WSMM Newsletter -- Technology, November & December Edition

1. CONFIDENTIAL
WALL STREET MASTERMIND
Sector Spotlight: November/December Recap
Sector Leads
Jagger Lambert | Media& Entertainment
James Concepcion | Media& Entertainment
Pan | Technology
Teddy Kesoglou | Technology
Avi Krishna | Healthcare
Michael Reed | Healthcare
JoeAmes | Healthcare
Project Founders
Jagger Lambert
James Concepcion

2. CONFIDENTIAL
WALL STREET MASTERMIND
Technology
Contributors
Teddy Kesoglou | Group Head
Pan | Group Head
Jonathan Z. | Research Analyst
Mario D. | Research Analyst
Luis Urbina | Research Analyst
Willem Coertzen | Research Analyst
Ben | Research Analyst
Siddhant Bajaj | Research Analyst

3. 3
TABLE OF CONTENTS Technology
I. SustainableTechnology 5
II. Semiconductors 12
III. SaaS industry 19
IV. Deal Coverage 25

4. 4
Rise of Consumer-facing Generative AI Tech: GPT-4, Bard, Amazon Bedrock, Microsoft 365 Copilot
Brief 2023 Recap Most Noteworthy News
Most Important Developments
Generative AI
Technologies
Debate on Government Regulations, Governance Issues and the Moral Mission of AI companies
Hardware
Advancements
Google Pixel 8 Pro, iPhone 15 Pro, MacBook Air, Microsoft Surface Laptop Studio 2
Intel’s Core i9-14900K, Amazon Echo Hub, Ray-Ban Meta Smart Glasses, Apple Vision Pro
Failures
Silicon Valley Bank Collapse: an old-fashioned bank run prompted by bad decision making
Crypto: Collapse of the FTX, Sam Bankman-Freid’s Trial & Binance’s CEO Pleading Guilty & Leaving
Brief M&A
Recap
Successful Deals that Closed in 2023: Microsoft & Activision ($69B), Broadcom & VMWare ($61B)
Failed Deals in 2023: ARM & NVIDIA ($40B), Adobe & Figma ($20B)

5. 5
The OpenAI Saga Initial Fallout
*Source: Grandview Research, CapIQ
The Most Exciting Weekend in Recent Memory
Sudden Firing: OpenAI board of directorsuddenly fires CEO Sam Altman via a Google Meet Meeting.
There was no previous indicationthat Altman and the board of directors were in conflict
Friday,
November
17th
Press release:“he (Altman) was not consistentlycandidin his communications withthe board,
hindering its ability to exercise its responsibilities” ->Board was not specific onexact issue and did not
wait until end of day to control fallout -> differs from the standard public relations practice for
companies
This was a potential conflict between the for-profit side (Altman) and non-profit side (boardof directors)
High Profile Exits: Greg Brockman, OpenAI Cofounder & President, quit the companyalongside Jakub
Pachocki (directorof research), Aleksander Madry (head of AI risk team) and Szymon Sidor (senior
researcher)
Saturday &
Sunday,
November
17th & 18th
Saturday, Nov 17: OpenAI’s big investors startedtrying to convince OpenAI’s board to reverse their
decisionand bring Altman back
Many employees at OpenAI startedvoicing their disapprovalfor Altman’s firing via socialmedia
OpenAI BOD reached out to Altman to negotiate a return to the company(in >24h since firing). Had a
reported agreement to bring Altman & Brockman back and have current board resignbut deal wasn’t
closed by EOD
Sunday, Nov 18: Altman back in office to negotiate return. Microsoft CEO Satya Nadella became
personally involvedindiscussions and interim CEO Mira Murati voicedsupport for Altman’s return.
Later that day, OpenAI brought Emmett Shear (Twitch executive) as interim CEO.OpenAI seemedpoised
to move forward without Altman & Murati

6. 6
Microsoft Steps In: Microsoft CEO Nadella announced that Altman & Brockman were joining
Microsoft to lead a new advanced AI research team -> Microsoft bringing Altman in to create an AI
product of its own
More Pressure: Ilya Sutskever: OpenAI cofounder & chief scientist, now turned on OpenAI’s board
after allegedly starting the whole ordeal -> “I deeply regret my participation in the board actions. I
never intended to harm OpenAI. I will do everything I can to reunite the company”
Later, a petition by Sutskever and OpenAI employees circulated, demanding OpenAI’s BOD step down
Reinstated With New Changes: On early Wednesday, OpenAI announced that Sam Altman is back as
CEO with new board of directors led by:
1. Bret Taylor: former chair of Twitter’s board
2. Larry Summers: former US treasury secretary
3. Adam D’Angelo: chief executive of Quora
Monday,
November
19th
Wednesday,
November
21st
Increased Pressure: Hundreds of employees threatening to quit OpenAI & move to Microsoft
The OpenAI Saga A Return to (somwhat) Normalcy

7. 7
I. SustainableTechnology 5
II. Semiconductors 12
III. SaaS industry 19
IV. Deal Coverage 25
Sustainable Technology Technology

