Exhibit 99.1

LogMeIn Announces Third Quarter 2018 Results

Renewal Rates Rebound; Raises Full Year Outlook

Boston, October 25, 2018 – LogMeIn, Inc. (NASDAQ: LOGM), a leading provider of cloud-based connectivity, today announced its results for the third quarter ended September 30, 2018.

Third quarter 2018 highlights include:

 

   

GAAP revenue was $308.9 million and non-GAAP revenue was $309.6 million

 

   

GAAP net income was $12.7 million or $0.24 per diluted share and non-GAAP net income was $72.9 million or $1.40 per diluted share

 

   

EBITDA was $93.9 million or 30.4% of GAAP revenue and Adjusted EBITDA was $115.2 million or 37.2% of non-GAAP revenue

 

   

Cash flow from operations was $73.7 million or 23.8% of non-GAAP revenue, and adjusted cash flow from operations was $83.5 million or 27.0% of non-GAAP revenue

 

   

Total GAAP deferred revenue was $373.3 million

 

   

The Company closed the quarter with cash and cash equivalents of $167.6 million and $200.0 million of borrowings under its existing credit agreement

“LogMeIn had a strong quarter as we saw positive early results from the steps we took to improve the performance of our Communications & Collaboration business which had renewal rates return to historical levels,” said Bill Wagner, President and CEO of LogMeIn. “We were also pleased by the continued momentum across all of our key growth areas, including Customer Engagement, Identity, and Unified Communications, where early results from a bundled Jive + GoToMeeting offering are helping to drive higher account penetration and increased revenue per customer.”

Business Outlook

Based on information available as of October 25, 2018, the Company is issuing guidance for the fourth quarter 2018 and fiscal year 2018.

Fourth Quarter 2018: The Company expects fourth quarter non-GAAP revenue to be in the range of $306 million to $307 million. The Company expects fourth quarter GAAP revenue to be in the range of $305 million to $306 million. Non-GAAP revenue adds back $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 $93 million to $94 million, or approximately 31% of GAAP revenue. Adjusted EBITDA is expected to be in the range of $115 million to $116 million, or approximately 38% of non-GAAP revenue.

Non-GAAP net income is expected to be in the range of $72 million to $73 million, or $1.41 to $1.42 per diluted share. Non-GAAP net income adds back the non-GAAP revenue adjustment


described above and excludes an estimated $18 million in stock-based compensation expense, $4 million in acquisition and litigation-related costs, $62 million of amortization expense of acquired intangible assets, and includes $1 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.

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 $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 $5 million to $6 million, or $0.10 to $0.11 per diluted share.

Fiscal year 2018: The Company expects full year 2018 non-GAAP revenue to be in the range of $1.203 billion to $1.204 billion. The Company expects full year 2018 GAAP revenue to be in the range of $1.199 billion to $1.200 billion. Non-GAAP revenue adds back $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 $382 million to $383 million, or approximately 32% of GAAP revenue. Adjusted EBITDA is expected to be in the range of $442 million to $443 million, or approximately 37% of non-GAAP revenue.

Non-GAAP net income is expected to be in the range of $280 million to $281 million, or $5.33 to $5.34 per diluted share. Non-GAAP net income adds back the non-GAAP revenue adjustment described above and excludes an estimated $67 million in stock-based compensation expense, $23 million in acquisition and litigation-related costs, $245 million of amortization expense of acquired intangible assets, a $34 million pre-tax gain associated with the disposition of a non-core asset and includes $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 $54 million to $55 million, or $1.03 to $1.04 per diluted share.


Dividend

In accordance with its previously announced capital return plan, the Company will pay a $0.30 per share dividend on November 30, 2018 to stockholders of record as of November 14, 2018. The Company currently has approximately 51.2 million shares of common stock outstanding.

Conference Call Information for Today, Thursday, October 25, 2018

The Company will host a corresponding conference call and live webcast at 5:00 p.m. Eastern Time today. To access the conference call, dial 855-719-5007 and enter passcode 5646346. A live webcast will be available on the Investor Relations section of the Company’s corporate website at https://www.logmeininc.com and via replay beginning approximately two hours after the completion of the call until the Company’s announcement of its financial results for the next quarter. An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time on October 25, 2018 until 8:00 p.m. Eastern Time on November 1, 2018, by dialing 719-457-0820 and entering passcode 5646346.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures including non-GAAP revenue, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and adjusted cash flow from operations.

