Gen Digital (GEN) 11 May 232023 Q4 Earnings call transcript

Good afternoon everyone. Thank you for standing by. My name is Lauren and I will be your conference operator today. I would like to welcome everyone to Gen's Fourth Quarter and Full Year 2023 Earnings Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After

Relations. would opening pass Mary At begin. Investor for I Lai, you like of Ms. this time to remarks, to may over the Head Ms. call

you, quarter XXXX fourth Thank to fiscal and everyone. earnings good Welcome Lauren Gen's call. afternoon

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

press posted release. be the on there and like all As will a our year-over-year replay are slides this call, with a otherwise growth all everyone and IR the financial remind stated. call I'd website to non-GAAP this that along reminder, of rates unless metrics during are to references

on non-GAAP is call expectations. to press involve A Today's may from in risks and our business, recon contains and results statements measures that GAAP forward-looking materially regarding cause that industry statements to of performance, be the current of impact IR considered our actual including differ the statements may and our business operations website. is included available financial our release uncertainties which such

are the statements date. on Those expectations assumptions current as only current and speak and based of beliefs

in more and most factors to For refer cautionary press on Form the the reports risk recent please and release in XX-Q. the in statement in information, filings our our our SEC particular, and XX-K

our over now, Vincent? CEO. And call will to turn I the

Mary. you, everyone to our afternoon Good Thank call. and earnings welcome

to of people out digital and world. could to across in we of of easy-to-use the the singularly set the reaching do connected that redefine proud about from accomplished adjacent technology and year, digital all on ago tremendous I'm and As the to the safety believe I'm lives myriads seamlessly protect help now privacy years for our solutions and on security stitch that We we us. out the front identity threats we reflect trust-based opportunity of billions innovative cyber for solutions. then that excited individuals I focused and with someone call Three then of long-term complexity as together strategically have

Well, that someone is us, Gen.

our growth disciplined execution strategy profitable shareholder capability, We can and value. are long-term and innovation deliver that increasing sustainably will deliver confident that on and reach,

our Let recap me year. quickly

For of safety we year billion and cyber of fourth delivered revenue another in three year XXXX, fiscal growth bookings growth safety. revenue our and from cyber year on in organic delivered year run $X.X growth mid-single-digit years exited up consecutive rate $X.X We billion a the consumer ago.

global security scope that and across During privacy identity our US. the pillars and customers safety our from became of we considerably our period, cyber expanded now truly with outside XX%

well-positioned our adoption capabilities is in and We expand our omnichannel and rigorous in vast trusted execution free across hundreds globe. of of also user millions. reach expanded with cyber safety base expertise, Gen freemium brands, with its the the the to

our We paid fiscal which a have million from pressure low decline in QX business over year XXX,XXX single-digit and of on the direct in customers as we QX, exit saw actually three year post-COVID years XX sequential direct million XXXX. Despite direct up count a environment, our in ago. customer XX fiscal XXXX, grew

a increased In and Our our nearly $X we expanded exited we the and by since XX% the close was product the $XX value have the direct the rate two ARPU acquisition, year as one year increased our point, of Avast retention are customer and annual with fiscal retention adoption, by ended we the XXXX. at of testament overall overall membership portfolio loyalty. providing our customers quarters our increased annual offerings, ARPU rate our

and sequentially of improved at the our merger Avast. and the in ARPU our this of quarter with metrics, core thesis last confirmation value Both rates, retention creation

customers indirect customers, paid direct XX million through partners. solutions with In addition million XX to also sold we over protect

In indirect sequentially grew in QX. million over X.X XXX,XXX fiscal year about XXXX, added customers with

Our partner in year we our continue XXXX double-digit partner of to business. delivered to and channels fiscal see consumers year for growth reach its consecutive diversified more third via revenue tremendous opportunities

grew from digits benefits employee offering insurance. recognize just employers in again growth accelerating and Identity care in stable channel employees. is growing the the benefits a health as like double Our becoming packages protection demand life

key customers. provide We closely offerings also our comprehensive our to relationships to international cyber partners of scale telco to safety expand and continue working with their in protection markets, millions

channels these Our is of and distribution value offering the strategy actually partners grow the to diversify with working. the

