NRF 2017 call to action - Personalization Overview Nov'16
- 1. CONFIDENTIAL Looking forward to NRF 2017- January 2017 in NYC November 2016
- 2. CONFIDENTIAL 2 ComCap hosts dialogs with its strategic partners at NRF 2017 As in years past, we will be hosting ongoing dialog between our strategic partners that have expressed interest in both business partnerships and strategic investments, and our private company relationships. ComCap is a premier boutique investment bank focused on the intersection of commerce and capital, with key subsectors including B2C eCommerce, B2B SaaS, B2B services for retail (IT and marketing services, fulfillment and logistics and call center), payments, mobile commerce and marketplaces. Headquartered in San Francisco, our firm works with mid-cap public companies on buyside initiatives, and public and private growth companies on financing and strategic M&A. In addition to being the only boutique focused on disruptive commerce models, we differentiate by bringing bulge bracket techniques to emerging models, a strong and uncommon buyside/strategy practice, deep understanding of industry drivers and synergy analyses, deep relationships across the sector and worldwide coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western and Eastern Europe and Latin America. Please contact Aron or Steve to share feedback on your company profile and discuss your views on the personalization and B2B SaaS and professional services industries. Aron Bohlig Managing Partner M: 415-235-8270 E: aron@comcapllc.com David Yom Associate M: 201-341-9473 E: dyom@comcapllc.com Uren Dhanani Associate M: 512-590-4989 E: uren@comcapllc.com Fermin Caro Vice President M: 650-743-7825 E: fermin@comcapllc.com Steve Terry Managing Director M: 415-971-3794 E: steve@comcapllc.com
- 3. CONFIDENTIAL 3 ComCap’s strategic partner landscape-personalization focus j Software and Service Leaders Payments & Fintech End to end Players Global Logistics Leaders Agencies and Systems Integrators Retailers and Corporate VCs eCommerce Leaders
- 4. CONFIDENTIAL 4 Recommended strategic investors Strategic investor Rationale Accenture Interactive, part of Accenture Digital, offers integrated, industrialized and industry-driven digital transformation and personalization marketing solutions Adobe’s marketing cloud platform, Adobe Target, is a complete optimization solution that allows data-driven marketers to rapidly experiment and create high-converting personalized experiences Clorox has increased their investments in digital marketing and eCommerce in recent years to be more responsive to the 21 st century consumers who expect personalization and authenticity when it comes to interaction with their brands 1 Dentsu Aegis Network acquired a majority stake in Merkle, a global data-driven, technology-enabled marketing agency, in order to enhance their capability to deliver unique, personalized customer experiences across platforms and devices First Data recently published a study 2 demonstrating that cardholders are more attracted to credit card providers that provide a personalized experience, from choosing their card style, rewards preferences, security features, and even card materials HCL has a dedicated platform that provides services and tools to help Media & Entertainment customers develop CRM and Personalization strategies for their consumers across mobile, web, and social IBM’s Marketing Cloud suite allows their clients to deliver personalized content across every digital channel so that they can provide a uniquely relevant experience across websites, applications and digital communications Naspers hired Barron Ernst as their Senior Director of Mobile and International Growth in 2015 to broaden their capabilities in the personalization space. Barron was previously Head of Marketing, Personalization, and Growth at One Kings Lane 3 . Oracle’s Maxymiser website optimization platform allows companies to conduct simple A/B testing, or complex multivariate testing, while tracking and analyzing customer behavior across all channels Salesforce’s Personalization Builder enables clients to use the power of predictive analytics and predictive modeling to understand each customer’s preferences and automatically tailor content delivered in email and on the web SAP’s Customer Engagement and Personalization Solutions allow their clients to inform their customers, suggest products, and influence shopping behavior in real time across channels, including in store, with mobile devices, and across SAP software SAS’s Digital Marketing platform allows clients to implement a customer-focused, cross-channel digital marketing strategies that aligns with their overall marketing strategy in order to create relevant and personalized digital marketing messages Transcomos signed a partnership with Adobe in 2015 to accelerate the marketing strategies of Japanese and overseas companies, by combining Adobe’s powerful marketing solution which include analytics, customer experience, mobile, DMP, personalization and social media along with the production and operations capabilities of Transcosmos Sources: (1) https://www.thecloroxcompany.com/brands/innovation/ (2) https://www.firstdata.com/en_us/insights/does-personalization-really-persuade-your-cardholders.html (3) https://growthhackers.com/amas/live-jan-5-ama-with-barron-ernst-head-of-international-growth-at-naspers-and-formerly-at-one-kings-lane-and-imvu (4) http://www.trans-cosmos.co.jp/english/company/news/150330.html
