Gen Digital (GEN) 1 Feb 242024 Q3 Earnings call transcript

Good afternoon, everyone. Thank you for standing by. My name is Victoria, and I will be your conference operator today. I would like to welcome everyone to the Gen's Fiscal Year 2024 Third Quarter Earnings Call. Today's call is being recorded. Instructions]. [Operator for to would Investor Jason time, the to Relations. remarks, over call Starr, opening this like I pass At Head of

Third Thank Welcome Earnings good and Quarter Gen's Call. you, XXXX Fiscal afternoon, Year Victoria, to everyone.

me Derse, Natalie CEO; CFO. today are Joining Pilette, and Vincent

the and reminder, on press will release. call there along website, a a replay Relations As this with of be posted Investor our slides

release are references year-over-year, to news in We are available encourage I'd otherwise measures and filings. events all and that to all investor-oriented financial everyone call, and as on investor.gendigital.com. GAAP metrics monitor remind of to reconciliation post at like website growth and this our A this financial website earnings rates presentation, investors we unless stated. both to as of the non-GAAP such are during press non-GAAP which routinely included IR information is

materially Today's expectations that from update differ date, statements, call the uncertainties our our including regarding risks to involve cause on business that financial be operations, and a and of of may may actual expectations. business, our performance contains X, such based obligation February as statements no We new XXXX. undertake today's or statements these beliefs, assumptions statements results statements future and events. on considered to are industry current impact and current as information and result Those forward-looking

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

the turn call Vincent. I'll And to now over

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

X-year delivered grew years. In Day over and Gen. have revenue and have we our of XX.X ago, excited in that cybersafety $X share we We as first held quarter, a know consumer strategy still the higher product the expand months sequentially. our another that and next opportunity customer, will goal. few reach anniversary We the our a our X%, QX, We execution direct X%, net tremendous We growth. customer map. road several cybersafety XXth we capture quarter we count quarter to of subscriber were up to celebrated plans our delivered million. our Gen's Only to towards XXX,XXX bookings up up cybersafety this again We finishing and consistent at drove quarter billion, consecutive Investor record

goals our increasing While X since sequentially, points fiscal up focused XX%. At to expanded to margin by demonstrate XX% basis finally, Day, accelerating the earnings EBITDA points ability less our XX Xx merger. strong included we continue another remain mid-single we to Investor reducing revenue EPS shared our we our full power, digits, growing nearly long-term that XXXX. operate our than last growth, and Avast by growing discipline, leverage EPS on with we to our XX%, operating to by And accelerating

entering We're already underpinned upsell, X all and particularly to regions, investments As with markets accelerating growth. In double progress through base, rate Gen's to channels value and we and plan internationally broad-based customers subscriber driving driving here, overall especially performance. making XX%. Gen's growth, digits leading in our our to direct growth customer discussed, our a our to increasing cross-sell increase in QX, international grew acquisition new our is partnerships, retention and by

emerging internationally, traction capitalizing strong markets. connectivity growing see to continue solutions in on Internet mobile Our

cycle. the road markets, Our enable these will with customers value solutions that to drive over integration have life more in and resonating an are us we map

in will growth to our We channels reach. we expand as and continue these look markets higher invest to

In our overall their mobile slightly strong and though current both activities, growing year-over-year shifting quarter declined of customers cohorts customers cross-sell added due to sequentially for these we delivering reported they as ARPU sequentially markets. also mix in markets, making footprint. ARPU digital upsell in with even emerging are value another We in QX, our expand consistent delivered and key headway customer in to

