LogMeIn, Inc. (NASDAQ: LOGM), a leading provider of cloud-based
connectivity, today announced its results for the second quarter
ended June 30, 2018.
Second quarter 2018 highlights include:
- GAAP revenue was $305.7 million and non-GAAP revenue was $307.1
million
- GAAP net income was $6.6 million or $0.12 per diluted share and
non-GAAP net income was $69.8 million or $1.32 per diluted
share
- EBITDA was $82.2 million or 26.9% of GAAP revenue and Adjusted
EBITDA was $110.1 million or 35.9% of non-GAAP revenue
- Cash flow from operations was $103.2 million or 33.6% of
non-GAAP revenue, and Adjusted cash flow from operations was $111.3
million or 36.2% of non-GAAP revenue
- Total deferred revenue was $381.8 million
- The Company closed the quarter with cash and cash equivalents
of $198.9 million and $200.0 million of borrowings under its
existing credit agreement
“LogMeIn had a solid second quarter with revenue and earnings
that exceeded the high-end of our guidance,” said Bill Wagner,
President and CEO of LogMeIn. “While we expect isolated
headwinds in the second half of the year, we continue to be pleased
with the trajectory of our long-term growth drivers—Unified
Communications, Digital Engagement and Identity—all of which
accelerated in the quarter.”
Business OutlookBased on information available
as of July 26, 2018, the Company is issuing guidance for the third
quarter 2018 and fiscal year 2018.
Third Quarter 2018: The Company expects third quarter
non-GAAP revenue to be in the range of $302 million to $304
million. The Company expects third quarter GAAP revenue to be
in the range of $301 million to $303 million. Non-GAAP
revenue adds back $1 million for the impact of an acquisition
accounting adjustment recorded to reduce acquired deferred revenue
to the fair value of the remaining obligation.
EBITDA is expected to be in the range of $85 million to $87
million, or approximately 29% of GAAP revenue. Adjusted
EBITDA is expected to be in the range of $111 million to $113
million, or approximately 37% of non-GAAP revenue.
Non-GAAP net income is expected to be in the range of $70
million to $71 million, or $1.33 to $1.35 per diluted share.
Non-GAAP net income adds back the non-GAAP revenue adjustment
described above and excludes an estimated $20 million in
stock-based compensation expense, $5 million in acquisition and
litigation-related costs, $61 million of amortization expense of
acquired intangible assets, and includes $2 million of amortization
expense for GoTo’s internally capitalized software development
costs that were adjusted in acquisition accounting to fair value,
as well as the income tax effect of the above items.
Non-GAAP net income for the third quarter assumes an effective
tax rate of approximately 25% and GAAP net income assumes a tax
provision of $4 million for the third quarter. Non-GAAP and GAAP
net income per diluted share is based on an estimated 52.5 million
fully-diluted weighted average shares outstanding.
Including stock-based compensation expense, acquisition related
costs and amortization, litigation-related expense, and excluding
the acquisition accounting adjustments to revenue and amortization
expense, the Company expects to report GAAP net income in the range
of $4 million to $5 million, or $0.08 to $0.10 per diluted
share.
Fiscal year 2018: The Company expects full year 2018
non-GAAP revenue to be in the range of $1.185 billion to $1.195
billion. The Company expects full year 2018 GAAP revenue to
be in the range of $1.181 billion to $1.191 billion. Non-GAAP
revenue adds back $4 million for the impact of an acquisition
accounting adjustment recorded to reduce acquired deferred revenue
to the fair value of the remaining obligation.
EBITDA is expected to be in the range of $368 million to $374
million, or approximately 31% of GAAP revenue. Adjusted
EBITDA is expected to be in the range of $434 million to $440
million, or approximately 37% of non-GAAP revenue.
Non-GAAP net income is expected to be in the range of $273
million to $278 million, or $5.17 to $5.26 per diluted share.
