SOFTWARE & SERVICES
16 JUNE 2009
WEB 2.O WEEKLY
DELL SELLS $3 MILLIO N IN PCS AND ACCESSORIES USING TWITTER
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
D EL L AN D T W IT T ER – A N E X AM PL E OF CO R P OR A T IO N S U S IN G W E B 2 .0 P L AT F O RM S
Although last week was very quiet on the news front, we thought the following was worth highlighting. An article in the Silicon Valley Insider (a division of The Business Insider) titled “Twitter sells $3 million of Computers for Dell” has caught our attention for various reasons. This is of interest in the context of how companies are looking at leveraging the various W eb 2.0 platforms to promote their brand and sell their products. Since 2007, the Dell Outlet store has experimented using Twitter to sell its products through exclusive promotions and coupons that are available only to subscribers to the microblog service. Last week, the company announced that it has 620,000 followers on the @DellOutlet twitter account. It was able to generate more than $1 million in sales as a result of its tweets in the last six months. Although, the sales achieved ($3 million in the last two years) is inconsequential to Dell’s top line (~$61 billion in F2009), the company has used Twitter as another channel to quickly move inventory that came about from customer returns. Taking this discussion a little further, we think the other aspect of interest is – will this be a revenue generating opportunity for Twitter (through premium corporate accounts)? W ith much anticipation in the community to learn about the revenue model for Twitter, this may be an indication of one such revenue stream (i.e. corporate sales). W e would also highlight that throughout our W eb 2.0 sessions (attended by various participants in the industry, including management, developers, venture capitalists, and business consultants), the recurring theme has been about exploring innovative ways to use W eb 2.0 platforms to share information to increase the overall experience of employees, suppliers, and customers. (We are holding our fifth Web 2.0 session titled “VC Financing for Web 2.0 Companies: Necessary? Possible? Lessons Learned” today at 12:00 pm at our office on 199 Bay Street, Suite 4500, Toronto). On the capital raise front, Sugar Inc. leads: The capital raise from Sugar Inc. for $16 million was the largest deal for the first two weeks of June, closely followed by W imba and Grab Networks at $12.0 million. All deals, except the three mentioned above, were less than $10 million. The average value for the first week of June is $5.0 million, below the average value for May of $6.4 million (excluding the investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
160.0 7.0
6.2 140.0
6.4 6.0
120.0 5.0 5.0
100.0 4.0 (US$m) 80.0 3.0 60.0 (US$m) 2.0 40.0 1.0 0.0 Apr-09 May-09 (excl FB) Total Average Jun-09
20.0
0.0
A mixed price performance 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 19 companies showing positive returns on the week. Openwave Systems Inc. (OPW V:NASDAQ) led the group with a 21.7% return, while Tree.com (TREE:NASDAQ) had the worst return, dropping 26.5% 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 = $53 billion market cap: Our W eb 2.0 universe contains 92 companies, with a combined market cap of approximately $53.4 billion (Figure 1). The average market cap for the group is ~$581 million (but a median of only $46.3 million), with average trailing revenue of $152 million (median $54.3 million). The companies are also generally profitable, with a median EBITDA margin of 15.3%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.9x) and 10.2x trailing EBITDA (median 9.6x). Fourteen of the companies have more than 500 employees.
C omparable C ompany 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 H oldings Inc. Bigstring Corp. Be tawave Corpora tion Be yond Commerce, Inc. Bright T hings plc Broa 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. DAD A S pA DXN Holdings B hd Dibz Inte rnational, Inc. DigitalP ost Inte ra ctive , Inc. DigitalT own, Inc. Dolphin 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, 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. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B Dis tribution 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 NE OW IZ G ames C orpora tion NetD ragon W ebS oft, Inc. Nete as e.com I nc. NeXplore Corpora tion Ngi G roup Inc. Northgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. 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 ocia lwis e, Inc. S ohu. com Inc. S ite s earch C orporation S park Networks , 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 Va lueC lick Inc. VO 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 Ye dangOnline Corp. Ynk K orea Inc. ZipLocal Inc. H igh Low Avera ge Median
L TM as of T ic ker
3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 6 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 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 3 /31 /200 9 2 /28 /200 9 NA 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 7 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 7 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 4 /30 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 8/2/2008 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 6 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 NA 3 /31 /200 9 1 2/31 /200 7 1 2/31 /200 8 3 /31 /200 9 AC LZ A0 527 90 38 38 AS MH BS GC B W AV B Y OC AIM :BG 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 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 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 C LW S OH U S TPC 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 xch ang e
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 GTSM 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 GTSM TSE H LS E NYSE 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 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 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 OT C B B 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 HQ
USD KR W JPY 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 JPY EUR USD USD USD JPY JPY KR W USD USD C AD AU D C AD C AD HKD C AD USD USD USD JPY S EK USD AU D C HF KR W HKD USD USD JPY INR USD USD USD USD USD USD USD KR W USD 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 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 U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes 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
Current P ric e
0 .35 27 250 76 800 0 .02 0 .03 0 .10 0 .91 0 .02 0 .23 1 .55 38 .61 0 .02 312 .00 0 .07 1 .80 6 .00 0 .40 0 .00 0 .02 2 .50 0 .53 760 .00 0 .15 0 .00 0 .75 7 .98 55 .60 114 300 0 .04 8 .24 5 .53 1 .10 6 130 225 000 4 720 16 .29 0 .23 0 .08 0 .40 0 .73 0 .62 5 .23 1 .13 0 .10 1 .35 0 .01 460 000 216 2 .30 0 .05 5 .15 65 900 5 .00 35 .04 0 .70 36 100 42 .05 35 .67 2 .30 24 .35 0 .62 1 .00 54 .40 13 .47 11 000 0 .70 0 .00 0 .01 0 .70 65 .91 3 .50 2 .25 0 .20 89 .20 0 .03 10 .46 2 .10 0 .03 8 .74 0 .05 6 .54 0 .17 12 .05 0 .35 3 .40 0 .65 0 .09 0 .51 33 .80 9 290 6 400 0 .01
U S D Market C ap ($m)
9 .7 18 4.9 4 2.6 0 .9 1 .5 2 .9 4 0.4 4 .8 1 9.5 16 4.4 2,1 23.6 0 .4 79 7.0 4 .5 9 9.8 13 4.1 2 6.1 0 .0 1 .6 6 7.7 2 7.4 4 3.8 1 4.2 0 .3 3 4.7 2 5.9 25 6.5 11 2.8 4 9.5 1,8 58.9 29 8.8 3 0.6 1,3 97.1 26 3.0 8 2.0 2,4 58.4 1 6.1 3 .4 1 5.7 7 3.1 7 6.4 73 2.1 1 2.8 3 .1 2 3.1 5 .5 72 1.7 1,8 01.8 8 3.5 3 .5 10 0.3 50 2.9 34 1.0 4,3 11.8 3 9.0 4 5.5 3 0.6 1,8 77.1 19 1.6 1,2 45.2 7 .9 13 8.7 3,7 74.4 33 9.1 36 5.5 7 .6 0 .0 0 .0 3 0.3 2,5 22.0 2 8.2 4 6.3 9 .7 20,7 58. 8 0 .8 28 0.5 6 4.3 0 .1 9 4.4 1 .1 54 6.6 1 4.1 1,0 48.0 2 .9 4 0.3 3 1.1 4 .7 9 .2 24 5.7 11 5.6 2 7.1 0 .4 20,7 58. 8 0 .0 581.4 4 6.3
U S D LT M To tal R ev ($m)
4.1 91. 6 63. 1 0.1 0.1 8.4 7.1 0.3 0.0 389 .9 222 .5 6.7 56. 1 1.3 71. 7 231 .6 78. 4 NA 0.7 NM 0.8 14. 6 NM 7.2 5.0 3.2 125 .9 75. 1 5.8 218 .8 183 .6 38. 8 30. 0 105 .2 54. 7 1 ,40 6.4 0.0 1.5 14. 2 18. 1 72. 5 129 .0 0.9 11. 4 60. 7 0.1 123 .0 1 ,70 4.0 NM 1.1 40. 0 196 .3 86. 9 470 .2 NM 100 .3 117 .0 782 .6 197 .2 228 .0 0.1 151 .4 569 .7 215 .2 182 .5 3.3 2.0 0.1 0.0 460 .0 NM 54. 3 0.1 1 ,20 2.8 112 .0 249 .7 67. 0 2.1 215 .6 22. 9 811 .2 0.6 591 .7 0.0 22. 8 5.6 0.0 NA 52. 2 54. 4 11. 3 2.7 1 ,704 .0 0.0 152.1 54. 3
