Gen Digital (GEN) 9 Aug 192020 Q1 Earnings call transcript

Good day ladies and gentlemen. My name is Ian and I will be your conference operator today. At this time I’d like to welcome everyone to Symantec, Fiscal Quarter One 2020 Earnings Conference Call. [Operator Instructions]. Thank you.

turn over to Cynthia like now the to call Hiponia. I'd may begin. you Ma'am,

Right, webpage. Hiponia, of materials welcome our is Investor This results the first good everyone. afternoon earnings XXXX year Cynthia Security call discuss Symantec, Relations earnings Investor assets. I'm quarter posted fiscal our Symantec’s Relations and to Vice Enterprise pleased and to to divestiture slides you and to events our its at of President We

Symantec's Hill, CFO. Interim and on be today's Rick Speakers Executive webcast and are Vincent and President available the our This President Pilette, our via call CEO will website. on for Vice replay call

materials to unless investor relations posted metrics I'd everyone of references all website are for remind further otherwise to non-GAAP refer non-GAAP Please definitions metrics. financial supplemental on like stated. our the that the to

We this meaningful Please are on the release note, regarding financial and call supplemental measures more with discussed measures non-GAAP corresponding taken reconciled our GAAP together information to website. our referenced financial below. posted in measures for comparable GAAP financial reasons measures performance press believe provide non-GAAP materials operating when supplemental presentation of during their our

financial well Our forecasting those assessing uses non-GAAP results, as in management periods. operating as team our and planning when measures future

not facilitate We measures. financial Non-GAAP prior also our considered investor’s believe GAAP. in non-GAAP performance substitute understanding financial supplemental accordance as information our non-GAAP presented financial should comparisons to benefit and our of be measures for periods with are from and financial that measures

of may materially results based on uncertainties expectations, assumptions on involve and them. contains currently statements current statements speak the are from actual see that as date, and based expectations. and call such, we beliefs, differ as current risks forward-looking to our Today's only as conditions current Those

proposed does close. information. risks sale risks, to our the Please our a the transaction cautionary plans completion and following subject our of Security particular not press are that of including more of sales regarding the for the statements Enterprise and assets statements to our In variety refer release

a filings with the about also XXXX. on risk XX-K March ended annual XX, will particular discussion year report factors find Form our fiscal You detailed for SEC, in our the in and and our

now me to let over Rick. that, the turn call With

Pilette, and Thank Well, for with joined been it's there's Symantec When Cynthia me say in thank the May. very an all here you, today us needless at never Vincent Symantec have today. to I company. you inning was is joining dull of in have I moment fortunate who been and I having April I joined a joined since quite informed to early

During from that time technology, the deep for team both organization to we go-to-market the of products Consumer. management a dive the strategies a undertook Enterprise and and underlying as

opportunities identifying growth for team solid We programs, implemented enterprise and and the control and all consumer. QX spend cost while non-GAAP key Despite with initiatives both our guidance. EPS, operating noise, above margin, leadership our delivered revenue, and results changes and organizational cutting external

and up both quarter-over-quarter. were year-over-year We

with a capability shareholders. As employees, have be I'd executives superior group lucky and and who work results our talented both good, am rather have and than many the I say, to of delivering me to employees and customers lucky heard of

Symantec both our turn today. in and first value big to me What attracted clear Groups. to the let Now, to opportunity the news me a unlock Enterprise was Consumer

for sale this Enterprise in Security. achieved assets to Broadcom of by billion valuation Enterprise the $XX.X today, announcement obtaining for an attractive cash the Our Security

for quarter approximately in about and approximately cash our For of operating Think XX% billion of our of in that billion $XX.X which that an of XX% about XXXX. for income. operating $X.X XX% $X.X revenue, is income and approximately moment, first asset in billion revenue our produced a fiscal the

of Defense Cyber validates a quarter, existing Cyber dynamically last customers call service Defense our acquisition growing Integrated portfolio market. of Integrated and produced a which of insures in for platform, Strategy the market industry seamless and earnings Symantec’s our on Broadcom's innovative enterprise and stated leading are to Enterprise and products these solution. has leading As competitive strong solutions continued we development committed

