| Metric [Unit: $ Million] | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Americas                 | **622**  **[0000849399-23-000008_gen-20221230.htm:26]**  | **66%** of total revenue  **[0000849399-23-000021_gen-20230630.htm:33]**  | **622**  **[0000849399-23-000021_gen-20230630.htm:17]**  | **616**  **[0000849399-23-000029_gen-20230929.htm:38]** **[0000849399-23-000029_gen-20230929.htm:21]**  | **621**  **[0000849399-24-000008_gen-20231229.htm:22]**  | **2,493** for FY 2024  **[0000849399-24-000036_gen-20240329.htm:60]** **[0000849399-24-000036_gen-20240329.htm:112]**  | **66%** of total revenue  **[0000849399-24-000042_gen-20240628.htm:29]**  | **641**  **[0000849399-24-000081_gen-20240927.htm:18]**  |
| EMEA                     | **220**  **[0000849399-23-000008_gen-20221230.htm:26]**  | **24%** of total revenue  **[0000849399-23-000021_gen-20230630.htm:33]**  | **225**  **[0000849399-23-000021_gen-20230630.htm:17]**  | **237**  **[0000849399-23-000029_gen-20230929.htm:38]** **[0000849399-23-000029_gen-20230929.htm:21]**  | **230**  **[0000849399-24-000008_gen-20231229.htm:22]**  | **920** for FY 2024  **[0000849399-24-000036_gen-20240329.htm:60]** **[0000849399-24-000036_gen-20240329.htm:112]**  | **24%** of total revenue  **[0000849399-24-000042_gen-20240628.htm:29]**  | **233**  **[0000849399-24-000081_gen-20240927.htm:18]**  |
| APJ                      | **94**  **[0000849399-23-000008_gen-20221230.htm:26]**   | **10%** of total revenue  **[0000849399-23-000021_gen-20230630.htm:33]**  | **99**  **[0000849399-23-000021_gen-20230630.htm:17]**   | **95**  **[0000849399-23-000029_gen-20230929.htm:38]** **[0000849399-23-000029_gen-20230929.htm:21]**   | **100**  **[0000849399-24-000008_gen-20231229.htm:22]**  | **399** for FY 2024  **[0000849399-24-000036_gen-20240329.htm:60]** **[0000849399-24-000036_gen-20240329.htm:112]**  | **10%** of total revenue  **[0000849399-24-000042_gen-20240628.htm:29]**  | **100**  **[0000849399-24-000081_gen-20240927.htm:18]**  |

91c4e130ab584c6f51508950eba9de42e08049a8ede37dbba8080ee2861870ac

a924d88a1b0dce5b4821850ac2a7deac9d92550415220d21ebc5185fb34587db

Direct Customer Count

Direct ARPU

Retention Rate

ec43fcc5affcde6b4df2743c3798e0119259658b19e65f95cead5e7d8eaa412d

Gen Digital Inc. is a global company specializing in cyber safety solutions, offering a range of products through well-known consumer brands such as Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner. The company provides solutions in three main categories: security and performance management, identity protection, and online privacy, reaching approximately 500 million users across more than 150 countries **[0000849399-24-000036_gen-20240329.htm:5]** **[0000849399-24-000036_gen-20240329.htm:54]**. Gen Digital's revenue is primarily generated from its cyber safety portfolio, which includes consumer security and identity and information protection products **[0000849399-24-000036_gen-20240329.htm:111]**. The company employs a multi-channel sales strategy, utilizing both direct-to-consumer and indirect partner distribution channels, with offerings available as free and paid subscriptions **[0000849399-24-000036_gen-20240329.htm:5]** **[0000849399-24-000081_gen-20240927.htm:5]**.

1. **Consumer Security** - Offers comprehensive security solutions to protect users from online threats, including antivirus and anti-malware software.
2. **Identity and Information Protection** - Provides services to safeguard personal information and prevent identity theft, including credit monitoring and identity restoration.
3. **Online Privacy** - Delivers tools to enhance user privacy online, such as VPN services and privacy management software.
4. **Legacy Products** - Maintains and supports older products that have been discontinued or are in maintenance mode, contributing a minor portion of the company's overall revenue.

0639fad363b04d62c2f28f3e3d0d68664eb9609b69c3913a37534fd294514e51

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

072be81abed8d222378bdb8d6e17f5020c228df3eb22197ed7e62842121bdec5

443b892ae4817fd3f59eb9d9a7a2dcf0c157fa81b85b76aeb25c5f116a5a9eca

39ce3ae995c8c95b710b2256c015ff1ace3b07b915ad3e1a4bb7525916dc185f

| Metric / Quarter             | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Direct Customer Count        | 38.4 **[0000849399-23-000008_gen-20221230.htm:41]** | 38.2 **[0000849399-23-000011_ex9901q4fy23.htm:5]** | 38.2 **[GEN_3307216_3]** **[0000849399-23-000021_gen-20230630.htm:32]** | 38.5 **[0000849399-23-000029_gen-20230929.htm:37]** **[0000849399-23-000027_ex9901q2fy24.htm:6]** | 38.9 **[0000849399-24-000008_gen-20231229.htm:37]** **[0000849399-24-000006_ex9901q3fy24.htm:0]** | 39.1 **[0000849399-24-000036_gen-20240329.htm:59]** **[0000849399-24-000022_ex9901q4fy24.htm:6]** | 39.3 **[GEN_3395788_1]** **[GEN_3395788_5]** **[0000849399-24-000042_gen-20240628.htm:29]** | 39.7 **[0000849399-24-000079_ex9901q2fy25.htm:6]** |
| Direct ARPU                  | 7.09 **[0000849399-23-000008_gen-20221230.htm:41]** **[0000849399-23-000005_ex9901q3fy23.htm:5]** | 7.24 **[GEN_3251019_3]** **[0000849399-23-000011_ex9901q4fy23.htm:5]** | 7.26 **[0000849399-23-000021_gen-20230630.htm:32]** **[0000849399-23-000016_ex9901q1fy24.htm:5]** | 7.28 **[0000849399-23-000029_gen-20230929.htm:37]** **[0000849399-23-000027_ex9901q2fy24.htm:6]** | 7.21 **[0000849399-24-000008_gen-20231229.htm:37]** **[GEN_3371717_3]** | 7.24 **[0000849399-24-000022_ex9901q4fy24.htm:6]** | 7.23 **[0000849399-24-000040_ex9901q1fy25.htm:5]** | 7.26 **[0000849399-24-000079_ex9901q2fy25.htm:6]** **[0000849399-24-000081_gen-20240927.htm:33]** |
| Retention Rate               | 75 **[GEN_3226568_2]** **[GEN_3226568_5]** **[0000849399-23-000008_gen-20221230.htm:59]** | 76 **[GEN_3251019_4]** **[0000849399-23-000011_ex9901q4fy23.htm:5]** | 76 **[GEN_3384560_5]** **[GEN_3307216_4]** | 90 (LifeLock) **[GEN_3364714_5]** | 77 **[GEN_3371717_3]** **[0000849399-24-000008_gen-20231229.htm:37]** | 77 **[GEN_3388137_14]** **[GEN_3388137_5]** **[0000849399-24-000036_gen-20240329.htm:59]** **[0000849399-24-000022_ex9901q4fy24.htm:6]** | 78 **[GEN_3395788_8]** **[GEN_3395788_6]** **[0000849399-24-000042_gen-20240628.htm:29]** | 78 **[0000849399-24-000079_ex9901q2fy25.htm:6]** |