US D L TM T otal E B ITDA ($m)
(4 .4) 1 9.9 4 .0 (2 .3) (2 .0) (1 2.6) (9 .5) (1 .8) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.4 NM 7 .4 4 3.0 1 0.8 NM (2 .6) (3 .0) (3 .7) (3 .5) NM 2 .4 (6 .9) (6 .0) 2 0.9 1 7.8 (1 5.1) NM NM 7 .5 1 0.8 1 8.9 (1 4.7) 4 2.6 (0 .8) (4 .8) 5 .3 (1 2.0) 8 .6 5 1.9 (1 .6) (0 .0) (3 .8) (3 .1) 4 3.6 26 1.0 NM (2 .3) 0 .8 5 2.7 3 4.4 30 5.6 (4 .9) 3 0.9 (2 7.5) 19 9.2 (2 .1) 12 4.5 (1 0.8) 1 9.8 26 0.7 2 8.3 1 1.9 0 .9 (0 .7) (0 .1) (4 .8) 20 0.5 (1 .1) 1 1.8 (2 .6) 57 6.3 (1 3.5) 8 4.1 1 .9 (1 .0) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .1) (0 .4) (5 .3) (0 .8) NM 1 6.3 1 2.2 1 .2 (2 .1) 57 6.3 -27.5 33.1 0 .8
E BITDA %
NM 21 .7% 6 .3% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% NM 10 .3% 18 .6% 13 .7% NM NM NM NM -2 3.6% NM 34 .1% NM NM 16 .6% 23 .7% NM NM NM 19 .2% 36 .0% 18 .0% -2 6.8% 3 .0% NM NM 37 .2% -6 6.6% 11 .9% 40 .3% NM -0 .4% -6 .3% NM 35 .4% 15 .3% NM NM 1 .9% 26 .8% 39 .5% 65 .0% NM 30 .8% -2 3.5% 25 .5% -1 .0% 54 .6% NM 13 .1% 45 .8% 13 .2% 6 .5% 28 .0% -3 4.8% -6 0.5% NM 43 .6% NM 21 .7% NM 47 .9% -1 2.0% 33 .7% 2 .9% -5 0.6% -6 .2% 0 .2% 21 .9% -7 8.2% 17 .8% NM -1 .9% -9 4.5% NM NM 31 .2% 22 .4% 10 .5% -7 8.3% 65 .0% -9 8.9% 7.1% 15 .3%
T E V/LT M R evenu e
3.5x 1.7x 0.2x 1 9.2 x 3 9.0 x 6.3x 1 7.6 x 0.5x 8.7x 0.1x 1 3.0 x 4.6x 1.3x 0.8x 0.5x 4.5x 3 6.7 x 3.1x 5.2x 7.6x 1.9x 0.7x 7.8x 1.2x 4 3.9 x 2.2x 1.2x 0.4x 1.6x 0.8x 3.4x 1.1x 5.2x 1 3.0 x 0.2x 4.9x 1.4x 2.1x 2.8x 2.5x 2.3x 0.3x 2.5x 0.4x 0.1x 0.0x 0.1x 1.3x 2.0x 1.9x 1.1x 0.0x 4.7x 0.9x 1 8.8 x 0.2x 4.6x 0.4x 0.2x 1.0x 2 2.8 x 1.6x 5.8x 3.7x 2.3x 2.3x 0.6x 4 3.9 x 0.0x 5.3x 1.9x
TE V /L TM E BITD A
7. 8x 3. 6x 5. 8x 14 .3x 23 .3x 12 .9x 4. 3x 3. 9x 11 .2x 3. 0x 12 .4x 13 .5x 2. 0x 9. 5x 12 .9x 13 .9x 9. 0x 9. 4x 5. 8x 9. 8x 0. 2x 0. 2x 0. 2x 9. 7x 30 .8x 6. 6x 10 .7x 4. 0x 39 .2x 4. 7x 8. 9x 11 .9x 10 .4x 22 .1x 39 .2x 0. 2x 10. 2x 9. 6x
E mplo yees
11 NA NA 3 4 53 69 9 46 NA 6 28 37 NA NA NA 5 78 NA NA 7 3 NA NA 2 22 NA NA NA NA 1 08 NA NA 6 36 NA NA NA 3, 200 NA NA 72 2 37 NA 2, 271 NA NA 90 14 NA 2, 969 3 NA 4 05 NA 2, 426 NA 19 NA NA 3, 400 6 30 NA 74 NA NA 5 14 NA 11 33 NA NA 3, 197 15 1 83 7 6, 194 3 47 NA 3 10 16 7 00 NA 1, 469 NA 1, 189 4 3 14 1 10 1 NA 2 39 NA NA NA 6,1 94 1 671 2 37
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
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C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) June month-to-date capital raise totals $79.5 million: Total capital raised two weeks into June was $79.5 million on a total of 15 transactions. It was led by Sugar Inc. raising $16.0 million, closely followed by W imba and Grab Networks raising $12.0 million. All other transactions were less than $10 million. The average value for the month-to-date is $5.0 million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
160.0 7.0
6.2 140.0
6.4 6.0
120.0 5.0 5.0
100.0 4.0 (US$m) 80.0 3.0 60.0 (US$m) 2.0 40.0 1.0 0.0 Apr-09 May-09 (excl FB) Total Average Jun-09
20.0
0.0
Figure 2. Financings, Last Three Months Source. Company reports
Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal for the first two weeks of June. Three of the 15 deals in the month were greater than $10 million. For additional details, see Figures 22 and 23 (at end of note).
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Financing & M/A Summary - Last Three Months
250.0
200.0
150.0 (US$m) Jun-09 May-09 Apr-09 100.0
50.0
0.0 Facebook StumbleUpon One Net Entertainment Collective Media Sugar Inc. GOOM Radio Marin Software The Rubicon Project Cyberplex Wimba Grab Networks FreeWheel Peer39 OpenX Cellufun Conductor Inc. Imeem EveryZing ScanScout beeTV Batanga WonderHill BlogHer Inc. Gist Fuhu Inc. Zoosk Azuki Systems I Love Rewards Gather DocuSign DoubleTwist Viximo OLX TimeBridge IMShopping Socialtext GameGround Mixercast Medialets RingRevenue SoundCloud TubeMogul YuMe Tribal Nova Inigral AdEx Media my6sense Resonate Networks Tripbase VoxPop Mo'Minis Cliqset Socialcast Brandtology Scan & Target Jodange Picaboo Loop'd Network Foodista MashLogic Jaxtr
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised ($234.8 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it was the Ad Network sector that saw the most transactions (13), raising $103.7 million (Figure 4). The Media sector has the next highest totals, with six companies raising $45.8 million. The following sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
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Capital Market Activity by Sector - Last Three Months
250.0
200.0
150.0 (US$m)
234.8 100.0
50.0
103.7
45.8 0.0
33.0 Gaming
30.2 Comment/Reputation
24.0 Video
23.0 Blog
18.3 Search
17.0 Collaboration
14.5 Virtual World
10.4 Widget
9.0 Infrastructure
6.8 Aggregation
5.9 Enterprise
4.7 Social Commerce
4.4 Analytics
2.0 Travel
2.0 Mobile
1.3 SAS
1.0 Publishing 1
Social Networks
# companies
10
13
Ad Network
Media 6
5
2
2
2
2
3
3
2
3
1
1
1
2
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 outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
96.38
86.38
76.38
66.38
56.38
46.38
Index: Web 2.0 X (Market Cap Weights)
^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
A mixed price performance 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 19 companies showing positive returns on the week. Openwave Systems Inc. (OPW V:NASDAQ) led the group with a 21.7% return, while Tree.com (TREE:NASDAQ) had the worst return, dropping 26.5% in the week.
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Openw ave S ys tems Inc. Cyberplex Inc. Ngi Group Inc. Eolith Co. Ltd. XING A G TheS treet.com, Inc. Perfect World Co., Ltd. DA DA S pA CDC Corp. Open Tex t Corp. V alueClick Inc. My riad Group A G A Q Interactive, Inc. Modern Times Group Mtg A B LookS mart, Ltd. Mix i, Inc. IA C/InterA ctiveCorp. S hutterfly, Inc. S K Communic ations Co., Ltd. Changyou.com Limited Gamania Digital Entertainment Co., Ltd. Tencent Holdings Ltd. HanbitS oft, Inc. S ohu.com Inc. GameOn Co Ltd. S park Netw orks , Inc. Y edangOnline Corp. Gravity Co., L td Gree, Inc. K ings oft Co. Ltd. United Online Inc. NetDragon WebS oft, Inc. The9 Limited Neteas e.c om Inc. NEOWIZ Games Corporation Y nk K orea Inc. Giant Interactive Group, Inc. GigaMedia Ltd. S handa Interactive Entertainment Ltd. Chines e Gamer International Webz en Inc. A ctoz S oft Co., Ltd. -22.4% Northgate Technologies Limited OA O R B C Information S ys tems -25.9% Tree.Com, Inc. -26.5% -30.0%
1 Week Price Performance
12.8% 8.6% 8.3% 8.2% 7.6% 5.3% 4.0% 3.8% 3.7% 3.0% 2.4% 1.6% 1.5% 1.1% 0.5% 0.1% 0.0% -0.2% -0.4% -0.4% -1.5% -1.5% -2.1% -2.6% -3.9% -4.3% -4.7% -4.7% -5.6% -5.8% -5.9% -6.5% -7.8% -8.6% -8.7% -10.2% -11.7% -14.8% -15.3% -16.2%
21.7% 20.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
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INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
K ing s oft Co . Ltd. (S E HK: 3888)
Headline
K ings oft to L aunc h T -800 T erminator-S ha ped F la sh D isk
Notes
K ingsoft C o. Ltd. is on the point of rolling out an a nti-virus s oftwa re-embedded 2G flas h dis k in the shape of the c las sic T -800 T erminator in T he T ermina tor s eries. T he B eijing-based s oftware developer will have its spark ling a nti-virus software preins ta lled in the flash disk , disclosed s ources , noting that us ers will have a cc es s to the K ings oft software for four y ears . T he flas h disk s will c ome into the ma rk ets in B eijing a nd S ha ngha i when the long-expec ted s cience-fic tion movie T ermina tor S al vation is put up on show throughout the country on J une 9, 2009, with onl y 2,018 ava ila ble for s a le. Northga te Technologies Limited appointed B S R and C ompa ny, a n Indian a s soc iate of K P M G , as s tatutory auditors of the compa ny. T he company has a ppointed B S R a nd compa ny to fi ll the va ca nc y c aused by the res igna tion of P ric e W aterhouse, C ha rtered Ac countants. G igaMedia L td. reported firs t-qua rter rev enues of $44. 4 million, net income of $4.8 million, and earnings per s hare of $0.09 basic a nd $0. 08 fully -diluted. T he company als o a nnounced tha t it is final round dis cuss ions with two parties concerning a potentia l s tra tegic partnership or sale involv ing its pok er and ca sino software bus ines s. N o a dditiona l details a re av ailable at this time.