Symantec’s and operational us grow in and powerful Combining enterprise excellence customers and in create will fixing reach to delight technology a model. business with Broadcom's invest go-to-market to force our market, our the without proven enable having

to of assets. our will The attractive four $XX.X elements but given Vincent transaction XX% we there that one, our in are we opportunity of generated a go-to-market we superior had strategy quarter discuss granted for I billion and this short valuation were are a a falling huge for for consistently key our the our to operating shareholders As that income growth, enterprise delivers understand. business comments, objective. and outcome for receiving employed,

in stranded Second, the it will long those detail. expense how us and will eliminate size remaining and company in this costs. Vincent cash of costs the to discuss take

the The term Cyber Safety as for Norton attractive long known Consumer third also the is model LifeLock. thing business,

finally as leading is the Management business billion believe an with in a solutions our fast and a And Board $XX.X to shareholders. valuation capital attractive return four, We that industry to growing commitment a market. Team for

billion transition believe reverse tax roughly month the standalone per the company, using in $XX a that my share. our as non-GAAP of $X.XX Consumers calculator generate a Safety Now, period We post this share. XX earnings put let in XX proceeds business per HP can perspective. annual $X.X equivalent Cyber me after Polish The is

a in that Symantec. you you a share the to $XX share Now for Assets number, of for we of to XX per a add it $XX share apply excess and getting are price Enterprise multiple get our

environment nice to in to We our garner multiple. low share Now would clearly a a than a price today. the a XXx interest company higher negative generating prior announcement this dividend to interest believe represents stable obviously, rate premium

majority in assets of highly more self-fund underutilized the cash this $X value detail, we eliminate. restructuring using agreement costs is a the can located company is in cost the in to which as we of real-estate the but will have these will will we $X.X billion billion address such which stranded once remaining determined approximately Now attractive the closed, believe costs, in location. Vincent have approximately

We transition approximately realize close more we this period of cost and a to pure-play all after consumer months believe will take the have unencumbered XX of safety which nimble from agreement this savings, the business. side will

to We generation will the from significant be continue and to cash growth able Norton use the LifeLock. within fund innovation operations

incidences that need one breach We have consumers affect just for millions people. are headlines of all of what example These is seen increasing driving of safety. tens cyber recent

the during strategy to job as role flu and potential will play a carriers consumer front proliferation season. cybercrime, B-to-B-to-C consumer It different corporations their where As the against on continue consumers, company carriers and lines work. major our try the the No business the they a will flu these battle defenses into in criminals cybercrime. virus cyber of infect is than to our against making harden them inoculate

growing Now large Norton with consumers a addresses LifeLock for and cyber market, safety. increasing need

around driven results our security, first built and enhanced solutions privacy in safety across our increasing technologies protection, home delivered are Cyber our delivered family integrated quarter, to identity the device value by we value Safety the solid and core members. all Our members. Consumer to

promotion and into to at and to will investment direct acquisition programs beginning member additions. customer invest year direct the continue increased drive in We of advertising fiscal XXXX

our the Our business. rate is grow approximately XX% retention and across partner programs continue to members

long the term. We believe in

annually. mid-single with earnings flow Safety margins model XX% approximately in Cyber growth business growth. revenue Consumer an can million This can above Our digits operating generate approximately of $X provide the yield of cash dividend grow and revenue and attractive free

optimized We’ve announced transaction We’ve that provided from the summarize. view Security and on achieve asset. delivers long let's So financial how cost for a with peer valuation we costs we that our the an our remaining term and take long remove it'll identified can structure. business attractive stranded Cyber our play business, Safety to Consumer model a Enterprise believe have them an

signals sent the transaction. Now after represents share on returning of outline of shareholders transaction, intend to the tax close after XXX% we let proceeds capital have shareholders. We $XX per the deliver to this approximately from dividend to the a which special me

repurchase annually in we the we of return to cash as to to $XX.XX continue the $X.X capital our committed shareholder to permit. are an additionally, billion And of transaction. We announced our raise program the after by increase XX% to company close per $X.XX share or quarterly dividend flows expect the and share of

built Security delivers win Tan, a key Broadcom’s process Hock our company assets planning Enterprise will customers for and will a software immediately. portfolio. company another Enterprise integration sale Consumer asset shareholders. has of be our technology and Enterprise Security leading our begin CEO the and President a in The Hock for Symantec and

growth operational on in to discipline closing this agreement in multiple as to quarter, Consumer drive initiatives revenue we on towards Safety forward, focus Cyber we’ll execute and the business. Looking work the continue December

the they shareholders team have to for of and hope see thank all and commitment like shown we patience and you of the have board you our to employees. I'd management our the the

Let Symantec the over one the more our provide give results, our to second who Vincent, ever quarter the me for higher details now outlook quarter has best agreement. and call turn will review made, on the

Thank you, Rick.

