INVESTMENT BANKING Q1 2020 EDUCATION

INVESTMENT BANKING

EDUCATION TECHNOLOGY INSIGHT

Early Childhood // K-12 // Higher Education // Corporate // B2C

Q3 2021

IN THIS ISSUE

Market Update

2

About Us

21

FOR INSTITUTIONAL USE ONLY

EDUCATION TECHNOLOGY INSIGHT

Education Technology M&A & Capital Raising Activity

Number of U.S. Deals by Quarter(1)

Dollar Volume of U.S. Deals by Quarter(1)(2)

Q3 2021

450

400

350

300

250

200 160

150

100

120

50 17 23

0 Q1 '20

357

290 269

261 195

174

207

201

154

10 10 Q2 '20

153

16 26 Q3 '20

32 36 Q4 '20

39 44 Q1 '21

46 50 Q2 '21

Strategic PE - Majority / Sale PE - Minority

411

310

46 55 Q3 '21

411 transactions were announced in Q3 2021, approximately 75% of which were minority PE deals

$20,000 ($ in millions)

$19,480

$18,000 $16,000

$5,430

$14,000 $12,000 $10,000 $8,000

$12,420 $4,810

$13,000

$11,080

$4,960

$6,000

$4,000 $2,000

$0

$3,515 $1,060

$2,150 $415 Q1 '20

$1,207 $713 $138 Q2 '20

$3,925 $2,680 $2,040 Q3 '20

$5,220

$2,390 Q4 '20

$4,691

$3,030

$491 $1,170 Q1 '21

$2,970 Q2 '21

$5,150

$2,880 Q3 '21

Strategic PE - Majority / Sale PE - Minority

Roughly $12.99 billion in Q3 2021 announced transaction, approximately 78% of value were PE deals

1. Source: PitchBook for the period January 1st 2020 to September 30th 2021. 2. Comprised of deals where the $ amount of investment was disclosed

RAYMOND JAMES INVESTMENT BANKING 2

EDUCATION TECHNOLOGY INSIGHT

Education Technology M&A & Capital Raising Activity

Q3 2021 U.S. Deals by Sector

Early Childhood 2%

B2C 7%

Higher Ed

K-12

18%

34%

Q3 2021 U.S. Deals by Domain

Payments,

Web Filtering Tution Mgmt. Communications

/ Security & Commerce

& Social

3% Admissions &

3%

35.0x are considered Not Meaningful (NM) 2. EBITDA multiples 35.0x are considered Not Meaningful (NM) 3. Omits companies where multiples for both FY2021 and FY2022 are either not available or not meaningful

RAYMOND JAMES INVESTMENT BANKING 4

EDUCATION TECHNOLOGY INSIGHT

Market Valuation Metrics

Education Services TEV / Revenue(1)(3)

4.5x

3.0x

2.8x

2.7x

1.5x

0.0x Tribal Group plc

2.1x

2.0x

Houghton Mifflin Harcourt Company

1.9x

1.9x

1.8x 1.5x

John Wiley & Sons, Inc.

Aspen Group, Inc.

2021 2022

Education Services TEV / EBITDA(2)(3)

24.0x 16.0x 8.0x 0.0x

22.8x

NM Aspen Group, Inc.

13.8x

13.4x

Tribal Group plc

11.6x 9.9x

10.1x

9.3x

Houghton Mifflin Harcourt Company 2021 2022

Pearson plc

1.8x

1.7x

Pearson plc

9.2x

8.9x

John Wiley & Sons, Inc.

Q3 2021

1.0x

1.0x

Stride, Inc.

6.1

5.9x

Stride, Inc.

Source: CapIQ and Equity Research as of September 30, 2021. 1. Revenue multiples >20.0x are considered Not Meaningful (NM) 2. EBITDA multiples 35.0x are considered Not Meaningful (NM) 3. Omits companies where multiples for both FY2021 and FY2022 are either not available or not meaningful

RAYMOND JAMES INVESTMENT BANKING 5

EDUCATION TECHNOLOGY INSIGHT

Q3 2021

Public Comparables

Education Technology

Company

Oracle Corporation Workday, Inc. Constellation Software Inc. Tyler Technologies, Inc. Chegg, Inc. Duolingo, Inc. PowerSchool Holdings, Inc. Coursera, Inc. Blackbaud, Inc. Instructure Holdings, Inc. 2U, Inc. Learning Technologies Group plc Docebo Inc. ReadyTech Holdings Limited Sylogist Ltd.