Of of across Overall, levers. course, sequentially retention with key linear stable XX%, integration-related continued was activities. partially progress uniform by progress our and at and QX across brands not offset all is but other mix

a of the strategy. To slightly continues remain into and aspirations our large brands growing of plan, and behind our are our and this strong solutions rollout show base engagement partner, channel set While approach. growth robust solutions, we track a a to and in pipeline the leveraging deals our target key customer we is XX%. In with employee partner the our customer-centric the support and of in-quarter quarter, confident our Overall, on tenant revenue. of trusted partner long-term impacted which few timing indirect competitive of our a

from by the relentless Our named world. Ultimately, to reached Recently, sophisticated threats XX% for high we unique our our listening be increase over leading and year customers PC to XX continue the on cybersafety face parties customers. and calendar Score in Last Promoter of continues ever-changing consumers by their an Gen all-time recognized were ago, QX, around per exiting each And to day. are compared and blocked a technology and XX most by trusted a recognized, all over month, Avast year to capabilities leader billion list Avast and our X for attacks ability of driven and, innovate the third Norton a focus feedback. our our and to of to they XXXX. and Best protect billion quarter, trusted Brands of importantly, industry XXXX. because people Tech increasing stunning every LifeLock be Magazine's Net

and are attacks phishing AI-powered digital a as pointed threats threats individual, increasingly beat your web-based an or are your as but malvertising, many you times, to your moved not as have targeted actors As as focusing social PC these phone, engineering we to well missing and you not such Threat on as scams. live e-mail have out and targeting life. ongoing

remain on and relying customers Our enhance pace the at actors and increasing the different. on we QX was which portfolio. our threat products are us expand out-innovate focused to no

and safely, and AntiTrack We a navigate countries, new securely our e-mail adding and way privately to private with and expanded our their customers continued safe better the the X give helping existing We privately with e-mail Norton our Norton all phishing consumers in life trusted features confidently. e-mail on focus we markets. bolstering web And new scams, identity, a new launch from We stand-alone digital offered and live protection product. browser. regions reach of into private in added in customers

this business, available power engines, our are technology deep to and to of innovative of customers forefront the are but AI now technology core tenant we our and in intuitive. In remains bringing been to quickly AI products of information This key themselves. product our learning more we a help identify AI has security and provides As by analysis November, mentioned new Not our we as Radius. Total only December, strategy. and AI online automated make launched protect interactive all a powered part ReputationDefender fully powerful

technology at Genie start, power Radius of easily lives. this detection protect ones January, great we more product landscape Norton our employee digital channel. how our and scan out Total themselves excellent we of and consumer loved Genie, are achieving ever, protect both app, are launched Investor very their a that confident long-term opportunity leverage people empower the offer To ahead through examples also their from in cutting-edge Norton and solutions to online Day. benefit the trusted offering AI-powered threats. I'll fully can furious AI and our and best and more are have Gen's we In to conclude by The we than Gen's is laid our targets saying threat to brands early

our We for margin all me and will to accelerate pass quarter. stakeholders. And way long-term to to guidance for next in detail the value greater our our execute disciplined continue a quarterly with strategy that, to drive create it Natalie growth, further performance review expansion in let and

Vincent, everyone. and hello, you, Thank

today's was now $XXX includes execution. walk growth non-GAAP growth lines. $XXX our X% that outlook Cybersafety cybersafety, results quarter supported in up by bookings the direct million, financials and business revenue will X% periods, this legacy year-over-year constant in grew I cross-sells through X% USD continued was For constant Avast financial up of our QX. have closure passed acquisition note, consistent the as the by please in was otherwise deal. QX of I fiscal X% Direct stated. focus quarter for first QX in revenue in of we currency. excluding our and million, currency, QX unless results, rates anniversary and another in fiscal full up on XXXX channels. both our is call, followed Also, from will

have us and customers digits to geographic Our deployed priority base and especially offerings growing second year-over-year. $XX.X and customer like and sequentially acquisition our expanded for a to Leading in quarter, international XXX,XXX customers with cybersafety, the mobile broadening we adding consecutive for million, direct incremental increasing remains spend million for year-over-year. Driving new product customer marketing structural X.X is markets. capture our double channels expanded demand growth efforts, up

of to our our across continue well As reach support the markets cohorts. we will into as move all cohorts road to as extend term our product our map new forward, robust over long and retention continue efforts

ARPU sequentially. direct front, of monetization and decrease $X.XX a USD $X.XX an year-over-year the was On , X.XX monthly increase of

