SOFTWARE & SERVICES
19 MAY 2009
WEB 2.O WEEKLY
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
AD NETWORK COMPANY CYBERPLEX RAISES C$15 MILLIO N IN EQ UITY FINANCING
CA N AD A’ S C Y B ER PL E X RA I SE S MO N E Y T O F U EL N E XT L E V EL OF G RO WT H
Last week we saw a number of companies in the media and W eb 2.0 sector reporting earnings, but none was more surprising than Cyberplex. This company, operating in the ad network space, continued to surprise investors both on the earnings front and capital market activity. In posting approximately 300% growth in revenues Y/Y (see figure below), the company has demonstrated the merit of its business model and has returned to the equity markets for C$15 million to fuel the next phase of its growth.
S egmented R evenue, by Quarter
35 500. 0% 450. 0% 30 400. 0% 25 350. 0% 300. 0% 250. 0% 15 200. 0% 150. 0% 100. 0% 5 50. 0% 0 Mar-07 J un-07 Mar-08 J un-08 Dec-07 Dec-08 S ep-07 S ep-08 Mar-09 0.0% (% )
20 ( $m) 10
Technology S ervices (L HS ) Web A dvertis ing ( LHS ) Total revenues - y oy grow th (R HS )
C yberplex a big boost for financing activity in May: Month-to-date financings in May totalled benefited from a financing from Cyberplex for $12.9 million. So far, there have been 14 financings deals greater than $5 million and only three less than $5 million. Except for Cyberplex, no deals $10 million, with the capital raise by Imeem and EveryZing closely behind at $8.8 million respectively.
$84.3 million and in May with seven were greater than and $8.3 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 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770-KOSE) led the group with a 30.9% return, while Mixi, Inc. (2121-TSE) had the worst return, dropping 9.2% 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
Page 2
THE WEB 2.0 UNIVERSE Ninety-three public Web 2.0 companies identified: Our W eb 2.0 universe contains 93 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 $50.6 million), with average trailing revenue of $148.5 million (median $55.6 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 1.6x) and 9.3x trailing EBITDA (median 8.7x). Fourteen of the companies have more than 500 employees.
C omparable C ompan y A nalys is > W eb 2.0
C om pany Nam e
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 Holdings Inc. B igstring Co rp. 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 In ternational 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 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 M us ic Ca nada, In c. 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 Wo rld 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 Myriad G rou p AG 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 izza 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
L TM as o f T ic ker
3 /31 /200 9 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 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 9 /30 /200 8 2 /28 /200 9 NA 1 2/31 /200 8 2 /28 /200 9 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 2 /28 /200 9 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 1 2/31 /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 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 8 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 C GW Y G T S M:308 3 C WR L T S X:C X C M:D A D XN D IB Z D G LP DGT W D P DM A0 410 60 E XT I F NG P T S X:F MN F RG 61 80 38 12 G E O1 V GA G IG M GR VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A OT C B B :ID AE 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 MY R N 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 S T VI S N MN S MV I S OHU S T PC LOV S P XA 70 0 K ID S .Q N CT Y TSCM T OS O TR EE T S XV : US S U NT D U OMO V C LK V OIS 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 Nas da qG S Nas 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 K OS E OT C P K OT C B B TSX XT R A GT S M TSE HLS E NY S E Nas da qG S Nas da qG M TSE OS E K OS E Nas 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 Nas da qG M OT C B B TSE OM OT C B B AS X SWX K OS E S E HK Nas da qG S OT C P K TSE BS E Nas da qG S Nas da qG S Nas da qG S T S XV Nas da qC M 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 Nas da qG S OT C B B AME X OT C B B S E HK OT C P K Nas da qG S Nas da qG M OT C NO 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 AME X OT C B B OT C B B XT R A K OS E K OS E T S XV
Trading Currenc y H Q
USD KR W J PY USD USD USD USD GBP USD USD USD USD TWD USD C AD EUR MY R USD USD USD USD KR W USD USD C AD EUR TWD J PY EUR USD USD USD J PY J PY KR W USD USD USD C AD AU D C AD C AD HKD C AD USD USD USD J PY S EK USD AU D C HF KR W HKD USD USD J PY INR USD USD USD C AD USD USD USD USD KR W USD USD USD USD USD USD USD HKD USD USD USD NOK USD C AD USD USD USD USD USD USD USD USD EUR KR W KR W C AD 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 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 outh 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 outh K orea J apan J apan S outh K orea U nited S ta tes C ana da U nited S ta tes C ana da Aus 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 Aus tra lia S witzerla nd S outh 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 outh 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 outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany S outh K orea S outh K orea C ana da
Cu rr ent 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 5 62 ,400 .00 6 30 .96 1 31 ,700 .00 39 31 .73 1 18 .90 2 0 .97 1 49 .38 13 9 ,390 .00 1 0 .00 0 55 .32 3 2 .75 0 71 .30 0 9 .46 2 0 .03 12 0 .04 7 0 .25 10 0 .32 3 0 .62 0 0 .03 29 8 ,900 .00 6, 850 0 .01
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 9 8.2 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 9.2 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 .0 496.0 5 0.6
U S D LT M To tal R ev ($m)
4.1 75. 7 61. 8 0.1 0.1 7.7 1.8 0.2 0.0 389 .9 222 .5 6.7 56. 2 1.3 70. 3 231 .1 78. 7 NA 0.5 NM 0.9 20. 2 NM 7.2 4.6 5.5 126 .0 76. 5 6.0 233 .6 190 .4 39. 7 30. 1 115 .3 56. 4 1 ,40 6.4 0.0 0.0 1.3 13. 7 13. 4 70. 7 120 .2 0.8 11. 8 60. 7 0.1 120 .3 1 ,73 7.6 NM 1.1 40. 0 200 .8 87. 3 451 .8 NM 100 .8 136 .2 782 .6 197 .2 210 .5 17. 2 0.1 146 .9 522 .7 215 .2 186 .7 3.0 2.0 0.1 460 .0 NM 57. 3 0.1 1 ,04 7.8 112 .0 250 .2 67. 0 2.1 215 .6 25. 8 811 .2 0.6 591 .7 0.0 23. 1 6.1 0.1 NA 47. 6 55. 6 15. 8 2.8 1 ,737 .6 0.0 148.5 55. 6
US D L TM T otal E B ITDA ($m)
(4 .4) 1 5.1 4 .9 (2 .3) (2 .1) (1 1.8) (8 .6) (1 .7) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.5 NM 7 .3 3 6.9 1 0.8 NM (3 .2) (3 .0) (3 .0) (0 .1) NM 2 .4 (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) 0 .8 5 3.9 3 9.9 29 3.7 (4 .9) 3 1.0 2 4.0 19 9.2 (2 .1) 11 3.9 (0 .8) (1 1.4) 1 9.2 24 0.2 2 8.3 1 2.1 0 .9 (0 .7) (0 .1) 20 0.5 (1 .1) 1 2.3 (2 .5) 51 2.5 (1 3.5) 8 4.3 1 .9 (1 .1) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .3) (4 .6) (6 .0) (0 .7) NM 1 5.2 1 2.4 (1 .2) (3 .0) 51 2.5 -15.9 33.1 0 .9
E BITD A %
NM 20 .0% 8 .0% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% NM 10 .4% 16 .0% 13 .7% NM NM NM NM -0 .3% NM 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% NM -4 .3% -6 .3% NM 38 .0% 15 .3% NM NM 1 .9% 26 .8% 45 .7% 65 .0% NM 30 .8% 17 .6% 25 .5% -1 .0% 54 .1% -4 .9% NM 13 .1% 46 .0% 13 .2% 6 .5% 31 .4% -3 4.8% -6 0.5% 43 .6% NM 21 .5% NM 48 .9% -1 2.0% 33 .7% 2 .9% -5 0.6% -6 .2% 0 .4% 21 .9% -7 8.2% 17 .8% NM -1 9.8% -9 8.2% NM NM 32 .0% 22 .4% -7 .6% NM 0 .0% 65 .0% -9 8.9% 8.3% 16 .0%
TE V/LT M R evenu e
4.6 x 0.9 x 8.1 x 30.6 x 25.4 x 22.1 x 0.4 x 6.0 x 0.0 x 9.1 x 6.0 x 1.2 x 0.8 x 0.6 x 5.1 x 37.2 x 2.7 x 1.9 x 4.4 x 1.2 x 0.4 x 6.9 x 1.4 x 37.3 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 10.9 x 0.1 x 5.0 x 1.5 x 3.5 x 2.8 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 1.7 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 37.3 x 0.0 x 5.2x 1.6 x
T E V/LT M E B IT DA
4.7x 5.5x 9.9x 1 6.2 x 1 1.3 x 5.0x 4.2x 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 2 5.8 x 7.0x 8.7x 4.6x 3 5.3 x 2 9.5 x 5.0x 7.5x 9.8x 9.0x 3 5.3 x 0.3x 9.3x 8.7x
E mployees
11 NA NA 3 4 45 43 9 46 NA 628 37 NA NA NA 574 NA NA 7 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 2 ,27 1 NA NA 90 14 NA 2 ,96 9 3 NA 405 NA 2 ,42 6 NA 19 NA 286 3 ,40 0 630 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 1 682 210
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 ) C yberplex a big boost for financing activity in May: Month-to-date financings in May totalled $84.3 million and benefited from a financing from Cyberplex for $12.9 million. So far, there have been 14 financings in May with seven deals greater than $5 million and only three less than $5 million. Except for Cyberplex, no deals were greater than $10 million, with the capital raise by Imeem and EveryZing closely behind at $8.8 million and $8.3 million, respectively. 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 $15 million.
