UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 26, 2017

LogMeIn, Inc.
(Exact Name of Registrant as Specified in Charter)

 
					
Delaware	 	001-34391	 	20-1515952	
(State or Other Jurisdiction of
Incorporation or Organization)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
		
320 Summer Street	 		
Boston, Massachusetts	 	02210	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (781)-638-9050
 
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 7.01 Regulation FD Disclosure	
Item 9.01. Financial Statements and Exhibits	
SIGNATURE	
EX-99.1	

 Item 2.02.	Results of Operations and Financial Condition	
On October 26, 2017, LogMeIn, Inc. (the “Company”) announced its financial results for the third quarter of 2017. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
 Item 7.01.	Regulation FD Disclosure	
On October 26, 2017, the Company also announced that it will pay a $0.25 per share dividend on November 24, 2017 to stockholders of record as of November 8, 2017. LogMeIn currently has approximately 52.6 million shares of common stock outstanding.
 
 Item 9.01.	Financial Statements and Exhibits	
(d)  Exhibits
The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

Exhibit
No.	  	Description	
		
99.1	  	Press release entitled “LogMeIn Announces Third Quarter 2017 Results,” issued by the Company on October 26, 2017.	

 SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	 		 	LOGMEIN, INC.	
				
Date: October 26, 2017	 		 	By:	 	/s/ Michael J. Donahue	
	 		 		 	Michael J. Donahue	
	 		 		 	SVP, General Counsel & Secretary	

Exhibit 99.1
LogMeIn Announces Third Quarter 2017 Results
Highlights Include Continued Growth and Margin Improvement with Strong Cash Flows
Boston, October  26, 2017 – LogMeIn, Inc. (NASDAQ: LOGM), a leading provider of cloud-based connectivity, today announced its results for the third quarter ended September 30, 2017.
Third quarter 2017 highlights include:
 
 	•	 	GAAP revenue was $269.3 million and non-GAAP revenue was $276.1 million	
 
 	•	 	GAAP net income was $9.9 million or $0.19 per diluted share and non-GAAP net income was $62.1 million or $1.16 per diluted share	
 
 	•	 	EBITDA was $67.3 million or 25.0% of GAAP revenue, and Adjusted EBITDA was $104.0 million or 37.7% of non-GAAP revenue	
 
 	•	 	Cash Flow from Operations was $90.5 million or 32.8% of non-GAAP revenue, and Adjusted Cash Flow from Operations was $102.5 million or 37.1% of non-GAAP revenue	
 
 	•	 	Total deferred revenue was $328.5 million	
 
 	•	 	The Company closed the quarter with cash, cash equivalents and short-term investments of $276.0 million	
“The Company continued to perform well, with revenue, adjusted EBITDA, and non-GAAP earnings per share above the high-end of our guidance,” said Bill Wagner, President and CEO of LogMeIn. “We are also pleased with the success we have made integrating these businesses to create a software leader with a compelling profile.”
Business Outlook
Based on information available as of October 26, 2017, the Company is issuing guidance for the fourth quarter 2017 and fiscal year 2017. Since the Company’s merger with Citrix Systems, Inc.’s GetGo, Inc. subsidiary (referred to below as “GoTo”) officially closed on January 31, 2017, the Company’s business outlook for fiscal year 2017 excludes GoTo’s January 2017 results.
Fourth Quarter 2017 : The Company expects fourth quarter non-GAAP revenue to be in the range of $277 million to $278 million. The Company expects fourth quarter GAAP revenue to be in the range of $273 million to $274 million. Non-GAAP revenue adds back $4 million for the impact of an acquisition accounting adjustment recorded to reduce GoTo’s deferred revenue balance to the fair value of the remaining obligation.
Adjusted EBITDA is expected to be in the range of $105 million to $106 million, or approximately 38% of non-GAAP revenue. EBITDA is expected to be in the range of $71 million to $72 million, or approximately 26% of GAAP revenue.
Non-GAAP net income is expected to be in the range of $62 million to $63 million, or $1.16 to $1.17 per diluted share. Non-GAAP net income adds back the $4 million non-GAAP revenue adjustment described above and excludes an estimated $19 million in stock-based

