Gen Digital (GEN) 3 Aug 232024 Q1 Earnings call transcript

Good afternoon, everyone, and thank you for standing by. My name is Hannah and I will be your conference operator today. I would like to welcome everyone to Gen Fiscal Year 2024 First Quarter Earnings Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

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

Hannah, everyone. afternoon Quarter Earnings and the you, Call. First XXXX Fiscal Welcome Gen Year Thank to good

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

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

business, statements statements be and uncertainties that risks industry are financial and contains expectations business of current Those beliefs, expectations. such only of operations date. may that and based impact materially the cause call results regarding on statements and as assumptions including involve our current statements performance to the Today's differ actual from and our may speak and considered forward-looking our

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

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

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

start. to great off is year a fiscal Our

and us; results. quarter execution, This of many discipline have expect is what solid strong to you consistent operating come from

Avast both constant revenue of marks the QX our bookings with currency historical up and base. in single-digits quarter consecutive low quarter in results growth This XXth when including cybersafety

With and post-COVID direct make between operational progress integration reducing we in our complete, breakeven. our operating with environment the We churn count, expanded way gap customer to on continue essentially to our our growing and and ago. points EPS the expanded our six another points nine power months Avast earnings constant by US X% currency. dollars We only and which sequentially started XX in since X% basis in margin acquisition merger

easily sustained But taken shows be the to Our these Gen for consistency the no mistakes, make day. speak granted. every can talent and team commitment results

second Our none. is to team

but As of me people started. facing we you lives. and to protecting I our drive excites have threats when is are really accomplished, can just I'm leadership ahead, really gotten in look digital well what growing what only have we against proud positioned tell expanding And we innovation the cybersafety

world to everywhere all As easy-to-use the enable footprint continues of offer. them solutions and lives the digital has digital need expand, people help to protect our that

with go bringing you stakeholders back Andre more delivering I dimension, and importantly, look protection if together each in you protect bringing and more we map this first When product everywhere. is at comprehensive shared empower our I Gen can you the more but not our people our companies can together. only see people geographies portfolio was road see the that to of delivering a about and on clearly fundamental talked mission two on for believe vision progress years with to And the NortonLifeLock and type Avast ago

people the outside the consumers of end the Andre over of we of indirect hundreds and and were serve ago. Gen US in Today, our million free millions our years QX, of direct key with and reach the services I for unmatched of serve XX% scale. XXX that And subscribers One and create would touches elements our XX% two versus people countries. combination offerings. We was premium XX with at

people deliver continue grow to we to the in all internationally growth believe more we them. time and value tremendous countries, While in have opportunities to we over serve

countries and new fact, of a this that QX, reached expansion. all channels, global dimensions products showcase customers we is Latin America new In new three our acquisition customer In region. through success in in new

to consumer Our QX global view With in security proxy tenure the we a expanding portfolio and customers security international cybersafety. for broadest for strong longer count growth by which bring are time. comprehensive with customer value as LifeLock's our also and over strength ARPU positive and leadership and those supported was customers in reach, most Norton coupled Avast technology privacy market and we in unmatched. identity adding

we do offerings. Not only of have the breadth

brands. trusted have industry-leading We many

regional needs are or Our our what portfolio to us that be with consumers amongst meet different of others awareness whether different we of and serve LifeLock, the stages Norton, with customers, or tech need. life they where and of AVG levels can local brands best allows needs, Avast, Avira, diverse from they

and comprehensive services. suite Avira protection Norton, And LifeLock, offer entry reach value all-in-one mature with can offer markets price Avast we With that unmatched restoration less points. we with can theft higher offerings. award-winning plans With tremendous we with identity including delivered freemium

to grow our and abroad to The the and the they consumers portfolio value are enablers and family for brands that deliver US of right great us evolve. need in to trusted as

This quarter our of cross-sell improvement almost adoption growth our XX% paid customer Norton direct third base sequential XXX quarter we of and ARPU by integrated retention, One. comprehensive and our double-digit in or of Avast driven has delivered Today adopted in suite.