55d16e3d71b73f70f22c8d69c7f787e2795edf698ea881e507c15cbe414ddbb9

| Metric [USD Million] | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Consumer Security Revenues | **$590**  **[0000849399-23-000008_gen-20221230.htm:25]**  | N/A | N/A | **$604**  **[0000849399-23-000029_gen-20230929.htm:20]**  | **$602**  **[0000849399-24-000008_gen-20231229.htm:21]**  | N/A | N/A | N/A |
| Identity and Information Protection Revenues | **$323**  **[0000849399-23-000008_gen-20221230.htm:25]**  | N/A | N/A | **$328**  **[0000849399-23-000029_gen-20230929.htm:20]**  | **$334**  **[0000849399-24-000008_gen-20231229.htm:21]**  | N/A | N/A | N/A |
| Total Cyber Safety Revenues | **$913**  **[0000849399-23-000008_gen-20221230.htm:25]**  | **$3,273** (fiscal year)  **[0000849399-23-000014_gen-20230331.htm:128]**  | **$929**  **[GEN_3307216_3]**  | **$932**  **[0000849399-23-000029_gen-20230929.htm:20]**  | **$936**  **[0000849399-24-000008_gen-20231229.htm:21]**  | **$952**  **[0000849399-24-000022_ex9901q4fy24.htm:6]**  | **$951**  **[0000849399-24-000040_ex9901q1fy25.htm:5]**  | **$962**  **[0000849399-24-000079_ex9901q2fy25.htm:6]**  |
| Legacy Revenues | **$23**  **[0000849399-23-000008_gen-20221230.htm:25]**  | **$17**  **[0000849399-23-000011_ex9901q4fy23.htm:5]**  | **$17**  **[GEN_3384560_5]** **[GEN_3307216_3]**  | **$16**  **[0000849399-23-000029_gen-20230929.htm:20]**  | **$15**  **[0000849399-24-000008_gen-20231229.htm:21]**  | **$15**  **[GEN_3388137_6]** **[0000849399-24-000022_ex9901q4fy24.htm:6]**  | **$14**  **[GEN_3395788_6]** **[0000849399-24-000040_ex9901q1fy25.htm:5]**  | **$12**  **[0000849399-24-000079_ex9901q2fy25.htm:6]** **[0000849399-24-000081_gen-20240927.htm:33]**  |
| Total Net Revenues | **$936**  **[0000849399-23-000008_gen-20221230.htm:25]**  | N/A | **$946**  **[0000849399-23-000016_ex9901q1fy24.htm:0]** **[GEN_3307216_3]**  | **$948**  **[0000849399-23-000029_gen-20230929.htm:20]**  | **$951**  **[0000849399-24-000008_gen-20231229.htm:21]**  | **$967**  **[GEN_3388137_4]** **[0000849399-24-000022_ex9901q4fy24.htm:0]**  | **$965**  **[GEN_3395788_5]** **[0000849399-24-000040_ex9901q1fy25.htm:0]**  | **$974**  **[0000849399-24-000079_ex9901q2fy25.htm:0]** **[0000849399-24-000081_gen-20240927.htm:29]**  |

3f69ebb36ca7b688129a38d614bd5685eab241e68c24fb46325bb0432bd31d8a

1. Given the impact of foreign exchange headwinds on ARPU, particularly from the depreciation of the Japanese yen, what specific measures are you taking to mitigate these FX risks and protect your revenue growth?  **[GEN_3395788_13]** 
2. With your guidance for fiscal 2025 relying on a 3% to 4% growth in cyber safety revenue, what are the underlying assumptions behind this growth, and how confident are you in achieving these targets given the current market conditions?  **[GEN_3395788_7]** 
3. Can you provide more insight into the health of the consumer, and how any changes in consumer behavior might affect your pipeline and growth prospects for fiscal 2025 compared to the previous year?  **[GEN_3395788_10]** 
4. Despite reporting growth in customer count and ARPU, retention rates still haven't reached your goal of 80%. What challenges are you facing in achieving higher retention, and what strategies are you implementing to improve this metric?  **[GEN_3395788_4]** 
5. Given that your partner revenue was $101 million this quarter, and you aim to scale your partner business to $0.5 billion annually, what are the key obstacles you face in expanding this channel, and how do you plan to overcome them to achieve this target?  **[GEN_3395788_6]** 

ff0919b2c5ce5fb6b7cd4e418595ae68f151fdbe3b819fc0c79883a951e91558

- **Apple** - Competitor in Security and Online Privacy segments.
- **Bitdefender** - Competitor in Security segment and as an independent software vendor.
- **ESET** - Competitor in Security segment.
- **F-Secure** - Competitor in Security segment.
- **Google** - Competitor in Security and Online Privacy segments, and as an OS provider.
- **Kaspersky** - Competitor in Security segment and as an independent software vendor.
- **Malwarebytes** - Competitor in Security segment.
- **McAfee** - Competitor in Security segment and as an independent software vendor.
- **Microsoft** - Competitor in Security and Identity Protection segments, and as an OS provider.
- **Trend Micro** - Competitor in Security segment and as an independent software vendor.
- **Webroot** - Competitor in Security segment.
- **Equifax** - Competitor in Identity Protection segment.
- **Experian** - Competitor in Identity Protection segment.
- **TransUnion** - Competitor in Identity Protection segment.
- **Allstate** - Competitor in Identity Protection segment.
- **Aura** - Competitor in Identity Protection and Online Privacy segments.
- **Generali (Iris)** - Competitor in Identity Protection segment.
- **Intuit (Credit Karma)** - Competitor in Identity Protection segment.
- **Brave** - Competitor in Online Privacy segment.
- **DuckDuckGo** - Competitor in Online Privacy segment.
- **IPVanish** - Competitor in Online Privacy segment.
- **Kape** - Competitor in Online Privacy segment.
- **Mozilla** - Competitor in Online Privacy segment.
- **Nord Security** - Competitor in Online Privacy segment.
- **1Password** - Competitor as a 'pure play' company developing additional competing products.
- **Bark** - Competitor as a 'pure play' company developing additional competing products.
- **Dashlane** - Competitor as a 'pure play' company developing additional competing products.
- **LastPass** - Competitor as a 'pure play' company developing additional competing products.
- **Life360** - Competitor as a 'pure play' company developing additional competing products.
- **Proton** - Competitor as a 'pure play' company developing additional competing products.
- **Truecaller** - Competitor as a 'pure play' company developing additional competing products.

