Real Estate Technology Sector Summary 2018 Year-End Review · Excludes AirBnB, Houzz, Oyo Rooms and WeWork financing rounds. Represents data across CRE / Investment, Residential Real

1

Real Estate Technology Sector Summary

2018 Year-End Review

22

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYExecutive Summary

• 2018 was another record year for M&A and financing volume in RE Tech → expanded category participation from a broader set of strategics and financials as the importance of tech adoption increases throughout the real estate acquisition / funding / management / optimization cycle

− Three companies, Opendoor, Compass and Katerra, raised nearly 37% of the total funding in the category in 2018 → all three companies are SoftBank backed and their funding is representative of a broader market trend of increasing funding round sizes to category leaders

– Overall venture / growth equity funding in the sector up 84% y/y in 2018

− Major public company RE names were very active with key M&A deals in 2018 → Zillow / Move.com / Fidelity National Financial / LendingTree and many others announced strategic acquisitions in 2018

– Overall M&A activity in the category up 82% y/y in 2018 (based on deal count)

– Multiple active private equity firms who see vertical roll-up opportunities in segments of the RE Tech market (e.g. EDR, MRI, ATTOM Data)

• GCA expects that the RE Tech market will remain highly active in 2019 for both capital raise and M&A transactions:

− Interest rate environment and its impact on RE transaction volume remains a core focus for buyers / investors

▪ Increasingly, mortgage tech & underwriting companies looking to connect closer to the RE transaction in order to capture purchase dollar volume

− 2018 was the year of the “iBuyer” as multiple companies entered into or significantly expanded their iBuyer programs (including Zillow) → expect significant iBuyer expansion to continue in 2019 as data proliferation enables consumers to better compare sale / timing options

− Commercial / multi-family tech companies continue to be one of the most active sub-sectors of the market → MRI and Accruent executing significant market “roll-up” strategies while CRE Tech is increasingly attracting capital inflows from the strategic / financial universe

− Several large construction tech deals in 2018 (e.g. PlanGrid and Viewpoint) signals potential for construction tech / data as another large and important market category in RE Tech

Select 2018 Active Investors Select 2018 Active Strategic Acquirers

33

GCA REAL ESTATE TECHNOLOGY TEAM

Key Sub-Sector Coverage Verticals

Residential RE Software

Commercial RE Software

Mortgage / Lending

Title / Insurance

Home Services

Facilities Management

Construction Tech

IWMS

Chris GoughManaging Director

Head of Real Estate TechnologyPhone: (415) [email protected]

Kegan GreeneDirector

Financial TechnologyPhone: (415) 318-3686

[email protected]

Acquired by

We advised the seller

Acquired by


Acquired by


Acquired by


Acquired by


Acquired by


Majority Interest Acquired by


Acquired by


Acquired by


Acquired by


Acquired by

We advised the buyer

Investment from


Minority Investment From


MBO backed by


Acquired by

We advised the sellerWe advised the seller

Acquired by

The Leading Advisor in the Property Tech Ecosystem

44

$2,632

$4,833

$230

$605

$475

$763

$1,138

$1,694

$2,862

$5,438

2013 2014 2015 2016 2017 2018

Source: Pitchbook and press releases.Excludes AirBnB, Houzz, Oyo Rooms and WeWork financing rounds.Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.

(1) Represents estimated valuation..

ANOTHER RECORD YEAR – REFLECTED IN 2018 DEAL FLOW

Date CompanySelected

Investor(s)Amt.

Invested Funding to Date

Latest Reported Valuation

9/27 $400$1,045 Equity / $500 Debt

$2,470

9/27 $400 $1,113 $4,400

6/13 $325$645 Equity / $500 Debt

$2,470

1/24 $865 $1,110 $3,000

Real Estate Technology Venture Investment (2013 - 2018)

($MM) 2018: Record

Investment in

RE Tech Sector Q4$943

Q3$1,306

Q2$984

Q1$1,600

$4,833• 289 deals in 2018, the most active year of financing to date, totaling $5.4Bn, an increase of 84% y/y in equity invested

($MM)

(1)

Avg. Deal Value:

$4.4$3.0$2.3 $7.5 $11.8 $16.7

84%

Equity Raise Value

Disclosed iBuyer Debt

Increase in equity raised y/y

55

10

6

13

16

32

39

2013 2014 2015 2016 2017 2018

Date CompanySelected

Investor(s) Amt. Invested Funding to Date

Latest Reported Valuation

1/24 $865 $1,110 $3,000

9/27 $400$1,045 Equity / $500 Debt

$2,470

9/27 $400 $1,113 $4,400

6/13 $325$645 Equity / $500 Debt

$2,470

3/28 $177 $229Mkt Cap:

$644

11/14 $165 $326 $1,650

7/23 $95 $175 $745

12/13 $75 $307 $3,000

11/14 $70 $110 $385

10/18 $64 $213 NA

Source: CapitalIQ as of 1/24/19, Pitchbook and press releases.Excludes AirBnB, Houzz, Oyo Rooms and WeWork financing rounds. Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.

(1) Represents estimated valuation.(2) 20% of the proceeds went towards a secondary purchase of shares from existing shareholders.(3) Market cap as of 1/24/19.

ANOTHER RECORD YEAR – REFLECTED IN 2018 DEAL FLOW

Top 10 Rounds of 2018

(1)

Growth Capital Raises Greater than $20MM

($MM)

(3)(2)

• Increase in round sizes signals emergence of scale leaders and reflects TAM for sub-categories of market

66

Residential Real Estate Technology

Company FoundedAmt. Raised/

Invested

2012 $1,113

2014$1,045 Equity

/ $500 Debt

2009 $213

2008 $104

2011 $104

2015$88 Equity

/ $130 Debt

2008 $85

2012 $85

2015$80 Equity

/ $330 Debt

2015 $75

Source: Capital IQ as of 1/24/19 and Pitchbook.(1) Excludes Airbnb and Houzz financing rounds.(2) Represents equity invested only.(3) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised

$88mm and $22mm, respectively.

(2)

(3)

Capital raise completed in 2018

PRIVATE COMPANY FUNDING LEADERS

($MM) ($MM) ($MM)

(1) CRE / Facilities / Construction Technology Residential Real Estate Technology


Invested

2015 $1,110

2002 $307

1995 $259

2012 $326

2012 $175

2014 $133

2010 $131

2011 $110

1999 $100

2013 $97

/

Mortgage / Closing / Insurance Technology


Invested

2015 $180

2012 $184

2013 $166

2015 $110

2010 $85

2015 $78

1998 $55

2014 $55

2005 $42

2015 $40

77

37

25

44 45

57

104

2013 2014 2015 2016 2017 2018

Source: Pitchbook, 451 Research and press releases.(1) Includes potential ~$70MM earnout.(2) Includes potential $14MM earnout.

HEALTHY M&A MARKET

Buyer Target Announced DateEnterprise

Value

11/20 $875

10/22 $122

10/12 $57

10/4 $370

8/30 $263

/ 8/29 $210

8/6 NA

8/2 $117

7/31 $2,000

6/12 $290

5/11 $3,208

4/23 $1,200

4/10 $52

3/18 $1,138

3/13 $205

2/2 $485

Select 2018 M&A TransactionsAnnual M&A Activity

• Significant increase in 2018 M&A activity

− 76% strategic acquirers

− 24% financial acquirers

(1)

(2)

($MM)

82%Increase in deal count

88

(60%)

(40%)

(20%)

0%

20%

40%

60%

80%

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

27%

(0%)

(12%)

(0%)

(12%)

(2%)

(40%)

7%

(5%)

Source: Capital IQ as of 1/24/19.