In digital really and success. importantly, new and we the Gen, current and power first engines portfolio Most future in provide products customers and offering as world. in that the the investment are expanding Gen's this control more technology protection to several year our features launched innovation our

digital offer Benefits Identity, Secure the Employee of empowerment expand from and Products and Browser like in on consumers. Norton AntiTrack Protection our we protection complementary to portfolios Avast Executive combination all come Android, the and

NortonLifeLock and our platform, We down complete in modular next-generation and progress strong And our promised essentially the integration we brought cyber revenue the we've synergies. Avast now accelerated to beginning and safety made innovation with double when efforts together. are innovation we on

to a web e-mail, link that It a media consumers days, week program innovation an AI-powered early help designed fraud. Norton message is still identify an last our scam or just is latest whether Genie. is early called introduced is social access to we or but quickly Norton Genie tool text,

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is can just at But your tech right as creative takes level. our we do can customer-centric sure important daily fingertips as the everyone. to how and reimagine created with platform. another innovate compromised for much and digitalized and and so is we interactive, not plan scammers. of people is, to engaging being free. so Genie approach that how more Genie Genie It's will Genie just is We you and stay by cybersafe there glimpse, sophisticated a be is your It's can

is innovation free. hardly hard, Now, it's and

So in investing committed we it. remain to

We why without. reinvesting a to synergies we on exceeding cybersafety, people and are on a on for while mission growth. That's delivering frankly and our want to portion make something focused live won't promised future innovation

workforce in cash promised operate go-to-market X,XXX which originally time, down ERP to under, our raised In $XXX we X,XXX. system We later infrastructure to framework unified a million. and The of record over synergies, we single day code committed we million of processes. overall from out $XXX cost a with integrated sales, a structure and over marketing and fully

come of cost work margin operating Halfway with reach our will to the synergies of almost in subscribers. disrupt the our enabling through XX% The us and our to phased we service so are XX achieved already remainder product months QX. careful as which XX% from timeline, we've experience integration not

out all and are assured, planned course quarters. coming in the will that of these Rest our progress rollout

which which we personalized of enable As value to part of synergies offer platform the opportunity a this size dependent targeted big revenue our see us more million. on in at combination, A is next-generation $XXX around our we way brands. also largely across more and revenue will portion

investing are close already about must, While investments already believe life, bringing the Avast the rate retention one innovation efficient synergies. over and through excellence our at to those In another was disciplined of of the are merger. since centers growth are to work funding of streamlined points two the Avast that increase a operations. We retention we of revenue leveraging customer teams up QX, and but hard is pillar we that responsibly, in

integration We've operations, support and will The of our quarter built our XXth growth Avast in is the our coming together overall with directly which long-term and that made demonstrate have we we know strategy growth. progress tremendous capabilities the working.

cybersafety Day, one more Gen, relevant Two Today achieve showcased ever years ago our And set to positioned everyone. our the are than we to strategic last then at goals our vision. big we transformation. Investor bring is and to playbook better aspiration than no

user operating committed empower base to to our to consistently delight our customers people our growth discipline, we cybersafety our we doubling EPS with maintaining our reminder, XX. our to to a above committed NPS doubling and while protect We're accelerate As committed and score $X. doubling

executed Gen plan on merger We've metric. and a our with made solid the progress as created one providing experience great number is customers we

will make us to our giving value We our the lives. of the use bring leverage, and NPS their QX LifeLock to all-time portfolio. across reached easy an solutions operational In to to added digital XX, continue entire high learnings blueprint

of incremental than $X.XX also $X two direct customer managing about million a is years our EPS. from to We challenging growth from XX in we to including committed NortonLifeLock our that accelerating moved XX remain been million. as base environment and an EPS ago user have costing to millions users post-COVID cost commitment. our of over Our And as hundreds delivering million over moved and our Gen higher XX fully through long-term us debt much of

as our Gen for sharing our fall. more With Investor we almost the Day planned growth look forward our us, our at behind opportunities year full vision first about and next to

date. for tuned stay exact So the

and year performance us, will Natalie will with our our also guidance. and review merger behind share she full now essentially the quarterly integration

low low guidance the end, single-digits. the on based trends growing On our current is

