GEN - Earnings call transcript Q3 2025

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Operator

Good afternoon, everyone. Thank you for standing by. My name is Jayla, and I will be your conference operator today. Today's 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.

Jason Starr

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

posted and Vincent CFO. a Joining release. Relations call and are our CEO; along replay the Natalie with website, this be me today press will Pilette, Derse, slides Investor there A of on reminder,

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

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

recent in please I over to Form to on now factors the the information, filings call our press XX-Q. our reports risk cautionary Form refer the with most more in release turn For statement in Vincent. XX-K and our will And SEC, and particular,

Vincent Pilette

double-digit quarter revenue and innovating Cyber for growth. the EPS XX%. while of to Safety portfolio delivering grew of everyone, our profitable growth up execution, consecutive delivered most welcome, bookings for call. on Safety earnings was and and quarter fifth digits Jason, another consumers QX our mid-single Thanks, comprehensive We Cyber solid

a testament record These Our Cyber for million to our comprehensive X to by needs XXX,XXX are up disciplined Safety. and last solid compared and year. to direct consistent at base nearly million, execution is up results customer team XX the a sequentially over serve the

every You've to nearly continues case. over Not to believable tell dynamic the getting billion their XXXX nature world people their being harder actors exposed and blocked only number threats victims. we attacks sophisticated threats, landscape you a the these heard increasingly lures of greater as about and are compromise are In me detect, globally. risks the quarter lives, to exploit of calendar scams alone, and and XX threat the to deployed more [indiscernible] techniques year that be now but digital to bad all

Our researchers estimate that XXXX. of from all XX% just with cyber today, scam, up began in XX% threats a

evolves and expands, fuel the adding rapidly technology As the digital keeps of breach fire. to footprint proliferations consumers' just

recent breach help quarter ones Power In breach. Public your to like not the entire you risk the outting we information This National breaches to data threat convince asset. last them that individuals addition -- use to of have available no with but School the actors attack shortage means as you only to and families large-scale saw

this into quarter rise self manipulate in own which attacks, accelerate compromising with trend this the people deceptive seen through have We means. routine-based devices dramatic and their scam

website. e-mail, easy-to-use Norton just coming over tool year this to launched Genie and consumers video give help text, We files via you X coming to ago saw we camps an detect to or

Genie's files, are the even files, and and there. URLs, users, images not audio submitted wide engine XXX% million and our additional not video efficacy. only we engine and meaning extensive the also data sets can by catching intent of AI range of text a understand but scans and attachment with scans of on trends stopping product, real-life the downloads With almost newer threats proprietary AI Our X continuously the

included Norton as This providing our AI-powered We'll and product memberships, acting enhanced will soon protection and available The of proactive be reimbursement Pro add-on higher available version be Genie scam version customers seamlessly the upgrade scan the tiers membership family. for provides XXX extending advanced that or can features, your be all comprehensive customer including in tax to of filtering core assistant. into will scam base. the as Genie in blocking, and power an remaining and

other we device assets private. data into units dynamic of the safe. this By our leveraging Beyond exciting NPUs, to with the mere address how embedded seconds, this to or early can devices, preview and efficiency, into developments showcase speed In AI-powered digital come. able deep fake in AI Qualcomm integrated at to up detect investments world, scam -- threats own while information, and we're an to neural threat reputations in growing continue around on processing we more A recently to lot of user CES detection in invest financial we smartphones. innovate NPU device how and customers' personal keep sophisticated and teamed the be keeping with

from helps Security we private notifying if across foundation identity grow we safeguarding this Labs, solutions Avast risks. our security which finances, their against earning provide forms consumer them and and dark forefront the Advanced but identity only to Our evolving top consumers personal and AV continuously products personal web, protecting their and scam the new month, AV for customer securing empowering and cyber detect data. threats countries, protection their from their at also accolades stays Identity to scours brought identity you manage not finances tests, Comparatives and Protection, Avast the safe escalating with and Secure recently identifying keep information. of theft your Identity and AV XX needs, Earlier

features to additional also selected that insurance. in embedded help support, identity like monitoring consumers indicate alert assistant gives markets, and stolen theft may We've to also suspicious [indiscernible] transactions wallet account It features bank financial fraud. consumers

these growth across with our the and family of launched strong Avast interest ahead belief we've for brands. types financial customer seen and engagement our only of few wellness need and the we entire weeks Although a affirming identity ago, it already trusted from solutions base, in opportunity

