Exhibit 99.1
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Exhibit 99.1
LIFELOCK
AUGUST 2014
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Safe Harbor Statement
This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, financial goals, business strategies, financing plans, competitive position, product development, membership growth, strategic and enterprise opportunities and partnerships, marketing and advertising plans, industry environment, potential growth opportunities, potential market opportunities and the effects of competition.
Forward-looking statements include all statements that are not historical facts and can be identified by terms such as
“anticipates,” “believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,”
“should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our beliefs and assumptions only as of the date of this presentation. You should read the documents that we file with the Securities and Exchange Commission (SEC), including the risks detailed from time to time therein, completely and with the understanding that our actual future results may be different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix.
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Recent Business Highlights
Launched next evolution of our service suite – LifeLock Standard, LifeLock Advantage, and LifeLock Ultimate Plus.
With LifeLock Ultimate Plus offering, LifeLock is the only identity theft company to provide alerts across a consumers’ financial lives including credit cards, checking, savings, and investment accounts.
Recorded the 37th consecutive quarter of sequential growth in revenue and cumulative ending members.
Added approximately 304,000 gross new members in the second quarter of 2014 and ended the quarter with approximately 3.39 million members.
Achieved a retention rate of 87.2% for the second quarter of 2014, in excess of 87% for 7 consecutive quarters.
Increased monthly average revenue per member to $10.99 for the second quarter of 2014 from $10.18 for the second quarter of 2013.
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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The Cost of Identity Theft
14.9 $25
MILLION BILLION
US victims of Identity theft is the cost of
identity theft identity fraud
in 12 month period** #1 COMPLAINT in US in 2012***
reported in the US
823 for the last 14 years* Every 3
MILLION seconds
number of
records exposed by Someone becomes a victim
data breach in 2013**** of identity theft**
Colleen Tressler, ‘Identity theft tops list of consumer complaints for 14th consecutive year,” Federal Trade Commission, Feb 27, 2014.
Q32013; Identity Theft Tracking Study; a commissioned survey conducted July/August by Forrester Consulting on behalf of LifeLock for period ending July/August 2013.
The Bureau of Justice Statistics bulletin, Victims of Identity Theft, 2012 (December 2013)
Online Trust Alliance, 2014 Data Protection & Breach (2014)
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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The Increasing Risk of Identity Fraud
1.7 7.0 1.3 17%
BILLION BILLION TRILLION OF ALL
Social Network Mobile E-Commerce Reported
Users* Devices** Sales*** Claims****
7% Incidence Rate***** 8% Incidence Rate***** 7% Incidence Rate*****
*2013 estimated users eMarketer (2013).
**Forrester research custom forecast for LifeLock (2013). ***2013 sales estimate. eMarketer (2013).
****FTC Consumer Sentinel Data Book for 2013 (2014). Based on the number of complaints filed with FTC.
***** A commissioned survey conducted by Forrester Consulting on behalf of LifeLock, Q4 2013. Incidence of social network usage, mobile devices for smart phone users, e-commerce sales.
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Concerned About Security – 78 Million
30+ Million are doing something 40+ Million are doing nothing
Current Market Share
3 |
| Million |
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Adults in US
240 Million
Income of $50K Plus
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Enterprise Market Opportunity
216 Million
Transactions in 2013
3.4 Billion
Target Opportunity
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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The LifeLock Ecosystem
Predictive
Analytics
Data
Repository
Technology
Platform
Member Data
Elements &
Authenticating
Responses
Proactive Identity
Use Alerts
Real-time ID
Scores
Cross-Industry
Data Elements
Data growth builds momentum
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Growth Strategy
Take advantage of our unique ecosystem
Expand data inputs
Evolve targeting and messaging Leverage mobile Grow partner channel
Long Term Vision – Identity Bureau
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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IDA Market: Leading Enterprises across a wide range of industries
Wireless Providers Credit Card Issuers Retail Card Issuers
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| of the Top 5 Carriers 7 of the Top 10 Issuers Over 75% Market Share |
Alternative Lenders Auto Lenders Alternative Payments