As previously cross-sell impacted growth, including adoption, mix. customer geographic many factors, new is by channel shared, ARPU and

mix mobile impacts and and emerging in blended on ARPU. growth stronger acquisition the markets, the we With our in seeing new are customer traction

services offer this lower cost funnel. Within our also cohorts cohorts of and our cross-sell marketing ROI these These into of able While demand adoption, new reflects feeding new out as installed in than are ARPU continues lower and customers' more the dollars. the landscape. upsell in our proving to accretive opportunity cohort to for blend mature we increased these our markets channels cohorts, customers we for products and acquisition into we are our drive ever-changing and expansion be flywheel our to ARPU in and portfolio healthy acquiring essence, average, coverage further to the will a cybersafety cross-sell and on are performance at acquire our scale expansion opportunities base,

to Turning retention.

at customer retention rate Our steady overall remained XX%.

on progress previously, significant are driving we rate our combined first brands, made and opportunities our focused many still retention in a cohorts over we rates across across our the XX% and customer by product features, protection few incorporating offerings retention towards introducing progress products As and rate have we as retention up drive as next improving user make yet importantly, them we and additional to go-to-market our plans, cyber migration and to clearly on products we execute to expect strategies. and forward, omnichannel comprehensive our AI-powered hyper-personalized, And move differentiated continuing services. to value experiences target year customers retention we've the as our more company, creating demonstrating by engagement, years. Currently, in shared new even with by into and best-in-class improve uplift

Turning up a to achieving our key Scaling component in plan. overall is X% business business. Partner to our $XX year-over-year. revenue our was partner QX, partner growth million

a growth pipeline channel expansion accelerate drive employee to further. record through in continue We benefits, plans this and to with additional

coming longer-term excited we revenue, we are partner more objective, to offerings Given to our million business with year. our quarters. Rounding out the partners of the long legacy our the capitalize on channels. prior to across million be our sales and progress will remains in down from multiple the nature $X.X contributed Driving remain competitive will business $XX readiness this billion quarter, $XX nonlinear, cycles, and share progress lines in partner

overall accounts we digits total our year-over-year, a double declining and X% legacy reminder, expect to of revenue. for continue less than As

than was margin enables income year-over-year. Turning outlined our increased achieve to to million, us redirect of we margin harder last, we gains to expansion some operating work point operating our towards in margin leverage the this operating QX as operating up back investment long-term Every goal framework. but model. XX% into of expanding profitability. $XXX XX%, the to growth efficiency We is X% our

These invest in expand progress growth existing our parts reach that our You investments touch and differentiated bolster adjacencies performance the solutions, digital international and new consumers' fuel into more with presence, to portfolio to to to of in identity help will and our $X.XX. Diluted see position privacy marketing XX% was of each life. will us in constant our approximately trust-based customers, to $X.XX growth year-over-year. amplify strengthen continue product Interest an year-over-year EPS expense million up in debt X% of accelerate to our and was and and related was quarter, next EPS million, X years. QX XX% levers up net the $XXX to mid-single currency. digits over revenue QX, in for income the $XXX impact up especially

repurchases. count our non-GAAP rate share steady year-over-year, XX%, Our and remains down ending of impact million, X tax at reflecting our the was share million XXX

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

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

our down Turning net Loan to QX, XXX% Term and are free returning $XXX and million balanced capital to capital committed shareholders. intentional allocation. deployment cash now to and with we paid We remain B, flow In X.Xx of are our of levered. excess

We also deployed opportunistic of $XXX shares. million almost equivalent for repurchases, the share million X

have We in our approximately remaining program. million current buyback $XXX share

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

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

Please include a tax debt of do January and our Xx. available deployment, metrics leverage opportunistic approximately our a million debt disclosed and/or XX%, net. With refund and prepayment share capital use delivering approach help generation X.X and strong that down increases domestic to capital our the flow to paying cash net EPS QX XX-K. of to for in losses buybacks, received and the cash sheet tax driving year payment X.Xx XX% at not point our net repurchase of will balance leverage 'XX share above reduces achieve It's to This associated balanced liquidity. goals continue in growth our and below disciplined $XXX we note cash end with fiscal by we