Platinum, Benefit identity. and more Avast management XX geographic privacy AntiTrack, On Secure monitoring Program year C-suite numbers. Norton Identity XXXX. in the features, forward is features utility One Advisor, with protection Identity reach Avast than alerts email a Solution expand our and Norton including products fiscal for innovation for front, account a and international Avast Avast we strong LifeLock and Identity Norton pace new Executive We reputation privacy Norton US with throughout these step maintained introduced Advisor, rapidly strategic efforts Each the to capabilities, XXX of and in assistance

business I processes been lot fully the G&A integrated. the a would has growth, our and in done and team in remiss NortonLifeLock. have to but job accomplished the this overall tremendous together bringing Within have of sales, year, months mention be six infrastructure We Avast not

all no exited cost processes, fiscal of the size cash two-thirds the we accelerated was on savings $XXX and go-to-market businesses. single feat realized the two structures given have and organizational XXXX. structure of scale This synergies we track We've exiting year plus cost to year achieve the Overall, functional are integration process small fiscal are the Our already place. XXXX. as integrated in unified ERP, and code we complexity million annual

and uncertainties sequential integration short-term the This doubled to In improvement us fiscal profit operating and gives reaching margin XXXX, to profit of and year-over-year scaled than that ago. economy. navigate unlevered resulting cash QX, efforts XX% volatility up flow, confidence compared $X.X us the margin more can free years three XX%. global great we deliver the operating in point helped Our another of year billion, we to

Product accelerate our towards remains integration life-centered, what needs requires front vision and an safety, to see is use. of in easy cyber well defined digital march We of architecture. us product This our unified a tailored underway. is that opportunity and and your is it as simplified broadly to to

allow of extend this XXXX. additional in This we front key us offer. enabling to while our on fiscal people that will they better on us more year revenue educate value reach exactly XXXX to them Progress a synergies can them giving enabler our is need and what protection and to

We set opportunities not safety long-term we changes unlock position believe perfectly still do products, these comprehensive for also adjacencies. the cyber But our in with trust-based us have those of mid-term and in work to but here. only

up You've and let time again heard about of briefly. me talk all but sum time it me opportunities our

much the believe and customer XX in we the Avast potential To improvement improve in more journey. and can use particular easy the and safety is incorporate will last two the start cyber to Difficulty] months our grow everyone. at experience fully accessible and within That loyalty. customer for least undoubtedly and continue improved engaging we business, [Technical customer appeal changes. integrate six our Avast retention to points we points user-focused as

and them and The the move digital on and threats identity continue. full we it opportunity the to evolve the protection of Secondly, privacy to offering needs as footprint value have cyber towards of continually show customers increase. safety protection focus value to add tremendous and your of our will always a the

We to adjusted X% our new we have the mix. increased is geographical a in monthly last were where And NortonLifeLock ARPU six above long-term $X.XX for or months. $X objective move with

is count critical customer a long-term that know we Finally, for metric success. our

and the is initiatives and In customer materially. growth marketing long-term know in direct addition where a markets that moving grow return ultimately we customer will optimizing market spend our a to that amongst to, And mobile believe emerging will we of to in trend in few, stabilize help continued the it indirect us in portion we growth. the customers, our count

that, me pass our talk to let about will who detailed with the floor And performance. Natalie,

Thank hello, and you, Vincent everyone.

our I our up on will and and I XXXX for by rates fiscal QX growth financials focus outlook QX followed our today's non-GAAP fiscal otherwise full performance For walk call, stated. through XXXX. year unless results year wrap with year-over-year will

progress year our and company. EPS year safety consumer towards as pure-play a was achieving target cyber year our straight growth was another Fiscal organic of XXXX fourth of long-term $X

as in total billion in closed constant As currency. historical USD Avast company, amidst merger successfully our $X.X revenue currency macro constant environment. XXXX in X% and in safety cyber year-over-year growth XX% with integrated Gen we one of finished the and we revenue, over grew fiscal When Avast's with financials, growth dynamic XX% including year

of XXX margin year-over-year. and cost ourselves committed which in to to of points expand challenged significantly disciplined our accelerate up the announcement. us to prior the and our from the remain after growth This discipline X% up We basis investments, XX% full debt year EPS, operating execution enabled anticipated in XX% constant a the and $X.XX deal at deliver amount in cost incurring of time currency to us than led year up higher synergies

or $X.XX, with to a XX customer providing increasing and cross-selling rate increased cyber Our customer Gen offerings. XX% and resilient direct efforts retention average our is customer with monthly revenue strong value direct safety upselling we ARPU per direct we customers. a new Across business, identity million base of security, user as growing have privacy base and our our of over and scale

approximately customer to Our we've to of expanded with partners together continues $XX business paid grow million. and a total base

of our and and for We protection product unlock enabling products with new capabilities this new are customers. evolution introduced and portfolio, to features the continued XX year provide best-in-class growth over our

results our Turning came EPS revenue to was the high We performance. quarter execution. at consecutive quarter guidance growth another XXth our our QX of end consistent and of our and guide. exceeded of in QX reflect

