January 2022
Public Market Valuations – Return to Fundamentals
Jon Guido and Doug Hurst
C-Suite SaaS Solutions Report
1
AGC Partners
PUBLIC VALUATION RECONCILIATION
 Through early Q4, the 3 C-Suite Indices and the BVP SaaS Index outperformed
the S&P Index as much as 5x (see page 4) as public investors rewarded revenue
growth compared to the private markets which emphasized SaaS fundamentals
 At the same time, the public trading multiples (20x+ ARR) towered over the
private market multiples
 Private market valuations have been and continue to be primarily driven off of
SaaS fundamentals - revenue growth, Rule of 40, and Cash Flow Margin
 While the S&P Index has remained flat over the last two months, SaaS stock
prices have been hammered (see page 4)
 Workforce Management (-22%), SaaS Index (-28%), Workflow Management (-29%),
CFO Suite (-33%)
 As such, the revenue multiples of public SaaS stock have taken a significant hit (see page 9)
 Workforce Management (26x to 17x), CFO Suite (24x to 14x), Workflow Management (25x to 16x), SaaS Index (19x to 13x)
 Public stocks exhibiting slowing revenue growth, weak efficiency (below or near 40 on the Rule of 40) and negative cash flow
margins have substantially underperformed comparable SaaS companies and the general SaaS index
 When C-Suite SaaS companies are grouped by revenue multiple ranges, those that are trading over 20x ARR have significantly
better SaaS fundamentals (see page 6, right)
>20x
13x - 20x
<13x
62% Rule of 40
59% Revenue Growth
80% Gross Margin
46%
39%
73%
40%
26%
74%
Fundamentals by Revenue Multiple
2
AGC Partners
RETURN TO FUNDAMENTALS
 Over the last ten weeks (see page 7, right), the
stock price performance of the companies with
weaker
fundamentals
have
substantially
underperformed those with
the stronger
fundamentals
 We believe the bifurcation in the valuation
multiples between the “haves” and “have-nots”
in the public and private markets will continue
to expand
 While the headline stock price declines are
alarming, they will have a muted impact on the
private markets for true “A” companies
 The top performing private companies will continue to be able to receive premium valuations given the supply / demand imbalance of the
abundance of available capital compared the scarcity of high quality companies
 Over the last 18 months, some good (not great) companies received great valuations - we expect those valuation multiples to fall
 The bar will be raised for companies deemed to be a “have” – those below will not be able to transact at a compelling valuation
 Additional economic factors also seem to be affecting all SaaS stocks, notably the increase in inflation and interest rates and the
underperformance of the US economy versus forecasts
0% – S&P 500
-40%
-30%
-20%
-10%
0%
(22%) – Stronger
Fundamentals Index
(29%) – SaaS Index
(37%) – Weaker
Fundamentals Index
Performance Since 11/9/2021
11/9/21
12/9/21
1/10/22
AGC Partners
3
THREE C-SUITE CORE PILLARS – MASSIVE TAM AND GROWING NUMBER OF PUBLIC COS
Spend management, financial controls,
budgeting, audit/reporting, tax preparation, T&E
management, procurement, revenue tracking
and planning, compliance reporting
Arrange, track, control and coordinate
business process, reducing redundant tasks
with automation
HR comp, legal and compliance training,
payroll, benefits, staffing
$225B TAM
$170B TAM
$95B TAM
$80B Business Spend Management
$30B AR/AP Software
$25B eSignature
$20B Financial Close
$35B Agile Listing
$13B Budgeting Management
$10.5B Financial Systems
$12B Tax Management
$60B IT Operations
Management Applications
$30B Cloud Content Management
$24B Self-Service Analytics
$36B Collaboration Software
$21B Cloud Based Planning
$29B Workforce Finance
$26B Workforce Analytics
$26B HCM & Payroll
$10B Workforce Product & Planning
CFO Suite
Workflow Management
Workforce Management
Note: TAMs utilize representative public companies’ published TAMs, segmented and by sub-industry.
