Gen Digital (GEN) 1 Aug 242025 Q1 Earnings call transcript

Good afternoon, everyone, thank you for standing by. My name is Tamia, and I will be your conference operator today. This call is being recorded. [Operator Instructions] At this time, for opening remarks, I would like to pass the call over to Jason Starr, Head of Investor Relations.

Thank you, Tamia. afternoon. Good First XXXX Gen's Call. Fiscal Quarter to Earnings Year Welcome

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

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

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

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

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

our everyone, Thanks, Jason, and QX earnings to call. welcome,

in customer X.X XX.X a grew cyber up KPIs million of good constant with X% operating We our 'XX million, year-over-year. supporting long-term a on We bookings reached count aspirations. . record currency and fiscal note have started direct safety our

record and sequentially in and in level record up LifeLock by supported retention reached is currency Avast. and XX%, a Gen ARPU constant Additionally, year-over-year

for team earnings constant landscape. quarter for at Our I'm proud in QX, double-digit dynamic per our in XX% on focus of currency. results our on in and for consistent execution for resulted cyber a up growth another continued consumers in safety very delivering these share focus $X.XX evolving threat

walks at sharing like we Before recommendation first would our store not payment cyber mission. to the biometric the to progress about or do performance to and steady are of a by results, Whether I personal Natalie don't it our more our combined retail goes information. where day our making it personal sportswear, you strategic digitally data remind the we safety without achieve seems a something with buy is algorithm like through opportunity everyone details

life And protect data. as depend yet, industries, is convenient, And these experiences government is retailers of leads can while providers our we institutions ever-increasing by on of our data all which growing banks, our our tremendously and control. mobile proliferation We to them sensitive out our see for it properly our as difficult do. is in the all to it safeguard be digital information, to increasingly hard to of personal can the number and breaches

reported breaches that X,XXX data. the businesses, half personal very month reported And doctor are the to we across per those than schools local that mention many just and offices, to In get sensitive have small not seen just the first the across XXXX, the more our access shops occur of globe. breaches, also

vulnerabilities. potential and The scope deepfake significant resulting sharing create is development in damages. economic trick generative attacks, clones. designed has into global impersonation threats are to AI of for and scams, to aftermath which surge exploiting growing targeted the is a breaches of messages such the Recent these cyber personalized reputational suspicious In text including and believable The people personal made of information. broadening, rapid easier criminals events, human often highlighted at in e-mails there threat it of scams, more

to companies we threats lives It believe paying privacy, and vulnerable than no landscape their visibility making struggle to data that reputation, little is control which identity are consumers businesses a identity real threat their threats these and and careful vigilant the dynamic ever worldwide more clear have where small into how assets. and their to assets. even to will most the to and And more anyone data, personal attention people, creating financial amongst are protect I governments, valuable

will it is believe when. And our is occurred that your that data not digital already through innovation. our your never-ending mission hasn't your yet, Gen is be we if has it data question met that why lives if I a constant strongly new, of protecting deliver team and identity, at personal but compromised, It the work.

most the the reputation. product consumer have security, and identity, needs meets that for already we Today, comprehensive portfolio privacy

Our cyber flagship Avast threats. and industry received recognition offerings, traction of the Norton cyber membership the and to One Prime we way continued XXX, against protect safety regularly and merits Avira gain for awards

technology. to know best-in-class apart customers our providing industry-leading just don't delivering us We at with that sets stop We our from services consumers competitors.