Financing Activity Last Three Months
180.0 6.7
160.0
6.6
6.5 140.0
6.4 120.0 6.3 100.0 (US$m) 6.2 80.0 6.1 60.0 6.0 (US$m)
40.0 5.9
20.0
5.8
0.0 Mar-09 Apr-09 Total Average May-09
5.7
Figure 2. Financings, Last Three Months Source. Company reports
C yberplex largest deal in May: After two weeks into May, Cyberplex tapped the equity markets for $12.9 million. Imeem, a company from the social networks sector, follows with an $8.8 million raise, followed very closely by EveryZing at $8.3 million. Eleven of the 14 deals in the month are equal to or greater than $5 million. 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 Cyberplex Buzznet FreeWheel SendMe Inc. LendingClub Miva Auditude Conductor Inc. Cellufun Glam Media SuperSecret Visible Measures Imeem GoViral EveryZing ScanScout Batanga BlogHer Inc. Gist Fuhu Inc. Azuki Systems I Love Rewards Greystripe Viximo OLX DoubleTwist TimeBridge DocuSign OMGPOP IMShopping Socialtext Apture Mixercast Simulmedia Medialets Tynt SoundCloud AnySource Media Pixazza TubeMogul Tribal Nova Tripbase Hunch Resonate Networks Sports Composite Bit.ly Mo'Minis Socialcast Brandtology Scan & Target AdultSpace Myngle Jodange 33Across Three Melons Foodista Apr-09 Mar-09 May-09
Page 4
Ad Network is the most active sector: Activity over the last three months was busiest in the Ad Network sector, with 10 companies raising over $78.7 million (Figure 4). The Media sector has the next highest totals, with eight companies raising $63.4 million. It is important to note that the following sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Video, and Social Networks.
Page 5
Capital Market Activity by Sector - Last Three Months
90.0
80.0
70.0
60.0
(US$m)
50.0
40.0
78.7 63.4 49.5 48.5 30.2 29.1 18.3 14.4 12.0 Lending 12.0 Mobile 10.4 Widget
30.0
20.0
10.0
8.9 Infrastructure
7.5 Virtual World
7.0 Blog
6.8 Aggregation
5.5 Mobile Ad
Comment/Reputation
Social Commerce
0.0 Media Social Networks Video Ad Network
5.0 Collaboration
4.7
4.1 Publishing
3.1 Visual Commerce
2.0 Microblog
2.0 Crowdsourced Content
2.0 Travel
1.3 SAS
1.3 Online Learning 1
Gaming
Search
# companies
10 8 5
6
2
6
2
Analytics 3
1
1
2
2
2
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).
Page 6
Web 2.0 Index Price Performance
1 20.0
1 00.0
80.0
60.0
40.0
20.0
-
Index: Web 2.0 X (Market Cap Weights)
Figure 5. Web 2.0 Price Performance Source. Capital IQ
NASDAQ Composite Index - Share Pricing
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 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770KOSE) led the group with a 30.9% return, while Mixi, Inc. (2121-TSE) had the worst return, dropping 9.2% in the week.
Page 7
1 Week P rice P erformance
Y nk K orea Inc. Chines e G amer International G ungHo Online Entertainment, Inc. A Q Interactive, Inc. Northgate Technologies Limited L ingo Media Corporation HanbitS oft, Inc. Quepas a Corp. S hutterf ly , Inc. NetDragon WebS oft, Inc. PhotoChannel Netw orks Inc. Tencent Holdings Ltd. Eolith Co. Ltd. X ING A G K ings oft Co. Ltd. Tree.Com, Inc. G ree, Inc. S handa Interactive Entertainment Ltd. B ey ond Commerce, Inc. S K Communica tions Co., Ltd. G amania Digital Entertainment Co., Ltd. G iant Interactive G roup, Inc. Y edangOnline Corp. The9 Limited G ameOn Co Ltd. Open Tex t Corp. Changy ou.com Limited Neteas e.com Inc. V alueClick Inc. NEOWIZ G ames Corporation My riad G roup A G Openw ave S y s tems Inc. Webz en Inc. Modern Times G roup Mtg A B S ohu.com Inc. A ctoz S oft Co., Ltd. IA C/InterA ctiveCorp. Frogs ter Interactive Pictures A G Cy berplex Inc. G igaMedia Ltd. Ngi G roup Inc. Perf ect World Co., Ltd. TheS treet.c om, Inc. S park Netw orks , Inc. Mix i, Inc. -15.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
30.9% 30.4% 21.5% 18.9% 16.9% 15.0% 13.3% 11.1% 10.7% 9.8% 9.7% 8.2% 7.3% 5.2% 4.0% 3.8% 3.8% 2.7% 2.5% 1.7% 1.3% 1.1% 0.8% 0.5% 0.0% -0.4% -1.1% -1.6% -1.9% -2.6% -2.9% -3.2% -3.4% -3.8% -4.7% -5.1% -5.3% -7.4% -7.4% -7.6% -8.0% -8.2% -8.4% -8.7% -9.2% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
Open T ext C orp. (Nas daqG S : OT E X)
Headline
Notes
O pen T ext C orp. to S how E C M S uite for U se with S AP (R ) O pen T ext C orp. announced tha t it will be work ing with S AP cus tomers to demons trate the O pen T ext E C M S uite for us e with S AP (R ) S olutions At S AP P H IR E (R ) 2009 O rlando C onference solutions during the S AP P H IR E (R ) 2009 O rla nd o and the 2009 A S UG Annual c onferences . During S AP P H I R E 2009, cus tomers will ha ve the opportunity to lea rn firs thand how the O pen T ex t E C M S uite for use with S AP s oluti ons provides trans parent acces s to enterpris e content of a ll k inds - whether c ustomer c orrespondence, s ca nned ima ges of inv oices , c ontra cts , or word proc es sing documents and sprea ds heets from within us ers' fa milia r S AP a pplic ations. T his s ignific antly boosts produc tiv ity beca us e the c ontent they need is automa tic ally a va ila ble in the context of their work . O pen T ext de livers E C M extensions that integrate with a nd c ompl ement S A P s olutions , helping orga niza tions reduce risk , inc rease opera tiona l effic ienc y a nd driv e I T c onsolidation. Among the sav ings being highlighted at the O pen Tex t booth (No. 336) this week inc lude: L owered AP proces sing cos ts as well as cost of goods, with the S AP I nvoic e M a na gement a pplication by O pen T ext; E limin a tion of legac y sy stem c ost (maintena nce, servers, c ons ulting, etc) with Lega cy D ecommiss ioning; R eduction of 50% or more in cons ult Modern Times G roup Mtg AB pla ns to ma k e ac quis itions . Modern T imes G roup a nnounc ed that the 2009 Annual G enera l M eeting of MT G sha reholders voted to s upport all of the resol utions propos ed to the Meeting. T he firm s a id, “T he Meeting also approved the B oa rd of Direc tors ' propos a l tha t the B oard be able to pa s s a resolution on one or more occa sions during the period up until the next Annua l G eneral Meeting to trans fer the Compa ny 's own C las s A a nd/or C las s B shares within the quoted s hare pric e spread on the N AS D AQ O M X S tockhol m in connection with potential a cquisitions . This authoriz a tion incl udes the right to res olve on the disapplica tion of the preferentia l rights of shareholders and tha t payment s ha ll be able to be made in forms other tha n cas h. T he purpos e of thes e authoriz a tions is to provide the B oa rd of Direc tors with inc reased freedom to adapt the C ompa ny 's ca pital structure a nd thereby increas e s ha reholder value, a nd/or to fina nc e potential a cquisitions .” Modern Times G roup Mtg AB (O M : MT G B ) wa s gra nted shareholder approval to repurchase own shares at its A nnua l G eneral Meeting held on M ay 11, 2009m. Under the progra m, the c ompany will repurc ha s e M TG C la s s A and/or Cla s s B shares , provided that the G roup's holding does not a t a ny time exceed 10% of the tota l number of iss ued a nd outsta nding sha res . T he repurchase of s ha res sha ll take pla ce on the O MX N ordic E x change S toc k holm and ma y only occ ur at a price wi thin the sha re price interva l regis tered at tha t time, where s hare pric e interv al means the differe nce between the highes t buy ing pric e a n d lowes t s elling pri ce. T he c ompany wa s a ls o a uthoriz ed to repurchas e its own Cla s s C s hares. T he repurc ha s e may only be effected through a public offer direc ted to a ll holders of C lass C sha res a nd sha l l c ompris e a ll outstanding Clas s C s ha res. T he pu rchas e ma y be affected a t a purc ha se pric e c orresponding to not les s than S E K 5. 00 a nd not more tha n S E K 5.10. T he total price will not exc eed S E K 1. 89 million and pay ment for the C las s C s hares s hall be ma de in ca s h. T he purpos e of the repurcha s e is to ensu re the delivery of Clas s B s ha re s under the P lan. T he share buyba ck a uthority i s va lid until the conclus ion of the next A nnua l Northga te Technologies Limited reported una udited cons olida ted a nd standa lone ea rnings results for the third quarter and nine months ended D ecember 31, 2008. O n cons olidated ba s is, the compa ny reported a net profit and E B I T of I NR 124. 3 million or I N R 3.44 per diluted sha re on rev enues of I NR 1, 484.0 million for the qua rter compared to net profit of I NR 140. 6 million or I NR 3. 94 per diluted s hare on revenues of I NR 1,404. 8 million and E B I T of I NR 140. 0 million in the sa me period a year ago. C onsolidated E B IT DA for the qua rter rais ed to IN R 310.8 million, a y ear-on-yea r increa se of 60% . F or the nine months ended December 31, 2008 on c ons olidated ba sis , the c ompany reported a net profit of I N R 572.7 mi llion or IN R 16.12 per diluted s hare on revenues of I NR 5, 112.7 million a nd E B I T of IN R 572. 3 million compared to net profit of IN R 526.6 million or I NR 15. 26 per diluted s hare on revenues of I NR 3, 885.8 million a nd E B I T of IN R 525. 6 million in the s ame period a y ea r a g o. Cons olidated E B I TD A for the period ra is ed to IN R 1,148. 7 million, a y ear-on-yea r increa s e of 83% .
