Piper Sandler Companies · NYSE:PIPR

Piper Sandler Companies — Piper Jaffray — Q1 2017 Earnings Presentation

12 slides from Piper Sandler Companies's earnings presentation, May 2017

  1. Slide 1: Cybersecurity Earnings Update

    PiperJaffray. REALIZE THE POWER OF PARTNERSHIP’ Piper Jaffray Cybersecurity Earnings Update Marc Steifman Greg Klancher Co-Head of Technology Principal Investment Banking Piper Jaffray & Co. Piper Jaffray & Co. MINNEAPOLIS | BOSTON | CHICAGO| HOUSTON| LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO

  2. Slide 2: Revenue Growth Picked Back Up in Q1; Q2 Guidance In-Line with Street Expectations

    Revenue Growth Picked Back Up in Q1; Q2 Guidance In-Line with Street Expectations Year-over-Year Revenue Growth – Post Q1 2017 Earnings Quarter-over-Quarter Revenue Growth – Post Q1 2017 Earnings 20.0% 10.0% 17.4% 8.4% 8.0% 18.0% 16.0% 8.0% 16.0% 14.2% 14.0% 14.0% 6.0% 4.7% 11.5% 4.2% 12.0% 11.1% 4.

  3. Slide 3: Q1 Revenues Were Better Than Street Expectations; Q2 Guidance In-Line

    Q1 Revenues Were Better Than Street Expectations; Q2 Guidance In-Line with Accelerated Growth from Q1 T+1 Percent 1Q17 Q/Q Revenue 1Q17 Y/Y Revenue 1Q17 Actual vs. CQ2E QoQ Growth CQ2E YoY Growth CQ2E Guidance vs. CY17 YoY Growth CY17 Guidance vs. Reaction 1Q17 Ticker Company 1Q17 Earnings Date grow

  4. Slide 4: Top Performing Security Stocks Performance

    Top Performing Security Stocks Performance Year to Date Stock Price Change % of 52-Week High RPD 52.8% CHKP 99.5% MIME 50.1% SOPH 99.0% MOBL 46.7% SPLK 98.7% SOPH 39.9% MIME 98.6% OKTA 39.6% QLYS 98.4% QLYS 37.9% FTNT 97.9% FTNT 34.3% PFPT 97.8% SYMC 33.9% VRNS 96.8% FEYE 33.6% ZIXI 96.5% SPLK 33.5%

  5. Slide 5: Companies with High Quality Financial Models Continue to Trade at Premium Valuations

    Companies with High Quality Financial Models Continue to Trade at Premium Valuations Enterprise Value / LTM Revenue Multiple Stock Price Index LTM 10.00x 80% 9.00x 70% 8.00x 60% 7.00x 50% 40% 6.00x 30% 5.00x 20% 4.00x 10% 3.00x 0% 2.00x -10% 1.00x -20% Revenue Growth + FCF Revenue Growth + FCF Reven

  6. Slide 6: Public Company Valuations

    Public Company Valuations (in millions) Price Equity Enterprise Revenue Revenue Growth EBITDA Margin FCF Margin TEV / Revenue TEV / EBITDA TEV / FCF P/E Company 5/15/2017 Value Cash Debt Value CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 Revenue Growth + FCF Margin

  7. Slide 7: 2017E EV / Revenue

    2017 “Rule of 40” – 2017E Revenue Growth + 2017E FCF Margin 10.0x AVG EV/Rev 2.5x 9.0x CHKP AVG Rev Growth + FCF Margin 7.8% 8.0x PFPT SPLK y = 8.7634x + 1.5648 7.0x R² = 0.6509 QLYS 2017E EV / Revenue 6.0x MIME CYBR PANW 5.0x SYMC VRNS ZIXI 4.0x IMPV FTNT RPD SOPH 3.0x CUDA VDSI ABT MOBL 2.0x SCWX

  8. Slide 8: 2017E EV / Revenue

    2017 Rule of 40 vs. 2016 Rule of 40 one year ago 10.0x AVG EV/Rev AVG EV/Rev 2.5x 4.0x 9.0x CHKP AVG Rev Growth + FCF Margin AVG Rev Growth + FCF Margin 7.8% 30.6% 8.0x PFPT CHKP y = 5.8927x + 1.617 Largest Movers in LTM SPLK R² = 0.634 7.0x y = 8.7634x + 1.5648 5/15/2017 5/15/2016 Change MIME 6.1x

  9. Slide 9: Precedent Transactions – Security

    Precedent Transactions – Security ($ in millions) Transaction Multiples Transaction Values Revenue EBITDA Announced Target Acquirer Equity Enterprise LTM NTM LTM NTM 5/11/17 Conjur CyberArk Software Ltd. $42 $42 NA NA NA NA 5/11/17 Digital Assurance F-Secure Oyj NA NA NA NA NA NA 4/25/17 TeleSign Co

  10. Slide 10: Precedent Transactions – Security (Cont’d)

    Precedent Transactions – Security (Cont’d) ($ in millions) Transaction Multiples Transaction Values Revenue EBITDA Announced Target Acquirer Equity Enterprise LTM NTM LTM NTM 6/12/16 Blue Coat, Inc. Symantec Corporation $3,073 $4,722 7.9x NA NM NA 6/7/16 AccelOps, Inc. Fortinet, Inc. $28 $32 NA NA N

  11. Slide 11: Private Placements – Security

    Private Placements – Security ($ in millions) Transaction Announced Target/Issuer Value Investors Business Description [Target/Issuer] 5/17/2017 CrowdStrike, Inc. 100.00 Accel Partners; CapitalG; Warburg Pincus; March Capital Partners; Telstra Develops malware protection, threat intelligence, and re

  12. Slide 12: Private Placements – Security (Cont’d)

    Private Placements – Security (Cont’d) ($ in millions) Transaction Announced Target/Issuer Value Investors Business Description [Target/Issuer] 7/25/2016 StackPath, LLC 180.00 ABRY Partners, LLC Develops cyber security solutions 7/19/2016 GuardiCore Ltd. 20.00 Battery Ventures; 83 North; Cisco Inves

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