Intralink Holdings (IL) $740mm market cap at mid-range price point of $15 $165mm IPO scheduled for Friday, August 6

SUMMARY

Financial observations

. IL can’t make an operating profit with a 22%+ market share . Interest payments choke them at 20% of top line revenue See financials at bottom of IPO report

Not a good deal for investors at the current price range

Another company that has been ‘private equitized’

BUSINESS

. Software-as-a-Service ("SaaS") cloud-based solutions for large organizations. . In the year ended December 31, 2009, over 4,300 customers across 25 industries used the IntraLinks Platform to enable collaboration among more than 400,000 end-users and approximately 50,000 organizations worldwide.

. In the year ended December 31, 2009, revenue from enterprise, mergers and acquisitions ("M&A") and debt capital markets ("DCM") principal markets represented 39%, 36% and 25% of our total revenue, respectively, with revenue from the enterprise market increasing 55% over the year ended December 31, 2008.

PRELIMINARY JUNE QTR RESULTS

. Total revenue of approximately $41.5 to $44.5 million consisting of approximately $18.8 to $19.5 million of revenue from the enterprise market, $8.2 to $8.5 million of revenue from the DCM market, and $14.5 to $16.5 million of revenue from the M&A market; and

. Net loss of approximately $3.0 to $5.0 million.

. Expect net loss for the quarter ended June 30, 2010 to be between $3.0 million and $5.0 million, a decrease of 2% to 41% from net loss of $5.1 million for the quarter ended June 30, 2009. . Net loss for the quarter ended June 30, 2010 is expected to include an aggregate amount of between $16.0 million and $19.5 million, comprised of net interest expense, income tax benefit, depreciation and amortization, amortization of intangible assets and debt issuance costs, stock-based compensation expense and the effects of other non-operating items, including foreign exchange and changes in fair value of our interest rate swap. . For the quarter ended June 30, 2009, the comparable amount was $16.4 million.

CAPITAL EXPENDITURES EXPECTATION

Expects capital expenditures for the quarter ended June 30, 2010 to be between $8.2 million and $9.5 million, as compared to capital expenditures of $2.8 million for the quarter ended June 30, 2009.

MARKET SHARE

Gartner, an independent market research firm, recognizes IntraLinks as the market revenue leader in the teaming and enterprise social software market with an estimated 22.5% share of the worldwide market

PRIVATE EQUITY OWNED

Pre IPO: TA Associates, Inc.: 54%. Rho Capital Partners, Inc.: 34%

INTELLECTUAL PROPERTY

Six issued United States patents

COMPETITION

. Competes with a multitude of service providers, including both virtual data room providers, such as Merrill Corporation, RR Donnelley & Sons Company and Bowne & Co., Inc., and enterprise software providers, such as EMC Corporation and International Business Machines Corp. (IBM). . Expects to encounter increased competition, both domestically and internationally, from established software companies as well as new competitors such as Microsoft Corporation and Google, Inc.

USE OF PROCEEDS

. $151mm . Repay debt

 

Intralink Holdings	IL, C, 6					Post-IPO shares: 49mm
Bus software
New York NY	2007	2008	2009	Mrch '09qtr	Mrch '10qtr	IPO Mkt
Revenue ($mm)	$123	$143	$140	$35	$40	Cap (mm)
Gross margin %	56%	61%	65%	59%	71%	$740
Operating income %	-28%	-7%	-2%	-3%	0%	@15
Interest % of revenue	22%	20%	21%	20%	20%
Net loss, omitting tax benefit	-$63	-$40	-$43	-$20	-$8
Net loss % of rev	-51%	-28%	-31%	-57%	-20%
VALUATION RATIOS
Annualized March qtr	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings*	BookValue	TangibleBV	in IPO
Intralink Holdings (IL)	$740	4.6	-23	2.9	-16.3	22%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	2	1	6