QX As and execute deliver to Rick mentioned, plan solid we demonstrated results. on capacity our our

growth delivered on we performance across profit revenue quarter business. and broad-based levels This our

$XX.X to ‘XX plan we Security cash, the our sale We way the Segment Enterprise operating about we and improve negotiated times and also tax. FY in a to productivity assets XXx the restructuring about business, developed of finally, simplify manage Enterprise after XX representing for million income, Broadcom

strong The this Enterprise as value be leader pure center while with transaction, emerge the Cyber will the enabling as discussion. No business doubt transformational play at play earnings Security, every repositioning consumer completion that Consumer will of in this our pure transaction power. a company of to a embedded unlock market Safety

QX. me comment first allow to However, on

we XXXX than X% billion, first quarter fiscal constant year-over-year this expected of $X.XXX In in up currency. better of year delivered revenue

that week quarter, in this we currency. grew year-over-year extra the constant Excluding X% revenue had

per generated quarter cash margin we up XX% profit driven quarter, an generated and cost share the operating $XXX growth of disciplines X Fully million management. by earnings from the flow year-over-year $X.XX, up For points year-over-year. revenue XX%, we operations. diluted In was of

up sales In the in our in the mix of extra as week. constant upfront year-over-year high-end Revenue yielding of guidance as revenue. Enterprise of due X% excluding expected the well revenue and $XXX Security million currency than revenue Segment above we million, was year-over-year delivered quarter, higher up to $XX ratable XX% higher our

million, Security year-over-year, built expectations up where X%. reported operating Security our months three XX% Enterprise we $XXX generated slightly margins QX communicated In into QX than better revenue ago. billings guidance of Our Enterprise

of Cyber segment generated revenue We of million, Consumer partner revenue. year-over-year higher subscription year-over-year week. in strength and revenue delivered our expected growth our In excluding in slightly Safety revenue better currency flat than X% we $XXX constant extra to and the due

or per over $X.XX for month, increased ARPU revenue extra user average normalized to per X% year-over-year QX that In week. up

down X% million $XX.X average Our was year-over-year. direct count custom

our in protect through also revenue the was quarter. millions We up of consumers X% and partners partner

in order in begin into QX market In growth will spend. we increasing as opportunities this marketing our long QX operating pure leader a The investments to we capture acquisition ahead marketing in look as term continue increase to space. direct investments play in customer

a positive we effect there from lag when customer funded costs. on subscriber on investments mind is expected and in programs by when infrastructure growth These see impact to launch. be Keep reductions acquisition in G&A the begin are to direct

and we Solution privacy in launched the and the integrated Internationally offers websites UK controls. the Norton the and VPN our that now Norton.com Germany include backup, secure QX website offerings in In LifeLock on memberships Integrated Canada, U.S.

ARPU. membership our to subscriptions to value subscribers and allow Adding us grow will

meaningful accounts ’XX and such, we meaningful back believe on custom ‘XX. of in way FY half both FY more As a see the the will ARPU we in impact and

a Finally, of ago, year XX% Consumer XX% margin points to Cyber was growth year-over-year. X Safety compared a operating

to margin to optimal investment intend of an around an with operating maintain Moving of growth we XX%. support level objectives, forward, our target

the the by own long-term have business, Enterprise its Security excited of assets. of full will our our of Cyber following the ownership Consumer sale completion incredibly I'm which of Safety prospects destiny

focus. sheet operations three Before I of across speed about The to company turn and say main productivity QX cost flow, want of the to execution, cash a and our structure. balance customer are changes words I few

This last our program at restructuring a of of $XXX we plan certain complexity developed a reduction the includes we and part over we manage couple million today announced way in X% of productivity and plan the business. As months, of closures the reducing sites. improving headcount aimed

which third already of the by majority these started to we the actions be today have done quarter. expect We

in In cash flow of million $XXX from compared QX activities million operating the generate we quarter $XXX ’XX. to

shares, repurchases As we majority expected, share million. executed term business. cash $XX to was worth million associated average of with $X.XXX CapEx to diluted quarter the ended the We enterprise million QX with investment. In of of leading $XXX billion QX and the weighted in short a $XXX count

year assets close our of our fiscal we the Due to turning we guidance to full third Enterprise are Security at announcement the expect which quarter, sales our time. not XXXX guidance. Now, to in providing this

For Enterprise Security guidance the reflect that QX, we increasing our caused sales the to by uncertainty of range of announcement the might asset. are be the

We Enterprise range for Safety. to are to million revenue in Security XXXX of midpoint forecasting million in a $X.XXX the At QX million $XXX comprised company. Consumer fiscal of flat $X.XXX our it guidance year billion million to approximately $XXX Cyber $XXX $XXX and of year-over-year total implies the billion

assuming tax opportunity fully operating of million in share to range forecasted to the $X.XX a actually, be constant in $X.XX EPS is $XXX the share share to of of per QX. a – We to $X.XX rate XX%, be forecasting and count and to are diluted margin yes $X.XX per range to XX% finally

and We sale expect quarter. Enterprise the minimal the and we’ll asset Security manage to are disruption confident smoothly ensure successfully through that

more go far. absorb, have of with have to a so news what allow shared Now announced me let me be into piece exciting the and the we bit lot a repetitive to there we is little already because today,