Japan, With for scam identity we that automatically international ID vault include and Plus. protection, stop markets, we with specialists In available information With to and secure in we and on ID a sensitive Plus, in are our verification of one services time to Advisors we phone access move don't adviser also on-demand users a rolled out Advisors there. Vault, pilot a Vault largest added their ID cloud also to it privacy consumers Digital detect of need. to

and over across to when coming share to their quarters where As plan more we feedback offering, Digital to our our through customers and portfolio data. control in we drive our technology the engagement this Vault early expand give

hard work proud that I'm closed. on on infrastructure. the new acquisition Gen new these safety to the set Avast built also team this all since at the build to cyber new our share on foundational initiatives best-in-class of been launches which We has been technical Stack, have

and both given solution from a we've interface our minds our behavioral experience telemetry NextGen tech brightest protection, The stack to the makes that for our more us customers unified data. more With our relevant modern us teams, and extensive AI-enhanced our customers. personalized user that more for data enable strong a Gen threat created deliver to set enabled a provide Stack

learning of harness of the power rates we improvement hundreds our networks, protection, enable of additional of AI with customers further efficacy Gen. to the and future making of our the of and rate train of machine award-winning driving models threat safer current in data exceptional inherently threat comes us protects With millions visibility of these have all our scale which that users, Cyber massive the landscape. into Safety from amount The

The technical experience, their NextGen The we and does begin and but equally, lives. of benefits more intuitive, actual are messaging. delivering allows our product Stack us in It to tools the integrated a not protect more unquestionable, allows have customer reimagined on can offer experience, also if to to that digital the and for our more needs use fully to enhance it services and customers. contextual user-centric products smartly available un-intrusive something simple more us advise important their with match

the campaigns us time, helps and protect right the result, cross-sell extensive right machine models helps upsell which Our learning as and the better loyalty. customer bring people us to improve at right a them

advanced our driven engagement function AI this expanding We've with and models already learning technology to customers. with our started into personalize machine communications customer success

plan people of in around users millions of advanced All These are technology the us customers deliver all largest our protecting XX enabling against and on benefit Cyber of by from Cyber to over the world's most the capabilities our expand consumer Safety hundreds paid market products to and new globe comprehensive of and networks, Safety customers. these the threats. protects already online million which one platform, features best backed

transaction in and AI set financial enables financial lives, our capabilities, foundation our personalization the and order their and base with more Further a announced our accelerate offer to wellness long-term double strengthen offerings. diversify to financial This Safety. customer MoneyLion to of in addressable building market acquisition financial In Cyber our December, on of finally, than us personal management consumer model. tools, complete billion, over earlier we of $XX reinforces our stage enhances in

customers' and and opportunities customer financial open for and new address to We've but Gen accelerate for base. insight demand started our more our this will credit acquisition

about commentary half of the additional first it provide year can't we in fiscal until the While 'XX. transaction closes,

capabilities through our have that efforts Gen continue inorganic will offering the and financial wellness enhance build MoneyLion organic our out investments We today. to can and

expanding consumer of runway the needs by protect and their opportunities long and a assets. see we to summary, real fueled very In data

the best confidence have that loyalty. foundation inspires place customer Cyber We trust, and Safety in

Wellness come with pending from executing the our that as to drive operating think expect for consistent Financial demonstrate With empower And with disciplined accelerate while our double-digit to we're digital our and and revenue services I acquisition execution EPS phase of results accelerate team. to are same we're of MoneyLion, trust our just the customers growth. QX started. getting strategy and excited you've further such our we deliver our growth to next Our plan to

it to QX to with our let review performance that, detail. me Natalie So in pass

Natalie Derse

and Vincent, hello, everyone. Thank you,

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

constant Safety currency. QX execution up in legacy and and the up portfolio above increased million, was solid GEOs business our high Reported States. USD currency. growth. and in with We lines currency. our QX constant end bolstered of exclude in reflects across were X% Cyber midpoint guidance XXnd revenue our bookings of at and which bookings, $X X% with in constant growth broad-based EPS X% growth the $XXX another United quarter was exceeded X% consecutive and USD that the drove revenue and product of our quarter billion

and our of our product adoption security increasing our Identity, comprehensive recognize with purchase. breaches as safety gain continues for cross-sell membership awareness In With to strong cyber Security, consumers Norton momentum, Norton incremental need is and reflecting program grows after XXX protection. the initial consumer monetization alongside LifeLock

offerings, and needs, privacy Our base. greater customer bolstered AntiTrack by gaining shifts and security across namely Assistants the are traction privacy broader identity Privacy both towards market Monitoring

