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Summary:

Remote computer access service provider LogMeIn has filed to raise up to $86.3 million through an initial public offering, according to a filing late last week with the SEC. The Woburn, Mass.-based company reported a loss of $6.5 million on sales of a mere $18.1 million […]

Remote computer access service provider LogMeIn has filed to raise up to $86.3 million through an initial public offering, according to a filing late last week with the SEC. The Woburn, Mass.-based company reported a loss of $6.5 million on sales of a mere $18.1 million for the nine months ending Sept. 2007, but its growth is strong, with sales increasing 151 percent in the same time period.

As it uses a peer-to-peer data transfer model after it makes the connection between the home computer and the remote user, LogMeIn faces less of an infrastructure burden as it grows. It has filed to trade on the Nasdaq under the symbol LOGM.

The company sells primarily to enterprises, so the IPO may also be an effort to gain some credibility with corporate buyers. Some of that credibility may also come from a deal LogMeIn signed with Intel in December. The previously undisclosed deal involves Intel investing $10 million in LogMeIn and an agreement to tightly integrate LogMeIn’s services with Intel hardware. The chipmaker will also market and sell LogMeIn’s service to its customers and share that revenue with LogMeIn. Polaris Venture Partners, Prism Venture Partners, Integral Capital Partners and Intel Capital are backing the five-year-old company.

  1. That’s just ridiculous.

    Its just software, kids. With tons of clones already out there who will duplicate all the features.

    If this flies we are truly in another massive bubble.

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  2. [...] their IPO based on its filing with the SEC.  LogMeIn is based in Woburn, Mass.  According to GigaOM, LogMeIn sales reported a loss of $6.5 million in sales from December-September 2007 but grew 151% [...]

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  3. From S-1:

    During the nine months ended September 30, 2007, we completed over 159,000 transactions at an average transaction price of approximately $160.

    Our customer base has grown from approximately 48,000 premium accounts in November 2006 to approximately 92,000 premium accounts in November 2007.

    159K transactions but premium customer grew by 44K. Looks like major churn in premium customer base. If I am reading this right, they lost 100K premium customer between Sept/Nov 07 to Sept/Nov 08! Hummm…

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  4. Personally I’m happier with NTRsupport (www.ntrsupport.com). No installation, multiplatform, multibrowser, even works on Windows Mobile.
    It’s also the safest of them all.

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  5. Stacey Higginbotham Tuesday, January 15, 2008

    Sarita, excellent point about churn. With financials like this I’m not sure why they are going out, unless their venture backers need to clear out the portfolio. It looks like interesting technology though, and maybe the bankers can sell this based on the $3.2 billion WebEx acquisition by Cisco last March. LogMeIn names WebEx as a competitor.

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    1. I’ve used their free consumer service. It works well, but I didn’t see much of a need to upgrade to Pro. I think the only advantage was the ability to transfer files from the remote computer to the local and back.

    2. Those revenue numbers are WAY TO LOW to go public. The costs of being public alone will take a big cut. The only reason they’re going is for a serious need of cash or to make their backers happy, and that’s the wrong reason. I’d stay away from this one.

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  6. Gerard Laurent Tuesday, January 15, 2008

    I agree that NTRsupport is a superior product. I use this tool for meetings, training and support. I even use it on Mac’s and smartphones.

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  7. I have used GoToAssist and NTR Support and find both to be inferior to LogMeIn. GoToAssist is not-cross platform and NTR is actually a technological joke compared to the other two.

    But, rather than discuss products, Om’s post was about the IPO. Choosing certain statements out of context from the S-1 and making broad-based assumptions about the company and its prospects sounds like the desperate bashing of jealous competitors.

    Also interesting that Intel is investing $10 million and doing some kind of technology partnership. But, I suppose when you are bashing your competition, you would want to selectively leave that out of your commentary.

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  8. Does any one know when this company is scheduled to IPO? Date?

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  9. I switched to LogMeIn from GoToMyPC a couple years ago. I’ve since purchased it for every customer I support on a contract basis and use the Free product for temporary access. The cost is low, the ability to use a free version is an added bonus, and their other products are in high-demand with many of my clients, especially LogMeInBackup.

    I saw this filing headline in a long list of others and marked it immediately. I’ve not felt this confident about an IPO since I advised peers to purchase Google!

    And this was before I learned of the deal with Intel…

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  10. Personally, I’ve switched from LogMeIn Rescue to Techinline Remote Desktop (www.techinline.com). It’s about 4 times cheaper, and it is so easy to use given that there is absolutely no installation required on either end. Although it’s not as fully-featured LogMeIn, it is a steal when comparing the functionality to the price. As for the LogMeIn IPO, the state of the economy and their high pricing will not do them much good in the near future.

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  11. Personally, I’ve just dropped LogMeIn from my list. It’s still expensive. And I don’t like the way that all traffic go to their central servers and a service is always running in my computer, not safe, though some people, I don’t know if my important data are secure or not. So I’ve switched to NeoRouter (www.neorouter.com). It’s free and I can have my own server. It supports more features than LogMeIn and it’s more secure, more fast and more easy to use.

    Anyway, good luck!

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  12. [...] needs to continue to find other alternative methods (such as the deal with Intel) to generate more revenue in order to keep investors [...]

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