after dividend. asset agreed to a Broadcom estimated us $XX an We special $XX.X through billion for or share enable per billion to Enterprise our which sell Security return will $X.X to tax,

asset the within we $X.X plan approximately of Following XX expect to we transaction. to closing months the the eliminate stranded of billion which of costs, sales accomplish

without independently. can the Safety Consumer disrupting we Cyber given runs task We largely believe business complete that the

cost will it expect we $X of will by us part under-utilized such We stranded billion as the to those costs fund eliminate those approximately in in and large real-estate. cash assets that sales

as pure with emerge After Cyber of the and of long operating margin profit EPS annual digits, approximately Safety growth XX% term will Consumer business an approximately transition we of $X.XX. a mid-single play period potential a

basis flow million business and repeat Safety generate I will an a think Cyber period because have that Consumer to Rick free and the transition $XXX approximately on heard expect million annual was We the $XXX cash quoting of mistake. that after may a we I

me. caught you. he Yes, Thank

which million the shareholders expect annual generate majority to to of free Consumer approximately dividends We to regular Cyber of we period, mix the the and via flow after transition cash safety expect share $XXX buybacks. of return

or be the transaction. annually, increased this objective, to following dividend expect quarterly close that with $XX.XX Consistent per we share the our regular of will $X.XX

our by total of In addition, our a $X.X share billion. billion authorization Board of to Directors has $X.X buyback increased

incremental the when expect time repurchases be We the will proceeds share over sales been executed all after transaction, repatriated. close of have the

buyback EPS these Safety Cyber allocation, of has to the been to approach return for completion our expectations Cyber should into shareholders. together expectation with the growth factored Safety. We attractive disciplined believe this Accordingly, total and authorizations calculation deliver our Consumer capital Consumer of an for

debt expect we Following balance the transaction, consistent on with debt balance maintain today. sheet to a the approximately our

will we income. go-forward retain XXXX approximately business a the of As operating fiscal year XX%

leverage is Safety We business flexibility adjusting the fiscal gross represent financial X.Xx this of also returns Cyber costs. appropriately while and approximately Consumer predictable on shareholders, debt the to Consumer the believe elimination after of managing for of is generated and cash the would nature and stranded risk maintaining supported highly approach billion current by Our leveraged Safety. $X.X Cyber

consumer the which We focused unleashing a about potential are pure play will leader of excited market. the Consumer Safety, Cyber emerge in as very full

and Our revenue brand number Protection Norton one LifeLock strong recognition. Consumer products share Identity both have Security in the and

security, solutions consumers Cyber redefine identity protection tenants how Safety. the built family think about and core integrated and safety home Our around of privacy, have

an innovation ability will We shareholder and investment fund create enhance sales to model and total attractive financial the marketing returns. and further product expect that in

for shared again. sales them lot me a We cash, XX% once been in XXXX our fiscal of EPS We summarize results strong year let information the delivered There income. today, its assets QX growth so XXx billion Enterprise of of with has year-over-year. announced $XX.X operating about Security

over we underutilized of by to cash the XX sales billion assets We real-estate. expect funded have costs, which stranded billion and identified approximately eliminate at the as such months of $X $X.X of cost

We our XXXX are of fiscal retaining income. operating XX%

leader pure share Consumer market a the Cyber of $X.XX transition. with in Safety earnings refocusing play power per are after company approximately We as

expected $XX an dividend, dividend In billion, focusing and predictable share, shareholder over to an increase an authorization generates we per business expected short, expect focused are our income. we today’s are to return operating cash in $X.X special XX% total increase to regular about market a our in of time XX% in return. With at buyback on ownership our our we in of shareholders, capitalization while Monday's an same maximizing keeping that the

happy take Rick that, questions. are your I to with And and

first Fatima UBS. question Our of line from from Intrusions] is [Operator the Boolani

Good if the with to start the talking XX,XXX question. I for been out neighborhood. has in aggregate may. the headcount you couple thank a Symantec afternoon I and have at Maybe

I’m out this and business Enterprise the divestiture, the as Business. So between employee undertake wondering, consumer split now you Security how footprint divested will standalone

Absolutely! So employees we today. XX,XXX have

We started are our full do as report in may as we we aggregate our the to forward. plan towards in marching you company. XX,XXX We’ve reduce the more seen for go a improvement in headcount and have

When you million the believe about right remaining the talk period, should period. time target. the long the employee long We have about end and of that after of the we billion term $X we’ll revenue close transition is is that be X,XXX target. very $X.X per post-transition company to

very Understood! business. perspective the operating while about bip And specifically of measured for investment an rates you the maintaining sort margin consumer XX% from of talked code

in wanted particular go. So will those understand where to I better investments marketing

degrees historically we OEM think Just of been some with success had retail and arrangements. partnership you've there's varying about as

be. will investment exactly understand, So really better marketing I wanted to where the