Modern Times G ro up Mtg AB (OM: MTG Modern Times M ulls Acquisitions B)
Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B announces an E quity B uybac k B)
Northgate Tec hno logies Limited (B S E :590057)
Northga te T echnologies Limited R eports Una udited Cons olida ted a nd S tanda lone E a rnings R esults for the T hird Q ua rter a nd Nine Months E nded December 31, 2008
Magnitude Information S ys tems Inc. (OT CB B: MAG Y) S hanghai Telecom mun ic ation Co., L td.; The9 L im ited (N as daqG S :N CTY )
Ma gnitude I nformation S ys tems I nc. announced delayed 10-Q filing T he9 Limited a nd T he9 L imited J ointly P romote 3G S ervice
O n 05/12/2009, Magnitude I nforma tion S y stems Inc . a nnounc ed that they will be unable to file their next 10-Q by the dea dline required by the S E C. S hanghai T elec ommunic ation Co. Ltd. a nd T he9 Limited jointly promote a 3G service. U s er c an pa y for the service while la mbing down their tolls generated by mobile phone ca lls . B oth s ides wil l c oopera te in the publiciz ing and ma rketing of the service. In the future, they will sh a re sales network s . S ha ngha i T elec om will s oon promote other va lue-a dded s ervic es lik e mobile pa yment, location-base d information serv ice, mobile c ommunity, a nd mobile games . T here was widespread spec ulation that H urra y ! Holding Co. may be a cquired by S handa Interactive E ntertainment Ltd. Hurra y ’s American deposita ry receipts ros e by 30% to $2. 87 in N AS DAQ s tock market trading. “C aijing magazine reported that S handa is looki ng a trans a ction a nd a dea l is likely to be finalized in the next two week s. iseemedia Inc. and R emoba I nc. a nnounced that the new la unch of R emoM a il(TM ) and R emoS y nc(T M) solutions by R emoba utilizing iseemedia 's is eedocs (TM ) rich ema il attac hment viewing ca pa bilities , is now av ailable on the V eriz on wireless network . T hese new mobile email s ervices, integra ting is eedocs (T M) tec hnology, ena bles Microsoft E xchange ema ils with rich document a tta chments to be viewed on B R E W (T M) enabled mobile phones tha t V erizon sell s. T hey turn every B R E W (T M) enabled mobile phone into a S martphone. T hes e new email attac hment solutions ha ve now begun to provide both c ompa nies with a recurring royalty-bas ed revenue strea m per email a ccount monthly.
Hurray! Holding Co. L td. S handa S peculated T o B e Ac quiring Hurra y! (Nas daqG M:HR AY ); S han da Interactive E ntertain ment Ltd. (Nas daqG S : S N DA) is eemedia Inc . (T S XV: IE E ); R emoba Inc. iseemedia Inc. 's is eedoc s(T M) T ec hnology G oes Liv e in R emoba 's La test M obile E ma il S olution
S ocialwis e, Inc. (OT CB B: IDA E ) C DC C orp. (Nas daqG S : CHIN.A)
IdeaE dge I nc. will C ha nge its T ick er to S C LW from ID AE E ffectiv e M a y 13, 2009, IdeaE dge I nc. will change its O T C B B s tock ticker sy mbol to S C L W from I DAE . CD C Corp. A nnounces E arni ngs R es ults for the F irs t Q uarter E nded Marc h 31, 2009 CD C Corp. a nnounc ed earnings results for the firs t quarter ended M a rch 31, 2009. F or the quarter, the company's rev enue totaled $79. 0 million a 20% dec line over revenues of $98. 2 million in the firs t qua rter of 2008. T he compa ny's net income wa s $7. 9 million or $0. 07 per sha re, a n improvement over a net loss of $11.9 million or $0.11 per sha re in the corres ponding qua rter of the prior y ea r. B etawa ve Corporation reported un audited cons olida ted earnings res ults for the first quarter en ded M arch 31, 2009. F or the quarter, the company reported net los s of $4, 413,667 or $0.15 net los s per s ha re ba s ic a nd dilute d a nd net cas h used in operating a ctivities of $4,647, 942 on revenues of $1,388, 420 against net l oss of $4, 179, 398 or $0.17 net los s per s hare ba sic and diluted and net c ash used in opera ting activi ties of $641, 002 on revenues of $657, 150 aga ins t a year. T otal revenue increa sed 111% to $1,388, 420 for the three months ended M a rch 31, 2009 from $657, 150 for the firs t quarter of 2 008. Cy berplex Inc. announced tha t it ha s entered into an a greement with a s yndica te of underwriters led by G MP S ec urities L .P . , whic h hav e a greed to purchas e, on a bought dea l basis , 9, 375,000 common s hares of the Compa ny at a purchas e price of $1.60 per c ommon s ha re, for a ggrega te gross proceeds of $15, 000, 000. T he Compa ny intends to us e the net proceeds of the prospectus for general c orpora te purpos es a nd potential acquisitions .
B etawave Corporatio n (OT CB B: B WA V) B etawa ve Corporation R eports Una udited Cons olida ted E a rnings R esults for the F irst Q uarter E nded M arch 31, 2009
C yberplex Inc . (TS X: C X)
Cy berplex Mulls Acquis itions
C yberplex Inc . (TS X: C X) C DC C orp. (Nas daqG S : CHIN.A)
Cy berplex Inc. ha s filed a F ollow-on E quity O ffering in the Cy berplex Inc. ha s filed a F ollow-on E quity O ffering in the a mount of CAD 15. 00 million. a mount of CAD 15 .00 millio n. CD C Corp. R eports E a rnings R esults for the F irst Q ua rter CD C Corp. reported ea rnings results for the first qua rter of 2009. F or the period, the compa ny reported Adjus ted E B I T D A from c ontinuing of 2009 opera tions of $6.7 mill ion c ompa red to $0. 9 million, for the firs t qua rter of 2008. I n the firs t quarter of 2009, the compa ny als o recorded opera ting cas h flows of $2.1 million c ompa red to $5.3 milli on in opera ting ca sh flows in the firs t quarter of 2008.
Page 9
Neteas e. com Inc. (Nas daqG S : NT E S ); On 2 Tech nolo gies In c. (AME X:ONT )
Netea se. c om I nc. E nters into A S trategic P a rtners hip Agreement with O n2 T ec hnologies I nc
Netea se. com Inc. ha s entered into a s trategic partnership a greement with On2 T echnologies I nc . NetE ase will deploy On2's V P 6 enc oding forma t a nd F lix E ngine trans c oding s oftwa re in a number of its v ideo channels . On2 V P 6(R ) is a proprieta ry video format developed by On2 a nd licensed by Adobe(R ) for F la s h(R ) P la yer a nd S un for J avaF X , a ss uring ha ss le-free pla ybac k . On2 V P 6 offers s uperior compres sion performance to S orens on S pa rk and H .264 B as eline profile. O n2 F lix E ngine is a leading s erver-s ide tra ns coding s olution for crea ting a nd publishing web video. Flix E ngine ena bles s upport for a broad ra nge of input formats including M P E G -2, MP E G -4, H. 263, H .264, Q uick Time, W indows M edia a nd more. Flix E ngine outputs On2 V P 6, H .264, a nd S orens on S pa rk ba sed video for Adobe F la s h P l ayer as well as H. 264 video for Apple(R ) iP od(R ) and iP hone(TM ), 3G P video for mobile devices a nd video S un J avaF X. K a boose Inc . a nnounc ed unaudi ted cons olidated ea rnings res ults for the first qua rter ended M a rch 31, 2009. F or the period, the compa ny reported loss before income ta x es of CAD 4,062, 000 a ga ins t C AD 4,706, 000 a y ear ago. Los s from c ontinuing operations wa s C AD 4,652, 000 or CA D 0.03 per ba s ic a nd diluted s hare agains t CA D 3,934, 000 or CAD 0.03 per bas ic and diluted s hare a year ago. Net loss wa s C AD 4,912, 000 or C AD 0.03 per b a sic a nd diluted s ha re on revenues of C AD 16, 751, 000 a ga ins t CA D 3,787, 000 or C AD 0.03 per ba s ic a nd diluted s ha re on revenues of C A D 16,297, 000 a year a go. N et ca s h provided by operating a ctivities was CA D 2,760, 000 agains t net cas h us ed in operating activities of C AD 3,084, 000 a yea r a go. P urchas es of property , plant a nd equipment, net of tax credits were a mounted to CAD 334, 000 ag ainst C AD 537, 000 a yea r ago. T enc ent Holdin gs Ltd. announced ea rnings results for the firs t qua rter ended March 2009. F or the quarter, the company reported net income of HK D 1. 05 billion ($135. 5 million), or 57 cents a s hare, compa red to H K D 534 million, or 30 cents, in the y ear-earlier period. R ev enue through Ja nuary to Ma rch tota led HK D 2.5 billion, up from H K D 1. 4 billion. T enc ent Holdin gs Ltd. (S E HK : 700) was granted s ha reholder a pprova l for a n E quity B uybac k a t the Ann ua l G eneral Meeting held on Ma y 13, 2009. Under the progra m, the compa ny will repurchas e 180, 093,334 s hares, repres enting 10% of the is sued s ha re ca pital of the C ompany . Any repurcha s e will be made out of funds which a re lega lly available for the purpos e in a ccordance with the memorandum of as socia tion and bye-la ws of the Compa ny a nd the Companies A ct. T he repurc ha ses will be in a cc orda nce with l aws a nd requirements and regulations of the S tock E xc ha nge of Hong K ong L imited or on any other stoc k exc ha nge on whic h the sha res of the Compa ny may be lis ted and recogniz ed by the S ec uri ties and F utures C ommis sion a nd the S tock E x cha nge of Hong K ong L imited for this purpose, s ubject to and in ac corda nc e with a ll applicabl e la ws a nd requirements of the S ec urities and F utures C ommis s ion, T he S tock E x change of H ong K ong L imited or a ny other stock exch ange a s a mended from time to time. T he s hare buy ba ck progra m shall be valid until the ea rlies t of the conclus ion of the next Annual G enera l Meeting, or the expiration of the period within whic h the next Annua l G eneral Meeting of the C ompa ny is required by the B ye-l J umpTV I nc. annou nced ea rnings resu lts for the firs t qua rter ended March 31, 2009. F or the qua rter, the company reported revenue of $6. 6 million c ompared to $1. 9 million in the s ame period in 2008, mark ing a y ear ov er y ear inc reas e of 247% . T he net loss wa s $5. 8 million (including $1.7 million of non-cas h charges (1)) or $0.05 per s hare ba sic and diluted for the firs t qua rter of 2009 compa red to $1.5 million (including $0.7 million of non-cas h charges (1)) or $0.03 per s hare ba sic and diluted for the sa me period in 2008. The revenue a nd net loss for the three months ended M arch 31, 2008 reflec t the res ults of o pera tions of N euL ion Inc. the ac counting a cquirer, prior to the merger between N euLion I nc. and J umpTV Inc. on O ctober 20, 2008.