4
AGC Partners
SAAS COMPANIES – OUTPERFORMING THE S&P 500 DESPITE MASSIVE DROP FROM NOVEMBER 9TH
 The CFO Suite Index is
up 118% over the last
two years, which is the
best performing C-Suite
index, and continues to
outperform the BVP
SaaS index and S&P 500
 The Workflow
Management and
Workforce Management
indices are trading
slightly below the level of
the SaaS index but still
ahead of the S&P 500
51% – Workforce MGT. Index
56% – Workflow MGT. Index
118% – CFO Suite Index
43% – S&P 500
66% – SaaS Index
-50%
0%
50%
100%
150%
200%
250%
Since 1/1/2020
Source: PitchBook, BVP Emerging Cloud Index. Last updated January 10, 2022.
237%
132%
112%
94%
44%
11/9/2021 High
5
AGC Partners
ALL SAAS COMPANIES ARE BEING REPRICED IN THE PUBLIC MARKETS
 The last two months of
2021 saw a massive sell-
off across C-Suite, with
the composite Index
losing more than a third
of its total value. The S&P
500 has been flat
throughout this period.
 The drastic declines in
CFO Suite, Workflow
Management, and
Workforce Management
indices have been driven
largely by stocks with
weak fundamental
financials.
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
Since 11/9/2021
0% – S&P 500
(22%) – Workforce MGT. Index
(29%) – Workflow MGT. Index
(33%) – CFO Suite Index
(28%) – SaaS Index
Source: PitchBook, BVP Emerging Cloud Index. Last updated January 10, 2022.
6
AGC Partners
SAAS VALUATIONS FOR C-SUITE – PUBLIC MARKET REWARDING FUNDAMENTALS
Companies
EV/LTM
Revenue
Multiple
Average
Efficiency
Forward
Revenue
Growth Rate
Gross Margin
FCF Margin
>20x
62%
59%
80%
3%
13-20x
46%
39%
73%
7%
<13x
40%
26%
74%
12%
C-Suite Companies: Bucketed by EV/LTM Revenue
Source: PitchBook, BVP Emerging Cloud Index. Buckets based on EV/LTM revenue multiples on January 7, 2022.
 Despite the selloff, the
markets are rewarding
fundamentally-strong
companies. Higher
efficiency is correlated
with higher multiples.
 When Rule of 40 is
achieved, the market tends
to give more weight to
Revenue Growth vs. FCF
Margin. Companies trading
at greater than 20x
EV/LTM Revenue have an
average forward growth
rate that is more than
double that of companies
trading at less than 13x.
7
AGC Partners
STOCK INDICES PERFORMANCE – COS WITH WEAKER FUNDAMENTALS ARE AFFECTED THE MOST
Since 11/9/2021
0%
-40%
-30%
-20%
-10%
0%
(22%)
(29%)
(37%)
11/9/21
12/9/21
1/10/22
 The SaaS Index’s recent
correction off its all-time high
has left some companies
reeling more than others
 There are 11 C-Suite
companies that satisfy all
three of the following criteria:
 The public market is starting to
put more weight on
fundamentals when valuing
these hot tech companies
✓Efficiency >35%
✓Accelerating Rev. Growth
✓Positive FCF Margin
Those 11 companies are down
22% compared to those with
weaker fundamentals, which
are down 37%
S&P 500
SaaS Index
Stronger Fundamentals Index
Weaker Fundamentals Index
Source: PitchBook, BVP Emerging Cloud Index. Last updated January 10, 2022.
8
AGC Partners
Weaker Fundamentals Index
Company
Efficiency
FCF Margin
Forward
Revenue
Growth Rate
Change in
Revenue
Growth (1)
39%
(31%)
70%
NM
40%
(21%)
61%
(37%)
36%
(13%)
50%
56%
NM
(7%)
NM
NM
146%
(6%)
152%
NM
54%
(4%)
58%
(31%)
42%
(4%)
46%
2%
75%
40%
35%
(82%)
20%
4%
16%
(67%)
67%
33%
34%
(7%)
62%
19%
42%
(4%)
55%
15%
40%
(2%)
22%
7%
15%
(1%)
STRONGER FUNDAMENTALS COMPARED TO WEAKER FUNDAMENTALS
Stronger Fundamentals Index
Company
Efficiency
FCF Margin
Forward
Revenue
Growth Rate
Change in
Revenue
Growth (1)
58%
27%
31%
4%
49%
15%
34%
117%
47%
17%
30%
88%
47%
11%
36%
512%
46%
5%
42%
34%
46%
0%
46%
10%
45%
25%
20%
1%
44%
12%
32%
17%
39%
11%
28%
40%
36%
15%
21%
2%
36%
0%
35%
12%
(1) Percentage change between 2020/19 and 2021/20 YOY revenue growth rates
Source: PitchBook, BVP Emerging Cloud Index
9
AGC Partners
SAAS VALUATIONS FOR C-SUITE
C-Suite: Public Median EV/LTM Revenue
13x
26x
20x
19x
17x
20x
25x
18x
16x
15x
24x
16x
14x
12x
19x
19x
14x
13x
8x
26x
Q2 ’20
Q4 ’19 Q1 ’20
Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Oct ’21 Nov ’21 Dec ’21 Jan ’22
Quarterly
Monthly
Workforce Management Index
Workflow Management Index
CFO Suite Index
SaaS Index
Source: PitchBook
 While fundamental impact
difference are much more
visible within the C-Suite
index’s decline, the
contrast amongst sub-
sectors is much less visible.