8. 8
Timeline / Evolution of Sustainable Technology
1900s 1970s 1990s 2000s 2010s 2020s
Early 1900s: The
development of
hydroelectric power
plants marks the
beginning of the
modern era of
sustainable technology
1970s: The first
commercial solar
panels are developed,
and the first wind
turbines are installed
for electricity
generation.
1990s: The
development of
hybrid electric
vehicles, such as the
Toyota Prius, helps to
popularize electric
vehicles
2000s: The
development of
renewable energy
sources, such as solar
and wind power,
accelerates sustainable
technology
2020s: Sustainable
technology is becoming
increasingly mainstream,
with governments and
businesses investing
heavily in its
development and
deployment
2021s: Hitachi
acquires ABB's
Power Grids
business for $7.6
billion
Industry: Power
grid infrastructure
2016: Tesla
acquires SolarCity for
$2.6 billion
Industry: Solar
energy
1999: BP Amoco
acquires Atlantic
Richfield Company
for $28 billion
Industry: renewable
energy
Key
Industry Development
M&A Activity
2010s: The
development of smart
grids and energy
storage technologies
begins to transform
the electricity sector

9. 9
Deep Explanation of Sustainable Technology & Different Areas Within
Renewable Energy: Solar, wind, geothermal, hydro
power, and biomass energy are all renewable
sources of energy that can be used to generate
electricity without producing greenhouse
gas emissions
Practical Applications
Sustainable Agriculture: Precision agriculture
techniques, such as using sensors to monitor soil
conditions, plant health, and weather patterns, can
help farmers to optimize their crop yields, reduce
water consumption, and minimize pesticide use
Sustainable Transportation: Electric vehicles
(EVs) are becoming increasingly popular and
affordable, due to advances in battery technology.
EVs produce zero tailpipe emissions, which helps to
reduce air pollution and greenhouse gas emissions
Smart Grids
A smart grid uses sensors and communication technology to collect data about how electricity is
being used throughout the power grid. This data can then be used to make decisions about howto
generate, transmit, and distribute electricity more efficiently. For example, A smart grid can sense
when demand for electricity is high and automatically send more power to those areas
Without Smart Grids: Power plants would
shut down when energy demand was
misaligned with supply to avoid damage to the
plant. As a result, this would cause widespread
power outages throughout the power grid.
With Smart Grids: The implantation of smart
grids allows for seniors to evaluate power
consumption in real time. As a result, power
disruptions can be localized instead of cascading
across the grid

10. 10
Top Sustainable Technology Companies Trading Comps
Companies
Day Close
Price
($ USD) 1
52w High
Price
($ USD)
% change
of 52-Week
Shares
O/S
(Millions)
Market Cap
​($M USD)
Enterprise
Value
($M USD)
EV/
LTM
EBITDA
EV/
EBITDA
(FY)
EV/
Revenue
(LTM)
$ 116.80 $ 117.96 -0.98% 1,088.4 $ 127,613.3 $ 133,488.3 10.0x 15.9x 1.6x
$ 243.09 $ 299.29 -18.78% 3,178.9 $ 754,707.7 $ 737,847.7 45.9x 40.5x 7.7x
$ 154.99 $ 232.00 -33.19% 106.8 $ 15,934.7 $ 14,656.6 19.5x NM 4.6x
$ 91.39 $ 339.92 -73.11% 136.1 $ 12,441 $ 11,974.8 17.4x 23.7x 4.4x
$ 310.40 $ 704.80 -55.96% 420.2 $ 130,674 $ 176,518.4 8.3x 7.8x 1.8x
Median 17.4x 19.8x 4.4x
Average 20.2x 21.9x 4.0x
Electric Vehicle MarketOutlook Solar Energy MarketOutlook Wind Energy Market Outlook
• Electric vehicle sales are rising, with over
2.3M units sold in the Q1 2023, representing
a 25% increase from Q1 2022
• The electric vehicle market is set for growth,
with projections indicating sales reaching
$14M by the end of 2023. Drivers:
government incentives, new battery
technologies, & expanding charging network
• The US solar industry had a 20% surge in
Q2 2023, installing 5.6 gigawatts-direct
current of capacity, despite an 8% dip in Q1
• The solar energy market's projected
growth presents an investment
opportunities, from manufacturing and
development to installation and financing
• Wind power is one of the fastest growing
and lowest-cost sources of electricity in
America, with rapid growth expected,
partly due to the Inflation Reduction Act​​
• Analysis of global wind power installation
forecasts through 2032 is available,
indicating continued growth in the sector
*Sources: CapIQ
1. StockPrice as of 11/15/2023

11. 11
Largest Sustainable Tech Verticals & VC Activity
Carbon Tech
$7.0B Raised
Built Environment
$7.5B Raised
Industry
$22.9B Raised
Land Use
$5.0B Raised
Q3 2023 saw $7.6 billion in VC
deal value across 219 deals,
making it the largest quarter
for deal value on record
Trailing 12-month VC Deal Activity by Investment Segment
The four
largest deals occurred in
the industry segment and
are utilized to scale-
up production capabilities
H2 Green Steel raised $1.6
billion in early-stage VC
funding, Redwood Materials
raised $997.2 million in
Series D funding
Median deal size has been
somewhat flat overall—
relative to 2022’s median
value—rising from $4.4
million to $4.5 million
$4,136.00
$10,256.00
$3,171.70
$1,730.90
288
355
240
141
0
50
100
150
200
250
300
350
400
$0.00
$2,000.00
$4,000.00
$6,000.00
$8,000.00
$10,000.00
$12,000.00
Carbon Tech Industry Built
Environment
Land Use
VC Investments in Sustainable Tech