compensation expense, $10 million in acquisition and litigation related costs, $50 million of amortization expense of acquired intangible assets and also includes $4 million of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items and discrete integration related tax items.
Non-GAAP net income for the fourth quarter assumes an effective tax rate of approximately 30% and non-GAAP net income per diluted share is based on an estimated 53.5 million fully-diluted weighted average shares outstanding.
Including stock-based compensation expense, acquisition and litigation related costs, amortization expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of $11 million to $12 million, or $0.21 to $0.22 per diluted share.
GAAP net income for the fourth quarter assumes a tax benefit of approximately $2 million and GAAP net income per share is based on an estimated 53.5 million fully-diluted weighted average shares outstanding.
Fiscal Year 2017 : The Company expects full year 2017 non-GAAP revenue to be in the range of $1.021 billion to $1.022 billion, which excludes GoTo’s January 2017 revenue of $58 million. The Company expects full year 2017 GAAP revenue to be in the range of $987 million to $988 million. Non-GAAP revenue adds back $34 million for the impact of an acquisition accounting adjustment recorded to reduce GoTo’s deferred revenue balance to the fair value of the remaining obligation.
Adjusted EBITDA is expected to be in the range of $366 million to $369 million, or approximately 36% of non-GAAP revenue. EBITDA is expected to be in the range of $201 million to $204 million, or approximately 20% of GAAP revenue.
Non-GAAP net income is expected to be in the range of $214 million to $217 million, or $4.16 to $4.22 per diluted share. Non-GAAP net income adds back the $34 million non-GAAP revenue adjustment described above and excludes an estimated $68 million in stock-based compensation expense, $63 million in acquisition and litigation related costs, $183 million of amortization expense of acquired intangible assets and also includes $20 million of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items and discrete integration related tax items.
Non-GAAP net income for the full fiscal year 2017 assumes an effective tax rate of approximately 30% and non-GAAP net income per diluted share is based on an estimated 51.5 million fully-diluted weighted average shares outstanding.

Including stock-based compensation expense, acquisition and litigation related costs, amortization expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of $15 million to $18 million, or $0.29 to $0.35 per diluted share.
GAAP net income for the full year assumes a tax benefit of approximately $35 million. GAAP net income per share is based on an estimated 51.5 million fully-diluted weighted average shares outstanding.
Dividend
In accordance with its previously announced capital return plan, the Company will pay a $0.25 per share dividend on November 24, 2017 to stockholders of record as of November 8, 2017. The Company currently has approximately 52.6 million shares of common stock outstanding.
Conference Call Information for Today, Thursday, October 26, 2017
The Company will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today. To access the conference call, dial 800-239-9838 (for the U.S. and Canada) or 323-794-2551 (for international callers) and entering passcode 6598155. A live webcast will be available on the Investor Relations section of the Company’s corporate website at https://www.logmeininc.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time on October 26, 2017 until 8:00 p.m. Eastern Time on November 3, 2017, by dialing 719-457-0820 and entering passcode 6598155.
Our Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures including non-GAAP revenue, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and adjusted cash flow from operations.
 
 	•	 	Non-GAAP revenue is GAAP revenue and adds back the impact of the fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue.	
 
 	•	 	EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income net, and depreciation and amortization.	
 
 	•	 	EBITDA margin is calculated by dividing EBITDA by revenue.	
 
 	•	 	Adjusted EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income net, depreciation and amortization, acquisition and litigation related costs, stock-based compensation expense, and adds back the impact of the fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue.	

 	•	 	Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by non-GAAP revenue, or GAAP revenue if not different.	
 
 	•	 	Non-GAAP operating income is GAAP operating income and adds back the impact of the fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue and excludes acquisition related costs and amortization, litigation related costs, stock-based compensation expense, and also includes amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.	
 
 	•	 	Non-GAAP provision for income taxes is GAAP provision (benefit) for incomes taxes and excludes the tax impact of the fair value acquisition accounting adjustment on acquired GoTo’s deferred revenue, acquisition related costs and amortization, litigation related costs, stock-based compensation expense, discrete integration related tax impacts and also includes the tax impact of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.	
 
 	•	 	Non-GAAP net income and non-GAAP net income per diluted share reflects the adjustments noted in non-GAAP operating income and non-GAAP provision for income taxes above.	
 