Northgate Tec hno logies Limited (B S E :590057) G igaMedia L td. (Nas daqG S : G IG M)
Northga te T echnologies Limited Appo ints B S R a nd Company as S tatu tory Auditor R eplacing P rice W a terhous e G igaMedia I n T alks
IB 3 Networks , Inc. (OT CB B: IB NW ); iB eam S o lu tions L LC G igaMedia L td. (Nas daqG S : G IG M)
IB 3 N etwork s I nc. a nd iB ea m S olutions LL C S igns T hree IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it rec ently finalized a multi-thous and dolla r three yea r service co ntrac t with M illennium B us ines s S olutions . Y ear S ervice C ontra ct with Millennium B usines s S olutions G igaMedia L td. R eports Un-Audi ted Cons olidated E a rnings R esults for the F irst Q uarter E nded M arch 31, 2009 ; R eports Impa irment Los s G igaMedia L td. reported un-a udited cons olidated ea rnings res ults for the first qua rter ended M a rch 31, 2009. F or the qua rter, the c ompany's cons olidated revenues decrea s ed 13% to $44. 4 million from $51.2 million in the s ame period of 2008, a nd held s tea dy c ompa red with the fourth qua rter of 2008. The year-period decrease wa s prima rily due to lower contributions from the compa ny 's ga ming software busines s reflec ting the impac t of the globa l economic downturn on play er s pending in the indus try, with depreciation of the euro agains t the U .S . dolla r increa s ing play ing cos ts , res ulting in decreas ed play er s pending. C onsolidated income from opera tions for the firs t quarter wa s $5. 4 million compared to $12.7 million in the first quarter of 2008 a nd $7.9 million in the fourth qua rter of 2008. T he y ear-over-y ear decrea s e in cons olidated income from opera tions reflected the a forementioned revenue decreas e and lower gros s profit ma rgin on c ha nged revenue mix during the period, whic h des pite fl a t opera ting expens es, yielded a decrea se in the company 's cons olidated opera ting ma rgin to 12.2% . The quarter-ov er-quarter decrea s e i n consolida ted income from operations wa s prima rily the result of lower gros s profit, as well as a n increa s e in o
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com I nc. D ecl are s Q uarterly D ividend, P a ya ble T heS treet. com Inc. announced tha t its boa rd of directors ha s decla red the compa ny's quarterly ca sh dividend on its common stoc k. T he on J une 30, 2009 cas h div idend of $0.025 per s ha re of common s tock will be pa ya ble J une 30, 2009, to all s hareholders of rec ord a t the clos e of busines s on J une 15, 2009. A OL, L LC ; IAC /InterActiveCorp. IAC Might S how I nteres t I n AO L It was recently reported tha t I AC /InterAc tiv eC orp might be interested i n buy ing into AO L, LL C. I AC’ s chairma n, B a rry D iller s a id the T ime (Nas daqG S : IACI) W a rner online service, whic h is openly for sa le, is a “tremendous ly va luable property’’. H e a dded, “Not the A O L dialup stuff, of c ours e, but it has done a wonderful job on the media s ide. I t ha s built up a ton of really good growing s ites . ” “D epending on how much the hang i s, we’d definitely be i nteres ted in it, ’’ D iller s a id, referring to the cos t of the ac quis ition. S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orp. R eports E arnings R es ults for the Q uarter E nded April 30, 2009 W izz ard S oftware Co rporation W izz ard S oftwa re C orporati on, Annual G eneral Meeting, (A ME X: WZE ) J un 10, 2009 S ites ea rch C orporation reported ea rnings res ults for the quarter ended A pril 30, 2009. The company reported a net los s of $303,451. In contrast, the compa ny posted a net los s of $221, 450 for the same qua rter in the previous y ea r. W izza rd S oftwa re C orporation, A nnual G eneral Meeting, J un 10, 2009, at 14:00 E as tern Da y light. Loca tion: Ma rriott C ourty ard, 5308 Liberty Ave. , P itts burgh, P A 15224,U nited S tates . Agenda: T o elec t five directors to s erve unti l the nex t annual meeting of s tock holders, or until their suc ces s ors a re duly elec ted a nd qualifi ed; to approve 2009 s tock option plan; to a pprove the is sua nc e of unregistered and res tricted s tock to cons ulta nts ; to ra tify the s elec tion by the B oa rd of Directors of G regory & As s ocia tes L LC a s independent auditors of Wiz za rd for the fisca l yea r ending D ecember 31, 2009; a nd to trans a ct such other busines s a s ma y properly come before the annual meeting and a ny a nd all a djournments or postponements thereof. W izza rd S oftwa re C orporation a nnounc ed the a cquis ition of a new iP hone App and the mark eting launc h of its recently a cquired Apps via podca s ts a nd the I nternet. I t a cquired the dis trib ution rights to S uper M a stermind, a high quality App pois ed for sa les growth through the company's podca s t ma rk eting and distribution network ta rgeti ng iP hone a nd iP od T ouch users . W iz zard has focus ed its rec ent acquis ition efforts on Apps that cross a wide ra nge of cons umer interests and ma tc h up well with targeted podca st audi ences . The c ompany pla ns to ma rk et the Apps i n targeted podca s ts. T he company believes the new price point for the iP hone wi ll c ause more people to s elect the pla tform, increa s ing audi ences for the podca s ts on the W iz za rd Media Network and adding potential cons umers for new Apps.
W izz ard S oftware Co rporation (A ME X: WZE )
W izz ard S oftwa re I ntroduces N ew iP hone App and L aunches App M a rketing V ia P odc as ts
V OIS , Inc . (OTC BB :VOIS ) IB 3 Networks , Inc. (OT CB B: IB NW ); iB eam S o lu tions L LC
V O IS , Inc. ha s filed a S helf R egistration in the amount of V O IS , Inc. ha s filed a S helf R egistration in the amou nt of $1.75 million. $1.75 million. iB 3 N etwork s R ec eives C ontract F rom L anca ster IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it has been retained by L anca ster C ommunity Community C hurch Churc h. The contrac t inc ludes complete des ign a nd ins ta lla tion of a new network to s upport the organiz ati on's growth. iB ea m S olutions ha s been hired by L anca s ter C ommunity Church to insta ll c abling, network s ervers and phones and als o inc ludes a contra ct for on going monthly support for the next 12 months c overing their I T needs going forwa rd. T heS treet. com, I nc., $ 0.025, Ca s h D ividend, J un-12-2009 G ravity Co. , Ltd, S pecial/E xtra ordinary S hareholders M eeting, J un 12, 2009, at 01: 00 G M T T ime. L oc ation: Nuritk um S qua re B usines s T ower 15F, 1605 S a nga m-Dong, M a po-G u, S eoul 121-270,S outh K orea. Agenda : T o consider a ppointment of director a nd to c onsider approval of a mendment of Artic les of I ncorpora tion.
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com, Inc., $ 0. 025, Ca s h Div idend, J un-122009 G ravity Co., L td (N as daqG M: G R VY ) G ravity Co. , Ltd, S pec ial/E x tra ordinary S hareholders Meeting, J un 12, 2009
Figure 7. Key Developments Source. Capital IQ
Page 8
VALUATION Online Gaming companies lead market-cap charts: Eleven companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-nine of the 92 companies have market caps under US$100 million, with 26 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$18 billion.
