Core Insights - Gen Digital (GEN) has introduced a new feature in Norton 360 to protect users from deepfake scams, collaborating with Intel to enable real-time protection on Intel Core Ultra processors [1][4] - The feature enhances existing scam protection by checking both video and audio for signs of fake content and is currently available in the US, UK, Australia, and New Zealand [2][3] Product Development - Continuous updates to Norton 360 reflect the company's commitment to addressing emerging AI scams, potentially attracting new customers and retaining existing ones [3][4] - The new feature is designed to provide users with greater confidence while browsing or consuming content online, as AI scams become increasingly sophisticated [4] Partnerships and Market Expansion - Gen Digital is expanding its deepfake protection beyond Intel to include Qualcomm and AMD, ensuring Norton protection is available across major AI PC platforms [5][7] - The scam detection features are already operational on Windows AI PCs powered by Qualcomm Snapdragon X chips, allowing real-time alerts without cloud dependency [6] - Support for AMD is expected later this year, further broadening the coverage for AI PC users [7][8] Strategic Positioning - This multi-partner approach positions Norton as a standard security solution for users seeking reliable on-device protection against scams and deepfakes, regardless of the processor brand [8] - The partnerships with Qualcomm and AMD enhance market reach and flexibility for customers, contributing to long-term growth opportunities in cyber safety and financial wellness [8]

Core Insights - Norton Small Business has expanded its offerings to include Dark Web Monitoring and Social Media Monitoring features to help protect small businesses from data breaches and account takeovers as incidents surge [1][2][3] Industry Trends - Data breaches impacting businesses have surged by 20% in the last quarter, with overall breach attacks on small businesses increasing by over 50% in 2025 [2] - Attackers are increasingly purchasing stolen information on the Dark Web and impersonating vendors, leading to significant financial and reputational damage for small businesses lacking adequate protection [2] Company Developments - Norton has introduced Enhanced Dark Web Monitoring that continuously scans for compromised business data, including specific fields like Company Name and Tax ID number, and alerts business owners upon detection [3] - The new Social Media Monitoring feature provides early warnings of account takeover attempts and scams on platforms like Facebook and Instagram, addressing the rise in financial scams reported in the Q2 Gen threat report [4] - Dark Web Monitoring is available in Norton Small Business Standard and Premium plans across multiple regions, while Social Media Monitoring is offered in the Premium plan in the US and UK [5]

Financial Data and Key Metrics Changes - In Q1, bookings and revenue grew over 30% year over year on a reported basis and 10% on a pro forma basis [6] - Non GAAP operating margins remained robust at 52% and non GAAP EPS exceeded guidance at $0.64, up 20% year over year [6][36] - Q1 bookings were $1.2 billion, up 32% year over year, and revenue was $1.26 billion, up 30% year over year [25] Business Line Data and Key Metrics Changes - The Cyber Safety Platform represented two-thirds of Q1 revenue, growing 11% on a reported basis and 4% when normalizing for the extra week [9] - Trust Based Solutions represented one-third of revenue, growing over 100% on a reported basis and 25% when normalized for the extra week and MoneyLion baseline [13] - MoneyLion's revenue grew 45% pro forma, driven by personal financial management offerings and the AI-powered financial marketplace [15] Market Data and Key Metrics Changes - The direct revenue channels grew 25% as reported and 6% pro forma, with strong fundamentals across channels and geographies [27] - Partner channels grew 68% as reported and 38% pro forma, driven by strength in employee benefits and international partnerships [28] - The total paid customer count reached over 76 million, with 40.6 million direct paid customers and 28 million engaged through partner channels [30][32] Company Strategy and Development Direction - The company is focused on product innovation and integration of MoneyLion, with plans to launch the first integrated product under Gen's brand by fall [7][18] - The strategy includes leveraging AI for operational efficiency and customer engagement, aiming to become an AI-first company [20][21] - The company raised its annual revenue guidance by $100 million to a range of $4.8 billion to $4.9 billion, reflecting confidence in growth [21][41] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business amid macroeconomic uncertainty, supported by a recurring revenue base and strong customer retention [41] - The evolving cyber threat landscape necessitates continuous innovation and proactive measures to protect consumers [10][11] - The integration of MoneyLion is expected to enhance customer engagement and retention, driving long-term value creation [18][82] Other Important Information - The company plans to host an investor briefing on September 8 to discuss strategic direction and MoneyLion's product portfolio [17] - Q1 operating income was $650 million, translating to a 52% operating margin, with high margins expected to continue [35] - The company repurchased nearly 5 million shares during Q1 and paid down $180 million in debt [38] Q&A Session Summary Question: Can you discuss the fundamental trends in MoneyLion's business? - Management noted that MoneyLion's growth accelerated to 45% in Q1, with strong performance in both personal financial management and the marketplace [46][48] Question: How does the company view pricing as a lever for monetization? - The strategy focuses on delivering innovative products that enhance customer protection, which in turn justifies price increases and higher ARPU [50][56] Question: What operational improvements have been implemented in MoneyLion? - Management highlighted the focus on growth and operational integration, with expectations for continued innovation and margin improvement [62][63] Question: What drove the strength in the Cyber Safety business in Q1? - The company attributed the strength to cross-selling, upselling, and strong retention rates, maintaining a mid single-digit growth rate [72][73] Question: How will the growth rates of the new reporting segments be structured going forward? - Cyber Safety is expected to maintain mid single-digit growth, while Trust Based Solutions is projected to see double-digit growth as it integrates with MoneyLion [76]

