1.9 % 21.9 % 0.0 % 1 00. 0% -93. 3% 1.1% 0.0 % 1 Mth 5 6.3 % 0.3% 8.1% 7.1% 5 7.1 % -18. 5% -11. 9% 2 7.6 % -33. 8% 2 1.5 % 1 9.2 % 1 00.0 % 1 7.2 % -28. 6% 6 7.0 % 4 7.3 % 3 7.5 % -90. 0% 0.0% 0.0% 4.6% 4 7.5 % -25. 0% -28. 6% 3 6.4 % -0.5 % 1 1.6 % -0.2 % 3 3.3 % 1 1.7 % 1 0.8 % -1.0 % -8.7 % 1 7.9 % 4.5% -4.0 % 3 00.0 % 4 6.2 % -18. 2% -15. 6% 3 1.5 % 3.4% 2 7.8 % -16. 0% -46. 2% 2 9.7 % -33. 3% 1 1.4 % 5 2.7 % 1 5.0 % -16. 7% -1.0 % 3 2.9 % 8.8% 7.7% 1 1.8 % -5.3 % -9.3 % -0.8 % 1 3.9 % 0.6% 3.2% 2 04.9 % 6.4% 2 2.0 % -7.5 % 0.0% 2 00.0 % -99. 2% 1 5.0 % NM 2 5.6 % 1 80.0 % 1 5.4 % -28. 6% -32. 1% 0.5% -25. 0% 1 19.4 % 0.0% 3 5.8 % 1 22.7 % 2.7% 3 9.1 % 2 6.2 % -13. 9% -15. 0% -66. 7% 2.4% -8.2 % 3 5.4 % -66. 7% 3 00.0 % -99. 2% 16.7% 6.4% 3 Mth 42 .9% 16 .1% 43 .3% -7 0.0% 25 .7% -4 5.0% 30 .0% -4 .8% -7 0.5% 56 .4% NM 0 .0% 95 .7% -7 5.6% 41 9.4% 2 .7% 23 .9% -9 0.0% 50 .0% 66 .7% 15 .3% 59 .3% 18 5.7% -6 6.7% -1 9.6% 72 .6% 71 .2% -2 0.2% 33 .3% 35 .1% -1 1.9% 38 .6% 0 .4% 38 .4% 39 .3% 9 .2% 102 0.0 % 23 .9% -1 8.2% 1 .3% 42 .0% 57 .9% 39 .4% -4 .8% 75 .0% 4 .3% -6 6.7% -3 .0% 67 .3% 53 .3% 87 .5% 11 5.2% 84 .9% 57 .2% -2 6.3% 15 .4% -5 .7% -1 0.8% 62 .8% 25 .7% -1 .2% -3 9.4% 34 6.4% 64 .1% 55 .9% 20 .4% -2 5.0% 0 .0% -9 9.2% 20 .2% NM 12 .2% 32 0.0% 51 .7% -5 8.3% -3 6.0% -2 5.5% -2 5.0% 20 0.7% -5 0.0% 24 .2% 20 6.3% 56 .9% -5 7.3% 12 3.1% -4 .6% -2 2.7% -7 6.0% -6 .6% 30 .9% 37 .0% -7 5.0% 102 0.0 % -9 9.2% 40.7% 22 .1% 6 Mth 25 .0% 50 .8% 12 .9% -8 1.3 % -4.3% -3 8.9 % -3 0.7 % 57 .6% -7 7.9 % 70 .9% NM -8 6.7 % 17 2.1% -5 0.0 % 39 2.1% -1 1.9 % 22 .2% -9 8.0 % -4 0.0 % 0 .0% -2 8.4 % 53 .8% 50 .0% -9 8.6 % 28 .6% 65 .5% 17 7.7% -2 4.7 % 0 .0% 37 .8% 22 .6% 43 .1% NM 38 .6% 68 .6% 1 .0% 25 0.0% -7 0.0 % 12 .5% -4.7% 18 .3% 50 .0% 89 .9% -9.9% 16 .7% -1 3.8 % -1 6.7 % -3 3.9 % 51 .8% NM 87 .5% 35 2.2% 11 6.9% 56 .6% -2 6.3 % -5 9.0 % -3 7.4 % 14 .3% 12 2.8% 10 .1% -0.6% -5 7.1 % -1 6.7 % 11 2.3% 95 .0% 95 .6% 66 .7% -9 8.3 % -9 9.7 % 35 .0% NM -2.1% 75 .0% 39 .8% -9 8.6 % -2 1.4 % -3 5.1 % -4 0.0 % 43 7.3% -7 7.8 % 7 .7% 58 .1% 76 .5% -5 7.3 % 24 8.9% -1 8.4 % 6 .3% -8 5.0 % 16 .5% 47 .1% 15 .1% -7 5.0 % 43 7.3% -9 9.7 % 26.7% 12 .7% 1 Yr -33 .3% 62.9 % -78 .3% 36.4 % -85 .4% -60 .7% -62 .2% -34 .0% -86 .8% -60 .1% NM -96 .7% 1 01. 8% -80 .4% 1 33. 8% -59 .0% -12 .0% -98 .0% -92 .5% -16 .7% NM -2. 2% 0.0 % -99 .1% NM 60.3 % 11.6 % -35 .4% -33 .3% -47 .2% -66 .1% -29 .7% NM -64 .2% -8. 6% -66 .8% 30.2 % -32 .1% -62 .5% -32 .5% 4.4 % -35 .5% 7.5 % -47 .4% -80 .0% -65 .9% -44 .4% -41 .3% -43 .9% NM 50.0 % 86.3 % -47 .8% 24.0 % NM -78 .6% -90 .2% -16 .1% -36 .2% -39 .6% -55 .6% -63 .3% -85 .2% 33.6 % -1. 