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LinkedIn Valuation

Open Source Model

Pristine has created an integrated valuation model o


publically available information. It is available as an
user. Kindly note that this model is meant for inform

From this sheet you will learn how to create the fullmodel for professional networking company LinkedI
financial statements from scratch to find the equity
analysis for better understanding.

The complete structure of the model and formulas,


open to allow for any modification on the part of the

To download more Open Series spreadhseets please

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Pristine

Valuation

Model

ntegrated valuation model of LinkedIn based on


mation. It is available as an open-source model for any
s model is meant for information purpose only.

earn how to create the full-blown equity valuation


etworking company LinkedIn. The model builds the
m scratch to find the equity value and also uses ratio
standing.

of the model and formulas, linkages etc. have been kept


odification on the part of the user.

Series spreadhseets please visit our website.

4,000,000
Revenue from Hiring Solutions
Revenue from Marketing Solutions
Revenue from Premium Subscriptions
Cash & Cash Equivalents
Stockholders' Equity
Profit Before Taxes

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

FY 08A
(500,000)

FY 09A

FY 10A

FY 10A

LinkedIn Summary
FY 08A
17,352
25,972
35,449
80,495
5,230
(1,012)

FY 09A
36,136
38,278
45,713
89,979
9,082
284

FY 11A

10
101,379
74,176
60,777
104,209
25,971
25,586

FY 12A

11
247,948
121,793
76,157
292,552
208,869
11,966

12
534,411
179,865
85,511
363,043
270,323
93,113

FY 13A

FY 14

FY 13A

13
1,064,633
244,022
96,176
519,900
410,063
211,726

14
1,980,863
316,663
115,485
786,033
656,451
373,316

15
3,508,512
395,491
133,462
1,240,777
1,075,002
634,168

Premium

Subscription

Hiring

Marketing

Cash

Stockholder's

Profit

Solution

Solutions

& Cash Equivalents


Equity

Before Taxes

Revenue from Hiring Solutions


Revenue from Premium
Subscriptions
Cash & Cash Equivalents
Revenue from Marketing
Solutions
Stockholders' Equity
Profit Before Taxes
FY 14A

FY 15A

mium

Solution

keting

Subscription

Solutions

& Cash Equivalents

kholder's

Equity

Before Taxes

Revenue from Hiring Solutions

Revenue from Premium


Subscriptions

Cash & Cash Equivalents

Revenue from Marketing


Solutions

Stockholders' Equity

Profit Before Taxes

FY 08A
1%
-7%
-7%
-2%

EBITDA Margins
EBIT Margins
EBT Margins
20.00%Net Profit Margin
Return on Assets (ROA)
Return on Invested Capital (RoIC)
Return on Stockholder's Equity
Asset Turnover Ratio
15.00%
Average Day's Sales
No. of Days of Receivables
Working Capital Turnover
Current Ratio
10.00%Acid Test Ratio

FY 09A
7%
-3%
-3%
0%

FY 10A
14%
9%
9%
7%

5.00%

0.00%
FY 08A

-5.00%

-10.00%

FY 09A

FY 10A

FY 11A

Ratio A

FY 11A
4%
1%
1%
2%

FY 12A
12%
10%
10%
8%

FY 13A
15%
14%
14%
10%

FY 14A
15%
14%
14%
10%

Ratio Analysis of LinkedIn

FY 11A

FY 12A

FY 13A

FY 15A
15%
15%
15%
10%

FY 14A

FY 15A

Profitability
Return
Activity
Liquidity

Ratios

on Investment Ratios
Ratios
& Solvency Ratio

EBITDA Margins
EBIT Margins
Return on Stockholder's Equity
Working Capital Turnover
FY 15A

Current Ratio
EBT Margins
Net Profit Margin
Return on Assets (ROA)
Return on Invested Capital (RoIC)
Asset Turnover Ratio
Acid Test Ratio

Assumptions
(Unless otherwise specified, all financials are in US $ Thousand)
Income Tax Rate
Balance Sheet Assumptions
Accounts Receivables No. of Days

CAGR

Prepaid Expenses as % of Revenue

Scroll Bar

Other Assets Growth Rate

Actual

Account Payable No. of Days

CAGR

Deferred Revenue as % of Revenue

CAGR

Interest Rates
Interest rate on Cash Balance
Interest rate on Overdraft

FY 07A

4%
6%

FY 08A

FY 09A

10

11

34%

34%

34%

34%

69

74

4000%
72

72

3%

4%

200%
2%

200%
2%

112%

116%

16%

181%

12

15

13

13

19%

21%

20%

20%

4%
6%

4%
6%

4%
6%

4%
6%

12

13

14

15

34%

34%

34%

34%

72

72

0%
72

72

200%
2%

200%
2%

200%
2%

2%

24%

43%

0%
51%

58%

13

14

13

13

20%

20%

0%
20%

20%

4%
6%

4%
6%

4%
6%

4%
6%

Revenue Build-Up
(Unless otherwise specified, all financials are in US $ Thousand)