Now outlook. turning our QX to fiscal 'XX

the million. For revenue in non-GAAP QX, to we million $XXX expect range of $XXX

non-GAAP to of translates to year QX to We This $X.XX expect of $X.XX. and billion non-GAAP revenue the $X.XXX in range $X.XX the billion, in be range fiscal be non-GAAP to EPS $X.XXX to of to in the $X.XX. EPS range XXXX

it's within end in Investor mentioned of factors our low growth Day, While year plan. we long-term the this guidance at is steadfast we the range remain we result as Yet, a November our of recognize full at provided in the earlier. some driving

disciplined We on are focused delivering excellence commitments, and in always balanced our and manner. operational on a

the direction. Our trending performance indicators right are key in

resilient. look in progress is ahead. the on mid-single-digit We're strategy reinvest and Our and our to working, sustainable and value reporting our over is long to financial term. profitable shareholder committed drive to growth model We forward business quarters in our create the

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

line [Operator Kalia Instructions] Our first with question comes from Saket of the Barclays.

my growth when of start little Natalie, little of was and growth us think if maybe question is, X you. bit bookings below. The revenue just those see. Maybe help converge? really I to X% could a maybe the was I'll start was those bit, with X% wondering to you do metrics first you growth X bridge a good rates

sure. Yes,

a up row X%. quarter for first, So look be I proud look, mid-single if in bookings in it, second growing to at the we're digits,

excluding an all, is to of by in in revenue, and spoke of a and across you that, look the not basis acquisition, really grew When revenue, you keep at the revenue we portfolio, quarter, as-reported is broader cross-sell that an FX when across really brands, acceleration cybersafety and last excluding headwinds, growth look on obviously and as-reported USD. only you that by includes into stable the then first basis, introduced. And legacy, lines X%. business DTC mind take products that, the at that in of customer legacy we privacy out on this coming it's strength the that and driven the quarter driven identity we've a but retention broad-based, reacceleration through success As

we as So that rate feed far deliver over a off of growth, revenue of scale to on then quarter, with of bookings continue after growth. as And not continue quarter that will and we really growth converge and to eventually rate time. bookings that

some the was the ARPU gross XXX,XXX It Vincent, I changing. feels like the great profile some for see. maybe highlight you. my are Listen, or to newer for the me net adds. for for follow-up of though, better adds was ads of for the mean,

So think comes that early of as we about think cybersafety, that ARPU? the do conceptually? what talk maybe formula about the should comes of base installed about mixes different do from growth from it's this, think but How versus sort of you in to you you about think what sort

will indicators is mentioned, Yes. direct. And rate, count which discussed, flow or to the the booking then X for and one growth is just leading that we that to indirect Natalie, this growth we the Natalie bridge into business your first P&L the are and second back the think first I back X%. question, then And have customer is

right. You're

drive And managed time CLV over our our the for of So record, is actually take in economically NortonLifeLock positive very the life channels at we grew cycle overcap of million, all one Every direct in customers, channel is the with plus We right? will So the the discipline. customer has Avast XX.X the that by important. right? very the of quickly we're of we sign And that sequential we're of AID in our have discuss more back a second or marketing a channels. channel. a row. little in presence a investment bit definitely momentum sequentially balancing that going a the achieved record certain, November if noted when all then to across capture So merger, at quarter. We and we you count did quarter that together, the strong been

For closer line the identity, and the emerging traction. last versus to privacy the been security has markets X quarters, maybe internationally,

you in ] average and $XX you towards and at country also into is in ARPU $XXX. when developed emerging that time mature shared fully then in ARPU the emerging $XX developed get as markets, more is move and We [ and

mature we our is of there lives, we upselling. as channels and expose a that strategy. And we there, good their know been customers have protection new new continue because a to or our digital we we broader space very Now strong have has to and cross-selling feel enter mature of capability channels and to chance then

So we're that's how doing it.

