Real Estate Technology Sector Summary Q Review

Transcription

1 Real Estate Technology Sector Summary Q Review 1

2 Executive Summary Real estate technology continues to be one of the most active categories in the market, with ~$1.7Bn in financing activity across 62 companies and 28 M&A transactions in Q Increase in large scale financings as category leaders begin to differentiate themselves from competition and investors increasingly look to back established players Activity across multiple sub-verticals, led by SoftBank s investment in Katerra, SilverLake s investment in Credit Karma and Lennar / Fifth Wall s investment in OpenDoor Multiple investments in the mortgage origination and closing software sector Blend, Roostify and Qualia all raised capital in Q Large scale consolidators continue to be active with M&A activity, including some large transactions in the title and mortgage servicing sector Fidelity National Financial s acquisition of Stewart Title reflect ongoing consolidation in the title market Insight s acquisition of Property Brands reflects continued activity in the multi-family property management space, especially centered around a vertical software / payments theme (Yapstone completed a large financing in Q to continue expansion in their vertical payments platform in the multi-family / RE market) Select Q1 Active Investors Select Q1 Active Strategic Buyers 2

3 GCA REAL ESTATE TECHNOLOGY TEAM Chris Gough Managing Director Head of Real Estate Technology Phone: (415) Mobile: (415) Sean Minnihan Managing Director Head of Financial Technology Phone: (212) Mobile: (917) Steve Fletcher Managing Director Co-Head of Software Phone: (415) Mobile: (415) Paul DiNardo Managing Director Co-Head of Software Phone: (212) Mobile: (650) Key Sub-Sector Coverage Verticals Residential Software Commercial Software Mortgage / Lending Title / Insurance Home Services Facilities Management Construction Tech Acquired by Majority Interest Acquired by Minority Investment From MBO backed by Acquired by We Advised the Seller We Advised the Seller We advised the seller We advised the seller We advised the seller February 2018 October 2017 October 2017 April 2017 December 2016 Acquired by Investment from Acquired by Acquired by Acquired by We advised the seller August 2016 We advised the seller June 2016 We advised the seller August 2015 We advised the seller August 2014 We advised the seller August

4 Deal Dashboard Quarterly Financing Activity (2)(3) Select Q Financing Transactions ($MM) Number of Deals Deal Value ~$1.7Bn in private financing into the RE tech market in Q average deal size increasing reflects continued support of large, category leaders (e.g. OpenDoor, ApartmentList, Credit Karma, etc.) 75 ($MM) Ann. Date Company Selected Investor(s) Amt. Invested Funding to Date Latest Reported Post- Money Valuation 3/28 ~$500 $370 $4,000 3/27 NA $167 $500 3/23 $62 $161 $825 3/12 $31 $72 $211 (5) $1, (7) $1,700 3/7 $33 $40 $153 2/15 $25 $30 $75 2/13 $71 $187 $471 2/8 $21 $40 $96 $582 $478 $413 $646 $745 $448 2/6 $16 $39 $60 1/24 $865 $1,110 $3,000 (1) Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Avg. Deal $7.8 $8.1 $ 17.2 $13.6 $12.4 $7.7 $25.6 $27.4 Value: (4) 1/24 $135 $455 $1,050 1/18 $50 $104 $300 1/18 $42 $75 $292 (6) Source: Pitchbook and Press Releases. (1) Includes LendingHome $250MM bridge financing. (2) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology. (3) Excludes Airbnb financing rounds. (4) Excludes Houzz financing rounds. (5) Acquired a minority stake. (6) Includes $100MM in debt financing from Lennar Corp. (7) Excludes Credit Karma s estimated ~$500MM secondary financing. 4

