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1 © 2016, LogMeIn, Inc. Investor Presentation Q1 2016

LOGM Q1 2016 Investor Presentation

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Page 1: LOGM Q1 2016 Investor Presentation

1© 2016, LogMeIn, Inc.

Investor PresentationQ 1 2 0 1 6

Page 2: LOGM Q1 2016 Investor Presentation

2© 2016, LogMeIn, Inc.

Safe Harbor Statement

This presentation contains forward-looking statements, as defined by federal and state securities laws. Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance or products, underlying assumptions, and other statements which are other than statements of historical facts. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “hope,” “expects,” “intends,” “plans,” “anticipates,” “contemplates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “continue,” and other similar terminology or the negative of these terms. From time to time, we may publish or otherwise make available forward-looking statements of this nature. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by the cautionary statements described on this message including those set forth below. In addition, we undertake no obligation to update or revise any forward-looking statements to reflect events, circumstances, or new information after the date of the information or to reflect the occurrence or likelihood of unanticipated events, and we disclaim any such obligation. Forward-looking statements are only predictions that relate to future events or our future performance and are subject to known and unknown risks, uncertainties, assumptions, and other factors, many of which are beyond our control, that may cause actual results, outcomes, levels of activity, performance, developments, or achievements to be materially different from any future results, outcomes, levels of activity, performance, developments, or achievements expressed, anticipated, or implied by these forward-looking statements. As a result, we cannot guarantee future results, outcomes, levels of activity, performance, developments, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. These forward-looking statements are made as of the date hereof and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. LogMeIn’s actual results could differ materially from those stated or implied in forward-looking statements. Past performance is not necessarily indicative of future results. We do not intend to update these forward looking statements even though our situation may change in the future. Further, we encourage you to review the risks that we face and other information about us in our filings with the SEC, including our Annual Report on Form 10-K which was filed on February 19th, 2016, and our Quarterly Reports on Form 10-Q, all of which are available at www.SEC.gov. We have also included GAAP and non-GAAP and adjusted EBITDA financial measures in this presentation. A reconciliation of GAAP and non-GAAP financial measures are available in our press release dated April 28th, 2016 located on our website at www.LogMeInInc.com.

Page 3: LOGM Q1 2016 Investor Presentation

3© 2016, LogMeIn, Inc.

Our Vision—possibilities increase

with connectivity

&

Our Mission—to simplify the way

people connect to each other and the world

around them

Page 4: LOGM Q1 2016 Investor Presentation

4© 2016, LogMeIn, Inc.

Doubling the Company by 2020

2016 operating cash flow of

~$100M

FY’16 guide²: $331M rev &

$1.88 EPS

$9.7B total addressable

market1

$

¹Total web conferencing, identity and access management, clientless remote support, and chat market combined²Midpoint from Q1’16 earnings press release guidance on April 28, 2016

Page 5: LOGM Q1 2016 Investor Presentation

5© 2016, LogMeIn, Inc.

• “Tech-bred” workforce is now the norm

• They want faster, easier solutions than legacy players currently offer

• Expect software tools that just work

Growing Millennial Workforce

Industry Trends Driving Growth

• 70% of employees work from multiple locations regularly¹

• Need access to cloud applications, not just the network

• Cloud apps are introduced by the workforce, not IT

Cloud Proliferation

• Proliferation of connected devices

• Companies want to connect, manage, and engage with customers and devices

• Businesses struggle to secure and scale platforms and devices

Internet of Things

¹Intelligent Office

Page 6: LOGM Q1 2016 Investor Presentation

6© 2016, LogMeIn, Inc.

Identity and Access Management

36%of revenue

in Q1’16

41%YOY growth

in Q1’16

LastPass and Central offer best

in class, secure identity and access

management applications

$6B identity and access

market, with the cloud based segment growing at ~25%1

Nearly1Mtotal subscribers

in the IAM cloud

LastPass is

the primary

growth driver of this cloud

¹IDC, Worldwide Identity and Access Management Forecast 2015-2019, October 2015

#1Margin driver for the company

Central connects IT managers with

employees 500M times annually

Page 7: LOGM Q1 2016 Investor Presentation

7© 2016, LogMeIn, Inc.

Collaboration Cloud

34%of revenue

in Q1’16

40%YOY growth

in Q1’16

join.me and Pro offer instant online

meeting and access solutions with ease of use and speed that delights users

$2.4B web conferencing

market, growing at ~8%1

#1In speed and ease of use

join.me hosted 35M online

meetings in 2015

150% Increase in join.mesubscribers in 2015

¹Frost & Sullivan, Analysis of the Global Web Conferencing Market, January 2016

join.me is

the primary

growth driver of this cloud

Page 8: LOGM Q1 2016 Investor Presentation

8© 2016, LogMeIn, Inc.

Support of Things

31%of revenue

in Q1’16

13%YOY growth

in Q1’16

Rescue, BoldChat, and Xively offer a suite to connect,

manage, and engage products and customers

$1.3B clientless remote support and chat market combined1

Rescue and BoldChat hosted 165Msupport sessions in 2015

#1In mobile devicesupport

¹Frost & Sullivan, Web Chat Market, June 2015, and IDC, Worldwide Clientless Remote Support Software, September 2015²Gartner Research, Consider All Cost Elements When Planning for an Internet of Things Initiative, July 2015

BoldChat is

the primary

growth driver of this cloud25B devices are

expected to be

connected by 2020²

Page 9: LOGM Q1 2016 Investor Presentation

9© 2016, LogMeIn, Inc.

Financial Highlights

Page 10: LOGM Q1 2016 Investor Presentation

10© 2016, LogMeIn, Inc.

$0

$50

$100

$150

$200

$250

$300

$350

2009 2010 2011 2012 2013 2014 2015 2016

Revenue (M)

$0

$20

$40

$60

$80

$100

$120

2009 2010 2011 2012 2013 2014 2015 2016

GAAP Operating Cash Flow (M)

$0.00

$0.50

$1.00

$1.50

$2.00

2009 2010 2011 2012 2013 2014 2015 2016

Non-GAAP Earnings Per Share

CAGR 24%

Strong Revenue, Cash Flow, and EPS Growth Since IPO

$330M-$332M*

CAGR 33%

~$100M*

CAGR 33%

$1.83-$1.93*

*Guidance as of April 28th, 2016

Page 11: LOGM Q1 2016 Investor Presentation

11© 2016, LogMeIn, Inc.

Long-Term Financial Targets at Scale

$0

$100

$200

$300

$400

$500

$600

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Revenue (M) EBITDA (M) GAAP Operating Cash Flow (M)

$500M+ Revenue in 3-4

Years

25%-30%Adjusted

EBITDA Margins

~30%Operating Cash Flow Margins

Page 12: LOGM Q1 2016 Investor Presentation

12© 2016, LogMeIn, Inc.

Capital Allocation

M&AGrowth may include acquisitions in our three core growth areas,

similar to BoldChat and LastPass

Share Repurchase ProgramLeverage cash flow to manage dilution; average repurchase price

since 2012 has been $36.34

Debt RepaymentManage capital to repay debt over the next 2 years

Page 13: LOGM Q1 2016 Investor Presentation

13© 2016, LogMeIn, Inc.

Investment Highlights

SaaS company with consistent ~25% free

cash flow

20%+ revenue growth and profitability

Products disrupting large, growing

markets

$