So to of looking Gen, all you driving one each we channels the has -- at then metric and cross-sell, the and ARPU want, the aggregated total, will mix, for the ARPU, that in across we're consider upsell those. if on

The next of Stanley. Fodderwala comes from Hamza question the Morgan line with

metric. is or a I'm every below progress international did say, not the come subs function paying NortonLifeLock had come But expected? of just if would it's as the improve wondering your incremental subscriber, down the did have will, much linear mobile did churn just rate higher across that let's understand you in your, more higher for Vincent, that of always than didn't if expected or subscribers, ARPU expectation. you clearly, a mix as you

still let down, growing and dynamic. ARPU the So but they is me address obviously, year-over-year, the is mix. driven combine, is in by both, Definitely, sequentially

one in discounting the We are not more each channels. of

we seen where the we're the more momentum, dollars, we we to allocated our with of maybe in prior So didn't a ARPU channels, very channels going in normal lower to was economically we allocate case, you, outside positive business And some of the little long be see all this term. quarters. and of but had dynamic quarter see in anything marketing that love towards this honest

that. So good we feel about

mix entire So that's ARPU the shift. dynamic

doing understanding in -- of actually are of to set. below drive This new have merging different we with we about activity. but different We're our big we And be key the day-to-day product the retention, preparing trade-offs We're real-time things talk campaigns, to now the year of And common stable some plan. the platform. rollout you improving slightly our to move allocation is were resources. the quarter-over-quarter. also When were areas our

in we think get as we out, not did as good our But not had will may want. very that plan, to to as progress but much if feel we I really we good. XX% continue feel quarter So exactly be we improve you in, overall. linear, our quarter it And

and mistaken, [indiscernible], inflation taken topic the the value I deliver I some record for the if years been and your of to really over to And high any know driver raising through is of you've price I'm has just -- don't cross-sell. prices. upsell last I'm continue of But think unless are you peers couple main despite on what

about that value So taking curious you're price perhaps I'm thinking just going the you're more for how delivering forward.

value. very for to right? is strategic us, pricing we So are And really pricing

for So features true. the with new keep constant we then in the we we're want always obviously have and constantly to pricing customer price X adding innovate, for expand, a growth, think to towards the into our not quarter. key And to partners expand new new rate pleased balanced cross-sell/upsell, a we cross-sell, price and with levers markets. and cybersafety, X say add of want price last the take overall, at deliver if that its looking to mentioned, the right? We or And to more continue coming didn't delivering that's upsell for our quarter when provide also them. increase, I you cybersafety to adding to definitely We we approach the expand as value market, very continue meaning features. this in, membership, growth and want, We solutions, and you

from comes with the question next of Peter Evercore. line Levine The

are of these X or dynamics up? met curious to of into off of what's your -- the kind start started to year in these happening you when know to the Just November, it first the see as shift last just assumptions piggyback you end think Was see since we kind to you what And quarter? Maybe of of when towards of kind next QX channel. pop did today? is, the then within the into mix mid-quarter kind about

Yes.

of we're can said kind September, good so what of strongly profile the of the we model QX, reported in international indicated you them. markets at we and momentum can with emerging growth, -- Day, we That's the U.S. in new outside we as we markets. quarter as Analyst So by finishing of first sequential customer know, those

to with We thought going now We trends. it We down. at QX, marketing sustainable. QX it anticipated. know we dollars Obviously, put those it I you stronger quarter did between annual progress in when and it, sustainable making plan guidance have and would We'll more now pace especially give give into And than want. into in the retention. was of they into things continue There's continue if think into saw we happen plenty sequential experience We that slow of was then, to QX. carried a 'XX X indications can the we May.

of In made actually, -- the terms retentions, mentioned, across we good brand. progress I we as

I we Avast and changing -- So closer to from making the there. nothing a to where the Norton have good see fundamental progress brands to that the aspiration we're and you know bring is, progress

preparing In integration. terms the more certain integrations of trading off day-to-day were as were for platform through quarter we initiatives that for

I the Maybe double think about like employee those, you comments channel. down if of benefit was versus traditional just customers there let for the the cohort Maybe for pipeline, the made what and the kind was channel. record talk varies cohort interesting, think, know of I shared looks ARPU can your how you one like of that us customers.

curious share, that becomes can guys. Just you to when that more you meaningful anything

of right, have Definitely. benefit is multiple partner, we one In employee channels, them.

