Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Symantec — Q1 FY2020 Earnings Presentation
12 slides from Gen Digital's earnings presentation, Aug 8, 2019
Slide 1: Q1 Fiscal Year 2020 Financial Results
Q1 Fiscal Year 2020 Financial Results August 8, 2019
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,” “pla
Slide 3: 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 4: A Solid Start to Fiscal Year 2020
A Solid Start to Fiscal Year 2020 Delivered Strong Non-GAAP Results: • Revenue of $1,251M, growth of 9% Y/Y in constant currency, supported by solid performance in both segments: Consumer Cyber Safety and Enterprise Security • Operating Margin of 30%, up 2 points Y/Y driven by revenue growth • EPS o
Slide 5: Q1FY20 Non-GAAP Results Above Guidance
Q1FY20 Non-GAAP Results Above Guidance Total Company Performance (Dollars in millions, except EPS) Q1FY20 Y/Y Change All Non-GAAP financials exceeded guidance: Revenue $1,251 9% • Revenue of $1,251M exceeded guidance of $1,175M to Gross Profit $1,045 7% $1,205M, and grew 9% Y/Y (in constant currency
Slide 6: Improving Productivity and Reducing Complexity
Improving Productivity and Reducing Complexity Total Cost of Revenues and Operating Expenses Q1FY20 results in line with expectations: (Non-GAAP, dollars in millions) Q1FY20 Y/Y Change • Cost of revenues up 11% Y/Y driven by cloud infrastructure investments and operating expenses up Cost of Revenues
Slide 7: Enterprise Security Performance
Enterprise Security Performance Enterprise Security Performance Enterprise Security demonstrated focused sales (Dollars in millions, unless otherwise indicated) execution despite management change: Q1FY20 Y/Y Change • Enterprise Security revenue of $615M above Reported Billings $497 10% guidance of
Slide 8: Enterprise Security
Enterprise Security Enterprise Revenue Disaggregated by Timing of Recognition (% of GAAP Enterprise Security Revenue) Q1FY20 Q4FY19 Q1FY19 • % of upfront revenue in Q1FY20 decreased Y/Y and Q/Q, impacted by the additional week in the Upfront Revenue 15% 19% 18% quarter Ratable Revenue 85% 81% 82% Re
Slide 9: Consumer Cyber Safety
Consumer Cyber Safety Consumer Cyber Safety Performance Healthy margins allow shift to higher marketing (Dollars in millions, except ARPU) investments to support FY20 Cyber Safety launches: Q1FY20 Y/Y Change (a) • Consumer Cyber Safety revenue of $636M above Revenue $636 7% guidance of $620M to $630
Slide 10: Norton and LifeLock: Integrated Solutions
Norton and LifeLock: Integrated Solutions US Bundled Offerings launched in the United States: • Since April 2019, both Norton.com and LifeLock.com U.S. websites now offer bundled offerings that offer greater value, reflected in higher prices for new and renewal customers UK Integrated Solutions laun
Slide 11: Balance Sheet & Cash Flow Statement
Balance Sheet & Cash Flow Statement Select Balance Sheet and Cash Flow Items • Ending Cash and Cash Equivalents balance of $1.7B (Dollars in millions) Q1FY20 Q4FY19 Q1FY19 • Contract liabilities balance of $2.9B, reduction Q/Q Balance Sheet due to seasonality of Billings and extra week of roll- Cash
Slide 12: Q2FY20 Non-GAAP Guidance
Q2FY20 Non-GAAP Guidance Non-GAAP Guidance (Dollars in millions, except EPS) • Due to the announcement of the sale of our Enterprise Security assets, we are not providing full Guidance Guidance Y/Y Change year 2020 guidance Revenue $1,155 - $1,205 (2%) - 2% Enterprise Security $565 - $600 (3%) - 3%