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][24] - Non-GAAP operating margins remained robust at 52% and non-GAAP EPS exceeded guidance at $0.64, up 20% year over year [6][34] - Q1 revenue was $1.26 billion, up 30% year over year, with an extra fiscal week contributing approximately nine points to reported growth [24][25] - Excluding MoneyLion's contribution and the extra fiscal week, revenue increased 5% year over year [6][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 [8] - 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 [12] - MoneyLion's revenue grew 45% pro forma, driven by strong performance in personal financial management and its AI-powered financial marketplace [15][39] Market Data and Key Metrics Changes - Direct revenue channels grew 25% as reported and 6% pro forma, with strong fundamentals across channels and geographies [26] - Partner channels grew 68% as reported and 38% pro forma, driven by strength in employee benefits and international partnerships [27] - The total paid customer count reached over 76 million, with 40.6 million direct paid customers and 28 million engaged through partner channels [30][31] Company Strategy and Development Direction - The company is focused on product innovation and integration of MoneyLion, aiming to enhance customer experience and drive growth [5][7] - A unified go-to-market model and an AI-first strategy are being implemented to deepen competitive advantages and enhance agility [21] - The company is raising its annual revenue guidance by $100 million to a range between $4.8 billion to $4.9 billion, reflecting confidence in growth prospects [21][39] Management Comments on Operating Environment and Future Outlook - Management highlighted the importance of staying ahead of evolving cyber threats and emphasized a commitment to AI-driven innovation [10][12] - The company remains optimistic about the integration of MoneyLion and the potential for cross-selling opportunities [48][80] - Despite macroeconomic uncertainties, the business is resilient, supported by a recurring revenue base and strong customer retention [39] Other Important Information - The company plans to host an investor briefing on September 8 to provide deeper insights into its strategic direction [18] - The Q1 ending cash balance was $828 million, with operating cash flow of $409 million and free cash flow of $405 million, up 55% year over year [35][36] Q&A Session Summary Question: Can you discuss the fundamental trends in MoneyLion's business? - Management noted that MoneyLion's growth has accelerated, with a reported growth rate of 45% in Q1, driven by strong customer acquisition and increased transactional products per customer [44][46] Question: How does the company view pricing as a lever for monetization? - Management emphasized a strategy focused on innovation and delivering value, which allows for potential ARPU increases as new products are launched [49][55] Question: What operational improvements have been implemented in MoneyLion? - Management highlighted the focus on growth and operational integration, with expectations of continued innovation and margin improvement as the business scales [60][61] Question: What are the growth expectations for the Cyber Safety and Trust Based Solutions segments? - Management expects mid single-digit growth for the Cyber Safety segment and double-digit growth for Trust Based Solutions as MoneyLion is integrated [75][76] Question: Can you elaborate on the transition of MoneyLion's business model? - Management indicated plans to develop a membership structure to enhance customer engagement and retention, which may impact short-term bookings but drive long-term value [80]

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]

Q1 FY26 Earnings August 7, 2025 Forward-Looking Statements This presentation contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of hi ...

Core Insights - Gen Digital Inc. (GEN) is set to report its first-quarter fiscal 2026 results on August 7, with expected non-GAAP revenues between $1.18 billion and $1.21 billion, reflecting a year-over-year growth of 22.4% [1][8] - The company anticipates non-GAAP earnings per share in the range of 59-61 cents, with a consensus estimate of 60 cents, indicating a year-over-year increase of 13.2% [2][8] - Factors contributing to GEN's performance include increased demand for cybersecurity products, particularly due to a rise in global hacking incidents, and the successful launch of new features like Genie Scam Protection [3][4] Revenue and Segment Performance - The Consumer Security segment is projected to generate revenues of approximately $730.9 million, representing a 20.4% year-over-year increase, while the Identity and Information Protection division is expected to see revenues of $440.8 million, indicating a growth of 28.1% [4] - The increase in client bookings, strong retention rates, and international expansion are expected to positively impact top-line growth [5] Market Challenges - Despite positive indicators, GEN's performance may be affected by a decline in IT spending due to high interest rates and inflation, leading enterprises to defer significant IT investments [6][8] - The broader economic environment, including macroeconomic and geopolitical challenges, is also anticipated to weigh on enterprise demand [6] Earnings Expectations - The company's earnings model suggests a strong likelihood of an earnings beat, supported by a positive Earnings ESP of 1.67% and a Zacks Rank of 3 [7]

Analysis of AI-generated audio and facial manipulation techniques now available in early access phase through Norton Genie Scam Protection SOURCE Gen Digital Inc. Currently, Norton Deepfake Protection in Genie Scam Protection supports English-language YouTube videos with plans to expand platform and language support in future updates. To check for signs of scams in video content, people can upload YouTube links to Norton Genie AI Assistant and receive real-time guidance on the authenticity of a video. If ma ...