LogMeIn, Inc. (LOGM - Free Report) recently launched GoTo, a new brand for Unified Communications & Collaboration (UCC) family of solutions. This brand will include the company’s high-end meeting and webinar solutions, namely GoToMeeting and GoToWebinar besides its newly announced solutions, GoToConnect and GoToRoom conference room solutions.
With GoToConnect, customers will be able to experience audio, video and screensharing capabilities combined with cloud-based telephony. This solution is expected to hit the North American and LATAM markets earlier this April and other international markets later this year.
On the same day as GoToConnect, LogMeIn in partnership with Polycon announced GoToRoom, the new huddle and conference room solution, which includes a huddle room and a slightly larger conference room to address the communication gap amid a company’s dispersed workforce.
The UCC Portfolio: A Key Growth Driver
LogMeIn is expanding its product portfolio by adding more solutions to its UCC suite, taking advantage of growing demand for all-in-one cloud-based communications and collaboration solutions to address the communication needs of employers and remote employees.
The growing number of businesses is benefiting from the consolidation of solutions for better cost control, management and security. Per a Frost & Sullivan report, 68% of UCaaS (Unified Communications as a service) buyers prefer bundles with all solutions under one umbrella.
LogMeIn’s UCC portfolio boasts 28 million users per month and about 20 billion voice minutes per year. Consolidating this portfolio of solutions under the GoTo brand allows the company to facilitate meetings, rooms, voice and webinars to enhance the UCC users’ experience.
Moreover, the recent acquisition of Jive Communications is believed to have provided the missing links in the UCC space for LogMeIn. Jive Communications, which offers cloud-based phone systems and Unified Communications (UC) services, is one of the fastest growing companies in the UCaaS space. Therefore, apart from bolstering its existing communications and collaboration portfolio, the buyout is assisting LogMeIn to enter into the business telephony market.
With Jive Communications’ services being integrated into the company’s existing offerings like GoToMeeting, GoToTraining, GoToWebinar, OpenVoice, Grasshopper and join.me, LogMeIn will now have a large cross-sell opportunity. Also, with this transaction, the company will be able to accelerate its own UCaaS strategy.
UCC business, contributing to 56% of the total revenues, inched up 1% year over year. Jive revenues surged more than 35% year over year in fourth-quarter 2018.
The addition of GoToConnect and GoToRoom to the UCC portfolio is expected to improve this business segment further.
Zacks Rank & Stocks to Consider
LogMeIn currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Computer and Technology sector are Fortinet, Inc (FTNT - Free Report) , Synopsys, Inc (SNPS - Free Report) and eGain Corporation (EGAN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Fortinet, Synopsys and eGain is projected to be 16.75%, 10% and 30%, respectively.
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