LogMeIn (LOGM - Free Report) 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.
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.
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 - Free Report) , Everbridge (EVBG - Free Report) and Asure Software (ASUR - Free Report) . 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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