Non-GAAP net income adds back the non-GAAP revenue adjustment
described above and excludes an estimated $72 million in
stock-based compensation expense, $24 million in acquisition and
litigation-related costs, $243 million of amortization expense of
acquired intangible assets, a $34 million pre-tax gain associated
with the disposition of a non-core asset and includes $8 million of
amortization expense for GoTo’s internally capitalized software
development costs that were adjusted in acquisition accounting to
fair value, as well as the income tax effect of the above items and
discrete tax items.
Non-GAAP net income for the fiscal year assumes an effective tax
rate of approximately 25% and GAAP net income for the fiscal year
assumes an effective tax rate of approximately 31%. Non-GAAP
and GAAP net income per diluted share is based on an estimated 52.8
million fully-diluted weighted average shares
outstanding.
Including stock-based compensation expense, acquisition related
costs and amortization, litigation-related expense, and excluding
the acquisition accounting adjustments to revenue and amortization
expense, the Company expects to report GAAP net income in the range
of $44 million to $48 million, or $0.84 to $0.91 per diluted
share.
DividendIn accordance with its previously
announced capital return plan, the Company will pay a $0.30 per
share dividend on August 24, 2018 to stockholders of record
as of August 8, 2018. The Company currently has approximately
51.9 million shares of common stock outstanding.
Conference Call Information for Today, Thursday, July
26, 2018The Company will host a corresponding conference
call and live webcast at 5:00 p.m. Eastern Time today. To
access the conference call, dial 323-794-2590 and enter passcode
7170867. A live webcast will be available on the Investor
Relations section of the Company’s corporate website at
https://www.logmeininc.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 8:00 p.m. Eastern Time on July 26, 2018
until 8:00 p.m. Eastern Time on August 3, 2018, by dialing
719-457-0820 and entering passcode 7170867.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures
including non-GAAP revenue, EBITDA, EBITDA margin, adjusted EBITDA,
adjusted EBITDA margin, 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 adjusted cash flow from operations.
- Non-GAAP revenue is GAAP revenue excluding the impact of fair
value acquisition accounting adjustment on acquired deferred
revenue.
- EBITDA is GAAP net income excluding provision for income taxes,
interest income, interest expense, and other (expense) income, net,
and depreciation and amortization.
- EBITDA margin is calculated by dividing EBITDA by
revenue.
- Adjusted EBITDA is EBITDA excluding the impact of fair value
acquisition accounting adjustment on acquired deferred revenue,
acquisition related costs, gain on disposition of non-core assets,
stock-based compensation expense, and litigation related expense.
- Adjusted EBITDA margin is calculated by dividing adjusted
EBITDA by non-GAAP revenue, or GAAP revenue if not different.
- Non-GAAP operating income excludes the impact of fair value
acquisition accounting adjustment on acquired deferred revenue,
acquisition related costs and amortization, gain on disposition of
non-core assets, stock-based compensation expense, and litigation
related expense and includes amortization expense for GoTo’s
internally capitalized software development costs that were
adjusted in acquisition accounting to fair value.
- Non-GAAP provision for income taxes excludes the tax impact of
the fair value acquisition accounting adjustment on acquired
deferred revenue, acquisition related costs and amortization, gain
on disposition of non-core assets, stock-based compensation
expense, litigation related expense, discrete integration related
tax impacts, and the tax impact related to the enactment of the
U.S. Tax Cuts and Jobs Act of 2017, and includes the tax impact of
amortization expense for GoTo’s internally capitalized software
development costs that were adjusted in acquisition accounting to
fair value.
- Non-GAAP net income and non-GAAP net income per diluted share
reflects the adjustments noted in non-GAAP operating income and
non-GAAP provision for income taxes above.
