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1 © 2017, LogMeIn, Inc. LogMeIn Investor Presentation Q1 2018

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Page 1: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

1© 2017, LogMeIn, Inc.

LogMeIn Investor PresentationQ1 2018

Page 2: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

2© 2017, LogMeIn, Inc.

Safe Harbor

2© 2017, LogMeIn, Inc.

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 in this message including those set forth above. 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 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 February 20, 2018, 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 April 26, 2018 located on our

website at www.LogMeInInc.com.

Page 3: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

3© 2017, LogMeIn, Inc.

Unlocking the potential of the modern workforce

Page 4: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

4© 2017, LogMeIn, Inc.

+ Disruptive innovator

+ Freemium go-to-market

+ Efficient development

+ Adjacent markets

+ Pricing & packaging

+ Efficient inside sales

$0

$200

$400

$600

$800

$1,000

$1,200

+ Portfolio of leading products

+ Unique financial profile

+ Market expansion opportunities

join.me,LastPass,

& Bold

Growth

Legacy

Start-up success story2003 - 2012

Maturing public company2013 - 2016

SaaS at scale 2017 and beyond

Pro &Rescue

$0

$100

$200

$300

$400

Page 5: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

5© 2017, LogMeIn, Inc.

Highly Scalable Platform

>2MCustomers

>6BAnnual

interactions

4MDaily

active users

24MFree users

Page 6: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

6© 2017, LogMeIn, Inc.

Poised for Strategic Expansion

$2.9B$0.6B

$1.3B

Web Conferencing1

Remote Support& Chat3

Remote Access2

$4.8B current market opportunity

$25.5B

$6.8B

$13.8BUnified

Communication & Collaboration

(UCC)4

Customer Service & Contact Center6

Identity and Access Management5

$46.1B expanded market opportunity

1Frost & Sullivan, Analysis of the Global Web Conferencing Market, January 2016, 2IDC, Worldwide Remote Access Services and Applications 2013–2017. 3Frost & Sullivan, Web Chat Market, June 2015, and IDC, Worldwide Clientless Remote Support Software, September 2015, 4IDC, Worldwide Unified Communications and Collaboration Revenue Snapshot, 2016-2021, May 2017, 5IDC, Worldwide Identity and Access Management Forecast 2017-2021, August 2017, 6Forrester Research, The Business Applications Landscape 2017 To 2020, November 2017

Page 7: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

7© 2017, LogMeIn, Inc.

Collaboration Segment

$667M2017

revenue1

58%Of total revenue1

8%2017 YoYgrowth1

28MParticipants per month

$25.5B

$6.8B

$13.8B

Unified Communication & Collaboration

(UCC)4

Customer Service & Contact Center6

Identity and Access

Management5

Improving the broader UCC market with elegant, streamlined solutions combining voice, screen sharing, video, and chat

1All metrics are calculated on a pro-forma basis

Page 8: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

8© 2017, LogMeIn, Inc.

Identity and Access Management Segment

28%Of 2017 revenue

11%2017 YoYgrowth

15MUsers

$25.5B$6.8B

$13.8B

Unified Communication & Collaboration

(UCC)4

Customer Service & Contact

Center6

Identity and Access Management5

Extending value of core access products, winning password management, and solving adjacent security needs

$307M2017

revenue

Page 9: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

9© 2017, LogMeIn, Inc.

Service Segment

$180M2017

revenue

250MSupport sessions

$25.5B

$6.8B

$13.8B

Unified Communication & Collaboration

(UCC)4

Customer Service &

Contact Center6

Identity and Access Management5

Enhancing company’s customer engagement tools with a leading support and intelligent engagement platform

17%Of 2017 revenue

(1%)2017 YoYgrowth

Page 10: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

10© 2017, LogMeIn, Inc.

Financials

Page 11: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

11© 2017, LogMeIn, Inc.

