Gen Digital (GEN) 9 May 242024 Q4 Earnings call transcript

Good afternoon, everyone. Thank you for standing by. My name is Joel, and I will be your conference operator today. I would like to welcome everyone to Gen's Fourth Quarter and Fiscal Year 2024 Earnings Call. Today's call is being recorded [Operator Instructions]

opening to would Investor Jason for the to Relations. time, over call Starr, this remarks, like I pass At Head of

You may proceed.

Quarter Good to Earnings Joel. everyone. and Fourth Call. you, XXXX Fiscal Thank Year afternoon, Gen's Welcome

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

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

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

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

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

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

and our finished with year and our with earnings what cash QX fifth with of you call. revenue growth, joining it at Gen, transformational -- board XXXX and and year deliver revenue, strong across year afternoon, was. first Good Thanks, flow. year record and our thank for the results profitability year We full Jason. Fiscal organic operating the 'XX was a fiscal all

quarterly tremendous you will year on opportunity in full talk meet so our opportunity Natalie put more details I but reinforce in positioned performance, and are we consumer the to our like moment to results the and to a in the take us win. of financial to consumer right why through and confidence cybersafety well aspirations. track take cybersafety annual QX about Our and long-term would our

times, have this You different. creates heard are risks pervasive is and just sophisticated. bigger, more me more the they're say life, life many but now digital are They're getting more and it

those our the hear banks, government follow. makers risk telecom a lives from quickly of nowadays, providers, one from As first are online, you XXXX. health stolen are about data no but cyber care being here months that everyone know in Cyber way to And Gen move these few and protection stay, cybersafety dynamically as to just you can companies, risks can. organizations. else comprehensive even look Everywhere [indiscernible] bring we leading

In complex to an always-on privacy, and your world, assets. bad financial have identity ways threaten actors

in and intensity sophistication dating have all tenfold seen the The delivered notifications, increase user-centric phishing security. year-over-year. of focus leaked by use generative the AI XX% emerging phishing in on dark actors and threat web to device spear campaigns from attacks, up PII the are technologies the Targeted accelerating growth shift with significant which malicious of majority were malvertising browser attacks scams, in increasing through We a scams of and massive social-engineered push up year-over-year.

core that is services your their monetizing to do rapidly cybersafety a the safety as even providing of delivering threat convince Many but interest most consumers try or others continues consumers, market and dynamic landscape evolve, have And important will data. to so needs the in them, to other compelling opportunity. substantial their

using Unlike XXX keep large. 'XX, day many a with threat we most tracks. fiscal data new train blocked not product side is are In the our to those year on that with important catching to another X with do. threats. threats them we up odds their deliver players, stopping our teams and model. business can is petabytes cybersafety that patterns update and teams and mission telemetry anomalies In other on the in have we times scientists sets who and at our and dynamic and our Gen, from researchers up XX At models uncovering, insights data labs, are It to attacks over our something so thing dedicated be researching AI we consumers billion can

all The an combination second our and on with when having ecosystem, mind and way for and none. us visibility our of millions those we protection alongside of continue the to expect to strongest, entire of stack developed most deployed the value plus to cybersafety, in consumer in relevant customers. delivers capabilities technology And in market-leading the is with across and that devices you results engine platforms technology AI major add our people that lead peace loyal

are and foundation technology the most comprehensive and people product the complete industry. the in Our portfolio of

real-world our just to to We all online our a important offering are consumers. other privacy, they as have their customers security, whether as product managers, make designers of identity and features specialists that that find those on needs fit engineers, also fronts deliver, facing or threat we our we the all covered ways demand reputation. And

believed up needed, come all-in-one membership with was it were first wanted we cybersafety to and we because the consumers were what right. We and the

