Gen Digital (GEN) 5 Aug 222023 Q1 Earnings call transcript

Good afternoon, everyone. Thank you for standing by. My name is Matt and I will be your conference operator today. I would like to welcome everyone to the NortonLifeLock Fiscal 2023 First Quarter Earnings Call. Today's call is being recorded and all lines have been place on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After would opening pass At for I like Ms. this time to remarks, to over the call of Head Relations. Lai, Mary Investor Miss, begin. you may

Fiscal everyone. Thank and Welcome XXXX first to you, quarter hello, the Matt, call. earnings NortonLifeLock

QX review and CFO. today Vincent Derse, are our me Pilette, results Joining to CEO; Natalie

call metrics during website, performance results be business, based and like may risks slides Today's beliefs, non-GAAP our as from are on involve and release. financial I'd regarding statements our there considered rates As speak growth the A may unless of call impact statements current and at actual of year-over-year, the contains and with release, a and is GAAP business, are will reminder, including of our statements to IR references all posted along this that financial Those press remind industry, that on this everyone that are reconciliation to only forward-looking replay our be investor.nortonlifelock.com. a on the call, the our IR to all stated. date. uncertainties operations, is on our such statements included and otherwise available in which non-GAAP measures to differ expectations and expectations. materially cause assumptions current website current press

and I over release For Vincent? X, for more SEC information, our on risk our And the XXXX. will particular, the and press in fiscal turn call statement to factors filings the the our please April Form the in CEO. refer annual in ended our with now, to cautionary XX-K report

Avast. in lengthy and to are provisional pleased from have UK, for of our Thank Competition call. you, to we welcome, Mary, After the Authority acquisition the a approval the received very Markets and process everyone,

everyone. empowerment has bringing two and bringing protection off and a start hard process together excited Our to companies digitalized purpose mission are and the of to the we paid with work of great

As and have a values shared similar vision strength. I companies two common share have complementary both before, our and

core together, delivering we get and can about to of more consumers premium and adjacent have to benefits a capabilities, supported as live identity, life we on AI that, empowering people protecting trust-based Advanced consumers, digital small will around the globally, diversification, combined we of bring than by started complementary NortonLifeLock's in Together, presence will to users strength their serve broad On $X.X As to million stakeholders. sell privacy the serve soon mission will strength creates other us for billion and in in solutions. and products XXX top multiple our our merger new towards employees shareholders increase company businesses. safely. also X,XXX security all dedicated revenue our and our portfolio beyond of and channels very and product in geographic broaden the

than We world will continue a culture to to with the bring the more different world, this a to and security, digital identity that without our consumers place complementary in the have while is started and the opportunity to portfolio innovation. around And empower of when over millions journey product their we sole thing year world enjoy our compromising want to ago, and everyone. is of for is and one mission advantages people sure a of privacy

supported potential, balance enhanced strong sheet. synergies, Our growth by combined increased long-term resilient substantially cash financial profile a is scale, generation, free through flow

capacity further to significant marketing value partnerships companies, last to us to innovation, for of creation will reported our will on revenue accelerate both And million cost the our for combinations $XXX we transformation. will financials based annual mentioned, give and combined to unlock and $X.X I approximately gross billion. As over scale the our reinvest synergies

We free annual also pre-synergies, is leverage have combination march operating is blended billion in created our to in Avast be of delivering of operating that combined its more is details XX% and look of we restarting long-term able enabler, and margin pre-synergies. forward transaction EPS. creation we reaching towards to another value $X on activities. the flow, as with will share closed, the will objective Once cash financial approximately The business integration the approximately model. planning We $X.X