6% -34 .3% -5. 1% -99 .9% NM -33 .8% NM -38 .6% NM 6.5 % -99 .4% -62 .5% -73 .8% -70 .0% NM -89 .5% -39 .7% -44 .3% -49 .1% NM 17.1 % -73 .4% -46 .9% -92 .5% -36 .4% -25 .2% -50 .7% -96 .4% 1 33. 8% -99 .9% -35.8% -43 .9% 52 We ek -35. 9% -11. 1% -79. 6% -97. 0% -89. 0% -73. 8% -68. 5% -46. 4% -89. 7% -61. 3% -21. 0% -95. 6% -5.5 % -87. 5% -6.0 % -61. 0% -12. 9% -98. 0% -94. 6% -59. 0% -39. 8% -13. 9% -85. 1% -99. 5% -77. 9% -22. 4% -4.2 % -43. 9% -42. 9% -49. 4% -67. 9% -51. 3% -16. 5% -67. 2% -30. 7% -68. 6% -20. 0% -79. 9% -74. 3% -38. 2% -44. 5% -52. 0% -11. 9% -50. 7% -82. 9% -69. 4% -66. 7% -52. 7% -47. 2% 0.0 % -25. 0% -15. 0% -57. 5% -5.2 % -51. 7% -81. 0% -90. 7% -18. 8% -41. 2% -40. 7% -61. 7% -72. 0% -86. 3% -8.3 % -14. 8% -52. 3% -30. 6% -99. 9% -99. 8% -39. 5% -30. 0% -40. 9% -30. 0% -4.9 % -99. 6% -66. 8% -74. 7% -70. 0% 2.4 % -88. 6% -42. 1% -69. 4% -50. 1% -94. 3% -26. 3% -73. 6% -57. 5% -96. 5% -37. 9% -29. 1% -54. 0% -97. 1% 2.4 % -99. 9% -53.1% -52. 2%
500.3
Figure 19. Price Performance Source. Capital IQ
Page 16
C omparable C ompany A nalys is > W eb 2.0
V aluatio n Multiples C om pany Nam e
Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media Holdings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C D C C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB Moggle , Inc MOK O.mobi L imited N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median
S ec to r
D irect Marketing G aming G aming Mobile Ins ta nt Mes s aging Me dia S ocia l Ne tworking S ocia l Ne tworking S ocia l Ne tworking G aming G aming Mobile G aming C ontent Advertis ing S ocia l Ne tworking S ocia l Ne tworking S NS A pps C ontent S ocia l Ne tworking S ocia l Ne tworking G aming C ontent D irect Marketing Me dia G aming G aming G aming Mobile G aming G aming G aming S ocia l Ne tworking Me dia G aming Me dia V ide o S ocia l Ne tworking C ontent S ocia l Ne tworking V ide o C ontent G aming Le arning S ocia l Ne tworking D irect Marketing S ocia l Ne tworking S ocia l Ne tworking Me dia G aming S ocia l Ne tworking G aming G aming G aming C ontent Me dia D irect Marketing C ollaboration Mobile G aming D igital Imaging S ocia l Ne tworking Me dia G aming D igital Imaging S e arch D ating Me dia S ocia l Ne tworking G aming S ocia l Ne tworking S ocia l Ne tworking Me dia P orta l Me dia G aming Me dia Me dia P orta l S ocia l Ne tworking Me dia Me dia Me dia S ocia l Ne tworking G aming P odcas ting C ontent C ontent S ocia l Ne tworking G aming G aming D irectory