5 Deal Dashboard Quarterly M&A Activity (1) Select Q M&A Transactions ($MM) 28 Buyer Target Announced Date Ent. Value Highly active M&A market with strong activity from both PE and strategics 3/28 NA 3/27 NA 20 3/18 $1,138 3/13 $ /8 NA 3/5 NA 2/26 NA /12 $3,587 2/8 NA Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 (Lending Solutions Business) (Acquired a 55% stake) 2/7 $395 2/2 $500 Source: Capital IQ, Pitchbook, Press Releases and Company filings. (1) Represents data across CRE / Investment, Residential Real Estate and Mortgage Technology. 5

6 Private Company Funding Leaders ($MM) ($MM) ($MM) Residential Real Estate Technology (3) Mortgage / Closing / Insurance Technology CRE / Facilities / Construction Technology Company Founded Amt. Raised/ Invested Company Founded Amt. Raised/ Invested Company Founded Amt. Raised/ Invested 2012 $ $ $1, $455 Equity / $400 Debt 2012 $ $ $ $109 (2) 2002 $ $ $ $ $ $ $ $ $ $ $ $55 / 2011 $110 (1) 2012 $ $ $ $ $ $ $ $ $65 Deal completed in Q Source: Capital IQ and Pitchbook. (1) Reflects combined funding after VTS/Hightower merger. VTS and Hightower individually raised (2) Excludes $250MM bridge financing. $88mm and $22mm, respectively. (3) Excludes Airbnb and Houzz financing rounds. 6

7 Case Study: Axel Springer s Strategic Investment in Purplebricks (LON: PURP) Transaction Overview Overview Strategic Investment In Pending 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 Platform Headquarters: Solihull, England Description: Operates an online fixed fee real estate brokering platform. The Company's online real estate brokering platform offers buying and selling of commercial and residential properties, enabling clients to avail quality ($MM) residential and commercial properties. FY2015 (1) FY2016 FY2017 Revenue $4.8 $26.1 $65.5 Growth % 448% 151% Gross Profit Margin % 59% 57% 55% Adjusted EBITDA (7.4) (13.6) (6.3) Adj. EBITDA Margin % (156%) (52%) (10%) 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 1 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 will be launching in the New York DMA on April 3rd. 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 2 3 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. Source: Company Website and filings, Capital IQ, Pitchbook and Press Releases. Exchange rate of GBP/USD as of 3/31/2018. (1): Fiscal year ends April 30. 7

8 Case Study: Stewart Information Services Corporation (NYSE: STC) Acquired by Fidelity National Financial, Inc. (NYSE: FNF) Transaction Overview Acquired Pending On March 18, 2018, Fidelity National Financial reached a definitive agreement to acquire Stewart Information Services Corporation for ~$1.2Bn ($50.00 per share), a 23% stock price premium to the day prior Stewart shareholders will receive $25.00 in cash and common shares of Fidelity for each share of Stewart common stock held at closing (1) Fidelity National Financial expects to achieve at least $135MM in operational cost synergies and projects the acquisition would have been at least 15% accretive to proforma 2017 adjusted net earnings The transaction is expected to close in Q1 or Q2 of 2019, subject to regulatory approval Title Revenue by Type ($MM) $897 $894 $20 $19 $83 $93 $178 $176 $862 $27 $97 $187 Ann. Date M&A Transaction History Target Enterprise Value ($MM) EV / LTM Revenue EV / LTM EBITDA 3/18/18 $1, x 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 $47.00 $42.00 Stock Price History (Spin-off Completed) $40.02 $617 $606 $552 $37.00 $ $27.00 Domestic Non-Commercial International Non-Commercial Domestic Commercial International Commercial Source: Company Website and filings, Company Filings, Capital IQ, Pitchbook and Press Releases. (1) Stewart shareholders can also elect to receive $50 in cash or common shares of Fidelity for each Stewart share held. 8