USD, for Avast's in up crossed and in XX% $X grew financials, billion including bookings cyber historical constant XX% safety We in with currency. in When QX bookings time first bookings up the X% currency. constant year-over-year also

year-over-year cyber historical X% in $XXX up growth. XX% currency. was revenue non-GAAP an FX or million, up safety includes grew unfavorable XX% of revenue headwind This million in Avast's year-over-year constant points of QX in When also and results, constant $XX including three USD, currency.

including million, USD, revenue X% Direct $XXX in up when up was historicals. XX% Avast and

drive loyalty with improve. We value and customers, retention ARPU continue our as and existing to higher both

in monthly an and as cross-sell As our $X.XX and efforts offerings digits quarter. driven our and double grew above I US$X.XX, direct referenced upsell ARPU by expansion quarter-over-quarter is privacy the identity of

decline acquisition a are we conversion. customers customer in of funnel, count hard traffic web million, Ending impact XX.X the quarter-over-quarter, despite was Lower continues working to trend a to demand XXX,XXX reverse. improvements direct customer

optimizing that mix improving is we retention audiences, We highest channel continue of in It diverse returns. dynamically invest to to a continue new reach to traffic while to the the our and marketing on base. imperative existing drive focus more in sites, our spend mix to geographic drive customer

that indication customer strong with improved Our aggregate rate values the progress to Offering customer working. remains best and XX%, one we are which a efforts the this retention are to experience quarter. our quarter-over-quarter our increase direct made pleased of point is at the core engagement

the direct Before I update business, I move give want synergies. off revenue a to on quick

be six by over improvements retention shared and and ARPU growth translating $X.XX, revenue months to we $X with over I line our ARPU. of to the As we synergies quarters measured annual increased have top support expanded directly bookings through expect later expectations. quarters ago, ARPU traction Two to coming monthly

at We progress to XX-point Avast between the close. observed have time improved prior NLock of the retention making Avast retention narrow and differential

expand our to retention coming over continue rate and us the see will quarters. You ARPU

when employee in offerings was was partners. USD and revenue business, delivering in reported Moving third benefits, identity revenue double-digit year Avast $XXX breach QX, to historical as including in on scale million results. growth This consecutive our as we of key growth continue through Partner telcos like partner our growth our XX% protection. and channels X% to year-over-year

our and will build With contributed our and omni-channel X% now our lines Rounding make $XX up this strategy, pipeline, our growth partnerships, revenue. legacy reach momentum. broad our quarter, and out revenue, of than and further nurture million scale less existing we business continue growing

We expect its to pace legacy continue similar as QX. decline a at

to year-over-year. model. QX, QX the while to gross XX-plus long-term we revenue from our margin We was In we've XX%, XX% overall margin XX% million, continue expanded sequentially, framework, strong as XX%. profitability. in profile our $XXX margins we above maintaining inroads outlined operating reduced make Turning operating to XX% to expense income up operating to of

approximately X,XXX Since of X,XXX. our organization merger, to rightsized structure the under from the close we've

estate strategy operating real Our us center driving further also reductions data and has in footprint hybrid structural our workforce enabled our rationalize to model.

of two-thirds of approximately accelerated our on perspective reinvest remaining We over from more QX, we beyond. target synergies fiscal to achieved and as selectively run on Exiting enabling $XXX year product synergy to efforts XXXX annual rate back integration and exit and execution year the cost leverage track growth Ultimately, with and fiscal into cost million strong unlock the focused remain a achieve engineering. we pace will track innovation XXXX. in us record of well operating

was QX EPS year-over-year year. million, related was including the of $X.XX impact year-over-year. and to headwind Diluted $XXX in headwind. X% net $X.XX up debt in X% EPS currency compared of for a $XXX our quarter, $X.XX income and was currency approximately to expense and QX last Interest up constant $X.XX million stable