0667ddf1e8cb9055929ab89f35eb285a7ebb599e28c0ac846a7f2656ed059e57

Americas

EMEA

- United States

International

Total Revenue

d358e5f7212a258da0240c364251bf77b4e46de651637db5a4be4cc82e8fa527

Direct customer count (millions)

Direct average revenue per user (ARPU) (USD)

Retention rate (percent)

Remaining performance obligations (USD millions)

Percentage of the remaining performance obligations to be recognized over the next 12 months (percent)

eafcab8469d54b1896c65f9de1e261eef82e909a05bf4aebe2fa31af0072b364

13cf2b1b53151a2025f778257b176aae33813e77097e9918a3334800c1bd474c

- The company's effective cross-sell and upsell strategies are increasing **ARPU by $0.09 year-over-year**  **[GEN_3413783_15]** , and enhancing retention rates, with **Q3 retention rate approximately 77.5%**.  **[GEN_3413783_7]**  This success is driven by strong customer acquisition ROI, particularly in mobile and international markets, leading to **net customer growth for the sixth consecutive quarter**.  **[GEN_3413783_7]**
- The ongoing shift to a membership model with high-value products like **Norton 360**, now adopted by **around 50% of desktop customers**  **[GEN_3413783_13]** , and the deployment of the new **Gen Stack** are expected to enhance customer engagement through AI-driven personalization and drive future growth.  **[GEN_3413783_11]**
- The pending acquisition of **MoneyLion** will enhance the company's ability to cross-sell financial wellness offerings to their customer base, providing the back-end architecture for personal financial management features, enriching their AI and personalization capabilities, and is expected to drive future growth.  **[GEN_3413783_9]**

6552dab77214a08084ac8acfab96d6bd8edf3dbbcb764f5b914157007518d3e6

- **Deceleration in Cyber Safety bookings growth from 5% last quarter to 4% this quarter**.  **[GEN_3413783_8]**  The previous quarter's growth was boosted by a **one-time event** (National Public Data breach), indicating underlying growth may be slowing.
- **Retention rates may be negatively impacted by a higher mix of mobile year 1 customers**, which could affect overall retention moving forward.  **[GEN_3413783_7]**  As the company expands its mobile and international customer base, maintaining high retention rates may become challenging.
- **Uncertainty surrounding the pending acquisition of MoneyLion**, including potential **integration challenges due to different customer demographics**  **[GEN_3413783_9]** , and a pause in capital allocation activities like share buybacks and debt repayment.  **[GEN_3413783_14]**  This could affect shareholder returns and increase execution risk.

55c6a1919af8d01ce9a5e078d2bcb18d5a19f207af7462b43d902d560ede4af8

1. **MoneyLion Acquisition Synergies**  
   **Q:** What are the synergies expected with MoneyLion acquisition?  
   **A:** Vincent explained that MoneyLion will enhance their Cyber Safety platform by adding Personal Financial Management features, enabling cross-selling opportunities to their customer base. This will enrich their AI and personalization capabilities and allow offering financial wellness services, making the platform richer for customers.  **[GEN_3413783_9]** 

2. **Capital Allocation After MoneyLion Acquisition**  
   **Q:** How will capital allocation balance debt and buybacks post-acquisition?  
   **A:** Natalie stated they plan to resume both debt paydown and share buybacks once the MoneyLion deal closes. They aim to strike the right balance, as they've done historically, and will enter the refinancing market soon to refinance the unserved note.  **[GEN_3413783_14]** 

3. **Revenue Growth and NPD Breach Impact**  
   **Q:** Was bookings growth deceleration due to last quarter's NPD breach?  
   **A:** Natalie noted that last quarter's bookings growth had about a **1-point** boost from increased awareness due to the National Public Data breach. The deceleration from **5%** to **4%** this quarter reflects the normalization after that one-time event.  **[GEN_3413783_8]** 

4. **Retention Rates and ARPU Trends**  
   **Q:** How are retention rates and ARPU trending with mobile growth?  
   **A:** Natalie highlighted that retention rates are stable to up across cohorts, with an overall retention rate up **1 point** year-over-year, and ARPU up **$0.09**. Cross-sell and upsell are driving success across regions, and despite mobile's different starting points, behaviors are consistent, leading to confidence in revenue acceleration from **3%** to **4%** quarter-over-quarter.  **[GEN_3413783_7]** **[GEN_3413783_15]** 

5. **Norton 360 Membership Adoption**  
   **Q:** What's the current adoption rate of Norton 360 memberships?  
   **A:** Vincent shared that about **50%** of desktop customers are on Norton 360 memberships. Including mobile, adoption is around **45-46%**. The aim is to have the majority of customers on the membership structure in the future.  **[GEN_3413783_11]** **[GEN_3413783_12]** 

6. **Personalization Initiatives and AI**  
   **Q:** How are you progressing on personalization efforts using AI?  
   **A:** Vincent explained they are deploying the new Gen Stack, enabling AI-powered in-product messaging and hyper-personalization using LLMs. This will allow tailored experiences based on customer behaviors once migration is complete.  **[GEN_3413783_13]** 

7. **FX Impact on Guidance**  
   **Q:** How is FX impacting full-year revenue guidance?  
   **A:** Natalie indicated that FX impact on the full-year revenue guidance is relatively immaterial.  **[GEN_3413783_10]** 

bcc6cf7792c80d93accf49d6a1b42b749e6681e0fd6fcf19338d08017a9a3b51

GEN shows Q3 net customer growth for the 6th straight quarter, ARPU up $0.09 YoY, and ~77.5% retention. But Cyber Safety bookings slowed from 5% to 4% as last quarter’s boost fades. The pending MoneyLion deal may drive cross-sell and solidify AI-led personalization.