Quarterly Schedule of Revenue


Number of Registered Members

Growth Rate of Registered Members

LinkedIn Corporate Solutions Customers

Growth Rate of LinkedIn Corporate Solutions Customers

Hiring Solution Revenue


Hiring Charges per Registerd Members

Cents

Maketing Solution Revenue


Marketing charges per Registered Member

Cents

Premium Solution Revenue


Premium Solution charges per Registered Member
Total Revenue per Quarter

Annual Schedule
Yearly Revenue
Hiring Solution Revenue
Maketing Solution Revenue
Premium Solution Revenue
Number of Registered Members
Growth Rate of Registered Members
LinkedIn's Corporate Customers
Growth Rate of Corporate Customers

Cents

31-Mar-09
FY 2009

30-Jun-09
FY 2009

30-Sep-09
FY 2009

31-Dec-09
FY 2009

31-Mar-10
FY 2010

37,355

42,012

48,004

55,111

64,177

12%

14%

15%

16%

1,116

1,260

1,585

1,827

11%

13%

26%

15%

6,277

8,113

9,363

12,383

16,929

623

727

743

781

927

6,103

8,727

8,990

14,458

14,336

16

21

19

26

22

10,862

10,914

11,445

12,492

13,561

29

26

24

23

21

23,242

27,754

29,798

39,333

44,826

FY 2009
36,136
38,278
45,713

FY 2010
101,379
74,176
60,777

FY 2011
247,948
121,793
76,157

FY 2012
534,411
179,865
85,511

FY 2013
1,064,633
244,022
96,176

182,482

306,617
68%

467,093
52%

638,360
37%

801,465
26%

4,969

10,451
110%

20,852
100%

36,531
75%

59,079
62%

1,008

30-Jun-10
FY 2010

30-Sep-10
FY 2010

31-Dec-10
FY 2010

31-Mar-11
FY 2011

30-Jun-11
FY 2011

71,825

80,553

90,062

102,175

111,285

12%

12%

12%

13%

9%

2,306

2,849

3,469

3,859

4,716

26%

24%

22%

11%

22%

21,723

27,274

35,453

42,264

53,871

942

957

1,022

1,095

1,142

18,308

18,836

22,696

25,669

28,887

25

23

25

25

26

14,864

15,682

16,670

17,981

18,711

21

19

19

18

17

54,895

61,792

74,819

85,913

101,469

FY 2014
1,980,863
316,663
115,485

FY 2015
3,508,512
395,491
133,462

962,374
20%

1,112,186
16%

89,211
51%

128,258
44%

30-Sep-11
FY 2011

31-Dec-11
FY 2011

31-Mar-12
FY 2012

30-Jun-12
FY 2012

30-Sep-12
FY 2012

121,469

132,164

145,975

154,612

164,123

9%

9%

10%

6%

6%

5,637

6,640

7,122

8,419

9,727

20%

18%

7%

18%

16%

67,587

84,226

95,359

118,534

144,299

1,199

1,268

1,339

1,408

1,483

31,729

35,508

39,857

43,105

46,583

26

27

27

28

28

19,390

20,076

21,105

21,281

21,488

16

15

14

14

13

118,706

139,810

156,320

182,920

212,369

31-Dec-12
FY 2012

31-Mar-13
FY 2013

30-Jun-13
FY 2013

30-Sep-13
FY 2013

31-Dec-13
FY 2013

173,650

188,324

195,700

203,824

213,617

6%

8%

4%

4%

5%

11,263

11,856

13,778

15,644

17,801

16%

5%

16%

14%

14%

176,220

195,488

239,318

286,377

343,449

1,565

1,649

1,737

1,831

1,929

50,321

55,615

58,938

62,580

66,888

29

30

30

31

31

21,637

22,599

23,484

24,459

25,634

12

12

12

12

12

248,178

273,702

321,740

373,417

435,972

31-Mar-14
FY 2014

30-Jun-14
FY 2014

30-Sep-14
FY 2014

31-Dec-14
FY 2014

31-Mar-15
FY 2015

229,532

236,227

243,672

252,943

269,258

7%

3%

3%

4%

6%

18,382

20,995

23,419

26,415

27,014

3%

14%

12%

13%

2%

373,736

449,816

528,774

628,536

677,383

2,033

2,142

2,258

2,379

2,508

73,277

76,898

80,879

85,609

92,920

32

33

33

34

35

27,544

28,347

29,241

30,353

32,311

12

12

12

12

12

474,557

555,062

638,894

744,498

802,613

30-Jun-15
FY 2015

30-Sep-15
FY 2015

31-Dec-15
FY 2015

274,419

280,323

288,186

2%

2%

3%

30,584

33,809

36,851

13%

11%

9%

808,179

941,498

1,081,452

2,642

2,785

2,935

96,562

100,578

105,431

35

36

37

32,930

33,639

34,582

12

12

12

937,672

1,075,714

1,221,466

Cost Build-Up
(Unless otherwise specified, all financials are in US $ Thousand)

