85.12 -1.85 -2.13% Volume: 807,037 December 14, 2018

LogMeIn Announces Second Quarter 2016 Results

Jul 26, 2016

28% Revenue Growth; Operating Cash Flow 31% of Revenue

BOSTON, July 26, 2016 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (NASDAQ:LOGM), a leading provider of cloud-based connectivity, today announced its results for the second quarter ended June 30, 2016.

Second quarter 2016 highlights include:

  • Revenue was $83.3 million, representing 28% growth compared with the second quarter of 2015
  • Adjusted EBITDA was $21.4 million and Adjusted EBITDA margin was 25.7%, versus $14.6 million and 22.6% in the second quarter of 2015
  • GAAP net income was $2.5 million, or $0.10 per share, as compared to GAAP net income of $2.4 million, or $0.09 per diluted share, in the second quarter of 2015
  • Non-GAAP net income was $12.7 million, or $0.49 per diluted share, as compared to $9.1 million, or $0.35 per diluted share, in the second quarter of 2015
  • Cash flow from operations was $26.0 million, or 31% of revenue, as compared to $18.6 million in the second quarter of 2015
  • Total deferred revenue was $163.9 million, up 21% from $136.0 million in the second quarter of 2015
  • The Company closed the quarter with cash, cash equivalents, and short-term investments of $225.4 million

“We are pleased with the strong performance delivered in the second quarter, where revenue and earnings were above the high end of our guidance,” said Bill Wagner, President and CEO of LogMeIn. “These results were driven by continued strong performance across our three clouds, each of which continued to grow in double digits.

“We are also very excited about our announcement regarding the proposed merger with Citrix’s GoTo family of products.  We believe that the transaction represents a compelling opportunity to accelerate our vision and for employees of both companies to come together and deliver significant innovation and value to our customers and shareholders.”

Business Outlook   
Based on information available as of July 26, 2016, the Company is issuing guidance for the third quarter 2016 and fiscal year 2016. 

Third Quarter 2016: The Company expects third quarter revenue to be in the range of $84.2 million to $84.7 million.

Adjusted EBITDA is expected to be in the range of $22.7 million to $23.3 million.  

Non-GAAP net income is expected to be in the range of $13.4 million to $13.8 million, or $0.52 to $0.53 per diluted share.  Non-GAAP net income excludes an estimated $9.4 million in stock-based compensation expense and $14.4 million in acquisition-related costs and amortization, including costs associated with the Company’s proposed merger with Citrix’s GoTo family of products.

Non-GAAP net income for the third quarter assumes an effective tax rate of approximately 30%. Non-GAAP net income per diluted share for the third quarter of 2016 is based on an estimated 26.1 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense and acquisition-related costs and amortization, the Company expects to report a GAAP net loss in the range of $4.1 million to $3.6 million, or $0.16 to $0.14 per share.

GAAP net loss for the third quarter assumes an effective tax rate of approximately 9%. GAAP net loss per share for the third quarter of 2016 is based on an estimated 25.4 million weighted average basic shares outstanding.

Fiscal year 2016: The Company expects full year 2016 revenue to be in the range of $333.0 million to $335.0 million

Adjusted EBITDA is expected to be in the range of $84.9 million to $87.1 million.

Non-GAAP net income is expected to be in the range of $49.9 million to $51.4 million, or $1.91 to $1.97 per diluted share. Non-GAAP net income excludes an estimated $36.6 million in stock-based compensation expense and $35.6 million in acquisition-related costs and amortization including costs associated with the Company’s proposed merger with Citrix’s GoTo family of products.

Non-GAAP net income for the full fiscal year 2016 assumes an effective tax rate of approximately 30%.  Non-GAAP net income per diluted share for the full fiscal year 2016 is based on an estimated 26.1 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense and acquisition-related costs and amortization, the Company expects to report results in the range of a GAAP net loss of $1.0 million, or $0.04 per share, to GAAP net income of $1.2 million, or $0.04 per diluted share.