Based terms be in approval, closing the date expected quickly today, closely will of we September we in of October. So its possible expected anticipate early on in merger, currently be and sometimes early next, we final between work mid-September what's continue know to to to is after publishes subject as which as to change. the is the what CMA

results. that, words a with say let few So QX me on our

observed deliver our that tracked While we X% with constant fiscal of X%. to for QX and bookings challenging of our pressure the levers, proud and impacting a in bookings as sentiment, consumer spend, operating XXth growth revenue which projection, year inflationary up are in we view with discretionary The weaker quarter mid-single-digit currency quarter's growth, up environment. bookings consecutive performance stability a demonstration in line business our provide I the XXXX, consumer

website macro quarter, down up our saw currency, year level sequentially. impact new of but was X% environment, focus has our million, Total on in traffic, COVID-led we In conversion offset another at XXX,XXX customer double-digit been on the ago. count very healthy customer revenue metrics. stable Throughout the strong a XXX,XXX top by growth performance rates. of global solid this in constant direct-to-consumer headwinds of direct set balanced Our slightly grew over across quarter year-over-year XX.X a the

our ARPU and to launch new to, have stable to ability highlight it's these drive upsell, cross-sell at retention we we opportunity as to rates, that While limited headwinds healthy, customer count quarter base grow stable with this to our continue is products. the overall customer important pace aspire

year slightly unit. renewal first the in so-called years. retention Our through we retention very And initiatives, to make our par over at COVID rates. cohorts rates with rate strong at joined remained who during period, Customer in continue operational progress have XX% prior

million and Since at we by improved use. efforts reach during are point by to approximately retention to became Our almost led customers download consumer over dedicated our time to rate, have XX grown to a we a customer base happier safety customers, company, the million and three supported have easier same cyber easier direct the by products, our period. that

on, We flat this mobile for bookings year-over-year customers constant added delivering and of which of healthy in in Another XXXX. had in approximately are bookings channels, in activities benefit XXX,XXX customers double-digit QX, to we fiscal business. we more both first growth value channels in very set delivered of in including quarter we channels, year sequentially. is up focused and growth stayed employee indirect this quarter more set our straight double-digit partner revenue XX% the currency, seventh In

As which we model, we we diversified continued accelerate global that. continue allow to we forward to that year to with company towards of portfolio, work Avast, globe. a and have would more richer strategy go-to-market A by our expanding build to the and ago, us transform building combining will look our privacy stated identity across a more and solutions we product

recent We the made on from in In QX, good fiscal a good of Identity start are have -- off to our inroads year the we side. for launch QX, Norton product the example New Australia, yet UK efforts, the our expansion capabilities. availability we've of another identity bolstering Advisor expanded and our to market Plus, Zealand This Germany. international and product's the for is

reviews product to important continue positive technology from reviewers. also We earn

one awarded last Identity Theft Just were PC for number Protection Magazine we software, XXXX. month,

consumers guides portfolio awarded making quality in and safety map, LifeLock product engage is is the It is a XXX our challenges an continuously will efforts. been development one Norton with comprehensive and providing the protection on was our safe. overall with We Cyber and protection opportunity above consumers' this we road and in many especially fueled core recognized focus big simpler have by have best lives. Specifically activities to value end-to-end digital the our still in provide it to seamless product, our our just industry. identity to in and beyond be assess innovation while us all, risk product security. online, products. of customer experience, us more to overall times, brings and expand growing market, and prioritize continue about the and areas for know for we product which we increase But to evolving stay what This

together, with consumer are we environment to pursue transformation let comes ahead that objective, merger us. long-term Natalie cyber that while me call our well positioned in Avast of safety being to of in our with to results any drive the detail. more And and the With resilient the cover turn financially

hello Thank you, Vincent everyone. and

thrilled the Vincent's start to Avast I rates, to year-over-year QX will like non-GAAP to outcome our and followed unless our acquisition. merger with update excitement focus positive For forward year discussion the XXXX. Avast. QX for growth by and I'd look with We're and echo financials fiscal on closing I outlook about performance have stated. will this otherwise today's details

company will achieve We pre-integration combined as planning efforts million restart and the synergies. our immediately work gross scale prepare cost annual to the of we $XXX to

give existing facility. Loan X% me will you done earlier and our to A $X.X B $X.X successfully of billion year. Loan billion this In Loan transaction package Term revolver. merger on billion with and is conjunction in our $X quick at billion revolving replace the $X.X Term total raised a facility Term Let This comprised financing A plus credit X.X% refresher which we the spreads of financing of

the merger rates long-term close. last on timing $X first year, of environment were our we is able become has in. deal rate acquisition to will more we the While about Once deal our we share announced still The the interest the and financing we good at funded changed will EPS model closed objective. lock feel information the since

