logmein investor deck q1 2014

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Page 1: Logmein Investor Deck Q1 2014

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Investor Presentation

Page 2: Logmein Investor Deck Q1 2014

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.

Page 3: Logmein Investor Deck Q1 2014

A G E N D A

Market Leader. Positioned for Growth.

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The Company

The Business Model

The Growth

Page 4: Logmein Investor Deck Q1 2014

Sales Growth

Adjusted EBITDA

Free Cash Flow

Market-Leading SaaS Company

4

20% 20% 20%

Page 5: Logmein Investor Deck Q1 2014

• 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

5

Page 6: Logmein Investor Deck Q1 2014

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

Page 7: Logmein Investor Deck Q1 2014

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 +

Page 8: Logmein Investor Deck Q1 2014

Leverage proprietary platform

A Disruptive Business Model

Focus on SMB IT

Drive business-to-business sales

Target large service organizations

Expand share of wallet

Page 9: Logmein Investor Deck Q1 2014

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

Page 10: Logmein Investor Deck Q1 2014

Drive Business-to-Business Sales

10

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

Page 11: Logmein Investor Deck Q1 2014

Focus on SMB IT

11

LogMeIn’s Sweet Spot

• Unique relationship with >90,000 SMB IT gatekeepers

• ~85% of revenue from SMB

Large

Individuals

SMB

Page 12: Logmein Investor Deck Q1 2014

Leverage SMB Relationships - Expand Share of Wallet

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Page 13: Logmein Investor Deck Q1 2014

Target Large Service Organizations with Direct Sales Approach

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Across Platforms and Devices • ~15% of revenue

Large

Individuals

SMB

Page 14: Logmein Investor Deck Q1 2014

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

3

Increase our value to SMB IT

Page 15: Logmein Investor Deck Q1 2014

1. Drive Growth in join.me

15

Large, underserved market Fastest

growing product at

>100% annually

New premium features

Expanded marketing efforts

Page 16: Logmein Investor Deck Q1 2014

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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Page 17: Logmein Investor Deck Q1 2014

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

Page 18: Logmein Investor Deck Q1 2014

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.

Page 19: Logmein Investor Deck Q1 2014

19

Investor Presentation

Page 20: Logmein Investor Deck Q1 2014

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 $