5dcccad24b5ca1b24da6bb041def3d1f2419209b1757edc6335755705b0702a4

**Quarterly guidance for Q4 2025:**  
- **Non-GAAP Revenue**: $990M to $1.005B  **[GEN_3413783_6]**  (no prior guidance)  
- **Non-GAAP EPS**: $0.57 to $0.59  **[GEN_3413783_6]**  (no prior guidance)  

**Annual guidance for FY 2025:**  
- **Revenue**: $3.915B to $3.93B  **[GEN_3413783_6]**  (raised from $3.905B to $3.93B  **[GEN_3404759_7]** )  
- **Non-GAAP EPS**: $2.20 to $2.22  **[GEN_3413783_6]**  (raised from $2.18 to $2.23  **[GEN_3404759_7]** )  
- **Cyber Safety Bookings Growth**: 4%  **[GEN_3413783_6]**  (lowered from 4% to 5%  **[GEN_3404759_7]** )  

1d0e19be484fb140ed8128d9f656f1afb9dc1504c8dc304a0a8d6da26d9e8f3d

### Q2 2025 Earnings Call
   - **Issued Period**: Q2 2025
   - **Guided Period**: Q2 2025 and FY 2025
   - **Guidance**:
     - **Q2 Fiscal 2025**:
       - **Non-GAAP Revenue**: $965 million to $975 million (3% to 4% growth in cyber safety)  **[GEN_3395788_7]** .
       - **Non-GAAP EPS**: $0.53 to $0.55 (13% to 17% increase)  **[GEN_3395788_7]** .
     - **Fiscal Year 2025**:
       - **Full Year Revenue**: $3.89 billion to $3.93 billion (3% to 4% growth in cyber safety in constant currency)  **[GEN_3395788_7]** .
       - **Non-GAAP EPS**: $2.17 to $2.23 per share (12% to 15% increase in constant currency)  **[GEN_3395788_7]** .
       - **Cyber Safety Bookings Growth**: 3% to 5%  **[GEN_3395788_7]** .
     - **Additional Note**: Expected FX headwinds impacting reported revenue, primarily from the Japanese yen  **[GEN_3395788_7]** .

### Q1 2025 Earnings Call
   - **Issued Period**: Q1 2025
   - **Guided Period**: Q2 2025 and FY 2025
   - **Guidance**:
     - **Q2 Fiscal 2025**:
       - **Non-GAAP Revenue**: $965 million to $975 million (3% to 4% growth in cyber safety)  **[GEN_3395788_7]** .
       - **Non-GAAP EPS**: $0.53 to $0.55 (13% to 17% increase)  **[GEN_3395788_7]** .
     - **Fiscal Year 2025**:
       - **Full Year Revenue**: $3.89 billion to $3.93 billion (3% to 4% growth in cyber safety in constant currency)  **[GEN_3395788_7]** .
       - **Non-GAAP EPS**: $2.17 to $2.23 per share (12% to 15% increase in constant currency)  **[GEN_3395788_7]** .
     - **Additional Note**: Expected FX headwinds impacting reported revenue, primarily from the Japanese yen  **[GEN_3395788_7]** .

### Q4 2024 Earnings Call
   - **Issued Period**: Q4 2024
   - **Guided Period**: Q1 2025 and FY 2025
   - **Guidance**:
     - **Q1 Fiscal 2025**:
       - **Non-GAAP Revenue**: $960 million to $970 million (approximately 3% growth in cyber safety)  **[GEN_3388137_7]** .
       - **Non-GAAP EPS**: $0.52 to $0.54 (12% to 16% increase in constant currency)  **[GEN_3388137_7]** .
     - **Fiscal Year 2025**:
       - **Full Year Revenue**: $3.89 billion to $3.93 billion (3% to 4% growth in cyber safety in constant currency)  **[GEN_3388137_7]** .
       - **Non-GAAP EPS**: $2.17 to $2.23 per share (12% to 15% increase in constant currency)  **[GEN_3388137_7]** .
       - **Cyber Safety Bookings Growth**: 3% to 5%  **[GEN_3388137_7]** .
     - **Additional Note**: Expected FX headwinds impacting reported revenue, primarily from the Japanese yen  **[GEN_3388137_7]** .

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: Q4 2024 and FY 2024
   - **Guidance**:
     - **Q4 Fiscal 2024**:
       - **Non-GAAP Revenue**: $960 million to $970 million  **[GEN_3371717_5]** .
       - **Non-GAAP EPS**: $0.52 to $0.54  **[GEN_3371717_5]** .
     - **Fiscal Year 2024**:
       - **Non-GAAP Revenue**: $3.805 billion to $3.815 billion  **[GEN_3371717_5]** .
       - **Non-GAAP EPS**: $1.95 to $1.97  **[GEN_3371717_5]** .

e60866d7556278121db761caf48cb5eeca46c11544ebfb7ebd4e28089e59a508

| Name            | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------|--------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Vincent Pilette | Chief Executive Officer                                                  | 2019       | Vincent Pilette has been the **Chief Executive Officer** of Gen Digital Inc. since **2019**. He played a pivotal role in the transformation of NortonLifeLock into Gen following the acquisition of Avast in 2022. Before joining Gen, he served as the Chief Financial Officer of Logitech International S.A. from September 2013 to May 2019  **[0001140361-24-034509_ny20030351x1_def14a.htm:41]** **[0001140361-24-034509_ny20030351x1_def14a.htm:73]** **[0001104659-23-085523_tm232872d2_def14a.htm:35]** . |
| Natalie M. Derse| Chief Financial Officer                                                  | July 2020  | Natalie M. Derse has served as the **Chief Financial Officer** of Gen Digital Inc. since **July 2020**. Before joining Gen, she held various financial roles at eBay, Inc. from July 2011 to July 2020, including Vice President and Chief Financial Officer, Global Product, Platform, Payments, Risk and Trust  **[0001140361-24-034509_ny20030351x1_def14a.htm:73]** **[0001104659-23-085523_tm232872d2_def14a.htm:54]** .                          |
| Bryan Ko        | Chief Legal Officer, Secretary, and Head of Corporate Development        | January 2020| Bryan Ko has served as the **Chief Legal Officer, Secretary, and Head of Corporate Development** at Gen Digital Inc. since **January 2020**. Before joining Gen, he was the general counsel, corporate secretary, and head of corporate development at Logitech International from January 2015 through January 2020  **[0001140361-24-034509_ny20030351x1_def14a.htm:73]** **[0001104659-23-085523_tm232872d2_def14a.htm:54]** .                     |

