Gen Digital Inc. · NASDAQ:GEN
Gen Digital — NortonLifeLock — Q3 FY2021 Earnings Presentation
24 slides from Gen Digital's earnings presentation, Feb 4, 2021
Slide 1: Fiscal 2021 Q3 Earnings
FEBRUARY 4, 2021 FISCAL 2021 Q3 EARNINGS Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This supplemental information contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or s
Slide 3: Our vision is to protect and empower people to live their digital lives safely
Our vision is to protect and empower people to live their digital lives safely. Fiscal 2021 Q3 Total Customers Direct Customers 50M+ 21M Copyright © 2021 NortonLifeLock Inc. All rights reserved. reserved. 3
Slide 4: Q3 Non-GAAP Business Highlights
Q3 Non-GAAP Business Highlights • Delivered mid-to-high single digit growth in topline • Another quarter of growing customer count, +334K customers Q/Q, +876K customers Y/Y • Achieved 51% operating margin Reported Consumer Billings Revenue Op. Margin EPS +10% Y/Y +6% Y/Y +14.8 pts Y/Y +52% Y/Y +8% e
Slide 5: Achieved All Long-Term Commitments Ahead of Plan
Achieved All Long-Term Commitments Ahead of Plan What We Said Where We Stand Sustain or Revenue Growth of Mid-Single Digits Achieved accelerate Operating Margin of > 50% Achieved Free Cash Flow (annualized) of > $900M Achieved Grow faster Annual EPS at $1.50+ Achieved than revenue Note: All numbers
Slide 6: What's New
What’s New Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 7: Norton 360 Mobile App
Norton 360 Mobile App Comprehensive Cyber Safety to Android & iOS Devices One Easy-to-Use App The new Norton 360 app allows customers to access their device security, online privacy and identity features in a single, easy-to-use app. Available in the Google Play Store and Apple App Store. Norton 360
Slide 8: Japan Launch
Japan Launch Norton ID Advisor Powered by LifeLock Through Partner Sales (Retail, eTail, Service Providers) Norton ID Advisor Powered by LifeLock includes the unique combination of dedicated ID Restoration Specialists and Dark Web Monitoring. Our Japanese-speaking ID Restoration Specialists are on-h
Slide 9: Bringing Cyber Safety to Gamers
Bringing Cyber Safety to Gamers Global Rollout of Norton 360 for Gamers Now available in 39+ countries and growing Dark Web monitoring: over 60,000 gamer tag notifications sent to gamers to-date. Features Dark Web monitoring for gamer tags, secure VPN, and fewer product notifications. Game Booster T
Slide 10: Welcoming Avira to NortonLifeLock
Welcoming Avira to NortonLifeLock Deal closed in January 2021. Expected benefits include: About Avira • Strong alignment to our vision to reach more consumers globally • Freemium pioneer • Accelerates growth in Europe and emerging markets • 30 years security experience • Deep technology, engineering
Slide 11: Corporate Responsibility in the Spotlight
Corporate Responsibility in the Spotlight We’re recognized as a corporate leader by industry experts Forbes & JUST Capital’s JUST 100 Ranked #59 overall and #8 in the Software Industry. Our commitment to Corporate Responsibility is a critical anchor of our company vision and operating philosophy Dow
Slide 12: Financial Results
Financial Results Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 13: Q3 Results Delivered Growth Momentum
Q3 Results Delivered Growth Momentum $639M REVENUE Non-GAAP P&L As Q3 Q2 Q3 (Continuing Operations) Reported FY20 FY21 FY21 Dollars in millions, except per share amounts Y/ Y Up 6% Y/Y in USD, up 4% Y/Y in CC Consumer Revenue 603 626 639 6% IDA Revenue 15 - - n.m. Driven by broad-based strength Reve
Slide 14: Another Quarter of Growing Customer Count
Another Quarter of Consumer Metrics Q3 Q2 Q3 Growing Customer Count Dollars in millions, except ARPU in dollars Growth Growth (Non-GAAP) FY20 FY21 FY21 Y/Y Q/Q Revenue $603 $626 $639 6% 2% Direct Customer Count Q/Q +334K Ending customer count Direct Customer Revenue $542 $563 $569 5% 1% Y/Y +876K Av
Slide 15: Achieved Long-Term Target Operating Margin
Achieved Long-Term Target Operating Margin Trended Operating Margin As reported, non-GAAP 51% 51.0% Operating Margin Up 14.8 pts Y/Y 50% Disciplined investments in marketing Long-Term and R&D to drive sustainable growth Op. Margin Target Continued infrastructure efficiencies % of revenue: 87% Gross
Slide 16: Healthy Balance Sheet With Strong Cash Flow
Healthy Balance Sheet With Strong Cash Flow $1B+ Cash on hand Strong total liquidity position Current leverage levels Gross debt leverage 2.7x Net debt leverage 1.9x Key Balance Sheet, Q4 Q2 Q3 Cash Flow & Other Metrics FY20 FY21 FY21 $291M Dollars in millions Balance Sheet Free cash flow Operating
Slide 17: Q4 FY21 Non-GAAP Guidance
Q4 FY21 Non-GAAP Guidance Includes partial quarter from Avira, integration to achieve ~50% operating Revenue EPS margin within 6 months $655 - $665M $0.37 - $0.39 Assumes stable currency rates Q/Q and share count dilution from Q3 High-Single Digit Y/Y buyback Note: We are not providing GAAP EPS guid
Slide 18: Appendix
Appendix Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 19: Trended Quarterly Results
Trended Quarterly Results Non-GAAP P&L Q1 Q2 Q3 Q4 Q1 Q2 Q3 (Continuing Operations) FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 Dollars in millions, except per share amounts Revenue 636 595 603 610 2,444 614 626 639 ID Analytics 14 13 15 4 46 - - - Total Revenue $650 $608 $618 $614 $2,490 $614 $626 $639
Slide 20: Trended Contract Liabilities and Reported Billings
Trended Contract Liabilities and Reported Billings Non-GAAP Contract Liabilities We isolated FX impact on Q1 Q2 Q3 Q4 Q1 Q2 Q3 & Reported Billings FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 reported billings by revaluing Dollars in millions contract liabilities in USD at the Contract Liabilities $1,011
Slide 21: Trended Share Count
Trended Share Count Diluted Share Count Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY20 Shares in millions FY20 FY20 FY20 FY20 FY21 FY21 FY21 Basic Share Count Weighted Average 619 620 621 599 615 590 592 593 D ilutive Potentially Issuable Shares: From Employee Equity Awards 13 8 6 6 8 4 3 1 From Convertible Debt 10 16 2
Slide 22: Q3 GAAP to Non-GAAP Reconciliation
Q3 GAAP to Non-GAAP Reconciliation Bridge from GAAP to Non-GAAP EPS Q3 FY21 and Net Income from ContOps Dollars in millions, except per share amounts EPS Net Income GAAP EPS / Net Income $0.30 $178 GAAP EPS / Net Income from DiscOps 0.01 5 GAAP EPS / Net Income from ContOps $0.29 $173 Stock Based Co
Slide 23: Use of GAAP and Non-GAAP Financial Information
Use of GAAP and Non-GAAP Financial Information To assist our readers understand our past financial performance and our projected future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures.
Slide 24: NortonLifeLock
SG NortonLifeLock