Cost of Revenue
Cost of Revenue as % of Total Revenue
Sales and Marketing
Sales & Marketing as % of Total Revenue
Product Development
Product Development Cost as % of Total Revenue
General and Administrative
General & Administrative as % of Total Revenue
Depreciation and Amortization
Depreciation & Amortization as % of Total Revenue

Stock Based Compensation Included in:


Cost of Revenue

$ US

Sales and Marketing

$ US

Product Development

$ US

General and Administrative

$ US

Yearly Cost
Cost of Revenue
Sales and Marketing
Product Development
General and Administrative

31-Mar-09
FY 2009

30-Jun-09
FY 2009

30-Sep-09
FY 2009

31-Dec-09
FY 2009

31-Mar-10
FY 2010

5,597
24%

6,025
22%

6,399
21%

7,836
20%

8,305
19%

5,331
23%

5,936
21%

6,310
21%

9,270
24%

10,454
23%

8,547
37%

8,747
32%

10,013
34%

12,137
31%

12,141
27%

3,908
17%

4,042
15%

4,881
16%

6,649
17%

6,672
15%

2,499
11%

2,788
10%

3,112
10%

3,455
9%

3,940
9%

79

74

75

142

89

161

137

160

199

250

519

546

581

700

690

668

619

687

805

905

FY 2009
25,857
26,847
39,444
19,480

FY 2010
45,245
55,460
67,094
34,999

FY 2011
92,524
114,735
141,390
79,044

FY 2012
153,248
189,969
237,748
125,266

FY 2013
257,428
324,711
407,025
210,556

30-Jun-10
FY 2010

30-Sep-10
FY 2010

31-Dec-10
FY 2010

31-Mar-11
FY 2011

30-Jun-11
FY 2011

9,842
18%

11,835
19%

15,263
20%

17,933
21%

21,059
21%

13,055
24%

14,831
24%

17,120
23%

21,370
25%

25,745
25%

14,822
27%

17,188
28%

22,943
31%

27,313
32%

32,299
32%

7,667
14%

9,092
15%

11,568
15%

14,835
17%

17,913
18%

4,201
8%

4,845
8%

90

122

277

317

675

790

913

1,002

FY 2014
448,826
563,285
675,544
367,933

FY 2015
746,115
937,669
1,140,086
610,454

30-Sep-11
FY 2011

31-Dec-11
FY 2011

31-Mar-12
FY 2012

30-Jun-12
FY 2012

30-Sep-12
FY 2012

24,514
21%

29,018
21%

29,816
19%

35,189
19%

40,879
19%

30,830
26%

36,791
26%

37,114
24%

43,420
24%

50,330
24%

37,485
32%

44,293
32%

45,860
29%

54,275
30%

63,576
30%

21,172
18%

25,123
18%

24,089
15%

28,565
16%

33,437
16%

31-Dec-12
FY 2012

31-Mar-13
FY 2013

30-Jun-13
FY 2013

30-Sep-13
FY 2013

31-Dec-13
FY 2013

47,364
19%

51,536
19%

59,697
19%

68,166
18%

78,028
18%

59,106
24%

64,771
24%

75,354
23%

86,096
23%

98,490
23%

74,037
30%

80,886
30%

94,035
29%

107,884
29%

124,220
28%

39,176
16%

42,625
16%

49,150
15%

55,679
15%

63,102
14%

31-Mar-14
FY 2014

30-Jun-14
FY 2014

30-Sep-14
FY 2014

31-Dec-14
FY 2014

31-Mar-15
FY 2015

88,883
19%

103,558
19%

118,659
19%

137,727
18%

148,100
18%

111,172
23%

129,785
23%

149,097
23%

173,232
23%

186,300
23%

134,641
28%

156,451
28%

178,483
28%

205,968
28%

227,909
28%

72,797
15%

84,928
15%

97,350
15%

112,858
15%

121,192
15%

30-Jun-15
FY 2015

30-Sep-15
FY 2015

31-Dec-15
FY 2015

172,884
18%

198,616
18%

226,515
19%

217,369
23%

249,562
23%

284,438
23%

265,146
28%

303,237
28%

343,794
28%

141,349
15%

162,409
15%

185,504
15%

Assets Schedule
Estimated Life of Computer Equipment
Estimated Life of Software
Estimated Life of Web Dev. & Internal-Use Software
Estimated Life of Furniture & Fixtures
Estimated Life of Leasehold Improvements
(Unless otherwise specified, all financials are in US $ Thousand)
Property & Equipments
Computer Equipment
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Software
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Capitalized Website Development & Internal-Use Software
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Furniture & Fixtures
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Leasehold Improvements
Opening Balance
Addition of Asset
Removal of Asset
Closing Balance
Accumulated Depreciation
Net
Total Gross Assets
Accumulated Depreciation

Years
Years
Years
Years
Years

1.5
2.5
2.0
4.5
2.0

Depreciation Expense
Computer Equipment
Software
Capitalized Website Development & Internal-Use Software
Furniture & Fixtures
Leasehold Improvements
Total Depreciation Expense
Intangible Assets
Patents
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net Patents
Developed Technology
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Non-Compete Agreements
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Workforce in Place
Opening Balance-Gross
Addition of Asset
Removal of Asset
Closing Balance-Gross
Accumulated Amortization
Net
Amortization Expense
Patents
Developed Technology
Non-Compete Agreements
Workforce
Total Amortization Expense
Total Intangible Assets
Amortization