Market C ap (US D m)
Tencent Holdings L td. Neteas e. c om Inc. S handa Interac tive Entertainment L td. S ohu. c om Inc. IA C/InterA ctiveCorp. Changy ou. com L imited Open Tex t Corp. G iant Interac tive Group, Inc. Modern Times G roup Mtg A B Gree, Inc. Perfec t World Co. , L td. V alueClick Inc. Chines e Gamer International K ings oft Co. L td. Mix i, Inc. United Online Inc. NEOWIZ Games Corporation S K Communications Co. , L td. NetDragon WebS oft, Inc. S hutterf ly , Inc. GigaMedia L td. The9 L imited G ungHo Online Entertainment, Inc. Gamania Digital Entertainment Co. , L td. XING A G Openw ave S y s tems Inc. A c toz S of t Co. , L td. CDC Corp. OA O R B C Inf ormation S ys tems DA DA S pA Y edangOnline Corp. G ameOn Co L td. My riad Group A G Cy berplex Inc. Tree. Com, Inc. Moggle, Inc HanbitS oft, Inc. K A B Dis tribution Inc. J umpTV Inc. DigitalTow n, Inc. TheS treet.c om, Inc. GeoS entric Oy j S park Netw orks , Inc. Ngi G roup Inc. Eolith Co. L td. A Q Interactive, Inc. B ey ond Commerc e, Inc. Webz en Inc. NeXplore Corporation Fluid Mus ic Canada, Inc. Wiz z ard S oftw are Corporation Northgate Tec hnologies L imited Gravity Co., L td S ocialw is e, Inc. S ites earch Corporation Dolphin Digital Media, Inc. Y nk K orea Inc. DXN Holdings B hd Frogs ter Interac tive Pic tures A G LookS mart, L td. B roadWebA s ia Inc. IA S Energy , Inc. J umbuck Entertainment Pty L td. Ex tens ions , Inc. UOMO Media, Inc L ingo Media Corporation S pec trumDNA , Inc. A c celeriz e New Media, Inc. Wynds torm Corporation Quepas a Corp. S NA P Interac tive, Inc. Magnitude Information S y s tems Inc. B right Things plc Worlds . c om Inc. CornerWorld Corporation MOK O. mobi L imited is eemedia Inc. L iveWorld Inc. B etaw ave Corporation V OIS , Inc. DigitalPos t Interac tive, Inc. B igs tring Corp. Unis erve Communications Corp. A s s oc iated Media Holdings Inc. The Parent Company China Gatew ay Corporation ZipLocal Inc. Financ ial Media Group, Inc. Total S port Online A S S NM Global Holdings Dibz International, Inc. S ocial Media V enures , Inc. 0
Figure 8. Market Cap Ranking Source. Capital IQ
1397. 1 1245.2 1048. 0 797. 732. 1 0 721.7 546.6 502. 9 365. 5 341. 0 339. 1 298. 8 280. 5 263. 0 256. 5 245. 7 191. 6 184. 9 164. 4 138. 7 134. 1 115. 6 112. 8 100. 3 99. 8 94.4 83. 5 82. 0 76. 4 73. 1 67. 7 64. 3 49.5 46.3 45.5 43. 8 42. 6 40. 4 40. 3 39. 0 34. 7 31. 1 30. 6 30. 6 30. 3 28. 2 27. 4 27. 1 26. 1 25. 9 23.1 19.5 16. 1 15. 7 14. 2 14. 1 12. 8 9. 7 9. 7 9. 2 7. 9 7. 6 5. 5 4. 8 4. 7 4. 5 3. 5 3. 4 3. 1 2. 9 2. 9 1. 6 1. 5 1. 1 0. 9 0. 8 0. 4 0. 4 0. 3 0. 1 0. 0 0. 0 0. 0 500 1, 000 1, 500
1877. 1 1858.9 1801. 8
2123. 6
2522. 0 2458. 4
3774. 4
2, 000
2, 500
3, 000
3,500
4, 000
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (versus 5.4x last week) (Figure 9). One company trades at more than 40x revenue – Gree, Inc. (TSE:3632) at 43.9x – closely followed
Page 9
by with Dolphin Digital (OTCBB:DPDM) at 39.0x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-eight companies have multiples under 1.9x.
T E V/L T M R evenue (x)
50. 0 45. 0 40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 22.8 19. 18.8 2 17.6 13.03.0 1 43.9 39. 0 36.7
Figure 9. TEV/Revenue Ranking Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (20), trading at an average multiple of 14.9x (below from 15.6x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.1x revenue (versus 6.3x last week) (Figure 11). Ten of the companies are Canadian (average 5.2x revenue).
Average TEV/LTM Revenue - By Exchange
20.0 17.6 18.0 16.0 14.9 14.0 12.4 12.0 10.0 8.8 8.0 7.8 7.4 6.0 5.7 4.6 3.83.5 3.3 2.8 2.8 4.0 2.2 2.2 1.9 1.4 1.4 0.8 0.5 2.0 0.4 0.30.0 0.0 OTCNO TSXV OTCBB OTCPK GTSM NasdaqGM SEHK KOSE NasdaqGS HLSE OSE TSE AMEX XTRA KLSE SWX ASX RTS TSX OM CM BSE AIM
(x)
(x)
Germany
Japan
United
United
China
Malaysia
Finland
Canada
Switzerland
# Companies
1 20 5 3 1 2 2 1 4 10 2 1 4 1 7 14 2 1 1 1 5 1 1
# Companies 1 6 1 40 10 2 3 10 1
1
9
2
1
1
1
Hong Kong
Australia
Taiwan
Norway
Sweden
1
1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
TEV/EBITDA (LTM) averages 10.2x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 10.2x LTM EBITDA (vs. 10.3 last week), led by Tencent Holding’s (700-SEHK) 39.2x multiple (Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.6x (vs. 9.4x last week).
Russia 1
South
India
Italy
O AO R B C Information S y s tems C hina G atewa y C orporation S handa Interac tive E ntertainment Ltd. P erfect World C o., Ltd. U nis erve C ommunications C orp. L iveWorld Inc . AQ Intera ctive, Inc . T he P a rent C ompany N orthgate T echnologies L imited T ree.C om, Inc. IAC /InterAc tiveC orp. O penwave S y s tems Inc . C DC C orp. DXN Holdings B hd ZipLoca l Inc . G a meO n C o Ltd. J umbuck E nterta inment P ty L td. DADA S pA S pa rk N etwork s , Inc . United O nline Inc . S N M G loba l Holdings K AB Dis tribution Inc . H anbitS oft, Inc . G igaMedia Ltd. S hutterfly , Inc . C y berplex Inc . Modern T imes G roup Mtg AB V alueC lic k Inc . is eemedia Inc . Ac toz S oft C o. , Ltd. G a mania Digital E ntertainment C o., Ltd. S NAP Intera ctive, Inc. S K C ommunica tions C o., Ltd. MO K O .mobi L imited G ungH o O nline E ntertainment, Inc. NetDra gon WebS oft, Inc . Y edangO nline C orp. Y nk K orea Inc . O pen T ex t C orp. N E O WIZ G ames C orporation My riad G roup AG E olith C o. Ltd. J umpT V Inc . Acceleriz e New Media , Inc . XIN G AG DigitalP os t Intera ctive, Inc. C ornerWorld C orporation T otal S port O nline AS S ohu.com Inc . Mix i, Inc . F luid Mus ic C a nada , Inc. K ings oft C o. Ltd. Wiz z ard S oftware C orporation B ey ond C ommerc e, Inc. F rogs ter Intera ctiv e P ic tures AG G eoS entric O y j C ha ngy ou.com L imited Lingo Media C orporation C hines e G amer Interna tional B right T hings plc T encent Holdings Ltd. As s ociated Media Holdings Inc . UO MO Media, Inc Dolphin Digital Media, Inc. B igs tring C orp. G ree, Inc .
7.67. 88.7 10. 0 5. 86.3 A verage, 5.3 4.54.64.64.74.95.25.2 3.53.7 5. 0 2.32.32.52.52.83.13.4 1.11.21.21.31.31.41.61.61. 71.91.92. 02.12.22. 3 0.00.10.10.10.20.20. 20.20.30. 40.40.40. 50.50.60.70.80.80.91.01.1 0. 0
Average TEV/LTM Revenue - By Country
20.0 17.6 18.0 16.0 14.0 12.0 10.4 10.0 7.8 8.0 6.1 5.7 5.7 5.4 5.2 6.0 4.6 4.0 2.8 2.2 1.4 1.4 2.0 0.8 0.5 0.5 0.3 0.0 0.0
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T E V/L T M E B IT DA (x)
45. 0 40. 0 35. 0 30. 8 30. 0 25. 0 20. 0 15. 0 A verage, 10. 2 10. 0 5. 0 0. 2 O AO R B C Information S y s tems 0. 0 0. 2 NE O WIZ G ames C orporation G amania Digital E ntertainment C o. , Ltd. G ungH o O nline E ntertainment, Inc . J umbuck E ntertainment P ty Ltd. C hines e G amer International C hangy ou. c om L imited DXN Holdings B hd C DC C orp. Modern T imes G roup Mtg AB S handa Interactive E ntertainment L td. S K C ommunic ations C o. , L td.
0.2 Russia 1
39. 2
22. 1
23. 3
2. 0
3.0
3.6
3.9
4. 0
4. 3
4. 7
5. 8
5. 8
6. 6
7. 8
8. 9
9. 0
9. 4
9. 5
9. 7
14. 3 12.9 12. 9 13. 5 13. 9 11.9 12.4 10. 4 10. 7 11. 2 9. 8
G ameO n C o L td.
U nited O nline Inc .
S NAP Interac tive, Inc .
O pen T ex t C orp.
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 6.6x (vs. 7.2x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.9x EBITDA (Figure 14). Ten of the companies are Canadian (average 10.7x EBITDA).
Average TEV/LTM EBITDA - By Exchange
25.0 20.0 15.0 (x) 10.0 5.0 OTCBB GTSM 0.0 SEHK KOSE NasdaqGS OSE TSE 17.2 16.1 12.4 11.9 11.2 19.3
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
17.2 16.1 11.9 11.9 10.7
(x)
9.0 7.8 6.8 6.6
9.0
8.2
7.9
4.3 4.0 3.9 2.0 0.2 AMEX KLSE RTS CM ASX
5.8 4.3 3.9 2.0 0.0 Switzerland 1
0.0 0.0 NasdaqGM SWX
XTRA
TSX
OM
Germany
Japan
Hong Kong
Malaysia
China
Canada
United States
Taiwan
South Korea
Italy
# Companies
3
2
7
1
2
4
1
14
5
20
1
2
1
2
1
1
5
# Companies 3 9 2 10 10 1 6 40
1
1
1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 16.7x LTM EPS (vs. 15.3x last week), led Tencent Holding’s (700-SEHK) 49.8x multiple (Figure 15). Eight of the companies have P/E multiples under 10x. The median is just 13.8x.