innovation areas, accelerates mid-single-digit supported we direct very initiatives beyond end end On on in continue investments our such year of the above road trend. and drive the expect the growth account, to high positive improvement exit customer partnership by to a security strategic over rate the and international year fiscal On to and map. key expansion, towards as product a XXXX and time

pass And with that Natalie. let to me you it

and Thank everyone. you, hello, Vincent

non-GAAP fiscal another unless financials will on followed for of We our XXth results fiscal quarter our XXXX walk of of revenue results, year-over-year XX% and in of USD QX million, was bookings constant QX midpoint $XXX I consecutive constant through today's reflecting will When high QX in across the quarter I growth first For above our quarter year up otherwise in by regions. and was call execution. including and rates solid and and year-over-year Avast brands historical stated. end growth and focus currency came full XXXX. non-GAAP X% growth across at cybersafety with grew currency. revenue revenue the EPS in both XX% guidance. broad-based outlook

committed XX and execute Avast to continue when in We X operating accelerated to on $XXX points up expand sequentially and XX%, was up results. USD million, including fashion, our basis the points in Direct an up merger. since up margin which revenue X% historical cost our XX% helped synergies

key strong demand innovation that rate We make progress consistent customers' continue represents and which expansion, loyalty to our our our performance product improvement retention metrics the resiliency and drives. ARPU with across and

a Our hard million, is Ending have a customers approaching worked customer quarter-over-quarter, only $XX.X improve. quarter-over-quarter to decline count trend customer direct of count direct growth QX breakeven. XX,XXX was we

back themselves to customer find the forced of home our in at live at shift. was the period, employees normal in seen more acquisition change their an more solutions step the all-time with our of school, in people we with back protect customer function year in During high, normalize as a lives digital families last levels office back lives as the to as we've were to COVID to mobilized pushed and world and acquisition And online. students that life over and line the

customer customer with the this as cycle, current cycled not in of the of through therefore decline. elevated the of count in period retention customers even rate five and acquisition quarters state quarter-over-quarter number our remained net though line our life of resulted units Throughout strong, were churn

however, mid-single-digit when acquisition, periods gross for low a of that to It's QX period. to grew high this periods, in COVID when pre-COVID comparing our worth three-year representing adds single-digits you over CAGR noting the normalize year a

high efficiency, given proud and level by rate current We conditions. the our are driven of of marketing that especially market acquisition, innovation

shoots. in intent, capture product offerings and mobile expanded we with evaluate expansion geographic higher growing we see deployed newly to we acquisition demand the Gen our Always green efforts, have and operating growth in sustainability With these markets. as broader long-term marketing and international of spend speed

conversion and ensure the against and our a focused protected progress. of Customer In we strong our traffic, mature to customers our us our cyber on making for presence product threats. the are our offerings with we they are more brand ever-changing additional remain channels, improving remains fully direct-to-consumer leveraging priority continued count engaging

We stay expect fiscal and marketing year investments, continue count steadfast strongest sequential as go-to-market offer our return growth portfolio in our in to to growth product to this shoots. and customer drive broadest the green our expansion, in we

became improved our and XX direct Since CAGR of million fiscal time, that stable total a a over had of Over rate. fiscal even standalone million slightly by we base company year we XXXX, XX%. retention in of XXXX, to period above grew Turning years. XX% X% customer to XX year over three it consumer retention

merger. with the combined XXX When improved retention unpack now points post-merger, to our this have over improvement we to further, customer we of sequentially rate continues since Fast basis XX% increase rate plans and forward cohorts with revenue more rate. with industry-leading plus and at retention remain over XX% retention in by points Norton rates synergy two our tenured now retention the LifeLock Avast line stable identity

We churn of adoption increased and our across suites of We direct membership our know still retention now a improve to to strong after between we customer closer correlation see merger. base rate XX% cohorts. the opportunities cybersafety have

focused customer bringing products are with world-class higher We through continuously market the to on to and service. higher demonstrated and protection driving comprehensive value engagement retention new

value driven increase On in additional merger. and was is US$X.XX, customers products front the the monthly we $X.XX by ARPU growth demonstrating and engaging provide. revenue increased monetization since through services per direct user our an primarily our The of

offerings. right we messaging conversions the cross-sells purchase truth our first a free-to-paid a built forging operational we the the from closed of was and Avast the expertise high companies. million-plus shared with know-how deal driving When opportunities one cross-pollination operational and conversions strong exciting of of and top-line both between product had $XXX moments in