GAAP net income (loss) for the full year assumes an effective tax rate of 0%. GAAP net loss per share for the full fiscal year 2016 is based on an estimated 25.5 million weighted average basic shares outstanding. GAAP net income per diluted share for the full fiscal year 2016 is based on an estimated 26.1 million fully-diluted weighted average shares outstanding.

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

Conference Call Information for Today, Tuesday, July 26, 2016
The Company will host a corresponding conference call and live webcast at 4:30 p.m. Eastern Time today.  To access the conference call, dial 877-407-9124 (for the U.S.) or 201-689-8584 (for international callers).  A live webcast will be available on the Investor Relations section of the Company’s corporate website at www.LogMeInInc.com and via replay beginning approximately two hours after the completion of the call.  An audio replay of the call will also be available to investors until 11:59 p.m. Eastern Time on August 2nd, 2016, by dialing 877-481-4010 (for the U.S.) or 919-882-2331 (for international callers) and entering replay id 10063.

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures including 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 non-GAAP cash flow from operations.

Adjusted EBITDA is GAAP net income (loss) excluding income tax expense (benefit), interest, and other (income) expense, net, depreciation and amortization, acquisition related costs, stock-based compensation expense, and litigation related expense.  Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue.  Non-GAAP operating income excludes acquisition related costs and amortization, stock-based compensation expense, and litigation related expense. Non-GAAP provision for income taxes excludes the tax impact of acquisition related costs and amortization, stock-based compensation expense, and litigation related expense. Non-GAAP net income and non-GAAP net income per diluted share exclude acquisition related costs and amortization, stock-based compensation expense, litigation related expense, and their related tax impacts. Non-GAAP cash flow from operations excludes payments and receipts related to 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 the Company’s 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, Inc. (NASDAQ:LOGM) simplifies how people connect to each other and the world around them.  With millions of users worldwide, our cloud-based solutions make it possible for people and companies to connect and engage with their workplace, colleagues, customers and products anywhere, anytime. LogMeIn is headquartered in Boston with offices in Bangalore, Budapest, Dublin, London, San Francisco and Sydney.

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 and services, the Company’s ability to deliver future growth, and the Company's financial guidance for fiscal year 2016 and the third quarter of 2016. 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 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, 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 termination of the merger agreement with Citrix or the failure of the proposed transaction to be consummated for any reason,  disruption of management time from ongoing business operations due to the proposed merger, failure to realize the estimated synergies or growth from the proposed merger or that such benefits may take longer to realize than expected, unanticipated costs of integration, the effect of the announcement of the proposed merger or the consummation of the proposed merger on the ability of the Company to retain and hire key personnel and maintain relationships with key business partners and customers, and on their operating results and businesses generally 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 is not under any obligation, and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof.

No Offer or Solicitation

This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.  No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Subject to certain exceptions to be approved by the relevant regulators or certain facts to be ascertained, the public offer will not be made directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mails or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction. 

Additional Information about the Proposed Transaction and Where to Find It

In connection with the proposed merger, the Company and GetGo intend to file registration statements with the SEC. The Company will also file a proxy statement. Citrix stockholders are urged to read the prospectus and/or information statement that will be included in the registration statements and any other relevant documents when they become available, and the Company’s stockholders are urged to read the proxy statement and any other relevant documents when they become available, because they will contain important information about LogMeIn, GetGo, Citrix and the proposed transactions. The proxy statement, prospectus and/or information statement and other documents relating to the proposed transactions (when they become available) can also be obtained free of charge from the SEC’s website at www.sec.gov. The proxy statement, prospectus and/or information statement and other documents (when they are available) can also be obtained free of charge from Citrix upon written request to, Investor Relations, Eduardo Fleites or by calling 954-229-5758 or upon written request to LogMeIn, Investor Relations, Rob Bradley, or by calling 781-897-1301.