Australia
Sweden
2
T encent Holdings L td.
V alueC lic k Inc .
C yberplex Inc.
S park Network s , Inc.
IAC /InterAc tiveC orp.
AQ Interac tive, Inc .
S ohu. c om Inc .
XING AG
K AB Dis tribution Inc.
Y edangO nline C orp.
Actoz S oft C o. , L td.
K ings oft C o. L td.
Y nk K orea Inc.
S hutterfly , Inc.
DADA S pA
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P /E L T M (x)
60.0 49.8 50.0
40.0 30.7 30.9 29.3 30.3 27.3 28.1 20.9 20.0 A verage, 16.7 10.1 10.0 2.0 G iant Interactive G roup, Inc. 0.0 2.0 P erfect World C o., Ltd. 2.6 Neteas e.com Inc. 2.9 S handa Interactive E ntertainment Ltd. 4.4 5.5 6.4 13.3 13.5 14.2 14.2 14.5 11.6 11.9 12.2 12.4 16.5 23.0 23.7
36.7
30.0
G amania Digital E ntertainment C o., Ltd.
J umbuck E ntertainment P ty Ltd.
NE O W IZ G ames C orporation
Modern T imes G roup Mtg AB
C hines e G amer International
C hangy ou.com Limited
DXN H oldings B hd
G ameO n C o Ltd.
S NAP Interactive, Inc.
O pen T ex t C orp.
Ngi G roup Inc.
NetDragon W ebS oft, Inc.
Worlds .com Inc.
G igaMedia Ltd.
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 (20), trading at an average multiple of 21.2x. On a geographic basis, the United States has the most companies (40), trading at an average of 19.4x earnings (Figure 17). Ten of the companies are Canadian (average 19.7x EPS).
Average P/E - By Exchange
35.0 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 TSE NasdaqGS KOSE SEHK CM TSX XTRA AMEX ASX
25.0 23.7 23.6 23.4 23.0 21.2 19.7 19.4 11.8 6.4 5.5 4.4 0.0 Germany Japan Australia Malaysia Canada United South Korea Taiwan States China Italy Sweden Switzerland 1
Average P/E - By Country
29.1
20.0
26.2
21.2 21.2 14.2 11.0 10.1 6.4
(x)
23.7 23.6
23.0
15.0 10.0
5.5
5.0
4.4 2.0 0.0
0.0
OM
NYSE
KLSE
SWX
# Companies
2
9
3
1
6
10
40
10
2
1
1
# Companies
2
3
2
7
1
5
20
2
14
4
2
1
1
1
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
T encent H oldings Ltd.
C y berplex Inc.
S park Network s , Inc.
S ohu.com Inc.
IAC /InterActiveC orp.
Y edangO nline C orp.
K ings oft C o. Ltd.
DADA S pA
XING AG
Actoz S oft C o., Ltd.
Mix i, Inc.
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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 B Dis tribution 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. 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 ocia lwis e, 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 US D US D US D US D KR W US D 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 Q PSA R BC I S NDA S F LY A 066 270 S T VI S NM N S MVI S CL W 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 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 OT C B B 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) 9 .7 18 4.9 4 2.6 0 .9 1 .5 2 .9 4 0.4 4 .8 1 9.5 16 4.4 2,1 23. 6 0 .4 79 7.0 4 .5 9 9.8 13 4.1 2 6.1 0 .0 1 .6 6 7.7 2 7.4 4 3.8 1 4.2 0 .3 3 4.7 2 5.9 25 6.5 11 2.8 4 9.5 1,8 58. 9 29 8.8 3 0.6 1,3 97. 1 26 3.0 8 2.0 2,4 58. 4 1 6.1 3 .4 1 5.7 7 3.1 7 6.4 73 2.1 1 2.8 3 .1 2 3.1 5 .5 72 1.7 1,8 01. 8 8 3.5 3 .5 10 0.3 50 2.9 34 1.0 4,3 11. 8 3 9.0 4 5.5 3 0.6 1,8 77. 1 19 1.6 1,2 45. 2 7 .9 13 8.7 3,7 74. 4 33 9.1 36 5.5 7 .6 0 .0 0 .0 3 0.3 2,5 22. 0 2 8.2 4 6.3 9 .7 20, 758 .8 0 .8 28 0.5 6 4.3 0 .1 9 4.4 1 .1 54 6.6 1 4.1 1,0 48. 0 2 .9 4 0.3 3 1.1 4 .7 9 .2 24 5.7 11 5.6 2 7.1 0 .4 C urrent Pric e 0.3 5 2 7,25 0.0 0 7 6,80 0.0 0 0.0 2 0.0 3 0.1 0 0.9 1 0.0 2 0.2 3 1.5 5 3 8.6 1 0.0 2 31 2.0 0 0.0 7 1.8 0 6.0 0 0.4 0 0.0 0 0.0 2 2.5 0 0.5 3 76 0.0 0 0.1 5 0.0 0 0.7 5 7.9 8 5 5.6 0 11 4,30 0.0 0 0.0 4 8.2 4 5.5 3 1.1 0 6,13 0.0 0 22 5,00 0.0 0 4,72 0.0 0 1 6.2 9 0.2 3 0.0 8 0.4 0 0.7 3 0.6 2 5.2 3 1.1 3 0.1 0 1.3 5 0.0 1 46 0,00 0.0 0 21 6.0 0 2.3 0 0.0 5 5.1 5 6 5,90 0.0 0 5.0 0 3 5.0 4 0.7 0 3 6,10 0.0 0 4 2.0 5 3 5.6 7 2.3 0 2 4.3 5 0.6 2 1.0 0 5 4.4 0 1 3.4 7 1 1,00 0.0 0 0.7 0 0.0 0 0.0 1 0.7 0 6 5.9 1 3.5 0 2.2 5 0.2 0 8 9.2 0 0.0 3 1 0.4 6 2.1 0 0.0 3 8.7 4 0.0 5 6.5 4 0.1 7 1 2.0 5 0.3 5 3.4 0 0.6 5 0.0 9 0.5 1 3 3.8 0 9,29 0.0 0 6,40 0.0 0 0.0 1 1 Wk 0.0 % -16. 2% 2.4 % 1 233 .3% 7.4 % 66.7 % -4.2 % -6.3 % -22. 8% 4.0 % -0.2 % 9 00. 0% -14. 8% -22. 2% 20.0 % 5.3 % 2.6 % -90. 0% 37.5 % 25.0 % -11. 7% 8.6 % -25. 0% 42.9 % 7.1 % 1.8 % -0.4 % -2.1 % -20. 0% -8.7 % -10. 2% -4.3 % -4.7 % -9.9 % -1.5 % 0.5 % 15.0 % 7.1 % -4.8 % -1.4 % 1.6 % -4.7 % 13.0 % -60. 0% 1.5 % 20.0 % 1.1 % 1.6 % 15.0 % -22. 7% 3.0 % -7.8 % -5.8 % -6.5 % 0.0 % 12.8 % -22. 4% 3.8 % 21.7 % 7.6 % -11. 4% -25. 9% -11. 7% 0.1 % 0.0 % -11. 4% -25. 0% 0.0 % -1.4 % -1.5 % -30. 0% -2.6 % -46. 0% -0.4 % 68.4 % -5.9 % 8.2 % 0.0 % -26. 5% 0.0 % -5.6 % -8.3 % 3.7 % 0.0 % -15. 3% -3.0 % -10. 0% 1 600 .0% 8.3 % -3.9 % -8.6 % 0.0 % 1 600 .0% -90. 0% 38.2% -0.4 % 1 Mth -30. 0% 9 3.3 % 4 0.1 % 12 33. 3% 2 6.1 % -9.1 % -26. 6% -15. 7% -22. 8% 2 1.1 % 3 0.0 % 9 00.0 % 1 3.7 % -30. 0% 2.9% 3.7% 0.0% -90. 0% 4 6.7 % 0.0% -24. 3% -20. 0% -25. 0% 0.0% 7.1% -5.6 % 4 2.2 % 2 1.9 % -20. 0% 0.0% -6.9 % 1 2.2 % 1 1.9 % 2 6.4 % -15. 0% 9.0% -17. 9% -21. 1% -2.4 % -6.4 % 3.3% 1 1.3 % 2 2.8 % 4 2.9 % 3.8% 2 0.0 % 8.2% -5.1 % 1 5.0 % -32. 0% 3.0% 5.1% -15. 8% 1 5.1 % 0.0% 1 7.8 % -13. 9% 1 4.6 % 9 1.7 % 3 5.1 % -38. 0% -20. 0% 1 2.2 % -2.1 % 1 5.3 % -6.7 % -50. 0% 0.0% -20. 5% 2 5.4 % NM -10. 7% -41. 2% 1 2.1 % 1 56.0 % 1 3.0 % 1 3.5 % 0.0% -25. 7% 2 5.0 % -1.2 % -52. 9% 1 9.5 % -61. 1% 9.3% 0.0% -47. 1% 2 00.0 % 1 0.8 % 2.1% -17. 9% 0.0% 12 33. 3% -90. 0% 27.6% 2.1% 3 Mth 59 .1% 15 0.0% 12 6.5% 132 8.6 % 93 .3% -4 4.4% 78 .4% -2 .0% -5 4.9% 59 .8% NM 190 0.0 % 10 1.3% -5 0.0% 26 0.0% 28 .8% 42 .9% -9 0.0% 45 0.0% 0 .0% 8 .2% 36 .9% 18 5.7% -7 1.4% 87 .5% 73 .9% 81 .1% 41 .6% 33 .3% 11 .4% -3 .3% 74 .6% 23 .6% 10 2.5% 42 .2% 8 .8% 22 8.6% -6 .3% -1 2.1% 82 .5% 65 .3% 94 .4% 25 .6% -5 0.0% 31 .1% -3 3.3% 41 .5% 69 .7% 53 .3% -1 5.0% 35 .5% 70 .7% 46 .2% 50 .1% 0 .0% 10 4.0% 24 .0% 13 .9% 16 4.4% 91 .7% -4 6.1% 33 4.8% 48 .9% 52 .9% 42 .5% -3 3.3% 50 .0% -9 9.2% 84 .2% 36 .3% NM -4 .3% 11 .1% 69 .1% 96 6.7% -1 8.0% 6 .6% -2 5.0% 91 .7% 0 .0% 63 .1% 13 5.7% 75 .1% -1 2.5% 80 .9% 71 .1% -5 0.0% 32 5.0% 16 .0% 34 .4% 82 .9% 0 .0% 190 0.0 % -9 9.2% 97.1% 42 .7% 6 Mth -1 2.5 % 16 7.2% 15 5.1% 56 6.7% 45 .0% -3 7.5 % 30 .0% 56 .3% -7 7.2 % 44 .9% NM 90 0.0% 25 5.8% -8 5.1 % 40 0.0% -1 1.7 % 5 .3% -9 8.0 % -1 2.0 % 0 .0% -3 2.9 % 15 .2% 50 .0% -9 3.3 % 20 0.0% 74 .2% 27 0.7% -3.8% 0 .0% 38 .0% -1 4.7 % 11 5.7% 27 .7% 13 0.3% 31 .8% 0 .1% 66 6.7% 66 .7% 2 .6% 13 5.5% 14 3.1% 10 5.1% 7 .6% 10 0.0% -1 1.8 % -3 6.8 % -2 1.0 % 36 .7% NM 2 .0% -1 4.2 % 23 6.2% 77 .9% 62 .5% -3 3.3 % -2 8.9 % -2 8.2 % 23 .8% 26 5.1% 51 .7% -6 5.6 % 66 .7% 81 .5% 85 .8% 91 .0% 0 .0% -9 5.7 % -9 9.1 % -2 8.6 % 44 .9% NM -1 3.1 % -4.8% 72 .2% -8 9.3 % -1 7.0 % -3 6.6 % -4 0.0 % 30 8.4% 25 .0% 13 .9% 26 .9% 63 .1% 16 .7% 31 4.6% -3 4.3 % -5 5.0 % 32 5.0% 40 .5% 30 .8% 8 .8% -5 0.0 % 90 0.0% -9 9.1 % 66.3% 25 .0% 1 Yr -53 .3% 2 49. 