Co untry
U nite d S tates S outh K ore a J a pan U nite d S tates U nite d S tates U nite d S tates U nite d S tates U nite d K ingdom U nite d S tates H ong K ong C hina U nite d S tates T a iwan U nite d S tates C anada Italy Malays ia U nite d S tates U nite d S tates U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany T a iwan J a pan F inland C hina T a iwan S outh K ore a J a pan J a pan S outh K ore a U nite d S tates C anada U nite d S tates C anada A us tralia C anada C anada C hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den U nite d S tates A us tralia S outh K ore a C hina C hina U nite d S tates J a pan India C anada U nite d S tates C hina C anada U nite d S tates R us s ia C hina U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates C hina U nite d S tates N orway U nite d S tates C anada U nite d S tates C anada U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany S outh K ore a S outh K ore a C anada
P rimary E xc hange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTS M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTS M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K N as da qG S OT C B B AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C B B XT R A K OS E K OS E T S XV
Tic ker
AC LZ A 052 790 3 838 AS MH BS G C B WA V BYO C AIM:B G T B WB A C HIN .A CY OU CG W Y G T S M:308 3 CWR L T S X:C X CM:DA D XN D IB Z DGL P D G TW DP DM A 041 060 E XT I F NGP T S X:F MN F RG 6 180 3 812 G E O1V GA G IG M GR VY T S E :3 632 3 765 A 047 080 IAC I IA S C .A OT C B B :IDA E IE E AS X:J MB T S X:J T V TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MMO G MK B A 095 660 777 NT E S N XP C 2 497 59 005 7 O TE X OP W V PW R D T S XV :P N QP S A R B CI S NDA S FL Y A 066 270 S TVI S N MN S MV I S OH U STPC L OV S P XA 700 K ID S .Q NC T Y TSCM T OS O TR E E T S XV :U S S U N TD U OMO VC LK VOIS W ZE N W ZE W DD D W YND O 1B C A 052 770 A 023 770 T S XV :ZIP
US D Market Cap ($m)
13. 8 99. 4 26. 8 0. 1 1. 2 3. 2 43. 0 5. 6 25. 3 1 57. 3 1,5 27. 3 0. 0 5 75. 6 6. 4 86. 5 1 39. 4 29. 1 0. 0 1. 1 67. 7 33. 5 52. 4 14. 2 0. 4 20. 4 24. 6 1 78. 2 91. 0 48. 8 1,8 62. 2 3 44. 7 27. 0 1,2 03. 8 1 67. 5 86. 3 2,3 92. 0 19. 6 24. 3 4. 0 15. 3 69. 7 72. 5 5 76. 9 11. 1 2. 2 24. 6 4. 4 7 08. 4 2,0 20. 2 83. 5 5. 0 4 87. 1 3 77. 2 3,8 09. 7 39. 0 40. 2 27. 6 1,6 69. 7 1 05. 8 9 97. 1 47. 0 12. 3 1 73. 4 3,4 26. 1 3 23. 5 3 13. 1 8. 1 0. 0 0. 0 2,1 16. 8 28. 2 56. 5 20. 5 16,5 68. 2 0. 3 2 53. 7 62. 8 0. 1 1 30. 5 0. 8 6 05. 1 21. 0 8 97. 0 2. 7 38. 9 29. 2 8. 9 0. 5 2 08. 1 1 13. 3 13. 6 0. 3 16,5 68. 2 0. 0 500. 3 39. 6
