LogMeIn Announces First Quarter 2013 Results

LogMeIn Announces First Quarter 2013 Results

Reports Quarterly Revenue of $37.4 Million; Deferred Revenue of $74.1 Million

           Increases Full Year Revenue Outlook to $157-$160 Million

BOSTON, April 25, 2013 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (Nasdaq:LOGM), a
leading provider of essential cloud and mobile services, today announced its
results for the quarter ended March 31, 2013.

For the first quarter of 2013, total revenue increased 15 percent to $37.4
million from $32.7 million reported in the first quarter of 2012.

Non-GAAP net income for the first quarter of 2013 was $3.1 million, or $0.12
per diluted share. Non-GAAP net income excludes $5.2 million in stock
compensation expense, $6.1 million in patent litigation related expense and
$1.1 million in acquisition related costs and amortization. This compares to
Non-GAAP net income of $3.5 million, or $0.14 per diluted share, reported in
the first quarter of 2012.

GAAP net loss for the first quarter of 2013 was $5.8 million, or $0.24 per
diluted share, as compared to GAAP net income of $76,000, or $0.00 per diluted
share, reported in the first quarter of 2012.

Non-GAAP cash flows from operations for the first quarter of 2013 was $6.0
million, or 16 percent of revenue. The Company closed the quarter with cash,
cash equivalents and short-term investments of $205.2 million. Under the
Company's previously announced $25 million share repurchase program, the
Company spent approximately $9 million in the quarter to repurchase 500,000
shares at an average price of $18 per share. Additionally, the Company
reported total deferred revenue of $74.1 million, an increase of 21 percent
from the $61.1 million reported in first quarter of 2012.

A reconciliation of the comparable GAAP financial measures to non-GAAP
measures used above is included in the attached tables.

"We had a strong first quarter with new sales and renewals that allowed us to
deliver results that exceeded the high-end of our guidance," said Michael
Simon, CEO of LogMeIn. "In addition, we successfully attracted 2.7 million
first time users and 37,000 new premium subscribers – both record highs."

"Our Access & Collaboration business, which includes join.me and Cubby, our
new enterprise file syncing and sharing service, was once again our fastest
growing business. Meanwhile, a business model change related to our RMM
offerings led to significant growth in both premium subscribers and booked
sales, and a key win in our Customer Care business – one of the largest deals
in company history – helped to deliver greater-than-expected growth during the
quarter."

"Looking ahead to the second quarter and beyond, we expect to build on this
momentum by introducing two new cloud offerings – developed on our proven
Gravity cloud platform – that we believe will provide a catalyst for
accelerating growth in 2013 and beyond. As a result, we've increased our
full-year outlook," concluded Simon.

Business Outlook

Based on information available as of April 25, 2013, LogMeIn is issuing
guidance for the second quarter 2013 and fiscal year 2013.

Second Quarter 2013:The Company expects second quarter revenue to be in the
range of $39.0 million to $39.5 million.

Non-GAAP net income is expected to be in the range of $2.7 million to $3.0
million, or $0.11 to $0.12 per diluted share.Non-GAAP net income excludes an
estimated $5.2 million of stock compensation expense, $500,000 in patent
litigation related expenses, and $1.0 million in acquisition related costs and
amortization.

Non-GAAP net income for the second quarter assumes an effective tax rate of 50
percent. Non-GAAP net income per diluted share for the second quarter of 2013
is based on an estimated 25.2 million fully-diluted weighted average shares
outstanding.

Including stock compensation expense, patent litigation related expenses, and
acquisition related costs and amortization we expect to report a GAAP net loss
in the range of $2.3 million to $2.6 million, or $0.09 to $0.10 per share.

The GAAP net loss for the second quarter assumes income tax expense of $1.3
million to $1.6 million. GAAP net loss per share for the second quarter of
2013 is based on an estimated 25.2 million weighted average shares
outstanding.

Fiscal year 2013: The Company expects full year 2013 revenue to be in the
range of $157.0 million to $160.0 million.

Non-GAAP net income is expected to be in the range of $11.7 million to $12.7
million, or $0.46 to $0.50 per diluted share.Non-GAAP net income excludes an
estimated $20.7 million in stock compensation expense, $7.6 million in patent
litigation related expenses, and $3.4 million in acquisition related costs and
amortization.