Our non-GAAP last And tax share reflecting XXX quarter's rate million, of was remains $X million repurchases. the our count share at down XX%. ending weighted quarter-over-quarter impact

brings million And paid $XXX flow our the million costs $XXX our $XXX to million which interest million sheet. related QX $XX operating and $XXX cash which cash merger paid payment Avast expense cash flow total XXXX restructuring free $XXX free includes million. includes of interest cash was This Turning expenses. cash this approximately and -- balance flow approximately to fiscal quarter. cash was $XXX over interest million of to year of flow of million

Our ending $XXX is cash million. balance

regular capital approximately and $XXX year we quarterly our per in XXXX, of to Turning returned and over in the our form intentional share buybacks to regular we common We share. In with dividend capital $X.XXX our rest the allocation. $XX of billion million of deployment. the of balanced shareholders paid QX, capital remain shareholders form fiscal with dividends. quarterly $X.X In million to

of per fiscal share cash regular close XX, record XXXX. For of to of the XXXX for paid XXXX next common a quarterly be $X.XXX Board May approved as of June QX dividend shareholders all on on of the quarter, the Directors XX, business

since debt towards payment. deployed addition, the In we the $XXX you approximately have when million include April we paydown closed merger, Avast voluntary

two remain we to capital will strong maturities with continue net of we Avast With and expected and months cash utilize supported our to to We continue have years. target XX leverage the billion due Xx committed over X.Xx capital the liquidity no post expansion deployment our approximately in flow of to deliver approximately over generation near-term total close EPS within $X.X of long-term. deal next be disciplined strong by the and

dividends, a pay buyback. maintain commit will We balanced opportunistic approach, and debt regular share to down deploy our

Now turning outlook. QX to fiscal our XXXX

low to in constant we For QX, non-GAAP translating in million revenue single-digit safety of growth million expect $XXX in cyber range the expressed to $XXX currency.

per EPS to range are We current of $X.XX as partially expect in interest share, near-term QX $X.XX cost offset SOFR synergies non-GAAP forward the on to increased be by curves. expense based

XXXX, low through we our full make we on progress year the mid metrics. scaling in For expect bookings single-digits, as to key year fiscal growth the

share to assumptions: year $X share on a be margin, paydown SOFR mid We around operating percent XXXX. annualized pre-Avast following merger X% and rates driving fiscal fiscal XX-plus below with Diluted exiting are buyback, debt still EPS to levels. deployed year curve of free expected exit count business objectives towards for safety remain long-term trends key indicate targeting flow underlying to and cash XXXX on cyber our structure post-synergy the focused single-digits, grow

we were strong fiscal summary, with year In a this sense out of closing accomplishment.

the introduced are Gen We to as cyber excited have in and scale protection. to the leader global successfully safety world

financial model and base. by powered resilient customer and best-in-class Our loyal remains our technologies products a

and focusing operate we and how macroeconomic XXXX in invest very to forward remain intentional be long-term evolving year value. and As will an we on environment, we will we disciplined plan our look maximize in fiscal shareholder to where executing strategic

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

from please first go ahead. question Thank from Saket you. Saket, Our comes Barclays. Kalia [Operator Instructions]

afternoon, good guys. for my Hey, for taking questions Great. here. Thanks Okay.

Saket. Hey,

Avast what's a see said you within think Great the to see your Great you you. in happening what's of maybe as for company it I for the one perspective? part first retention, Can was in just improvement maybe through point overall maybe And on that talk just quarter-over-quarter. from the Vincent to that. driving touch that view? retention base us

know if like But been a IP, nurture process world as don't is to everyone with know-how what you want. that to own you and few our And we me everyone of give examples in let share like here our we've Absolutely. the operational doing.

