Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Debt Investor Presentation (February 2025)
46 slides from Gen Digital's debt investor presentation, Feb 10, 2025
Slide 1: Lender Presentation February 10, 2025
Lender Presentation February 10, 2025 Copyright © 2025 Gen Digital Inc. All rights reserved. Special Notice Regarding Publicly Available Information THE COMPANY HAS REPRESENTED THAT THE INFORMATION CONTAINED IN THIS LENDER PRESENTATION IS EITHER PUBLICLY AVAILABLE OR DOES NOT CONSTITUTE MATERIAL NON
Slide 2: Disclosure / Disclaimer
Disclosure / Disclaimer SAFE HARBOR This presentation contains forward-looking statements, which are subject to safe harbors under the Exchange Act of 1934, as amended. Forward-looking statements include statements that represent our expectations or beliefs concerning future events, including, witho
Slide 3: Confidentiality notice
Copyright © 2025 Gen Digital Inc. All rights reserved. 3 This Lender Presentation (the "Lender Presentation") has been prepared solely for informational purposes from information supplied by or on behalf of Gen Digital Inc. (the "Company"), and is being furnished by Wells Fargo Securities, LLC (the
Slide 4: Information and The Arrangers
Copyright © 2025 Gen Digital Inc. All rights reserved. 4 Information The Evaluation Material may include certain forward looking statements and projections provided by the Company. Any such statements and projections reflect various estimates and assumptions by the Company concerning anticipated res
Slide 5: Executive Summary
Executive Summary Situation Overview Gen Digital Inc. (“Gen” or the “Company”) is looking to raise a $600 million Incremental Term Loan B (“Term Loan”) (collectively, the “Transaction”). The net proceeds from the Transaction will be utilized for General Corporate Purposes, which may include funding
Slide 6: Transaction Overview: Sources & Uses, Pro Forma Capitalization
Transaction Overview Sources & Uses Pro Forma Capitalization ($ in Millions) Sources Uses Incremental Term Loan B $600 Estimated Purchase Price of MoneyLion $1,000 Other Unsecured Indebtedness 1,100 Repay 5.000% Senior Notes due 2025 1,100 Interim Free Cash Flow 400 Total Sources $2,100 Total Uses $
Slide 7: Summary of Terms: $600 million Incremental Term Loan B
Summary of Terms: $600 million Incremental Term Loan B Borrower: Gen Digital Inc. (the “Borrower”) Security: First priority security interest in substantially all tangible and intangible personal property of the Borrower and each Guarantor (Same as existing) Facility: $600 million Incremental Term L
Slide 8: Transaction Timeline
Transaction Timeline Date Timeline February 10th Launch Incremental Term Loan B February 13th Lender Commitments due at Noon ET Thereafter Close and Fund Transaction Market Holiday Key Date February 2025 Sun Mon Tue Wed Thurs Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Slide 9: Gen Digital Overview
Gen Digital Overview Copyright © 2025 Gen Digital Inc. All rights reserved. 9 Copyright © 2025 Gen Digital Inc. All rights reserved.
Slide 10: Company Snapshot
Note: Revenue, operating margin, and EPS are presented as non-GAAP. Direct monthly ARPU reflects 12 months ended December 27, 2024; (1) Denotes Total Paid Customers as of 3/29/24 (2) Using Covenant Debt EBITDA (Non-GAAP) Company Snapshot ~$4B Total Bookings (LTM) +4% Cyber Safety Y/Y 65M+1 Total Pai
Slide 11: Powering Digital Freedom
Powering Digital Freedom 11 Copyright © 2025 Gen Digital Inc. All rights reserved. Mission We create innovative and easy-to-use technology solutions that help people grow, manage, and secure their digital and financial lives. Purpose
Slide 12: Shaping the NextGen product portfolio based on consumer needs
Shaping the NextGen product portfolio based on consumer needs Verify the people and information I interact with online 4 Give me control of my personal data 3 Keep my finances safe online 2 Protect my digital life from any security threats 1 Personalized risk detection & proactive recommendations Id
Slide 13: Global Leader in Consumer Cyber Safety
reedom Gen Global Leader in Consumer Cyber Safety 25+ Product Awards and Recognitions Record 12B+ Attacks blocked in FY24 80% Of attempts blocked were social engineering attacks Introduced Norton Genie The world’s leading AI-powered scam detection app downloads 2M to date Company Recognitions Listed
Slide 14: MoneyLion Acquisition
MoneyLion Acquisition Copyright © 2025 Gen Digital Inc. All rights reserved. 14 Copyright © 2025 Gen Digital Inc. All rights reserved.