12. 12
Areas for Growth / Recent Investments
Global Energy Investments in Clean Energy & Fossil Fuels
Demand for Sustainabilityis on the Rise
Clean Tech Deal Count
Governments can make investments in sustainable
technologies through financial incentives, research
and development funding, supportive regulatory
frameworks, procurement policies, and public
awareness campaigns. By putting these into place,
governments can stimulate private sector
investment, accelerate the development and
deployment of innovative solutions, and more
Societal pressure shapes sustainable tech
investment by driving demand for eco-friendly
products and practices. Manifesting through
consumer choices, investor activism, and
community initiatives, it compels businesses to
adapt for competitive advantage, reputation
enhancement, and a sustainable future
contribution
Evolving analytics involves advanced data analysis
methods for deeper, predictive insights, spurred by
technological advancements and complex data. Key
trends like AI, machine learning, and cloud-based
analytics are central. This shift promotes more data-
driven decisions, process optimization, and a
competitive edge in a dynamic environment
1074
1740
1319
1050
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2015 2016 2017 2018 2019 2020 2021 2022 2023
Units: Billions USD Clean energy Units: Billions USD Fossil fuels
58
71
89 90 86 95
120
142
247
222
249
167
0
50
100
150
200
250
300
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal Count

13. 13
5.59
434.81
0
100
200
300
400
500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Terawatts in hours
Environmental Benefits / Negatives Longevity, Reliability of Sustainable Technologies
*Sources: Statista
-66%
-60%
-37%
-19%
-74%
-62%
-48%
-30%
-80%
-60%
-40%
-20%
0%
Europe United States China India
Cars registered in 2021 Cars registered in 2030
Environmental Pros and Cons of Sustainable Technologies
Pros of
Sustainable
Technology
Cons of
Sustainable
Technology
Sustainable technologies,
like wind and solar,
contribute to the reduction
of CO2 and greenhouse
gases by replacing fossil
fuel-based energy
Sustainable technologies
require less water and don’t
deplete finite resources as
fossil fuels do, ensuring a
more efficient use of the
planet's resources
The renewable energy
sector has proven to be a
substantial job creator,
often providing more jobs
per unit of electricity
generated than fossil fuels
Minimizing combustion-
based power generation,
sustainable technologies can
lead to improved air quality,
& reduced respiratory
cardiovascular issues
The installation &
development of renewable
energy technologies can
require significant upfront
investment compared to
traditional energy sources
The production of certain
sustainable technologies is
reliant on rare materials
which have limited supply
and are subject to volatile
markets
The production and end-of-
life disposal of technology
components can have
environmental impacts,
including habitat disruption
and pollution
Some renewable energy
sources, like wind & solar,
are variable by nature & can
create challenges in
maintaining a stable energy
supply
Electric Cars found to cut Emissions Drastically through 2023 Net Electricity Generation From Wind in US from 2000 - 2022

14. 14
Semiconductors Technology
I. SustainableTechnology 5
II. Semiconductors 12
III. SaaS industry 19
IV. Deal Coverage 25

15. 15
The Semiconductor Industry Overview
Timeline of key Semiconductor Industry Developments
Michael Faraday observed that the resistance of silver sulfide
decreased with temperature, which was different than the
dependence observed in metals
Bardeen and Brattain at Bell invented the point-contact transistor,
revolutionizing the field of semiconductors and laying the
foundation for the modern era of electronic components
The development of complementary metal-oxide-semiconductor
technology further advanced the realm of semiconductors, enabling
the creation of highly integrated electronic circuits
The rise of mobile devices and the Internet of Things (IoT) has led
to a surge in semiconductors, driving innovations in chip design and
manufacturing processes
The COVID-19 pandemic semiconductor shortage prompted global
government investments to boost supply and reduce reliance on
foreign sources
2010s
1833
Current State of the Industry
The semiconductor industry
is extensive and competitive,
with global semiconductor
sales reaching 618 billion
U.S. dollars in 2022
The industry is rapidly evolving and
constantly pushing the boundaries of
what is possible, enabling innovations
that make the world smarter, greener,
more efficient, and better connected
The U.S. government enacted the landmark CHIPS and Science Act in 2022 to
provide needed semiconductor researchinvestments and manufacturing
incentives, and reinforce America’s economy, national security, and supply
chains
U.S.-China tensions continue
to impact the global supply
chain, spurring new
government controls on sales
of chips to China, the world’s
largest semiconductor
market
Other significant policy challenges
remain, including the need to enact
policies to reinforce U.S. leadership in
semiconductor design, strengthen the U.S.
semiconductor workforce by reforming
America’s high-skilled immigration and
STEM education systems, and promote
free trade and access to global markets
1940s
1980s
2010s
1830s
2020s

16. 16
Most used semiconductor material
in the industry
Silicon
Key Technologies
and Materials Used Brief Description Advantages/Usage
Relatively inexpensive compared to other
semiconductor materials
Germanium was used in the early
days of the semiconductor
industry
Germanium
Attracts a large user base due to the free
nature
Has a higher electron mobility
than germanium, used in high-
frequency devices
Gallium
Arsenide
Process of adding impurities
to material to alter its electrical
properties
Doping
Used to create the channel in MOSFETs,
which are the building blocks of modern
microprocessors 1
Process of material patterning
through circuit layout. Involves
using a mask to expose it to light
Lithography
Essential for creating the intricate
patterns that make up modern
microprocessors
Removal of exposed material from
surface through a chemical process
Etching
Used to create the trenches and vias that
connect different layers of a
microprocessor
Manufacturing Process
1) Extraction: Silicon is extracted from
sand and purified to remove impurities
2) Crystallization: The purified silicon is
melted and then allowed to cool slowly,
forming a single crystal of silicon
3) Slicing: The silicon crystal is sliced into
thin wafers using a diamond saw
5) Etching: The wafer is then etched using
a chemical or plasma process to remove the
exposed regions of the material
More resistant to radiation damage than
silicon
4) Doping: The wafers are doped with
impurities such as boron or phosphorus to
create p-type and n-type semiconductors
In-Depth Look at Semiconductor Technology

