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]

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]

Financial Performance - Gen Digital reported Q1 FY26 revenue of $1.257 billion, a 30% year-over-year increase[31] - Bookings increased by 32% year-over-year to $1.202 billion in Q1 FY26[31] - Operating income for Q1 FY26 was $650 million, a 15% year-over-year increase[31] - EPS for Q1 FY26 reached $0.64, a 20% year-over-year increase[31] - The company is raising FY26 revenue guidance to $4.80 - $4.90 billion and EPS guidance to $2.49 - $2.56[52] Segment Performance - Cyber Safety Platform revenue increased by 11% year-over-year to $869 million in Q1 FY26, with an operating margin of 61%[37] - Trust-Based Solutions revenue increased by 110% year-over-year to $388 million in Q1 FY26[39] Customer Metrics - Gen Digital has scaled total paid customers to 76.2 million[45] - MoneyLion has 23.7 million lifetime customers as of Q1 FY26[60] Balance Sheet and Cash Flow - The company's free cash flow was $405 million in Q1 FY26[47] - Gen Digital's Debt/EBITDA Net Leverage is 3.4x[49]

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]

Core Insights - Norton has launched AI-powered deepfake protection through its Norton Genie AI Assistant, currently in early access phase, to help users defend against malicious AI-generated audio and video content [1][4] - The deepfake protection feature analyzes audio and visual content for signs of manipulation, providing contextual protection by identifying inconsistencies in physical features in videos [2][3] - The service currently supports English-language YouTube videos, with plans for future expansion in platform and language support [3] Company Overview - Norton is a leader in Cyber Safety and part of Gen (NASDAQ: GEN), dedicated to empowering digital freedom with trusted consumer brands [5] - The company aims to provide award-winning protection for devices, online privacy, and identity, certified by independent testing organizations [5] Product Features - The early access version of Norton Deepfake Protection is available on Norton 360 mobile products in the US, UK, Australia, and New Zealand, with desktop support coming soon [4] - The Genie AI Assistant offers real-time guidance on the authenticity of video content by allowing users to upload YouTube links [3][4] - Future updates will extend deepfake protection to AI PCs powered by Intel chipsets and enhance detection capabilities on both desktop and mobile platforms [4]