LogMeIn Shares Rise As Q1 Results Beat View, Lifts Full-year Outlook

(RTTNews) - Shares of LogMeIn, Inc. (LOGM) gained almost 12 percent in extended trades Tuesday after the company's results for the first quarter beat analysts' expectations and it forecast results for the second quarter above their estimates. In addition, the company raised its financial outlook for fiscal 2014.

The Boston, Massachusetts-based provider of cloud-based collaboration, IT management, and customer service offerings reported a turnaround to profit in the first quarter on strong revenue growth.

Michael Simon, CEO of LogMeIn said, "We made significant progress on our three key growth drivers - join.me, SMB IT, and our IoT efforts around Xively - during the first quarter. In addition, a decision to transition our remote access service to a premium-only offering helped deliver results in both new subscribers and new sales that exceeded our expectations."

LogMeIn's net income for the first quarter was $1.00 million or $0.04 per share, compared to net loss of $5.81 million or $0.24 per share in the year-ago period. The latest quarter's results include $5.44 million in stock compensation expense, $63,000 in patent litigation related expense and $1.14 million in acquisition-related costs and amortization.

Adjusted net income for the quarter was $5.50 million or $0.22 per share, compared to $3.13 million or $0.12 per share in the prior-year period. On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $0.21 for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter grew 31 percent to $49.02 million from $37.44 million in the prior-year quarter and beat analysts' consensus estimate of $47.06 million for the quarter.

Looking ahead to the second quarter, LogMeIn forecasts reported net income of $0.00 to $0.01 per share, adjusted net income of $0.23 to $0.24 per share, and revenue in a range of $52.2 million to $52.7 million.

Analysts expect the company to report earnings of $0.22 per share for the quarter on revenue of $49.08 million.

For fiscal 2014, LogMeIn now forecasts reported net income of $0.10 to $0.17 per share, adjusted net income of $0.96 to $1.04 per share, and revenue in a range of $209.0 million to $212.0 million.

Earlier, the company forecast reported fiscal 2014 net income in a range of $0.07 to $0.16 per share, adjusted net income of $0.86 to $0.96 per share, and revenue in a range of $198.0 million to $202.0 million.

Analysts expect the company to report earnings of $0.92 per share for the year on revenue of $200.46 million.

LOGM closed Tuesday's regular trading session at $39.12, up $0.97 or 2.54 percent on a volume of 367,713 shares, In after-hours, the stock further gained $4.67 or 11.94 percent to $43.79.