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LogMeIn (LOGM) Q2 Earnings & Revenues Surpass Estimates

Zacks Equity Research
·3 min read

LogMeIn LOGM reported second-quarter 2020 adjusted earnings of $1.54 per share, which beat the Zacks Consensus Estimate by 24.2% and also jumped 31.6% year over year.

Revenues of $350.7 million surpassed the consensus mark by 7.3% and also improved 11.9% year over year.

LogMeIn did not hold a conference discussing second-quarter 2020 results or issue any guidance due to its impending acquisition. Notably, in December 2019, the company entered into a definitive agreement to be acquired by global private equity firms Francisco Partners and Evergreen Coast Capital Corp.

Quarter Details

Unified Communication and Collaboration business revenues increased 12.8% year over year to $194 million.

Identity and Access Management revenues rose 14.3% from the year-ago quarter to $112 million.
 

LogMein, Inc. Price, Consensus and EPS Surprise

LogMein, Inc. Price, Consensus and EPS Surprise
LogMein, Inc. Price, Consensus and EPS Surprise

LogMein, Inc. price-consensus-eps-surprise-chart | LogMein, Inc. Quote

 

Customer Engagement and Support business revenues climbed 4.7% on a year-over-year basis to $45 million.

The company’s gross renewal rate across all products was nearly 80%.

International revenues constituted 22% of total revenues in the second quarter.

Moreover, in the quarter under review, adjusted EBITDA increased 24.9% year over year to $119.3 million. Adjusted EBITDA margin expanded 350 basis points (bps) on a year-over-year basis to 30.5%.

LogMeIn’s non-GAAP operating income increased 28.5% year over year to $102.3 million. Operating margin expanded 380 bps on a year-over-year basis to 29.2%.

 

Balance Sheet and Cash Flow

LogMeIn had cash and cash equivalents of $249.5 million as of Jun 30, 2020, compared with $189.6 million at the end of first-quarter 2020.

The company generated $107 million of adjusted cash flow from operational activities and $88.6 million of adjusted free cash flow in the reported quarter.

Zacks Rank and Stocks to Consider

Currently, LogMeIn carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Dropbox DBX, Everbridge EVBG and Asure Software ASUR. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Both Dropbox and Everbridge are scheduled to report earnings on Aug 6. Asure Software is set to release quarterly results on Aug 10.

 

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Asure Software Inc (ASUR) : Free Stock Analysis Report
 
LogMein, Inc. (LOGM) : Free Stock Analysis Report
 
Everbridge, Inc. (EVBG) : Free Stock Analysis Report
 
Dropbox, Inc. (DBX) : Free Stock Analysis Report
 
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Zacks Investment Research