8% -48 .5% NM -78 .5% -73 .7% -71 .1% -29 .4% -84 .7% -41 .5% NM 33.3 % 2 05. 9% -76 .7% 1 40. 0% -55 .2% 0.0 % -98 .0% -83 .1% -28 .6% NM -11 .1% 0.0 % -99 .6% -60 .5% 46.4 % 75.9 % -11 .4% -33 .3% -39 .0% -62 .4% -14 .1% NM -16 .7% 33.7 % -60 .4% 4.5 % -58 .3% -34 .4% 12.3 % -31 .1% 34.1 % -42 .6% -50 .0% -66 .0% -45 .5% -38 .9% -43 .0% NM -7. 3% -49 .8% 1 19. 7% -51 .5% 59.7 % -22 .2% -70 .9% -88 .6% 11.0 % 37.7 % -1. 7% -74 .1% -88 .9% 89.5 % -4. 8% -34 .5% 1.4 % -99 .9% NM -51 .7% -8. 3% NM -47 .1% NM 41.8 % -98 .4% -52 .6% -70 .0% -70 .0% NM -84 .8% -40 .5% -52 .9% -29 .3% -92 .6% -0. 6% -63 .5% -70 .5% -15 .0% -4. 5% -16 .3% -53 .1% -96 .4% 2 49. 8% -99 .9% -24.8% -40 .5% 52 We ek -53. 3% -24. 3% -56. 1% -60. 0% -85. 5% -76. 2% -72. 4% -40. 0% -92. 1% -51. 1% -13. 9% -42. 9% -20. 6% -91. 1% -9.5 % -56. 2% -14. 9% -98. 0% -87. 1% -59. 0% -53. 1% -34. 5% -85. 1% -99. 6% -63. 2% -19. 4% -11. 3% -30. 1% -42. 9% -41. 8% -65. 0% -44. 7% -5.8 % -19. 9% -28. 9% -67. 7% -34. 3% -78. 6% -35. 5% -43. 0% -37. 4% -12. 4% -42. 6% -68. 8% -68. 2% -60. 0% -50. 1% -47. 1% 0.0 % -49. 0% -49. 8% -21. 5% -52. 8% -9.6 % -51. 7% -72. 9% -89. 0% -8.7 % -5.3 % -13. 3% -82. 1% -89. 0% -16. 3% -11. 7% -44. 2% -35. 2% -99. 9% -99. 8% -75. 3% -25. 1% -30. 0% -49. 6% -66. 7% -3.6 % -98. 8% -63. 3% -71. 4% -70. 0% -33. 1% -85. 7% -46. 6% -84. 4% -33. 2% -93. 8% -27. 3% -68. 0% -77. 5% -40. 0% -7.9 % -25. 1% -55. 2% -96. 9% 0.0 % -99. 9% -50.3% -49. 7%
581.4
Figure 18. Price Performance Source. Capital IQ
Page 13
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. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribution 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. 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 ocia lwis e, 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
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US D Market Cap ($m)
9. 7 1 84. 9 42. 6 0. 9 1. 5 2. 9 40. 4 4. 8 19. 5 1 64. 4 2,1 23. 6 0. 4 7 97. 0 4. 5 99. 8 1 34. 1 26. 1 0. 0 1. 6 67. 7 27. 4 43. 8 14. 2 0. 3 34. 7 25. 9 2 56. 5 1 12. 8 49. 5 1,8 58. 9 2 98. 8 30. 6 1,3 97. 1 2 63. 0 82. 0 2,4 58. 4 16. 1 3. 4 15. 7 73. 1 76. 4 7 32. 1 12. 8 3. 1 23. 1 5. 5 7 21. 7 1,8 01. 8 83. 5 3. 5 1 00. 3 5 02. 9 3 41. 0 4,3 11. 8 39. 0 45. 5 30. 6 1,8 77. 1 1 91. 6 1,2 45. 2 7. 9 1 38. 7 3,7 74. 4 3 39. 1 3 65. 5 7. 6 0. 0 0. 0 30. 3 2,5 22. 0 28. 2 46. 3 9. 7 20,7 58. 8 0. 8 2 80. 5 64. 3 0. 1 94. 4 1. 1 5 46. 6 14. 1 1,0 48. 0 2. 9 40. 3 31. 1 4. 7 9. 2 2 45. 7 1 15. 6 27. 1 0. 4 20,7 58. 8 0. 0 581. 4 41. 5
TE V/LT M R evenue
3.5 x 1.7 x 0.2 x 19.2 x 39.0 x 6.3 x 17.6 x 0.5 x 8.7 x 0.1 x 13.0 x 4.6 x 1.3 x 0.8 x 0.5 x 4.5 x 36.7 x 3.1 x 5.2 x 7.6 x 1.9 x 0.7 x 7.8 x 1.2 x 43.9 x 2.2 x 1.2 x 0.4 x 1.6 x 0.8 x 3.4 x 1.1 x 5.2 x 13.0 x 0.2 x 4.9 x 1.4 x 2.1 x 2.8 x 2.5 x 2.3 x 0.3 x 2.5 x 0.4 x 0.1 x 0.0 x 0.1 x 1.3 x 2.0 x 1.9 x 1.1 x 0.0 x 4.7 x 0.9 x 18.8 x 0.2 x 4.6 x 0.4 x 0.2 x 1.0 x 22.8 x 1.6 x 5.8 x 3.7 x 2.3 x 2.3 x 0.6 x 43.9 x 0.0 x 5.3x 2.0 x
TE V/ N TM R evenue
0.5x 6.7x 1.0x 4.3x 1.2x 1.1x 1.3x 2.3x 0.5x 0.6x 0.5x 4.1x 0.4x 0.8x 1.7x 6.7x 0.4x 1.8x 1.1x
TE V/LT M E BITDA
7.8 x 3.6 x 5.8 x 14.3 x 23.3 x 12.9 x 4.3 x 3.9 x 11.2 x 3.0 x 12.4 x 13.5 x 2.0 x 9.5 x 12.9 x 13.9 x 9.0 x 9.4 x 5.8 x 9.8 x 0.2 x 0.2 x 0.2 x 9.7 x 30.8 x 6.6 x 10.7 x 4.0 x 39.2 x 4.7 x 8.9 x 11.9 x 10.4 x 22.1 x 39.2 x 0.2 x 10.2x 9.4 x
TE V/NTM E BITDA
6.2x 8.5x 5.7x 3.7x 5.8x 1 0.5 x 8.5x 5.2x 1.2x 1.3x 7.4x 9.3x 4.5x 3.4x 6.9x 1 0.5 x 1.2x 5.9x 5.8x
P /LT M E P S
28 .1x 14 .5x 30 .9x 10 .1x 23 .0x 4. 4x 27 .3x 13 .5x 2. 0x 11 .9x 20 .9x 6. 4x 16 .5x 36 .7x 5. 5x 30 .3x 12 .2x 2. 6x 13 .3x 29 .3x 2. 0x 2. 9x 11 .6x 14 .2x 14 .2x 49 .8x 0. 8x 30 .7x 23 .7x 12 .4x 49 .8x 0. 8x 16.7x 13 .8x
P /NT M E P S
1 1.2 x 1 3.9 x 1 1.8 x 1 3.7 x 1 1.1 x 3 2.0 x 1 2.5 x 1 5.9 x 1 3.6 x 3 6.5 x 1 0.9 x 1 5.2 x 1 8.2 x 1 1.4 x 8.1x 1 9.1 x 3 6.5 x 8.1x 15.9x 1 3.6 x
P /TangBV
3 .2x 0 .7x 0 .4x 1 3.2x 1 1.6x 1 0.0x 0 .5x 4 .2x 3 .5x 3 .9x 3 .3x 1 .5x 8 .6x 0 .4x 2 .6x 1 7.8x 3 8.2x 2 .5x 1 .1x 2 .9x 1 .6x 4 .3x 4 .0x 1 3.2x 1 .3x 0 .9x 5 .5x 2 .6x 4 .6x 1 5.3x 1 .8x 0 .8x 0 .7x 2 .8x 0 .8x 1 .2x 2 .0x 4 .5x 3 9.5x 6 .8x 6 0.4x 2 5.5x 2 0.8x 0 .1x 0 .8x 1 .2x 8 .5x 1 0.1x 0 .0x 7 .9x 4 .3x 1 .4x 6 0.4x 0 .0x 7.4x 3 .2x
Figure 19. Valuation Comparison Source. Capital IQ
Page 14
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 10 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 1 92 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 H ong K ong R uss ia 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 37, 948.2 5, 300.8 2, 582.7 2, 174.3 1, 801.8 1, 392.7 1, 352.3 271.5 164.4 138.7 134.1 100.3 49.5 30.6 26.1 19.2 4.8 0.1 53,492.4 Avg US D Mar ket C ap ($m) China S weden Ta iwa n Japan Ca na da Hong K ong S outh K orea R us sia G erma ny Ita ly United S tates S witzerland Finland India Malay sia Australia United K ingdom Norway G rand Total 3,794. 8 1,801. 8 450. 8 430. 5 217. 4 164. 4 154. 7 138. 7 135. 8 134. 1 132. 5 100. 3 49. 5 30. 6 26. 1 9. 6 4. 8 0. 1 581.4 U S D LT M T otal R ev ($m) C hina U nited S ta tes 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, 837. 6 3, 795. 5 1, 704. 0 973. 5 667. 0 496. 7 389. 9 365. 6 231. 6 151. 4 117. 0 78. 4 55. 4 40. 0 15. 4 5. 8 2. 1 0. 3 12,927.2 U S D LT M Total E B IT DA ($m) C hina S weden U nited S ta tes C a na da J apan S outh K orea T a iwan I taly H ong K ong R uss ia M alays ia G erma ny Aus tralia S witz erland N orway U nited K ingdom F inland I ndia G r and T otal 1,773. 2 261. 0 244. 5 193. 5 125. 9 86. 7 52. 3 43. 0 30. 8 19. 8 10. 8 10. 3 2. 9 0. 8 -1. 0 -1. 8 -15. 1 -27. 5 2,810.1 E B IT DA % C hina Aus tral ia T aiwa n G ermany J a pa n I ta ly S weden M a la ys ia R uss ia H ong K ong S outh K orea S witz erla nd U nited S ta tes I ndia C anada N orway U nited K ingdom F inla nd G rand T otal 47. 9% 37. 2% 36. 3% 31. 2% 25. 0% 18. 6% 15. 3% 13. 7% 13. 1% 7.9% 6.1% 1.9% -10.1% -23.5% -25.0% -50.6% #DI V /0! #DI V /0! 7.1%