TE V/LT M R evenue
4.8 x 0.9 x 8.1 x 30.6 x 25.4 x 22.1 x 0.5 x 6.0 x 0.0 x 9.1 x 6.0 x 1.7 x 0.8 x 0.6 x 5.0 x 37.2 x 2.6 x 1.9 x 4.4 x 1.2 x 0.4 x 6.9 x 1.4 x 37.9 x 1.3 x 1.2 x 0.4 x 1.8 x 0.8 x 4.0 x 1.1 x 4.2 x 3.4 x 0.1 x 5.0 x 1.5 x 3.5 x 2.4 x 2.8 x 0.2 x 2.2 x 0.0 x 2.7 x 0.0 x 0.2 x 1.2 x 1.9 x 2.2 x 1.1 x 0.0 x 3.8 x 1.0 x 17.2 x 0.2 x 4.6 x 0.6 x 0.1 x 1.1 x 33.6 x 1.3 x 4.8 x 3.1 x 2.0 x 0.9 x 0.6 x 37.9 x 0.0 x 5.2x 1.9 x
TE V/ N TM R evenue
0.5x 1.4x 1.5x 0.4x 1.0x 1.5x 2.1x 0.0x 1.8x 0.9x 1.2x 3.3x 0.5x 0.9x 1.5x 3.3x 0.0x 1.2x 1.2x
TE V/LT M E BITDA
4.7 x 7.3 x 9.9 x 16.2 x 20.6 x 5.0 x 4.7 x 7.4 x 1.7 x 5.8 x 7.1 x 11.9 x 2.1 x 11.2 x 10.9 x 13.2 x 9.7 x 8.9 x 6.1 x 1.2 x 8.7 x 0.3 x 0.4 x 9.1 x 19.8 x 7.0 x 8.7 x 4.6 x 35.3 x 29.5 x 5.0 x 7.4 x 9.8 x 9.0 x 35.3 x 0.3 x 9.4x 8.1 x
TE V/NTM E BITDA
6.6x 6.4x 3.2x 6.3x 1 1.5 x 7.6x 0.0x 5.8x 2.0x 7.0x 7.6x 6.4x 3.6x 5.8x 1 1.5 x 0.0x 5.7x 6.4x
P /LT M E P S
15 .3x 11 .2x 22 .3x 17 .1x 8. 0x 5. 5x 19 .0x 9. 2x 1. 8x 11 .0x 20 .4x 6. 5x 14 .9x 33 .7x 6. 0x 28 .7x 12 .4x 2. 5x 11 .7x 1. 8x 26 .1x 1. 7x 2. 9x 10 .6x 11 .9x 13 .6x 47 .1x 0. 8x 30 .9x 20 .6x 11 .9x 47 .1x 0. 8x 14.1x 11 .9x
P /NT M E P S
2 4.5 x 1 3.5 x 1 1.3 x 3 1.1 x 1 3.9 x 1 5.4 x 1 2.1 x 2 0.5 x 9.2x 2 4.5 x 1 5.8 x 9 1.1 x 1 4.0 x 1 0.3 x 1 0.0 x 1 6.6 x 9 1.1 x 9.2x 20.9x 1 4.7 x
P /TangBV
1 .7x 0 .4x 0 .3x 1 0.2x 8 .4x 1 8.3x 0 .6x 1 .9x 2 .2x 2 .3x 1 .2x 4 .9x 0 .4x 3 .1x 1 8.4x 2 .6x 1 .1x 1 7.7x 2 .1x 1 .6x 3 .6x 3 .5x 0 .9x 0 .9x 5 .5x 3 .9x 1 4.5x 2 .0x 0 .7x 0 .6x 1 .5x 0 .5x 9 .8x 9 .2x 1 .3x 1 .9x 5 .3x 5 .7x 4 0.1x 3 1.0x 1 9.2x 0 .1x 0 .8x 1 .7x 7 .3x 6 .0x 0 .0x 5 .3x 5 .5x 4 0.1x 0 .0x 5.9x 2 .3x
Figure 20. Valuation Comparison Source. Capital IQ
Page 17
C omparable C o mpan y A nalys is > W eb 2.0
Su mmary b y C ountry
C om pan y Nam e U nited S tates C a na da C hina S outh K orea J apan T a iwan A ustralia G ermany N orwa y H ong K ong F inland I ta ly U nited K ingdom I ndia S weden R us sia M alays ia Gr an d To tal 40 11 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 92 U S D Market Cap ($m) C hina U nited S tates J apa n S weden C a nada S outh K orea T aiwa n G erma ny R uss ia H ong K ong I taly F inla nd M a la ys ia I ndia Aus tra lia U nited K ingdom N orway G rand T otal 31, 515.1 5, 092.2 2, 237.6 2, 020.2 2, 002.2 1, 231.0 1, 098.5 232.7 173.4 157.3 139.4 48.8 29.1 27.6 20.3 5.6 0.1 46, 031.1 Avg US D Market C ap ($m) C hina S weden Japan Ta iwan C ana da R us sia Hong K ong Ita ly S outh K orea United S tates G ermany Finland Malay sia India Australia United K ingdom Norwa y G ran d To tal 3,151. 