Direct up revenue supported was $XXX improvements performance million, our across metrics key at cohort level. by X%,

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

we Our in and as to highest we to we demand penetration where marketing GEOs, more ROI. prioritize customer see base is our in our diverse expand continue allocations broad-based the

markets quarter, strong. remain This in customer in international mobile and growth

we and in are product strategy their long-term While With early international and lower the marketing shifted in more markets, drive service our the different cross-sell brands to leverage app have decision, is in during increased unit we a reach and journey comprehensive dollars customer customers set customers to at mind up-sell. opportunities loyalty. our customer reach a and Mobile, to Cyber purchasing customer's Safety economics of remain these acquisition and costs, top intentionally stores potential these for

the early Norton security has our Norton increased indicators customers a the of mobile are percentage by an product. membership Mobile encouraged XXX our higher purchasing as are than which stand-alone We new ARPU

towards customer customer as shared increase our improved and growing And fund acquisition Investor in in-product and we marketing we that value Day, this extend playbook mid-single-digit contributing cycle are towards target. segments to products growth our base, we customer we We our expand. life we lifetime value as continue confident will across messaging as regions,

mid-single year-over-year that and prior due On was compared monetization, online about number and Keep activity even products across a cross-sell up digit When and $X.XX from direct GEOs, headwinds. $X.XX the is and year-over-year, tenure. ARPU our introduced and the our channels, the blended by base. X.XX, USD Note at we with mobile into $X.XX up results. negatively year's products cohort last ARPU quarter this customer monthly as the mind, metric review impacted up FX to is in upsell Across cohorts, this story stronger. was level, to scale quarter-over-quarter new is our

relationships a this we as journey level framework. direct and Similar map see for rates. at customers their the our reflected see services such approximately tenet to continue was in remains expanded value customers, execute strong highest base to first-year focus cohort our strong a stage we as continue XX.X%. to to retaining will QX, retention engagement each with flywheel driving also membership ARPU, powered new mobile add in gains customers and LifeLock Protection growth the customer long-lasting customer of our We to Scam our on tenured provided key of The rate In are road our features our to product by retention and Genie.

their expanding customers Identity Benefits and necessity $XXX Cyber to as we importance the the Turning our execute USD year constant Privacy currency of offerings. X% are up to for a employees. in Safety X in Partner million and Employee continues was strategy the Partner on grow ago. companies where digits more through as QX, recognize revenue as our and double Mobilizing to shared business.

new Our Stolen Internationally, such further. channel key strong, reputation adding by the partnerships pipeline are pipeline scale features as we strategic and privacy identity leveraging more to added Insurance. services conversion and are have we Funds scale to to and

products that driving compelling Japan. more Our in mobile bookings Digital Vault have shared, attached growth even with offering the Vincent double-digit become

proposition potential few Rounding partners $X.X revenue. and of to generating in years. over towards revenue value We Partner existing our progressing annual strengthen goal our to our the continue billion next out

the declining total approximately year-over-year our as a only quarter. represent we Our $XX revenue. million legacy of this digits prior business million continue lines double down to $XX contributed reminder, But our legacy quarter, expect from X% and revenue

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

plan, capacity the investments in creates portfolio crucial discipline. innovation continuous our our our model business are is in our which with and investing growth and we efforts, capabilities drive strategy. to operational efficient Our expansion sales to in R&D technology with make portfolio, our coupled our to Consistent

launch We decision new are with reach investing also in we portfolio evaluated audiences disciplined ROI spend framework. marketing, products incremental a and existing our as always with new within

growth focus core approach our the our driving business Cyber on same Safety We to will in continue invest with business. disciplined as we mid-single-digit sustainable in