Slide 15: MoneyLion acquisition strategic rationale
Expands into full lifecycle of credit and financial wellness offerings for consumers strategically accelerates Gen’s presence in financial wellness and expands our consumer portfolio Brings an AI recommendation engine, enhanced by Gen’s user base, that powers a scaled financial marketplace platform
Slide 16: Transaction Overview Financial Impact
Transaction Overview Financial Impact 16 Copyright © 2025 Gen Digital Inc. All rights reserved Transaction structure $82 / share (Cash) + $23 / share (CVR) Contingent Value Right (“CVR”) issuable at closing and payable in Gen shares (issuable based on an assumed share price of $30.48) if Gen 30 cons
Slide 17: MoneyLion Revenue & Growth, Financial Profile
Revenue & Growth $500M +23% Y/Y Adj. EBITDA Margin 17% Total Customers 18.7M Marketplace Inquiries (Q3) ~90M / quarter Financial Profile (1) LTM Q3 CY2024 Thefirstconsumer finance digital ecosystem & theultimate financial marketplace Personal Financial Management (PFM) Marketplace Products & Offers
Slide 18: Transaction Significantly Expands TAM to $50B+
Transaction Significantly Expands TAM to $50B+ 2020 Low-to-Mid Single Digit CAGR 2023 Mid-Single Digit CAGR 2025+ Mid-to-High Single Digit CAGR TAM expansion into Consumer Digital Finance and Financial Marketplace, growing high single to double digits (1) Expanded TAM of $30B+ includes: Personal fin
Slide 19: Gen's Expanding Consumer Portfolio
Gen's Expanding Consumer Portfolio Anti-Virus Backup Parental Control Utilities Anti-Scam VPN Privacy Monitor Anti-Track Private Browser Monitoring & Alerts ID Rest. & Legal Fraud Prevention Home Title Insurance Reputation Digital Vault Credit Builder Banking Services Marketplace Password Manager Cy
Slide 20: Key Credit Highlights
Key Credit Highlights Copyright © 2025 Gen Digital Inc. All rights reserved. 20 Copyright © 2025 Gen Digital Inc. All rights reserved.