PUBLIC COMPANY VALUATION

RE Media / Portals

Property MgmtSoftware

RE Sharing Economy / Travel

Residential Brokerage

LTM Share Price Performance

27%

Property Management

Software

APPF: 49%AGYS: 15%RP: 19%

Credit / Mortgage Marketing

(12%)


Public Real Estate Technology Ecosystem

LTM Share Price Performance

(40%)


0%

RE Data / RE Software

Traditional Mortgage / Title

(12%)


(2%)


7%

Broader Data

Broader Data

0%


Commercial Brokerage

(5%)


RE Media / Portals

99

8.7x

5.6x5.1x

4.1x3.6x 3.6x

1.8x0.8x 0.8x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

1 1 1 1 1 1 1

32.1x

18.5x14.8x 14.6x 13.5x

11.6x9.9x 8.5x 7.5x

0.0x

6.0x

12.0x

18.0x

24.0x

30.0x

36.0x

1 1 1 1 1 1 1

PUBLIC COMPANY VALUATION

2019E Revenue / 2019E EBITDA Multiple


Traditional Mortgage

/ Title

RE Sharing Economy /

Travel



Property Mgmt

Software

RE Media / Portals

Enterprise Value / 2019E Revenue Enterprise Value / 2019E EBITDA

Public Real Estate Technology Ecosystem

Broader Data

Source: Capital IQ as of 1/24/19.Multiples represent median value of sector group.



Traditional Mortgage

/ Title

RE Sharing Economy /

Travel

RE Data / RE

Software


Property Mgmt

Software

RE Media / Portals

Broader Data


5.1x / 32.1x

Property Management

Software

3.6x / 14.6x


1.8x / 9.9x


8.7x / 18.5x

RE Media / Portals

0.8x / 7.5x


4.1x / 13.5x


5.6x / 14.8x

Broader Data

3.6x / 11.6x


0.8x / 8.5x


1010

SOFTBANK VISION FUND – A GROWING PRESENCE IN REAL ESTATE

Source: Pitchbook and press releases.(1) Includes $3Bn in outstanding warrants. Represents only known debt.(2) Represent non-Vision Fund investments.(3) Represents estimated valuation.

− 9/27/18: $400MM Series F

− 12/7/17:$550MM Series E

− 9/27/18:$400MM Series E

− 4/25/18:$33MM Series C

− 2/6/18:$16MM Series B1

− 12/18/14:$13MM Series B

− 2/24/14:$4MM Series A

− 9/25/18: $1Bn Late-Stage Round

− 9/13/17:$260MM Series D

− 8/16/16: $90MM Early-Stage Round

− 8/3/15:$100MM Series B

− 1/24/18: $865MM Series D

− 12/19/17:$120MM Series C

− 1/8/19: $1Bn Convertible Debt Funding + $3Bn in Warrants + $1Bn Secondary Transaction

− 8/9/18: $1Bn Convertible Debt Funding

− 8/24/17:$4.4Bn Series G

Funding to Date

$1,113MM

Latest Valuation

$4,400MM

SoftBank Rounds:

Funding to Date

$1,045MM Equity / $500 Debt

Latest Valuation

$2,420

SoftBank Rounds:

Funding to Date

$1,480MM

Latest Valuation

$5,000MM

SoftBank Rounds:

Funding to Date

$78MM

Latest Valuation

$153MM

SoftBank Rounds:

Funding to Date

$1,110MM

Latest Valuation

$3,000MM

SoftBank Rounds:

Funding to Date

$180MM

Latest Valuation

$570MM

SoftBank Rounds:

Funding to Date

$7,390 Equity / $1,000 Debt

Latest Valuation

$47,000

SoftBank Rounds:

− 3/21/17:$500MM Series G

− 9/30/15:$1Bn Series E

Funding to Date

$1,920

Latest Valuation

$4,400

SoftBank Rounds:

Residential RE

SoftwareResidential RE

SoftwareTech-Enabled

Hospitality

Commercial RE

SoftwareConstruction

TechTitle / Insurance

Facilities

ManagementMortgage /

Lending

SoftBank has been highly active making

large investments in the Real Estate,

Mortgage and Insurance Tech markets,

signaling the strategic importance and

massive total market opportunity in the

Property / RE Tech category

(2)(2) (2)

(3)

(1)

11

2018 RE TECH DEAL CASE STUDIES

1212

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Sale of ATTOM Data Solutions to Lovell Minnick Partners

GCA acted as exclusive financial advisor to ATTOM, a leading provider of national real estate data solutions, on its sale to Lovell Minnick Partners.

TRANSACTION DETAILS

Closed

January 2019

SECTORS

Real Estate / Mortgage

Technology

Property / Insurance

Technology

Data Licensing

DEAL TYPE

M&A

Transaction Summary

▪ On January 8, 2019, Lovell Minnick Partners announced that it had completed the acquisition of ATTOM Data Solutions (“ATTOM” or the “Company”)

− Financial terms of the transaction were not

disclosed

▪ Headquartered in Irvine, California, ATTOM is a leading provider of comprehensive data solutions to the real estate, mortgage, insurance, marketing and adjacent markets

▪ Lovell Minnick Partners is a private equity firm with expertise in investing in the financial technology and services industry. Since its inception in 1999, Lovell Minnick Partners has raised $2.7 billion in committed capital and has completed investments in over 45 companies

▪ GCA acted as exclusive financial advisor to ATTOM in connection with the transaction

Strategic Rationale

▪ ATTOM is a leading, scale platform investment in the real estate data solutions market

− Company’s proprietary data solutions include

property tax, deed, mortgage, foreclosure,

environmental risk, natural hazard and

neighborhood data for 150+ million U.S. residential

and commercial properties, covering 99% of the

nation’s population

− Company serves 225+ data customers with

multiyear contracts

− ATTOM management has generated strong organic

growth and successfully pursued accretive strategic

opportunities, including its acquisition of

neighborhood data provider Onboard Informatics in

early 2018

▪ Lovell Minnick will continue to support management in executing its strategic plan to build the leading technology platform in the real estate data industry

1313

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Sale of QuoteWizard.com LLC to LendingTree, Inc. (NasdaqGS: TREE)

GCA acted as exclusive financial advisor to QuoteWizard, provider of a customer acquisition technology platform, on its sale to LendingTree.

TRANSACTION DETAILS

Closed

October 2018

SECTORS

Insurance Technology

Digital Media

DEAL TYPE

M&A

Transaction Summary

▪ On October 4, 2018, QuoteWizard.com LLC (“QuoteWizard”) announced it had entered into a definitive agreement to be acquired by LendingTree, Inc. (NasdaqGS:TREE) (“LendingTree”) for up to $370MM

− $300MM in up-front consideration at close, payable

in cash

− ~$70MM in potential earn-out consideration based

on achievement of certain growth milestones in the

first three years following transaction close

▪ The QuoteWizard management team, led by CEO Scott Peyree, will continue as QuoteWizard leadership following closing

▪ QuoteWizard generated $75.6MM in revenue and $12.8MM in EBITDA for the six months ending June 30, 2018

▪ GCA acted as exclusive financial advisor to QuoteWizard in connection with the transaction

Strategic Rationale

▪ QuoteWizard will immediately establish LendingTree as a leader in the high growth online insurance market

− Since its founding in 2006, QuoteWizard has helped

over 40 million consumers compare and find

insurance policies online

▪ QuoteWizard’s customer acquisition technology platform and network of over 30 top tier carriers and 10,000 insurance agents across the country create a scale and network advantage for high-quality insurance lead distribution

− Will significantly expand LendingTree’s relationships

with insurance carriers and agents ➔ enable cross

selling of mortgage / home related products that

are core to LendingTree’s market

▪ Numerous product and traffic synergies as part of the MyLendingTree platform and overall LendingTree consumer experience

1414

0.0

1.0MM

2.0MM

3.0MM

4.0MM

5.0MM

$11.00

$13.00

$15.00

$17.00

$19.00

$21.00

$23.00

$25.00

Sep-2017 Dec-2017 Mar-2018 Jun-2018

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARY

Source: Company website and filings, Capital IQ as of 1/24/19, Pitchbook, press releases and 451 Research. Adjusted EBITDA and NTM projections per Lake Street Capital Markets Equity Research report, June 1, 2018.(1) Unaffected stock price date prior to announcement of strategic alternatives review process: March 7, 2018.