Core Insights - The 2025 Norton Cyber Safety Insights Report highlights significant challenges parents face regarding cyberbullying and children's use of AI for emotional support, with 24% of parents reporting their children have been victims of cyberbullying and 41% indicating their children turn to AI for companionship [1][6] Cyberbullying Statistics - Over half (54%) of cyberbullying victims reported that the perpetrator was a classmate or peer, indicating that bullying extends beyond school hours and into digital spaces [2][4] - The report identifies various platforms where cyberbullying occurs, with social media being prominent: Facebook (52%), YouTube (46%), Instagram (45%), Snapchat (40%), and TikTok (37%) [4] Children's Digital Behavior - A significant number of parents (86%) attempt to manage their child's screen time, yet 56% of children find ways to bypass these limits [5] - Parents report concerning online behaviors among children, including accessing blocked sites (25%) and engaging in cyberbullying (9%) [5] Role of AI in Children's Lives - The report notes that 41% of parents say their children use AI for companionship, with 46% specifically using ChatGPT [6] - While 40% of parents recognize the benefits of AI for learning, there are concerns about its unintended effects, with fathers more likely to see its benefits compared to mothers [7] Recommendations for Parents - The report provides actionable steps for parents to enhance their children's online safety, including starting conversations about online behavior early, using parental control tools, teaching children to recognize red flags, modeling healthy tech use, and staying involved in their online activities [9][10][11][12][12]

Core Insights - Gen Digital Inc. is set to host an investor event to discuss its strategic expansion into Financial Wellness following the acquisition of MoneyLion [1][2] - The event will cover the company's vision for financial wellness, platform integration, product capabilities, and market strategies [1] - Gen aims to combine cyber safety and financial wellness solutions to provide value for consumers and shareholders in a digital-first environment [1] Event Details - The Financial Wellness Opportunity: Analyst and Investor Briefing 2025 is scheduled for September 8, 2025, from 10:30 AM to 12:30 PM EST in New York City [2] - A live webcast of the event will be available on the company's investor relations website and will be accessible for replay for one year [2] Company Overview - Gen Digital Inc. (NASDAQ: GEN) focuses on empowering Digital Freedom through its consumer brands, including Norton, Avast, LifeLock, and MoneyLion [3] - The company aims to provide financial empowerment and cyber safety for digital generations, serving nearly 500 million users across more than 150 countries [3] - Gen offers award-winning products and services in cybersecurity, online privacy, identity protection, and financial wellness [3]

