LogMeIn, Inc. (NASDAQ:LOGM) Q4 2014 Earnings Conference Call - Final Transcript

Feb 12, 2015 • 05:00 pm ET


LogMeIn, Inc. (NASDAQ:LOGM) Q4 2014 Earnings Conference Call - Final Transcript


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Good day and welcome to the LogMeIn Q4 2014 Conference Call. Today's conference is being recorded. Joining us today are Mr. Michael Simon, Chief Executive Officer; Mr. Ed Herdiech, Chief Financial Officer; Mr. Bill Wagner, President and Chief Operating Officer; and Mr. Rob Bradley, Director of Investor Relations.

At this time, I would like to turn the conference over to Mr. Rob Bradley. Please go ahead, sir.

Rob Bradley

Thank you and good afternoon from Boston's Innovation District. We're pleased that you can join us on our earnings conference call to discuss the results of our quarter and fiscal year ended December 31, 2014. Before we get into the results, let me remind you that some of the statements made during this call may be considered forward-looking statements. These statements include the Company's financial guidance for the first quarter of 2015 and full-year 2015. The Company's securities filings identify certain factors that could cause a company's actual results to differ from those projected in any forward-looking statements made on this call. Any 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. The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments. The Company's filings are available through the Company or online. During the call, non-GAAP financial measures will be used to provide information pertinent to ongoing business performance. Tables reconciling these measures to the most comparable GAAP measures are available in the press release or on our website at www.logmein.com.

With that, I will turn the call over to our CEO Michael Simon.

Michael Simon

Good afternoon and thank you for joining us this evening as we report LogMeIn's fourth quarter and fiscal-year 2014 results. We completed a great year for LogMeIn, capped off by very strong Q4 financial results with revenue and earnings per share that exceeded the high end of our guidance. Total revenue for the quarter was $59.9 million, up 33% year-over-year. And non-GAAP earnings per share were $0.35, $0.02 above the high end of our guidance. For the full year, revenue was $222 million, a 34% increase over 2013 and our fastest rate of full year revenue growth since 2010, plus we continue to generate cash at a rate among the best of all SaaS companies. In Q4, we generated $15.4 million in cash flow from operations and for the full year we generated $74.2 million. Additionally, we believe we made substantial progress in improving the strategic positioning of the Company throughout the year.

During the quarter and the year, we focused on three main growth initiatives. First, fueling the continued growth of join.me, our wildly popular collaboration offering. Second, increasing our value to SMB, IT professionals. And third, accelerating our IoT market opportunity with our Xively platform. In 2014, these growth drivers helped us improve the performance of the Company and we believe this progress puts us in a great