Case Study: Moody’s Corporation (NYSE:MCO) Acquires Reis, Inc. (NASDAQ:REIS)

Stock Price Performance

− On August 30, 2018, Moody’s Corporation announced an agreement to acquire Reis, Inc. for $23.00 in cash at an implied equity value of $278 million and an implied enterprise value of $263 million

− This transaction follows Reis’ announcement of a strategic alternatives review on March 8, 2018

− Reis will be merged with Moody’s Analytics following the acquisition

− The transaction closed on October 15, 2018

Acquired

Closed

Transaction Overview

Financial Detail Reis, Inc. Overview

Properties in Database

18

million

Metropolitan Markets Covered

275

Submarkets Covered

7,700

Property Sectors Analyzed

932%Premium to 1-day

Prior to Announcement

16%Premium to

Unaffected Price

16%Premium to 1-year

VWAP

$277.9

Million

Total Equity Value

$262.9

Million

Implied Enterprise Value

(1)

Headquarters: New York, New York

Founded: 1980

Employees: ~270

Description: Provides commercial real estate market information andanalytical tools to real estate professionals to help informvaluation and market analysis using an industry-leadingproprietary database.

$23.00 / Share

Aug 30: Acquisition Announced

Metric LTM NTM

EV / Revenue 5.1x 4.6x

EV / Adj. EBITDA 17.0x 14.9x

$278MM

1515

Strategic Rationale

− Acquisition will complement Move’s consumer referral capabilities, enabling Move to offer Opcity’s active consumer cultivation, qualification and warm consumer transfer service as a premium alternative to its existing agent advertising service

− Enhanced consumer cultivation / qualification will also allow Move to be more competitive with Zillow’s Premier Agent offering

− Broadens offering to deliver additional engagement options to agents ➔enhances Move.com monetization of warm transferred consumers

− Helps enhance Move’s “end-to-end” consumer journey from consumer search, warm transfer, CRM and transaction management tools


Source: Company website and filings, Capital IQ , Pitchbook, press releases and 451 Research.

− On August 29, 2018, Move, Inc., reached an agreement to acquire Opcity for $210 million in cash

− The transaction represents a significant investment in digital real estate services, News Corp’s fastest-growing segment

− “This acquisition will help us bring buyers, sellers and agents together with as much simplicity, efficiency and choice as possible.” – Ryan O’Hara CEO of Move, Inc

Acquired

Closed

Transaction Overview

Opcity Services

Referral GenerationOpcity representatives call potential leads and continuously follow up with inquiries to identify and prepare clients for agents

ScreeningOpcity identify the leads most likely to convert into a sale and help home buyers specify their search criteria

Agent MatchingProprietary matching algorithm based on 17 years of transaction data helps match leads to agents most likely to close the deal

Live Phone TransfersOpcity representatives personally introduce home buyers to their matched agent in a live phone transfer

Opcity Inc. Overview

Funding ($MM)

Round Date Raised to-date Post-Money Valuation

Series A May 2017 $29.8 $98.8

Seed Aug 2016 $1.0 $6.0

$210MM

Investors

Headquarters: Austin, Texas

Founded: 2015

Employees: ~360

Description: Operates a SaaS CRM platform and lead referral servicethat connects real estate buyers with agents and lenders.The company has over 40,000 agents in its client baseacross approximately 5,000 brokerages.

Case Study: News Corp (Nasdaq:NWSA) Acquires Opcity Inc.

1616


Source: Company Website and filings, Capital IQ as of 1/24/19, Pitchbook, press releases and 451 Research.LTM as of 9/30/17 per ZPG filings.GBP/USD exchange rate of 1.35 as of 5/11/2018.

Case Study: Silver Lake Acquires ZPG plc

0

5.0MM

10.0MM

15.0MM

20.0MM

25.0MM

£3.00

£3.50

£4.00

£4.50

£5.00

£5.50

− On May 11, 2018, Silver Lake reached a definitive agreement to acquire ZPG Plc for an implied enterprise value of $3.2Bn, ZPG shareholders will receive $6.63 per share at closing

− ZPG’s largest shareholder is The Daily Mail and General Trust plc (LSE: DMGT) (29.9%)

− The transaction closed on July 11, 2018

Headquarters: London, England

Founded: 2007

Employees: ~900

Description: Provides a searchable real estate classified ads website ofproperties for sale or rent for consumers in the UK throughwww.zoopla.com. Also provides online home valuereference content and related rental mobile apps.

Acquired

Closed

Transaction Overview ZPG Overview

Stock Price Performance

Ann.Date

Enterprise Value

($MM)

EV / LTM Revenue

EV / NTM Revenue

EV / LTM EBITDA

EV / NTM EBITDA

5/11/18 $3,208 9.7x 7.6x 27.8x 19.6x

Premium to 3-Month VWAP

43%

LTM Revenue

$330MM

LTM EBITDA

$115MM

Premium to 1-Month VWAP

38%

Transaction Detail

£4.90 / Share

31%

Premium to 1

Day Prior

1717

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Silver Lake Acquires ZPG plc (cont’d)

Comparison

ZPG Brand Portfolio

Property

Marketing DataSoftware Energy FinanceCommunications

Website Visits Per Month

50MM+

Website Visits in TTM as of

3/31/18

671MM

% of Visits by Mobile Devices

72%

Business Partners

25,000+

“Multi-Brand, Multi-Channel Approach”

Comparison Leads Generated

34MM

Property Partner Leads Generated

56MM

Source: Company website and filings.

(1)

1818

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Silver Lake Acquires ZPG plc (cont’d)

Source: Company presentations. from Property Software Group, TechnicWeb, Hometrack, ExpertAgent, Ravensworth and Money.Unaudited pro forma financials to include full twelve month’s trading.

FY16 FY17 YoY %

Revenue £124.3 £135.8 9%

Adj. EBITDA £52.5 £60.9 16%

Margin 42% 45%

Marketing

32%

8%

8%

14%

16%

22%

Software

Data

Finance

Communications

Energy

FY16 FY17 YoY %

£85.6 £91.6 7%

(Revenue, £MM)

FY16 FY17 YoY %

£20.8 £23.2 12%

FY16 FY17 YoY %

£17.9 £21.0 17%

Property(£MM)

(Revenue, £MM)

(Revenue, £MM)

Comparison

FY16 FY17 YoY %

Revenue £135.5 £146.7 8%

Adj. EBITDA £46.5 £48.3 4%

Margin 34% 33%

(£MM)

FY16 FY17 YoY %

£54.9 £62.6 14%

(Revenue, £MM)

FY16 FY17 YoY %

£44.1 £44.0 0%

(Revenue, £MM)

FY16 FY17 YoY %

£36.5 £40.1 10%

(Revenue, £MM)

1919

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: DocuSign (NasdaqGS: DOCU) IPO

Source: Company website and filings, Capital IQ as of 1/24/19, Pitchbook and press releases.

