Slide 1: Fiscal Year 2022 Q4 Earnings
Add new image MAY 5, 2022 FISCAL YEAR 2022 Q4 EARNINGS Copyright © 2022 NortonLifeLock Inc. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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 similar expre
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 2022 Total Users Direct Customers ~80M 23.5M+ Copyright © 2022 NortonLifeLock Inc. All rights reserved. Copyright © 2022 NortonLifeLock Inc. All rights reserved. 3
Slide 4: Q4 Non-GAAP Business Highlights
Q4 Non-GAAP Business Highlights • Bookings and Revenue growth, up 6% Y/Y and 8% Y/Y in CC, respectively • Operational efficiencies increased profitability and EPS, up 15% Y/Y • 10th consecutive quarter of growing direct customer count: +123K Q/Q, +576K Y/Y Bookings Revenue Op. Margin EPS +4% Y/Y in
Slide 5: FY22 Year In Review
FY22 Year In Review Successful first year progress towards long-term objectives Revenue $2.8B, +10% EPS $1.75, +22% Op Margin 53%, +3 pts FCF $968M, +38% 900K+ 14M+ Net New Customers Norton 360 (600K Direct + Indirect*) Members *AppStore & Employee Benefits only 10+ 16% 23% New Products & Internatio
Slide 6: What's New
What’s New Copyright © 2022 NortonLifeLock Inc. All rights reserved.
Slide 7: Norton Introduces Social Media Monitoring
Norton Introduces Social Media Monitoring New feature helps protect against social media account takeovers and cyberbullying Social media monitoring* keeps a pulse on customers’ social media accounts, notifying them of suspected account compromise or potentially risks links in their account feeds. F
Slide 8: Norton Identity Advisor Plus U.K. Launch
Norton Identity Advisor Plus U.K. Launch Robust identity monitoring launched in the U.K. to help consumers resolve their identity theft issues. Norton Identity Advisor Plus comes with an easy-to-use dashboard to register personal information for monitoring, features include dedicated Identity Restor
Slide 9: Avira Identity Assistant Germany Launch
Avira Identity Assistant Germany Launch Restoration support launched in Germany to address a major concern for German consumers - becoming a victim of identity theft. Avira Identity Assistant provides dedicated Identity Restoration Specialists to guide users through the process of restoring their id
Slide 10: Financial Results
Financial Results Copyright © 2022 NortonLifeLock Inc. All rights reserved.
Slide 11: Q4 Results Complete a Strong Fiscal Year 2022
Q4 Results Complete a Strong Fiscal Year 2022 Q4 Summary $717M As As Non-GAAP P&L Q4 Dollars in millions, except per share amounts FY22 Reported FY22 Reported REVENUE Y/Y Y/Y Revenue $717 6% $2,807 10% Up 6% Y/Y in USD & up 8% in CC Gross Profit 624 6% 2,440 10% Diversified and broad-based growth Gr
Slide 12: 10th Consecutive Quarter of Net Customer Adds
10th Consecutive Quarter of Consumer Metrics Net Customer Adds Dollars in millions, except ARPU in dollars (Non-GAAP) Q4 FY21 Q3 FY22 Q4 FY22 Growth Y/Y Growth Q/Q Revenue $677 $704 $717 6% 2% Direct Customer Count Qtr-ending customer count, millions Q/Q +123K Direct Customer Revenue $602 $622 $627
Slide 13: Margin Expansion Reflective of Operational Cost Efficiencies
Margin Expansion Reflective of Operational Cost Efficiencies Trended Operating Margin Non-GAAP 54.5% OPERATING MARGIN Up 400 bps Y/Y 54.5% Q4 FY22 Driven by revenue growth and 52.2% 52.8% 50% record G&A efficiencies 50.2% 51.0% 50.5% 51.2% 47.1% % of revenue: 87% Gross Margin 21% Sales & Marketing 8
Slide 14: Healthy Balance Sheet and Cash Flow Generation
Healthy Balance Sheet $1.9B CASH ON HAND and Cash Flow Generation Strong total liquidity position Key Balance Sheet, Q4 Q3 Q4 Cash Flow & Other Metrics Dollars in millions FY21 FY22 FY22 CURRENT LEVERAGE LEVELS Balance Sheet Gross debt leverage 2.5x Cash, Cash Equivalents and STI $951 $1,781 $1,891
Slide 15: Q1 Fiscal Year 2023 Non-GAAP Guidance
Q1 Fiscal Year 2023 Non-GAAP Guidance REVENUE EPS $705M - $715M $0.42 - $0.44 5% - 7% Y/Y (CC) Includes $0.03 from FX headwind YoY and $0.02 from incremental convert dilution 3 pts of FX headwind Note: All numbers presented are non-GAAP unless otherwise indicated. - Y/Y revenue growth in constant cu
Slide 16: Appendix
Appendix Copyright © 2022 NortonLifeLock Inc. All rights reserved.