- Adjusted cash flow from operations excludes acquisition,
disposition and litigation 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, 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, Inc. (NASDAQ:LOGM)
simplifies how people connect with each other and the world around
them to drive meaningful interactions, deepen relationships, and
create better outcomes for individuals and businesses. One of the
world’s top 10 public SaaS companies, and a market leader in
communication & conferencing, identity & access, and
customer engagement & support solutions, LogMeIn has millions
of customers spanning virtually every country across the globe.
LogMeIn is headquartered in Boston with additional locations in
North and South America, Europe, Asia and Australia.
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 Company’s long-term growth strategies
and the performance of its key growth drivers and the Company's
financial guidance for fiscal year 2018 and the third quarter of
2018. 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, customer adoption of the Company's solutions, the Company’s
ability to execute on its strategic initiatives, the Company’s
ability to integrate acquired products or companies, 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, the effectiveness of the Company’s cybersecurity
measures, 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 including intellectual property
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 is a registered trademark of LogMeIn,
Inc. in the US and other countries around the world.
Contact Information:Investors Rob
Bradley LogMeIn,
Inc.781-897-1301rbradley@LogMeIn.com
PressCraig VerColenLogMeIn,
Inc.781-897-0696Press@LogMeIn.com
LogMeIn, Inc. |
|
Condensed Consolidated Balance Sheets
(unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
ASSETS |
|
Current assets: |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
252,402 |
|
|
$ |
198,858 |
|
|
Accounts
receivable, net |
|
|
93,949 |
|
|
|
81,896 |
|
|
Prepaid expenses
and other current assets |
|
|
52,473 |
|
|
|
56,505 |
|
|
Total current assets |
|
|
398,824 |
|
|
|
337,259 |
|
|
Property and equipment,
net |
|
|
92,154 |
|
|
|
92,410 |
|
|
Restricted cash, net of
current portion |
|
|
1,795 |
|
|
|
1,803 |
|
|
Intangibles, net |
|
|
1,149,597 |
|
|
|
1,179,637 |
|
|
Goodwill |
|
|
2,208,725 |
|
|
|
2,404,862 |
|
|
Other assets |
|
|
6,483 |
|
|
|
40,760 |
|
|
Deferred tax
assets |
|
|
530 |
|
|
|
705 |
|
|
Total assets |
|
$ |
3,858,108 |
|
|
$ |
4,057,436 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
22,232 |
|
|
$ |
35,048 |
|
|
Accrued
liabilities |
|
|
82,426 |
|
|
|
112,875 |
|
|
Deferred
revenue, current portion |
|
|
340,570 |
|
|
|
375,079 |
|
|
Total current liabilities |
|
|
445,228 |
|
|
|
523,002 |
|
|
Long-term debt |
|
|
- |
|
|
|
200,000 |
|
|
Deferred revenue, net
of current portion |
|
|
6,735 |
|
|
|
6,711 |
|
|
Deferred tax
liabilities |
|
|
221,407 |
|
|
|
230,075 |
|
|
Other long-term
liabilities |
|
|
20,997 |
|
|
|
26,723 |
|
|