9 Case Study: Silver Lake and Battery Ventures Acquire Environmental Data Resources Transaction Overview Overview Acquired From Closed End-Market Solutions 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 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. Headquarters: Founded: 1990 Employees: ~240 Description: Shelton, CT Develops a comprehensive database intended to maintain environmental records and land use information from thousands of federal, state, tribal, local and private sources. The Company's database is used for property duediligence and risk management services, enabling clients including environmental consultants and engineers, appraisers, and lenders to manage real estate due diligence process. Platform Risk Management - Accesses property-centric information to better manage collateral risk during origination and monitor over the lifeof-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. Source: Company Website and filings, Capital IQ, Pitchbook and Press Releases. 9

10 Public Company Valuation LTM Share Price Performance 110% 90% QNST: 227% TREE: 162% MONY: (13.1%) 70% 50% 30% 10% (10%) 70% 45% 45% 29% 11% 11% 3% (30%) Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 Mortgage / Data Technology Credit / Mortgage Marketing Traditional Mortgage / Title Property Management Software Traditional Brokerage Real Estate Media / Portals Real Estate Sharing Economy / Travel Public Real Estate Technology Ecosystem Mortgage / Data Technology Credit / Mortgage Marketing Traditional Mortgage / Title Property Management Software Traditional Brokerage Real Estate Media / Portals Real Estate Sharing Economy / Travel 3% 70% 11% 45% 29% 45% 11% LTM Share Price Performance Source: Capital IQ. 10

11 Public Company Valuation (cont d) Enterprise Value / 2018E Revenue Enterprise Value / 2018E EBITDA 10.0x 8.0x 6.0x 4.0x 2.0x 7.7x 5.0x 4.4x 3.9x 3.6x 2.2x 2.1x 30.0x 24.0x 18.0x 12.0x 6.0x 27.6x 22.9x 18.3x 17.7x 14.6x 10.4x 8.2x 0.0x Real 4Estate Real Estate Property Mortgage / Credit 5 / Traditional 6 7 Sharing Traditional Media / Management Data Mortgage Mortgage Economy / Brokerage Portals Software Technology Marketing / Title Services Travel 0.0x Property 1 Real 1Estate Credit 1 / Mortgage 1 / Real 1Estate Traditional 1 Traditional 1 Management Media / Mortgage Data Sharing Brokerage Mortgage Software Portals Marketing Technology Economy / / Title Services Travel Public Real Estate Technology Ecosystem Real Estate Media / Portals Property Management Software Mortgage / Data Technology Real Estate Sharing Economy / Travel Credit / Mortgage Marketing Traditional Mortgage / Title Services Traditional Brokerage 7.7x / 22.9x 5.0x / 27.6x 4.4x / 17.7x Multiples represent mean value of sector group. Source: Capital IQ. 3.9x / 14.6x NTM Revenue / NTM EBITDA Multiple 3.6x / 18.3x 2.2x / 8.2x 2.1x / 10.4x 11

12 REAL ESTATE TECHNOLOGY SECTOR SUMMARY Selected M&A Activity ($MM) Date Enterprise EV / Revenue EV / EBITDA Announced Acquirer Target Value LTM NTM LTM NTM Target Description 3/18/2018 $1, x 0.6x 10.1x 7.8x Provides title insurance and real estate transaction services. 3/13/ x 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, x 1.7x NM NM 2/8/2018 NA NA NA NA NA Develops software for property management. (1) 2/7/ NA NA NA NA (Lending Solutions Business) 2/2/ x NA NA NA Provides servicing, origination, and transaction based services primarily to single-family residences in the United States. Provides automotive finance and real-estate lending software solutions for banks, thrifts, credit unions, mortgage companies, and captive finance companies in the United States. Provides cloud-based construction program management software to meet the needs of repeat builders in the construction industry. 12/14/2017 NA NA NA NA NA Provides property management, accounting and facilities management software. 11/17/2017 NA NA NA NA NA 11/16/2017 NA NA NA NA NA Provides an online portal that provides information on real estate properties. Its portal provides ads and other advertising materials for real estate. Develops an online rental platform designed to help people with disabilities find reasonable and accessible accommodations when traveling. 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 NA 10/16/2017 NA NA NA NA NA 10/16/2017 NA NA NA NA NA 10/4/2017 NA NA NA NA NA 10/2/2017 NA NA NA NA NA 9/12/ x NA 25.7x NA Provides a cloud-based software system for clients in the condominium development and sales sector with a comprehensive web-based application. Develops cloud-based transaction management systems designed to create, store, sign and manage all listing, sales and lease files online. Provides housing management software for public housing authorities and private affordable housing developments. Develops and supplies real estate management software designed to provide full access to vital information in real estate Develops a SaaS-based real estate transaction management software created to help real estate agents manage their transactions online. Operates 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/ NA NA NA NA Provides cloud-based intelligent sales software that enables mortgage companies to close more loans by helping loan officers respond quickly to prospective borrowers. Source: Capital IQ, Pitchbook and Company filings. (1) Represents value of the 55% stake acquired. 12