K aboo s e Inc. (T S X:K AB)
K a boos e I nc. A nnounces U na udited C onsolida ted E a rnings R esults for the F irst Quarter E nded M arch 31, 2009
T enc en t Ho ldings Ltd. (S E H K: 700)
T enc ent H oldings Ltd. Announces E a rnings R es ults for the F irst Q ua rter E nded M a rch 2009 T enc ent H oldings Ltd. announces a n E quity B uybac k
T enc en t Ho ldings Ltd. (S E H K: 700)
J u mpTV Inc . (TS X : J TV)
J umpT V I nc. Announces E arnings R es ults for the F irst Quarter E nded Marc h 31, 2009
S ocialwis e, Inc. (OT CB B: IDA E ) S ocialwis e, Inc. (OT CB B: IDA E ) T enc en t Ho ldings Ltd. (S E H K: 700)
S oci a lwis e, Inc . has C ha nged its T ick er to S CL W from E ffectiv e M a y 13, 2009, S ocia lwis e, Inc . c ha nged its O T C B B s tock ti ck er s ymbol to S C LW from ID AE . ID AE IdeaE dge , Inc. ha s C hanged its N a me to S ocia lwis e, Inc . On M ay 13, 2009, I dea E dge, Inc . c ha nged its name to S ocialwise, Inc. T enc ent H oldings Ltd. R eports Una udited Cons olida ted E a rnings R esults for the F irst Quarter E nded M arch 31, 2009 T enc ent Holdin gs Ltd. reported una udited cons olida ted earnings res ults for the first quarter ended M a rch 31, 2009. F or the quarter, the company reported profit before inc ome tax of R M B 1. 2 billion compared to R MB 0.64 billion in the s a me period a y ear ago.
P hotoC han nel N etworks Inc. (T S XV: PN)
P hotochannel Network s Inc . R eports U naudited E arnings P hotoC ha nnel N etworks Inc . reported una udited earnings res ults for the s econd qua rter and six months ended M arch 31, 2009. F or the R es ults for the S econd Q ua rter a nd S ix Months E nded quarter, the c ompany has pos ted tota l revenue of CAD 5, 015, 041 c ompared to C AD 3,259, 499 for the s econd quarter of 2008. G AAP net Ma rc h 31, 2009 loss for the qua rter of CA D 1,475, 124 c ompa red to C AD 2, 622,228 for the s a me period of fis c al 2008. N on-G AAP net profi t for the quarter wa s C AD 543,278, compared to a non-G AAP net los s of C AD 1,285, 808 in the s econd qua rter of 2008. B asic and diluted net l oss per sha re wa s C AD 0.04 compared to bas ic a nd diluted net loss per s ha re of CAD 0. 08 for the compa ra ble period in F is c al 2008. N on-G AAP a djusted E a rnings per s hare, defined a s net profit, exc luding amortization and s hare-based c ompens ation expen se, of C AD 0. 02 c ompared to a NonG AAP a dj usted net los s per sha re of C AD 0.04 for the compa ra ble period for F is c al 2008. F or the six month, the company ha s posted tota l rev enue of C AD 12, 191,374 compared to CAD 7, 558, 093 for the s ame period of 2008. G AAP net loss for the quarter of C AD 534,480 compared to C AD 3,704, 828 for the sa me peri od of fisca l 2008. Non-G AA P net profit for the quarter wa s C AD 3, 336,333, c ompared to a non-G AAP net los s of CAD 1,403, 291 for the same pe ri od of 2008. B asic and diluted net los s per
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com, Inc. Announc es E xec utive C ha nges
T heS treet. com, I nc. announced tha t E ric As hman res igned as the company's C hief F ina ncial Offic er, effectiv e M a y 8, 2009. E ffective the same day, R ichard B roitma n, the company's V ice P resident of F ina nc e, was app ointed to the interim pos ition of the compa ny 's Acting Chief Accounti ng O fficer. Mr. B roitman, who is 56, joi ned the c ompa ny a s its Controller in J uly 2000 a nd wa s appointed V ice P res ident of F inance in Oc tober 2007. B efore joinin g the compa ny, M r. B roitman was C ontroller of I ndividua l Investor G roup. XI NG AG reported earnings res ults for the firs t quarter of 2009. For the year, the company reported profit of E U R 1.68 million, a n inc rea s e of 3.7% from E UR 1. 62 million for the s ame period a y ea r a go. R eve nues for the quarter were E U R 10.76 million compa red to E U R 7. 51 million for the same period a yea r ago. S park Network s, Inc . 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 reported net inc ome of $311, 000 a nd operating income of $1, 208, 000 or $0.02 ba s ic a nd diluted earnings per s ha re on net revenue of $12,032, 000 compa red to net income of $1,566, 000 a nd operating income of $2, 477, 000 or $0.06 ba s ic a nd diluted earnings per s ha re on net revenue of $15, 022,000 for the s a me period a y ea r a go. I ncome before inc ome tax es for the period wa s $716, 000 compa red to $2,811, 000 for the same period a yea r a go. E B I TD A for the period wa s $1,174, 000 and a djus ted E B I TD A wa s $2, 801,000 compared to E B IT DA of $3, 335,000 and adjusted E B IT DA of $4, 042,000 for the s a me period a y ea r a go. F irst qua rter 2009 net earnings were reduced by a n $880, 000 as s et impai rment c ha rge prima rily rela ted to Hurry Da te ac quis ition. T he company a ls o a nnounc ed that first quarter 2009 net ea rn ings were reduced by an $880, 000 a ss et impa irme nt cha rge prima rily rela ted to Hurry Da te ac quisition.
X ING AG (XTR A: O1B C)
X IN G AG R ep orts E arnings R es ults for the F irs t Quarter of 2009 S park N etwork s , Inc . R eports U naudited C onsolidated E a rnings R esults for the F irst Quarter E nded M arch 31, 2009 ; Announces I mpairment C ha rges
S park Networks , Inc . (AME X: L OV)
Figure 7. Key Developments Source. Capital IQ
Page 10
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-two of the 93 companies have market caps under US$100 million, with 24 under $10 million. Online gaming companies dominate the top of the list.
Market C ap (US D m)
Neteas e. com Inc. S handa Interac tive Entertainment L td. IA C/InterA ctiv eCorp. S ohu. com Inc. Modern Times G roup Mtg A B G iant Interac tiv e G roup, Inc. Open Tex t Corp. Changyou.c om Limited G ree, Inc. Perf ec t World Co. , L td. V alueClic k Inc. Chines e G amer International Mix i, Inc. K ings of t Co. L td. United Online Inc. NEOWIZ G ames Corporation NetDragon WebS of t, Inc. S hutterf ly, Inc. G igaMedia L td. S K Communications Co. , L td. The9 Limited X ING A G G ungHo Online Entertainment, Inc. G amania Digital Entertainment Co. , L td. OA O R B C Inf ormation S y s tems CDC Corp. DA DA S pA Tree. Com, Inc. Y edangOnline Corp. Openw ave S y s tems Inc. My riad G roup A G HanbitS of t, Inc. A c toz S of t Co. , L td. G ameOn Co L td. Moggle, Inc Cyberplex Inc. J umpTV Inc. K aboos e Inc . G eoS entric Oyj TheS treet.c om, Inc. DigitalTow n, Inc. Eolith Co. L td. S park Netw orks , Inc . B eyond Commerc e, Inc . PhotoChannel Netw orks Inc. Ngi G roup Inc. NeXplore Corporation Webz en Inc. Dolphin Digital Media, Inc. Northgate Tec hnologies Limited Fluid Mus ic Canada, Inc . A Q Interac tiv e, Inc. Wiz z ard S of tw are Corporation UOMO Media, Inc S ites earc h Corporation G ravity Co., L td DX N Holdings B hd Frogs ter Interac tive Pic tures A G B roadWebA s ia Inc. L ookS mart, L td. IA S Energy, Inc . S pec trumDNA , Inc. J umbuck Entertainment Pty L td. Y nk K orea Inc. Ex tens ions , Inc . Quepas a Corp. L ingo Media Corporation A c celeriz e New Media, Inc. Wy nds torm Corporation Worlds . com Inc . S NA P Interac tiv e, Inc. V OIS , Inc. CornerWorld Corporation B right Things plc MOK O.mobi Limited Magnitude Inf ormation S y s tems Inc. is eemedia Inc. B etaw av e Corporation L iv eWorld Inc. B igs tring Corp. DigitalPos t Interac tiv e, Inc. Unis erve Communic ations Corp. ZipL oc al Inc. The Parent Company Financ ial Media G roup, Inc . Total S port Online A S A s s oc iated Media Holdings Inc. China G atew ay Corporation S NM G lobal Holdings Dibz International, Inc. S ocial Media V enures , Inc . S oc ialw is e, Inc . 0 2011.9 1907.4 1862. 2 2256.2 3365.1 3746.9
950.7 876. 6 701.2 681. 654.9 9 553. 3 476.9 405.1 346.4 320.9 309.9 249. 1 218.9 198. 8 180.3 173.4 135. 8 127.7 127.1 112. 8 100.0 96. 4 96. 1 95. 2 94. 8 83.5 79.9 75.6 71.6 60.9 56.6 54.2 54.1 51.8 51.3 49.6 39. 6 39. 0 36.9 34.5 34.2 31.3 31.1 30.6 30.0 28.2 27.2 26.2 26.2 25.3 22.2 18.6 16. 6 15. 4 15. 1 14. 2 12. 7 12. 6 11. 1 9. 2 8. 9 8. 6 7. 5 6. 4 5. 2 4. 9 4. 4 4. 4 4. 1 2. 2 1. 2 1. 1 0. 8 0. 3 0. 3 0. 3 0. 1 0. 1 0. 0 0. 0 0. 0 0. 0 0. 0 500 1,000
1278.2
1637. 6 1521.6
1,500
2,000
2,500
3, 000
3, 500
4,000
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
Figure 8. Market Cap Ranking Source. Capital IQ
Figure 9. TEV/Revenue Ranking Source. Capital IQ
# Companies 20.0 25.0 20.6 20.6
(x)
10.0
15.0
OTCBB
0.0
5.0
AIM
TSE
11.0 9.1
19 1 5 3 1
SEHK
8.9
HLSE
6.3
GTSM
2 1 2 5
OTCNO
XTRA TSXV
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
AMEX
TSX
4.6 4.0 3.73.0 2.9 2.7 2.1
Average TEV/LTM Revenue - By Exchange
2 4 1 2
SWX
ASX
KOSE
1.8 1.7 1.6 1.5 1.4
7 14 10 1
20.0 25.0 20.6
NasdaqGS OTCPK
OSE
OM
CM
0.7 0.5
1 1 5 1
NasdaqGM
KLSE
BSE
T E V/L T M R evenue (x)
0.5 0.3 0.0
1 1
RTS
(x)
10.0
15.0
0.0
5.0
12.9 11. 3 8.18.9 10. 0 6.06.0 A verage, 5.6 4.64.64.74.74.75.05.15.1 3.43.53.63.9 5. 0 2. 12.22.42. 42.72.82. 93.1 1.01. 11.11.11. 31.31.31. 31.41.41. 51.72.1 0.00.00.00.00.10.10.20.20.30.30.40.50.50.50.60.70.80.90.91.0 0. 0
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 (19), trading at an average multiple of 20.6x (up from 18.1x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.4x revenue (up from 6.0x last week) (Figure 11). Eleven of the companies are Canadian (average 7.5x revenue).
