LogMeIn, Inc. (NASDAQ:LOGM) Q4 2014 Earnings Conference Call - Final Transcript
Feb 12, 2015 • 05:00 pm ET
Thank you. [Operator Instructions] We'll take our first question from Gregg Moskowitz with Cowen and Company.
Thank you very much and good afternoon and congratulations on a solid end to the year. Just by way of starting off Ed, what was the impact of currency on revenue as well as the deferred revenue balance in the Q4 if you have it?
Sure Gregg, thanks for your question. In the fourth quarter, we had 2% to 3% impact on our revenue. Clearly, we overcame that in delivering 33% year-over-year growth. For deferred revenue, we had about a $1 million to $2 million impact in the quarter as well.
Okay, terrific. And then Mike, you talked about some of the success. Everybody is really behind join.me, it's impressive to see it 100% plus growth, continued yet again, you did allude to I think improving conversion rates, just wondering if you could sort of expand on that at all and as well as just sort of touch on how the pro and the enterprise SKUs did in the in the quarter?
Yeah, we were really happy with join.me's continued improvement and in terms of its ability to take a new user with a new free user for the avoidance of doubt and increase our ability to monetize that. And I think the fact that we're adding new features as well as enterprise capabilities to the product helped. We actually increased the average transaction size smartly during the year and so we feel like join.me continues to be a main component and a main growth driver of the Company.
Okay, perfect. And recently Mike, you did announce a recent change to LogMeIn's Central pricing, just wondering if you could maybe help frame for us how that how that change perhaps might impact billings and revenues in 2015, even from a high level?
Yes, so our Central product is geared at IT professionals rather than mobile access usage and we did a couple things during the year. We've continued to invest pretty heavily in improving the product, a long list of features from two factor authentication, mobile enhancements, automating some tasks, multi monitor support, things that aren't necessarily germane to investors, but if you use a product all day long, really makes it a more comfortable and productive tool. At the same time, we've worked to dramatically simplify the way the product is packaged. So, it's not necessarily obviously, if you just look at Central in a vacuum but for a Central customer they would in addition to LogMeIn Central itself, you would then acquire licenses for LogMeIn Basic, which was basically a free extension to LogMeIn Central or LogMein Pro, which had advanced management capabilities. And so with the new packaging of Central, the LogMeIn Pro licenses or LogMeIn Basic licenses are included with it. So, it's just simply, I buy Central with a certain feature set and for a certain number of computers in endpoint, and I'm done with it. So, it is a