LogMeIn, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported revenue of USD 308,927,000 compared to USD 269,267,000 a year ago. Income from operations was USD 17,104,000 compared to USD 7,161,000 a year ago. Income before income taxes was USD 15,287,000 compared to USD 7,323,000 a year ago. Net income was USD 12,717,000 compared to USD 9,920,000 a year ago. Diluted net income per share was USD 0.24 compared to basic and diluted net earnings per share of USD 0.19 a year ago. Non-GAAP revenue was USD 309,581,000 against USD 276,123,000 a year ago. Non-GAAP operating income was USD 99,322,000 compared to USD 88,621,000 a year ago. Non-GAAP income before income taxes was USD 97,505,000 compared to USD 62,145,000 a year ago. Non-GAAP net income was USD 72,868,000 compared to USD 14,761,000 a year ago. Non-GAAP diluted net income per share was USD 1.40 compared to USD 1.16 a year ago. Adjusted EBITDA was USD 115,164,000 compared to USD 104,034,000 a year ago. Net cash provided by operating activities was USD 73,662,000 compared to USD 90,475,000 a year ago. Purchases of property and equipment were USD 7,960,000 compared to USD 13,518,000 a year ago. Intangible asset additions was USD 8,276,000 compared to USD 8,184,000 a year ago. EBITDA was USD 93,925,000 compared to USD 67,336,000 a year ago.

For the nine months, the company reported revenue of USD 893,794,000 compared to USD 713,750,000 a year ago. Income from operations was USD 66,533,000 compared to loss of USD 26,728,000 a year ago. Income before income taxes was USD 63,252,000 compared to loss of USD 26,919,000 a year ago. Net income was USD 48,983,000 compared to USD 6,202,000 a year ago. Diluted net income per share was USD 0.93 compared to basic and diluted net income per share of USD 0.12 a year ago. Non-GAAP revenue was USD 896,980,000 against USD 744,177,000 a year ago. Non-GAAP operating income was USD 279,629,000 compared to USD 222,092,000 a year ago. Non-GAAP income before income taxes was USD 276,348,000 compared to USD 222,092,000 a year ago. Non-GAAP net income was USD 207,537,000 compared to USD 154,688,000 a year ago. Non-GAAP diluted net income per share was USD 3.93 compared to USD 3.05 a year ago. Adjusted EBITDA was USD 327,361,000 compared to USD 264,466,000 a year ago. Net cash provided by operating activities was USD 330,864,000 compared to USD 283,260,000 a year ago. Purchases of property and equipment were USD 21,590,000 compared to USD 23,322,000 a year ago. Intangible asset additions was USD 26,138,000 compared to USD 21,893,000 a year ago. EBITDA was USD 289,715,000 compared to USD 132,033,000 a year ago.

The company provided guidance for the fourth quarter and full year ending December 31, 2018. For the fourth quarter, the company expects non-GAAP revenue to be in the range of USD 306 million to USD 307 million. The Company expects fourth quarter GAAP revenue to be in the range of USD 305 million to USD 306 million. Non-GAAP revenue adds back USD 1 million for the impact of an acquisition accounting adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation. EBITDA is expected to be in the range of USD 93 million to USD 94 million, or approximately 31% of GAAP revenue. Adjusted EBITDA is expected to be in the range of USD 115 million to USD 116 million, or approximately 38% of non-GAAP revenue. Non-GAAP net income is expected to be in the range of USD 72 million to USD 73 million, or USD 1.41 to USD 1.42 per diluted share. Non-GAAP net income for the fourth quarter assumes an effective tax rate of approximately 25% and GAAP net income assumes a tax provision of USD 8 million for the fourth quarter. Non-GAAP and GAAP net income per diluted share is based on an estimated 51.7 million fully-diluted weighted average shares outstanding. Including stock-based compensation expense, acquisition-related costs and amortization, litigation-related expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of USD 5 million to USD 6 million, or USD 0.10 to USD 0.11 per diluted share.

For the fourth quarter, the company expects non-GAAP revenue to be in the range of USD 1.203 billion to USD 1.204 billion. The Company expects full year 2018 GAAP revenue to be in the range of USD 1.199 billion to USD 1.200 billion. Non-GAAP revenue adds back USD 4 million for the impact of an acquisition accounting adjustment recorded to reduce acquired deferred revenue to the fair value of the remaining obligation. EBITDA is expected to be in the range of USD 382 million to USD 383 million, or approximately 32% of GAAP revenue. Adjusted EBITDA is expected to be in the range of USD 442 million to USD 443 million, or approximately 37% of non-GAAP revenue. Non-GAAP net income is expected to be in the range of USD 280 million to USD 281 million, or USD 5.33 to USD 5.34 per diluted share. Non-GAAP net income adds back the non-GAAP revenue adjustment described above and excludes an estimated USD 67 million in stock-based compensation expense, USD 23 million in acquisition and litigation-related costs, USD 245 million of amortization expense of acquired intangible assets, a USD 34 million pre-tax gain associated with the disposition of a non-core asset and includes USD 8 million of amortization expense for GoTo's internally capitalized software development costs that were adjusted in acquisition accounting to fair value, as well as the income tax effect of the above items and discrete tax items. Non-GAAP net income for the fiscal year assumes an effective tax rate of approximately 25% and GAAP net income for the fiscal year assumes an effective tax rate of approximately 29%. Non-GAAP and GAAP net income per diluted share is based on an estimated 52.5 million fully-diluted weighted average shares outstanding. Including stock-based compensation expense, acquisition-related costs and amortization, litigation-related expense, and excluding the acquisition accounting adjustments to revenue and amortization expense, the Company expects to report GAAP net income in the range of USD 54 million to USD 55 million, or USD 1.03 to USD 1.04 per diluted share.