and become Solution help and live victim. service restore a like protect deliver personal reputation identity in and LifeLock the your to ReputationDefender event you

marketplace the journeys have near perfect us, reputation the and for ReputationDefender management. with By both as customer recognized achieved best identity service products LifeLock theft with in rating with on top focusing ratings the a

of protection. we with industry, customers constantly As our still to investing possible and best innovation have the the provide threats cyber leader potential are of in the safety

worldwide launched support protection to different Yesterday, only individuals, best Not comprehensive online VPN online Norton families. content privacy, which with VPN plans provides web more access. we offers Ultra catering the dark VPN, X and protocol couples and Ultra monitoring,

and it ransomware as well viruses, addition, manager as and parental offers password a control. In malware against scams, protection

together safety. the this generation bring single new needs is personalized solution, we the approach common another hard it modern to best cyber cyber all bringing and so a technology represents believe consumers. comprehensive that of total put door VPN We're and under excited of adds is also Ultra work customer offering the VPN a great We to next Norton and integration promise architecture. a to into Not safety only into it the product meets companies X but the entry

we of capabilities the us to future, And to built innovation new we them it AI stack, we delivered, Gen and and the with market. not to on and is can currently experience take with what Ultra Norton feature combine also as were we terms see the which those we with help in of our able which ease speed deliver but only bring ever-expanding in tools, the the use. with customer VPN

is improved has and heard of they value-add point not on not and last exposed often aware but fully cyber that time, most most about in more customer Over protected people loyalty that are and result I that upsells. security, everyone greater very cybercrime adequately real cross-sell risk The to leading touch to today from. to will engagement, the and are want

and of At communicating, consumers world. around the Gen, we trust every work the are educating earning day hard at

have such we over to of to and feel that countries, constantly host it Although is their impact also campaign. millions of we cyber to a our enables about diverse responsibility needs initiatives customers our serve brands as risk recent us across the of XXX industry-leading of to inform people hundreds educate

protect helps and to demonstrate of people psychology themselves proactively campaign the steps online. and art to This take cybercrime impact the right uses emotional

algorithms. exposure all entering millions privacy combining of monitoring report e-mail also simply web with be obtain launched publicly which available. private supposedly actually data This can of address that LifeLock, data our by scam our information card quarter, points dark and By is individuals a personal comprehensive detailing online, we free an scan may a their

and in business X%, strong this lines give type customer consumer safety awareness everyone supported can to with and We tools to segment bookings double-digit and bookings footprint cyber off acquisition visibility identity accelerating in free cross-sell are and X% as QX. cyber These privacy of we grew privacy the are revenue safety they so by their themselves. by digital protect in that initiatives All new beginning to had momentum pay growth. up better

breaches. This success from the reflects risk of awareness consumer reported recently increasing identity

our Advance Although markets monitoring, introducing providing to traction we to assistant mostly web identity today, additional monitoring, dark and Europe, expand X as remains make ID stolen identity social wallet in continue U.S.-based services the steady to globally, such market XXX Norton protection restoration. identity protection in customers efforts media

and cyber despite mistakenly them safety, only happen that and information our yet or most in security. digitalize X/X or paramount even But massively they safe customers identity of comprehensive of still cyber consumers safety to risk device We believe believe world, still basically basic devices. the have security And self-insure. cloud-based underpenetrated. it just cyber won't today's believe is importance safety digital personal that Now comprehensive transcend to user-centric choosing

adoption. never-ending with positioned innovation, channel This and to mission. a technology expansion, its is on portfolio, brands And focus trusted we well are our drive

and results QX in we are to our with pleased fiscal So start XXXX. summary, promising

but execution to confident goals not long-term are growth to on and to deliver on centricity, profitable We value. this accelerate customer us innovation our shareholder disciplined year, our revenue enable also our plan increase that further for will only

it that, let our pass with me on in to review performance Natalie And details. to