’XX have been around XX%, me margin, XX% this along fiscal In sorry, running business let XX%. year segment that P&L. to ’XX, business, see consumer in very much year room at We’ve first the the our fiscal I’m line. you really we an explain

were to of have the normal the expense level time the turnaround over as process budgeting allocation free Marketing enterprise and been fund that's to and allocations. rationalized at trying the they corporation of up corporate business

at XX% a to to You the be QX we’ve customer operating believe at segment the count compared able running just the results if opportunity, the around to and want the mainly. is is posted, look you sub-investment consumer turn margin we there

our our marketing direct invest to and have low is believe here target online mid-single this to XX% one grow to without business marketing, changing and able points two in target digit of we term we in So of single margin be we can digit. our the long to-date

the time We point long also anything from and a providing the membership, is from privacy are to same from identity membership Rick. at to trying sales the membership sales to product if add functionality have you into they approach. want you more of moved strategy product customers licensed additional of upgrade to unless business, to And term security higher basic want of

No, perfect. it was

I of the membership, product recognize to articulated even are grow think is at small strategy with which is function the of part safety and greater home know to thing and within multiple greater this creating, in we're that improve revenue, the is there membership clearly and that value the knobs knobs business. to our of offerings you value, targeted also the of business just a Vincent

have this grow, that acquired we the decline is Now decision promotion, continued incremental the to in fact our in clearly and much about we other levels couple in put made investment about we and due had and ARUP, while in our determine spending and determine acquired promotion basically talk customers. to monitor direct optimum bring advertising overall to and okay, to membership the slow growth a directly the ago customers to in to is begin customer order had and has of advertising in our or knob a conscious $XX programs that have we increases by million, that years down don't

that directly the our of efficiently of members allows In we to them partners a the offer the addition allow necessarily therefore services partner and don't all basically acquired us and more get to to offer that us this with number we're also full range putting programs increase channels. will all of customer in to that

that the that started and those all. there's fiscal is strategy So the areas allowing multi-pronged in Its having to the us not place. business focus see to a business results on at put beginning in it solely of beginning year. and encumbered at We're

get With we Thank allow that that the to digit growth enterprise, mid-single performance of it the should you. back to desire. us

And our Ho of the Jonathan question line next Blair. is from from William

SEP a terms Endpoint Hi, R&D, good just there with from overlapping us wanted maybe might about maybe the side sell impacts know how of be business. any in what guess and I I the afternoon. Can you of separation overlapping to the start just of in you impacting Norton sense give if capabilities? to think that and terms

that, had But if place and case in control do extensive. offering small SEP, there's business conflict, know you obviously you you huge I the where in in a you the clear is Norton and consumer it. we endpoint, applications and focus more forward clearly require ideally because the business, ability enterprise for know control not enterprise is suited a want market are doesn't the there but well who is envision going individual as way. to large place it's goes Yeah, definition Obviously you have consumer Norton controlling a really know along our consumer it's the you require, also because endpoint delineation you into small And where our includes really really control don't and market endpoint. Antivirus a it, panel a is product it's of some and to overlap, that SEP

they consumer threat, into our which environment, are is environment, network. that, benign would cyber net anywhere therefore and SEP in consumers a, to their on business access viruses the said inadvertently Where thing that controlling threats can in more they potential the go corporation. classify at multiple subjected the that valuable to points the is, bring common in threat a more threat because corporations the having both I provide what are is provides intelligence intelligence. enterprise Now

data. that share We

all data continuing engines both former We sure best customers, or and growing our and to a with think best companies. customers the they the business Broadcom will ongoing sharing whether make our get I enterprise win-win companies that and coverage our and enterprise were dynamically, for be our is consumer

I'm they market great corporation equally going ideas excited people, excited more call, and the as and hardened, that talk, great it's I people, and enterprise in our understand to get for to work. as use there's consumers into opportunity. for got try place be said criminals to our I'm as more gets think corporation, and they've consumer their I said I back my to – inoculated and think the because are the to important consumers first going in the I into prior very And very

you So that Jonathan. thank much question very for

Excellent! the along teams balancing to about that there achieve up, of about with back prior maybe think we your management should And need know how Thank to guess a Is shareholders tried I little do think about you the goals, you value have follow that relative as a to you. differently? how then growth initiatives? thinking you return to just you be same do type some this bit and formula know