- 5. CONFIDENTIAL 5 Ecommerce personalization services landscape Personalization capabilities are now viewed as critical in achieving a unified customer experience − B2C, and increasingly, B2B sellers are investing in customer individualization and intimacy − Personalization strategies are increasingly being implemented by all business sizes Historically a poorly defined category, Personalization Services is now entering its “Version 2.0” − First generation solutions were characterized as being complex and difficult to implement resulting in delays as marketers had to rely soley on IT − Next generation providers are now leveraging big data, AI and machine learning to create meaningful one-to- one consumer and buyer profiles − This new generation of providers puts the marketer in charge, allow DIY implementations Some early consolidation occurring as larger platforms strive to meet retailers agendas ` Personalization Companies TotalCapitalRaised $50m $10m $25m $75m $100m+ n/a Source: Pitchbook
- 6. CONFIDENTIAL 6 Top vendors and SIs are rapidly gaining capabilities to service the full ecommerce suite ecosystem Diagram adapted from Forrester B2C Commerce Suites report Commerce Platform Order ManagementExperience Management Product Information Management Commerce Suite Physical Touchpoints Branded Digital Touchpoints Enterprise systems and technologies ERP/Supply Chain Marketing/ CRM/ Loyalty Business Intelligence Merchandising Warehouse Management Web Mobile Tablet Contact Center Social Stores / Kiosks POS Increasingly the major vendors are combining point retail solutions into formidable suites Systems integrators are being challenged to build complete practices capable of implementing and supporting a diverse set of components which may not be well integrated due to the rapid pace of acquisitions
- 7. CONFIDENTIAL 7 WEC ecommerce OMS Retail Planning Marketing Suite Relevant Acquisitions √ x x x √ • May ’10 Livefyr – content marketing platform • Arp ’15 Tumri – online display ad solutions • Jan ’15 Fotolia – online stock photography community √ √ √ √ √ • Dec ’15 Clearleap – content management streaming • Sep ’15 ClevAPI – image recognition • Mar ’15 AlchemyAPI – text mining, image recognition x x x x √ • NA √ √ √ √ √ • Sep ’15 Maximizer – personalization platform • Jan ’15 Datalogix – online ad platform • Sep ’14 Micros – retail software technology and POS x √ √ x √ • Aug ’16 BeyondCore – automated analytics software • Jul ‘16 Demandware – SaaS ecommerce platform x √ √ x √ • Oct ‘15 Seewhy – target remarketing platform • Jun ’13 hybris – enterprise ecommerce platform √ x x x √ • Jun ’14 TruCentric – content personalization platform √ x x x x • Aug ’16 Peerius – personalization • Jan ’15 Ektron – web content management • May ’13 Euroling – In-site search engine √ ? x x √ • Nov ’13 Commerceserver.net – ecommerce platform Content management players may collide with commerce Adobe’s rumored interest in ecommerce may drive Acquia/Epi/Sitecore to expand or become marginalized Source: Gartner Research and ComCap analysis. Horizontal Solutions Point Solutions Potential area of consolidation / acquisition
- 9. CONFIDENTIAL 9 ComCap – A leading boutique at the intersection of Capital and Commerce Value Proposition Unique, Focused, Global, Strategy and Investment Banking Boutique Recent transactions completed or underway in the United States, Japan, China, Singapore, Argentina, UK, Sweden, Belgium, France, Germany $2bn revenue Japanese ecommerce BPO co. #3 Russian Internet company #1 UK Internet company Multiple private B2B ecommerce systems integrators Selected ComCap Clients #1 Asian ecommerce B2B company $200mm rev US public company Multiple US and EU private equity funds Many ecommerce SaaS companies Google eBay Previous Clients Dice.com Internet Brands Yahoo Digital River Selected Team Members Sakshi Goel Associate Back office Team Shiv Ng PPG Sabhi Muhammed Analyst Cindy Lang Administration and Ops Experience Education Location Aron Bohlig Managing Partner 21 years Credit Suisse Become, Nortel Wharton MBA San Francisco Mr. Bohlig is a registered representatives of and Securities and Investment Banking Services are offered through BA Securities, LLC Member FINRA SIPC. ComCap and BA Securities, LLC are separate and unaffiliated entities Fermin Caro Vice President 12 years Credit Suisse Yale MBA San Francisco Uren Dhanani Associate 5 years UBS, DaVita McCombs School of Business San Francisco David Yom Associate 9 years J.P. Morgan, Deutsche Bank Georgia Tech MBA San Francisco Alex Martin Associate 9 years Credit Suisse Richard Ivey School of Business San Francisco Steve Terry Managing Director 20 years Credit Suisse Battery Ventures Robertson Stephens McCombs School of Business MBA San Francisco