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Superior Performance From Differentiated Data
ID Network: A real-time, cross-industry network of
consumer behavioral data
Over 1 trillion data elements
Over 2 billion high-value consumer events
Unique data others don’t see
Over 3.3 million known identity frauds
Can score 100% of US adult population
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Uncovering Risk
A broad network of identity behavioral connections and linkages provides deep insight into identity risk
Legend
- SSN
- Name
- Address
- Phone
- Date of Birth
- Email Address
- Application
- Fraud Application
Confirmed fraud connected to
identity elements
17
41 3
20
9
Visibility into unusual identity
behavior such as high velocity
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Enable the Enterprise, Empower the Consumer
ID Score: 721
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Growth Strategy: 3.4 Billion Alertable Transactions
Market Opportunity
Expand the Core Penetrate Adjacent Markets Establish eCommerce Market
580 Million 360 Million 2.5 Billion
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Product Evolution
LifeLock Basic LifeLock
$10 month Standard
$9.99
LifeLock Command Center
$15 month LifeLock
Advantage
$19.99
LifeLock Ultimate
$25 month LifeLock
Ultimate Plus
$29.99
LifeLock Junior
$5.99 month
LifeLock
Mobile
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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New Product Lineup
LifeLock Standard LifeLock Advantage LifeLock Ultimate Plus
$9.99 $19.99 $29.99
All features in our basic All features in LifeLock All features in our LifeLock
LifeLock service, plus: Standard, plus: Advantage service plus:
Enhanced insurance Credit card, checking Sex Offender Reports
policy that underwrites and savings account Investment account
our service guarantee alerts activity alerts
Online annual credit Online annual Tri-bureau
report and score credit report and score
Data breach Tri-bureau credit inquiry
notifications activity monitoring
Court records scanning Monthly credit score
Fictitious identity tracking
scanning Bank Account Takeover
Alerts
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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LifeLock Consumer -3 Layers of Protection
DETECT ALERT RESTORE
Monitor over a
trillion data points
every minute of
every day
Proactive alerts
that empower
consumers
24x7 Certified
resolution
specialists to
handle your case
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Live freely in an always connected world
SMS / TEXT
Integrated
Voice Response
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Priorities
Continuum Process
1 |
| REACH 4 VIRALITY |
$ $ $
Members
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| CONVERSION 3 MONETIZATION |
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Myth #1: “My credit card protects me”
Credit Card
Narrow Visibility
Card Fraud Not Identity Protection
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Myth #2: “I can do this by myself”
DIY
Limited DIY Steps Not Realistic Not Real Time Not Effective
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Myth #3: “Credit monitoring is good enough”
Credit Monitoring
Not Comprehensive
Speed Matters
Reactive Not Proactive
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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The LifeLock Difference…
Unique Superior Trusted
Data Technology Brand
Growth, Retention, Customer Satisfaction
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Multi-Channel GTM Strategy
Direct To Consumer Marketing
Partner Distribution Channels
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Television: A More Diverse Mix
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Shifting Media Spend Towards Digital
$
2012 2013 2014(est)
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Educate, Educate, Educate
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Brand Leadership
45% 42% % who said that, if they were signing up, they’d
40% consider this brand
35%
30%
25%
20%
15% 11% 11%
9% 8% 8%
10% 7% 7% 6%
5% 5% 4%
5%
0%
A commissioned survey conducted in June 2014 by MSI International on behalf of LifeLock. Base: Total Respondents (aware)
Q10b. Imagine you were signing up for Security Identity Protection service. Which number best describes how likely you would be to consider the following companies (10-point scale: 10=extremely likely to consider; 1=not at all likely to consider)
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Top Decile Net Promoter Score
Member Retention – 87.2%
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Partner Overview
Co-Marketing
Direct Response Embedded
Affiliates
Employee Benefits
Breach
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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2014 Partner Channel Growth
Strategic partner investments in 2014.
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Financial Services Case Study
Profile:
Mid-Size Community Bank Bank had $2.5 billion in assets
Overview:
A commercial bank displaced a credit monitoring offer with LifeLock.