XX% of was million, was XX%. income consecutive EPS representing the up of million. $XXX EPS expense our our $X.XX quarter to at debt net $XXX end QX Diluted growth. high guidance year-over-year, double-digit was related Interest and fifth up our

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

Turning cash balance to our and flow. sheet

$XXX million. QX ending cash was balance

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

was Our to X.Xx. EBITDA net debt leverage

we near-term our plan at billion unsecured in $X.X maturities, to senior note year refinance look XXXX XXXX. fiscal of we QX As

payment what allocation. mandatory cash, about our model, million trading Moving We're In details capital financial share Term $XX more we per Loan will $X MoneyLion A approximately certain an stock, we we December, Gen additional also excited our this our about the to of across are met. conditions and customers after for In announced and enables share in quarter, billion assuming $XX the closing. in combination which paid for Term of acquisition plus Loan B. debt

repurchases no or As pending pay of stock was the a in QX. result down debt there additional transaction,

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

XXXX, Board of $X debt time on billion February a fiscal the shareholders as year over of March share per all billion approved business quarterly of period. Directors XX, regular of on dividend cash $X.X fiscal paid deployed XX, QX be of Since $X.XXX of a share worth the repurchases For of common XXXX. down the close we of to over paid have of start for and record XXXX, total that have XXXX,

expand the balancing of accelerate to with strategy, and opportunistic Analyst paydown will remaining the portfolio. cash Following in flow continue and With of cash to capital opportunities laid disciplined objectives free while M&A to shareholders, and our out growth excess long-term deploy our our to closure dividend our our our further capital share allocation capital buyback flow execute long-term strong we allocation XXX% and will debt generation, between returning on deal, achieve maintaining we -- Day.

QX outlook. our 'XX to fiscal turning Now and

year of prior the growth results both and Safety translating operating Cyber again full midpoint, billion, revenue growth strong to to expressed our expected year-to-date, guidance by X%, we $X.XX range are in Safety currency. approximately Cyber our constant strengthening supported billion expect in Bookings the X% $X.XXX Given at

EPS at Investor QX range EPS the and We EPS we non-GAAP the XX% the in to range lower have to raised of $X.XX the non-GAAP the million in growth to EPS line non-GAAP share, with growth currency constant our representing $XXX This translates also in our $X.XXX billion XX% to objectives of expect in $X.XX guidance be end shared and $X.XX. per to range revenue to of Day. $X.XX of in and now QX

plan, strong. are We're In and the We trending performance the indicators summary, key target out our look year fiscal our on goals positioned remain execution closing with our financial long-term pleased in to and well forward we direction. XXXX to with results. right we for achieve

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

Operator

UBS. with Roger first Instructions] The company, [Operator question from comes Boyd the

Roger Boyd

know directional customers. of higher rates the mobile came were the rates, on cohort level, trends but retention on you by X year touch up there. to retention mix you impacted the mentioned wanted I I all Great. saw

reconcile improving with you retention strength we do numbers? how what the as then move you channels, to given around expecting see And the in here? mobile continued that international overall Just ARPU from of still are forward

Natalie Derse

the Yes. question. Thanks for

that retention QX, call that the albeit relatively then there's industry-leading rate total. top results definitely of were rounding of yes, which in to we to whether there. brand, So revenue we And as and is is you rate device cohorts, saw our all leads tenures to, being the -- the about point is retention strength What all KPIs. QX strength with in by one the by and the are And out what the up, in us said, confidence you're the line would in guide. [ as ] talking stable our I we

X% love ingredients call the pertains to we out we the it's together all to mix top look and the line what drive mix and We're it's Day. the strength what I'd the to they that the lanes output these positive -- that revenue so rate, at of down and in quarter-over-quarter, net X% for And the it performance of all cetera. exactly And positive our ARPU, as these rate really Analyst then customer ARPU, the being retention the are growth that's acceleration. metrics, the laid customer those acceleration, out confident feel we our quarter et When our count, metrics, saw whether all quarter we KPIs and retention -- growth. of as -- coming expanding together, with being KPIs. come last at metrics across and about revenue this of revenue count

evaluate demand that what GEOs, be globally experiences, And We the capture of to demand We're see performance, exactly across in are. as can we ingredients, revenue to across We an as is going as whether what want I our the products, mobile. customers the I desktop ROI-positive want after possibly or much that's see. where it's fashion. across I all

go-forward so how our eyes basis in fashion. they it, the the and And on how disciplined mix We and we come in together metrics? a a have on obviously operate

acceleration quarter-over-quarter. So X% delivering our and performing to X% from to that far, are the revenue expectation on we're KPIs

Operator

Andrew question from next Wells company comes with Our Nowinski the Fargo.