XX% and mentioned continued One improvement of improvement Norton retention company overall one retention point. as two and So things. is stable an the by It's two LifeLock plus then points of you in driven retention. brands Avast

does I for do because of happen rates and of our developing no which brands all the are This industry-leading know small as values stabilization itself retention feat. the you our the really we're retention mention in of by customers NortonLifeLock, not there. it's working

know just Avast rate LifeLock as on those I about than retention know XX%, around lower Avast NortonLifeLock. you the on and was side call XX the for XX% reminder points which for a the business So, is but Norton

before already -- was the And above also in retention acquisition freemium experienced such acquired with we as of had Avast XX%. which model business driven slightly Avira,

had identify about be the points driven structural such by so other plan and products And And models changes XX cetera. the of gap the mix, half identified half we about of driven a other the be points. operational the opportunities. operationally to the We more as to to business XX the et value geographical the

decided we the bucket XX to of first points. And so tackle first

brands combined I'll journey team customer activities, and worked only more marketing of third-party e-commerce to points transactional e-commerce partner share renewal brands communication renewal all the operations value-adds with touch bunch to operational team. renewal you the the our the We activities, as separated our versus experience. understanding across for We with the centralized one and customers the few. changes. for own give on with a journey of of our made a We focused customer renewal activities the education all

was NortonLifeLock an has Avast engine outsourced. you know As in-house

apply starting we wins quarters practices operational progress. quick are Those we a as And the work continue share few to if making had and will in can to best identified. want you we're sure, the take It so evolve. we

the buckets, is to tackled want customer to using protection full journey and the the being understand high functionalities value you the increasing of the them bought. moving fully they and view, once the team sure operational platform the has full cyber Overall, if the to drive portfolio to of safety the that value to customer moving digested potential the consciously make usage engagement them of customer

that the All of over improvement value. optimistic that, continue few we are activities And those quarters. will that cautiously create are next

my Got thought it. great in super That's quarter. Natalie, I helpful. the it for was to see it. follow-up maybe you. Got delevering the for

I million. think about it $XXX was

there me just correct And You you're that, how talk thinking maybe paydown related how this if broad wrong. interest maybe expense can you to I'm you're thinking about But just brush? year? even about through debt

Saket. sure. Yeah Hi,

for the up challenge was volatile payment including with on in we the repayment. the at million did since to voluntary $XXX of with reminder QX we increasing the -- of debt of funding everybody Yes $XXX did April Just million billion else overcome. to repay million for us for an a that, down it's voluntary. X% deal debt so a -- phone meaningful SOFR $X of $XXX SOFR

If EPS. million extrapolate expense. interest that's you million an $X.XX basis just of $XXX the to QX $X.XX of to interest annualized expense $XXX on That's

in you if capital that possibly would yes, as our isolation paid overcome. huge point targets So we've the got to level as leverage could headwind/challenge debt expense and a to at term, the it's deploy that cost you combine the get And on much down. long stated you of that with that the to over that looked

allocation. $XX you we the long and we know vision look believe expressed if and that at balanced in the I a got personally that, strategy And we're price we're you capital over term, our at look on undervalued. have going where business. have we stock levers know, our massively that We But multiple we've

buyback And so very, share the that capital very makes deployment important.

are but exactly to and them and And of you of business of talk long-term so them both on approach to it's balanced about viable each our objectives. when incredibly a we our to critical achieve drive guys capital are Both allocation, other, challengers our that.

call specifically at strike all do over that you'll what basis right QX that So you looking our in long-term is business. we've a dynamics go-forward XXXX see balance of whether it or us got on the the

Super it. very was queue. get Thanks Got guys. helpful. I’ll helpful. That back in

you. Thank

[Operator question you. please Instructions] next Angie go from comes Morgan Song Our Thank Angie, ahead. Stanley. from

for behalf on Stanley. much Thank Hi. my I'm speaking guys Morgan question Fodderwala you of taking so today. Hamza from

you a So quarter on more The net just compared that lines a for little adds quick a adds. under bit to net vast had last NortonLifeLock question pressure mentioned add.

a as net talk year dynamic we dynamic the this So more about model NortonLifeLock for XXXX? we quarter? for how could fiscal adds just Avast And think out little versus should this about you bit Thank you. of

Angie, Hey, Yeah. thanks question. your for

decline mentioned you in the as about is customers XXX,XXX, QX of right the sequential So the so, direct lowest year.

the actively, we're plan first our growth. counts then So customer direct stabilizing customer -- trend returning we as see to very we said to stabilizing. and And working

continue We grow continue or to our to customer indirect grow -- we grew counts.

two-thirds, On basis the side it direct the want ratio piece, was And reverse. think decline. a more a last pressure on before Avast. was was quarter quarter NortonLifeLock the of on then if The the it little I one-third it you

