WOBURN, Mass., Aug. 5, 2009 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (Nasdaq:LOGM), a provider of on-demand, remote-connectivity solutions, today announced its second quarter and six-month results for the period ended June 30, 2009.
For the second quarter of 2009, LogMeIn reported total revenue of $18.0 million, an increase of 58% over $11.4 million in total revenue reported in the second quarter of 2008. Net income for the second quarter of 2009 increased to $2.3 million from a net loss of $3.0 million in the second quarter of 2008. Net income attributable to common shareholders for the second quarter of 2009 increased to $0.10 per diluted share from a net loss attributable to common shareholders of $0.92 per diluted share in the second quarter of 2008.
Non-GAAP net income for the second quarter of 2009 increased to $3.1 million, or $0.17 per diluted share, from a non-GAAP net loss of $2.1 million for the comparable period in 2008. Non-GAAP net income excludes $186,000 in amortization of intangibles and $606,000 in stock compensation expense for the second quarter of 2009 and $186,000 in amortization of intangibles and $749,000 of stock compensation expense for the second quarter of 2008. A reconciliation of the most comparable GAAP financial measure to the non-GAAP measure used above is included in this release.
"We are pleased to report successful financial results in our first earnings press release as a public company," commented Michael Simon, President and CEO of LogMeIn, Inc. "Our revenue, operating and net income growth in the second quarter and year to date demonstrate continued effectiveness of our business and customer acquisition model. Despite the current economic environment, we continued our revenue growth and attracted more than 12,000 new, net premium customers in the second quarter, bringing our total premium customer count at the end of the second quarter to more than 200,000."
LogMeIn generated $5.0 million in operating cash flow in the second quarter of 2009 as compared to operating cash flow of $854,000 generated in the same period of the prior year. The Company closed the second quarter of 2009 with cash and cash equivalents of $30.1 million. Additionally, following the close of the second quarter, the Company completed its initial public offering and generated $83.0 million in net proceeds.
Simon added, "The completion of our initial public offering was an important milestone for us, and we believe we are well positioned for continued growth and market leadership. Our financial performance and balance sheet allow us to continue to invest in creating IT solutions for our customers to support their remote computing needs. For example, during the second quarter we released enhancements to our LogMeIn solutions that help global IT organizations and service providers more effectively respond to and support their increasingly mobile workforce. Additionally, during the quarter we continued to expand our solutions for small and medium businesses with beta version releases of LogMeIn Central, LogMeIn Pro(2) and LogMeIn Hamachi(2)."
For the six months ended June 30, 2009, LogMeIn reported total revenue of $35.2 million, an increase of 65% over $21.3 million in revenue reported in the comparable period of 2008. Net income for the first six months of 2009 improved to $4.5 million from a net loss of $6.7 million in the comparable period of 2008. Net income attributable to common shareholders for the first six months of 2009 increased to $0.20 per diluted share from a net loss attributable to common shareholders of $2.00 per diluted share in the comparable period of 2008.
Non-GAAP net income for the first six months of 2009 increased to $6.1 million, or $0.34 per diluted share, from a non-GAAP net loss of $4.9 million for the comparable period in 2008. Non-GAAP net income excludes $372,000 in amortization of intangibles and $1.2 million in stock compensation expense for the first six months of 2009 and $372,000 in amortization of intangibles and $1.3 million of stock compensation expense for the comparable period of 2008. A reconciliation of the most comparable GAAP financial measure to the non-GAAP measure used above is included in this release.
Business Outlook
Based on information available as of August 5, 2009, LogMeIn is issuing guidance for the third quarter and full year 2009 as follows:
Third Quarter 2009: The Company expects third quarter revenue to be in the range of $18.5 million to $18.8 million.
Non-GAAP net income is expected to be in the range of $2.4 million to $2.7 million and non-GAAP net income per diluted share to be in the range of $0.10 to $0.11. Non-GAAP net income excludes an estimated $186,000 in amortization of intangibles and $1.0 million in stock compensation expense.
Net income per diluted share calculations for the third quarter of 2009 are based on estimated fully-diluted weighted average shares outstanding of 24.5 million shares.
Full Year 2009: The Company expects full year 2009 revenue to be in the range of $73.2 million to $73.8 million.
Non-GAAP net income is expected to be in the range of $10.9 million to $11.5 million and non-GAAP net income per diluted share to be in the range of $0.51 to $0.54. Non-GAAP net income excludes an estimated $2.9 million in stock compensation expense and $744,000 in amortization of intangibles.
Net income per diluted share calculations for the full year 2009 are based on estimated fully-diluted weighted average shares outstanding of 21.3 million shares which includes all of the outstanding preferred stock on an as converted basis for the full year.