Vincent, you, and everyone. hello, Thank

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

date. revision from revenue Before customers to we I impact The of Form date I recent in successful presentation our we revision to XX-Q slide well supplemental want practice today's that is begin, historical refer made recognize however disclosed the website to have -- more renewal a as on our immaterial corrected prior bill certain QX this highlight as X-K, and changing to for for section the when for details. periods of of information presentation Form available we purposes, reported. comparative IR our for our Please as in today's

of QX reflects at quarter consecutive our quarter and execution growth. results. QX another the midpoint solid with of financial turning to of results XXth guidance was our Now

currency. continued we Norton and as safety currency. cross-sells and up business also channels bookings demand QX into grew and our was through also exclude in our X% privacy X% $XXX identity for and up Cyber year-over-year the X% which the partner in currency, USD million, driven cross-sell by in existing scaling revenue our constant with and in bookings, currency. were grew up X% year-over-year legacy constant new $XXX revenue Safety In grew with direct QX million, constant USD privacy X% and well U.S., Total base. Cyber services, customers business X% constant X% in in penetration customers. lines, expanding attracting identity lines protection as

of we to continue safety markets and cyber acquisitions also with as penetrate We services. of our reach the maturity new continued expand seed varying international further degrees to market

constant broad-based We key direct revenue and up will all X% by metrics customers, million, was in consumer drive profitable growth our $XXX supported of on our at retention in performance a continue to per average disposal improvements levers to rate. currency manner. execute Direct across revenue

growth our million customer consecutive customers. is to Let ingredient sequentially and QX, base we the up driving for net in strategy $XX.X expanded new million, year-over-year. specifics. to $X.X me increasing up our share some A key And $XXX,XXX fourth quarter

of to invest new more our continue channels traffic in a broad range marketing audiences sites to generate We while conversion. optimizing to reach

grow acquisition and result. with through ROIs markets compared new brand Leveraging ARPU customer last acquiring up to our as push are further channels combined sequentially our customers in, continue monthly down rated We and with international $X.XX direct portfolio, our On USD year's mobile penetrate awareness, will with of offerings. base. we we highly was award-winning with monetization, healthy our trust diverse to product X.XX set $X.XX to our our

to The cross $X.XX as ability further this our we have Operationally, year-over-year negative cohorts sequentially. we up $X.XX sells base, note, across and grow upsells. slightly of please through our market. to monetize brand result stable And However, FX absorbed ARPU customer customer and the remained headwinds by demonstrated and

has from penetration the over XX% to the With cross-sell grown base, past XX% year. Norton

digital the We that have the truth practices customers complementary to during further of needs. products protect offer their best and growing will right at moments leveraged suitable most

XX% our upsell exciting as higher memberships nearly The our progressing to in playbook the more provided In customers we our XX%. toward comprehensive to look We guide year-over-year proposition customers towards reflected for increases direct date. refine also retention with our rate value the protection QX, next few improving retention of was and opportunity and years. goal also to continue our growth to tier is to expanded

opportunities customer more to more turn, flywheel through lifetime As customer activating we as we and loyalty targeting personalized the shared. in leveraging drive better increase move the through capabilities higher we've see Gen stack their experiences previously create simplification, journey, growth value to

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

risks Our they the organizations channel employee is benefits cyber importance pipeline their the increasingly face. as of robust recognize and workers identity protecting from

and search services business are we revenue confident We overall the our partner is identity annual strengthen progress with telcos, driving continue quarter, contributed higher business and financial are revenue, of and billion legacy partnerships this private million in a providers to penetration browsers partnerships. the Scaling we're achieving Rounding insurance strategic $X.X lines offerings our to in to our expand million we key in our component out plan. growth to our down $XX prior our and making. year. from $XX also

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

Turning to translating of profitability. to up operating million, in X% constant and income $XXX XX.X%. year-over-year QX X% currency, margin an was operating up

We efforts targeted funnel and presence. our reach expand new in growth customers make investments full marketing continue disciplined to to opportunities international through

product Ultra drive Norton innovation new VPN to add Gen new We're Stack adapt simplification to ever-changing such our net and XX% cyber will be additional our growth core, to safety we to offerings year-over-year. into also and to productivity capabilities, solidifying Within up was can $XXX comprehensive including levers. QX as threats continue through quickly cyber that efficiencies our technology the reinvested portfolio. million, drive income

