Shares of LogMeIn (NASDAQ:LOGM) slumped on Friday after the software-as-a-service company reported its fourth-quarter results. While LogMeIn beat analyst estimates across the board, news of the planned resignation from the board of co-founder and chairman Michael Simon, a restructuring plan, and lackluster guidance weighed on the stock. Shares were down about 13.7% at 12:35 p.m. EST.
LogMeIn reported fourth-quarter non-GAAP revenue of $310.7 million, up 12.6% year over year and about $4 million higher than the average analyst estimate. Non-GAAP earnings per share (EPS) came in at $1.47, up from $1.20 in the prior-year period and $0.06 better than analysts were expecting.
The planned resignation of Michael Simon as chairman of the board of directors, effective March 1, may have caught the market off guard. Simon is leaving to pursue a new personal business interest.
A global restructuring plan aimed at streamlining operations was also announced. Most of the restructuring is expected to be complete by the end of fiscal 2019, and the company expects to achieve annualized cost savings of about $26 million.
For the first quarter of 2019, LogMeIn expects to generate non-GAAP revenue between $304 million and $306 million, along with non-GAAP EPS of $1.12 to $1.15. That represents year-over-year revenue growth of 8.8%, and a 6.2% decline in non-GAAP EPS.
For the full year, LogMeIn expects non-GAAP revenue between $1.25 billion and $1.26 billion, and non-GAAP EPS of $4.90 to $4.97. Those ranges compare to revenue of $1.208 billion and non-GAAP EPS of $5.39 in 2018.
While LogMeIn's fourth-quarter results were solid, the market did not respond well to guidance calling for an earnings decline this year.