TEV/Revenue (LTM) averages 5.6x: The overall average TEV/Revenue (LTM) multiple for our group is 5.6x (up from 5.2x last week) (Figure 9). However, this is skewed by Gree (3633-TSE) at 38.9x and Dolphin Digital Media Inc. (DPDMOTCBB) at 38.3x. The median is only 2.1x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.
# Companies
1
United
9.1
Average TEV/LTM Revenue - By Country
6
Japan
8.9
1
Finland
Canada
United
7.5 6.4 6.2 4.6 4.6
11 40 10
China
3
Taiwan
1
Norway
4.0
2
Germany
2.7 2.1 1.8 1.4
1
Switzerland
2
Australia
9
South
1
Sweden
20. 6 19.3
0.7 0.5
1
Italy
31.5 29.9
1
Malaysia
Page 11
0.4 0.3 0.0
1
Hong Kong
38.38.9 3
1
India
S ocial Media V enures , Inc . C hina G atewa y C orporation AQ Intera ctive, Inc . O AO R B C Information S y s tems L iveWorld Inc . U nis erve C ommunications C orp. S handa Interac tive E ntertainment Ltd. T he P a rent C ompany N orthgate T echnologies L imited IAC /InterAc tiveC orp. C DC C orp. G a meO n C o Ltd. DXN Holdings B hd T ree.C om, Inc. ZipLoca l Inc . DADA S pA J umbuck E nterta inment P ty L td. S pa rk N etwork s , Inc . Ac toz S oft C o. , Ltd. Y nk K orea Inc . United O nline Inc . S N M G loba l Holdings C y berplex Inc . K aboos e Inc . G a mania Digital E ntertainment C o., Ltd. G igaMedia Ltd. S hutterfly , Inc . V alueC lic k Inc . Modern T imes G roup Mtg AB H anbitS oft, Inc . G ungH o O nline E ntertainment, Inc. S K C ommunica tions C o., Ltd. Y edangO nline C orp. is eemedia Inc . O pen T ex t C orp. S NAP Intera ctive, Inc. N E O WIZ G ames C orporation My riad G roup AG E olith C o. Ltd. P hotoC ha nnel Network s Inc. NetDra gon WebS oft, Inc . XIN G AG MO K O .mobi L imited S ohu.com Inc . Acceleriz e New Media , Inc . J umpT V Inc . T otal S port O nline AS Mix i, Inc . F rogs ter Intera ctiv e P ic tures AG F luid Mus ic C a nada , Inc. K ings oft C o. Ltd. Wiz z ard S oftware C orporation DigitalP os t Intera ctive, Inc. C ornerWorld C orporation C ha ngy ou.com L imited As s ociated Media Holdings Inc . G eoS entric O y j C hines e G amer Interna tional Lingo Media C orporation T encent Holdings Ltd. B right T hings plc B ey ond C ommerc e, Inc. B igs tring C orp. Dolphin Digital Media, Inc. G ree, Inc .
1
Russia
Page 12
TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.2x LTM EBITDA (slightly down from 9.74 last week), led by Uniserve Communications Corp.’s (USS-TSX) 29.5x multiple (Figure 12). Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.2x (vs. 8.1x last week).
T E V/L T M E B IT DA (x)
35. 0 30. 0 26. 2 25. 0 20. 2 20. 0 29. 5
15. 0 10. 0 5. 0 0. 2 0. 0 AQ Interac tive, Inc . 0. 3 O AO R B C Information S y s tems 0. 3 S handa Interactive E ntertainment L td. 1. 4 Northgate T echnologies L imited A verage, 9.2 6.8 3. 9 1. 8 G ameO n C o L td. 2. 1 G amania Digital E ntertainment C o. , Ltd. G ungH o O nline E ntertainment, Inc . J umbuck E ntertainment P ty Ltd. NE O WIZ G ames C orporation 4. 2 4. 6 4. 7 4.7 4.8 5.3 7.3 7.5 7.6 8. 2 8. 5 8. 5 8. 7 8. 9 9. 3 9. 4 9. 9 11. 2 9. 9 10. 5 10. 5
12. 3 12. 8
C hines e G amer International
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 (19), trading at an average multiple of 7.6x (up from 7.0x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.1x EBITDA (Figure 14). Eleven of the companies are Canadian (average 14.9x 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 KOSE OSE NasdaqGS OM TSX XTRA 19.7 13.9 12.2 10.9 10.5 9.4 8.5 7.6 6.8
(x) 16.0 14.0 12.0 10.0 8.0 6.0
Average TEV/LTM EBITDA - By Country
14.9 12.9 12.2 11.0 10.5 9.4 7.1 5.7 4.8 4.7 3.9 2.1 Germany China Malaysia United States Japan Canada Hong Kong South Korea Italy Australia Taiwan Sweden 1.4 0.3 Russia 1 India
4.8 4.7 4.2 3.9 2.1 TSE CM KLSE AMEX ASX
1.4 0.3 RTS BSE
4.0 2.0 0.0
# Companies
5
3
2
7
4
2
1
1
19 14
5
1
2
1
2
1
1
# Companies
11
10
9
3
2
1
40
6
1
1
1
2
1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
P/E (LTM) averages 14.1x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 14.1x LTM EPS (same as last week), led by Mixi, Inc’s (2121-TSE) 31.9x multiple (Figure 15). Twelve of the companies have P/E multiples under 10x. The median is just 11.3x.
U nis erve C ommunications C orp.
C hangy ou. c om L imited
DXN Holdings B hd
Modern T imes G roup Mtg AB
S K C ommunic ations C o. , L td.
C DC C orp.
S NAP Interac tive, Inc .
U nited O nline Inc .
O pen T ex t C orp.
NetDragon WebS oft, Inc.
G igaMedia L td.
S park Network s , Inc.
IAC /InterAc tiveC orp.
V alueC lic k Inc .
C yberplex Inc.
S ohu. c om Inc .
XING AG
Y edangO nline C orp.
S hutterfly , Inc.
K aboos e Inc.
Mix i, Inc .
Actoz S oft C o. , L td.
K ings oft C o. L td.
DADA S pA
Page 13
P /E L T M (x)
35. 0 30. 9 30. 0 25. 5 25. 0 21. 7 20. 0 15. 0 10. 0 5. 0 0. 7 The9 Lim ited 0. 0 1. 7 Perfect World Co., Ltd. 4. 4 1. 8 Giant Interactive Group, Inc. 2. 2 2. 5 2. 8 5. 8 6. 6 A v era ge, 14. 1 9. 4 7. 4 9. 8 10. 2 11. 2 11. 3 11. 3 11. 3 12. 1 12. 4 15. 0 13. 4 19. 2 19. 2 16. 9 28. 8 27. 2
31. 9
J um buck Entertainm Pty Ltd. ent
Gam ania Digital Entertainm Co., Ltd. ent
Northgate Technologies Lim ited
Modern Tim Group Mtg AB es
Shanda Interactive Entertainm Ltd. ent
NEOWIZ Gam Corporation es
Chinese Gam International er
Changyou.com Lim ited
DXN Holdings Bhd
Gam eOn Co Ltd.
XING AG
SNAP Interactive, Inc.
Netease.com Inc.
Spark Networks, Inc.
NetDragon WebSoft, Inc.
Open Text Corp.
GigaMedia Ltd.
Ngi Group Inc.
Sohu.com Inc.
IAC/InterActiveCorp.
Cyberplex Inc.
YedangOnline Corp.
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 (19), trading at an average multiple of 21.1x. On a geographic basis, the United States has the most companies (40), trading at an average of 18.5x earnings (Figure 17). Eleven of the companies are Canadian (average 17.7x EPS).
Average P/E - By Exchange
30.0 27.6 25.0 20.0 (x) 15.0 10.0 5.0 OTCBB GTSM NasdaqGS SEHK KOSE TSE 0.0 CM AMEX XTRA TSX ASX 23.2 21.7 21.1 18.6 17.5 12.4 9.8 9.5 7.4 6.6 5.8 4.4 2.2 OM KLSE BSE 1.8 NYSE
5.0 0.0 Germany (x) 15.0 10.0 25.0 20.0 21.7
Actoz Soft Co., Ltd.
Kingsoft Co. Ltd.
Average P/E - By Country
18.9 18.6 18.5
17.7
17.5 11.5 7.4 6.6 5.8 4.4 2.2 Japan China Australia Malaysia 1
Worlds.com Inc.
DADA SpA
Mixi, Inc.