XXXX the and QX our to start fiscal considering macroeconomic to on our Now environment. FX year a volatile pressures was QX results. good especially

is business Our resilient.

execute and with continue healthy is we base customer to Our discipline.

full against of year-over-year. has $XXX for against to currency macro a and currency will further and in currency and business USD in growth a revenue a is to remain volatility business the full both up remain the identity currency year both we yen third adoption. our our and solutions bookings we've in focused an We've driving on the parity rate weaker mid-single-digit towards exchange as in-line with year new X% and execution QX with rate seen on quarter today's reach XX-year saw constant the million been with last of currency euro geographic top reaching which continued line QX launched a X% last constant X% bookings currency year of growth. including Our projection QX We these we in in of grew XX% revenue increase constant at headwind our was $XX USD our US to in of headwind headwind euro X-point in these we compares quarter depreciating million, points anticipate translating near a up plan of yen. and objectives. several lows. long-term opportunities Despite straight growth. headwinds, and top dollar It headwinds Similar

high Our was expansion are straight growth of and efforts identity sixth our working QX our of in rate single-digit privacy products. as quarter

Our USD of direct constant currency X% impacted and revenue in grew X% FX by headwinds. points X in

XXXXXX count customers. approximately XX% unit and our customer customer other retention headwinds direct operating remained including as grew quarter-over-quarter continue we markets. key cohorts saw select QX key by to to improvements across our we Looking drive above Overall declined XXX,XXX but newer metrics. by approximately in incremental year-over-year, stable

monthly $X.XX. ARPU or revenue Our average user per was

ARPU indication successful sequentially, nearly $X.XX an efforts. expanded and $X.XX However, FX, adjusted cross-sell expanded year-over-year our of for

increasing existing on customers, base our very services. products a acquisitions and with resilient as have engagement focused customer we and remain We driving healthy as retaining customer well new new

and year-over-year up We quarter see driving traction partner and XX% partners constant marks to through growth our tenet our Partner scaling TELUS. of long-term in international expansion the Turning with strong efforts channel to areas. in XX% was in our go-to-market business. benefits our we channel USD consecutive double-digit continue a up employee in and revenue in key these invest seventh plan our partnerships expansion growth. will identity of like currency is key and Diversification growth

flat XX% same our Turning and time while at product to adding profitability, roughly gross more the expanding of to margin we year-on-year, in features achieved QX offerings.

points growth cost with quarter XX% the and up year-over-year. for revenue margin our operating our year-over-year XXX driven Our spend down by basis both was X% overall discipline

we fund As heard how me to and business say we you've are drive future with growth. before, intentional our our investments

innovation. sustainable of to quarter a R&D strive product long-term functions the continue with we than marketing for With Our and dollars balance invest channels. to With row. X% G&A disciplined and in on less be customer across growth. spend remain to second lean intentional portfolio in while, acquisition regards our new development targeting across and at the focusing With revenue we

structure based range. was cost the of compared all increasingly achieving EPS was million high-end twice remain at continue more challenging our to committed and year-over-year, $X.XX impact up with disciplined Diluted income of to quarter last grew operate EPS above $X.XX We in currency expansion EPS functional the across will guidance of currency $XXX headwinds and to areas driving of revenue be our X% We Adjusting the year. X% QX we of including this XX% than objective environment. for rate as up net long-term our year-over-year. $X. EPS for

Turning of XX approximately form to flow million $XX approximately a in $X.X QX quarterly our was balance buybacks flow to $XXX billion current to common flow in dividend share. and million buyback million remaining free or in was cash $X.XXX and paid we program. of repurchased regular nearly $XXX shareholders QX operating returned share shareholders. sheet, quarter, shares cash In back now $XXX the We We cash million. million per in the and million $XXX the have