So on be drive more the across careful security more the focused so just not within the trends tensions side, about security. we but versus same slightly the side be being said We focused globe, brands. also the quarter-on-quarter the identity to see overall on to

Avast I fully we're continue bridge And of want. say them the we Avast to reduce if to two retention versus we points, return And confident Norton. retention would growth very once because course, the gap you of then XX-point improved we'll that

color that dynamic. you some So give should of the

just if And I may. one more you. Thank Great.

could you your $X on into Thank macro exiting much. So EPS definitely bit your us little in a Avast even some more XXXX? I remind brought fiscal long-term that acquisition just the target, that have the we the given year more confidence complexity the so equation. fiscal into as visibility you XXXX is target backdrop year caused now And uncertainty, level what recent know achieving

the multibillion the similar tell focused pass with you so I opportunities complexity, bringing directly can when right. strengths, confidence, it's about It's companies absolutely But you But is from Yeah, is I'll the model to together. in on Angie. complementary sense, it's hear CFO. bringing. one merging it Avast day so Avast business you'll very every talk Natalie that what on dollars a that we're And very

on the complementary privacy about full talked our some product with They're hundreds paid to now user, we side. XX of that. the you strength that allow identity portfolio. more millions Combined of and the And track safety proof offer bringing of to points and cyber of customers gave we across us million free us being on

has we We the our more you'll pace for with said now can more -- We to technology and now said hear as about R&D. And the global, of world. our you know. Avast bolster Being going innovation that combined people being asset and cyber across for borders a are us. is moving in real safety the are global globe virtually truly threats no

We some also beginning the revenue we of that the have said synergies that. Avast rate and is retention

where delivered as we more of revenue to growth million two-thirds and And then cost we XXXX those using synergies You'll synergies. in promises. plus $XXX return only XXXX the that see the of

see have follow where Now that our those you realization And deal, the of exiting Frankly you Natalie by the X%. time by XXXX will mentioned? mentioned deliver a investor’s not that, if flow. will X% the predicting X% SOFR but may full with then cash at I we guys, signed fiscal community quickly debt. synergies. the we was Yes, the is year SOFR anticipate and from when did complexity it cost today of is the we being you coming

opportunities our acquisition bringing really that So focus to the is is us. on this

pass it bridge different Natalie the in the and confidence the I'll And levers. to for

Yeah.

a -- think heard where perspective. and and just at coming we Value from look innovate, is into a competitive constantly where perspective, bring is innovation I loyalty great from we services value, majority. products will coming you really way. market to summarize would into very about reach in it growth the a I the it from or play

on new vectors priority focusing and Reach the our services, but looking products about we focus is to through reach how best really And and also existing then international NPS, service expand and engagement our our focusing is at can increase customers, and bringing different our base globally, user metrics. different retention on global intent loyalty of markets. cross-sell/upsell our to really on our

driving EPS. got cost margin incredibly a with $X expressed to discipline we've feeder is that Combine going that into in company structure, structure the strong a the that our XX%-plus to the be

said, don't with and be at considered as flow back and forget, to safety accelerator, strong we Analyst we very look cyber we as our continues expand M&A Day, also protection and generate we also said other services when cash out to came an – other very, products We as as could evolve. continue

When all hard really so see time of EPS you provided. And EPS. how envelope, ladder to back over believe the of the all get that to just have $X in frame it's we've up you the not the out the some a we laid to with just or $X that got what that we've you assumptions of target the from whiteboard perspective

Thank you much. so

Saket from Our Instructions] Saket from Barclays. question final [Operator is please Kalia ahead. follow-up question a go

again. Me guys. Hey, Great. Okay.

do was time? the ARPU just a had And you. expansion to can I Maybe see Natalie, Sorry, follow-ups. of how know do think over maybe I you Where go for you. quarter-over-quarter. for that? question you it couple think great a sort more about that

I Yes getting honestly. think started just we're

strategy that think think as will Gen portfolio services be products I base. market expanded I to honestly, desire and and and commitment with in and innovation, easy and I'm invest the to we to to bring customer continue confident more that we're now express our to going sell the great more with that have

base, et a you And depending on those of cetera. so where cohorts, specifically dynamic balanced ARPU markets, customer already will customer go, expansion, customers, at and with I'm started. equivalent just the $X my of look even our a not to more more just that getting and we've sure. of approach It's be start a the applying source in But the or we're to if more opinion going made progress ARPU

our a existing just that to new ARPU, really we able as but to we increase there then expand expand And well as bring innovation bring to XX reach as expand have and customers in space of also as across well. We be ton market our our million.