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

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

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

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

concentration QX, XXX with basis we Loan be B, the basis spread associated we XXX And credit a repriced of to QX tax the due. to over in Removing earlier removing it lowest cash lowering see are points operating and successfully every existing As the credit reminder, our payments Term the SOFR adjustment spread quarter flow for from points. that of as expect we the year year, given

Turning allocation. free excess remain X.Xx to million B committed voluntarily $XX of and with levered. cash $XX to million to flow term maturity our balanced We as for schedule of now are loan XXX% net well capital capital as our and We our returning shareholders. repaid deployment are

approved expanded the We also XXXX. million fiscal we allocation billion Since deployed remained time of XX shares buyback that repurchases $X and equivalent million in strategy, over to start $XXX this of Board quarter, of have of share capital the of committed paying for part billion share program the year as a $X.X by worth May $X balanced billion period. deploying down 'XX, debt of a total repurchases of the

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

of of paydown on share a XXXX, XXXX, close With approved $X.XXX fiscal driving QX of deployment the XX% to achieve opportunistic paid XXXX. dividend to August flow and all business on XX% generation, For fiscal below regular quarterly of net by will Directors share common our EBITDA balance per EPS Xx the goals cash XXXX. of to to of help delivering be September Board year XX, our debt XX, as shareholders of growth for and continue cash strong record leverage we buyback

turning to fiscal and QX outlook. Now our 'XX

to up be For non-GAAP safety X% range million in QX, XX% to translating to the XX%. cyber to and in $XXX in of we EPS $XXX expect of to $X.XX growth non-GAAP X% QX revenue million, the $X.XX, range to

are For year we our fiscal guidance. prior XXXX, reaffirming

revenue growth expressed to by in supported to of to $X.XX We to expected constant X% X% in cyber expect safety billion, X% growth billion full range X%. bookings cyber the year in safety $X.XX of translating currency

to range representing of share over increase $X.XX year. annual non-GAAP primarily to revenue per Japanese $X.XX in to that be EPS expect our XX% of an to Please note in from is impact depreciated which headwinds yen currency. FX XX% the constant the we continued the reported We expect last

we our longer-term plan, achieve remain summary, XXXX In target for on results our keep and positioned to well us goals. QX our

continue in performance trend indicators the direction. key to right Our

to We our the on our over and look along strategic us reporting forward the journey. framework progress are provides points We executing plan growth our guide year.

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

comes Dan first Instructions] with [Operator question RBC. The Bergstrom from

following It's initiatives that Or uptick to see the maybe in nice quarter. was steady some It way Dan some little more more it Bergstrom target? merger retention there what was there a think to good XX% that I of is the the Matt for low-hanging of retention and this working gains sense then incremental about march challenging? for perspective? And Hedberg. to are well a in fruit from maybe retention is a here, guess -- a are there you from

Yes. Vincent. take And is Thanks that for your answer. question. I'll This

Just for was merged retention when we as an and for a rate context here all were XX%. company not the months brands around ago, with XX Avast, who on our gen new those basis aggregated the

about we all rate points XX% overall. XX% itself portion that retention and around XX% we Aavas our the Jen. we way bring And for target of retention that A a that to drive identified business for retention, was would to told improvement overall X rate was big could improvement

lot as get would combined And in a had you was And to closer customer retention those. you initially, to around that breaking low-hanging have rate the Norton experiences it whole optimal down the yes, LifeLock the different at journey, we know, or of few so output a customer remember, good we food, best as had by practices trying a XX%. for a

be really stack. over roll years improve to maybe and that of as the couple And we the new portfolio the next and we gen for quarters, then out entire next first the few will from points We XX%. XX% to X apply those expertise said remaining practices

rate actually we and a reached level but XX% with well. quarter, retention of an LifeLock to rate record So a record Avast also retention XX% improve as this

see I X dynamics. And you -- X think benefit of here the

using has rollout breaking to Gen improved doing the the and we at the and value much retention and the second of journey and a work engagement customers and suite we cycles we're data the stack, and built, to have really which then through new that led AI to the our is continue value is time safety Gen analytics side the is that cyber the The of with of right the ability and right communications the approach first we've done the the X this those to suite providing AI-enabled features to the aligned in towards -- suite. roll customers rate. that new going of migration to are on the X, work And communications X to the new stack buildup high engagement a and then demonstrate more some into down component in-app

in That's is or Norton what impressive. in cross-sell be as of you done a And Investor the then a time? of and very so prepared here drivers it Day. template say, should How perspective? let's the context on cross-sell remarks, using, X then of a called through still number those could think LifeLock vast we and times you've maybe out a far X this what And cross-sell X about accomplished from