Figure 20. Comparison by Country Source. Capital IQ
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y Ex c hange
C om pany Nam e OT C B B N as da qG S OT C P K K OS E TSE N as da qG M TSX T S XV S E HK A ME X ASX XT R A GT SM S WX H LS E NYS E CM B SE N as da qC M OS E A IM OM R TS K LS E O T C NO G rand To tal 20 14 10 7 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 92 U S D Market Cap ($m) SE HK N asdaqG S TSE NYS E OM K OS E GTS M OT CB B TSX XT R A OS E N asdaqG M R TS CM SWX OT CP K AM E X H LS E BS E KLS E AS X T S XV N asdaqC M AI M OT CN O G rand T otal 21, 831.9 21, 181.4 2, 319.7 1, 858.9 1, 801.8 1, 321.8 1, 053.5 368.0 284.0 271.5 263.0 252.6 138.7 134.1 100.3 77.8 77.3 49.5 30.6 26.1 19.2 17.6 7.9 4.8 0.1 53,492.4 Avg US D Mar ket C ap ($m) S E HK NY S E OM Na s daqG S G TS M TS E OS E K OS E RT S XT R A CM SWX TS X Na s daqG M HL S E AME X BS E KLS E O TC B B AS X Na s daqC M O TC P K AIM TS X V O TC NO G rand Total 7,277. 3 1,858. 9 1,801. 8 1,513. 0 526. 8 463. 9 263. 0 188. 8 138. 7 135. 8 134. 1 100. 3 71. 0 50. 5 49. 5 38. 7 30. 6 26. 1 18. 4 9. 6 7. 9 7. 8 4. 8 4. 4 0. 1 581.4 U S D LT M T otal R ev ($m) OM N a sda qG S S E HK CM NYS E R TS BSE OS E GT S M K OS E N a sda qG M K LS E TSE TSX SWX AM E X XT RA OT CP K AS X T S XV HLS E OT CB B OT CN O AI M N a sda qC M G rand T otal 1, 704. 0 484. 1 472. 9 231. 6 218. 8 151. 4 117. 0 105. 2 91. 0 86. 5 81. 0 78. 4 78. 3 41. 8 40. 0 29. 9 27. 7 18. 9 7. 7 7. 0 5. 8 2. 1 2. 1 0. 3 0. 1 152.1 U S D LT M Total E B IT DA ($m) N a sdaqG S S E HK OM TSE K OS E GT S M CM R TS OS E K LS E XTR A AM E X AS X SWX NYS E OT CN O AI M TSX N a sdaqG M T S XV N a sdaqC M HLS E BSE OT CP K OT CB B G r and T otal 1,692. 2 662. 6 261. 0 107. 0 79. 7 52. 3 43. 0 19. 8 18. 9 10. 8 10. 3 6. 4 2. 9 0. 8 0. 0 -1. 0 -1. 8 -2. 9 -8. 1 -8. 4 -10. 8 -15. 1 -27. 5 -32. 7 -49. 4 2,810.1 E B IT DA % S EHK AS X GT SM XT R A N asdaqG S TSE CM OS E OM K LS E R TS K OS E SWX N asdaqG M O T CB B TSX BSE AM E X T S XV O T CP K O T CN O N asdaqC M H LS E AI M NYS E G rand T otal 42. 6% 37. 2% 36. 3% 31. 2% 30. 1% 26. 4% 18. 6% 18. 0% 15. 3% 13. 7% 13. 1% 5.4% 1.9% 1.6% -5. 3% -14.8% -23.5% -36.4% -39.0% -41.3% -50.6% #DI V /0! #DI V /0! #DI V /0! #DI V /0! 7.1%
Figure 21. Comparison by Exchange Source. Capital IQ
Page 15
Fin anc in g - Las t Th ree Mon ths (US $ m)
Mo nth A pr -09 Company Name Collective Media G OOM R adio Mar in S oftware The R ubico n P r oject FreeW heel Cellufun Conduc to r Inc . S canS c o ut Batanga Viximo DoubleT wis t IMS hopping S oc ialtext Mixercas t S oundClo ud TubeMogul Tribal No va Tripbas e S oc ialcas t Brandtology S can & Target J odange Fo odis ta A pr -09 T otal May-09 Faceboo k One Net E ntertainment Cyberplex P eer39 OpenX Imeem E veryZing Wo nderHill BlogHer Inc . Fuhu Inc . Azuki S ys tems I Lo ve R ewards TimeBridge OLX Doc uS ign Medialets Res o nate Netwo rks Mo 'Minis VoxP op Lo op'd Network May-09 T otal J un-09 S ugar Inc. USA USA C hina C anada USA UK USA USA 8. 8 8. 3 7.0 7. 0 6. 3 6.0 5. 9 5. 0 5. 0 5.0 4. 0 2.0 1.5 1. 5 0. 8 13.6 10.0 22.9 23.3 18.7 40.8 16.0 12.0 12. 0 8. 0 6. 0 5.3 4. 1 3.5 2. 9 2. 4 2.3 2.0 1. 5 1.0 0. 5 11.4 15.3 5.5 8.0 34.0 5.3 205.0 10.0 10. 0 12. 9 10.5 10.0 C ountry USA F ra nce USA USA USA USA USA USA USA USA USA USA USA USA G ermany USA C anada USA USA S inga pore F ra nce USA USA 15.6 8.0 1. 3 1. 2 0.6 45.3 52.5 16.1 12.0 200.0 2.0 1.4 1.4 3.3 3.0 2. 5 4. 1 4.7 4.5 5. 0 5. 0 8. 1 7.5 10.0 10.0 8. 0 16. 0 13. 0 5. 0 12.0 Angel/S eed Debt financ ing P IP E S eries A S eries B 20.0 S er ies C S eries D G rand Total 20. 0 16. 0 13. 0 13. 0 12. 0 10. 0 10. 0 8. 1 7. 5 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. 6 149.5 200. 0 20. 0 12. 9 10. 5 10. 0 8. 8 8. 3 7. 0 7. 0 6. 3 6. 0 5. 9 5. 0 5. 0 5. 0 4. 0 2. 0 1. 5 1. 5 0. 8 334.1 16. 0 12. 0 12. 0 8. 0 6. 0 5. 3 4. 1 3. 5 2. 9 2. 4 2. 3 2. 0 1. 5 1. 0 0. 5 79.5
USA
USA USA USA C anada USA USA USA USA USA I srael USA USA
W imba
G rab Netwo rks beeT V
USA
USA USA
Zoos k G ather
G ameG round RingRevenue
USA USA
I srael USA
YuMe Inigra l AdE x Media
my6s ens e Cliqs et
USA USA USA
I srael USA
Pic aboo
Mas hLo gic J un-09 T otal
USA
USA
Figure 22. Financing, Last Three Months Source. Company reports
Page 16
C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
A dE x media
HQ
U nited S ta tes
W ebs ite
www.adex.com
Des criptio n
Adex Media , I nc . operates a s an integrated I nternet ma rk eting, a dvertis ing, a nd lea d genera tion publisher, a s well as developer, ma rk eter, a nd dis tributor of con sumer produc ts in the U nited S tates . I ts mark eting platform prov ides v a rious services , including sea rc h mark eting, displa y mark eting, lea d genera tion, a nd a ffilia te ma rketing; and offers pa y-per-performa nce pricing/cost-per-action/pay-per-a ction based services . T he company also provides O vernight G enius , a computer learning cours e for MS W indows , MS O ffic e, eB a y , and others; R is ing S ta r L earning, a ma th a nd la nguage arts educa tional produc t for c hildren; D ebt S nap, a n audio s eminar to help consumers ma na ge their beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule, beha viors a nd even their mood. I t uses a rev olutionary , proprietary, contex tual matching algorithm inc orpora ti ng “huma n unders tanding” to offer y our viewer a n entertaining, person alized “cha nnel” a cces sible from a ll three sc reens - T V , mobile and P C . beeTV s ervices I P TV , ca ble, satellite, mo bile, internet a nd D TT platforms . It