Well, the consistent of on business. is consumer focusing very steady all a first of beauty

the is cash predictability So lot flows, predictability the a of of predictability greater. the growth, of profitability

much, what going to to do define. what will So and much to going percentage percentage to to hone what dividends, be we're back do we easier our reinvest going buy ability on percentage are ultimately in we're

a of the greatly inhibit elephant the its don't top imagine, allocation that nature develop revenue, can capital a business enterprise strategy. business, end in refined orders ability overlaid on or of to come your cash affect well your of in huge episodic in at come when you the consequently As flows, quarter the the big can really consumer pretty with

shareholders We be deal capital are and for to investors. talk, clearly management the intent is the said give to we solid appropriate But what as optimized is will our you after is picture I capital allocation. today, with of not in my and announcing but will of to the our a committed return one as board closes, try

So answer that's thanks my Jonathan. and

Next question.

of Deutsche our Bank. from from And Karl line is next question the Keirstead

Thank absorbing that you, consumer a the we you EBITD the so multiple to are can its because X, not a share you Is costs, costs at that it or there be a it of that to that to stranded $X.X stranded to Broadcom calculating take enterprise enterprise getting seems way disagree? the allocate fair more the given at Vincent. of Thanks. might for stab of maybe piece, way billion look and me is

absolutely. No

Let think tell it, about you me about right. we how

on utilization the segment So a costs has the fairly the and distinct where allocated Segment fully separates business consumer have those segment. we P&L businesses, the Enterprise in report and based the to right

run You see a we today to objectives. on at term business QX, gross around consumer points long the plus it fully and depending minus margin is operating running in two target at XX% loaded, the XX% target, the have a one or

the plus cost services that is about eliminate not that, to $X.X operate functions business serving of cash us anything cost, Rich. unless of entire Broadcom that will corporate Enterprise will billion in and portion The to should It remaining business, business. to pieces. has months $X are the Enterprise serving corporate that’s independent the XX you of made over The business those cost. that costs fairly the continue Enterprise based asset The billion are the the that want on Business consumer stranded plus of the enterprise the two take, add

have restructure, infrastructure the to easy taking it platform, the what to they already the within business that to Yeah, add obviously you risk that working what exists, stream, would transition is ongoing that is the the while that your which your transaction and to allows was beauties whole you shut to an situation an you I can't is in – are one down running does that on the you the and have business for go-to-market the you problem revenue Symantec shutting that this team of is Broadcom business. our like down our Holdco, of of results know deliver

so during and this costs have this as consequence that use retained assets out Vincent is much the add we going can that and makes gains these vacated that easier something. stranded is cost. move part also to them have immediately in it over, we deal And offset deal we substantial, as that of to are this they carving them are embedded, this

we because add perception, We maybe want modeling set this question through the to there’s a stay that’ll asset do asset tag they XX think a to will is here them. our months. next go or extensively business went the your how just RGS, by Broadcom going missing think exercise. we that list, I Do assets and with over thing, those to is they to eliminate one

have that's transaction approach the than very level a we at level. the modeling more So at rigorous

so Okay, you thank much.

And question line is from of next Jefferies. John from our the DiFucci

Hey John.

for thanks question. my Hey, taking

about but you're going are certainly and you figure So get what breach, Equifax Symantec’s of the historically for selling single to look look to Rick declined and the are years that's term. digit the mid-single selling what how it saying I at business, LifeLock if accelerate the saying the growth do something for strong more cross long trying out time. digit you acquisition, a until I'm long low benefited products, the over about of which to like just growth consumer been to I trying but you sort from timing

this So something you is happen. to order make point foresee at different there this that in

model and a an States available that our question think outside ability the United one make absolutely and opportunity of Well, going to and goes to identity, which successful. LifeLock services the type it way, to protecting LifeLock of LifeLock model, new was about it that do of do. have a bump, acquisition, are equivalent products to there's is Equifax the We're grow was continues and within States things take be which an but that great acquisition, to outside United very by great I of the to we back of expand continues to no be individuals

in going even LifeLock. I to this see shows end Faber uses we're to hasn't it that there's this David think their LifeLock everybody who planet a coupon value not how in, we growth person identity for the an this somehow call morning hardly you you sees, compromised, have he even so because on heard to had highlighting on don't and though everyone a the call and

our of fact United expand where and In successful it's Vincent. outside different. enormously take it opportunity been the to States Go that's that’s of only we is ahead attributes the and see LifeLock what thing the

If offering and rate that direct which adding increasing to focusing couple is the flattish. we’re the and is are targeting and marketing; of I next the There now is years and we account also, the including to to Rick mentioned, X% X% more moved custom which second the are the can years. and this X% with the two the what is investing three on. areas has One retention from over business It over so grown then a membership right, currently XX%. ARPU, add, really functionalities one you're last we've lower

now we believe setting over I the our on target and be innovation so as were other environments, we but to if at a very the number at ambitious. we think the sales. GDP prudent but growth, will is operational more, with constructively type singly not the consumer, ago. do looked deliver focus can discipline, I that we years and the potential have the I we’ll it's around growth, of do on and goal Those all of and in focused investing couple XX% plus IODs are

just you, It’s thank quick actually a for and follow-up. Okay, if Rick. I could

your I know is Interim believe CEO. still title Rick; You

transition helpful. obviously Should to been on whole don’t any active know, you've if to come in be have this You've onboard. or you with comments partnership here very we be orchestrate will since continue I expecting Vincent that you