Yes.

features cyber have comprehensive there, a to months that point a safety X of right, ago we very cross-sell as that. product drivers now, basically the it of X, from say quarter. and and have means discussed that entered to privacy broader a behind the basically is customers we been cross-sell strong X the increase identity some this safety So moving was X cyber and

of we Norton the the products using want, at right the and from their taking it was to products data Before that deliver again, point more right really the as at right the was and as portfolio Avast if and cross-selling, scientists much specifically can, base using the time time. you message practice that, into cross-selling about

that and develop to think either we've towards cyber we'll I identity and see angle seen more moving -- see safety total trend that continue privacy more a us more of that. -- you'll comprehensive or towards

map, brought a We as will have lot portfolio. is have overall which the you which I did made XX% migration think progress, above is then we where an to of but room towards we've was we XX%. upsell, a in Today, the what the suite. slightly had you more X-year know. where opportunity portfolio, room the Northern which still go we to And in And mention, LifeLock have road Norton the total be we're into it

cross-sell and is upsell have moving privacy So opportunity progress both focus the where upsell essentially and big the forward. and made plus identity cross-sell

comes The with from Levine next question Peter Evercore.

the the year the consumer? health think And guidance for first as just health are around that the where then in baked do think you into kind can from X to that? you year. overall call what versus seeing the the the months were, assumptions color fiscal about for X 'XX consumer you us you're of pipeline you give of into it, Natalie, remainder what XX of Any of about you is your terms how just last

question. for Thanks Yes. the

the the got those But and levers years. It's So structural of you the to framework is same framework, that aligned of quarters same guide business plans strategic the articulated the that in that. guys. with the for for X every magnitude not same X growth our and in we've that at is is growth very order X the much we've -- the line hit

Very, Yes, funnel. to In gross of team get the the the very acquisition. the is on of important health at top terms focused

well got upsell again, as in We've highest customer relevant, comprehensive our customers And can then lot at retain and different time we protection and most growth ARPU, we've spent stay cyber we focused the in we our both that map as that and market. product rates having have communicate the continuously sure of the right? all with got our make in on that continuously safety a how most figuring cohorts the robust the road on out We've base opportunities to focus that them fuel most possible. cross-sell

the our what as year then helps of the shore guide, And is the not but we of QX us only a all in consumer, of reiteration see year those together guide. in things up couple health so of our within a lot the through tell navigate news been movement terms the lot and the the in is full And coming what business. last But days. can of there's what I can look, I of of things you

customers, are a a seen gross years. from we we've perspective, so highest And of just in X both adds we've lowest we've years. in perspective, QX the cancellation last our growing the we've From that X seen number cancels seen seen

So cyber with awareness count the that's our whether combine health in that about we in of what terms is with and we've And as combined speak the brands, of a the it of see legs the see ARPU. the customer other happening the got trusted stool, X I or growth. that's from that then perspective, threats ever-increasing safety customer of we health

we growing are retention seen we in consistently have year quarter-over-quarter, Affects increases ARPU aside, last and our in brands rate. the across

base. X a indicators, see help of customer the our measures I performance key so those in our from lot customer of in And

can then And product I to the if jump side.

