LogMeIn Announces Second Quarter 2013 Results

LogMeIn Announces Second Quarter 2013 Results

Reports Quarterly Revenue of $40.7 Million; Deferred Revenue of $77.7 Million;
Increases Full Year Revenue Outlook by More Than $4 Million to $162.7-$164.2
Million

BOSTON, July 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 June 30, 2013.

For the second quarter of 2013, total revenue increased 20 percent to $40.7
million from $33.8 million reported in the second quarter of 2012.

Non-GAAP net income for the second quarter of 2013 was $3.3 million, or $0.13
per diluted share.Non-GAAP net income excludes $5.1 million in stock
compensation expense, $600,000 in patent litigation related expense and $1.1
million in acquisition related costs and amortization.This compares to
non-GAAP net income of $4.2 million, or $0.17 per diluted share, reported in
the second quarter of 2012.

GAAP net loss for the second quarter of 2013 was $1.4 million, or $0.06 per
diluted share, as compared to GAAP net income of $576,000, or $0.02 per
diluted share, reported in the second quarter of 2012.

Non-GAAP cash flow from operations for the second quarter of 2013 was $14.7
million, or 36 percent of revenue.The Company closed the quarter with cash,
cash equivalents and short-term investments of $201.4 million. Under the
Company's $25 million share repurchase program, the Company spent $5.6 million
in the quarter to repurchase approximately 260,000 shares.Additionally, the
Company reported total deferred revenue of $77.7 million, an increase of 24
percent from the $62.8 million reported in the second quarter of 2012.

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

"We're happy to report a great quarter, a very good first half, and an
increasingly positive outlook for the year. Strong sales growth across all of
our core businesses helped us deliver results that exceeded the high-end of
our guidance," said Michael Simon, CEO of LogMeIn."As a result, we're raising
our full year outlook."

"During the quarter, we unveiled AppGuru and Xively, two new offerings that we
believe will position LogMeIn to capitalize on some of technology's fastest
growing market opportunities. Aimed at helping IT professionals embrace the
rapid, disruptive rise of cloud applications in the workplace, AppGuru offers
a natural extension of our popular and proven IT management
portfolio.Meanwhile Xively, a Platform as a Service for commercial Internet
of Things offerings, provides a key first-mover advantage in what many
industry experts believe will emerge as one of the most transformative market
opportunities in the history of technology."

"We believe that these next-generation services, combined with continued
demand for our core offerings, and the increasing contribution of our high
growth offerings, will provide a solid foundation for sustained growth in the
latter half of 2013 and beyond."

Business Outlook

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

Third Quarter 2013:The Company expects third quarter revenue to be in the
range of $41.9 million to $42.4 million.

Non-GAAP net income is expected to be in the range of $3.0 million to $3.3
million, or $0.12 to $0.13 per diluted share.Non-GAAP net income excludes an
estimated $5.2 million of stock compensation expense, $600,000 in patent
litigation related expenses, and $700,000 in acquisition related costs and
amortization.

Non-GAAP net income for the third quarter assumes an effective tax rate of
approximately 50 percent. Non-GAAP net income per diluted share for the third
quarter of 2013 is based on an estimated 25.1 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 $1.6 million to $1.9 million, or $0.07 to $0.08 per
share.

The GAAP net loss for the third quarter assumes income tax expense of $1.4
million to $1.7 million. GAAP net loss per share for the third quarter of 2013
is based on an estimated 24.3 million weighted average shares outstanding.

Fiscal year 2013: The Company expects full year 2013 revenue to be in the
range of $162.7 million to $164.2 million.

Non-GAAP net income is expected to be in the range of $12.4 million to $13.1
million, or $0.49 to $0.52 per diluted share.Non-GAAP net income excludes an
estimated $21.1 million in stock compensation expense, $7.9 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 approximately 50 percent.Non-GAAP net income per diluted share for
2013 is based on an estimated 25.1 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 $10.6 million to $11.4 million, or $0.43 to $0.47 per
share.

The GAAP net loss for the full year assumes income tax expense of $3.8 million
to $4.4 million.GAAP net loss per share for 2013 is based on an estimated
24.4 million weighted average shares outstanding.

Conference Call Information for Today, Thursday, July 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 877-941-6010 (for
the U.S. and Canada) or 480-629-9643 (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 July 25, 2013 until 11:59 p.m.Eastern Time on August 1, 2013, by
dialing 800-406-7325 (for the U.S. and Canada) or 303-590-3030 (for
international callers) and entering passcode 4628572#.