 

   

Non-GAAP revenue is GAAP revenue excluding the impact of fair value acquisition accounting adjustment on acquired deferred revenue.

 

   

EBITDA is GAAP net income excluding provision for income taxes, interest income, interest expense, and other (expense) income, net, and depreciation and amortization.

 

   

EBITDA margin is calculated by dividing EBITDA by revenue.

 

   

Adjusted EBITDA is EBITDA excluding the impact of fair value acquisition accounting adjustment on acquired deferred revenue, acquisition-related costs, gain on disposition of non-core assets, stock-based compensation expense, and litigation related expense.

 

   

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by non-GAAP revenue, or GAAP revenue if not different.

 

   

Non-GAAP operating income excludes the impact of fair value acquisition accounting adjustment on acquired deferred revenue, acquisition related costs and amortization, gain on disposition of non-core assets, stock-based compensation expense, and litigation-related expense and includes amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.

 

   

Non-GAAP provision for income taxes excludes the tax impact of the fair value acquisition accounting adjustment on acquired deferred revenue, acquisition-related costs and amortization, gain on disposition of non-core assets, stock-based compensation expense, litigation-related expense, discrete integration related tax impacts, and the tax impact related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017, and includes the tax impact of amortization expense for GoTo’s internally capitalized software development costs that were adjusted in acquisition accounting to fair value.


   

Non-GAAP net income and non-GAAP net income per diluted share reflects the adjustments noted in non-GAAP operating income and non-GAAP provision for income taxes above.

 

   

Adjusted cash flow from operations excludes acquisition, disposition and litigation related payments.

The exclusion of certain expenses in the calculation of non-GAAP financial measures should not be construed as an inference that these costs are unusual or infrequent. We anticipate excluding these expenses in the future presentation of our non-GAAP financial measures. The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods and uses these measures in financial reports prepared for management and the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors. The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant elements that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management in determining these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, and not to rely on any single financial measure to evaluate the Company’s business. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included in this release.

About LogMeIn, Inc.

LogMeIn, Inc. (NASDAQ:LOGM) simplifies how people connect with each other and the world around them to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. One of the world’s top 10 public SaaS companies, and a market leader in communication & conferencing, identity & access, and customer engagement & support solutions, LogMeIn has millions of customers spanning virtually every country across the globe. LogMeIn is headquartered in Boston with additional locations in North and South America, Europe, Asia and Australia.


Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the improved performance of the Company’s Communications and Collaboration business and its renewal rates, the performance of the Company’s key growth areas, including Customer Engagement, Identity and Unified Communications and the Company’s financial guidance for fiscal year 2018 and the fourth quarter of 2018. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, customer adoption of the Company’s solutions, the Company’s ability to execute on its strategic initiatives, the Company’s ability to integrate acquired products or companies, the Company’s ability to attract new customers and retain existing customers, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, the effectiveness of the Company’s cybersecurity measures, the Company’s ability to continue to promote and maintain its brand in a cost-effective manner, the Company’s ability to compete effectively, the Company’s ability to develop and introduce new products and add-ons or enhancements to existing products, the Company’s ability to manage growth, the Company’s ability to attract and retain key personnel, the Company’s ability to protect its intellectual property and other proprietary rights, the result of any pending litigation including intellectual property litigation, and other risks detailed in the Company’s other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

LogMeIn is a registered trademark of LogMeIn, Inc. in the US and other countries around the world.

Contact Information:

Investors

Rob Bradley

LogMeIn, Inc.

781-897-1301

rbradley@LogMeIn.com

Press

Craig VerColen

LogMeIn, Inc.

781-897-0696

Press@LogMeIn.com


LogMeIn, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(In thousands)

 

     December 31,
2017
    September 30,
2018
 
ASSETS

 

Current assets:

    

Cash and cash equivalents

   $ 252,402     $ 167,626  

Accounts receivable, net

     93,949       87,673  

Prepaid expenses and other current assets

     52,473       61,926  
  

 

 

   

 

 

 

Total current assets

     398,824       317,225  

Property and equipment, net

     92,154       92,866  

Restricted cash, net of current portion

     1,795       1,825  

Intangibles, net

     1,149,597       1,119,867  

Goodwill

     2,208,725       2,404,279  

Other assets

     6,483       38,006  

Deferred tax assets

     530       719  
  

 

 

   

 

 

 