Avast along of we offering, to their the customers risk based needs, or XX% cybersafety security, with membership, membership tailor continue the on and adopted their the privacy value So expanded own and we One features to into preferences customers Identity privacy as membership or through our Avast of offering identity and that the tiers, new Avast enabling launch coverage performance have grow see internationally profile. over the and release of the

cyber Still in we the or delivered life with need point person the the meet digital same specific know value customers that looking and everyone our work While believe many needs only for leaves at of level. we for are member the those also and to in way each today, the innovation threats their solution, strongly the are consumers. products understand we same all in not that hard tiers, delivering on at our

it launched With free January, anti-scam In our Genie. additional conversational At XXX customer satisfaction anti-scam in gets. the first It's we if a great days it me. we this or used, pocket, the media the better X.X ask post assistant million a And a your featuring just with downloads if more start is that Norton crossed scam insights. Genie April, X was Norton social text customer thing end called you high, stars. rated AI-driven app UI and for determine a in can good of is the is

is your which to take we you of Radius XXXX. in automatically online content Total is digital Another help innovation we that and Total fully a quickly XXX-degree actions ReputationDefender information January your fully are analyzes Radius, launched protect to tool proud on that reputation.

consumer of in insight consumer-centric new risks trends emerging real your with and to to the time deep Our landscape deployment seamlessly generative the privacy and and technologies. the do bring your of simplify visibility want cases. key threat approach it online digital We about ever-growing consumer protect transactions, use combines AI through number life,

and Gen we will our now adapt Gen. together more things about I these able like of new bring can be customers. to the one our with quickly to later, needs And which stack, will No meet more talk

has what it proud can't a Gen, been of for Truly transformational how I tell team has I and accomplished. year you am this

Despite multiple the in and volatile regions, things were with definitely our very those conditions this business: that conflicts rates currency changed challenges, Some fluctuations. out team world control spiking real interest of dramatic our macroeconomic delivered. and

the have customer in paid to year quarters, we customers, total consecutive We million which of of now millions direct, and For X full last and over for XX fiscal to growth. XX of returned our hundreds are count the million users.

our engagement greater showing satisfaction are and brands. of customers our importantly, across all More

the respect debt. to made when cost our despite change commitments to we well as With the on acquired of we Avast, delivered very material those the we

On we didn't and of we We reduce faster raise the that In top terms synergies, we and that, of cost worked front, it NortonLifeLock just of assets and than beat did best expected. Avast. on together cost.

industry the the a And the modern stack. delivers engineers, and over X have full things it capabilities call tackle managers technology and which Gen platform. tech tirelessly the XX to laid months, tightly integrated We create portfolio stack, modular the our like our We of by designers to our consolidate worked our of way. single, integrating foundation scalable cybersafety suite to accessible last and product to our into leaders more customers fabric a in

we empowerment a new released countries, with increased customers that With our to Mac year. a through quarter, as contextual phased we natural selected stack through new the Windows marching communication tailored of in Gen we fiscal our on and and for towards unobtrusive. vision are our move majority in platform this of the approach new new stack, experience XXX This Norton personalization is

enhancements we will to AI and us. been has and a more and better improve favorable customer and only and, AI will upsells. believe, experience for lead innovation value-add cross-sells loyalty become

to new we address new the continue in our We'll will solutions threats. AI enhance We portfolio and types also to bring the customers. to way our of them expand to keep investing

of time. will as addressing set that over keep growth we know our accelerate growing We this needs,

enables the just and verification, and deliver to us we're threat financial data on people's insight mission road protecting addresses technology control which AI-infused started. our Our of security, map, and getting safety, and AI lives, personal into digital with empowering landscape a our combined

customers identity year to full had X culture of Before thank together. I of our the and to loyal adoption our first customer and strong our direct organic another I net delivered established pass almost it with We offering, the year. mission-driven do Gen growth; and our of fifth year adds; million want Natalie, in strong team for

that our be increase to our to profitable innovation have execution centricity, and us reach, revenue and deliver together enable growth of prospects. value. and excited disciplined I our prouder on not long-term are of could about We accomplished accelerate will shareholder confident course, and, we customer more what strategy

I seat sounding continue in be and trajectory. successful if and know Gen's a would help Board the industry on dreamt along of will has now from as to I I his to remiss together about of step transform leaders course, ago, the and this he And with thank remain his putting Vlcek will down of a decided leadership our strategy integration, trusted for team. bringing to part years years still Ondrej board passed, our didn't Finally, Ondrej Three cybersafety. supporter he have be President. Gen X shape future, Three I on of as Ondrej big will consumer Ondrej contributions Directors.