 	•	 	Adjusted cash flow from operations excludes acquisition and litigation related payments.	
The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods and uses these measures in financial reports prepared for management and the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and to compare the Company’s financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, and not to rely on any single financial measure to evaluate the Company’s business. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.
LogMeIn, Inc. (NASDAQ:LOGM) simplifies how people connect with each other and the world around them to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. One of the world’s top 10 public SaaS companies, and a market leader in communication & conferencing, identity & access, and customer engagement & support solutions, LogMeIn has millions of customers spanning virtually every country across the globe. LogMeIn is headquartered in Boston with additional locations in North America, Europe, Asia and Australia.
Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the Company’s integration progress and the Company’s financial guidance for fiscal year 2017 and the fourth quarter of 2017. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, customer adoption of the Company’s solutions, the Company’s ability to execute on its strategic initiatives, failure to realize the estimated synergies or growth from the Company’s merger with GetGo, Inc. or that such benefits may take longer to realize than expected, the Company’s ability to integrate acquired products or companies, the disruption of ongoing business operations and the diversion of management’s attention due to the work required to successfully integrate GoTo’s business, unanticipated costs of integration, the Company’s ability to attract new customers and retain existing customers, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, the effectiveness of the Company’s cybersecurity measures, the Company’s ability to continue to promote and maintain its brand in a cost-effective manner, the Company’s ability to compete effectively, the Company’s ability to develop and introduce new products and add-ons or enhancements to existing products, the Company’s ability to manage growth, the Company’s ability to attract and retain key personnel, the Company’s ability to protect its intellectual property and other proprietary rights, the result of any pending litigation including intellectual property litigation, and other risks detailed in the Company’s other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-

looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
LogMeIn is a registered trademark of LogMeIn, Inc. in the US and other countries around the world.
Contact Information:
Investors
Rob Bradley
LogMeIn, Inc.
781-897-1301
rbradley@LogMeIn.com
Press
Craig VerColen
LogMeIn, Inc.
781-897-0696
Press@LogMeIn.com

LogMeIn, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)

 	  	December 31,
2016	 	 	September 30,
2017	 	
ASSETS	 	
Current assets:	  				 				
Cash and cash equivalents	  	$	140,756	 	 	$	262,051	 	
Marketable securities	  	 	55,710	 	 	 	13,996	 	
Accounts receivable, net	  	 	25,901	 	 	 	83,862	 	
Prepaid expenses and other current assets	  	 	5,723	 	 	 	34,412	 	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	228,090	 	 	 	394,321	 	
Property and equipment, net	  	 	23,867	 	 	 	91,401	 	
Restricted cash	  	 	2,481	 	 	 	1,661	 	
Intangibles, net	  	 	62,510	 	 	 	1,191,609	 	
Goodwill	  	 	121,760	 	 	 	2,254,773	 	
Other assets	  	 	4,282	 	 	 	7,295	 	
Deferred tax assets	  	 	303	 	 	 	276	 	
	  	 	 	 	 	 	 	 	
Total assets	  	$	443,293	 	 	$	3,941,336	 	
	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 	
Current liabilities:	  				 				
Accounts payable	  	$	14,640	 	 	$	37,117	 	
Accrued liabilities	  	 	35,253	 	 	 	110,675	 	
Deferred revenue, current portion	  	 	156,966	 	 	 	323,044	 	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	206,859	 	 	 	470,836	 	
Long-term debt	  	 	30,000	 	 	 	—  	 	
Deferred revenue, net of current portion	  	 	5,287	 	 	 	5,468	 	
Deferred tax liabilities	  	 	2,332	 	 	 	376,006	 	
Other long-term liabilities	  	 	2,699	 	 	 	7,174	 	
	  	 	 	 	 	 	 	 	
Total liabilities	  	 	247,177	 	 	 	859,484	 	
	  	 	 	 	 	 	 	 	
Commitments and contingencies	  				 				
Preferred stock	  	 	—  	 	 	 	—  	 	
Equity:	  				 				
Common stock	  	 	284	 	 	 	560	 	
Additional paid-in capital	  	 	314,700	 	 	 	3,261,762	 	
Accumulated deficit	  	 	(1,754	) 	 	 	(29,719	) 	
Accumulated other comprehensive income (loss)	  	 	(6,618	) 	 	 	10,820	 	
Treasury stock	  	 	(110,496	) 	 	 	(161,571	) 	
	  	 	 	 	 	 	 	 	
Total equity	  	 	196,116	 	 	 	3,081,852	 	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	443,293	 	 	$	3,941,336	 	

LogMeIn, Inc.
																	