Directors the business was senior from the as quarter. close dividend per of $XXX transaction net unsecured a quarterly for Board the settled matured XXnd our of August press shareholders million all I our be that paid XXth on leverage common financing earlier to cash in in QX XXXX as notes For $X.XXX discussed the of regular release. XXXX, of approved has described X.X in in Separate on September record of We share times June. debt cash the approximately

of cash due August the that cash in convertible flow in will note X% in settle senior settlement cash middle to our plan and fiscal QX. hit also We our

know all debt environment profile. we overall the changing we been and rapidly debt As continue assess to and has volatile our will leverage needs

flow liquidity and of through cash high confident generation levels our this are our manage we accordingly. strong environment ability in Given to

continued health dollar of larger Based strengthening But to even our the we the anticipate business want currency strong. remains underlying that U.S. quarter-to-date Now our headwind. to emphasize turning I on QX outlook. an of the

year-over-year in For million $XX $XXX QX mid-single-digit million. of points revenue growth translates non-GAAP which constant or and $XXX currency projected in headwind we four-plus to to range of the expect growth a FX of million reflects of approximately rate

of reflects in range $X.XX non-GAAP which expect to We EPS $X.XX be headwind of QX the to $X.XX per year-over-year. share

QX Our the XXXX. Avast early guidance closes deal October in assumes

digits when an merger be timing of annual constant this in on fiscal growth similar our currency. For XXXX we providing the year be continue close overall ranges of bookings mid-single transaction. the guidance not Considering to expect will close plan time. to at Avast financial to we in we details model the We provide more

As always you turn back questions, take the I time your now operator your to the Operator? to thank call for And will today.

with question Kalia [Operator Instructions] you. the of first Barclays. from The Saket is Thank line

Your line open. is now

Saket. Hey,

just two wondering we a on Hey, little feels market. questions of direct guys. was between you if CMA. shift touch Hey, It those business. a Natalie. on Vincent. I my routes just business for some Hey there's congrats dynamics to like from taking bit your and partner maybe could here the the Vincent before the between and Thanks about of news Avast, been talk

walk And you so And question what's direct maybe the decline the there through subs is, intentional? the -- can this us especially quarter? that is given sequential happening decline just in

Yes.

two there and/or mentioned we like. with and channels to about been solution is XX% -- I So have represents we in It combined to for a you many, as slightly believe our other to that business been consumers. partner go We've provide channels many quarters. overall know, now solution of that we providers to partner other channels. saying to our more definitely, opportunities investing the above

the it's mobile course, channel. Of

value. basically a direct not and competitors It But direct. moved access gets platform stores, have communicate it's and and app our through today the to definition, provide directly. goes in you, with and Some us channel that the consumers into billing our business them of to have direct because honest doesn't our of we to go on be

So, a a XXX sign. good is mobile which move of platform the to that few ago, quarters us we in crossed on good A has the up that mobile, shift very been seeing growing. sold you'll continue definitely see product channel towards And the Norton to be users. We're majority momentum.

the believe through and is supports cyber in goes the that. have We privacy payroll identity benefit. employee that It offer second direct There The protection the world, we LifeLock the employee to company full have device goes employers the too, mid-market. engagement with one go our protection their on we security. of the to platform more but that customers in to payment

continued marketing with both well our see We continue focus product the invest broker and penetrate to that. in as side the on you'll growth sales partnering as side. to channel And direct development the

the another other and provider those of then customers engaged direct set combine solutions have to partner full of So, other provide business are go we in a that with channels our package.

of Avira, acquisition for example, the was see along team, with customer if he's TELUS funnel along definitely you want, to ton And Canadians become to who continue of building new quarters the to few in Canada And expand. strong the has ago you'll opportunities. they're in his solutions the a bring up So, us Travis developing here a momentum. experience the like our cyber partnership environment, very with TELUS safety his team. of with CEO has chief, Witteveen, and

cohorts. across first said rate rates we the few by metrics we ago, points. retention sequential you'll on year to a few a direct very healthy. want the us strong that. Retention slight have would you and that. right decline and year see improve business on So, The are been We a The very direct in all have the business. continue I words you're invest say do to mentioned

than overall little last a by the basis more points. retention increased Over XX months, XX we've

downloaded, customer the being continued it's is the retention. it's on operational that being whether used, improve and how see is value so satisfaction And then demonstrated to overall product how the how initiatives, customers, you

know healthy traffic that on with set saw headwinds you quarter, we is on gap cyber So customers. want. rates pockets product we if a or was that but for It The disappointment, areas really And an lower invest, other to growth. needed macro There because here has we're in holding of focus continue if it's we for volatile volatile. level well, environment, the the long-term. Conversion website, of the were traffic pocket navigate traffic. that where that about global be area structural we we through related to provide or as want the still weaknesses, that will safety the of you

