Prospectus Summary
PROSPECTUS SUMMARYThis summary highlights information contained elsewhere in this prospectus. This summary does not contain all of the information you should consider before investing in our common stock. You should read this entire prospectus carefully, especially the “Risk Factors” section of this prospectus and our consolidated financial statements and related notes appearing at the end of this prospectus, before making an investment decision.
Overview
LogMeIn is a leading provider of on-demand, remote-connectivity solutions to small and medium-sized businesses, or SMBs, IT service providers and consumers. Businesses and IT service providers use our solutions to deliver remote, end-user support and to access and manage computers and other Internet-enabled devices more effectively and efficiently. Consumers and mobile workers use our solutions to access computer resources remotely, thereby facilitating their mobility and increasing their productivity. Our solutions, which are deployed on-demand and accessible through a Web browser, are secure, scalable and easy for our customers to try, purchase and use. Our customer base has grown from approximately 48,000 premium accounts in November 2006 to approximately 92,000 premium accounts in November 2007.
We believe LogMeIn Free and LogMeIn Hamachi, our popular free services, provide on-demand connectivity to more users than any other on-demand connectivity service, giving us access to a diverse group of users and increasing awareness of our premium services. Our users have connected over 30 million computers and other Internet-enabled devices to a LogMeIn service, and during November 2007 the total number of devices connected to our services increased at an average of over 60,000 per day. We complement our free services with nine premium services, including LogMeIn Rescue and LogMeIn IT Reach, our flagship remote support and management services, and LogMeIn Pro, our premium remote access service. Sales of our premium services are generated through word-of-mouth referrals, Web-based advertising, expiring free trials that we convert to paid subscriptions and direct marketing to new and existing customers.
We deliver each of our on-demand solutions as a hosted service that runs on our proprietary platform called Gravity. Gravity establishes secure connections over the Internet between remote computers and other Internet-enabled devices and mediates the direct transmission of data. This robust and scalable platform connects over 4.2 million computers to our services each day.
We sell our services on a subscription basis at prices ranging from approximately $40 to $1,900 per year. During the nine months ended September 30, 2007, we completed over 159,000 transactions at an average transaction price of approximately $160. During the nine months ended September 30, 2007, we generated revenues of $18.4 million, as compared to $7.3 million over the same period in 2006, an increase of 151%.
Industry Background
Mobile workers, IT professionals and consumers save time and money by accessing computing resources remotely. Remote access allows mobile workers and consumers to use applications, manage documents and collaborate with others whenever and wherever an Internet connection is available. Remote-connectivity solutions also allow IT professionals to deliver support and management services to remote end users and computers and other Internet-enabled devices.
A number of trends are increasing the demand for remote-connectivity solutions:
End box 1 END PAGE WIDTH PAGEBREAK BEGIN PAGE WIDTH Begin box 1Our Solutions
Our solutions allow our users to remotely access, support and manage computers and other Internet-enabled devices on demand. We believe our solutions benefit users in the following ways:
Our Competitive Strengths
We believe that the following competitive strengths differentiate us from our competitors and are key to our success:
End box 1 END PAGE WIDTH PAGEBREAK BEGIN PAGE WIDTH Begin box 1Growth Strategy
Our objective is to extend our position as a leading provider of on-demand, remote-connectivity solutions. To accomplish this, we intend to:
Intel Relationship
In December 2007, we entered into a service and marketing agreement with Intel Corporation to jointly develop a service that delivers connectivity to computers built with Intel components. Under the terms of this multi-year agreement, we will adapt our service delivery platform, Gravity, to work with specific technology delivered with Intel hardware and software products. Intel will market and sell the services to its customers. Intel will pay a minimum license and service fee to us on a quarterly basis during the term of the agreement. In addition, we and Intel will share revenue generated by the use of the services by third parties to the extent it exceeds the minimum payments. In conjunction with this agreement, Intel Capital purchased 2,222,223 shares of our series B-1 redeemable convertible preferred stock for approximately $10.0 million.
Risks That We Face
You should carefully consider the risks described under the “Risk Factors” section and elsewhere in this prospectus. These risks could materially and adversely impact our business, financial condition, operating results and cash flow, which could cause the trading price of our common stock to decline and could result in a partial or total loss of your investment.
Our Corporate Information
In February 2003, we incorporated under the laws of Bermuda. In August 2004, we completed a domestication in the State of Delaware under the name 3am Labs, Inc. We changed our name to LogMeIn, Inc. in March 2006. Our principal executive offices are located at 500 Unicorn Park Drive, Woburn, Massachusetts 01801, and our telephone number is (781) 638-9050. Our website address is www.logmein.com. The information contained on, or that can be accessed through, our website is not a part of this prospectus. We have included our website address in this prospectus solely as an inactive textual reference.
End box 1 END PAGE WIDTH PAGEBREAK BEGIN PAGE WIDTH Begin box 1Unless the context otherwise requires, we use the terms “LogMeIn,” “our company,” “we,” “us” and “our” in this prospectus to refer to LogMeIn, Inc. and our subsidiaries on a consolidated basis.
Gravity™, LogMeIn® Backup™, LogMeIn® Free®, LogMeIn® Hamachi™, LogMeIn® Ignition™, LogMeIn® Rescue®, LogMeIn® Rescue+Mobile™, LogMeIn® Pro®, LogMeIn® IT Reach® and RemotelyAnywhere® are trademarks or registered trademarks of LogMeIn, Inc. Other trademarks or service marks appearing in this prospectus are the property of their respective holders.
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