2018 Guidance

$1.02B $1.08B

Revenue

2016 2017

$295M

$373M

Adjusted EBITDA

2016 2017

A reconciliation of GAAP and non-GAAP financial measures are available in our press release dated February 15, 2018 located on our website at www.LogMeInInc.com.All 2018E metrics are inclusive of Jive

2018E

$1.208B - $1.223B

2018E

$442M - $450M

$214M

$316M

Free Cash Flow

2016 2017 2018E

~$375M

Page 12: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

12© 2017, LogMeIn, Inc.

Disciplined Capital Returns

Ongoing repurchases to reduce share count

Expanded $0.30 per share dividend

M&A for strategic investment opportunities

Free Cash Flow for Shareholder Returns

$

Expected $900M Return Over Three Years

Page 13: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

13© 2017, LogMeIn, Inc.

M&A criteria

Strategicopportunity

Leveraging our operational strengths

Long-termaccretive

Debt: 2.0X – 2.5X

EBITDA

Page 14: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

14© 2017, LogMeIn, Inc.

Summary

Large and Growing SaaS Company With

Unique Financial Profile

Leadership in Existing Markets with

Strategy for TAM Expansion

Disciplined Capital Return Plan Targeting

75% of Free Cash Flow to Shareholders

Page 15: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

15© 2017, LogMeIn, Inc.

Thank You

Page 16: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

16© 2017, LogMeIn, Inc.

Appendix A: GAAP to Non-GAAP Reconciliation

Q1’18 Expense

COGS R&D S&M G&A Amortization Total

GAAP Expense $62,942 $43,116 $88,215 $1,533 $41,083 $236,889

Non-GAAP Items

Stock Comp $1,216 $4,943 $3,695 $6,112 $ - $ 15,966

Amortization of Acquired Intangibles $17,885 $ - $ - $ - $41,083 $58,968

Acquisition Related Costs $89 $901 $15 $4,140 $ - $5,145

Litigation Related Costs $ - $ - $ - $181 $ - $181

Cap Software Fair Value Adj $ (3,719) $ - $ - $ - $ - $ (3,719)

Gain on Disposition of Assets $ - $ - $ - $ (33,910) $ - $ (33,910)

Total Non-GAAP Items $15,471 $5,844 $3,710 $ (23,477) $41,083 $42,631

Non-GAAP Expense $47,471 $37,272 $84,505 $25,010 $ - $ 194,258

Q1’18 Revenue

Total

GAAP Revenue $279,217

Non-GAAP Items

Deferred Rev Fair Value Adj $1,058

Total Non-GAAP Items $1,058

Non-GAAP Revenue $280,275

Page 17: LogMeIn Investor Presentation · 2018-05-24 · This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward ... 4IDC, Worldwide

17© 2017, LogMeIn, Inc.

Appendix B: Supplemental Data Sheet

YOY Revenue Growth by Cloud Q1'17 Q2'17 Q3'17 Q4'17 FY'17 Q1'18

Collaboration 6% 7% 7% 5% 6% 5%

Identity and Access Management 7% 9% 12% 14% 11% 19%

Service -2% -4% 1% -1% -1% 1%

Percentage of Revenue by Cloud Q1'17 Q2'17 Q3'17 Q4'17 FY'17 Q1'18

Collaboration 55% 55% 55% 54% 55% 54%

Identity and Access Management 28% 28% 28% 29% 28% 30%

Service 17% 17% 17% 16% 17% 16%

International Revenue Q1'17 Q2'17 Q3'17 Q4'17 FY'17 Q1'18

International Revenue 24% 23% 24% 24% 24% 24%

Gross Renewal Rate Q1'17 Q2'17 Q3'17 Q4'17 FY'17 Q1'18

Gross Renewal Rate ~75% ~75% ~75% ~75% ~75% ~75%

Quarter End Headcount Q1'17 Q2'17 Q3'17 Q4'17 FY'17 Q1'18

Quarter End Headcount 2,746 2,778 2,823 2,760 2,760 2,677

1All metrics are calculated on a pro-forma basis excluding Jive