Slide 21: Key Credit Highlights
Key Credit Highlights Leadership in Large and Under-penetrated Cyber Safety Market with Strong Brand Awareness Comprehensive and Expanding Product Portfolio Across Security, Identity, and Privacy Broad Global Customer Base with Significant Cross-Sell and Up-Sell Opportunities Demonstrated Success in
Slide 22: Cybercrimes keep growing; market still under-penetrated
Cybercrimes keep growing Financial impact of breaches is increasing Need for data verification and privacy is on the rise AI is accelerating cyber threats and safety needs Tailwinds Lack of consumer awareness or higher risk tolerance Dependence on legacy and embedded solutions Complexity of technolo
Slide 23: Scaled Footprint Enhances Opportunities
Scaled Footprint Enhances Opportunities Large, healthy and growing customer base Today #1 consumer Cyber Safety service & support team Balance of new and retained Diverse segments & geographies Strong satisfaction and loyalty Cross-sell/up-sell opportunities Scalable and engaged ~50M PAID CUSTOMERS
Slide 24: Strong Free Cash Flow
$6 $6 $20 $15 FY22 LTM Q3 FY25 $974 $757 $2,064 $2,146 FY22 LTM Q3 FY25 25 Strong Free Cash Flow CAGR: 30.1% from $974M in FY22 to $2.1M in LTM Q3 FY25 3-Year Average Free Cash Flow Conversion(2): 65.4% from FY22 – FY24 Limited Capital Expenditure Needs, with CapEx needs at 0.3% as a percentage of R
Slide 25: Management team
Copyright © 2025 Gen Digital Inc. All rights reserved. 20+ years of senior operating and financial experience in the technology sector Held positions at Logitech, Electronics-For-Imaging, and Hewlett-Packard M.S. Engineering, Université Catholique de Louvain M.B.A, Kellogg School of Management at No
Slide 26: FY25 Q3 Results
FY25 Q3 Results Copyright © 2025 Gen Digital Inc. All rights reserved. 27
Slide 27: Q3 Non-GAAP Business Highlights
22nd consecutive quarter of growth: Cyber Safety Bookings up 4% in constant currency (CC), Revenue up 4% Operating margin of 58.5% reflects strong core margins and disciplined growth investments 5th quarter of double-digit EPS growth, up 15%, driven by focused execution and balanced capital allocati
Slide 28: Non-GAAP P&L
Non-GAAP P&L ($mil), except per share amounts Q3 FY24 (1) Q2 FY25 Q3 FY25 Y/Y % USD Revenue $948 $974 $986 4% Y/Y % (CC) 2% 3% 4% -- Gross Profit 824 839 850 3% Gross Margin 86.9% 86.1% 86.2% (70) bps Operating Expenses 269 272 273 1% % of Revenue 28.4% 27.9% 27.7% (70) bps Operating Income $555 $56
Slide 29: Revenue by Direct, Partners and Legacy
Note: Amounts may not add due to rounding. During the first quarter of fiscal year 2025, Gen made an immaterial revis ion to FY24 financials. Please refer to Note 1 in the Q1 FY25 10-Q for more details. Subscriptions sold directly through E-Commerce and Mobile App Legacy revenue includes: EOL VPN (S
Slide 30: Key Balance Sheet, Cash Flow, & Other Metrics
Key Balance Sheet, Cash Flow, & Other Metrics ($M) Q3 FY24 Q2 FY25 Q3 FY25 Balance Sheet Cash and Cash Equivalents $490 $737 $883 Contract Liabilities (1) $1,819 $1,827 $1,849 Debt (Principal) $9,375 $8,628 $8,569 Cash Flow Cash Flow from Operations $315 $158 $326 Capital Expenditures $8 $2 $8 Free
Slide 31: Gen's Pro-Forma Financial Policy
Gen’s Pro-Forma Financial Policy Financial Position & Liquidity Robust liquidity ($2,383 million Actual at 12/27/2024) through cash on balance sheet and revolver availability Strong balance sheet mix supported by this Transaction as Gen addresses near-term maturities Prudent capital management, demo
Slide 32: Strengthening FY25 Non-GAAP Guidance
Note: All numbers presented are non-GAAP unless otherwise indicated Guidance in USD assumes average Jan 2025 foreign exchange rates. Assumes non-GAAP effective tax rate of ~22%. We are not providing GAAP EPS guidance because most non-GAAP adjustments pertain to events that have not yet occurred and
Slide 33: Appendix
Appendix 33 Copyright © 2025 Gen Digital Inc. All rights reserved.