13 REAL ESTATE TECHNOLOGY SECTOR SUMMARY Selected M&A Activity (cont d) ($MM) Date Enterprise EV / Revenue EV / EBITDA Announced Acquirer Target Value LTM NTM LTM NTM Target Description 8/2/2017 NA NA NA NA NA Provides 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 NA Provides 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, x 2.8x 14.2x 11.1x Provider of financial publishing services in the United States. 6/19/ x NA NA NA Provider of utility management and energy services. 6/13/ NA NA NA NA 6/6/2017 NA NA NA NA NA 11/29/2016 (1) 300 NA NA NA NA Provider of an online real estate agent platform, offering agents maximum property exposure and a host of services. Provider 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 NA Provider of a real estate software platform coupled with an open and connected ecosystem for real estate businesses. 5/1/ x 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 NA 3/13/2017 3, x 2.8x 15.0x 10.0x Provider of a web-based land and rural property marketplace, facilitating buying, renting and selling of properties. Developer of lending and payments software products created to deliver financial technology to banks worldwide. 2/27/ x NA 30.0x NA Advanced forecasting mobile app and optimization software used to price real estate units in North America. 2/15/ NA NA NA NA Operator 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. 1/24/ NA NA NA NA Provider of data intelligence services designed to offer apartment market data. Provider of real-time analytics that enable mortgage lenders to monitor and manage operations across their enterprise. 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 NA Developer and provider of an an end-to-end software as a service customer relationship management, lead generation and lead management software platform Source: Capital IQ and Pitchbook. (1) Represents a merger of equals between VTS and Hightower. 13

14 REAL ESTATE TECHNOLOGY SECTOR SUMMARY Selected M&A Activity (cont d) ($MM) Date Enterprise EV / Revenue EV / EBITDA Announced Acquirer Target Value LTM NTM LTM NTM Target Description 6/22/2016 $36 NA NA NA NA Provider of real-time analytics that enable mortgage lenders to monitor and manage operations across their enterprise. 6/16/2016 NA NA NA NA NA Provides 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 NA 5/18/2016 NA NA NA NA NA Provides SaaS based real estate investment management and reporting software and services for the affordable housing, private equity, and government markets. Provides real estate and facilities management software solutions to Fortune 500 companies that automates location lifecycle to improve the performance of locations. 5/16/ x NA 23.0x NA Provides secure EDI document distribution and collaboration SaaS for the financial services industry. 2/25/2016 NA NA NA NA NA 2/23/ x NA 11.7x NA Provider of a search engine for rental properties. The company offers a map-based online platform with realtime filtering that enables users to search for apartments to rent in a selected area. Provides 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/ NA NA NA 13.5x Provides property appraisal and real estate collateral management software. 11/4/2015 3, x 7.2x 63.5x 28.4x Provider of an online vacation rental property marketplace that enables property owners / managers to market properties for rental to travelers. 11/4/ NA NA NA NA Provider of hospitality management software systems for hotels, resorts, and spas worldwide. 10/14/ NA NA NA NA Provides a Web-based relationship management solution for mortgage professionals to improve customer retention. 7/22/ NA NA NA NA Provider of an online collaborative transaction environment for the real estate industry. 6/3/2015 NA NA NA NA NA 4/29/ x NA 7.0x NA Provider of an online apartment listing service. Provider of real estate enterprise software applications and hosted solutions for the property management industry. 4/8/2015 NA NA NA NA NA Provider of an online apartment advertising service for property managers and owners. 6/2/ NA NA NA NA Provides a suite of cloud-based, smart answer automation and routing. Mean 3.8x 1.9x 15.6x 11.7x Median 2.3x 2.0x 12.7x 9.5x Source: Capital IQ and Pitchbook. 14

