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LogMeIn (LOGM) Q4 Earnings and Revenues Surpass Estimates
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LogMeIn recently released fourth-quarter 2019 results, wherein both top and bottom lines beat estimates. Non-GAAP revenues of $322.9 million beat the Zacks Consensus Estimate by 0.87% and increased 3.9% year over year.
Non-GAAP earnings of $1.43 per share beat the consensus mark by 2.14%. However, the figure decreased 2.7% year over year.
In December 2019, the company entered into a definitive agreement to be acquired by technology-focused global private equity firms Francisco Partners and Evergreen Coast Capital Corp. The transaction is expected to be completed by mid-2020.
LogMeIn did not hold a conference discussing the recently released fourth-quarter 2019 result or provide any guidance due to its impending acquisition agreement.
Unified Communication and Collaboration (UCC) business revenues dipped 1% year over year to $173 million.
Identity and Access Management revenues rose 15% from the year-ago quarter to $106 million.
Customer Engagement and Support business revenues declined 1% on a year-over-year basis to $44 million.
The company’s gross renewal rate across all products was nearly 85%.
International revenues constituted 21% of total revenues during the quarter.
Margins
In the fourth quarter, the company’s non-GAAP operating income decreased 7.1% year over year to $95 million. Also, operating margin contracted 350 bps to 29.4%.
Adjusted EBITDA was down 6.4% year over year to $111.1 million. Additionally, adjusted EBITDA margin shrank 380 bps to 34.4%.
Balance Sheet and Other Financial Details
LogMeIn ended the quarter with cash and cash equivalents of $128 million compared with $119.2 million, sequentially.
The company generated $78.6 million of adjusted cash flow from operational activities and $62.6 million of adjusted free cash flow in the quarter under review.
Full-Year Highlights
LogMeIn reported full-year revenues of $1.26 billion, up 4.2% year over year. However, non-GAAP earnings of $5.15 per share declined 4.5% year over year.
In 2019, the company repurchased shares worth $208.5 million and paid out $64.6 million as dividends.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for CEVA, SYNNEX and Silicon Motion is currently pegged at 20%, 10.37% and 7%, respectively.
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LogMeIn (LOGM) Q4 Earnings and Revenues Surpass Estimates
LogMeIn recently released fourth-quarter 2019 results, wherein both top and bottom lines beat estimates. Non-GAAP revenues of $322.9 million beat the Zacks Consensus Estimate by 0.87% and increased 3.9% year over year.
Non-GAAP earnings of $1.43 per share beat the consensus mark by 2.14%. However, the figure decreased 2.7% year over year.
In December 2019, the company entered into a definitive agreement to be acquired by technology-focused global private equity firms Francisco Partners and Evergreen Coast Capital Corp. The transaction is expected to be completed by mid-2020.
LogMeIn did not hold a conference discussing the recently released fourth-quarter 2019 result or provide any guidance due to its impending acquisition agreement.
LogMein, Inc. Price, Consensus and EPS Surprise
LogMein, Inc. price-consensus-eps-surprise-chart | LogMein, Inc. Quote
Q4 Details
Unified Communication and Collaboration (UCC) business revenues dipped 1% year over year to $173 million.
Identity and Access Management revenues rose 15% from the year-ago quarter to $106 million.
Customer Engagement and Support business revenues declined 1% on a year-over-year basis to $44 million.
The company’s gross renewal rate across all products was nearly 85%.
International revenues constituted 21% of total revenues during the quarter.
Margins
In the fourth quarter, the company’s non-GAAP operating income decreased 7.1% year over year to $95 million. Also, operating margin contracted 350 bps to 29.4%.
Adjusted EBITDA was down 6.4% year over year to $111.1 million. Additionally, adjusted EBITDA margin shrank 380 bps to 34.4%.
Balance Sheet and Other Financial Details
LogMeIn ended the quarter with cash and cash equivalents of $128 million compared with $119.2 million, sequentially.
The company generated $78.6 million of adjusted cash flow from operational activities and $62.6 million of adjusted free cash flow in the quarter under review.
Full-Year Highlights
LogMeIn reported full-year revenues of $1.26 billion, up 4.2% year over year. However, non-GAAP earnings of $5.15 per share declined 4.5% year over year.
In 2019, the company repurchased shares worth $208.5 million and paid out $64.6 million as dividends.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are CEVA, Inc. (CEVA - Free Report) , SYNNEX (SNX - Free Report) and Silicon Motion Technology Corporation (SIMO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for CEVA, SYNNEX and Silicon Motion is currently pegged at 20%, 10.37% and 7%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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