LogMeIn Goes Public With IPO Valued At $16 Per Share
LogMeIn, the software company known for their remote access software which allows users to easily access their computer from anywhere (provided you have an Internet connection) has just recently gone public. LogMeIn did well on its first day in the market with an initial public offering which was valued at $16 per share that rose to just over $20 per share. The latest IPO from LogMeIn is now the fourth venture backed technology startup to have made a strong debut this year. The first three being, OpenTable, SolarWinds, and Medidata Solutions.
I’m still somewhat skeptical about the company though. While it has reportedly been in the black since 2008, it hasn’t provided a full year of profit earnings yet. Additionally, it appears according to Morningstar Inc. analyst Rafael Garcia that while the number of electronic devices that use its software has jumped to 70 million over the past six years, almost 90% of users opt for the company’s free tools.
That may prove to be a problem in the long term, if they are only able to convert 10% of their users over to the pro version of their product. I have used LogMeIn since it first came out and I have always like the product – it works very well and is extremely simple to setup, but I have never felt the need to purchase the pro version.
LogMeIn needs to continue to find other alternative methods (such as the deal with Intel) to generate more revenue (and bigger profits) in order to keep investors happy.
Have you used LogMeIn? How do you like it? Would you ever consider purchasing the pro version of the software? Leave a comment!
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