Conference Call Information for Today, Wednesday, August 5, 2009
LogMeIn will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today. To access the conference call, dial 1-877-941-8416 (for the U.S. and Canada) or 1-480-629-9808 (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 August 5, 2009 until 11:59 pm. Eastern Time on August 12, 2009, by dialing 1-800-406-7325 (for the U.S. and Canada) or 1-303-590-3030 (for international callers) and entering passcode 4117512#.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures: Non-GAAP operating income, Non-GAAP net income and Non-GAAP net income per share. Non-GAAP operating income excludes the amortization of intangibles and stock compensation expense. Non-GAAP net income and Non-GAAP net income per share exclude the amortization of intangibles, stock compensation expense and expenses related to the accretion of redeemable preferred convertible stock. LogMeIn believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to LogMeIn'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.
LogMeIn 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. LogMeIn 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 is a leading provider of on-demand, remote-connectivity solutions to mobile operators, handset OEMs, small and medium businesses, IT service providers and consumers. LogMeIn products are deployed on demand and are accessible through a Web browser. The LogMeIn family includes LogMeIn Pro(r), LogMeIn(r) Ignition(tm), LogMeIn Rescue(r), LogMeIn IT Reach(r), LogMeIn Backup(r), RemotelyAnywhere(r), LogMeIn Free(r) and LogMeIn Hamachi(r). LogMeIn is based near Boston in Woburn, Massachusetts, with offices in Australia, Hungary and the Netherlands. www.LogMeIn.com
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 value and effectiveness of the Company's products, the introduction of product enhancements or additional products, the Company's growth and market leadership and the Company's financial guidance for the third quarter of 2009 and full year 2009. 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 our 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 LogMeIn's control. LogMeIn'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, failure to renew or early termination of the Company's agreements with Intel Corporation, 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, and other risks detailed in LogMeIn 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 LogMeIn's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. LogMeIn 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 LogMeIn's views as of any date subsequent to the date of this press release.
LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------------- --------------------
2008 2009 2008 2009
--------- --------- --------- ---------
Revenue $ 11,422 $ 18,007 $ 21,341 $ 35,204
Cost of revenue 1,373 1,853 2,716 3,598
--------- --------- --------- ---------
Gross profit 10,049 16,154 18,625 31,606
--------- --------- --------- ---------
Operating expenses
Research and development 3,131 2,904 5,706 5,908
Sales and marketing 7,987 8,874 15,541 17,319
General and
administrative 1,668 1,787 3,269 3,442
Legal settlement 150 -- 600 --
Amortization of acquired
intangibles 82 82 164 164
--------- --------- --------- ---------
Total operating expenses 13,018 13,647 25,280 26,833
--------- --------- --------- ---------
Income (loss) from
operations (2,969) 2,507 (6,655) 4,773
Interest income, net 56 8 140 24
Other expense (90) (100) (85) (160)
--------- --------- --------- ---------
Income (loss) before
provision for income
taxes (3,003) 2,415 (6,600) 4,637
Provision for income taxes (8) (75) (54) (164)
--------- --------- --------- ---------
Net income (loss) (3,011) 2,340 (6,654) 4,473
--------- --------- --------- ---------
Accretion of redeemable
convertible preferred
stock (587) (631) (1,174) (1,262)
--------- --------- --------- ---------
Net income (loss)
attributable to common
stockholders $ (3,598) $ 1,709 $ (7,828) $ 3,211
========= ========= ========= =========
Net income (loss)
attributable to common
stockholders per share:
basic and diluted $ (0.92) $ 0.10 $ (2.00) $ 0.20
Weighted average shares
outstanding used in
computing per share
amounts: basic and
diluted 3,924,071 4,022,388 3,910,819 4,005,007
Calculation of Non-GAAP Operating Income, Non-GAAP Net Income (loss)
and Non-GAAP Net Income (loss) per share (unaudited)
(In thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
-------------------- --------------------
2008 2009 2008 2009
GAAP Income (loss) from --------- --------- --------- ---------
operations $ (2,969) $ 2,507 $ (6,655) $ 4,773
Add Back:
Amortization of
intangibles included in
cost of revenue 104 104 208 208
Amortization of
intangibles included in
operating expense 82 82 164 164
Stock-based compensation
expense 749 606 1,348 1,214
Non-GAAP Operating income
(loss) (2,034) 3,299 (4,935) 6,359
--------- --------- --------- ---------
Other (expense) income (34) (92) 55 (136)