I we touched think on last the and quarter, ask. the least we talked

that's the membership and talked update I think on maybe asked Gen Stack us you silver an trending? on you it just Can the was about give offering, initiative. newer how

Yes.

we've because of cohorts small new have Asia the rolled out in few the region Since we're had good positive started countries. doing rollout to test. our We couple a We stack, the new Gen then, expanded the first U.S. in a fiscal at We the on results. cohort more year. by customer the just end So countries of to we of very

stock track rollout, think we're by roll to new as we I monitoring cautious will engagement, that, take very first down. measuring customer that the -- adjustments and new We're the line. and year said out positive. and Obviously, it NPS we're the see changing the prior. full feedback, up overall, We're after but pleased comparing There's monitoring, out and And pretty we to we that so first the -- roll to time on get not we what far.

with Bank from comes Zilberman of Tomer The following America.

just for quick Maybe questions X me.

is, your So about your expected? customer or now of Three the between this with and direct new my -- penetration than you how me, ago, with pretty existing did versus months your talked nearing the it in came play your your difference sequential expectations? with strong, line? Or the customers in falling adds in X expectation excuse line in guidance your quarter, performing X guidance, question per did and you customers also was or better cross-sell see performance

I Yes, metrics, a framework. got aligned teams it's would segments say and growth to the different balance to X strategic across that different of X we've

In performed, free fashion from hard for extremely, how growth really customers we working terms are as we honestly disciplined can. of the to a capacity up as much for investment

And in a to to and commitment, made operation so the marketing. continue that invest behind we've execution stand That and funnel. to in we commitment marketing goes the top of

growth on a count the sequential by surprised in basis. not are we customer So

highest gross years. then several a adds the I a perspective, retention from said, it's perspective, ARPU seen adds from gross cross-sell. we've And of the like And and levers in so perspective

that honestly. XX% very to driven moving We're getting very, in year. proud We last performance quite just of from Norton the in penetration cross-sell our are started, teams the base have the XX% of

we not we But because are to especially ways we're XX%, are like go, product and selling we dealing feel stagnant portfolio, at stagnant a or growing. not with have customer into a base we're both a

technology And our continuously in proposition. so invest enhance and value product we will

that make stay trusted technology product got the continuously We want customers to retention focus the by to work that creation will and protected continue we've our brand we'll getting increasing. and value to us, that our message with to on world-class services and ever a and cut they're customers, with to is sure and through service customer

it. Got

moving follow-up, of hedging in the as yen. activities to to you against place maybe a of FX weakening and sort headwinds. So protect ARPU are What the putting some

perspective. hedge fix from I that's why rate versus constant against don't a . and currency. the we beginning, We report USD rate currency the yen at

The kalia next Saket question comes from with Barclays.

the Vincent, on with late, business. have part Vincent, maybe apologies apologies asked, to if some -- of just of these so but you just Natalie so I start been joined another

know there. of we get about enrollment you next bit bit was anything And looks? time And last quarter. year, maybe that think differently think how I just season a last I little the little there versus that into can you lumpiness And benefits pipeline that a this about year? doing talk

joining the And lot is gave absolutely, stand pretty good. call, about feel information we're recording overall. our we no we good Saket. of The on business Yes, a late. with good news and We where worries

is constant have You quarter our X% it we grew which this or already partner currency. have in heard business, XX% may may partner of joined overall business, our

As it's you EB And X telcos strategic retail. I'm telcos relationships question. made then to revenue. digit to everybody and will selling benefit employee the context know, double within Both it's context our that continue telcos solutions, summarizing partnership and your of and grow about categories, to give

And set around fact new ahead not a to into of deals is time signed time we October new for that close a we may bigger what new employee October, you accounts. of the benefit normally the accounts then which February or may enrollment refer -- start and zone, to

of into invest overall to our up brokers. set the building coverage companies working through of continued we've So entire

many to, think as We last deals we have a very try not as than can can. aggressively healthy will as we funnel. we close And as different I year,

we to estimating comes the to feel cover it when we for funnel very a full definitely into deal year. annual the which forecast guidance, force have obviously, Now the healthy

prior margin itself. like I it's margin. maybe My it's maybe follow-up quarters, of it. it. don't Last couple my question That's from was than speaks Got Natalie, the for just, Listen, been very XXX you. for gross lower few on for basis points also Got quarters. helpful. maybe the the operating know, just

sales? you growth, should between the can that to going that anything going about is, model should cost there as Or and forward? OpEx we question the anything talk should of that maybe into margin we just think investments continue are any gross So difference we