FY 07A

FY 08A

FY 09A

10

11

12

19,699
5,976
13,723

19,699
9,479
29,178
13,927
15,251

29,178
8,312
37,490
21,781
15,709

37,490
8,723
46,213
29,925
16,288

46,213
7,673
53,886
37,912
15,974

4,708
1,428
3,280

4,708
1,915
6,623
2,658
3,965

6,623
1,927
8,550
3,836
4,714

8,550
1,985
10,535
5,176
5,359

10,535
1,749
12,285
6,598
5,687

4,625
1,402
3,223

4,625
2,568
7,193
2,964
4,229

7,193
2,000
9,193
4,521
4,672

9,193
2,000
11,193
6,189
5,004

11,193
2,000
13,193
7,940
5,253

1,144
346
798

1,144
221
1,365
472
893

1,365
500
1,865
627
1,238

1,865
500
2,365
820
1,545

2,365
500
2,865
1,047
1,818

1,006
306
700

1,006
1,169
2,175
783
1,392

2,175
2,175
1,131
1,044

2,175
2,175
1,392
783

2,175
2,175
1,588
587

31,182
9,458

46,534
20,804

59,273
31,897

72,482
43,503

84,404
55,085

628

7,951
1,230
1,562
126
477
11,346

7,854
1,178
1,557
155
348
11,093

8,144
1,340
1,668
193
261
11,606

7,987
1,422
1,751
227
196
11,583

628
628
122
506

628
628
331
297

628
628
541
87

628
628
628
-

628
628
628
-

2,206
2,206
267
1,939

2,206
2,206
1,129
1,077

2,206
2,206
1,991
215

424
424
67
357

424
424
298
126

424
424
424
-

3,259
3,259
426
2,833

3,259
3,259
2,045
1,214

3,259
3,259
3,259
-

122
122

209
209

210
267
67
426
970

87
862
231
1,619
2,799

862
126
1,214
2,202

628
122

628
331

6,517
1,301

6,517
4,100

6,517
6,302

13

14

15

53,886
6,394
60,280
45,368
14,912

60,280
5,730
66,010
52,249
13,761

66,010
4,915
70,925
58,474
12,451

12,285
1,458
13,742
8,027
5,716

13,742
1,306
15,049
9,431
5,618

15,049
1,120
16,169
10,779
5,390

13,193
2,000
15,193
9,753
5,440

15,193
2,000
17,193
11,613
5,580

17,193
2,000
19,193
13,508
5,685

2,865
100
2,965
1,260
1,705

2,965
100
3,065
1,461
1,604

3,065
100
3,165
1,650
1,515

2,175
2,175
1,735
440

2,175
2,175
1,845
330

2,175
2,175
1,927
248

94,356
66,143

103,492
76,599

111,628
86,339

7,456
1,429
1,813
213
147
11,058

6,881
1,404
1,860
201
110
10,456

6,225
1,348
1,895
189
83
9,740

628
628
628
-

628
628
628
-

628
628
628
-

2,206
2,206
2,206
-

2,206
2,206
2,206
-

2,206
2,206
2,206
-

424
424
424
-

424
424
424
-

424
424
424
-

3,259
3,259
3,259
-

3,259
3,259
3,259
-

3,259
3,259
3,259
-

215
215

6,517
6,517

6,517
6,517

6,517
6,517

DuPont Analysis
Sales
236,332
Cost of Sales

Earnings Available

45,015

13,003

Income Statement

Operating Expense

divided by

169,615
Interest Expense

Sales
-

236,332

Tax Expense
8,699
Others
-

Sales
236,332
Current Assets
158,414

divided by

+
Net Fixed Assets (PPE)

Total Assets

Balance Sheet

32,592

191,006

Total Liabilities
77,054
Current Liabilities
76,526

+
Long Term Debt
528

Stockholder Equity
(SE)
113,952

ont Analysis

Net Profit Margin


5.5%

multiplied by

Return on Total Assets (ROA)


6.8%

Total Asset Turnover


1.24

multiplied by

Total Liab + SE = Total


Assets
191,006

divided by

Financial Leverage multiplier


1.68

Common stock equity


113,952

Return on Common
Equity (ROE)
11.4%

Income Statements
(Unless otherwise specified, all financials are in US $ Thousand)
Revenue
Hiring Solutions
Marketing Solutions
Premium Subscriptions
Total Revenue
Interest Income
Other Income
Total Income
Expenses
Cost of Revenue
Sales and Marketing
Product Development
General and Administrative
Depreciation and Amortization
Total Expenses
Profit Before Tax
Provision for Income Taxes
Profit After Tax
Undistributed Earnings Allocated to Preferred SH
Balance Transfer to Balance Sheet

