Specialist
Former director at LogMeIn Inc (GoTo Group Inc)
Agenda
- GoTo’s (LogMeIn) overall operating environment, discussing IT access/support and engagement/support industry trends
- Competitive dynamics among GoTo, OneLogIn, 1Password, Okta (NASDAQ: OKTA), Microsoft (NASDAQ: MSFT), Zoom (NASDAQ: ZM) and more
- Product portfolio simplification and rebranding effort, partner programme growth and efforts to gain international traction
- Outlook for 2023 and beyond, noting management team and remote support and access segment
Questions
1.
What is your overview of GoTo’s overall operating environment? What 2-3 key trends or drivers do you think are most important to pay attention to when assessing the business today?
2.
What key themes are impacting the current state of demand for GoTo’s suite of products? What might be driving demand in the LastPass segment? Overall, what headwinds or tailwinds should we monitor around demand?
3.
Who do you consider to be GoTo’s primary competitors or main peer set within the LastPass business segment? Is it Okta, Microsoft and 1Password, as you mentioned, or more focused players such as Dashlane or Keeper?
4.
Who do you consider to be the largest competitors within GoTo, on a product-by-product basis, starting with Connect?
5.
Overall, do you think the GoTo Connect solution has any vertical expertise to help it compete against Teams, RingCentral and Zoom? Can you outline where that comparative advantage comes from for the business, especially downmarket?
6.
What’s your take on the future value proposition of the GoTo Meeting business? As you mentioned, I think most people, at least anecdotally, are using Zoom or Teams and would rarely say they’ve been asked to join a GoTo Meeting call.
7.
It seems that a lot of the play is coming in at the lower end of the market. Who is the main competition in the low end? How does GoTo compare with these other vendors in terms of features, scalability, overall ease of use and TCO [total cost of ownership]? What do customers consider and what mainly drives differentiation at that lower end of the marketplace?
8.
How does GoTo Resolve stack up against competitors such as TeamViewer? Who are the main competitors for this particular business segment? What do you think GoTo Resolve does better vs a rival offering?
9.
As you mentioned, it’s typically regarded, at least on software review sites, as a pretty robust solution along with peers such as TeamViewer, but it seems like performance has been worse than TeamViewer overall. Do you think the remote support access products are typically also well-regarded or well-sold into the customer base? Is there more to be desired in terms of what can be built out in the go-to-market strategy or marketing approach to improve traction within that product category?
10.
You indicated that the switch from the freemium model might have been a potential misstep. Do you think GoTo could revert its pricing back to a freemium model to better compete against TeamViewer in remote support and access? If it’s a permanent change, how could the company be more competitive against TeamViewer moving forward?
11.
Do you think GoTo is targeting TeamViewer and could or should be preparing a new strategy to compete more effectively with it in that category, or might it be too late? What likely developments on the competitive front over the next 12-24 months would you suggest?
12.
Do you think GoTo is satisfied operating in the lower part of the market? The company seems potentially over-indexed there, unlike others who try to have a strategy to move more upmarket towards the mid market and enterprise, while still maintaining healthy businesses in the lower end, such as RingCentral, 8x8, Microsoft and Zoom. What do you think is the sweet spot in terms of seats? How do you think about the size or scope of that market opportunity compared to what’s available at the upper end?
13.
You mentioned MSPs [managed service providers] and it seems that’s a big focus for the LastPass segment. Do you think GoTo has good relationships overall with the channel partners? Does the company have separate channel partners for each product type? Does the relationship typically vary between the UCaaS, the remote support and access tools, while the MSP is just for LastPass? What does the partner ecosystem look like?
14.
You indicated 500-1,000-seats as GoTo’s possible sweet spot. Do you think that implies a churn risk among a large portion of the existing customer base in the low end of the market? You said it seems that higher renewal pricing tends to lead to dissatisfied customers. How would you stratify the user base overall in terms of risk of customer churn?
15.
Has GoTo’s rebranding been accompanied by any consolidating of users on fewer platforms in the near term? Do you think the company’s been successful in keeping users who leave one solution by offering a replacement?
16.
GoTo has a lot of products despite substantial consolidation over the past few years. Do you think that suggests there are more potential cost savings as consolidation continues within the organisation?
17.
How much raw opportunity do you think exists in international markets? Can GoTo potentially win in any international markets without significant re-investment in capabilities or new investment in sales force, for example, and new regions?
18.
You described some natural attrition in GoTo’s workforce due to the take private. Could this attrition significantly impact the company’s ability to win net new logos within the GoTo product segment?
19.
Could you elaborate on the go-to-market strategy or sales approach for the Resolve product, given it seems to fall between the go-to-market channels, direct and indirect? Is that why you consider the freemium model to be the better option for that product segment?
20.
What can LastPass do besides password management and single sign-on? What other features or functionalities do you think the business – soon to stand alone – will lay onto that platform to better expand use cases and the market opportunity?
21.
GoTo announced plans in December 2021 to separate the LastPass business – we saw a big evaluation out of 1Password in this January’s series C. What might be the motivating factors behind the spin-off and what could this business mean when it hits the market overall? What could it mean comparatively to 1Password, Dashlane or other competitors, to get a better sense of the potential opportunity size?
22.
The UCaaS portion seems to be one of GoTo’s best-performing businesses in the overall company. What strategic buyer would make sense for that business segment? Would that be the best path forward? Do you think it would be attractive to a strategic investor or any other type of acquirer?
23.
Do you think there would be any key risks in terms of separating or decoupling Connect and Resolve? Should a strategic acquirer look to acquire just the UCaaS business segments?
24.
It seems that LastPass has been trying to make headway in the enterprise space. How do you think enterprise customers and the respective decision-makers are thinking about those products? Does LastPass need to upgrade or augment its product portfolio to compete at the enterprise level?
25.
What is your outlook for GoTo Resolve’s performance? If the business becomes a standalone entity in the future, what do you think the future value proposition is? Do you think it wouldn’t be considered as an acquisition target? What could be the likely outcome?
26.
What are your thoughts around the LastPass data breach or security incident in August 2022? Could it have a significant impact on the business or competitive dynamics? Is that a unique problem to LastPass or are peers plagued by the same risk?
27.
What do you make of GoTo’s management change and appointment of a new CEO announced in August 2022? Are you confident in the new management team that’s coming in? How do you think this might change things within the business?
28.
It seems the remote support and access portion will continue to be in focus, although we’ve seen some softening – revenues in remote support and access as a sector started to decline again following some modest growth during coronavirus. What do you think the GoTo Resolve product could achieve? Can that segment regain growth overall? What is your outlook for the category?
29.
Is there anything to reiterate or highlight about GoTo and its various businesses?
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