Saket, business over thanks has question. think margin high margin gross margin. the for and X appropriate operate points X what up to last it the just is last we over call margins from I points years, operating the the the improved out both Operating Yes, years. definitely X the X

one is we disciplined that high we So measure a very, to I operate. real margin, of that. very It's how and think the It are is committed approach. of

core lead we're we rate also been areas of going to, invest operate because we to will the to the reserve supporting we wants see to said the are we right as X and also growth to that healthy the an business very on to increasing accelerating that navigate strategy margins in high although that forward, However, line. believe those growth at everyone top X the we've growth us of

bit margin Gross flat but And margin ask so that's I you down yes, out just a XX.X% would is stable. zoom this relatively see although gross you that further. year-over-year, quarter-over-quarter, quarter,

just If of it's back honestly I look investments. would XX%, is XX%, geography only stable. we've that that say the incredibly you at back P&L I you say seen look at would pop our

investment We healthy variability. of drive gross profitable, and you're margin firepower behind to ROI with will put the top that's all continue marketing to the funnel the seeing

and to the operating stability I the zoom the margin at margin say, years. last we've that and on health look out, over look would to range few XX% gross delivered overall XX%

question with from Stanley. Hamza Morgan final The comes Fodderwala

just just of environment. you just deeper brand This just results the driving into you, there terms of a like? awareness kind is prepared you you a overall can about John looks across touch there remarks, in in the tough can talk AI different great but Hamza. geos? mentioned for growth Vincent, for how little -- very what maybe what's on Gen And And -- opportunity in

growth breached more of on using and double-digit risks the We've increase those increased to surge the that community. making definitely and the the we've Yes. hands Definitely, seen private web personable engineering information breaches scams, on hacking increasing overall other the we've sit into may the of and of for with in first a of a all, -- seen data seen and combine scans and strong other things obviously, data data with on -- upstream, very social some the that, techniques consumers. relatable more -- getting

Nortan launched to to AI we had scams those As you to AI, more Genie know, detect we've use combat and and more. decided

and well migrating half, sets. Genie into users multiple second of to X emerging now for anti-scam million have basic we're the AI-supported product or We Norton that app that integrate over download features a

detect scam more see towards you'll AI-generated using to AI So today. and shift more

for And for Natalie. helpful. very my follow-up That's it. Got just

maybe talk you little thinking net how So you very the visibility? color this if were year about any adds geographies? And on net tracking a contribution bit you're just strong quarter. any Can throughout obviously again about adds different the across have

multiyear would We Sure. at at it's look headed broad-based. across brands. pretty when I by say would trending, both look as well it in we look we geography. as And it are the look at say right direction. the online it I mobile. at We We

broad-based. would I it's say so And

markets into, and -- have low for We X that able to or our are direct we as in on through penetrated know customers that we not portion global markets acquisition partner as of to would sizes, underdeveloped the focus expand only speak. channels, we called come and as in the well acquire our shapes expansion so X the out all I say,

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to for I would quarter to capacity invest in, then commitment And terms customer quarter is don't I going, of to guide you in what But point to where out. create the continue our we're growth. count really

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retain to invest all customers the way highest continue then sure will their the make we and the but retention we customers our adds Both business model, possible. yes, so funnel increasing critically the delighting to also our to for journey our through therefore, our net and rate at as customer of continue in focus are top important adds, that the growing and servicing existing customers. rate Gross so, on they of

There are no Vincent further questions Pilette at this time. I would now like closing to turn to the remarks. for call back

Thank you, operator.

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Thank conference your for the call. concludes This participation. you

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