logm investor presentation q4 2015

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Investor Presentation Q4 2015

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Page 1: Logm investor presentation q4 2015

Investor PresentationQ 4 2 0 1 5

Page 2: Logm investor presentation q4 2015

2© 2015, LogMeIn, Inc.

Safe Harbor Statement

This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underlying assumptions, and other statements which are other than statements of historical facts. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “hope,” “expects,” “intends,” “plans,” “anticipates,” “contemplates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “continue,” and other similar terminology or the negative of these terms. From time to time, we may publish or otherwise make available forward-looking statements of this nature. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by the cautionary statements described on this message including those set forth below. In addition, we undertake no obligation to update or revise any forward-looking statements to reflect events, circumstances, or new information after the date of the information or to reflect the occurrence or likelihood of unanticipated events, and we disclaim any such obligation. Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors, many of which are beyond our control, that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. These forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. LogMeIn’s actual results could differ materially from those stated or implied in forward-looking statements. Past performance is not necessarily indicative of future results. We do not intend to update these forward looking statements even though our situation may change in the future. Further, we encourage you to review the risks that we face and other information about us in our filings with the SEC, including our Annual Report on Form 10-K which was filed on February 20th, 2015, and our Quarterly Reports on Form 10-Q, all of which are available at www.SEC.gov. We have also included GAAP and non-GAAP and adjusted EBITDA financial measures in this presentation. A reconciliation of GAAP and non-GAAP financial measures are available in our press release dated February 11th, 2016 located on our website at www.LogMeInInc.com.

Page 3: Logm investor presentation q4 2015

We believe –possibilities

increase with connectivity

Page 4: Logm investor presentation q4 2015

Our mission –simplify how

people connect to each other and the world around them

Page 5: Logm investor presentation q4 2015

5© 2015, LogMeIn, Inc.

Key Business Areas

1%of 2015 Rev

IoT

Instant online meeting and access solutions with ease of

use that delights users.

Software suite to connect, manage, and engage

products and customers.

34%of 2015 Rev

IT Management

Best in class management applications for SMBs and

IT professionals.

32%of 2015 Rev

Collaboration

32%of 2015 Rev

Service

Durable, fast remote support and chat software

for PCs and mobile.

Page 6: Logm investor presentation q4 2015

6© 2015, LogMeIn, Inc.

25%Adjusted EBITDA

22%Revenue Growth

6

Full Year 2015 Performance

32%Operating Cash

Flow Margin

Page 7: Logm investor presentation q4 2015

7© 2015, LogMeIn, Inc.

Driving Consistent Revenue and EBITDA Growth (M)

2009 2010 2011 2012 2013 2014 2015 2016 GUIDANCE

Revenue EBITDA

$74.4

$101.1

$119.5

$138.8

$166.3

$222.0

$26.9$30.6 $32.0 $34.5

$49.5

$15.4

$322 - $326

$76.5 - $80.0

CAGR 24%

$271.6

$67.6

Page 8: Logm investor presentation q4 2015

8© 2015, LogMeIn, Inc.

Attracting World Class CustomersOur products are simple enough for small business and strong enough for the enterprise.

Page 9: Logm investor presentation q4 2015

Collaboration

Page 10: Logm investor presentation q4 2015

10© 2015, LogMeIn, Inc.

Instant Collaboration and Access, Simply Delivered

Industry Drivers

Online meetings are increasingly spontaneous

66% of companies are actively looking for a new collaboration solution¹

Long tail of applications and data moving to the cloud

Solution

join.me ranks #1 in speed and ease of use with 1M+ new users per month

The average join.me enterprise customer saves 50% while doubling their licenses

LogMeIn Pro allows people to connect to applications or data from anywhere

¹Ovum Research

Page 11: Logm investor presentation q4 2015

11© 2015, LogMeIn, Inc.

Strong Growth Driver

$2.4B web

conferencing market2Best in classNet Promoter Score1150%

Increase in subscribers in the last 12 months

Primary

growth driver for the company

1M+new users per month

¹Satmetrix 2Frost & Sullivan Jan, 2016

Page 12: Logm investor presentation q4 2015

IT Management

Page 13: Logm investor presentation q4 2015

13© 2015, LogMeIn, Inc

Empowering the Modern Workforce

Industry Drivers

70% of employees work from alternate locations regularly¹

By 2018, 54% of companies will have at least 30% of their applications in the cloud²

49% of ex-employees have accessed a former employers account after leaving a company³

Solution

Pro offers instant access to apps, desktops, and data from anywhere

Central offers business critical IT management and automation

LastPass provides intuitive and secure password and application management

¹Intelligent Office, ²ESG Research, ³Osterman Research

Page 14: Logm investor presentation q4 2015

14© 2015, LogMeIn, Inc.

Strong Cash Flow Generator

Central is the

top ratedremote access tool for small businesses1

Acquired

on October 9, 2015#1Cash flow engine for the company 12M

connected PCs

Central connects IT managers with employees

500M times annually

1Qualitrics

Page 15: Logm investor presentation q4 2015

Service

Page 16: Logm investor presentation q4 2015

16© 2015, LogMeIn, Inc.

Best in Class Support Tools

Industry Drivers

Companies utilize tools to support connected products to improve service

Problems aren’t always solvable through remote access

Engagement expectations have increased and leverage multiple platforms

Solution

Rescue is the #1 premium support tool in the world¹

Rescue Lens is a video-aided support capability that allows technicians to remotely support virtually any product

Bold delivers a modern, mobile-first customer chat experience

¹The top three computer manufacturers use Rescue for customer support, Gartner

Page 17: Logm investor presentation q4 2015

17© 2015, LogMeIn, Inc.

Good Margin Contributor

$500Mmarket growing @ 10%1

165Msessions in 20152

Best in class customer list (Microsoft, HPSymantec, Dell) #1

in mobile device support

Customers who use chat are

7.5Xmore likely to convert

1IDC 2Rescue and BoldChat sessions combined

Page 18: Logm investor presentation q4 2015

Xively

Page 19: Logm investor presentation q4 2015

19© 2015, LogMeIn, Inc.

The Internet of Things

Industry Drivers

Increasingly, connected products are being built requiring new expertise

Security concerns are one of the biggest barriers to broader IoT adoption¹

Companies are struggling to provide sufficient speed and scalability

Solution

Xively provides a complete enterprise IoT solution

Blueprint makes it easy for companies to manage permissions, provisioning, and authentications

Xively’s messaging service delivers high-speed communication between millions of devices

¹BI Inside Report

Page 20: Logm investor presentation q4 2015

20© 2015, LogMeIn, Inc.

Transformative Opportunity

25Bconnected devices by 20201

Voted Best IoT Platform3

1Gartner Research, 2IDC, 3M2M Evolution, 4Xively’s capacity

$600B+current market2

1Mmessages per second4

Customer Wins

Page 21: Logm investor presentation q4 2015

21© 2015, LogMeIn, Inc.

Three Growth Initiatives

Expand our collaboration opportunity

Disrupt the high-growth identity

market

Help companies transition into

connected businesses

Page 22: Logm investor presentation q4 2015

22© 2015, LogMeIn, Inc.

Financial Highlights

~30% Operating cash flow margin

Strong revenue growth with

robust EBITDA

Addressing large and growing

markets

$

Page 23: Logm investor presentation q4 2015

When Everything is Connected, Anything is Possible