15 Real Estate Technology Ecosystem ($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 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E Real Estate Media / Portals CoStar Group, Inc. $ $13,091 ($1,211) $11,879 $965 $1, x 10.2x NM 32.2x 15.2% 21.0% 25.9% 31.6% Zillow Group, Inc. $ ,297 (377) 9,920 1,077 1, x 7.6x NM 32.0x 27.2% 21.6% 7.7% 23.7% REA Group Limited $ , , x 12.3x 26.5x 21.2x 32.0% 10.7% 51.4% 58.0% Rightmove plc $ ,519 (34) 5, x 14.7x 22.6x 19.3x 21.1% 13.6% 73.9% 76.0% ZPG Plc $4.72 2, , x 5.3x 17.1x 13.5x 17.9% 27.0% 39.3% 39.4% Redfin Corporation $ ,867 (206) 1, x 3.5x NM NM 38.5% 27.0% (2.4%) 1.3% Purplebricks Group PLC $4.41 1,209 (86) 1, x 5.1x NM NM 141.2% 90.6% (16.6%) 3.3% Lifull Co., Ltd. (1) $9.03 1,072 (40) 1, x 2.9x NM 19.3x (38.0%) 141.4% 9.7% 14.9% Source: Capital IQ, Pitchbook and Company filings. (1) Fiscal year change announced 5/23/2017. Real Estate Media / Portals Mean 9.5x 7.7x 22.1x 22.9x 32% 44% 24% 31% Median 9.4x 6.4x 22.6x 20.3x 24% 24% 18% 28% Mortgage / Data Technology Black Knight, Inc. $47.10 $7,068 $1,423 $8,491 $1,052 $1, x 7.6x 22.6x 16.0x 2.5% 6.3% 35.7% 47.6% CoreLogic, Inc. $ ,688 1,635 5,323 1,851 1, x 2.9x 13.8x 11.2x (5.2%) (0.2%) 20.8% 25.6% Ellie Mae, Inc. $ ,153 (241) 2, x 5.8x NM 22.2x 15.8% 19.5% 16.9% 26.3% Real Matters Inc. $ (78) x 1.2x NM 24.7x 21.9% 18.2% 3.1% 4.7% Reis, Inc. $ (20) x 4.4x 27.7x 14.2x 1.4% 8.9% 17.1% 30.6% Mortgage / Data Technology Mean 4.8x 4.4x 21.4x 17.7x 7% 11% 19% 27% Median 4.7x 4.4x 22.6x 16.0x 2% 9% 17% 26% Property Management Software RealPage, Inc. $51.50 $4,279 $579 $4,859 $671 $ x 5.8x NM 22.2x 18.1% 25.3% 14.1% 26.1% AppFolio, Inc. $ ,392 (46) 1, x 7.4x NM 36.0x 36.2% 26.1% 9.1% 20.6% Agilysys, Inc. $ (37) x 1.8x NM 24.5x (2.4%) 5.4% (8.7%) 7.4% Property Management Software Mean 6.2x 5.0x NM 27.6x 17% 19% 5% 18% Median 7.2x 5.8x NM 24.5x 18% 25% 9% 21% Traditional Brokerage Jones Lang LaSalle Incorporated $ $7,930 $794 $8,724 $7,932 $8, x 1.0x 11.2x 11.0x 16.6% 6.1% 9.8% 9.4% Realogy Holdings Corp. $ ,568 3,315 6,883 6,114 6, x 1.1x 9.4x 9.6x 5.2% 2.4% 12.0% 11.4% Colliers International Group Inc. $ , ,842 2,275 2, x 1.1x 12.1x 10.4x 20.0% 11.4% 10.3% 10.8% RE/MAX Holdings, Inc. $ , , x 6.0x 12.5x 11.6x 11.1% 6.1% 51.0% 51.8% Marcus & Millichap, Inc. $ ,391 (286) 1, x 1.5x 10.9x 9.6x 0.3% 4.1% 14.1% 15.3% Traditional Brokerage Mean 2.3x 2.1x 11.2x 10.4x 11% 6% 19% 20% Median 1.2x 1.1x 11.2x 10.4x 11% 6% 12% 11% 15