 Workforce Management,
trading at 17x,
outperformed Workflow
Management (16x) and
CFO Suite (14x).
 Despite the major sell off
across technology markets
in the last three months of
2021, C-Suite revenue
multiples are still higher
than the broader SaaS
index.
10
AGC Partners
Source: PitchBook, BVP Emerging Cloud Index
SELECTED PUBLIC PLAYERS: CFO SUITE
CFO SUITE
($ in millions)

Rev Growth
Revenue
Company
EV / Rev Multiple
Market Cap(a)
Enterprise Value(a)(b)
Forward
EBITDA Margin
Gross Margin
2021E
13x
$26,897
$26,981
42%
24%
79%
$2,088
51x
20,709
19,731
152%
(17%)
74%
385
9x
11,907
12,146
32%
10%
80%
1,333
30x
11,413
11,325
70%
(43%)
90%
372
16x
10,277
11,244
40%
12%
58%
718
13x
9,493
8,977
42%
1%
71%
688
13x
5,831
5,641
28%
5%
77%
440
13x
5,643
5,594
21%
14%
78%
424
19x
2,621
2,669
36%
42%
51%
142
14x
2,592
3,470
28%
(12%)
60%
245
6x
2,349
2,332
15%
18%
60%
423
6x
1,380
1,325
NM
(0%)
64%
233
MEDIAN
13x
$7,662
$7,309
36%
8%
73%
$423
Notes
(a) Based on closing stock prices on January 10, 2022
(b) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents
2021E Margins
11
AGC Partners
SELECTED PUBLIC PLAYERS: WORKFLOW / COLLABORATION MANAGEMENT
WORKFLOW MANAGEMENT
($ in millions)

Rev Growth
Revenue
Company
EV / Rev Multiple
Market Cap(a)
Enterprise Value(a)(b)
Forward
EBITDA Margin
Gross Margin
2021E
The Trade Desk
19x
$112,712
$111,908
31%
33%
77%
$5,884
33x
76,763
76,416
34%
27%
84%
2,343
11x
51,136
45,815
35%
43%
74%
4,081
Rubicon Project
21x
20,589
18,765
58%
7%
80%
885
42x
12,839
12,989
61%
(64%)
NA
310
14x
7,980
7,620
46%
(5%)
80%
545
11x
6,534
6,267
35%
(4%)
73%
584
13x
5,999
4,673
46%
(1%)
77%
366
8x
3,923
4,165
16%
0%
87%
528
15x
1,846
1,589
50%
(19%)
74%
109
MEDIAN
14x
$10,410
$10,305
41%
(0%)
77%
$565
Notes
(a) Based on closing stock prices on January 10, 2022
(b) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents
2021E Margins
Source: PitchBook, BVP Emerging Cloud Index
12
AGC Partners
SELECTED PUBLIC PLAYERS: WORKFORCE MANAGEMENT
WORKFORCE MANAGEMENT
($ in millions)

Rev Growth
Revenue
Company
EV / Rev Multiple
Market Cap(a)
Enterprise Value(a)(b)
Forward
EBITDA Margin
Gross Margin
2021E
12x
$62,560
$61,140
20%
29%
73%
$5,125
20x
$21,357
$21,156
30%
40%
83%
$1,046
16x
$11,357
$11,362
34%
26%
65%
$723
MEDIAN
16x
$21,357
$21,156
30%
29%
73%
$1,046
Notes
(a) Based on closing stock prices on January 10, 2022
(b) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents
2021E Margins
Source: PitchBook, BVP Emerging Cloud Index