Calculation of Non-GAAP Revenue (unaudited)	 	
			
 	 	Three Months Ended September 30,	 	 	Nine Months Ended September 30,	 	
 	 	2016	 	 	2017	 	 	2016	 	 	2017	 	
 	 	(in thousands)	 	 	(in thousands)	 	
GAAP Revenue	 	$	85,103	 	 	$	269,267	 	 	$	248,103	 	 	$	713,750	 	
Add Back :	 				 				 				 				
Effect of acquisition accounting on fair value of acquired deferred revenue	 	 	—  	 	 	 	6,856	 	 	 	—  	 	 	 	30,427	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP Revenue	 	$	85,103	 	 	$	276,123	 	 	$	248,103	 	 	$	744,177	 	

Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)	 	
			
 	 	Three Months Ended September 30,	 	 	Nine Months Ended September 30,	 	
 	 	2016	 	 	2017	 	 	2016	 	 	2017	 	
 	 	(In thousands, except per share data)	 	 	(In thousands, except per share data)	 	
GAAP Net income (loss) from operations	 	$	(228	)  	 	$	7,161	 	 	$	2,425	 	 	$	(26,728	) 	
Add Back :	 				 				 				 				
Effect of acquisition accounting on fair value of acquired deferred revenue	 	 	—  	 	 	 	6,856	 	 	 	—  	 	 	 	30,427	 	
Stock-based compensation expense	 	 	8,999	 	 	 	18,765	 	 	 	27,327	 	 	 	49,255	 	
Acquisition related costs	 	 	10,645	 	 	 	10,455	 	 	 	16,884	 	 	 	51,391	 	
Litigation related expenses	 	 	—  	 	 	 	622	 	 	 	35	 	 	 	1,360	 	
Amortization of acquired intangibles	 	 	2,512	 	 	 	49,842	 	 	 	7,557	 	 	 	132,603	 	
Effect of acquisition accounting on internally capitalized software development costs	 	 	—  	 	 	 	(5,080	) 	 	 	—  	 	 	 	(16,025	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP Operating income	 	 	21,928	 	 	 	88,621	 	 	 	54,228	 	 	 	222,283	 	
Interest and other expense, net	 	 	(338	)  	 	 	162	 	 	 	(1,224	)  	 	 	(191	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP Income before income taxes	 	 	21,590	 	 	 	88,783	 	 	 	53,004	 	 	 	222,092	 	
Non-GAAP Provision for income taxes	 	 	(6,829	)  	 	 	(26,638	) 	 	 	(16,442	)  	 	 	(67,404	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP Net income	 	$	14,761	 	 	$	62,145	 	 	$	36,562	 	 	$	154,688	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non-GAAP net income per diluted share	 	$	0.56	 	 	$	1.16	 	 	$	1.41	 	 	$	3.05	 	
Diluted weighted average shares outstanding used in computing per share amounts	 	 	26,204	 	 	 	53,606	 	 	 	26,009	 	 	 	50,735	 	
	
Calculation of EBITDA and Adjusted EBITDA (unaudited)	 	
			
 	 	Three Months Ended September 30,	 	 	Nine Months Ended September 30,	 	
 	 	2016	 	 	2017	 	 	2016	 	 	2017	 	
 	 	(in thousands)	 	 	(in thousands)	 	
GAAP Net (loss) income	 	$	(657	) 	 	$	9,920	 	 	$	776	 	 	$	6,202	 	
Add Back :	 				 				 				 				
Interest and other expense, net	 	 	338	 	 	 	(162	) 	 	 	1,224	 	 	 	191	 	
Income tax expense (benefit)	 	 	91	 	 	 	(2,597	) 	 	 	425	 	 	 	(33,121	) 	
Amortization of acquired intangibles	 	 	2,512	 	 	 	49,842	 	 	 	7,557	 	 	 	132,603	 	
Depreciation and amortization expense	 	 	2,860	 	 	 	10,333	 	 	 	8,519	 	 	 	26,158	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	 	 	5,144	 	 	 	67,336	 	 	 	18,501	 	 	 	132,033	 	
Add Back :	 				 				 				 				
Effect of acquisition accounting on fair value of acquired deferred revenue	 	 	—  	 	 	 	6,856	 	 	 	—  	 	 	 	30,427	 	
Stock-based compensation expense	 	 	8,999	 	 	 	18,765	 	 	 	27,327	 	 	 	49,255	 	
Acquisition related costs	 	 	10,645	 	 	 	10,455	 	 	 	16,884	 	 	 	51,391	 	
Litigation related expenses	 	 	—  	 	 	 	622	 	 	 	35	 	 	 	1,360	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	24,788	 	 	$	104,034	 	 	$	62,747	 	 	$	264,466	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA Margin	 	 	6.0	% 	 	 	25.0	% 	 	 	7.5	% 	 	 	18.5	% 	
Adjusted EBITDA Margin	 	 	29.1	% 	 	 	37.7	% 	 	 	25.3	% 	 	 	35.5	% 	
	