Non-GAAP net income for the full fiscal year 2013 assumes an effective tax
rate of 50 percent.Non-GAAP net income per diluted share for 2013 is based on
an estimated 25.2 million fully-diluted weighted average shares outstanding.

Including stock compensation expense, patent litigation related expenses, and
acquisition related costs and amortization, we expect to report a GAAP net
loss in the range of $11.0 million to $12.5 million, or $0.44 to $0.50 per
share.

The GAAP net loss for the full year assumes income tax expense of $4.2 million
to $4.7 million.GAAP net loss per share for 2013 is based on an estimated
25.2 million weighted average shares outstanding.

Conference Call Information for Today, Thursday, April 25, 2013

The Company will host a corresponding conference call and live webcast at 5:00
p.m. Eastern Time today.To access the conference call, dial 877-941-1465 (for
the U.S. and Canada) or 480-629-9772 (for international callers).A live
webcast will be available on the Investor Relations section of the Company's
corporate website at www.LogMeIn.com and via replay beginning approximately
two hours after the completion of the call until the Company's announcement of
its financial results for the next quarter.An audio replay of the call will
also be available to investors beginning at approximately 7:00 p.m. Eastern
Time on April 25, 2013 until 11:59 p.m.Eastern Time on May 2, 2013, by
dialing 800-406-7325 (for the U.S. and Canada) or 303-590-3030 (for
international callers) and entering passcode 4613311#.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures including non-GAAP
operating income, non-GAAP income before provision for income taxes, non-GAAP
provision for income taxes, non-GAAP net income, non-GAAP net income per
diluted share and non-GAAP cash flow from operations. Non-GAAP operating
income excludes acquisition related costs and amortization, stock compensation
expense, and patent litigation related expense. Non-GAAP provision for income
taxes excludes the tax impact of acquisition related costs and amortization,
stock compensation expense, and patent litigation related expense. Non-GAAP
net income and non-GAAP net income per diluted share exclude acquisition
related costs and amortization, stock compensation expense, and patent
litigation related expense. Non-GAAP cash flow from operations excludes
payments and receipts related to patent litigation related costs, and
acquisition related payments. The exclusion of certain expenses in the
calculation of Non-GAAP financial measures should not be construed as an
inference that these costs are unusual or infrequent. We anticipate excluding
these expenses in the future presentation of our non-GAAP financial measures.
The Company believes that these non-GAAP measures of financial results provide
useful information to management and investors regarding certain financial and
business trends relating to the Company's financial condition and results of
operations. The Company's management uses these non-GAAP measures to compare
the Company's performance to that of prior periods and uses these measures in
financial reports prepared for management and the Company's board of
directors. The Company believes that the use of these non-GAAP financial
measures provides an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing the Company's financial
measures with other software-as-a-service companies, many of which present
similar non-GAAP financial measures to investors.

The Company does not consider these non-GAAP measures in isolation or as an
alternative to financial measures determined in accordance with GAAP.The
principal limitation of these non-GAAP financial measures is that they exclude
significant elements that are required by GAAP to be recorded in the Company's
financial statements.In addition, they are subject to inherent limitations as
they reflect the exercise of judgments by management in determining these
non-GAAP financial measures.In order to compensate for these limitations,
management of the Company presents its non-GAAP financial measures in
connection with its GAAP results.The Company urges investors to review the
reconciliation of its non-GAAP financial measures to the comparable GAAP
financial measures, which it includes in press releases announcing quarterly
financial results, including this press release, and not to rely on any single
financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the
non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.