Company Overview

− Founded: 2003

− HQ: San Francisco, CA

− Business Description: Provides cloud based

transaction products and services, including

an e-signature solution that enables SMB to

enterprise businesses to digitally prepare,

execute, and act on agreements

− Initial Filing Date: 3/28/2018

− Launch Date: 4/26/18

− Gross Offering Amount: $629MM

− Stock Price at IPO: $29.00

− 1/24/19 Stock Price: $46.71

− Current stock price represents 48% increase

from IPO

Financial Overview

Offering Overview Business Highlights

− 450K+ Customers

− 300+ Fortune 500 clients

− 115% retention in enterprise & commercial

account customer segment

− 5.3X ACV increase in the lifetime of the top

100 customers

− ~60% 2017 e-signature market share

Financing & Valuation History

DateSize

($MM)Valuation

(Post)Key Investors

05/12/15 $303 $3,070

03/04/14 115 1,610

07/13/12 57 557

12/08/10 30 196

04/04/06 27 57

05/19/04 5 12

Stock Price Since IPO

0.0mm

5.0mm

10.0mm

15.0mm

20.0mm

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$46.71

$MM (except per share data) 1/24/2019

Share Price: $46.71

Fully Diluted Shares Outstanding: 165.3

Equity Value $7,718.9

Less: Cash and Equivalents $1,094.1

Plus: Debt $432.6

Net Debt ($661.6)

Enterprise Value $7,057.3

Metric CY2017A CY2018E CY2019E

Revenue $381.5 $694.4 $856.2

% Growth 52.3% 82.0% 23.3%

EV / Revenue 18.5x 10.2x 8.2x

Adjusted EBITDA ($51.9) $40.1 $80.8

% Margin NM 5.8% 9.4%

EV / EBITDA NM NM NM

2020

Founded

/ Entered

Funding

($MM)

Current and

Planned Markets

2014$1,050 Equity

/ $500 Debt19

2015$80 Equity

/ $330 Debt10

2015$38 Equity /

$394 Debt14

2017 $30 3

2017Mkt Cap:

$6.6Bn8

2017Mkt Cap:

$1.5Bn4

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: Zillow (NasdaqGS: ZG) Continues Roll Out Of Its Offers Program

Source: Press releases, public filings, Cowen Research, Macquarie Capital, Pitchbook and company websites.(1) Funding as of 1/24/19.(2) Market cap as of 1/24/19.

(3) Assumes a 90 day or less holding period when fully operational.(4) Cowen Research, 4/26/2018.

− On April 12, 2018 Zillow (NasdaqGS: ZG) announced plans to expand its“Offers” (iBuyer) program, following its launch in early 2017

− Offers marketplace empowers the realtor community by buying and selling homes on the open market through Zillow commissioned Premier Agents

− Zillow’s iBuyer program is now active in Atlanta, Charlotte, Denver, Houston, Las Vegas, Phoenix, Raleigh and Riverside and plans to grow the program to 50 markets by 2020.

− Zillow believes the iBuyer program represents a $1.8Tn TAM

− Zillow plans to have 300 - 1,000 homes in inventory by the end of 2018 and assumes a 90 holding period when fully operational

− Purchasing homes presents Zillow with an opportunity to enter into adjacent markets such as mortgage / title

Offers Program

Offers Model (4)

− Zillow will focus on single family homes priced between $200k - $300k

− Zillow will commit ~20% of the value of the home in equity, with the remaining balance held as debt

− Zillow will work with lenders to create a funding vehicle to finance these properties

Offers Purchasing and Financing

Selected iBuyer Landscape as of Sept. 2018

Revenue (Selling price of homes)

Less: Purchase price of homes

Less: Costs to purchase homes (commissions, escrow, title)

Less: Home improvement costs (including direct labor)

Gross Margin

Less: Holding costs (insurance, taxes, HOA fees)

Less: Costs to sell homes (closing costs, commissions, escrow, title)

Less: Corporate overhead (indirect labor, marketing)

EBITDA

“Assuming an average transaction value of ~$260k Zillow can expect a net

operating profit of ~$7k (~3% margin)” (5)

(2)

(1)

(2)

2121

0.0mm

0.2mm

0.4mm

0.6mm

0.8mm

1.0mm

1.2mm

1.4mm

1.6mm

1.8mm

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: eXp World Holdings (NasdaqGM: EXPI) Joins the NASDAQ

Source: Company website and filings, CapitalIQ as of 1/24/19 and Pitchbook.

1-Year Stock Price Performance

(1)

eXp Realty Financials Snapshot

eXp World Holdings OverviewListing Overview

− On April 2, 2018, eXp World Holdings announced it had applied to list its shares on the NASDAQ

− Shares began trading on the NASDAQ the week of May 21, 2018

− eXp Holdings founder, Chairman and CEO, Glenn Sanford, noted “Receiving approval to list on the NASDAQ brings us one step closer to enhancing the value we deliver to our agents and shareholders”

Joins the

May 2018

Founded: 2008

Headquarters: Bellingham, Washington

Employees: 184 (full-time, non-brokers)

Description: eXp World Holdings, Inc. provides cloud-based real estatebrokerage services for residential real estate market in theUnited states and Canada. The company facilitates buyersto search real-time property listings and sellers to list theirproperties through its Website and provides buyers andsellers access to a network of professional, consumer-centric agents, and brokers.

$10.21

($MM, Except per share data)

CY2016A CY2017A CY2018E CY2019E CY2020E

Revenues $54 $156 $495 $847 $1,133

% Growth 138.5% 188.9% 217.3% 71.1% 33.8%

Gross Margin % 13.3% 11.0% 9.0% 9.0% 9.0%

Adj. EBITDA ($7) ($22) $6 $16 $46

% Margin (13.5%) (13.9%) 1.2% 1.9% 4.1%

Adj. EPS ($0.09) ($0.26) ($0.25) ($0.04) $0.17

Stock Data (01/24/19) Valuation Multiples

Closing Price $10.21 EV / CY17A Revenue 0.7x

52 Week High $19.72 EV / CY18E Revenue 0.5x

52 Week Low $6.60

EV / CY17A EBITDA 36.3x

Shares Outstanding (MM) 59.0 EV / CY18E EBITDA 12.6x

Equity Value $603

Plus: Debt - Price / CY17E EPS NM

Less: Cash and Equivalents 22 Price / CY18E EPS NM

Enterprise Value $581

2222

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Age

nts

2018 REAL ESTATE TECHNOLOGY SECTOR SUMMARYCase Study: eXp World Holdings (NasdaqGM: EXPI) Joins the NASDAQ (cont’d)

Source: Company presentations, filings and press releases.

eXp Provides Value to Both Agents and Brokers

Brokerage Model ComparisonRapid Agent Growth

Unique Model Incentivizes Agents and Brokers

Agents earn more

with lower costs

through high split,

low cap and fees

Agents continue

education through

on demand

training,

transaction /

broker support,

and moreAgents sell more by

utilizing lead gen,

referred networks,

content marketing and

more

Agents build and own a

lasting business

through co-brokering

and co-branding

~13,800 agents as of Q3 2018, TTM growth of

~188%; 15,000+ agents as of November 2018

- Only one employee has

incentive to grow the

business (Branch Manager)

- Limited bandwidth to grow

(typically a broker &

assistant)

- Very capital intensive (brick

& mortar infrastructure)

- Limited to single location

(physical location of office)

Traditional Brokerage

- All agents are highly

incentivized to grow the

business (attractive

commission sharing

program)

- Exponential bandwidth as

agent count grows (+12,200

currently)

- Minimal capital required

- eXp’s agents can conduct

business from any location

eXp Realty

eXp can scale its business quickly by incentivizing & empowering agents

and brokers

Vs.

− The brokerage derives its revenues primarily from a portion of the commission split on non-capped real estate transactions

− Possible areas of expansion include mortgage origination services, title & escrow services and homeowners insurance

− eXp World Holdings plans to launch affiliated services in select areas where the company has reached critical mass

.

Title & Escrow Services

MortgageOrigination

Home-owners

Insurance

Brokerage

~13,800

2323

($MM)

FY2015 FY2016 FY2017 FY2018

Revenue $5.2 $27.2 $60.4 $128.9

Growth % 422% 122% 113%

Gross Profit $3.1 $15.5 $33.5 $72.4

Margin % 59% 57% 55% 56%

EBITDA ($8.3) ($17.4) ($7.5) ($33.1)

EBITDA Margin % (159%) (64%) (12%) (26%)


Source: Company website and filings, Capital IQ as of 1/24/19, Pitchbook and press releases. Exchange rate of 1.31 GBP/USD as of 1/22/2019.(1) Fiscal year ends April 30.