Andrew Nowinski

clarification. a just quick Maybe Great.

Bookings Safety X% is quarter. growth at Cyber the this So strong, certainly still

what given I up, guess, I ARPU quarter? Public new from you bump saw at think customer just just X%. But up, National that to up, retention onetime entirely quarter deceleration that said Data maybe adds was breach was you about from last last due down being the that

Natalie Derse

Yes.

you but there's If much demand conversations call specific that the no that can came the that. you on any can recall awareness did the that in NPD news, increased how pinpoint quarter, we Absolutely, say see chart last of when came our exactly of hit see traffic, and you from breach, on and

sales. in can You see that our

can You our conversion. that see in

customers, We that has point the tailwind peak, those the can cohorts as itself Safety customers obviously nature. and breach then result breach. in -- We with of we're X QX approximately acceleration we in benefits our we business. our in revenue quarter. And But as of keep on any that the keep to it's And -- rate lift course, service in properties. contracts. strength that do point NPD demand the will potential not And and of those we continue about terms It to our to that of we that rate onetime last any in pinned of for down awareness, impact from put has expect bookings X in we that in about continue how protection is talking we but the that yes, bookings we from fuel come retention awareness mind, any throughout our the growth bookings expand growth, foster to that see education, sustained. the our -- amortize evaluate therefore, and long thing now Cyber

Andrew Nowinski

relative but can the I'm That level, customer high their a provide, on different that MoneyLion the not very there's color just acquisition. follow-up makes and it's are yet, the like could the not membership. a financial -- squeeze at base it Norton wondering side. to I maybe seems a in But buying customers just on closed you I much know demographic sense. is If

synergies help see between X the us the wondering just if just you businesses? I'm where understand you So could

Vincent Pilette

take Vincent. is one. this Andrew, that I'll

data, addressing -- protection. we moved core we've towards security Identity, personal financial out me potential customers number Within many against data, need addressing we address there. that is what the web financial my of or your entire one moving protect what's Safety, consumer them Cyber a which and core assets my to around know, needs our identity the financial total being de-tracking and you with was from protect call from As were loss

And so we you migrate customers and leverage journey. are build Cyber credit your along kept as where most you of do asking financial credit? some largely, you insight Those about their into if credit financial you want, advanced of our their Safety more the those your do do How give wellness, insights? aspects. How some how

that a provide we started inside level of a the them of features the complete own first to layer revenue offer is customers building for Safety MoneyLion better protect that. insight Management to to feature, manage we do of PFM for. all back-end a product that architecture we at our organically Personal What of and Cyber of synergies So will kind can our around set Financial features that then feed

And is to then marketplace one financial second embedded decisions. best where can make also the choices make best they the

that up into is the a important. back-end entire there, bit have if our layer and which leveraging in layer around little out if it architecture or or credit building journey, push super brand, it MoneyLion the whether UI is a Then Norton Avast So and you first vision. LifeLock cross-selling then financial moving we of want, step a the is base protection it, installed is that you kind of or it's of our with with

the want Later MoneyLion offer some the and on, protection able the set, including grow. entire to be manage we'll of to that customers, of they to the assets

It views. a the our robust then personalization through for will enrich the it expand of will including those has Obviously, AI which to of much financial you'll Safety -- globally see more kind making capabilities. continue platform, us base. us features, set data, wellness, Cyber customer So and both other our richer two give benefits. are And and

Operator

Barclays. with company Saket comes Our next question the from Kalia

Saket Kalia

little Can little talk a if for guide, it bit to incremental full go year little maybe the full just of impacting to housekeeping just a about a year quarter. Can all? you ARPU Great Natalie, that's year kind impact and if movement was the question. of at just set any up bit. revenue full the you, at know impactful to that in FX how revenue level I a the see any guide all? you guidance