performance that, year our to guidance and greater with detail next me the review in and fiscal let And to our pass quarter. Natalie it for

you, everyone. and Thank Vincent, hello,

acquisition full metrics year by rates, financials for annual stated. our our therefore, XXXX September call. up our outlook through For near on of with I XXXX. otherwise growth today's Avast the walk Please fiscal results, throughout recall select QX I call, that out will and wrap financial our fiscal year-over-year I of and fiscal will for will QX non-GAAP results, followed year our full and break closed XXXX unless second and today's quarter end relevant comparisons in focus

pivotal constant for a direct across growing integrated XX% regions. in growth results, year currency, was base cybersafety straight the and year growth. bookings constant Avast, currency. our revenue, XX% as total in finished XXXX Avast's year customer year historical X% When delivered across billion over and returned $X.X with and our of with geographic broad-based to and we increased organic fifth including our Gen revenue in We growth USD Fiscal year-over-year in

$XXX we delivered and original synergies of our million the annual previously months Avast of than planned XX used achieve We $XX cost acquisition, this. more less than cash plan, million within nearly to

XX%. fiscal As the operating margin full of margin transaction, exiting expansion XXXX points since represents of operating over of net was billion, at X XX% $X.X full the close This a result, of year partial the and with income year reinvestment.

and guidance enabled the our currency. X.Xx full discipline the strategy us our down also in XX% deliver X% continued with prior EPS, made top net our line operating from capital constant and the $X.XX allocation reducing in strong Driving time at of in up line to up from merger. year significant leverage to and progress We've year our growth, X.Xx,

the our chapter look with we priorities the fiscal largely strategic behind next XXXX. to Now us, forward into driving integration

also currency. QX $X growing reflects QX exceeding of growth, record and results quarter performance. XXth QX billion the bookings line quarter, USD to consecutive X% financial constant $X.XXX bookings our Turning for guidance. in year-over-year X% with in constant Cybersafety a grew X% in our in second were with currency. consecutive billion,

Total also was constant million, X% USD year-over-year in revenue was currency. QX constant $XXX Cybersafety increased up up and in X% currency. in X% revenue

X%, scale primarily cross-sells the Norton revenue our privacy by and U.S. with particularly was our adoption as up the increased market, our through of higher-tier performance Our LifeLock revenue, growth memberships. in driven offerings XXX and we membership

in our as identity more single markets, markets we was digits international drive as continue partnerships. And our in constant disposal developed we population. a our all market maturity, for In to execute the on levers growth awareness varying in and broad-based currency growing to high we will drive manner. growth expanded capitalize emerging to levers mid- cybersafety mobile-first With to profitable growth be we degrees of at continue the different, our growth on a will double-digit

in X% Direct constant revenue currency. million, $XXX was up

progress We performance across are our key making metrics.

execute growing of strategy. scale all we year, in is in installed as Our prior to base value growth both components and our healthier compared

Let new market customers to $XXX,XXX sequentially customer acquisition. And $XX.X we while have key to growth our and QX, more me A ingredient performance. reach specifics. consecutive to dynamically generate is over for quarter, year-over-year. new the the customer To mix the up traffic of growth, some then increasing our expanded channel to sites our share we optimizing XXX,XXX drive invest to in continue driving million, this help in diverse third strategy base audiences, over

acquiring markets adds is base. across are ROIs brands, We coming And devices. our positive channels, international at particularly set through diverse growth acquisition healthy mobile fueling our all renewable of and our new growth

as the USD against Japanese $X.XX negative versus particularly year, quarter $X.XX headwinds last was and X.XX, note, through given of expect ARPU dollar's year. this year's yen, we with rise continue line impacting monthly up monetization, On to last in But reported fiscal and direct reported, comparisons ARPU result results. the these over the our next the headwinds absorbed FX