Total liabilities |
|
|
694,367 |
|
|
|
986,511 |
|
|
Equity: |
|
|
|
|
|
Common
stock |
|
|
560 |
|
|
|
565 |
|
|
Additional
paid-in capital |
|
|
3,276,891 |
|
|
|
3,283,856 |
|
|
Accumulated
earnings |
|
|
50,445 |
|
|
|
76,763 |
|
|
Accumulated
other comprehensive income |
|
|
15,570 |
|
|
|
7,005 |
|
|
Treasury
stock |
|
|
(179,725 |
) |
|
|
(297,264 |
) |
|
Total equity |
|
|
3,163,741 |
|
|
|
3,070,925 |
|
|
Total liabilities and
equity |
|
$ |
3,858,108 |
|
|
$ |
4,057,436 |
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
Condensed Consolidated Statements of
Operations (unaudited) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
257,025 |
|
|
$ |
305,650 |
|
|
$ |
444,483 |
|
|
$ |
584,867 |
|
Cost of revenue |
|
53,236 |
|
|
|
72,833 |
|
|
|
92,175 |
|
|
|
135,775 |
|
Gross
profit |
|
203,789 |
|
|
|
232,817 |
|
|
|
352,308 |
|
|
|
449,092 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and
development |
|
40,710 |
|
|
|
43,920 |
|
|
|
73,832 |
|
|
|
87,036 |
|
Sales and
marketing |
|
93,469 |
|
|
|
99,343 |
|
|
|
169,237 |
|
|
|
187,558 |
|
General and
administrative |
|
33,163 |
|
|
|
39,106 |
|
|
|
82,554 |
|
|
|
74,549 |
|
Gain on
disposition of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
Amortization of
acquired intangibles |
|
36,154 |
|
|
|
43,347 |
|
|
|
60,574 |
|
|
|
84,430 |
|
Total operating expenses |
|
203,496 |
|
|
|
225,716 |
|
|
|
386,197 |
|
|
|
399,663 |
|
Income (loss) from
operations |
|
293 |
|
|
|
7,101 |
|
|
|
(33,889 |
) |
|
|
49,429 |
|
Interest
income |
|
373 |
|
|
|
369 |
|
|
|
519 |
|
|
|
1,042 |
|
Interest
expense |
|
(345 |
) |
|
|
(1,854 |
) |
|
|
(794 |
) |
|
|
(2,180 |
) |
Other income
(expense), net |
|
(128 |
) |
|
|
(86 |
) |
|
|
(78 |
) |
|
|
(326 |
) |
Income (loss) before
income taxes |
|
193 |
|
|
|
5,530 |
|
|
|
(34,242 |
) |
|
|
47,965 |
|
(Provision for) benefit
from income taxes |
|
14,653 |
|
|
|
1,024 |
|
|
|
30,524 |
|
|
|
(11,699 |
) |
Net income (loss) |
$ |
14,846 |
|
|
$ |
6,554 |
|
|
$ |
(3,718 |
) |
|
$ |
36,266 |
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.28 |
|
|
$ |
0.13 |
|
|
$ |
(0.08 |
) |
|
$ |
0.69 |
|
Diluted |
$ |
0.28 |
|
|
$ |
0.12 |
|
|
$ |
(0.08 |
) |
|
$ |
0.68 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
52,715 |
|
|
|
52,170 |
|
|
|
48,168 |
|
|
|
52,313 |
|
Diluted |
|
53,723 |
|
|
|
52,875 |
|
|
|
48,168 |
|
|
|
53,160 |
|
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
|
Calculation of Non-GAAP Revenue
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
|
|
GAAP Revenue |
|
$ |
257,025 |
|
|
$ |
305,650 |
|
|
$ |
444,483 |
|
|
$ |
584,867 |
|
|
|
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
|
9,926 |
|
|
|
1,474 |
|
|
|
23,571 |
|
|
|
2,532 |
|
|
|
Non-GAAP Revenue |
|
$ |
266,951 |
|
|
$ |
307,124 |
|
|
$ |
468,054 |
|
|
$ |
587,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Non-GAAP Operating Income,
Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
(In thousands, except per share data) |
|
(In thousands, except per share data) |
|