Natalie Derse

That's immaterial. relatively

Saket Kalia

forward? bundles XXX. some just Norton a of of like how in using state is state Got follow-up. adds of -- to going those kind higher-end was I of kind maybe base remarks, of and your terms in whether XXX squeeze Norton right, Vincent, of Genie now? you can in you of helpful. Can trend finding if so other there innovation it. really scams, just sort of in it think give That's percentage a much the around about us prepared terms or what things Maybe that talked And the you that it's can

Vincent Pilette

have is mentioned dynamic lot from the is set opportunities I within MoneyLion. We a okay, I old virus Safety. single there you're with bit Yes, I've or saying, low -- from still believe diversifying that towards investors different of that's of questions, the a you which a absolutely. discussion. I antivirus, a had I it's use business And a also moved growing the Cyber questions get digit, necessary landscape needs few threat is tools. your threat device, Antivirus very have can your little landscape. to And if actually to the a understand absolutely anti-scam protect

follow of you that, if the with threat our evolution. -- to And want portfolio, evolution the so that

[indiscernible] scammed, something is sure into lot doing it's out our dark don't a there to even antivirus whether protecting in see and e-mails, of web you a don't data then making your patches be it's our do. can pull protecting scam You that you new totally want features is sure whether again -- and or about making the get you

I membership. had now portfolio. single-digit Avast, across the I of of but and our XX%, structure. then yet membership think, view the Avast the all desktop, a before the X/X, I you the Genie XX%. So is we membership in acquire are we remember, adoption. know don't that more introduction One, are reach have platform about exact way the if to, that the remember for customers adopting at didn't XX% percentage percent we On into structure has our population full that around Avast entire our They view more And of

bit will you that on We But mobile, had include which towards is more. think structure. little have the of all we a future view our to make majority customers the bit little XX%, a When good I that We dropped continue product. membership progress still the XX%. in point

Operator

Next with RBC. question comes the Dan company from Bergstrom

Dan Bergstrom

It's for on Dan Matt Bergstrom Hedberg.

having good success XXX. mobile the you're like customers with purchasing Sounds Norton

out what the that areas drive into you're Maybe to little that you called remarks. the of You bit lead that doing mobile a help on XXX? there? of adoption Some prepared in could more

Vincent Pilette

take that. Yes. can I

enable be behavior to and their few essentially new launched the majority few think you launched also you we more of were So that move but on now want, the head Gen ago mobile fully Ultra is Avast, VPN give products months We mobile. to product us our launch a year care that definitely, on real-time new new enables consumer back Norton feedback I that product we on it's about Gen what With and as X and the Safe needs that our that we single a With sales products, launch into And we different a the you use of on they XXX to message tool, then Stack, then architecture. product after also ago. to years launched a features if the as enable platform. mobile structure new on to and Cyber membership protected.

engagement, engaged ARPU, whether was our want that account, all improve mobile, if because it's Natalie is metrics direction, course, ratios. That our tech retention, enabled has are having to to full right of but mentioning, all you us membership on that of the whether of the and it's it's more in moving with of trending cost platform.

Dan Bergstrom

have been know most where we of talk Vincent, something and remains in little efforts to personalization then, journey? the could about great. what then maybe are That's some And underway I of that personalization impactful And that customization you? are offerings? those a you maybe that's bit that

Vincent Pilette

Yes, definitely.

new is period cautious we on as very are to Gen the disciplined we first deploy everybody it. Stack. And deploy So the and

to product, the on that We'll on make developing the that various the in-product all As platforms activities. want, we the very messaging. us that AI-enabled further have IPM finish will want the a if that based We're you then in enable through on react customers. for a cohorts to sure to behaviors how it's models tailored use know, cut way. different working to well sets and team on and and smaller the migration LLM smooth and refine you now have We able be specific those looking based data at -- size of

brands want. whole the think you I everybody common personalization, of Once or hyper all on models be and we're then data either stock, a deployed if super of And team unified process. set across full, that is around a enabling mobilized has on can the our

Operator

Hamza from Stanley. comes with Fodderwala question the company, This next Morgan

Hamza Fodderwala

quick how of if buyback, given between know start but modeling the for a MoneyLion. one a pause about longer-term a just was how you. I right that, a to acquisition that about capital think could we of digest a you debt do balancing basis? you allocation now, on there's paydown, pending I bit once of should sense there thinking you're us give wondering Natalie,