Stock-Based Compensation Expense (unaudited)	 	
			
 	 	Three Months Ended September 30,	 	 	Nine Months Ended September 30,	 	
 	 	2016	 	 	2017	 	 	2016	 	 	2017	 	
 	 	(in thousands)	 	 	(in thousands)	 	
Cost of revenue	 	$	536	 	 	$	1,612	 	 	$	1,774	 	 	$	3,911	 	
Research and development	 	 	1,476	 	 	 	6,405	 	 	 	4,702	 	 	 	16,042	 	
Sales and marketing	 	 	4,398	 	 	 	4,312	 	 	 	12,876	 	 	 	12,108	 	
General and administrative	 	 	2,589	 	 	 	6,436	 	 	 	7,975	 	 	 	17,194	 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stock based-compensation	 	$	8,999	 	 	$	18,765	 	 	$	27,327	 	 	$	49,255	 	

LogMeIn, Inc.
					
Calculation of Projected 2017 Non-GAAP Revenue (unaudited)	
(In millions)	
			
 	  	Three Months Ended
December 31, 2017	 	Twelve Months Ended
December 31, 2017	
GAAP Revenue	  	$273 - $274	 	$987 - $988	
Add Back :	  		 		
Effect of acquisition accounting on fair value of acquired deferred revenue	  	4	 	34	
	  	 	 	 	
Non-GAAP Revenue	  	$277 - $278	 	$1,021 - $1,022	

Calculation of Projected 2017 Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)	
(In millions, except per share data)	
			
 	  	Three Months Ended
December 31, 2017	 	Twelve Months Ended
December 31, 2017	
GAAP Net income	  	$11 - $12	 	$15 - $18	
Add Back :	  		 		
Effect of acquisition accounting on fair value of acquired deferred revenue	  	4	 	34	
Stock-based compensation expense	  	19	 	68	
Acquisition and litigation related costs	  	10	 	63	
Amortization of acquired intangibles	  	50	 	183	
Effect of acquisition accounting on internally capitalized software development costs	  	(4)	 	(20)	
Income tax effect of non-GAAP items	  	(29)	 	(129)	
	  	 	 	 	
Non-GAAP Net income	  	$62 - $63	 	$214 - $217	

GAAP net income per diluted share	  	$0.21 - $0.22	 	$0.29 - $0.35	
Non-GAAP net income per diluted share	  	$1.16 - $1.17	 	$4.16 - $4.22	
Diluted weighted average shares outstanding used in computing income per share	  	53.5	 	51.5	
	
Calculation of Projected 2017 EBITDA and Adjusted EBITDA (unaudited)	
(In millions)	
			
 	  	Three Months Ended
December 31, 2017	 	Twelve Months Ended
December 31, 2017	
GAAP Net income	  	$11 - $12	 	$15 - $18	
Add Back :	  		 		
Interest and other (income) expense, net	  	—	 	—	
Income tax benefit	  	(2)	 	(35)	
Amortization of acquired intangibles	  	50	 	183	
Depreciation and amortization expense	  	12	 	38	
	  	 	 	 	
EBITDA	  	71 - 72	 	201 - 204	
Add Back :	  		 		
Effect of acquisition accounting on fair value of acquired deferred revenue	  	4	 	34	
Stock-based compensation expense	  	19	 	68	
Acquisition and litigation related costs	  	10	 	63	
	  	 	 	 	