We have the telcos.

some of retail. We have the

different which business, XX% strategic have between have they behave They We and all is know. your well. compared DTC our revenue of normal to relationship also business, as bookings partners differently. as slightly you And your a the

we're bit optimistic LifeLock, a terms In the grow digits. we Each little of over time going these the different continue sign-up but lost very here it. terms double an times XX% to is deals, of a XX%, and immediate of very will to and can which those channel during than full employee higher initially to we a 'XX with in lower the time. may deploying takes ReputationDefender, closing We've and not those protection the to and product, may bit fiscal year be to certain taking the then maybe average, as channel, into membership it the basic new installed impact employee identity deploy. We're those deals, but adding base proposition, have of been value be started carry also ARPU Maybe carry close benefit way pipeline. base, all close more structure into delayed growing our

The of RBC. Hedberg with next question comes Matt the line from

guide, are guys just of guess been the specifically and don't adds have ones you questions Maybe answered you've in embedded guide of is I is -- But to my times. question a But the QX But a I just ARPU. that if on could kind QX should sort of in ARPU. bit it upward that similar guess more little there's us shorter pressure, expect continued some of couple the net long-term the clarity to the I bias asked. Obviously, mix of first kind assumptions. probably we sort that guess, couple on ARPU kind of wondering of piece, term? you of something give a specifically, your sort to of

Yes.

-- -- with of adds. that down we Matt, X to when and be don't customer now the sequential see a see. the I metric, we -- heard ARPU sequentially you X lost look, we And like about in we see. I talk we quarters now Vincent think of quarters momentum want that from what overarching

it's guys think and can as I much as cohort level. explain happening what's to the understand to you we important at

ARPU about for a second talk just first. let's So

for really expand you with successful growth the lever heard be manner, as different cross-sell. a continue not as product and we If we recent quarters. only drive especially for robust the cohorts bring down, as online see many, we seen back to and expansion to again a in you internationally, and new it more as market. the to many that products And break we forward, that row, levers more driver we a that been in and And of one we will in adoption November, in continue a but has ARPU. to continue in quarters That portfolio come core as in us and business, drive many, we've main have of our see

to And continue we then drive growth and been in in we've explicit money the said the burn don't very expansion and cohorts, at parking marketing We've economics when healthy. other will to very look but they're the drive lot. diversify that you and we of invest

the quarter-over-quarter, as quarter-over-quarter, the together it the cohorts is even So at within looks on basis, a and down cohorts, metric blended mixed top healthy. it very level down they're

what And about over prioritize diversification, as other. the at cetera, and the so sustainable look look customer most to and fuel can acquisition we to come that they the at the a through the we we or market, and And where in we and that come for all be as they approach. behind metric in as put don't It's about going we is we're all forward choosing solutions definitely et it's as we is achieved are funnel, of pick compared channel growth. look balanced choose the time. What and dollars, which to, looking opportunities the forward products performance marketing performance one profitable or fruitful growth. And

how got to for driving out disciplined for that we is we that that approach decisions, it's and math flex what to we Gen. going all look you in, and different the and that a guys those a it going together make we've comes that's Now healthy out, make is is as think one that quarter I quarter and sure are to lay balanced diversity

And too, was on earlier revenue. benefit employee an then there the question,

quarter? a out of that right fiscal huge we're to way a clarify, that's all. issues. in me thought that XQ, slipped that said 'XX also not the didn't timing deals That's want kind now, We the expect like you about It to think of just for I shouldn't you to XQ. close this that the revenue Is opportunity of we more -- sounds