17. 17
Semiconductor Market Analysis
*Sources: Statista
Revenue Trend and Expected Growth – Worldwide
Market Share – Worldwide
50%
13%
11%
9%
7%
5%
5%
Other
0
200
400
600
800
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Discrete Semiconductors Integrated Circuits
Optoelectronics Sensors & Actuators
55.3 66.1 65.2 67.8
95.6 106.1 102.5 113.1
153.1
181.7
146.6
0
50
100
150
200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
In
Billions
USD
Semiconductor
Global Capital
Expenditure
2013-2023

18. 18
Semiconductors Niche Industry Players 12-Month Stock Performance Overview
*Sources: CapIQ
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Share
Price
Percentage
Change
(%)
Intel Corporation (NasdaqGS:INTC) Taiwan Semiconductor Manufacturing Company (TWSE)
NVIDIA Corporation (NasdaqGS:NVDA) QUALCOMM Incorporated (NasdaqGS:QCOM)
Advanced Micro Devices, Inc. (NasdaqGS:AMD) Broadcom Inc. (NasdaqGS:AVGO)
Micron Technology, Inc. (NasdaqGS:MU) Arm Holdings plc (NasdaqGS:ARM)
Semiconductor stocks rose on May 26th, 2023,
after the Semiconductor IndustryAssociation
reported a 1.7% monthlyincreasein global sales,
sparkingoptimism for a potential market rebound

19. 19
Application Domains
• Smart Devices (e.g. I-
phone)
• Connect Devices
• Smartphones
• LTE/5G
• Smart Grid
• Energy Management
• Solid-State Lighting
• Commercial Amusement
• Medical/healthcare
• Automation
• Security
• Software connectivity
• Electrification of Vehicles
• Safety implementations
• Automotive Sensors
• Fitness Wearables
• Head Mounted Displays
• Smart Watches
• Portable Media Players
• DVD Player/Recorder
• Appliances
• Computer
Components:
o CPUs
o MPUs
o MCUs
• Data Storage
• Data Computing
Applications by Industry & Components
Communications Industrial Automotive Consumer Electronics Data Processing
Emerging
Applications
Internet of Things Artificial Intelligence
Large Language
Models
NovelArchitectures
In-house Chip
Designs
Automotive Chips
Fabrication
Technologies
Automotive Chips
Sustainable
Manufacturing
5G
Trends Associated with Semiconductors
*Sources: Deloitte, McKinsey

20. 20
Deep Dive Into the China Chip Ban
Prevent Chinese access to advanced
semiconductors (computing power) that could
fuel breakthroughs in AI and complex
computers for military use
US extended the ban of export of more
advanced AI chips (NVIDIA A800, H800)
to China, chips used for AI & equipment to
manufacture chips
China ChipBan Updates
Companies that want to export AI chips to China
must notify US government
Close the “chiplet loophole” (buy smaller
chip sections within legal limit to create
bigger chips)
Old threshold: based on bandwidth parameter (how fast
chips talk to each other)
New Threshold: based on performance speed (how
powerful chips are) and bandwidth threshold and
performance density
Semiconductor manufacturing equipment
companies (Applied Materials, KLA) & Chips
manufacturers (NVIDIA, AMD, ASML - 10-15% of
sale to China)
Impact will take long to play out (10 years).
Companies began stockpiling (01.AI bought chips
for next 18 months)
Blacklisted two leading Chinese startups
manufacturing Nvidia chips alternatives
(Biren & Moore Threads) -> Cut off from
TSMC & chipmakers that use US equipment
44%
9%
37%
12%
19%
15%
0%
21%
22%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1990 2000 2010 2020
Europe US
Japan South Korea
Taiwan
Basic
Idea
Plus
Loop
Hole
Share of Semiconductor Manufacturing Capacity – US Losing Ground
Potential Impact
Goals

21. 21
SaaS Industry Technology
I. SustainableTechnology 5
II. Semiconductors 12
III. SaaS industry 19
IV. Deal Coverage 25

22. 22
Introduction to SaaS (Software as a Service)
SaaS, or Software as a Service,is a cloud-based servicewhere instead of
downloading software on yourdesktop PC or business network to run
and update, youinstead access an application via an internet browser.
The software application could be anything from officesoftwareto
unified communications among a wide range of other business apps that
are available on a subscription basis
Time-sharing concepts build a
foundation for efficient use of processor
time
1960’s – 1970's:
Internet Technologies -> concept of delivering
software over the web
1990’s: Enter Internet Era
Salesforce played a pivotal in emerging
SaaS sector
2000's
SaaS hits mainstream and the market
expands past business application to AI
and machine learning
2010's
Current market is worth $3 trillion with
giants like Adobe, Salesforce, Shopify and
Intuit
Present:
*Sources: Mckinsey
SaaS Overview
▪ Eliminates the need for users to install the
software on own servers or computers
▪ These models can range from productivityand
collaborationtools like Google Workspace to
customerrelationshipmanagement tools
FundamentalAspects of SaaS
Subscription-based
licensing
Web-Based Access
Automatic Updates
Multi-Tenancy
Software requiring recurring fee
rather than once upfront payment
Software providedthrough a web
browser (accessible anywhere)
SaaS providers handle updates, and no
updates are done manually by clients
SaaS applications can serve multiple
customers from a single software
SaaS Industry Developments
SaaS Benefits