LifeLock XX% value and membership Meanwhile, retention with customer rates industry-leading had Norton a strong of service. and elevating on plus emphasis

well both of are now strength higher lines driving as cohorts, the leveraged improving on customer conversion retention as across product we've As penetration and companies, products. geographies we multiple cross-sell and

progress to year, product with of business As we we continue this the excited fiscal future arm the are introductions. scaling through

reported contributor channel important X% to customer USD in remains business in including paid partners and is was for up distribution financials. as Our and our an year-over-year base. us up Avast's $XX when revenue million growing Partner QX a XX% historical

of and solutions protection institutions and is secular tailwinds With identity demand are now only for breaches not protect for residents. need the consumers, from our to consumer the also pervasiveness increasing the their employees growing but businesses and to More state turning agencies.

is cycle, from business benefiting growing we will in diversified and expect to pipeline there we Although, continue the coming a investments in channels. our quarters partner longer sales the a continue

our continue out million our less Rounding legacy our $XX lines revenue and up contributed quarter X% this to than of business revenue. make total

double-digits We expect legacy continue year-over-year. declining to

strong $XXX was income to framework operating model. as make plus we've up to outlined long-term XX% inroads QX expanded to profitability. continue to margin we million XX% operating our margin in year-over-year. XX% Turning We the

expense XX% within merger XX% target of from of moving was testament our synergies. operating on we've made to the approximately to profile down XX% progress of XX% our the QX, a and cost the at revenue In time

The speed into of efficiency growth to some enables us of gains redirect our execution investment the framework. back

that in our solutions, expand us differentiated touch of to the You identity will trust-based digital amplify our bolster international into especially, parts to continue will see product and privacy presence, consumers' portfolio with invest more and life. adjacencies

with in single-digit growth our synergies product by long-term mid our our will rate of revenue along investments assumption These integration remaining built enabled the strengthen model.

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

million the repurchases XX% tax down million and reflecting was legal non-GAAP to the share weighted lowered quarter-over-quarter impact share Our XXX in integration our count rate one ending quarter. of following entity our shares

and balance million. our ending to sheet is cash flow. Turning balance cash QX $XXX

consisting cash by next are $XXX cash flow years. includes revolver interest in $XXX approximately and was million, over cash our of payments and operating of no cash quarter. due total $X.X a near-term two balance the billion, flow We have we $X.X $XXX and was million maturities of liquidity million supported free billion which QX this

generated the in the includes Despite consumes coverage cash payments in we've Please to impact Avast little flow we months free times, ago interest ratio in restructuring $XXX EBITDA approximately payments merger. strong in a and interest increase cash million over year-over-year, QX also $X.X This in power. the million quarter. EBITDA business next tax nine billion our CapEx. flow, Since is free keep to cash cash earnings cash unlevered flow seasonal one have very X.X testament times that our free mind every our that of will since $XX payments year, as merger

merger, Turning We the In $XXX share capital to of to with $X and nine deployment. dividends. the months balanced capital our quarterly remain last buybacks in we've capital with of rest returned since regular allocation. the intentional million our billion and form the nearly of shareholders

same paid $XXX we've addition, period. repayments in debt in the over In million time

$XX million per $X.XXX QX, regular share. dividend In to paid our quarterly in form of of shareholders the we

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

utilize continue and capital disciplined expansion. EPS to our strong capital cash flow With deliver will generation our we deployment, to

we the Our target the leverage times committed is over times X.X approximately of remain to net long-term. and three