01271c1901bed2e912047675b78d4abbe729c863628f6dc1a8ce61886dd0199a

ecbd3c3fcdc25f90c244e6343d0f91e329cf1bfabb83c038b1da1fe106db033d

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **May 2024**  **[0000849399-24-000081_gen-20240927.htm:70]** **[0000849399-24-000081_gen-20240927.htm:16]** **[0000849399-24-000081_gen-20240927.htm:37]**  |
| End Date/Duration        | **No fixed expiration date**  **[0000849399-24-000081_gen-20240927.htm:70]** **[0000849399-24-000081_gen-20240927.htm:16]** **[0000849399-24-000081_gen-20240927.htm:37]**  |
| Total additional amount  | **$3 billion**  **[0000849399-24-000081_gen-20240927.htm:70]** **[0000849399-24-000081_gen-20240927.htm:16]** **[0000849399-24-000081_gen-20240927.htm:37]**  |
| Remaining authorization amount | **$2,728 million**  **[0000849399-24-000081_gen-20240927.htm:70]** **[0000849399-24-000081_gen-20240927.htm:16]** **[0000849399-24-000081_gen-20240927.htm:37]**  |
| Details                  | The program allows the company to repurchase shares of its common stock on the open market and through accelerated stock repurchase transactions. The timing and actual number of shares repurchased depend on factors such as price, general business and market conditions, and other investment opportunities.  **[0000849399-24-000036_gen-20240329.htm:64]** **[0000849399-24-000042_gen-20240628.htm:13]** **[0000849399-24-000081_gen-20240927.htm:37]** **[0000849399-24-000036_gen-20240329.htm:108]**  |

7f437af646ebd2bdccc8011e6c62e13050c85b8368a6cd1064778c768a0425d5

7cb9ba1d8a1f0f925631ff66d6203226e638b7b46a8938b497fa901edb834099

**Quarterly guidance for Q2 2025:**
- **Non-GAAP Revenue**: $965 million to $975 million  **[GEN_3395788_7]**  (no change from $965 million to $975 million   )  
- **Non-GAAP EPS**: $0.53 to $0.55  **[GEN_3395788_7]**  (no change from $0.53 to $0.55   )

**Annual guidance for FY 2025:**
- **Full Year Revenue**: $3.89 billion to $3.93 billion  **[GEN_3395788_7]**  (no change from $3.89 billion to $3.93 billion   )  
- **Non-GAAP EPS**: $2.17 to $2.23  **[GEN_3395788_7]**  (no change from $2.17 to $2.23   )  
- **Cyber Safety Bookings Growth**: 3% to 5%  **[GEN_3395788_7]**  (no change from 3% to 5%   )  

e66e24fba0bf6d87abd6af0612cbe2a017371e422141c142afb1961eb243da36

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2002  **[0000849399-24-000036_gen-20240329.htm:82]**    | Present  | Current auditor   |

e12a4af5c0980bd2aa45745aa232a0734570832e4fd0b0b30581b0aacbe9850a

aca4ff70b19241e266142316006cc57c6297f207b991ea65a63dac85808edfb7

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $974 million (+3% YoY from $948 million  **[0000849399-23-000029_gen-20230929.htm:21]** )  **[0000849399-24-000081_gen-20240927.htm:18]**   
- Operating Income (EBIT): $402 million (**+1,500%** YoY from $25 million  **[0000849399-23-000029_gen-20230929.htm:2]** **[0000849399-23-000029_gen-20230929.htm:33]** )  **[0000849399-24-000081_gen-20240927.htm:2]** **[0000849399-24-000081_gen-20240927.htm:29]** **[0000849399-24-000081_gen-20240927.htm:32]** **[0000849399-24-000081_gen-20240927.htm:5]** **[0000849399-24-000081_gen-20240927.htm:34]** **[0000849399-24-000081_gen-20240927.htm:35]**   
- Net Income: $161 million (+8% YoY from $149 million  **[0000849399-23-000029_gen-20230929.htm:2]** **[0000849399-23-000029_gen-20230929.htm:33]** )  **[0000849399-24-000081_gen-20240927.htm:2]** **[0000849399-24-000081_gen-20240927.htm:29]** **[0000849399-24-000081_gen-20240927.htm:32]** **[0000849399-24-000081_gen-20240927.htm:5]** **[0000849399-24-000081_gen-20240927.htm:34]** **[0000849399-24-000081_gen-20240927.htm:35]**   
- EPS (Basic): $0.26 (+13% YoY from $0.23  **[0000849399-23-000029_gen-20230929.htm:2]** **[0000849399-23-000029_gen-20230929.htm:33]** )  **[0000849399-24-000081_gen-20240927.htm:2]** **[0000849399-24-000081_gen-20240927.htm:29]** **[0000849399-24-000081_gen-20240927.htm:32]** **[0000849399-24-000081_gen-20240927.htm:5]** **[0000849399-24-000081_gen-20240927.htm:34]** **[0000849399-24-000081_gen-20240927.htm:35]**   
- Identity & Information Protection: $347 million (+6% YoY from $328 million  **[0000849399-23-000029_gen-20230929.htm:20]** )  **[0000849399-24-000081_gen-20240927.htm:18]**   
- Legacy Revenue: $12 million (**-25%** YoY from $16 million  **[0000849399-23-000029_gen-20230929.htm:20]** )  **[0000849399-24-000081_gen-20240927.htm:18]**   
- APJ Region Revenue: $100 million (+5% YoY from $95 million  **[0000849399-23-000029_gen-20230929.htm:21]** )  **[0000849399-24-000081_gen-20240927.htm:18]**   

91f862537a78f51c8c997cc293840fcdb50e442bdc12abbcefd814473ce0d046

ef99d39367f9256b9d6fcdb70d2585d497dc694f0ce0839d05266e678146ceb1

| Year  | Amount Due (in millions) | Debt Type                          | Interest Rate | % of Total Debt                                                                 |
|-------|---------------------------|------------------------------------|---------------|---------------------------------------------------------------------------------|
| 2025  | $1,396                   | Current Portion of Long-Term Debt | N/A           | 16.3% = (1,396 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:1]** **[0000849399-25-000006_gen-20241227.htm:36]**                                   |
| 2026  | $1,391                   | Long-Term Debt                    | N/A           | 16.2% = (1,391 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                   |
| 2027  | $232                     | Term A Facility, 6.75% Senior Notes | SOFR + CSA + Margin, 6.75% | 2.7% = (232 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                      |
| 2028  | $4,016                   | Long-Term Debt                    | N/A           | 46.9% = (4,016 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                   |
| 2029  | $37                      | Term B Facility, Avira Mortgage   | SOFR + 1.75%, 1.29% | 0.4% = (37 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                       |
| 2030  | $606                     | 7.125% Senior Notes, Avira Mortgage | 7.125%, 0.95% | 7.1% = (606 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                      |
| Thereafter | $2,829              | Long-Term Debt                    | N/A           | 33.0% = (2,829 / 8,569) * 100 **[0000849399-25-000006_gen-20241227.htm:12]** **[0000849399-25-000006_gen-20241227.htm:36]**                                   |