23. 23
SaaS Market Landscape
210 330 470
630 690
870
1060
1240
1410
1570
1770
1993
3000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
SaaS Market Size & Growth
• The SaaS market is experiencing a surge, largely driven by a 35%
increase in remote workfrom 2020 to 2023. This shift has
escalated the demand for cloud-based tools, revolutionizing
workplace dynamics and software needs
1
• With average job tenure now at 4.1 years, there's a significant
shift in cybersecurity strategies within the SaaS domain. This
trend underscores the urgency to constantly adapt and enhance
security measures to protect evolving digital work environments
2
• SaaS development is integrating AI and machine learning more
for personalized and efficient solutions, boosting innovation and
operational efficiency
3
SaaS Developments
Companies
Day Close
Price ($
USD)1
52w High
Price ($
USD)
% change
of 52-
Week
Shares O/S
(Millions)
Market Cap
($M USD)
Enterprise Value
($M USD)
EV/ EBITDA
(LTM)
EV/EBITDA
(FY)
EV/Revenue
(LTM)
$ 138.50 $ 142.38 -2.73% 12,516.0 $ 1,714,865.8 $ 1,624,376.8 16.2x 17.3x 5.5x
$ 372.44 $ 378.87 -1.70% 7,432.3 $ 2,805,233.1 $ 2,766,969.1 24.8x 26.4x 12.7x
$ 475.72 $ 485.00 -1.91% 437.7 $ 207,665.9 $ 216,562.7 30.8x 33.2x 6.6x
$ 224.15 $ 238.22 -5.91% 973.00 $ 219,051.5 $ 220,555.5 24.8x 34.5x 6.7x
$ 608.24 $ 615.57 -1.19% 455.30 $ 282,158.5 $ 278,738.5 38.9x 28.60x 14.8x
$ 54.94 $ 55.35 -0.74% 2,057.90 $ 113,943.6 $ 118,247.6 69.2x 29.67x 3.3x
Median 27.8x 29.1x 6.7x
Mean 34.1x 28.3x 8.3x
*Sources: CapIQ, Mckinsey
1. StockPrice as of 11/15/2023

24. 24
Current SaaS Industry Outlook / FutureGrowth Opportunities
$31.4
$232.2
0
50
100
150
200
250
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Market
in
Billions
USD
Public Cloud Application Services/ (SaaS) spending worldwide
*Source: Statista
Vertical Market
Penetration:
Expanding into
vertical markets
by creating
industry-specific
solutions that
cater to unique
sector needs,
offering
significant
growth potential
AI and
Automation
Expansion:
Significant growth
opportunities lie in
further integrating
AI and automation
into SaaS offerings,
enhancing
efficiency,
decision-making,
and more
Future Growth Opportunities
AI and ML
Integration:
Growing trend of
incorporating
artificial
intelligence &
machine learning
in SaaS products,
enhancing
features like
predictive
analytics and
personalized
user experiences
Current Industry Outlook
IoT & Edge
Computing
Integration:
Leveraging the
growing IoT and
edge computing
trends to offer
more inter-
connected, real-
time SaaS
solutions, tapping
into new
application areas
and industries
Global Market
Expansion:
Exploring
untapped
geographical
markets, presents
substantial growth
opportunities,
necessitating
localization and
cultural adaptation
of SaaS products
Emphasis on
Security &
Compliance:
With increasing
cyber threats &
strict data
privacy laws,
SaaS providers
are focusing on
robust security
measures and
compliance with
regulations like
GDPR
Trend Towards
Vertical SaaS:
A shift is seen
towards
industry-specific
SaaS solutions,
offering tailored
functionalities
for different
industries,
leading to more
efficient and
specialized
services
Sustained
Market Growth:
Experiencing
steady growth,
driven by wider
adoption in
sectors like
healthcare,
education, &
finance, thanks
to flexibility /
cost efficient
cloud-based
solutions

25. 25
SaaS Business Models
Clients pay a recurring fee
regularly (monthly, annually)
to access the software
Subscription-
Based
Business Models Brief Description Advantages
Uses steady revenue stream
which is predictable,
encourages customer
retention
Offers a basic or "free"
version of the software, with
limited features. With more
features available at a cost
Freemium
Model
Attracts a large user base due
to the free nature. Has the
opportunity to upsell
premium features
Revenue is based on
the usage of the software,
such as the number of
transactions, storage, or data
transfers
Usage-Based
Scales with the customer's
usage, can be cost-effective
for smaller businesses
Customized pricing and
licensing agreements for large
enterprises, often negotiated
on a case-by-case basis
Enterprise
Licensing
Accommodates unique
enterprise requirements, high
revenue potential
Tiered Pricing
Appeals to a broader
customer base, allows for
flexibility
Revenue is generated through
renewals and upgrades to
newer versions or plans
License
Renewalsand
Upgrades
Encourages customer loyalty,
capitalizes on product
advancements
Case Studies
• AWS (Amazon Web Service): Offers their services on a
usage-based pricing model, where customers pay for the
computing resources and services they use. AWS dominates
the cloud services market by providing a flexible and
scalable infrastructure for businesses, startups, and
enterprises, with pricing based on actual usage
Case Study graph
Different pricing tiers offer
varying levels of features or
support, catering to different
customer needs