QX into slipped Yes. Definitely, put a into few forecast. did year we our deals them fiscal 'XX, not and key

where want one that to make I That's we... another sure

They're loss, going a to so... make not

are sure Yes. I the the want been That's to funnel robust. make really super It's another and we reiterate like that driving quality. is just diversification, there team message stronger. EV incredibly The and really is expansion clear, increasing never

in having an we're really really, really that. the and So a we've disciplined to hopper all got That well. scale. doing of deals is There's team excellence operational just And approach. size component

our to being customers deals, great the being We're of way integrations partners but we look size we I of these can partners those it, pretty as the scales can as, And look a different say they it complicated. lack deals, EV and at and -- for better to we're when the deals, manage partners. be be at just great

commitment the we delivering And timing just sure as side, And integrate really to to times, then on are that and so work components through their our eventually absolutely at are we're they them. it. there on making integration

how never EV look funnel would the that's to stronger. Again, guys you has at So encourage been it. I

question the Bank America. Eisenson Jonathan line The next from of of comes with

I X. just have

just first you of throughout quarter? the can is, question color plan on deal So any injection be aggressive touch then the my to given the you can linearity on on second cash? buybacks, And is, you first how give

Yes.

I won't deals the those together, now be a critical you We add reiterate linearity, linear. What of the we the know revenue. So call, long here very of at talked else and what reiterate And laid about how to term very, attended partner timing diverse. channels Investor for plan that partner. quarter different is, they I the and channels out the many out, our diversity on those over Day, would in, I our we million are deal just growth $XXX talked is of us. about quarter but so -- Investor channels the everybody are Day, the partner like for about incremental channel come would partner And is we've in they

that guys the give aligned that the teams way. on progress towards to along and goal driving focused you that, so And are stay and we'll updates

as have balanced and for of buyback, had or QX, deploy again, terms allocation. November, had in We for capital on prior had that We out million aggressive, And then down that in balanced but $XXX guys receipt we I $XXX pay will share how -- we'll share of continue then already us QX. million, the ready to that approach. approach And go want in to definitely comment to going terms to for we terms like now the we're in accelerated available already we balanced to you said, in earmarked don't conservative laid really and that of debt of have deploy. we buyback the is across a

from Barclays. with is a follow-up Our next Saket Kalia question

and I business benefits could. maybe partner Natalie, one pipeline sort and of follow-up, Maybe employee the just for you, so that if great. the sounds

dynamics contributed how here to assuming about here was quarter. in a I of in right, and quite the a finer Just necessarily what some given revenue I'm some are of that just point revenue of QX maybe could deal you delta much we've impacts, benefit that the talked now in we there's in business QX? ARPU impact I bit. what didn't some put that if partner mean, clearly, curious the QX, wondering on that was But

level Yes, say, let's would look the at I top look, number.

midpoint that. $X I on midpoint. about of the let's the the into delivered versus we think that guide, just versus That's based what million in performance QX face

into low And is of to a end. handful things on go nothing There's miss going be us to that material. the midpoint, $X that delivering million the so approximately

coming growth of talk we the the partner contributor. The et cetera. a customers about had bit is that the fact little deals There cetera, coming et so of are a levers talk that and And the our mix some. about through we when FX, funnel, through

So up nothing a all delta. material, $X is line tallying all on in, item million about basis individual to an

Hamza comes Fodderwala. line question the from final of Our

Vincent. sneak for I Just question to for final, my in a wanted product here

for seems products given proper educate road are the cybersecurity of what the seeing around we're of Just organizations are for world. to potentially And like a globally there consumers. of the -- deal that threat them cyber problem you forward? I'm sort AI, for elections any on as It just having going the ransomware, could AI are the partners, of that specifically that hygiene? map the And it is on environment deepfake sort issue, with customers, much as your rise curious, with deep on doing fakes, is your that that the with really with happening

with have absolutely. strategic. lot activities we so partner is Yes, why And partner, that's a of

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This concludes joining. Thanks our call for today. conference