q4 2014 investor deck logm - for conferences
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new presentationTRANSCRIPT
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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 October 25th, 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 October 24th, 2014 located on our website at www.LogMeIn.com.
Our Mission
Simplify the Way People Connect to
Each Other and the World Around Them
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%
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
36%* of revenue
$1.5 Billion
Served Market
IT Management
34%* of revenue
$2 Billion
Served Market
29%* of revenue
Collaboration
$4 Billion
Served Market
Connected Object
$1 Trillion + TAM
*As of Q3’14
1%* of revenue
Leverage proprietary platform
A Disruptive Business Model
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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 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
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2
3
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
• Meldium & 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