FY 07A

FY 08A

FY 09A

10

11

12

7,467
7,780
17,239
32,486

17,352
25,972
35,449
78,773

36,136
38,278
45,713
120,127

101,379
74,176
60,777
236,332

247,948
121,793
76,157
445,898

534,411
179,865
85,511
799,787

773

3,220
1,277

3,409
230

3,884
230

7,935
230

13,112
230

33,259

83,270

123,766

240,446

454,063

813,129

7,384
5,037
11,578
6,812
2,107
32,918

18,589
16,986
29,366
12,976
6,365
84,282

25,857
26,847
39,444
19,480
11,854
123,482

45,245
55,460
67,094
34,999
12,063
214,860

92,524
114,735
141,390
79,044
14,405
442,098

153,248
189,969
237,748
125,266
13,785
720,016

341

(1,012)

284

25,586

11,966

93,113

13

290

848

8,699

4,068

31,658

328

(1,302)

(564)

16,886

7,897

61,454

328

(1,302)

(564)

16,886

7,897

61,454

13

14

15

1,064,633
244,022
96,176
1,404,831

1,980,863
316,663
115,485
2,413,011

3,508,512
395,491
133,462
4,037,465

17,659
230

26,119
230

40,536
230

1,422,719

2,439,360

4,078,231

257,428
324,711
407,025
210,556
11,273
1,210,993

448,826
563,285
675,544
367,933
10,456
2,066,044

746,115
937,669
1,140,086
610,454
9,740
3,444,063

211,726

373,316

634,168

71,987

126,927

215,617

139,739

246,388

418,551

139,739

246,388

418,551

Over Draft
(Unless otherwise specified, all financials are in US $ Thousand)
Cash/Overdraft
Interest rate on Cash Balance
Interest rate on Overdraft
Interest Earned/Expensed

FY 07A

FY 08A

FY 09A

10

11

80,495

89,979

104,209

292,552

4%
6%

4%
6%

4%
6%

4%
6%

3,220

3,409

3,884

7,935

12

13

14

15

363,043

519,900

786,033

1,240,777

4%
6%

4%
6%

4%
6%

4%
6%

13,112

17,659

26,119

40,536

Stockholders
(Unless otherwise specified, all financials are in US $ Thousand)
No. of Shares
Reedemable Convertible Preferred Stock
Opening Balance
Series C
Series D
Clossing Balance
Convertible Preferred Stock
Opening Balance
Series A
Series B
Clossing Balance
Common Stock
Opening Balance
Issuance of Common Stock
Repurchase
Clossing Balance
Amount
Reedemable Convertible Preferred Stock
Series C
Opening Balance
Addition during the year
Removal during the year
Closing Balance
Series D
Opening Balance
Addition during the year
Removal during the year
Closing Balance
Convertible Preferred Stock
Opening Balance
Series A
Series B
Clossing Balance
Warrants
Common Stock
Opening Balance
Issuance of Common Stock
Repurchase
Clossing Balance

Additional Paid in Capital


Opening Balance
Issuance of Common Stock
Vesting Early Excercised Stock Options
Repurchase
Stock Based Compensation
Clossing Balance
Accumulated Other (Income) Loss
Accumulated Deficit
Opening Balance
Cummulative Effect of Accounting Change
Net Income
Closing Balance
Closing Balance

FY 07A

FY 08A

FY 09A

FY 10A

FY 11A

FY 12A

4,357,644
4,357,644

4,357,644
6,599,987
10,957,631

10,957,631
10,957,631

10,957,631
10,957,631

10,957,631
10,957,631

10,957,631
10,957,631

17,168,214
17,450,991
34,619,205

34,619,205
34,619,205

34,619,205
34,619,205

34,619,205
34,619,205

34,619,205
34,619,205

34,619,205
34,619,205

34,779,864
8,286,424
649,030
42,417,258

42,417,258
1,048,310
1,552,467
41,913,101

41,913,101
1,704,436
1,871,809
41,745,728

41,745,728
1,095,356
42,841,084

42,841,084
42,841,084

42,841,084
42,841,084

(100)
12,800
12,700

12,700
12,700

12,700
12,700

12,700
12,700

12,700
12,700

12,700
12,700

75,281
75,281

75,281
75,281

75,281
75,281

75,281
75,281

75,281
75,281

15,413
15,413

15,413
15,413

15,413
15,413

15,413
15,413

15,413
15,413

15,413
15,413

15

15

3
3

3
3

3
1
4

4
4

4
175,000
175,004

175,004
175,004

292
327
133
1,840
2,592

2,592
778
913
3,197
4,692
5,778

5,778
1,083
792
198
6,270
13,725

13,725
13,725

13,725
13,725

13,725
13,725

(23)

(3)

(11,762)
328
(11,434)

(11,434)
(3,220)
(1,302)
(15,956)

(15,956)
(3,537)
(564)
(20,057)

(20,057)
16,886
(3,171)