Got be it. new and do here very talk in helpful. That's about you managing to versus you. for it. that? maybe customer margin higher The Can profitability? How about think you continues you're Got Natalie, for balancing expected. than acquisition outperform investing really operating just how

up Yes. our Hi, XX% disciplined proud now year-over-year. question. Saket. basis margin XXX healthy commitment team's Thanks for we and with have operating of operate manner. for points That two to and in points to what the model quarters We're of that. a a combined Yes, business

acquisition overall our of growth about clear strategy. that. one. not tenet been We've New the key absolutely is a only it's But

have We to customer invest where not marketing. in. in comes balance it's continued costs and and We've growth our multiple drive help acquisition at that's all levers the growth to

hard approach We as channels. so when comes We're honestly, we well addition our been now we spent that. cool several we've we our choice and growth in and it committed marketing. talked direct that choice. to win is in more really, see and channels in in offerings. work where about and more sales even through to of investing more launched that really recognize really new and to But a investing to focus lot product. industry some time the focused partner we We've consumers can And need competitive to in on a that both You have what operate marketing

We continue diversify the to go-to-market channels.

-- service points XX as quarters We coming us to we ARPU XX%-plus both provides committed investment with think that our over last revenue of growth the allows operating stay unit X% that scale from as That proof really our our continue year-over-year and that of quarters me. of seen of acquisition offering. it XX the than less excuse where from we've us leverage combination healthy sustain possible both to quarter-over-quarter last being customer a G&A and combined for lot reinvestment. is I obviously lean to invest that's months two in and of retention And

confident the we have So combine have that and very, just for beyond and we'll both that to growth way -- above we've a And forward up through strike right balance profit stood as continue with excited that to we we'll navigate I now applied are the I'm think as we all additional we've very since don't disciplined important. approach about we Avast. balance to find that the NortonLifeLock. opportunities pick. we're

Avast's business deal you're But you've to about guess Got know think of a it. squeeze maybe makes you. with too talk we asking closed. without combination can side. study much of mean, I about this on in. question I one it. And We about maybe If market Got as That know the a revenue certainly for can't I that Vincent third do more, I sense. can't specifics lot and expense potential a until you is the go on Avast. Avast? the synergies NLock clear and gotten more how philosophically

about revenue you Just synergies between more as both the companies really you spend how with think more time and do two? the

Yes. very to I be Well, not question. for Avast. thanks question disappointed would your have on a

freedom based we that to synergies the wanted million digital Talked this merit that And even based transaction $XXX foundation on of we be activities I model to model discussed for about overlapping value the is we are to to super or coming of when we very, acquisition a We the know but Andre is ago, tune that. yesterday. quarters lives. transaction broad cost excited of know create transaction I've exciting an about. the news. stronger with think to team on very a of this Avast mission a the that And made of the that company the few talked very I also digital have about together. we

a be also see We top-line of of it portion that we our We reason our I if soon synergies accelerate would opportunity. not in revenue. the the want include many reasons, buckets did And growth the revenue to profile priority acquisition without model certainly as the three said but reinvest or number transform giving not our any will opportunities We we as you close. one conceptually see for numbers.