Case Study: Axel Springer’s Strategic Investment in Purplebricks (LON: PURP)

− On March 26, 2018, Axel Springer and Purplebricks entered into an agreement under which Axel Springer has agreed to make a £125MM strategic investment

− Deal includes a £100MM subscription of new shares

− Axel Springer will now own approximately 11.5% of Purplebricks

− The investment will be used to accelerate Purplebricks’ rollout into the United States, support entry into new markets and fund technological innovation and expand the service offering

Headquarters: Solihull, England

Description: Operates an online fixed fee real estate brokeringplatform. The Company's online real estate brokeringplatform offers buying and selling of commercial andresidential properties, enabling clients to avail qualityresidential and commercial properties.

Strategic Investment In

Closed

Transaction Overview Purplebricks Overview

Purplebricks Platform

Accelerated U.S. Rollout – Purplebricks’ business model is

positioned to capitalize on current U.S. market dynamics and

provide consumers with an improved full service alternative. The

Company has expanded into 4 “Designated Marketing Areas” in

California and launched in the New York DMA on April 3rd .

Entering Strategic Markets – Create the infrastructure for rapid

growth and localize a technology platform for each new market

while aggressively pushing advertising and marketing.

Technological Innovation and Expansion – Cement its position in

hybrid / online markets to develop better, more rapid methods of

communication, search functionality and additional advertising and

marketing options for sellers and information customers.

1

2

3

Use of Proceeds – Growth Strategy U.S. Expansion

− Enables showings to be booked and offers to be made instantly without waiting for a broker, driving quicker negotiations and sales processes

− Buyers and sellers communicate securely and directly through the platform

− Platform provides the ability to draw a ‘search zone’ and will notify buyers and sellers when there are new properties that are bought / sold in the area

− Search platform provides users with features and information that allows homes to be filtered by numerous potential criteria

− Purplebricks’ local real estate expert provides a full CMA of the property based on local knowledge and experience

(1)

2424

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18


Source: Company website and filings, Capital IQ as of 1/24/19, Pitchbook and press releases.(1) Stewart shareholders can also elect to receive $50 in cash or 1.285 common shares of Fidelity for each Stewart share held.

Case Study: Stewart Information Services Corporation (NYSE: STC) Acquired by Fidelity National Financial, Inc. (NYSE: FNF)

− On March 18, 2018, Fidelity National Financial reached a definitive agreement to acquire Stewart Information Services Corporation for ~$1.1Bn ($50.00 per share), a 23% stock price premium to the day prior

− Stewart shareholders will receive $25.00 in cash and 0.6425 common shares of Fidelity for each share of Stewart common stock held at closing(1)

− Fidelity National Financial expects to achieve at least $135MM in operational cost synergies and projects the acquisition would have been at least 15% accretive to pro-forma 2017 adjusted net earnings

− The transaction is expected to close in Q1 or Q2 of 2019, subject to regulatory approval

Acquired

Pending

Transaction Overview FNF M&A Transaction History

Stewart Revenue by Type ($MM)

Ann.Date

TargetEnterprise

Value ($MM)EV / LTM Revenue

EV / LTM EBITDA

3/18/18 $1,138 0.6x 10.1x

10/02/17 ~Conf ~Conf ~Conf

7/25/17 N / A N / A N / A

6/26/17 N / A N / A N / A

5/22/17 N / A N / A N / A

2/21/17 N / A N / A N / A

7/26/16 $229 ~Conf ~Conf

$617 $606 $552

$178 $176$187

$83 $93$97

$20 $19$27

$897 $894$862

2015 2016 2017

Domestic Non-Commercial Domestic Commercial

International Non-Commercial International Commercial

FNF Stock Price History

(Spin-off Completed)

$34.24

2525


Source: Company Website and filings, Capital IQ as of 1/24/19, Pitchbook and press releases.

Case Study: Silver Lake and Battery Ventures Acquire Environmental Data Resources

− On March 13, 2018, Silver Lake and Battery Ventures reached a definitive agreement to acquire Environmental Data Resources from the Daily Mail and General Trust plc (LSE: DMGT) for $205MM

− Environmental Data Resources has been in the Daily Mail’s portfolio since 1999, when it was bought for $95MM

− The investment will enable Environmental Data Resources to accelerate growth, specifically through its Collateral360 SaaS platform, which ensures compliance with risk policies by consolidating disparate processes and constituencies into one collaborative workspace

Headquarters: Shelton, CT

Founded: 1990

Employees: ~240

Description: Develops a comprehensive database intended to maintainenvironmental records and land use information fromthousands of federal, state, tribal, local and privatesources. The Company's database is used for property due-diligence and risk management services, enabling clientsincluding environmental consultants and engineers,appraisers, and lenders to manage real estate duediligence process.

Risk Management - Accesses property-centric information to better manage collateral risk during origination and monitor over the life-of-loan. Provides an environmental pre-screen, risk rating, loan checks (with risk assessment) and environmental reports.

Workflow - Realizes operational efficiencies by connecting the core systems, processes, people and services associated with property due diligence such as appraisals, evaluations and property reports.

Smart Data - Expands business intelligence by unlocking the power of data to support sound lending and business decisions. Collateral360 connects people with information and leverages technology to allow data flow between parties.

Compliance - Simplifies compliance with regulators and bank policy through Collateral360’s Policy Infused Technology, which enables lenders to filter loans, grant exceptions and demonstrate compliance to auditors and regulators.

Acquired

From

Closed

Transaction Overview EDR Overview

End-Market Solutions

Lenders – Helps due diligence processes through simplifying lending

operations, improving risk management and meeting regulatory

demands.

Insurance – Provides environmental records and historical-use

sources on properties for cost-effective, subscription-based

solutions for the environmental review process.

Corporate – Uncovers critical environmental information for

decision making about corporate real estate transactions such as

M&A and real estate assets managed.

Residential – Identifies environmental concerns such as leaking

underground tanks, landfills, hazardous waste sites and other

environmental hazards.

Appraisers – Allows for project management on a single dashboard

where documents can be easily uploaded and transmitted to

clients.

1

2

3

4

5

26

APPENDIX

2727

$415

$1,600

$984

$1,306

$943$230

$100

$100

$50

$355

$645

$497$422

$1,298

$1,700

$1,084

$1,356$1,298

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18

APPENDIX

Avg. Deal Value:

$25.8$23.2$7.3$8.3$8.5

Source: Pitchbook and press releases.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.(2) Excludes Airbnb, WeWork and OYO Rooms financing rounds.(3) Excludes Houzz financing rounds.

Q4 2018 Real Estate Technology Financing Activity

(3)

Quarterly Financing Activity (1)(2) Select Q4 2018 Financing Transactions

49

6058

(7)

84

$11.7

Ann. Date Company

Selected Investor(s) Amt. Invested

Funding to Date

Last Reported Valuation

12/13 $40 $65 NA

12/13 $75 $307 $3,000

12/12 $25 $33 $168

11/14 $165 $326 $1,650

11/11$26 Equity

/ $130 Debt$88 Equity

/ $130 DebtNA

11/1 $10 $12 NA

10/25$20 Equity

/ $205 Debt$24 Equity

/ $205 DebtNA

10/23 $60 $160 $810

10/18 $64 $213 NA

10/11 $20 $33 $115

10/1 $33 $40 $153

60

$21.8

56

62

83

$11.4

Number of DealsEquity Raise Value

Disclosed iBuyer Debt

($MM)($MM)

2828

APPENDIX

Source: Capital IQ as of 1/24/19, Pitchbook, press releases and Company filings.(1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology.(2) Includes potential ~$70MM earnout.

Q4 2018 Real Estate Technology M&A Activity

Quarterly M&A Activity (1) Select Q4 2018 M&A Transactions

Buyer TargetAnnounced

DateEnterprise

Value

12/21 $105

12/20 $275

12/17 NA

11/21 NA

11/20 $875

11/8 $68

11/6 NA

10/25 NA

10/22 $122

10/12 $57

10/11 $370

10/10 NA

($MM)

(2)

12

9

20

16

28

23

26 27

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18

2929

1/9/2019 / NA NA NA NA NA Provider of applicant screening platforms for the multifamily real estate industry and corporate employers.