(3,171)
7,897
4,727

4,727
61,454
66,181

6,589

5,230

9,082

25,971

208,869

270,323

FY 13A

FY 14A

FY 15A

10,957,631
10,957,631

10,957,631
10,957,631

10,957,631
10,957,631

34,619,205
34,619,205

34,619,205
34,619,205

34,619,205
34,619,205

42,841,084
42,841,084

42,841,084
42,841,084

42,841,084
42,841,084

12,700
12,700

12,700
12,700

12,700
12,700

75,281
75,281

75,281
75,281

75,281
75,281

15,413
15,413

15,413
15,413

15,413
15,413

175,004
175,004

175,004
175,004

175,004
175,004

13,725
13,725

13,725
13,725

13,725
13,725

66,181
139,739
205,921

205,921
246,388
452,309

452,309
418,551
870,860

410,063

656,451

1,075,002

Balance Sheet
(Unless otherwise specified, all financials are in US $ Thousand)
Assets
Fixed Assets
Gross Block
Less: Accumulated Depreciation
Net Block
Intangible Assets
Gross Block
Less: Accumulated Amortization
Net Block
Total Fixed Assets
Current Assets & Loans and Advances
Cash & Cash Equivalents
Accounts Receivables
Prepaid Expenses and Other Current Assets
Restricted Cash
Income Tax Receivables
Deferred Income Taxes
Other Assets
Total Current Asstes
Total Assets
Liabilities
Current Liabilities
Overdraft
Accounts Payable
Accrued Liabilities
Deferred Revenue
Income Tax Payable
Deferred Tax Liabilities
Total Current Liabilities
Long Term Liabilities
Total Liabilities
Net Worth
Redeemable Convertible Preferred Stock
Series C
Series D
Total RCPS
Stockholders Equity
Convertible Preferred Stock

Warrants Issued
Common Stock
Additional Paid in Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
Total Stockholders Equity
Total Net Worth
Total Net Worth & Liabilities
Check

FY 07A

12,700
12,700

FY 08A

FY 09A

10

11

12

31,182
9,458
21,724

46,534
20,804
25,730

59,273
31,897
27,376

72,482
43,503
28,979

84,404
55,085
29,319

628
122
506

628
331
297

6,517
1,301
5,216

6,517
4,100
2,417

6,517
6,302
215

22,230

26,027

32,592

31,396

29,534

80,495
14,987
2,718
218
62
731
621
99,832

89,979
24,324
5,160
1,695
1,374
122,532

104,209
46,409
4,727
1,695
1,374
158,414

292,552
87,561
8,918
1,695
1,374
392,100

363,043
157,055
15,996
1,695
1,374
539,163

122,062

148,559

191,006

423,496

568,697

2,510
10,224
14,858
133
731
28,456

4,919
18,352
25,450
552
1,695
50,968

8,604
18,352
47,323
552
1,695
76,526

16,233
18,352
89,286
552
1,695
126,118

29,117
18,352
160,148
552
1,695
209,864

395

528

528

528

528

28,851

51,496

77,054

126,646

210,392

12,700
75,281
87,981

12,700
75,281
87,981

12,700
75,281
87,981

12,700
75,281
87,981

12,700
75,281
87,981

15,413

15,413

15,413

15,413

15,413

15
3
5,778
(23)
(15,956)
5,230

4
13,725
(3)
(20,057)
9,082

4
13,725
(3,171)
25,971

175,004
13,725
4,727
208,869

175,004
13,725
66,181
270,323

93,211

97,063

113,952

296,850

358,304

122,062

148,559

191,006

423,496

568,697

13

14

15

94,356
66,143
28,212

103,492
76,599
26,893

111,628
86,339
25,289

6,517
6,517
-

6,517
6,517
-

6,517
6,517
-

28,212

26,893

25,289

519,900
278,015
28,097
1,695
1,374
829,080

786,033
474,767
48,260
1,695
1,374
1,312,129

1,240,777
794,768
80,749
1,695
1,374
2,119,364

857,293

1,339,023

2,144,652

52,740
18,352
285,382
552
1,695
358,721

88,533
18,352
484,930
552
1,695
594,062

148,421
18,352
812,122
552
1,695
981,141

528

528

528

359,249

594,590

981,669

12,700
75,281
87,981

12,700
75,281
87,981

12,700
75,281
87,981

15,413

15,413

15,413

175,004
13,725
205,921
410,063

175,004
13,725
452,309
656,451

175,004
13,725
870,860
1,075,002

498,044

744,432

1,162,983

857,293

1,339,023

2,144,652

Cashflow Statement
(Unless otherwise specified, all financials are in US $ Thousand)
Cashflow from Operations
PAT
Add: Depreciation
Add: Amortization
Less: Increase in Accounts Receivables
Less: Increase in Other Current Assets
Less: Increase in Restricted Cash
Less: Increase in Income Tax Receivables
Less: Increase in Deferred Income Taxes
Less: Increase in Other Assets
Add: Increase in Accounts Payable
Add: Increase in Accrued Liabilities
Add: Increase in Deferred Revenue
Add: Increase in Income Tax Payable
Add: Increase in Deferred Tax Liabilities
Net Cashflow from Operations
Cashflow from Investment Activities
Less: Increase in Gross Block(Fixed Assets)
Less: Increase in Gross Block(Intangible Assets)
Net Cashflow from Investment Activities
Cashflow from Financing Activities
Add: Increse in Long Term Liabilities
Add: Increase in RCPS Series C
Add: Increase in RCPS Series D
Add: Increase in Convertible Preferred Stock Series A
Add: Increase in Warrants Issued
Add: Increase in Common Stock
Add: Increase in Additional Paid in Capital
Add: Increase in Accumulated Other Comprehensive Loss
Add: Increase in Accumulated Deficit
Net Cashflow from Financing Activities
Net Change in Cash

