Shares of cloud collaboration specialist LogMeIn (NASDAQ:LOGM) have gotten crushed today, down by 24% as of 12 p.m. EDT, after the company reported second-quarter earnings results. LogMeIn also reduced its full-year guidance, rattling investors in the process.
Revenue in the second quarter came in at $305.7 million, with non-GAAP net income of $69.8 million, or $1.32 per share. Both top- and bottom-line results were able to beat consensus estimates that called for $305.2 million in sales and $1.25 per share in adjusted profit. Adjusted EBITDA was $110.1 million, and the company generated $111.3 million in adjusted operating cash flow.
"LogMeIn had a solid second quarter with revenue and earnings that exceeded the high-end of our guidance," CEO Bill Wagner said in a statement. "While we expect isolated headwinds in the second half of the year, we continue to be pleased with the trajectory of our long-term growth drivers -- Unified Communications, Digital Engagement and Identity -- all of which accelerated in the quarter."
Speaking of those expected "isolated headwinds," guidance for the third quarter calls for revenue to be in the range of $301 million to $303 million, with non-GAAP net income of $70 million to $71 million, or $1.33 to $1.35 per share.
For the full-year 2018, revenue should be in the range of $1.18 billion to $1.18 billion, with non-GAAP net income of $273 million to $278 million, or $5.17 to $5.26 per share. That's lowered from the forecast that LogMeIn provided in May, which called for revenue of $1.21 billion to $1.22 billion and adjusted profits of $276 million to $282 million, or $5.20 to $5.31 per share.
On the earnings call, Wagner said the company recently made some leadership changes heading into the third quarter, changing certain operational practices, adjusting pricing, and focusing on product development. It will take "several quarters for these actions to meaningfully impact renewal revenue," according to Wagner, which is why LogMeIn is issuing more conservative guidance.