Total assets

   $ 3,858,108     $ 3,974,787  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY

 

Current liabilities:

    

Accounts payable

   $ 22,232     $ 36,658  

Accrued liabilities

     82,426       112,210  

Deferred revenue, current portion

     340,570       364,867  
  

 

 

   

 

 

 

Total current liabilities

     445,228       513,735  

Long-term debt

     —         200,000  

Deferred revenue, net of current portion

     6,735       8,455  

Deferred tax liabilities

     221,407       218,396  

Other long-term liabilities

     20,997       25,465  
  

 

 

   

 

 

 

Total liabilities

     694,367       966,051  
  

 

 

   

 

 

 

Equity:

    

Common stock

     560       567  

Additional paid-in capital

     3,276,891       3,300,815  

Accumulated earnings

     50,445       73,957  

Accumulated other comprehensive income

     15,570       5,790  

Treasury stock

     (179,725     (372,393
  

 

 

   

 

 

 

Total equity

     3,163,741       3,008,736  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 3,858,108     $ 3,974,787  
  

 

 

   

 

 

 


LogMeIn, Inc.

Condensed Consolidated Statements of Operations (unaudited)

(In thousands, except per share data)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2018     2017     2018  

Revenue

   $ 269,267     $ 308,927     $ 713,750     $ 893,794  

Cost of revenue

     55,605       72,853       147,780       208,628  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     213,662       236,074       565,970       685,166  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Research and development

     42,603       42,220       116,435       129,256  

Sales and marketing

     89,379       95,041       258,616       282,599  

General and administrative

     37,906       37,441       120,460       111,990  

Gain on disposition of assets

     —         —         —         (33,910

Amortization of acquired intangibles

     36,613       44,268       97,187       128,698  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     206,501       218,970       592,698       618,633  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     7,161       17,104       (26,728     66,533  

Interest income

     405       293       924       1,335  

Interest expense

     (294     (2,033     (1,088     (4,213

Other income (expense), net

     51       (77     (27     (403
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     7,323       15,287       (26,919     63,252  

(Provision for) benefit from income taxes

     2,597       (2,570     33,121       (14,269
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 9,920     $ 12,717     $ 6,202     $ 48,983  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) per share:

        

Basic

   $ 0.19     $ 0.25     $ 0.12     $ 0.94  

Diluted

   $ 0.19     $ 0.24     $ 0.12     $ 0.93  

Weighted average shares outstanding:

        

Basic

     52,706       51,652       49,697       52,090  

Diluted

     53,606       52,066       50,735       52,829  


LogMeIn, Inc.

Calculation of Non-GAAP Revenue (unaudited)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2017      2018      2017      2018  
     (in thousands)      (in thousands)  

GAAP Revenue

   $ 269,267      $ 308,927      $ 713,750      $ 893,794  

Add Back:

           

Effect of acquisition accounting on fair value of acquired deferred revenue

     6,856        654        30,427        3,186  
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP Revenue

   $ 276,123      $ 309,581      $ 744,177      $ 896,980  
  

 

 

    

 

 

    

 

 

    

 

 

 

Calculation of Non-GAAP Operating Income, Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2018     2017     2018  
     (In thousands, except per
share data)
    (In thousands, except per
share data)
 

GAAP Net income (loss) from operations

   $ 7,161     $ 17,104     $ (26,728   $ 66,533  

Add Back:

        

Effect of acquisition accounting on fair value of acquired deferred revenue

     6,856       654       30,427       3,186  

Stock-based compensation expense

     18,765       15,688       49,255       48,820  

Acquisition related costs

     10,455       4,698       51,391       19,074  

Litigation related expenses

     622       199       1,360       476  

Amortization of acquired intangibles

     49,842       62,484       132,603       183,086  

Gain on disposition of assets

     —         —         —         (33,910

Effect of acquisition accounting on internally capitalized software development costs

     (5,080     (1,505     (16,025     (7,636
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Operating income

     88,621       99,322       222,283       279,629  

Interest and other income (expense), net

     162       (1,817     (191     (3,281
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Income before income taxes

     88,783       97,505       222,092       276,348  

Non-GAAP Provision for income taxes(1)

     (26,638     (24,637     (67,404     (68,811
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net income (loss)

   $ 62,145     $ 72,868     $ 154,688     $ 207,537  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss) per diluted share

   $ 1.16     $ 1.40     $ 3.05     $ 3.93  

Diluted weighted average shares outstanding used in computing per share amounts

     53,606       52,066       50,735       52,829  

 

(1)

Non-GAAP provision for income taxes excludes the tax impact of Non-GAAP items as well as a discrete integration-related tax benefit of $3.8 million and $2.0 million in the nine months ended September 30, 2017 and 2018, respectively, and a net tax benefit of $2.9 million and $2.2 million in the three and nine months ended September 30, 2018, respectively, related to the enactment of the U.S. Tax Cuts and Jobs Act of 2017.

