Wednesday, July 1, 2009

"Do you want the other side of this trade?" LogMeIn IPO (LOGM)

AlphaNinja - That quote above is my sarcastic (but only a bit) way to remind myself that IPO's are timed for a reason - these folks want to sell high, just like the rest of us...(That being said, I adamantly assured people that they'd be able to scoop up shares of GOOG cheaper than the IPO's first trade at $95 - hey, always honest...)

Logmein (LOGM) sold shares to the public this morning. Priced at the high-end of expectations($16 per share), the stock has jumped further, up 27% to 20.30. Details below from their amended S-1 filing.

They sold 6.7m shares, 1.7m of which are by directors and officers. Total shares outstanding of 21million point to a total market value of $430million. The "run-rate" for sales (expected full year sales based on the last quarter) of $68mil implies the stock is trading at 6 times revenue -->>yet that revenue grew over 70% in the March quarter and 90% in 2008. In reality we're looking at about 4x sales.

In the March quarter, GAAP gross margins were 90%, up from 86% the prior year. Non GAAP (excluding noncash expenses) gross margins are even higher. The company has also held the line on SG&A (Selling, General & Administrative) spending.

Not a bad deal if you ask me.

After the offering, the major holders still own quite a bit of stock:

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