- 10. CONFIDENTIAL 10 Why ComCap? Who is ComCap? − Ecommerce-focused boutique, accepting clients only by word of mouth recommendation − Proven team with background at Credit Suisse, 100% focused on the ecommerce value chain − Senior execution, no bait-and-switch, but with a strong bench team for support − We are small, so we must be selective, working only on the best probability engagements, but working ferociously to achieve a great outcome − We do deals where we add unique value – not untargeted auctions to test the market How do we differentiate? − Vertical focus enables deep understanding of your value proposition − Unique synergies identification and advocacy process – based on bottoms up revenue and profit analysis of the value of entering new geographies, new verticals for strategic investors / buyers − Huge network among strategics in the US, Europe and Asia − 50% of our transactions are cross border (active in the US, Asia, Europe and LatAm) − New market entry experience on buyside Win-win proposal and differentiated proposition for our clients − While we may charge premium pricing, we offer greater levels of service than other firms, and our client references will attest to this
- 11. CONFIDENTIAL 11 ComCap helps DynamicAction raise $15m strategic round • DynamicAction (DnA) is a San Francisco based SaaS predictive analytics platform for retailers • DnA’s solution leverages >600 algorithms to provide large retailers with big data insights, derived from $12bn in annual GMV (2nd only to Amazon), and proscribe prioritized actions related to critical issues that are largely not visible today - across primarily merchandising, site operations and customer interactions • Marquee retailers in the US, UK and Europe such as Victoria’s Secret, Abercrombie, American Eagle Outfitters, Brooks Brothers, Eddie Bauer, Cole Haan, Otto Group, Tesco, and El Corte Ingles achieved >20% Y/Y growth in profit during the 4Q (the most important season for retailers) • At the time of the transaction, DnA surpassed its 2016E target revenue and had visibility into >70% of its 2017E target standalone revenue (112% including its weighted pipeline) • The round valued DnA at 7.3x 2017E target standalone revenue and 5.3x 2017E revenue (including synergies) ComCap process differentiation ComCap successfully executed a capital raise and partnership with committed resources to accelerate growth and realize material revenue synergies • Extensive pre-transaction engagement to optimize company’s positioning emphasizing first mover advantage and differentiation • Process designed to engage with key strategics and targeted private equity players on a global basis • Created detailed analysis of historical financials to support key value drivers, customized for each strategic investor, and detailed synergy models to gain commercial buy-in • Aggressively engaged with commercial and strategic investment teams to foster commitment to and consideration for synergies in the valuation rationale • Accenture’s retail practice corroborated the commercial opportunity and, along with the strategic investment, committed to accelerating DnA’s penetration of the largest retailers worldwide. • Synergies to DnA are expected to contribute 33% in incremental annualized revenues vs. DnA’s 2017E standalone revenues $5 $9 $23 $0 $3 $9 $5 $12 $33 $0 $10 $20 $30 $40 2016E 2017E 2018E DnA Standalone DnA Synergies 5.3x Multiple DnA revenue ramp including synergies ($m) implies a ‘17 multiple in-line with vertical SaaS leaders
- 12. CONFIDENTIAL 12 ComCap helps drive global ecommerce outsourcing expansion through $15mm equity investment Global outsourcing leader with premier client base, seeks expansion via digital services & new geographies • Based in Tokyo, founded in 1985, (TSE: 09715) since 1997 • $1.5B in sales, ~16,000 employees, ~ 800 clients • Leading BPO, contact center, digital marketer w. Asia expertise • Proactively sought to meet clients’ Int’l. expansion needs • Identified ecommerce as next evolution in outsourced services International outsourced ecommerce with robust capabilities and iconic global brands • Based in Texas, founded in 1994, IPO 1999 on NASDAQ: PFSW • $250M in sales, 1,400 employees, >60 brand name clients • Best in class provider of end-to-end ecommerce outsourcing • Established operations in N. America and Europe • Seeking strategic partners to achieve a global solution Capabilities Capabilities Clients Clients Working with fifteen different strategic partners over four months, ComCap brought together a large strategic and a best-of-breed point provider to create a best-in-class, end-to-end, global solution
- 13. CONFIDENTIAL 13 ComCap’s ecommerce / digital retail investors landscape US Stage agnostic Buyout / Alternate Early stage Late stage Strategic International