nearing is commentary With of on drivers basis points across efforts quarter-over-quarter majority base, customers, that is operational into cross-sell model brands. our Avast customer X our cross-sell a additional Norton, expanding learnings our the the ARPU. of said, year-over-year go-to-market the the This online let a with QX, Norton and past penetration LifeLock XX%, Avast efforts, which reflects ARPU and synergistic quarters. me In provide brought of from the up LifeLock X on up the over the vast and growth and approximately

basis, year-over-year healthy was and of the balance measured point a In ability ROI, mobile another stable ARPU ARPU across both on addition, channels. customers to our proof on customer and quarter-over-quarter costs, the a with acquisition retention rate

growing offering upselling well increased will Demand cybersafety our cohorts, or Across additional higher growing journey, for threats evolve suited protection continue we to cross-sell footprint. products. through offerings of is digital through their a drive for customer value their comprehensive and expansion our protection with tier needs cyber positioned their portfolio increasing to for as a are membership, product we broad more

over XX% strategy since X growth our point XX%, key progress A and years, that rate X.X by overall few to quarter-over-quarter. rates points increased is driving improving in This the In our over by to retention component rates the with retention made as merger. towards and improving X year-over-year increase QX, first X every in for brand our our drives Gen, retention. engagement customer over target to and we in operating portfolio year increasing year-over-year retention next have

while experience forward, and experiences leveraging simplification, our our have have creating and And want. providing we opportunities through customers loyalty personalization. we through many additional retention lifetime team we look trusted uplift and journey. already to to drive are we more As the technology although have higher expertise rates our the their expect customer we the ensure optimization we drive today, strong to industry-leading customer increase brands across value And personalized

Turning $XXX to X% in our million up was partner QX, business. Partner revenue year-over-year.

in employee We have record pipeline a benefits.

our $X.X growth Private revenue continue in partner achieving is with overall partnerships Browser. component a and we to strategic have Norton plan. strong our newly billion Scaling in financial key providers, to seen annual already launched We our to and traction business build insurance services

and forward traction of sharing in multiple look We the across proud more channels, to are quarters. making coming partner we we're the progress

lines this in prior our Rounding contributed legacy million million down business out our from quarter, year. $XX revenue, $XX

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

expense maintaining $XXX approximately to income gross the million Turning have per XX%. QX up was to operating XX.X% the of time employee. above $X representing productivity operating of to right-sized our We've the year-over-year, an under from Since of profile million, X,XXX down while our XX% of at XX%. over close employees, of profitability. revenue, operating X% the of overall full-time we reduced organization translating margin X,XXX margins from revenue merger, merger, to

see with in expand as invest fuel of You and to into growth our adjacencies amplify our technology to levers X us as mid-single digital revenue existing new differentiated privacy, position each customers over progress will and and especially life. next our reach consumers' to our the growth These product identity to investments well more and digits marketing will continue in the to strengthen years. trust-based bolster to parts touch presence, international that in of portfolio product accelerate and solutions

to into reinvesting revenue, growth. approximately any X% productivity functions We of our levers G&A further will continue at for operate

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

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

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

liquidity, balance million $XXX billion, was flow QX which was approximately and million total of of cash revolver. QX supported billion, cash by our cash the this included interest received $X.X $X.XXX billion and tax $X.X cash payments $X.XXX refund quarter. We free in January flow and of $XXX billion consisting are operating over ending

intentional capital balanced We of the our $XXX million excess additional down paid deployment fourth and XXX% are committed repaid free voluntarily flow during cash per million maturity returning allocation. capital Turning with TLB schedule. of to shareholders. with to our our We and remain an $XX to quarter,

levered, are repayments merger, X.Xx billion year with time fiscal We 'XX. in at from the net X.Xx $X.X in at down now of

year also of and the expanded to We the 'XX, a this deployed billion announce current quarter, Since of date to allocation the have repurchases $XXX $X.X to for expiration to pleased share share XX has no program repurchases with fiscal we strategy. million we're deployed future Board shares. capital million equivalent total of buyback our start $X our billion, support recently

shareholders the a We common paid to form of in $XX dividend regular $X.XXX quarterly per million of share.