3d3d4613243d33dc1f0e871f26ff736ca2d67d9dfea7fa124e37a72b511aeb9a

1. **ARPU Decline and Mix Shift**  
   **Q:** Why did ARPU decline, and is this due to mix shift?  
   **A:** Management explained that the sequential decline in ARPU was driven by a mix shift toward emerging markets and lower ARPU channels where customer acquisition has been strong. They are not discounting more in each channel but are allocating marketing dollars to channels with momentum. The core online business sees ARPU expansion, and the blended ARPU decline is due to the increased proportion of customers from channels with lower ARPU. They are confident in cross-selling and upselling to these customers over time.  **[GEN_3371717_8]** **[GEN_3371717_12]** 

2. **Revenue vs. Bookings Growth Convergence**  
   **Q:** When will revenue growth converge with bookings growth?  
   **A:** Management is proud to report bookings growth of **4%** for the second quarter in a row. Cybersafety revenue, excluding legacy business lines and FX headwinds, grew **3%**, which is close to bookings growth. Over time, as they continue to scale and deliver bookings growth, revenue growth is expected to converge with bookings growth.  **[GEN_3371717_6]** 

3. **Employee Benefits Deals Slipping to FY25**  
   **Q:** Have some employee benefits deals slipped, affecting revenue?  
   **A:** A few key deals in the employee benefits channel have slipped into fiscal year **2025** and were not included in the Q4 forecast. The pipeline remains incredibly robust, and the team is confident in the strength of this channel, but integrations can be complex, leading to timing shifts.  **[GEN_3371717_11]** **[GEN_3371717_13]** 

4. **Retention Rates Slightly Below Plan**  
   **Q:** How are retention rates performing?  
   **A:** Retention rates were stable quarter-over-quarter and improving in key areas but were slightly below plan. Management is making progress, especially in bringing the Avast brands closer to Norton levels, and remains confident in achieving an overall retention rate of **80%**.  **[GEN_3371717_8]** **[GEN_3371717_10]** 

5. **Capital Allocation and Share Buybacks**  
   **Q:** How will you use the cash injection—any plans for share buybacks?  
   **A:** Management plans a balanced capital allocation approach, which includes accelerating debt pay-down and share buybacks. The recent **$900 million** cash injection is now available for deployment, and they will continue with their balanced approach in Q4.  **[GEN_3371717_14]** 

6. **Pricing Strategy and Potential Increases**  
   **Q:** Are you considering raising prices given inflation?  
   **A:** Pricing is strategic, and they constantly innovate and add new features, keeping prices consistent with markets. They have taken price increases aligned with the value delivered. Management focuses on cross-selling and upselling as key growth levers rather than general price increases.  **[GEN_3371717_9]** 

7. **Customer Net Adds from Emerging Markets**  
   **Q:** What's driving the strong customer net adds?  
   **A:** The company achieved a record sequential increase in direct customers for the second quarter in a row, driven by strong momentum internationally and in emerging markets. ARPU in emerging markets averages **$35**, compared to **$70** in developed markets and **$135** in mature markets. They are confident in their ability to cross-sell and upsell to these customers over time.  **[GEN_3371717_7]** **[GEN_3371717_10]** 

8. **Partner Channels and Pipeline Robustness**  
   **Q:** How is the pipeline in partner channels?  
   **A:** The partner channel pipeline, including employee benefits, has never been stronger. While some deals have been delayed, the overall funnel is robust, with deals of all sizes and scales. Management remains focused on sustainable and profitable growth through these channels.  **[GEN_3371717_11]** **[GEN_3371717_13]** 

9. **Impact of Threat Environment on Product Roadmap**  
   **Q:** How are you addressing new cybersecurity threats like AI deepfakes?  
   **A:** The company is actively using AI to combat AI-driven threats. They are shifting toward a personalized, interactive, and intuitive cybersafety companion. They launched **Norton Genie** to identify fake scams and are enhancing products to scan the entire spectrum of digital threats, making them more powerful against sophisticated attacks.  **[GEN_3371717_16]** 

10. **Deal Linearity in Partner Channels**  
    **Q:** How was deal linearity throughout the quarter?  
    **A:** Partner channels are diverse, and the timing of deals is not linear due to the complexity and diversity of partnerships. Management emphasizes operational excellence and strong partnerships, acknowledging that integrations can impact timing but remain confident in the overall strength of the pipeline.  **[GEN_3371717_14]** 

cb36141dc700a4c29d7f9d544305eb7f7d6a93500f17db83ff8751461f7eec2a

- **Strong bookings growth of 4%**, driven by acceleration in cross-sell into a broader portfolio, reacceleration of direct-to-consumer customer acquisition, and stable retention across brands, with strength in identity and privacy products. This bookings growth is expected to converge with revenue growth over time.  **[GEN_3371717_6]** ,  **[GEN_3371717_7]** ,  **[GEN_3371717_12]**
- **Achieved a record total customer count of 38.9 million**, with sequential direct customer growth for the second quarter in a row. This expanding customer base provides significant opportunities for cross-selling and upselling, enhancing long-term growth potential.  **[GEN_3371717_7]** ,  **[GEN_3371717_8]**
- **Robust partner channel with a long-term growth plan to add about $100 million of incremental partner revenue.** The employee benefit pipeline is incredibly strong, with deals expected to contribute in fiscal 2025. The company is focused on operational excellence and delivering on commitments, positioning it well for future growth through partnerships.  **[GEN_3371717_14]** ,  **[GEN_3371717_13]**

3868d70734e945fb08dd247846fefbe9d925c52a40e7e649662a797dad77dc88

- **Decreasing ARPU due to mix shift towards lower-ARPU customers**: Gen's overall ARPU declined sequentially, driven by a higher proportion of new customers from lower-ARPU channels like emerging markets and mobile. This mix shift may continue to pressure ARPU and revenue growth in the near term.  **[GEN_3371717_7]** **[GEN_3371717_8]** **[GEN_3371717_12]** **[GEN_3371717_10]**
- **Delayed revenue from Partner channels and over-optimism in deal timing**: Large deals in the Employee Benefit channel slipped into fiscal year 2025, impacting near-term revenue expectations. The timing of partner deals is non-linear, and the company acknowledged being over-optimistic about closing some deals, which may affect revenue growth targets.  **[GEN_3371717_14]** **[GEN_3371717_13]** **[GEN_3371717_11]**
- **Retention rate improvements are behind plan**: While overall retention remained stable at 77%, progress towards the 80% long-term target is slightly behind aspirations this quarter. The company did not improve retention as much as planned, which could impact future revenue growth.  **[GEN_3371717_8]** **[GEN_3371717_10]**