1/7/2019 NA NA NA NA NA Provider of national real estate data and analytics.

12/21/2018 $105 6.3x NA 8.8x NAProvider of an online analysis website for consumers seeking advice on financial topics such as insurance,

investing and credit cards.

12/20/2018 275 NA NA NA NADeveloper of a construction bid management platform designed to connect businesses in the construction

industry.

12/17/2018 NA NA NA NA NA Provider of marketing services for real estate in Chantilly, Virginia.

12/6/2018 NA NA NA NA NA Provider of real estate settlement and title underwriting services.

12/6/2018 NA NA NA NA NAProvider of an online hotel booking platform intended to serve the travelers, expets and locals around the

world.

12/5/2018 NA NA NA NA NA Provider of software designed to offer workplace space management and optimization.

11/21/2018 NA NA NA NA NAProvider of appraisal and title management services to mortgage originators, quality control companies, due

diligence firms, and other institutions involved in the real estate finance industry.

11/20/2018 875 NA 8.8x NA NA Developer of a construction productivity software intended to deliver real-time project information.

11/8/2018 68 NA NA NA NAProvider of an online property rental management platform designed to make the rental process simple,

secure and intuitive.

11/6/2018 NA NA NA NA NA Provider of information services that help clients in processing real estate transactions.

10/25/2018 NA NA NA NA NA Developer of a property management platform designed to offer information on short-term rentals.

10/22/2018 122 3.5x NA 40.2x NAProvides SaaS-based insurance claims management mobile applications for businesses in the property and

health insurance sector. Also provides insurance claims analytics and change management services.

10/12/2018 57 NA NA NA NA Developer of data analytics platform intended to provide business intelligence to manage properties.

10/4/2018 370 2.0x NA 11.7x NAProvides an online automotive, home, renter's and health insurance quote comparison service for consumers

as well as lead generation services for insurance agents and other businesses.

10/2/2018 NA NA NA NA NAOperates a high-end serviced home rentals platform for rental properties in sixteen countries around the

world.

10/1/2018 NA NA NA NA NALoanDecisions, LoanLogics' product, pricing and eligibility (PPE) unit, offers a platform that allows lenders to

quickly process and price mortgages and other loan products.

9/11/2018 NA NA NA NA NA Provides an online marketplace designed to make buying a home simple and affordable.

8/30/2018 263 5.1x 4.6x 17.0x 14.9x Provides information and marketing services to the commercial real estate industry.

(LoanDecisions Unit)

APPENDIX

($MM)

20

18

Selected M&A Activity

Source: Capital IQ as of 1/24/19, Pitchbook and Company filings.(1) Includes $70.2MM in potential earn-outs.(2) Multiples based on $300MM up-front consideration.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value LTM NTM LTM NTM Target Description

(1) (2) (2)

3030

8/29/2018 NA NA NA NA NA Leading luxury real estate brokerage serving California.

8/29/2018 $210 NA NA NA NADevelops an online real estate referrals platform designed to match top agents with qualified home buyers and

sellers in real-time.

8/22/2018 NA NA NA NA NA Provides an online platform designed to offer on-demand home repair services.

8/8/2018 6,675 3.7x 3.8x 12.5x 12.6x Provider of business information and software for risk and supply management decisions.

8/6/2018 NA NA NA NA NA Operates an online direct mortgage lending company.

8/2/2018 117 5.9x NA NA NA Operates an innovative interactive media company intended to support the apartment industry.

8/2/2018 NA NA NA NA NAFocuses on reducing expense and exposure of clients' portfolios from origination to disposition, enabling

clients to manage risk across the mortgage lifecycle.

7/31/2018 2,000 7.4x NA 20.0x NA Provides enterprise contract management software.

7/10/2018 NA NA NA NA NADevelops whole loan mortgage trade management software intended to bring automation and transparency to

the spot market for mortgage loans.

7/10/2018 NA NA NA NA NA Develops cloud-based software intended to improve government processes.

7/9/2018 NA NA NA NA NA Operates a residential real estate brokerage in the San Francisco Bay Area.

7/2/2018 39 1.1x NA 12.2x NA Provides commission free real estate services.

6/12/2018 290 NA NA NA NADevelops real-time facility support software services intended for facility maintenance management and

process optimization.

6/6/2018 NA NA NA NA NAProvides software which helps maintenance teams manage work orders, organize / execute preventative

maintenance, predict asset maintenance and manage enterprise assets and equipment inventory.

6/4/2018 NA NA NA NA NA Developer of facility scheduling and event management software.

6/4/2018 NA NA NA NA NA Develops a mortgage processing software designed to accelerate the speed and scaling of mortgage processing.

5/11/2018 3,208 9.7x 7.6x 27.8x 19.6xProvides a searchable real estate classified ads website of properties for sale or rent for consumers in the UK.

Also provides online home value reference content and related rental mobile apps.

5/1/2018 97 NA NA NA NA Provider of property data analytics to the financial sector.

4/23/2018 1,200 NA 6.0x NA NA Provides cloud, SaaS, and on premise commercial construction software solutions.

4/20/2018 219 9.9x 6.8x NA NA Provides a SaaS-based payment and billing platform for the multi-family and commercial real estate industry.

(Australia)

(Mortgage Solutions Business)

Source: Capital IQ as of 1/24/19 and Pitchbook.(1) Includes $14.0MM in potential earn-outs.

APPENDIXSelected M&A Activity (cont’d)

($MM)



(1)

20

18

3131

4/12/2018 NA NA NA NA NA Develops desktop, mobile, and Web tools for real estate and mortgage industries.

3/21/2018 NA NA NA NA NA Provides cloud-based medical device and facilities management SaaS for the healthcare industry.

3/18/2018 $1,138 0.6x 0.6x 10.1x 7.8x Provides title insurance and real estate transaction services.

3/13/2018 205 2.8x NA NA NA Provides environmental risk information services and solutions.

3/8/2018 NA NA NA NA NA Provides housing software and services intended to help housing authorities effectively manage processes.

2/12/2018 3,587 2.2x 1.7x NM NMProvides servicing, origination, and transaction based services primarily to single-family residences in the

United States.

2/8/2018 NA NA NA NA NA Develops software for property management.

2/7/2018 419 NA NA NA NAProvides automotive finance and real-estate lending software solutions for banks, thrifts, credit unions,

mortgage companies, and captive finance companies in the United States.

2/2/2018 485 9.2x NA NA NAProvides cloud-based construction program management software to meet the needs of repeat builders in the

construction industry.

1/3/2018 NA NA NA NA NAProvides mobile physical asset management and surveying SaaS for the education, retail, healthcare,

government, infrastructure, leisure and commercial property sectors globally.

12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software.

11/17/2017 NA NA NA NA NAProvides an online portal that provides information on real estate properties. Its portal provides ads and other

advertising materials for real estate.

11/16/2017 NA NA NA NA NADevelops an online rental platform designed to help people with disabilities find reasonable and accessible

accommodations when traveling.

11/7/2017 NA NA NA NA NA Provides engineering content management software for businesses and government agencies globally.

10/23/2017 NA NA NA NA NA Developer of rental housing software designed to manage complex tenancy relationships.

10/17/2017 NA NA NA NA NAProvides a cloud-based software system for clients in the condominium development and sales sector with a

comprehensive web-based application.

10/16/2017 NA NA NA NA NADevelops cloud-based transaction management systems designed to create, store, sign and manage all listing,

sales and lease files online.

10/16/2017 NA NA NA NA NAProvides housing management software for public housing authorities and private affordable housing

developments.

10/4/2017 NA NA NA NA NADevelops and supplies real estate management software designed to provide full access to vital information in

real estate.

10/2/2017 NA NA NA NA NADevelops a SaaS-based real estate transaction management software created to help real estate agents manage

their transactions online.

