Date post: | 18-Dec-2014 |
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Investor Presentation
Safe Harbor Statement
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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 March 10th, 2014, and our Quarterly Report on Form 10-Q which was filed on February 14th, 2014, and 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 13th, 2014 located on our website at www.LogMeIn.com.
A G E N D A
Market Leader. Positioned for Growth.
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The Company
The Business Model
The Growth
Sales Growth
Adjusted EBITDA
Free Cash Flow
Market-Leading SaaS Company
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20% 20% 20%
• Accelerate bookings and revenue growth
• Introduce new join.me premium features
• Expand SMB IT opportunity
• Launch commercial Internet of Things (IoT) Platform-as-a-Service (PaaS)
• Effectively scale the organization
Record of Meeting Goals - 2013
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Internet
Computers
Mobile
People
Internet of Things
Everything
Powering the Connectivity Waves
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Gravity™ Platform
1.1B PCs 5.8B Devices 50B Devices
Clouds Connected by Gravity™
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Service
40% of revenue
$1.5 Billion
IT Management
35% of revenue
$2 Billion
25% of revenue
Collaboration
$4 Billion
Connected Object
$1 Trillion +
Leverage proprietary platform
A Disruptive Business Model
Focus on SMB IT
Drive business-to-business sales
Target large service organizations
Expand share of wallet
Powerful Competitive Advantages
The Gravity™ Platform
Leverage Proprietary Technology Platform
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• Proprietary platform of software, databases, servers, security
• 7 data centers worldwide
• Peer-to-peer architecture
• Delivers faster, lower cost data transfer
• Supports client acquisition model
• Scalable and secure “moat”
Gravity™ Platform
Drive Business-to-Business Sales
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Renew
Outbound content • Targeted campaigns • Acquisition marketing • Whitepapers & demos
Drive inbound inquiries • Search • Trials • Freemium
Convert to premium subscriber • E-commerce • Inside sales • Retain
Awareness
Interest
Consideration
Close
Focus on SMB IT
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LogMeIn’s Sweet Spot
• Unique relationship with >90,000 SMB IT gatekeepers
• ~85% of revenue from SMB
Large
Individuals
SMB
Leverage SMB Relationships - Expand Share of Wallet
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Target Large Service Organizations with Direct Sales Approach
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Across Platforms and Devices • ~15% of revenue
Large
Individuals
SMB
G O I N G F O R W A R D
Key Growth Drivers
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Accelerate IoT opportunity with Xively
Drive growth in join.me
1 2
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Increase our value to SMB IT
1. Drive Growth in join.me
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Large, underserved market Fastest
growing product at
>100% annually
New premium features
Expanded marketing efforts
2. Increase Our Value to SMB IT
Cloud computing
$70B
Managed Services
$9B
Networking $9B
Computing $10B
Software $25B
Services $26B
2013 U.S. SMB IT Spend $149B1
Expand LMI’s offerings
• join.me for enterprise
• Cubby for enterprise
• AppGuru
Expand distribution channels
• Inside sales
• Elevate channel program
• Focus on MSPs
SMB IT Plays
1http://www.smbnation.com/content/news/entry/show-me-the-money-the-top-it-spend-opportunities-for-smbs-in-2013
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3. Accelerate IoT Opportunity with Xively
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Explosive Growth in Devices Connected to Internet
2020 2010
• Large, transformative market
• Connecting products and customers
• Early stage – GravityTM gives us
right to play
– Distinct advantage to serve customers’ emerging needs
12B
50B
Devices per person 1.8 6.6
Internet of Things
The Business Model
The Growth
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• Leverage GravityTM platform
• Focus on connectivity opportunities
• Drive growth in join.me
• Expand SMB IT share of wallet
• Capitalize on IoT opportunity
• Market leader: 20/20/20
• Large, growing markets
Investment Proposition
The Company
W H Y I N V E S T
Market Leader. Positioned for Growth.
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Investor Presentation
Service Cloud
~50%
10-15%
$73M
40-45%
~$30M
IT Management Cloud
~30%
15-20%
$52M
30-35%
~$17M
Collaboration Cloud
~20%
25%+
$34M
(35-40%)
~($13M)
2013 Business Model Dynamics
20
% of company revenue
Revenue Growth
Revenue
Non-GAAP EBITDA %
Non-GAAP EBITDA $