26. 26
SaaS Technology & Infrastructure
Cloud Computing: SaaS solutions often heavily
leverage cloud computing platforms such as
Amazon Web Services (AWS), Microsoft Azure, or
Google Cloud Platform (GCP). These platforms
provide scalable and flexible infrastructure
resources, enabling SaaS providers to deliver
services globally
Underlying Technologies
Security and Compliance Issues
APIs (Application Programming
Interfaces): APIs enable the integration of different
software components, allowing them to
communicate and share data. SaaS providers often
expose APIs to allow seamless integration with
third-party applications, enabling a more connected
and interoperable ecosystem.
Microservices Architecture: SaaS solutions often
adopt a microservices architecture, breaking down
applications into small, independently deployable
services. This approach improves agility, scalability,
and facilitates easier maintenance and updates.
Underlying
Technologies
Cloud Computing:
• SaaS solutions
often heavily
leverage cloud
computing platforms
such as Amazon Web
Services (AWS),
Microsoft Azure, or
Google Cloud
Platform (GCP).
These platforms
provide scalable and
flexible
infrastructure
resources, enabling
SaaS providers to
deliver services
globally
APIs:
• Enable the
integration of
different software
components,
allowing them to
communicate and
share data. SaaS
providers often
expose APIs to allow
seamless integration
with third-party
applications,
enabling a more
connected and
interoperable
ecosystem
Microservices
Architecture:
• SaaS solutions often
adopt a
microservices
architecture,
breaking down
applications into
small, independently
deployable services.
This approach
improves agility,
scalability, and
facilitates easier
maintenance and
updates
Data Security &
Privacy
• One of the most
critical challenges is
protectingsensitive
user data from
unauthorized access
or breaches
• One way to mitigate
this challenge is to
implementstrong
encryption, access
controls, and
regular security
audits. Comply with
data protection
regulationssuch as
GDPR, SOC 2, and
others depending
on the industry
Insecure APIs
• Another challenge
in the underlying
technologies is the
vulnerabilitiesin
APIscan expose
sensitivedata
• Companiesare
mitigating this by
employingsecure
codingpractices for
APIdevelopment,
use APIsecurity
standards, and
regularly test and
monitor APIsfor
potential
vulnerabilities
SOC 2 (Service
Organization
Control 2)
• Is a widely
recognized
framework for
managingand
securingcustomer
data
• Compliancewith
SOC 2 is achieved by
implementing
security, availability,
and confidentiality
controls. And
regularly undergo
independentaudits
to demonstrate
compliance

27. 27
Deal Coverage Technology
I. SustainableTechnology 5
II. Semiconductors 12
III. SaaS industry 19
IV. Deal Coverage 25

28. 28
Digital Payment Industry Overview
• Rapid innovation in payment technologies and increasing emphasis on
cybersecurity and compliance are key drivers, as companies seek advanced
solutions for modern, secure payment processing
• The trend towards digital payments and demand for frictionless experiences
are pivotal, pushing businesses to acquire technologies that cater to these
evolving consumer preferences
• The changing global regulatory landscape and ambitions for geographical
expansion are influencing deal flow, with companies looking to acquire
expertise in regulatory compliance and market-specific knowledge
Technological
Advancements
Shift in
Consumer
Behavior
Regulatory and
Market
Dynamics
Deal Flow drivers
*Source: Grandview Research
$97.9
$367.4
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
20232024202520262027202820292030
Market
Value
(In
Bn’s
USD)
Global Digital Payment Market2023-2030
-1.00x
4.00x
9.00x
14.00x
19.00x
PayPal Holdings, Inc. (NasdaqGS:PYPL) Block, Inc. (NYSE:SQ) Adyen N.V. (ENXTAM:ADYEN) Visa Inc. (NYSE:V)
Mastercard Incorporated (NYSE:MA) Fiserv, Inc. (NYSE:FI) Global Payments Inc. (NYSE:GPN) The Western Union Company (NYSE:WU)
Tracking Top Industry Players Share Price Percentage Change (%)