# of Members
1055
3738 LifeLock
LTV Revenue per Member
$415 Credit
Monitoring
$810 LifeLock
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Revenue and Adjusted EBITDA
Revenue ($M)
500.0
400.0
300.0
200.0
100.0
-
2010 2011 2012 2013 2014*
Consumer Enterprise
Adjusted EBITDA ($M)
60.0
50.0
40.0
30.0
20.0
10.0
-
2010 2011 2012 2013 2014*
(10.0)
* 2014 Revenue and Adjusted EBITDA figures are based on the mid-point of the guidance provided in our Earnings Results call on July 30, 2014 for the full year ending December 31, 2014
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Member Metrics
Gross New Members
1,000 944
800 762
704
648
600 517
480
400
200
2010 2011 2012 2013 YTD 2014*
Cumulative Ending Members
3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8
1.6
2010 2011 2012 2013 2014
* |
| For the six month period ended June 30, 2014 |
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Revenue per Member
11.50 12%
10%
10.50
8%
9.50 6%
4%
8.50
2%
7.50 0%
2010 2011 2012 2013 YTD 2014*
ARPU YOY Growth
* |
| For the six month period ended June 30, 2014 |
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Product Mix
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010 2011 2012 2013 YTD 2014 GNM*
LifeLock Ultimate LifeLock Command Center
LifeLock Basic LifeLock for Minors/LifeLock Junior
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| For the six month period ended June 30, 2014 |
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Annual Retention Rate
90.0%
87.8%
87.1% 87.2%
85.0%
82.7%
80.0% 79.1%
75.0%
70.0%
2010 2011 2012 2013 Q2 2014
100% 2013 Cohort Aging
95% 93.1% 93.7%
90.5% 91.7%
89.1%
90% 87.1%
85% 82.1%
80%
75%
70%
1 |
| 2 3 4 5 6 7 |
# of Years a Member
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Growing Lifetime Value
Member Base
2010 2011 2012 2013
COA Fulfillment Net LTV
New Members
2010 2011 2012 2013
COA Fulfillment Net LTV
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Free Cash Flow
$90.0
$70.0
$50.0
$30.0
$10.0
2009 2010 2011 2012 2013 2014*
$(10.0)
$(30.0)
2014 Free Cash Flow is based on the mid-point of the guidance provided in our Earnings Results call on July 30, 2014 for the full year ending December 31, 2014
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Strong Balance Sheet
Dec 31, 2013 June 30, 2014
$Millions $Millions
Cash and Marketable Securities 172.6 216.0
Goodwill & Intangible Assets 206.6 202.1
Deferred Tax Assets 47.9 53.4
Total Other Assets 36.2 42.4
Deferred Revenue 119.1 148.8
Debt — -
Total Other Liabilities 42.0 53.3
Stockholder’s Equity 302.2 311.8
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Long Term Goals
2010 2011 2012 2013 LT Goals1
Adj GM% 68% 68% 71% 73% 75% — 77%
Adj S&M 48% 47% 44% 44% 36% — 39%
Adj T&D 13% 9% 10% 10% 9%—10%
Adj G&A 13% 8% 7% 9% 7% — 8%
Adj EBITDA (3.2)% 6.4% 11.2% 11.4% 20% — 25%
FCF (10)% 12% 15% 18% 18 – 23%
1 These goals are forward looking, are subject to significant business, economic, regulatory, competitive, and other uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the “Risk Factors” section in our filings with the Securities and Exchange Commission from time to time, including our
Form 10-K for the year ended December 31, 2013 and Form 10-Q for the period ended June 30, 2014. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the Company undertakes no duty to update its goals.
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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SaaS + Internet + Security (128 companies)
Revenue >$100mm 115 companies
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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SaaS + Internet + Security
Revenue >$100mm Revenue Growth >20% Gross Margin >70% EBITDA Margin >10% FCF Margin >10%
10 companies
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Key Investment Highlights
Large and growing addressable market
Leader in consumer identity theft and enterprise fraud protection
Industry leading service offering
Strong barriers to entry: data, analytics, technology platform, and brand Experienced management team with track record of execution Predictable subscription model
Compelling combination of growth, profitability, and cash flow
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Appendix
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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GAAP to Non-GAAP Reconciliations
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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GAAP to Non-GAAP Reconciliations
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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GAAP to Non-GAAP Reconciliations
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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GAAP to Non-GAAP Reconciliations
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Components of Profit and Loss
2013
$M % of Rev
Consumer revenue 340.1 92.0%
Enterprise revenue 29.5 8.0%
Total revenue 369.7 100.0%
Adj COS 99.3 26.9%
Adj GM 270.4 73.1%
Adj S&M 161.0 43.5%
Adj T&D 37.1 10.0%
Adj G&A 34.9 9.4%
Adj EBITDA 42.2 11.4%
Cost of Service
Enterprise
Depn/Other
Credit
Card Fees
Fulfillment
Partners
(incl
Member Insurance)
Services
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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Components of Profit and Loss
2013
$M % of Rev
Consumer revenue 340.1 92.0%
Enterprise revenue 29.5 8.0%
Total revenue 369.7 100.0%
Adj COS 99.3 26.9%
Adj GM 270.4 73.1%
Adj S&M 161.0 43.5%
Adj T&D 37.1 10.0%
Adj G&A 34.9 9.4%
Adj EBITDA 42.2 11.4%
Sales and Marketing
Enterprise Production
Depn/
Other
Commissions
Media
©2014 LifeLock Inc. 1-800-LifeLock LifeLock.com
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