5 2,020. 2 372. 9 366. 2 182. 0 173. 4 157. 3 139. 4 136. 8 127. 3 116. 3 48. 8 29. 1 27. 6 10. 2 5. 6 0. 1 500. 3 U S D LT M T otal R ev ($m) U nited S tates C hina S weden C ana da S outh K orea J a pan H ong K ong T aiwan I ta ly R uss ia I ndia M alays ia G ermany Aus tral ia F inland N orway U nited K ingdom G rand T otal 3, 791. 9 3, 606. 5 1, 737. 6 967. 3 655. 4 504. 9 409. 1 372. 6 231. 1 146. 9 136. 2 79. 0 53. 1 14. 8 6. 0 2. 1 0. 2 12, 714. 7 U S D LT M To tal E B IT DA ($m) C hina S weden U nited S ta tes C a nada J apan T aiwan S outh K orea I taly H ong K ong I ndia R uss ia G ermany M alays ia Aus tralia N orway U nited K ingdom F inland G rand T otal 1,811. 2 266. 2 240. 7 190. 3 132. 9 98. 4 83. 2 36. 9 25. 5 24. 0 19. 2 11. 9 10. 5 2. 8 -1. 1 -1. 7 -13. 4 2,937. 5 E B IT DA % C hina Aus tral ia T aiwan J apan I ndia I taly S weden M alays ia R uss ia H ong K ong C a nada N orway S outh K orea U nited S tates G ermany U nited K ingdom F inland G rand T otal 40. 6% 37. 2% 32. 3% 26. 1% 17. 6% 16. 0% 15. 3% 13. 3% 13. 1% 6.2% -2. 9% -6. 2% -7. 4% -10.2% -19.1% N/A N/A 7.5%
Figure 21. Comparison by Country Source. Capital IQ
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y Ex c hange
C om pany Nam e OT C B B N as da qG S OT C P K K OS E TSE N as da qG M T S XV TSX S E HK A ME X XT R A ASX GT SM O T C NO H LS E NYS E CM B SE N as da qC M OS E A IM OM R TS K LS E G rand To tal 20 14 10 7 5 5 5 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 92 U S D Market Cap ($m) N asdaqG S SE HK TSE OM NYS E K OS E GTS M OT CB B N asdaqG M TSX XT R A R TS OS E CM AM E X OT CP K T S XV H LS E KLS E BS E AS X N asdaqC M AI M OT CN O G rand T otal 18, 625.8 17, 522.2 2, 070.1 2, 020.2 1, 862.2 1, 165.2 753.8 392.0 283.8 249.0 232.7 173.4 167.5 139.4 85.8 81.1 63.2 48.8 29.1 27.6 20.3 12.3 5.6 0.1 46,031.1 Avg US D Mar ket C ap ($m) S E HK OM NY S E Na s daqG S TS E G TS M RT S OS E K OS E CM XT R A TS X Na s daqG M HL S E AME X KLS E BS E O TC B B TS X V Na s daqC M AS X O TC P K AIM O TC NO G rand Total 5,840. 7 2,020. 2 1,862. 2 1,330. 4 414. 0 376. 9 173. 4 167. 5 166. 5 139. 4 116. 3 62. 3 56. 8 48. 8 42. 9 29. 1 27. 6 19. 6 12. 6 12. 3 10. 2 8. 1 5. 6 0. 1 500.3 U S D LT M T otal R ev ($m) OM N a sda qG S S E HK NYS E CM R TS BSE OS E GT S M K OS E N a sda qG M K LS E TSE TSX AM E X XT RA OT CP K T S XV AS X HLS E OT CN O OT CB B AI M N a sda qC M G rand T otal 1, 737. 6 480. 1 418. 4 233. 6 231. 1 146. 9 136. 2 115. 3 91. 1 84. 