is a complement to your exis ting na viga tion sy stem. It is a find engine rather tha n a s ea rch engine. C liqs et, Inc . provides an online pla tform tha t allows developers a nd us ers to crea te, orga niz e, retrieve, s hare, and manipulate s ocia l informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookmarks , a nd locations . The compa ny ’s pla tform cons is ts of AP Is for managing va rious aspec ts of users ’ soc ia l identity giving the a bility to build s oc ial applic ations without recrea ting the wheel. C liqs et, I nc. wa s founded in 2008 and is bas ed i n J a ck s onville, F lorida. G a meG round dev elops an onl ine s ocia l network for gamers . The compa ny is bas ed in I srael. G a ther, Inc . opera tes a s ocia l network ing s ite for adults. I t ena bles us ers to s hare thoughts, c onv ers a tions, v ideo, information, pictures , ideas, a nd a udio. G a ther, I nc. wa s formerly k nown as S uffic iently Adva nced T ec hnology Corporation a nd cha nged its na me to G ather, I nc. in J uly 2005. The compa ny wa s incorpora ted in 2004 and is hea d quartered in B os ton, Ma s sac hus etts. G a ther, I nc. opera tes as a s ubsidia ry of American P ublic M edia G roup. G ra b N etworks , I nc. di stributes a nd monetiz es vi deo content on the I nternet. G ra b Network s, I nc. was formerly known as Any S trea m, I nc . a nd c ha nged its name to G rab N etworks , I nc. in S eptember 2008. T he c ompany was founded i n 2000 a nd is headqua rtered in D ulles, V irginia .Inc. engages in the development of s oc ial network ing website for students , their peers a nd their ins tru ctors. I nigra l, I nc. is based in Inigra l, P alo A lto, C alifornia . Ma s hLogic I nc. enga ges in developing cus tomized web brows ers. The company was founded in 2007 a nd is ba sed in Menlo P ark, C alifornia. my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e informa tion on mobile and desk top. The compa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el. P ic aboo C orporation provides onli ne photo book s a nd cards . I t offers a software progra m tha t turns photos into photo book s. The company was founded in 2002 a nd is ba sed in M enlo P a rk , C a lifornia . R ing R ev enue, I nc. prov ides online call trac k ing s ervices . The company was incorporated in 2009 a nd is ba sed in S a n ta B arba ra , C a lifornia . S uga r, I nc. operates a s an online media compa ny . It operates lifes ty le a nd enterta inment W ebsites that cov er celebrity, fa s hion, shopping, bea uty , entertainment, food, a nd hea lth topics . T he c ompany also offers a shopping engine for fa s hion and beauty categories . S ugar, I nc. , formerly k nown as S uga r P ublishing, I nc ., wa s founde d in 2006 and is hea dqua rtered in S a n Francisc o, C alifornia. W imba , Inc . provides learning s oftwa re a pplic a tions a nd s ervices to the educ a tion indus try in the Un ited S ta tes and the United K ingdom. The company offers D iploma , a qu estion authoring an d management tool tha t allows ins truc tors to c reate or edit ques tions; C la s sroom 5. 2, a clas s room environment with va rious features that include audio, vid eo, a pplica tion sharing, and c ontent dis pla y; and C ollabora tion S uite tha t a llows ins titutions to bridge the gap between technology a nd peda gogy by s upplementing cours e management s ys tems . It a ls o provides C reate, a content authori ng tool, which c onverts M icros oft W ord doc uments into content for online cours es; P ronto, an a ca demic mes saging pla tform, whic h is designed for educ ators to a dva nc e and promote lea rning; V oic e, a W eb-ba s ed voic e s olution th at fa cilita tes and promotes voc al in struction, colla bora tion, c oa c hing, a nd a s s ess ment; and C M S Integra tion. I t s erves univ ersities , community colleges , s chool districts , a nd educ ation ins titutions. T he company was formerly known as H orizon W imba , Inc . a nd changed its na me to W imba , I nc. in April 2007. W imba , Inc . wa s founded in 1998 and is ba sed in N ew Y ork , New Y ork with additiona l offic es in C a mbridge, U nited K ingdom; a nd A tlanta , G eorgia. Y uMe, I nc . operates a s a v ideo a dvertis ing network on W eb. I t offers a d mana gement sy stem tha t enables a dvertis ers a nd publishers to identify, cla s sify , a nd tra ck content throu gh digita l media pla tforms, s uch a s W eb, downloads, mobile, a n d I P TV . The compa ny a ls o enables publishers to orga nize video on their site i nto content cha nnels, s uch a s automotiv e, fi na ncial serv ices , lifesty le, news , music , s ports , enterta inment, a nd family friendly. In a ddition, it offers rea l-time ta rgeting, mea s urement, and optimiza tion; c ontent distribution and vira l a dvertising opportunities ; a suite of intera ctiv e a d plac ements ; a nd v ideo monetiza tion s ervices . F urther, the c ompany provides a beha viora l ta rgeting sy stem tha t enables advertis ers to target their mess ages to v iewers on a na tional sc a le ba s ed on v ideo v iewing interes ts and purchas e intent. Y uMe, Inc . wa s founded in 2004 a nd is hea dquartered in R edwood C ity, C alifornia . Zoos k , Inc. opera tes a s an online s ocia l da ting network . The c ompa ny was founded in 2007 a nd is ba s ed in S an F ra nc isco, C a lifornia .
beeTV
U nited S ta tes
www.bee.tv
C liqs et
U nited S ta tes
www.cliqset.com
G am eG roun d G ath er Inc .
I s ra el U nited S ta tes
www.gameground.com www.gather.com
G rab N etworks Inigral Mas h Logic m y6s ens e P ic aboo R ing R evenu e S ugar In c.
U nited S ta tes U nited S ta tes U nited S ta tes I s ra el U nited S ta tes U nited S ta tes U nited S ta tes
www.grabnetworks.com www.inigral.com www.mashlogic.com www.my6sense.com www.picaboo.com www.ringrevenue.com www.sugarinc.com
W imba Inc
U nited S ta tes
www.wimba.com
Yu Me
U nited S ta tes
www.yumenetworks.com
Z o os k
U nited S ta tes
www.zoosk.com
Figure 23. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 17
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