LogMeIn (LOGM, Financial) reported a strong set of numbers for the third quarter that exceeded the company’s guidance. It performed quite well across its product segments namely join.me and Xively platform and continues its strong momentum. Recently it launched new versions of join.me in different languages such as German, French, Spanish and various others. This is a strategic move that will allow LogMeIn to capture its non-English speaking markets in the Euro Zone even as the company tries to allure its customers through new marketing campaigns in important western markets.
Product development moves
In addition, the company introduced a new integration between join.me and Google apps, which will enable the users to start join.me meetings directly from Google Calendar. And since its launch in August, LogMeIn received a good response with More than 5 million businesses adopting Google Apps as a Cloud-based alternative to traditional productivity suites. Going forward, the management anticipates this numbers to increase, further boosting its top line.
During the quarter, LogMeIn took another big leap towards its expansion as it acquired Meldium, which provides password management solution. Addressing the need of identity management solution by small and medium business, the company had introduced its AppGuru product line. And with the acquisition of Meldium, LogMeIn will be able to take this even further.
Moving to Internet of Things (IoT), Xively is yet another area where the company reported strong growth during the quarter. LogMe continues to see a favorable synergy developing between its early IoT efforts and its well-established service Cloud business. In the third quarter it bagged a new order from a leading industrial printer manufacturer named SATO. Its new printers are enabled with Xively, which will equip these devices with remote diagnostics and troubleshooting capabilities. This has opened a whole new realm of advancements for customers and immense opportunities for LogMeIn.
Conclusion
Although the IoT market is still not completely developed but the management see huge potential to grow in this area. And Xively platform could be the key for LogMeIn’s success in this segment. The stock has performed quite well in the past one year and considering its future prospects we could see more upside to this stock.