Calculation of EBITDA and Adjusted EBITDA (unaudited)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2018     2017     2018  
     (in thousands)     (in thousands)  

GAAP Net income (loss)

   $ 9,920     $ 12,717     $ 6,202     $ 48,983  

Add Back:

        

Interest and other (income) expense, net

     (162     1,817       191       3,281  

Income tax provision (benefit)

     (2,597     2,570       (33,121     14,269  

Amortization of acquired intangibles

     49,842       62,484       132,603       183,086  

Depreciation and amortization expense

     10,333       14,337       26,158       40,096  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     67,336       93,925       132,033       289,715  

Add Back:

        

Effect of acquisition accounting on fair value of acquired deferred revenue

     6,856       654       30,427       3,186  

Stock-based compensation expense

     18,765       15,688       49,255       48,820  

Gain on disposition of assets

     —         —         —         (33,910

Acquisition related costs

     10,455       4,698       51,391       19,074  

Litigation related expenses

     622       199       1,360       476  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 104,034     $ 115,164     $ 264,466     $ 327,361  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA Margin

     25.0     30.4     18.5     32.4

Adjusted EBITDA Margin

     37.7     37.2     35.5     36.5

Stock-Based Compensation Expense (unaudited)

 

     Three Months Ended
September 30,
     Nine Months Ended
September 30,
 
     2017      2018      2017      2018  
     (in thousands)      (in thousands)  

Cost of revenue

   $ 1,612      $ 1,278      $ 3,911      $ 3,755  

Research and development

     6,405        4,174        16,042        14,232  

Sales and marketing

     4,312        3,492        12,108        11,788  

General and administrative

     6,436        6,744        17,194        19,045  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock based-compensation

   $ 18,765      $ 15,688      $ 49,255      $ 48,820  
  

 

 

    

 

 

    

 

 

    

 

 

 

 


LogMeIn, Inc.

Calculation of Projected 2018 Non-GAAP Revenue (unaudited)

(In millions)

 

    

Three Months Ended
December 31, 2018

  

Twelve Months Ended
December 31, 2018

GAAP Revenue

   $305 - $306    $1,199 - $1,200

Add Back:

     

Effect of acquisition accounting on fair value of acquired deferred revenue

   1    4
  

 

  

 

Non-GAAP Revenue

   $306 - $307    $1,203 - $1,204
  

 

  

 

Calculation of Projected 2018 Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share (unaudited)

(In millions, except per share data)

 

     Three Months Ended
December 31, 2018
    Twelve Months Ended
December 31, 2018
 

GAAP Net income

     $5 - $6       $54 - $55  

Add Back:

    

Effect of acquisition accounting on fair value of acquired deferred revenue

     1       4  

Stock-based compensation expense

     18       67  

Acquisition and litigation related costs

     4       23  

Amortization of acquired intangibles

     62       245  

Effect of acquisition accounting on internally capitalized software development costs

     (1)       (8)  

Gain on disposition of assets

     —       (34)  

Income tax effect of non-GAAP items

     (16)       (71)  
  

 

 

   

 

 

 

Non-GAAP Net income

     $72 - $73       $280 - $281  
  

 

 

   

 

 

 

GAAP net income per diluted share

     $0.10 - $0.11       $1.03 - $1.04  

Non-GAAP net income per diluted share

     $1.41 - $1.42       $5.33 - $5.34  

Diluted weighted average shares outstanding used in computing net income per share

     51.7       52.5  

Calculation of Projected 2018 EBITDA and Adjusted EBITDA (unaudited)

(In millions)

 

     Three Months Ended
December 31, 2018
    Twelve Months Ended
December 31, 2018
 

GAAP Net income

     $5 - $6       $54 - $55  

Add Back:

    

Interest and other (income) expense, net

     2       5  

Income tax provision (benefit)

     8       22  

Amortization of acquired intangibles

     62       245  

Depreciation and amortization expense

     16       56  
  

 