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

our billion growth disciplined by of now pay our EBITDA With year flow and onetime down debt of $X XXXX. continue we net achieve unlevered, Xx driving deploy items, buybacks goals nearing strong capital opportunistic delivering to generation XX% below help to EPS XX% cash excluding our deployment, share and and will leverage to fiscal

to and synergies improvements bringing in returning while driving structure executing our business, as growth base XXXX companies summary, retention rate, In by one integration large revenue year our was cost to commitments. starting and fiscal together customer X about our scale our increasing our operating

We since the have accomplished merger. a lot

to to for with into at are Day margins Analyst world-class, looking investments digits. shared accelerate mid-single growth X make in in Now our the structure disciplined outlined we growth our our to initiatives, order X organic room forward,

fiscal outlook. our QX year Turning 'XX to and

growth by currency to of X% full revenue $X.XX expressed constant range $X.XX X% For in fiscal translating X% cybersafety expect year supported in of in cybersafety to growth year and expected the to XXXX, bookings billion, to billion we X%.

an to non-GAAP We representing XX% EPS XX% of to of annual currency. in $X.XX the be range expect in per $X.XX increase constant to share,

reported past FX the depreciated from the primarily now over we expect impacting and continued that at headwinds multi-decade Japanese which is revenue note yen, year our lows. Please has

currency. X% of $XXX of to the growth revenue in QX, EPS the $X.XX, XX% translating $XXX in and For range million non-GAAP non-GAAP expect million, to to in cybersafety; QX constant range to to $X.XX in be we up approximately XX%

new are long-term We Day As with remain we we we in plan. year, growth expectations off our back out steadfast the kick Analyst XXXX. set in our fiscal at in November line driving

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

the Our indicators in key performance direction. right trending are

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

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

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

that out, actually provide stuck said, outside maybe Natalie, there what moving I of Can of a you of think one you kind truck-based into little you was comment just adjacencies. provide? new kind color already

that Peter, take I'll one.

we would that AI-infused AID, membership Avast upgraded which we that I the side road very started stack. the to So deploying shared XXX structure, now a with on right. map and Norton gen on new at refer We've strong the

that different be so value. flexible which we're more enable strong a modularity, to usage add And scalability, out. to customer a lot of able a much perspective a and we'll very from That rolling

progress. membership again calling years, like already, had to going We'll of move added management grow Genie anti-scam the into protecting We Norton financial you last reputation your the X to deepfakes, other into over ] and discovery and services. [ and transactions

years, the features us few over next So see to areas. launch more these you'll into

how for downloads you what's If million you monetization to Norton trajectory kind Genie, of model that do terms do date, customers What product? what's I into your of baked term? you in longer pay? the think the -- are And think think monetization to that about willing have X

this not We grow we the and we model. AI officer to using models our you our we first it. today, adoption develop The how see to was that's want, have, our generative first in building the really in And goal continue new model. we to strategy. wanted people the Yes. anything vast data don't That's AI have foremost, interact security and with develop for pocket, their if and interface that their

aspect is add features. second to new The

scams voice e-mail text, and and towards to the from moving others progressing value-add. So

third of is you X, with them X acquire course, the for Remember Natalie, as protection. membership, part to of features, move great but that to new where from mainly can, moving the cross-sell retain item up The feature membership. is, customers, into full

So then level, level Genie monetized it's membership be price our today. is price. name, you of into only know, And And the be and which with which model a for only at up some project not But it our our -- value. the integrated will we version. line the as then, we'll come in then and would down Pro,

potentially a the these But your you. last And over seen I'm don't environment know the anyone then can we've and does predict I the past X, X that appetite repayment to next, Focused one, debt given for repayment? point. of if Natalie, weeks, go the on terms Does to what curious on quick. term? at appetite buybacks. think environment, versus in rate debt this capital months. front that near XX little macro XX rate today Obviously, the cuts your change in change deployment, here where more it, call

for change about community what think the don't what of seen number a people I terms talked expecting mean is we've we've in cuts, much rates. et cetera. I external too -- the of

the business lot our it way And lot but along the deployment up the is opportunity. of beauty our latest happen, tracking Of we're of a we've a of right the capital, in and model cash course, choose from I with greatest generation, we what's to to flow frees know which got news. allocate going and don't