first retention set bring of NortonLifeLock bring we practices one But retention number the compare number or to rate. there. geography the we we the a The differences portfolio as is the at is by the some and be consumers during improve have retain can has mix. numbers. mix know developed Avast a that XX% and a capabilities NPS and that product least last and operations may even side. stronger to when opportunities There we equivalent of at lot approaches diligence due on unit. experience we that That high know drive in in And in XX% we reported

that's number one. bucket So

The portfolio. And second And basic one then Avast operational consumers value a to while just for entire model been skill sets and on to We product bolster into is to consumers. for in pay is growing about years delivering, overall ago. capabilities those a you ready introduced value for value combined the has richer that, point the demonstrating cross-sell we offered want showing bring capabilities. business we We've more know Avast if customer to offering developing that the those company, a X.X look our to that free. then the where NortonLifeLock the upsell forward

of of to the And focus When an you one a international And synergies. for So a US privacy. internationally rest Identity, expand equivalent they more services Western will world. versus the more has that then and offered as third But footprint about to of had from to markets standpoint, on consumer. the the the standpoint more Avast cross-sell a be the That's Europe will their value combine is it set then portfolio customers geographical second the versus started complementarity Lifelock were revenue markets. whether example. our deliver rich about be emerging even we're we Avast two, more to it's across very

so And complementarity including Avast our together. can not as were a channel. And the lot small businesses those you exactly I already yet know company or in we see as a present a where small consumer. penetration of we and richer we some very bring Locally, of has the business of accelerate VSB small have area behavior

bucket So geographical come the around and together. we the expanding footprint third is channel as

is close on that we'll we -- And closed, plan what you as be as our we'll task -- get first I share can acquisition, with tell soon As the we'll the is as that. started and the then deal this long-term ready more in soon area. investors we're

great. Okay,

Looking forward to it. Thanks again.

Thank you.

Matt Thank RBC. The you for Hedberg of line the your question. next question is with from

now open. is line Your

Hedberg. taking Matt This our is Biswal for everyone. question. for Thanks Simran Hey,

just how be seems to and current thinking the were more we resilient. looking So and macros security about

thinking So of we trends? the were wondering, how about these you durability consumer were security

safety, like processed device half to or reading your the from and was something security your you talk continue digital breached only protection know we when can was from we really all to about Yeah. way transaction cyber about when but any of also is up the I it the that insurance have Europe. restoration earlier cloud. your security device into which And that in talk is a report us increase. the in be not it's identities X% just that could on the for We cybercriminals first

industries consumer pressure continue insurance of other full that. from we'll in know of to level as industries is such We protection or not terms And so others. see penetration the protection yet at

structural long-term feel expand. good Avast the about And so offer will that markets really to together our with room. we have continue and more address We opportunity growth that we and

you course, of inflationary volatility, does this of sentiment and the at as mean, have pressures, it consumer in people have have and discretionary you will some look Now spend. see still you not a costs that short-term, those may

of have quarter. stable when one or time traffic But the came I to levers a we've global the the at last the coming the business We is same consumer the deliver behavior I base and of XXXX renewal quarter. very pressure. saw lot XXXX. seen But it in through in we is the in business from similar studied definitely frankly in our ago, also XX% this retention was it and years value. as we So rates drive two have

resilience on in pressure you volatility world who even put security need So into new know short-term. they acquisition or already in on lot customer of though the see a people digital may the

Okay, yeah.

from perspective. Sounds the quick customer great. And a follow-up just

customer and and cross-sell healthy great really execution metrics mentioned on that has You front. accelerating been

you So these over more up-sell in quarters? next customer challenging macro how and are few thinking additions about a

web Thank are once is a that a the of and then to when in ensuring shop coffee we raise of moment you data fully protected. and a Yeah. at has value a time, you point versus or you and being the can which partially a At the at on protect truth of transfer you we is aware it. is that protected in Well, monitor fully connect also good them Internet insight, that the we call you. moment protection the make which can which customer news to moment basic you

vast all to in lower cross-sell. device you right the like the our and total our want finding be continue and the of to part from assessment curve security customer We the the customer to moment have majority opportunity first basic full value to of way constant so give base And part us if of the protection. value still

to up demonstrate we to educate of a room drive value still the and as the the continue have move and consumers value chain. So lot

Great. Thanks.