Natalie Derse

we just just that, see once back move will we're consistently, we zoom in -- past we both. the do we right the get annual to at we as look as today numbers, market soon I would it script and out you right -- balance the do where you a can. Especially you'll if into in or Yes, of and the back the think in on we provided balance. us because to continue earlier remarks, deal on we're I locked get at We're to out the point -- strike you that. we'll prepared

the value value I -- and proposition for buyback. go in right we think understanding of paydown share time at in opportunistic when there debt we is really demonstrated both accelerated have terms our

be you'll too, we'll soon in market -- as the some so in mind, market, be that note from activity keep start more us. refinancing in we'll And unserved seeing we -- refi pretty that expressed,

changed really since in additional close the delivering past actually -- to soon here, of on value we've definitely AID. we'll We've allocation got we're really been relatively As tenants. our where that consistent be in has got focused nothing balanced say and but as deal capital the our through approach. with All I line

Operator

final question Our Bank of comes America. from Zilberman company, Tomer the with

Tomer Zilberman

I go and on ARPU. actually touch back to wanted

can maybe a Currency Or talked Are more $X.XX kind your broad-based that I about sequential would customers you so you have you adopting that this cross-sell there happen that call improvement. momentum? across but numbers? the normalized out improvement. helpful. to improve additional you XXX, of it quarter had Norton So upsell an negative of helped is $X.XX increasing specific mobile a anything be and $X.XX number you seeing anything impact, about call know sequential talked

Natalie Derse

the for question. you Thank Yes.

ingredients and to evaluate, going like see course, set we've indicators on cohorted they you out full metrics are kind full performance look at the I'm really But when year-over-year. to eye to I and That's indicated, us customers of the really of my the zoom of So the the key would quarterly the really growth keeping you're health perform. when because suite, our of business. encourage

at Cyber up were look of up so And you and overall that, we're retention in retention rate ARPU. X in Safety point $X.XX when the rate

at last growth, specifically components So would economics I perspective whether and against you're in are of the looking it consistent. the QX an very from say, or quarter, annualized

and we regions is shown the and cross-sell driving upsell success ARPU, really retention. terms across all base and have Norton studied working not in So impacts to increased is in driving but only the of

times what that of Vincent, in terms membership continue offering. being to to a of we diversify talked so new through And doing optimize we're has couple introduced. the products

the and So retention more and relevant -- gains demand. ARPU we coming the sell more and those from through in comes levers see retention see upsell continuously our rate more because that we higher. as see additional more and that lever, become It we as even the ARPU service, we offerings drives of the expand rate is customer as frankly and just acquisition

And opportunity. very why as consistent. They're that's such mobile it point are points, acquisition. just we starting just pertains the incredible then our behaviors And to but to different

they're healthy allows to as therefore, just the then go acquisition customer and after. internationally have in it ROI customers provide the very needs customers. Mobile we getting and these then services can opportunity And have of the to we really, We that familiar, to more us -- cohorts further educate

the customer So of of top CSM as funnel upsell retention experience and of customers we're flywheel the where diversifying really efforts. a very in to sending our a the at effect acquisition, with a were really, them leveraging experience, to cross-sell, it's all focused terms very unique and

the I they're when opinion, at in look them performance indicators, my in the I'll and level, direction. the helps. that Hope customer at trending [indiscernible] cohort And right

Operator

to proceed. pass At like CEO, I'd time, this to for may Pilette, conference the Vincent you the back closing remarks. over Vincent,

Vincent Pilette

Thank you, today. and joining everyone, thank call you, our for

Safety, As the provide everyone. for consumer have and leader we in vision a freedom bold Cyber digital

and today, coming to accelerate weeks. empower call new making Our Thanks products AI with acquisition Genie, forward wellness. will the the many as with look shared paying and days and you our the technologies. with for in speaking of our and MoneyLion investments Stack joining I in customers' today financial are we're Gen pending strategy off technology The we progress to the new phase next our

Operator

you That day. and call. for will conclude today's conference participation, enjoy the your your Thank rest of

Gen Digital (GEN) 30 Jan 252025 Q3 Earnings call transcript