most most deploy our competitive thing that at creates And shareholder every capital, profitable we're the value. the time the we option, looking most

us and buyback, going made paydown. generation see fronts. you And approach disciplined cash both that most we've year But with you're flow right progress repurchases advantageous to in our so business. same and into And debt turning notable fiscal across strike accelerated that share deployment on 'XX would to the share the encourage expect continue the for I capital to balance

of The next RBC. question is Dan line from with the Bergstrom

stack, to you on to It's mean Say or talked go a launch phased exciting. the the Dan there, Matt Bergstrom plan for approach obviously, around can what Vincent, of about Congratulations Hedberg. thoughts maybe you how more Gen rollout. that that.

The Yes. of was be this and can full Part map, better use but AI a more user road the client have experience, to We back that in end. of the as over new end. evolved the built you it idea partner to a were of run more a security years, become becoming that won't obviously, write know. with in would product full a we're in in the able super then ago couple share the personalization, opportunity can stack decades excited, security for right? it to a and much front merger that And

is also tremendously the experience user So improved.

is And personalized scalable. in then fully we communicate that, opportunities. which contextual it's is all The and way

or up So roll something We you can membership have or we feature. on your or sign price up new launch you different for, based level have app activate can a new don't else. And to features. will

to We very we we countries we're goes be signs. and very have it. want If it But smoothly, have you 'XX our that. cautious. take fiscal year full to it so accelerate April may we Obviously, testing positive deploy X in. will under Early, far, belt

So more that. a into progress global move we'll countries. little We'll bit

end of we then at quarter, here as we'll the we what on as can countries see. the depending fast Some and open move

kind And choosing their you consumers mentioned then own features. of

needs noticed of real the offerings what remarks in around fit their that their of it. making reception in of coverage some tailor still been had Avast also they want to approach comments I modular letting consumers. You a and what's One the early kind there, users kind the slide prepared world around want but deck. and it's they of where really needs Realizing upgrade

One structure deployment new Avast the Yes, absolutely. part is stack free it. coming part of and concept And deploying it the of and as with

So upgrade. it's for we'll as opportunity to stock, for base, point the And on the Avast migrate installed majority we the still new to is vast product.

moved we base. same So we XXX that the the installed X ago, Norton XX% have in years way and Norton reached X.X,

that We scalability, you have can it's single that flexibility, where especially product stack. It's value only the doubt the we or excited agile to with that pay feature for no mimic have of a we're you want, if make or really if that benefit But about. coming super from progress side. stack full that going, on that's a single or an

from comes Saket Barclays. final Our question with Kalia

Natalie, maybe start with just to you.

'XX, X% bookings the X% think fiscal we great for see. I guide said growth, to to

in a bookings that little pickup growth to 'XX. of a bit implies I think compared fiscal

a thumb just driven you of that growth? for how can mix be or it formula much of do do year? on ARPUs? by have rule about you next of sort that general of a growth maybe think So How Is subscribers

It's And Saket, pace talked X% at you. the it in to be going But X% a and from of November good a hear as from changed we levers to guys strategy. magnitude. are at X look scaling excited of nothing's those super mix back different to different but really to about. XXXX, to we we're what bookings about important, for growth our AID. X all going equally into be Yes, you

just of and kick you give that continue a bit we off color. I'll 'XX journey, As X-year down

a the in customers healthy We'll driving So of we're way. to to that. committed to continue stay acquisition committed ROI new

is the new that in stay dollars as proud levers and for I diverse the marketing very drive acquisition to even is to Quarter that to we're both very, growth. then and but scale year the and significant is that aspiration close is very, of committed fiscal our XX% drive and course, able and brands. And geographically investing out, will cross-sell being well going to in are healthy quarter Cross-sell, installed of customer steadfast a vary, year in X progress and we doing 'XX other way quantity across last value penetration acquisition scale upsell. the definitely number something Of approaching our base doing the cross-sell customer in, and that absolute mean and of quarters. as very over

as existing real cross-sell those So and you to points we guys continue engagement drive with our proof successfully should that look proof measured customers. increase therefore, at will real, the points,