Core Insights - Over half (59%) of older loved ones have fallen victim to cybercrime, highlighting the need for increased Cyber Safety education among families [1] - The majority (84%) of adults have warned their older relatives about risky online behavior, but only 53% of those warned changed their habits [4][2] - Avast is providing new resources and tools to help families bridge the safety gap and prevent cybercrime [1] Group 1: Cybercrime Statistics - 59% of older loved ones have been victims of cybercrime, primarily due to scams and social engineering [1] - 80% of cybercrime originates from scams and social engineering tactics [1] - Nearly half (47%) of older adults still write down their passwords on paper, indicating a lack of awareness about secure practices [4] Group 2: Family Communication and Education - Only 53% of older adults who were warned about risky online behavior followed through and changed their habits [2] - The role reversal in educating parents and grandparents about online safety poses challenges for younger generations [3] - Empowering families to discuss online safety openly is essential for improving Cyber Safety [5] Group 3: Best Practices for Cyber Safety - Recommended practices include strengthening password habits, spotting red flags in communications, and knowing common scams targeting older adults [8][13] - Families are encouraged to have the "Safe Tech Talk" and make Cyber Safety a routine priority [6][9] - Utilizing smart safety tools and creating a "phone-a-friend" plan can enhance Cyber Safety efforts [13]

Financial Data and Key Metrics Changes - Fiscal year 2025 total bookings reached a record $4 billion, up 4% year over year, with revenue exceeding the high end of annual guidance [8][25] - Non-GAAP operating margin was a record 58.4%, reflecting strong cost controls and operational efficiencies [9][26] - Non-GAAP EPS for the year was $2.22, up 15% year over year, and at the high end of annual guidance [9][26] - Q4 revenue exceeded $1 billion for the first time, reaching $1.01 billion, up 5% year over year [27][26] - Q4 operating income was $590 million, translating to an operating margin of 58.4% [33] Business Line Data and Key Metrics Changes - Direct revenue in Q4 was $877 million, up 4% in constant currency, with a customer base increase to 40.4 million, up 1.3 million year over year [27][28] - Partner revenue in Q4 was $121 million, up 15% year over year, driven by growth in the employee benefits channel [31][32] - The identity theft protection segment saw double-digit growth internationally, with increased demand for LifeLock [12][14] Market Data and Key Metrics Changes - The identity category grew double digits internationally, with privacy and identity products introduced in 15 new markets [14] - The overall customer base grew to over 65 million direct and indirect paid customers, with nearly 45% having comprehensive cyber safety memberships [15] Company Strategy and Development Direction - The company is focused on increasing innovation pace and expanding geographic reach to enhance its cyber safety platform [10][12] - The acquisition of MoneyLion aims to expand into financial wellness, enhancing the company's total addressable market [16][17] - The business will operate under two segments: Cyber Safety Platform and Trust Based Solutions, with a focus on driving profitable growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic uncertainties, citing a strong subscription model [68][69] - For fiscal year 2026, the company expects revenue between $4.7 billion and $4.8 billion, representing 6% to 8% pro forma growth [22][39] - Non-GAAP EPS for fiscal year 2026 is projected to be between $2.46 and $2.54, indicating double-digit growth [39] Other Important Information - The company plans to continue a balanced capital allocation strategy, focusing on share repurchases and debt pay down [48][36] - The Q4 ending cash balance was over $1 billion, with liquidity exceeding $2.5 billion [34][35] Q&A Session Summary Question: Guidance for fiscal year 2026 and MoneyLion growth visibility - Management confirmed that guidance is based on maintaining current momentum in both the Cyber Safety Platform and MoneyLion, with expected growth rates of mid-single digits for Cyber Safety and around 24-25% for MoneyLion [44][45] Question: Capital allocation strategy regarding share repurchases - Management indicated a balanced approach to capital allocation, focusing on both share repurchases and debt pay down, with plans to resume share buybacks post-acquisition [48][49] Question: Impact of MoneyLion's customer network on potential subscribers - Management highlighted the opportunity to cross-sell to MoneyLion's customer base and enhance offerings through the integration of financial wellness features [55][58] Question: Resilience of the business amid macroeconomic uncertainty - Management reassured that the business model is resilient, with a strong subscription base and continued demand for cyber safety products [68][69] Question: Indirect revenue growth outlook - Management expects sustainable, profitable high single-digit growth in the indirect channel, particularly from employee benefits and telco partnerships [87][88]