Adjusted EBITDA	  	$105 - $106	 	$366 - $369	
	  	 	 	 	
EBITDA Margin	  	26%	 	20%	
Adjusted EBITDA Margin	  	38%	 	36%	

LogMeIn, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(In thousands, except per share data)

 	  	Three Months Ended September 30,	 	 	Nine Months Ended September 30,	 	
 	  	2016	 	 	2017	 	 	2016	 	 	2017	 	
Revenue	  	$	85,103	 	 	$	269,267	 	 	$	248,103	 	 	$	713,750	 	
Cost of revenue	  	 	11,485	 	 	 	55,605	 	 	 	34,121	 	 	 	147,780	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	73,618	 	 	 	213,662	 	 	 	213,982	 	 	 	565,970	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses:	  				 				 				 				
Research and development	  	 	14,161	 	 	 	42,603	 	 	 	43,571	 	 	 	116,435	 	
Sales and marketing	  	 	39,628	 	 	 	89,379	 	 	 	123,533	 	 	 	258,616	 	
General and administrative	  	 	18,694	 	 	 	37,906	 	 	 	40,350	 	 	 	120,460	 	
Amortization of acquired intangibles	  	 	1,363	 	 	 	36,613	 	 	 	4,103	 	 	 	97,187	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	73,846	 	 	 	206,501	 	 	 	211,557	 	 	 	592,698	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from operations	  	 	(228	) 	 	 	7,161	 	 	 	2,425	 	 	 	(26,728	) 	
Interest income	  	 	177	 	 	 	405	 	 	 	546	 	 	 	924	 	
Interest expense	  	 	(335	) 	 	 	(294	) 	 	 	(1,094	) 	 	 	(1,088	) 	
Other income (expense), net	  	 	(180	) 	 	 	51	 	 	 	(676	) 	 	 	(27	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes	  	 	(566	) 	 	 	7,323	 	 	 	1,201	 	 	 	(26,919	) 	
(Provision for) benefit from income taxes	  	 	(91	) 	 	 	2,597	 	 	 	(425	) 	 	 	33,121	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(657	) 	 	$	9,920	 	 	$	776	 	 	$	6,202	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) per share:	  				 				 				 				
Basic	  	$	(0.03	) 	 	$	0.19	 	 	$	0.03	 	 	$	0.12	 	
Diluted	  	$	(0.03	) 	 	$	0.19	 	 	$	0.03	 	 	$	0.12	 	
Weighted average shares outstanding:	  				 				 				 				
Basic	  	 	25,401	 	 	 	52,706	 	 	 	25,230	 	 	 	49,697	 	
Diluted	  	 	25,401	 	 	 	53,606	 	 	 	26,009	 	 	 	50,735	 	

LogMeIn, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)