higher-tiered, And membership new we of customers, upsell. that what our and existing, mean higher-valued in both is our prioritized by Norton more in pepper in Now getting lever offerings. and growth XXX more

mix so our rates drive will, drive to the retention in turn, scaling therefore, X, higher manner to, revenue growth in bookings. and rates. those going Higher is higher drive brands. It's engaged customers, our we of then course, across And a the of notable of going see retention

say And combination partner so are would forget call of let's And what the those flywheel. not of things the business. the I the we at day, the end all

a It's differentiator, contributor and scaling a The broader partner way. revenue acquisition of diversification our competitive business our in drives awareness. it's

we our really together. invest so diversification with continue those world-class partner And all to the our of sales of behind come levers will channels X have teams and

'XX. through all those to going see year to fiscal start in come You're

Yes, throughout build at varying we the and the pace and will year. magnitude throughout year,

rates, when assume can customers. we you rate about As it's retention talk retention the the of annual

why is the throughout So year, the you as going increase more our we of cross-sells well. we bring scale as in bookings scale when membership the throughout to coverage are to which expect offerings, year our more tier those should all and

it. helpful. the for Got that's it. good Got follow-up you, segue maybe Vincent. And super into a That's

tackling higher to rate we retention retention How been than sort to that you that X year? that Or rates the lift to the by the And blocking that's on deal, great I base and said maybe the improving the as be are has rate continue see. relatedly, to same going retention you retention thinking may are there customer think just expanded parts for for Avast playbook which on? Avast? rate is go other of years about it next around points since more

Yes.

on. me take one that Let

When ago, aggregated around So months to full the numbers put our portfolio the XX retention same rates closed merger rattle was we XX% on we for a page. as just the to everybody few mentioned. retention

You was around XX%, NortonLifeLock remember business, at Avast we're the around XX%. XX% combined and

X XX to closed QX of process when and after customer Norton XX%, an rate LifeLock close renew. as day set And really discussed, X when the a First, months, drive center points the XX retention, with our That improvement over at of management, expertise day while aggregated the Avast we record on same retention operations But closed they basis, into as merger. X.X XXX onboard activities. the start stayed the retention time to here for operations same we way the flat. combined around techniques, XX.X% centralized points months, first improvement on we all for of in at itself these somewhat

trending customer in flat. so it I opinion. still brands are perceptible on it even though All NortonLifeLock have on my of We up good slightly the retention, satisfaction and improving it call immaterially combined, was

a improve at said, of remember, had half operationally. Avast can we you it we maybe delta, XX-point As

XX approach how now, least next half, the we've the projecting drive not We'll And So in it. the half that's are X months. now done different. linearly at months, we other is over

We're working shifting the having standardized from to on operations areas. centralized X the operations,

a life and one leave, is within be many for first team then is beefed you all journeys. time journeys journey cycle. journey cybersafety when different the part defining steps a We've of you the have a cycle our first integrated in drive lot it Life up way done to multiyear The and customer the of product. our to framework to onboard your decide you different the and customer our the and into could very have work view, you

cross-sell, between second contextual being to and will membership the modeling offer one I one new stack path a communications, side, and scientist a enable Gen The vast use of the to what and the really this, what to improve enable. side. On communications. second better is our And one data will us amount is AI call, use it personalized able the data upsell really

aspect company plan journey X. important a So all of that, it's customer that Actually, and is work the mobilized whole the better We'll very, which on behind our we forward. to of moving very know touches retention. those leads

session. back CEO to of That Pilette, concludes to our Q&A the Vincent like over turn call I'd Gen.

Thank Gen. hard position a 'XX, this reap started the you, to in in. we're operator, work put year 'XX call pivotal company joining was year the you fiscal saying transformational fiscal and of all that year a and In by course, putting for for the we call. thank our I benefits of

leader in we the to cybersafety industry. the are in market, consumer well transforming succeed positioned As

is it We is have while journey, accelerate strategy growth. to not a And a working. smooth always it

to We and our and technology in do customers, innovation to track best Thank a serve continue investing and we proven record long have you. will of so.

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

lines. now disconnect may your You