BOSTON, Oct. 27, 2016 (GLOBE NEWSWIRE) -- LogMeIn, Inc. (NASDAQ:LOGM), a leading provider of cloud-based connectivity, today announced its results for the third quarter ended September 30, 2016.

Third quarter 2016 highlights include:

• Revenue was $85.1 million, representing 22% growth compared with the third quarter of 2015
• Adjusted EBITDA was $24.8 million and Adjusted EBITDA margin was 29.1%, versus $19.4 million and 27.9% in the third quarter of 2015
• GAAP net loss was $0.7 million, or a $0.03 net loss per share, as compared to GAAP net income of $5.6 million, or $0.22 per diluted share, in the third quarter of 2015
• Non-GAAP net income was $14.8 million, or $0.56 per diluted share, as compared to $11.9 million, or $0.46 per diluted share, in the third quarter of 2015
• Cash flow from operations was $20.1 million, or 24% of revenue, as compared to $13.4 million in the third quarter of 2015
• Total deferred revenue was $163.7 million, up 19% from $137.0 million in the third quarter of 2015
• The Company closed the quarter with cash, cash equivalents, and short-term investments of $217.2 million

“We are pleased with our performance in the third quarter, adding to an already good first half of the year,” said Bill Wagner, President and CEO of LogMeIn. “I’m proud and deeply appreciative of our team as we continue to execute on our core business, while simultaneously making significant progress preparing for the transformative merger with Citrix’s GoTo Family of Products which we announced in July.

We will continue to focus on both fronts for the remainder of the year, finishing 2016 well for standalone LogMeIn, while working on integration and optimization planning for the combined company.”

Business Outlook
Based on information available as of October 27, 2016, the Company is issuing guidance for the fourth quarter 2016 and fiscal year 2016.

Fourth Quarter 2016: The Company expects fourth quarter revenue to be in the range of $87.0 million to $87.5 million.

Adjusted EBITDA is expected to be in the range of $25.1 million to $25.5 million.

Non-GAAP net income is expected to be in the range of $15.3 million to $15.5 million, or $0.58 to $0.59 per diluted share. Non-GAAP net income excludes an estimated $8.9 million in stock-based compensation expense and $12.6 million in acquisition-related costs and amortization, including costs associated with the Company’s proposed merger with Citrix’s GoTo family of products, and $0.3 million in litigation-related expense.

Non-GAAP net income for the fourth quarter assumes an effective tax rate of approximately 31%. Non-GAAP net income per diluted share for the fourth quarter of 2016 is based on an estimated 26.4 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense and acquisition-related costs and amortization, the Company expects to report GAAP net income in the range of $0.2 million to $0.5 million, or $0.01 to $0.02 per share.

GAAP net income for the fourth quarter assumes an effective tax rate of approximately 40%. GAAP net income per share for the full fiscal year 2016 is based on an estimated 26.2 million fully-diluted weighted average shares outstanding.

Fiscal Year 2016: The Company expects full year 2016 revenue to be in the range of $335.0 million to $335.5 million.

Adjusted EBITDA is expected to be in the range of $88.0 million to $88.4 million.

Non-GAAP net income is expected to be in the range of $51.9 million to $52.2 million, or $1.98 to $1.99 per diluted share. Non-GAAP net income excludes an estimated $36.3 million in stock-based compensation expense and $37.0 million in acquisition-related costs and amortization, including costs associated with the Company’s proposed merger with Citrix’s GoTo family of products, and $0.3 million in litigation-related expense.

Non-GAAP net income for the full fiscal year 2016 assumes an effective tax rate of approximately 31%. Non-GAAP net income per diluted share for the full fiscal year 2016 is based on an estimated 26.2 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense and acquisition-related costs and amortization, the Company expects to report GAAP net income in the range of $1.0 million to $1.3 million, or $0.04 to $0.05 per share.

GAAP net income for the full year assumes an effective tax rate of 38%. GAAP net income per share for the full fiscal year 2016 is based on an estimated 26.2 million fully-diluted weighted average shares outstanding.

A reconciliation of the most comparable GAAP financial measures to non-GAAP measures used above is included in the tables attached to this release.

Dividend
On October 27, 2016, LogMeIn’s Board of Directors also declared a second special cash dividend of $0.50 per share of common stock. The special dividend will be paid on November 22, 2016 to shareholders of record on November 7, 2016. LogMeIn currently has approximately 25.5 million shares of common stock outstanding. As contemplated by the definitive merger agreement with Citrix, the Company currently expects to declare a third dividend of $0.50 per share of common stock subject to the consummation of the transaction, on or about the date of such consummation.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures including adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP cash flow from operations.

Adjusted EBITDA is GAAP net income (loss) excluding income tax expense (benefit), interest, and other (income) expense, net, depreciation and amortization, acquisition-related costs, stock-based compensation expense, and litigation-related expense. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue. Non-GAAP operating income excludes acquisition-related costs and amortization, stock-based compensation expense, and litigation-related expense. Non-GAAP provision for income taxes excludes the tax impact of acquisition-related costs and amortization, stock-based compensation expense, and litigation-related expense. Non-GAAP net income and non-GAAP net income per diluted share excludes acquisition-related costs and amortization, stock-based compensation expense, litigation-related expense, and their-related tax impacts. Non-GAAP cash flow from operations excludes payments and receipts-related to litigation-related costs and acquisition-related costs (excluding acquisition-related retention-based bonus payments).

The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of the Company’s non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods and uses these measures in financial reports prepared for management and the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.
LogMeIn, Inc. (NASDAQ:LOGM) simplifies how people connect to each other and the world around them. With millions of users worldwide, our cloud-based solutions make it possible for people and companies to connect and engage with their workplace, colleagues, customers and products anywhere, anytime. LogMeIn is headquartered in Boston with offices in Bangalore, Budapest, Dublin, Fairfax (VA), London, San Francisco, Sydney, Szeged, and Wichita (KS).