Yeah, also better and the pitcher And than a not consumer we to not internal big have team could is inning the inning partner you reality know order got we proud a be said in enjoy I’m had as opportunity we've management the last to him, job relieve three quarter working and release the and going I clearly a run candidates and are our a in big and entire involvement I my now external taking in could in of we call, business. a the flaw, I announced press and one more Vincent. close between release, both that personal as active with but but is I

see so believes and here do we've little and could to be way, major management it love going and any clearly but pitcher than just bit ongoing this, love here. opportunity I Vincent love longer, shape in a drive really a enormously a – the as the Vincent is It’s I I'm I I again, better relief investors a a and I have the RemainCo partner that, products, be a do. believe great freed team the pitcher. the what not the player or form has successful. not great still to up people, a all hope and I'll am the relief to structure for be personal, mission whole done I company, permanent

I because read about knew to can I CEO that, if Interim a reports. and investors always And worry I've add few

from solid of driven of needs lot we team a very and driving pizzas, of experience have has a Management weekends, They independently our We is who have lot very all to two assets transaction think team been as but Enterprise years. today. very too the be what this the business that, and management focus spent I exposed haven't months. also much to that, over capable, over of the we lot build really on a strong a because And strong, the next a separating last XX team consumer investors Consumer in

Morgan Stanley. from the from Weiss And Keith our of next line is question

Enterprise got fabulous those guys you for in really you for so assets, Thank monetizing price a mean and questions the congratulations. Excellent! I the great that taking guys for shareholders. job business

you. Thank

questions. I more like just of detailed couple A guess

that like them? the you two? have technology? the to ilk end to are in that technology the out degree so share of and like of of consumer or Engine you kind the from terms is Do back anything In Broadcom point what sort license to AV Enterprise between there share business, of you And for send the getting data the consumer the by way, Broadcom of shared other are paid terms the then sort going data, - technologies of common between

to So, of people this and I the Thompson. turn who in expert transaction the to this irreplaceable, going key am is Hugh one over involved

I Hi, great Enterprise threat of is think know benefit in the still and intelligence from from do to data that at one and we enjoy the of here, and is Symantec. get of also consumer telemetry. benefits you certainly of Hugh over consumer And diversity that exists yeah, the transaction that, the in company this benefit Broadcom will we in this remaining benefit the both I will believe CTO

taken. And well is your point

building time from history its engines that leading to code is endpoint in think technology over to that of really Symantec and and with at spent and that benefit a long from agreement. base I this property class, we've continue able in lot will its be intellectual

Yeah, why is licensing cross there [Cross Talk] agreement. a

cross license, both consumer on business, systems, is we us license agreement on Broadcom are the specific small There and customers. and the the is is business That of a focused okay each enterprise we own but our but patents. cross ways, simultaneously focused enterprise

are are with the ones aligned that are with closely most and the aligned the Ours Enterprise most business closely Consumer Broadcom's business.

are overlap those they are overlaps cases in shared. There and some

and have have of world companies, but have some still it's customers large at that that the interest Thanks. our both the that they best Enterprise shareholders we these and capability, have capabilities. some consumer capability, have We still in

terms then activities. you the And of of on it. side the consumer about marketing go-to-market, in the equation increased Got talked

back the is any heading potentially go for consideration those when distribution think a sort big the bidding you of exited of share those the I there like about market of of types HP you guys that and declining PC distribution thinking anything agreements basis. forward should precipitated or OEMs. of Is deal or business we that things of One in again with declining or really agreements consumer based into on kind ilk be lot

all long of and was way, driven have high not is more of to pull acquiring acquire PC's the to cost the the efficient with that. you decision the company a we customer to Okay, when spoke and quality out to within That pay a you consumer. relationship and they by the our depth too that customers financially is look an are Vincent a and so go into at for management that was the I would ways acquire OEM much hugely tell which to so way so they're that elected back market alternative cost PC growing

Going It's sell to understand financial can go you going all as I ways forward, to going it's be gee! at key $XX will it, our those driven look years, number. for $XX lens those by that a not told the bills big gives really real for new to everybody top everybody but the is reason else to $X. I've is to goal we a be all $XX big able can businesses. thing customers, we into acquire It anybody be that's we particular oh driven life. and and bills does sell want line for in with about The to

question And line from Wells Fargo. from of is the our next Phil Winslow

as referring you but you're good Yeah, the thanks pretty question basically relief, know taking place guys at and I for to keep too. my yourself

Your kind.