|
GAAP Net income (loss) from operations |
|
$ |
293 |
|
|
$ |
7,101 |
|
|
$ |
(33,889 |
) |
|
$ |
49,429 |
|
|
|
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
|
9,926 |
|
|
|
1,474 |
|
|
|
23,571 |
|
|
|
2,532 |
|
|
|
|
Stock-based
compensation expense |
|
|
16,296 |
|
|
|
17,166 |
|
|
|
30,490 |
|
|
|
33,132 |
|
|
|
|
Acquisition related
costs |
|
|
9,077 |
|
|
|
9,231 |
|
|
|
40,936 |
|
|
|
14,376 |
|
|
|
|
Litigation related
expenses |
|
|
520 |
|
|
|
96 |
|
|
|
738 |
|
|
|
277 |
|
|
|
|
Amortization of
acquired intangibles |
|
|
49,201 |
|
|
|
61,634 |
|
|
|
82,761 |
|
|
|
120,602 |
|
|
|
|
Gain on disposition of
assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
|
|
|
Effect of acquisition
accounting on internally capitalized software development
costs |
|
|
(6,244 |
) |
|
|
(2,411 |
) |
|
|
(10,945 |
) |
|
|
(6,131 |
) |
|
|
Non-GAAP Operating income |
|
|
79,069 |
|
|
|
94,291 |
|
|
|
133,662 |
|
|
|
180,307 |
|
|
|
|
Interest and other
expense, net |
|
|
(100 |
) |
|
|
(1,571 |
) |
|
|
(353 |
) |
|
|
(1,464 |
) |
|
|
Non-GAAP
Income before income taxes |
|
|
78,969 |
|
|
|
92,720 |
|
|
|
133,309 |
|
|
|
178,843 |
|
|
|
|
Non-GAAP Provision for
income taxes (1) |
|
|
(24,567 |
) |
|
|
(22,902 |
) |
|
|
(40,766 |
) |
|
|
(44,174 |
) |
|
|
Non-GAAP Net income |
|
$ |
54,402 |
|
|
$ |
69,818 |
|
|
$ |
92,543 |
|
|
$ |
134,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
net income per diluted share |
|
$ |
1.01 |
|
|
$ |
1.32 |
|
|
$ |
1.88 |
|
|
$ |
2.53 |
|
|
|
Diluted
weighted average shares outstanding used in |
|
|
|
|
|
|
|
|
|
|
computing per share amounts |
|
|
53,723 |
|
|
|
52,875 |
|
|
|
49,274 |
|
|
|
53,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Non-GAAP provision for income taxes excludes the tax impact of
Non-GAAP items as well as a discrete integration-related tax
benefit of $1.4 million and $3.8 million in the three and six
months ended June 30, 2017, respectively, and a net
tax benefit of $3.4 million and $2.0 million in the three and
six months ended June 30, 2018, respectively, and a net tax
provision of $0.7 million in the six months ended June 30, 2018
related to the enactment of the U.S. Tax Cuts and Jobs Act
of 2017. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of EBITDA and Adjusted EBITDA
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
|
|
GAAP Net income |
|
$ |
14,846 |
|
|
$ |
6,554 |
|
|
$ |
(3,718 |
) |
|
$ |
36,266 |
|
|
|
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
Interest and other
expense, net |
|
|
100 |
|
|
|
1,571 |
|
|
|
353 |
|
|
|
1,464 |
|
|
|
|
Income tax provision
(benefit) |
|
|
(14,653 |
) |
|
|
(1,024 |
) |
|
|
(30,524 |
) |
|
|
11,699 |
|
|
|
|
Amortization of
acquired intangibles |
|
|
49,201 |
|
|
|
61,634 |
|
|
|
82,761 |
|
|
|
120,602 |
|
|
|
|
Depreciation and
amortization expense |
|
|
9,101 |
|
|
|
13,436 |
|
|
|
15,825 |
|
|
|
25,759 |
|
|
|
EBITDA |
|
|
58,595 |
|
|
|
82,171 |
|
|
|
64,697 |
|
|
|
195,790 |
|
|
|
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
|
