LogMeIn Q4 Profit Up, But Shares Fall 7%

(RTTNews) - Web and cloud-based conferencing service provider LogMeIn Inc. (LOGM), Thursday reported an increase in profit for the fourth quarter, as revenues rose. The company also issued a mediocre outlook for the first quarter and full year 2018. Shares of the company are down 7 percent in the after-hours trading.

Boston-based LogMeIn's fourth-quarter profit rose to $93.32 million or $1.74 per share from $1.86 million or $0.07 per share last year.

Adjusted earnings for the quarter rose to $1.20 per share from $0.62 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.17 per share for the quarter.

Revenues for the quarter rose to $276.04 million from $87.97 million last year. Adjusted revenues, which includes effect of acquisition accounting on fair value of acquired deferred revenue, was $279.92 million. Analysts had a consensus revenue estimate of $277.19 million for the quarter.

"A strong fourth quarter capped what was a successful and transformative year for LogMeIn. We consistently delivered strong financial results in the face of major change, exceeding our guidance in each of the four quarters," said Bill Wagner, President and CEO of LogMeIn.

Moving ahead, the company expects first-quarter adjusted earnings of $1.17 to $1.18 per share and adjusted revenues of $277 million to $278 million. Analysts currently estimate earnings of $1.10 per share and revenues of $277.87 million.

For the full year 2018, LogMeIn expects adjusted earnings of $5.43 to $5.53 per share and adjusted revenues of $1.135 billion to $1.150 billion. Analysts currently estimate earnings of $4.90 per share and revenues of $1.15 billion.

Last week, LogMeIn said it has agreed to buy Jive Communications for $342 million in cash, with additional payment of up to $15 million based on reaching specific milestones in the next two years.

LOGM closed Thursday's regular trading at $33.80, up $3.60 or 2.76% on the Nasdaq. The stock, however, dropped $9.80 or 7.32% in the after-hours trading.