LogMeIn (Nasdaq:LOGM) provides the essential cloud-based collaboration, IT
management, and customer service offerings required to empower, manage, secure
and support the new mobile workplace.Our solutions are used by tens of
millions of professionals to work from virtually anywhere on virtually any
Internet-enabled device.Hundreds of thousands of small and medium businesses
use our solutions to manage distributed work environments, embrace
employee-owned technology in the workplace and facilitate collaboration across
distributed teams.Thousands of the world's premier service providers,
including more than 50 of the world's largest telecom companies, use our
solutions to service and support businesses and individual professionals
across mobile, social and online channels.The company's worldwide
headquarters is in Boston, Massachusetts, USA with offices in Australia,
Hungary, India, Ireland, the Netherlands, and the UK.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995, including but not limited to, statements regarding the popularity,
value and effectiveness of the Company's products, the Company's intent to
expand its portfolio of products and the success of the Company's products,
the Company's investment in new products, the expected benefits of continued
investment in cloud and mobile services, the Company's growth, including
growth in 2013, customer growth, and the Company's financial guidance for
fiscal year 2013 and the second quarter of 2013.These forward-looking
statements are made as of the date they were first issued and were based on
current expectations, estimates, forecasts and projections as well as the
beliefs and assumptions of management.Words such as "expect," "anticipate,"
"should," "believe," "hope," "target," "project," "goals," "estimate,"
"potential," "predict," "may," "will," "might," "could," "intend," variations
of these terms or the negative of these terms and similar expressions are
intended to identify these forward-looking statements. Forward-looking
statements are subject to a number of risks and uncertainties, many of which
involve factors or circumstances that are beyond the Company's control. The
Company's actual results could differ materially from those stated or implied
in forward-looking statements due to a number of factors, including but not
limited to, dependence on the remote support and software market, customer
adoption of the Company's solutions, the Company's ability to attract new
customers and retain existing customers, adverse economic conditions in
general and adverse economic conditions specifically affecting the markets in
which the Company operates, intellectual property litigation, the Company's
ability to continue to promote and maintain its brand in a cost-effective
manner, the Company's ability to compete effectively, the Company's ability to
develop and introduce new products and add-ons or enhancements to existing
products, the Company's ability to manage growth, the Company's ability to
attract and retain key personnel, the Company's ability to protect its
intellectual property and other proprietary rights, the result of any pending
litigation, and other risks detailed in the Company's other publicly available
filings with the Securities and Exchange Commission. Past performance is not
necessarily indicative of future results.The forward-looking statements
included in this press release represent the Company's views as of the date of
this press release.The Company anticipates that subsequent events and
developments will cause its views to change. The Company undertakes no
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.These
forward-looking statements should not be relied upon as representing the
Company's views as of any date subsequent to the date of this press release.

 LogMeIn, LogMeIn Central, LogMeIn Pro, LogMeIn Free, LogMeIn Rescue, LogMeIn
Ignition, join.me, Cubby and BoldChat are trademarks or registered trademarks
          of LogMeIn in the US and other countries around the world.

LogMeIn, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
                                                      
                                          December 31, March 31,
                                           2012         2013
                                                      
ASSETS                                                  
Current assets:                                        
Cash and cash equivalents                  $111,932  $104,747
Marketable securities                      100,161    100,493
Accounts receivable, net                  13,231     11,929
Prepaid expenses and other current assets 3,620      6,474
Deferred income taxes                      3,214      3,214
Total current assets                       232,158    226,857
Property and equipment, net                6,576      8,481
Restricted cash                            3,807      3,797
Intangibles, net                           6,368      6,253
Goodwill                                   18,883     18,712
Other assets                               1,550      3,432
Deferred income taxes                      10,196     10,154
Total assets                               $279,538  $277,686
                                                      
LIABILITIES AND EQUITY
Current liabilities:                                   
Accounts payable                           $7,773    $7,216
Accrued liabilities                        16,657     22,432
Deferred revenue, current portion          65,875     70,762
Total current liabilities                  90,305     100,410
Deferred revenue, net of current portion   3,774      3,300
Other long-term liabilities                822        633
Total liabilities                          94,901     104,343
Commitments and contingencies                          
Preferred stock                            --         --
Equity:                                                
Common stock                               248        249
Additional paid-in capital                 178,546    183,572
Retained earnings                          6,243      436
Accumulated other comprehensive loss       (400)       (1,934)
Treasury stock                             --         (8,980)
Total equity                               184,637    173,343
Total liabilities and equity               $279,538  $277,686


LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)
                                                               
                                                 Three Months Ended March 31,
                                                 2012           2013
                                                               
Revenue                                          $32,688     $37,437
Cost of revenue                                   3,417        4,409
Gross profit                                      29,271       33,028
Operating expenses                                              
Research and development                          6,220        7,391
Sales and marketing                               16,846       20,568
General and administrative                        4,906        11,520
Amortization of intangibles                       127          179
Total operating expenses                          28,099       39,658
Income (loss) from operations                     1,172        (6,630)
                                                               
Interest income, net                              215          165
Other (expense) income                            (236)         652
Income (loss) before income taxes                 1,151        (5,813)
Provision for (benefit from) income taxes         1,075        6
                                                               
Net income (loss)                                 $76         $(5,807)
                                                               