29. 29
EngageSmart Company Overview
Company
Overview
Inception
Business
Segments
Product Lines
EngageSmart provides customer engagement software
and integrated payment solutions, focusing on
streamlining billing and payment processes
EngageSmart was founded in 2009 by CEO and Co-
Founder Bob Bennett
1. Software Solutions: Specialized in industry-
specific customer engagement software
2. Payment Solutions: Offers payment processing
services for various sectors
Includes billing and customer engagement software,
along with payment processing tools
Customers and
End Markets
Company
Overview
Health & Wellness, Government, Utilities, Financial
Services, Healthcare
Income Statement Historical:
($M USD) FY21 FY22 FY23
Total Revenue: 216.3 303.9 364.5
(-) Cost of Sales -55.1 -71.9 -83.5
Gross Margin: 161.2 232.0 281.0
Gross Margin % 74.5% 76.3% 77.1%
(-) Total Operating Expenses: -161.3 -215.6 -257.7
Operating Income (EBIT): (0.2) 16.5 23.2
EBIT Margin: (0.1%) 5.4% 6.4%
EBITDA 18.0 35.2 42.8
EBITDA Margin: 8.3% 11.6% 11.7%
(+/-) Other Income (Expense) - - -
Earnings Before Income Tax (EBT): (9.0) 20.6 24.9
(+/-) Income (Loss) from Discont. Ops - - -
Net Income to Parent: (9.0) 20.6 24.9
Net Income Margin: (4.2%) 6.8% 6.8%
Balance Sheet
Total Assets: 804.0 886.5 929.7
Total Liabilities: 46.9 81.5 87.5
Total Equity: 757.1 805.0 842.2
• RevenueGrowth:EngageSmart’s revenue has consistent grown overthe past
three years
• ImprovingProfitability:Grossmargin and net income margin have both
increased, indicating higher profitability
• PositiveOperational Turnaround:Froman operating loss in FY21,the company
achieved a positive operating income by FY23
• StrengtheningBalanceSheet:Totalassets and equity have grown, suggesting
solid financial health and investment in growth
• ControlledLiabilities:Liabilitiesare increasing at a slower rate than assets,
indicating a healthy debt-to-asset ratio
Key Takeawaysfrom FY21 to FY23 Financials
Key Areas of
Expansion for
EngageSmart
Mental HealthSector:Focusing on the mental health
treatment sector, aiming to help practitioners treat more
patients through their SMB solutions
CustomerEngagementSoftware:InnovativeSaaS
solutions designed to help industries like utilities, health,
tax, and fundraising improve customer satisfaction by
digital adoption and self-service
SaaS Vertical Solutions:EngageSmart is enhancing its
suite of SaaS vertical solutions, including SimplePractice
and InvoiceCloudto engage customers across segments
like health, government, utilities, and financialservices
EnterpriseSolutionsSegment:Expanding customer
base in the enterprise solutions segment, whichserves
3,400 customers, by driving digital engagement
*Source: EngageSmart

30. 30
Vista Equity Partners Company Overveiw
Strategic Synergies: EngageSmart & Complementary Vista
Equity Partners Portfolios
• Acquia: A provider of cloud-based, digital content management
solutions, Acquia's expertise in managing online content and
digital experiences could complementEngageSmart's customer
engagement services
1
Acquia
• Active Network: Specializes in activity and participant
management solutions for event and activity organizers, which
aligns with EngageSmart's focus on customer engagement and
service facilitation
2
Active
Network
• Accelya: Offers technology products and services for the global
airline industry, including solutions for travel and transport
such as commercial planning, sales and distribution
management, which could synergize with EngageSmart's
business model
3
Accelya
Company
Overview
Vista Equity
Partners
Overview
Founding and
Leadership
Investment
Focus
Fundraising
and Ranking
• Founded in 2000 by Robert F. Smith, who serves
as chairman and CEO
• 4 Investment Strategies: Private Equity, Permanent
Capital, Credit and Public Equity
• Focuses solely on technology companies
• Known as one of the "Big 3" technology private equity
firms
• Vista Equity Partners is actively raising a new
flagship fund
• They have secured approximately $17 billion in
commitments for their eighth flagship buyout
fund
• The fund is expected to close soon but may
extend fundraising into early 2024
• Their goal is to reach a $20 billion hard cap
End Markets
• Enterprise Software and Solutions, Specific
Industry Verticals, Digital and Online Platforms,
Other Sectors
• Vista Equity Partners is an American private equity
firm specializing in software, data, and technology-
enabled businesses
• AUM of over $100 billion
• Portfolio of more than 60 enterprise software, data,
and technology-enabled companies
*Source: Vista Equity Partners
Notable Companies Acquired by Vista Equity Partners

31. 31
Vista Equity Partners Acquiring EngageSmart Overview Deal breakout , Synergies, and Other Conditions
15.00
20.00
25.00
30.00
35.00
EngageSmart, Inc. (NYSE:ESMT)
Deal Announcement
(23rd Oct)
Tracking ESMT Share Price Percentage Change (%)
Revenue
Synergies
Cost
Synergies
Strategic
Synergies
• Cross-Selling Opportunities: Vista could leverage its existing
relationshipsto introduce EngageSmart’ssolutionsto a broader
client base, potentiallyincreasingsales
• Expanded Product Offerings: The acquisition might enable the
development of new, integrated productsor servicesthat cater to
a wider range of customer needs
• Operational Efficiencies: Combining operations could lead to
reduced overhead costs, streamlined processes,and improved
economies of scale
• Technology Integration: Integrating EngageSmart's software
solutions with Vista's portfolio could lead to cost savings in
development, support, and infrastructure
• Market Expansion: The acquisition could provide Vista with a
stronger foothold in the payment software industryand access to
EngageSmart's diverseclientele in health and wellness,
government, utilities,and financial services
• Enhanced Competitive Position: With EngageSmart’s
technology, Vista could grow itsin the digital paymentsmarket
Potential Synergy Opportunities
• AcquisitionAnnouncement: Vista Equity Partners agreed to acquire EngageSmart on October 23, 2023
• TransactionDetails: EngageSmart shares to be acquired for $23.00 per share in cash. The deal is valued at approximately $4.0 billion
• Premium: The offer represents a premium of approximately 30% to the 30-day Unaffected Volume-Weighted Average Price (VWAP)and about 23% to the closing price of
EngageSmart’s stock on October 4, 2023
• Ownership Post-Transaction:Upon closing, affiliates of Vista will hold approximately 65% & affiliates of General Atlantic will retain around 35% of the outstanding equity
• TransactionAdvisors:Evercore acted as financial advisor to the Committee of EngageSmart. Goldman Sachs & Co. LLC was the exclusive financial advisor to EngageSmart
*Source: Grandview Research, CapIQ
Talent and
Expertise
• Accessto Talent:Vista could benefit fromthe expertise and
innovation potential of EngageSmart's workforce,whichcan
drive future growth and product development
Deal Overview