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

our to fiscal outlook. turning QX Now XXXX

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

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

Now that we are integration, reintroducing guidance year XXXX. are we largely complete the for with fiscal our full operational

the translating single-digit We to of expect in growth non-GAAP billion billion in $X.X revenue cybersafety range year currency. to $X.XX full in expressed constant

be to year of share. the full non-GAAP $X.XX EPS expect per range We $X.XX to in

fiscal a XXXX. to start in great off We're

in We our and on are balanced manner. always our plan executing commitments relentlessly focused on delivering a disciplined and on

indicators performance key our right financial resilient. in Our is the are and trending direction model

into the the to growth look reinvest drive As we to committed value long-term. we're create future, shareholder in business and sustainable our to

is share Analyst look I the and Our very at fall. bright to with our details forward in future Investor opportunity to the you more Day and

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

Certainly. with from line Levine first Our Instructions] [Operator the question Evercore. is Peter of

proceed. may You

Hi, Peter.

taking question. of, my Thanks for you sort for quarter, a a one year. for fiscal good then maybe and Vincent, Congrats follow-up Natalie. on

mentioned You innovation. down on doubling

for offering Genie maybe can you mentioned the to power and You customers, a you're up retention an this into tool explain this mean I have viewing AI as But maybe charge it or free. charge down tool? new is more you that opportunity are dive road an

think term about you you your What I security longer do about other touching attractive life. as to think consumer I start areas then thinking think And upon think expanding are of other now? out in commentary areas

innovation very here. the fix For a difficult is in and the development future address a huge time important frame topic to framework of discussion And, sure. that's obviously,

we and going the premium. that add more the about the share use new capabilities Gen a we've Avast future actually when more. freemium. Day, to built number invest, then genie, tool technology of it it's our So, capabilities want, tool to continue at acquired to is and priority to And we'll to Today freemium want one do into address where a how specifically a next And comes cybersafety Analyst adoption. values turn into we acquisition if and the both we're you as with we

retention value And adding the it's also at the functionalities a current same time, it's to rate members. because and

that, on have landscape want than if the threat AI because more side. us developments you the It's that. new impacted that's one for both So,

new big So, threat security to topic. device and personification, what scams data frauds the looks and the like becoming and a it's protecting changing from past

are empowerment share Analyst The not time, is Day. and our we us opportunity accelerating for and to only ways bring, we'll at continue that at multiple improve AI against same the also the platform. And in a that more it's an influence value the in other an you also world, and the you're but models digital help understand you tool and and protection, looking can how of at how use AI lack learning machine for AI to it. what in safety algorithm

cybersafety. the with very on whether whole anti-scam currently a here side technology transformational address then and it weeks and can continue very it next scam to a We see how be And tool, in protection do quickly of we envision that goes. or threat over we'll us today, easy-to-use months the about the on and So the to give and how opportunity. how simple you then strength Day, on access hear next-gen it's plenty and early gives started and check part a we'll we our to as that the to you what few more download advice more Analyst you'll both not, expand of share Genie quarters, platform, at

are seeing this I talked what confidence even you you're doing you where And you And Can what further churn about your to the to kind operating is color seeing number on get mentioned, was the number year. higher Avast you're into today customer dive you go what year. think of, impressive you the that is? going that talked that for there us, then of Norton and gives point? beyond tell that working you're then to improve -- maybe kind inflection of operating efficiencies that to positive you see today second, one Maybe Thank you to this just about growth Natalie, there. hit

Sure.

I through expand in I the years Analyst our on fruition. we were of our go-to-market. back Day, see coming what coming to to gross diversification adds our when And Even said is did So, two perspective really that we you date reach. through diversified on partners would go-to-market we've say, a going path been if from internationally extend we a

of the expansion of terms seeds in lot we're really a couple seeing So, hold. especially that we've been planting take last years, really the over of international

so that's behind investment to the be reps to sales continued that got move we continue we've as forward. really going feeder that, And our leverage we our as go-to-market marketing across many we to gross as put different into diversify continue a adds, channels. and

addition mobile In that, is through what to we're customers really come the platform. seeing

And so with -- and being globe across your a service you is see digital NortonLifeLock in lot that we say, to -- of we're are would I what anywhere behind that in of life. we Avast, the products put with conjunction one, to channel happening being dry that see in powder going in access the and terms mobile our able