Slide 34: Non-GAAP P&L
Non-GAAP P&L ($M), except per share amounts Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Direct Customer Revenues 829 834 834 844 3,341 850 860 869 Partner Revenues 97 95 99 105 396 101 102 105 TOTAL CYBER SAFETY REVENUE $926 $929 $933 $949 $3,737 $951 $962 $974 Legacy Revenues 17 16
Slide 35: GAAP to Non-GAAP Gross Profit
GAAP to Non-GAAP Gross Profit ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 GAAPResults of Operation Gross profit (GAAP) $764 $765 $766 $774 $3,069 $775 $780 $793 Non-GAAP Gross Profit Adjustments Cost of revenues Stock-based compensation 1 1 1 1 4 1 1 1 Amortization of intangibl
Slide 36: GAAP to Non-GAAP Operating Income
GAAP to Non-GAAP Operating Income ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 GAAPResults of Operation Operating income (GAAP) $359 $22 $332 $397 $1,110 $417 $402 $374 Total Non-GAAP gross profit adjustment 58 59 58 58 233 58 59 57 Non-GAAP Operating Expense Adjustments Stock-b
Slide 37: GAAP to Non-GAAP Net Income
GAAP to Non-GAAP Net Income ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 GAAPResults of Operation Net income(GAAP) $187 $147 $142 $131 $607 $181 $161 $159 Total Non-GAAP gross profit adjustment 58 59 58 58 233 58 59 57 Total Non-GAAP operating expense adjustment 125 465 165 111
Slide 38: GAAP to Non-GAAP Net Income Q3 FY25
GAAP to Non-GAAP Net Income (1) ($M), except per shareamounts Q3 FY25 Net Income GAAP Net Income $159 Stock based compensation 33 Amortization of intangible assets 99 Restructuring and other costs 2 Acquisition and integration costs 6 Litigation costs 21 Legal contract dispute cost 42 Other (2) 38 A
Slide 39: Unlevered Free Cash Flow Reconciliation
Unlevered Free Cash Flow Reconciliation ($M) Q3 FY25 Net Cash Flow from Operating Activities $326 Adjustments: Capital Expenditures (8) Free Cash Flow $318 Adjustments: Cash paid for interest expense, net of interest rate hedges $177 Unlevered Free Cash Flow $495 Copyright © 2025 Gen Digital Inc. Al
Slide 40: Revenue by Geo
Revenue by Geo ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 US 558 563 563 578 2,262 579 584 589 Rest of Americas 56 55 56 56 223 57 57 58 Americas 614 618 619 633 2,484 636 641 647 EMEA 226 227 230 233 916 233 233 240 APJ 103 100 99 98 400 96 100 99 Total Revenue $943 $945 $948
Slide 41: Reported EBITDA (Non-GAAP)
Reported EBITDA (Non-GAAP) (1) ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net income $187 $147 $142 $131 $607 $181 $161 $159 Adjustments: Net interest expense 164 167 160 153 644 145 143 135 Income tax expense (benefit) 14 (291) 36 81 (160) 95 97 49 Depreciation and amortizati
Slide 42: Stock Based Compensation
Stock Based Compensation ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Cost of revenues $1 $1 $1 $1 $4 $1 $1 $1 Sales and marketing 9 10 10 7 36 9 9 9 Research and development 11 10 9 9 39 9 9 9 General and administrative 16 13 15 14 58 12 14 14 Restructuring and other costs - 1
Slide 43: Debt Covenant EBITDA (Non-GAAP)
Debt Covenant EBITDA (Non-GAAP) (1) ($M) LTM (3) Net income $632 Adjustments: Net interest expense 576 Income tax expense (benefit) 322 Depreciation and amortization 427 EBITDA (Non-GAAP) $1,957 Adjustments to EBITDA: Stock-based compensation 128 Restructuring and other costs 25 Acquisition and inte
Slide 44: Non-GAAP measures notes
We use non-GAAP measures of operating margin, operating income, net income, results of operations, and earnings per share, which are adjusted from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics of revenues, constant currency revenues, EBITD
Slide 45: Definitions of bookings and direct customer count
Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the ope rational metric of bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our performan ce in future period
Slide 46: Thank You
Thank You Copyright © 2025 Gen Digital Inc. All rights reserved. 46
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