Maybe can it. margins Vincent. we're what Got it. you we control with clearly Got trying I to and for follow-up Listen, for improvements my in mean retention. operational

Of customer course, is acquisition. equation add the net of part other the new

the is so continue do side then that you you And that reverse Vincent. customer the question the maybe to adds of trend? new stabilization of turn What seen on the can corner sort maybe but and we've net for

what I you margin say, and slightly Yes. think of And me stake lean to really innovation what culture our if to do. or commitment continue can and sales differently, we'll dollars operational is you compare This where every that we in take running DNA very the in our a customer is would well. that is you versus what very, acquisition, stable we do allow to redirecting either control and and

price with drive value, coupled that and we value The the operational what discipline representing able we're margin. is drives to the charge,

very us high-margin business, buckets. As When you comes business. three grow we it's our really we growth it know, for the the a to have how and

the the to eight you And we'll same not NortonLifeLock, we portfolio. you the we is gave like adjusted proof in right a quarters the and Natalie at this it's much supported how innovation, $X geographies I the can the the portfolio. to time we point frame with were more value believe of we with that the do the for is ARPU cohort. focus. mentioned above next to add some Natalie cross $X daily go told way first we where between mix And and over

one. number that's So

new manage ability on services and later or membership we cyber to to above will what are reputations digital per that but added it come get Can brings. value for core the adjacent beyond from to your Absolutely, more? $XX services, your you safety month

course of we operational one the customers, the more for second retention, be drive the the for as the you've And right, more second growth. I we'll able is view. retain, The seen more to talked the the of there progress. value you some The bucket the business. as the satisfy about

scary. hacking here journey that this in them focus actually peace continue whole mind, to giving Our around evolve is customer of world pretty and is,

cyber on faster to towards about, those trade-off, buckets, one side if overall, our the will long-term between to safety, may those the continue mission progress. which and on it is have value then get depending, And is real people you three of pressure metric. will third a be you other activities the one progress new three the acquisition But bringing

net set we every the But try of path, and you right? after. to we is, a the them, acquire still have to we freemium, one all membership first one have The in capabilities to of full know, more retain On new more customers. then and product perfect we're now that opportunities. countries can sales, We to sales you not go from

to into down though touch want may be mobile. of us, doubling Even terms big we still Mobile in the It's Everything We're desktop you a life use digital you that, today. points, do of your growth. is through is interact first act to mobile. and channel and needs where all for mobile.

benefit solutions, that solutions financial that know some part or safety of employee their other We customers get. they want to be would cyber

customer with continue to them, get really direct an indirect that so customers, our which others to we're viewed cyber the between of trying direct customers, activities as driving. here, be one. which is And to more safety, we set and another touch interaction more have we're partnering important to customers, cross do is Once with should

emerging safety lower strong is would the achieve. to one would balance, western back ARPU, emerging can healthy in full a be per trying markets, have a we're pressure to Avast, world, emerging to cyber more and another the market in bit and With it's now where little customers new markets because in a add than we my but a footprint comment, price on month bring that

can and the and balance one, lot including we channels is value another have our all activities paid of activities, across spend accelerating marketing the then mention I in the freemium of a to conversion freemium demonstration. And the stores,

that All in full of is swing.

I two three of the fiscal way, of growth, And you balanced all of give to we that would seen the rather We're mentioned. plan quarters, assuming the return just be to similarly gap. QX, in not similar seen count. buckets on confident We're on -- but in customer precise we improve. last in when you've by you you've returning that that model, reduction you continue year a will the the a we we're with give trends I've end XXXX, we'll say, I'd -- that growth. of metric quarter working

guys. helpful, Thank Very you.

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

Excellent. Thanks, through Lauren. directly And I hard their work, for want to much change. managing thank each Gen employee for and and so embracing

the team the people to millions customers, trust us driven help for complex take is we to them not navigate entire Our and our advocate around of the world, granted digital and do for world. who safely protect

culture have execution. of a and innovation strong We

growth, We we to profitable will continue and for and our drive execute have stakeholders. a long-term all create value strategy, winning to

call our for you look to forward soon. So to and thank I you today, talking joining

conference the call. concludes This