Net Customer Additions
Q: What's driving the impressive net adds this quarter?
A: The company added 389,000 net new customers " , driven by expansion in mobile solutions and international markets, as well as increased demand for identity offerings following the National Data Breach. Growth was broad-based across all brands and regions, including the Americas and Europe. " "

Impact of National Data Breach
Q: How has the National Data Breach affected your business?
A: The National Data Breach heightened awareness of cyber risks, leading to increased demand for identity protection services like LifeLock. " " About one in three Americans now have enough personal data exposed on the dark web for criminals to commit identity theft. " This surge in awareness fueled more LifeLock acquisitions and upgrades to higher-tier offerings, resulting in a very healthy quarter. "

Cross-sell Penetration and ARPU Growth
Q: Did you see improvements in cross-sell and LifeLock attach rates?
A: Yes, cross-sell penetration increased and has been a consistent growth driver, contributing to bookings growth and higher ARPU. " LifeLock attach rates improved, with more customers upgrading to memberships that include identity protection, especially due to increased market demand after the data breach. "

Employee Benefit Channel Growth
Q: How is the employee benefit channel performing?
A: The employee benefit channel continues to grow at double-digit rates. " We're acquiring new accounts and increasing sign-ups within existing accounts by enhancing marketing and engagement efforts. We feel optimistic about the continued development of this channel, including introducing new products like full Reputation Defender services. "

Genie AI Monetization and Expansion
Q: What's the plan for integrating Genie AI across your offerings?
A: After achieving 1.6 million downloads " , we're integrating Genie AI into our portfolio. We'll embed it as an anti-scam assistant in Norton 360 plans, expanding features to address text scams, voice scams, call blocking, and scam insurance. Monetization will come from customers upgrading to higher-tier plans and cross-selling Genie Pro. "

Bookings Growth and Revenue Outlook
Q: What does the 5% bookings growth indicate for future revenue?
A: With 5% constant currency bookings growth " , we expect revenue to roll off the balance sheet consistently over the next 12 months, as most of our business is on annual subscriptions recognized ratably. "

Capital Allocation Strategy
Q: How are you balancing buybacks and deleveraging?
A: We'll continue our consistent approach to capital allocation, balancing share buybacks and debt reduction. " Given changes in the debt market and cost of debt, we'll adjust based on macroeconomic indicators. In Q2, high cash usage constrained additional capital allocation, but we anticipate a balanced strategy in the back half of the year. "

Retention Rates Trends
Q: How are first-year retention rates trending?
A: First-year retention rates are consistent to up, supported by our innovative product roadmap, competitive pricing, and personalized customer engagement. " Overall retention rates have scaled up to 78%, with first-year renewal rates higher than in the past. "

Advertising Costs and Margins
Q: How are advertising costs impacting margins?
A: Advertising costs vary across brands and channels, with customer acquisition costs stable to up due to increased competitiveness. " We optimize marketing spend for healthy ROI and leverage channel diversification. Acquiring higher-value customers like LifeLock users entails higher initial costs but results in higher lifetime value. "

Currency Impact on Guidance
Q: How is currency fluctuation affecting your guidance?
A: Currency impact is immaterial for us. " When we revise our guidance, we use current currency rates without projecting future fluctuations. "