side. about that thing just the think We the count mid-single weighed guidance to about you that we on trend then I So question talked about you Obviously in how the numbers. you have talked but of ARPU, easing for the getting know on and near that could see digits and are When declined of again consumer metric your unit thinking unit single you think about back some growth, we’ve you on grow it the for you're that do a unit guess revenue count know what in the that. just now term gets digits count.

and other one which grow two your again are top one there is average per user ARPU, price the the is Okay, is user. variables to line;

that's know growth. in done acquired to positive the that the zero, in and advertising till And decline, even adding So turning get can of to we we directly you customers We fact slow order then optimum. and simultaneously don't get our customers get and have it we've customers. already just promotion selling to titrating just sort keep need data up to start to we're the to can we suggests which

can and products, give how on to forward we us going The has and how renewal it that's we generate have that's in process sell someone ability run customers we more beauty buying, products think variable. this know you of as the business, our we acquired are and a we the with who an of our basically more high as customers going that really we're and they to value, likelihood know of contact more of the know renewal, that's we individual such and directly every gives

But partners give can the are value users effectively want value, realistically, get our decline up. going is acquisition we're as customer and partnership know actual able right I don't can't so But have, our same sell part with to we more, through now do sure we we sell we of more be you be has also our make our slowed they up; our that to said, more and dramatically, working customers to other the so those to all value. ARPU

of doing And future now up. than cash we to on what to its other that’s have very of and look have P&L management very, or this, present simple that we're mixed it won't business at we won't flows based the fund and any resources It's this we can we value allocate have be net business get and by capable.

is tag, want what's tell one a less have that have there way, Vincent to I not talks believe of transferring that quality we business this know can pull to down and unless into you it's we you, that here, this the man sale remaining we off of quarter. asset people no asset than call know this on about me an you thing And and out one a what's detail The the show, business. when exactly in

more include business, reduce what count, this business, within transferring is be out also we and objective been not I work instrumental could deal head happen. am, people this that these in making who I to people of the have have with we with proud will people. which From unfortunate the the this ongoing business what what of for to know is our part

my So view. that's

that. second I

new Symantec, the the whatsoever. have And of These people people okay, years, here. to at no been in we’re who for are many party change same them

the business. So consumer bullish on I'm very

the is Credit line from of from And Suisse. our Zelnick next Brad question

new of so the Thanks congrats even much getting to hang all like the quickly. the and you're Rick though you're it pretty news, on party, Fantastic! and it seems

you asked, what seasonality your on look the a back consumer looks if and quarter range the was would half My then year guidance of have year, and it into quarter consumer of question I of guiding been if it, original the normal already guidance. hadn't the like I pulled is variant some if results below you second first extrapolate but at your

LifeLock this share point, a view versus there units were be churn at those versus my units being plan, perhaps can some on original of are may but you your Norton is how to the much business So marketing spend, at question, from if great. co-mingled look just and ads if we I can your of behind at year that and look we would be share, on full your of deviation you being know any is this behind or gross color

Vincent. is this so Yeah,

transition. guided a knowing in going we we're So conservative into obviously major a way that

not the guiding full We’re year.

are from to sales into better investing plan, than continue we spend slightly and sales. marketing of actually point results to on the QX over on to to track transfer membership expected focus program Our

where returns later Obviously see just want to are. the the spends don't we and marketing investment, pour

precise go measure so gradually plan We are. very we a returns have to we We model. and there, that's where

to year and ramp started Yeah Brad, and We've advertising normally just time okay. this of the slow, is okay. promotion,

greatly also has with that We programs that our have earlier announced are partners, accelerated, okay.

a anything the zone. just transition The if to is – any of so us of obviously, half we're in the best yet customers. seen of in not year second a we less off have it's fall come have for quarter, and much We

You work on of that this company. amount gone can has within the imagine

we’ll talking be know the believe and investors out do about and news. good it's to business be of I we'll but You all nothing our

bottom, we you to I'd So Brad. a deliver give you to spreadsheet can say like know top from say; anything out all results. while tied make that’s you want Thanks to want them to spreadsheets

the I And ending end remarks. we over for ladies Q&A. seems like the are Vincent would it that the at gentlemen, Pilette turn call to to back of the and

for tell are a a our table a around first incredibly of you smooth news, good for today. enterprise company to joining news on for customers. Broadcom partner excited our the with side, shareholders, employees. this our of this Obviously Thank us business can to in you of process there lot the we the transfer has I for lot make very been

will Broadcom the consumer We consumer I happen whole that think a across become successfully. shared secondly, opportunity is to solely be And in making company partner team. to focused that on excitement a the

to forward we we look progress. and you, you updating make as Thank

very Thanks much.

your We and conference today's for Ladies thank call. does greatly conclude participation. gentlemen, you this

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