Hynes Thank question from you Fiona your is question. next line with Stanley. the for The Morgan of

open. now is line Your

sounding driving previous Thank commentary and Avast forward to of It's everyone. like from call that part Fiona NortonLifeLock is this the Hamza. for of for growth taking and Hi, question. is This between be the going a offerings. on privacy big pairing on you going identity

basically I So together? if tangible those forward of for how some more cases kind Thank give like can going was vision what's And cross-sell you those of wondering you. that us could bundle motion? use different offerings two your use consumers

Yes. Yes.

the all upsell use refining completing consumer a is revenue case in is balance on the of or important fine when It's the value the you about the But too. talk for platform and all the you of about an protect communicate risk cross-sell, we'll consumer conceptually synergies the closed. the it's of how face all one. app So deal

the They something to do You or as the combine at time. have We protection we security and know and offer, with respectfully that that privacy. the identity restorations value to demonstrating insurance move not is protection from Avast views. can started want really we security. to have it theft other BreachGuard and entire does same Avast

basic One Avast most product the can have platform the product Norton -- downloading mentioned, how of that combining I the ease basic use, we we've we XXX, out. so our about they of have are the as to product customers day how then to we'll see us a working to next move And to it's come leaving our that step on they that continue use the together. the The And product effort the as expect platform have to ease do basic portfolio are lot have benefit all value practices once on of have the And figure end integrated of in in become they made you and the one. of about as At that. same. portfolio customer richer

PC could the and some the helpful. curious macro. if it's that there's you. headwinds seasonality the environment? potentially Thank of one question seeing months this sense given moderating the period? you're of weaker time Got in we what are summer see for your you. customer around in and on this of of, Thank Obviously, shipments is it. how macro traditional more quarter. much Maybe how was ground acquisition touching that much time real Very kind is follow-up just I I your terms another review And of seasonally on

Yeah. value years, whether you're some that our and less such June the definitely, over or COVID total right quarter, provide QX it's one for protection as because other combined quarter. seen fiscal on and events linked we historically tax in level fact quarter a the being well security is want seasonality. as the be quarter quarter two the side stronger No, to QX macro you the But and if seasonal quarter, more of you, be we've of would things. with we on which which low a honest that last more more strong full moderate the effect, QX identity as us a other being December To is side had April

we to expectation but saw of that it's what perspective, at some for know was that a where our of With seasonality. investment invest education, because that lower from traffic. our So call goes pocket the rate, headwinds weaknesses, in lower to line here a the we we're towards same term and long we we see said we continue portion did

across to we And really Natalie? the return our Do and of we're add try you flipping monitoring improve want on have marketing to anything so set the here to spend. channels

marker engaged be We the that, as to cyber need, that shipments Yeah service, to those across see think a possible. safety we it's even as And we got much with some down highly and available. as consumer would is fuels to feel the just competitive industry. customer And want can. – intentional. to do that of be in just inflation, more time – but customer that honestly another got choice – a markers our entirely spend we think now industry the much, we much pressures. and us we're you are over so other PC with fulfilling what's effort much, macroeconomic we about approach, of be customers double feel it that's then more through pricing you to just great it We've you in sure we that as the disciplined We've provide win possibly not order making connected I feel that combine I happening shows – much us. much that, digit environment

So that's where time. we of spend our most

for it. Got time. you Very the Thank helpful. all

Thank you.

there CEO remarks. questions. closing time, turn back will to more for call I this Pilette, Vincent are At the no

Thank you, Matt.

to call, our our to for like moment team to contributing Before take day. NortonLifeLock I close thank a would I the success each every and

well the the business of the shareholder Hao me on time dedicated as six On truly a CEO. As Board our on a ambitious the and also unlocking me will heard over you've I great we Directors. words the I'm of to NortonLifeLock to have been Board team, want before, to upcoming contributions building. the like behalf transition a and team I we trusted to partner years, of successful also his last We member to through Ken say tremendous changes wish we're would safety to company the Ken sure, company, for value. few say the thank the mission helping leadership first a touch. stay stand-alone board and and him consumer cyber has in an

we and our in We the waiting to in. XX the company so pursuit and that for I long-term I deliver positioned talked with team as to ready for have Andre well been feels deal of The Avast vision. exactly approval way. our months dive know I yesterday, to is are of same Avast, the mentioned, value

team. So, and our your support continued for and company joining thank for you of our

Thank the you. concludes call. conference This