7 81. 2 79. 0 77. 9 34. 5 31. 7 26. 5 19. 0 10. 1 7. 4 6. 0 2. 1 1. 7 0. 2 0. 1 12,714.7 U S D LT M Total E B IT DA ($m) N a sdaqG S S E HK OM NYS E TSE K OS E GT S M CM BSE OS E R TS XTR A K LS E AM E X AS X OT CN O AI M TSX T S XV N a sdaqC M N a sdaqG M HLS E OT CP K OT CB B G r and T otal 1,690. 4 599. 0 266. 2 144. 6 112. 4 80. 1 52. 4 36. 9 24. 0 20. 6 19. 2 11. 9 10. 5 6. 3 2. 8 -1. 1 -1. 7 -6. 5 -10. 3 -11. 4 -12. 3 -13. 4 -33. 1 -49. 9 2,937.5 E B IT DA % NYS E AS X GT SM TSE S EHK O T CB B N asdaqG S OS E BSE CM OM K LS E R TS K OS E O T CN O T S XV TSX XT R A N asdaqG M O T CP K AI M AM E X H LS E N asdaqC M G rand T otal 61. 9% 37. 2% 36. 3% 27. 7% 24. 1% 21. 5% 20. 3% 17. 8% 17. 6% 16. 0% 15. 3% 13. 3% 13. 1% 3.3% -6. 2% -6. 4% -14.8% -19.1% -27.1% -33.0% N/A N/A N/A N/A 7.5%
Figure 22. Comparison by Exchange Source. Capital IQ
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Financing - Last Three Months (US$ m)
Month Mar-09 Co mpany N ame Kaixin 001.com Vidyo Bu zznet Len dingClub S endMe Inc. Auditude G lam Media Vis ible Meas u res S uperS ec ret G oViral G reys tripe OMG P OP Aptu re S imu lmedia Tynt AnyS ource Media Pixazza Bit.ly Hu nc h S ports Compos ite DE AdultS pac e Myn gle 33Acro s s Th ree Melo ns Mar-09 T otal A pr-09 Co llective Media G OOM R adio Marin S oftware Th e R ubico n P rojec t FreeW heel Cellu fun Co nduc to r Inc. S c anS co ut Do ubleT wis t IMS h opping S ocialtext Mixercas t S oundCloud Tu beMogu l Tribal Nova Tripbas e S ocialcas t Brandtolog y S c an & Target J odange Fo odis ta A pr-09 T otal May-09 EveryZing Gist Azuki Systems I Love Rewards TimeBridge DocuSign Resonate Networks May-09 T otal USA USA USA Canada USA USA USA 2.0 14. 8 10. 9 8. 3 5.0 6.8 6.0 5.9 5.0 5. 0 USA F ra nce USA USA USA USA USA USA USA USA USA USA G ermany USA C ana da USA USA S ingapore F ra nce USA USA 10. 6 8.0 1.3 1.2 0.6 45. 3 52. 5 16.1 8. 3 12.0 2.0 1.4 1.4 3.3 3.0 2.5 4.7 4. 5 4. 1 8.1 5.0 10. 0 10. 0 8.0 16. 0 13. 0 5.0 12.0 C ou ntry C hina USA USA USA USA USA USA USA USA UK USA USA USA USA C ana da USA USA USA USA USA USA N etherlands USA Argentina 1.3 1.3 0. 6 0. 6 41. 1 50. 3 20. 0 43.0 12.0 10.0 1.3 1.3 0.8 4.1 4.0 3.9 3.2 3.1 2.0 2.0 2.0 5.0 10. 0 8.8 5. 5 10. 5 10.0 10.0 12. 0 12.0 Ang el/S eed Debt financ ing P IPE S eries A S eries B 20. 0 15.0 12.5 S eries C S eries D S eries E G rand Total 20. 0 15. 0 12. 5 12. 0 12. 0 10. 5 10. 0 10. 0 10. 0 8.8 5.5 5.0 4.1 4.0 3.9 3.2 3.1 2.0 2.0 2.0 1.3 1.3 0.8 0.6 159.5 20. 0 16. 0 13. 0 13. 0 12. 0 10. 0 10. 0 8.1 5.0 4.7 4.5 4.1 3.3 3.0 2.5 2.0 1.4 1.4 1.3 1.2 0.6 144.5 8.3 6.8 6.0 5.9 5.0 5.0 2.0 38.9
