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LogMeIn Investor Presentation Q2 2017

LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

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Page 1: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

LogMeIn Investor PresentationQ 2 2 0 1 7

Page 2: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

1© 2017, 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 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 March 1, 2017, 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 July 27th, 2017 located on our website at www.LogMeInInc.com.

Page 3: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

2© 2017, LogMeIn, Inc.

Our Vision—possibilities increase

with connectivity

&

Our Mission—to simplify the way

people connect to each other and the world

around them

Page 4: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

3© 2017, LogMeIn, Inc.

Defining a New Standard for SaaS

Leadership in Large and Growing Markets

Delivering Growth, Margin Expansion and Strong Cash Flow

Disciplined Capital Returns

Page 5: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

4© 2017, LogMeIn, Inc.

Leadership in Existing Markets with Strategy for Future TAM Expansion

Collaboration

Customer Engagement

Identity & Access Management

Current Market Definition

Current Position

Web Conferencing1

$2.4B#2

(#1 in SMB)

Remote Access

$500M#1

Remote Support & Chat4

$1.3B#1

Evolving Market Definition

Current ProductSuite

Unified Collaboration (UCC)2

$15.9B

Identity and Access Management3

$6.2B

$13.3B

Customer Service & Contact Center5

1Frost & Sullivan, Analysis of the Global Web Conferencing Market, January 2016, 2IDC, Worldwide Unified Communications and Collaboration Forecast, 2015-2019, November 2015, 3IDC, Worldwide Identity and Access Management Forecast 2015-2019, October 2015, 4Frost & Sullivan, Web Chat Market, June 2015, and IDC, Worldwide Clientless Remote Support Software, September 2015 5IDC - Worldwide Contact Center Applications Market Shares, 2015 (09/16); Worldwide Semiannual Software Tracker, 2015H2

Page 6: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

5© 2017, LogMeIn, Inc.

A Leader in Web Conferencing Evolving to a Leader in Collaboration

55%

Of total company revenue

Leveraging voice, screen sharing, video, and chat capabilities to

broaden our collaboration offering

$15.9B Addressable market

growing at 14%1

¹IDC, Worldwide Unified Communications and Collaboration Forecast, 2015-2019, November 2015

Distributed and increasingly mobile environments drive the

need for innovative collaborative solutions

20 MillionUsers/month using

GoToMeeting & join.me

12 BillionConference

calling minutes/ year

Page 7: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

6© 2017, LogMeIn, Inc.

A Leader in Remote Access Evolving to a Leader in Cloud-Based Identity Management

Expand cloud-based identity and access capabilities enabling

businesses in a cloud-centric world

28%

Of total company revenue

¹IDC, Worldwide Identity and Access Management Forecast 2015-2019, October 2015

Proliferation of cloud-based applications drives

the need for secure identity solutions

500 MillionCentral connects IT managers 500M+

times annually

10 MillionLastPass users at the end of

2016

$6.2B Addressable market

growing at 8%1

Page 8: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

7© 2017, LogMeIn, Inc.

A Leader in Remote Support Evolving to a Leader in Customer Engagement

Capitalize on the convergence of support and service to help companies

better engage with customers

17%

Of total company revenue

¹IDC - Worldwide Contact Center Applications Market Shares, 2015 (09/16); Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September 2015

Proliferation of customers support requirements drives the need for omnichannel

solutions

100 Million+Rescue and

GoToAssist support sessions

90 MillionBoldChat

chat sessions

$13.3B Addressable market

growing at 9.3%1

Page 9: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

8© 2017, LogMeIn, Inc.

Three-Year Financial Targets1

$0

$100

$200

$300

$400

$500

$600

2016 2019

Adjusted EBITDA (M)

$0

$100

$200

$300

$400

2016 2019

Adjusted Free Cash Flow (M)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2016 2019

Revenue (M)

Target CAGR of 10%

39%

Target 28%of Revenue or

~$7.50 per share

TargetMargin

Expansion

29%

¹The above table is a depiction of long-term management targets and should not be construed as forecasts, projections, or guidance2Based on Pro-Forma results from 2016

2 2 2

Page 10: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

9© 2017, LogMeIn, Inc.

Benefit of $100M Cost Synergy PlanAdjusted EBITDA Margin Expected to Increase from 29% to 38% in 2018 as Synergies are Realized1

Year One Synergy Target Increased from $65M to $90M Five Months After Merger Close

~45%Sales & Marketing

Sales and marketing optimization, consolidations of overlapping go-to-market

programs and functions

~20% Engineering

Leveraging existing low cost R&D

environments

~15% IT Optimization

Reductions in systems and

infrastructure overlap

~20%G&A and Facilities

Consolidating duplicative costs and

avoiding GoTostandup expenses

¹Adjusted EBITDA margins are targets and do not represent guidance

Page 11: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

10© 2017, LogMeIn, Inc.

Three-Year $700M Capital Return Plan

Ongoing repurchases to reduce share count

$0.25 per share regular dividend

M&A for strategic investment opportunities

75% of Free Cash Flow for Shareholder Returns

$

Capacity for $1B over Three Years

Page 12: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

11© 2017, LogMeIn, Inc.

LogMeIn’s Q3’17 and FY’17 Guidance

Non-GAAP Revenue (M) EBITDA (M) EPS

Q3’17 $271 - $273$100 - $102

$1.10 - $1.1237% Margin

FY’17 $1,012 - $1,0171$354 - $361

$4.00 - $4.1035% Margin

1FY’17 revenue guidance excludes GoTo’s January 2017 revenue of approximately $58M

Page 13: LogMeIn Investor Presentation · LogMeIn Investor Presentation Q2 2017 ... Worldwide Semiannual Software Tracker, 2015H2, IDC, Worldwide Clientless Remote Support Software, September

12© 2017, LogMeIn, Inc.

Investor Takeaways

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