9,926 |
|
|
|
1,474 |
|
|
|
23,571 |
|
|
|
2,532 |
|
|
|
|
Stock-based
compensation expense |
|
|
16,296 |
|
|
|
17,166 |
|
|
|
30,490 |
|
|
|
33,132 |
|
|
|
|
Gain on disposition of
assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33,910 |
) |
|
|
|
Acquisition related
costs |
|
|
9,077 |
|
|
|
9,231 |
|
|
|
40,936 |
|
|
|
14,376 |
|
|
|
|
Litigation related
expenses |
|
|
520 |
|
|
|
96 |
|
|
|
738 |
|
|
|
277 |
|
|
|
Adjusted EBITDA |
|
$ |
94,414 |
|
|
$ |
110,138 |
|
|
$ |
160,432 |
|
|
$ |
212,197 |
|
|
|
EBITDA Margin |
|
|
22.8 |
% |
|
|
26.9 |
% |
|
|
14.6 |
% |
|
|
33.5 |
% |
|
|
Adjusted EBITDA Margin |
|
|
35.4 |
% |
|
|
35.9 |
% |
|
|
34.3 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-Based Compensation Expense
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
|
|
Cost
of revenue |
|
$ |
1,285 |
|
|
$ |
1,261 |
|
|
$ |
2,299 |
|
|
$ |
2,477 |
|
|
|
Research and development |
|
|
5,208 |
|
|
|
5,116 |
|
|
|
9,637 |
|
|
|
10,058 |
|
|
|
Sales and marketing |
|
|
4,190 |
|
|
|
4,600 |
|
|
|
7,796 |
|
|
|
8,296 |
|
|
|
General and administrative |
|
|
5,613 |
|
|
|
6,189 |
|
|
|
10,758 |
|
|
|
12,301 |
|
|
|
Total stock based-compensation |
|
$ |
16,296 |
|
|
$ |
17,166 |
|
|
$ |
30,490 |
|
|
$ |
33,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
|
Calculation of Projected 2018 Non-GAAP Revenue
(unaudited) |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
GAAP
Revenue |
|
$301 - $303 |
|
$1,181 - $1,191 |
|
|
Add Back: |
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
1 |
|
|
4 |
|
|
Non-GAAP
Revenue |
|
$302 - $304 |
|
$1,185 - $1,195 |
|
|
|
|
|
|
|
|
Calculation of Projected 2018 Non-GAAP Net
Income and Non-GAAP Net Income per Diluted Share
(unaudited) |
|
(In millions, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
GAAP Net
income |
|
$4 - $5 |
|
$44 - $48 |
|
|
Add Back: |
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
1 |
|
|
4 |
|
|
|
Stock-based
compensation expense |
|
20 |
|
|
72 |
|
|
|
Acquisition and
litigation related costs |
|
5 |
|
|
24 |
|
|
|
Amortization of
acquired intangibles |
|
61 |
|
|
243 |
|
|
|
Effect of acquisition
accounting on internally capitalized software development
costs |
|
(2 |
) |
|
(8 |
) |
|
|
Gain on disposition of
assets |
|
-- |
|
|
(34 |
) |
|
|
Income tax effect of
non-GAAP items |
|
(19 |
) |
|
(72 |
) |
|
Non-GAAP
Net income |
|
$70 - $71 |
|
$273 - $278 |
|
|
|
|
|
|
|
|
GAAP net
income per diluted share |
|
$0.08 - $0.10 |
|
$0.84 - $0.91 |
|
Non-GAAP
net income per diluted share |
|
$1.33 - $1.35 |
|
$5.17 - $5.26 |
|
Diluted
weighted average shares outstanding used in computing net income
per share |
|
52.5 |
|
|
52.8 |
|
|
|
|
|
|
|
|
|
Calculation of Projected 2018 EBITDA and
Adjusted EBITDA (unaudited) |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
September 30, 2018 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
GAAP Net
income |
|
$4 - $5 |
|
$44 - $48 |
|
|
Add Back: |
|
|
|
|
|
|
Interest and other
(income) expense, net |
|
2 |
|
|
5 |
|
|
|
Income tax provision