(Lending Solutions Business)

Source: Capital IQ as of 1/24/19 and Pitchbook.(1) Represents value of the 55% stake acquired.


($MM)

($MM)

20

17



20

18

(1)

3232

9/12/2017 $385 3.9x NA 25.7x NAOperates an online rental search destination that connects apartment shoppers to rental properties throughout

the United States and Canada.

9/8/2017 NA NA NA NA NA Provider of real estate listing management technology to developers and builders.

8/31/2017 128 NA NA NA NAProvides cloud-based intelligent sales software that enables mortgage companies to close more loans by

helping loan officers respond quickly to prospective borrowers.

8/9/2017 NA NA NA NA NA Provides Web-based integrated workplace management SaaS for enterprises.

8/2/2017 1,700 NA NA 18.9x NAProvides an online real estate marketplace allows people to buy and sell commercial and residential real estate

properties online using desktop and mobile technology.

8/2/2017 250 NA NA NA NAProvides a real estate leasing platform that facilitates communicaty marketing, renter qualification, lease

contract generation and document storage.

8/1/2017 NA NA NA NA NA Provides mortgage loan application software, loan origination software, and data security solutions.

7/25/2017 NA NA NA NA NA Develops customer relationship management software and a marketing platform for real estate professionals.

7/10/2017 NA NA NA NA NA Provides an online marketplace that connects borrowers and lenders.

7/3/2017 1,434 3.0x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States.

6/19/2017 70 2.3x NA NA NA Provider of utility management and energy services.

6/13/2017 78 NA NA NA NAProvider of an online real estate agent platform, offering agents maximum property exposure and a host of

services.

6/6/2017 NA NA NA NA NAProvider of an appraisal management platform that uses desktop and cloud-based valuation supply chain

technology that connects all of the parties involved in the appraisal process.

6/1/2017 NA NA NA NA NA Developer of web-based CRM software intended for the real estate industry.

5/23/2017 NA NA NA NA NAProvider of a real estate software platform coupled with an open and connected ecosystem for real estate

businesses.

5/1/2017 588 1.9x 2.0x NM 20.3x Operator of a consumer review website intended to help consumers find service providers.

4/27/2017 NA NA NA NA NAProvider of a web-based land and rural property marketplace, facilitating buying, renting and selling of

properties.

3/13/2017 3,550 2.1x 2.1x 11.2x 7.4xDeveloper of lending and payments software products created to deliver financial technology to banks

worldwide.

2/27/2017 300 8.4x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America.

2/15/2017 300 NA NA NA NAOperator of an online rental marketplace intended to rent high-end properties. The company's rental platform

provides a marketplace for luxury and high-end villas to rent.


($MM)

($MM)

Source: Capital IQ as of 1/24/19 and Pitchbook.



20

17

3333

1/24/2017 $75 NA NA NA NA Provider of data intelligence services designed to offer apartment market data.

11/29/2016 300 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

9/22/2016 185 NA NA NA NA Provides facilities management SaaS for sustainable resource planning for multi-site corporations.

9/21/2016 NA NA NA NA NA RedVision Systems, Inc. provides title reporting and property research solutions.

7/26/2016 NA NA NA NA NADeveloper and provider of an an end-to-end software as a service customer relationship management, lead

generation and lead management software platform

6/22/2016 36 NA NA NA NAProvider of real-time analytics that enable mortgage lenders to monitor and manage operations across their

enterprise.

6/16/2016 NA NA NA NA NAProvides mortgage pricing and eligibility, mortgage sales, mortgage rate quoting and marketing automation

software for banks, mortgage lenders and loan officers.

6/7/2016 NA NA NA NA NA Provides cloud-based document and data management platforms.

6/3/2016 NA NA NA NA NAProvides SaaS based real estate investment management and reporting software and services for the

affordable housing, private equity, and government markets.

5/18/2016 NA NA NA NA NAProvides real estate and facilities management software solutions to Fortune 500 companies that automates

location lifecycle to improve the performance of locations.

5/16/2016 115 4.8x NA 23.0x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry.

2/25/2016 NA NA NA NA NAProvider of a search engine for rental properties. The company offers a map-based online platform with real-

time filtering that enables users to search for apartments to rent in a selected area.

2/23/2016 70 1.2x NA 11.7x NAProvides utility management, energy management, electronic payment, sub metering and back office

solutions.

2/2/2016 NA NA NA NA NA Provides commercial property management software for real estate companies in Germany.

1/28/2016 NA NA NA NA NA Provides Web-based property management solutions to support multiple properties, units, and users.

12/17/2015 475 NA NA NA 13.5x Provides property appraisal and real estate collateral management software.

11/4/2015 3,900 8.0x 7.2x 63.5x 28.4xProvider of an online vacation rental property marketplace that enables property owners / managers to market

properties for rental to travelers.

10/14/2015 16 NA NA NA NAProvides a Web-based relationship management solution for mortgage professionals to improve customer

retention.

7/22/2015 108 NA NA NA NA Provider of an online collaborative transaction environment for the real estate industry.

6/3/2015 NA NA NA NA NAProvider of real estate enterprise software applications and hosted solutions for the property management

industry.

Mean 4.6x 3.8x 18.6x 13.4x

Median 3.6x 3.3x 15.6x 12.6x

Source: Capital IQ as of 1/24/19 and Pitchbook.(1): Represents merger of equals between VTS and Hightower.


($MM)

20

15

($MM)



20

16

(1)

3434Source: Capital IQ as of 1/24/19, Pitchbook and Company filings.“NM” signifies multiple >40x.(1) Fiscal year change announced 5/23/2017.

APPENDIXReal Estate Technology Ecosystem

(1)

($MM, except per share data)

Stock Trading Metrics Operating Metrics

Price Equity Net Enterprise Revenue EV / Revenue EV / EBITDA CY Rev. Growth EBITDA Margin

Company 01/24/19 Value Debt Value CY18E CY19E CY18E CY19E CY18E CY19E 17A/18E 18E/19E CY18E CY19E

RE Media / Portals

CoStar Group, Inc. $375.12 $13,662 ($1,072) $12,590 $1,186 $1,377 10.6x 9.1x 31.0x 25.4x 22.9% 16.1% 34.2% 36.0%

Zillow Group, Inc. $30.99 6,299 (928) 5,371 1,320 1,900 4.1x 2.8x 26.5x 23.5x 22.6% 44.0% 15.3% 12.0%

Scout24 AG $45.84 4,932 925 5,857 611 706 9.6x 8.3x 17.9x 15.8x 2.8% 15.6% 53.7% 52.6%

REA Group Limited $53.84 7,091 234 7,325 612 694 12.0x 10.6x 20.8x 18.0x 2.2% 13.4% 57.6% 58.6%

Rightmove plc $6.14 5,460 (19) 5,441 339 376 16.0x 14.5x 21.0x 19.0x 3.2% 10.8% 76.2% 76.3%

Lifull Co., Ltd. $6.72 901 (66) 835 324 383 2.6x 2.2x 16.2x 13.6x 77.7% 18.3% 15.9% 16.1%

RE Media / Portals

Mean 9.1x 7.9x 22.2x 19.2x 22% 20% 42% 42%

Median 10.1x 8.7x 20.9x 18.5x 13% 16% 44% 44%


Black Knight, Inc. $47.70 $7,126 $1,381 $8,507 $1,117 $1,205 7.6x 7.1x 15.7x 14.3x 6.2% 7.9% 48.6% 49.5%

CoreLogic, Inc. $35.79 2,883 1,666 4,550 1,798 1,777 2.5x 2.6x 9.3x 9.2x (2.8%) (1.2%) 27.1% 27.7%

Ellie Mae, Inc. $71.95 2,507 (272) 2,235 480 509 4.7x 4.4x 17.5x 15.5x 15.0% 6.0% 26.6% 28.3%