Opening Cash Balance


Net Cashflow
Closing Cash Balance
Cash Balance in Balance Sheet
Check

FY 07A

FY 08A

80,495

FY 09A

10

11

12

(564)
11,346
209
(9,337)
(2,442)
218
62
(964)
(753)
2,409
8,128
10,592
419
964
20,287

16,886
11,093
970
(22,085)
433
3,685
21,873
32,856

7,897
11,606
2,799
(41,153)
(4,191)
7,629
41,963
26,551

61,454
11,583
2,202
(69,493)
(7,078)
12,884
70,862
82,414

(15,352)
(15,352)

(12,739)
(5,889)
(18,628)

(13,208)
(13,208)

(11,922)
(11,922)

133
(15)
1
7,947
20
(3,537)
4,549

3
3

175,000
175,000

9,484

14,230

188,342

70,491

80,495
9,484
89,979

89,979
14,230
104,209

104,209
188,342
292,552

292,552
70,491
363,043

89,979

104,209

292,552

363,043

13

14

15

139,739
11,058
215
(120,960)
(12,101)
23,623
125,234
166,808

246,388
10,456
(196,752)
(20,164)
35,794
199,548
275,270

418,551
9,740
(320,002)
(32,489)
59,888
327,191
462,879

(9,952)
(9,952)

(9,137)
(9,137)

(8,135)
(8,135)

156,856

266,134

454,743

363,043
156,856
519,900

519,900
266,134
786,033

786,033
454,743
1,240,777

519,900

786,033

1,240,777

Ratios & Valuations

(Unless otherwise specified, all financials are in US $ Thousand)


Profitability Ratios
EBITDA Margins
EBIT Margins
EBT Margins
Net Profit Margin
Return on Investment Ratios
Return on Assets (ROA)
Return on Invested Capital (RoIC)
Return on Stockholder's Equity
Activity Ratios
Asset Turnover Ratio
Average Day's Sales
No. of Days of Receivables
Working Capital Turnover
Solvency and Leverage Ratios
Current Ratio
Acid Test Ratio

FY 07A

FY 08A

FY 09A

10

11

12

5%

1%

7%

14%

4%

12%

-1%

-7%

-3%

9%

1%

10%

-1%

-7%

-3%

9%

1%

10%

1%

-2%

0%

7%

2%

8%

-1%

0%

9%

2%

11%

-1%

0%

22%

4%

26%

-1%

-1%

15%

3%

17%

0.65

0.81

1.24

1.05

1.41

216

329

647

1222

2191

69

74

72

72

72

1.10

1.68

2.89

1.68

2.43

3.51

2.40

2.07

3.11

2.57

3.36

2.24

1.97

3.01

2.48

13

14

15

15%

15%

15%

14%

14%

15%

14%

14%

15%

10%

10%

10%

16%

18%

20%

42%

50%

55%

28%

33%

36%

1.64

1.80

1.88

3849

6611

11062

72

72

72

2.99

3.36

3.55

2.31

2.21

2.16

2.22

2.12

2.07

Valuation Sheet
Risk Free Rate
Market Risk Premium
Beta
Cost of Equity
Tax Rate
Terminal Growth Rate
No of Shares Outstanding
Tax Rate

%
%
%
%
%
Thousands
%

(Unless otherwise specified, all financials are in US $ Thousand)


Free Cash Flow Calculation
Profit After Tax
Add: Depreciation & Amortization
Add: Interest*(1-Tax Rate)
Less: Increase in Working Capital
Increase in Accounts Receivables
Increase in Prepaid Expenses and Other Current Assets
Increase in Restricted Cash
Increase in Income Tax Receivables
Increase in Deferred Income Taxes
Increase in Other Assets
Decrease in Accounts Payable
Decrease in Accrued Liabilities
Decrease in Deferred Revenue
Decrease in Income Tax Payable
Decrease in Deferred Tax Liabilities
Less: Fixed Investments
Free Cash Flow to the Firm
Less: Interest*(1-Tax)
Add: Net Borrowings
Free Cash Flow to the Equity (FCFE)
Present Value of FCFE
Terminal Value of FCFE
Total Free Cash Flow to Equity
Value Per share

$ US

4.67%
5%
1.368
12%
34%
3%
87,884
34%
FY 07A

FY 08A

FY 09A

10

11

(1,302)
6,365
(2,125)

(564)
11,854
(2,250)

16,886
12,063
(2,563)

