Gen Digital Inc. · NASDAQ:GEN
Gen Digital — NortonLifeLock — Q4 FY2021 Earnings Presentation
23 slides from Gen Digital's earnings presentation, May 10, 2021
Slide 1: Fiscal 2021 Q4 Earnings
MAY 10, 2021 FISCAL 2021 Q4 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: 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 Q4 Total Users Direct Customers ~80M 23M 3 Copyright © 2021 NortonLifeLock Inc. All rights reserved. 3
Slide 4: Q4 Non-GAAP Business Highlights
Q4 Non-GAAP Business Highlights • Record revenue and record profit • Accelerated to double-digit topline growth • Another quarter of growing direct customer count, +2.0M Q/Q, +2.8M Y/Y Reported Billings Revenue Op. Margin EPS +17% Y/Y +11% Y/Y +900 bps Y/Y +54% Y/Y +9% CC $748M $677M 50.5% $0.40 41.
Slide 5: FY21 Non-GAAP Business Highlights
FY21 Non-GAAP Business Highlights • Delivered on accelerating topline growth, with EPS up 60% year-over-year • Returned to growing direct customer count, up 2.8M year-over-year • Increased pace of new product releases and acquired Avira - adding a freemium go-to-market channel Reported Billings Reve
Slide 6: What's New
What’s New Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 7: NortonLifeLock ID Navigator for VISA
NortonLifeLock ID Navigator for VISA Growing our partner business with expanded VISA relationship Customized B2B2C go-to-market strategy Featuring: • Dark web monitoring • Data breach notifications • Stolen wallet assist 7 Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 8: 2021 Norton Cyber Safety Insights Report
2021 Norton Cyber Safety Insights Report The Norton Cyber Safety Insights Report focuses on the impact of consumers’ online behaviors and their concerns about online security, privacy and identity. Key findings: • In the past 12 months, nearly 330 million people in 10 countries* experienced cybercri
Slide 9: Privacy Monitor Assistant offered as a standalone product
Privacy Monitor Assistant offered as a standalone product Helping consumers reclaim control of their personal information • Privacy Monitor Assistant helps automate and support consumers to fight back against data brokers sharing their personal information • Available as an add-on or standalone subs
Slide 10: NortonLifeLock Named to Fast Company's 2021 World's Most Innovative Companies
NortonLifeLock Named to Fast Company’s 2021 World’s Most Innovative Companies Ranked the 5th most innovative company in Security For protecting gamers from doxing and identity theft with Software they'll actually use “In June 2020, cybersecurity company NortonLifeLock rolled out Norton 360 for Gamer
Slide 11: Financial Results
Financial Results Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 12: Q4 Results Accelerated Growth
Q4 Results Accelerated Growth Non-GAAP P&L (Continuing Operations) Dollars in millions, except per share amounts Q4 FY20 Q3 FY21 Q4 FY21 As Reported Y/Y $677M REVENUE Up 11% Y/Y in USD, up 9% Y/Y in CC Consumer Revenue 610 639 677 11% Broad-based performance with IDA Revenue 4 - - n.m. double-digit
Slide 13: Scaling Direct Customers to 23M
Scaling Direct Customers to 23 M Consumer Metrics Q4 Q3 Q4 Dollars in millions, except ARPU in dollars Growth Growth Direct Customer Count (Non-GAAP) FY20 FY21 FY21 Y/Y Q/Q Ending customer count Revenue $610 $639 $677 11% 6% Q/Q +2.0M Direct Customer Revenue $549 $569 $602 10% 6% Y/Y +2.8M Average D
Slide 14: Achieved 50% operating margin with accelerated integration efforts
Achieved 50% operating margin with accelerated integration efforts Trended Operating Margin As reported, non-GAAP 50.5% Operating Margin Up 900 bps Y/Y 50.5% Q4 FY21 Driving core business at or above 50% 50% margin. Increased productivity Long-Term and accelerated synergies redeployed Op. Margin Tar
Slide 15: Healthy Balance Sheet With Strong Cash Flow
Healthy Balance Sheet With Strong Cash Flow $ 1B Cash on hand Strong total liquidity position Acquired Avira for $360M Sale of real estate assets $100M Key Balance Sheet, Q4 Q3 Q4 Cash Flow & Other Metrics FY20 FY21 FY21 Dollars in millions Current leverage levels Ba lance Sheet Gross debt leverage
Slide 16: Q1 FY22 Non-GAAP Guidance
Q1 FY22 Non-GAAP Guidance REVENUE EPS $680M - $690M $0.40 - $0.42 Approx. 10-12% growth Y/Y Assumes stable currency rates Q/Q Note: We are not providing GAAP EPS guidance because most non-GAAP adjustments pertain to events that have not yet occurred and would be unreasonably burdensome to forecast.
Slide 17: Appendix
Appendix Copyright © 2021 NortonLifeLock Inc. All rights reserved.
Slide 18: Trended Quarterly Results
Trended Quarterly Results Non-GAAP P&L Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Continuing Operations) FY20 FY21 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 Dollars in millions, except per share amounts Revenue 636 595 603 610 2,444 614 626 639 677 2,556 ID Analytics 14 13 15 4 46 - - - - - Total Revenue $650 $608 $618
Slide 19: Trended Contract Liabilities and Reported Billings
Trended Contract Liabilities and Reported Billings Contract Liabilities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 & Non-GAAP Reported Billings FY20 FY21 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 Dollars in millions Co ntract Liabilities $ 1,011 $ 1 ,016 $ 1 ,047 $ 1 ,076 $ 1 ,076 $ 1 ,058 $ 1 ,074 $ 1 ,135 $ 1 ,265 $ 1
Slide 20: Trended Share Count
Trended Share Count Diluted Share Count Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY20 FY21 Shares in millions FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 Bas ic Share Count Weighted Average 619 620 621 599 615 590 592 593 582 589 D ilutive Potentially Issuable Shares: From Employee Equity Awards 13 8 6 6 8 4 3 1 2 3 Fro
Slide 21: Q4 and FY21 GAAP to Non-GAAP Reconciliation
Q4 and FY21 GAAP to Non-GAAP Reconciliation Bridge from GAAP to Non-GAAP EPS Q4 FY21 FY21 and Net Income from Cont. Ops Dollars in millions, except per share amounts EPS Net Income EPS Net Income GAAP EPS / Net Income $0.33 $194 $0.92 $554 GAAP EPS / Net Income from Disc. Ops (0.02) (14) (0.24) (142
Slide 22: 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 23: NortonLifeLock
‘) NortonLifeLock”