Figure 23. Financing, Last Three Months Source. Company reports
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C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
A zuki s ys tem s Docu S ign
HQ
U nited S ta tes U nited S ta tes
W ebs ite
www. azuk is ys tems .com www. doc usign. com
Des criptio n
P eerMeta provides web-e na bled mobile devic es a nd s ervices . The c ompa ny dev elops applic ations around iG oogle, F a c ebook, M yS pac e a nd Y ahoo. P eerM eta is bas ed in B oston, M a ss a chus etts . Doc uS ign, I nc. p rov ides s oftwa re services for electronic s igna ture and electronic c ontra c t executi on (E C E ). It offers P rofess ional E d ition, which ena bles individua ls and bus iness es to s end their documents for signa ture; C orpora te E dition, a n elec tronic signature a nd c ontrac t execution s olution tha t a u toma tes the proces s of manua lly s ending, si gning, tra c ki ng, a nd s toring doc uments ; a nd D ocuS i gn C onnect, a suite of integration services to extend D ocuS ign P la tform ca pa bilities into exis ting s ys tems or new a pplica tions . The compa ny a ls o provides C onnec t for S ales forc e, which ena bles us ers to s end doc umen ts ; ca pture contra ct and env elope da ta ; view va rious contra ct s tatus a nd data in the dashboard tab enabling vis ibility into va rious contra ct ac tiv ity a cros s the entire orga niz a tion; a nd extent form data prov ided during the signing proc ess by a utoma tica lly injecting it into S a les force O bjects eliminating the need to rek ey data . I t s erves indus tries, s uc h as a griculture, bio-technology , bus iness s ervices , co nstruction, c onsulting, consumer electronics , debt s ettlement, educa tion, engineering, fina nc ia l services ga ming, gov ernment, hardwa re, healthc are, ins ura nce, lea sing, ma nufa cturing, mining, mortga ge, non-profit pharmac eutica l E very Zing C orp. is a podc as t sea rc h engine tha t lets the user s ea rch a udio of both a udio and video podca sts. The company wa s founded in 2006 as P odZinger Corp. a nd changed its na me to E veryZ ing C orp. in 2007. E veryZ ing is bas ed in C a mbridg e, Ma s sa chus etts. E veryZ ing C orp. is a s ubsidia ry of B B NT S olutions , LL C . G ist L td. prov ides s upply cha in s olutions for grocery , retail, elec tronics , ga s , and chemica l indus tries . It offers s trategic sup ply chain trans formation, s upply cha in planning, bus iness modeling, network design, wa rehouse s olutions , and distribution s olutions . T he c ompa ny a lso provide s inbound a nd outbound mana gement; network opera tions , such a s network design a nd optimiza tion, s oluti on deliv ery, s upply cha in opera tions, and prima ry distribution; cus tomer fulfilment, which inc ludes phys ic al replenis hment, rev erse logis tic s, and va lue-add services ; and cha nge management. T he company wa s formerly known a s B OC Dis tribution S ervices Limited and changed its na me to G ist L td. in J une, 2001. T he compa ny wa s inc orpora ted in 1951 and is hea dqua rtered in B a sings toke, U nited K ingdom. I t has opera tions in E urope, As ia, Aus tra la s ia, a nd North America . G ist L td. opera tes as a subs idia ry of T he B O C G roup L td. I Love R ewards, Inc ., an inc entiv e mark eting compa ny , engages in the design, development, a nd implementa tion of incentive s olutions for companies and bus iness es in the United S ta tes a nd C a na da. I t offers online rewards a nd employee recognition, s ales incentiv es, c us tomer loya lty, dea ler inc entiv es, not for profit, a nd cus tom solutions . The c ompany prov ides its solutions through a W eb-ba s ed engine a nd foc uses on employ ee moti va tion, cus tomer loya lty, and va lued beha viors. I L ove R ewa rds, I nc. was founded in 1995 a nd is bas ed in T oronto, C ana da with a n additional offic e in N ew Y ork, the United S ta te s. R es ona te N etwo rk s is a n online advertising network tha t wa s crea ted to help public a ffa irs , political and corpora te adv ertis ers a nd a gencies mo re prec isely target and reach web users , bas ed on thei r a ttitudes and iss ue pos itions on a wide range of topic s . Timebridge, I nc. offers person al s cheduling ma na ger that ena bles profess iona ls to s c hedule their time. The compa ny ’s one-s tep sc heduling a llows s c heduling meetings with la rge groups or individua ls ac ros s time zones , c alenda ring s ys tems , and companies. It allows us ers to schedule meetings a nd share thei r a va ila bility with others , a s well as connec t direc tly with calenda rs , inc luding O utlook a nd G oogle
E veryZing
U nited S ta tes
www. every zing. com
G is t
U nited S ta tes
www. gis tworld.c om
I Love R ewards
C a nada
www. iloverewards. c om
R es on ate Netwo rks T im eBridge
U nited S ta tes U nited S ta tes
www. res onatenetwork s. com www. timebridge. c om
Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 20
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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