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 judgment 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) transforms the way people work and live through secure
connections to the computers, devices, data, and people that make up their
digital world.The company's cloud services free millions of people to work
from anywhere, empower IT professionals to securely embrace the modern
cloud-centric workplace, give companies new ways to reach and support today's
connected customer, and help businesses bring the next generation of connected
products to market. LogMeIn is headquartered in Boston's Innovation District
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 success of the
Company's new and existing products, the Company's investment in new products,
the expected benefits of continued investment in cloud and mobile services,
potential market sizes and opportunities, the Company's growth, including
growth in 2013, customer growth, and the Company's financial guidance for
fiscal year 2013 and the third 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, AppGuru, Xively 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, June 30,
                                           2012         2013
                                                       
ASSETS                                                   
Current assets:                                         
Cash and cash equivalents                  $111,932  $101,078
Marketable securities                      100,161    100,358
Accounts receivable, net                  13,231     9,589
Prepaid expenses and other current assets 3,620      7,008
Deferred income taxes                      3,214      3,222
Total current assets                       232,158    221,255
Property and equipment, net                 6,576      11,453
Restricted cash                             3,807      3,798
Intangibles, net                            6,368      5,996
Goodwill                                    18,883     18,712
Other assets                                1,550      3,345
Deferred income taxes                       10,196     9,961
Total assets                               $279,538  $274,520
                                                       
LIABILITIES AND EQUITY
Current liabilities:                                    
Accounts payable                           $7,773    $6,118
Accrued liabilities                        16,657     18,821
Deferred revenue, current portion          65,875     74,606
Total current liabilities                  90,305     99,545
Deferred revenue, net of current portion    3,774      3,095
Other long-term liabilities                 822        648
Total liabilities                          94,901     103,288
Commitments and contingencies                           
Preferred stock                             --         --
Equity:                                                 
Common stock                               248        250
Additional paid-in capital                 178,546    188,178
Retained earnings (accumulated deficit)    6,243      (924)
Accumulated other comprehensive loss       (400)       (1,665)
Treasury stock                             --         (14,607)
Total equity                               184,637    171,232
Total liabilities and equity                $279,538  $274,520


LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)
                                                              
                          Three Months Ended June   Six Months Ended June 30,
                           30,
                          2012         2013         2012         2013
                                                              
Revenue                   $33,797   $40,670   $66,485   $78,107
Cost of revenue            3,425      4,776      6,842      9,185
Gross profit              30,372     35,894     59,643     68,922
Operating expenses                                             
Research and development  6,696      6,918      12,916     14,309
Sales and marketing       16,474     22,567     33,320     43,135
General and               4,800      6,352      9,706      17,872
administrative
Amortization of           146        180        273        359
intangibles
Total operating expenses  28,116     36,017     56,215     75,675
Income (loss) from         2,256      (123)       3,428      (6,753)
operations
                                                              
Interest income, net       217        155        432        320
Other (expense) income     (269)       (198)       (505)       454
Income before income taxes 2,204      (166)       3,355      (5,979)
Provision for income taxes (1,628)     (1,194)     (2,703)     (1,188)
                                                              
Net income (loss)          $576      $(1,360)   $652      $(7,167)
                                                              
Net income (loss) per                                          
share:
basic                     $0.02     $(0.06)    $0.03     $(0.29)
diluted                   $0.02     $(0.06)    $0.03     $(0.29)
Weighted average shares                                        
outstanding:
basic                     24,677,893   24,262,417   24,625,851   24,485,429
diluted                   25,367,227   24,262,417   25,360,950   24,485,429
                                                              
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 June   Six Months Ended June 30,
                           30,
                          2012         2013         2012         2013
                                                              
GAAP Income (loss) from    $2,256    $(123)     $3,428    $(6,753)
operations
                                                              
Add Back:                                                      
Stock-based compensation   3,089      5,117      6,073      10,282
expense
Patent litigation related  39         569        187        6,634
expenses
Acquisition related costs  1,537      1,141      3,125      2,211
and amortization
                                                              
Non-GAAP Operating income  6,921      6,704      12,813     12,374
                                                              
Other income, net          (52)        (43)        (73)        774
                                                              
Non-GAAP Income before     6,869      6,661      12,740     13,148
provision for income taxes
                                                              