(benefit) |
|
4 |
|
|
20 - 22 |
|
|
Amortization of
acquired intangibles |
|
61 |
|
|
243 |
|
|
|
Depreciation and
amortization expense |
|
15 |
|
|
56 |
|
|
EBITDA |
|
85 - 87 |
|
368 - 374 |
|
|
Add Back: |
|
|
|
|
|
|
Effect of acquisition
accounting on fair value of acquired deferred revenue |
|
1 |
|
|
4 |
|
|
|
Stock-based
compensation expense |
|
20 |
|
|
72 |
|
|
|
Acquisition and
litigation related costs |
|
5 |
|
|
24 |
|
|
|
Gain on disposition of
assets |
|
-- |
|
|
(34 |
) |
|
Adjusted
EBITDA |
|
$111 - $113 |
|
$434 - $440 |
|
|
EBITDA
Margin |
|
29 |
% |
|
31 |
% |
|
|
Adjusted
EBITDA Margin |
|
37 |
% |
|
37 |
% |
|
|
|
|
|
|
|
|
LogMeIn, Inc. |
|
Condensed Consolidated Statements of Cash
Flows (unaudited) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
14,846 |
|
|
$ |
6,554 |
|
|
$ |
(3,718 |
) |
|
$ |
36,266 |
|
|
|
Adjustments
to reconcile net income (loss) to net cash |
|
|
|
|
|
|
|
|
|
|
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
16,296 |
|
|
|
17,166 |
|
|
|
30,490 |
|
|
|
33,132 |
|
|
|
Depreciation and amortization |
|
|
58,302 |
|
|
|
75,070 |
|
|
|
98,586 |
|
|
|
146,361 |
|
|
|
Gain
on disposition of assets, net of transaction costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(36,281 |
) |
|
|
Benefit from deferred income taxes |
|
|
(16,021 |
) |
|
|
(12,677 |
) |
|
|
(32,477 |
) |
|
|
(22,030 |
) |
|
|
Other, net |
|
|
1,135 |
|
|
|
328 |
|
|
|
1,374 |
|
|
|
793 |
|
|
|
Changes in assets and liabilities, excluding effect of acquisitions
and dispositions: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(3,130 |
) |
|
|
12,910 |
|
|
|
(3 |
) |
|
|
22,730 |
|
|
|
Prepaid expenses and other current assets |
|
|
(5,688 |
) |
|
|
3,187 |
|
|
|
(12,586 |
) |
|
|
7,955 |
|
|
|
Other assets |
|
|
68 |
|
|
|
(5,166 |
) |
|
|
156 |
|
|
|
(7,934 |
) |
|
|
Accounts payable |
|
|
7,307 |
|
|
|
1,858 |
|
|
|
11,194 |
|
|
|
11,503 |
|
|
|
Accrued liabilities |
|
|
(2,492 |
) |
|
|
3,150 |
|
|
|
38,044 |
|
|
|
22,961 |
|
|
|
Deferred revenue |
|
|
15,423 |
|
|
|
(2,901 |
) |
|
|
59,752 |
|
|
|
35,784 |
|
|
|
Other long-term liabilities |
|
|
869 |
|
|
|
3,750 |
|
|
|
1,973 |
|
|
|
5,962 |
|
|
|
Net cash provided by operating activities (1) |
|
|
86,915 |
|
|
|
103,229 |
|
|
|
192,785 |
|
|
|
257,202 |
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
Proceeds
from sale or disposal or maturity of marketable securities |
|
|
4,850 |
|
|
|
- |
|
|
|
31,103 |
|
|
|
- |
|
|
|
Purchases
of property and equipment |
|
|
(6,110 |
) |
|
|
(6,381 |
) |
|
|
(9,804 |
) |
|
|
(13,629 |
) |
|
|
Intangible
asset additions |
|
|
(7,678 |
) |
|
|
(10,766 |
) |
|
|
(13,709 |
) |
|
|
(17,862 |
) |
|
|
Cash paid
for acquisition, net of cash acquired |
|
|
- |
|
|
|
(343,351 |
) |
|
|
24,215 |
|
|
|
(343,351 |
) |
|
|
Restricted
cash acquired through acquisitions |
|
|
- |
|
|
|
- |
|
|
|
917 |
|
|
|
- |
|
|
|
Proceeds
from disposition of assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
42,394 |
|
|
|
Net cash provided by (used in) investing activities |