 

   

 

 

 

EBITDA

     $93 - $94       $382 - $383  

Add Back:

    

Effect of acquisition accounting on fair value of acquired deferred revenue

     1       4  

Stock-based compensation expense

     18       67  

Acquisition and litigation related costs

     4       23  

Gain on disposition of assets

     —       (34)  
  

 

 

   

 

 

 

Adjusted EBITDA

     $115 - $116       $442 - $443  
  

 

 

   

 

 

 

EBITDA Margin

     31%       32%  

Adjusted EBITDA Margin

     38%       37%  


LogMeIn, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

(In thousands)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2017     2018     2017     2018  

Cash flows from operating activities

        

Net income

   $ 9,920     $ 12,717     $ 6,202     $ 48,983  

Adjustments to reconcile net income to net cash provided by operating activities:

        

Stock-based compensation

     18,765       15,688       49,255       48,820  

Depreciation and amortization

     60,175       76,821       158,761       223,181  

Gain on disposition of assets, net of transaction costs

     —         —         —         (36,281

Benefit from deferred income taxes

     (15,182     (12,032     (47,659     (34,062

Other, net

     232       489       1,606       1,282  

Changes in assets and liabilities, excluding effect of acquisitions and dispositions:

        

Accounts receivable

     (6,477     (6,429     (6,480     16,301  

Prepaid expenses and other current assets

     7,979       518       (4,607     8,474  

Other assets

     835       (4,897     991       (12,830

Accounts payable

     (1,040     2,072       10,154       13,575  

Accrued liabilities

     (1,458     (1,848     36,586       21,113  

Deferred revenue

     15,383       (7,752     75,135       28,031  

Other long-term liabilities

     1,343       (1,685     3,316       4,277  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities (1)

     90,475       73,662       283,260       330,864  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

        

Proceeds from sale or disposal or maturity of marketable securities

     10,500       —         41,603       —    

Purchases of property and equipment

     (13,518     (7,960     (23,322     (21,590

Intangible asset additions

     (8,184     (8,276     (21,893     (26,138

Cash paid for acquisition, net of cash acquired

     (43,375     1,279       (19,160     (342,072

Restricted cash acquired through acquisitions

     71       —         988       —    

Proceeds from disposition of assets

     —         —         —         42,394  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (54,506     (14,957     (21,784     (347,406
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

        

Borrowings (repayments) under credit facility

     —         —         (30,000     200,000  

Proceeds from issuance of common stock upon option exercises

     1,009       2,809       6,363       3,831  

Payments of withholding taxes in connection with restricted stock unit vesting

     (2,734     (1,536     (32,189     (29,490

Payment of debt issuance costs

     —         —         (1,993     —    

Dividends paid on common stock

     (13,181     (15,523     (39,117     (46,900

Purchase of treasury stock

     (21,460     (75,127     (51,075     (190,230
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (36,366     (89,377     (148,011     (62,789
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     1,569       (538     7,130       (5,427
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

     1,172       (31,210     120,595       (84,758

Cash, cash equivalents and restricted cash, beginning of period

     262,758       200,661       143,335       254,209  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash, end of period

   $ 263,930     $ 169,451     $ 263,930     $ 169,451  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Cash flows from operating activities includes the following acquisition, disposition, and litigation-related payments:

  (a)

Cash flows from operating activities includes transaction, transition, and integration-related payments, including retention-based bonus payments, for acquisitions and dispositions of $11.8 million and $5.6 million for the three months ended September 30, 2017 and 2018, respectively and $44.6 million and $19.9 million for the nine months ended September 30, 2017 and 2018, respectively.

  (b)

Cash flows from operating activities includes litigation-related payments of $0.3 million for the three months ended September 30, 2017 and $0.6 million and $1.2 million for the nine months ended September 30, 2017 and 2018, respectively.

  (c)

Cash flows from operating activities includes a partial tax payment from the gain on the Xively disposition of $4.2 million for the three and nine months ended September 30, 2018. A second tax payment of $4.2 million related to the Xively transaction will be paid in the fourth quarter of 2018.

Adjusted cash flows from operations adds back the items in (a), (b), and (c) above and sums to $102.5 million and $83.5 million for the three months ended September 30, 2017 and 2018, respectively, and $328.4 million and $356.2 million for the nine months ended September 30, 2017 and 2018, respectively.

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