Earlier this week, on July 26, we announced our results for Q2 and the upcoming merger of our GoTo business with LogMeIn. Both of these announcements are incredibly positive for Citrix and our shareholders.
Continued Momentum: Citrix Q2 Results
I am very encouraged by our performance this past quarter. We achieved revenue of $843 million, which represents year-over-year growth of 6 percent. This continued positive movement is a clear signal that our focus on execution of our strategy is resonating well with our customers, partners and the market.
This past quarter at our annual Synergy event, we debuted numerous product innovations and a stronger-than-ever partnership with Microsoft. Across the board, we have received resoundingly positive feedback from all constituencies. Our innovation and partnerships are clearly fueling the continued strength in our execution and position us as #1 or #2 in all market segments where we play.
Progressing in our transformation to Citrix Cloud, we saw ShareFile grow 30 percent year over year in new sales in Q2. And, our Citrix Service Provider business continues to grow at a rapid pace—37 percent year over year. We now clearly see the Cloud as a strong growth catalyst—a really positive sign as we continue to focus on the evolving Citrix Cloud strategy. In the coming months, we hope to share more insight into our exciting Cloud future and the roadmap.
Overall, this was a terrific quarter for our worldwide sales team—particularly our Americas team, which continues to fire on all cylinders. This was an incredible quarter, adding new customers to the Citrix family and solidifying our existing customer relationships. The number of large deals over $1M—61 in total—marked an increase of 33 percent, year over year. We saw strength in our targeted industry verticals—particularly financial services and healthcare—with nearly a third of our largest wins represented by healthcare organizations. We saw a significant number of customers moving from other networking and virtualization vendors to Citrix. In fact, we had nearly 800 combined competitive wins or replacements against these competitors.
A New Chapter for Citrix, GoTo and LogMeIn
Last November, when Citrix first announced plans to spin off our GoTo family of products, value creation for our shareholders was a key driver of our decision. As we said then, we believed that the spin-off would allow Citrix and the company established by the spin-off to enhance their respective competitive positions.
While we continue to believe that the GoTo business would thrive as an independent company, when presented with this opportunity, it became clear that a combination with LogMeIn was the best outcome for both the GoTo business and our shareholders. For Citrix, this transaction will allow us to further enhance our strategic focus and accelerate execution of our strategy to provide the world’s best integrated technology services for secure delivery of apps and data.
Aside from enhanced scale and a more diverse product portfolio, the synergy opportunities are very compelling. We have done considerable work on the transaction and believe the combined business will generate run rate cost synergies of more than $100 million within two years post-close. We have great confidence that the LogMeIn management team, overseen by the Operating Committee that is being formed by the newly constituted Board, will fully realize these benefits.
We believe that the combination with LogMeIn will create a stronger company positioned to drive even greater value for shareholders of both Citrix and LogMeIn.
This week’s announcements will allow Citrix to continue the momentum we’re seeing from greater focus. Our restructuring efforts and continued progress on creating a ‘new Citrix’ are producing strong results—results that are a testament to our renewed vision. I am more enthusiastic than ever, and I feel confident that we have the right strategy, the right plan and the focus to execute upon it.