|
|
(8,938 |
) |
|
|
(360,498 |
) |
|
|
32,722 |
|
|
|
(332,448 |
) |
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
Borrowings
(repayments) under credit facility |
|
|
(30,000 |
) |
|
|
200,000 |
|
|
|
(30,000 |
) |
|
|
200,000 |
|
|
|
Proceeds
from issuance of common stock upon option exercises |
|
|
869 |
|
|
|
958 |
|
|
|
5,354 |
|
|
|
1,022 |
|
|
|
Payments of
withholding taxes in connection with restricted stock unit
vesting |
|
|
(21,834 |
) |
|
|
(18,723 |
) |
|
|
(29,455 |
) |
|
|
(27,954 |
) |
|
|
Payment of
debt issuance costs |
|
|
(200 |
) |
|
|
- |
|
|
|
(1,993 |
) |
|
|
- |
|
|
|
Dividends
paid on common stock |
|
|
(13,156 |
) |
|
|
(15,639 |
) |
|
|
(25,936 |
) |
|
|
(31,377 |
) |
|
|
Purchase of
treasury stock |
|
|
(22,150 |
) |
|
|
(68,202 |
) |
|
|
(29,615 |
) |
|
|
(115,103 |
) |
|
|
Net cash provided by (used in) financing activities |
|
|
(86,471 |
) |
|
|
98,394 |
|
|
|
(111,645 |
) |
|
|
26,588 |
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
|
3,010 |
|
|
|
(7,546 |
) |
|
|
5,561 |
|
|
|
(4,890 |
) |
|
|
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
(5,484 |
) |
|
|
(166,421 |
) |
|
|
119,423 |
|
|
|
(53,548 |
) |
|
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
|
268,242 |
|
|
|
367,082 |
|
|
|
143,335 |
|
|
|
254,209 |
|
|
|
Cash, cash
equivalents and restricted cash, end of period |
|
$ |
262,758 |
|
|
$ |
200,661 |
|
|
$ |
262,758 |
|
|
$ |
200,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Cash flows
from operating activities includes the following acquisition,
disposition, and litigation-related payments: |
|
|
|
|
|
|
|
(a) |
Cash flows from operating activities includes
transaction, transition, and integration-related payments for
acquisitions and dispositions of $11.9 million and $7.2 million for
the three months ended June 30, 2017 and 2018, respectively and
$32.8 million and $13.7 million for the six months ended June 30,
2017 and 2018, respectively. |
|
|
|
|
|
(b) |
Cash flows from operating activities includes
acquisition-related retention-based bonus payments of $0.6 million
and $0.7 million for the three and six months ended June 30, 2018,
respectively related to the Company's 2016, 2017 and 2018
acquisitions. |
|
|
|
|
|
(c) |
Cash flows from operating activities includes
litigation-related payments of $0.1 million and $0.3 million for
the three months ended June 30, 2017 and 2018, respectively, and
$0.3 million and $1.1 million for the six months ended June 30,
2017 and 2018, respectively. |
|
|
|
|
|
Adjusted
cash flows from operations adds back the items in (a), (b) and (c)
above and sums to $98.9 million and $111.3 million for the three
months ended June 30, 2017 and 2018, respectively, and $225.9
million and $272.7 million for the six months ended June 30, 2017
and 2018, respectively. |
|
|
|
|
|
|
|
|
|
|
|
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LogMeIn (NASDAQ:LOGM)
Historical Stock Chart
From Jun 2024 to Jul 2024
LogMeIn (NASDAQ:LOGM)
Historical Stock Chart
From Jul 2023 to Jul 2024