32. 32
EngageSmart DCF
Historical: Projected:
EngageSmart FCF Projections: Units: FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28
Operating Income (EBIT): $ M (0.2) 16.5 23.2 28.1 46.2 65.5 82.7 110.0
Operating Margin: % (0.1%) 5.4% 6.1% 6.0% 8.0% 1.4% 1.5% 1.6%
28.6% 17.5% 15.5% 0.2 0.2
(-) Taxes, Excluding Effect of Interest: $ M (0.0) 0.2 1.1 (8.0) (8.1) (10.2) (12.8) (17.1)
Net Operating Profit After Taxes
(NOPAT):
$ M (0.2) 16.7 24.3 20.1 38.1 55.3 69.9 92.9
Adjustments for Non-Cash Charges:
(+) Depreciation & Amortization: $ M 18.2 18.0 18.1 18.8 18.6 22.9 28.5 35.6
% Revenue: % 8.4% 5.9% 4.8% 4.0% 3.2% 3.2% 3.2% 3.2%
(+/-) Changes In Operating Assets &
Liabilities:
$ M 1.4 3.6 3.4 4.2 5.2 6.4 8.0 10.0
% Revenue: % 0.6% 1.2% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9%
% Change in Revenue: % – 4.1% 4.5% 4.9% 4.7% 4.7% 4.6% 4.5%
(-) Capital Expenditures: $ M (4.5) (6.5) (8.2) (8.9) (15.2) (15.6) (19.3) (24.2)
% Revenue: % (2.1%) (2.1%) (2.2%) (1.9%) (2.6%) (2.2%) (2.2%) (2.2%)
Unlevered Free Cash Flow: $ M 14.9 31.8 37.6 34.2 46.6 69.1 87.0 114.4
Growth Rate: % – 113.4% 18.5% (9.2%) 36.4% 48.3% 25.9% 31.4%
EBITDA: $ M 18.0 34.5 41.3 46.9 64.8 88.4 111.2 145.6
Growth Rate: % – 91.2% 19.9% 13.5% 38.1% 36.6% 25.8% 30.9%
Terminal Value - Multiples Method:
Median CY25 TEV / EBITDA of Comps: 9.7 x
Median CY25 TEV / EBITDA of Target: 29.8 x
BaselineTerminal EBITDA Multiple: 19.8 x
BaselineTerminal Value: $ 2,877.3
Implied Terminal FCF Growth Rate: 3.5%
(+) PV of Terminal Value: 1,998.4
(+) PV of UFCFs: 290.2
Implied Enterprise Value: 2,288.6
% of Implied TEV from Terminal Value: 87.3%
(+) Cash & Investments: 366.0
(+) Net Operating Losses: -
(-) Debt & Finance
Leases: -
(-) Preferred Stock: -
(-) OperatingLeases: -
(-) NoncontrollingInterests: -
(-) Unfunded Pensions: -
Implied Equity Value: 2,654.6
Diluted Shares Outstanding: 172.500
Implied Share Price from DCF: $ 15.39
Premium / (Discount) to Current: (32.5%)
Unlevered Free Cash Flow Calculations Implied Share Price

33. 33
EngageSmart Public Comp’s Forward Multiples
1.9 x 1.5 x
10.1 x
5.0 x 4.9 x
1.3 x
7.5 x
1.7 x 1.3 x
8.8 x
4.7 x 4.6 x
1.3 x
6.1 x
0.0 x
5.0 x
10.0 x
15.0 x
TEV
/
Revenue
Multiples
EV / FY24 Revenue EV / FY25 Revenue
7.5 x
15.6 x
34.0 x
11.3 x 9.7 x
5.4 x
38.9 x
6.9 x
11.8 x
28.7 x
10.5 x 9.0 x
5.4 x
29.8 x
0.0 x
10.0 x
20.0 x
30.0 x
40.0 x
50.0 x
TEV
/
EBITDA
Multiples
EV/FY25 EBITDA
10.2 x
19.8 x
54.0 x
15.1 x
9.8 x 7.1 x
56.1 x
9.3 x
14.8 x
46.2 x
13.7 x
8.9 x 7.1 x
46.7 x
0.0 x
20.0 x
40.0 x
60.0 x
P
/
E
Multiples
*Source: CapIQ

34. 34
EngageSmart Football Field – Overvalued Purchase
Methodology
Selected Public
Comparable
Companies
Assumptions
LTM TEV / Revenue
CY 24 TEV / Revenue
CY 25 TEV / Revenue
LTM TEV / EBITDA
CY 24 TEV / EBITDA
CY 25 TEV / EBITDA
CY 24 P / E
CY 25 TEV / EBITDA
EV/Revenue for
Transactions between
2020 to 2023
CY 25 P / E
16x - 28x EBITDA
Exit Multiple,
6% - 13% WACC
Precedent
Transactions
EngageSmart Valuation - Range of Implied Share Prices
DiscountedCash
Flow
Selected Comps
1. PayPal
2. Square
3. SPS Commerce
4. Fiserv
5. Global
Payments
6. Western Union
ARM is
currently overvalued,
based on our DCF projections
and trading multiples
$- $5.00 $10.00 $15.00 $20.00 $25.00
25th to Median
Median to 75th
Current Share Price
EngageSmart is
currently overvalued,
based on our
DCF projections, trading and
precedent multiples
Vista would need to
drastically improve margins
and revenuethrough their
operational expertiseto
make an attractiveIRR for
investors