Slide 17: Foreign Currency Update and Revenue Mix by Currency
Foreign Currency Update Revenue Mix by Currency Non-GAAP, FY22 Actuals Other 4% Q4 Q1 Q4 Apr Japanese Euro FY23 Yen FY21 FY22 FY22 8% U.S. Dollar Weighted Avg 1.20 1.21 1.12 1.08 €/$ End of Period 1.18 1.18 1.10 1.05 Euro Euro 18% Japanese Yen Apr Other Q4 Q1 Q4 Yen U.S. Dollar FY21 FY22 FY22 FY23 7
Slide 18: Trended Non-GAAP Quarterly Results
Trended Non-GAAP Quarterly Results Non-GAAP P&L Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (Continuing Operations) FY21 FY22 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Dollars in millions, except per share amounts Total Revenue $614 $626 $639 $677 $2,556 $691 $695 $704 $717 $2,807 Gross Profit 535 544 558 589 2,226 599 6
Slide 19: Reconciliation to Non-GAAP Gross Profit
Reconciliation to Non-GAAP Gross Profit GAAP to Non-GAAP Gross Profit Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Dollars in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 GAAP Results of Operation Gross profit (GAAP) $528 $536 $552 $573 $2,189 $584 $592 $597 $615 $2,388 Non-GAAP Gross Profit Adjustments Ne
Slide 20: Reconciliation to Non-GAAP Operating Income
Reconciliation to Non-GAAP Operating Income GAAP to Non-GAAP Operating Income Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Dollars in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 GAAP Results of Operation Operating income (GAAP) $120 $230 $280 $266 $896 $287 $287 $302 $129 $1,005 Total Non-GAAP gross profi
Slide 21: Reconciliation to Non-GAAP Net Income
Reconciliation to Non-GAAP Net Income GAAP to Non-GAAP Net Income Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Dollars in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 GAAP Results of Operation Net income (GAAP) $118 $64 $178 $194 $554 $181 $333 $202 $120 $836 Total Non-GAAP gross profit adjustment 7 8 6 16
Slide 22: Q4 GAAP to Non-GAAP Reconciliation
Q4 GAAP to Non-GAAP Reconciliation Bridge from GAAP to Non-GAAP EPS Q4 FY22 and Net Income from Cont. Ops Dollars in millions, except per share amounts EPS Net Income GAAP EPS / Net Income from Cont. Ops $0.20 $120 Contract liabilities fair value adjustment 0.00 1 Stock Based Compensation 0.03 19 Am
Slide 23: Trended Contract Liabilities, Bookings, and Reported Billings
Trended Contract Liabilities, Bookings, and Reported Billings Contract Liabilities, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bookings, and Reported Billings FY21 FY22 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Dollars in millions Contract Liabilities $1,058 $1,074 $1,135 $1,265 $1,265 $1,231 $1,213 $1,257 $1,306 $1,306
Slide 24: Trended Share Count
Trended Share Count Diluted Share Count Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Shares in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Basic Share Count Weighted Average 590 592 593 582 589 580 582 582 582 581 Dilutive Potentially Issuable Shares: From Employee Equity Awards 4 3 1 1 3 4 2 3 4 3 From C
Slide 25: Trended Stock Based Compensation
Trended Stock Based Compensation Stock-Based Compensation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Dollars in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Cost of revenues $- $1 $- $- $1 $- $1 $- $1 $2 Sales and marketing 4 5 5 4 18 5 3 5 6 19 Research and development 6 7 8 5 26 6 3 5 5 19 General and
Slide 26: Trended EBITDA (Non-GAAP)
Trended EBITDA (Non-GAAP) Reported EBITDA (Non-GAAP) (1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 Dollars in millions FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 Net income $118 $64 $178 $194 $ 554 $181 $333 $202 $120 $836 Adjustments: (Income) loss from discontinued operations 31 102 (5) 14 142 - - - - - Net
Slide 27: Reported EBITDA and Adjusted Debt Covenant EBITDA (Non-GAAP)
Reported EBITDA and Adjusted Debt Covenant EBITDA (Non-GAAP) Reported EBITDA and Adjusted Debt Covenant EBITDA (Non-GAAP) (1) LTM (3) Dollars in millions Net income $836 Adjustments: Net interest expense 126 Income tax expense (benefit) 206 Depreciation and amortization 140 EBITDA (Non-GAAP) $1,308
Slide 28: 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 29: Explanation of Non-GAAP Measures and Other Items
Explanation of Non-GAAP Measures and Other Items Bookings: Bookings are defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of bookings because it reflects customers' demand for our products and services and to assist reader
Slide 30: UK Takeover Code: Profit Forecast disclosures
UK Takeover Code: Profit Forecast disclosures UK Takeover Code On August 10, 2021, the boards of NortonLifeLock Inc. (“NortonLifeLock”) and Avast plc (“Avast”) announced that they had reached agreement on the terms of a recommended merger of Avast with NortonLifeLock, in the form of a recommended of
Slide 31: UK Takeover Code: Profit Forecast disclosures (Cont'd)
UK Takeover Code: Profit Forecast disclosures (Cont’d) Factors outside the influence or control of the NortonLifeLock Directors (Cont’d) • There will be no material adverse events that will have a significant impact on the timing and market acceptance of new product releases and upgrades by NortonLi
Slide 32: NortonLifeLock
SG NortonLifeLock”