7,897
14,405
(5,237)

9,337
2,442
(218)
(62)
964
753
(2,409)
(8,128)
(10,592)
(419)
(964)
15,352
3,109

22,085
(433)
(3,685)
(21,873)
18,628
11,664

41,153
4,191
(7,629)
(41,963)
13,208
8,105

(2,250)
133
5,493

(2,563)
14,227

(5,237)
13,342

(2,125)

678,865
2,456,246
3,135,110
36

12

13

14

15

61,454
13,785
(8,654)

139,739
11,273
(11,655)

246,388
10,456
(17,238)

418,551
9,740
(26,754)

69,493
7,078
(12,884)
(70,862)
11,922
61,838

120,960
12,101
(23,623)
(125,234)
9,952
145,201

196,752
20,164
(35,794)
(199,548)
9,137
248,895

320,002
32,489
(59,888)
(327,191)
8,135
427,990

(8,654)
70,491

(11,655)
156,856

(17,238)
266,134

(26,754)
454,743

Comparable Valuation
EBITDA
Profit after Tax (PAT)
Book Value of Equity
Debt
Cash and Equivalents

(Unless otherwise specified, all financials are in US $ Thousand)

Peer Group Company


Google
EBAY
Amazon
Baidu
Oracle
Mean
Median

Valuation on the basis of:

Mean

FY10E EV/EBITDA
FY11E EV/EBITDA

Valuation on the basis of:

Mean

FY10E P/E
FY11E P/E
Valuation on the basis of:
FY10E P/BV
FY11E P/BV

Mean

FY 07A

FY 08A

FY 09A

10

11

12

1,675
328

856
(1,302)
93,211
395
80,495

8,499
(564)
97,063
528
89,979

33,535
16,886
113,952
528
104,209

18,205
7,897
296,850
528
292,552

93,556
61,454
358,304
528
363,043

P/ E (x)
FY12E
22.5x
23.1x
71.4x
76.9x
23.8x
43.5
23.8

FY13E
21.5x
22.1x
70.4x
75.9x
22.8x
42.5
22.8

Multiple (x)
27.7x
26.7x

EBITDA
93,556
205,111

Multiple (x)
43.5x
42.5x

EPS

Multiple (x)
5.9x
5.4x

BVPS

P/BV(x)
FY12E

3.78
2.27
11.53
32.1
4.35
5.9x
3.8x

EV
2,593,733
5,481,375

0.70
1.59

Share Price
30
68

4.08
6

Share Price
24
30

Share Price as pe
Min
EV/ EBITDA (x) Mul
30.7
P/E (x) Multiple
30.4
P/BV (x) Multiple
23.9
Price from Discounted Cash Flow

Max
65.7
67.6
30.4

FY13E
3.3x
1.8x
11.0x
31.6x
3.9x
5.4x
3.3x

Net Debt
(103,681)
(292,024)

Diff
35.0
37.2
6.5
35.7

EV/ EBITDA (x)


FY12E

13.01
12.24
40.59
61.2
11.58
27.7x
13.0x

Mkt Cap
2,697,415
5,773,399

13

14

15

205,111
139,739
498,044
528
519,900

357,423
246,388
744,432
528
786,033

603,142
418,551
1,162,983
528
1,240,777

EV/ EBITDA (x)


FY13E
12.0x
11.2x
39.6x
60.2x
10.6x
26.7x
12.0x

Share Price
31
66

23.9

P/BV (x) Multiple

30.4

P/E (x) Multiple

EV/ EBITDA (x) Multiple

30.7

10.0

20.0

30.0

Football Field

23.9

20.0

30.4

30.4

30.0

40.0

50.0

Share Price

60.0

67.6

65.7

60.0

70.0

80.0

90.0

100.0

67.6

5.7

100.0

110.0

This open source financial model is for information purposes only. Due efforts have been taken by Pristine and its employe
this model to ensure that the information is accurate to the best of their knowledge and belief. The primary source of inform
report has been the S-1 filing of the company with SEC. Pristine, makes no representations or warranties regarding the acc
completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions

The analysts who compiled this open source financial model hereby state that the contents in the document reflect his/her/
opinions on the subject matter. Pristine, and its employees/ analysts do conduct trainings and from time to time to seek est
financial relationships with companies covered in the open research models. As a result, investors should be aware that Pr
individuals may have conflicts of interests that could affect the objectivity of this report.

Neev Knowledge Management www.edupristine.com


info@edupristine.com

Pristine is India's largest authorized training provider for CFA, FRM, PRM and Financial Modeling. It has conducted mor
hours of finance trainings for individuals and corporates in all the major Indian cities and outside India.

aken by Pristine and its employees in preparation of


lief. The primary source of information contained in the
ns or warranties regarding the accuracy or
such information or on omissions there from.

s in the document reflect his/her/their views and


and from time to time to seek establish business or
nvestors should be aware that Pristine and/or such

Neev Knowledge Management - Pristine


ww.edupristine.com
fo@edupristine.com

l Modeling. It has conducted more than 300,000+ manutside India.

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