Net income (loss) per share:                                    
basic                                             $0.00       $(0.24)
diluted                                           $0.00       $(0.24)
Weighted average shares outstanding:                            
basic                                             24,573,810     24,704,343
diluted                                           25,354,380     24,704,343
                                                               
Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Net
Income per share (unaudited)
(In thousands, except share and per share data)
                                                               
                                                 Three Months Ended March 31,
                                                 2012           2013
                                                               
GAAP Income from operations                       $1,172      $(6,630)
                                                               
Add Back:                                                       
Stock-based compensation expense                  2,984        5,165
Patent litigation related expenses                148          6,065
Acquisition related costs and amortization       1,588        1,070
                                                               
Non-GAAP Operating income                         5,892        5,670
                                                               
Other income, net                                 (21)          817
                                                               
Non-GAAP Income before provision for income taxes 5,871        6,487
                                                               
Non-GAAP Provision for income taxes              (2,323)       (3,358)
                                                               
Non-GAAP Net income                               $3,548      $3,129
                                                               
Non-GAAP Diluted net income per share:            $0.14       $0.12
Diluted weighted average shares outstanding used  25,354,380     25,192,289
incomputing per share amounts:
                                                               
Stock-Based Compensation Expense
(In thousands)
                                                               
                                                 Three Months Ended March 31,
                                                 2012           2013
                                                               
Stock-based compensation expense:                               
Cost of revenue                                   $107        $203
Research and development                          582          1,017
Sales and marketing                               950          2,081
General and administrative                        1,345        1,864
Total stock based-compensation                    $2,984      $5,165


LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
                                                              
                                                 Three Months Ended March 31,
                                                 2012          2013
Cash flows from operating activities                           
Net income (loss)                                 $76        $(5,807)
Adjustments to reconcile net income to net cash                
provided by operating activities:
Depreciation and amortization                     1,383       1,704
Amortization of premiums on investments           11          14
Provision for bad debts                           22          28
Deferred income taxes                             1,008       56
Income tax benefit from the exercise of stock     (1,001)      (25)
options
Stock-based compensation                          2,984       5,165
Gain on disposal of equipment                     (1)          (1)
Changes in assets and liabilities:                             
Accounts receivable                               2,027       1,273
Prepaid expenses and other current assets         (409)        (2,853)
Other assets                                      (152)        (1,882)
Accounts payable                                  (1,747)      (1,129)
Accrued liabilities                               526         5,347
Deferred revenue                                  2,451       4,413
Other long-term liabilities                       685         (188)
Net cash provided by operating activities         7,863       6,115
Cash flows from investing activities                           
Purchases of marketable securities                (54,992)     (50,377)
Proceeds from sale or disposal of marketable      50,000      50,000
securities
Purchases of property and equipment               (1,339)      (2,155)
Intangible asset additions                        (108)        (542)
Cash paid for acquisition, net of cash acquired   (14,832)     --
Net cash used in investing activities             (21,271)     (3,074)
Cash flows from financing activities                           
Proceeds from issuance of common stock upon       475         74
option exercises
Income tax benefit from the exercise of stock     1,001       25
options
Common stock withheld to satisfy income tax       --          (236)
withholdings for restricted stock unit vesting
Purchase of treasury stock                        --          (8,980)
Net cash provided by (used in) financing          1,476       (9,117)
activities
Effect of exchange rate changes on cash and cash  701         (1,109)
equivalents and restricted cash
Net decrease in cash and cash equivalents         (11,231)     (7,185)
Cash and cash equivalents, beginning of period    103,604     111,932
Cash and cash equivalents, end of period          $92,373    $104,747
                                                              
Calculation of Non-GAAP Cash Flows from Operating Activities (unaudited)
(In thousands)
                                                              
                                                 Three Months Ended March 31,
                                                 2012          2013
                                                              
GAAP Cash flows from operating activities         $7,863     $6,115
                                                              
Add Back:                                                      
Patent litigation related payments                151         (610)
Acquisition related payments                      121         475
                                                              
Cash flows from operating activities before
patent litigation related payments                $8,135     $5,980
andacquisition related payments

CONTACT:  Investors
          Rob Bradley
          LogMeIn, Inc.
          781-897-1301
          rbradley@LogMeIn.com

          Press
          Craig VerColen
          LogMeIn, Inc.
          781-897-0696
          Press@LogMeIn.com

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