Certain Information Regarding Participants

This press release is not a solicitation of a proxy from any security holder of the Company. However, the Company, Citrix and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders of the Company in connection with the proposed transaction under the rules of the SEC. Information about the directors and executive officers of Citrix may be found in its Annual Report on Form 10-K filed with the SEC on February 18, 2016, and its definitive proxy statement relating to its 2016 Annual Meeting of Shareholders filed with the SEC on April 29, 2016. Information about the directors and executive officers of the Company may be found in its Annual Report on Form 10-K filed with the SEC on February 19, 2016, and its definitive proxy statement relating to its 2016 Annual Meeting of Stockholders filed with the SEC on April 8, 2016.

This press release is not intended to and does not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

LogMeIn is a registered trademark of LogMeIn, Inc. in the US and other countries around the world.

 
LogMeIn, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
     
     
     
  December 31, June 30,
   2015    2016  
     
ASSETS
Current assets:    
Cash and cash equivalents $123,143  $139,882 
Marketable securities  85,284   85,515 
Accounts receivable, net  16,011   14,536 
Prepaid expenses and other current assets  11,997   14,260 
Total current assets  236,435   254,193 
Property and equipment, net  21,711   26,088 
Restricted cash  2,467   2,504 
Intangibles, net  71,590   66,297 
Goodwill  117,545   117,545 
Other assets  5,753   5,091 
Deferred tax assets  198   196 
Total assets $455,699  $471,914 
     
LIABILITIES AND EQUITY
Current liabilities:    
Accounts payable $10,327  $12,333 
Accrued liabilities  31,674   33,072 
Deferred revenue, current portion  134,297   161,830 
Total current liabilities  176,298   207,235 
Long-term debt  60,000   45,000 
Deferred revenue, net of current portion  2,692   2,061 
Deferred tax liabilities  5,812   5,872 
Other long-term liabilities  3,086   6,675 
Total liabilities  247,888   266,843 
Commitments and contingencies    
Preferred stock  -   - 
Equity:    
Common stock  275   281 
Additional paid-in capital  276,793   292,048 
Retained earnings  21,074   22,507 
Accumulated other comprehensive loss  (5,216)  (5,313)
Treasury stock  (85,115)  (104,452)
Total equity  207,811   205,071 
Total liabilities and equity $455,699  $471,914 
     

 

LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
         
Revenue $64,834  $83,266  $125,943  $163,000 
Cost of revenue  8,535   11,436   16,517   22,636 
Gross profit  56,299   71,830   109,426   140,364 
Operating expenses        
Research and development  10,256   14,046   19,379   29,410 
Sales and marketing  34,604   41,663   68,990   83,905 
General and administrative  8,608   11,404   15,314   21,656 
Legal settlements  -   -   3,600   - 
Amortization of acquired intangibles  282   1,357   558   2,740 
Total operating expenses  53,750   68,470   107,841   137,711 
Income from operations  2,549   3,360   1,585   2,653 
Interest income  179   186   353   369 
Interest expense  (114)  (367)  (151)  (759)
Other income (expense), net  258   (92)  1,520   (496)
Income before income taxes  2,872   3,087   3,307   1,767 
Provision for income taxes  (484)  (581)  (547)  (334)
Net income $2,388  $2,506  $2,760  $1,433 
         
Net income per share:        
Basic $0.10  $0.10  $0.11  $0.06 
Diluted $0.09  $0.10  $0.11  $0.06 
Weighted average shares outstanding:        
Basic  24,703   25,135   24,620   25,144 
Diluted  25,673   25,828   25,615   25,841 
         
Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Diluted Net Income per share (unaudited)
(In thousands, except per share data)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
         