 	  	Three Months Ended
September 30,	 	 	Nine Months Ended
September 30,	 	
 	  	2016	 	 	2017	 	 	2016	 	 	2017	 	
Cash flows from operating activities	  				 				 				 				
Net (loss) income	  	$	(657	)  	 	$	9,920	 	 	$	776	 	 	$	6,202	 	
Adjustments to reconcile net (loss) income to net cash provided by operating activities:	  				 				 				 				
Stock-based compensation	  	 	8,999	 	 	 	18,765	 	 	 	27,327	 	 	 	49,255	 	
Depreciation and amortization	  	 	5,372	 	 	 	60,175	 	 	 	16,076	 	 	 	158,761	 	
Change in fair value of contingent consideration liability	  	 	—  	 	 	 	—  	 	 	 	502	 	 	 	—  	 	
Benefit from deferred income taxes	  	 	—  	 	 	 	(15,182	)  	 	 	—  	 	 	 	(47,659	) 	
Other, net	  	 	184	 	 	 	232	 	 	 	608	 	 	 	1,606	 	
Changes in assets and liabilities, excluding effect of acquisitions:	  				 				 				 				
Accounts receivable	  	 	(1,641	)  	 	 	(6,477	)  	 	 	(79	) 	 	 	(6,480	) 	
Prepaid expenses and other current assets	  	 	754	 	 	 	7,979	 	 	 	(1,552	) 	 	 	(4,607	) 	
Other assets	  	 	239	 	 	 	835	 	 	 	1,188	 	 	 	991	 	
Accounts payable	  	 	2,182	 	 	 	(1,040	)  	 	 	4,705	 	 	 	10,154	 	
Accrued liabilities	  	 	3,834	 	 	 	(1,458	)  	 	 	4,176	 	 	 	36,586	 	
Deferred revenue	  	 	(653	) 	 	 	15,383	 	 	 	25,420	 	 	 	75,135	 	
Other long-term liabilities	  	 	1,483	 	 	 	1,343	 	 	 	4,943	 	 	 	3,316	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities (1)	  	 	20,096	 	 	 	90,475	 	 	 	84,090	 	 	 	283,260	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities	  				 				 				 				
Purchases of marketable securities	  	 	(4,036	) 	 	 	—  	 	 	 	(35,609	) 	 	 	—  	 	
Proceeds from sale or disposal or maturity of marketable securities	  	 	18,750	 	 	 	10,500	 	 	 	50,000	 	 	 	41,603	 	
Purchases of property and equipment	  	 	(3,817	) 	 	 	(13,518	) 	 	 	(12,629	) 	 	 	(23,322	) 	
Intangible asset additions	  	 	(322	) 	 	 	(8,184	) 	 	 	(1,037	) 	 	 	(21,893	) 	
Acquisition of businesses, net of cash acquired	  	 	—  	 	 	 	(43,375	) 	 	 	(61	) 	 	 	(19,160	) 	
Decrease (increase) in restricted cash and deposits	  	 	1	 	 	 	1	 	 	 	(30	) 	 	 	1,751	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) investing activities	  	 	10,576	 	 	 	(54,576	) 	 	 	634	 	 	 	(21,021	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities	  				 				 				 				
Repayments of borrowings under credit facility	  	 	(7,500	) 	 	 	—  	 	 	 	(22,500	) 	 	 	(30,000	) 	
Proceeds from issuance of common stock upon option exercises	  	 	4,039	 	 	 	1,009	 	 	 	9,443	 	 	 	6,363	 	
Payments of withholding taxes in connection with restricted stock unit vesting	  	 	(4,815	) 	 	 	(2,734	) 	 	 	(13,432	) 	 	 	(32,189	) 	
Payment of debt issuance costs	  	 	—  	 	 	 	—  	 	 	 	(349	) 	 	 	(1,993	) 	
Payment of contingent consideration	  	 	(29	) 	 	 	—  	 	 	 	(29	) 	 	 	—  	 	
Dividends paid on common stock	  	 	(12,700	) 	 	 	(13,181	) 	 	 	(12,700	) 	 	 	(39,117	) 	
Purchase of treasury stock	  	 	(3,462	) 	 	 	(21,460	) 	 	 	(22,799	) 	 	 	(51,075	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(24,467	) 	 	 	(36,366	) 	 	 	(62,366	) 	 	 	(148,011	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash and cash equivalents	  	 	513	 	 	 	1,511	 	 	 	1,099	 	 	 	7,067	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net increase in cash and cash equivalents	  	 	6,718	 	 	 	1,044	 	 	 	23,457	 	 	 	121,295	 	
Cash and cash equivalents, beginning of period	  	 	139,882	 	 	 	261,007	 	 	 	123,143	 	 	 	140,756	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents, end of period	  	$	146,600	 	 	$	262,051	 	 	$	146,600	 	 	$	262,051	 	

(1)	Cash flows from operating activities includes the following acquisition and litigation-related payments:	
 	(a)	Cash flows from operating activities includes acquisition transaction, transition, and integration-related payments of $1.7 million and $11.8 million for the three months ended September 30, 2016 and 2017, respectively and $1.8 million and $44.6 million for the nine months ended September 30, 2016 and 2017, respectively.	
 	(b)	Cash flows from operating activities includes acquisition-related retention-based bonus payments of $1.5 million and $6.0 million for the three and nine months ended September 30, 2016, respectively related to the Company’s 2014 acquisitions.	
 	(c)	Cash flows from operating activities includes litigation-related payments of $0.3 million for the three months ended September 30, 2017 and $0.1 million and $0.6 million for the nine months ended September 30, 2016 and 2017, respectively.	
Adjusted cash flows from operations adds back the items in (a), (b) and (c) above and sums to $23.2 million and $102.5 million for the three months ended September 30, 2016 and 2017, respectively, and $92.0 million and $328.4 million for the nine months ended September 30, 2016 and 2017, respectively.