Mercent’s Two Groups of Customers One is attractive and one is not • Self-service customers ▪ Use SaaS offering & little human element ▪ Little handholding ▪ => Highly scalable & high gross margins => fundamentally attractive business • Managed services clients ▪ Still use SaaS offering but lots of service are provided by ex-Mercent / CommerceHubemployees ▪ Lots of handholding ▪ => Less scalability and lower gross margins => fundamentally less attractive business Caro-Kann Capital LLC 50