16 Real Estate Technology Ecosystem (cont d) ($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 03/30/18 Value Debt Value CY17A CY18E CY17A CY18E CY17A CY18E 17A/16A 17A/18E CY17A CY18E Traditional Mortgage / Title Fidelity National Financial, Inc. $40.02 $10,985 ($168) $10,817 $7,668 $7, x 1.4x 9.8x 9.6x 5.6% 2.3% 14.4% 14.3% Ocwen Financial Corporation $ ,822 7,372 1,195 1, x 7.3x NM NM (13.9%) (15.5%) NA NA First American Financial Corporation $ ,511 (654) 5,857 5,772 5, x 1.0x 9.5x 7.1x 3.5% 2.5% 10.7% 13.9% Radian Group Inc. $ ,113 (56) 4,057 1,222 1, x 3.1x 5.5x NM (1.4%) 7.2% NA NA Nationstar Mortgage Holdings Inc. $ ,755 1,376 3,131 1,650 2, x 1.5x NM NM 32.0% 29.1% NA NA Stewart Information Services Corporation $ ,043 (51) 992 1,957 2, x 0.5x 8.8x 6.8x (2.8%) 3.2% 5.8% 7.2% Altisource Portfolio Solutions S.A. $ x 0.8x 5.8x 9.1x (5.5%) (7.3%) 13.2% 9.1% Traditional Mortgage / Title Mean 2.2x 2.2x 7.9x 8.2x 3% 3% 11% 11% Median 1.4x 1.4x 8.8x 8.1x (1%) 3% 12% 11% Credit / Mortgage Marketing LendingTree, Inc. $ $4,018 ($130) $3,887 $618 $ x 5.0x NM 26.0x 60.7% 27.1% 13.8% 19.0% Moneysupermarket.com Group PLC $4.03 2,158 (47) 2, x 4.4x 13.6x 11.9x 14.1% 6.9% 34.9% 37.1% QuinStreet, Inc. $ (42) x 1.4x NM 17.0x 12.1% 12.9% 3.4% 8.5% Credit / Mortgage Marketing Mean 4.2x 3.6x 13.6x 18.3x 29% 16% 17% 22% Median 4.7x 4.4x 13.6x 17.0x 14% 13% 14% 19% Real Estate Sharing Economy / Travel Booking Holdings Inc. $2, $100,459 $2,124 $102,583 $12,681 $14, x 6.9x 20.8x 18.2x 18.0% 16.6% 38.8% 38.1% Expedia Group, Inc. $ , ,728 10,060 11, x 1.6x 15.3x 9.6x 14.7% 12.2% 11.5% 16.4% TripAdvisor, Inc. $ ,683 (387) 5,296 1,556 1, x 3.3x 30.6x 15.9x 5.1% 3.1% 11.1% 20.7% Real Estate Sharing Economy / Travel Mean 4.4x 3.9x 22.3x 14.6x 13% 11% 20% 25% Median 3.4x 3.3x 20.8x 15.9x 15% 12% 12% 21% Source: Capital IQ. 16