LogMeIn, Inc. (NASDAQ:LOGM) recently partnered with Dolby Laboratories to support the release of GoToRoom video conferencing system that it unveiled this March.
By combining GoToRoom, backed by GoToMeeting software, with Dolby’s hardware solutions, the new collaboration is expected to turn huddle and conference rooms into high-end video enabled spaces.
Per LogMeIn, Dolby Voice solution will elevate the GoToRoom experience by delivering lifelike meetings inside or outside the room. Notably, GoToRoom not only uses Dolby Voice but also Dolby's video capabilities.
The company believes that through this joint effort, it will be able “to offer the most realistic in-room experience so that colleagues, customers and partners can feel like they are in the same space whether they are sitting across the table or across the globe.”
Thrust to UCC Business
LogMeIn is expanding its product portfolio by adding more solutions to its Unified Communications & Collaboration (UCC) suite, taking advantage of growing demand for all-in-one cloud-based communications and collaboration solutions to address the communication needs of employers and remote employees.
Per a report by ReportBuyer, the total video conferencing market is expected to see a CAGR of 12.1% from 2018 to 2023 for hitting the $13.82-billion mark by 2023. Moreover, Aragon Research predicts 65% of the conference rooms to be video-enabled by 2022.
LogMeIn’s UCC portfolio boasts around 28 million users per month and about 20 billion voice minutes a year. Consolidating this portfolio of solutions under the GoTo brand allows the company to facilitate meetings, rooms, voice and webinars to enhance the UCC users’ experience.
Moreover, the recent acquisition of Jive Communications is believed to have provided the missing links in the UCC space for LogMeIn. Jive Communications, which offers cloud-based phone systems and Unified Communications (UC) services, is one of the fastest growing companies in the UCaaS space. Therefore, apart from bolstering its existing communications and collaboration portfolio, the buyout is assisting LogMeIn to enter into the business telephony market.
The company believes that the addition of GoToConnect and GoToRoom products to its UCC portfolio will help improve the performance of UCC in the second half of the year and sequentially, thereafter. The UCC business dipped 2% on a year-over-year basis in the last reported quarter.
Zacks Rank & Stocks to Consider
LogMeIn currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are eGain Corporation (NASDAQ:EGAN) , Rosetta Stone (NYSE:RST) and j2 Global, Inc. (NASDAQ:JCOM) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for eGain, Rosetta Stone and j2 Global is currently projected at 30%, 12.5% and 8%, respectively.
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