Altus Group Limited $18.38 722 71 794 374 424 2.1x 1.9x 13.9x 10.6x (1.9%) 13.4% 15.3% 17.6%

Real Matters Inc. $2.92 256 (68) 189 267 301 NM NM NM 11.6x NA NA NM NM


Mean 4.2x 4.0x 14.1x 12.2x 4% 7% 29% 31%

Median 3.6x 3.5x 14.8x 11.6x 2% 7% 27% 28%

Property Management Software

RealPage, Inc. $53.40 $4,833 $318 $5,151 $873 $1,003 5.9x 5.1x 22.3x 18.0x 30.1% 15.0% 26.4% 28.5%

AppFolio, Inc. $61.99 2,123 (46) 2,078 188 238 11.1x 8.7x NM 32.6x 30.5% 26.6% 23.6% 26.8%

Agilysys, Inc. $14.14 333 (37) 296 136 154 2.2x 1.9x 27.1x 32.1x 7.8% 13.3% 8.0% 6.0%

Property Management Software

Mean 6.4x 5.3x 24.7x 27.6x 23% 18% 19% 20%

Median 5.9x 5.1x 24.7x 32.1x 30% 15% 24% 27%


eXp World Holdings, Inc. $10.21 $603 ($22) $581 $495 $847 1.2x 0.7x NM 22.4x 217.1% 71.1% 0.8% 3.1%

Purplebricks Group plc $2.09 632 (132) 501 195 284 2.6x 1.8x NM 11.3x 76.9% 46.0% (19.5%) 15.5%

Realogy Holdings Corp. $16.52 1,952 3,573 5,525 6,131 6,163 0.9x 0.9x 8.3x 8.4x 0.3% 0.5% 10.9% 10.7%

Redfin Corporation $16.13 1,444 (331) 1,113 480 602 2.3x 1.8x NM NM 29.7% 25.5% (4.1%) (8.0%)

RE/MAX Holdings, Inc. $37.32 662 177 839 212 219 4.0x 3.8x 8.0x 7.8x 8.4% 3.2% 49.2% 49.2%


Mean 2.2x 1.8x 8.2x 12.5x 66% 29% 7% 14%

Median 2.3x 1.8x 8.2x 9.9x 30% 26% 1% 11%

3535Source: Capital IQ as of 1/24/19.“NM” signifies multiple >40x.

APPENDIXReal Estate Technology Ecosystem (cont’d)






CBRE Group, Inc. $44.06 $14,631 $2,936 $17,566 $21,012 $22,371 0.8x 0.8x 9.3x 9.0x 47.9% 6.5% 9.0% 8.7%

Colliers International Group Inc. $61.46 2,409 706 3,115 2,803 3,079 1.1x 1.0x 10.1x 8.5x 23.2% 9.8% 11.0% 11.9%

Cushman & Wakefield plc $15.98 3,452 1,765 5,217 8,015 8,518 0.7x 0.6x 8.0x 7.5x 15.8% 6.3% 8.1% 8.2%

Jones Lang LaSalle Incorporated $141.05 6,427 1,269 7,696 8,970 9,156 0.9x 0.8x 8.5x 8.5x 13.1% 2.1% 10.1% 9.9%

Newmark Group, Inc. $9.80 1,677 1,793 3,469 2,005 2,191 1.7x 1.6x 6.5x 6.4x 28.3% 9.2% 26.7% 24.7%

Savills plc $10.53 1,446 125 1,571 2,093 2,202 0.8x 0.7x 7.7x 7.5x (3.2%) 5.2% 9.7% 9.5%

Marcus & Millichap, Inc. $38.45 1,486 (294) 1,192 794 820 1.5x 1.5x 9.8x 9.2x 10.4% 3.3% 15.4% 15.7%


Mean 1.1x 1.0x 8.6x 8.1x 0.2x 0.1x 0.1x 0.1x

Median 0.9x 0.8x 8.5x 8.5x 0.2x 0.1x 0.1x 0.1x


Fidelity National Financial, Inc. $34.76 $9,567 ($435) $9,132 $7,810 $7,674 1.2x 1.2x 8.0x 8.0x 1.8% (1.7%) 14.6% 14.8%

First American Financial Corporation $48.57 5,430 (1,384) 4,046 5,792 5,787 0.7x 0.7x 4.8x 4.8x 0.3% (0.1%) 14.4% 14.6%

Radian Group Inc. $18.28 3,900 (79) 3,821 1,297 1,419 2.9x 2.7x NM NM 6.2% 9.3% NA NA

Stewart Information Services Corporation $43.79 1,040 (39) 1,000 1,934 1,956 0.5x 0.5x 8.8x 7.5x (1.2%) 1.1% 5.9% 6.9%

Altisource Portfolio Solutions S.A. $22.83 388 237 625 810 782 0.8x 0.8x NM NM (14.1%) (3.4%) 0.3% 0.1%


Mean 1.2x 1.2x 7.2x 6.8x (1%) 1% 9% 9%

Median 0.8x 0.8x 8.0x 7.5x 0% (0%) 10% 11%


LendingTree, Inc. $289.31 $3,711 ($17) $3,694 $770 $1,018 4.8x 3.6x 24.0x 18.2x 24.7% 32.1% 20.0% 20.0%

Moneysupermarket.com Group PLC $3.89 2,086 (32) 2,054 446 495 4.6x 4.1x 12.5x 11.2x 0.0% 11.1% 36.9% 37.0%

QuinStreet, Inc. $18.35 904 (71) 834 446 513 1.9x 1.6x 20.5x 14.6x 32.8% 15.0% 9.1% 11.2%


Mean 3.8x 3.1x 19.0x 14.7x 19% 19% 22% 23%

Median 4.6x 3.6x 20.5x 14.6x 25% 15% 20% 20%


Booking Holdings Inc. $1,795.67 $83,193 $1,578 $84,771 $14,529 $16,111 5.8x 5.3x 14.9x 13.5x 14.6% 10.9% 39.2% 39.1%

Expedia Group, Inc. $117.42 17,493 349 17,842 11,219 12,388 1.6x 1.4x 9.3x 8.2x 11.5% 10.4% 17.1% 17.5%

TripAdvisor, Inc. $56.69 7,804 (663) 7,141 1,612 1,750 4.4x 4.1x 17.2x 15.5x 3.6% 8.6% 25.8% 26.4%


Mean 4.0x 3.6x 13.8x 12.4x 10% 10% 27% 28%

Median 4.4x 4.1x 14.9x 13.5x 12% 10% 26% 26%

3636Source: Capital IQ as of 1/24/19.“NM” signifies multiple >40x.

APPENDIXReal Estate Technology Ecosystem (cont’d)





Broader Data

Experian plc $25.06 $22,578 $3,430 $26,008 $4,843 $5,021 5.4x 5.2x 15.7x 15.1x 6.0% 3.7% 34.2% 34.2%

TransUnion $58.91 10,916 3,871 14,787 2,338 2,659 6.3x 5.6x 16.2x 14.1x 20.9% 13.8% 39.1% 39.3%

Equifax Inc. $103.82 12,518 2,379 14,897 3,418 3,537 4.4x 4.2x 12.9x 12.3x 1.7% 3.5% 33.7% 34.3%

Moody's Corporation $154.12 29,531 3,823 33,354 4,514 4,712 7.4x 7.1x 15.5x 14.8x 7.4% 4.4% 47.7% 47.9%

Fair Isaac Corporation $215.14 6,229 674 6,903 1,061 1,146 6.5x 6.0x 28.7x 26.5x 11.9% 8.0% 22.7% 22.7%

Broader Data

Mean 6.0x 5.6x 17.8x 16.6x 10% 7% 35% 36%

Median 6.3x 5.6x 15.7x 14.8x 7% 4% 34% 34%

Real Estate Technology Sector Summary 2018 Year-End Review · Excludes AirBnB, Houzz, Oyo Rooms and WeWork financing rounds. Represents data across CRE / Investment, Residential Real

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