Stock Price 09/30/21

Market Cap

Enterprise Value(1)

$87.13 $243,214 $287,033

249.89

62,773

61,607

1,641.14

34,778

35,675

458.65

19,336

20,649

68.02

10,310

9,940

166.36

7,412

7,489

24.61

3,900

5,456

31.65

5,003

4,225

70.35

3,349

3,891

22.59

3,129

3,869

33.57

2,576

2,447

2.91

2,354

2,333

73.15

2,497

2,285

2.53

270

285

8.10

194

191

Mean

Education Technology Median

Education Services

Company Pearson plc John Wiley & Sons, Inc. Houghton Mifflin Harcourt Company Stride, Inc. Tribal Group plc Aspen Group, Inc.

Stock Price 09/30/21

Market Cap

Enterprise Value(1)

$9.61

$7,240

$8,346

52.21

2,934

3,982

13.43

1,715

2,030

35.94

1,445

1,507

1.38

299

297

5.57

139

147

Mean

Education Services Median

Overall Median

Revenue(2)

TEV EBITDA(3)

2021E

7.0x 12.1x 7.0x 13.3x 12.2x 31.2x 10.0x 10.4x 4.3x 9.7x 2.6x 9.8x

NM 6.4x 6.2x 11.0x 9.8x

2022E

6.6x 10.1x 6.0x 11.2x 10.0x 24.3x 9.0x 8.4x 4.2x 8.7x 2.2x 9.2x 16.1x 5.1x 5.5x 9.1x 8.7x

2021E

13.7x NM

23.3x NM

33.4x NM NM NM

16.8x 29.5x

NM 29.3x

NM 17.2x 15.4x 22.3x 20.2x

2022E

13.3x NM

21.0x NM

26.4x NM

31.3x NM

16.0x 25.3x 26.8x 25.7x

NM 13.6x 13.9x 21.3x 23.2x

TEV

Revenue(2)

EBITDA(3)

2021E

1.8x 1.9x 2.1x 1.0x 2.8x 1.8x 1.9x 1.9x

6.2x

2022E

1.7x 1.9x 2.0x 1.0x 2.7x 1.5x 1.8x 1.8x

5.1x

2021E

10.1x 9.2x 11.6x 6.5x 13.8x NM 10.3x 10.1x

2022E

9.3x 8.9x 9.9x 5.9x 13.4x 22.8x 11.7x 9.6x

14.6x

13.7x

Revenue Growth

20A / 21E 21E/ 22E

5%

5%

18%

19%

29%

15%

39%

18%

26%

23%

49%

28%

25%

11%

39%

24%

NM

2%

32%

11%

22%

16%

31%

7%

63%

39%

38%

27%

2%

12%

30%

17%

30%

16%

Revenue Growth

20A / 21E 21E / 22E

0%

4%

10%

2%

(7%)

6%

19%

1%

7%

3%

28%

22%

9%

6%

8%

4%

20%

12%

EBITDA Margin(2)

2021E

51% 28% 30% 27% 37% NM 28% NM 25% 33% 7% 34% NM 37% 40% 31% 31%

2022E

50% 25% 29% 27% 38% NM 29% NM 26% 34% 8% 36% NM 37% 40% 32% 32%

EBITDA Margin(2)

2021E

18% 21% 18% 15% 20% 2% 16% 18%

2022E

19% 21% 20% 17% 20% 7% 17% 19%

26%

26%

*EBITDA excludes stock-based compensation Source: CapIQ and Equity Research 1. Sorted by Enterprise Value 2. Revenue multiples >35.0x are considered Not Meaningful (NM) 3. EBITDA multiples 35.0x, and EBITDA margins ................
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