GAAP Income from operations $2,549  $3,360  $1,585  $2,653 
Add Back:        
Stock-based compensation expense  7,714   9,736   12,567   18,328 
Litigation related expenses  326   -   4,585   35 
Acquisition related costs and amortization  1,991   5,524   4,504   11,284 
Non-GAAP Operating income  12,580   18,620   23,241   32,300 
Interest and other income (expense), net  323   (273)  1,722   (886)
Non-GAAP Income before income taxes  12,903   18,347   24,963   31,414 
Non-GAAP Provision for income taxes  (3,842)  (5,611)  (7,389)  (9,613)
Non-GAAP Net income $9,061  $12,736  $17,574  $21,801 
         
Non-GAAP Diluted net income per share: $0.35  $0.49  $0.69  $0.84 
Diluted weighted average shares outstanding used in        
computing per share amounts:  25,673   25,828   25,615   25,841 
         
Calculation of Adjusted EBITDA (unaudited)
(In thousands)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
         
GAAP Net income $2,388  $2,506  $2,760  $1,433 
Add Back:        
Stock-based compensation expense  7,714   9,736   12,567   18,328 
Litigation related expenses  326   -   4,585   35 
Acquisition related costs  1,001   3,017   2,529   6,239 
Interest and other (income) expense, net  (323)  273   (1,722)  886 
Income tax expense  484   581   547   334 
Depreciation and amortization expense  3,057   5,260   5,934   10,704 
Adjusted EBITDA $14,647  $21,373  $27,200  $37,959 
         
Stock-Based Compensation Expense (unaudited)
(In thousands)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
         
Stock-based compensation expense:        
Cost of revenue $464  $690  $818  $1,238 
Research and development  1,530   1,728   2,858   3,226 
Sales and marketing  2,825   4,651   4,855   8,478 
General and administrative  2,895   2,667   4,036   5,386 
Total stock based-compensation $7,714  $9,736  $12,567  $18,328 
         

 

LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
         
         
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
Cash flows from operating activities        
Net income $2,388  $2,506  $2,760  $1,433 
Adjustments to reconcile net income to net cash        
provided by operating activities:        
Depreciation and amortization  3,057   5,260   5,934   10,704 
Amortization of premiums on investments  70   120   137   257 
Change in fair value of contingent consideration liability  -   170   3   502 
Amortization of debt issuance costs  55   74   78   144 
Provision for bad debts  19   7   38   26 
Stock-based compensation  7,714   9,736   12,567   18,328 
Other, net  (21)  9   (17)  (3)
Changes in assets and liabilities:        
Accounts receivable  (1,537)  509   3,494   1,562 
Prepaid expenses and other current assets  6,200   1,792   (2,491)  (2,306)
Other assets  13   1,034   207   949 
Accounts payable  538   811   4,381   2,523 
Accrued liabilities  (7,666)  2,840   (3,772)  342 
Deferred revenue  6,857   (271)  34,341   26,073 
Other long-term liabilities  900   1,397   905   3,460 
Net cash provided by operating activities (1)(2)  18,587   25,994   58,565   63,994 
Cash flows from investing activities        
Purchases of marketable securities  (37,174)  (17,789)  (57,170)  (31,573)
Proceeds from sale or disposal or maturity of marketable securities  37,000   17,500   57,000   31,250 
Purchases of property and equipment  (2,668)  (4,436)  (6,569)  (8,812)
Intangible asset additions  (866)  (323)  (1,884)  (715)
Cash paid for acquisitions  -   -   -   (61)
(Increase) decrease in restricted cash and deposits  (1)  95   (51)  (31)
Net cash used in investing activities  (3,709)  (4,953)  (8,674)  (9,942)
Cash flows from financing activities        
Repayments of borrowings under credit facility  -   (7,500)  -   (15,000)
Proceeds from issuance of common stock upon option exercises  3,434   4,279   12,284   5,404 
Payments of withholding taxes in connection with restricted stock unit vesting  (5,243)  (6,502)  (6,885)  (8,617)
Payment of debt issuance costs  (98)  (84)  (774)  (349)
Payment of contingent consideration  -   -   (226)  - 
Purchase of treasury stock  (9,668)  (10,970)  (14,732)  (19,337)
Net cash used in financing activities  (11,575)  (20,777)  (10,333)  (37,899)
Effect of exchange rate changes on cash and cash equivalents  679   (1,573)  (4,376)  586 
Net increase (decrease) in cash and cash equivalents  3,982   (1,309)  35,182   16,739 
Cash and cash equivalents, beginning of period  132,160   141,191   100,960   123,143 
Cash and cash equivalents, end of period $136,142  $139,882  $136,142  $139,882 
         