7499e849de9fc2d571f80458312a342753606c921c1999c2702946c6266df9cd

1. **Guidance and Consumer Health**  
   **Q:** What assumptions are in the guidance, and how is consumer health?  
   **A:** The guidance aligns with our strategic growth framework, focusing on gross acquisition, retention, and ARPU. We've seen the highest Q1 gross adds in **four years** and the lowest cancellations in **three years**, indicating strong consumer health. ARPU is growing consistently quarter-over-quarter, with increased retention rates across our brands over the last year.  **[GEN_3395788_10]** 

2. **Gross Margin Variability and Investments**  
   **Q:** What's causing the slight decline in gross margin?  
   **A:** While operating margin has improved by **7 points over the last three years**, gross margin remains relatively stable at **86% to 87%**. The slight variability is due to the P&L geography of our investments. We're investing in profitable, healthy ROI marketing to drive top-of-funnel growth, supporting our 5-for-5 growth strategy.  **[GEN_3395788_15]** 

3. **Retention Rate Improvement**  
   **Q:** How are retention initiatives progressing towards the 80% target?  
   **A:** We've improved retention to **78%** this quarter, with Avast reaching a record **72%** retention rate. Initial gains came from applying best practices post-merger. Future improvements will come from rolling out our new Gen stack and AI-enabled communications to enhance customer engagement.  **[GEN_3395788_8]** 

4. **Cross-sell and Upsell Opportunities**  
   **Q:** What's the progress on cross-sell and upsell initiatives?  
   **A:** Cross-sell penetration of the Norton base increased from **15% to 20%** in the last year. We're moving customers from point products to comprehensive cyber safety suites, focusing on identity and privacy features. We see significant opportunity to increase suite adoption from **slightly above 40%** to **60%**, as previously achieved with Norton LifeLock.  **[GEN_3395788_9]** **[GEN_3395788_12]** 

5. **AI Initiatives and Norton Genie**  
   **Q:** What's the update on AI initiatives and Norton Genie?  
   **A:** With a surge in data breaches and sophisticated scams, we've launched Norton Genie, an AI-powered scam detection app with over **1 million downloads**. In the second half, we'll integrate AI-supported anti-scam features into multiple product sets, enhancing our ability to detect AI-generated scams.  **[GEN_3395788_16]** 

6. **New Gen Stack Rollout**  
   **Q:** How is the new Gen stack rollout progressing?  
   **A:** We began rolling out the new Gen stack at fiscal year-end, starting in small Asian countries with positive results. We've expanded to more countries and initiated cohorts in the U.S. We're cautiously monitoring NPS and engagement and are on track to complete the rollout within the year as planned.  **[GEN_3395788_11]** 

7. **Employee Benefits Enrollment Pipeline**  
   **Q:** How does the benefits enrollment pipeline look compared to last year?  
   **A:** Our partner business, which is **10%** of overall revenue and grew **6%** in constant currency, includes telcos and employee benefits. Both are expected to grow double-digit within partnership revenue. We're investing in expanding coverage and have a healthy funnel ahead of the enrollment season starting in October.  **[GEN_3395788_14]** 

8. **Net Adds and Growth Strategy**  
   **Q:** Can you discuss net adds across geographies and outlook?  
   **A:** Net adds are broad-based across online, mobile, geographies, and brands. We're focusing on global expansion and acquisitions in underpenetrated markets and through partner channels. While we don't guide customer count quarterly, we're committed to investing for growth to accelerate top-of-funnel acquisition and retention.  **[GEN_3395788_17]** 

9. **Customer Growth and Cross-sell Penetration**  
   **Q:** How did existing and new customers perform versus expectations?  
   **A:** Both existing and new customers performed as expected. We had the highest gross adds in several years, driven by marketing investments. Cross-sell penetration in the Norton base increased from **15% to 20%** over the last year, with further room for growth.  **[GEN_3395788_12]** 

10. **FX Hedging Against Yen**  
    **Q:** What hedging activities are in place for yen exposure?  
    **A:** We don't hedge against the yen. We fix the exchange rate at the beginning of the period, which is reflected in our reporting of USD versus constant currency.  **[GEN_3395788_13]** 

abb12a248cbd400bfab7e6c3cde7ac6305063df5229059b3e6b5415f25c833cf

- **GEN's partner revenue grew 6% in constant currency**, with a **robust pipeline in the employee benefits channel**, indicating potential for further expansion.  **[GEN_3395788_9]**
- **Retention rate reached a Gen record of 78%**, with **Avast's retention improving to 72%**, driven by the rollout of the new Gen stack and enhanced customer engagement through AI and data analytics, suggesting increasing customer loyalty and potential for higher lifetime value.  **[GEN_3395788_14]**
- **Direct customer base increased by 1.1 million year-over-year**, with cross-sell penetration in the Norton base rising from **15% to 20% over the past year**, demonstrating effective growth strategies and opportunities for further monetization.  **[GEN_3395788_8]** **[GEN_3395788_17]**

67d03a132b15e59045a3637ad5219a77c5188f60f68ce254b4e3f6c898acb9e5

dff983bf3c82d90f529b78d56a2c794eb515eb9b17841469568e0a599cd847c6

- **Future improvements in retention rates may be more challenging**, as initial gains from **low-hanging fruit** post-merger have been realized, potentially making it harder to reach the **80%** retention target.  **[GEN_3395788_8]**
- **Growth in partner channels**, such as employee benefits, depends on closing new deals, which may be uncertain and could impact the company's ability to achieve guidance.  **[GEN_3395788_14]**
- The **lack of customer count guidance** may indicate limited visibility into future customer growth, potentially signaling uncertainty in maintaining current growth rates.  **[GEN_3395788_17]**

c5e48f368cd2a1f3df335fd03185e269e22e78c48e7a85219f1fe96eefe9938f

1. **Fiscal '25 Bookings Growth**  
   **Q:** How will bookings grow in fiscal '25?  
   **A:** GEN expects **3% to 5% bookings growth** in fiscal '25, driven by a mix of strategies including new customer acquisition, cross-sell, and upsell initiatives across brands and geographies.  **[GEN_3388137_13]**  Management is committed to investing in marketing to drive healthy ROI and scaling bookings throughout the year.  **[GEN_3388137_13]** 