United States
Canada
Taiwan
South Korea
# Companies
3
2
2
19
7
5
2
4
14
1
2
1
1
1
1
# Companies
2
3
9
40
11
6
10
1
2
Sweden
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
India 1
Italy
Page 14
UPCOMING EVENTS
E arnings Calendar
C ompany
N etease. com Inc. (Na s da qG S : NT E S ) A irMedia G roup I nc. (Na s daqG M: AMC N) D HX Media L td. (TS X : DH X) G i a nt Intera ctive G roup, I nc. (NY S E : G A)
Figure 18. Earnings Calendar Source. Company reports
D ate & T ime
W ednes da y, M a y 20, 2009 9:00 P M (E DT ) M onda y, M a y 18, 2009 7: 00 P M (E DT ) T uesda y , May 19, 2009 11: 00 AM (E DT ) T uesda y , May 26, 2009 8: 00 AM (E D T )
Qu arter
Q 1 2009 Q 1 2009 Q 3 2009 Q 1 2009
Conf Call D etails
877- 941-2068 800-901-5217 800-731-5774 800-573-4842
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. 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 M yriad G roup AG 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 C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K US D AU D C HF 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 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 MYR N 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 T PC 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 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 SWX 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 1.1 9 5.2 3 1.1 0 .1 1 .2 4 .1 5 1.3 5 .2 2 5.3 13 5.8 1,5 21. 6 0 .0 70 1.2 6 .4 7 9.9 12 7.7 2 6.2 0 .0 1 .1 5 4.2 3 4.5 5 4.1 1 4.2 0 .3 3 1.3 2 6.2 18 0.3 9 4.8 6 0.9 1,8 62. 2 32 0.9 2 7.2 1,2 78. 2 19 8.8 9 6.1 2,2 56. 2 1 8.6 4 .4 1 5.4 7 5.6 7 1.6 65 4.9 1 2.6 2 .2 2 2.2 4 .4 68 1.9 1,9 07. 4 8 3.5 4 .9 9 6.4 47 6.9 40 5.1 3,7 46. 9 3 9.0 3 9.6 3 4.2 1,6 37. 6 10 0.0 95 0.7 4 9.6 1 2.7 17 3.4 3,3 65. 1 34 6.4 30 9.9 8 .6 0 .0 0 .0 2,0 11. 9 2 8.2 5 1.8 1 6.6 18, 485 .5 0 .3 24 9.1 5 6.6 0 .1 12 7.1 0 .8 55 3.3 3 0.0 87 6.6 7 .5 3 6.9 3 0.6 8 .9 9 .2 21 8.9 11 2.8 1 5.1 0 .3 C urrent Pric e 0.4 0 1 4,10 0.0 0 5 4,80 0.0 0 0.0 0 0.0 2 0.1 4 1.2 4 0.0 2 0.3 0 1.2 8 2 9.6 9 0.0 0 27 4.5 0 0.1 0 1.7 5 5.7 9 0.4 0 0.0 0 0.0 2 2.0 0 0.7 0 95 0.0 0 0.1 5 0.0 0 0.7 0 8.1 8 3 9.1 0 9 3,80 0.0 0 0.0 5 8.2 4 5.9 4 0.9 8 5,48 0.0 0 16 6,00 0.0 0 5,55 0.0 0 1 4.9 5 0.2 7 0.1 0 0.4 1 0.7 8 0.6 0 4.7 0 1.1 5 0.0 7 1.3 0 0.0 1 42 5,00 0.0 0 22 7.5 0 2.3 0 0.0 8 5.0 0 6 2,70 0.0 0 5.9 4 3 0.4 5 0.7 0 3 0,65 0.0 0 4 8.8 5 3 1.1 2 1.2 0 1 8.0 2 1.7 0 1.0 0 1.2 5 4 8.5 0 1 3.7 6 9,54 0.0 0 0.8 0 0.0 0 0.0 1 5 2.5 8 3.5 0 2.5 2 0.3 4 7 9.5 5 0.0 1 9.2 9 1.8 5 0.0 3 1 1.7 7 0.0 4 6.6 2 0.3 5 1 0.0 8 0.9 0 3.1 1 0.6 5 0.1 7 0.5 1 3 0.5 0 9,10 0.0 0 7,80 0.0 0 0.0 1 1 Wk -9.1 % -5.1 % 18.9 % 0.0 % -4.2 % 26.1 % 2.5 % 0.0 % -33. 8% -14. 1% -1.1 % 1 00. 0% 30.4 % -16. 7% -7.4 % -13. 7% -10. 1% -90. 0% -11. 2% -20. 0% 9.4 % 7.3 % -25. 0% -18. 4% 55.6 % -7.4 % 1.3 % 0.0 % 0.0 % 1.1 % -7.6 % 0.0 % 3.8 % 21.5 % 13.3 % -5.3 % -5.4 % 5.3 % 2.5 % 6.8 % 0.0 % 4.0 % 15.0 % -6.7 % -14. 5% 0.0 % -9.2 % -3.8 % 15.0 % 0.0 % -2.9 % -2.6 % 9.8 % -1.6 % 0.0 % -8.0 % 16.9 % -0.4 % -3.2 % -8.2 % 9.7 % 11.1 % 26.9 % 2.7 % 10.7 % 1.7 % 6.7 % 10.0 % -93. 3% -4.7 % -30. 0% -8.7 % -12. 8% 8.2 % 4.0 % 0.5 % -8.4 % 0.0 % 3.8 % 0.0 % -11. 4% 40.0 % -1.9 % 1 81. 3% -3.4 % 8.3 % -15. 0% 1 600 .0% 5.2 % 0.8 % 30.9 % 0.0 % 1 600 .0% -93. 3% 19.3% 0.0 % 1 Mth -11. 1% 4.4% 2 8.9 % 7.1% 5 3.3 % 1 6.7 % -21. 0% 2 6.8 % -33. 8% 2.4% 8.8% 1 00.0 % 4 1.5 % -28. 6% 5 2.2 % 1 7.0 % 2 7.0 % -90. 0% 2 5.0 % -20. 0% 4 2.9 % 5 3.2 % -25. 0% -23. 1% 1 00.0 % -2.0 % 1 5.9 % 0.5% 2 5.0 % 9.4% -9.3 % 2.1% -0.2 % 3 6.9 % 2 4.4 % -8.3 % 1 20.8 % 0.0% -14. 6% 4 4.4 % 3.4% 3 2.8 % 2 1.1 % -30. 0% 9.2% -16. 7% 1 1.3 % 3 8.3 % 1 5.0 % -16. 7% 1 9.0 % -4.9 % 3 3.5 % 2.2% 0.0% 5.9% 7.6% -14. 4% -4.8 % 6.9% 4.9% 3 3.5 % 2 04.9 % -3.0 % 2 9.6 % -4.1 % 1 4.3 % 15 50. 0% -99. 2% 6.6% NM 9.6% 2 40.0 % 2 9.2 % -13. 3% -6.7 % -21. 6% -25. 0% 1 17.6 % 0.0% 3 1.6 % 2 18.2 % 6.6% 2 00.0 % 2.3% 1 8.6 % 0.0% 2 00.0 % 8.9% -1.5 % 6 6.3 % 0.0% 15 50. 0% -99. 2% 38.9% 7.6% 3 Mth 14 .3% 11 .0% 67 .6% -7 0.0% 43 .8% -3 0.0% 77 .1% -6 .4% -7 0.5% 45 .5% NM 0 .0% 13 4.6% -7 5.6% 39 3.0% -7 .7% 14 .3% -9 0.0% 15 .4% 33 .3% 32 .1% 63 .8% 18 5.7% -7 3.3% 16 .7% 86 .3% 64 .6% -1 6.3% 66 .7% 32 .5% -1 9.5% 38 .0% -1 .3% 68 .4% 43 .4% -0 .7% 96 0.0% -1 6.7% 2 .5% 77 .3% 57 .9% 58 .8% 27 .8% 75 .0% -5 .1% -6 0.0% -2 .5% 66 .4% 53 .3% 87 .5% -2 .0% 10 0.0% 10 2.0% 58 .2% -1 1.4% 12 .8% 4 .8% -1 2.5% 34 .8% 26 .0% -4 .0% -3 0.1% 34 6.4% 58 .8% 62 .1% 22 .6% -1 9.2% 23 0.0% -9 9.2% 11 .0% NM -1 .2% 24 0.0% 63 .3% -5 6.7% -3 5.9% -2 8.8% -2 5.0% 20 1.0% -5 0.0% 27 .6% 33 7.5% 41 .4% 20 .0% 10 7.3% -1 1.0% -1 5.0% 32 5.0% 3 .6% 28 .3% 74 .1% -7 5.0% 96 0.0% -9 9.2% 50.3% 24 .3% 6 Mth 0 .0% 52 .4% 44 .2% -5 0.0 % -8.0% -4 1.7 % 7 .8% 40 .0% -7 7.9 % 30 .6% NM -8 6.7 % 24 5.3% -5 0.0 % 33 7.5% -1 3.5 % 11 .1% -9 8.0 % -6 2.5 % 0 .0% -2 2.2 % 75 .9% 50 .0% -9 8.0 % 84 .2% 90 .2% 19 6.2% -2 1.2 % 25 .0% 36 .4% 11 .2% 46 .9% NM 45 .6% 10 5.2% -6.1% 41 9.6% 42 .9% 2 .5% 30 .0% 62 .2% 12 4.9% 3 .6% 0 .0% -2 0.2 % -2 3.1 % -3 2.0 % 50 .2% NM 87 .5% -2 8.6 % 36 2.7% 13 0.2% 55 .0% -3 9.1 % -5 7.4 % -2 0.6 % 8 .2% 84 .6% 6 .6% 21 .4% -5 4.3 % -1 6.7 % 10 0.2% 10 1.5% 10 8.3% 6 .7% NM -9 9.7 % 21 .4% NM -1 7.4 % 41 .7% 58 .6% -9 8.6 % -2 2.8 % -4 1.6 % -4 0.0 % 43 7.4% -7 7.8 % 0 .0% 12 5.8% 76 .5% 20 .0% 23 8.0% -2 1.7 % 6 .3% 32 5.0% 5 .9% 58 .8% 31 .1% -5 0.0 % 43 7.4% -9 9.7 % 39.0% 11 .1% 1 Yr -46 .7% 62.3 % -75 .2% NM -83 .6% -46 .2% -54 .9% -46 .2% -86 .8% -64 .5% NM -96 .7% 1 39. 7% -80 .4% 1 18. 8% -61 .0% -14 .0% -98 .0% -92 .0% -23 .1% NM 3.3 % 0.0 % -99 .3% NM 76.7 % 9.1 % -32 .0% -28 .6% -38 .7% -66 .6% -30 .0% NM -54 .5% 0.4 % -68 .3% 23.3 % -58 .3% -31 .7% 13.0 % -33 .3% 26.3 % -39 .5% -80 .0% -71 .0% -44 .4% -43 .3% -45 .4% NM 1 50. 0% -44 .4% 81.0 % -45 .7% 26.1 % NM -79 .4% -87 .5% -14 .6% -39 .7% -29 .5% -52 .1% -61 .1% -85 .2% 42.0 % 5.0 % -33 .3% 1.3 % -99 .8% NM -35 .1% NM -43 .4% NM 25.1 % -99 .6% -63 .9% -75 .9% -70 .0% NM -89 .5% -45 .5% -22 .2% -48 .4% NM 2.3 % -70 .7% -55 .3% -15 .0% -32 .2% -17 .3% -43 .9% -96 .2% 1 50. 0% -99 .8% -32.8% -44 .1% 52 We ek -48. 7% -13. 0% -76. 7% -97. 0% -88. 5% -66. 7% -62. 4% -50. 0% -89. 7% -66. 3% -21. 3% -95. 6% -4.7 % -87. 5% -12. 1% -64. 2% -20. 8% -98. 0% -94. 6% -67. 2% -38. 1% -18. 1% -85. 1% -99. 6% -65. 7% -17. 4% -6.9 % -42. 6% -28. 6% -49. 4% -70. 1% -50. 8% -13. 0% -61. 8% -20. 8% -70. 4% -24. 3% -71. 4% -37. 4% -39. 1% -52. 0% -1.1 % -43. 3% -82. 9% -72. 3% -66. 7% -55. 4% -49. 4% 0.0 % -25. 0% -51. 2% -14. 6% -54. 4% -6.7 % -51. 7% -81. 6% -88. 4% -20. 4% -44. 4% -43. 4% -59. 0% -71. 1% -86. 3% -10. 0% -8.8 % -51. 6% -25. 9% -99. 9% -99. 8% -42. 5% -30. 0% -45. 8% -43. 3% -4.3 % -99. 6% -67. 4% -77. 2% -70. 0% -7.5 % -91. 1% -47. 0% -56. 3% -51. 4% -83. 9% -30. 1% -72. 3% -57. 5% -40. 0% -34. 6% -27. 5% -47. 7% -97. 1% 0.0 % -99. 9% -51.9% -51. 3%
518.4