(1) Cash flows from operating activities in the six months ended June 30, 2015 and 2016 includes $2.0 million and $4.5 million, respectively, of acquisition-related retention-based bonus payments related to the Meldium and Ionia acquisitions.  There were no such payments in the three months ended June 30, 2015 and 2016.
(2) Cash flows from operating activities in the three and six months ended June 30, 2015 includes a litigation net settlement payment of $3.6 million.
         
         
Calculation of Non-GAAP Cash Flows from Operating Activities (unaudited)
(In thousands)
         
         
  Three Months Ended June 30, Six Months Ended June 30,
   2015    2016    2015    2016  
         
GAAP Cash flows from operating activities $18,587  $25,994  $58,565  $63,994 
Add Back:        
Litigation-related payments  3,859   -   4,036   100 
Acquisition-related payments  -   34   15   174 
Cash flows from operating activities before litigation-related and        
acquisition-related payments $22,446  $26,028  $62,616  $64,268 
         

 

Contact Information:
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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Source: LogMeIn, Inc.
NASDAQ:LOGM
Price 85.12 -1.85 -2.13% Volume: 807,037 Dec 14, 2018 PM ET Pricing delayed 20 minutes> More

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Investor Contact

Rob Bradley
Vice President of Investor Relations
Phone: (781) 897-0694

InvestorRelations@LogMeIn.com

Disclaimer

You are now leaving LogMeIn's website and are being directed to a website that is operated and maintained by a third party (an "External Site"). LogMeIn does not control the External Site and is not responsible for the data, content or availability of the External Site. This link to the External Site is provided for convenience purposes only. We make no representation or warranty regarding the accuracy of the information contained in the External Sites. We suggest that you always verify the information obtained from linked websites before acting upon this information. Also, please be aware that the security and privacy policies on this External Site may be different than LogMeIn’s policies, so we encourage you to read any third party privacy and security policies closely.

LogMeIn’s filings with the U.S. Securities and Exchange Commission, or SEC, including LogMeIn’s annual reports on Form 10-K which include our audited financial statements, are available on LogMeIn’s Investor Relations website at https://investor.logmeininc.com/about-us/investors/financials/sec-filings/default.aspx free of charge. The data and other content contained on the External Site are not meant, and should not be used, as a substitute for information contained in LogMeIn’s filings with the SEC or disclosed through other channels used by LogMeIn to comply with its disclosure obligations under Regulation FD. The reports contained on the External Site may contain forward-looking information about LogMeIn’s future financial performance and results. Please note that the information presented on the External Site is deemed representative at the time of its original release and that changes in historical information may occur. 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. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. We caution you to consider the risk factors described in our SEC filings, which could cause actual results to differ materially from the forward-looking statements disclosed on the External Site.

Non-GAAP Information

The External Site may contain certain non-GAAP and pro forma non-GAAP financial measures, in addition to financial measures determined in accordance with GAAP. “GAAP” refers to generally accepted accounting principles in the United States. The non-GAAP financial measures contained on the External Sites are not prepared in accordance with GAAP and may not be comparable to non-GAAP financial measures used by other companies. The non-GAAP information should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. 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 its 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 are included in LogMeIn’s quarterly press releases, which can be found in the Financials section of LogMeIn’s investor relations website under “Quarterly Results.”

By clicking “Accept”, you acknowledge that you have read and understand the information set forth above and agree that you will not misrepresent any calculation derived from the data or other content contained on the External Site as LogMeIn’s or otherwise.