2. **Avast Retention Rate Improvement**  
   **Q:** How is the retention rate for Avast improving?  
   **A:** Since the merger 18 months ago, Avast's retention rate increased by **close to 5 points**, reaching **over 70%**, up from around 65-66%.  **[GEN_3388137_14]**  GEN plans to further improve retention by focusing on customer journeys, leveraging data for personalized communications, and enhancing cross-sell and upsell pathways.  **[GEN_3388137_14]** 

3. **Capital Deployment Strategy**  
   **Q:** Has the macro environment changed your capital deployment plans?  
   **A:** GEN continues to balance share buybacks, share repurchases, and accelerated debt repayment.  **[GEN_3388137_10]**  Despite macro uncertainties, they have made notable progress on both fronts in fiscal '24 and plan to maintain a disciplined approach to capital allocation, leveraging strong cash flow generation.  **[GEN_3388137_10]** 

4. **Gen Stack Rollout Plans**  
   **Q:** What are the plans for rolling out the Gen stack?  
   **A:** GEN is deploying the new Gen stack over fiscal '25, currently testing in three countries with positive early signs.  **[GEN_3388137_11]**  The stack offers AI-driven personalization and improved user experience without needing new apps, allowing scalable addition of features based on membership levels.  **[GEN_3388137_11]** 

5. **Monetization of Norton Genie**  
   **Q:** What's the plan for monetizing Norton Genie?  
   **A:** Currently, Norton Genie focuses on growing adoption, and monetization is not included in the model.  **[GEN_3388137_9]**  Future plans include integrating it into membership tiers and eventually developing a monetized version called Genie Pro, but this is down the line.  **[GEN_3388137_9]** 

6. **Modular Approach Reception**  
   **Q:** How are users responding to the modular approach of Avast One?  
   **A:** The modular approach allows users to tailor their coverage, and GEN is excited about its flexibility and scalability.  **[GEN_3388137_12]**  As they migrate the Avast installed base to the new stack, they anticipate progress similar to the Norton 360 migration.  **[GEN_3388137_12]** 

7. **New Adjacencies**  
   **Q:** Can you provide more color on new adjacencies?  
   **A:** GEN is adding features like reputation management, discovery of deepfakes, and protection of financial transactions.  **[GEN_3388137_8]**  Over the next few years, they plan to launch more features, enhancing modularity and value for customers.  **[GEN_3388137_8]** 

1b89486cce86138ccb35ddaf5be06102b593337292b464f8b0317cd8feb2c8b0

1. **Net Customer Additions**  
   **Q:** What's driving the impressive net adds this quarter?  
   **A:** The company added **389,000** net new customers  **[GEN_3404759_15]** , 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.  **[GEN_3404759_8]** **[GEN_3404759_15]** 

2. **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.  **[GEN_3404759_8]** **[GEN_3404759_9]**  About **one in three Americans** now have enough personal data exposed on the dark web for criminals to commit identity theft.  **[GEN_3404759_8]**  This surge in awareness fueled more LifeLock acquisitions and upgrades to higher-tier offerings, resulting in a very healthy quarter.  **[GEN_3404759_9]** 

3. **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.  **[GEN_3404759_9]**  LifeLock attach rates improved, with more customers upgrading to memberships that include identity protection, especially due to increased market demand after the data breach.  **[GEN_3404759_9]** 

4. **Employee Benefit Channel Growth**  
   **Q:** How is the employee benefit channel performing?  
   **A:** The employee benefit channel continues to grow at **double-digit** rates.  **[GEN_3404759_13]**  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.  **[GEN_3404759_13]** 

5. **Genie AI Monetization and Expansion**  
   **Q:** What's the plan for integrating Genie AI across your offerings?  
   **A:** After achieving **1.6 million** downloads  **[GEN_3404759_12]** , 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**.  **[GEN_3404759_12]** 

6. **Bookings Growth and Revenue Outlook**  
   **Q:** What does the 5% bookings growth indicate for future revenue?  
   **A:** With **5%** constant currency bookings growth  **[GEN_3404759_19]** , 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.  **[GEN_3404759_19]** 

7. **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.  **[GEN_3404759_10]**  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.  **[GEN_3404759_10]** 

8. **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.  **[GEN_3404759_11]**  Overall retention rates have scaled up to **78%**, with first-year renewal rates higher than in the past.  **[GEN_3404759_11]** 

9. **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.  **[GEN_3404759_17]**  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.  **[GEN_3404759_18]** 

10. **Currency Impact on Guidance**  
    **Q:** How is currency fluctuation affecting your guidance?  
    **A:** Currency impact is **immaterial** for us.  **[GEN_3404759_16]**  When we revise our guidance, we use current currency rates without projecting future fluctuations.  **[GEN_3404759_16]** 

6761aecd145e17ff985d90cd1dab1f82efbd04546cbec5f70eaab8406966bdf8

- **Deployment of the new Gen stack**: The company is rolling out its new Gen stack, which utilizes AI for personalization and improved user experience. This scalable platform allows for flexible usage, modularity, and the ability to add new features without launching new apps. Early testing in three countries has shown positive signs, and the company plans to deploy it fully in fiscal year 2025.  **[GEN_3388137_11]** **[GEN_3388137_14]**
- **Improved retention rates and cross-sell penetration post-merger**: Since merging with Avast, retention rates for Avast customers have increased by nearly **5 percentage points**, reaching **over 70%**, contributing to an overall retention rate of **77.5%**. The company has also achieved **cross-sell penetration nearing 20%**, up approximately 5 points over the past two quarters, boosting customer engagement and revenue growth.  **[GEN_3388137_13]** **[GEN_3388137_14]**
- **Positive financial outlook with bookings growth expected**: For fiscal year 2025, the company expects bookings to grow by **3% to 5%**, driven by its **5-for-5 growth strategy**, which includes customer acquisition, cross-selling, upselling to higher-tier memberships, and expanding partner channels. This strategy is expected to drive revenue growth and higher retention rates throughout the year.  **[GEN_3388137_13]**

c55661433919627c8aa8488110d8558b8871bff3f4efde3aefbe9156226589b6

- **Limited Bookings Growth Guidance:** GEN's guidance for bookings growth in fiscal 2025 is only **3% to 5%**, indicating limited growth prospects.  **[GEN_3388137_13]**
- **Delayed Benefits from Gen Stack Rollout:** The deployment of the new Gen stack will take the full fiscal year 2025, delaying potential benefits and showing cautiousness in the rollout.  **[GEN_3388137_11]**
- **Flat Retention Rates in Core Brands:** Retention rates for Norton and LifeLock combined brands remained **flat**, revealing challenges in improving customer retention in their main segments.  **[GEN_3388137_14]**

0bc37fbaa69082215c09b7daad873a0e39ea9b1deb9a02f1c7560f6ca43b563b

Gen Digital Inc (GEN)

Financials