And synergy then not seen the modeling through surprised. it that and merger, pertains we're expressed gains we've commitment. to Avast We nice rate, the since revenue our retention as

be we've teams on we ways worked shared And And that strong relatively Avast, strongly so both could really on, to NortonLifeLock. low-hanging since so NortonLifeLock got Avast best the just to together And couple any merger. speak to build the wins, learnings. see continued from out the and those practices a to fruit gate of

that And market collective really retention sharing helped in to things the cross-sell not muscle, ARPU as really as we what continue and really market, innovation progress beneficial as can having pushing we how across really only team, all how all really sequential see the become us practice robust the scale go there. a best the as come in believe, some and just come Gen we the we can been it's to has to the to envelope has really see brands. we make upsell just continue -- rate, just or fashion is strengthen to to you and reimagine come fruition teams we combined to the and to that have the portfolio And product us in one

That’s a pretty Congrats, very color. on quarter. good

you. Thank

Levine. you Thank Mr.

is the with line of at question from Saket next Kalia Barclays. Our

You proceed. may

Saket. Hi

for kind and maybe here. the bear historical gross how questions back that of starting Thanks see really Hey of Okay, just the great. Great that Vincent, my Hey are for you more last hey Vincent investments get on to levels are hear you question. taking those just to guys to fruit. adds back doing?

Vincent dig or profile What more thought maybe part really maybe could are you upside. identity for those or bit I surprising be countries international you just a they to into little the that to geos off. the bit? investment was you a one level that just little just starting of are And interesting. maybe they of both subscribers? Are pay they Are on that the more deeper security? to seems what's

Yes.

right. to nice customer and pressure path -- seen yes, it's continuously to see first direct all, absolutely So, reduced count of on growth. We the breakeven being the the we've quarters five returning for last to

through because it's we're reiterate I analysts gross a here described and not it. controlling that in gap first adds facing We really were flushing really, effect way almost And or really all that like that impact to QX. headwind impression if the Natalie at that reducing had you we look won't about the we for post-COVID I the breakeven investors you of maybe the where post-COVID many think those lost that time customers XXX,XXX been talk the quarter. about We've

COVID gross and where and half, years But adds two single-digit you we what getting for where of customer ago here our single-digit it's CAGR, over three up count a which growth drivers at in that's and and look we to. when had will to high normalizing we're said are right in it's on rate actually balancing three the grow years the QX low all single-digits last line including low we

capabilities of accelerated the Gen capabilities or with breadth that had and has the Now, that the is was mentioned then merged cross-sell the as technology coupled Avast and and channel capabilities renewal international it's expansion. now whether with built having portfolio we the

-- we internationally. we actually You almost all give expansion you example because about the areas. pretty good talked about internationally I'll one And feel

inexistent But Latin was and quarters' decompose NortonLifeLock already almost our particularly it's coming had down there America a you when three with strong was the presence. lot Avast last together capabilities. we've of really seen strength

introduced first offering and then expanding -- not brands of we expanding and products the you view. the well want portfolio in expanding up the region just cross-sell, as that into under brought having the a portfolio the then to if channel, introducing we as combined the brand, identity Then indirect also beef but continue Norton direct, so

of Basically LifeLock coming accelerated Avast. the environment with two us as our mid-single and and -- managing we digits. NortonLifeLock on but Basically should leveraging next strength really came that the see over and together revenue you together are the capabilities macro synergies years to the level driving our Gen growth

great adds I really over to want just in But to to a net That's you. hear. awesome. second. maybe to back That's Natalie come

that just think out now one zooming an quarter. here actually there, we annual out have guide that the is right? I from highlight

think after a for you right? to changed of reasons, -- start Like your of slightly bit I'm longer what's that were quarter-to-quarter more we giving little gives to a view But that I in was good lot confidence wondering view before? term going Avast visibility that kind or tougher do

integration an timeframe. on and really of as businesses XX% focus we'll you've collectively or question. about running the the we of We're cost say important things Hi the for we're in us new for get lion's Saket, share focus the so Gen wanted to have to perspective what and close my that was changed. the accelerated I achieved. the I are which It would really would that from get integration. the as it's on not heard thanks the deal was say do through achieving synergies

for the full So, to us and really this for performance. everyone right reintroduce guide what year time for a are just the expectations our lay out is