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 Myriad G roup AG 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 Mobile 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 witz erland 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 SWX 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 MY R N 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 0. 0 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 98. 2 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 99. 2 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. 0 495. 8 40. 2
TE V/LT M R evenue
4.6 x 0.9 x 8.1 x 30.6 x 25.4 x 22.1 x 0.4 x 6.0 x 0.0 x 9.1 x 6.0 x 1.2 x 0.8 x 0.6 x 5.1 x 37.2 x 2.7 x 1.9 x 4.4 x 1.2 x 0.4 x 6.9 x 1.4 x 37.3 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 10.9 x 0.1 x 5.0 x 1.5 x 3.5 x 2.8 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 1.7 x 2.2 x 1.1 x 0.0 x 3.8 x 1.0 x 14.8 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 37.3 x 0.0 x 5.2x 1.8 x
TE V/ N TM R evenue
0.4x 4.5x 0.9x 1.4x 1.5x 1.1x 1.5x 2.1x 0.0x 1.7x 0.9x 3.3x 0.5x 0.9x 1.5x 4.5x 0.0x 1.5x 1.4x
TE V/LT M E BITDA
4.7 x 5.5 x 9.9 x 16.2 x 11.3 x 5.0 x 4.2 x 7.4 x 1.7 x 5.8 x 7.1 x 11.9 x 2.1 x 9.5 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 25.8 x 7.0 x 8.7 x 4.8 x 30.9 x 29.5 x 5.0 x 7.5 x 9.8 x 9.0 x 30.9 x 0.3 x 9.1x 8.1 x
TE V/NTM E BITDA
6.0x 7.5x 6.4x 5.7x 1 1.5 x 7.6x 0.0x 5.0x 2.0x 7.0x 7.6x 6.4x 3.6x 5.8x 1 1.5 x 0.0x 5.9x 6.2x
P /LT M E P S
15 .3x 11 .2x 22 .3x 10 .5x 8. 0x 4. 8x 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 17 .3x 39 .8x 0. 8x 30 .9x 20 .6x 11 .9x 39 .8x 0. 8x 13.7x 11 .7x
P /NT M E P S
1 0.7 x 1 0.6 x 1 1.2 x 1 3.5 x 1 1.3 x 3 1.3 x 1 3.7 x 1 5.4 x 2 0.5 x 9.2x 1 0.7 x 1 5.7 x 1 5.2 x 1 0.3 x 1 0.0 x 1 6.4 x 3 1.3 x 9.2x 14.1x 1 2.4 x
P /TangBV
1 .7x 0 .4x 0 .3x 1 0.2x 8 .4x 1 0.2x 0 .6x 5 .0x 1 .9x 2 .2x 2 .3x 1 .2x 4 .9x 0 .4x 3 .1x 1 5.3x 2 .6x 1 .1x 2 .1x 1 .6x 3 .6x 3 .5x 8 .9x 0 .9x 0 .9x 5 .5x 3 .9x 4 .5x 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 6.6x 0 .1x 0 .8x 1 .7x 7 .3x 6 .0x 0 .0x 5 .3x 5 .5x 4 0.1x 0 .0x 5.4x 2 .6x
Figure 20. Valuation Comparison Source. Capital IQ
Page 17
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y C ountry
C om pany Nam e U nited S tates C anada C hina S outh K orea J a pa n T a iwa n A ustra lia G ermany S witz erla nd H ong K ong F inla nd I ta ly U nited K ingdom I ndia S weden R us sia M a la ys ia N orway G rand To tal 40 11 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 1 93 U S D Market Cap ($m) C hina U nited S tates J a pan C anada S weden S outh K orea T a iwa n G erma ny R uss ia H ong K ong I ta ly S witz erla nd F inland I ndia M alays ia Aus tra lia U nited K ingdom N orway G rand T otal 33, 253.1 4, 876.9 2, 324.4 1, 981.0 1, 907.4 1, 224.3 1, 202.4 245.1 173.4 135.8 127.7 96.4 60.9 34.2 26.2 20.3 5.2 0.1 47,694.9 Avg US D Mar ket C ap ($m) China S weden Ta iwa n Japan Ca na da R us sia S outh K orea Hong K ong Ita ly G erma ny United S tates S witzerland Finland India Malay sia Australia United K ingdom Norway G rand Total 3,325. 3 1,907. 4 400. 8 387. 4 180. 1 173. 4 136. 0 135. 8 127. 7 122. 5 121. 9 96. 4 60. 9 34. 2 26. 2 10. 2 5. 2 0. 1 512.8 U S D LT M T otal R ev ($m) U nited S ta tes C hina S weden C a na da S outh K orea J a pa n H ong K ong T aiwan I ta ly R uss ia I ndia M a la ys ia G ermany S witz erla nd Aus tra l ia F inla nd N orwa y U nited K ingdom G rand T otal 3, 792. 7 3, 607. 1 1, 712. 8 983. 2 656. 7 514. 6 389. 9 372. 3 230. 8 147. 3 135. 5 78. 0 53. 0 40. 0 14. 7 6. 0 2. 1 0. 2 12,736.8 U S D LT M Total E B IT DA ($m) C hina S weden U nited S ta tes C a na da J apan T a iwan S outh K orea I taly H ong K ong I ndia R uss ia G erma ny M alays ia Aus tralia S witz erland N orway U nited K ingdom F inland G r and T otal 1,811. 5 262. 4 242. 0 193. 5 135. 5 98. 4 77. 4 36. 9 30. 8 23. 8 19. 2 11. 9 10. 7 2. 8 0. 8 -1. 0 -1. 7 -13. 4 2,941.5 E B IT DA % F inla nd R uss ia T aiwa n S witz erla nd I ndia C hina G ermany I ta ly C anada M a la ys ia H ong K ong J a pa n S outh K orea U nited S ta tes N orway Aus tral ia S weden U nited K ingdom G rand T otal 61. 9% 46. 0% 33. 7% 26. 8% 25. 5% 21. 3% 19. 5% 16. 0% 14. 5% 13. 7% 7.9% 6.1% 3.8% -4. 6% -6. 2% -30.3% #DI V /0! #DI V /0! 8.3%
Figure 21. Comparison by Country Source. Capital IQ
C omparable C o mpan y A nalys is > W eb 2.0
Su mmary b y Ex c hange
C om pan y Nam e OT C B B N a s daqG S OT C P K K OS E TSE N a s daqG M T S XV TSX S E HK A ME X XT R A ASX GT S M S WX HLS E NY S E CM BSE N a s daqC M OS E A IM OM R TS K LS E OT C NO Gr an d To tal 20 14 10 7 5 5 5 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 93 U S D Market Cap ($m) S E HK N a sdaqG S TSE OM NYS E K OS E GT SM O T CB B N a sdaqG M TSX XT RA OS E R TS CM SWX AM E X O T CP K T S XV HLS E BSE K LS E AS X N a sdaqC M AI M O T CN O G rand T otal 19, 545.5 18, 072.2 2, 125.6 1, 907.4 1, 862.2 1, 160.2 881.5 379.5 270.0 258.3 245.1 198.8 173.4 127.7 96.4 82.5 81.1 67.7 60.9 34.2 26.2 20.3 12.7 5.2 0.1 47, 694.9 Avg US D Market C ap ($m) S E HK OM NY S E Nas daqG S G TS M TS E OS E RTS K OS E CM XT R A SWX TS X HLS E Nas daqG M AME X BSE K LS E O TC B B TS X V Nas daqC M AS X O TC P K AIM O TC NO G ran d To tal 6,515. 2 1,907. 4 1,862. 2 1,290. 9 440. 7 425. 1 198. 8 173. 4 165. 7 127. 7 122. 5 96. 4 64. 6 60. 9 54. 0 41. 2 34. 2 26. 2 20. 0 13. 5 12. 7 10. 2 8. 1 5. 2 0. 1 518. 4 U S D LT M T otal R ev ($m) OM N asdaqG S S EHK NYS E CM R TS BSE OS E GTS M K OS E N asdaqG M TSE K LS E SWX TSX AM E X XT R A OT CP K T S XV AS X H LS E OT CN O OT CB B AI M N asdaqC M G rand T otal 1, 712. 8 478. 8 418. 5 233. 6 230. 8 147. 3 135. 5 117. 5 91. 0 85. 1 80. 9 79. 4 78. 0 40. 0 39. 3 31. 7 26. 5 19. 0 9. 5 7. 3 6. 0 2. 1 1. 8 0. 2 0. 1 149. 8 U S D LT M To tal E B IT DA ($m) N a sdaqG S S E HK OM NYS E TSE K OS E GT S M CM BSE OS E R TS X TR A K LS E AM E X AS X SWX OT CNO AI M TSX T S XV N a sdaqC M N a sdaqG M HLS E OT CP K OT CB B G rand T otal 1,695. 5 599. 1 262. 4 144. 6 114. 5 74. 5 52. 3 36. 9 23. 8 21. 0 19. 2 11. 9 10. 7 6. 3 2. 8 0. 8 -1. 0 -1. 7 -3. 5 -10. 2 -11. 4 -12. 2 -13. 4 -33. 1 -43. 8 2,946. 1 E B IT DA % HLS E R TS GT S M SWX S E HK BSE NYS E XT RA CM K OS E OT CB B TSE K LS E T S XV N a sdaqC M N a sdaqG S TSX OT CNO OT CP K N a sdaqG M OS E AS X AM E X AI M OM G rand T otal 61. 9% 46. 0% 40. 9% 26. 8% 26. 5% 25. 5% 24. 2% 19. 5% 16. 0% 15. 4% 14. 8% 14. 7% 13. 7% 13. 7% 13. 1% 8.0% -0. 4% -6. 2% -9. 6% -28.1% -28.2% -30.3% #DI V /0! #DI V /0! #DI V /0! 8.3%
Figure 22. Comparison by Exchange Source. Capital IQ
Page 18
Financing - Last Three M onths (US$ m)