Non-GAAP Provision for     (2,670)     (3,395)     (4,993)     (6,753)
income taxes
                                                              
Non-GAAP Net income        $4,199    $3,266    $7,747    $6,395
                                                              
Non-GAAP Diluted net       $0.17     $0.13     $0.31     $0.26
income per share:
Diluted weighted average
shares outstanding used in 25,367,227   24,867,371   25,360,950   25,028,953
computing per share
amounts:
                                                              
Stock-Based Compensation Expense
(In thousands)
                                                              
                          Three Months Ended June   Six Months Ended June 30,
                           30,
                          2012         2013         2012         2013
                                                              
Stock-based compensation                                       
expense:
Cost of revenue           $108      $181      $215      $384
Research and development  574        1,045      1,156      2,062
Sales and marketing       901        2,146      1,851      4,227
General and               1,506      1,745      2,851      3,609
administrative
Total stock               $3,089    $5,117    $6,073    $10,282
based-compensation

LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
                                                              
                        Three Months Ended June 30, Six Months Ended June 30,
                        2012          2013          2012         2013
Cash flows from                                                
operating activities
Net income (loss)        $576       $(1,360)    $652      $(7,167)
Adjustments to reconcile
net income (loss) to net                                       
cash
provided by operating                                         
activities:
Depreciation and        1,466       1,892       2,849      3,596
amortization
Amortization of         11          63          22         77
premiums on investments
Provision for bad debts 33          13          55         41
Deferred income taxes   (7)          167         --         198
Stock-based             3,089       5,117       6,073      10,282
compensation
Gain on disposal of     --          --          (1)         (1)
equipment
Changes in assets and                                         
liabilities:
Accounts receivable     (1,586)      2,329       441        3,602
Prepaid expenses and    (104)        (535)        (513)       (3,388)
other current assets
Other assets            163         87          11         (1,795)
Accounts payable        876         (1,280)      (871)       (2,409)
Accrued liabilities     1,710       (3,350)      2,236      1,997
Deferred revenue        1,687       3,639       4,138      8,052
Other long-term         369         14          1,054      (174)
liabilities
Net cash provided by    8,283       6,796       16,146     12,911
operating activities
Cash flows from                                                
investing activities
Purchases of marketable  (19,995)     (10,004)     (74,987)    (60,381)
securities
Proceeds from sale or
disposal of marketable   20,000      10,000      70,000     60,000
securities
Purchases of property    (946)        (4,301)      (2,285)     (6,456)
and equipment
Intangible asset         (458)        (373)        (566)       (915)
additions
Cash paid for
acquisition, net of cash --          --          (14,832)    --
acquired
(Increase) decrease in
restricted cash and      (3,558)      125         (3,558)     125
deposits
Net cash used in        (4,957)      (4,553)      (26,228)    (7,627)
investing activities
Cash flows from                                                
financing activities
Proceeds from issuance
of common stock upon     1,538       193         2,013      267
option exercises
Income tax benefit from
the exercise of stock    1,551       (23)         2,552      2
options
Common stock withheld to
satisfy income tax
withholdings for         --          (681)        --         (917)
restricted stock unit
vesting
Purchase of treasury     --          (5,627)      --         (14,607)
stock
Net cash provided by    3,089       (6,138)      4,565      (15,255)
financing activities
Effect of exchange rate
changes on cash and     (344)        226         357        (883)
cash equivalents and
restricted cash
Net increase (decrease)
in cash and cash         6,071       (3,669)      (5,160)     (10,854)
equivalents
Cash and cash
equivalents, beginning   92,373      104,747     103,604    111,932
of period
Cash and cash
equivalents, end of      $98,444    $101,078   $98,444   $101,078
period
                                                                
Calculation of Non-GAAP Cash Flows from Operating Activities (unaudited)
(In thousands)
                                                              
                        Three Months Ended June 30, Six Months Ended June 30,
                        2012          2013          2012         2013
                                                              
GAAP Cash flows from     $8,283     $6,796     $16,146   $12,911
operating activities
                                                              
Add Back:                                                      
Patent litigation        114         7,895       265        7,285
related payments
Acquisition related      97          43          218        518
payments
                                                              
Non-GAAP Cash flows from $8,494     $14,734    $16,629   $20,714
operating activities

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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