the just to range or a changed. isn't marker mid-single-digit rate of from putting down. bookings low outcomes We're isn't topline So a perspective revenue growth of in new

our are built that of to build to that actions expect the our continue and to plan. we're upon continue We growth taking all into operating

that should are do on we year the we that continue we've revenue With a the not growth plus throughout this financial continue building the we see XX% of And expressed as that. we business rate discipline of cost know will towards we'll framework for. the and to bookings you build margin and new known we're that year build but throughout

that seeing year and we've of behind going productive and that the margin clearly the for laid we're continues shoots growth structure everyone. out to growth put rate the that that rate opportunity solidify as take of put green then support we're within accelerate further throughout scale to still And albeit the really some any to growth the investment

I environment. new, changing say, is if rate interest constantly anything, What's the what's or would

And so last market. you recent saw of what happened as interest with just rate and debt as the the week cost

structure creates And single so just us our for that hike, -- will rate -- another and overcome. it cost every to hurdle

example we're those very to Now profit would continuously cost very be I But there's our that's what's the iterate, which we've as our it recommitting of is and to which one quick structure. of say, anything control, we is been is why if disciplined see headwinds, out would changed, debt.

time team takes as as if this my on as best in Saket, to perspective time. one two these into the are, we to add integrate it the Hey, takes I reality for leaders we good we It is also wanted as can for today. operator build and far believe Gen, as together

best consumer brands are across cetera. from expertise We renewals, the cybersafety. team with all to now cross-sell, processes same all of integrate It have et have all one team the takes that has that center time the in expertise,

just And And quarter takes as after it we least an time. -- integrated QX, have at it full a operating company. now takes

the redirect so is to And confidence improving.

the me current reduction it seen we're the to you've through -- trend we've signs is the end in investment the cross business getting the aspect trend if we We revenue can now early our customer seen from and and trend. And early we the be ambition for would longer-term. to of we count change synergies the post-COVID guide that The at of and/or in of you flush feel the confident have to effect almost there it's had gap success second it. that

looks Absolutely. sort your think exiting if point around the that if of positive could year. of one you the will, flushing guide of on I post-COVID Vincent trend more about I in adds, we net I talked just of through to hangover call comments maybe sort know the some don't on think a trend fit Do color some positive? we any we get of year? that get to of more we about want you do the provide how get point, back -- Any or to how by that, finer on this something just year? you throughout but back to sort right? Do end do this breakeven

is positive would negative, and say, positive. negative Yes. breakeven breakeven, is Well, is I

many breakeven see a week would have and the customer then of confident go to comes note, as that we that quarter we which week this still the long-term because call to I year, customer as on to through multiple you out, have feel we'll breakeven priorities XX,XXX everything It's means said, last we'll finish reducing you've minus almost So have not I we We return go the direct day trend we positive that short into going stop so quarters, the over it move, count that expect trends. over direct growth. we and linear year positive are in could is levers in drive I out, day the quantify, value And gap and five in the on breakeven. seen but and count levers, enough I'll growth. call

helpful much. so Thanks guys. Very

Thank you.

Our of is proceed. Morgan line question Please from the Stanley. Angie with Song go last

you Thank for my taking Hi. question. so much

expenses? down And may cost seeing growth overall this quarter? I look touch some over realize had drive like you think CAC last you generally of you've quarters much. on that it the so you to explain as acquisition this Could just several how and the synergies dynamic it trended trends just up. of maybe been as top to line seemed translate relates So to cost Thank

on last of how can acquisition partner increasing cost Natalie, the it. few a line. depending small take you take for But offline on stable customer within is marketing We'll been CAC think has that direct in our the with first but range is I'll at pretty what crack We the quarters.

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return framework, data-driven our by continue as based we to cohort and investment, see We very on structured CLV, marketing And the marketing and by value. the our entire growth. have and on investment spend the long-term we the for in invest more

over us I few want add see Natalie term, you'll long have as as don't last the going seen know last And we you to to positive I change short months. invest that. say, would rate that? So not if see anything continue marketing you to in trend

Okay.

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

for you. Thank your That Thank today's participation. call. you concludes

You lines. may now close your