Mo nth Mar -09 Co mpan y N ame Kaixin 001.c o m Vid yo Bu zz net Len ding C lu b S end Me Inc . Aud itu de G lam Media Vis ible Meas u res S up erS ec r et G oViral G reys tripe OMG P O P Aptu re S imu lmedia Tynt AnyS o ur c e Media P ixaz z a Bit.ly Hu nc h S po rts C o mp os ite D E Adu ltS p ac e Myn gle 33Ac ro s s Th ree Melo ns Mar -09 T otal A pr -09 Co llec tive Media G O O M R adio Mar in S oftwar e Th e R ub ic o n P r ojec t Fr eeW heel Cellu fun Co nd uc to r Inc . S c anS c o ut USA F ra nce USA USA USA USA USA USA USA USA USA USA USA G erm a ny USA C a na da USA USA S inga pore F ra nce USA USA 15.6 8. 0 12. 9 8. 8 8. 3 7. 0 6.8 6. 3 6.0 5. 9 5.0 5. 0 5. 0 4. 0 2.0 12.8 12. 9 1.5 16. 3 17. 2 20 .3 5.0 1. 3 1. 2 0.6 45. 3 52. 5 16 .1 12. 0 2.0 1.4 1.4 3.3 3.0 2. 5 4.7 4.5 4. 1 8. 1 5. 0 5. 0 10. 0 10. 0 8. 0 16. 0 13. 0 5. 0 12 .0 C ou ntr y C hina USA USA USA USA USA USA USA USA UK USA USA USA USA C a na da USA USA USA USA USA USA N etherla nds USA A rgentina 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 An gel/S eed D ebt fin anc in g P IP E S er ies A S eries B 20. 0 15 .0 12 .5 S er ies C S eries D S eries E G r an d To tal 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 5.0 4.7 4.5 4.1 3.3 3.0 2.5 2.0 1.4 1.4 1.3 1.2 0.6 149.5 12. 9 8.8 8.3 7.0 6.8 6.3 6.0 5.9 5.0 5.0 5.0 4.0 2.0 1.5 84. 3
Vix imo
Do ub leT wis t IMS h op ping S oc ialtext Mixerc as t S ou nd C lo ud Tu beMog u l Tr ib al No va Tr ip bas e S oc ialc as t Br and tolog y S c an & Tar get J od ang e Fo od is ta A pr -09 T otal May-09
Cyberplex Imeem
EveryZing
Canada USA USA USA USA USA USA Canada USA USA USA USA USA Israel
BlogHer Inc.
Gist
Fuhu Inc.
Azuki Systems I Love Rewards DocuSign
OLX
TimeBridge
Medialets
Resonate Networks
Mo'M inis
May-09 T otal
Figure 23. Financing, Last Three Months Source. Company reports
Page 19
C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
A zuki s ys tem s B logHer, In c .
HQ
U nited S ta tes U nited S ta tes
W ebs ite
www. azuk is ys tems .com www. blogher. 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 . B logHer I nc. operates a n online community a nd media network for women. I t offers a s eries of live ev ents a nd conferenc es, as well a s an a dvertising network of blog a ffilia tes. The company ha s a stra tegic-partnership with iV illa ge. B logHer I nc. wa s founded in 2005 and is bas ed in R edwood C ity, Ca lifornia. C y berplex Inc . provid es W eb a dv ertis ing s olutions a nd on-line c ustomer ac quisition strategies for F ortune 1000 compa nies a nd s mall to midsiz ed bus ines ses in C anada a nd the Uni ted S ta tes . Its W eb A dvertising divis ion provides performance-ba s ed I nte rnet advertising s olutions to a cquire leads , drive sign-ups , downloa ds, inquirie s, or a cquire payi ng customers. T he c ompa ny’s T ec hnology S ervic es div ision compris es ma na gement and technology c onsu ltants to a s sis t clients in the a rea s of a pplica tions lifecy cle; and re-engineering a nd optimization of tec hnologies , developing a nd delivering a pplica tions us ing the productions a nd tec hnologies, a nd monito ri ng a nd supporting ap plications to ensure performa nce a nd reliability. C yberplex a ls o prov ides technology s olutions, s uc h a s s ys tem integra tion, enterprise c ontent ma na gement, data ma nagement a nd reporting, W eb content management, bus iness proces s ma na gement, enterprise s earch, a nd spec ial enga gement offerings; a nd W eb design s olutions , which include pre-designed, cus tom designed, an d ecommerce s olutions. I t s erves a dvertisers , publis hers, and agenc ies. The compa ny wa s formerly k nown a s NewP ath Ca pita l C orpora tion a nd cha nged its name to C yberplex 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 . F U HU produc es v irtua l identity c ards a nd rich media web widgets . F U HU ’s miss ion is to give us ers control over their stuff (photos , content, identity, email a ddres ses ) by ma k ing it u nivers a lly a cc es sible, s ha reable a nd ma na gea ble a nywhere, anytime. 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. Imeem, I nc. opera tes as a n online communi ty for mus icia ns , direc tors , photogra phers, and groups. It ena bles users to c reate a udio, video, a nd photo pla ylis ts ; s ha re their fa vorites ; disc over new c ontent; tra ck their films; crea te a nd view pla y lists of their fav orite shots; tra ck their photos ; s ha re a lbums with their fri ends; hold group di sc uss ions ; cha nge their profile info; uploa d new photo albums; pos t new v ideos, or mu sic ; and write blogs , or comments . The compa ny wa s founded in 2004 is ba s ed in S an F ra ncis co, C a liforn ia. 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. Media lets is a creative a dv ertis ing network for na tiv e mobile a pplications . L a unched on J uly 11th, 2008, M edia lets works with a gencies, bra nds and application dev elopers to define a nd deploy a d formats tha t tap into a ll of the ca pabili ties of the iP hone. Medialy tics , Medialets ’ free a nalytic s and reporting solution, is the leading analy tics a nd a d vertising solution for the world’s mos t downloaded iP hone a pplica tions . Media lets is a privately-held compa ny with offic es in N ew Y ork , NY a nd S a n F rancis c o, C A Mo’M inis platform allows a dva nced a s well as non-s killed developers to ra pidly create origina l qua lity ga mes from sc ra tc h, without the need of programming, a nd ha ve them s ea mles s ly supported on a wide ra nge of mobile ha ndsets . F urthermore, developers ca n colla bora te, share game a s sets with Mo’M inis developers ’ c ommunity members and enjoy monetiza tion through Mo’M inis va rious dis tribution cha nnel s. O L X , Inc. opera tes a c la s sified site. Its s ite a llow us ers to sea rc h for sale produc ts , inc luding anima ls , babies, a rt products, books , ca meras , C D s, cell phones, clothes, computers , D V Ds , electronic s, hea lth a nd bea uty products , home produc ts , jewelry, musi ca l instruments , s porting goods, tic kets , toy s, a nd v ideo games, a s well as c ars, ca r pa rts , boats , motorc ycles , a nd other vehic les. T he compa ny’s site a ls o enables users to find a cc ounts, a dv erti sing, a rts, clerica l, customer s ervice, educ ation, engineering, hea lthc are, human res ource, Internet, legal, ma nua l la bor, ma nufa cturing, ma rketing, non-profit, rea l es tate, restaura nt, reta il, s ales , a nd tec hnical jobs ; and s ea rch for v arious serv ic es, suc h as babys itter, c a sting, ev ent, computer, hea lth, horos copes , moving, repa ir, writing, editing, and transla ting, a s well a s find personals ; community ac tivities; computer, la ngua ge, music , a nd tutor class es ; a nd a pa rtments , offices, a nd park ing s pots. O L X wa s founded in 2006 a nd is ba sed in N ew Y ork , New Y ork . 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
C yberplex
C a nada
www. cyberplex. com
Docu S ign
U nited S ta tes
www. doc usign. com
E veryZing
U nited S ta tes
www. every zing. com
F UH U
U nited S ta tes
www. fuhu.c om
G is t
U nited S ta tes
www. gis tworld.c om
Imeem
U nited S ta tes
www. imeem. c om
I Love R ewards
C a nada
www. iloverewards. c om
Medialets
U nited S ta tes
www. media lets . com
Mo 'Min is
I s ra el
www. momini s. com
OL X
U nited S ta tes
www. olx. 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
www.researchcapital.com