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Friday, October 27, 2017

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The Big One

A breakdown on the day’s biggest Inno story.

Dylan: LogMeIn continued its eight-year streak of beating Wall Street expectations with its latest earnings report on Thursday, prompting the company’s stock to slightly jump to a $6.6B market cap. But not everyone is getting to share in that success.

Following the closing of the Boston tech company’s merger with Citrix’s GoTo business in February, LogMeIn laid off roughly 200 people this year, which amounts to less than 10% of the company’s 2,800-person workforce, CEO Bill Wagner told me yesterday.

Wagner said the layoffs are part of the company’s $100M cost-cutting goals. At the same time, LogMeIn’s hiring spree is set to outpace those job losses, he added.

For LogMeIn’s third quarter, the company posted $276.12M in revenue, a 224% increase from the same period last year, and net earnings of $1.16 per share. With those figures, the company surpassed the average analyst estimate on Wall Street once again, continuing a winning streak that has now last for 33 consecutive quarters over eight years.

Wagner attributes the company’s success on Wall Street to three things: operational discipline, the predictability of revenue in a software-as-a-service business model and its focus on small- to medium-sized businesses, which account for roughly 75% of revenue and can make faster buying decisions than larger companies.

“It’s a mindset of pushing the team internally but sharing more modest expectations externally,” Wagner said. Read more: LogMeIn Continues 8-Year Winning Streak



In The Know

The Inno stories you need to read today.


Making Moves

Inside the people, companies and organizations making moves in Boston.

Lucy: Contrary Capital is a new kind of venture capital firm that wants to be the go-to fund for college and university startups, according to venture partner Jackson Feder. The fund was the idea of a Northeastern University alum, Eric Tarczynski, who noticed the necessity to fill the gap between the low and high amount that funds would typically give to college students. Over the past two years, Tarczynski had been working on the back-end, getting the firm off the ground by acquiring funding from various notable benefactors such as Martin Eberhard (co-founder and former CEO of Tesla Motors), Daniel Macklin (co-founder of SoFi), Emmett Shear (co-founder and CEO of Twitch) and others. Our terrific editorial intern Fran Albanese has the story. Read more: This Venture Capital Fund Focuses on Startups at the University Level 

Dylan: If you’re a pinball machine aficionado, we have some good news for you. When Down The Road Beer Co. opens its Everett taproom and brewery next week, the space will be home to eight of the top 10 player-rated pinball machines in the Internet Pinball Database. Beyond satisfying founder Donovan Bailey’s passion for pinball, the machines will also help Down The Road stand out among the more than 140 breweries in Massachusetts. Read more: This New Everett Brewery Is a Paradise for Pinball Machine Fans

Lucy: While GE’s stock is not in good shape, Brightcove shares went up 11.7% following Q3 results that beat earnings per share and revenue estimates.

Dylan: Quite the turnaround for a company whose longtime CEO resigned earlier this year because of poor performance.


New Money

Your daily funding roundup.

Dylan: Amastan Technologies, which is developing a “microwave-plasma production system,” raised a nearly $14M Series B round, according to BBJ.


In The Community

The events and happenings to know about tonight and this week.

Lucy: A couple of things to put in your calendar for Monday:

— In the morning, Boston Business Journal presents Salute to Veterans, a new program to recognize veterans and organizations that are making employment and advancement strides with veterans. General admission tickets are at $85.

— In the evening, Brandeis International Business School is celebrating the kickoff of Smart Fifty in Boston, a contest for aspiring startups working on “smart” solutions in the categories of learning, money, sustainability, living and health. The international competition will select the top “50 solutions to transform India.”


Read This Right Now

Custom. Any other section you want to add here? If not, delete!

Dylan: In a guest post for BostInno, Gayatri Sarkar, an angel investor associated with the MIT alum-led VC firm Castor Ventures, wrote about what token buyers should know around the current craze surrounding Initial Coin Offerings: “It will be interesting to see post-ICO if these shareholders have enough incentives to put their hard work and sweat into building a company of distributed value. It’s like giving millions of dollars to your toddlers and asking them to study hard in school. Being a cash-rich startup does not ensure product success.”

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Meet The Authors

Dylan Martin
dmartin@americaninno.com

Lucia Maffei
lmaffei@americaninno.com

Kyle Gross
kgross@americaninno.com

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