--------- --------- --------- ---------
Non-GAAP Income (loss)
before provision for
income taxes (2,068) 3,207 (4,880) 6,223
Provision for income taxes (8) (75) (54) (164)
--------- --------- --------- ---------
--------- --------- --------- ---------
Non-GAAP Net income (loss) $ (2,076) $ 3,132 $ (4,934) $ 6,059
========= ========= ========= =========
Non-GAAP Diluted net
income (loss) per share: $ 0.17 $ 0.34
Diluted weighted average
shares outstanding used
in computing per share
amounts: 18,090,295 18,041,298
Stock-Based Compensation Expense (unaudited)
(In thousands)
Three Months Six Months
Ended June 30, Ended June 30,
2008 2009 2008 2009
--------- --------- --------- ---------
Stock-based compensation
expense:
Cost of revenue $ 16 $ 15 $ 29 $ 29
Research and development 98 95 199 176
Sales and marketing 242 238 449 458
General and
administrative 393 258 671 551
--------- --------- --------- ---------
Total stock based-
compensation $ 749 $ 606 $ 1,348 $ 1,214
========= ========= ========= =========
LogMeIn, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
Dec. 31, June 30,
-------- --------
2008 2009
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 22,913 $ 30,116
Accounts receivable, net 4,701 5,193
Prepaid expenses and other current assets 1,665 1,873
-------- --------
Total current assets 29,279 37,182
Property and equipment, net 4,000 5,052
Restricted cash 592 587
Acquired intangibles, net 1,494 1,122
Goodwill 615 615
Deferred offering costs 1,412 2,552
Other assets 23 45
-------- --------
Total assets $ 37,415 $ 47,155
======== ========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,505 $ 1,698
Accrued liabilities 5,198 6,556
Deferred revenue, current portion 25,257 27,688
-------- --------
Total current liabilities 31,960 35,942
Deferred revenue, net of current portion 3,101 2,860
Other long-term liabilities 130 385
-------- --------
Total liabilities 35,191 39,187
-------- --------
Commitments and contingencies
Redeemable convertible preferred stock:
Series A 12,501 12,991
Series B 11,629 12,013
Series B-1 10,713 11,101
-------- --------
Total redeemable convertible preferred stock 34,843 36,105
-------- --------
Stockholders' deficit:
Common stock 40 40
Additional paid-in capital 311 278
Accumulated deficit (32,980) (28,507)
Accumulated other comprehensive income 10 52
-------- --------
Total stockholders' deficit (32,619) (28,137)
-------- --------
Total liabilities, redeemable convertible
preferred stock and stockholders' deficit $ 37,415 $ 47,155
======== ========
LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
Three Months Six Months
Ended June 30, Ended June 30,
------------------ ------------------
2008 2009 2008 2009
-------- -------- -------- --------
Cash flows from operating
activities
Net income (loss) $ (3,011) $ 2,340 $ (6,654) $ 4,473
Adjustments to reconcile net
income (loss) to net cash
(used in) provided by
operating activities
Depreciation and
amortization 534 759 1,035 1,478
Provision for bad debts 24 40 39 55
Deferred income tax expense 4 4 8 8
Stock-based compensation 749 606 1,348 1,214
Discount on note payable 26 -- 51 --
Changes in assets and
liabilities:
Accounts receivable (903) (1,184) (289) (548)
Prepaid expenses and
other current assets 895 (434) (659) (207)
Other assets -- (27) (7) (23)
Accounts payable (612) 16 (598) (62)
Accrued liabilities 67 1,062 1,425 543
Deferred revenue 3,077 1,539 6,010 2,190
Other long-term
liabilities 4 244 53 247
-------- -------- -------- --------
Net cash provided by
operating activities 854 4,965 1,762 9,368
-------- -------- -------- --------
Cash flows from investing
activities
Purchases of property and
equipment (328) (1,906) (1,343) (2,113)
Increase in restricted cash
and deposits -- (1) (180) (1)
-------- -------- -------- --------
Net cash used in
investing activities (328) (1,907) (1,523) (2,114)
-------- -------- -------- --------
Cash flows from financing
activities
Proceeds from issuance of
common stock 38 17 51 67
Payments of issuance costs for
proposed initial public
offering of common stock (136) (164) (767) (166)
-------- -------- -------- --------
Net cash used in
financing activities (98) (147) (716) (99)
-------- -------- -------- --------
Effect of exchange rate
changes on cash and cash
equivalents and restricted
cash 33 126 85 48
-------- -------- -------- --------
Net increase (decrease) in
cash and cash equivalents 461 3,037 (392) 7,203
Cash and cash equivalents,
beginning of period 17,823 27,079 18,676 22,913
-------- -------- -------- --------
Cash and cash equivalents,
end of period $ 18,284 $ 30,116 $ 18,284 $ 30,116
======== ======== ======== ========
Supplemental disclosure of
cash flow information
Cash paid for interest $ -- $ -- $ 4 $ 1
Noncash investing and
financing activities
Purchases of property and
equipment included in
accounts payable and
accrued liabilities $ 802 $ (434) $ 1,004 $ 264
Accretion of reedemable
convertible preferred
stock $ 587 $ 631 $ 1,174 $ 1,262
Deferred stock offering
costs $ 59 $ 914 $ 142 $ 1,111